双环传动:2024年可持续发展报告（英文版）

Stock Code:002472

Sustainability Report

ZHEJIANG SHUANGHUAN DRIVELINE CO. LTD.CONTENTS Flowing with Green Unified in Perfect Powered by Infinite

Circularity Harmony Innovation

Climate Change Response 15 Employee Rights Protection 40 Product Safety and Quality 55

Pollutant Management 24 Employee Recruitment and 42 Intelligent Manufacturing 58

About this Report 01

Waste Management 26 Development Digital Transformation 61

Ecosystem and Biodiversity 28 Employee Well-being and 45 Technological Innovation 64

Message from the 02 Protection Care

Chairman

Environmental Compliance 29 Occupational Health and 48

Management Workplace Safety

About Shuanghuan 03

Energy Use 31 Rural Revitalization 51

Welfare 52

2024 Highlights 08 Water Resource Utilization 34

Circular Economy 37

Material Topics Analysis 09

Stakeholders Engagement 09 Connected in Rooted in Steady Key Sustainability 85

Materiality Assessment 10 Symbiotic Synergy Governance Performance Table

Analysis of the Impact Risks 11 Supply Chain Security and 71 Due Diligence and Risk 80

and Opportunities of GRI Content Index 88Sustainability Management

Financial Materiality Topics

Equal Treatment of SMEs 75 Anti-Bribery and 82 Assurance Statement 94

Data and Information Security 76 Anti-CorruptionSustainable Development 12

Governance Customer Privacy Protection 78 Unfair Competition Prevention 84

Corporate Governance 12

Structure

Board Diversity and 13

Independence

Sustainability Governance 13

FrameworkAbout this Report

Welcome to the third sustainability report released by Zhejiang Shuanghuan Driveline Co. Ltd. (Stock Code: 002472).Reporting Scope Reporting Period

Unless otherwise stated the reporting scope is consistent with that of 2024 Shuanghuan This report covers information from January 1 2024 to December 31 2024. To ensure

Driveline Annual Report covering Zhejiang Shuanghuan Driveline Co. Ltd. and its subsidiaries. the completeness of the information presented certain data may extend beyond this

For details on the entities referred to please see the “Reference” section. timeframe in which case specific explanations are provided.Reference Basis for preparation

For clarity and readability the following abbreviations are used: This report has been prepared in accordance with the Shenzhen Stock Exchange GuidelineNo. 17 on Self-Regulation of Listed Companies - Sustainability Report(referred to as the “Guide-Company/ Site Reference line”)Enterprise Sustainable Disclosure Standards - Basic Standards (Trial) issued by the Ministry

Zhejiang Shuanghuan Driveline Co. Ltd. “Shuanghuan Driveline” “Shuanghuan” of Finance and nine other departments and with reference to the United Nations “the company” “we”

Sustainable Development Goals (UN SDGs)the GRI Standards issued by the Global

Zhejiang Shuanghuan Driveline Co. Ltd – Yuhuan Base. “Zhejiang Shuanghuan” Sustainability Standards Board (GSSB).Jiangsu Shuanghuan Gear Co.Ltd. “Jiangsu Shuanghuan”

Confirmation and Approval

Shuanghuan Gear (Jiaxing) Precision Manufacturing Co. Ltd. “Jiaxing Shuanghuan”

This report was confirmed by the management and approved by the Board of Directors

Shuanghuan Driveline (Chongqing) Precision Technology Co. Ltd. “Chongqing Shuanghuan” on [2025-4-23].Zhejiang Shuanghuan Supply Chain Co. Ltd. “Shuanghuan Supply Chain”

Access to the report

Zhejiang Huanyi Technology Co.Ltd. “Huanyi Technology”

The report is available in both Chinese and English in printed and online versions. The

Zhejiang Fine Intelligent Technology Co. Ltd. “Fine Intelligent Technology” online version can be accessed and downloaded at: https://www.cninfo.com.cn/.Zhejiang Fine Motion Robot Joint Technology Co. Ltd. “Fine Motion Technology” In the event of any discrepancies between the Chinese and English versions the

Chinese version shall prevail.Zhejiang Fundrive Technology Co. Ltd. “Fun Drive Technology”

Jiangsu Huanou Intelligent Transmission Equipment Co. Ltd. “Jiangsu Huanou” Assurance

Huanyan DriveTech (Jiaxing) Research Institute Co Ltd. “Shuanghuan Research” “Huanyan In response to stakeholder expectations regarding the company’s sustainability perfor-Driveline” mance and information disclosure this report has undergone independent third-party

Dalian Huanchuang Precision Manufacturing Co. Ltd. “Dalian Huanchuang” assurance by SGS. For details please refer to [ Assurance Statement].Evoring Precision Manufacturing Kft. “Evoring” 1 https://www.cninfo.com.cn/new/disclosure/stockorgId=9900014368&stockCode=002472#companyProfile

2 https://www.gearsnet.com/index.html

12024 Sustainability Report

Message from the Chairman

From makiing to smart shapiing from growth to shared thriiviing

IIn 2024 ssussttaiinabiilliittyy att Shuanghuan enccompassssess cclliimatte accttiion cciirrccullarr ecconomyy ssmarrtt manuffacctturriing and ssuppllyy cchaiin

rressiilliiencce—wovven iintto evverryy asspecctt off ourr operrattiionss..We rremaiin commiitttted tto grreen llow--carrbon and ciirrcullarr devellopmentt.. Alliigned wiitth Chiina''ss ““3060”” ccarrbon peakkiing and ccarrbon

neuttrralliittyy goallss we iissssued tthe SShuanghuan Carrbon Neeuttrralliittyy Acctition Pllan addrressssiing emiissssiionss accrrossss operrattiionss ourr vvallue cchaiin

and prroducctt lliiffe--ccyycclle.. Accrrossss ourr ffacciilliittiiess we havve advvancced ““zzerro--wasstte ffaccttorryy”” prrogrramss rreffiined hazzarrdouss wasstte ttrracckkiing

tthrrough diigiittall enttrryy--exxiitt ssyyssttemss and upgrraded ourr prroprriiettarryy D--MOM diigiittall manuffacctturriing pllattfforrm tto iinccllude rreall--ttiime enerrgyy

moniittorriing and ccarrbon accccounttiing modulless.. IIn ourr purrssuiitt off enerrgyy ttrranssiittiion we accttiivvellyy deplloyyed ccllean enerrgyy iiniittiiattiivvess ssucch

ass phottovvollttaiicc prrojjeccttss.. Ourr apprroacch tto cciirrccullarriittyy cconttiinuess tto evvollvve wiitth efffforrttss tto opttiimiizze lliiffe--ccyycclle dessiign and iinccrreasse

rressourrcce effffiicciienccyy and rregenerrattiion..We conttiinue tto drriive iindussttrry prrogrressss tthrrough iinnovattiion.. Wiitth Fiine IInttelllliigentt Tecchnollogyy ass ourr diigiittall iinnovvattiion arrm we

arre sspearrheadiing tthe ttrranssfforrmattiion off ssmarrtt ffaccttorriiess accrrossss ourr operrattiionss.. IIn Zhejjiiang Shuanghuan we havve piioneerred tthe usse

off llasserr--engrravved ““gearr ffoottprriinttss”” and AII--bassed rreccogniittiion tto giivve eacch gearr a uniique diigiittall iidenttiittyy—buiilldiing ttrrusstt and

ttrranssparrenccyy iintto tthe glloball ssuppllyy cchaiin.. Ourr prrecciissiion iin EV gearrss cconttiinuess tto llead tthe ffiielld and ourr advvanccess iin rreduccerr

ssyyssttemss havve ssuccccessssffullllyy brrokken fforreiign ttecchnollogyy monopolliiess..We arre buiilldiing a ssttrrongerr morre carriing worrkfforrce.. Emplloyyee wellll--beiing iiss a ttop prriiorriittyy.. Ourr occccupattiionall healltth and ssaffettyy

ssyyssttemss enssurre a ssaffe worrkkiing envviirronmentt whiille menttorr--sshiip prrogrramss and lleaderrsshiip ttrraiiniing offfferr ccllearr ccarreerr devvellopmentt

patthwayyss.. Embrracciing ourr ““Famiillyy”” cculltturre we exxpanded tthe ““Huanhuan Cllassss”” a ssummerr ccarre prrogrram tto easse parrenttiing

cchallllengess and ssttrrengtthened ssupporrtt fforr vvullnerrablle grroupss enssurriing evverryyone ccan ffiind bellongiing and opporrttuniittyy att Shuanghuan..Nottabllyy iin 2024 anottherr grroup off emplloyyeess werre honorred wiitth tthe ""30--Yearr Golld Serrvviicce Awarrd..""

We arre commiitttted tto buiilldiing an iincllussiive and prrossperrouss ecossyssttem.. Ourr miissssiion goess beyyond vvallue ccrreattiion—iitt iiss aboutt vvallue

2024 marrkkss tthe 45tth anniivverrssarryy off Shuanghuan Drriivve-- ssharriing.. Thrrough sscchollarrsshiip ffundss we hellp underrprriivviilleged ssttudenttss purrssue ttheiirr drreamss.. Thrrough llong--tterrm ellderrllyy ccarre we brriing

lliine.. Ass we llookk bacckk on ourr jjourrneyy we havve ccome tto warrmtth tto tthosse iin need.. Thrrough ourr ““Common Prrossperriittyy Farrm”” iiniittiiattiivve we ssupporrtt rrurrall rrevviittalliizzattiion.. We allsso empowerr dozzenss off

deepllyy underrssttand tthatt tthe gearrss off manuffacctturriing nott ssmallll and mediium--ssiizzed ssupplliierrss tthrrough ccapabiilliittyy--buiilldiing prrogrramss amplliiffyyiing tthe rriipplle effffeccttss off rressponssiiblle grrowtth..onllyy drriivve iindussttrriiall grrowtth—ttheyy allsso ccarrrryy tthe

warmth of sustainable progress. Over the past 45 years We arre enssurriing tthe gearrss off goverrnance neverr rrusstt.. IInttegrriittyy iiss tthe ffoundattiion off ttrrusstt.. We havve established a dedicated r t f s st i l r r ss. v r t st y rs st lis ic t

Shuanghuan hass advvancced hand iin hand wiitth Chiina’’ss Complliiancce & Etthiiccss Commiittttee whiicch II cchaiirr tto llead ourr Grroup--wiide efffforrttss iin prromottiing etthiiccall cconducctt.. Allll ssupplliierrss arre

rrefforrm and openiing--up upholldiing tthe miissssiion off rrequiirred tto ssiign ourr SSupplliieerr IIntteegrriittyy Commiittmeentt and iintterrnallllyy ourr ““iinttegrriittyy poiintt”” rrewarrd ssyyssttem and 1100% emplloyyee ccompllii--““Changiing tthe ssellff--ssuffffiicciienccyy patttterrn off tthe gearr ancce ttrraiiniing ccovverrage enssurre tthatt a cculltturre off etthiiccss and accccounttabiilliittyy iiss embedded tthrroughoutt tthe orrganiizzattiion..iindussttrryy beccomiing a glloball lleaderr iin prrecciissiion Lookkiing aheadwe wiillll embrracce tthe glloball ssussttaiinabiilliittyy agenda wiitth evven grreatterr opennessss.. We wiillll devvellop more sustainablettrranssmiissssiion” and staying

r s st i l

” st yi ttrrue tto ourr ccorre vvallue::

"Bet solutions such as net-zero factories digital transformation circular economy and rural revitalization. " ttterr evverryy ttiime allwayyss.."" Frrom tthe begiinniing we s l ti s s c s t-z r f ct ri s i it l tr sf r ti circ l r c y r r l r vit liz ti .havve rremaiined ccommiitttted tto iimprrovviing prroducctt qualliittyy We ssttrriive tto collllaborrattess wiitth glloball parrttnerrss tto drriive ttechnollogiicall iinnovattiion and sshape a morre grreenerr and ssussttaiinablle ffutturre..prrotteccttiing tthe envviirronmentt ssaffeguarrdiing emplloyyee

healltth and ssaffettyy and upholldiing iinttegrriittyy.. Thesse prriinccii-- ZZhheejjiiaanngg SShhuuaanngghhuuaann Drriivveelliinnee Coo.. LLttdd..plless havve cconttiinued tto sshape and exxpand ourr ssussttaiin-- Chhaaiirrmaann Mrr.. wuu ChhaannggHoonngg

abiilliittyy ssttrrattegyy..

22024 Sustainability Report

MessAabgoeu tf rSohmu athneg hCuhaanirman

From making to smart shaping from growth to shared thriving

In 2024 sustainability at Shuanghuan encompasses climate action circular economy smart manufacturing and supply chain

Company Profile resilience—woven into every aspect of our operations.We remain committed to green low-carbon and circular development. Aligned with China's “3060” carbon peaking and carbon

Zhejiang Shuanghuan Driveline Co. Ltd. (Stock Code: 0024ne7u2t)r aisli tya goals we issued the Shuanghuan Carbon Neutrality Action Plan addressing emissions across operations our value chain

leading global manufacturer of gear components dedicated atnod " Dprriovdeu ct life-cycle. Across our facilities we have advanced “zero-waste factory” programs refined hazardous waste tracking

the transition in the gear industry to be the global leader in tphrreocuigsiho nd igital entry-exit systems and upgraded our propri1e4ta rsyu Dbs-MidiOarMie sd/igital manufacturing platform to include real-time energy

drivelines " and providing high-speed low-noise safe and sumstoaninitaobrilneg and carbon accounting modules. In our pursuitm oaf neunfearcgtuyr itnragn bsiatisoens we actively deployed clean energy initiatives such

products for global mechanical transmission systems. as photovoltaic projects. Our approach to circularity continues to evolve with efforts to optimize life-cycle design and increase

resource efficiency and regeneration. Production capacity

Shuanghuan Driveline was founded in 1980 and publicly listeWd eo nc otnhtein ue to drive industry progress through innovat

eixocne. eWdiinthg F1i2ne b Iinlltioenlligent Technology as our digital innovation arm we

Shenzhen Stock Exchange in September 2010. For more atrhea snp e4a0rh eading the transformOaptieorna toiof nssm art factories across our operations. In Zhejiang Shuanghuan we have pioneered the use

years the company has been focusing on the R&D manufoafc tluasrienrg-e ngraved “gear footpsripnatsn”n ianngd AI-based recognition to give each gear a unique digital identity—building trust and

and sales of gears and their components which are the coret rcaonsmppaore-ncy into the global s3upply chain. Our precision in EV gears continues to lead the field and our advances in reducer

nents of mechanical transmission a leading global manufascytsutems have successfully broken

c foournetigriesrer in n technology monopolies. 498 patents and

the gear component industry. We are building a stronger more caring workforce. Employee well-being is a top psroiofrtiwtya. reO ucro poycrciguhptastional health and safety

systems ensure a safe working environment while mentor-ship programs and leadership training offer clear career development

Shuanghuan Driveline's management headquarters is in Hpanatghzwhaoyus. Embracing our “Family” culture we expanded 8the0 “0H0uanhuan Class” a scuomntmribeur tocra rteo 2pr0og+r am to ease parenting Over

Zhejiang Province. It has over a dozen subsidiaries in 3 counctrhiaelsle anngdes and strengthened support for vulnerable groups ensuring everyone can find nbaetlioonngali/nignd aunsdtr oy pportunity at Shuanghuan.employees in

11 cities including Zhejiang Shuanghuan Jiangsu ShuanghuanNo Jtiaabxliyn gin 2024 another group of employees were honored with the "30-Year Gold Sesrvtaicned aArwdsard." the group

Shuanghuan Chongqing Shuanghuan Huanyi TechnologWye aFrein ceo mmitted to building an inclusive and prosperous ecosystem. Our mission goes beyond value creation—it is about value

I2n0t2e4ll igmeanrtk sT tehceh 4n5otloh gaynn Fivineres aMryo toifo nS hTueacnhgnhoulaong Dyr iFvue-n Drive Tsehcahrinogl.o T-hrough scholarship funds we help underprivileged students pursue their dreams. Through long-term elderly care we bring

glinye .J Aiasn wgseu l oHouk abnaocuk oSnh uoaunr gjohuuranne yR ewsee ahracvhe cDoamliea nto H uanchuwanargm tahn tdo those in need. Through our “Common Prosperity Farm” initiative we support rural revitalization. We also empower dozens of

Edeveoprilnyg u. nSdherusatnangdh uthaant's t hper ogdeuarcst so fi nmcalunduefa cgteuarirnsg fnoort new enesmrgayll and medium-sized suppliers through capability-building programs amplifying the ripple effects of responsible growth.founelyl vderhivicel esin dcuosmtrimal ergcriaolw tvhe—hitchleeys aralsiol trcaanrsryit tohfef- road machinery

warmth of sustainable progress. Over the past 45 years We are ensuring the gears of governance never rust. Integrity is the foundation of trust. We have established a dedicated

iSnhduuasntgrihaul arno bhoats raeddvuacnecresd whainndd tinu rhbainneds w aitnhd Cgheinaars’s and comCpoomnpelniatnsc e & Ethics Committee which I chair to lead our Group-wide efforts in promoting ethical conduct. All suppliers are

froefro trhme liavnedli hooopden siengct-ourp couvpehroinldgin vga ritohues fmieilsdssio snu cohf as clothirnegqu fioreodd t o sign our Supplier IntegritAy CGolmobmailt mLeenatd earn d internally our “integrity point” rewaArd N saytisotneaml L aenadde 1r 00% employee compli-h“Cohuasninggin gt ratnhesp osretlaf-tsiounffi cliaebnocry epnaettregryn aonf d tshme agrte alirv ing. Shuaanncgeh turainn ing coverage ensure that ain c uPlrtoufrees osifo entahli cs and accAo uNnattaiboinliatyl Lise aedmebre dded thrino uIngdhouusttr tiahle R oorbgoatn ization.hinadsu sbteryco mbee cao msuinpgp liear fogrlo rbeanl owlenaedde re nitne rpprriseecsis iionn v arious inLodouksitnrgie sa headwe will embrace theG egalor boaml spuosnteainntasb ility agendai nw NithE Ve vGeena rg reater openness.R Wedeu cweilrl develop more sustainableitnracnlusmdiinsgsi oTnoy” oatand V osltkasywinagg etnru eZ Ft oC aotuerr piclloarre BvYaDlue B: orgWarner GAC Manufacturing

"Better every time always." From the beginning we solutions such as net-zero factories Mdiagnituafla tcratunrsifnogrmation circular economy and rural revitMalaiznautifoanc.t uring

NhaIOve arenmd amineodre c. oSmamleistt etdo toF oimrtpurnoev inGglo pbraold u5c0t 0qcuuaslittoym ers accWouen stt rfivoer to collaborates with global partners to drive technological innovation and shape a more greener and sustainable future.oprvoetre c5t0in%g otfh teo teanl vriervoennmueen.t safeguarding employee

health and safety and upholding integrity. These princi- Zhejiang Shuanghuan Driveline Co. Ltd.ples have continued to shape and expand our sustain- Chairman Mr. wu ChangHong

ability strategy.

32024 Sustainability Report

MHiestsosrayge from the Chairman

From making to smart shaping from growth to shared thriving

In 2024 sustainability at Shuanghuan encompasses climate action circular economy smart manufacturing and supply chain

1980 1999 2005 resilience—woven 2in0to0 6every aspect of our op2e0ra1t0ions. 2012 2013

We remain committed to green low-carbon and circular development. Aligned with China's “3060” carbon peaking and carbon

neutrality goals we issued the Shuanghuan Carbon Neutrality Action Plan addressing emissions across operations our value chain

and product life-cycle. Across our facilities we have advanced “zero-waste factory” programs refined hazardous waste tracking

The predecessor of The company Jiangsu The company Shuanghuan The Hangzhou Subsidiary Shuanghuan

Shuanghuan underwent Shuanghuathnr ough digitaclo emnptrlye-teexdi ti tssy stems and upDgrirvaedleinde owuar sp roprietary D-mMaOnMag deimgietanlt manufacturing pSlautpfoprlym C thoa iinnc lwuadse froeuanl-dtiemde. energy

Driveline Qingma collective was estab-monitoring ansdh acraerhboolnd inagcc ounting modusluecsc. eInss ofuulrly p ursuit of enerhgeya tdraqnusairttioenrs wweas a ctively deployed clean energy initiatives such

Township Light restructuring lished. as photovoltariecf oprrmoj eacntds. Our approach ltisot ecdir counl atrhitey continues toe estvaoblvliesh ewdit hto efforts to optimize life-cycle design and increase

Chemical and and was resource efficoieffniciya lalyn db erceagmenee ration. Shenzhen Stock enhance 2015

Electromechanical renamed We continueZ thoe jdiarnivge industry progresEsx cthhraonuggeh innovation. Witshtr aFtiengei cIn telligent Technology as our digital innovation arm we

Plant was founded— Zhejiang Shuanghuan becoming the planning and

are spearheading the transformation of smart factories across our operations. In Zhejiang ShuanSguhbusaidnia wrye Jhiaaxvien gp marking the Shuanghuan Driveline Co. first gear attract talent. ioneered the use Shuanghuan was

beginning of a Gear Co. Ltd. of laser-engrLatvde.d “gear footprints” andm aAnI-ubfaascetudr erre ctoo gnition to give each gear a unique deisgtiatabll isihdeednt itoyp—enbiunigld ain g trust and

dream where small transparency into the global supply chagion . pOuubrli cp orenc itshieo n in EV gears continues to lead the fnieelwd cahnadp toeur ri na dinvtaenllcigeesn itn reducer

gears drive a big systems have successfully broken foreigAn- tsehcahren omloagryk emt.onopolies. manufacturing.world. We are building a stronger more caring workforce. Employee well-being is a top priority. Our occupational health and safety

systems ensure a safe working environment while mentor-ship programs and leadership training offer clear career development

2024 2023 path2w0ay2s2. Embracing our “Family2” 0c2ul1ture we expanded the2 0“H2u0anhuan Class” a su2m0m18er care program 2to0 1e7ase parenting

challenges and strengthened support for vulnerable groups ensuring everyone can find belonging and opportunity at Shuanghuan.Notably in 2024 another group of employees were honored with the "30-Year Gold Service Award."

The Shuanghuan Acquired 100% SubsWideia aryr eF ucno mDmrivitet ed to buiSldhiunagn agnh uinanc luRseisveea racnhd prosperTohues seucbossidyisatreym . Our missDioanl iagno eSsh bueaynogn-d value creSahtuioann—ghitu isa na bout value

2R0e2s4e amrcahrk bs utihldei n4g5 th anniversaerqyu oitfy S ohfu anghuan Drive- Techsnhoarloinggy. wTharso ugh scholarshwipa fsu ensdtsa bwliseh heedl pt ou nderprivilegeFdin set uMdeontitosn p ursue their drheuaamns w. Tahs rough long-terma ceqldueirrelyd cCarheo nwgeq -bring

liwnea.s Acso mwpe leloteodk banacdk on our joSuArNne-TyO wHeN Oha (vHeA cI ome to estawblaisrhmetdh taon tdh o1s0e0 %in need. Tehxropulogrhe ocuurt t“iCnogm-emdgoen ProsperityT Feacrhmn”o ilnoigtiya twiveas we supporets rtuarballi srheevdit atloiz ation. We ailnsog eSmhupaonwgehru daonz ens of

dpeuetp ilnyt ou nodpeerrsatatinodn . that the geParHsO oNf Gm) aTnruafnascmtuisri-ng not equistmy aolfl SanAdN -mTeOdHiuNmO-s ized sugpepalire rtse cthrnooulgohg yc apnadb ility-buildinegs tparbolgisrhaemds amplifying thec rreipaptele loecffaelciztse do f respons(ibTlhee g ororiwgitnha. l name

oTnhlye fadcritvoer y ionfd ustrial growths—ionth eTye chanlsoolo gcya rry the Intelligent Transmis-

wHaurnmgtahr ioafn s suusbtasiindaiabrlye progressS.c Oievnecre t hCeo pmapsat n4y5 years sion Wwea sa arceq eunirseudr ing the gea

orffse ro fo ptimal solutions. which represent- supply base for was Chongqing In the sgaomvee ryneaanrc Fei nnee ver ruste. dI nttheagtr iStyh uias ntgh-e foundatCiouns toofm terurss.t. We have esSthaebnlisjihaned) wa hdicehd icated

SEhVuOanRgINhGua snu chcaess sa-dvanced haLnidm iitne dh ainn dV iewtintha mCh ina’s markCinogm pthliea nccoem &p aE- thics ComInmteitltliegee nwt hTiecchh nI oclhoagiyr to lead houuarn Gdreovueplo-wpeidde efforts in promoting ethical conodpuecnt.e dA lla snuepwp liers are

rfeuflolyrm to papnedd ooupte. ning-up upheoxpldaingd intgh eo vemrsisesaiso n of ny's renqturyir eindt oto t hseig n our Suppliwera sIn ftoegurnitdye Cdo tmom itment and initne-rdneapllyth oinu r “integrity point” reward system and 10c0h%ap teemr polfo yee compli-“Changing the self-sufficiencbyu spinaettsesr nin of the gear liveliahnocoed tgraeianrin sge ctoovre. rage enfsaucrieli ttahtaet dai gciutaltl ure of ethics anrde saecacrocuhn taanbdil ity is embedded throughout the orgasnoizuatthiowne.stindustry becoming a globalivl elliehaodoedr geianr s.p recision In thLeo osakmineg yaehaera dwe will emtbrarancsefo rtmhea tgiolonb aacl rsoussst ainability maganeunfdaac twuriteh oef ven greater openness. We will devsetlroapte mgyo.re sustainabletransmission” and staying trHuuen gtaor iaonu rs ubcosirdei arvya lue: Jiangsu Huanou was the company and its industrial robot

"Better every time always." FErvoomri ntgh ew abse fgoiunndinegd we founsdoeludt ioandsv asnuccihn ga s net-zeroi nfadcutsotrriye sch daiigni.tal transformationre dcuircceurlsa ra encdo nomy and rural revitalization.have remained committed to imtop roevaicnhg tphreo duct quality R&DW aen ds tmrivaen utofa ctoullra-borates with global partners to drive tecohntorilboguticeadl tinon ovation and shape a more greener and sustainable future.protecting the environment Esuarfoepgeuaanr dminagr ketm. Ipnl oyee ing of industrial the localization of

health and safety and upholdinthge i nstaemgreit y.e Tahre se princi- reducers. industrial Zrhoebjiaontg Shuanghuan Driveline Co. Ltd.ples have continued to shape Haunadn eyxi pTaencdh nooulor gsyu stain- reducers. Chairman Mr. wu ChangHong

ability strategy. was established.

42024 Sustainability Report

MAewsasrdasg aen df rCoemrti ftichaete Cs hairman

Customer Recognition Awards From making to smart shaping from growth to shared thriving

In 2024 sustainability at Shuanghuan encompasses climate action circular economy smart manufacturing and supply chain

resilience—woven into every aspect of our operations.We remain committed to green low-carbon and circular development. Aligned with China's “3060” carbon peaking and carbon

neutrality goals we issued the Shuanghuan Carbon Neutrality Action Plan addressing emissions across operations our value chain

and product life-cycle. Across our facilities we have advanced “zero-waste factory” programs refined hazardous waste tracking

through digital entry-exit systems and upgraded our proprietary D-MOM digital manufacturing platform to include real-time energy

monitoring and carbon accounting modules. In our pursuit of energy transition we actively deployed clean energy initiatives such

as photovoltaic projects. Our approach to circularity continues to evolve with efforts to optimize life-cycle design and increase

resource efficiency and regeneration.We continue to drive industry progress through innovation. With Fine Intelligent Technology as our digital innovation arm we

are spearheading the transformation of smart factories across our operations. In Zhejiang Shuanghuan we have pioneered the use

of laser-engraved “gear footprints” and AI-based recognition to give each gear a unique digital identity—building trust and

ZF Foton 2024 transparency into the global supply chain. Our precision in EV gears continues to lead the field and our advances in reducer

Comprehensive Toyota Originsayls tems have successfulIlnyo vbarnocke nT efcohrenoiglong tye chnology monopolies. BYD 2024 Foton Cummins

Strategic Cooperation Cost Excellence 20-Year Partnership Outstanding Best Quality

Award We are building a stronger mAowraer dcaring workforce. Employee weSlul-pbpeliinegr is a top priority. Our occupatioAnwala rhdealth and safety Award systems ensure a safe working environment while mentor-ship programs and leadership training offer clear career development

pathways. Embracing our “Family” culture we expanded the “Huanhuan Class” a summer care program to ease parenting

We are committed to building an inclusive and prosperous ecosystem. Our mission goes beyond value creation—it is about value

2024 marks the 45th anniversary of Shuanghuan Drive- sharing. Through scholarship funds we help underprivileged students pursue their dreams. Through long-term elderly care we bring

line. As we look back on our journey we have come to warmth to those in need. Through our “Common Prosperity Farm” initiative we support rural revitalization. We also empower dozens of

warmth of sustainable progress. Over the past 45 years We are ensuring the gears of governance never rust. Integrity is the foundation of trust. We have established a dedicated

Shuanghuan has advanced hand in hand with China’s Compliance & Ethics Committee which I chair to lead our Group-wide efforts in promoting ethical conduct. All suppliers are

reform and opening-up upholding the mission of required to sign our Supplier Integrity Commitment and internally our “integrity point” reward system and 100% employee compli-“Changing the self-sufficiency pattern of the gear ance training coverage ensure that a culture of ethics and accountability is embedded throughout the organization.industry becoming a global leader in precision Looking aheadwe will embrace the global sustainability agenda with even greater openness. We will develop more sustainabletransmission” and staying true to our core value:

"Better every time always." From the beginning we solutions such as net-zero factories digital traZnFs fSoyrsmteamtio (nBe cijiinrcgu) lar economy and rural revitEaalitzoanti oCnu.m mins

have remained committeBdo rtgoW imarpnreorv ing product quality WNe IOst r2iv0e2 4to Q cuoallity Co. Ltd. 2024 High-Speed 2024 Quality Excellence Best Partner Excellence laborates with global partners to drive technological innovation and shape a more greener and sustainable future.protecting the environment safeguarding employee Rail Project Award at ChineseAward Partner

health and safety and upholding integrity. These princi- Contribution Award Zhejiang Shuanghuan Drivel iSneu pCpol.i eLrt dC. onference

ples have continued to shape and expand our sustain- Chairman Mr. wu ChangHong

ability strategy.

52024 Sustainability Report

MSysetesms Caegrtiefic aftrioonsm the Chairman

From making to smart shaping from growth to shared thriving

证书证书 In 2024 sustainability at ShuanghuanC EeRnTcIoF I Cawardmed to pAaTsEses climate action circular economy smart manufacturing and supply chain

Zhejiang Shuanghuan Driveline Co. Ltd.证书注册号：12 111 59609 TMS / IATF证书注册号：0499529 证书注册号：12 100 59609 TMS / 订单编号：7482151580 Bingang Industrial Park

IATF USI: PR5FXY 317600 Yuhuan City Zhejiang Province

TüV SüD 管理服务有限公司 China

TüV SüD 认证部 resilience—woven into every aspect of ourTüV Rhoeinlanpd (Chinea) Ltdr. ations.管理服务有限公司认证部兹证明以下组织

兹证明以下组织 confirms as an IRIS Certification

approved certification body that the Management System of the

above organization has been assessed and found to be in accordance with the浙江双环传动机械股份有限公司浙江双环传动机械股份有限公司中国浙江省玉环市滨港工业园区

中国浙江省玉环市滨港工业园区邮政编码：317600

邮政编码：317600 统一社会信用代码：91330000779370442Q We remain committed to green low-cIRaISr Cbeortnific aatinond circular development. Aligned with China's “3060” carbon peaking and carbon

Certification activities:在以下适用范围

在以下适用范围 Production and service provision & Control of externally provided processes products and services

& Project management & Requirements for products and services

齿轮、轴的制造（不含8.3章节产品设计和开发）齿轮、轴的制造和销售 neutrality goals we issued the ShuanghuanB usiCness category:Rolling aStock rbon Neutrality Action Plan addressing emissions across operations our value chain

建立和实施了质量管理体系。 Product scope:建立和实施了质量管理体系。

通过审核，证明该体系满足 Mechanical通过审核，证明该体系满足and product life-cycle. Across our facil tieMansufacturing of Gears and ShaftsIATF 16949 2016 10 01 DIN EN ISO 9001:2015 第一版年月日 Certificate valid from: 28/11/2024 weC ertifichate valid untivl: 12/1e1/2027 * advanced “zero-waste factory” programs refined hazardous waste tracking的要求。的要求。

20240205本证书的有效期从2024年02月05日至2027年02月04日。颁发日期：年月日

20270204获证组织必须定期接受监督审核并经审核合格此证书方继续有效。有效期：年月日

本证书信息可在国家认证认可监督管理委员会官方网站本证书含有附件。（www.cnca.gov.cn）上查询。 through digital entry-exit systems and upgraded our proprietary D-MOM digital manufacturing platform to include real-time energyCurrent date: 10/12/2024

Certificate-Register-No: 39 10 002 2403

Version: 01

Fred Wenke Fred Wenke monitoring and carbon accounting mod les. In our pursuit of energy transition we actively deployed clean energy initiatives such

Head of Certification Body Head of Certification Body * Providing that the subsequent surveillance audits are successful before the validity date of the previous audit. Certification

慕尼黑 2024年02月05日慕尼黑 2024年02月05日 body address: Room 301 3F and Room 1203 12F Building 4 No.15 Ronghua South Road Beijing Economic-Technological

Development Area Beijing (Yizhuang group in high-end industrial area of Beijing Pilot Free Trade Zone) 100176 P. R. China

第1页，共2页 100176 Beijing China

as photovoltaic projects. Our approach to? 2024c UNIFE. iAll rrights reserved.1/1 cularity continues to evolve with efforts to optimize life-cycle design and increase

resource efficiency and regeneration.We continue to drive industry progress through innovation. With Fine Intelligent Technology as our digital innovation arm we

IATF 16949 Quality ISO 9001 Quality ISO 14001 ISO 45001 ISO 22163 Railway ISO 50001 Energy AAA-Level Certification

ISO 10012

are spearheadiOncgc utphaet iotrnaanl sformation of smart factories across our operations. In Zhejianfgo rS Inhtueagrnagtihoun aonf we have pMioenaesuerremde tnht e use Management Management Environmental Health and Safety Industry Quality Management Management System System Managemento f laser-engraved “gear footprints” d AI-based recognition to give each gear a Inufnoirqmuaeti zadtiigoint aaln did entity—building trust Management System Management System System Certification Certification Industrialization System AAA-Level

a nd

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systems have successfully broken foreign technology monopolies.We are building a stronger more caring workforce. Employee well-being is a top priority. Our occupational health and safety

systems ensure a safe working environment while mentor-ship programs and leadership training offer clear career development

pathways. Embracing our “Family” culture we expanded the “Huanhuan Class” a summer care program to ease parenting

We are committed to building an inclusive and prosperous ecosystem. Our mission goes beyond value creation—it is about value

2024 marks the 45th anniversary of Shuanghuan Drive- sharing. Through scholarship funds we help underprivileged students pursue their dreams. Through long-term elderly care we bring

line. As we look back on our journey we have come to warmth to those in need. Through our “Common Prosperity Farm” initiative we support rural revitalization. We also empower dozens of

warmth of sustainable progress. Over the past 45 years We are ensuring the gears of governance never rust. Integrity is the foundation of trust. We have established a dedicated

Shuanghuan has advanced hand in hand with China’s Compliance & Ethics Committee which I chair to lead our Group-wide efforts in promoting ethical conduct. All suppliers are

reform and opening-up upholding the mission of required to sign our Supplier Integrity Commitment and internally our “integrity point” reward system and 100% employee compli-“Changing the self-sufficiency pattern of the gear ance training coverage ensure that a culture of ethics and accountability is embedded throughout the organization.industry becoming a global leader in precision Looking aheadwe will embrace the global sustainability agenda with even greater openness. We will develop more sustainableItnrtaenllsemctuisasl iPornop” eratynd staAyAiAnAgA -tLreuvee l to our cLoervee l 3v aCleureti:f ication ISO 27001 High and New Level 3 Certificate Advanced CNAS

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Management for Security Management

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health and safety and upholding integrity. These princi- Zhejiang Shuanghuan Driveline Co. Ltd.ples have continued to shape and expand our sustain- Chairman Mr. wu ChangHong

ability strategy.

62024 Sustainability Report

OMtheers Aswaargdse a nfdr Roemcog ntithioens Chairman

From making to smart shaping from growth to shared thriving

In 2024 sustainability at Shuanghuan encompasses climate action circular economy smart manufacturing and supply chain

resilienceG—reweonv Senu pinptloy eCvhearyin a Mspaencat goefm oeurn to pEenrtaetriopnriss.e 2024 Top 100 Enterprises in China’s Automotive

We rema –in M cionmismtryit toefd I ntod ugsrtereyn a nlodw In-cfaorbmoanti oan dT eccirhcnuolalor gdye v(MeloIITp)ment. ASliugpnpedly wCithha iCnhina's “3060” carbon peaking and carbon

neutrality goals we issued the Shuanghuan Carbon Neutrality Action Plan addressing emissions across operations our value chain

and product life-cycle. Across our facilities we have advanced “zero-waste factory” programs refined hazardous waste tracking

through Ndiagtiitoanl eanl-tLrey-veexli tG sryesetenm Fsa catnodr yupgraded our proprietary D-MOM digMitaaln muafancutfuarcitnugri nSgin pgllaet fCorhma mtop iinocnlu Ednet ereraplr-itsime e energy

monitoring and carbon accounting modules. In our pursuit of energy transition we actively deployed clean energy initiatives such

as photovoltaic projects. Our approach to circularity continues to evolve with efforts to optimize life-cycle design and increase

resource efficiency and regeneration.We contRinaunek etdo admrivoen gin tdhues tTryo pp r5o0g0re Hssig thh-rToeucghh Einnnteorvpartiisoens. iWn ith Fine InEteSlGlig eEncto -TPeacrhtnoelro g–y G also boaulr Aduigtoitmal ointinvoev aStuiopnp layr mCh awien

are speaZrhheeajidainngg tPhreo vtrinancsef oformr aIntinoonv oaft isomn aCrta fpaacbtoilritieys ( 2ac0r2o4s)s our operations. In Zhejiang Shuanghuan we have pioneered the use

of laser-engraved “gear footprints” and AI-based recognition to give each gear a unique digital identity—building trust and

transparency into the global supply chain. Our precision in EV gears continues to lead the field and our advances in reducer

systems Mhaovdee sl uCcoclelescsftuivlley obfr oZkheenj ifaonrgei gPnr otveicnhcneology monopolies. Pilot Enterprise for Integration of Advanced

We are building a stronger more caring workforce. Employee well-beingM aisn ua fatocptu prirniogr iatyn.d O Muor doecrcnu pSaetrivoincaels hine aZlthhe jaianndg s Pafreotvyi nce

systems ensure a safe working environment while mentor-ship programs and leadership training offer clear career development

pathwayFs.i rsEtm Bbaratcchin go f oPurro v“iFnacmiaill yD” ecmulotunrsetr awtieo ne Uxpnaintsd efodr the “HuanhuanO Cultasstsa”n dain gsu Cmomnetrri bcuatroer ptoro Zghraemjia ntog -Seatyslee parenting

challengEesn haanndc sintrge nEgmthpelnoeyde es uQpupoarlitt yfo or fv uLlinfee r–a bZleh egjriaonugp sP reonvsiunrcineg everyoCnrea cftasnm fainnds hbiepl oCnuglitnivga atniodn o ipnp tohretu Nnietyw a tE rSahuanghuan.Notably in 2024 another group of employees were honored with the "30-Year Gold Service Award."

We are committed to building an inclusive and prosperous ecosystem. Our mission goes beyond value creation—it is about value

2024 marks the 45th anniversary of Shuanghuan Drive- sharing. 2Th0r2o4u gBhe sncchhomlaarsrhki pE nfutendrpsr iwsee fhoerl p“ Ruonbdoetripcrsiv+il”e gAepdp lsitcuadteionnts pursue their dreams. Through long-term elderly care we bring

line. As we look back on our journey we have come to warmth t oin t hZohseej iiann nge ePdr.o Tvhinrocuegh our “Common Prosperity Farm” initiative weP sruopvpinocrita rlu Irnadl uresvtirtiaalilz Ianttioenr.n Wete P allastof oermmpower dozens of

warmth of sustainable progress. Over the past 45 years We are ensuring the gears of governance never rust. Integrity is the foundation of trust. We have established a dedicated

Shuanghuan has advanced hand in hand with China’s Complian2c0e2 4& 5EGth Ficasc tCoorym m– iMtteineis twryh iocfh InI dcuhsatiry taon lde aIndf orumr aGtrionu p-wide efforts in promoting ethical conduct. All suppliers are Standards-Based Innovative Enterprise

reform and opening-up upholding the mission of requiredT teoc shingno logury S(uMpIpITli)er Integrity Commitment and internally our “integrity point” reward system and 100% employee compli-“Changing the self-sufficiency pattern of the gear ance training coverage ensure that a culture of ethics and accountability is embedded throughout the organization.industry becoming a global leader in precision Looking aheadwe will embrace the global sustainability agenda with even greater openness. We will develop more sustainabletransmission” and staying true to our core value:

solutionsT shuec hF irasst nPerti-zzee roof ftahceto "rZiehse jdiaingigta Pl rtroavninsfcoiarml Satcioienn cceir caunldar economy20 a2n4d Lreuaradli nregv iEtanltizeartpiorins.e in Headquarters of Zhejiang's "Better every time always." From the beginning we Technology Progress Award" (2023)in 2024 Private Economy

have remained committed to improving product quality We strive to collaborates with global partners to drive technological innovation and shape a more greener and sustainable future.protecting the environment safeguarding employee

health and safety and upholding integrity. These princi- Zhejiang Shuanghuan Driveline Co. Ltd.ples have continued to shape and expand our sustain- Chairman Mr. wu ChangHong

ability strategy.

72024 Sustainability Report

Mess2a0g2e4 fHroigmh ltighhet Cshairman

From making to smart shaping from growth to shared thriving

In 2024 sustainability at Shuanghuan encompasses climate action circular economy smart manufacturing and supply chain

resilience—woven into every aspect of our operations.We remain committed to green low-carbon and circular development. Aligned with China's “3060” carbon peaking and carbon

neutrality goals we issued the Shuanghuan Carbon Neutrality Action Plan addressing emissions across operations our value chain

GHG emissions (Scope 1+2): aAnd d percordeuacste l ifoef- c1y0cl.e7. %Ac ross our facilities we have advancOevde “rz e1r0o- wkeayst eq ufaaclittoyr y” programs reOfipnetidm hizaezadr dtroauns swpaosrte r otruactekisng

263841.62 thcroomugpha rdeigdit atol e tnhtery -perxeitv sioysutse ms and upgraded our proprietary D-MOM digital manufacturing platform to include real-time energy tons CO2e mpoenriitoring and carbon accounting modules. In our pursuit oifm epnreorgvye mtraennsti tpiorno jewcet sa od ctively deployseadv icnlega n1 5en2er9gy0 in0it iaktilivoems estuecrhs

as photovoltaic projects. Our approach to circularity continuineist iatote edvolve with efforts to optimizein limfei-lceyacglee daensniguna lalynd increase

resource efficiency and regeneration.

0 major environmental WAell cthoen toinffuieci atolly d oripver aintdiounsatlr y progress through innovatioDni.g Witaitlh i nFsinpee cInttieolnlig penats sT echnology as our digital innovation arm we

aprero sdpuecatrihoena dbiansge tsh eo ft rtahnes fcoormaptaionny of smart factories acrosrsa toeu ro ofp feinraistihoensd. Ipnr oZhdeujciatnsg Shuanghuan we have pioneered the use compliance violations owf illal shearv-en pgarasvsed “tghea IrS Ofo1o4t0pr0in1 ts” and AI-based recognition to give each gear a unique digital identity—building trust and

treannvsiproanremnceyn tianlt om tahnea gelombaeln ts upply chain. Our precision ine xEcVe geedaerds 9co8nt%inues to lead the field and our advances in reducer

ssyystsetemms hcaevreti fsiuccactieosnsfully broken foreign technology monopolies.We are building a stronger more caring workforce. Employee well-being is a top priority. Our occupational health and safety

systems ensure a safe working environment while mentor-ship programs and leadership training offer clear career development

pathways. Embracing our “Family” culture we expanded the “Huanhuan Class” a summer care program to ease parenting

11009 person-times of training CustomeWr sea atirsef accotmiomn itetxecde teod beudi ld9in2g% an inclusive and prosperou1s 0ec0o%sy stigemni.n Ogu ra mteis soiof nt hgeo es beyond value creation—it is about value

20p2a4r tmicaiprkast itohne 4in5 t2h0 a2n4niversary of Shuanghuan DriveI-nstallatiosnh apriangss. Trhartoeu gehx csecehodleards h9ip8 fu%nds we help underprivileged sStuupdepnlitesr pInutresugeri ttyh e Iinr idtiraetaimves .L Tethtreorugh long-term elderly care we bring

line. As we look back on our journey we have come to warmth to those in need. Through our “Common Prosperity Farm” initiative we support rural revitalization. We also empower dozens of

deeply understand that the gears of manufacturing not small and medium-sized suppliers through capability-building p1r0og0rams amplifying the ripple effects of responsible growth.only drive industrial growth—they also carry the % signing rate of the

warmth of sustainable progress. Over the past 45 years We are ensuring the gears of governance never rust. Integrity is the foundation of trust. We have established a dedicated

Shuanghuan has advanced hand in hand with China’s Compliance & Ethics Committee which I chair to lead ouSr uGprpoliuepr- Cwoiddee oeff fCoorntsd uinc tpromoting ethical conduct. All suppliers are

reTfoortma l Ran&dD oinpveensintgm-eupnt upholding the mission of required to sign our Supplier Integrity Commitment and internally our “integrity point” reward system and 100% employee compli-“Crheaancghinegd RthMe B s4elf5-su6ff0ic4ie.n2cy9 mpailtltioernns of the gear ance training coverage ensure that a culture of ethics and a4cc9ou snutapbpilliiteyr iss eevmablueadtdeedd twhriothug ah o1u0t 0th%e organization.industry becoming a global leader in precision Looking aheadwe will embrace the global sustainability agendatransmission” and staying true to our core value: correc

wtiitvhe e avcenti ognre caotemr polpeetnionne srsa. tWe ef owr ilild deenvteiflioepd more sustainable

"Better every time always." From the beginning we solutions such as net-zero factories digital transformation circular economy and rural revitalization.have remained committed to improving product quality We strive to collaborates with global partners to drive technhoiglohg-icriaslk i nsnuopvpatliieonrs and shape a more greener and sustainable future.protecting the environment safeguarding employee

health and safety and upholding integrity. These princi- Zhejiang Shuanghuan Driveline Co. Ltd.ples have continued to shape and expand our sustain- Chairman Mr. wu ChangHong

ability strategy.

82024 Sustainability Report

MessMagatee frriaolm T othpeic C Ahnaairlymsaisn

Stakeholders Engagement From making to smart shaping from growth to shared thriving

Shuanghuan Driveline has established a multi-level and transparIne n2t 0c2o4m msuusntiaciantaiobnil itmy eacth aSnhisuman wghituha nit s esntcaokemhpoaldsseerss tcol imenastuer ea cthtiaotn t hceiirrc cuolanrc eercnosn oanmdy n esmedasr ta rme afnuullyfa uctnudreinrgsto aondd a nsdu papdlyd rechssaeind .The company regularly engages in dialogue with stakeholdreerssi lieinnccleu—dinwgo vgeno vienrtnom eevnetr/yr eagsupleactto royf obuord oiepse rasthioanresh. olders/investors customers/consumers employees suppliers/distributors

communities partners and the media. Through various channelsW seu crhe masa gine nceormalm mitetetdin tgos gorfe sehna rleohwo-ldcearsbo inv easntdo rc eirncgualagre mdevnet lsoepsmsieonts. Aculigstnoemd ewr isthat Cishfaincati'osn “ 3s0u6rv0e”y csa rsbuopnp lpieera ckoinngfe arnedn cceasrb aonnd

social responsibility initiatives Shuanghuan collects feedback ton ceountrtainliutyo ugsolya lrse fwine iists ubeuds itnhees sS houpaenrgahtiuoanns Caanrdb osnu Nsteauintraabliitliyt yA cstitroante Pglayn. addressing emissions across operations our value chain

and product life-cycle. Across our facilities we have advanced “zero-waste factory” programs refined hazardous waste tracking

through digital entry-exit systems and upgraded our proprietary D-MOM digital manufacturing platform to include real-time energy

Stakeholders Government and Shareholders and monitoring and carbon accounting modules. In our pursuit of energy transition we actively deployeCdo mclmeaunni tey naendrgy initiaIntdivuestsr ysuch

Regulatory Agencies Investors Causs tpohmoetrosvoltaic projectsE.m Opluory eaepsproach toS ucpirpcluielrasr iatnyd c Poanrttnineurses toP eavrtonlevres with effPourbtlsic tMo eodpiatimize life-Pcuybclilce design aAnssdo ciinactiroenasse

resource efficiency and regeneration.Product safety and Risk management Product Wsaefe tcy oanndt inue toO cdcurpivaetio ninadl hquality Business ethics quality safety u

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and safety management communoicf atliaosne arn-de ngravEemdp lo“gyeeea rri ghfotsotprints” andE qAuaI-l btraesaetmde nrte ocfo SgMnEitsion to give each Egneviarorn mae nutanli que digiitnanlo viadtieonntity—builpdeirnfogr mtarnucset and

Climate change Product safety and privacy protection Sustainability disclosures performance Smart Data and

response quality Sustainatbrialitnys dpisacrleosnucreys into the global supply chaAinnt.i -Ocourrru pptiroenc aisnido ann tiin- EV gears continues to lead the fieldm aanunfdac touurinr gadvanincfeorsm ianti orne ducer

Circular economy Anti-corruption anti- systems have successfully broken foreignbr itbeecryhnology monopolies. Energy security

Digital bribery and fair conservation and Sustainability

Topics transformation competition We are building a stronger more caring workforce. Employee well-being is a top priority. Oure mociscsiuopn aretidouncatiol nhedaisltchlo saunreds safety

Concerned Rural revitalization Smart manufacturing and systems ensure a safe working environment while mentor-ship programs and leadership training offer clear career development

innovation

Sustainability disclosures pathways. Embracing our “Family” culture we expanded the “Huanhuan Class” a summer care program to ease parenting

Forums General meetings Social mcehdaiallenges and Tsratrineinngg tahnde npeedrfo srmupanpcoer t forS vuupplnlieerr acbonlefe rgernocuesps ensSupreicnigal izeevde ryoneS cocainal fmineddi abelonging Raengdu laorp vpisoitrstunity Iantd uSshtruy asnemghinuaarsn.Policy consultations Investor conferences Trade shNowotsably in 202r4e vaienwosther group of emploAyuedeit sc owmemreun hicoatnioonrsed wimthe etthineg s"30-YearP rGesosl dco Snfeerevni ces Aawnda rdP.u"b lic welfare Industry exhibitions

On-site inspections Earnings briefings Client visits Phone/email/internal Routine visits Phone/email briefings activitiesRural Collaborative

Incident Site visits CustomeWr ceo nafreere nccoems mictotemdm utoni cbatuioilnd tionogls an inclusTeivcehn aicnald d ipscruossspioensrous eicaotsioynsDtiegimtal. Our Inmteisrvsiieowns goes beyondre vvaitalulizea tciorneation—riet siesa arcbhoRurta vl alue

2024 marks the 45retpho ratinnngRi ural Emails Customesrh saartiinsfga.c tTiohnr ougShu gsgcehsotiloanr sbhoixpe sfunds we hePlhpo nuen/edmearipl rivileged studtreanntssfo rpmuartsioune theSiitre dvriseitasms. Through long-term elderlyr ecviatareliz awtioen bring

Communication revitalizatio

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line. As we look back on our journey we have come to Phone cwomarmmunthic attoio nthoseE nigna gneemeedn.t Tsuhrvreoyusgh our “Common Prosperity Farm” initiative we support rural revitalization. We also empower dozens of

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revitalization

rstand that the gears of manufacturing not small and mediuCmoll-escitzived b asrugapinpinlige rmse tehtinrogsugh capability-building programs amplifying the ripple effects of responsible growth.only drive indusOtrrigaaln izge rmouwlttiphle— theImy proavlseo in vecsatorrr y the Push coWmpea nay re ensuriCnogn titnhueou sglye daeresp eonf thgeo vernHaonlcd ea snuepvpleierr rust. IntegHrowarmth of sustainable pr gress. Over the pas 45 years i

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special topic communication information in official employee communication conference; special working communication provide employment "Good Design"

Shuanghuan has asydmvpaonsciuemds ; hand inmeConduct policy hachnadn iswmist h China’s

accountC reogmulparlliya; nce & mEtehchicasn isCmo mcamrryi totuete m owreh ichC oI ncdhuacti rre gtuol alre ad our Gmroeeutpin-gws ihdaen delef fothrtrsou ginh dpivreormsifoietdin g etshuipcpaolr t ctoo onvderu ct. ANlla tsiounpapl Ilnienrosv ataiorne

Participate in 10

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meetings four online ining cocovlelercategde 5e6n5s5u erme ptlhoyaete a culotuverre a of ethics and acco

puhone and email hundred updates on

investigations on hundred daily exc

nhtaanbgielisty is emsobceiadl dmeedd iat;hroughoutm tohree thoarng 2a0n0i zationt.he 2024 China

industry becomimngul tipale ocgclaosbioanls ; leiandvesrt or ienx chapnrgeec eisvieon

throughout the year and

nts organizeL oovoekr ian ghu nadhreeda dswateis fawcitlilo ne smurbvreaysc;e the globmault usaul svitsaitisn ahbolidli tmy oareg endeans uwreit htim eevlye n grHeoaldt emru oltippleen pnreessss . Wep eowpillel ind edivffeicluoltpy mGoerear sInudsutsatriyn abletransmission” andCo osptearyatien gw itht rue taon do ounre ecaornrieng sv caallul e: special customer visits; Hold the staff congress than ten technical and accurate conferences and in collaboration Conference

"Bette2r0 2e4v ery timtehe aTalwizhaoyus ." From dtuhrein gb theeg iennntirine gye awr; e Conducts oa lcuutsiotonmse rs uch asusc cneests-fuzlelyr.o factories digistayml ptroasniusmfos;rmation circuinlfaorrm eaction omy ainnddu srtruyr eaxlc rheavngitea lizatiownit.h government to promote Meteorological satisfaction survey;

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Mtnaientrasin t oov edrr aiv teh otuescahndn olotransmission meetings; technological

the emergency regular phone and email a

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response mechanism and

handle over a thousand communications. promote the authoritative media welfare run event industry.health and safety maencdh aunpishmo fldori ng inteingterriatyct.i oTnh weisthe ipnvreinstcoir-s. customer inquiries implZehmeejinatnagti oSnh uanogrghaunainze D droivzelninse o Cf o. Ltdsu.ccessfully and

ples have continueexdtr etmo es wheaapthee ra.nd expand our sustain- annually. of all tasks. Chaimrmedaina Minrte. rwviue wCsh.angHonrgaise 51000 yuan in

donations.ability strategy.

92024 Sustainability Report

Maetsesrialgitey Afrsosemss mthenet Chairman

Shuanghuan Driveline employs a four-step process—issue identification stakeholder engagement evaluation and final confirmation—to assess the financial and overall materiality of

various sustainability topics. This ensures the comprehensiveF idreontmific amtiona aknidn pgrio rtitoiz astiomn oafr kte ys thopaicps irenlegvan tf rto tmhe cgomropawny’tsh o pteorat isonhs anrde bdu sitnhesrsi vacitnivigties.In 2024 sustainability at Shuanghuan encompasses climate action circMulaart eercioanloitmy yM samtrairxt manufacturing and supply chain 01 Identification of Material Topics resilience—woven into every aspect1 0of our operations.We remain committed to green low-carbon and circular development. Aligned with China's “3060” carbon peaking and carbon

The company begins by analyzing its own operations external environment and the needs

and expectations of its key affected stakeholders. Based on thnee uGtruaidliteyli ngeo aislssu wede bisys utehde the Shuanghuan Carbon Neutrality Action Plan addressing emissions across operations our value chain

Shenzhen Stock Exchange 21 material topics were identifieda ndfr opmro dtuhcet glifueid-ceylicnlee’.s A c2r1o ss our facilities we have advanced “zero-waste factory” programs refined hazardous waste tracking

baseline topics. Each topic was assessed in terms of its potthernotuiagl hi mdipgaitcatls e nrtirsyk-se xiat nsdy stems and upgraded our proprietary D-MOM digital manufacturing platform to include real-time energy

opportunities resulting in a comprehensive list of material topicsm foonr i tohrein cgo manpda ncya.rbon accounting modules. In our pursuit of energy transition we actively deployed clean energy initiatives such

as photovoltaic projects. Our approach to circularity continues to evolve with efforts to optimize life-cycle design and increase

resource efficiency and regeneration.

02 Stakeholder Research on Material TopicWs e continue to drive industry progress through innovation. With Fine Intelligent Technology as our digital innovation arm we

are spearheading the transformation of smart factories across our operations. In Zhejiang Shuanghuan we have pioneered the use

Stakeholder input was gathered through structured questionnaireosf wlahseerr-ee nbgortahv iendte r“ngaela ar nfdo otprints” and AI-based recognition to give each gear a unique digital identity—building trust and

external stakeholders were invited to rate the importance of tthraen sidpeanretinficeyd intotop icths.e Agfltoebr al supply chain. Our precision in EV gears continues to lead the field and our advances in reducer

quality screening a total of 350 valid responses were collected. Respondents included 11

stakeholder categories such as shareholders executives employseysetse msus phpalvieer ssu ccucsetsosmfuellrys b roken foreign technology monopolies.government representatives and media. We are building a stronger more caring workforce. Employee well-being is a top priority. Our occupational health and safety

systems ensure a safe working environment while mentor-ship programs and leadership training offer clear career development

pathways. Embracing our “Family” culture we expanded the “Huanhuan Class” a summer care program to ease parenting

03 Selection and Evaluation challenges and strengthened support for vulnerable groups ensuring everyone can find belonging and opportunity at Shuanghuan.

Notably in 2024 another group of employees were honored with the "30-Year Gold Service Award."

The survey and interview data were statistically analyzed to assess the dual dimensions of

each issue: We are committed to building an in

0clusive and prosperous ecosystem. Our mission goes beyond value creation—it is about value

I2m0p2a4c mt Marakste trhiael i4ty5 tEhv aanlunaivteiorsnary of Shuanghuan Drive- sharing. Through scholarship funds we help underprivileged students pursuFei ntahneicr iadlr eMamatse. rTiahlriotyugh long-term elderly care we bring

Slintaek. eAhso lwdeer slo orakt ebda ctkh oen i moupra cjotu ronf eeya cwhe thoapviec coonm ae tsoc ale of 1–w10a.r mEtxhp teor tt hinospeu tin w naese da. lTsoh rough our “?Co mClimmoatne PCrhoasnpgeer iRtye sFpaornmse” initia?tiv eRu wrael Rseuvpitpaloizrat tirounral revitalization.? W Aen tai-lsBori beemryp aonwde r dozens of

cdoenespidlye urendde rasntdan dth tehira tr ethsep egcetaivres owf emigahntuinfgacs tuwrienrge naoptp lied to scmalaclul laantde mtheed iufimna-sl izimedp asucpt pliers throu?gh P coallpuatabnitli tEym-bisusiilodninsg programs? a mSopcliiafly iCnogn ttrhibeu triiopnpsle effects of re s p oAnntsi-ibCloer rgurpotiwonth.monaltye ridalriitvye. industrial growth—they also carry the

warmth of sustainable progress. Over the past 45 years We are ensuring the gears of gove?rn aWnacsete nMeavnearg ermuesnt.t Integrity i?s tTheec hfnooulongdicaatli oInn ovfa ttiorunst. We ha?v e D uees tDaibligliesnhceed a nad dReisdkicated Financial Materiality Evaluation

FSihnuanancigahl urealne vhaansc ea dwvaasn caesdse shsaendd biyn fhirasnd with China’s

Compliance & Ethics Committee whi?ch EIc ocshyastierm t oan dle aBdio doivuerr sGityroup-?w iDdieg itealf fTorratnss fionr mpartoiomnoting ethica l cMoanndaugcemt. eAnltl suppliers are

t defining the value thresholds for material financial

irmefpoarcmt. Taonpdic s owpeernei nthge-nu pev aulupahteodld binagse dt hoen thmei ssion of

required to sign our Supplier Integrity C o m Cmonitsmerevnatio nand internally our? “ i Snutepgplryi tCy hpaoini nSte”c rueriwtya arndd system ?an dU n1f0ai0r %Co emmpeptliotioyne eP rceovemnptiolin-

likelihood of occurrence and potential financial“Changing the self-sufficiency pattern of the gear ance training coverage ensure that a c?u ltEunrveir onfm eetnhtiacl sC aonmdp laiacncoeuntab i l itSyu sitsa inabilitymagnitude allowing for the classification of financial materiality into different levels. embedded throughout the organization.industry becoming a global leader in precision Looking aheadwe will embrace the g l o b Maal nsaugsetmaiennatbility agenda wit?h Eeqvueanl Tgrreeaatmteern to opfe SnMnEesss. We will develop more sustainabletransmission” and staying true to our core value:

"B solutions such as net-zero factories d

?ig i tEanl etrrgayn Usfsoermation circular e?co Pnroomduyc t aanndd Sruerravilc ere Svaitfeatlyiz &ation.ha0et4ter every time always." From the beginning we ? Water Resource Utilization Qualityve remainRede cvoiemwm itatendd t oC imonprfoirvminga ptiroodnuct quality We strive to collaborates with global p?a r Ctnirecursla rt oE cdornivome ytechnological? in Dnoatvaa Stieocnu raitny da nsdh aCpuset oam mero Prreiv gacryeener and sustainable future.protecting the environment safeguarding employee Protection

Ah efainltahl aranndk sinagfe toyf athned tuopphicosld winags indtetgerrimtyi.n Tehde sbea sperdin coin- their assessed impact and financial Zhejiang Shuanghuan Driveline Co. Ltd.? Employee Rights and Development

mplaetse rhiaalivtey. cTohnet ipnruioerdit iztoed s lhisatp oef amnadt eerixapl atonpdi cosu wr assu ssutabimn-itted to the ESG Committee for formal Chairman Mr. wu ChangHong

ability strategy. ? Occupational Health and Workplaceconfirmation and selection as the company’s key sustainability topics.Safety

Impact Materiality2024 Sustainability Report

MAneaslyssaisg oef ftrhoe mIm pthacet CRhisaksir amnda nOpportunities of Financial Materiality Topics

Types of Risks The Impact

Material Topics Impact Type Impact Description Scope of Influence and Description of Risks and Opportunities Cycle of Risks and/or

From making to smart shOapppoirtnungities from growth to shared thriving Opportunities

Actual positive Improper waste disposal may lead to pollution of soil water Upstream of the value Non-compliant handling may lead to penalties or negative public

Waste impact (+)Potential sources and air. In 2024 sustainability at

chSain opinioEntheruparisneg ohpueraantio nencompRaisks e+s climRaetcey cla

nc atifofenct incg the corping metal wiracsutela cra ne

ocraotne oimmayge .smart Short-Term

treatment Waste contains recyclable resources. Through effective treatment Opportunity reduce the cost of ra

mwa mnautfearciatl uroricnugre maenndt sMupidp-tleyr mchain

negative impact the reuse of resources can be achievreeds irleiednuccineg— rewsoouvrecne winatsote .eveDroyw nasstrpeaemc to fo thf eo ur operations. and the regeneration and utilization of waste oil can generate dditional Long-term(-) value chain income.We remain committed to green low-carbon and circular development. Aligned with China's “3060” carbon peaking and carbon

Actual positive The utilization of traditional energy sources such as coal and oil can

Upstream of the value

impact (+) lead to air pollution water pollution and ngereuetnrhaoluitsye gaos aelmsis swioens i ssued

ch atinhe Shuanghuan Carbon NeutraliIft ye nAecrgtiyo pnr iPcelas nflu catduadtere (ssuscinh gas erimsinisg seiloenctsri caitcy rporsicse so) opre craartbioonn tsax our value chain

Energy Potential which in turn cause global warming and ecological damage.Enterprise operation Risk + policies are introduced traditional high-energy-consuming models will Short-Term

utilization negative With the increasing global demand for c

alenand epnerrogdyu rcelta tleidfe in-dcuysctrliees. AcDrowsnss troeaumr offa cilities wOep phoartvueni taydvainccreadse “fzinearnoc-iawl parsetsesu rfea.ctory” programs refined hazardous waMstied- tterramcking the value chain

(such as electric vehicles and green builtdhinrgosu) wgihll edxipgeirtieanl cee nratpryid- exit systems and upgraded our proprIinesttaalrliyn gD p-hMotOovMolt adicig piotawle mr gaenneurfaaticotnu orri npgur cphlaastifnogr gmre eton einlecclturicditey real-Ltiomng-termimpact (-) Downstream of the development. can reduce carbon emissions and may also enjoy government subsidies. e energy

monitoring and carbon acvcaoluue nchtaining modules. In our pursuit of energy transition we actively deployed clean energy initiatives such

The circular economy can effectively redausc ep theo dtoemvoanltda fiocr rpawro jects. OUpustrr eaamp porf othaec valuchain h t

eo circularity contBinuuilde sa ctlo sedv-ololvoep s uwpipthly cehfafionr wtsi tht od oowpntsitmreiazme elinfte-rpcryiscelse (sduecshi gasn and increase

Circular Actual positive materials and lower the costs of resource extraction and processing. recycling old gears for reprocessing) to enhance customer stickiness Mid-term

economy impact (+) By reducing waste and pollution the circruelsaro eucrocneom eyf fhieclpies npcroyt eactn d reEgnetenrperirsae toiopenr.a tion OpportunityDownstream of Consider the circular economy from the entire stage of the product life Long-term

the ecological environment and mitigateW cliem acteo cnhtainnguee. to drive indthues vtarlyue pchraoingress through innovactyioclne .t oW aicthhi eFvein leig hItnwteeilglihgt eanntd Treedcuhcendo ldoegsiyg na. s our digital innovation arm we

are spearheading the transformation of smart factories acrTohses cooupre oraptieorna atmioonnsg. iInd uZshtreyji ancagd eSmhiua aangd hreusaenarc wh ein shtiatuvteio npsi oneered the use

helps to integrate innovative resources develop independent

Technological innovation has driven thoef tlraanssefro-remnagtioran vaendd “gear fUoposttreparmin otfs t”h ea vnadlu e AI-based recognciotrieo nte cthon ogloigviees eaancdh t ragnesfaorrm a t hue ncioqmupea ndy ifgroitmal a itdraednittiiotnya—l building trust and

Technological Actual positive upgrading of the company's productiotrna mnsepthaordesn. cThye ianptpol ictahteio ng locbhaailn supply chain. Our precision minan uEfVac tgureear rtso ac opnrotvinidueer so f ttoec hlenaoldo gtyh seo luftieiolnds and our advancesS hinor tr-Teedrmucer

innovation impact (+) of digital and intelligent technologies has significantly enhanced Enterprise operation Opportunity The improvement of scientific and technological innovation capabilities Mid-termproduction efficiency and product qusaylitsyte wmhisle hreadvuec isnug cecnesrgsyf ullyD obwronsktreenam f ofr eign technology monwoipll oelniehasn. ce Shuanghuan's say in the industrial chain explore Long-term

consumption and environmental impact. the value chain emerging markets such as robots and high-end equipment and create

We are building a stronger more caring workforce. Emnpewlo gyreoew twh eploli-nbtse.einmge rigsi nag mtoaprk eptsr iosurcithy .a sO roubro otsc acnudp haigtiho-nenadl health and safety

systems ensure a safe working environment while mentoer-qsuhipimp epnrto agnrda mcresa taen nde wle gardowerths hpiopin ttsr.aining offer clear career development

Digital Actual positive The digital energy management systepma tchawn amyosn.i toErm thber eanceinrggy ourE n“teFrparmisei loyp”e rcatuiolnture we expandedIn tetlhligee n“tH muaannuhfaucatunri nCg l(assusch” asa austuomamteedr prcoadruec tiponr oligneras man dt o easSeh oprta-rTeernmting

transformation impact (+) consumption of equipment in real time optimize production Downstream of the Opportunity AI quality inspection) can reduce human errors increase the yield of Mid-termscheduling and reduce carbon emissicohnsa.llenges and strengthenvealdue scuhpainport for vulnerable groupsqu aelnifiseud rpinrogd uecvtesr aynodn leo wcearn e nfienrdgy bceolnosnumgipntgio na anndd ompapteorriatlu wnaitsyte a. t SLhounagn-tgerhmuan.Actual positive Occupational hazards such as noise Nduostt aabnldy m ienc h2a0n2ic4al ainnjuortiehse r group of employees were honoreAdn uwnistthab tleh ew o"r3k0in-gY eenavrir oGold Service Award." Occupational nment will lead to the loss of skilled

health and safe impact (+) may lead to work-related accidents or occupational diseases.Upstream of the value

Potential negative Safety accidents can lead to work stoWppea gaer ien vcesotmigamtioitntse adn dt o buiclhdain g an inclusive aOnpdp oprtruonsitpy ero

wuosrk eercs oasnyd sintecrmease recruitment and training costs.production Mechanical injury a.c Ociduern mts imssaiyo nc aguosee sd irbeecyt olonsdse sv a(mlueed iccarel aretaiotmn—entit is aLboonug-tt evramlue

2024 marks the 45itmhp aacnt n(-i)versary ocfo mSpheunasnatgiohnu faonr loDsrsievse -affecting thes hparoridnugc.t ioTnh rporougrhes s.cholarsh

Einpt efruprnisde sop ewraeti ohnelp underprivilegedc osmtupednesnatiso np) uarnsdu ien dtihreecitr lodsrseas m(psro. dTuhcrtioun gshus ploengsi-otne romrd erl delraly) .care we bring

line. As we look back on our journey we have come to warmth to those in need. Through our “Common Prosperity Farm” initiative we support rural revitalization. We also empower dozens of

deeply understand Atchtuaat l tphoesi tgivee ars Doifs rmupatinounsf ainc truawri material supply (such as shortages of special

Policies such as the EU Carbon Border Tax (CBAM) may increase the

Upstream of the value

Supply chain impact (+) steel) may lead to npgro dnuoctt ion halts ansdm aaflfle catn odr dmere deiluivmer-ys. ized sucphapinliers through capability-buildingc opstrso gofr ahmighs- caamrbopnli fsyuipnpgl yt hchea irnips.ple effects of responsible growth.onlys ecdurriivtye a ndin dustProiatel ntigalr owth—thEnevyi ronamlseon talc iassrurye s inth tehe supply chain (such as high-carbon- Enterprise operation Risk + Developing local or nearshore suppliers can reduce reliance on a single Mid-term

warmsusthta ionaf bsiluitsytainanbelgea ptivreo gimrepascst. Ovemeris tshioen psuapsptl i4er5s) yaenadr lsab or problemWs e(s uachre a se wnasguer ainrrgea rtsh) e geDaorwsn sotrfe agmo ovf ernance

Onpepovreturn irtyust. soInutrceeg. rity is the foundation of trust. We have established aLo ndge-dteircmated

(-) may lead to joint liability and damage the brand reputation the value chain Cooperate with suppliers to carry out energy-saving renovations and

Shuanghuan has advanced hand in hand with China’s Compliance & Ethics Committee which I chair to lead oshuarr eG throe ubpen-wefitdse o fe cfafrobrotns reind upctrionm. oting ethical conduct. All suppliers are

reform and opening-up upholding the mission of required to sign our Supplier Integrity Commitment and inteTrhne aclolym poanuyr c“oinnttineugoruitsyly pprooimnot”te sr ethwea greda rs qyusatleitym im apnrodv e1m0e0n%t employee compli-Actual positive“Changing the seimlf-psaucft f(i+c)iency pGaetatre franil uroe fm atyh ele adg teoa mr echanical eaqnucipem ternati nminalgfu nccotvioenr aangde enU

pusrtree atmh aoft thae cvaulue hain lture of ethics andp raocjeccot umnatiantbaiilniitnyg iasn eomutsbtaendddinegd q utahlritoy ulegvehlo aumto tnhge it so pregearns' ization.Product safety Short-Term

indusatnrdy q uabliteycominPgo tenat ial

cause safety accidents. Risk + products which brings about word-of-mouth effects and business

global Qleuaadliteyr proin precinegative impact blems can stiroigng er a crisis Lofo couksitnogm ear htreuasdt and affect

Enterprise operation

we will emDbowrancstere atmh eo f global suOsptpaoinrtaunbiitlyity aegxpeannsio

Mid-term

dan .with even greater openness. We will develop more sustainabletransmission” and( -) staying true mtaor keot ushr arce.ore value:

Long-term

solutions such as net-zerothe value chain

If a product quality accident occurs it may lead to product recall and

"Better every time always." From the beginning we factories digital transformationc ucsitrocmuelar rlo essc.onomy and rural revitalization.haEvme prleomyeea irnigehdts c omAmctuitatle pdo stiotiv iem proOvuitnstgan pdirnog dtaulecntt sq aunadl iat ysta ble team oWf eem pslotyreivees btroin gc sotlalbalbe orates Uwpsittrhe agml oofb tahle pvaaluret ners to drive technological innovatchain Opportunity The company continuouioslny aatntrdac stsh haipghe- laev mel otarleen gtsr eanedn eexrp aanndds situs stainable future.praontde cdteivneglo pmtheen t enimviproacntm (+e)nt safdeegvuelaoprdmienngt poetemntpiallo foyre per oduct quality and business expansion Enterprise operation talent team by virtue of its good employee rights and development.Long-term

health and safety aAnctdu aul ppohsoitilvdeing integrity. These princi- Upstream of the value Zhejiang Shuanghuan Driveline Co. Ltd.Anti-commercial If company personnel accept kickbacks from suppliers it will lead to a ples have continueidm ptaoct s(+h)ape and

Corruption can erode corporate profits undermine internal fairness and

bribery and anti- a

fefexcpt eamnpdlo yoeue rm soruaslet.ain- chain decline in the qualityC ohfa riarmw amn aMterr. iawlsu oCr hinafnlagtHeodn cgosts

abilitcyo srrturpattioengy. Potential negative Corruption scandals can damage a company's image and lose the trust of

Enterprise operation Opportunity Long-term

customers and investors. Downstream of the

The sales team obtaining orders through improper means may lead to

impact (-) value chain chain legal disputes.影响范围

112024 Sustainability Report

MessSaugseta firnoambl et hDee Cvehlaoirpmaennt Governance

From making to smart shaping from growth to shared thriving

Corporate Governance Structure

In 2024 sustainability at Shuanghuan encompasses climate action circular economy smart manufacturing and supply chain

We have established a comprehensive corporate governancere ssiltireunccteu—rew toov eenn isnutroe evthearyt adsepceicstio onf- mouark ionpge rations.processes are scientific transparent and compliant. Our goWveern raenmcea infr camomewmoitrtke dc otom gprriesens tlohwe -cGaernbeornal and circular development. Aligned with China's “3060” carbon peaking and carbon

Meeting of Shareholders the Board of Directors and the Supervniseourtyr aCliotym gmoiattlsee w cel eiassrluye de tlihnee aSthiunagn rgohlueas na nCadr bon Neutrality Action Plan addressing emissions across operations our value chain

responsibilities. Specifically the Supervisory Committee ovaenrsde epsr odcuocrtp olirfaet-ec ycolep.e Aractrioosnss outor fagcuialitriaenste we e have advanced “zero-waste factory” programs refined hazardous waste tracking

management transparency and compliance. Under the Board of Dthirreocutogrhs dairgeit aspl eencitarlyiz-eedxi tc soymstmeimttese as—ndin ucplugdriandge d our proprietary D-MOM digital manufacturing platform to include real-time energy

the Strategy and Investment Committee Nomination Committeem Coonmitopreinngs aatniodn caanrbdo nA sascecsosumnetnintg Cmoomdmuliettse. eIn our pursuit of energy transition we actively deployed clean energy initiatives such

Audit Committee and ESG Committee—each complementing oanse pahnoottohveor lttaoic epffreocjeticvtesly. Osuupr paoprpt rothaec hb otoa rcdi’rsc ularity continues to evolve with efforts to optimize life-cycle design and increase

decision-making processes. resource efficiency and regeneration.We continue to drive industry progress through innovation. With Fine Intelligent Technology as our digital innovation arm we

Shareholders Meeting

are spearheading the transformation of smart factories across our operations. In Zhejiang Shuanghuan we have pioneered the use

of laser-engraveAdu d“git eCaorm fmooitteperints” and AI-based recognition to give each gear a unique digital identity—building trust and

Board of Supervisors transparency into the global supply chain. Our precision in EV gears continues to lead the field and our advances in reducer

systems have Nsuomccineastsiofunl lCyo bmrmokitetene foreign technology monopolies.We are building a stronger more caring workforce. Employee well-being is a top priority. Our occupational health and safety

systems ensure a safe working environment while mentor-ship programs and leadership training offer clear career development

Board of Directors pathwaySst.r aEtemgbicr aancdin Ign veosutrm e“nFta Cmoimly”m icttueleture we expanded the “Huanhuan Class” a summer care program to ease parenting

challenges and strengthened support for vulnerable groups ensuring everyone can find belonging and opportunity at Shuanghuan.Board of Directors

Secretary Office Notably inC o2m02p4en asantoiotnh earn dg rAosuspes somf enmt ployees were honored with the "30-Year Gold Service Award." Committee

We are committed to building an inclusive and prosperous ecosystem. Our mission goes beyond value creation—it is about value

The Management

2024 marks the 45th anniversary of Shuanghuan Drive- sharing. Through EscShGo Claormshmipit tfeuends we help underprivileged students pursue their dreams. Through long-term elderly care we bring

line. As we look back on our journey we have come to warmth to those in need. Through our “Common Prosperity Farm” initiative we support rural revitalization. We also empower dozens of

warmth of sustainable progress. OvAers ththee p acsotm 4p5a nyey'asr sh ighest deWciesi oanr-em eaknisnugr inbgod tyh eS hgaeraerhso lodfe rgs oMveerentianngc e never rust. IInnt e2g0r2ity4 isS hthuea nfoguhnudaanti ohne lodf 3tr uGste. nWerea lh Maveee etisntagbsl isohf eSdh aa rdeehdoilcdaetersd

ShuaSnhgahrueahno lhdaesr sa dvanced hand ind ehtearnmdi nweist hc oCrhpionraa’tse policiesC oanmdp liinavnecset m&e nEtt hpiclasn sC oinm mcoitmtepelia nwchei cwh itI hc hair to lead our Group-wide efforts in promoting ethical conduct. All suppliers are

reform Maenedt inogpening-up upholdinregle vtahnet lamwiss.s iIto nre voiefw s and aprepqrouvireesd m taoj osri gmna ottuerr sS suupcphli ears I nbtoeagrrdit yr eCpoomrtmsi tment and inter

annadlly 1 0ou rB “oinatredg rMitye eptoiinngt”s r ewiatrhd 1s yEstSeGm- raenlda t1e0d0 %to pemicp alopypereo cvoemd palit-“Changing the self-sufficiency paatntneurna l foinf antchiea l bguedagr ets and fainnacle a ctrcaoinuinntgin gc opvleanrasg. e ensure that a culture of ethics and aac 1co0u0nt%ab piliatys sis rembedded throughout the organization.industry becoming a global leader in precision ate. Additionally we hosted 5 investor engage-Looking aheadwe will embrace the global sustainability agenda with even greater openness. We will develop more sustainabletrBanosamr ission” and staying true Rtoe spoounr sibcloer efo r vcaoluneve: ning the General Meeting of Shareholders and execut-"Betterd eovfe rDyi rteimcteo rsalways." From the beginning we solutions such as net-zero factories digital transformation

mcirecnutla rs eescsoinoonmsy raenadc hruinragl raenvi taaluizdaiteionnc. e of over 1000 partici-

have remained committed to improivningg it sp rroedsoulcutt iqounas.lity We strive to collaborates with global partners to drive techpnaonlotgsi.cal innovation and shape a more greener and sustainable future.protecting the environment safeCgoumarpdoinsged eomf pslhoayreeeh older and employee representatives the committee

health Banoda rsda foefty and upholding integrity. These princi- Zhejiang Shuanghuan Driveline Co. Ltd.ples hSauvpee crvonistoinrused to shape and

oevxeprasneeds oufirn asnucsitaal ina-nd operational activities and strictly manages risks Chairman Mr. wu ChangHong

ability strategy. throughout all phases—before during and after operations.

122024 Sustainability Report

MBoeasrsd aDgivee rfsritoym an tdh Iend Cepheanidremncaen

We fully recognize the positive impact of board diversity on corporaFter goovmern amncea akndi nsugsta itnaob les dmevealorptm esnth caappabiinlitiges. Wfhreon msele cgtinrgo bwoartd hm etmobe rss hwae ermepdha stizhe ra idvivienrseg composition in terms

of professional background industry experience gender balance and global perspective ensuring comprehensive and inclusive decision-making. Currently our board comprises experts from critical fields

including strategic analysis corporate management marketing finaIn c2ia0l 2m4a nsaugsetmaiennatb ilriitsyk caot nStrhoula tnegchunaonlo geincaclo imnnpoavsasteiosn c laimnda tseu satacitnioanbi litcyi.rcular economy smart manufacturing and supply chain

resilience—woven into every aspect of our operations.Shuanghuan Driveline’s board currently has nine directors among whom three are independent directors accounting for one-third of the board. These independent directors provide objective impartial

We remain committed to green low-carbon and circular development. Aligned with China's “3060” carbon peaking and carbon

and professional insights to support robust decision-making. Additionally we actively promote gender equality with one female director presently serving on the board.neutrality goals we issued the Shuanghuan Carbon Neutrality Action Plan addressing emissions across operations our value chain

Through continuous optimization of board structure the Group enhanacneds ptrraondspuacrte lnifcey- ciny cgloev. eArncaroncses osutrre nfagcthileitnies sri swk em hanaavgee amdevnatn ccaepda b“zilietireos- wanadst ed efeapcetonsry o” upr rcoogmrammitsm ernetf intoe dso hciaazl arerdspoounss iwbialistyte. Cturarrceknitnlyg

the board members include experts in multiple key fields such as stratthergoicu ganha dlyisgiista ml eanntargye-mexeitn tsy mstaermkestin agn dfi nuapngcriaald meda noaugre mpreonptr ireistak rmy aDn-aMgOemMe ndtig tietaclh mnoalonguyfa dcetvuerilonpgm pelanttf oarnmd tsou sitnacinluadbele rdeeavl-etliompem eennte.rgy

monitoring and carbon accounting modules. In our pursuit of energy transition we actively deployed clean energy initiatives such

as photovoltaic projects. Our approach to circularity continues to evolve with efforts to optimize life-cycle design and increase

Sustainability Governance Fraremsourecew effoiciernkcy and regeneration.We continue to drive industry progress through innovation. With Fine Intelligent Technology as our digital innovation arm we

Shuanghuan Driveline has established a robust sustainable developamree nspt e(Eanrhvieroadnmingen tthael tSroacnisaflo armnda tGioonv eorfn samncaer)t ffraacmtoerwieosr kac eronsssu roinugr tohpaet rsautisotnasin. aInb leZ hdeejviaenlogp Smheunatn sgthrautaengi ews ea rhea vime ppleiomneenetreedd atht ee vuesrey

level—from decision-making to execution—so that sustainability prionfc iplaleses ra-eren gdreaevpeldy e“mgebaerd dfeodo tipnr itnhtes ”c oamndp aAnyI-’bs aospeedr artieocnosg. nition to give each gear a unique digital identity—building trust and

transparency into the global supply chain. Our precision in EV gears continues to lead the field and our advances in reducer

systems have successfully broken foreign technology monopolies.TWhee B aoraer db oufi lDdiirnegc tao rss tsreornvgese ras mthoer hei gchaersint gd ewciosiroknf-omrcaek.in Egm bpoldoyy efoer wtheel lc-obmeinpgan iys’ sa s utostpa ipnariboirliittyy .s tOrautre goyc.c Au pdaetdioicnaatel dh eEaSlGth Caonmdm siat-fety

Decision- systems ensure a safe working environment while mentor-ship programs and leadership training offer clear career development

Making Level Board of Directors ESG Committee

tee has been established at the board level to formulate sustainability strategies oversee the implementation of ESG goals and ensure

thpaatt hEwSGay ps.o lEicmiebs raalciginng w iothu rb o“Ftha minitleyr”n actuioltnuarle a nwd ed oemxpeastnicd esdta ntdhaer d“sH uaas nwheulal na s Cinladsuss”tr ya b esustm pmraecrt icceasr.e T hper oBgoraarmd rteog uelaarslye rpevaireewnsti ng

EcShGa lpleenrfgoersm aanndc est erevnaglutahteens etdh es uepxepcourtti ofonr ovfu tlhnee rEaSbGle sgtrroatuepgsy eannsdu rinintegg eravteersy oEnSeG c faanc tfoinrsd inbteol oitnsg dinegc isainodn -ompapkoinrtgu npirtoyc aets sSehsu. anghuan.Notably in 2024 another group of employees were honored with the "30-Year Gold Service Award."

We are committed to building an inclusive and prosperous ecosystem. Our mission goes beyond value creation—it is about value

2024 marks the 45th anniversary of Shuanghuan Drive- sharing. Through scholarship funds we help underprivileged students pursue their dreams. Through long-term elderly care we bring

line. As we look back on our journey we have come to Swenairomr tehx etoc uthtioveses ainn dn efuendc. tTiohnroaul gdhep oaurtrm “Ceonmt hmeaodns P arroes preesrpityo nFsaibrmle” f oinri tdiartivivineg wEeS Gsu ppopliocriet sr ufroarlw raervdit.a Tlihzaetyi oans.s eWses aanlsdo memanpaogwee mr adtoezreianl s of

deeply understand that the gears of manufacturing not small and medium-sized suppliers through capability-building programs amplifying the ripple effects of responsible growth.only drive industriCalo mgpraonwy tehx—ectuhteivye s aanlsdo l eacdaerrrsy the topics and regularly report progress to the Board. To enhance ESG awareness and promote cross-departmental collaboration the Management Level of various functional departments

warmth of sustainable progress. Over the past 45 years cWomep aanrey ceonnsduurcintsg rethgeu lagre EaSrGs otrfa ingionvge arnnda ninctee rnnealv ceor mrumsutn. icInatteiognr itpyr oigs rathmes ffoour nmdaantiaogne mofe ntrt upset.r sWonen ehl.ave established a dedicated

Shuanghuan has advanced hand in hand with China’s Compliance & Ethics Committee which I chair to lead our Group-wide efforts in promoting ethical conduct. All suppliers are

reform and opening-up upholding the mission of required to sign our Supplier Integrity Commitment and internally our “integrity point” reward system and 100% employee compli-“Changing the self-sufficiency pattern of the gear ance training coverage ensure that a culture of ethics and accountability is embedded throughout the organization.industry becoming a global leader in precision TLhoeo Ckihnagir mahaena'sd owffeic ew hilal se emsbtarbalciseh ethde a ng lEoSbGal wsoursktianign agbrioliutyp awgheincdha i sw reitshp oenvseinb leg rfoera toerrg aonpizeinnge asnsd. Wpreo mwoiltli ndge svpeelocpif icm woroer ks rueslatateinda bletransmission” and staying true to our core value:

"Better every time always." From the beginning we tos oslutsitoaninsa sbulec hd eavse nloeptm-zenrot afancdt oimriepsle mdiegnitainl gt rtahnes fcoormaptainoyn's cviracriuoluasr eEcSoGn osmtanyd arndds .r uItr aeln rseuvrietsa litzhaatti obnu. siness units factories and

haEvxe cruetmioani nLevde cl ommCihttaeirdm taon 'ism Opfrfiocveing prEoSdGu cWt oqrukainlgit y frWonet lsinteri vem tpol ocyoelleasb orpaetreast ew iinth agclcoobradla pnacret nweirtsh tEoS dGr ivseta ntedcahrdnso loing iaGroup c

raela isn nsouvcaht iaosn garnede ns hmapaen uaf amctourrein gr eenneerrg ya ncdo nsusesrtvaaintiaobnl ea nfudt ure.protecting the environment safeguarding employee emission reduction workplace safety circular economy practices and social responsibility initiatives. The company also conducts

health and safety and upholding integrity. These princi- regular ESG data monitoring and compliance audits leveraging the oWZhoerjkiasn dg igShituaal npglhautfaonr mDr iv(seelinee [ DCoig. itLatdl .Transformation]) to enhance

ples have continued to shape and expand our sustain- Chairman Mr. wu ChangHongESG execution efficiency.ability strategy.

1301

Flowing with Green

Circularity

This chapter responds to the following SDGs:

Climate Change Response Energy Use Water Resource Use

GHG Emissions(Scope 1+2) Total Energy Consumption Energy Intensity Total Water Consumption

263841.62 tons CO2e 61096.14 tce (equivalent value) 0.17 tce (equivalent value) / RMB 10000 987881 tons

of Industrial Value Added

GHG Emission Intensity (Scope 1 + 2) 155889.63 tce (calorific value Water Intensity

0.74 equivalent) tons CO2e per 10000 RMB of 0.44 tce (calorific value equivalent) / RMB 2.78 tons per RMB 10000

Industrial Value Added 10000 of Industrial Value Added of Industrial Value Added

142024 Sustainability Report

Climate Change Response Enhancing Organizational Management CapacityTo effectively carry out group-wide carbon management initiatives Shuanghuan

Driveline established a Carbon Emissions Office tasked with overseeing the compa-

ny’s greenhouse gas (GHG) management. To strengthen the office's capabilities the

Corporate Governance company has appointed dedicated professionals to lead its low carbon agenda and actively fosters talent development in this area.Composition and Responsibilities of

Strengthening the Governance Structure Carbon Leadership Task Force and Carbon Emissions Office

In response to China’s national "3060" goals (carbon peak by 2030 and carbon neutrality by 2060) Shuanghuan

Driveline established a Carbon Neutrality and Dual Energy Control Task Force in September 2021 along with a Division Personnel & Position Main Responsibilities

Carbon Emissions Office to comprehensively advance its low carbon agenda.The Board of Directors and the Provides organizational leadership for

ESG Committee bear clear supervisory responsibilities and jointly oversee all climate-related efforts. They Leader General Manager carbon emission work promotes the

provide strategic guidance for managing climate-related risks and formulate climate goals and targets.The Task Deputy company's green and low-carbon Carbon Neutrality and Dual Energy Control Task Force identifies and assesses climate-related risks and opportu- Force VP of Operations strategy approves action plans and

nities promoting carbon neutrality initiatives to achieve the climate strategy set by the board and ESG commit- Leader makes key decisions on major issues

tee. The Carbon Emissions Office in coordination with relevant functional departments ensures that climate risk Members Subsidiary GMs related to carbon management.management measures are effectively implemented on the ground.Receives directives from the task

Head of force leads the development and

ESG Committee Director Chairman’s coordination of company-wide carbon

To study and make recommendations on the company’s long-term development strategy Office action plans and delegates specific

and major investment decisions as well as the establishment and improvement of a tasks.comprehensive risk management system. Assist the Board in evaluating the company’s ESG

performance and the risks and opportunities it faces formulate ESG-related policies Office

strategies and targets and organize the coordination supervision and review of ESG policy

implementation and progress toward targets. Carbon Handle daily coordination progress Team Specialists tracking communication and imple-Members from Subsidiaries mentation of tasks assigned by the

task force.Shuanghuan Driveline places strong emphasis on talent development for its

Group Carbon Emissions Carbon Neutrality and Dual Energy Departments Responsible for low-carbon strategy actively building a robust pipeline of professionals to support

Office Control Task Force Carbon Management the company’s low-carbon transition.Responsible for oversee- Each subsidiary has established a In accordance with the annual

ing the Group’s carbon Carbon Neutrality and Dual Energy carbon neutrality work plan

management in line with Control Task Force responsible for relevant functional

internal and external organizing coordinating and departments are clearly

policy developments and directing efforts related to carbon designated. Department heads

for formulating medium- neutrality and energy consumption collaborate and coordinate

and long-term carbon control. efforts to jointly advance the

neutrality plans as well as implementation of carbon

annual implementation neutrality initiatives.strategies.Responsibilities of the Carbon Neutrality and Dual Energy Control Task Force Carbon Emissions Training Program

152024 Sustainability Report

Reporting and Monitoring Mechanism Climate Change Strategy

Shuanghuan Driveline applies the D-MOM digital manufacturing Shuanghuan Driveline integrates climate considerations into its existing enterprise risk management framework to remain

operation management platform to obtain relevant data such as proactive and resilient. Informed by its own operations and industry trend the company conducts scenario analyses using

energy utilization and carbon emissions regularly. Each subsidiary physical and transition pathways developed by authoritative global organizations such as the Intergovernmental Panel on

company reports the progress of its "low carbon" work to the Climate Change (IPCC) and the International Energy Agency (IEA) to identify potential risks and opportunities.Carbon Emissions Studio on a quarterly basis including the

performance of the targets and the progress of key emission Physical Scenarios

reduction projects. The Carbon Emissions Office conducts a

comprehensive assessment of the carbon reduction work of each The company adopts two Representative Concentration Pathways

Scenario Description

subsidiary company in combination with the climate goals set by (RCPs) from the IPCC to evaluate physical climate risks:For physical risks the company adopts two Representative Low-emission Representative Concentration Path (RCP) 2.6 is used

the group and specific data indicators (KPIs) such as carbon Concentration Pathways (RCPs) from the IPCC to evaluate scenario as a temperature control scenario of 2°C or below

emission intensity and energy use efficiency including the actual physical climate risks for the two scenarios respectively.reduction situation and the effect of energy-saving project High-emission Representative Concentration Path (RCP) 8.5 is used Shuanghuan Driveline focuses on the impact of acute and scenario as a temperature control scenario of 2°C or abovepromotion. chronic risks in high-emission scenarios.In addition Shuanghuan Driveline actively collaborates with

external partners to mitigate risks associated with extreme Transition Scenarios

weather events enhancing its climate resilience.For transition risk analysis Shuanghuan uses NZE (Net Zero Emissions by 2050): From the IEA’s World Energy Outlook representing a

scenario that aligns with keeping global warming within 2°C. STEPS (Stated Policies Scenario): Reflecting a trajectory based on currently

announced and implemented policies which corresponds to a temperature rise exceeding 2°C. In assessing transition risks the compa-

CASE Typhoon Risk Response Measures ny focuses on how changes in external policies market dynamics and technological developments may affect its operations

investment decisions and long-term strategy.Zhejiang Shuanghuan has actively partnered with the Scenario Analysis Models

Taizhou Meteorological Bureau to develop a targeted

response plan based on the city's official typhoon warning Physical Scenarios (IPCC-Based)

levels. The company identified areas most susceptible to

typhoon impact and compiled a detailed risk zone list. The Scenario RCP2.6（IPCC） RCP8.5（IPCC）

Environmental Health and Safety (EHS) Department

conducted on-site assessments of these areas formulated A scenario with very low greenhouse gas

tailored precautionary measures and established Description concentrations requiring CO? emissions to

A scenario without government intervention in

corresponding emergency response levels. A tiered control decline from 2020 and reach net negative

which greenhouse gas emissions continue rising

throughout the 21st century.strategy was then implemented to ensure effective risk before 2100.mitigation and operational safety during typhoon events. Estimated Temperature

Rise by 2100 1.8℃ 4.4℃

Transition Scenarios (IEA-Based)

Scenario NZE（IEA） STEPS（IEA）

A pathway for the global energy industry to A scenario where countries maintain current and

Description achieve net zero emissions by 2050 limiting announced policies without significant change.global warming to below 1.5°C.Estimated Temperature

Rise by 2100 1.4°C (50% probability) 2.4°C (50% probability)

162024 Sustainability Report

Shuanghuan Driveline evaluates climate-related risks and opportunities based on a two-dimensional matrix

that considers both likelihood of occurrence and financial impact. The final impact level is classified into five

categories: Very Low Low Medium High Very High.Impact Assessment of Risks/Opportunities

Degree of impact (Financial impact)

Likelihood of

Occurrence (Based

on Historical 1 – Negligible 2 – Minor 3 – Moderate 4 – Major

Frequency) (≤ RMB (> RMB 100000 (>R MB 500000 (> RMB 1M

5 – Severe

100000) to ≤ 500000) to ≤ 1M) to ≤ 5M) (> RMB 5M)

5 – Frequent

(Occurred every year Very Low5 Low 10 Medium 15 High 20 Very High 25

in past 5 years)

4 – Very Likely

(Occurred 2–3 times Very Low4 Low 8 Medium 12 High 16 High 20

in past 5 years)

3 – Likely Very Low3 Low 6 Low 9 Medium 12 Medium 15

2 – Occasionally Very Low2 Very Low4 Low 6 Low 8 Low 10

1 – Rare or Unlikely Very Low1 Very Low2 Very Low3 Very Low4 Very Low 5

Time Horizons for Climate Risk and Opportunity Analysis

Short Term: Within 1–3 years

Medium Term: Within 10 years

Long Term: By 2050

172024 Sustainability Report

Climate Change Risk and Opportunity Response

Financial Impact Scenario Analysis

Risk Type Risk Value ChainStage Potential Impact Financial Impact Climate Degree of Impact

Category Description Scenario Short- Mid- Long-term term term

1.The typhoon destroyed the production facilities of the base such as factories and warehouses or Facility damage and

Supplier the rooftop photovoltaic facilities. production RCP2.6 Low Low Low

Ty- Logistic Direct 2.Construction workers or other employees were injured and unable to travel or go to and from work

Asset(-) stagnation leads to

phoon causing some production machinery to come to a standstill. Income(-) increased operating Operations 3.The disruption of raw material/product transportation routes has led to the failure of upstream and costs and decreased RCP8.5 Low Low Medium

downstream products to be delivered on time. income

Supplier 1.Employees are prone to heatstroke or other health problems in high-temperature environments and The increase in Heat RCP2.6 Low Low Low

Wave Logistic Direct

the production efficiency of enterprises decreases. energy consumption

Acute 2.The increase in cooling demands for employees' work and equipment operation has led to higher

Outcome(+) leads to increased

Operation operating costs. operating costs RCP8.5 Low Low Medium

1.The flood inundated the production facilities causing direct property losses.

Supplier Extremely Extremely Extremely2.The disruption of raw material or product transportation routes has led to the failure of upstream Production RCP2.6 Low Low Low

Flood Logistic Direct

Income(-)

and downstream products to be delivered on time. stagnation leads to

Operation 3.The government departments suspended the production and operation of enterprises resulting in a Asset(-) decreased in income Extremely

decrease in their operating income. RCP8.5 Low Low Low

1.Continuous heavy rain may cause water to enter the production plant damaging production Facility damage and

Supplier equipment raw materials and finished products. production RCP2.6

Extremely Extremely Extremely

Low Low Low

Heavy

Logistic Direct 2.Construction workers or other employees were injured and unable to travel or go to and from work Asset(-) stagnation leads to Rain causing some production machinery to come to a standstill.Operation Income(-)

increased operating

3.The disruption of raw material or product transportation routes has led to the failure of upstream costs and decreased RCP8.5 Extremely Low Low Lowand downstream products to be delivered on time. income

Supplier

Drought Direct 1.The reduction of available water and the rise in water prices have led to an increase in operating

The increase in RCP2.6 Low Low Low

costs. Outcome(+)

water charges leads

Operation to increased operating costs RCP8.5 Low Medium Medium

1.The increased cooling demands for employees' work and equipment operation have led to higher The increase in energy ExtremelyRising Outcome(+) consumption costs and RCP2.6 Low Low LowDirect operating costs.

ChronicTempera-

ture Operation 2.The working costs of employees and the expenses for equipment insurance and maintenance have Cash flow(-)

employee costs leads

to increased operating

increased. costs RCP8.5

Extremely

Low Low Medium

Rising Supplier Extremely Extremely

Direct 1.Some bases are located in the southeast coastal area with a relatively low terrain. The rise in sea Outcome(+)

Facility damage RCP2.6

Sea leads to increased

Low Low Low

Operation level may force the production bases to relocate. Asset(-)Level operating costs RCP8.5

Extremely

Low Low Medium

Supplier 1.The cost of greenhouse gas emissions has increased and related investments have also risen such More judicial NZE ExtremelyPolicy and Low Low Medium

Legal Risk Direct

as the costs of projects like carbon verification and carbon footprint. Outcome(+) supervision leads to

Operation 2.The trend of carbon tax on international trade imports and exports is obvious which may lead to an increased operating increase in international trade expenditure and greater difficulty in trade. costs STEPS Low Low Low

1.The expenditure of enterprises on the research and development of low-carbon technologies has The demand for NZE Medium Medium Low

Direct increased and the difficulty of technological breakthroughs is unknown. In the short term there is still

low-carbon technolo-

Outcome(+) gies has led to

Technical Risk Operation a risk of excessively high investment costs. increased investment in 2.Enterprises have increased their investment in high efficiency and energy conservation clean energy Asset(-) research and

use and circular economy such as reducing the lifespan of high-energy-consuming equipment. development and STEPS Low Low Mediumhigher operating costs

Direct Opera- 1.Customers tend to purchase more low-carbon products in the market. If customer expectations Failure to meet NZE Low Medium Medium

Market Risk tion Marketing cannot be met it will lead to a decline in operating income. Income(-)

customer expecta-

tions may lead to

and Sales decreased income STEPS Extremely Low Low Medium

1.The failure to meet the expectations of stakeholders for the sustainable development of the A decline in NZE Low Medium Medium

Reputation Risk Marketing and Sales enterprise or the lack of obvious competitive advantages compared with peer enterprises will lead to Income(-) reputation may lead a decline in the stock price and a reduction in the corporate brand image. to decreased income STEPS Extremely Low Low Medium

Physical Risk Transition Risk2024 Sustainability Report

Climate Change Risk and Opportunity Response

Financial Impact Scenario Analysis

Opportunity Value ChainStage Potential Impact Financial Impact Climate Degree of Impact

Category Description Scenario Short-term Mid-term Long-term

Reduce operating

1.Improving the efficiency of resource utilization and process efficiency NZE Medium High High

Resource costs by improv-Direct brings new positive opportunities to enterprises. Outcome(-) ing the efficiency

Efficiency Operation 2.Strengthen the recycling of materials such as steel recycle packaging of resource

materials and enhance the efficiency of resource utilization. utilization STEPS Medium Medium Medium

Energy 1.Increasing the proportion of clean and renewable energy in the energy Reduce operating NZE

Medium High High

Direct

Supply Operation structure can on the one hand reduce carbon emissions and on the Outcome(-)

costs by using

other hand lower energy costs. more renewable

energy STEPS Medium Medium Medium

1.Developing more innovative and low-carbon products such as taking Developing

NZE Medium High High

Innovative Direct

Product ESG factors into account during the design stage can help attract more

Income(+) innovative

Operation environmentally friendly customers and capture a larger market share. products helps increase revenue STEPS Medium Medium Medium

Direct 1.Explore more low-carbon and innovative solutions in the market Exploring new NZE Medium High High

Market Operation conduct low-carbon research together with enterprises in the upstream Income(+)

markets is

Marketing and downstream of the value chain and develop new market opportuni- conducive to

ties increasing and Sales revenue STEPS Medium Medium Medium

1.By enhancing the ESG performance of enterprises and strengthening Establishing a NZE Medium High High

Reputation Marketing the disclosure of ESG-related information it is helpful to establish a Income(+) green brand

and Sales deeper green brand image and improve the competitiveness of products. image helps increase revenue STEPS Medium Medium Medium

Climate-Related Risk and Shuanghuan Driveline manages climate change risks in strict accordance with its comprehensive risk management system which defines clear responsibilities methods and processes.Opportunity Management A structured process has been established for identifying and assessing climate-related risks. Leveraging national

policies regulations and stock exchange listing requirements the company organizes its headquarters and

subsidiaries to evaluate risks based on their specific operational contexts. The company conducts annual risk

Risk and Opportunity Management identification and assessment across all areas. In addition the company also carries out specialized climate risk

assessments for specific projects as needed.A qualitative assessment approach is used to evaluate both the likelihood and impact of potential risks. Identified

risks are prioritized according to their significance and a detailed risk and opportunity inventory is compiled.Based on this list tailored mitigation and response measures are developed to address each identified issue.

Opportunity2024 Sustainability Report

List of Climate Risks and Opportunities

Risk Response Risk Response

Pay close attention to meteorological warnings. Once extreme 1.Enhance employees' awareness of safety precautions provide heat-

weather is detected issue alerts promptly; relieving supplies during hot weather and pay attention to their

Purchase typhoon emergency supplies such as sandbags Heat working conditions;Typhoon

Wave Purchase necessary refrigeration facilities and buy temporary flashlights etc.; Formulate emergency evacuation plans and refrigeration supplies such as ice cubes at critical moments;

emergency measures; Arrange the working hours of employees flexibly;

Formulate a diversified supplier plan. Backup power (peak electricity consumption).Purchase flood control materials and formulate emergency plans Establish and maintain infrastructure to deal with continuous

Flood for the base; Heavy rainfall and regularly inspect the operation status of drainage

Formulate a diversified supplier plan; Rain measures at the base;

Purchase the corresponding extreme weather insurance. Formulate a diversified supplier plan.Enhance employees' awareness of safety precautions provide

Formulate diversified water source plans; Search for alternative

heat-relieving supplies during hot weather and pay attention to

water sources and emergency water sources; Rising their working conditions.;

Drought Enhance employees' awareness of water conservation add Temperature Purchase necessary refrigeration supplies and buy ice cubes and

facilities for recycling water use and reduce water consumption;

other supplies at critical moments.Regularly assess the water risks of the base.Arrange the working hours of employees flexibly.Pay close attention to international and domestic carbon policies

and related regulations;

Rising

Sea Pay attention to climate change and gradually carry out strategic Policy and Formulate carbon reduction plans and energy conservation plans

Level actions to address climate change. Legal Risk and implement them in each base;

Regularly assess the impact of new policies on the company's

operations and supply chain.

202024 Sustainability Report

Risk Response Opportunity Response

Consider ESG factors throughout the entire product lifecycle to Strengthen lean manufacturing of products improve process

Technical achieve reduction and lightweighting and incorporate recyclable Resource efficiency and production design capabilities;

Risk

raw material factors into the design considerations. Efficiency Increase the proportion of recyclable materials used and enhance

the capacity for resource recycling and utilization.Install rooftop photovoltaic systems actively adjust the energy

Energy structure and increase the proportion of more sustainable energy

Establish long-term communication channels with key clients to Supply

Market usage.understand their environmental expectations for the enterprise;

Risk

Improve the environmental performance of the product.Carry out product carbon footprint accounting identify high-emission

stages and reduce carbon emissions throughout the product's life cycle;

During the design stage ESG factors of the product are considered and

Strengthen the communication frequency with key stakeholders Innovative more circular and economical materials and design schemes are used.establish a good feedback mechanism and obtain stakeholders' Product Actively explore new technologies new processes new equipment

expectations for the enterprise's ESG performance in a timely

Reputation and new materials and promote innovative research and manner;

Risk development.Increase the transparency of enterprises' ESG performance and

proactively disclose ESG policies and performance to the outside

world.Expand the scope of cooperation in low-carbon and innovative

Market solutions and jointly develop new markets.Actively expand the scope of cooperation participate in

international ESG conferences and disclose the ESG performance

of enterprises to a greater extent.Reputation Actively expand the scope of cooperation participate in

international ESG conferences and disclose the ESG

performance of enterprises to a greater extent.

212024 Sustainability Report

Carbon Emissions Reduction Management

Carbon Reduction Strategy Area 1 – Operational Emissions Reduction

Shuanghuan Driveline places great importance on supporting

China’s national “low carbon” goals and has developed the Monitoring and Optimization Management

Shuanghuan Driveline Carbon Neutrality Action Plan. In alignment Shuanghuan Driveline is committed to building a systematic data-driven energy

with the requirements of high-quality development in the management system that comprehensively covers all aspects of energy consumption and

new era the company actively integrates sustainability into carbon emissions. By implementing refined monitoring and management mechanisms the

its operations by considering its specific carbon emission company aims to significantly enhance energy efficiency across its operations.profile and analyzing both internal and external factors. Energy Transition

The company actively promotes photovoltaic power and purchases green electricity

These factors include projected business growth internal and other measures to continuously increase the proportion of renewable energy in the

energy-saving initiatives emission data from the upstream company.steel industry and national energy transition policies. By

embedding the low carbon strategy into the Group’s overall Carbon Reduction Strategy Area 2 – Value Chain Emissions Reduction

development plan Shuanghuan has set clear phased targets Product Carbon

for 2030 2040 and 2050 as well as long-term goals. Footprint Certification Supply Chain Optimization and Collaboration

Shuanghuan Driveline works closely with its supply chain partners to optimize supply

This structured approach ensures that carbon reduction chain management and drive the achievement of shared carbon neutrality targets through

measures are carried out in an orderly manner and lays a collaborative efforts.solid foundation for achieving the company’s long-term goal Transport Decarbonization

of net-zero emissions. The company reduces carbon emissions in transportation by optimizing logistics networks

promoting the use of clean energy vehicles and improving overall transport efficiency.Circular Economy

By enhancing resource recovery reuse and efficiency Shuanghuan actively promotes the

development of a circular economy reducing environmental impact across the product

lifecycle.Carbon Reduction Strategy Area 3 – Product Emissions Reduction

Full Lifecycle Product Management

By calculating the carbon footprint of the product and quantifying the carbon emissions of

the product throughout its entire life cycle it lays the foundation for reducing the carbon

footprint of the product in the future.Low-Carbon R&D and Manufacturing

Focus on the carbon emissions of raw materials and the R&D and production stages and

thereby start to gradually reduce the carbon footprint of the products.Product Labeling and Certification

Through obtaining eco-friendly certifications Shuanghuan is committed to transparently

showcasing its green products. These efforts support the company’s long-term goal of

achieving net-zero emissions across the entire value chain by 2050.The carbon neutrality roadmap of Shuanghuan Driveline

222024 Sustainability Report

Metrics and Targets

Target Setting

Shuanghuan Driveline has established an overarching climate goal of reaching peak carbon emissions by 2030 and achieving carbon neutrality by 2050. Based on this roadmap the

company has set near-term mid-term and long-term reduction targets using 2023 as the baseline year:

Annual targets: Reduce energy intensity by 5% each year.Reduce carbon emission intensity by 8.5% each year. Near-term: Achieve a 46% reduction in carbon emission intensity by

2030. Mid-term: Achieve a 30% reduction in absolute operational emissions by 2040. Long-term: Achieve net-zero emissions in company operations by 2050.

Greenhouse Gas Emissions Reduction Initiatives

Shuanghuan Driveline actively promotes GHG reduction through a series of energy-saving and emissions-reduction projects driving the implementation of its dual-carbon strategy

with practical measurable actions.

2024 Key Carbon Emission Reduction Projects

Investment 2024 2024

Project Input Revenue Return EmissionNumber Project Name Project Content (10000 (10000 Cycle eduction Category RMB) RMB) (Year) Volume（tCO2e）

1 Energy-saving Recovery of waste heat from The waste heat from the combustion in the heat treatment workshop is utilized. By installing Technology gas pipeline heat exchangers the waste heat is recovered for use in the cleaning machine 10 25.2 0.39 17.94

2 Energy-saving Recovery of waste heat from air By utilizing the waste heat from the air compressor and installing a waste heat recovery Technology compressors machine the waste heat can be recovered for use in the cleaning machine 15 18.9 0.79 2693.76

3 Management When people leave the Measure machine stops The equipment stops when people leave / / / 4277.81

4 Management Control the power off During the lunch break install a time control switch to cut off the power of the lighting for Measure of the lighting one hour to save electricity 0.2 3.72 0.05 29.09

5 Energy-saving Newly build distributed A new distributed photovoltaic system was built on the roof with an installed capacity of Technology photovoltaic systems 6.348MWp / 62.89 / 2506.84

6 Energy-saving Purchase Green Energy Technology Certificate Promote the use of Green Energy Certificate 11.9 / / 2097

7 Equipment Structural modification The structure of the chip conveyor has been changed effectively separating the grinding wheel Renovation of the chip conveyor dust from water reducing the waste of grinding fluid and lowering the workload of employees 5 / / /

8 Equipment Renovation of the hydraulic system Chongqing Shuanghuan achieved energy-saving effects by transforming the hydraulic Renovation of the gear hobbing machine system of the gear hobbing machine / / / 121.60

9 Energy-saving Recycling and utilization Grinding sludge treated as hazardous waste is compressed into briquettes to extract Technology of waste oil waste oil which is then recycled—effectively reducing oil consumption costs 0 50 0 214.63

232024 Sustainability Report

Metrics Management Pollutant Management

Shuanghuan Driveline continuously tracks its own carbon reduction

performance we calculate greenhouse gas emissions in accordance

with the ISO14064-1:2018 standard. Governance and Strategy

Shuanghuan Driveline strictly complies with relevant environmental laws and standards.Emissions

Greenhouse Gas Emissions generated during operations mainly include dust and particulates from metal surface treatment as

well as exhaust gases from heat treatment. Wastewater is primarily composed of industrial wastewater

Metrics 2023 2024 domestic wastewater and canteen wastewater. Shuanghuan centrally collects all exhaust gas and

wastewater generated during operations and is equipped with dedicated treatment facilities to ensure

emissions meet required standards. Air emissions comply with the Level II standards for new pollution

Total GHG Emissions (Scope 1 + 2)

295460.24 263841.62 sources under the Integrated Emission Standard of Air Pollutants (GB 16297-1996) while heat treatment

(tons CO ? e) emissions meet the Level II standards for metal heat treatment furnaces under the Emission Standard

of Air Pollutants for Industrial Kilns and Furnaces (GB 9078-1996). Wastewater discharge concentrations

Scope 1 – Direct GHG Emissions meet Level III standards of the Integrated Wastewater Discharge Standard (GB 8978-1996) and total

20864.4515834.85

(tons CO ? e) discharge volumes comply with the requirements set in the company’s pollutant discharge permit.To ensure effective operation of its treatment systems Shuanghuan has established an EHS inspection

regime. Safety personnel carry out regular inspections of exhaust gas and wastewater treatment equipment

Scope 2 – Indirect GHG Emissions

274595.79 248006.76 supplemented by unscheduled spot checks to ensure everything functions properly.

(tons CO ? e)

Carbon Emission Intensity Total Control

(tons CO ? e / RMB 10000 industrial 0.39 0.29

output) Shuanghuan Driveline strictly controls both emission concentrations and total discharge volumes in accordance with the limits defined in its pollutant discharge permit and fully complies with legal

Carbon Emission Intensity obligations for environmental information disclosure.(tons CO ? e / RMB 10000 industrial 1.01 0.74

value added) Process Control

Equipment Maintenance and Servicing:Regular maintenance of exhaust gas and wastewater treatment

Notes: 1. The greenhouse gases included in the calculation are: CO ? (carbon dioxide) equipment is enforced to prevent the discharge of untreated heat-treatment exhaust and oily wastewater.CH? (methane) N?O (nitrous oxide) HFCs (hydrofluorocarbons) PFCs (perfluorocarbons) Canteen Wastewater Management:Separate drainage pipelines are installed in dishwashing areas to

SF ? (sulfur hexafluoride) and NF ? (nitrogen trifluoride). prevent wastewater from entering rainwater systems. Canteen wastewater passes through a grease trap

2. The scope of GHG emissions covers nine facilities: Zhejiang Shuanghuan Fine and septic tank with food scraps and waste oil regularly cleaned out.

Motion Technology Hangzhou HQ Dalian Huanchuang Fun Drive Technology Jiaxing Laboratory Wastewater Management:Acidic and alkaline wastewater/solutions from laboratories must be

Shuanghuan Jiangsu Huanou Jiangsu Shuanghuan and Chongqing Shuanghuan. neutralized (pH adjusted to 6–9) before discharge. Toxic waste liquids from chemical analysis must not be

3. The electricity emission factor for 2023 is based on the 2012 China Regional Power Grid discharged into water bodies and are to be collected for centralized treatment.

Average CO? Emission Factor Installation of High-Efficiency Treatment Equipment:New facilities are equipped with more energy- for the East China region: 0.7035 kgCO ? /kWh.efficient and eco-friendly exhaust gas treatment systems.For 2024 the factor is based on the 2022 National Power CO? Emission Factor: 0.5366 Regular Monitoring:Environmental monitoring is conducted periodically by qualified third-party agencies in

kgCO ? /kWh. accordance with regulatory requirements to ensure the validity and accuracy of all inspection certifications.

4. The consolidation method used for GHG accounting is the operational control

approach.

242024 Sustainability Report

Impact Risk and Opportunity Management Metrics and Targets

Shuanghuan has developed and continually improves its Emergency Response Plan for As of the end of the reporting period Shuanghuan Driveline's air pollutant metrics and

Environmental Incidents which is filed with the local ecological and environmental targets are shown in the table below.authorities. The company also conducts regular emergency drills to maintain

preparedness. During special periods—such as major events or episodes of heavy

pollution—Shuanghuan formulates targeted environmental emergency management Pollutant Metrics and Targets

plans detailing emission reduction and production response measures for various

emergency levels.Metrics Unit Emissions in Total approved 2025 Target

List of Shuanghuan Driveline Pollutant Collection and Treatment Facilities 2024 emissions for 2024

Decrease by 3%

Category Pollutant Collection Measure VOCs tons 20.54 35.09 year-on-year

Waste gas from The waste gas from heat treatment is discharged at a height of 15 Decrease by 3%

heat treatment meters after being burned by a small torch NOx tons 2.97 6.92 year-on-year

Quenching oil mist The quenching oil mist is sprayed in the chimney and then ischarged at a height of 15 meters after the oil fume is purified Decrease by 3%

PM tons 3.42 22.86

Shot blasting dust The shot blasting dust is discharged at a height of 15 meters after year-on-year

Waste being dusted by the Venturi spray device Decrease by 3%

gas Cleaning exhaust The cleaning exhaust gas is discharged at a height of 15 meters after COD tons 6.20 11.30

gas electrostatic degreasing year-on-year

Cooking fumes and

exhaust gas from The cooking fumes and exhaust gas from the cafeteria are ischarged Decrease by 3%

the cafeteria at a high altitude on the roof after electrostatic oil removal

NH3-N tons 0.84 2.36 year-on-year

Welding fume Strengthen ventilation in the workshop and adopt roof exhaust and ventilation methods as much as possible

The production wastewater is treated by sewage treatment facilities to

Production meet the sewage treatment plant's pipe connection standards and then

wastewater connected to the pipe. Eventually it is uniformly treated by the sewage

treatment plant to meet the standards before being discharged into the sea

Waste Oily wastewater The oily wastewater from the cafeteria is treated by an oil separator or

water from the cafeteria oil separation equipment and then discharged into domestic sewage

Domestic sewage is pre-treated in septic tanks and then connected to

Domestic sewage the sewage treatment plant's pipe standards. Eventually it is uniformly treated by the sewage treatment plant to meet the standards before

being discharged into the sea

Shuanghuan Driveline Pollutant monitoring work

Main Detection Monitoring

Metrics Frequency Sampling Monitoring and Analysis Method

Determination of Particulate Matter in Exhaust

VOCs、NOx、 At least once Gas from Stationary Sources and Sampling

PM a year On-site sampling Methods for Gaseous Pollutants

(GB/T 16157-1996) etc

At least once Integrated Wastewater Discharge StandardCOD、NH3-N a year On-site sampling

(GB8978-1996) etc

252024 Sustainability Report

Waste Management

Governance and Strategy

Shuanghuan Driveline strictly adheres to laws and regulations such as the Law of Source Reduction

the People’s Republic of China on the Prevention Administrative Measures for the Transfer of

Hazardous Wastes and Control of Environmental Pollution by Solid Waste the Pollution Control Use of low-toxicity low-hazard raw materials to minimize environmental impact.Standard for Storage and Disposal of General Industrial Solid Waste and the Pollution Control Process and equipment optimization through technological innovation to reduce

Standard for Storage of Hazardous Waste. The company has established a dedicated Waste waste generation during production.Pollution Control Management Procedure to guide compliance and operations. Regular

reviews are conducted to identify and register all hazardous chemicals with full

compliance ensured through careful inspection documentation and reporting. As part Resource Utilization of General Solid Waste

of the company’s 14th Five-Year Plan Shuanghuan has set clear targets for reducing

hazardous waste generation with a focus on technological upgrades to minimize Collaborate with supply chain partners to promote waste recycling and the use

hazardous waste. The company actively implements its primary responsibility for waste of recycled steel establishing a closed-loop model of production–recovery–

management adheres to the basic principles of "reduction resource utilization and reproduction.harmlessness" strives to minimize the generation of its own waste and strictly controls Implement paperless office practices reduce single-use paper cup consumption

the environmental risks that waste may cause. recycle discarded packaging through manufacturers and entrust damaged items to

Zhejiang Shuanghuan was awarded the title of "Waste-free Factory" in Zhejiang external units for reuse.Province in 2021 and Shuanghuan has been continuously promoting the active

construction of "Waste-free Factories" in all its base factories.Compliant Disposal of Hazardous Waste

Accurate source classification: Identify all hazardous waste generation points

Impact Risk and Opportunity Management label hazardous waste clearly and establish a comprehensive tracking list and

ledger.With the goal of becoming a "Zero-Waste Factory" Shuanghuan Driveline has Strict storage controls: Build and operate temporary hazardous waste storage

developed a comprehensive waste management strategy focused on three major facilities in compliance with laws and regulations; ensure proper categorization and

principles: source reduction resource utilization and safe disposal of general and zoning; strictly prohibit open-air storage.hazardous waste. This includes actions across policy education system capacity Enhanced utilization and disposal management: Some hazardous wastes can

building R&D exploration implementation of key projects information system be recycled—for example waste oil recovered from compressed grinding machine

construction and targeted supervision and inspections. dust. Non-recyclable hazardous waste is entrusted to licensed professionals for safe

transfer and disposal.The company conducts internal audits for general waste management and on-site

inspections of hazardous waste disposal vendors to ensure full compliance. At the

same time Shuanghuan actively optimizes its waste management model enhancing

both environmental performance and operational efficiency.

262024 Sustainability Report

CASE On-Site Inspection of Hazardous Waste Disposal Vendors Metrics and Targets

Zhejiang Shuanghuan develops an annual evaluation plan and on-site assessment checklist for hazardous As of the end of the reporting period the waste treatment

waste disposal vendors and completes the full coverage of hazardous waste testing for suppliers during the metrics of Shuanghuan Driveline are shown in the following

reporting period. Vendors are assessed and scored based on three key criteria: qualifications waste treatment table.practices. The hazardous waste assessment of 100% of suppliers was completed during the reporting period.Shuanghuan Driveline Waste Treatment Metrics

Metrics Unit 2024 2025 Progress Target

Total amount

of hazardous tons 3470.81 /

waste

Density of tons/Output

hazardous value of 10000 0.0039 /

waste RMB

CASE Hazardous Waste Inventory Data Management

Density of tons/10000 Decrease

hazardous RMB of 0.0098 by 3%

Shuanghuan Driveline currently manages 11 types of hazardous waste each tracked through a dedicated paper- waste industrial year-on-

based ledger. A designated staff member is responsible for daily recording of inbound and outbound inventory. added value year

Before hazardous waste enters storage it is weighed using the “Zhegu Code Weighing System” which also

prints a corresponding waste label. The inbound data is then automatically uploaded to the Zhejiang Provincial Total amount

Solid Waste Information System ensuring real-time synchronization with the electronic waste ledger.For of general tons 24393.67 /

outbound waste the disposal transfer volume is calculated based on the vehicle's weight recorded at the waste

facility gate which is cross-checked with the waste transfer manifest to ensure accuracy and consistency.Density of tons/Output

general waste value of 10000 0.0271 /RMB

tons/10000 Decrease

Density of RMB of by 3%

general waste industrial 0.0687 year-on-

added value year

272024 Sustainability Report

Ecosystem and Biodiversity Protection

Biodiversity is the foundation of ecological balance and a vital pillar for human biodiversity vulnerability. The company attaches great importance to minimizing the

survival and development. Shuanghuan Driveline takes a comprehensive and proactive impact on the ecological environment during its production and operation. It strictly

approach to biodiversity protection implementing multiple measures to help preserve monitors the discharge of pollutants such as waste gas and waste water from each

ecological integrity stability and balance. production base to avoid negative impacts on the natural ecological environment.The company strictly complies with the E nvironmental Impact Assessment Law of the Shuanghuan Driveline avoids disturbing the habitats of wild animals preventing soil

People’s Republic of China and other relevant environmental regulations. For all new erosion and deforestation. Actively participate in the work of protecting biodiversity.projects across its locations biodiversity protection and land use assessments are In the future Shuanghuan is committed to actively participating in and collaborating

conducted throughout the entire lifecycle—from construction to operation—in with local environmental protection departments to carry out various ecological and

accordance with legal requirements. Ensure that the locations for project development environmental protection projects.and operation are far away from ecological conservation red lines and areas of high

282024 Sustainability Report

Environmental Compliance Management

Shuanghuan Driveline places great emphasis on environmental compliance strictly

adhering to relevant laws regulations and planning guidelines including the Air

Pollution Prevention and Control Law the Negative List Guidelines for the Development of

the Yangtze River Economic Belt the Zhejiang Province 14th Five-Year Plan for Ecological and

Environmental Protection and the Law on the Promotion of Cleaner Production of the People's

Republic of China.Based on external regulatory requirements internal compliance systems and actual

operational needs Shuanghuan Driveline has built a sound environmental management

system to effectively manage its environmental responsibilities monitor risks

and fulfill its obligations. The company has also established internal management

documents such as the Environmental Protection Management System to clearly define

its environmental management policies and responsibilities. By the end of the

reporting period all the production bases that have been officially put into operation

had achieved full certification under the ISO 14001:2015 Environmental Management 环境管理体系认证证书

证书号：55422E10451R0M

System. 兹证明双环传动（重庆）精密科技有限责任公司

统一社会信用代码：91500108203438328E

注册地址：重庆市南岸区牡丹路1号邮编：401336

经营地址：重庆市南岸区牡丹路1号邮编：401336环境管理体系符合标准

GB/T 24001-2016/ISO 14001:2015

认证/注册范围：

汽车齿轮和齿轮轴的制造及其场所所涉及的环境管理相关活动

To avoid legal risks and compliance with other requirements while ensuring the 颁证日期：2022 年 03 月 18 日有效期至：2025 年 03 月 17 日换证日期：2024 年 04 月 03 日

在证书有效期内，获证组织每年至少接受一次监督审核，审核合格后，机构更新二维码信息，证书方为有效。

证书状态查询

compliance of the company's environmental management system occupational health 签发中澜认证有限公司

and safety and energy management system operations. According to the above 地址：重庆市两江新区天宫殿街道泰山大道东段68号(自编号6F-1-2)邮编：401121

电话：023-67627300

注:认证注册范围不包括未获得有效的国家规定的相关行政许可、资质许可的产品/服务范围;

该证书信息可在国家认证认可监督管理委员会官方网站( www.cnca.gov.cn)及本机构官方网站（www.zlrz.org.cn）查询。

requirements Shuanghuan Driveline began to promote the compliance evaluation

work from Zhejiang Shuanghuan Jiangsu Shuanghuan and Jiaxing Shuanghuan.In accordance with relevant standards and company documentation it compiles a ISO 14001 Environmental Management System Certification

compliance evaluation report to summarize areas needing improvement and ensure

system operation remains fully aligned with legal and regulatory requirements thereby

minimizing legal risks.Zhejiang Shuanghuan had received multiple honors including National Green Factory

Provincial-Level Green Enterprise Water-Saving Enterprise and Zero-Waste Factory

and added National Green Supply Chain Enterprise in 2024. Chongqing Shuanghuan Shuanghuan also actively conducts training in environmental compliance.was certified as a National Green Factory; Jiangsu Shuanghuan was recognized as a During the reporting period the company organized 11 training sessions Municipal-Level Green Benchmark Enterprise an Advanced Unit in Water Conservation

totaling

and an Annual Water-Saving Enterprise; and Jiaxing Shuanghuan was designated a 1157 hours with 591 participants in total.Provincial-Level Green Factory.

292024 Sustainability Report

In 2024 Shuanghuan Driveline issued its Emergency Response Plan for Environmental

CASE Environmental compliance training for Shuanghuan Driveline Incidents which was officially filed with the Taizhou Municipal Bureau of Ecology and

Environment. The company’s Environmental Health and Safety (EHS) Department also

developed the Environmental Incident Emergency Drill Plan and carried out corresponding

emergency response drills.During the reporting period no major environmental incidents occurred

and no significant administrative penalties were imposed on the company.CASE Hazardous Chemical Spill Drill

June 2024 Zhejiang Shuanghuan conducted an emergency response drill

simulating a hazardous chemical spill. The scenario involved the leakage of a

chemical drum with warehouse staff administrative personnel the emergency

response team and the spill containment team each performing their roles

according to predefined responsibilities.A total of two enterprises namely Shuanghuan Driveline and its major subsidiaries

have been included in the list of enterprises that disclose environmental information in The drill provided employees with hands-on experience in correctly handling

accordance with the law. For details please refer to the table below. hazardous chemical spills across different work processes significantly

enhancing awareness of safety and environmental protection in the use of

Information on Shuanghuan Driveline Key Environmental Control Units hazardous substances.No. Enterprise Name Category of Key Units Query Index

Key water environment

Zhejiang Shuanghuan polluters key air Publicly available web

1 Driveline Co. Ltd – environment polluters

Yuhuan Base. and environmental risk sites

control units in Taizhou City

Shuanghuan Gear Environmental Risk Publicly available web

2 (Jiaxing) Precision Control and Management

Manufacturing Co. Ltd. in Jiaxing sites

302024 Sustainability Report

Energy Use

Governance and Strategy

Shuanghuan Driveline regards energy management as one of the key drivers for achieving

low-carbon green manufacturing. The company promotes efficient and sustainable

operations by enhancing management systems driving lean improvements boosting

energy efficiency and adopting renewable energy sources.In alignment with standards such as ISO 50001 the company has developed the Energy

Management Manual of Zhejiang Shuanghuan Driveline Co. Ltd. and established a comprehensive

energy management system. This system supports the certification efforts of both the Zhejiang

Shuanghuan and other production sites. By the end of the reporting period three facilities—

Zhejiang Shuanghuan Jiaxing Shuanghuan and Jiangsu Shuanghuan—had successfully

obtained third-party energy management system certifications.兹证明江苏双环齿轮有限公司能源管理体系认证证书

统一社会信用代码：913208037754085709

证书编号：R197EnMS240432兹证明

双环传动（嘉兴）精密制造有限公司

统一社会信用代码：91330483MA28A1TJ5E

注册地址：浙江省嘉兴市桐乡市桐乡经济开发区文华南路1235号邮编:314500

经营地址：浙江省嘉兴市桐乡市桐乡经济开发区文华南路1235号邮编:314500其能源管理体系已通过申一检测认证有限公司的评审；符合管理体系符合

GB/T 23331-2020/ISO 50001 : 2018

RB/T 119-2015《能源管理体系机械制造企业认证要求》标准要求

管理体系范围认证范围：

齿轮和轴的制造所涉及的能源管理活动（综合能耗及能耗核算边界见附件）

本证书自有效期起始日期后的每年度进行监督审核，监督合格发放《年度监督审核合格通知书》和年度审核报告为准本证书信息可在国家认证认可监督管理委员会官方网站(www.cnca.gov.cn)上查询

本证书信息可在认证机构官方网站(www.china-isc.org.cn)上查询

证书编号： R306EN14790

证书首次注册日期：2023年11月23日发证日期：2024年10月21日

有效期至：2027年10月20日本次证书发证日期：2024年10月25日

证书有效截止日期：2026年11月22日

签发：

证书二维码获证组织必须根据认证服务合同规定定期接受监督审核并经审核合格后此证书方继续保持有效。

认证证书是否有效应登陆 www.shen1.net 或扫描以上二维码查询。本证书信息亦可在国家认证认可监督管理委员会官方网站（www.cnca.gov.cn）上查询。

地址：中国·上海·松江区九亭镇顺庆路650号4幢-1邮编：201612

Energy Management System Certificates

Impact Risk and Opportunity Management

Shuanghuan Driveline constantly optimizes its own energy management and promotes

technological innovation. The company's energy use strategy focuses on three aspects:

monitoring and management optimization promoting energy transformation and

implementing energy-saving projects.

312024 Sustainability Report

Monitoring and Management Optimization Advancing the Energy Transition

To achieve independent control over digital manufacturing technologies and data Industrial Electrification

analytics capabilities Shuanghuan Driveline independently developed the D-MOM Shuanghuan Driveline is promoting energy transition by upgrading to electric-

Digital Manufacturing Operations Management Platform. In alignment with its low powered production equipment adopting electric transportation within factory

carbon goals the company integrated dedicated energy consumption and carbon premises and improving process electrification—thereby reducing dependence on

neutrality management modules into the platform. fossil fuels.Photovoltaic Solar Power & Energy Storage

CASE D-MOM The company is expanding its use of solar energy by increasing photovoltaic - Energy Consumption and Carbon Management Module power generation across the Group building distributed energy systems and

integrating energy storage solutions to enhance solar utilization.Real-Time Data Collection Green Power Procurement

Smart meters and other measurement devices are deployed at energy-using By purchasing clean electricity from external sources the company reduces

units to enable real-time data collection. Information is uploaded via intelligent reliance on fossil fuel-based power and lowers carbon emissions. It is actively

gateways enabling paperless visualized and standardized operations. Data can increasing the share of power sourced from renewable energy and has developed

be quickly queried and provides an intuitive overview of energy usage. corresponding procurement strategies and targets.Energy Monitoring Other Renewable Energy Sources

The platform includes modular monitoring functions such as a basic energy Shuanghuan is also exploring alternative clean energy technologies such as wind

management module energy consumption and cost analysis electricity analysis

energy station monitoring and a carbon neutrality module. It captures peak and hydro and nuclear power. Future adoption of these energy sources will be based

off-peak usage patterns enhances energy monitoring quality detects line losses on the company’s evolving energy structure and the selection of solutions best

in real time flags abnormalities for immediate response and ensures energy aligned with its development strategy.usage safety.Intelligent Energy Consumption Analysis CASE Distributed Photovoltaic System

The system tracks trends in

power quality issues energy Shuanghuan Drivel ine has implemented

station exception reports delivers distributed rooftop photovoltaic (PV) power

precise carbon emission statistics generation projects across multiple facilities.and provides comprehensive Looking ahead the company plans to prioritize

analysis of energy and production PV infrastructure in the design of new plants

costs. With smart trend graphs and sites ensuring conditions are in place to

and data interconnectivity the support solar installation. By giving preference

platform supports science-based to renewable energy for internal electricity

decision-making enabling high- consumption Shuanghuan actively drives its energy transition strategy.efficiency optimization of energy

management measures and equipment operations and significantly improving During the reporting period a new distributed

energy use efficiency. rooftop PV system was installed at the Jiaxing facility with a total installed capacity of 6.348 MWp.

322024 Sustainability Report

Metrics and Targets

Implement energy-saving projects

Energy use situation

Shuanghuan Driveline actively implemented energy-saving initiatives such as Shuanghuan Driveline's energy structure is relatively simple with electricity and

waste heat recovery and distributed photovoltaic (solar) projects to increase natural gas being the primary sources of energy. The company is gradually working to

energy use efficiency. reduce the intensity of fossil fuel usage increase the share of renewable energy in its

operations and optimize the energy production layout across its facilities.CASE Waste Heat Recovery Project Energy Use Metrics

Gas Waste Heat Recovery Metrics Unit 2022 2023 2024

At the heat treatment workshop of the Sixth Branch of Zhejiang Shuanghuan a Comprehensive energy

pipe-type heat exchanger was installed to recover waste heat from multi-purpose consumption (equivalent tce / 52431.90 61096.14

furnace combustion. The recovered heat is used to supply energy to the heat value)

treatment cleaning machine thereby reducing electricity consumption. Comprehensive energy

The project involved an investment of RMB 100000 and is estimated to save consumption (equal value) tce 109755.74 126867.00 155889.63

approximately 30000 kWh of electricity per month translating to a monthly cost Natural gas 10000Nm3 218.81 297.91 334.57

saving of over RMB 20000.Gasoline tons / 62.21 36.96

Diesel tons / 114.77 121.40

State Grid Electric Power MWh 375046.17 395068.54 462181.82

Photovoltaic Electric Power MWh / 9589.47 6649.81

tce/output value of

10000 RMB 0.07 0.07Comprehensive energy

consumption intensity

Air Compressor Waste Heat Recovery (equivalent value) tce/output value of industrial added / 0.18 0.17

At the screw air compressor workshop of the Second Branch of Zhejiang value

Shuanghuan a waste heat recovery unit was installed to capture and reuse heat

generated by the compressors. This recovered heat is then used to power the heat tce/10000 RMB

treatment cleaning machine effectively reducing electricity consumption. of industrial added 0.17 0.17Comprehensive energy

The project required an investment of RMB 150000 and is estimated to save over valueconsumption intensity

20000 kWh of electricity per month. (equal value) tce/10000 RMB

of industrial added 0.43 0.43 0.44

value

Energy-saving Targets

Metrics 2023 base year 2024 Progress 2025 Target

Comprehensive energy

consumption intensity

tce/10000 RMB of industrial 0.43 0.44 0.42added value）

332024 Sustainability Report

Water Resource Utilization

Water Resource Risk

Global water resources are unevenly distributed and regions across the world are

experiencing varying degrees of water stress. To minimize the environmental impact

of its operations on water resources Shuanghuan Driveline strictly complies with all

applicable national and local water-related laws and regulations.The company utilizes the Aqueduct Water Risk Atlas developed by the World

Resources Institute (WRI) to conduct a quantitative assessment of water-related risks—

including water scarcity—at the watershed level for each of its operational locations.Based on these assessments all of Shuanghuan’s facilities have undergone water risk

classification using a 5-level scale achieving 100% coverage of operational sites.According to the latest risk assessment and monitoring results the areas with the

highest levels of water risk include Dalian followed by Yuhuan Hangzhou Huai’an

Dongguan and Vietnam.Based on the identified water risk map Shuanghuan Driveline has developed water-

saving plans for sites exposed to water stress. These plans include implementing

water conservation projects and adopting water-efficient technologies and equipment.Measures such as wastewater reuse rainwater harvesting and recycled water

treatment are being adopted to improve water efficiency enhance the company’s

ability to respond to water risks and strengthen resilience in water resource

Water Resources Risk map management.

342024 Sustainability Report

Governance and Strategy

In response to the national call for water conservation Shuanghuan Driveline places Shuanghuan has been widely promoting the concept of water conservation within the

high importance on water resource protection and strictly abides by laws and factory area organizing activities such as "Water Conservation Knowledge Competition"

regulations such as the Water Law of the People's Republic of China and the Regulations and "Rationalization Proposals for Water Conservation" and advocating that employees

on Groundwater Administration. The company has established a dedicated Water reduce the waste of water resources in their daily work and life. Furthermore each

Conservation Management System and actively works to improve water use efficiency production base has fully recognized its own water-saving potential:

across management production and office operations.As of the end of the reporting period both Zhejiang Shuanghuan and Jiangsu The successful experiences of Zhejiang Shuanghuan and Jiangsu Shuanghuan will be

Shuanghuan have been recognized as municipal-level water-saving enterprises. gradually extended to other production bases promoting the work of creating "water-

saving" enterprises in each base of Shuanghuan.Water Resource Conservation Measures

Water conservation on the management side refers to

Water systematic water conservation management carried out from

the management level such as using tools like smart water

Conservation on conservation systems to analyze water resource usage and Metrics and Targets

the Management identify potential water conservation opportunities.Side Zhejiang Shuanghuan and Jiangsu Shuanghuan conduct water As of the end of the reporting period Shuanghuan Driveline’s water resource use

balance tests once every three years to assess the water usage

in the factory area and reduce water waste. metrics and water-saving targets are shown in the table below.Water Resource Use Metrics and Water-saving Targets

Water conservation on the production side refers to the

Water implementation of water-saving measures at the production

Conservation end such as water-saving process renovations in daily life and Metrics Unit 2024 Progress 2025 Target

water resource reuse within the factory area.on the Zhejiang Shuanghuan has explored the potential for water

Production 3conservation and launched a project to reuse the condensate Total water intake m 987881 /

Side water from the air conditioners in the workshops.Jiangsu Shuanghuan has launched a water-saving project to 3

convert open cooling towers into closed ones. Total water consumption m 987881 /

Total drainage volume m3 496069 /

Water conservation on the office operation side refers to the

adoption of water-saving measures at the operational end of Decrease by

Water an enterprise such as conserving water resources in the office Total water consumption tons/Output value of

Conservation and employee accommodation and living areas. intensity 10000R/B

1.10 10% year-on-

year

on the Office Zhejiang Shuanghuan and Jiangsu Shuanghuan actively carry out

Operation Side water conservation publicity. Through activities such as large-screen Total water consumption tons/10000R/B of 2.78 /

publicity and "water conservation knowledge competitions" they call intensity industrial added value

on employees to save water in office and dormitory areas.

352024 Sustainability Report

CASE Zhejiang Shuanghuan-Condensate Water Reuse Project

The Equipment department observed the situation

of the air conditioning condensate water being

discharged in the second workshop and launched a

condensate water reuse project. At Zhejiang Shuanghuan ’

Second Branch the volume of condensate discharged

from air conditioning systems is relatively high—for

example Workshop No. 2 discharges approximately 1.25

tons of condensate per hour representing significant

reuse potential.The project was implemented at the Second Branch

by installing condensate collection tanks. Condensate

is gathered through pipelines into the tank and then

pumped for reuse in auxiliary workshop processes or

for evaporator condensate systems creating a closed-loop water cycle.During the summer the workshop is expected to reuse an average of 6.47 tons of

condensate per day resulting in an estimated annual water cost saving of RMB 115000.CASE Jiangsu Shuanghuan- Conversion of Open Cooling Towers to Closed Systems

To enhance water resource efficiency Jiangsu Shuanghuan launched a project

to convert open cooling towers to closed-loop systems. Closed cooling towers

operate using soft water in a sealed circulation loop which not only reduces

water evaporation but also minimizes problems such as scaling and corrosion

thereby supporting long-term stable equipment operation. The closed-loop design

significantly conserves water particularly in dry or high-temperature environments.The project began in 2023 and is being implemented in three phases. In 2023

11 units were retrofitted; in 2024 another 5 units were converted; and in 2025 8

additional units are planned for upgrade. Each unit retrofit costs approximately

RMB 70000. As of now the total investment has reached RMB 1.12 million with a

projected total investment of RMB 1.7 million by project completion.

362024 Sustainability Report

Circular Economy

Corporate Governance Impact Risk and Opportunity Management

Shuanghuan Driveline is committed to advancing circular economy practices.Guided by the 3R principles—Reduce Reuse and Recycle—the company focuses on Shuanghuan Driveline is committed to enhancing the use of recyclable packaging

resource recovery reuse and efficiency improvement to promote circular economic materials and the recycling and utilization of resources and products striving to

development. These efforts help reduce resource waste during production. minimize the consumption of natural resources. To seize the opportunities of the

circular economy relevant measures have been actively taken from five aspects:

Shuanghuan will continue to promote the circular economy as one of its process optimization optimizing the ecological design of products enhancing green

decarbonization strategies aiming to maximize resource utilization efficiency procurement recycling packaging materials and product recycling and treatment.reduce waste generation and thereby lower overall carbon emissions. With ongoing

advancements in technology and management along with collaborative efforts of the

upstream and downstream of the supply chain the circular economy is regarded as

one of the core pillars to promote its own manufacturing and green transformation Metrics and Targets

contributing to the ultimate goal of carbon neutrality.As of the end of the reporting period Shuanghuan Driveline’s circular economy

metrics and targets are as follows.Circular Economy Strategy

Shuanghuan Driveline Circular Economy Metrics and Targets

Taking into account its production and supply chain realities Shuanghuan Driveline has

formulated a three-part circular economy strategy: transforming and optimizing the

use of consumables improving the recovery and reuse rate of materials and waste Metrics Unit 2024 Progress 2025 Target

and establishing circular economy partnerships throughout the supply chain.The amount of waste recycled and

reused tons 26327.40

Increase by 3%

year-on-year

Transformation and Improve the recycling Establish supply chain Consumption of recyclable tons 280461.78 /

optimization of and utilization rate of circular economy resources (Steel)

consumables utilization materials waste and other resources cooperation Consumption of recyclable

resources（Floating oil） tons 2798.56 /

By leveraging Build a closed-loop By establishing circular Consumption of recyclable tons 840.70 /

technological innovation material recycling economy cooperation resources（Plastic）

and optimizing system to maximize with upstream and Consumption of recyclable

production processes the recovery and downstream enterprises resources（Packaging materials） tons 2229.57 /

we strive to minimize reuse rate of materials we can achieve resource

resource consumption and waste and recycling and reduce Consumption of recyclable tons 1219.38 /

and maximize the reduce the demand the demand for primary resources（Turnover box）

lifespan of our products. for raw materials. mineral resources. Consumption of recyclable

resources（Cutting tool） tons 93.61 /

372024 Sustainability Report

CASE Reuse–Waste Oil Recovery CASE Reduction – Precision Forging

To manage grinding sludge containing harmful substances such as metal particles By optimizing the production process through technical R&D Shuanghuan Driveline

metal dust abrasive residues oil and lubricants Shuanghuan Driveline has invested achieved an approximate 8% increase in material yield for disc- and shaft-type

in grinding sludge briquetting equipment. This allows the sludge to be compressed precision-forged gear blanks. This improvement results in a material saving of 0.71 kg

into briquettes for more efficient collection separation and recovery. Currently the per unit translating to a cost reduction of RMB 4.49 per piece.company processes 4–5 tons of grinding sludge per day recovering approximately 0.8

tons of oil daily. This initiative is expected to reduce hazardous waste by around 300

tons annually while recovering approximately 200 tons of oil. From a cost perspective

this project saves about RMB 66200 per month amounting to an estimated RMB

790000 per year.

Before After

CASE Reduction – Process Improvement

CASE Recycling – Packaging Material Improvement and Reuse Shuanghuan Driveline implemented technical measures such as optimizing forging

blank allowances and switching from die forging to ring rolling processes. These

Shuanghuan Driveline has promoted the replacement of wooden pallets and wooden improvements significantly reduced material usage in critical components resulting in

boxes in its workshops with reusable plastic pallets. This shift supports a more circular annual material savings of over 8000 tons across the entire production process.approach to packaging and significantly reduces packaging material costs through

repeated use and extended lifespan.CASE Reduction – Material Composition Optimization

By applying advanced materials science methods Shuanghuan Driveline optimized

the composition ratio of materials and conducted topology optimization of the

differential using finite element analysis (FEA). This approach achieved a 5% reduction

in total product weight while maintaining structural strength and manufacturing

reliability. As a result the company effectively reduced raw material procurement

costs and lowered carbon emissions during transportation.Before After

3802

Unified in Perfect

Harmony

This chapter responds to the following SDGs:

Employee Recruitment and Development Occupational Health and Safety

Total number of Male Female Person-times of In 2024 the company has fully established an occupational health

employees employees employees training participation and safety management system among which 7 production bases

8 333 6 344 1 989 11009 have passed the ISO 45001:2018 Occupational Health and Safety Management System certification.

392024 Sustainability Report

Employee Rights Protection

Governance and Strategy Impact Risk and Opportunity Management

Shuanghuan Driveline places great importance on the protection of employee rights Workplace Protection

and strictly adheres to relevant labor laws and regulations such as the Labor Law of

the People’s Republic of China the Labor Contract Law of the People’s Republic of China the In 2024 Shuanghuan Driveline updated its Social Responsibility Management Manual

Protection of Minors Law of the People’s Republic of China the Protection of the Rights and further strengthening its framework for protecting employee rights in the workplace.Interests of Women Law of the People’s Republic of China and the Trade Union Law of the Key enhancements included the optimization of procedures such as the Child

People’s Republic of China. To support this commitment Shuanghuan has established Labor Prevention and Juvenile Worker Protection Program the Prohibition of Forced Labor

a set of internal compliance policies including the Social Responsibility Manual Labor Management Procedure and the Anti-Discrimination Policy. These updates reinforce the

and Human Rights Protection Management Measures Employee Handbook and Recruitment company’s commitment to maintaining a fair safe and respectful work environment

Management Policy. for all employees.

402024 Sustainability Report

Employee Communication

Shuanghuan Driveline respects employees’ rights to

freedom of association and collective bargaining. To foster

an open and efficient internal communication environment

the company has developed a Workforce Communication Email Roundtable Discussions Annual Employee

Channel Development Plan establishing a variety of Representative

communication platforms to ensure that employees’ voices A dedicated suggestion inbox Events such as employee Conference

are heard promptly and accurately. In addition Shuanghuan has been created within the forums executive face-to-

has formulated and implemented a comprehensive company’s internal email system face sessions and HRD open Organized annually by the

Employee Suggestion Management Policy which standardizes offering employees a convenient discussions encourage deeper labor union this event offers

and manages the rationalization suggestions put forward by and documented way to share conversations and mutual employees a platform to

employees from several major aspects including the scope ideas. understanding. par t ic ipate in corporate

of suggestions feedback channels processing procedures d e c i s i o n - m a k i n g a n d

reward mechanisms and implementation tracking to ensures their legal rights are

stimulate the enthusiasm of employees to participate in the protected.operation of the enterprise.Suggestion Mailboxes Regular and Ad Hoc Meetings Skip-Level Interviews

Installed in accessible public areas such Departments hold scheduled meetings T h e s e m a i n l y i n v o l v e i n - d e p t h

as cafeterias dormitories and high- as well as special sessions organized as commun i ca t i on w i t h c ro s s - l e ve l

traffic locations allowing employees to needed to facilitate timely discussion. management regarding specific work

submit written suggestions anonymously. situations and business goals.

412024 Sustainability Report

Employee Satisfaction Survey

Employee Recruitment and

Shuanghuan Driveline has developed and implemented the Employee Satisfaction

Survey Management Policy under which regular surveys are conducted covering more Development

than 50% of the workforce across the entire group. These surveys comprehensively

collect employee opinions and suggestions regarding various aspects of company

operations. Shuanghuan Driveline firmly upholds the belief that "talent is the most valuable asset

of an enterprise" viewing employees as the driving force behind continuous innovation

A score of 80 or above is considered satisfactory. Based on survey findings the and sustainable growth. The company actively explores diverse talent acquisition

company dynamically adjusts its management strategies and operational practices to channels and is committed to building a strong future-ready workforce.continuously improve employee satisfaction thereby strengthening overall cohesion

and competitiveness. In terms of development Shuanghuan has established clear career advancement

pathways offering employees ample opportunities for promotion. A comprehensive

In 2024 to fully understand the satisfaction level of all employees in the group training system is in place with personalized learning programs tailored to employees’

the group conducted a comprehensive survey through Wenjuanxing from seven specific career stages ensuring ongoing enhancement of knowledge and skills.dimensions: "Company Culture and Values" "Work Environment and Facilities"

"Compensation Benefits and career Development" "Team assistance and The company also places great emphasis on holistic employee care—providing

communication" "Management decision-making and Leadership" and "Training and competitive compensation packages and a wide range of benefits and health initiatives

promotion opportunities". The survey results were satisfactory. For the issues reflected designed to support both the physical and mental well-being of its workforce.in the survey we collected information through the Questionnaire Star survey

conducted systematic analysis and measurement through the Micro Word Cloud and

summarized them into the Summary of Employee Satisfaction Problem Points in 2024. On

this basis the 2024 Employee Satisfaction Rectification Project List was formulated and Employee Number Metrics

implemented as planned.Category Unit 2022 2023 2024

Total number of

employees persons 7037 7263 8333

Among them: Male persons 5099 5448 6344

Female persons 1938 1815 1989

Under 30 years old persons 2593 3017 3608

31-40years old persons 1971 2416 2722

41-50years old persons 1085 1281 1392

Over 50 years old persons 456 549 611

422024 Sustainability Report

Governance Talent Lifecycle Management

Shuanghuan Driveline has established a comprehensive system to support talent management Shuanghuan Driveline implements a structured talent lifecycle management

encompassing frameworks such as the job classification system professional title system system to ensure that employees receive tailored support and development

qualification standards leadership appointment standards talent evaluation system and talent opportunities at every stage of their career journey:

development system. These frameworks provide strong institutional support for structured and

effective human resource management. Development and Retention Phase

For example the company has introduced and implemented a series of evaluation and grading

policies including the Equipment Maintenance Engineer Grading Management Policy Quality Engineer For core and high-Growth Phase

Grading Management Policy Technical Engineer Grading Management Policy Supply Chain Engineer performing employees

the company offers

Grading Management Policy and Production Technology Staff Grading Management Policy along with Onboarding Phase

(First 180 Days) Supported by a robust competitive retention

corresponding compensation systems for each talent track. talent development mechanisms including

system employees are career development

These initiatives together form a structured talent cultivation and evaluation framework across four Through a rigorous provided with abundant platforms and long-

major technical talent tracks ensuring consistent fair and strategic development of professional selection process the learning resources term incentive

capabilities within the organization. company ensures that and development programs fostering

new hires align closely opportunities to mutual growth and

Strategy with its core values and enhance their sustained engagement culture. This enables professional skills and with the organization.rapid integration into overall competencies Shuanghuan Driveline is guided by the corporate spirit of "a group of people one mission a lifetime the team and brings facilitating rapid

of dedication" the company adheres to the talent philosophy of "integrity and ability with integrity fresh energy to the personal and career

first; recognizing and empowering the right people to bring out their full potential." organization. growth.Shuanghuan is committed to building a comprehensive talent development and succession system.Through talent reviews and assessments the company identifies high-potential individuals creates

employee profiles and implements structured programs such as new employee orientation and

executive leadership training to foster growth.In addition Shuanghuan provides employees with clearly defined Individual Development Plans (IDPs) Impact Risk and Opportunity

encouraging them to progress through a step-by-step advancement path continuously enhancing Management

both personal and professional capabilities.Two Key Approaches Enterprise-Wide Mentorship and Knowledge

IDP (Individual Transfer Culture

Talent Review Development Plan)

Since 2012 Shuanghuan Driveline has steadily built a team of internal

S h u a n g h u a n D r i v e l i n e Persona l i zed deve lopment instructors composed of mid-to-senior managers technical experts key

regularly conducts talent p l a n s a r e c r e a t e d f o r

reviews to comprehensively employees clearly outlining business personnel and skilled craftsmen. In 2020 the company launched the

a s s e s s e m p l o y e e s ’ c a ree r goa l s and g row th “Lighthouse Talent Training Camp” establishing a structured internal trainer

c a p ab i l i t i e s p o t e n t i a l pathways. This ensures that certification and talent development system. To date nearly 100 certified

and performance. These ind iv idua l deve lopment i s trainers have been developed and over 300 internal training courses created.reviews provide vital data to c l o s e l y a l i g ned w i t h t h e

support succession planning company’s strategic direction Supporting this initiative the company has issued policies such as the Internal

and s t ra teg i c dec i s i on - fostering mutual growth and Trainer Management Policy and the Mentorship Management Policy fostering a

making ensuring that talent long-term success for both the

dep loymen t a l i gns w i th employee and the organization. strong culture of mentorship and knowledge transfer. This system enhances

the company ’ s evo lv ing both talent retention and innovation capability across the organization.development needs.

432024 Sustainability Report

Leadership Development CASE Mid-Level Leadership Development Program

Recognizing the critical role of talent pipelines in long-term success Shuanghuan has Shuanghuan Driveline’s mid-level leadership training program is designed to enhance the

developed a tiered leadership training framework nurturing managers from early-stage comprehensive capabilities of its managers and cultivate leaders with strategic vision and

talent to senior leadership. This structured path includes the Chick-Eagle Soaring holistic thinking. The program integrates theoretical learning benchmarking and practical

Eagle Sharp Eagle Mighty Eagle and Elite Eagle programs corresponding to various application to systematically improve participants’ management and business skills.levels of management responsibility. Guided by leadership competency standards Theoretical learning is delivered through a combination of offline intensive sessions and online

and supported by a robust succession planning system this framework lays a solid courses covering topics such as “A+ Manager: Growth Accelerator” “Lateral Leadership” and “Financial Management for Non-Financial Managers.” Supplementary activities such as themed

foundation for the company’s sustained performance and organizational excellence. reading groups focus on management cognition team collaboration and business thinking.Benchmarking is achieved through visits to exemplary enterprises—such as Toyota for lean

Cadre Echelon Training Program production and Inovance for digital transformation—as well as through internal executive

sharing sessions on topics like organizational communication behavioral science and

No. Training marketing strategy. These experiences broaden the perspectives of participating managers.Program Target Object Project Introduction The program also emphasizes

Recent Through centralized training and job practical application through

1 Young Eagle undergraduate rotation fresh graduates can make the

action learning and business

Training Camp and postgraduate transition from campus students to simulation exercises enabling

students professionals participants to translate theory into

real-world solutions for business

challenges. This well-rounded and

Carry out team leader training camps structured training program not only

Flying Eagle Reserve team strengthen team building enhance the enhances the leadership capabilities 2 Training Camp leaders overall on-site management capabilities o f Shuanghuan ’ s m id - l eve l of the enterprise and build a platform for managers but also builds a strong

team growth talent foundation to support the

company’s long-term development.Carry out the successor project for key

3 Sharp Eagle

Reserve

Training Camp grassroots

positions combine training with practice

managers and cultivate grassroots managers of the company

4 Mightly Eagle Reserve middle-

Reserve middle-level management Metrics and Targets

Training Camp level managers cadres for the company and cultivate the backbone of the company Employee Training Metrics and Targets

Elite Eagle Reserve senior Cultivate reserve high-level cadres 5 Training Camp managers with a global perspective and strategic Metrics Unit 2024 Progress 2025 Targetscapabilities

Person-times of training Increase by 5%

participation person-times 11009 year-on-year

The company also offers a diverse range of on-the-job training programs including Expenditure on Increase by 5%

new employee orientation job transfer training and professional technical talent employee training 10000 RMB 239.41 year-on-year

development ensuring that employees at all levels have continuous opportunities for Employee training % 82.7 /

growth and advancement throughout their careers. coverage rate

442024 Sustainability Report

Employee Well-being and Care

Welfare System

Shuanghuan Driveline remains committed to a people-centered approach aiming

to build a welfare system that is warm supportive and motivating. The company

provides comprehensive support for both work and life enhancing employees’ sense

of belonging and happiness constantly optimizing the level of welfare and security

and effectively safeguarding the legitimate rights and interests of employees.Shuanghuan strictly complies with relevant laws

Compliance and regulations across all operational regions and

Assurance industries. The company ensures lawful contributions

to social insurance and housing funds and provides

various labor protection subsidies.In addition Shuanghuan offers comprehensive

paid leave including statutory holidays and various

leave types such as annual leave marriage leave

bereavement leave maternity check-up leave

maternity leave paternity leave breastfeeding leave

and sick leave—fully ensuring the rights and interests

of employees.Employee Shuanghuan Driveline has established Labor Union at

Assistance each base to assess and assist employees in financial

difficulty. For employees suffering from serious illness

the “Loving Heart Fund” provides additional aid

offering timely help and demonstrating genuine care.

452024 Sustainability Report

Shuanghuan has introduced supplementary medical To help employees manage their children's care

insurance such as Taizhou’s “Limin Bao” to strengthen Childcare during school holidays Zhejiang Shuanghuan and

Health employees’ healthcare coverage. Facilities such as Support Jiaxing Shuanghuan launched the “Huanhuan Class”

Protection gyms are available in office areas to support physical Care Program a compassionate initiative providing

and mental well-being. Nursing homes are provided summer break childcare. Staff take turns supervising

for female employees. Additionally the company has the children guiding them in completing homework

equipped workshops with blood pressure monitors playing games reading books and watching movies.and AED defibrillators to safeguard employee health

and safety. We also pay attention to the mental health

of our employees. The administrative department has

established long-term contact with psychologists to

provide professional advice and assistance to employees

with mental health problems in a timely manner.CASE Shuanghuan Driveline Employee Service Award

Gym

Shuanghuan Driveline fully respects and honors the Awards are given at key milestones and include:

Service contributions of its long-serving employees by implementing 5 years – Bronze Award (Silver Medal) 10 years – Silver Award (Silver Medal)

Awards the Employee Service Award Management Policy which 15 years – Gold Award (Silver Medal) 20 years – Platinum Award (Gold Medal)

provides formal recognition based on length of service. In 25 years – Diamond Award (Gold Medal)

addition the company holds convalescent and recreational 30 years – Shuanghuan Award (Gold Medal)

activities for retired employees every two years to express In 2024 the company invested over 1.3 million yuan to customize exclusive medal engraved

gratitude for their long-term contributions. with employees' names and present the medal during the 2024 annual meeting.

462024 Sustainability Report

Employee Care Care for Employees with Disabilities

Shuanghuan Driveline embraces a strong “family culture” striving to create a warm Shuanghuan Driveline firmly upholds the values of equality and inclusiveness placing

and supportive work environment that enhances employees’ sense of belonging and great importance on the protection of rights and social integration for employees with

well-being. This approach not only improves employee satisfaction but also reduces disabilities and fulfilling social responsibilities.turnover and strengthens team cohesion.The company provides comprehensive accommodation

Housing CASE “Home for People with Disabilities”

Support solutions. For dual-income couples Shuanghuan offers

suite-style or loft apartments ensuring a comfortable

and home-like living environment. This thoughtful Shuanghuan Driveline in collaboration with Zijin Subdistrict of Liandu District

arrangement allows employees to feel truly cared for in Lishui City jointly established a “Home for People with Disabilities” creating

a supportive platform for employment and social integration. Through this

both at work and in their personal lives. initiative local individuals with disabilities are provided with meaningful job

opportunities primarily through handicraft production which helps boost their

confidence and sense of social inclusion.Shuanghuan bears the social security expenses for the disabled and pays

their working wages to ensure their basic living security and purchases the

handicrafts made by these individuals—such as sachets for the Dragon Boat

Festival—and distributes them as festive gifts to employees. This not only

recognizes and supports the work of people with disabilities but also conveys

the company’s warmth and care.Shuanghuan Driveline places strong emphasis on team

Team-Building building and the cultivation of a positive corporate

Benefits culture. In addition regular trips for advanced

employees departmental team activities and team-

building dinners are also organized.

472024 Sustainability Report

Occupational Health and Workplace Safety

Shuanghuan attaches great importance to safety production actively carries out safety standardization activities and is committed to creating a favorable working environment for

the company's production and operation activities. Leaders at all levels and all employees of the company have earnestly studied a series of national laws and regulations concerning

work safety and firmly established the idea of "safety first prevention foremost and comprehensive governance". All employees must strictly abide by and implement the company's

safety management and production systems job safety discipline and process discipline etc. to ensure the standardization and normalization of safety production work eliminate

violations and do their best to eliminate potential accident hazards.Governance and Strategy

Shuanghuan Driveline strictly implements a comprehensive

governance framework for occupational health and safety

fully aligning with national and regional laws and regulations

such as GBT 33000-2016 Basic Specifications for Enterprise Work

Safety Standardization the Production Safety Law of the People's

Republic of China the Prevention and Control of Occupational

Diseases Law of the People's Republic of China the Zhejiang Province

Work Safety Regulations and the Fire Protection Law of the

People's Republic of China. These laws serve as the foundation

for protecting both personnel and property throughout the

production process.In line with actual production needs each production base

has formulated its own Work Safety Standardization Management

Manual to better support its internal safety management

activities. To ensure effective implementation Shuanghuan has

established a Safety Production Management Committee and a

dedicated Safety Office to lead all aspects of workplace safety.Upholding the principle of “safety first prevention-orientedand comprehensive management” the company has setambitious annual safety targets of “zero safety incidents zeroenvironmental pollution and zero employee injuries.” These

goals demonstrate Shuanghuan’s firm commitment to building

a secure healthy and sustainable working environment across

all its operations.

482024 Sustainability Report

Impact Risk and Opportunity Management

Shuanghuan Driveline always places the occupational health and workplace safety of its employees as a top priority. Through systematic management measures professional external

support and ongoing improvement initiatives the company ensures a safe working environment and strong health protection for its workforce.Shuanghuan Driveline employs a systematic hazard Shuanghuan Driveline continuously monitors

identification and risk control process to ensure employees’ well-being. The company has established

Hazard production safety and regulatory compliance. In Occupational a robust system to safeguard employee health

Identification and accordance with national standards GB 6441 and GB/ including pre-employment and on-the-job medical

Risk Assessment Health ProtectionT 13861 the company has identified 14 categories examinations and the creation of comprehensive

of potential accident types including mechanical occupational health records.injuries electric shocks and fires as well as four main

In response to common industry-related occupational

sources of hazards: human factors material factors

diseases—such as hearing loss tinnitus chemical

environmental factors and management deficiencies.exposure poisoning burns and scalds—the company

Additionally based on the Classification Catalogue of

provides labor insurance coverage for all employees.Occupational Hazards six types of occupational health

For those identified with occupational health

risk factors have been clearly defined such as dust

restrictions Shuanghuan arranges appropriate job

chemical agents and physical hazards. The risk

reassignments to ensure their safety and health are

control process is led by the EHS (Environment Health

fully protected throughout their employment.and Safety) department in collaboration with cross-

functional teams. Using the LEC method Shuanghuan

assesses the inherent risk levels of identified hazards Production Environment In this manufacturing environment each production

and classifies them into four color-coded levels— Optimization base has established comprehensive protective

red orange yellow and blue. The outcome includes measures including ventilation and dust control

a Safety Risk Identification and Evaluation Table graded facilities to effectively reduce occupational health

control reports risk archives color-coded risk maps risks. The company conducts annual occupational

and job-specific risk notification cards. Furthermore health inspections covering key indicators such as

the company ensures a closed-loop risk management noise levels NOx emissions lab hydrochloric acid

system through comprehensive measures such as and nitric acid ensuring that environmental standards

operational unit segmentation targeted safety training are met. Additionally a monthly inspection system is

emergency response planning and real-time risk implemented encompassing safety environmental

communication tools. This holistic approach effectively protection and fire safety aspects all of which are

safeguards employee health and ensures full production cross-checked by a third-party consulting teacher to

compliance. promptly identify and address any issues.

492024 Sustainability Report

CASE Safety consulting Project

The company has commissioned a safety consultant expert to implement

a safety hazard investigation and supervision system for 2024 with a total

duration of 24 days averaging 2 days per month at the site for training

guidance and hazard inspection and issuing a monthly safety hazard

investigation report.The key contents of the safety consultant and training include:

Establishment of responsibility lists for the regional manager on-site

managers and safety supervisors.Establishment of responsibility lists for the regional manager the

central safety department site safety managers workshop leaders

and team leaders.Development of safety training materials and evaluation standards.Implementation of safety hazard investigation and supervision.Zhejiang Shuanghuan also entrusted a third party to assist in carrying out

the occupational health entrustment service for 2024 and improve the

corresponding health ledgers. At the same time conduct occupational health

examinations in the workshop once a month and urge the rectification of

potential safety hazards.ISO 45001 Occupational Health and Safety Management System Certification

Metrics and Targets

Occupational Health and Safety Production Metrics

Metrics Unit 2024 Progress

Employee work-related injury insurance liability insurance 10000RMB 569.40

The investment amount of employee safety production

liability insurance 10000RMB 54.80

Employee work-related injury insurance coverage rate % 100

Coverage rate of employee safety production liability insurance % 100

502024 Sustainability Report

Rural Revitalization

Rural revitalization is a key step toward achieving sustainable development with Chinese characteristics playing a vital role in poverty alleviation. Shuanghuan Driveline actively

supports this mission through a dual focus on industrial revitalization and educational empowerment injecting strong momentum into the development of rural communities.Industrial Revitalization

CASE Runfu Farm

Shuanghuan Driveline actively responds to China’s rural revitalization strategy by

supporting rural economic development and promoting common prosperity through Shuanghuan carries out targeted assistance in Zhuwo Village Luhuo County

industrial assistance and resource integration. Sichuan Province implementing a comprehensive revitalization plan. In terms

of industry the company helps clarify development direction plan specialty

projects and expand e-commerce sales channels. In employment it establishes

Educational Revitalization labor supply-demand matching mechanisms. In skills development it provides

training in production techniques and management knowledge to improve

Shuanghuan Driveline regards educational revitalization as a key pillar of rural villagers’ sustainable employment capabilities. These integrated efforts work

development. Through measures such as providing financial support and carrying out together to drive high-quality rural revitalization in both regions.educational public welfare projects the company is committed to advancing rural

education and providing quality educational resources and growth opportunities for

underprivileged students and employees’ children.Shuanghuan actively supports the education sector in Shamen Town donating RMB

200000 annually to an education fund for five consecutive years. This funding is

dedicated to improving local educational infrastructure and enhancing teaching quality

creating better learning conditions for rural students.Metrics and Targets

Rural Revitalization Metrics and Targets

Metrics Unit 2024 Progress 2025 Targets

Investment amount for Increase by 3%

rural revitalization 10000 RMB 98 year-on-year

512024 Sustainability Report

Welfare

Shuanghuan Driveline regards educational revitalization as a key pillar of rural development. Through measures such as providing financial support and carrying out educational public welfare

projects the company is committed to advancing rural education and providing quality educational resources and growth opportunities for underprivileged students and employees’ children.Shuanghuan actively supports the education sector in Shamen Town donating RMB 200000 annually to an education fund for five consecutive years. This funding is dedicated to

improving local educational infrastructure and enhancing teaching quality creating better learning conditions for rural students.Providing Employment for the Poor Population Support for Local Public Welfare

The company actively responds to the national poverty alleviation policy providing job Shuanghuan Driveline provides long-term support to public welfare-oriented nursing

opportunities for over 200 people who have been lifted out of poverty and promoting homes. Through regular donations and festive visits during holidays such as the Spring

equal employment by formulating labor documents. Festival and Mid-Autumn Festival the company delivers essential goods including rice

flour and cooking oil helping to improve the residents' living conditions and bringing

them warmth and care.CASE The Shuanghuan Love Foundation Visited the Enhui

Nursing Home

In February 2024 Wei Fengzhong the chairperson of the Shuanghuan Labor

Union and Gong Jianbin the vice-chairperson along with a delegation visited

the Enhui Elderly Care Home and brought the elderly consolation money as well

as daily necessities such as rice and oil. In September of the same year on the

eve of the Mid-Autumn Festival Wei Fengzhong and others came to the nursing

home again bringing mooncakes and festival greetings to the elderly. The

director of the nursing home expressed his gratitude to the Shuanghuan Trade

Union for its long-term donation believing that this care has given them more

confidence to persist in public welfare.

522024 Sustainability Report

Diverse Welfare Activities CASE "Love Fund" Charity Education Activity

Shuanghuan Driveline actively carries out various public welfare activities including public run

sea picking Eye Care Day greenway garbage picking etc. and actively calls on all employees In September 2024 on the eve of the school's opening the "Love Fund" of Shuanghuan

to participate together with all sectors of society. The company has connected with the Shamen launched its eighth charity education assistance activity providing targeted support to

Social Work Station and plans to organize more meaningful public welfare activities in the future. 10 impoverished students in Haishan Township and Jishan Township of Yuhuan City with

They are also discussing the mutual recognition of public welfare duration certification between a total of 37000 yuan in donations. The 5 students from Jishan Township who received

the two sides hoping to encourage more people to participate in public welfare undertakings. financial aid this time all come from families on minimum living allowances or in financial

difficulties. With their indomitable spirit they were admitted to prestigious universities

such as Ningbo University and Wenzhou Medical University.CASE Charity Fun Run

The Human Resources and Culture Department of the Group planned and organized a

public welfare run event for the entire group calling on employees of all subsidiaries and

branches to actively participate in micro-public welfare undertakings and spread love and

positive energy. Through various launch ceremonies each subsidiary company encourages

its employees to uphold the core values of "a little better much better" and to draw the

trajectory of love with their steps demonstrating the support and love of Shuanghuan

people for public welfare. Since the launch of the campaign in May 2024 it has received an

enthusiastic response from 11 subsidiaries and over 300 employees. The cumulative running

mileage was 10199.45 kilometers and 51000 yuan was raised in donations all of which

were used to support the charity work of the Shuanghuan Love Foundation.Metrics and Targets

Welfare Metrics and Targets

Love Fund ProgramShuanghuan Driveline has been continuously fulfilling its social responsibilities through the “Loving Metrics Unit 2024 Progress 2025 TargetsHeart Fund” and is committed to helping those in need and supporting education. Since its

establishment in 2015 Shuanghuan Driveline’s “Loving Heart Fund” has raised a total of RMB 1.22 The amount of charitable Increase by 3%

10000RMB 13.7

million and disbursed RMB 900000 to support disadvantaged employees and underprivileged donation funds year-on-year

students in areas where the company operates including Yuhuan and Jiangsu.

532024 Sustainability Report

Innovation

This chapter responds to the following SDGs:

Product Safety and Quality Intelligent Manufacturing Digital Transformation Technological Innovation

Customer satisfaction Assembly pass Digital inspection pass rate of Total R&D investment in 2024

rate exceeded rate surpassed 68%of forklifts at Zhejiang Shuanghuan converted

end products reached over

92% 98% to electric reached RMB 435.39 million

152900 kilometers of transportation mileage saved 98%

Over 10 new key quality improvement annually through route optimization

projects were launched

Gear grinding and heat treatment OEE improved to

87% with production line availability reaching 80%

542024 Sustainability Report

Product Safety and Quality

Governance Strategy

Shuanghuan Driveline fully recognizes that product quality is the cornerstone of both Shuanghuan Driveline consistently upholds its quality management mission which

business survival and sustainable growth as well as a core concern for its customers. emphasizes enhancing customer satisfaction recognizing quality as the lifeline of the

Shuanghuan is committed to becoming a company that is both forward-looking and enterprise reducing quality-related costs driving innovation in quality management

firmly grounded—earning customer trust through exceptional product quality. The and shaping a distinctive Shuanghuan quality culture.company’s Corporate Standards Manual clearly outlines the synergy between Customer-

Oriented Processes (COP) Support Processes (SP) and Management Processes (MP)

forming an integrated quality governance framework driven by customer needs. Identification of Quality Risk Types

At the Group level Shuanghuan has established a dedicated Quality Management

Center responsible for the execution of over 70 quality management documents The main risks we've identified related to product safety and quality include:

including advanced product quality planning procedures. To ensure consistent

excellence in both products and services the company has successfully implemented

internationally recognized management systems such as ISO 9001 (Quality

Management System) IATF 16949 (Automotive Quality Management System) and ISO/ form and dimensional NVH levels

IEC 17025 (General Requirements for the Competence of Testing and Calibration Laboratories). position deviations exceeding

tolerance acceptable

errors thresholds gear cleanliness

accuracy issues

issues

missed

processing

surface steps

burns证书证书

证书注册号：12 100 59609 TMS / 订单编号：7482151580 证书注册号：12 111 59609 TMS / IATF证书注册号：0499529 surface rust

IATF USI: PR5FXY

TüV SüD 管理服务有限公司

认证部 TüV SüD 管理服务有限公司 cosmetic dents

兹证明以下组织认证部 incomplete兹证明以下组织

浙江双环传动机械股份有限公司 grinding in or impacts中国浙江省玉环市滨港工业园区浙江双环传动机械股份有限公司

邮政编码：317600中国浙江省玉环市滨港工业园区

统一社会信用代码：91330000779370442Q 邮政编码：317600

在以下适用范围 certain areas在以下适用范围

齿轮、轴的制造

齿轮、轴的制造和销售（不含8.3章节产品设计和开发） residual建立和实施了质量管理体系。

建立和实施了质量管理体系。

通过审核，证明该体系满足通过审核，证明该体系满足 steps at theDIN EN ISO 9001:2015 IATF 16949

第一版2016年10月01日的要求。

的要求。 turning gear root本证书的有效期从2024年02月05日至2027年02月04日。

颁发日期：2024年02月05日获证组织必须定期接受监督审核并经审核合格此证书方继续有效。

有效期：2027年02月04日 chatter本证书信息可在国家认证认可监督管理委员会官方网站（www.cnca.gov.cn）上查询。本证书含有附件。

marks insufficient tooth tip

surface damage

Fred Wenke Fred Wenke

Head of Certification Body Head of Certification Body慕尼黑2024年02月05日慕尼黑2024年02月05日

第1页，共2页 roughness

on gear teeth

ISO 9001 Quality IATF 16949 Automotive CNAS Certification

Management System Quality Management Certification

Certification System Certification

552024 Sustainability Report

Shuanghuan’s Key Areas of Quality Focus Include: Product Safety and Quality Management

产品质量关注点 In managing product safety and quality the company places a strong emphasis on

Reducing end-user failure rates increasing customer quality improvement initiatives and error-proofing project summaries. These efforts

Customer assembly pass rates lowering the number of serve as key implementation drivers laying a solid foundation for systematically

Satisfaction complaints improving issue response speed enhancing the level of quality management and ensuring excellence in both products

Improvement

and enhancing overall customer satisfaction with and services.Shuanghuan’s product quality.Quality Improvement Projects产品质量关注点

Product

Quality Preventing major market issues and significant quality In line with the ISO 22163 rail transit quality management system

Focus losses during on-site operations. Shuanghuan established a dedicated rail industry audit mechanism and

evaluation standards. Special audits are conducted monthly in the high-

speed rail workshops with corrective actions issued based on audit

findings.产品质量关注点

Cost Lowering internal and external quality loss costs Each production site actively promotes Total Quality Management (TQM)

Reduction reducing quality appraisal expenses and controlling based on internal implementation guidelines. In 2024 efforts focused on

Focus quality prevention costs. advancing production lines to “Iron and Copper Award” levels (evaluated

using multidimensional multi-level criteria) maintaining qualifying line

产品质量关注点 pass rates and developing TQM star-rated model workshops.Innovation Advancing quality management methods applying The VDA 6.3 Group Promotion Team (based on the German automotive

in Quality new inspection technologies and innovating quality industry quality standard) supported quality improvements across model

Management testing processes. lines at various sites through coaching audits and evaluations. After a

full year of PDCA self-assessment cycles and group-level guidance the

产品质量关注点 quality management levels at each site improved significantly—meeting

customer expectations more comprehensively.Fostering quality awareness among all employees

Quality

Culture and creating a company-wide atmosphere of shared

responsibility for quality.

562024 Sustainability Report

C E R T I F I C A T E

awarded to 测量管理体系认证证书

Zhejiang Shuanghuan Driveline Co. Ltd.Bingang Industrial Park 证书编号 No.CMS浙[2024]AAA1474号

317600 Yuhuan City Zhejiang Province

China

单位名称：浙江双环传动机械股份有限公司

TüV Rheinland (China) Ltd.confirms as an IRIS Certification approved certification body that the Management System of the 单位地址：浙江省玉环市机电产业功能区盛园路 1号

above organization has been assessed and found to be in accordance with the

兹证明贵单位在产品质量、经营管理、节能降耗、环境监测IRIS Certification 等方面的测量管理体系符合 GB/T 19022-2003/ISO 10012：2003

《测量管理体系-测量过程和测量设备的要求》标准的全部要求，Certification activities:

Production and service provision & Control of externally provided processes products and services 特发此证。

& Project management & Requirements for products and services

Business category: 认证范围及其他符合性说明详见附件。

Rolling Stock

（本证书的有效性依据认证中心的定期监督获得保持，在一个监督周期Product scope:Mechanical 后，与 CMS签发的《年度监督审核合格通知书》合并使用方可有效。）Manufacturing of Gears and Shafts

颁证日期：2024年01月18日

签发人:

Certificate valid from: 28/11/2024 Certificate valid until: 12/11/2027* 有效期至：2029年 01月 17日

Current date: 10/12/2024

Certificate-Register-No: 39 10 002 2403

Version: 01

* Providing that the subsequent surveillance audits are successful before the validity date of the previous audit. Certification

body address: Room 301 3F and Room 1203 12F Building 4 No.15 Ronghua South Road Beijing Economic-Technological 中启计量体系认证中心

Development Area Beijing (Yizhuang group in high-end industrial area of Beijing Pilot Free Trade Zone) 100176 P. R. China 中国北京朝阳区育慧南路 3号 100029

100176 Beijing China

网站地址:www.china-cms.org

Industry Quality Management System Enterprise by Certificate for Standardized Based Innovative

Management System AAA-Level Certification Customs Good Conduct Enterprise

Certification

Error-Proofing Project Summary

The company has systematically compiled over 400 error-

proofing measures across 14 key processes and several additional

procedures into a dedicated Error-Proofing Manual. This manual has

been widely promoted internally with the goal of standardizing and

formalizing preventive measures to effectively reduce and prevent

quality issues during production.Error-Proofing Manual

Metrics and Targets

Metrics and Targets of Product Safety and Quality

Metrics Unit 2024 Progress 2025 Target

Amount involved in major liability incidents related

to product and service safety and quality during the 10000 RMB 0 0

reporting period

572024 Sustainability Report

Intelligent Manufacturing

Intelligent Logistics

As part of its commitment to advancing intelligent manufacturing Shuanghuan Driveline places strong emphasis on optimizing logistics and transportation processes. Through a

series of green logistics initiatives the company significantly enhances logistics efficiency.Green Logistics Intelligent Warehousing

Reusable Logistics Automated High-Bay Warehousing AGV (Automated Guided Vehicles)

Tools Electric Forklifts

Shuanghuan has replaced The company is gradually

traditional wooden materials phasing out diesel forklifts Shuanghuan utilizes intelligent high- Widely adopted for internal transport

with reusable plastic pallets in favor of electric ones bay storage systems to enable fully AGVs bring high efficiency and smart

and recyclable packaging for internal transportation. automated loading and unloading mobility resulting in a substantial boost

boxes each with an average In Zhejiang Shuanghuan significantly reducing manual in overall logistics performance.lifespan of over three years. Green Logistics electric forklifts now intervention.account for 68% of total

forklift usage.Optimized

Standardized Cleaning Transportation

Process Routes

Since September 2022 all By redesigning

circulation tools have been internal transport

cleaned using environmentally routes Shuanghuan

friendly detergents. Wastewater is has reduced overall

processed through the company's transport distances

treatment system to ensure saving more than

compliant discharge supporting 152900 kilometers of

clean production practices. travel annually.

582024 Sustainability Report

Production Optimization Process Innovation and Technological Breakthroughs

Shuanghuan continuously advances its process innovation to ensure both high product

Refined process management and continuous process optimization are key to reducing quality and technical performance while also adopting low-carbon environmentally

operational costs and enhancing financial performance. Through proactive planning friendly techniques. Key innovations include:

dynamic control and post-process innovation Shuanghuan Driveline applies scientific

management practices to continuously improve production performance and drive Dry Cutting Processes: To reduce oil consumption 90% of hobbing and 90%

ongoing innovation in manufacturing processes. of turning processes now use dry cutting. Traditional oil-based grinding is

retained for modules larger than 5 to meet precision requirements.Mirror Grinding: Improves transmission efficiency and reduces energy

consumption.Production Planning and Dynamic Control Welding Replaces Bolting: Lowers product weight and enables structural

simplification for lightweight designs.Each production site conducts daily reviews of production plans with real-time Heat Treatment and Surface Hardening: Increases product strength by 10% to

dashboards displaying metrics such as production fulfillment rates to ensure balanced 15%.capacity utilization. In response to bottlenecks the company develops targeted

solutions by analyzing personnel equipment and tooling needs further optimizing Process and Sensor Optimization: Enhances accuracy of data collection and identifies inefficient steps in the production process.resource allocation. For unsent excess inventory regular monthly analyses are

conducted to verify customer demand and formulate handling procedures. Unused raw Coolant and Cleaning Agent Optimization: Reduces the variety of

materials are also tracked and sold monthly. cleaning agents used and standardizes brand and model selection. Optimal

concentrations are determined through testing which in turn reduces the load

on the wastewater treatment system.

592024 Sustainability Report

Lean Management

To continuously enhance production efficiency across its manufacturing bases and ensure smooth project execution

with consistent product quality Shuanghuan Driveline introduced a lean production system in 2005 anchored by

three core pillars: TPM (Total Productive Maintenance) TPS (Toyota Production System) and TQM (Total Quality

Management). Guided by the philosophy of “meticulousness and pursuit of excellence” the company has steadilyadvanced lean practices to achieve the goals of cost reduction energy savings and labor efficiency—the “tworeductions and one saving” strategy.Shuanghuan conducts regular analyses of equipment downtime and integrates improvement measures into a

standardized operations manual driving steady gains in production efficiency. By 2024 the Overall Equipment

Effectiveness (OEE) for gear grinding and heat treatment processes had increased to 87% and line availability

reached 80% significantly boosting production stability. In addition the company has implemented QR code tagging

on products enabling automated data capture and traceability throughout the entire production process—from raw

materials to finished goods—thereby enhancing quality control.To ensure the successful implementation of lean manufacturing Shuanghuan has established a dedicated Lean

Production Promotion Team composed of a management coordination unit and an execution task force. The company AAA-Level Certification High-Tech Enterprise

continuously drives breakthroughs in seven key areas: for Integration of – Zhejiang Province

Informatization and

Industrialization

Management System

Seven Key Areas

Empowering

Modular Enhancement Consolidation Optimization Strengthening Deepening frontline

process of visual of of continuous of talent TPM and teams with

reengineering management standardization improvement development TQM autonomous systems mechanisms systems practices operations and

management

602024 Sustainability Report

Digital Transformation

Shuanghuan Driveline firmly upholds the core philosophy of "Lean-Driven Digitally Empowered" striving to lead the transformation and upgrading of the manufacturing sector toward

"Digital Lean Manufacturing."

Governance Strategy

In its digital transformation journey Shuanghuan Driveline has built a structured multi- In 2021 Shuanghuan Driveline established its digital innovation subsidiary Fine

tiered digital architecture encompassing four key levels—enterprise management Intelligent Technology to drive the group’s transformation toward smart manufacturing.operations and control. This framework ensures efficient alignment and synergy Focusing on the automotive parts and precision machining sectors Huanzhi Yunchuang

between data flow information flow and business operations. is dedicated to delivering high-quality digital and intelligent transformation services to

manufacturing enterprises while also sharing Shuanghuan’s advanced manufacturing

Anchored by ERP (Enterprise Resource Planning) and management expertise. With the goal of fully integrating digital workflows across all

Enterprise PLM (Product Lifecycle Management) systems this layer stages of production the subsidiary developed the oWorks Platform—a comprehensive

Level enables efficient resource allocation and end-to-end solution that consolidates key elements of smart transformation for industrial

digital management of product lifecycles. enterprises. This platform has been rolled out across the entire group accelerating

Shuanghuan’s progress in digital transformation and reinforcing its leadership in

intelligent manufacturing.Powered by MES (Manufacturing Execution System) and

factory configuration systems it supports integrated

Management management of design and production covering digital

Level management of materials BOMs (Bills of Materials)

and processes ensuring transparency and control over

production operations.Utilizes DCS (Distributed Control Systems) and SCADA

Operations (Supervisory Control and Data Acquisition) to monitor

Level equipment status in real time ensuring stability and

efficiency in operating procedures.Based on PLC (Programmable Logic Controllers) and HMI

Control (Human-Machine Interfaces) this layer provides precise

Level control of production equipment and intuitive operator

interaction.

612024 Sustainability Report

Impact Risk and Opportunity Management

Integrated Smart Factory Solutions

Shuanghuan Driveline’s smart factory model aims to continuously plan and implement lean automated and digital transformation projects leveraging Value Stream Mapping (VSM)

along with a suite of lean tools and methodologies. By integrating innovation-driven initiatives the company cultivates in-house talent specialized in autonomous lean management

and continuous improvement.Production Automation

Shuanghuan Driveline has implemented a comprehensive suite of intelligent

solutions across its production processes aimed at enhancing efficiency precision

and safety.A self-developed system links order and material data at the

front end to improve planning accuracy. The company has

introduced a range of advanced automation technologies

Logistics such as intelligent loading/unloading machines and robotic

Control arms for automated material handling. An internally developed

intelligent high-bay warehouse enables fully automated

loading and unloading operations.Precision lathes are equipped with intelligent control systems

to ensure high-accuracy machining while smart laser marking

Production machines enable precise positioning and labeling increasing

process accuracy.Production Automation Solutions

A smart product inspection system identifies and retains

Inspection defective items maintaining a final product pass rate above

98%.

622024 Sustainability Report

Production Digitalization

The company has independent ly developed a digi ta l platform that integrates

with i ts Industr ia l Internet of Things ( I IoT) system to enhance the qual i ty of

data col lect ion. This robust infrastructure empowers the transformation of raw

data into valuable insights effect ively driv ing value creation through data.Developed in-house the D-MOM platform gives the company

full control over its manufacturing digital technologies and data

analytics. With parameter-level MES it enables full lifecycle

D-MOM Digital

management of key automotive components. The platform

Operations

integrates over a dozen subsystems—including production

Management

processes quality energy equipment warehousing performance

Platform

and tooling—achieving standardized operations seamless

workflow coordination real-time visibility and full-process

traceability.IOT&ICP Built on Industrial IoT and TPM (Total Productive Maintenance)

Industrial IoT the IOT&ICP platform boosts equipment efficiency. It supports

and Intelligent multi-channel data access enforces data collection and

Computing application standards and delivers high-quality data services—

Platform helping realize transparent production data and intelligent

operational management.SmartOP SmartOP divides enterprise intelligence into four key phases:

Intelligent descriptive analysis diagnostic analysis predictive analysis and

Enterprise prescriptive analysis. These layers work together to enhance sales

Operations insights strengthen procurement control optimize processes

Platform and improve product quality while bridging communication gaps

between sales and process departments.

632024 Sustainability Report

Technological Innovation

In Shuanghuan Driveline’s long-term strategic roadmap technological

innovation and product R&D are top priorities. While continuing to

deepen its expertise in the core technologies of precision transmission

the company is also expanding its product portfolio building on its

foundation of high-precision offerings. Through continuous iteration and

innovation Shuanghuan aims to precisely meet the evolving and diverse

needs of the market.Governance and Strategy

At the heart of its innovation strategy Shuanghuan Driveline has

established a dedicated Research Institute working in close collaboration

with its four major production bases to build an integrated innovation

and R&D platform. Its goal is to continuously push the boundaries of

precision transmission technologies while expanding their applications

across a broader range of future markets.Technical Support and Product Development Market Expansion

Provide ongoing technical support for current mass production

projects to ensure product quality and stability. Adopt a customer-centric Enhance global brand Actively build strategic

approach by deeply exploring recognition and influence alliances collaborate with top

Develop new product lines targeted for market launch within 1–3 key application areas and through outstanding domestic and international

years to meet short-term demand. target customer groups product quality and service research institutions and

steadily advancing into the excellence. participate in industry

Invest in R&D of emerging technologies expected to expand global high-end market. standard-setting to help shape

market opportunities over the next 3–5 years laying a foundation the future of the sector.for medium- and long-term growth.

642024 Sustainability Report

High-End Talent Development

In 2024 the number of R&D personnel reached 1262 accounting for

Foster a robust talent ecosystem to attract and nurture top technical experts over 15% of the company's total workforce.ensuring strong human capital support for innovation breakthroughs. The company holds 498 active patents all of which are applied to its

core business operations. In 2024 alone 33 new invention patents were

Leverage the successful experience of the Hungary facility to advance the filed and 84 patents were granted.company’s international footprint and build a global industrial service network.Impact Risk and Opportunity Management

Innovative Product Development

The R&D process for new technologies related to gears and similar products generally includes the following stages:

Stages

Gain a deep understanding of market demands and clearly define the application scenarios and performance requirements of the product. For example

Needs Analysis in the new energy vehicle sector products must meet requirements such as high torque high rotational speed and low noise. In the industrial robotics

and Planning field there are extremely high demands for precision and reliability. The team conducts thorough industry research and competitive analysis to identify the strengths and weaknesses of existing technologies pinpoint customer pain points and set clear R&D priorities—ensuring competitive positioning for the

development of innovative new products.Theoretical Research Undertake fundamental theoretical studies—such as gear meshing principles material mechanics and dynamics—to provide a solid technical foundation.and Design Based on this perform innovative design work including gear profile design transmission structure design and more.Modeling and Use CAD (Computer-Aided Design) software to build 3D models of gears and gearboxes accurately representing their geometry and structure. Then

Simulation Analysis run simulations such as Finite Element Analysis (FEA) and Multi-body Dynamic Analysis to evaluate performance under various conditions assessing key

indicators like strength stiffness fatigue life and vibration noise identifying potential issues early for optimization.Experimental Verification Produce physical prototypes and conduct both bench testing and real-world scenario tests. Gather experimental data—such as meshing accuracy transmission efficiency noise levels and temperature variations—to validate the design and simulation outcomes. Based on the results continue refining

and Refinement the product through adjustments to design parameters and manufacturing processes until the performance targets are fully met.Establish robust production processes and quality control systems to ensure product consistency and reliability facilitating the transition from laboratory

Industrialization and innovation to mass production. Launch targeted marketing strategies run product promotion and demo applications and gather customer feedback to

Market Deployment further optimize performance and functionality—enhancing market share and user satisfaction.

652024 Sustainability Report

CASE Noise Reduction Design for New Energy Vehicle Gear Reducers R&D Ecosystem Development

Shuanghuan Driveline regards the construction of an innovative R&D ecosystem as the

Shuanghuan’s Research Institute leveraged cornerstone of its innovation-driven growth. The company is committed to building an open

collaborative and efficient research environment that fosters synergy across internal teams

multi-body dynamics analysis and finite external partners and industry networks.element simulation to address the varying

torque performance demands of new energy

vehicle (NEV) gear reducers. By applying an 52.9%

integrated tooth profile and lead modification Building a Diverse

strategy the team optimized tooth contact H igh-Caliber R&D Team 0.7%

patterns avoided impact between the tooth R&D 4.1% Team

tip and root and prevented localized overload

Shuanghuan Driveline’s R&D team

on the tooth surface. This significantly improved 13.9%is primarily composed of young 28.4%

transmission accuracy and vibration and noise profess iona ls forming a wel l -

performance. Testing showed that the modified gear balanced talent pipeline.reducer reduced noise by up to 8 decibels at the same aged 30 and under between 31–40

rotational speed compared to unmodified designs. between 41–50 between 51–60

over 61

662024 Sustainability Report

R&D Incentive Mechanisms R&D Investment

As a national-level high-tech enterprise and home to a national-level enterprise R&D

Recognizes teams and individuals who make

Chairman’s Special center Shuanghuan Driveline allocated RMB 456.04 million to R&D in 2024. The outstanding contributions in market development

Contribution Award operations technological advancement and company also continuously upgrades its R&D infrastructure and testing equipment to

management innovation. ensure its researchers have strong hardware support.Based on departmental self-nomination and evaluated CASE R&D Equipment and Testing InstrumentsGeneral Manager’s Project by annual performance completion rates with rewards

Achievement Award issued by the GM for meeting strategic targets.Rewards teams and individuals with exceptional

Innovation outcomes in R&D innovation sparking a strong spirit of

Incentive Fund creativity.Promotion Opportunities Outstanding performers in innovation initiatives are

for Innovators offered advancement opportunities.Vibration and Noise Test Bench Differential Test Bench

Intelligent Transmission System Comprehensive Test Platform

672024 Sustainability Report

Collaborative Innovation CASE China Gear Industry Conference – Shuanghuan Driveline Leads Innovation in Gear Sector

Shuanghuan Driveline actively promotes industry–academia–research collaboration

partnering with leading universities and research institutions both in China and abroad From November 13 to 15 2024 the 2024 China Gear Industry Conference

to jointly conduct technological and industrial research. The company also actively was successfully held in Cixi Ningbo Zhejiang. Organized under the theme

participates in industry research initiatives playing a key role in driving technological “Strengthening the Foundation Empowering Industrial Upgrading” the event

innovation and the advancement of industry standards. attracted over 300 industry experts and business representatives.As the presiding unit of the Gear and E-Drive Branch of the China General

CASE 2024 National Good Design Awards Ceremony Machinery Components Industry Association (CGMA) Shuanghuan Driveline

played a key role in the conference. Chairman Wu Changhong also the

In November 2024 the 9th 2024 National Good Design Awards Ceremony was President of CGMA delivered the opening speech and keynote addressheld in grand fashion in Tongxiang Zhejiang under the theme “Innovation offering deep insights into the current landscape and opportunities within theDesign Empowering New Productive Forces.” The event was graced by gear industry.the participation of numerous academicians from China’s top science

and engineering institutions. A congratulatory letter from Academician Lu

Yongxiang was read during the event which brought together over 300

experts scholars and industry representatives.The ceremony announced winners across various industrial design categories

with Shuanghuan Driveline proudly sponsoring both the event and the prize

money for the top three awards. Looking ahead Shuanghuan has committed

to sponsoring the Good Design Awards for the next ten consecutive years

underscoring its dedication to high-quality development and its ongoing

contribution to driving innovation across the industry.

682024 Sustainability Report

Full Life Cycle Design

In today's era of pursuing sustainability and peak efficiency Shuanghuan Driveline fully At the product’s end-of-life gears are designed for easy

embraces life cycle thinking in the development and design of its gear products. The disassembly and recycling—for instance using clip-on or

company carefully considers every stage—from raw material sourcing and product threaded joints instead of traditional welding or riveting

design/manufacturing all the way to end-of-life recycling—to create products that are End-of-Life allowing different materials to be quickly separated for

greener and more carbon-efficient throughout their entire lifespan. Recycling individual recycling. Looking ahead the company plans

Stage to collaborate with steel manufacturers to explore steel

material recovery programs. By ensuring recycled materials

The R&D team prioritizes low-carbon and environmentally meet quality standards for reuse these efforts aim to

friendly materials such as steel with a relatively small create a closed-loop resource recycling system.carbon footprint to control emissions right from the

source. For non-metal gears the team comprehensively

Raw evaluates the material’s environmental impact—including

Material energy consumption during extraction transportation

Selection costs and pollutant emissions—and gradually adopts new Metrics and Targets

Stage materials that combine performance and eco-friendliness

such as self-lubricating polymer composites that require

less energy to produce. These materials help reduce Metrics and Targets of Technological Innovation

energy consumption and wear during gear operation and

maintenance. Metrics Unit 2024 Progress

R&D investment amount 10000 RMB 45604.29

R&D investment as a percentage of main

Advanced topology optimization techniques are used % 5.19revenue

to refine internal structures based on actual gear stress

distribution eliminating unnecessary material and Percentage of R&D personnel % 15.14

achieving lightweight designs that cut manufacturing costs

Design and and energy consumption. The optimized structure also Number of R&D personnel persons 1262

Manufacturing enhances meshing performance reduces vibration and Number of invention patents applied in

Stage noise and extends service life. In manufacturing smart / 498core business

technologies such as industrial robots and high-precision Number of invention patent applications

CNC machines ensure machining accuracy reduce defect / 33during the reporting period

rates and improve material utilization. Smart sensors

monitor cutting fluid usage in real time allowing precise Number of invention patents granted / 84

dosing to avoid waste and pollution. during the reporting period

Total number of valid patents during the

/498

reporting period

692024 Sustainability Report

Connected in

Symbiotic Synergy

This chapter responds to the following SDGs:

Supply Chain Security and Sustainability

100% of suppliers 100% of suppliers 49 suppliers were 100% rectification

signed the Supplier signed the Supplier reviewed in total rate for identified

Integrity Pledge Code of Conduct high-risk

702024 Sustainability Report

Supply Chain Security and Sustainability

To build a secure transparent and sustainable supply chain Shuanghuan is committed to minimizing supply chain risks by enforcing strict supplier management systems. We ensure

that all suppliers comply with relevant laws regulations and Shuanghuan’s internal policies. In addition we promote sustainable practices through supplier responsibility management

and empower our suppliers with capability-building programs to continuously enhance their management level and sustainability performance.Supply Chain Compliance Management

Shuanghuan integrates clear business ethics clauses into all commercial

Business Ethics contracts requiring all suppliers to sign integrity agreements such as

and Integrity the Sunshine Integrity Commitment. These agreements commit suppliers

Agreements to strictly uphold ethical business practices throughout the cooperation process. In 2024 the signing rate of the Supplier Integrity Initiative and

Supplier Code of Conduct reached 100%.Shuanghuan has developed a comprehensive set of supply chain

Institutionalized management policies including procurement regulations and the Supplier

Management Management Manual. These documents provide clear standards and

Documents operational guidance for compliance management across all stages—from supplier selection and procurement execution to contract fulfillment—

ensuring that every step is well-documented and regulated.Steel being the core raw material for gear products is subject to a

highly regulated procurement system at Shuanghuan. The company has

implemented a traceable and controlled order management system for

steel procurement ensuring compliance and transparency from order

placement to final delivery.Compliance In this process Shuanghuan signs a Compliance Commitment Letter for

in Steel Partners with steel suppliers explicitly outlining anti-corruption and

Procurement ethical trading clauses. Suppliers are required to comply with all integrity

standards and legal regulations with zero tolerance for misconduct.Meanwhile internal procurement staff must sign a Code of Conduct

Commitment pledging to uphold ethical practices and safeguard the

company’s interests throughout procurement activities.

712024 Sustainability Report

Supplier Responsibility Management

Admission Performance Elimination

Phase Evaluation Mechanism

Shuanghuan has established a comprehensive The company implements a dynamic management mechanism for the To maintain a sustainable and reliable

o n b o a r d i n g p r o c e s s f o r s u p p l i e r s Approved Supplier List conducting annual performance evaluations. The supply chain Shuanghuan enforces a

accompanied by clear standards to ensure assessment covers not only product quality and on-time delivery but also supplier elimination mechanism based on

supplier quality compliance and stability. The service quality and CSR performance. Evaluations are organized by the performance ratings:

supplier development workflow is as follows: procurement department and cover three key areas:

A-level

Assessed based on the ratio of defective items to total Continue procurement and increase

Quality delivered items. order share;

Demand Preliminary Small-Batch B-level

Identification Assessment Procurement

On-time Calculated based on the percentage of delayed deliveries Continue procurement with potential

Delivery relative to total deliveries. reduction in order volume;

Entry into Approval for Trial Service Based on the supplier’s responsiveness and ability to

C-level

Approved Admission Evaluation Quality and Respons- meet service expectations; suppliers with >95% timely Maintain supply only for essential

Supplier List iveness responses receive full points. deliveries halt new project development;

When selecting new suppliers the company Based on total scores suppliers are rated as: D-level

evaluates key factors such as capability A-level: ≥ 80 points – Preferred supplier eligible for increased purchase share;

B-level: 60–79 points – Acceptable supplier purchase volume maintained or Terminate cooperation and exclude from

assessment financial health prior cooperation slightly reduced; future project opportunities.experience quality systems geographic location C-level: 40–59 points – Under observation purchase volume reduced no new

and management level. Additionally corporate projects;

social responsibility (CSR) environmental D-level: < 40 points – Disqualified removed from procurement list no further

performance and business ethics are also cooperation.In 2024 Shuanghuan conducted evaluations for 49 suppliers. Of these 15 were

incorporated as selection criteria. identified as having potential risks and 100% of those suppliers submitted and

implemented corrective action plans.

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Supplier Empowerment CASE 2024 Supplier ConferenceWe place great importance on collaborative development with our suppliers and The 2024 Supplier Conference themed “Empowering Shuanghuan Drivingstrive to enhance the overall capabilities of the supply chain through a variety of the Future” brought together over 500 participants from 238 companies.empowerment initiatives fostering mutual benefit and shared success. The main During the event Shuanghuan’s General Manager presented the company’s

approaches adopted by Shuanghuan to empower suppliers include: achievements over the past year future development plans quality

expectations for suppliers and updated procurement policies—further

Information Sharing and Strategic Alignment clarifying the direction and goals of future collaboration.Shuanghuan regularly organizes supplier engagement activities to promote transparent

information exchange and strategic coordination.CASE Steel Mill Partnership Conference

In August 2024 Shuanghuan

successfully held its second

partnership conference with

six major domestic specialty

s t ee l manu fac tu re r s a t

Daming Mountain in Lin’an

Hangzhou. During the event

Shuanghuan presented a

comprehens i ve ana lys i s

of key steel procurement

performance indicators from

the previous per iod and

outlined future procurement policies development directions and strategic

visions. This helped suppliers gain a clearer understanding of Shuanghuan’s

needs and strategic goals. Technical Support and On-Site Assistance

Shuanghuan offers comprehensive technical support and on-site assistance to its

suppliers covering areas such as quality management environmental optimization

Supplier Conference and Strategic Alignment and facility electrical layout design. Through hands-on guidance and training the

company helps suppliers enhance their technical capabilities and management

Shuanghuan hosts a Supplier Conference every two years offering suppliers a standards ensuring their products and services consistently meet Shuanghuan’s high

valuable platform to gain in-depth insights into the company’s strategies and policies. expectations.

732024 Sustainability Report

Supplier Risk Management

To ensure a stable and sustainable supply chain

Shuanghuan has established a comprehensive supplier

risk management system implementing various proactive

measures and response mechanisms:

Green Tiered Raw

Energy and Carbon Hazardous Material Climate Risk

Environmental Emissions Substance

Requirements Management Control

Compliance Response

Management

In response to downstream Shuanghuan adopts a tiered S h u a nghu a n ma i n t a i n s For steel procurement involving Shuanghuan has formulated

c u s t ome r d emand s f o r approach to managing supplier strict controls on hazardous high-risk regions suppliers climate risk response plans

environmental responsibility c a r b o n e m i s s i o n s : s t e e l substances in raw materials must commit to avo id ing based on the r isk levels

Shuanghuan se ts g reen suppliers are categorized as Tier particularly steel. Suppliers conflict minerals. Subsidiary of each operational base's

energy usage requirements 1 while all others fall into Tier 2. subject to REACH RoHS Huanqu Technology which location. It also proactively

for specific steel suppliers. Beginning in 2025 the company and restricted substance pr imar i ly procures plast ic notifies suppliers to maintain

Suppliers are encouraged to plans to conduct comprehensive regulat ions must submit pellets sources mainly from a d e q u a t e i n v e n t o r y i n

use clean energy sources to carbon emissions assessments MSDS documents relevant Eu ropean supp l i e r s w i t h an t i c ipa t ion o f ex t reme

reduce the environmental across its supplier base. It is certifications and signed s u p p l e m e n t a l d o m e s t i c weather events.impact of their production also developing an internal compliance statements. For sourcing. All suppliers must

processes. c a r b o n e m i s s i o n f a c t o r suppliers with significant s ubm i t RoHS and MSDS

da t aba se c o l l e c t i ng and p o l l u t a n t e m i s s i o n s reports to ensure compliance

verifying supplier emission data S hu anghuan u rg e s t h e a n d b o t h d ome s t i c a n d

and offering technical support optimization of hazardous international vendors have

in completing carbon disclosure waste treatment processes to obtained GIS certif ication

forms required by OEM clients. reduce environmental impact. reinforcing transparency and

reliability of supply chain.

742024 Sustainability Report

Equal Treatment of SMEs

Shuanghuan is committed to upholding fairness and equity in its partnerships with small and medium-sized enterprises (SMEs) striving to create a fair and transparent business

environment. The company has taken the following actions:

Shuanghuan strictly adheres to contractual agreements

to ensure timely payment to suppliers. In the first half By implementing a fully integrated bank-enterprise

Timely End-to-End

of 2024 the company fully cleared all outstanding coordination mechanism Shuanghuan has enhanced the

Payment of Bank-Enterprise

payments that had been overdue for six months to a operational efficiency of the company and streamlined

Invoices Integration

year effectively eliminating any delays in payments to SMEs operational processes.SMEs. This reflects its strong respect and support for

small and medium-sized partners.

752024 Sustainability Report

Data and Information Security

Shuanghuan places great emphasis on data and information security. Through advanced technologies stringent management protocols and continuous optimization measures the

company ensures both robust data protection and full compliance with privacy regulations. Utilizing methods such as network segmentation and firewalls Shuanghuan has built a

secure network perimeter that effectively shields against external threats. Regular offensive-defense drills and penetration tests are conducted to refine security strategies ensuring

data integrity and system stability.Information System Integration and Optimization

To maintain data consistency and quality Shuanghuan has established a synergized

digital environment integrating people materials and data. This integration supports

efficient workflows across production quality control engineering marketing

and other business operations. By connecting key platforms such as BI (Business

Intelligence) OA (Office Automation) CRM (Customer Relationship Management)

ERP (Enterprise Resource Planning) and D-MOM (Digital Manufacturing Operations

Management) the company achieves end-to-end information system integration.Hardware and Network Infrastructure

A fiber-optic backbone supports the company’s LAN with seamless data exchange

between plants via the internet. In 2019 Shuanghuan established a T2-compliant data

center in Hangzhou. Additionally a remote backup center in Yuhuan ensures disaster

recovery and enhances business continuity.Accelerated Remote

Networking

To boost inter-regional data exchange Shuanghuan has deployed Citrix SD-WAN

systems in Hangzhou Chongqing and Huai’an increasing network speed by 40% and

significantly improving stability and data transfer efficiency.

762024 Sustainability Report

Information Security Contingency Plans

The company has developed a comprehensive emergency response protocol for Shuanghuan has achieved Level 3 (Robust) certification under the Data Management

information security incidents categorized into three types: Capability Maturity Model (DCMM) signifying a significant advancement in its

enterprise-level data governance and management capabilities.Attack-related incidents

Disruptions caused by malware hacking or other forms of cyber intrusion.System failure incidents Level 3 Certificate in Data Management Level 3 Certification for Information

Capability Maturity (Robust Level) System Security Classified Protection

Interruptions due to software/hardware malfunctions environmental issues in

data centers or human error.Disaster-related incidents

Events like explosions fires lightning earthquakes or typhoons that damage

IT infrastructure and affect operations. ISO 27001 Information Security Management

System / TISAX Level 3 Certification

Metrics and Targets

Shuanghuan has detailed contingency measures in place to ensure rapid and effective

response minimizing losses in the event of an incident. Data and Information Security Metrics and Targets

Metrics Unit 2024 Progress 2025 Target

Specific monetary loss from

10000 RMB 0 0

data security incidents

772024 Sustainability Report

Customer Privacy Protection

The company has engaged a third-party provider to Metrics and Targets

Email Anti- implement an email anti-fraud managed service with

Fraud regular reports issued. Through advanced technical

Managed measures the service helps prevent phishing emails and

Service online scams safeguarding both customer and company Customer Privacy Protection Metrics and Targets

sensitive information from potential breaches.Metrics Unit 2024 Progress 2025 Target

The company regularly commissions third-party agencies

Third-Party to conduct penetration testing exercises. These simulated Specific amount involved 10000

Penetration cyber-attack scenarios are designed to assess and enhance in customer privacy breach 0 0RMB

Testing the security of the company's information systems ensuring incidents

robust protection of customer data and privacy.

7805

Rooted in Steady

Governance

This chapter responds to the following SDGs:

Anti-Bribery and Anti-Corruption Unfair Competition Prevention

The Board of Directors received one anti-bribery and anti-corruption Zero legal cases or major administrative penalties incurred due to

training session achieving 100% participation among board embers. unfair competition practices.All new employees underwent anti-bribery and anti-corruption Successfully obtained the Intellectual Property Compliance Management

training with 100% employee coverage. System Certification.

792024 Sustainability Report

Due Diligence and Risk Management

Shuanghuan has established internal systems such as the ESG Risk Management Procedure Economic

Responsibility Audit Measures and Audit Clue Collection Guidelines. These systems define the standards for

assessing compliance and operational risks enabling comprehensive identification of potential risks and

issues throughout the company’s operations. They also enhance control over high-risk areas and help

formulate mitigation strategies.For investments acquisitions and mergers the company engages third-party agencies to conduct

thorough due diligence. Similarly due diligence is conducted during the onboarding process of new

suppliers (see [Connected in Symbiotic Synergy-Supplier Responsibility Management] for details).Risk Management Framework

The company has established a Supervisory Board responsible for overseeing both financial and

operational activities. Comprising shareholder and employee representatives the board manages risks

across pre- mid- and post-operation phases and plays a key role in improving the company’s overall risk

management system.An Internal Audit and Legal Affairs Office has been set up to monitor and audit risk management performance

during business operations continuously enhancing the risk management and internal control systems.Risk oversight is incorporated into the company’s annual work plan. Each year audit projects and internal control

evaluations are conducted to assess the implementation and effectiveness of risk management measures. Any

major deficiencies or significant risk issues identified during audits are promptly reported to the Audit Committee.Risk Management Mechanism

Shuanghuan has established a comprehensive ESG risk management system based on the COSO

Enterprise Risk Management Framework and ISO 31000 Risk Management Standards to ensure sustainable Risk Risk Risk Risk Risk

long-term development. By moving the identification of potential major ESG risks to an earlier stage the Identification Evaluation Response Monitoring Reporting

company proactively detects all ESG risk points associated with its business operations. It has defined

internal control measures and control procedures for each risk point enhancing the effectiveness of risk

prevention and control. This approach reinforces operational stability and demonstrates Shuanghuan’s ESG Risk Management Mechanism

commitment to corporate social responsibility.

802024 Sustainability Report

Risk Audit and Supervision Risk Management Culture

The company has established an Internal Audit Policy to independently evaluate and oversee the Shuanghuan places great emphasis on cultivating a strong risk management culture

effectiveness of internal controls and risk management. This includes verifying the authenticity striving to embed risk awareness deeply into the mindset of every employee. By

and completeness of financial information ensuring the legality and compliance of operations establishing comprehensive internal policies the company integrates risk management

and assessing overall operational efficiency and effectiveness. The objective is to prevent and as a vital component of its overall development strategy and continuously enhances its

mitigate risks while safeguarding the company’s operations. capability for ongoing improvement in this area.The Audit Committee convenes regular meetings to review work plans and reports The Internal Audit and Legal Affairs Department regularly organizes internal training

submitted by the Audit Department. Reports to the Board of Directors include but are sessions conducting at least one focused training on core risk management principles

not limited to audit progress audit quality and any significant findings. each year across the organization. These efforts aim to ensure regulatory compliance

in operations and to mitigate risks to an acceptable level.In addition the company conducts third-party audits upon client request. These audits

cover areas such as labor practices occupational health and safety environmental

protection business ethics (including conflict minerals) and management systems.

812024 Sustainability Report

Anti-Bribery and Anti-CorruptionShuanghuan upholds a culture of integrity guided by the principle of “acting with integrity The Integrity Management Measures also include strict confidentiality protocols to protectliving with transparency.” The company recognizes the vital role that ethical conduct whistleblowers. Before utilizing or referencing any lead that might expose a whistleblower’s

plays in enhancing its reputation strengthening partnerships and maintaining competitive identity the Integrity Office is required to implement technical safeguards. All related case

advantage. It is committed to continuously improving its supervisory systems establishing files are sealed and may not be accessed without formal approval.and refining whistleblower mechanisms and reinforcing a culture of integrity at all levels.Whistleblowing Channels

Governance and Strategy Phone: (0571) 81671020Email: lianjie@gearsnet.com

Website: https://www.gearsnet.com/wx/feedback

Shuanghuan strictly adheres to anti-bribery and anti-corruption laws and regulations including WeChat Public Account: Follow the official “双环传动” (Shuanghuan) WeChat account

the Criminal Law of the People's Republic of China and the Anti-Unfair Competition Law. The and tap on the “一辈子”(“Whole Life)” menu at the bottom navigation bar then select “我company maintains a zero-tolerance policy toward all forms of corruption. 要举报” (“I Want to Report”).To strengthen its anti-corruption governance framework Shuanghuan has established and

implemented a series of internal policy documents including the Integrity Management Strengthening Integrity Education

Measures the Ethics Evaluation Implementation Guidelines and the Reception Management

Guidelines. These policies are designed to continually enhance the company’s anti-corruption As one of the company's four core values integrity is deeply embedded in Shuanghuan’s

systems and ensure compliance and ethical conduct across all operations. culture. The company promotes integrity awareness through diverse and engaging formats

including the publication of the Code of Business Conduct display of integrity slogans themed

Integrity Month campaigns dedicated training sessions a points-based integrity reward

system and employee commitment pledges. These initiatives cultivate a strong culture of

Integrity Management Measures ethical conduct across the organization.Strengthening Whistleblower Mechanisms CASE Employees Sign the Employee Code of Conduct

Shuanghuan has established a robust integrity framework under its Integrity Management

Measures. The company has formed an Integrity Management Committee led by the Chairman

with executive management and subsidiary general managers serving as committee members.A dedicated Integrity Office housed within the Chairman’s Office is responsible for day-to-day

oversight. Supporting roles are also designated within each subsidiary’s general administration

and HR departments to assist in implementing integrity initiatives.The company offers multiple accessible whistleblowing channels—via phone email website

and official WeChat account—to ensure timely and compliant handling of complaints and

reported issues. To increase visibility and encourage reporting signage with whistleblowing

information is displayed in high-traffic and high-risk areas across facilities. Regular checks

are conducted to ensure the effectiveness of these channels at all subsidiary locations.

822024 Sustainability Report

CASE "Integrity in Action Subtle Influence" Integrity Points Redemption Program

To embed integrity awareness into daily work

and life Zhejiang Shuanghuan launched

a "Integrity Points Redemption" initiative.Employees are encouraged to voluntarily

hand over items related to potential integrity

risks which are then recorded by designated

personnel and publicly acknowledged once

a year. Participants are awarded integrity

assessment points which are directly

linked to opportunities for promotion and

recognition. These points can also be

redeemed for material rewards fostering a

culture where ethical behavior is valued and

tangibly encouraged.Supplier Integrity Management

Shuanghuan not only emphasizes internal integrity but also

actively promotes ethical awareness throughout its supply chain.The company requires all suppliers to sign a Letter of Integrity

Commitment which sets clear expectations for ethical conduct and

helps regulate the behavior of personnel on both sides fostering

a culture of transparency and trust in business collaboration.Metrics and Targets Shuanghuan Business Ethics and

Compliance Training

Shuanghuan regularly conducts anti-corruption and anti-bribery assessments. During the reporting

period the company recorded zero incidents related to commercial bribery or corruption.

100% of employees received anti-corruption and anti-bribery training upon onboarding.

The Board of Directors completed one round of anti-corruption and anti-bribery training with 100%

participation from board members.

832024 Sustainability Report

Unfair Competition Prevention

Shuanghuan places great importance on preventing unfair competition and is committed to practicing responsible marketing. Through a systematic approach to trademark protection

and authorization management the company ensures that its legal rights and interests are well protected in the competitive marketplace.Responsible Marketing Metrics and Targets

Shuanghuan firmly upholds the principle of responsible marketing in all its Metrics and Targets of Unfair Competition Prevention

commercial communications ensuring that all promotional content is truthful

accurate and compliant. Public materials strictly follow the requirements

of the Advertising Law of the People’s Republic of China avoiding exaggerated Metrics Unit 2024 Progress 2025 Target

or misleading language and always basing messaging on verified facts. To

ensure compliance the marketing team works closely with the legal team. Amount involved in lawsuits or major

Professionals handle promotional content to prevent overstatements and administrative penalties due to the 10，000RMB 0 0

to ensure all communications are honest objective and responsible. In company’s unfair competition practices

addition the company places strong emphasis on compliance with overseas during the reporting period

regulations engaging a dedicated international legal team to provide

specialized support.Ongoing Trademark Registration: The company actively registers trademarks for new

products to ensure brand rights are protected from infringement.Intellectual Property Robust Patent Filing: Shuanghuan proactively applies for patents to secure proprietary

Protection technologies and innovations reinforcing its leadership position in key technical areas.Confidentiality Controls: Internally core employees are required to sign strict non-

Shuanghuan places great importance disclosure agreements that clearly outline confidentiality responsibilities and obligations

on intellectual property (IP) protection to prevent leakage of trade secrets. Externally the company includes explicit

and has established a comprehensive confidentiality clauses in contracts with partners suppliers and other stakeholders to

Intellectual Property Management Policy ensure that all parties adhere to strict privacy requirements during collaboration.to safeguard i ts technologies and Authorization and Licensing Management: A rigorous system governs trademark use

innovations. Key measures include: across subsidiaries. Written authorization is mandatory for all trademark usage and all Intellectual Property Compliance

authorizations must be filed with the trademark bureau to ensure lawful and standardized Management System

trademark management and prevent infringement. Certification

84Key Sustainability Performance Table

Economic Performance Social Performance

Metrics Unit 2022 2023 2024 Metrics Unit 2022 2023 2024

Total Revenue 10000 RMB 683794.63 807419.15 878139.81 Data Security Incidents During

Reporting Period cases 0 0 0

Industrial Output Value 10000 RMB 663635.07 747989.34 899838.98 Privacy Breach Incidents During

Reporting Period cases 0 0 0

Industrial Added Value 10000 RMB 234395.18 291774.24 354949.37

10000

Work Injury Insurance Investment 348.08 393.65 569.40

RMB

Social Performance Work Injury Insurance Coverage Rate % 100 100 100

Metrics Unit 2022 2023 2024 Safety Production Liability

10000

Insurance Investment 74.40 124.80 54.80RMB

10000

R&D Investment 29755.93 38374.52 45604.29 Safety Production Insurance

RMB Coverage Rate % 100 100 100

R&D Investment as % of Main

Business Revenue % 4.35 4.75 5.19 Number of Safety Incidents cases 0 0 0

Number of R&D Personnel persons 867 1007 1262 Total Number of Employees persons 7037 7263 8333

% of R&D Personnel % 12.3 13.9 15.1 — Male persons 5099 5448 6344

Invention Patents Applied to Core — Female persons 1938 1815 1989

Business items 509 509 498 — Age 30 and below persons 2593 3017 3608

Invention Patent Applications items 71 45 33 — Age 31–40 persons 1971 2416 2722

Invention Patents Granted items 62 82 84 — Age 41–50 persons 1085 1281 1392

Effective Patents items 343 425 498 — Age above 50 persons 456 549 611

Total Rural Revitalization 10000 / / 98 Number of Training Sessions sessions 4245 6098 11009Investment RMB

10000

Annual Training Expenditure 343.00 179.43 239.41

Major Incidents Related to RMB

Product & Service Safety cases 0 0 0

Training Coverage Rate % 65.0% 68.5% 82.7%

85Governance Performance Environmental Performance

Metrics Unit 2022 2023 2024 Metrics Unit 2022 2023 2024

Number of Board Total VOC Emissions tons

Directors Trained in Anti- 4.68 17.21 20.54

Corruption and Anti- persons 9 9 9

Bribery Total NOx Emissions tons 0.68 1.29 2.97

Percentage of Directors Total PM Emissions tons / / 3.42

Trained % 100 100 100 Total COD Emissions tons 6.91 4.58 6.20

Total NH? -N missions tons 0.34 0.26 0.84

Number of Management

Personnel Trained persons 680 686 706 Total Hazardous Waste tons 2728.97 2739.45 3470.81

Hazardous Waste

Percentage of Intensity (per 10000 tons/10000 / / 0.0039

Management Personnel % 100 100 100 CNY outputCNY output)

Trained

Hazardous Waste

Intensity (per 10000 tons/10000 CNY GVA / / 0.0098

Number of Employees CNY added value)

Trained persons 7037 7263 8333

Total General Waste tons 10286.22 25102.15 24393.67

General Waste

Percentage of Employees Intensity (per 10000 tons/10000

Trained % 100 100 100 CNY output

//0.027

CNY output)

General Waste

Intensity (per 10000 tons/10000 / / 0.069

Number of Business CNY GVAcases 0 0 0 CNY added value)Ethics Violations

Total Recycled Waste tons / / 26327.4

Lawsuits or Major Major Environmental

Administrative Penalties cases 0 0 0 Compliance Violations cases 0 0 0

from Unfair Competition

Total Water

Number of Commercial Consumption

tons 935989 1202399 987881

Bribery or Corruption cases 0 0 0 Total Wastewater

Cases Discharge tons / / 496069

86Environmental Performance Environmental Performance

Metrics Unit 2022 2023 2024 Metrics Unit 2022 2023 2024

Recycled Water

Volume tons 14121.6 343931 402882

WEEE Recycled as a

Percentage of EEE % 0 0 0

Water Intensity (per tons/10000 Launched to Market

10000 CNY output) CNY output / 1.59 1.10

Water Intensity (per GHG Emissions (Scope

1 + 2) tons CO ? e 230700.00 295460.24 263841.6210000 CNY added tons/10000

value) CNY GVA / 4.12 2.78

Scope 1 GHG

Total Energy Emissions

tons CO ? e / 20864.45 15834.85

Consumption

(Standard Coal tce / 52431.90 61096.14

Equivalent) - Quantity- Scope 2 GHG Emissions tons CO ? e / 274595.79 248006.76Based

Total Energy GHG Emissions

Consumption tons Intensity (per 10000 CO ? e/10000

(Standard Coal tce 109755.74 126867.00 155889.63 / 0.39 0.29CNY output) CNY

Equivalent) - Value-

Based GHG Emissions tons

Natural Gas sumption 10000 Nm3 218.81 297.91 334.57 Intensity (per 10000 CO ? e/10000 0.9 1.01 0.74CNY added value) CNY GVA

Gasoline Consumption tons / 62.21 36.96 Renewable Resource

Consumption (Steel) tons / / 280461.78

Diesel Consumption tons / 114.77 121.40

Renewable Resource

Grid Electricity

Consumption MWh 375046.17 395068.54 462181.82

Consumption tons / / 2798.56

(Recovered Oil)

Photovoltaic lectricity

MWh / 9589.47 6649.81 Renewable Resource

Generation Consumption (Plastic) tons / / 840.70

Energy Intensity (Quantity- tce/10000

Based per 10000 CNY CNY output / 0.07 0.07 Renewable Resource

output) Consumption tons / / 2229.57

Energy Intensity (Quantity- (Packaging Materials)

Based per 10000 CNY tce/10000

added value) CNY GVA

/0.180.17

Renewable Resource

Energy Intensity (Value- Consumption tons / / 1219.38tce/10000

Based per 10000 CNY CNY output / 0.17 0.17 (Returnable Boxes)

output)

Energy Intensity (Value- Renewable Resource

Based per 10000 CNY tce/10000

CNY GVA 0.43 0.43 0.44

Consumption (Cutting tons / / 93.61

added value) Tools)

87GRI Content Index

No. DISCLOSURE LOCATION No. DISCLOSURE LOCATION

2-1 Organizational Details About Shuanghuan 2-16 Communication of critical concerns Material Topic Analysis

2-2 Entities included in the organization’s About this Report 2-17 Collective knowledge of the highest sustainability reporting governance body Anchored in Solid Operations

2-3 Reporting period frequency and contact point About this Report 2-18

Evaluation of the performance of the

highest governance body /

2-4 Restatements of information / 2-19 Remuneration policies /

2-5 External assurance Assurance Statement 2-20 Process to determine remuneration /

2-6 Activities value chain and other business relationships About Shuanghuan 2-21 Annual total compensation ratio /

2-7 Employees Unified in Perfect Harmony 2-22 Statement on sustainable development strategy Anchored in Solid Operations

2-23 Policy commitments Unified in Perfect Harmony

2-8 Workers who are not employees /

2-24 Embedding policy commitments Rooted in Steady Governance

2-9 Governance structure and composition Anchored in Solid Operations

2-25 Processes to remediate negative impacts Rooted in Steady Governance

2-10 Nomination and selection of the highest governance body Anchored in Solid Operations 2-26 Mechanisms for seeking advice and raising concerns Rooted in Steady Governance

2-11 Chair of the highest governance body Anchored in Solid Operations

2-27 Compliance with laws and regulations Rooted in Steady Governance

2-12 Role of the highest governance body in overseeing the management of impacts Anchored in Solid Operations 2-28 Membership associations /

2-13 Delegation of responsibility for managing impacts Anchored in Solid Operations

2-29 Approach to stakeholder engagement Material Topic Analysis

2-14 Role of the highest governance body in sustainability reporting Anchored in Solid Operations 2-30

Collective bargaining agreements Unified in Perfect Harmony

2-15 Conflicts of interest /

88No. DISCLOSURE LOCATION No. DISCLOSURE LOCATION

GRI 201: Economic Performance 2016 GRI 207: Tax 2019

201-1 Direct economic value generated and 207-1 Approach to taxdistributed About Shuanghuan /

201-2 Financial implications and other risks and

207-2 Tax governance control and risk management /

opportunities due to climate change Flowed with Green Circularity

207-3 Stakeholder engagement and management of /

201-3 Defined benefit plan obligations and other retirement plans Unified in Perfect Harmony 207-4 concerns related to tax /

201-4 Financial assistance received from government / GGRI 301: Materials 2016

GRI 202: Market Presence 2016 301-1 Materials used by weight or volume Flowed with Green Circularity

202-1 Ratios of standard entry level wage by gender / 301-2 Recycled input materials used Flowed with Green Circularitycompared to local minimum wage

202-2 Proportion of senior management hired from 301-3

Reclaimed products and their packaging

the local community / materials

Flowed with Green Circularity

GRI 203: Indirect Economic Impacts 2016 GRI 302: Energy 2016

203-1 Infrastructure investments and services 302-1 Energy consumption within the organization Flowed with Green Circularitysupported Unified in Perfect Harmony

203-2 Significant indirect economic impacts Unified in Perfect Harmony 302-2 Energy consumption outside of the organization Flowed with Green Circularity

GRI 204: Procurement 302-3 Energy intensity Flowed with Green Circularity

204-1 Proportion of spending on local suppliers Key Sustainability Performance 302-4 Reduction of energy consumption Flowed with Green CircularityTable

302-5 Reductions in energy requirements of products GRI 205: Anti-corruption 2016 and services Flowed with Green Circularity

205-1 Operations assessed for risks related to

GRI 303: Water and Effluents 2018

corruption Rooted in Steady Governance

303-1 Interactions with water as a shared resource Flowed with Green Circularity

205-2 Communication and training about anti-corruption policies and procedures Rooted in Steady Governance

303-2 Management of water discharge-related Flowed with Green Circularity

205-3 Confirmed incidents of corruption and actions

impacts

taken Rooted in Steady Governance 303-3 Water withdrawal Flowed with Green Circularity

GRI 206: Anti-competitive 303-4 Water discharge Flowed with Green Circularity

206-1 Legal actions for anti-competitive behavior anti-trust and monopoly practices Rooted in Steady Governance 303-5 Water consumption Flowed with Green Circularity

89No. DISCLOSURE LOCATION No. DISCLOSURE LOCATION

GRI 304: Biodiversity 2016 GRI 308: Supplier Environmental Assessment 2016

Operational sites owned leased managed in

304-1 or adjacent to protected areas and areas of 308-1

New suppliers that were screened using Connected in Symbiotic

environmental criteria Synergy

high biodiversity value outside protected areas

308-2 Negative environmental impacts in the supply Connected in Symbiotic

304-2 Significant impacts of activities products and Flowed with Green Circularity

chain and actions taken Synergy

services on biodiversity

GRI 401: Employment 2016

304-3 Habitats protected or restored

401-1 New employee hires and employee turnover /

IUCN Red List species and national conservation

304-4 list species with habitats in areas affected by /

operations Benefits provided to full-time employees that 401-2 are not provided to temporary or part-time Unified in Perfect Harmony

GRI 305: Emissions 2016 employees

401-3 Parental leave Unified in Perfect Harmony

305-1 Direct (Scope 1) GHG emissions Flowed with Green Circularity

GRI 402: Labor/Management Relations 2016

305-2 Energy indirect (Scope 2) GHG emissions Flowed with Green Circularity

402-1 Minimum notice periods regarding operational

305-3 Other indirect (Scope 3) GHG emissions / changes

GRI 403: Occupational Health and Safety 2018

305-4 GHG emissions intensity Flowed with Green Circularity

403-1 Occupational health and safety management

305-5 Reduction of GHG emissions Flowed with Green Circularity system

Unified in Perfect Harmony

403-2 Hazard identification risk assessment and

305-6 Emissions of ozone-depleting substances (ODS) / incident investigation

Unified in Perfect Harmony

403-3 Occupational health services Unified in Perfect Harmony

305-7 Nitrogen oxides (NOx) sulfur oxides (SOx) and Key Sustainability Performance other significant air emissions Table Worker participation consultation and

403-4 communication on occupational health and Unified in Perfect Harmony

safety

GRI 306: Waste 2020

403-5 Worker training on occupational health and safety Unified in Perfect Harmony306-1 Waste generation and significant waste-related impacts Flowed with Green Circularity

403-6 Promotion of worker health Unified in Perfect Harmony

306-2 Management of significant waste-related impacts Flowed with Green Circularity Prevention and mitigation of occupational

306-3 Waste generated Flowed with Green Circularity 403-7 health and safety impacts directly linked by Unified in Perfect Harmonybusiness relationships

306-4 Waste diverted from disposal Flowed with Green Circularity 403-8 Workers covered by an occupational health and safety management system Unified in Perfect Harmony

306-5 Waste directed to disposal Flowed with Green Circularity 403-9 Work-related injuries Unified in Perfect Harmony

90No. DISCLOSURE LOCATION No. DISCLOSURE LOCATION

403-10 Work-related ill health Unified in Perfect Harmony GRI 413: Local Communities 2016

GRI 404: Training and Education 2016 Operations with local community engagement 413-1 impact assessments and development Unified in Perfect Harmony

404-1 Average hours of training per year per

programs

employee Unified in Perfect Harmony

404-2 Programs for upgrading employee skills and

Operations with significant actual and potential

transition assistance programs Unified in Perfect Harmony

413-2 negative impacts on local communities /

404-3 Percentage of employees receiving regularperformance and career development reviews Unified in Perfect Harmony GRI 414: Supplier Social Assessment 2016

GRI 405: Diversity and Equal Opportunity 2016 414-1 New suppliers that were screened using social criteria /

405-1 Diversity of governance bodies and employees Anchored in Solid Operations 414-2 Negative social impacts in the supply chain and Connected in Symbiotic actions taken Synergy

405-2 Ratio of basic salary and remuneration of women to men / GRI 415: Public Policy 2016

GRI 406: Non-discrimination 201 415-1 Political contributions /

406-1 Incidents of discrimination and corrective actions taken Unified in Perfect Harmony GRI 416: Customer Health and Safety 2016

GRI 407: Freedom of Association and Collective Bargaining 2016 416-1 Assessment of the health and safety impacts of product and service categories Powered by Infinite Innovation

Operations and suppliers in which the right Incidents of non-compliance concerning the

407-1 to freedom of association and collective Unified in Perfect Harmony 416-2 health and safety impacts of products and /

bargaining may be at risk services

GRI 408: Child Labor 2016 GRI 417: Marketing and Labeling 2016

408-1 Operations and suppliers at significant risk for Unified in Perfect Harmony 417-1 Requirements for Product and Service incidents of child labor Information and Labeling Rooted in Steady Governance

GRI 409: Forced or Compulsory Labor 2016 417-2 Incidents of Non-compliance Concerning Product and Service Information and Labeling Rooted in Steady Governance

409-1 Operations and suppliers at significant risk for

Incidents of Non-compliance Concerning

incidents of forced or compulsory labor Unified in Perfect Harmony

417-3 Marketing Communications Rooted in Steady Governance

GRI 418: Customer Privacy 2016

GRI 410: Security Practices 2016

Substantiated Complaints Concerning Breaches

410-1 Security personnel trained in human rights 418-1 of Customer Privacy and Losses of Customer

Connected in Symbiotic

policies or procedures / Data Synergy

GRI 411: Rights of Indigenous Peoples 2016

411-1 Incidents of violations involving rights of indigenous peoples /

91Content Index for the Shenzhen Stock Exchange Guideline No. 17 on Self-Regulation of Listed Companies - Sustainability Report

Dimensions and Topics No. Location

21 Flowed with Green Circularity

22 Flowed with Green Circularity

23 Flowed with Green Circularity

24 Flowed with Green Circularity

Climate Change Response

25 Flowed with Green Circularity

26 Flowed with Green Circularity

27 Flowed with Green Circularity

Environmental

28 Flowed with Green Circularity

Topic

Pollutant Emissions 30 Flowed with Green Circularity

Waste Management 31 Flowed with Green Circularity

Pollution Prevention and

Ecosystem Protection Ecosystem and Biodiversity

32 Flowed with Green Circularity

Conservation

Environmental Compliance

33 Flowed with Green Circularity

Management

Energy Use 35 Flowed with Green Circularity

Resource Utilization and

Water Resource Utilization 36 Flowed with Green Circularity

Circular Economy

Circular Economy 37 Flowed with Green Circularity

92Content Index for the Shenzhen Stock Exchange Guideline No. 17 on Self-Regulation of Listed Companies - Sustainability Report

Dimensions and Topics No. Location

Rural Revitalization 39 Unified in Perfect Harmony

Rural Revitalization and Social

Contributions

Social Contributions 40 Unified in Perfect Harmony

Innovation-Driven Strategy 42 Powered by Infinite Innovation

Innovation-Driven Development

and Tech Ethics

Technology Ethics 43 /

Social Topic Supply Chain Security 45 Connected in Symbiotic Synergy

Equal Treatment of SMEs 46 /

Suppliers and Customers

Product and Service Safety & Quality 47 Powered by Infinite Innovation

Data Security and Customer Privacy

48 Connected in Symbiotic Synergy

Protection

Employees Employees 50 Unified in Perfect Harmony

Due Diligence 52 Rooted in Steady Governance

Governance Mechanisms for

Sustainable Development

Sustainable Stakeholder Communication 53 Material Topic Analysis

Development

Governance Topics Anti-Bribery and Anti-Corruption 55 Rooted in Steady Governance

Business Conduct

Unfair Competition Prevention 56 Rooted in Steady Governance

93Assurance Statement

STATEMENT OF INDEPENDENCE AND COMPETENCE

ASSURANCE STATEMENT The SGS Group of companies is the world leader in inspection testing and certification operating in multiple countries and providing services. SGS affirm our independence from SHUANGHUAN being free from bias and

conflicts of interest with the organisation its subsidiaries and stakeholders.CN25/00002615 The assurance team was assembled based on their knowledge experience and qualifications for this

assignment.SGS-CSTC’S REPORT ON SUSTAINABILITY ACTIVITIES IN THE ZHEJIANG FINDINGS AND CONCLUSIONS

SHUANGHUAN DRIVELINE CO.LTD.’S SUSTAINABILITY REPORT FOR 2024 ASSURANCE/VERIFICATION OPINION

On the basis of the methodology described and the assurance engagement performed the assurance team

NATURE OF THE ASSURANCE/VERIFICATION concludes that the Report conforms to the four principles of the AA1000 to the following extent:

SGS-CSTC STANDARDS TECHNICAL SERVICES CO. LTD. (hereinafter referred to as SGS) was

commissioned by Zhejiang Shuanghuan Driveline Co. Ltd. (hereinafter referred to as SHUANGHUAN) to INCLUSIVITY

conduct an independent assurance of the Chinese version of SHUANGHUAN’s Sustainability Report for 2024 SHUANGHUAN has identified the organization’s stakeholders established multiple channels for stakeholders

(hereinafter referred to as the Report). communication and engagement undertaken various forms of dialogue and interaction with them and collected

their expectations and concerns.INTENDED USERS OF THIS ASSURANCE STATEMENT

This Assurance Statement is provided with the intention of informing all SHUANGHUAN’s stakeholders. MATERIALITY

SHUANGHUAN has utilized methods such as stakeholder questionnaire surveys expert evaluations and

RESPONSIBILITIES scoring evaluations to conduct an analysis and evaluation of the importance of sustainability topics and

The information in the Report and its presentation are the responsibility of the management level of disclosed the importance of sustainability topics according to financial importance and impact importance.SHUANGHUAN. SGS has not been involved in the preparation of any of the material included in the Report.RESPONSIVENESS

Our responsibility is to express an opinion on the extent to which the Report conforms to the four principles of In the Report SHUANGHUAN has disclosed the management practices and performance of topics that

the AA1000 Assurance Standard within the scope of assurance with the intention to inform all SHUANGHUAN’s substantially impact stakeholders' evaluation and decision-making to an appropriate extent and also

stakeholders. demonstrated the communication and participation activities of key stakeholders.SGS hereby states that it shall not be held responsible or liable for any direct indirect incidental or IMPACT

consequential damages or losses arising from or in connection with the use of information provided in this In the Report SHUANGHUAN has disclosed the important environmental and social impacts target indicators

report. and monitoring methods of sustainability topics to a certain extent based on the current management situation.ASSURANCE STANDARDS TYPE AND LEVEL OF ASSURANCE FINDINGS AND RECOMMENDATIONS

The assurance of this report has been conducted according to the AA1000 Assurance Standard (AA1000AS All observations pertaining to commendable practices sustainable development activities and managerial

v3) a standard used globally to provide assurance on sustainability-related information across organizations of recommendations identified throughout the assurance process have been thoroughly documented in the

all types including the evaluation of the nature and extent to which an organization adheres to the Internal Management Report on Sustainability Reporting Assurance. This report has been officially presented to

AccountAbility Principles (AA1000AP 2018). the relevant management divisions of SHUANGHUAN to serve as a reference for their ongoing efforts towards

Assurance Standard Options Level of Assurance continuous improvement.AA1000AS v3 Type 1 Moderate

SCOPE OF ASSURANCE

The scope of the assurance was confined to assessing the extent to which the Report's content conforms to the Signed:

four principles of the AA1000. It is important to note that this engagement did not encompass an assurance of

the sustainability performance information included in the Report.Reporting Criteria Options

AA1000 Accountability Principles (2018)

For and on behalf of SGS-CSTC

ASSURANCE METHODOLOGY

The assurance comprised a combination of pre-assurance research interviews with relevant employees of David Xin

SHUANGHUAN which is located at Hehe Building Building 2 No. 658-1 Jingchang Road Wuchang Street Sr. Director – Business Assurance

Yuhang District Hangzhou Zhejiang Province P.R. China including documentation and record review and 16/F Century Yuhui Mansion No. 73 Fucheng Road Beijing P.R. China

validation where relevant and online review and confirmation of documents and records with relevant

employees of its subsidiaries. Apr. 24th 2025

WWW.SGS.COM

LIMITATIONS AND MITIGATION

This assurance engagement was restricted to the group level of SHUANGHUAN and did not include traceability

of original data from all subordinate institutions.This assurance engagement was limited to conducting interviews with departmental managers and selected

employees of SHUANGHUAN in addition to reviewing relevant documents and records. External stakeholders

were not included in the interview process.

94BETTER EVERY T IME ALWAYS

ZHEJIANG SHUANGHUAN DRIVELINE CO. LTD.Tel：0571-81671018

Email：shdmb@gearsnet.com

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