Suofeiya Home Collection Co. Ltd

ENVIRONMENTAL SOCIAL

AND GOVERNANCE

REPORT (2024)FOREWORD

Report Overview Terminology Explanation

This is the 8th annual ESG report published by Suofeiya Home Collection Co. Ltd. It aims to comprehen- For the convenience of expression and reading the terms "Suofeiya" "the Company" "the enterprise"

sively and objectively reflect the company's practices and achievements in environmental protection and "we" in this report all refer to "Suofeiya Home Collection Co. Ltd."

social responsibility and corporate governance in 2024 further strengthening communication and

connection with various stakeholders.Data Sources

Compilation Basis The textual material and case studies in this report primarily come from the company’s statistical data

relevant documents and internal communications. The financial data in the report is sourced from the

Global Reporting Initiative (GRI) Sustainability Reporting Standards (GRI Standards)

company’s audited 2024 annual report while other data is based on internal statistics. Unless otherwise

International Organization for Standardization (ISO) 26000: 2010 Guidance on Social Responsibility

specified the currency type and amounts mentioned in the report are in RMB. The company assures that

United Nations Sustainable Development Goals (SDGs) Business Action Guidelines

the content of this report does not contain any false records misleading statements or significant omis-

Chinese Academy of Social Sciences (CASS) - the Guidelines on Corporate Social Responsibility

sions and is responsible for the truthfulness accuracy and completeness of the content.Reporting for Chinese Enterprises – Basic Framework (CASS-ESG 5.0)

Research on the Compilation of ESG Special Reports for Centrally Administered State-Owned Enterpris-

es’ Listed Subsidiaries by State-owned Assets Supervision and Administration Commission (SASAC) of

the State Council Report Access

ESG Reporting Rating Standards for Chinese Enterprises (2025) (Consultation Draft) This report is available in both Chinese and English versions for readers’ reference. It can be download-

Guideline No. 1 on Self-Regulation of Listed Companies of Shenzhen Stock Exchange --- Standardized ed from Suofeiya Home Collection Co. Ltd.’s official website (http://www.sfygroup.com) or the CNINFO

Operation of Listed Companies on the Main Board website (http://www.cninfo.com.cn).Guideline No. 3 on Self-Regulation of Listed Companies of Shenzhen Stock Exchange – Sustainable

Development Report Preparation

Guideline No. 17 on Self-Regulation of Listed Companies of Shenzhen Stock Exchange – Sustainable

Development Report (Trial) Report Feedback and Contact Information

Contact Address: No. 2 Xianning Road Guo Village Yongning Subdistrict Zengcheng District Guang-

zhou City Guangdong Province China

Time Frame

Contact Number: (+86) 020-87533019

This annual report covers the period from January 1 2024 to December 31 2024. Some content may Email: ningji@suofeiya.com.cn

reference previous years where appropriate. Official Website: www.sfygroup.comCONTENTS

目录

21 61Service Upgrades

Promoting Green · Service Standards Leading Continuous

Development Development of Industry Services

· Smart Service Upgrades for Full-Chain 69

·Addressing Climate Change

Efficiency

·EHS Policies and Management 37 · Full-Process Relay Service Coordination Joint Growth

07 ·Resource Consumption and Management · Service Indicators Meteorological Station ·Employee Rights and Benefits·Green Logistics ResponsibleSupply Establishment ·Employee Growth

ChainManagement · Female Employee Care

Sustainable Governance ·Employee Activities

Section

·Sustainable Development Governance

·Compliance Governance

·Protection of Shareholder Rights 45

·Compliance in Operations and Business Ethics 73

·Privacy and Information Security Qualily innovvation

Social

·Standard Iteration Leading Industry Upgrades

Responsibility

·Technological Innovation Leading Industry Transformation

Stakeholder Communication 01

·Transformation of Innovative R&D Achievements Continuously ·Actively Fulfilling Social Responsibility

ESG Key Issues Analysis 02 Stimulating Innovation Vitality and Facilitating the Development of a

Friendly Healthcare Environment.About Suofeiya 03 ·Illuminating the World with ReadingThe

"Children's Book House" Public Welfare

Project Supporting the Development of "

Closing Remarks 69 Campuses with Reading Ethos"

ESG Key Performance 71

Company Honors 81Stakeholder Communication

The company continuously improves its stakeholder communication management system utilizing various channels such as regular

surveys work interviews and online communication to promptly and transparently convey information. This strengthens interactions

with shareholders employees customers and communities building an open inclusive and cooperative relationship. By innovatively

introducing digital technologies conducting online surveys holding regular meetings and organizing open day events the company

achieves two-way information exchange gains a deeper understanding of the needs of all parties formulates personalized communica-

tion strategies and enhances stakeholders' understanding of and support for the company. This fosters trust and collaboration effec-

tively promoting the co-creation of social value and laying a solid foundation for the company’s sustainable development.Stakeholders Focus Areas Communication Channels

Corporate Governance Tax Compliance Operations

Compliance Employment Tax Compliance

Promotion Carbon Supervision and Assessment

Government and Emissions Management Regular Reports or Presentations

Regulatory Agencies Pollution Control Special Meetings

Information Security and Privacy Questionnaire Surveys

Protection Occupational Health and Safety Anti-Corruption Mechanisms

Sustainable Operations Shareholder Meetings

Risk Management and Compliance Information Disclosure

Shareholders and

Investors Investor Relations Investor Communication Meetings ESG Key Issues Analysis

R&D and Innovation Official Website

Compliance Employment Staff Representative Meetings Following the substantive issue analysis method provided by the Global Reporting Initiative (GRI) the Company identified 25 key ESG

Compensation and Benefits Employee Meetings issues. These issues were assessed based on their impact on the economy environment and society as well as their importance to

Employees stakeholders' decision-making. This led to the creation of the ESG Key Issues Matrix. These issues cover:

Work Safety Employee Training

Career Development Training and Corporate Culture Activities High

Protection of Customer Rights Information Confidentiality After-Sales Service Mechanism Business Ethics Green products Carbon emissions Promotion of industry development

Customers High-Quality Products Design Quality and Technology Iteration Anti-corruption Employee training Compensation and benefits Sustainable development managemen

and development

Professional Services Satisfaction Surveys (CSI/DSI) Green Operations Product quality and safety Employee health and safety

Transparent Procurement Supply Chain Management System

Financial

Suppliers/Partners Win-Win Cooperation Cost Reduction and Efficiency Improvement Materiality

Joint R&D Response to climate Resource management Corporate governance Supply chain management

Industry Ecosystem Supplier Conferences Change

Compliance operations Technological innovation

Swift Response to Public Opinion Events Proactively Accept Media Interviews Waste management Water resource usage

Media Shareholder rights Business ethics

Provide Authoritative and Transparent Respond to Social Concerns Post Company Updates on Official Website Energy management Customer rights

Company Information WeChat Official Account etc. Intellectual property protection Information security and privacy protection

Participation in Community Development Fulfill Social Responsibilities

Active Involvement in Public Welfare Engage in Public Welfare Activities

General Public

Create Employment Opportunities Higher Impact Materiality High

Volunteering

01 02ABOUT

SUOFEIYA

Company Overview

Suofeiya Home Collection Co. Ltd. was founded in 2003 and has been deeply

involved in the Chinese home furnishing market for over two decades. As one of

the pioneers in introducing the concept of "customized closets" in China Suofeiya

successfully brought customized closets to the market and gained recognition

from Chinese consumers with its innovative product concept combining custom-

ized closets and sliding doors for closets. Suofeiya is committed to providing

consumers with comprehensive customized home furnishing solutions engaging

in the design development production and sales of whole-house furniture

including closets cabinets doors and windows wall panels flooring household

goods appliances and sanitary ware. In 2011 Suofeiya was successfully listed

on the Shenzhen Stock Exchange becoming the first A-share listed company in

the industry (Stock Code: 002572).Corporate Culture

Mission Decorating Homes Easily with Technology and Creativity

Integrating Beauty of the World into New Life.Providing Customers with a Good Experience through

Vision Personalized Design and Efficient Operation and Becoming

a Trustworthy World-leading Home Furnishing Company.Customer Foremost Innovation and Sharing Professional

Core Values

and Efficient Honest and Progressive.Business Philosophy

Customer Experience

Iron Triangle

Personalized of Customization Professional &

Customization Efficient.

03 04SUSTAINABLE 01

GOVERNANCE

05 06ENVIRONMENTAL Compliance Governance

The company strictly adheres to relevant laws and regulations. It

has established a comprehensive corporate governance structure

GOVERNANCE

including the General Meeting of Shareholders the Board of Direc-

SOCIAL tors and its specialized committees the Board of Supervisors and

the management team. It has formulated a series of regulatory Suofeiya Retai l Business Division

documents including the Rules of Procedure for the Board of Schmidt Retai l Business Division

Directors the Rules of Procedure for the Board of Supervisors and

Mi lanla Retai l Business Division

the Information Disclosure Management Regulations to ensure

compliance with operations and business ethics. Huahe Retai l Business Division

B2B Whole Seal Business Division

Integrated to HouseDecorat ion

Company Business Division

Supervision General Manager’s Direct Retai l Business Division

Sustainable Development Governance Department Off ice

Furniture and Home Col lect ion

Business Division

AuditSuofeiya is committed to responding to national sustainable development policies with the vision of “providing customers with a Department Overseas Business Divisionwonderful experience through personalized design and efficient operations becoming a trustworthy and globally leading home furnishing Qual i ty Centerenterprise.” The Company adheres to its core values of “Customer Foremost Innovation and Sharing Professional and Efficient Audit Manufacturing CenterHonest and Progressive” advancing the deep integration of ESG principles into the Company’s value chain. The Company has Committee

established a three-level linkage system of "Strategic Decision-Making - Coordinated Management - Efficient Execution" to ensure the Design Center

effective implementation of sustainable development strategies.Shareholders’ Board of General Information and Digital Center

Meeting Directors Manager

Smart Home Technical R&D Center

Strategic Decision-Making Customer Service Center

The Board of Directors is the highest decision-making body for the ESG management system responsi- Supervision Board of Supply Chain Center

Department Directors Off ice

ble for strategic decisions issue evaluation and supervising implementation. Financial Management Center

New Retai l Center

Coordinated Management

Media Department

The Company's ESG management organization is responsible for formulating strategic plans and goals

and overseeing project implementation. Brand Management Department

Civi l Construct ion Off ice

Efficient Execution

Research Inst i tute

Various departments and subsidiaries are responsible for incorporating ESG objectives into daily opera-

Organizat ion Department

tions ensuring effective implementation.Human Resources Center

Administrat ion Center

Guangzhou Ningj i Intel l igent System Co. Ltd.Guangzhou Suofeiya Investment Co. Ltd.

07 0801 General Meeting of Shareholders 03 Board of Supervisors

The General Meeting of Shareholders composed of all shareholders is the Company’s highest authority body responsible for making The Board of Supervisors is the Company’s supervisory body responsible for overseeing the company’s financial status

decisions on major matters. The Company convenes and holds the General Meeting of Shareholders in strict accordance with relevant related-party transactions major matters and the legal compliance in the duty fulfillment by the directors and senior management thus

laws and regulations such as the Securities Law of the PRC the Company Law of the PRC the Articles of Association and the Rules of safeguarding shareholders' legitimate rights. In 2024 the Board of Supervisors is composed of 3 members including 1 employee repre-

Procedure for the General Meeting of Shareholders. Voting is conducted both onsite and online to provide convenience for shareholders sentative supervisor and 2 shareholder representative supervisors with females accounting for one-third of the members. The employ-

especially small and medium-sized shareholders to participate. The Company treats all investors equally and renders earnest protec- ee representative supervisor is elected democratically by the company’s employees. The establishment of the Board of Supervisors

tion of small and medium-sized shareholders' rights. aims to strengthen internal supervision ensure operational transparency and promote sustainable development. By constructing a

multi-level governance structure the company ensures that all operations are compliant with the governing regulations effectively

preventing risks. The members of the Board of Supervisors are diligent and responsible and the procedures for meetings and voting

02 Board of Directors conform to the Rules of Procedure for the Board of Supervisors and other related regulations. The Board supervises the company’s

decision-making processes establishes and executes internal control systems and ensures legal operations fostering the compa-

On the premise of giving full play to the role of the General Meeting of Shareholders as the authority body for major business matters

ny’s standard operations. During the reporting period the actual attendance rate of the Board of Supervisors was 100%.Suofeiya continues to uphold the Board of Directors’ role in "setting strategies making decisions and preventing risks." The Company

continuously optimizes the management system on the Board's independence to ensure the Board's autonomy. During the reporting

period the independent directors strictly followed relevant laws and regulations the Company’s Articles of Association and the estab-

lished rules for independent directors. They provided professional and objective suggestions on the Company’s operations enhancing

the Board’s decision-making. 04 Management

In the process of establishing a sound Board of Directors the Company focuses on improving decision-making transparency and The management team is the company’s executive body appointed by the Board of Directors and accountable to the Board. The

clarifying responsibilities. The Company has promoted the diversification of the board structure. Over the years the Company has management executes the resolutions of the Board of Directors drives the company’s operational activities and helps achieve the

practiced board diversity in terms of "cultural literacy professional skills educational background and professional qualities" ensuring company’s business and strategic goals. In 2024 the company’s management team comprised 5 senior executives including one

diverse perspectives and views for senior-level decisions. female senior executive. The management team covers professional areas such as marketing finance and intelligent manufacturing

To further enhance governance structure transparency the Company has formulated the Rules of Procedure for the Board of Directors boasting rich industry backgrounds and professional management experience. They are also involved in formulating the company’s

and the Independent Director System. During the reporting period all directors performed their duties as per regulations attended board annual business plans and investment proposals helping the company seize market opportunities and implement them thus ensuring

meetings on time with a 100% attendance rate and actively participated in decisions on major matters and reviews of important informa- the company’s long-term and stable development.tion disclosures.

4 General Meetings 10 Board of Directors 8 Board of Supervisors 5 Audit Committee

The Board of Directors has set up an Audit Committee to strengthen the governance structure be responsible for supervising and of Shareholders meetings meetings meetings of the Board

inspecting specific company affairs within the scope of the Board’s authorization regularly checking and overseeing the overall opera-

tions and financial performance of the Company to ensure effective risk management and internal control systems. deliberating 25 proposals deliberating 49 proposals reviewing 30 proposals deliberating 11 proposals

09 10Protection of Shareholder Rights 02 Investor Relations Management

The company has always placed great importance on investor relations management adhering to the principles of transparency and

The company places great emphasis on protecting the legitimate rights of shareholders especially small and medium-sized sharehold- fairness. It has established a comprehensive investor communication platform implementing the Investor Relations Management

ers. In accordance with the Company Law of the PRC the Code of Governance for Listed Companies and the Guidelines for the Articles System to fully safeguard investors' right to information and ensure the accuracy and authenticity of the information. A dedicated team

of Association of Listed Companies the company adheres to an investor-centric approach. By continuously standardizing corporate has been established to actively engage in investor interaction activities enhancing shareholder trust and participation.governance improving the quality of information disclosure enhancing investor communication and establishing a strong sense of

shareholder return the company effectively fulfills its responsibilities and obligations as a listed company. It takes on social responsibili- The company provides a variety of convenient communication channels for investors actively engaging with them through investor

ties and strives to become a trustworthy examplary high-quality listed company. hotlines email investor relations interactive platforms the "Investor Section" on the official website media interviews performance

briefings and offline surveys. The company ensures positive interaction with investors. At the same time industry news and key capital

market concerns are promptly conveyed as feedback to the management team striving to create a harmonious and interactive investor

01 Information Disclosure relationship.

The company attaches great importance to information disclosure strictly complying with the Shenzhen Stock Exchange’s information

disclosure guidelines and other regulations to fulfill its disclosure responsibilities. It ensures that the information disclosed is truthful

accurate and complete increasing the transparency and openness of the company’s operations allowing investors to quickly under- Routine Communication Regular Communication

stand the company’s development and business status and safeguarding the right to information for investors. During the reporting

The company organized and participated in over The company actively held an annual performance

period the company issued 65 announcements (each with a corresponding announcement number) including 6 regular reports and 59 300 sessions of routine communication with briefing organized 4 special sessions with

ad-hoc announcements. The company’s information disclosure was rated Grade A by the Shenzhen Stock Exchange marking the institutional shareholders special investor investors regarding regular report performance

receptions online exchange meetings and offline and participated in the online collective reception

11th consecutive year of receiving such a result. Currently only 36 listed companies on the Shenzhen main board have been granted 11

strategy meetings. day for investors as organized by the authorities of

Grade A ratings in a row. The company will continue to improve the quality of information disclosure and standardize operations to 01 02 the region the company resides in.promote the high-quality development of the listed company.Obtained A grade in the evaluation Interactive Responses Two-Way Communication

6 Regular Reports 59 Ad-hoc Announcements of information disclosure work of Shenzhen

Stock Exchange for 11 consecutive years The company promptly updated the shareholder 03 04 The company’s Board Office regularly writes

register and tracked and analysed changes in reports on industry news and capital market

shareholder structure. It responded to 57 investor dynamics shares domestic and international

inquiries on the Shenzhen Stock Exchange's business changes and provides feedback to

interactive platform actively answered investor management on key issues that investors are

hotline calls and provided timely updates on the concerned about fully guaranteeing the

company’s operations through new media investors’ right of suggestion and right to know

platforms such as the WeChat public account and and ensuring solid integration of capital empower-

video accounts so that smooth communication with ment and real business.investors was maintained.

03 Shareholder Returns

Since its listing in 2011 the company has consistently focused on enhancing shareholder returns and protecting the rights of small and

medium-sized shareholders. The company has formulated a stable and continuous dividend policy including the Suofeiya Home

Collection Co. Ltd. Long-Term Shareholder Return Plan and the Shareholder Dividend Return Plan for the Next Three Years

(2022-2024). These plans ensure the continuity and stability of profit distribution policies enabling shareholders to share the company's

development achievements. From 2011 to 2023 considering the company’s operational performance financial status and shareholder

interests the company has distributed a total of 5.034 billion RMB in cash dividends (excluding share buybacks) to all shareholders

effectively sharing the results of its business growth.

11 129.52 The company’s internal control management system is comprehensive dividing its main business operations into 22 modules for

internal control and risk management. As of the reporting period a total of 2939 different management documents have been published

improving operational management levels and promoting the company’s sustainable business development. During the reporting

6.35 period the company with intensifying internal control and management added and revised 784 internal documents 625 of which were

5.475.44

5.02 related to environmental social and governance (ESG) factors covering areas such as production and manufacturing management

4.56

4.16 R&D management occupational health and safety environmental protection management quality and systems management human

3.23

resources management and service management.

2.2

1.54

0.96 0.77 1.1 The company has also established an audit risk data evaluation system and continuously improves its big data analysis tools assessing

and analyzing 18 aspects of the Guidelines for Internal Control Application of Enterprises. During the reporting period the Audit Depart-

2011201220132014201520162017201820192020202120222023

ment carried out several routine and special audit projects focusing on key business modules such as sales management procurement

Dividend amount （nit: Billions of RMB） management financial management asset management and contract management. The company strengthened audit-exposed issue

rectification efforts by applying a "dual engine" approach for rectification sample checks and rectification prompting actions optimizing

several related systems and processes. The company also organized internal self-inspection and rectification efforts focusing on the

Compliance Operations and Business Ethics implementation of internal rules and documents and improving compliance awareness and risk management capabilities among all

employees.Since its establishment Suofeiya has always regarded compliance operations as one of its core principles. By establishing sound

Followed-up-on Audit Rectification Measures： Timely Completion Rate of Rectification：

internal control systems the company ensures that business activities are conducted in an orderly manner within the legal framework. 28 96%

The company has set up a three-tier risk control system comprising the Audit Department the Supervision Department and the Legal

Affairs Department. In accordance with the applicable laws and regulations such as the Company Law of China the Securities Law of New and Revised Documents：784

China and the Code of Governance for Listed Companies the company has formulated a series of internal management systems

including the Articles of Association Rules of Procedure for the General Meeting of Shareholders Rules of Procedure for the Board of

Directors Rules of Procedure for the Board of Supervisors Information Disclosure Management System and the Internal Audit System.

02 Business Ethics

During the reporting period the "three lines of defense" continuously empowered various business units strengthening the identification

assessment and management of compliance risks and improving the implementation of oversight and supervision processes. This Suofeiya strictly conducts business activities in accordance with national laws regulations

ensured the effectiveness of internal control and enhanced the company’s ability to manage risks while improving operational and and business ethics standards adhering to laws such as the Criminal Law of the People's

management levels. Republic of China the Anti-Unfair Competition Law of the People's Republic of China and the

Anti-Money Laundering Law of the People's Republic of China. The company has developed

and implemented regulations such as the Employee Duty Conduct Management Measures

Compliance Risk Control Employee Handbook Employee Integrity Management Guidelines Eight Major Red Lines 01

Conflict of Interest Reporting and Filing Notice and supplier and employee blacklist systems.The company continuously builds a systematic and standardized compliance management system. It has developed and improved the The company has established a business ethics compliance management framework with the Supervision Department fully responsible

Contract Management Regulations and the Contract Management Measures implementing fine-grained management throughout the for overseeing managing and guiding the company's business ethics matters. The Supervision Department collaborates with the Audit

entire contract process. This includes key elements such as risk review decision-making responsibilities performance supervision and Department Legal Affairs Department and various business units to promote anti-corruption efforts and build a clean governance

financial income-expense control. These measures effectively prevent legal and economic risks ensuring transaction security. ecosystem regularly identifying and supervising internal anti-corruption risks.Additionally the company has enhanced its Physical Stamp Management Regulations with a tiered authorization mechanism for seal

usage strictly controlling the proper use of seals and eliminating unauthorized use. In 2024 the company continued to strengthen internal supervision work conducting comprehensive "prevention beforehand in-process

supervision and post-investigation" management of business activities through special inspections process supervision and routine

Based on these efforts the company focuses on the decision-making authority differences and risk control needs across various

monitoring. The company used information technology tools such as financial data sharing and internal work platforms for routine super-

business scenarios. The company continuously optimizes the OA approval system’s nodes and review standards by adjusting hierar-

vision. During the reporting period 6 routine inspections were conducted and risk identification and rectification were conducted in a

chical permissions grading processes and managing risks through classification. This approach ensures a balance between "strong

closed-loop manner. The company participated in 82 bidding supervision activities combining online tendering management systems

control over major matters" and "efficiency improvement for routine business" solidifying the governance structure for the company's

and offline process supervision effectively reducing or avoiding the risk of fraud in departments with procurement functions such as

high-quality development.business units and the supply chain.

13 14In 2024 the Supervision Department received 31 reports of violations and illegal activities through various channels. All 31 cases were In terms of trademark registration the company and its affiliates collectively hold 1934 domestically registered trademarks establishing

investigated and closed achieving a 100% case closure rate. Based on the investigation results 10 employees had their labor contracts a solid trademark protection fortification. Regarding rights protection the "Suofeiya" brand has been recognized as a well-known trade-

terminated and 13 were subject to administrative penalties with the company reserving the right to pursue legal liability. Additionally the mark 136 times highlighting the company’s outstanding achievements in intellectual property protection.company required employees to sign the Suofeiya Employee Self-Discipline Agreement as an attachment to the labor contract achiev-

ing a 100% employee signing rate.In 2024 the company won a retrial case in the Supreme People's Court regarding trademark infringement and unfair competition

disputes. This victory not only effectively safeguarded the legitimate rights of consumers and the company’s reputation but also further

To build a clean and ethical ecosystem the company formulated the Whistleblower Manage-

strengthened the company’s competitive advantage and industry standing. Additionally it would also facilitate healthy competition

ment Measures and established channels such as the official website platform whistleblower

within the industry providing strong legal support for consumer rights and fair market competition.email hotline and in-person reporting to receive information on violations of business ethics

or actions that harm the company's interests from internal and external parties as well as

partners (suppliers distributors etc.). Upon receiving whistleblowing information the Super- Domestically Registered Trademarks 1934 次 Record of Trademark Protection 134

vision Department conducts preliminary screening and investigation maintaining a zero-tol-

erance attitude toward serious violations. The company promises to strictly protect any

whistleblower's identity and safeguard his or her legal rights preventing retaliation. The

whistleblowing management process follows the "dedicated personnel for reception investi-

gation and rewards" mechanism ensuring confidentiality and procedural integrity.Privacy and Information Security

To strengthen the integrity awareness of all employees and enhance the effect of warning education the company publishes internal

disciplinary notices on serious violations through its electronic work platform and conducts a series of integrity training sessions. In 2024

the company issued 5 internal disciplinary notices and organized 8 offline integrity training sessions under the theme "Integrity and Purity The company’s Information and Digital Center (IDC) complies with laws and regulations

the Flourishing of Righteousness" with the total attendance of 14000 to the legal and disciplinary violation warnings. The integrity educa- regarding information security and privacy protection including the Personal Information

tion coverage rate reached 100%. Protection Law the Consumer Rights Protection Law the Self-Assessment Guidelines for

Illegal and Unregulated Collection and Use of Personal Information by Apps and the Regu-

lations on the Necessary Scope of Personal Information for Common Types of Mobile

Internet Applications. The company has tailored a secure and efficient network security

Routine Inspections: 6 Tendering Supervision Sessions: 82 solution which includes network access mechanisms antivirus software firewalls virtual

private networks (VPN) internet behavior management devices file scanning and monitor-

100% ing bastion hosts system backups and other components. These measures establish an Whistleblower Reports Received: 31 ，with a case closure rate

information system management and network security mechanism along with permission

control systems to strengthen data and information security management.Offline Integrity Training Sessions: 8 ，with a total attendance of 14000achieving 100% integrity education coverage The company has developed systems such as the Emergency Response Plan for Environ-

mental Emergencies Environmental Information Reporting Management Measures Fire

Safety Equipment Maintenance Management System and Information Systems Emergen-

cy Plan. An Information Security and Confidentiality Management Committee has been

Image: On-Site Data Center Deployment

established along with dedicated security management departments and personnel to

define the overall goals scope principles and security framework for security operations.These departments are responsible for the construction and operation of the information

security system.

03 Intellectual Property Protection

The company has formulated and improved systems and regulations such as the Business System Launch Security Management

The company has always viewed intellectual property protection as the lifeline of its business development. Through continuous Details Data Center Security Management System Terminal Computer Protection Regulations Terminal Equipment and Network

improvements of the intellectual property management system active intellectual property rights protection actions and in-depth efforts Management Regulations Information Security Management Procedures and Data Security Management Standards. These regula-

on brand value preservation the company fosters an atmosphere of business operation integrity and intellectual property rights protec- tions classify and manage business information customer data and other critical information specifying risk avoidance measures to

tion. effectively maintain the security of customer information and data assets.

15 1601 Secure Network 03 Technology Follow-up

The company has developed a comprehensive information security system based on actual needs. Over time it has been continuously

built optimized and refined to achieve the goal of ensuring the security of the company’s information systems. A B C

Key systems are deployed with a High The company adopts the internationally The company researches and applies

External Security Defense Security Management Standards

Availability (HA) architecture to ensure leading Veritas backup solution to data desensitization technologies and

Network access mechanisms antivirus A F and Responsibility System

software firewalls virtual private networks business continuity for critical opera- ensure reliable system data backups. tools to anonymize customer-related

Emergency plans security checks and records security

(VPN) bastion hosts vulnerability manage-

s training security risk identification internet behavior

tions. information effectively preventing

ment

ork ysw management customer data leaks.System Security Construction Information Data Privacy Management

Information system management and network B Security Zero E Data classification dynamic data desensitiza-

security mechanisms permission control code Incidents tion market terminal tool development to

encryption protection system backups system prevent data loss

stability

re P logrioritized Tech

no

Data Security Management C D Availability

Data backup and recovery regular Network redundancy network equipment

inspections and automated monitoring backbone line upgrades

sensitive information encryption storage

secure data flow control file security systems D E F

A proactive "Privacy Policy" mini-pro- Software monitoring for anomaly alerts 6)Zero-threat security measures with

gram is configured to collect the is utilized and service monitoring comprehensive control: Kaspersky

minimum necessary personal informa- software (e.g. Zabbix) is deployed to software is deployed and endpoint

02 Goal Wall tion from users ensuring that customer ensure the reliable operation of devices are managed by access

data is collected used and protected in business systems. control systems to prevent unautho-

Based on the overall information security management system plan high standards are set for information security management goals a limited and effective manner. rized devices from accessing the

considering factors scenarios and technologies that impact information security. The company drives the execution thereof to ensure system. Unauthorized software that

comprehensive security and 0 incidents. may harm information security is also

prevented. Additionally the company

deploys deep security internet behavior

management equipment (e.g. Sangfor)

to prohibit illegal network access.Information Host availability Database Network

Security rate availability rate availability rate The company has continuously invested in information security management over the years consistently strengthening and improving

0Incidents 99.99% 99.99% 99.99% its practices and has made significant progress. All work and indicators are now integrated into the management system ensuring the

secure and efficient operation of the company's business and management supporting its rapid development and safeguarding its

value.

1718

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Prev

ePROM0OTIN2G

GREEN

DEVELOPMENTLow-carbon development and circular economy have become a global consensus. Suofeiya has always adhered to the business Identification of Climate Change Risks and Opportunities

philosophy of green and environmental protection continuously promoting the construction of an environmentally friendly enterprise.The company integrates sustainable concepts of low-carbon energy saving and green circulation throughout its entire business opera-

tion process pursuing carbon reduction across all stages. Suofeiya actively promotes the green economy addresses climate change Transformation Risks

and fulfills its corporate environmental responsibilities. The company is committed to collaborating with ecological partners moving Risk Category Risk Description Response Measures

towards a greener mutually beneficial and sustainable future.As global and domestic governments acceler- Strengthen carbon emission compliance monitoring;

ate the implementation of climate policies such optimize carbon emission intensity in production and

as carbon trading and carbon taxes if the supply chain processes; provide regular training for

company fails to comply with carbon-related employees and suppliers to enhance their response to

3 regulations in a timely manner it may face climate policies; advance green smart manufacturing "National Green Plant" Certifications: regulatory fines increased compliance costs processes to ensure compliance and reduce risks.

2 Policy and and a decline in market trust.China Environmental Label Product Certifications:

Legal Risks

The introduction of carbon emission rights Continue implementing energy-saving and emission

control and adjustment mechanisms worldwide reduction strategies closely monitor carbon pricing

may lead to increased business operations and mechanisms in the countries where assets are located

financial costs. and globally and proactively and flexibly meet

challenges.Energy System Certifications: 2

"Zero Waste Factory" Certifications: 3

12 Failure to invest in low-carbon environmental Introduce and cultivate professional talent strengthen ISO 14001 Certifications: technology R&D. technology imports actively engage in external learn-

02 ing and enhance R&D capabilities.Technology Failure to timely identify and apply low-carbon Continuously research and apply low-carbon technol-technologies resulting in the company’s ogies and actively engage in industry collaborations.products lagging behind competitors in Addressing Climate Change low-carbon transformation.Failure to effectively meet consumer demand Actively develop green low-carbon products to meet

With global issues such as global warming frequent extreme weather events and rising sea levels becoming increasingly prominent for green low-carbon products. consumer demand.Suofeiya actively responds to the national carbon peak and carbon neutrality strategic goals. The company views climate change as a Market Risks

core issue for sustainable development. It follows guiding documents such as the Opinions of the Central Committee of the Communist

Promote resource conservation and recycling;

Party of China (CPC) and the State Council on the Complete and Accurate Implementation of the New Development Concept and the Rising costs of raw materials and energy.strengthen supply chain management.Proper Implementation of Carbon Peaking and Carbon Neutral Work and the Action Plan for Carbon Dioxide Peaking Before 2030. The

company actively undertakes work related to addressing climate change.Poor performance in addressing climate change Enhance the company’s sustainable development

In 2024 Suofeiya referred to the framework the Task Force on Climate-related Financial Disclosures (TCFD) suggested to identify Reputation and sustainability leading to damaged company capabilities proactively respond to climate change;

climate-related risks and opportunities related to its operations and carried out risk management activities. While achieving low-carbon Risks reputation and negative feedback from stake- increase transparency in related management and

operations the company also enhances its resilience in addressing climate change contributing to society's green and sustainable holders. actively address concerns raised by stakeholders.development.

21 22Physical Risks Greenhouse Gas Emissions from Suofeiya's 7 Production Bases in 2024 (Unit: tCO2e)

Risk Category Risk Description Response Measures Direct Greenhouse Indirect Greenhouse Total Greenhouse

Production Base Gas Emissions Gas Emissions Gas Emissions

Extreme weather may damage factory office Develop emergency response plans for natural disas- (Scope 1) (Scope 2) (Scope 1 + Scope 2)

building structures and equipment causing ters and continuously improve the emergency

Acute Risks

asset loss. response mechanism. South China Production Center 667.53 7073.99 7741. 52

(Extreme Weather

such as Storms Central China Production Center 470.31 4984.01 5454.32

Floods Typhoons) Equipment damage employee inability to work Provide training on responding to and protecting

and transportation interruptions due to extreme against extreme weather events continuously improve East China Production Center 366.17 3880.36 4246.53

weather may affect stable production. the natural disaster emergency response mechanism.Western Production Center 255.50 2707.53 2963.03

Rising temperatures increase the company's North China Production Center 206.22 2185.35 2391.57Upgrade energy-efficient cooling systems and use

cooling demand raising operational costs. environmentally friendly equipment to reduce energy Lankao Production Base 260.26 2758.02 3018.28

consumption.Chronic Risks Qiqihar Production Base 44.02 466.44 510.46

(Sustained High Employee health and work efficiency are Scientifically arrange production schedules organize Jinhua Production Base 29.03 307.62 336.65

T e m p e r a t u r e s impacted by prolonged exposure to heat. production efficiently and improve operational efficiency.Droughts)

Long-term droughts may lead to insufficient Continuously promote water-saving environmental

water supply affecting the stability of production upgrades avoid building factories in areas with high

and operations. water supply risks and strengthen water reserves.Climate Change Opportunities

Opportunity Opportunity Description Response Measures

Actively explore the development or application of new

Resource Higher energy-efficient equipment buildings and

technologies equipment and processes to fully

Efficiency technologies; supportive policy incentives.improve resource efficiency; proactively respond to

government supportive policies and green projects. EHS Policies and Management

Promote energy efficiency optimization in processes to

Energy

Substitution of renewable energy sources. reduce energy consumption and greenhouse gas

Efficiency

emissions.EHS Vision and Goals

Products Strengthen low-carbon technology R&D and increase

Development of green low-carbon products; climate

and investment in the development of green low-carbon

change response solutions within the industry.Services products.Access to emerging markets; increasing demand for Increase the share of green low-carbon products;

Market

green markets. identify and participate in emerging markets. Vision Goals

To create an EHS-excellence operating system Zero major safety incidents zero major fire

Energy substitution and diversification solutions; Promote the development and utilization of renewable

Adaptation and build a safe healthy green and sustainable accidents zero regulatory non-compliance.participation in renewable energy projects. energy.work environment and corporate culture.

23 24Management System Optimization The company has established an employee work safety responsibility system centered

around the "three managements and three musts" which clearly defines the specific work

In 2024 the company optimized a series of safety and occupational health management systems including the Group EHS Responsibili- safety responsibilities that regional managers must fulfill within their areas of responsibility.ty System Safety Incident Management Measures and EHS Meeting Management Measures. These optimizations improved the Following the " Dual Prevention Mechanism: Safety Risk Classification and Control and

company’s environmental and safety management system aligning the environmental protection safety and occupational health Hazard Identification and Rectification" risk identification is conducted at the worksite and

regulatory frameworks with the current EHS management practices. safety warning signs are posted in risk areas to prevent safety incidents. Operations such as

hot high-altitude and confined space work require approval and control with full-process

supervision during execution. Additionally through specialized inspections seasonal

checks holiday checks daily team-level checks weekly workshop-level checks and

EHS Organizational Management Responsibilities monthly factory-level checks we continuously improve work safety management and

promote the stable and healthy development of work safety.Promote national EHS policies regulations laws and standards and oversee their implementation.Develop the company's annual work safety plans and work plans and organize/guide their implementation.Establish and improve the company's EHS rules regulations and the EHS responsibility system and oversee and

inspect their enforcement. 1 800000+ 1130000+ 106+ 680+

Supervise the implementation of safety corrective actions and propose corrective measures for violations. Safety Rankings Unsafe Behaviors Unsafe Conditions Major Issues Identified General Issues Identified

Participate in the "three simultaneous" reviews for new modified or expanded construction projects review safety

and occupational health facilities environmental protection facilities and final exam-acceptance procedures.Be responsible for collecting analyzing and statistical reporting of safety and environmental incidents from various 25 372 1 30 1

departments. Factory Inspections OWD Incidents Safety Accountability EHS Standards/Boards EHS Training Session

Organize and carry out EHS-related safety inspections and correct and penalize violations. and Visits Matrix

Promote the use of modern safety management methods and conduct occupational safety and health management

system certification and environmental management system certification. 248 109 12 1 3

Good Practices Government Inspections Key EHS Projects Management Platforms Pilot Noise

Reduction Projects

Implementing Safety Production

The company has established and improved an emergency management system for

The company is committed to ensuring the safety of employees' lives and company property sudden safety accidents and environmental incidents to ensure the safety of the compa-

by implementing safety controls on production facilities and equipment. All of Suofeiya’s ny’s assets and protect employees' lives. It strictly adheres to a series of emergency

factories employ interlocking and interactive fire safety control systems with full-fledged management regulations clarifying emergency management principles emergency

monitoring networks ensuring a safer production process. We strengthen safety inspec- management institutions operational mechanisms emergency support and emergency

tions and supervision at all levels encouraging full participation in identifying and correcting plan management. Each year the company organizes at least seven comprehensive emer-

various safety violations. Focus is placed on team safety efforts hazard analysis at work gency response drills and specialized emergency drills to enhance employees' ability to

positions and minimizing and controlling accidents to ensure safety in production fire handle emergencies ensuring that unexpected events remain within a controllable range

prevention occupational health and environmental protection. and building a work safety network for all employees.We have obtained ISO 45001 OHSAS 18001 other occupational health and safety manage- By collecting data on equipment and facilities at the work site and identifying potential

ment system certifications and work safety standardization certifications. These certifica- hazards the results are recorded in the "Work Safety Risk Electronic Map." Safety manage-

tions effectively ensure the normal operation of the company’s safety management ment personnel and regional managers can access the system to understand and monitor

system. the hazard situations in the plant and various areas. The use of the work safety risk

electronic map enables the dynamic operation of the dual prevention mechanism. Each area

conducts daily hazard identification work with safety responsibilities delegated to depart-

ments forming a safety management mode where the safety management department

oversees and the responsible departments implement the safety measures. This approach

has transformed safety work from "passive compliance" to "self-reliant management."

25 26The company actively conducts environmental and safety training and education at all 02 Energy Management

levels regularly providing training for new employees including "three-level" training

"four-new" safety training hazardous waste management rainwater and wastewater

During the reporting period the company continued to strengthen energy-saving and consumption-reduction education and training for

pipeline management training specialized operations personnel training emergency

all employees actively conducting research and application of electricity-saving and other new technologies and processes and adjust-

response team training environmental protection management group EHS training camps

ing and optimizing production processes. Special focus was placed on technological improvements in high-energy-consuming produc-

occupational health and first aid training. To encourage the participation of all employees in

tion stages. The company continued to invest in energy-saving technological transformations actively developing solar photovoltaic

EHS efforts the company organizes a series of EHS cultural activities such as "Work Safety

power generation projects replacing fuel-powered forklifts and adopting centralized vacuum systems among other measures.Month" "World Environment Day" "Occupational Health Awareness Week" and "100 Days

Without Safety Accidents." These activities engage employees directly in EHS cultural

events enhancing their EHS awareness.

1 / Photovoltaic Power Generation

Since 2017 the company has actively promoted rooftop solar photovoltaic power generation

projects at its factory buildings. It has built grid-connected distributed photovoltaic power

Resource Consumption and Management generation systems at 7 major production bases covering an area of approximately

337000㎡ saving limited coal and petroleum resources.

During the reporting period the solar photovoltaic power generation project provided

The company places great importance on establishing and operating its energy management system striving to build an energy-efficient

approximately 21.28 million kWh of green electricity to the company and the State Grid

and environmentally friendly enterprise. The company continuously improves relevant systems including the Environmental Protection

resulting in a reduction of 18523 tons of CO2 emissions equivalent to saving 6810 tons of

Management System Energy-saving Management System and Energy Management System. It adopts a diversified approach to

standard coal. The photovoltaic power generation amount in the reporting period increased

energy-saving and emission-reduction measures and strengthens energy management water resources and wastewater manage-

by 48.9% compared to 2023. From 2017 to 2024 the total amount of green electricity

ment and waste management while promoting the green and healthy development of the supply chain.provided to the company and the State Grid was approximately 92.08 million kWh.Relying on advanced industrial technology and intelligent equipment the company develops new production processes promotes green

procurement and advocates less-packaging-material design thereby improving resource recycling efficiency. The company advances

clean production and energy-saving emission reductions continuously promotes the comprehensive use of clean energy such as

photovoltaic power generation and natural gas and aims to completely eliminate the use of fossil fuels contributing to global greenhouse 21.28 million kWh of green electricity Reduction of 18523 tons of CO2 emissions

gas emissions reduction.Saving 6810 tons of standard coal

01 Water Resource Management

The company has consistently adhered to the principles of less-consumption orientation resource orientation and harmlessness 2 / "Oil-to-Electric" Project

implementing consumption reduction and recycling measures. Since 2019 the company has promoted the use of neutral catalytic oxida- Since 2017 the company has been steadily advancing the "Oil-to-Electric" initiative gradually phasing out fuel-powered forklifts and

tion treatment and high-efficiency dewatering equipment for wastewater. Several of our production bases around China have imple- replacing them with electric forklifts thus reducing the use of fossil fuels and achieving the goal of reducing air pollutants.mented wastewater reuse projects in their wastewater treatment stations further treating wastewater and reusing it in production

processes such as spray towers and water curtain cabinets in order to reduce tap water consumption. The company's electric forklift substitution rate reached 99.59% during the reporting period.During the reporting period all of the company's factories used tap water and did not use underground wells or other water sources.Water supply was sufficient and there were no issues affecting production due to water quantity or quality problems.Electric Forklifts 0.41% Diesel Forklifts

The total amount of recycled water/reclaimed water used by the company was 5797m3 238 Units 99.59 1Units%

From 2022 to 2024 the company saved a total of 22945 tons of tap water.

27 2803 Waste Management 2 / Wastewater

Water resource management is also a crucial aspect of Suofeiya's commitment to fulfilling its social responsibility. The company

The company regularly commissions third-party organizations to conduct waste testing and sets annual "Three Wastes" KPI indicators unswervingly control and adjust processes from the source implement a series of water-saving measures and invest in the construc-

including production wastewater reuse rate proportion of production wastewater generated hazardous waste disposal rate and tion of a production wastewater reuse system to treat and reuse wastewater thereby reducing discharge. The company has upgraded

compliance rate of exhaust emissions. Monthly environmental KPI data such as air pollutant emissions production wastewater reuse its wastewater treatment system simultaneously monitoring wastewater discharge and reducing the generation of solid waste sludge.domestic sewage pollutant emissions hazardous waste generation and photovoltaic power generation are collected and analyzed. The

company is committed to reducing waste ensuring compliance with air pollutants and water pollutants discharge standards and The company uses the UASB (Upflow Anaerobic Sludge Blanket) treatment process where the "biological treatment" process combines

minimizing environmental impact. "anaerobic + aerobic" methods and the "deep treatment" uses the "sand filtration" process. Wastewater containing paint is directed into

a collection and adjustment reaction sedimentation tank. After pre-treatment production wastewater enters the production wastewater

adjustment tank which is regulated and then pumped to a flotation tank for further treatment. In the initial reaction area acid or alkali is

Exhaust Emissions Compliance Rate: 100% Wastewater Discharge Compliance Rate: 100% added to adjust the wastewater's pH to neutral. PAC (Poly Aluminium Chloride) and PAM (Polyacrylamide) are added for flocculation to

remove most of the suspended solids. After flotation the wastewater enters the primary settling tank for further sedimentation to remove

additional suspended solids. After the sedimentation process the wastewater enters the integrated adjustment tank.Solid Waste Disposal Compliance Rate: 100% Noise Emissions Compliance Rate: 100%

Domestic wastewater pre-treated in a septic tank is pumped together with the treated production wastewater into integrated wastewa-

ter treatment equipment in the comprehensive adjustment tank. The biochemical treatment system first passes through the anaerobic

reaction tank to reduce the chemical oxygen demand (COD) of the wastewater while improving its biodegradability. The wastewater then

1 / Exhaust Gas

enters the aerobic tank for further removal of various pollutants. The effluent from the aerobic tank enters the secondary settling tank

To better reduce factory exhaust emissions the company's factories responded to national control where the supernatant is discharged to the sand filtration tank for further treatment before meeting discharge standards. The remaining

measures for heavy-pollution weather and summer ozone management by upgrading their exhaust sludge is sent to the sludge tank. The daily treatment capacity is 6-8m 3 /d.treatment facilities/systems. The company manages organized exhaust emissions upgrades

exhaust treatment processes and improves exhaust treatment levels.Chemical Hydrolysis Acidification UASB Anaerobic

The company selects exhaust gas treatment facilities with strict standards for end-of-pipe Production Addit ion

Collection and Adjustment

Tank (Renovation of Reaction Tank (Renova-

Wastewater Reaction Sedimentation

treatment reducing the emissions of volatile organic compounds (VOCs) sulfur dioxide (SO2) Existing Inclined Tube Tank (New) tion of Existing Hydrolysis

Sedimentation Tank) Acidification Tank)

nitrogen oxides (NOx) particulate matter and other pollutants.Sludge Discharge

New exhaust treatment facilities adopt a dust removal + RTO (Regenerative Thermal Oxidizer)

process with an organic waste gas treatment efficiency of over 90%. Multi-Stage Contact Sludge Tank

Oxidation Tank (Renova-

The company has carried out low-nitrogen emission reduction for boilers. Nitrogen oxide emissions tion of Existing Tank)

Supernatant to

decreased from 71 mg/m in 2022 to 21 mg/m in 2023 a reduction of over 70%. Collection Well Sludge

Return Blower

An exhaust system is installed in the heating area of the edge banding machine to collect and treat Mud Cake for

Filter Press

waste gas with an activated carbon adsorption device reducing unorganized emissions of VOCs. External Disposal Secondary Settling

Tank (Existing)

A VOCs online monitoring system is installed to observe and monitor exhaust gas indicators along

with an early warning system and visual and audible alarms for exhaust treatment facilities to ensure

timely fault handling.The company implements a low-VOCs content product substitution project using advanced raw and Intermediate Tank 2 Neutral Catalytic Intermediate Tank 1

auxiliary materials through special processes to reduce VOCs emissions at the source. Powder is (Renovation of Existing) Oxidation Tank (New) (Renovation of Existing)Chemical

collected and processed by a secondary recovery device to reduce particulate emissions. After Addit ion

process upgrades VOCs and particulate emissions are expected to decrease by over 85%

year-on-year.Sand Filter Tank + Clean Water Tank

(Renovation of Existing Recycling IndustryCarbon Filter Tank (Existing)

Sludge Tank)

29 303 / Solid Waste 01 Intelligent Driving Green Navigation

Suofeiya conducts full-process supervision and control throughout waste generation managing the

process from the source to reduce the production or discharge of solid waste and ensuring final The company actively introduces an intelligent transportation management system to plan and optimize transportation routes precisely.compliant disposal. The company has established the Waste Standard Management System to The system analyzes real-time data such as order distribution and traffic conditions reasonably arranges vehicle routes improves

ensure that processes such as generation warehousing transfer and disposal are legal and vehicle load rates reduces empty mileage and effectively lowers fuel consumption and exhaust emissions. Currently the system has

rule-compliant. It also implements source control classification comprehensively utilizing waste with been implemented across all factories.potential value achieving waste recycling and harmless disposal.Through systematic logistics management more refined resource allocation optimization has become possible reducing the occupation

rate of social logistics resources and leading the industry in green logistics development. At the same time the transportation manage-

The company has purchased organic solvent recovery devices to filter and reuse wastewater

ment system can collect and store a large amount of transportation data such as transportation costs transportation time vehicle

containing cleaning agents generated in the workshop.utilization and customer satisfaction. By analyzing and mining these data the company can better understand the operational status of

The company has changed the packaging of hot melt adhesives by coating the inner walls of the pack- its transportation business identify potential issues and optimization opportunities and provide strong support for decision-making.aging iron drums with tin foil reducing hazardous waste generation. The iron drums can be recycled.Hazardous waste generation in the cabinet body workshop has been reduced by more than 90%

TMS System Route Planning

annually.Transportation Management System - Logistics Provider Operations

4 / Noise Control

The company follows the relevant requirements of the Emisson Standard for Industrial Enterprises noise

at Boundary thoroughly identifies noise sources and transmission paths and studies various noise !

reduction solutions. The company blocks sound transmission paths through soundproofing and vibra-

Route Planning Vehicle Reservation Vehicle Modification Schedule Confirmation

tion-damping measures to reduce the impact of production noise on human health and the surrounding

environment. The company smartly adjusts energy consumption by introducing permanent magnet Scheduling of transportation

variable frequency energy-saving vacuum pump systems. It maintains stable negative pressure routes (multiple regions)

addressing the adverse effects of negative pressure fluctuations and flow attenuation caused by old

Separate scheduling for

vacuum pumps on production processes. different routes

At the end of 2023 the Zhejiang factory became the first to use this technology on a large scale in the

fifth-generation 4.0E production line. Data testing showed that compared to the old rotary vane pump at

the same power the flow was increased by 1.8 times energy consumption decreased by 17.8% and

noise levels dropped from 90dB to below 80dB. The company is now promoting this technology across TMS System Advantages

major production bases contributing further to green management and environmental protection.The manual way before going live The way of the system after the go-live

Logistics information

Green Logistics Difficulty in tracking visualizationcustomer waybill status

Appointment online

Offline car rental

Unclear responsibility Business irregularities Business standardization Line back-propagation scheduling

In the context of the accelerated global carbon neutrality process Suofeiya has proactively built a green logistics system driven by a

Cumbersome transportation Offline communication Change Operation process Increase full load rate

"technology + ecology" dual approach. The company uses the customized home furnishing industry as a testing ground to create specificationNon-transparent

Excel delivery Logistics management Restriction of 48 hours signing

low-carbon solutions that cover the entire supply chain. Low full load rate information specification responsibility division

Telephone communication

Given the industry characteristics of customized home furnishings such as non-standard components and the exponential increase in ata information system one flow

warehouse SKU complexity it has become increasingly difficult to maintain the traditional logistics systems. The company upholds the

core concept of energy conservation and emission reduction utilizing consolidated logistics methods to build a green logistics system. High communication cost Transportation Visualization

By promoting a "dry-warehouse-distribution" delivery model the company aims to increase the utilization rate of unit transport resourc- Transportation is not transparent Efficiency Improvement

es thereby reducing energy consumption cutting pollution and contributing to the development of a green China. Business is not standardized Customer Satisfaction Improvement

31 3202 Unlocking New Shipping Models Building New Competitive Advantages

In the customized home furnishing industry the dry-warehouse-distributionshipping model offers multiple significant advantages. It effectively addresses “"11 Provinces 23 Warehouses" Dry-challenges in the logistics process (such as cost and operational quality) and Warehouse-Distribution Landscape

helps businesses enhance operational efficiency and market competitiveness.As the core component of the company's logistics the dry-warehouse-distribu-

tion model integrates trunk line transportation warehousing and distribution.This not only improves the operational quality of distributors but also achieves

the company's cost reduction and efficiency enhancement goals. RESPONSIBLE

In the trunk line transportation segment the company achieves economies of 辽宁

scale by integrating logistics resources and fully utilizing the carrying capacity

and volume of transport vehicles. Large trucks are used for long-distance

transportation significantly reducing per-unit transport costs. In the warehous- SUPPLY CHAIN

ing segment professional warehousing systems are employed for meticulous

goods management. From accurate records at the time of product entry and

reasonable planning of storage locations to rapid sorting and distribution during

the outbound process efficient operations are achieved. In the distribution

陕西 河南 江苏 MANAGEMENT

segment delivery routes and times are reasonably planned based on factors

such as customer location and order requirements. Throughout the process

distributors can monitor the location and status of goods in real time ensuring

timely delivery and improving customer satisfaction. By integrating the three 四川 重庆

major segments the company connects the entire supply chain from production 浙江

to consumer terminals reducing unnecessary logistics losses and promoting湖南

green and sustainable business development. 福建贵州

Shenyang Warehouse

Suofeiya has always actively implemented the concept of green development

closely collaborating with logistics partners and strictly following green environ-

mental protection principles continuously optimizing the logistics model. In the

future the company will continue to play a leading role working with logistics

partners to explore the infinite possibilities of green logistics continuously

enhancing the company's overall competitiveness and contributing to achieving

a beautiful vision for sustainable development.

33 340 3 RESPONSIBLE

SUPPLY CHAIN

MANAGEMENTSuofeiya has always integrated sustainable development and responsible SCS Global Services does hereby certify that an independent audit has been completed and conformity to the applicable SCS Global Services 特此证明，已完成独立审核，并确认符合相关标准:standard(s) has been confirmed for:Suofeiya Home Collection Co. Ltd. 索菲亚家居股份有限公司 03 Ouality Assurance Policy

No. 2 Xianning Road Guocun Yongning Street Zengcheng Distric tGuangzhou City 511300 Guangdong China 地址：广东省广州市增城区永宁街郭村仙宁路2号

governance throughout the entire supply chain process. The company has This single certificate covers the production of custom furniture tables beds office furniture institutional casework wardrobes cupboards and chests and trade 该单场所证书范围涵盖了转换体系下的定制家具 桌子 床 办公家具 公共设施家具

of tables chairs coffee tables beds and sofa using the transfer system. 衣柜 碗柜和床头柜的生产和销售以及餐桌椅子茶几床和沙发的贸易

The facility(s) are hereby Chain of Custody certified to sell products as:

FSC 100% FSC Mix 该获证组织已获得产销监管链认证，可将以上产品销售为：

The assessment has been conducted by SCS Global Services in accordance with the protocols of the Forest Stewardship

built a transparent safe and low-carbon supply chain system through strict Council A.C. (FSC). FSC 100% FSC MixFSC Standard: FSC-STD-40-004 SCS Global Services 依据 Forest Stewardship Council A.C. (FSC ) 的协议执行审核。

Certificate Code: SCS-COC-701226 依据FSC标准：FSC-STD-40-004 V3-1 ; FSC-STD-50-001 V2-1 Quality Assurance Policy: The company implements the ISO 9001 quality management system and requires suppliers to provide

Trademark License Code: FSC-C211008

证书编码: SCS-COC-701226

system design and innovative practices. In 2024 we further strengthened Valid from: 11/12/2024 Expiry date: 10/12/2029 商标许可码: FSC-C211008 This certificate itself does not constitute evidence that a particular product supplied by the certificate holder is FSC -certified (or FSC Controlled Wood where applicable). Products offered shipped or sold by the certificate holder can only be considered covered by the scope of this certificate when the required FSC claim is clearly stated on sales and delivery documents. The s cope of this certificate is considered accurate on the date of issuance. The current validity and scope including the full list o f products shall be verified on http://info.fsc.org. The certificate shall remain the property of SCS and this certificate and all copies or reproductions of this certificate shall be returned to SCS immediately upon request. Where a certificate covers more than one site the covered products and processes/ activities are performed by eth network of 起始日: 2024 年 12 月 11 日 到期日: 2029 年 12 月 10 日

Participating Sites and not necessarily by each of them.该证书不能视为证书持有者供应的特定产品已获得FSC（或适用的FSC受控木材）认证的证据。只有当销售和交付文件中明确规定FSC声明时， third-party quality certifications (such as SGS test reports). A "Raw Material - Production - Finished Product" three-level quality证书持有者提供、运输或销售的产品才能视为包含在认证范围内。认证范围在证书颁发时已得到确认。应在 http://info.fsc.org 网站上验证证书当前的有效性、范围及完整的产品清单。SCS保留对证书的所有权，证书及所有复印件或复制品应根据要求立即归还SCS。证书若涵盖多个场所，产品和加工/活动可在参与场所网络进行，而非必须在每个场所进行。

our supplier management system supplier ecosystem dynamic optimiza-

Maggie Schwartz Vice President Program Developement Maggie Schwartz Vice President Program Developement

SCS Global Services SCS Global Services inspection mechanism is also implemented.

2000 Powell Street Ste. 600 Emeryville CA 94608 USA 2000 Powell Street Ste. 600 Emeryville CA 94608 USA

Printed: 12/11/2024 Printed: 12/11/2024

此版本为英文原版的翻译，如有疑问，请以英文原版证书为准。

tion and sustainable supply chain innovation practices based on our already

robust supply chain governance framework.Supplier Access Mechanism and Supplier

Supplier Chain Management System and Ecosystem Dynamic Optimization

Policy Framework

01 Supplier Access Mechanism

Suofeiya has established a comprehensive supplier evaluation system covering the entire process of "supplier entry - cooperation -

Suofeiya has built a rigorous supplier access review system. In addition to assessing research and development management produc-

evaluation - exit" and has outlined the following core policies:

tion capacity & supply management and quality management the company also evaluates suppliers from multiple perspectives includ-

ing environmental compliance labor rights and business ethics.

01 Green Procurement

In research and development management examine the supplier's investment

Suppliers of key materials are required to meet environmental protection standards 100%. For the most important raw material—board in R&D team strength and innovation achievements to assess their techno-

materials—priority is given to partners with certifications such as FSC and national-level green factory qualifications. logical competitiveness; In production capacity and supply management

Diverse Capability evaluate production capacity supply stability and logistics and distribution

As of 2024 Suofeiya has over 300 global cooperative suppliers with strategic-level suppliers accounting for 20%. The company prioritiz-

Evaluation processes; In quality management review the supplier's quality system control

es cooperation with suppliers who have secured ISO 14001 Environmental Management System certification and FSC certification.processes and previous quality data.In environmental compliance check the supplier's adherence to environmental

02 Anti-Bribery Policy and Compliance Management

regulations and energy-saving and emission-reduction measures; In labor

rights ensure that they comply with labor laws and protect employee rights; In

To standardize corporate business activities jointly prevent commercial bribery and protect the legitimate rights of Suofeiya and its Social Responsibility business ethics assess whether there are any improper business practices

partners the company follows the principles of fairness transparency and notarization. This policy is implemented through restraint of Evaluation

and whether they operate with integrity.rules and contracts technical controls and an internal audit and supervision mechanism:

02 Digital Management

Contractual Constraints Technical Control Internal Audit and

Supervision Mechanism Driven by the wave of digitalization Suofeiya actively embraces change and upgrades its

Supplier and procurement contracts The company uses a digital A cross-departmental audit team is estab- supply chain management using advanced technological means. The SRM system (Suppli-

cover 100% of the agreements with procurement platform to enable the lished to inspect the compliance of internal er Relationship Management System) plays a key role in achieving the digital management

anti-bribery clauses embedded in entire process of bidding price procurement activities and processes of the entire process including order flow delivery information and cash flow as well as

procurement contracts. Suppliers approval and contract signing regularly. Non-compliant activities must be

efficient business collaboration injecting strong momentum into the company's supply chain

pledge to prohibit any form of bribery online reducing human intervention. rectified within a specified period. An

operations.kickbacks and illicit benefits transfer. independent whistleblowing channel is set

up and anti-corruption training is conduct-

ed regularly.

37 3803 Dynamic Optimization of Supplier Ecosystem Supplier Admission and Evaluation System

The company conducts annual supplier grading assessments and suppliers with poor performance are placed on the corrective action

list. If they fail to meet standards after correction cooperation would be terminated. Through a process of natural selection the company

dynamically optimizes and improves the overall level of its suppliers.Suppliers are assessed annually in various areas including product quality

Collection of potential Supplier investigation/on- Transition to "alternative

on-time delivery rate and environmental performance. The assessment supplier information site (admission) evaluatio suppliers"

on-site audits of supplier products quality potential suppliers meeting the

results are categorized into four levels: excellent good qualified and unquali- high-quality supplier resources are

control production capacity standards are transitioned to

Regular Assessment included into the Company's ERP fied. Excellent suppliers are rewarded encouraging them to proactively management systems etc leading "alternative suppliers" system's "Potential Supplier

Mechanism to the formation of a Supplier in the ERP systemDatabase"

improve their overall performance. On-site Review Report

Unqualified suppliers are placed on the corrective action list and the company

assists in developing a corrective plan and monitors progress. If they still fail to

Rectification and meet standards after rectification cooperation would be terminated.Elimination Mechanism

Order placement Transition to "qualified Product identification

suppliers" report

placing orders according to plans qualified product identification leads to

comprehensive testing and evaluation of

with suppliers responsible for stock transition to "qualified suppliers" where

supplier samples based on processes

preparation delivery payment and contracts are signed confirming product

and product standards including

online security inventory standards pricing cooperation

physical and chemical properties

monitoring models payment cycles etc.functionality and product

ensuring mutual

surface

interests

Supplier performance

assessment (quality control) Transparent procurement

incorporating the Integrity Agreement into

assessment of suppliers based on factors such

contracts with suppliers and upholding a sound

as on-time delivery product quality service

business environment and mutual legal rights

and pricing fostering deeper cooperation

and interests with collaboration and

with high-quality suppliers while

supervision from the Audit Department

addressing deficiencies through

Supervision Department

cooperation improvement

and the supply chain

or elimination

39 40Sustainable Supply Chain

Innovation Practices

Green Packaging System Upgrade Supply Chain Social Responsibility Linkage

Packaging for Aluminum

In 2024 the company fully implemented the aluminum frame door packaging material innovation Frame Doors We have established long-term partnerships with suppliers that excel in sustainable development and social responsibility practices.plan. By establishing a heat shrink film packaging process standard system the company These include hardware suppliers such as Austria BLUM and Austria HETTICH decorative paper suppliers like Germany Schattdecor

achieved a 100% transition from paper to plastic for aluminum frame door product packaging and panel suppliers such as Fenglin Group and Wanhua Hexiang Group.materials. According to a Life Cycle Assessment (LCA) this innovative measure is expected to

reduce corrugated cardboard consumption by 170000 square meters annually which keeps

In 2024 the company’s panel procurement contributed to green environ-

approximately 3400 mature trees from being felled. The packaging weight is slashed by more

mental protection and carbon sequestration efforts.than 90% facilitating carbon emission reduction during transportation. Additionally the recycling

Before Change After Change

and reuse rate of the heat shrink film packaging materials reaches up to 90%.Indicators Particleboard MDF (Medium Density Fiberboard)

Edge Banding Material Lightweight Innovation Design Total Carbon Sequestration 785500 tons CO2e 88100 tons CO2e

In 2024 while maintaining product quality and enhancing aesthetic appeal the company achieved a reduction of 136 tons in edge band- Total Production Carbon Emissions 102100 tons CO2e 15800 tons CO2e

ing material consumption throughout the year through optimization of edge banding technology and innovative lightweight design of edge Net Carbon Benefit 683400 tons CO2e 72300 tons CO2e

banding materials.Emission Reduction and Low Carbon Technology Innovation Suofeiya uses its industry-leading Industry 4.0 full-link digital governance as the cornerstone driving sustainable industry development

through innovation and collaboration. Through systemic and digital governance ecological collaboration and value co-creation strate-

Suofeiya in strategic collaboration with core equipment and material suppliers has innovatively developed and promoted the "Powder gies Suofeiya leads and promotes the construction of a compliant transparent and sustainable supply chain ecosystem and gover-

Electrostatic Spray Particleboard Door Panel" which replaces 90% of traditional painted door panels. This technology achieves zero nance system. The company is gradually achieving penetrative management of supplier carbon data driving ecological chain partners

VOC emissions throughout the production process completely eliminating volatile organic compound (VOC) pollution. Additionally by to co-create a "zero-carbon blueprint" for the home furnishing industry. By reshaping the industry’s circular economy paradigm

optimizing the process the carbon footprint of each product is reduced by over 50% compared to traditional methods making it a bench- through a business-ecology value symbiosis Suofeiya is moving toward a net-zero value chain goal offering solutions for the global

mark case for the industry's low-carbon transformation. sustainable home transformation.

41 42QUALIT0Y 4

INNOVATIONStandard Iteration Leading Eighteen Years of Environmental Innovation and Upgrades (2007-2024)

Industry Upgrades 2024

As a leading company in China's customized home furnishing industry Suofeiya continues to Launched the industry-first "Infant and Toddler Environmental 2023

iterate and upgrade various standards in response to increasing market competition consis- Protection Standard" and "Super One-Level Quality Standard"

raising the market competitiveness with even higher standards.tently regulating itself with stricter requirements. In 2024 the company released and imple- The "Kang-Chun-Ban Whole Home" underwent an environmen-

mented two major standards: the Childcare and Infant Living Environment Safety Control tal upgrade and Suofeiya in collaboration with upstream and

Specifications (referred to as the "Infant and Toddler Standard") and Custom Wooden downstream suppliers established the "Kang-Chun-Ban Whole

Cabinet Core Indicator Quality Grading (referred to as the "Super One-Level Quality Stan- Home" Environmental Alliance. This alliance set entrance thresh- 2022

olds for whole-house products based on environmental require-

dard"). These upgrades focus on solving consumer pain points rebuilding market trust and

ments much higher than national standards creating an entire Secured Child Safe Product Certification becoming the first

customer loyalty and further enhancing market competitiveness.environmental ecosystem for whole-house products company in the industry to gain seven major domestic and

international authoritative recognitions.

2021

"Infant and Toddler Standard" Supporting Two new national standards for engineered wood products

01 drafted by Suofeiya were officially implemented on October 1st. 2020

Industry Environmental Upgrades Suofeiya's Kang-Chun-Ban was recognized as a green product

by the National Infant and Toddler Network Suofeiya's formaldehyde-free Kang-Chun-Ban earned three

additional international environmental certifications becoming

In July 2024 Suofeiya's "Beautiful Lifestyle 2.0" was launched along with the release of the

the first company in the industry to receive five major interna-

"Childcare and Infant Living Environment Safety Control Specifications." The formaldehyde 2019

tional environmental recognitions

emission limit defined in the Infant and Toddler Standard which is 24H+ ≤ 0.020mg/m is

Suofeiya's formaldehyde-free Kang-Chun-Ban was the first in

much better than the highest level of the new national standard (ENF level). The formalde-

the industry to receive the NAF (No Added Formaldehyde)

hyde release limit is 20% lower than the ENF level making it extremely strict. Monthly

Exemption Certification from the U.S. Environmental Protection 2016

environmental testing data shows that Suofeiya's Kang-Chun-Ban products not only Agency (EPA) and passed multiple tests by SGS Switzerland

release formaldehyde levels far below the new national standard ENF level but also The first batch of entities awarded with the Officially launched the formaldehyde-free Kang-Chun-Ban

"Infant and Toddler Health Care Project

comfortably within the standard set in the Infant and Toddler Standard. This illustrates

Recommended Product" certificate by the 2015

Suofeiya's commitment to its own strict environmental protection standards. National Infant and Toddler Network.Successfully developed the formaldehyde-free Kang-Chun-Ban 2007

with stable quality and formulated the product standards

Suofeiya was one of the first in the industry to secure the

04 "Super One-Level Quality Standard" Refreshes Ten-Ring Certification02 the Industry's "Quality Concept"In September 2024 Suofeiya launched the "Super One-Level Quality Standard" in response to consumers' shifting demands from basic Technological Innovation Leading functionality to a dual focus on environmental protection and high quality. The company also addressed the issues of market disparity and information asymmetry. This new standard introduces 12 stringent core quality indicators across three dimensions—environmental Industry Transformationprotection durability and hardware—precisely addressing the pain points of "too many standards messy information and difficulty in decision-making." It provides consumers with a more comprehensive systematic and scientific guide to home furnishing purchases Technological innovation is the fundamental driving force behind high-quality development. Since its founding Suofeiya has always ensuring they enjoy superior quality. This important initiative not only restructured the comprehensive quality evaluation system but also placed high emphasis on innovative development constantly breaking through industry technological bottlenecks growing into a

rectified the market's long-standing focus on environmental protection of materials while neglecting overall quality shattering the company with a worth of more than 10 billions and driving the development of China's customized home furnishing industry with the

practice of single-dimensional competition. power of innovation.

45 4601 Forecasting and Collaboration Innovation1.Innovation & Transformation Driven by the IPD System

The IPD system encourages early multi-functional involvement in decision-making and cross-department teams operate in a strong

matrix model. By establishing quality planning and review mechanisms potential issues risks resource inputs and corresponding

solutions are identified early ensuring the scientific nature of decisions. In supply chain management the company reduced information

asymmetry starting from demand improving supply chain efficiency. It emphasized collaboration across supply chain stages promoting

coordination through information sharing and synchronized decision-making.Lifecycle

Publish

Focus on the performance after

product launch maintain 02 Adhering to Process and Technology R&D to Build Competitive Strength

Product launch continuous operation to achieve

preparation commercial success. Powder Coating Process R&D to Meet Consumer Demand

Development According to market research consumers have a strong demand for high-end powder-coat-

ed products but the price barrier has limited their universal presence. The company starting

from the market pain points boldly proposed an innovative solution using particleboard as the

Concept and Plan base material making the product more price-competitive.Concept and planning phase → Product development phase →

Market preparation phase → Product launch phase During the R&D process several innovations and breakthroughs were achieved—strictly

controlling the ratio of glue and fillers accurately adjusting production parameters such as

Charter Development temperature pressure and moisture content to ensure the base material's surface achieves

Brand Product Planning

Jointly conduct business argumentation and the optimal smoothness; to enhance quality and aesthetics the engineering team experi-

Apply the strategic "Five Looks and development evaluation for the top application. mented with various edge banding materials including paper PVC PP and natural wood

Three Determinations" methodology

veneer evaluating their performance cost and appearance ultimately selecting paper edge

deeply explore the customer's "core

value" and "core demands" with user banding; for surface coating precise control of coating equipment parameters and paint

demand value at the center shaping formulations was implemented to ensure uniform and stable application resulting in a delicate

a whole-house lifestyle. and smooth surface; the use of 69-inch powder-coated particleboard was increased improv-

ing board utilization by 6% to 9% optimizing resource allocation; in terms of environmental

protection zero-VOC emission powder coatings were adopted aligning with the company's Particleboard Handle-Free Powder

The IPD system reform has significantly improved the company's product research and development organizational management and commitment to sustainable development. Coating Process Details

supply chain collaboration.Standardized Modular R&D to Improve Product Delivery Efficiency

Standardization is the key to Suofeiya's efficient operations enhancing product stability and

Process and Efficiency Innovation

competitiveness. We always maintain a user-centered approach embedding standardization

Through the IPD system reform Suofeiya optimized its product development process strengthened process structuring and enabled throughout the entire product development process.parallel development across functional areas. Under the IPD model the product development process change rate dropped to 0.4% and

the overall cycle from product planning to development launch was shortened by 34%- 52%. The product development cycle was The company has launched a modular product promotion project for categories such as

reduced by 39%- 79% achieving the goal of focused and efficient output. cabinets whole-house combination wall panels and Milanna wardrobes under the full brand

matrix. The goal is to further improve product quality and delivery efficiency through standard-

Wardrobe Structure

ized design and regulated production processes. Standardization Solutions

Cost and Quality Innovation

The IPD system also played a crucial role in cost control. The average development cost of surface materials was reduced by 10% The project includes solutions such as the "standard unit cabinet + modular unit cabinet +

effectively achieving the cost reduction target. At the same time the product quality significantly improved with complaints about new non-standard unit cabinet or panel adjustment" for cabinets the "one-click drag-out large

+＝

products decreasing by 16% year-over-year and the error rate for new product samples decreasing by 24% year-over-year. The combination" and "self-assembled small combination" solutions for whole-house combination

product change rate was reduced from 13.4% to 0.4% significantly enhancing product quality stability. This improved consumer satis- wall panels and the "unit cabinet + functional component package" standard structural unit for Standard Universal Configured as Multiple

Structure Needed Solutions

faction and reduced after-sales costs enhancing the brand image. Milanna wardrobes as a pilot. Template Units Components Finished Products

47 48The standardized structure ensures unified and stable design reduces errors and guarantees delivery quality. This initiative has brought 01 Leading the "14th Five-Year" National Key R&D

higher efficiency and quality assurance to product design and production. Project Supporting Talent Cultivation

Efficient Production Implementation Path

In March 2024 the "14th Five-Year" National Key R&D Plan project "Key Technolo-

gies for Smart Manufacturing of Forest Products Based on Digital Collaboration"

held its launch meeting in Zengcheng Guangzhou. This project is led by Suofeiya

and jointly undertaken by 10 leading research institutions universities and indus-

try-leading enterprises including the Research Institute of Wood Industry of the

Chinese Academy of Forestry Nanjing Forestry University Central South Forestry

University Southwest Forestry University among others. As the leading entity of

Product Material Configuration Structural Technology Production Technology Intelligent the project Suofeiya was approved for this national key R&D project making it the

Standardization Standardization Standardization Standardization Automation only one in the industry led by an enterprise.Edge Banding Visual Inspection System Achieving "Smart Eyes" in Intelligent Manufacturing

02 Awarded First Prize in Guangdong Province

In the manufacturing process of panel furniture the edge banding process directly affects the product's appearance durability and Science and Technology Progress Stimulating

overall quality. Traditional edge banding inspection primarily relies on manual labor which is inefficient and susceptible to human error the Company's Innovation Vitality

leading to misjudgement and missed inspections.The visual inspection system on the other hand replaces the human eye with industrial camer- On October 17 2024 the CPC Guangdong Provincial Committee and Guangdong Provincial

as performing complex tasks such as identification measurement and positioning through an Government held the Guangdong Province Science and Technology Award Ceremony and

intelligent system. The company combines the demands of the edge banding process with visual Provincial Science and Technology Innovation Conference in Guangzhou announcing the

inspection technology to accurately identify various defects in the edge banding process such winners of the 2023 Guangdong Provincial Science and Technology Awards. The project "Key

as edge chipping corner loss adhesive failure glue lines short bands scraping marks and Technologies and Industrialization of Mass Customized Personalized Panel Furniture Smart

more. Using high-precision image acquisition and processing technology the system achieves Manufacturing" led by Suofeiya took the lead in the custom home furnishing industry and won

comprehensive monitoring of edge banding quality ensuring that every product meets quality First Prize of the 2023 Guangdong Provincial Science and Technology Progress Award. This

standards. is the highest honor for scientific achievements in the province and positions the company at

the forefront of high-quality development in the custom home furnishing industry.Innovation knows no boundaries. In this era of rapid intelligent transformation Suo-

feiya continues to accelerate the cultivation of new economic growth drivers through

sustained technological innovation providing customers with higher-quality prod-

ucts and solutions and maintaining its vitality.Transformation of Innovative

R&D Achievements Continuously

Stimulating Innovation Vitality Invention Patents 109 Invention Patents 23

Utility Model Patents 281 Industry Standard 12

Design Patents 251 Patents Standard Group Standard 59

Achievement Soft copies of

Appraisal of Achieve- Awards theses and Published Papers: 127

dissertations papers

ments 15

20 Registered Software Technology Awards:

Copyrights: 207

4950服务升级

0 5 SERVICE

UPGRADESSales Expand Market Shares

Service Secures the Foundation

Published Operational

Guidance Textbooks

2024

Released and trained on service

2022 New Service Approach guidelines advanced full-catego-

Unified service personnel VI Effortlessly Managing ry CSI/DSI assessment one-stop Upgraded CSI/DSI

Assessment image launched "One Wechat

the Entire Home customer service and promoted

Group for Each Customer" and repeat purchase recommendation

service mini-program and projects

2021 promoted "As Far As Possible" 2023

Released the "Suofeiya Super Promoted the Cabinet Butler service Promoted dealer responsi-

6+1 Service" Standard

assessment bility review and assess-

Implemented ment and launched Service

Established Service CSI/DSI Assessment 2020 Provider System 1.0

Center

Created a service TikTok account

and introduced the French-style

2018 2019 Cabinet Butler service

Proposed making service suofei- Launched mini-program and estab-

For 10 Consecutive Years National Installation Competition Held Continuously

ya's core competitive advantage lished regional advisory teams

Advancing Design Installation Operations and Training...Note: CSI – Consumer Service Index System; DSI – Dealer Service Index System

Service Guidelines Leading the Continuous General Provisions After-Sales Section

Development of Industry Service Standards The general provisions clarify the purpose and The after-sales section provides full protection objectives of the service guidelines with a focus for customer rights requiring timely responses

on the service relay race based on customer from after-sales staff high-quality home

theory and the service philosophy of regional furnishing management services and enhanced

To implement the core strategy of "Customer-Centered" in March 2024 the company released the Suofeiya Service Guidelines cover- autonomy. They provide clear guidance for the customer satisfaction.other six chapters.ing the entire business process from sales design production distribution and installation to after-sales service. The guidelines include Installation Section

84 standardized service regulations aiming to shift service issues from "passive resolution" to "active prevention." The purpose of these Sales Section

The installation section focuses on customer

guidelines is to: experience standardizing the behavior of

The sales section requires that when

installation and delivery personnel to ensure

receiving customers not only should sales be

efficient and high-quality installation services.conducted in compliance with the law and with

clear pricing but also that a strong service

awareness should be demonstrated ensuring Logistics Section

customers feel our professionalism and

enthusiasm. The logistics section clarifies the responsibili-

ties and behavior standards for the delivery

Enhance the end customer Optimize dealer operational Promote the efficient utilization of process ensuring on-time delivery

experience and strengthen efficiency and reduce company resources to support Design Section standardized operations and enhancing

brand trust; service costs; sustainable business development. customer satisfaction.The design section provides comprehensive and

detailed requirements enhancing design skills and Production Section

abilities from four dimensions: product appear-

In 2024 102 service-related training sessions were held around China covering the three major areas ance details current use and future use. The The production section emphasizes strict

of design (55 sessions) installation (40 sessions) and operations (7 sessions). A total of 6428 partici- goal is to ensure that a satisfactory design solution

control over product quality details and order

is provided to customers. completeness ratio ensuring that both dealers

pants attended with 100% coverage of key positions. and customers receive a high-quality service

experience.

53 54Smart Service Upgrades for Full-Chain Efficiency Establishment of Service Indicator

Meteorological Station

Intelligent Scheduling System Optimization

Based on the order category progress and installation team skill levels the system manages scheduling for 10 major product categories Graded Dynamic Assessment

including wardrobes cabinets and more. The "one door-visit + flexible disassembly" model shortens the construction cycle improves A service data model for dealers is established (based on scale and region) enabling real-time

the completion ratio of the first visit and effectively reduces the customer's time cost. visualization of CSI rankings within the same level. Grouping and ranking dealers of similar

scales drive healthy competition within groups and encourage communication and mutual

Customer Feedback Closed-Loop Management learning between dealers.An installation service real-time feedback mechanism has been established with feedback

Data Diagnostics of Service Status

data directly linked to the "Customer Voice" platform. A positive cycle is formed by visualizing

service cases through property location mapping: customer supervision → team improve- The dealer data hub is opened integrating trend tracking of five core indicators including

ment → service optimization. customer satisfaction and complaint rate. The cost attribution model identifies the service

weakness points for rectification and improvement. Based on the data the headquarters

service center develops empowerment measures to reduce dealers' annual service costs.Full-Process Relay Service Collaboration Creating a high-quality service

assessment system

Service Process Standard Management

Deepen the "Suofeiya Super 6+1 Service" standard converting six major stages—sales design production etc.—into relay nodes that To implement the company's "multi-brand full-category omnichannel" development strategy and respond to the demands of "customer

can be quantified and assessed. Establish a supervision mechanism for handover processes (e.g. the installation team checks the foremost" and "leaving the difficulties to ourselves and the convenience to our dealers" Suofeiya has developed a one-stop service

design team's product design standards and the supervision team checks the installation team's standards). system to address the pain points of dealers dealing with multiple touchpoints across product categories. This system effectively

enhances both customer and dealer experiences and satisfaction.Customer Lifecycle Management

Implement a pre-service demand mechanism embedding service pain point solutions on transportation installation after-sales and

The one-stop service resolves the pain points of dealers dealing

other aspects into the R&D phase. Through the IPD integrated development strategy enhance product-service compatibility and reduce

with multiple touchpoints across all product categories reducing

after-sales repair rates. For Dealers

dealer operational costs improving service efficiency and effec-

Service satisfaction score tively enhancing customer satisfaction and happiness thereby

of 4.68 (target value: 4.5) reducing the effort required by dealers in coordinating with multiple

departments.After-Sales Sales

Design Customer Theory Increases the stickiness with dealers with a more comprehensive Installation For Factories

data collection dimension. The support provided to dealers is more

Customized home furnishing services Satisfaction rate of 97.99%

are a relay race. targeted and comprehensive. After implementing the project

(target value: 96%) dealer satisfaction with the one-stop customer service continues

Delivery to rise. Production

55 56Service Skill Training Implementation

To enhance the skill level of installation and delivery professionals nationwide and lead the industry in valuing the cultivation of skilled At the same time the company regularly holds specialized training sessions titled "Sales Expand Market Shares Service Secures the

talent and improving service standards Suofeiya has held the National Installation and Delivery Professional Skills Competition for ten Foundation" with seven training sessions having been launched across the company's seven major production bases covering 1082

consecutive years. The company organizes regional competitions at different levels encouraging nationwide installation and delivery participants. The training involves key positions such as owners project managers installation directors design directors and marketing

professionals to improve their skills through competition thus enhancing their professional expertise. directors. Through systematic learning the training enhances the service capabilities of various positions.

57 580 6 JOINT

GROWTHIn the face of economic fluctuations and market uncertainties the value of talent has become increasingly prominent. Suofeiya has 02 Harmonious and Equal Employment Relationships

implemented a series of measures to promote talent development and seek breakthroughs. In an environment where talent is prioritized

the company ensures alignment across all levels with shared values and a collective mindset working together towards common goals.Suofeiya has established a standardized yet flexible organizational structure and a diverse talent pool. The workforce includes compre-

hensive management talents whose careers developed from the production line as well as professionals with advanced management

concepts in specialized fields. The company focuses on meeting the needs of its continuous and rapid development aiming to build a

healthy harmonious and equal employee employment system.Suofeiya resolutely opposes discrimination based on gender region religion or other factors and strictly prohibits the employment of

child labor and forced labor. The company promotes equal pay for equal work for both men and women along with a human-centered

labor policy creating a work environment of mutual respect inclusion and close camaraderie. This continuous effort enhances employ-

ees' sense of happiness and satisfaction.AAA-level Harmonious Labor Relations Enterprise AAAA-level Harmonious Labor Relations Enterprise

Total number of employees during the reporting period: 12901

Employee Benefits Protection

Professional Composition Education Level

Category Category

Master's

01 Compliance with Labor Relation Regulations Degree

and Above

Production

Suofeiya strictly adheres to relevant laws and regulations in the People's Republic of China including the Labor Law of the PRC the

Management Staff 0.95%

Labor Contract Law of the PRC the Regulations on the Implementation of the Labor Contract Law of the PRC and the Social Security Staff 60.60% High School Bachelor's

Law of the PRC to lawfully protect employees' rights and interests. and Below Degree

Administrative 3.43%4.47% 57.53

18.70%

%

Staff

The company standardizes labor contract management by signing labor contracts with employees in accordance with the law achieving 1.30% 22.83 Associate %

a 100% labor contract signing rate. The signing and renewal processes are standardized. The company legally prohibits the employment Degree

Finance Staff 13.04% 17.15% Sales Staff

of child labor and continuously improves the company's labor management system. It also complies with labor protection department

requirements to standardize labor employment practices and safeguard the legitimate rights of both employees and the company.Technical Staff

The company strictly implements national regulations on social insurance making full monthly payments for social insurance and hous-

ing provident fund ensuring that employees can timely enjoy relevant benefits.Accidental Injury Insurance

Age Distribution

Maternity Gender DistributionHousing Provident

Insurance Fund

51 and Above

Maternity Leave Work Injury Employee 3.05% Female

Factory Leave Insurance CafeteriaBreastfeeding Leave 28.21%

Benefits 16.40%

Unemployment Employee 31-40 50.49% Male

Insurance Dormitories

Marriage Leave Paternity Leave

Holidays 30 and Below

30.06%71.79%

Medical Annual

Insurance Travel

Annual Leave Parental leave

Pension Employee Health

Check-Ups

61 6203 Incentive System A Deeper Focus on Whole-House Talent Development

In the new generation era focusing on intergenerational leadership and stimulating employees' energy and vitality . At the same time the

Suofeiya has established the Remuneration Management Measures for employees setting up competitive remuneration standards and company taps employees' potential and strengths empowering their career planning. The company enhances office efficiency by integr

ating AI tools thereby improving the breadth and depth of talent development and training. Addition-ally the company leverages "Onlin

a reasonable incentive mechanism. Based on safeguarding employee rights the company fully motivates employees stimulates their e Learning Platform - Talent Development Academy" and "Internal and External Online Learning Resources" to improve training effi

potential and maintains the internal driving force for the organization's continuous development. The company clearly defines its value ciency.distribution orientation effectively aligning personal development with corporate growth. It has created a competitive remuneration

system that attracts motivates and retains talents.Each department determines salary based on job responsibilities following the principles of value market standards performance and

diversity. The salary is comprehensively considered based on factors such as delivery responsibility and efficiency. Quantifiable and Supporting Strategic Development

Strengthening Management Foundations Building a Learning Organization

assessable indicators are established based on work quantity quality efficiency and economic value reflecting the principle of fair

distribution based on labor and rewarding higher contributions. This motivates employees to improve work efficiency and creates a

win-win situation for both the company and its employees. Management Internal Division/Intermediate Talent Development Map

Development Certification

Huangpu/

Employee Growth Executives Professional

Trainers

Outstanding (Advanced)

Talent/Senior

Managers

Suofeiya focuses on "Strategy-Driven Technology-Enabled and Talent-Driven" as its core approach. In 2024 based on the full lifecy- Excellent

Talent/Newly

cle talent development system the company further promotes the "AI + Talent" model and deepens the "Business + Talent" development Promoted

Managers Empowerment of Talent Development Systems for Each Division + Senior

strategy. This fosters the deep collaboration between talent development and business goals. Under the talent development strategy Business Support Empowerment Trainers

the company has established different training and development paths for various employee groups based on their levels and needs. Supervisor/ Customer (Intermediate

Reserve Chief Marketing Basic Frontline Team Commitment Team EfficiencyService Skill

Basic Staff Marketing Management Enhancement Leader Enhancement Integration Improvement

Officer (CMO) Training Training Training System Workshop Workshop Workshop

General Competence for Frontline

Instruments for Suofeiya Talent Development System Implementation Campus Recruitment TrainingEmployees - Super Individual Trainee

Trainers

Clear Clear Effective Happy Stage 3:

Stage 1: Stage 2: Stage 4: (Beginner)

Thinking Communication Execution Collaboration Performance

Understand Integrate into Build

Benchmark-

the Team the Team Strengths

Evaluation dimensions EfficiencyTalent pool construction Energy Activation Potential Activation ing

Activation

evaluation tools high-potential talent pool Career development path

Digital Learning Platform: External Learning Platform Renting + Internal Easy Learning Platform Development

evaluation methods succession planning dual-channel path

Education and Training Mechanism: "Employee Training Management Measures" +

"Internal Trainer Management Measures"

010203040506

Talent Evaluation Talent Talent Pool Training Career Path

Standards System Inventory (Echelon) System

Launch of Advanced Training Program

In 2024 the company in collaboration with Renmin University of China

Competency model Nine-box grid Learning map

job qualifications talent review meetings knowledge extraction techniques launched the "Renmin Business School & Suofeiya CMO Advanced Train-

talent map combining training and practical experience ing Program." The CMO Advanced Training Program was carefully

mentorship system planned by integrating the deep academic foundation of Renmin Universi-

rotation system ty's renowned professors and advanced marketing methodologies from

both domestic and international sources. This training program allows

team members to enhance their ability to cope with market volatility

Human Resource Promotion Rotation Mentor Appraisal through systematic learning and practical application collectively building

Mechanism Guarantee Mechanism Mechanism mechanism Mechanism

the company's sustainable growth capacity to better address market

challenges.

6364

Mentorship System

Quality Center

Ningji Intelligent System

Smart Home

IDC Center

Research Institute

New Retail Center

Service Center

Manufacturing Center

Overseas Division

Direct Retail Division

Huahe Retail Business

Division

Schmidt Retail Business

Division

Engineering Division

Suofeiya Whole Home

External Learning Public Courses Qualification CertificationCare for Female Employees New Year's Eve Event

During the New Year holiday coinciding with the

company's relocation to a new office the company

To show care for female employees the company ensures maternity leave breastfeeding

prepared a delightful tea break relocation-themed

leave and other rights for female employees and has established a mother-and-baby room

games and gifts for employees. The event was

in office areas. The company organizes various cultural entertainment and sports activities

held in a warm atmosphere where everyone

for female employees to enrich their leisure time. On International Women's Day the compa-

celebrated the move together and the scene was

ny and its regional subsidiaries carefully plan warm holiday activities offering holiday benefits

overwhelmed with liveliness and joyfulness.to all female employees. Moving forward the company will continue to focus on the needs of

female employees and support each individual in achieving better development.Employee Activities

Team Building Employee Tourism

Golden Autumn Music Festival

The company carefully organized the music festival

to create a dedicated stage for employees allowing

them to fully unleash their passion showcase their

interests and display their talents.Sports and Culture Festival

To promote the concept of a healthy lifestyle and happy work and to help

employees maintain a strong physique and vibrant spirit the company

regularly organizes sports and cultural activities for employees.Birthday Parties

65 66SOCIAL 07

RESPONSIBILITYActively Fulfilling Social Responsibility and Illuminating the World with Reading

Facilitating the Development of a Friendly The "Children's Book House" Public Welfare Project Supporting the Development of

" Campuses with Reading Ethos"

Healthcare Environment."A strong youth means a strong China." Following the National Action Plan for Youth and

Students' Reading issued in 2023 by the Ministry of Education the Publicity Department of

Suofeiya makes in-depth efforts to implement the "Healthy China 2030" strategic plan fulfilling its social responsibility and assisting in

the CPC Central Committee and other eight departments which focuses on "deeply promot-

creating a more friendly and healthy medical service environment. To date the company has partnered with multiple urban operators and

ing all-people reading and building a China with reading ethos" Suofeiya officially launched

actively participated in public welfare projects aimed at creating healthcare-friendly environments in national children's medical centers

the "Suofeiya Children's Book House" public welfare project. Through this initiative the

maternal and child health hospitals community hospitals and other medical institutions at various levels. These initiatives have covered

company actively contributes to building " campuses with reading ethos" by creating comfort-

regions including the Yangtze River Delta Pearl River Delta and Central China.able and environment-friendly reading environments. The project aims to foster a joyful

The project includes institutions such as Shanghai Children's Medical Center Shanghai Fudan University Affiliated Pediatric Hospital reading atmosphere encouraging enjoyment of and participation in reading and effectively

Zhejiang Provincial Maternal and Child Health Hospital Wuhan University Zhongnan Hospital Wuhan University People's Hospital igniting children's interest in reading.Jiangsu Provincial Maternal and Child Health Shenzhen Maternal and Child Health Hospital Xiangyang Central Hospital in Hubei Prov-

From Wuhan in Hubei to Haikou in Hainan from Liuzhou in Guangxi to Liangshan in Sichuan

ince Wuhan Union Hospital Pediatric Hematology Department Nanjing Children's Hospital and Haizhu District Maternal and Child

and further to Shangluo in Shaanxi Ji’ning in Shandong Taiyuan in Shanxi Huizhou in

Health Hospital in Guangzhou among others. The project uses environment-friendly ENF-grade Kang-Chun-Ban providing patients

Guangdong Zunyi in Guizhou Lu'an in Anhui and Puyang in Henan Suofeiya has travelled

and medical staff with an eco-friendly healthy and safe environment for treatment and work supporting national efforts to improve

through mountains rivers and rural towns bringing hope to thousands of children in remote

healthcare infrastructure. Recently Suofeiya was awarded the "Guangzhou Women and Children Charity Model" by the Guangzhou

areas—by setting up new libraries and donating a large number of books.Women and Children Welfare Association.Looking ahead Suofeiya will adhere to the concept of sustainable development and support the growth of more medical institutions So far "Children's Book Houses" have been established and are now in operation across

through donations and other means. The company will further expand the coverage of its public welfare projects continuously fulfilling various regions nationwide with a total of over 30 Children Book Houses benefiting 20000

its commitment to society. teachers and students. These libraries are lighting up a nationwide reading map in cities like

Beijing Hangzhou Shanghai Wuhan Shenzhen Changsha Harbin Guiyang Zunyi

Baoding Huizhou Chengde Zhaoqing Lu'an Puyang Yichang Huangshi Xinxiang

Ji’ning Ganzhou Fuyang Jiande Lanzhou and more. Suofeiya's Children's Book House

not only provides children with an environment-friendly safe and comfortable reading

environment but also aims to plant the seeds of reading and love in their hearts. In the future

the "Children's Book House" will be available in more cities. By focusing on future education

in rural areas and contributing to rural revitalization Suofeiya will continue to deliver sustain-

07 able corporate values to society as part of its unwavering commitment.The company has been aware of universal scarcity of reading resources among rural children. According to the 2022 Survey on the Reading Conditions of Rural Primary Schools in China the average extracurricular reading volume per rural primary school student is only 3.27 books less than one-third of the national average. The reading spaces must meet the requirements of a comfortable environ-ment healthy and environment-friendly materials natural and harmonious designs and durable quality.Suofeiya has taken proactive action by mobilizing its nationwide dealer resources and leveraging the "Happy Homes" Village and Com-munity Mutual Aid Project initiated by the China Charity Federation. This initiative of Children’s Book House jointly launched by Suofeiya Home Collection the China Charity Federation and Suofeiya dealers across the country aims to build public reading rooms in rural

schools. It provides high-quality reading resources to help rural children cultivate reading habits enhance their cultural literacy and

stimulate intrinsic learning motivation.

69 70With the advancement and development of green energy technologies the company will

place greater emphasis on integrating environmental sustainability with social welfare in

future explorations. The company plans to gradually increase its use of renewable

energy in the next phase aiming to build a low-carbon operation model. At the same

time by introducing intelligent management systems the company will further optimize

resource usage efficiency and reduce environmental impact.To enhance supply chain transparency and promote responsible business practices the

company will unswervingly commit itself to developing partner relationships and encour- 报告后言

aging common progress among suppliers and all parties in the production chain. By

promoting the sharing of best practices the company seeks to improve the entire supply

chain's green and ethical standards.To deliver better returns to society and promote individual employee growth the compa-

ny will expand its employee training programs and encourage cultural diversity. Addition-

ally it will establish more community engagement mechanisms to ensure the company

actively contributes to the comprehensive development of the regions in which it

operates. We believe that through continuous efforts and the pursuit of excellence in the

ESG field the company will not only create long-term business value but also make a

positive contribution to global sustainable development.CLOSING

REMARKSESG Key Performance Indicators Indicators Unit 2024

Indicators Unit 2024 Hazardous Waste Compliance Disposal Rate % 100

Operating Income RMB 10494353781.39 Total Exhaust Emissions Cubic Meters 2582971

Net Profit RMB 1370944152.08 Exhaust Emissions Compliance Rate % 100

Total Tax Paid RMB 1198776988.03 Particulate Matter Tons 123.22

Total Cash Dividends (Including Tax) RMB 963047164.00 Benzene Tons 2.98

Cash Dividend per 10 Shares RMB 10.00 Toluene Tons 0.61

Public Welfare Expenditure RMB 1405343.98 Xylene Tons 0.97

Non-Methane Total Hydrocarbons Tons 25.66

Nitrogen Oxides Tons 10.55

Sulfur Dioxide Tons 3.18

Water Pollutants Emissions

Environmental Indicators Total Wastewater Emissions Tons 500190.20

Indicators Unit 2024 Wastewater Emissions Compliance Rate % 100

Environmental Investment Ten Thousand RMB 1387 Chemical Oxygen Demand (COD) Tons 144.58

Energy Consumption Five-Day Biochemical Oxygen Demand (BOD5) Tons 33.24

Natural Gas Cubic Meters 3847549 Suspended Solids Tons 33.32

Diesel Liters 6107 Ammonia Nitrogen Tons 6.98

Electricity kWh 134433677 Total Phosphorus Tons 0.84

Photovoltaic Power Generation Production Wastewater Reuse (Regenerated Water) Tons 5797

Photovoltaic Power Generation kWh 21284776 Greenhouse Gas Emissions

Reduction of CO2 Emissions Tons 18523 Direct Greenhouse Gas Emissions (Scope 1)

Standard Coal Savings Tons 6810 South China Production Center tCO2e 667.53

Wastewater Emissions Compliance Rate % 100 Central China Production Center tCO2e 470.31

Noise Emissions Compliance Rate % 100 East China Production Center tCO2e 366.17

Hazardous Waste Generation Tons 590.78 Western Production Center tCO2e 255..50

73 74Indicators Unit 2024 Governance Performance Indicators

North China Production Center tCO2e 206.22 Indicators Unit 2024

Lankao Production Base tCO2e 260.26 Board of Directors Sessions 10

Qiqihar Production Base tCO2e 44.02 Proposals Deliberated by Board of Directors Pcs 49

Jinhua Production Base tCO2e 29.03 Board of Supervisors Sessions 8

Indirect Greenhouse Gas Emissions (Scope 2) Proposals Deliberated by Board of Supervisors Pcs 30

South China Production Center tCO2e 7073.99 General Meeting of Shareholders Sessions 4

Central China Production Center tCO2e 4984.01 Proposals Deliberated by General Meeting of Shareholders Pcs 25

East China Production Center tCO2e 3880.36 Board of Directors Audit Committee Sessions 5

Western Production Center tCO2e 2707.53 Proposals Deliberated by Audit Committee Pcs 11

North China Production Center tCO2e 2185.35 Number of Ad Hoc Announcements (with Announcement Number) Pcs 64

Lankao Production Base tCO2e 2758.02 Number of Regular Reports Pcs 4

Qiqihar Production Base tCO2e 466.44 Shenzhen Stock Exchange Information Disclosure Assessment Result Level A

Jinhua Production Base tCO2e 307.62 New and Revised Regulations Pcs 784

Total Greenhouse Gas Emissions (Scope 1 + Scope 2) Routine Supervisory Inspections Pcs 6

South China Production Center tCO2e 7741.52 Tender Supervision Sessions 82

Central China Production Center tCO2e 5454.32 Report Clues Handled Pcs 31

East China Production Center tCO2e 4246.53 Report Handling Completion Rate % 100

Western Production Center tCO2e 2963.03 Offline Integrity Training Sessions 8

North China Production Center tCO2e 2391.57 Integrity Training Coverage Persons 14000

Lankao Production Base tCO2e 3018.28 Integrity Education Coverage Rate % 100

Qiqihar Production Base tCO2e 510.46 Number of Approved Registered Trademarks Pcs 1934

Jinhua Production Base tCO2e 336.65 Trademark Protection Records Entries 136

Major Information Security Incidents Pcs 0

Host Availability % 99.99

Database Availability % 99.99

75 76Indicators Unit 2024 Employee Information

Network Availability % 99.99 Indicators Unit 2024

Number of Suppliers Companies 300+ Total Number of Employees Persons 12901

Percentage of Strategic Suppliers % 20 Labor Contract Signing Rate % 100

Supplier Procurement Contracts Signed % 100 Production Staff Persons 7818

Anti-Bribery Agreement Coverage % 100 Sales Staff Persons 2213

Number of R&D Personnel Persons 1017 Professional Technical Staff Persons 1682

Composition

R&D Investment RMB 375025435.96 Categories Finance Staff Persons 168

Authorized Valid Patents Pcs 641 Administrative Staff Persons 577

Valid Invention Patents Pcs 109 Management Staff Persons 443

Utility Model Patents Pcs 281 Master's Degree and Above Persons 122

Design Patents Pcs 251 Bachelor's Degree Persons 2412

Education Level

Standards in Whose Formulation Suofeiya Participated Pcs 94 Associate Degree Persons 2945

Papers Published Articles 127 High School and Below Persons 7422

Software Copyrights Registered Pcs 207 30 and Below Persons 3878

Internationally Advanced Technology Achievements 31-40 Persons 6514

Pcs 15

Appraised by Experts Age Distribution

41-50 Persons 2116

Technology Awards Received Pcs 20

51 and Above Persons 393

Service-Related Training Sessions 102

Male Persons 9262

Number of Trainees Persons 6428 Gender Structure

Female Persons 3639

Key Position Training Coverage Rate % 100

77 78Report Laws and Regulations Observed Some of Internal Policies Report Laws and Regulations Observed Some of Internal Policies

Chapters Chapters

Terminal Equipment and Network Management

Criminal Law of the People's Republic of China Articles of Association of Suofeiya Home Co. Ltd.Regulations

Criminal Procedure Law of the People's Republic of China Rules of Procedure for Shareholders' Meetings Information Security Management Procedures

Securities Law of the People's Republic of China Independent Director System Sustainable Data Security Management Specifications

Governance

Company Law of the People's Republic of China Board of Directors' Rules of Procedure Confidentiality Management System

Group Patent Infringement Risk Prevention Management

Anti-Unfair Competition Law of the People's Republic of China General Manager's Work Guidelines

Measures

Conduct Guidelines for Directors Supervisors and

Anti-Money Laundering Law of the People's Republic of China Suofeiya Home Co. Ltd. Financial Management System

Senior Management

Environmental Protection Law of the People's Republic of

Shenzhen Stock Exchange Listing Rules Investor Relations Management System Group EHS Responsibility System

China

Energy Conservation Law of the People's Republic of China Safety Accident Management Measures

Shenzhen Stock Exchange Self-Regulatory Guidelines Institutional Survey Reception Management

No.1 for Listed Companies on the Main Board Guidelines Circular Economy Promotion Law of the People's Republic of

EHS Meeting Management Measures

China

Listing Rules of Listed Companies Information Disclosure Management System Water Law of the People's Republic of China Environmental Protection Management System

Water Pollution Prevention and Control Law of the

Corporate Governance Code for Listed Companies Internal Audit System Energy-saving Management System

People's Republic of China

Independent Director Management Guidelines for Listed Air Pollution Prevention and Control Law of the People's

Contract Management System Energy Management System

Sustainable Companies Republic of China

Governance Articles of Association for Listed Companies Contract Management Guidelines

Opinions of the Central Committee of the Communist Party

Personal Information Protection Law Intellectual Property Management System of China (CPC) and the State Council on the Complete and Group EHS Committee Structure and Responsibilities

Accurate Implementation of the New Development Concept

and the Proper Implementation of Carbon Peaking and

Consumer Protection Law Physical Stamp Management System Promoting

Carbon Neutral Work

Green

App Illegal Collection and Use of Personal Information

Enterprise Internal Control Application Guidelines

Self-Assessment Guidelines Development

Rainwater and Sewage Drainage Management

Carbon Peaking Action Plan Before 2030

Measures

Anti-Unfair Competition Law of the People's Republic of China Suofeiya Employee Handbook

Rainwater and Sewage Drainage Management

Pollution Discharge Permit Management Regulations

Measures

Common Types of Mobile Internet Applications Necessary

Suofeiya Employee Integrity Management Guidelines Environmental Management System Requirements Factory General Industrial Waste Recycling and

Personal Information Range Provisions and Guidelines (GB/T24001-2016) Disposal Management Measures

Fixed Asset Disposal and Scrapping Implementation

Urban Drainage and Sewage Treatment Regulations

Details

Suofeiya's Eight Red Lines

Industrial Enterprise Boundary Environmental Noise

Energy Management System Manual

Emission Standards

Conflict of Interest Declaration and Filing Notice

Suofeiya Home Co. Ltd.’s Whistleblower Manage- Environmental Labeling Product Technical Require- Factory Solid Waste Disposal Management

ment Guidelines ments - Cabinets (HJ/T432-2008) Specifications

Information Systems Emergency Plan

Business System Online Security Management

Pollutant Emissions Declaration Registration

Guidelines Environmental Labeling Product Technical Require-

ments - Furniture (HJ/2547-2016) Management Measures

Data Center Security Management System

79 80Report Laws and Regulations Observed Some of Internal Policies Report Laws and Regulations Observed Some of Internal Policies

Chapters Chapters

Corporate Culture Implementation Management Measures

Promoting Formaldehyde Release Grading for Engineered Wood Environmental Monitoring and Measurement Control

and Their Products (GB/T39600-2021) Procedures Emergency Plan for Sudden Environmental

Green Incidents Joint Growth Employee Handbook

Development Suofeiya Employee General Health Examination Manage-

ment Guidelines

Bidding and Tendering Law of the People's Republic of

China

Bidding and Tendering Law Implementation Regulations Production Material Procurement Management

Supply Chain (2019 Revision) Guidelines

with Sense of

Responsibility Electronic Commerce Law of the People's Republic of Supplier Quality Management System

China

Supplier Review Management Guidelines

Logistics Vendor Evaluation Operation Guidelines

Suofeiya Home Co. Ltd.’s Four Major System

Product Quality Law of the People's Republic of China

Management Manual

Regulations on Monitoring Chemicals Management in

Suofeiya Service Guidelines

the People's Republic of China

Custom Wooden Cabinet Core Quality Grading

Civil Code of the People's Republic of China

Standards

Consumer Protection Law of the People's Republic of China Childcare and Infant Living Environment Safety

Control Specifications

Quality

Environmental Labeling Product Technical Requirements Group Quality Evaluation Guidelines

Innovation

Quality Star Evaluation Management Guidelines

Customer Complaints and Goods Rejection Process-

ing Procedures

Product Optimization Management Guidelines

Technology Achievement Application Management

Guidelines

Labor Law of the People's Republic of China Remuneration Management Guidelines

Labor Contract Law of the People's Republic of China Occupational Safety and Health Control Procedures

Regulations on Implementation of Labor Contract Law

Employee Training Management System

of the People's Republic of China

Joint Growth Social Security Law of the People's Republic of China Performance Management Guidelines

Quarterly Excellent Employee Selection Management

Employment Promotion Law of the People's Republic of China

Guidelines

Employment Service and Employment Management Provisions Human Resources Management System

Corporate Culture Management System

81 82COMPANY HONORS International Fame · Leading Home Aesthetic Wisdom

2024 Glories German IF Design Award International Design Awards

·Huahe - Puyue ·Design Center - Liuguang Gangyun Honorary Award

·Schmidt - C Series Yiman ·Suofeiya Home - NINI ·Zhiran Milanna

·Huahe – Yunxi ·Design Center - Xingyun ·Schmidt - S Series Rosa

·Schmidt - S Series Seine River ·Suofeiya Home - Caesar ·Schmidt - S Series Riemann

·Suofeiya Home - NINI

·Integrated Home - Qingyan

·Suofeiya Home - Caesar

2024 American MUSE A'Design Award

MUSE Gold Winner Design Award A'Design AwardItaly

Official Honors Quality Recognitions

Leading the Chinese Custom Home Industry Creating Industry Leading Examples Gold Award Gold Award Bronze Medal

·Anya Bond Anya ·NINI ·Liman ·Qi Gu ·Selle ·Huahe – Yunxi

2023 Guangdong Provincial Science and Technology Progress Energy Management System Certification

·Champs-Elysées Schmidt

Award --- First Prize

National Product and Service Quality Integrity Demonstration Platinum Award Silver Medal·Cruze Bond Cruze

2024 Guangdong Provincial Single-Product Champion Enterprise Enterprise ·Caesar ·Liuguang Gangyun ·Mis ·silver medal

·Fashion π Milan

2025 Guangdong 3.15 Consumer Rights Protection Anti-Counter- National Furniture Manufacturing Industry Quality Leading Enterprise ·Xingyun

·Finding Fun Milan

feiting Project --- Nominated Brand

National Consumer Quality Credit Guarantee Product

·Mocha Suofeiya Home Mocha Silver Award

2023 Certification and Accreditation Inspection Industry Annual ·Waltz Suofeiya Home Nilang Pro

Outstanding Certified Organization ·Iman

·Yueying Huahe Yueying

CGDA Visual Communi- 5th Global Surface Decora- Customised Home Industry

cation Design Award tion Original Design Show Awards

Finalist Award Finalist Award Huahu Customised Showroom

Seasonal Words ·Night Sky ·Soshua Flower Language

Finalist Award Excellent Award

Suofeiya Product Manual APP UI Design Intergalactic Domain

Reputation in the Market Stable Development

Building a Strong Brand Influence High Recognition in Capital Markets

14th China Space Design 14th China Space JinTang Award - China

2024 Healthy China Innovation Practice Case (People's Daily) Listed Company Investor Relations 18th Annual Chinese Listed Competition Design Competition Interior Design Annual

Management --- Best Practice Company Value Rankings --- Awards

2024 Top 100 New Quality Home Brands

Award Top 100 Main Board Companies

Bronze Award Suofeiya Home - Mocha Outstanding Residential Apartment Design

CCTV-1 National Brand

2024 15th Annual Investor Relations TOP 300 Most Popular Listed Design Center - Lijiang Garden of the Year - Luhu Islet House

2024 Greater Bay Area Furniture and Building Materials 20 Tianma Award Companies

Influential Brands

Panoramic Investor Relations Gold Panoramic Investor Relations

Annual Quality Home Brand Award (2023) --- Excellence in IR Gold Award (2023) --- 32nd APIDA Hong Kong Asia

Companies Outstanding IR TeamAward Pacific Interior Design Award

2023-2024 Top Ten Custom Furniture Brands - Suofeiya

Panoramic Investor Relations Gold Top 100 Investor Relations

Award (2023) --- Outstanding Companies in Board Secretary Suofeiya Home Exhibition Hall A

Small and Medium Investor Interac- Role

tion Award

83