Suofeiya Home Collection Co. Ltd.Environmental Social and
Governance Report (2025)
SUOFEIYAPreface
PREFACE
Overview of This Report
This 9th environmental social and governance (ESG) report released by Suofeiya Home Collection Co. Ltd. aims to Designations
comprehensively and objectively showcase Suofeiya’s practices and achievements in the three major dimensions of
sustainable development: environmental protection social responsibility and corporate governance throughout 2025 with For ease of expression and reading references to “Suofeiya” “the Company” “the Enterprise” and “we” throughout this
a view to enhance corporate transparency and drive long-term sustainable development continuously. report all refer to Suofeiya Home Collection Co. Ltd.Data Sources
Basis of Compilation
The textual information and case studies in this report mainly come from Suofeiya’s statistical data relevant documents and internal
Global Reporting Initiative (GRI) Sustainability Reporting Standards (GRI Standards) communications. Financial data are extracted from our audited 2025 annual report while other data are based on internal statistics.Guide for Business Action on the United Nations Sustainable Development Goals (SDGs) Unless otherwise specified all amounts in this report are denominated in Chinese yuan (CNY). Our Board of Directors warrants that
Chinese Academy of Social Sciences (CASS) Guidelines on Corporate Social Responsibility Reporting for Chinese Enter- this report contains no false representations misleading statements or material omissions and accepts full responsibility for its authen-
prises (CASS-ESG 6.0) ticity accuracy and completeness. This report has been approved by the Board of Directors and will be released on April 18 2026.Rating Standards for China Corporate Sustainability Reports (2026)
A Practical Guide to Sustainability Work of Listed Companies
Self-regulatory Guidelines No. 1 for Companies Listed on Shenzhen Stock Exchange – Standardized Operation of Com- Access to the Report
panies Listed on the Main Board
This report is available in both Chinese and English versions. Welcome to download it from the official website of Suofeiya (https://ww-
Self-regulatory Guidelines No. 3 for Companies Listed on Shenzhen Stock Exchange – Sustainability Report Preparation
w.sfygroup.com/) or CNINFO (https://www.cninfo.com.cn/).Self-regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange – Sustainability Report (For Trial
Implementation)
Self-regulatory Guidelines No. 1 for Companies Listed on Shenzhen Stock Exchange – Standardized Operation of Com- Feedback and Contact Information
panies Listed on the Main Board
Address: No. 2 Xianning Road Guocun Village Yongning Subdistrict Zengcheng District Guangzhou City
Guangdong Province China
Time Frame Landline: (+86) 020-87533019
Email: ningji@suofeiya.com.cn
This annual report covers the period from January 1 2025 to December 31 2025 with some retrospective information for
Official website: www.sfygroup.com
previous years included.Table of Contents
TABLE OF Feature: Undertook Key National R&D Project for the 14th Five-Year Plan 01
Period and Drove the Industry’s Transformation to Smart Manufacturing
CONTENTS Honors and awards 81Concluding remarks 83Key ESG Performance Indicators 85报告前言
05132947
Cornerstone of Sustainable Develop- Governance for a Sustainable Future Environmental Sustainability Supply Chain Sustainability
ment and Stakeholder Engagement and Operational Compliance
Stakeholder Engagement Governance for a Sustainable Future Climate Actions Supply Chain Governance and Policy Framework
Analysis of Material ESG Topics Compliance-Based Corporate Governance EHS Policy and Management Supplier Communication and Capability Development
Stronger Business Foundation Through Party Building Protection of Shareholders’ Rights and Interests Resource Consumption and Management Innovative Practices for a Sustainable Supply Chain
About Suofeiya Operational Compliance and Business Ethics Green Logistics
Privacy and Information Security
55636977
Industrial Transformations Empowered Service Upgrading and Customer Employee Development And Social Responsibility And
By Technological Innovation Value Enhancement Mutual Growth Public Welfare
Rock-Solid Program: Drove Sustainable Growth withThree Service Evolution: from Standards Formulation to Systematic Employee Rights and Interests Protection and Compliant Built Strength with Empowerment from Labor Union and
Major Innovations Empowerment Employment Demonstrated Corporate Responsibility
Original Concealed Connector: Redefined Sustainable Home Four Core Initiatives for Service Upgrading in 2025 Full-Cycle Talent Development and Employee Growth Safeguarded Consumer Rights and Set a Benchmark for Integrity
Furnishing with Core Component Innovation
Care for Female Employees: Nurtured “She Power”for Lit up Young Minds with Reading and Supported the Building
Commercialized R&D Outcomes to Stimulate Innovation Vitality Mutual Growth of “Scholarly Campuses”
Forged Cohesion via Diversified Cultural Activities Implemented Healthy China Strategy and Created a Friendly
Medical EnvironmentFeature
In response to national strategies of “building a manufacturing powerhouse” and “pursuing green development” Suofeiya under-
took “Key Technologies for Smart Manufacturing of Forest Products Based on Digital Collaboration” a key national R&D
project for the 14th Five-Year Plan period together with 10 institutions including Research Institute of Wood Industry Chinese Acade-
my of Forestry. This project focused on the core strategic area of intelligent manufacturing of forest products aiming to address
long-standing pain points of the industry across five main business segments: wooden furniture wooden doors wooden flooring
fiberboard/particleboard and plywood such as low production efficiency high resource consumption and insufficient intelligence capa-
bilities. Centered on “digital collaboration green and low-carbon development and high-efficiency production” the project achieved
Feature major breakthroughs in key technologies in 2025 having driven industrial upgrading while fully implementing the concepts of resource recycling and efficient energy management.Undertook Key National R&D Typical Cases of Dual Outcomes from Core Technological
Breakthroughs and Green Employment
Project for the 14th Five-Year
Wooden furniture Wooden doors
Plan Period and Drove the We developed a tech system for large-scale customized smart We introduced an intelligent frame-assembly production line
manufacturing of wood-based panel furniture and gradually featuring flexible stock preparation. Supported by precision
extended its application to solid wood furniture. Our Jiashan cutting waste recycling and other systems our product error
Industry’s Transformation to factory upgraded the demonstration production line for rate was kept below 1% and raw material utilization rate
wood-based panel furniture. Supported by intelligent produc- exceeded 99% achieving near zero-waste production. Our
tion scheduling optimized material cutting and other innova- Zengcheng factory in Guangzhou launched a demonstration
Smart Manufacturing tions our daily output exceeded 20000 pieces embracing an wooden door production line whose daily output exceeded 400 18% increase compared with previous capacity. sets.Wooden flooring Fiberboard/particleboard
Key breakthroughs were made in machine vision online inspec- We launched an integrated intelligent production line for sand-
tion for surface quality. The accuracy of color grading reached ing sawing sorting packaging and logistics of wood-based
92% and texture recognition precision hit 98.93% which effec- panels. Its sanding speed increased from 90 m/min to 120
tively reduced rework and material waste caused by inspection m/min and cutting height rose from 200 mm to 250 mm. The
errors. daily output of a single production line grew from 1500 m 3 to
2500 m 3 .
Plywood
We made key progress in integrated application and industrial-
ization of large-scale continuous plywood pressing system.The accuracy of slab alignment equipment reached 95% and
falling rate of robotic suction cups was reduced to 0.5%. The
annual output of a single production line went beyond 70000
m 3 .
01 02Feature
Since the approval of the project in December 2023 we have built or upgraded 7 demonstration
production lines filed 27 invention patents (6 granted) obtained 16 software copyrights
published 33 academic papers and formulated or revised 2 industry standards. By deploying
digital large-scale and green technologies the project has advanced the transformation and
upgrading of forest products towards smart manufacturing. It has also created a replicable and
scalable practical model for integrating intelligent manufacturing with green and low-carbon devel-
opment across the forestry sector providing strong momentum for achieving China’s dual-carbon
goals and stabilizing employment.Demonstration production lines7 Filed invention patents 27
Obtained software copyrights16 Published academic papers 33
Ormulated or revised industry standards 2
Full-process intelligent production lines Multi-robot collaborative wood-based panel sorting
Integrated production line for sanding sawing Plywood production line: automatic robotic veneer layup
sorting and packaging of wood-based panels
03 0401 CORNERSTONE OF SUSTAINABLE 公司可DEV持EL续OPM治EN理T A与ND合 规运营STAKEHOLDER ENGAGEMENTStakeholders Focus areas Channels of engagement
Customer rights and interests Information confidentiality
Product safety After-sales service mechanism
Customers
Design/quality and collaborative technological
Professional services iteration
Satisfaction surveys (customer satisfaction
Data security and privacy protection index/dealer satisfaction index)
Green procurement Supply chain management
Stakeholder Engagement
Win-win cooperation Cost reduction and efficiency improvement
Suppliers/partners
Industry ecosystem Collaborative R&D
We constantly optimize our stakeholder engagement and management. Through diversified channels such as regular surveys work
interviews and online exchanges we convey information in a timely and transparent manner strengthen interaction with shareholders Supply chain management Supplier conferences
employees customers and local communities and foster an open inclusive cooperative relationship. By adopting digital technologies
Timely response to public opinion Proactively accept media interviews and
conducting online questionnaire surveys holding regular meetings and organizing open-house events we achieve two-way interac- respond to public concerns
Media
tions with stakeholders and thoroughly identify their needs. On this basis we formulate tailored communication strategies enhance Release corporate updates via official
Authoritative and transparent corporate updates
external understanding and support and strengthen their trust and collaboration in us which effectively promotes our social value websites WeChat official account etc.co-creation and builds a solid foundation for the Company’s sustainable development. Contribution to community development Social responsibility fulfillment
General public Public welfare Public welfare activities
Stakeholders Focus areas Channels of engagement Green development (resource recycling/energy Volunteer services
management)
Corporate governance structure Compliant operations
Tax compliance Supervision and performance assessment
Employment promotion Regular recruitment Analysis of Material ESG Topics
Government and
regulatory agencies Carbon management Regular reporting
Drawing on the materiality analysis methodology of Global Reporting Initiative (GRI) we have identified 20 material ESG topics
Pollutant prevention and control Special meetings assessed them based on their impact materiality (economic environmental and social impacts) and financial materiality (importance to
Information security and privacy protection Survey questionnaires stakeholders' decision-making and enterprise value) and formed an ESG materiality matrix. The material topics included:
Occupational health and safety Anti-fraud mechanism High
Sustainable operations Shareholders’ meetings Pollutant emissions Resource recycling Supply chain management Energy management
Intellectual property Corporate governance Shareholders’ rights and Business ethics and
Risk control and compliance Information disclosure
Shareholders and protection structure interests anti-corruption
investors Investor relations Product safetyInvestor communication meetings
Shareholders’ rights and interests Proactive profit distribution policy Materiality
Sustainability management Environmental compliance Information disclosure Customer rights and
Compliant employment Staff and workers’ congress Employee development and management Public welfare interests
Remuneration and benefits Staff assembly Data security and privacy Technological innovation Carbon emissions Climate actions
Employees protection Water resource utilization
Workplace safety Employee training
Employee development Training and culture activities Relatively high Significance High
07 08Adhered to Party Alliance and Co-construction to Deeply Inte-
Stronger Business Foundation Through Party Building grate Party Building into Corporate Social Responsibility
Our CPC committees proactively engaged in Party alliance and co-construction with CPC organiza-
Suofeiya’s first CPC (the Communist Party of China) organization was officially established
tions of government authorities state-owned enterprises schools and non-public enterprises
in 2014. With the rapid development of the Company the number of CPC members has also
having fully achieved the goal of “Party leadership and integrated co-construction”. In 2025 we
continued to grow. To date we have seven CPC organizations across all factories. Among
organized 25 co-construction activities and Party building exchange visits and actively launched
them Zengcheng headquarters and Huanggang factory run CPC committees while the
public welfare initiatives to serve local communities. By Party alliance and co-construction we
other five factories run CPC branches which totally have 262 registered CPC members.have transformed institutional strengths into drivers of business growth. This has not only enabled
resource complementarity and sharing among Party branches from different industries but also
Closely focusing on the core goal of strengthening Party building and boosting corporate
facilitated mutual support and helped advance the goal of common prosperity. Suofeiya faithfully inher-
development our CPC organizations have achieved remarkable results in standardized
its revolutionary heritage further improves Party alliance and co-construction and integrates related
development institutionalized Party activities the cultivation of CPC members etc. We
practices with social responsibility to promote progress for both itself and society and contribute to the
realized in-depth integration between Party building and corporate development translating
mission of creating a better life for all.the political strengths of the Party into powerful momentum driving Suofeiya’s vigorous
growth. A distinctive Party building brand that aligns with the Company’s practical needs
and reflects contemporary features has been established which further enhances our Leveraged the Pioneering Role of CPC Members to Deeply
influence and reputation. Integrate Party Building into Talent Cultivation
Under the exemplary leadership and strong promotion of CPC organizations we have maintained healthy orderly and stable develop- We established mechanisms including pioneer posts for CPC members CPC member innovation and
ment. Recognized for their outstanding achievements in integrating Party building with business operations our CPC organizations were R&D teams and workplace safety task forces led by CPC members giving full play to the exemplary
awarded multiple honors in 2025 including Guangzhou Model CPC Organization with “Dual Strengths and Six Excellences” for and pioneering roles of CPC members in various positions. Our CPC organizations conducted strict
Non-Public Economic Entities Outstanding Project on Guangzhou Kapok Innovation Pioneer List for Non-Public Economic reviews for membership admission prioritizing recruiting young motivated employees with sound
Entities and Huanggang High-Tech Zone Five-Star (Red Flag Model) CPC Organization. education and integrity. In 2025 we admitted 17 probationary CPC members and cultivated 19
CPC membership candidates. Pioneer CPC members have played an exemplary role in key R&D
projects integrity and ethical conduct initiative and other areas assuming greater responsibilities in
corporate development. Through such dual talent selection mechanism Party building is effectively
Reinforced Organizational Development to Deeply Inte-
integrated with talent cultivation and corporate growth mutually reinforces Party building.grate Party Building into Production
Upheld the Inspirational Power of Party Building to Deeply Integrate Party Building
Our CPC organizations fully implement accountability system for Party building embedding
into Corporate Culture
the Party’s leadership into every aspect of corporate governance. By advancing the
in-depth integration of Party building with production and operations we have achieved Suofeiya has always remained steadfast in inheriting the CPC’s red genes while practicing its “corporate family” culture. We reinforce
aligned learning between CPC organizations and corporate senior management and unified CPC members’ due diligence sense of mission and accountability in corporate development and social progress and guide employees
the Party’s ideology with core priorities of corporate development. to integrate their “small self” deeply into the “greater self” of the country and society aiming to achieve an elevation from happiness
within corporate “small family” to well-being for societal “big family”. This strengthens employees’ sense of belonging to corporate
In 2025 we convened 48 meetings of CPC committees (branches) and 38 general meet-
culture and recognition of compassionate inspiration embodied in Party building.ings of CPC branches and delivered 22 lectures and training sessions for CPC mem-
bers plus 63 Party day activities continuously raising the ideological caliber of CPC In 2025 our CPC organizations together with the labor union carefully planned and organized a rich variety of activities. They included
cadres. Our CPC organizations valued cultivating CPC members and Party workers. They sports and cultural festivals care programs for employees’ children holiday garden galas and voluntary blood donation drives. The
offered targeted tiered and customized training for CPC members staff engaged in Party activities have truly fostered a caring family atmosphere for all staff enhanced their sense of belonging to the Company and recognition
affairs and Party organization leaders who served management positions across the Com- of the CPC and strengthened their cohesion toward our Party organizations forming highlights of our corporate culture.pany and its various centers. This ensures our management team can steer the Compa- Furthermore our CPC organizations actively collaborated with the labor union to conduct outreach visits to impoverished households in
ny’s development direction under the Party’s leadership which provides solid political surrounding villages and needy employees delivering warmth and care to them after understanding their living conditions and practical
guarantees and organizational support for the stable progress of both Party building and needs. In this way the well-being nurtured within the Enterprise was extended to more vulnerable groups in society. Our CPC members
daily business operations. demonstrated responsibility and commitment with actions striving unremittingly to create a better life for humanity.
09 10ABOUT
SUOFEIYA
Company Overview
Founded in 2003 Suofeiya has been deeply involved in the Chinese home furnishing market for more than
two decades. As China’s first company to introduce the concept of “customized closets” Suofeiya has
successfully brought customized closets to the market and won recognition from Chinese consumers with
its innovative philosophy combining customized closets and sliding doors for closets. Committed to provid-
ing consumers with comprehensive customized home furnishing solutions we engage in design develop-
ment production and sales of whole-house furniture including closets cabinets doors 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).
We now own a comprehensive brand portfolio covering the entire market. They include Sophia targeting
the mid-to-high-end market Schmidt and Huahe catering to premium customer groups and Milanla
focusing on the mass market. The four brands form an internally coordinated product R&D and supply
system. They offer a full range of products such as wardrobes and doors boosting the Company’s
in-depth development across all sales channels.Corporate Culture
Mission:Empower easy home furnishing with technology and creativity and integrate the beauty of the
world to create a new life.Vision: Deliver premium customer experiences through personalized design and efficient operations
striving to become a trusted and globally leading home furnishing enterprise.Core values：Customer first innovation and sharing professionalism and efficiency integrity and
progressive
Business Philosophy
Customer focused experience
Iron triangle of
customization
Personalized custom Professional and
solutions efficient services
11 1202 GOVERNANCE FOR A SUSTAINABLE FUTURE AND OPERATIONAL COMPLIANCEGovernance for a Sustainable Future Compliance-Based Corporate Governance
Suofeiya thoroughly aligns itself with national strategic arrangements for sustainable development and strictly complies with regulatory We strictly comply with applicable laws and regulations and run a sound
Suofeiya Whole Home Business Division
requirements including Self-regulatory Guidelines No. 3 for Companies Listed on Shenzhen Stock Exchange – Sustainability Report corporate governance framework comprising General Meeting of Share-
Schmidt Retai l Business Division
Preparation. Guided by our vision — Deliver premium customer experiences through personalized design and efficient operations holders the Board of Directors and its special committees and the senior
striving to become a trusted and globally leading home furnishing enterprise and upholding our core values — Customer first innovation management. Besides we implement a range of normative documents Mi lanla Retai l Business Division
and sharing professionalism and efficiency integrity and progressive we fully integrate ESG principles into every link across the entire including the Rules of Procedure for the Board of Directors and the Informa- Huahe Retai l Business Division
value chain including R&D production supply chain sales and services striving to achieve in-depth synergies between sustainable tion Disclosure Management Policy to ensure compliance in operations and B2B Whole Seal Business Division
development and business growth. fulfillment of business ethics.Direct Retai l Business Division
To ensure effective implementation of our sustainable development strategy we have created a coordinated ESG governance system Integrated to HouseDecorat ion Company
covering key links of “strategic decision-making integrated management efficient execution supervision and evaluation” and Business Division
formed a collaborative continuously optimized management mechanism featuring well-defined rights obligations and accountability. Furniture and Home Col lect ion Business
Division
Strategic decision-making Overseas Business Division
Audit Smart Home Products Division
As the highest ESG decision-making body the Board of Directors is responsible for formulating strategic plans annual targets material Department
Qual i ty Center
topics and major matters. It also evaluates management effectiveness and risks and oversees the implementation of decisions made
by the senior management ensuring that ESG practices are fully aligned with the Company’s overall strategy. Cabinet Manufacturing Center
Audit
Committee Doors and Windows Manufacturing Center
Integrated management Design Center
Our ESG team further refines executable action plans and quantitative indicators coordinates across departments to advance projects Information and Digital CenterShareholders’ Board of General
Meeting Directors Manager
organizes information collection and analysis chairs ESG report compilation and facilitates communication with internal and external Smart Home Technical R&D Center
stakeholders to drive continuous improvements in ESG performance.IT Planning and Project Management
Supervision Board of General Department
Department Directors Off ice Manager’s Off ice
Efficient execution Customer Service Center
Suofeiya’s branches subsidiaries production bases as well as corporate departments are executors of ESG initiatives. They decom- Supply Chain Center
pose ESG goals into daily operational procedures (e.g. production department focuses on energy conservation and emissions reduc- Financial Management Center
tion; supply chain division promotes green procurement; and R&D team develops low-carbon technologies) define clear job responsi-
New Retai l Center
bilities and implement specific measures to ensure ESG requirements are met throughout the entire business process.Brand Management Department
Civi l Construct ion Off ice
Research Inst i tute
Organizat ion Department
Human Resources Center
Administrat ion Center
Guangzhou Ningj i Intel l igent System
Co. Ltd.Guangzhou Suofeiya Investment Co. Ltd.Guangzhou Suofeiya Decorat ion and
Renovation Co. Ltd.
15 1601 General Meeting of Shareholders
General Meeting of Shareholders composed of all shareholders is the highest organ of corporate power. In accordance with the law it
exercises decision-making power over major matters including Suofeiya’s operational policies investment plans profit distribution
and amendments to the Articles of Association.We strictly comply with laws and regulations such as the Securities Law of the People’s Republic of China and the Company Law of the
People’s Republic of China as well as internal rules including Articles of Association and Rules of Procedure for General Meeting of
Shareholders. Regulated procedures for convening and holding General Meeting of Shareholders are obeyed. A voting mechanism
combining on-site balloting and online voting is fully adopted to provide convenient channels for all shareholders especially minority
shareholders to participate in our decision-making. We consistently uphold equal treatment of all investors safeguard the rights of
minority shareholders to information participation and voting and effectively protect the legitimate rights and interests of all shareholders
through regulated deliberation procedures and transparent decision-making processes.
02 Board of Directors
On the basis of fully ensuring the exercise of General Meeting of Shareholders’ functions and powers our Board of Directors firmly
fulfills its core responsibilities of “setting strategies making decisions and preventing risks” and keeps improving
corporate governance mechanism to enhance the scientificity and effectiveness of decision-making.Assured independence Diversified structure
We keep optimizing the independence of the Board of Directors. We emphasize diversity in the educational attainment profes-
Independent directors perform their duties strictly in accordance sional competencies academic backgrounds and professional
with applicable laws and regulations Suofeiya’s Articles of ethics of Board members. By recruiting professionals from
Association and relevant rules of procedure. Giving full play to various fields the Board is equipped with diverse perspectives
their independence they provide objective and professional and interdisciplinary thinking thus supporting comprehensive
advice on key matters such as business operation and strategic and forward-looking strategic decision-making. 03 Senior Management
advancement based on their professional expertise and
independent perspectives effectively improving the quality of
Appointed by the Board of Directors and accountable to it the senior management serves as the executive body responsible for imple-
Board decisions.menting Board resolutions overseeing daily operations and ensuring the delivery of corporate strategies and annual targets. In 2025
the senior management comprised four senior executives with professional expertise covering such core fields as marketing manage-
Institutional framework and ment financial management and smart manufacturing. All members boast in-depth industry expertise and extensive management
implementation standards Support from special committee experience. They participate deeply in the formulation and execution of the Company’s annual business plans and investment strate-
gies accurately capture industry trends and market opportunities and drive steady sustainable business growth by efficient operational
To further enhance the transparency and accountability of Board The Board runs an Audit Committee which focuses on financial coordination and cross-departmental collaboration laying a solid foundation for achieving the Company’s long-term strategic objec-
governance we follow specialized internal systems including supervision risk management and internal control. The special tives.Rules of Procedure for the Board of Directors and Independent committee conducts regular reviews and oversight of overall
Director System in which decision-making procedures and operations and financial performance ensures the effective
General Meetings of Shareholders 2 Meetings of the Board of Directors 4
boundaries of authority are clarified. During the reporting period operation of internal control and risk management systems and
all directors duly performed their duties with a 100% attendance provides professional support for Board decision-making. Deliberatingproposals 25 Deliberating proposals 63
rate at Board meetings and actively participated in deliberations
on major corporate matters and review of key information disclo- Meetings of Audit Committee 4
sures ensuring compliant and efficient decision-making. Deliberating proposals 10
17 18Protection of Shareholders’ Rights and Interests Routine communication Regular engagement
Suofeiya has always placed the protection of shareholders’ rights and interests at the core of corporate governance with particular We organized/attended over 300 regular exchanges with We held high-quality annual performance briefings actively
emphasis put on safeguarding the legitimate rights and interests of minority shareholders. We strictly comply with laws regulations and institutional shareholders dedicated investor receptions participated in online investor open day events organized by
regulatory requirements including Company Law of the People’s Republic of China Code of Corporate Governance for Listed Compa- online seminars offline strategy conferences and other regulatory authorities and delivered two dedicated investor
nies and Guidelines for the Articles of Association of Listed Companies. Upholding the core principle of “investor-centricity” we keep activities maintaining regular interactions with investors. communication sessions focusing on periodic financial
optimizing corporate governance structure improve the quality of information disclosed enhance investor relations management refine results precisely responding to market concerns.shareholder return mechanism and faithfully fulfill our primary responsibilities and social obligations as a listed company striving to build
an outstanding benchmark enterprise featuring regulated governance transparent information and stable returns deserving investors’
long-term trust. Interactive responses Two-way communication
We promptly updated shareholder register and monitored The Board Office submitted regular feedback reports based
Information Disclosure: Protected Investors’ Right to changes in shareholder structure. During the reporting on industry updates and capital market trends to keep the
period we responded to 34 investor inquiries on Shenzhen senior management informed of core investor concerns and
Information with High-standard Transparency Stock Exchange Interactive Platform timely handled hotline market dynamics forming a closed-loop mechanism ofconsultations and updated operational progress via new “market demands → management responses → corporateWe take information disclosure as a fundamental measure for safeguarding investors’ rights and interests. In strict compliance with media channels such as official WeChat account ensuring actions → market feedback”. This enables in-depth integra-
regulatory requirements including self-regulatory guidelines for companies listed on the Shenzhen Stock Exchange we have improved uninterrupted communication with stakeholders. tion between capital empowerment and business operations.our information disclosure system clarifying the scope procedures and accountability of disclosure to ensure the authenticity accuracy
completeness timeliness and fairness of all disclosed information. By regulating disclosure procedures and strengthening internal
reviews we fully enhance the openness and transparency of our operations so that investors can promptly and clearly understand the Shareholder Returns: Shared Development Results Protected
Company’s operating performance development strategies and major matters thereby fully protecting their right to information.by a Stable Mechanism
During the reporting period we released a total of 44 numbered announcements including 6 periodic reports and 38 ad-hoc announce-
ments. All disclosed information featured clear logic accurate data and detailed content. Thanks to our consistent dedication and
outstanding performance in information disclosure we once again obtained the highest Grade A rating in information disclosure from the Since its listing in 2011 Suofeiya has always adhered to the core commitment of “sharing development results with shareholders” and
Shenzhen Stock Exchange in 2025 being one of the only 33 listed companies across Shanghai Shenzhen and Beijing stock markets attached great importance to the sustainability and stability of shareholder returns. We implement a dividend policy centered on Profit
that have maintained a Grade A rating for 12 consecutive years or longer and the only enterprise in the home furnishing industry to Distribution Measures and Suofeiya Long-term Shareholder Return Plan which clarifies the principles proportions methods and
achieve this honor. Going forward we will continue to elevate the quality of information disclosure with higher standards consolidate the adjustment mechanisms for profit distribution providing a solid institutional guarantee for shareholder returns.foundation of regulated operations and drive high-quality development as a listed company. When formulating dividend plan we take into account multiple factors such as operating performance financial position cash flow level
and future development plan. On the premise of ensuring the Company’s sustainable operation and long-term growth we maximize
6 Maintained a Grade A rating for benefits for shareholders. From 2011 to 2024 we distributed a cumulative cash dividend (including share repurchases) of CNY 6.402 Periodic reports Ad-hoc announcements 38 12 consecutive years or longer billion to shareholders honoring our commitments to investors with tangible returns and demonstrating our solid operational strength as
well as the fundamental stance of being accountable to shareholders. Going forward we will continue to strictly implement established
dividend policy and further optimize our shareholder return mechanism enabling investors to share long-term dividends from our
high-quality development.Investor Relations Management: Built Trust Through Multi-di-
mensional Communication Dividend amount (unit: CNY 100 million)
12.00
We regard investor relations as a vital bridge connecting the Company with the capital market. Upholding the principles of transparency
fairness and impartiality we implement a comprehensive investor communication system and strictly implement Investor Relations 10.00
Management Policy. There is a dedicated team to maintain investor relations and deepen positive interactions with investors through
8.00
diversified channels which serves to fully safeguard investors’ right to information and enhance shareholders’ trust and sense of
participation. 6.00
We offer a rich convenient communication matrix for investors covering hotline dedicated email inbox Shenzhen Stock Exchange
4.00
Interactive Platform Investor Relations section on our official website media interviews performance briefings offline research visits
and online investor open days. These channels ensure investors can access information and voice their needs through familiar means. 2.00
Our investor relations team promptly feeds industry updates and capital market concerns back to the senior management striving to
foster interactive harmonious investor relations. During the reporting period remarkable results were achieved in investor relations 0.00
management : 2011 2012 2013 2014 2015 2016 2017 2018 2010 2020 2021 2022 2023 2024
19 20Iteration and Upgrade of Institutional Framework
Operational Compliance and Business Ethics
We attach great importance to dynamic optimization and improvement of our institutional framework. During the reporting period we
conducted a comprehensive review and compliance assessment of 2106 policies and regulations. In response to industry trends
Since its establishment Suofeiya has always regarded operational compliance as the cornerstone and lifeline of its survival and devel- regulatory policy updates and business expansion needs we created or revised a total of 374 policies representing a revision rate of
opment. We uphold the core philosophy of “compliance and integrity in operations” run a full-dimensional internal control system and 82.6%. Among them 226 policies are ESG-related fully covering key areas including R&D production manufacturing innovation
reinforce multi-layer risk prevention lines ensuring all business activities are carried out in accordance with applicable laws regulations occupational health safety environmental protection quality control and human resources. This has laid a solid institutional foundation
and regulatory requirements to underpin the Company’s sustainable and high-quality development. for integrating ESG concepts into our entire business process and achieving sustainable development.We strictly obey the Company Law of the People’s Republic of China the Securities Law of the People’s Republic of China the Code New and Amended 374 Rate of resolution of 82.6 ESG-related % 226
of Corporate Governance for Listed Companies and other relevant laws regulations and normative documents. Our comprehensive Regulations regulatory amendments policies
internal management systems cover governance operation risk control etc. including Articles of Association Rules of Procedure for
Shareholders’ General Meetings Rules of Procedure for the Board of Directors Information Disclosure Management Policy and
Building of International Compliance Capabilities
Internal Audit System which form a solid compliance foundation featuring sound systems regulated processes and clear accountability.Meanwhile we implement a three-pronged risk prevention framework consisting of Audit Department Supervision Department and To support our global expansion we have continuously strengthened compliance management of international business. On October
Legal Affairs Department which feature clear division of responsibilities and close collaboration. Thus a full-cycle compliance and risk 23 2025 we officially obtained China Customs Advanced AEO Certification which marked our import and export compliance
control closed loop is in place which covers pre-event prevention in-event control and post-event supervision. management has reached international advanced standards. We have also established a “1+9” import and export management
system realizing refined compliance control covering the entire process of import and export:
During the reporting period the three lines of defense continuously empowered business units. Through regular risk identification
professional risk assessment targeted risk management ongoing supervision and improvement we strengthened the effectiveness
and enforcement of internal control and drove the simultaneous enhancement of our overall management capabilities and risk preven- 1 core management policy 9special administrative measures/processes
tion capacity.Clarify the fundamental principles management requirements Set refined operational standards for key links including supply
organizational responsibilities and compliance bottom lines for chain security document and data management premises and
import and export serving as the overall framework for compliant + goods control capability building communication and collabora-
corporate governance. tion as well as continuous improvement. A regular internal audit
Audit
Department and self-inspection mechanism for import and export has also
been established to reinforce customs compliance and ensure
steady compliant international trade activities.Compliance Legal
Department epartment Process Optimization and Efficiency Improvement
Following the core goal of realizing “controllable risks and higher efficiency” Audit Department actively promoted business process
optimization and approval authority restructuring. While strictly managing compliance risks it systematically streamlined and optimized
core business workflows restructured approval mechanism eliminated redundant procedures and clarified approval nodes. These
Compliance-Based Risk Control: Built Solid Risk Barriers Through Insti- efforts have delivered remarkable improvements in operational efficiency: average approval time was shortened by 58% overall opera-01
tutional Improvements and Process Optimization tional efficiency increased by 43% and expected goals of “cost reduction efficiency improvement and quality enhancement” were
effectively achieved.Audit Supervision and Rectification of Identified Issues Average approval time for processes 58 Overall operational efficiency across has been reduced by % the company has improved by 43%
In 2025 targeting key management areas and high-risk links Audit Department systematically conducted routine audits special audits
and internal control tests realizing comprehensive and multi-layered supervision. For the problems identified during audits weperformed closed-loop management covering “problem listing rectification plan formulation responsibility implementation and In the future Audit Department will further deepen the integration of internal control systems with ESG management refine risk controlreview and acceptance” strengthened supervision over rectification efforts and ensured timely corrections and root-cause remedi- mechanism and strengthen compliance supervision to help elevate the Company’s overall governance capabilities and steadily
ation. During the reporting period the timely completion rate of rectifications reached 100%. advance toward a new stage of sustainable high-quality development.
21 22Based on investigation results we terminated employment contract or imposed disciplinary sanctions on 15 employees while reserving
02 Business Ethics: Cultivated an Integrity Ecosystem Through Systematic the right to pursue their legal liabilities. For business partners committing illegal acts such as bribery and fraud we immediately terminat-
Endeavors to Consolidate Compliance Foundations ed cooperation with them pursued their liability for breach of contract referred serious cases to judicial authorities and added them to
integrity blacklist with a lifelong ban on future cooperation.In 2025 we further prioritized business ethics and integrity culture as core pillars of sustainable development. Upholding “institu-tion-driven technology-empowered and people-oriented across all staff” guiding principles we systematically built the ecosystem of Offered Full-scale Integrity Education to Foster Employee Awareness
anti-bribery anti-corruption and anti-unfair competition. Business ethics were integrated into the entire spectrum of internal manage-
ment and external cooperation to foster a clean business environment thus underpinning the Company’s long-term value-based We place great emphasis on integrity awareness and warning education offering integrity education for both internal employees and
development. external partners to embed business ethics and an integrity-driven culture deep into their daily practices. In 2025 we issued circulars ontypical cases of violation on internal platforms launched integrity promotion initiatives themed “Upholding Integrity for Steady Prog-ress and Long-term Success” and delivered 11 offline integrity training sessions. Also we gave mandatory online integrity courses
Continuously Improved Institutional Systems to Build a Full-Scale Governance Framework
and organized related assessments to strengthen learning outcomes. Throughout the year 11323 participation was recorded in
employee integrity training and promotion achieving 100% staff coverage.In line with laws and regulations including the Criminal Law of the People’s Republic of China the Anti-Unfair Competition Law and the
Anti-Money Laundering Law we have revised and issued internal policies including the Suofeiya Employee Code of Conduct Suofeiya
Additionally we promoted integrity-based cooperation at supplier conferences partner exchanges and more sharing our experience
Detailed Rules on Employee Integrity Management and Suofeiya Measures for Reporting and Rewards based on our business realities.in integrity management and typical cases to extend integrity culture across our entire supply chain and guiding all stakeholders to build
All our employees have signed Suofeiya Employee Integrity Agreement which ensures integrity requirements are enforced throughout
a business ecosystem featuring “integrity compliance and mutually beneficial cooperation”.every stage of employment.For external partners we implement Administrative Provisions on Integrity Cooperation with Business Partners. Integrity standards are Routine 8 Tender 45 Reports received 26 ，Case closure rate100%emphasized in supplier and distributor meetings. To date more than 600 business partners have signed our Integrity Agreement for inspections supervision
Business Partners which clarifies ethical responsibilities on both sides outlines risks of violation and specifies legal consequences.Thus a comprehensive institutional framework covering both internal staff and external collaborators has been formed. 11 in-person integrity training sessions were heldreaching 11323 participants
with integrity education coverage reaching 100%
Implemented Full-process Supervision for Targeted Risk Prevention and Control
During the reporting period we furthered full-cycle supervision covering pre-event prevention in-event supervision and post-event 03 Intellectual Property Protection
accountability. Priority was given to proactive risk prevention which combined with passive response mechanisms such as complaint
handling constituted closed-loop control and enhanced risk management efficiency.Suofeiya has always regarded intellectual property protection as the core lifeline of innovation-driven development. By refining manage-
Leveraging digital tools including financial data sharing platforms and internal work portals we conducted routine compliance oversight
ment systems strengthening rights protection actions and enhancing brand value maintenance we have built a full-spectrum
through targeted special inspections regular patrol audits and daily supervision. Throughout 2025 we carried out 8 routine patrol audits
intellectual property protection framework covering “registration rights protection and cultural guidance” fostering a sound
across all departments branches and subsidiaries and completed risk identification and closed-loop rectification. We also supervised
corporate environment that emphasizes integrity in operation respect for innovation and strict protection of intellectual property.
45 tender activities through online monitoring and on-site oversight. These endeavors have effectively prevented fraud risks across key
links including management operations manufacturing and procurement. Suofeiya and its affiliates have registered 2072 trademarks in China forming a robust trademark protection network covering core
brands product categories and business scenarios. This provides solid backing for brand value inheritance and market expansion. As
For external business partners we conducted proactive screening plus dynamic control. We monitored their performance in business
for rights protection “Sofia” recognized as a well-known trademark has obtained judicial and administrative protection on 134 occa-
ethics through supply chain inspections random sampling and special verification and incorporated business ethics evaluation into our
sions in total which underscores its benchmark status in intellectual property protection.regular partner assessment. Early warnings were issued for partners with potential compliance risks and investigation-driven rectifica-
tion was promoted. In 2025 we won a retrial involving an administrative review dispute over trademark cancellation heard by the Supreme People’s Court.This victory not only effectively safeguarded Suofeiya’s legitimate rights and brand reputation but also further consolidated its competi-
tive advantages and industry standing. Meanwhile we actively filed multiple civil lawsuits against trademark infringements to severely
Promoted Rectification Through Supervision to Firmly Uphold Integrity Bottom Lines curb unfair competition through judicial channels. By keep reinforcing intellectual property protection we not only safeguard our own
innovative development but contribute to sound industry competition and a healthy orderly market environment.In 2025 Supervision Department received internal and external report clues through multiple channels including Suofeiya’s official
website dedicated reporting email and hotline. The reports covered irregularities involving internal employees and integrity violations by
business partners. Throughout the year a total of 26 reports on violations and illegal acts were handled all of which have been fully Registered Trademarks 2072 Record of Trademark Protection 134
investigated and closed.
23 24Meanwhile efficient customized cybersecurity solutions are in place integrating core security components including network access
Privacy and Information Security control antivirus software firewalls virtual private networks internet behavior management systems file scanning and monitoring
bastion hosts and system backups. Our three-in-one management covers information system administration cybersecurity
mechanism and access control which comprehensively strengthen data and information security management from technical archi-
Suofeiya highly values privacy protection and information security management and strictly complies with laws regulations and regula-
tecture to operational procedures.tory requirements including the Personal Information Protection Law of the People’s Republic of China the Consumer Rights and
Interests Protection Law of the People’s Republic of China the Self-Assessment Guidelines for Illegal and Improper Collection and Use Major information security incidents: 0
of Personal Information by Mobile Applications and the Provisions on the scope of Necessary Personal Information for Common Types
of Mobile Internet Applications. Upholding the principle of “security compliance and privacy first” throughout all business process-es we run a comprehensive information security and privacy protection system characterized by “well-established mechanisms 01 Security Defense Frameworkorganizational guarantees advanced technologies and closed-loop management” effectively safeguarding customer informa-
tion business data and the Company’s core assets. In line with actual business demands and risk prevention requirements we have designed and built an all-scenario information security
system. On this basis we gradually improve our security protection capabilities to achieve full-process security coverage endeavoring
Our full-range information security management covers emergency response daily supervision to ensure the stable operation of our information systems and the security of our data assets.and technical specifications. We follow a complete set of policies and detailed rules including
Information System Emergency Response Plan Security Management Rules for Business
Security Management Standards
Systems Computer Room Safety Management Regulations Terminal Computer Protection
External Security Defense and Responsibility System
Rules and Data Security Management Specifications. Business and customer data are A F
Network access mechanisms antivirus Emergency plans security checks and
managed on a classified and graded basis with clear risk prevention measures in place and
software firewalls virtual private networks records security training security risk
operational standards defined. Supporting policies such as Emergency Response Plan for (VPN) bastion hosts vulnerability manage-
or
k Sy identification internet behavior managements
Sudden Environmental Incidents and Measures for Environmental Information Reporting ment w
Management have been improved to coordinate between information security and compliance.System Security Construction 0 information Data Privacy Management
B security incidents E
For organizational support we run Information Security and Confidentiality Management Com- Information system management and recorded Data classification dynamic data
network security mechanisms permis- desensitization market terminal tool
mittee which sets up Security Management Department and have professional security admin- sion control code encryption protec- development to prevent data loss
d riin d
istrators. The management committee clarifies the overall objectives management scope core tion system backups system stability g - r gye mme nolo verdia ht Tec ls o
Our computer room ion vai pre
principles and security framework for security work and takes full charge of the construction
Data Security Management C D Availability
operation maintenance and upgrading of information security systems. This forms a well-de-
Data backup and recovery regular inspections Network redundancy network equipmentfined management structure featuring “overall coordination at the decision-making leveland automated monitoring sensitive information backbone line upgradesimplementation at the executive level and supervision at the oversight level”. encryption storage secure data flow control file
security systems
2526
Net
v
a en nu ga ol vo ep re nr aa nt cio en
m
te
e
ec
n p
r
ent
io
Prev02 Objective Wall 03 Adaptive Technology Upgrading
Keeping pace with upgrades in information security technologies we have enhanced security defense capabilities through cutting-edge
Based on the overall framework of information security manage-
technologies and refined management measures:
ment system we has set high-standard information security Network availability rate
management objectives by factoring in security influencing 99.99%
factors applicable scenarios and technical requirements and A B
promoted their full implementation to achieve comprehensive
security coverage with zero security incidents. Information Host Deployed high-availability architecture for critical systems Adopted world-leading Veritas backup solution to
Security availability to ensure the continuous operation of core businesses and ensure sound data backup and guard against the risk of
rate
Building on the overall framework and in light of the characteristics 0 prevent disruptions to daily operations and potential data data loss;99.99 security risks caused by system outages;of industry risks business demands and technological trends we Incidents %
have formulated stringent information security managementobjectives with the core requirement of “zero information secu-rity incidents”. Corresponding quantitative indicators have also
been defined. Through regular monitoring periodic evaluation and
Database availability rate
dynamic optimization all security objectives are fully delivered
realizing blind-spot-free security control and thorough risk 99.99%
prevention with no omissions.C D
Extensively used data desensitization technologies and Proactively optimized our Privacy Policy for mini-pro-
tools in processing customers’ personal information and grams following the principle of “minimum necessity”
sensitive business data preventing customer information clarifying the scope of personal information collected
leakage risks at the source without affecting normal business applicable usage scenarios and protection measures to
operations; ensure that customer information is collected moderately
used restrictedly and protected effectively thus fully
safeguarding users’ right to information and right to
choose;
E F
Deployed professional monitoring software such as Zabbix Implemented all-round zero-threat security control and established an anomaly alert mechanism to realize measures: deploying Kaspersky Antivirus to strengthen
real-time monitoring of system operating status and timely endpoint protection by blocking unauthorized device
detect and resolve potential faults thereby guaranteeing the access via endpoint admission control system and prohib-
reliable operation of our business systems; iting the use of unlicensed software and deploying Sangfor
internet access management device to intercept illegal
network access and build multi-layered and comprehen-
sive endpoint and network security lines of defense.Over the years we’ve continuously scaled up investment in information security to improve management systems upgrade technical
solutions and optimize control processes. All relevant procedures and indicators have been regulated which provide solid guarantees
for digital business operations and high-quality development and fully enable information security to underpin and safeguard our
business activities.
27 2803公司可ENV持IRO续NM治EN理TA与L SU合ST规AIN运AB营ILITYIdentifying the Risks and Opportunities of Climate Change
Transition Risks
Risk Category Risk Description Response Measures
As global and domestic governments accelerate the Strengthen carbon emission compliance monitoring; optimize
implementation of climate policies such as carbon carbon emission intensity in production and supply chain
trading and carbon taxes if the company fails to processes; provide regular training for employees and suppli-
comply with carbon-related regulations in a timely ers to enhance their response to climate policies; advance
Policy and manner it may face regulatory fines increased green smart manufacturing processes to ensure compliance
compliance costs and a decline in market trust. and reduce risks.Legal Risks
The introduction of carbon emission rights control and Continue implementing energy-saving and emission reduction
adjustment mechanisms worldwide may lead to strategies closely monitor carbon pricing mechanisms in the
increased business operations and financial costs. countries where assets are located and globally and proac-
tively and flexibly meet challenges.Failure to invest in low-carbon environmental technol- Introduce and cultivate professional talent strengthen technol-
ogy R&D. ogy imports actively engage in external learning and enhance
Technology R&D capabilities.Risks
Failure to timely identify and apply low-carbon technolo- Continuously research and apply low-carbon technologies
gies resulting in the company’s products lagging and actively engage in industry collaborations.behind competitors in low-carbon transformation.Failure to effectively meet consumer demand for green Actively develop green low-carbon products to meet consumer
low-carbon products. demand.Low-carbon development and the circular economy have become core global consensuses on sustainable development which are also Market Risks Promote resource conservation and recycling; strengthen supply
Rising costs of raw materials and energy.inevitable paths for corporate high-quality growth. Suofeiya has always taken environmental protection as a core business philosophy. chain management.We thoroughly practice the development vision that lucid waters and lush mountains are invaluable assets steadily advance the building Poor performance in addressing climate change and Enhance the company’s sustainable development capabilities
Reputation
of an eco-friendly enterprise and fully integrate sustainable concepts including low carbon development energy conservation greening sustainability leading to damaged company reputation proactively respond to climate change; increase transparency in
Risks
and circularity into our entire business process covering R&D design manufacturing supply chain management logistics and transpor- and negative feedback from stakeholders. related management and actively address concerns raised by
stakeholders.tation and terminal services with ongoing endeavors made to explore carbon reduction pathways across the value chain. We also
actively promote green production methods and business models proactively respond to climate challenges and earnestly fulfill
environmental responsibilities as a corporate entity committed to contributing to a greener win-win and sustainable future for all togeth-
er with supply chain partners consumers local communities and other stakeholders. Physical Risks
Risk Category Risk Description Response Measures
Climate Actions Extreme weather may damage factory office building Develop emergency response plans for natural disasters and Acute Risks structures and equipment causing asset loss. continuously improve the emergency response mechanism.
(Extreme Weather
such as Storms Equipment damage employee inability to work and Provide training on responding to and protecting against extreme
As global issues such as global warming frequent extreme weather events and rising sea levels grow acute climate change has
Floods Typhoons) transportation interruptions due to extreme weather may weather events continuously improve the natural disaster
become a core factor affecting corporate sustainable development. We actively respond to national strategic goals of peaking carbon affect stable production. emergency response mechanism.emissions and achieving carbon neutrality by incorporating climate actions into our medium and long-term development strategies.Guided by documents including the Opinions of the CPC Central Committee and the State Council on Fully and Accurately Implementing Rising temperatures increase the company's cooling Upgrade energy-efficient cooling systems and use environmen-
demand raising operational costs. tally friendly equipment to reduce energy consumption.the New Development Philosophy to Deliver Carbon Peaking and Carbon Neutrality Goals and Action Plan for Carbon Dioxide Peaking
Chronic Risks
Before 2030 we advance targeted initiatives to address climate change.(Sustained High Employee health and work efficiency are impacted by Scientifically arrange production schedules organize production
prolonged exposure to heat. efficiently and improve operational efficiency.In 2025 we further aligned ourselves with the recommendations of Task Force on Climate-related Financial Disclosures scientifically Temperatures
Droughts)
identifying climate-related risks and opportunities associated with our business operations and strengthening our climate risk manage-
Long-term droughts may lead to insufficient water supply Continuously promote water-saving environmental upgrades
ment. While realizing low-carbon operations we continuously enhanced our resilience and adaptability to climate change which injects affecting the stability of production and operations. avoid building factories in areas with high water supply risks and
strong momentum into societal green low-carbon transition and sustainable development. strengthen water reserves.
31 32Climate Change Opportunities EHS Policy and Management
Opportunity Category Opportunity Description Response Measures
Actively explore the development or application of new
Resource Efficiency Higher energy-efficient equipment buildings and
technologies equipment and processes to fully 01 EHS Vision and Objectives
technologies; supportive policy incentives. improve resource efficiency; proactively respond to
government supportive policies and green projects.Promote energy efficiency optimization in processes to
Energy Efficiency Substitution of renewable energy sources. reduce energy consumption and greenhouse gas
emissions.Development of green low-carbon products; climate Strengthen low-carbon technology R&D and increase
Products and Services
change response solutions within the industry. investment in the development of green low-carbon Vision Objectives
products.Build excellent EHS operation systems and foster Zero major safety accidents zero major fire
Access to emerging markets; increasing demand for Increase the share of green low-carbon products; a safe healthy eco-friendly and sustainable incidents and zero regulatory non-compliance
Market green markets. identify and participate in emerging markets.working environment and corporate culture
Energy substitution and diversification solutions; Promote the development and utilization of renewable Adaptation
participation in renewable energy projects. energy. 02 Management System Optimization
In 2025 we further optimized our institutional framework in response to actual EHS management needs and industry development
Greenhouse Gas Emissions from Suofeiya's 8 Production Bases in 2025 (Unit: tCO2e) trends. New regulations were introduced including Suofeiya Management Measures for Safety in Maintenance Suofeiya Management
Measures for Logistics Safety and Suofeiya Management Measures for Electrical Safety. Meanwhile core existing policies were
Direct Greenhouse Gas Indirect Greenhouse Gas Total Greenhouse Gas
Production Base
Emissions (Scope 1) Emissions (Scope 2) Emissions (Scope 1 + Scope 2) improved such as Suofeiya Management Measures for Personal Protective Equipment Suofeiya Management Measures for EHS
Information Reporting Suofeiya Management Measures for EHS Supervision and Inspection Suofeiya Management Measures for EHS
South China
Production Center 464.85 4926.11 5390.96 Education and Training Suofeiya Management Measures for Hot Work Safety Suofeiya Management Measures for Safety in High-alti-
Central China tude Operations Suofeiya Management Measures for Safety in Confined Space Operations and Suofeiya Management Measures for
Production Center 343.11 3635.99 3979.10 Workplace Safety Incident Handling and Assessment. Through dynamic updates of regulations we further improved our full-scope EHS
East China
288.34 3055.56 3343.90 management covering environmental protection occupational safety and occupational health to be better aligned with current produc-Production Center
tion and operational needs as well as management requirements. This provides solid institutional support for regulated and streamlined
Western
Production Center 243.32 2578.49 2821.81 EHS implementation.North China 167.85 1778.75 1946.60
Production Center 03 EHS Management Responsibilities
Lankao Production Base 237.18 2513.48 2750.66
We have set clear responsibilities for EHS management and built a full-chain accountability system to ensure the orderly progress of
Qiqihar Production Base 19.27 204.15 223.42 EHS affairs:
Promote and implement national guidelines policies laws regulations and standards on EHS and supervise strict implementation by departments and
Jinhua Production Base 14.98 158.69 173.66 employees concerned;
Formulate annual work plans and implementation schedules for workplace safety in alignment with the Company’s development strategy and operational
reality then organize and guide all departments in their execution;
Improve EHS rules regulations and job accountability system clarify EHS responsibilities at all levels and for all positions and ensure effective implementa-
tion through regular inspections and ongoing supervision;
Track safety hazard rectification progress issue clear corrective requirements for violations and hidden risks identified during inspections and hold
accountable departments to complete rectifications within specified deadline;
Participate in review evaluation and final acceptance of EHS facilities for new reconstructed and expanded projects;
Conduct centralized statistics root-cause analysis and official notifications of safety and environmental incidents across departments summarize lessons
learned and promote the improvement of prevention and control measures;
Organize special EHS inspections routine inspections and other safety audits to prevent potential accidents;
Promote the application of modern safety management methodologies lead the certification and maintenance of occupational health and safety manage-
ment system and environmental management system and keep enhancing the Company’s professionalism in overall EHS governance.
33 3404 Practices for Workplace Safety Strengthened Safety Training and Fostered a Safety-Oriented Culture
We offer tiered and categorized safety training for employees including regular three-level safety induction for new employees safety
We have always prioritized employee safety and corporate property security. A full-chain safety framework covering responsibility training on new processes equipment materials and operations as well as special training on hazardous waste management rainwater
implementation risk control emergency response and awareness enhancement is in place to offer comprehensive safeguards for and sewage pipe network management special operation personnel occupational health and first-aid skills. All to ensure employees
production fire protection occupational health and environmental protection across all dimensions. are equipped with the safety knowledge and operational competencies required for their roles.Meanwhile we regularly organize themed EHS activities including Workplace Safety Month World Environment Day Occupational
Consolidated Full-staff Safety Responsibilities and Clarified Management Boundaries
Health Promotion Week and Zero-Safety-Incident Campaign. Through hands-on drills knowledge contests case sharing and
We execute a full-staff workplace safety accountability mechanism centering on “three jurisdictions and three accountabilities”. other diverse initiatives employees are guided to actively engage in safety management. In this way their safety awareness and sense
There are clear responsibilities for managers at all levels and in all areas within their jurisdiction. Through responsibility listing and regular of accountability are strengthened and a corporate safety culture featuring full engagement and shared responsibility across all staff is
performance assessments safety obligations are clearly deployed down to individuals which eliminates unassigned or hollow responsi- fostered.bilities.Fortified Safety Barriers Through Multi-dimensional Risk Prevention and Control
Technical and facility prevention
All our factories adopt an interlocking and linked fire safety control system improve full-scenario monitoring
networks and strengthen the safety management of production facilities and equipment through technical
upgrades to reduce potential safety risks.Dual prevention mechanismsWe strictly enforce the dual prevention system of “hierarchical safety risk control + hazard inspection andrectification”. Some of the measures taken include fully identifying risks at work sites posting safety warning
signs in high-risk areas to visualize risk management implementing strict approval procedures for hazardous
operations such as hot work working at height and working in confined space and assigning dedicated We have obtained certifications for occupational health and safety
personnel to supervise the entire operation process to prevent accidents caused by irregular practices. management systems like ISO 45001 and OHSAS 18001 as well as
production safety systems. Empowered by authoritative third-party
Regular inspections and supervision certifications we regulate safety management on an ongoing basis"
We perform comprehensive inspections at a high frequency including special inspections seasonal → "continuously" to ensure the stable and effective operation of our
inspections holiday inspections daily team-level inspections weekly workshop-level inspections and safety management systems and provide a solid institutional guaran-
monthly factory-level inspections to timely detect and eliminate hidden dangers and keep improving tee for workplace safety.workplace safety performance.Digital dynamic management and control
Unsafe acts halted across Unsafe conditions addressed across Factory visits
By collecting on-site facility data identifying hazard sources and recording identified risks to form digital safety risk maps safety staff and regional manag- production bases/factories production bases/factories
ers can monitor the distribution and real-time status of hazard sources across factories enabling dynamic dual prevention. Safety responsibilities arefurther delegated to frontline departments forming a management model featuring “supervision by safety department and implementation by account- 190 million+ 180 million+ 26able departments”. This drives a fundamental shift in safety culture from passive compliance to active self-management. Opportunities for improvement identified Safety hazard inspections across EHS training sessions delivered
in factory inspections production bases/factories
Improved Emergency Management Systems and Enhanced Response Capabilities 1763 759 1
We refine our response systems for sudden safety incidents and environmental emergencies and execute a full set of emergency Best practices by production Government inspections across Key EHS projects promoted
management regulations covering emergency principles institutional arrangements operational mechanisms emergency support and bases/factories production bases/factories
contingency plans. At least seven comprehensive or special emergency drills are organized every year simulating scenarios such as 328 62 15
fire outbreaks equipment failures and hazardous waste leakage to strengthen employees’ emergency response skills and coordina-
tion capabilities. This ensures unexpected incidents can be handled efficiently within a controlled scope and builds a solid emergency
safety net for all staff.
35 3602 Energy Management
Consistent endeavors are made to strengthen employees’ awareness of energy conservation and consumption reduc-
tion including regular training sessions for the purpose of spreading knowledge on energy efficiency. We also actively
develop and apply new technologies and processes optimize production workflows and upgrade technologies for
high-energy-consuming production sections. Additionally increased investment is made in energy-saving retrofits. By
adopting clean energy substitution equipment upgrades etc. we have steadily reduced energy consumption per unit of
output value.Photovoltaic Power Generation
Since 2017 we have vigorously promoted rooftop solar project
at our factories. Eight of our production bases are now
equipped with grid-connected distributed photovoltaic
Resource Consumption and Management system which cover a total area of approximately 434000
square meters effectively replacing conventional energy
Suofeiya attaches great importance to the development and implementation of energy management systems and strives to build an sources.energy-saving and eco-friendly enterprise. A regulated framework for resource management has been established by keep refining
In 2025 our photovoltaic power generation increased by
regulations including Environmental Protection Management Policy Energy Conservation Management Policy and Energy Manage-
22.9% year-on-year. About 26.15 million kWh of green
ment Policy. A full range of energy-saving and emission-reduction measures have been implemented to strengthen energy water
electricity was supplied to us and national power grid equiva-
resources wastewater and waste management. Efforts are also exerted to promote collaborative green development across the supply
lent to reducing 26075 tons of CO 2 emissions and saving
chain.
9676 tons of standard coal. From 2017 to 2025 our photo-
Leveraging advanced technologies and intelligent equipment we explore green production processes advance green procurement and voltaic system provided about 118.23 million kWh of green
lightweight packaging and keep improving the efficiency of resource recycling. In addition firm actions are taken to advance cleaner electricity achieving remarkable results in clean energy
production energy conservation and emission reduction. Integrated use of clean energy such as photovoltaic power and natural gas is substitution.actively scaled up to reduce reliance on fossil fuels and contribute to global greenhouse gas reduction efforts.
2615 million kWh of green electricity
01 Water Resource Management
26075 tonnes of CO 2 emissions reduced
All our factories use tap water for production with no groundwater or alternative water sources consumed. The water
supply is sufficient and stable and production has never been interrupted by water resource constraints.
9676 tonnes of standard coal saved
Adhering to the principles of “reduction recycling and harmless treatment” we systematically promote the reuse of
water resources. Starting from 2019 we have fully employed neutral catalytic oxidation treatment technology and high-effi-
ciency dewatering equipment to treat wastewater and launched reclaimed water reuse in multiple production bases. “Oil-to-Electric” Conversion Project
Advanced-treated wastewater is reused in spray towers water curtain cabinets etc. having effectively reduced tap water
To reduce energy consumption and air pollutant emissions
consumption at the source.we have steadily advanced oil-to-electric transition since
6015 2017 phasing out fuel forklifts and fully embracing electric In 2025 we used tons of recycled/reclaimed water. forklifts. During the reporting period we deployed 242 electric Electric forklift 0.41% Diesel forklift
forklifts achieving an electric forklift replacement rate of 99.59% 1
From 2022 to 2025 we saved totally 28960 tons of tap water. 99.59% and realizing low-carbon transformation in transpor- 242
tation stage.
37 3803 Treatment of Three Wastes
We run a full-process framework for wastewater waste gas and solid waste treatment. Third-party institutions are commissioned Wastewater Management
to conduct relevant testing on a regular basis. Core environmental KPIs are followed including reuse rate of production waste-
water hazardous waste disposal rate and compliance rate of waste gas. Environmental data such as air pollutant emissions and We integrate wastewater treatment with water resource recycling. Focusing on process control a range of water-saving
production wastewater reuse amount are statistically monitored monthly ensuring the three types of waste discharges are measures are implemented. Wastewater reuse system is built and sewage treatment facilities are upgraded to lower wastewater
controllable and traceable to reduce our environmental impact. discharge and sludge generation.Our wastewater management combines UASB treatment anaerobic digestion aerobic treatment and advanced sand filtration.Exhaust Emissions 100 Wastewater Discharge 100% Paint-containing wastewater is pre-treated in collection conditioning reaction and sedimentation tanks then diverted to regulat-Compliance Rate: % Compliance Rate:
ing tanks together with other wastewater. After experiencing flocculation and impurity removal in air flotation tanks and static
sedimentation in primary settling tanks the water is blended with pre-treated domestic sewage in comprehensive regulating tank.Noise Emissions 100 Solid Waste Disposal % It then undergoes biochemical treatment through integrated sewage treatment equipment followed by advanced purification in Compliance Rate: Compliance Rate: 100%
sand filtration tanks before reaching discharge standards. Residual sludge is transferred to sludge tanks for centralized disposal.Our daily wastewater treatment capacity reaches 6-8 m3 per day.Waste Gas Treatment Chemical
Addit ion Collection and Adjustment Hydrolysis Acidification Tank UASB Anaerobic Reaction Production
Reaction Sedimentation (Renovation of Existing Inclined Tank (Renovation of Existing
In response to national requirements for heavy pollution weather control and Wastewater
Tank (New) Tube Sedimentation Tank) Hydrolysis Acidification Tank)
summer ozone emission management we have comprehensively upgraded
waste gas treatment facilities and processes across all factories to realize Sludge Discharge
refined emission governance.Multi-Stage Contact
Sludge Return
Oxidation Tank (Renovation
of Existing Tank)
Supernatant to
Collection Well
High-standard waste gas treatment equipment is employed to reduce emissions of volatile Sludge Return BlowerEnd-of-pipe organic compounds sulfur dioxide nitrogen oxides particulate matter etc. “Dedusting + RTO Mud Cake for Filter Presstreatment External Disposalprocess” are applied in newly built facilities which achieve an organic waste gas removal efficiency Secondary Settling Tank
(Existing)
above 90%.By implementing low-nitrogen combustion for boilers our nitrogen oxide emission concentration
Emissio dropped from 71 mg/m
3 in 2022 to 21 mg/m 3 in 2023 representing a reduction of over 70%. Exhaust
reduction retrofits ventilation and activated carbon adsorption systems were installed at hot-melt adhesive heating Intermediate Tank 2 Neutral Catalytic Oxidation Tank Intermediate Tank 1
zones on edge banding machines to reduce emissions of volatile organic compounds. (Renovation of Existing) Chemical (New) (Renovation of Existing)
Addit ion
Real-time online volatile organic compounds monitoring system facility early-warning system and
audible and visual alarms have been deployed to ensure timely troubleshooting. The initiative of
Monitoring and replacement by raw materials with low volatile organic compounds content was implemented which
Sand Filter Tank + Carbon Clean Water Tank (Renovation Compliant
source control has reduced emissions of volatile organic compounds and particulate matters by more than 85%
Filter Tank (Existing) of Existing Sludge Tank) emissions
year-on-year due to the adoption of advanced auxiliary materials optimized processes and
secondary powder recovery devices.
39 4001 Powered by Intelligence Led by Greenness
Solid Waste Management
We have introduced an intelligent transportation management system and completed its deployment across all production bases which
Standardized Solid Waste Management System is implemented. We conduct full-process supervision of solid waste enables intelligent control of the entire logistics process through digital technologies. The system integrates and analyzes in real time
throughout their lifecycle – from generation warehousing and transfer to final disposal. By means of source classification data on order distribution traffic conditions warehouse inventory etc. delivers precise planning and dynamic optimization of transpor-
resource recycling and compliant disposal the volume of solid waste is reduced and resource utilization is maximized. tation routes and rationally schedules vehicle routes. This maximizes loading efficiency reduces empty mileage and inefficient trans-
portation and cut fuel consumption and exhaust emissions at the source.Solvent recovery devices have been installed to filter and reuse wastewater containing With the intelligent system we have achieved refined allocation of logistics resources effectively reducing our consumption of social Resource
recycling cleaning agents generated on workshop floor. logistics resources and setting a benchmark for green logistics in the industry. The system boasts full-dimensional data collection and
storage capabilities. It captures key operational indicators in real time such as transportation costs delivery efficiency vehicle utilization
and customer satisfaction. By conducting in-depth data analysis and mining we can accurately identify potential issues and areas for
Hot glue packaging design has been optimized. By applying tin film to the inner wall of iron
improvement in logistics operations which provides data support for strategy adjustment and process upgrading. For instance it has
Source drums less hazardous waste is generated and iron drums can be recycled and reused.reduction helped us improve previously fragmented model where operators shipped independently with low vehicle loading rates into an intensive With this move hazardous waste output in cabinet workshop is cut by over 90% on an
model featuring carpooling and en-route unloading. This has not only significantly improved vehicle loading rates and transportation
annual basis.efficiency but also effectively reduced carbon emissions marking a solid step toward green logistics.Noise Control Routes planned by the intelligent system
We strictly comply with Boundary Noise Emission Standard for Industrial Enter- Transportation Management System - Logistics Provider Operations
prises. On the basis of identifying noise sources and their transmission paths
technological upgrades as well as sound insulation and vibration damping measures
are adopted to reduce their impact. In particular an energy-saving permanent
magnet frequency-controlled vacuum pump system has been introduced to enable Route Vehicle Vehicle Schedule
intelligent energy regulation and stable negative pressure. It eliminates the adverse lanning Reservation Modification Confirmation
effects caused by negative pressure fluctuation and flow attenuation from conven-
Scheduling of transportationroutes (multiple regions)
tional rotary vane pumps on production processes. Under the same power output
Separate scheduling fordifferent routes
flow rate is increased by 1.8 times energy consumption reduced by 17.8% and
noise mitigated from 90 dB to below 80 dB. First deployed at our Zhejiang factory in
2023 this system has now been fully adopted across our production bases achiev-
Advantages of the intelligent system
ing dual improvements in environmental performance and operational efficiency.Before its launch After its launch
Visualized logistics information
Difficulties in tracking customer waybill status
Green Logistics Online vehicle bookingOffline vehicle booking Non-regulated Regulated business
Production scheduling based
Unclear accountability business operations operations on reverse calculation
Excessive transshipment Offline communication Change Regulated operating
procedures Higher vehicle loading rate
Against the backdrop of accelerating carbon neutrality efforts around the globe Suofeiya takes a forward-looking strategic vision to Data transmission via Excel spreadsheets Lack of information
transparency Regulated logistics 48-hour receipt with signature address pain points of customized home furnishings such as non-standard components and exponential growth in the complexity of Low vehicle loading rate management clear accountability
warehouse SKUs. Breaking through the limitations of traditional logistics we have built a green logistics system driven by dual engines:
Reliance on telephone communication Data and information flow via systemtechnology and supply chain ecosystem. Our pioneering low-carbon solution spans “production warehousing transportation anddistribution”. Through logistics optimization that consolidates fragmented shipments we’ve raised the utilization rate of unit transport High communication costs Visualized transportation higher
opaque transportation processes efficiency and enhanced customer
capacity reduced energy consumption and pollutant emissions and contributed to the construction of a greener China. and non-regulated operations satisfaction
41 4202 Unlocked New Delivery Model Built New Competitive Advantages
We adopt an integrated “trunk line – warehousing – distribution” logistics model that combines
trunk line transportation warehouse management and terminal distribution in one. It effectively Our trunk line – warehousing – distribution network covering
resolves common challenges such as high costs low efficiency and difficult quality control in 28 warehouses across 15 provinces
logistics helping us achieve cost reduction efficiency improvement and green operation while
building differentiated competitive advantages for us.Our warehouse in the city of Shijiazhuang
Trunk line transportation辽宁
By integrating logistics resources across China and giving into full play the load capacity of transport
vehicles we have realized economies of scale. Using large trucks for long-distance transportation
significantly reduces unit freight costs. Intelligent route optimization and dynamic vehicle manage-河北
ment further cut carbon emissions and enhance the green performance of trunk line transportation .宁夏山西
Warehouse management 甘肃
Supported by a professional warehouse management system we have achieved precision goods陕西
control spanning accurate recording of inbound information scientific layout of storage locations 河南 江苏
rapid sorting for outbound and dynamic inventory alerts. The entire process operates in efficient
coordination which reduces overstocking and ineffective turnover lowers energy consumption and
curtails resource waste in warehousing. 四川重庆
Distribution 杭州
Based on customers’ geographical location and order delivery requirements we use intelligent 湖南福建
algorithms to plan optimal delivery routes and time windows. New energy vehicles and China VI 贵州
high-emission-standard vehicles are prioritized for final distribution thereby achieving synergistic
combination of green transportation and precise delivery.Under the integrated “trunk line – warehousing – distribution” logistics model we can track the
real-time location and status of goods in transit ensuring timely and intact delivery and significantly
enhancing customer satisfaction. Through systematic integration and coordinated linkage of three
key logistics links we have achieved full end-to-end logistics connectivity from production to
consumption. This has not only reduced unnecessary logistics losses and intermediate links but
also continuously lowered our environmental footprint by promoting new energy transportation
capacity and adopting high-emission-standard vehicles. This model steadily drives us toward
green and sustainable development. 审图号：GS（2019）1823号
43 4403 Practiced Green Logistics Made Transportation More Eco-friendlyTo address pain points with installation services in customized home furnishing we fully advanced “Perfect First-Time InstallationInitiative”. Centered on in-depth coordination and full-process quality control across four key links (design production logistics instal-
lation) we have maximized the success rate of first-time installation fundamentally eliminating redundant deliveries and repeated instal-
lations. This not only improves customer experience but achieves a win-win in operational efficiency and environmental performance.As a key “quality guardian” and “efficiency driver” logistics plays a core role in ensuring intact product delivery and successful
first-time installations.In full-chain logistics management a solid quality foundation has been built through refined management: a damage interception mech-
anism is executed at the factory side to identify product defects; professional protective measures are applied during loading to prevent
damages from collision in transit; regulated protection procedures are strictly followed during unloading and on-site handling to
minimize secondary damage; after being delivered to customers’ home products are sorted and checked by room to ensure accu-
rate matching. These measures have reduced extra labor costs for installers and laid a solid foundation for successful first-time installa-
tion. By eliminating secondary deliveries caused by product damage errors or omissions at the source we have also indirectly cut
logistics-related carbon emissions.Meanwhile we actively promote upgrades to green transportation by cooperating with professional logistics providers using new energy
vehicles and fully optimize our distribution network. The large-scale application of green transport capacity has further lowered our fuel
consumption exhaust emissions and operating costs in distribution while ensuring service efficiency and delivery quality achieving
synchronized improvements in both environmental and economic benefits.In response to the national call for green development we have incorporated environmental requirements into logistics carrier access
and assessment. It is clearly stipulated that China VI emission standard vehicles and new energy vehicles are prioritized in picking up
goods from our factories. This initiative translates macro green policies into concrete and implementable operational specifications.Through coordinated supply chain management it drives the low-carbon transformation of our entire logistics chain and fully demon-
strates Suofeiya’s firm commitment to actively fulfilling social responsibilities and practicing green development.Our optimized logistics system has delivered dual core values. On one hand full-chain quality control ensures perfect first-time installa-
Pre-loading inspection Protection during transportation tion reducing redundant logistics costs caused by errors omissions and damages and improving overall supply chain efficiency. On the
other hand the adoption of new energy vehicles and strict enforcement of emission standards have driven the low-carbon and green
transformation of logistics operations and lowered our environmental footprint. This practice has not only enhanced our customer satis-
faction and economic benefits but also built a new differentiated competitive advantage for us that is environmentally friendly and
sustainable.Going forward we will continue to act as a pacesetter in the industry and work alongside partners to explore the full potential of green
logistics. Through technology innovation model iteration ecological collaboration and other initiatives we will keep enhancing our
Sorting by room New energy vehicle used by us comprehensive competitiveness and contribute solid strength to sustainable development across the industry.
45 4604公司可SUP持PL续Y C治HAI理N S与US合TAI规NAB运ILI营TYSuofeiya deeply integrates sustainability and corporate governance requirements into its entire supply chain. Through systematic
institutional development process optimization and continuous innovation we are committed to building an efficient transparent Full Supplier Lifecycle Management
secure low-carbon and collaborative supply chain ecosystem to achieve symbiosis and win-win results with partners. In 2025
building on existing supply chain governance system we further strengthened full life-cycle supplier management capacity building
We embrace a healthy and competitive supplier ecosystem built on strict supplier access scientific performance evaluation and dynamic
digital empowerment and sustainable collaborative innovation. These efforts have driven our supply chain toward higher quality greater
process optimization having achieved synchronized improvements in supply chain quality efficiency and sustainability.resilience improved environmental and social performance reinforcing our leading role in the industry as a chain master enterprise. We
now work with more than 500 suppliers worldwide and 100% of our core raw material suppliers have obtained ISO 14001 environmen-
tal management system certification which lay a solid foundation for the green development of our supply chain from the source.
01 Rigorous Access and Comprehensive Evaluation Mechanism
Supply Chain Governance and Policy Framework Potential suppliers must undergo multi-dimensional assessments spanning R&D capability production capacity quality manage-ment environmental compliance labor rights and interests business ethics etc. The reviews follow regulated and orderly proce-
dures forming closed-loop management of resource onboarding → on-site audit → sample testing → qualification approval → official
We run a supplier management system covering their full lifecycle: access evaluation cooperation performance and exit. Support- cooperation.ed by clear policy guidance and strict control mechanisms we ensure compliant green and quality-controlled operations across our
supply chain. Our core policy framework is as follows: Supplier Access and Evaluation Mechanism
Green procurement policy
All major raw material suppliers are required to comply with national environmental regulations and our green procurement standards.For boards a critical raw materials priority is given to products from suppliers with FSC-certified forest source national-level green
Collection of information Investigation/on-site Conversion to candidate
factory or authoritative environmental certification. This reduces our environmental footprint at the source and drives the green about potential suppliers (access) evaluation suppliers
Premium potential suppliers are Based on inspections on their product Potential suppliers that passtransformation of our raw material procurement. incorporated into “Potential quality quality control mechanism inspections are re-designated asSupplier Pool” in our ERP production capacity management candidate suppliers in our ERP
system to ensure supply chain systems and more an on-site audit system and then proceed to
stability. report is generated as the core sample testing phase.Business ethics and anti-corruption policy basis for access
approval.We adhere to the principles of fairness openness and impartiality in transactions and implement an anti-corruption mechanism
integrating contractual restraints technical prevention and control and audit supervision to build strong integrity barriers across our
supply chain.Conversion to qualified
suppliers Product identification report
Technical prevention Upon passing product identification Comprehensive tests are performed on Contractual restraints Audit and supervision potential suppliers become qualified samples submitted by suppliers in line
and control suppliers. Cooperation contracts are with prescribed procedures and product then signed to clarify core terms standards covering product physical
including product standards pricing and chemical properties functions
All our procurement contracts are A digital procurement platform has been A cross-departmental audit team has cooperation models and surface quality and other indicators.payment terms safeguarding
executed together with our Anti-Com- fully put into use. It supports end-to-end been established to conduct regular And a product identification the rights and interests report is produced
mercial Bribery Agreement which online and traceable processes for procurement compliance reviews. An of both parties. accordingly.explicitly prohibits bribery kickbacks and bidding negotiation approval and contract independent reporting channel is in
improper interest transfers in any form signing minimizing human intervention place and annual anti-corruption
and clarifies integrity responsibilities and and reducing integrity risks to the greatest training is organized to strengthen
breach remedies. extent. integrity defense line.Supplier performance Transparent procurement
Order placement appraisal and quality control Code of Integrity Agreement is made
Purchase orders are issued to Suppliers are subject to regular performance a mandatory clause in our contracts
qualified suppliers in line with appraisals across multiple dimensions such as with suppliers. Supervision is jointly
Quality assurance policy on-time delivery rate product pass rate production plan then proceed to service response speed and price carried out by Audit Department
stock preparation delivery and competitiveness. We expand cooperation Supervision Department and Supply
with high-performing suppliers and provide
payment. Dynamic monitoring of incentives to them. For underperforming Chain Department to maintain a fair
We fully roll out ISO 9001 quality management system. Suppliers are required to provide authoritative third-party quality inspection safety stock via an online suppliers we work with them to and impartial business environment
system is performed to formulate rectification plans and set and protect the rights and deadlines for their improvement
reports such as those issued by Société Générale de Surveillance (SGS). A three-level quality monitoring and random inspection ensure stable supply. so as to ensure our supply interests of both chain quality. parties.mechanism covering incoming materials production processes and finished products is executed to rigorously control the entire
process from raw material warehousing production process management to finished product delivery. This ensures full traceability
and quality compliance throughout the entire chain.
49 50In terms of R&D we review suppliers’ R&D investment team strength and innovation outputs to evaluate their techno-
logical competitiveness. For production capacity and supply management we comprehensively assess key aspects 02 Seminars and Regular Training
including equipment performance production capacity supply stability and logistics efficiency. Regarding quality
Diversified Capability management we rigorously examine suppliers’ quality system certifications production process control procedures Targeting core topics including quality environment and operations we
Assessment and historical quality data to ensure their product quality is controllable. organize quarterly seminars and training for suppliers. The contents cover
ISO 9001/14001 system audits application of advanced quality tools
For environmental compliance we inspect suppliers’ adherence to environmental regulations energy conservation
(such as Quality Control Circle Six Sigma Production Part Approval
and emission reduction measures and operation status of environmental protection facilities. Regarding labor rights
protection we urge their strict compliance with labor laws and regulations safeguard the legitimate rights and interests Process and Failure Mode and Effects Analysis) green production and
Themed seminars
Social Responsibility of their employees and promote better working conditions for them. With respect to business ethics we examine if circular economy practices. All these efforts serve to help suppliers improve
Assessment suppliers engage in improper commercial practices and uphold integrity-based operations. their management systems and enhance their practical capabilities.
02 Intelligent Digital Supply Chain 03 On-site Guidance and Joint Diagnostics
Leveraging digital platforms/tools such as supplier relationship management (SRM) enterprise resource planning (ERP) manu-
Our supplier quality engineering and improvement teams conduct regular on-site visits to key suppliers. They offer targeted
facturing execution system (MES) and business intelligence (BI) we achieve end-to-end collaboration and visual analysis across
one-on-one guidance covering on-site 5S management lean improvement of production processes enhanced environmental compli-
ordering delivery inventory and fund management. Powered by data insights and AI-assisted decision-making we can continuously
ance optimization of quality control procedures and more. This facilitates prompt problem resolution and root-cause remediation and
optimize key operational indicators including raw material on-time delivery rate and inventory turnover and improve supply chain
helps suppliers elevate their management capabilities.efficiency.The supply chain works closely with Lean Manufacturing Department to explore ways to increase material utilization. We also develop
optimally sized decorative panels in collaboration with suppliers based on big data on dimensions of customized home furnishing to 04 Joint Research Projects and Continuous Improvement Initiatives
reduce material waste from the source and achieve a win-win of economic and environmental benefits.Regular Performance Evaluation Classification and Dynamic Optimization As a chain master enterprise in customized home furnishing sector Suofeiya is committed to building an open collaborative innovation
ecosystem. We collaborate with core suppliers and technical partners to build cross-enterprise cross-disciplinary mechanisms for joint
We fully implement our supplier performance evaluation mechanism conducting quantitative assessment scoring and classification
R&D and continuous improvement who work together to solve common industry challenges and drive the supply chain toward higher
across such dimensions as quality delivery cost service environmental protection and collaborative innovation. Suppliers are graded
quality greater efficiency and greater sustainability.into four levels: Excellent Good Qualified and Unqualified. More business priorities and incentives are granted to excellent suppliers
while those rated unqualified are strictly removed from the supply chain to boost sound evolution and continuous improvement of suppli-
er base. Collaborative quality improvement across supply chain
Targeting common technical issues in the industry that long affect quality and reliability
Supplier Communication and Capability Development (e.g. board dimensional stability and finish material weather resistance) we have lead a
supplier improvement team to conduct systematic root cause analysis and process
Suofeiya regards suppliers as strategic partners for sustainable development and strives to optimization. In 2025 a total of 12 joint quality improvement initiatives were completed
build a learning and progressive value chain. In 2025 we systematically improved and which helped us achieve a 25% reduction in customer complaint rates on average.formalized our supplier capability development framework. Diversified communication mech- This has greatly improved our customer satisfaction and product life cycle performance.anisms are employed and regular empowerment initiatives are carried out to comprehen- Quality improvement initiative
sively enhance suppliers’ capabilities and collaboration efficiency.Collaborative innovation in green and smart home technologies
The 4th Suofeiya Supply Chain Summit
01 Global Supplier Conference In response to consumer demand for green low-carbon and smart homes we actively integrate ecosystem resources and conduct
joint technology research with leading partners in the smart home sector to co-develop multi-scenario smart home solutions. Through
As the highest-level platform for strategic dialogue between Suofeiya and our global supply system integration and algorithm optimization we have not only achieved intelligent collaboration across home scenarios but also
chain partners Suofeiya Global Supplier Conference is held biennially to communicate our improved product energy efficiency and user experience. This move provides consumers with more eco-friendly efficient comfortable
strategic direction mid- and long-term sustainability goals and quality vision recognize 2025 Guangdong March 15 Forum on and safe living choices and drives the industry’s deep integration of intelligent and green development.outstanding supply chain partners strengthen consensus across value chain enhance the Consumer Rights Protection and
Anti-Counterfeiting – Furniture Industry
long-term competitiveness of our supplier ecosystem and promote in-depth synergy and Sub-forum
common growth with suppliers.
51 52Innovative Practices for a Sustainable
Supply Chain
We work hand-in-hand with value chain partners to drive the deep integration and large-scale
application of green technologies circular economy and low-carbon transformation across the
supply chain aiming to build a benchmark for sustainable supply chain.Green Packaging and Circular Utilization
Since 2024 we have promoted replacement of traditional cartons with reusable turnover packag-
ing. By 2025 this had been rolled out in all our major hardware accessories. Besides we have creat-
ed a packaging recycling network with supply chain partners covering our 8 major production bases
to realize circular use of packaging materials reduce packaging waste and lower the environmental
impact of our supply chain. By the end of 2025 the cumulative reduction in cardboard box usage has
amounted to 54246 square metres equivalent to saving 54 cubic metres of timber and reducing
carbon emissions by 106.9 tonnes—the equivalent of protecting approximately 390 mature trees.R&D and Large-Scale Application of Low-Carbon
Technologies Low-carbon
In strategic collaboration with core equipment and material suppliers we have developed powder
electrostatic spraying technology for particleboard door panels and scaled up its application. This
process achieves zero VOC emissions throughout production. In 2025 our annual output reached
1.2 million units. Carbon footprint per unit was reduced by more than 50% compared with traditional Transition?
processes witnessing a total carbon reduction of 10.24 tons during the year and setting a benchmark
for low-carbon manufacturing in the industry.Supply Chain Responsibility Linkage and Carbon Management
Practices
We highly value strategic synergy on sustainable development with partners. We prioritize establish-
ing and maintaining long-term in-depth cooperation with suppliers that excel in environmental
protection and social responsibility. For instance we deepen partnerships with leading domestic and
international enterprises like BLUM HETTICH Schattdecor Fenglin Group and Wanhua Hexiang.Our cooperation has been expanded into multiple fields including green material R&D low-carbon
process innovation and joint development of industry standards. This improves the overall
sustainability of our supply chain on an ongoing basis.Building on existing achievements in supply chain sustainability we are actively planning a systemat-
ic collaboration framework on carbon management with suppliers committed to gradually advancing
the transparency of environmental data in our supply chain and building a more resilient low-carbon
supply chain. Moving ahead we will join hands with key suppliers to address climate challenges by
conducting carbon emission baseline surveys exploring an environmental information sharing
mechanism etc. The aim is to systematically manage and optimize carbon footprint in our value
chain striving toward a lower-carbon and more sustainable future.
53 5405公司可IND持UST续RIA治L T理RA与NSF合OR规MA运TIO营NS EMPOWERED BY TECHNOLOGICAL INNOVATIONTechnological innovation serves as the fundamental driving force for enterprises to achieve high-quality development and a core engine
for advancing industrial upgrading. Since its founding Suofeiya has placed innovation-driven development at the heart of its strategy. Modules 1-section floor cabinet against the wall
By devoting sustained efforts to technological R&D and breaking through industry bottlenecks we have grown from a start-up into a
leading enterprise with CNY 10 billion annual revenue. Innovation-driven growth has enabled us to lead the high-quality development of Door and Internal External Subsystems Cabinet system drawer system omponents components Structure tree
China’s customized home furnishing sector and inject strong impetus into its technological transformation and sustainability.Left and right Notched for Lower
Functions exposed end panels Concealmentskirting board storage
Glass door with soft
Components geometric rounded corners .......Configuration Left side Back Door Door
items panel panel ......Door
frame panel hinge ....... Structure tree
Configuration Reduction Overlay Protrusion Hinge Place
attributes Thickness Color value ...... condition value ....... type of origin
Configuration full Half
value 0 5 18 ...... overlay overlay Inset ....... Imported Domestic
Rock-Solid Program: Drove Sustainable Growth with Configuration Calculation logic for Component module
logic attribute values inspection logic
Three Major Innovations
5mm 18mm back Geometric Blum 107° BBlum 107 110° full- 105° full
back panel panel soft-corner soft-closing standard overlay overlay soft-
Parts and frame profile hinge door hinge close hinge
As our structural innovation initiative in the core area of product digitalization Rock-Solid Program (Phase I) breaks the limitations of components Three- 20mm
M4×16 self-
traditional operation models through systematic reform across three dimensions and reconstructs product digital management in-one decorative 5mm glassconnector cover strip tapping screw
system. It lays a solid foundation for building our competitiveness in sustainable development and boosts all-round improvements in
operational efficiency product quality and collaboration capabilities.Innovation in Data Governance Architecture: from Siloed Information to
02
Innovation in Product Configuration Model: from Experience-Driven to a Single Trusted Source
01
Rule-Driven
Rock-Solid Program provides company-wide authoritative standards on master product data and a full-process data governance
This program has pioneered and allowed successful implementation of S-BOM (sales bill of materials) a structured product configura- framework reshaping data value and providing solid support for digital operations.tion model achieving key breakthroughs in the configuration of customized home furnishing products.Unified product language eliminates cross-departmental information barriers and
enables seamless and efficient data flow across the entire value chain. This has signifi-
Rock-Solid Program converts consumers’ personalized demands into production instructions cantly reduced cross-departmental communication and data verification costs and
breaking down data flow barriers between sales and production. It greatly shortens the cycles of Process and
efficiency improved overall operational collaboration efficiency.Process and quotation order processing and production delivery enabling efficient matching between
efficiency customization and mass production.By systematically restructuring existing material categories we achieved a 92% stream-
lining rate. After redefining product data and performing classified data governance we
Through restructuring the program streamlines 45.1% of product modules reducing the have reduced data items from 1243 to 638 showing a 48.67% streamlining rate. This has
complexity of material categories and material waste in production from the source. Rule-based
Cost and fundamentally resolved issues including system disorders and duplicate purchasing
Cost and automatic configuration drastically reduces human errors in manual order splitting and configura- quality caused by inconsistent data ensured a single source of truth and significantly enhanced
quality tion significantly improving order delivery accuracy and product quality stability. operational quality and cost control.Standardized “product building block” module provides clear quantifiable units for forecasting A clean unified core data pool provides a reliable data foundation for market analysis
demands for common materials. This effectively enhances the scientificity of material preparation product lifecycle management and intelligent decision-making. It empowers us to
Forecasting and strengthens collaborative responsiveness across all links and reduces the risk of inventory Forecasting and accurately grasp market trends optimize product portfolios and improve the responsive-
collaboration overstock. collaboration ness of our supply chain.
57 58This is not a mere process improvement but a technological breakthrough with independent intellectual property rights. It pioneers
03 Forged Core Competitiveness Through Sustained Technology R&D
“integrated hole position” and a “robust fool-proof” structure completely eliminating reliance on additional slotting and high-preci-
sion drilling in traditional concealed connectors. Its installation fault tolerance rate increases by 20% and adjustment precision reaches
We have always taken technology R&D as a key pillar of the Company’s core competitiveness. In response to industry pain points and ±1.3 mm ranking among the industry’s top tier. It enables high-quality home furnishing manufacturing to no longer depend on complex
consumer demands we have furthered innovation in production processes for customized home furnishings continuously. In particular and high-cost high-energy-consumption processes.our particleboard vacuum lamination technology has grown into an important engine empowering the Company’s high-quality
sustainable development.Empowered the Industry to Reduce Consumption and Boost Efficiency
Amid high-quality development of customized home furnishing sector consumer demands for 02 with Green Manufacturing
high-end vacuum laminated products remain strong. Yet this market faces a widespread core
challenge: Traditional vacuum laminated products mostly use fiberboard as base material which not
This technological innovation has directly generated remarkable green benefits delivering cost reduction emission reduction and
only incurs relatively high costs but also leads to severe product homogeneity making it difficult to
efficiency improvement across the entire industrial chain.meet market demand for cost-effective personalized high-end products. Particleboard has distinct
advantages such as low cost and excellent environmental performance but its inherent structural
characteristics have long prevented its application in high-quality vacuum lamination. This creates a
bottleneck restricting technological upgrading. Reduced consumption and emissions at source Higher resource utilization efficiency
Confronting this challenge head-on we have introduced particleboard vacuum lamination a key No-slotting design simplifies production process and cuts A high installation fault tolerance rate drastically reduces board
equipment energy consumption dust emissions and waste gener- scrap rates caused by production and installation errors raises thetechnological breakthrough based on systematic R&D. This process features “substrate structureation right from the source. Actual measurements show it improves effective utilization rate of high-quality wood-based panels andoptimization edge banding reinforcement and process adaptation” setting an example for differ- machining efficiency per wood-based panel by 24% and signifi- achieves resource conservation and low-carbon development at
entiated development in the industry. It delivers perfectly flat product surfaces firm edge bonding and cantly lowers overall energy consumption per unit product. the front end of production.stable and durable structure fundamentally overcoming quality defects common in traditional particle-
Particleboard vacuum
board vacuum lamination such as orange peel texture and honeycomb pits and enabling particleboard lamination showcase
substrates to satisfy quality requirements for high-end vacuum laminated products.
03 Led Industry Upgrades and Built a New Ecosystem for Sustainable
This innovative process fully embodies our sustainable development philosophy. In terms of cost replacing fiberboard with particleboard Development
has significantly reduced raw material expenses and greatly enhanced our product cost-performance and market competitiveness. As
for environmental protection green raw and auxiliary materials such as eco-friendly edge bands are used to minimize environmental The value of this technology extends far beyond the technology itself. Rather it has profoundly reshaped the industry’s model of
impact from the source. This technological breakthrough has not only built a solid technological moat for Suofeiya but also driven the sustainable development.customized home furnishing industry to shift from homogeneous price competition to technology-driven quality competition leading the
industry into a new era of equal emphasis on quality and price and enabling more households to enjoy high-end eco-friendly and
cost-effective home experiences.Lower threshold for high-quality home furnishings Set standards and shape the futureThis innovation achieves “high-end customization at widely The advanced testing methods and core performance indicatorsaffordable costs with universal manufacturing processes” developed in this technology have been included into our corporate
Original Concealed Connector: Redefined Sustainable enabling more consumers to enjoy aesthetically pleasing durable standards. We also actively participate in the revision of industry
and safe home products at an affordable cost. It also promotes the standards to turn our innovative practices into norms widely
Home Furnishing with Core Component Innovation popularization of high-quality home furnishings and boosts followed by the industry and lead the comprehensive transforma-
inclusive growth. tion of the industry toward high-quality and sustainable develop-
Our original concealed connector achieves a revolutionary breakthrough in the basic connection of wood-based panel furniture. It not ment with top-level design.only enhances product value with “invisible aesthetics” but also significantly reduces energy consumption and resource usage with
unique features of “no slotting high fault tolerance and easy processing” leading the industry into a stage of technology-driven
green and efficient high-quality growth.
01 Technological Breakthrough Set a New Industry Benchmark
Connector unveiling structural detail
59 60Commercialized R&D Outcomes to Stimulate According to tests by a professional institution the particleboard and fiberboard achieve Grade 5 the highest rating of crack resistance
under extreme cyclic conditions: 103°C for 48 hours → -20°C for 24 hours → 103°C for 48 hours. And all other physical and chemical
Innovation Vitality properties fully meet GB/T 15102-2017 requirements. The expert panel reached a consensus that they feature outstanding innovation
and internationally leading performance. Having successfully solved the pain point that conventional boards tend to crack in extremely
dry climates Suofeiya leads the industry toward stronger environmental adaptability and higher-end development and injects strong
01 “Particleboard Powder Electrostatic Spraying Technology” Rated Nationally momentum into structural optimization and technological innovation of customized home furnishing products.
Leading by Authoritative Experts Driving the Industry’s Green Transforma-
tion and Upgrading 03 Awarded First Prize of Guangdong Forestry Science and Technology Progress
Award Showing Sustained Innovation Vitality
In August 2025 Chinese Society of Forestry conducted professional technical evaluations in Beijingboth online and offline on “intelligent manufacturing technology for low-temperature powder In November 2025 following rigorous evaluation by the Evaluation Committee of Guangdongelectrostatic spraying in large-scale customized wooden home furnishings” developed under Forestry Science and Technology Award “intelligent manufacturing technology for low-tem-Suofeiya’s leadership. The expert panel unanimously concluded this technology has reached an perature powder electrostatic spraying in large-scale customized wooden home furnish-internationally advanced level overall in which particleboard electrostatic powder spraying and ings” chaired by Suofeiya won First Prize in the 7th Guangdong Forestry Science and Technolo-
intelligent manufacturing technology for electrostatic powder sprayed components in large-scale gy Award (Innovation Award) being the only award-winning project in customized home furnish-
customized wooden furniture have reached an internationally leading level. ing sector. This honor represents high recognition of Suofeiya’s scientific and technological
innovation capabilities and R&D outcome commercialization capabilities and also marks an import-
The technology involves systematic research on four core areas: low-temperature curing powder coatings for wooden furniture special
ant milestone in the transformation and upgrading of China’s customized home furnishing sector
boards for powder electrostatic spraying high-efficiency powder electrostatic spraying and intelligent manufacturing for large-scale
toward green intelligent and efficient development. It provides a replicable and scalable industrial-
custom powder spraying. The developers have successfully introduced low-temperature yellowing-resistant powder coatings devel-
ization model for the industry’s upgrading to green intelligent manufacturing and further consoli-
oped eco-friendly special particleboard and fiberboard invented key technologies for particleboard powder electrostatic spraying and
dates Suofeiya’s benchmark position in green technological innovation within the industry.built an intelligent manufacturing system for large-scale customized components enabling stable mass production and market promo-
tion of powder-sprayed custom furniture made from particleboard. Amid the wave of intelligentization and industrial upgrading we furthered our commitment to scientific and technological innovation in
2025. Some of the major achievements made included internationally advanced/leading powder spraying technology and highly
This technology has strongly driven technological innovation and upgrading of powder electrostatic spraying across the industry signifi-
crack-resistant technology. Centered on upgrading to Industry 4.0 for smart manufacturing and intelligent data management we provide
cantly reducing emissions of volatile organic compounds and energy consumption. It provides important support for achieving China’s
users with green eco-friendly and scenario-based one-stop home solutions and steadily steer the industry toward high-quality
“dual-carbon” goals and is highly consistent with national development strategies of “green manufacturing” and “manufacturingsustainable development.powerhouse”.
02 “Highly Crack-Resistant Particleboard and Fiberboard Overlaid with Impreg- PatentsKey performance indicatorsnated Paper” Rated Nationally Leading by Authoritative Experts Driving the 642 valid authorized patents: (scientific and technological innovation)
129 valid invention patents (ranking first in the industry)
Industry’s High-End Transformation and Upgrading 304 utility model patents
209 design patents
In December 2025 China National Forest Products Industry Association chaired technical evalua- R&D outcomes and awardstions by an expert panel in Beijing on “key technologies of highly crack-resistant impregnated 18 scientific and technological outputs appraised by expertspaper overlaid particleboard and fiberboard and their industrialization” developed under 3 internationally leading technologiesInnovation management platforms: 13 internationally advanced technologies
Suofeiya’s leadership and also conducted new product appraisal. 2 national-level platforms 21专 s利cientific and technological awards
Focusing on impregnated paper particleboard and fiberboard developers applied high-performance 2 provincial-level platforms
Standards
crack resistance evaluation to probe into key technologies including manufacturing of dimensionally
Contributed to the development of 96 standards
stable boards toughening of highly crack-resistant impregnated paper and interface reinforcement
and successfully realized large-scale production and application of highly crack-resistant overlaid Academic papers and software copyrights
particleboard and fiberboard. The expert panel unanimously concluded that the overall achievement Published 133 academic papers
has reached an internationally advanced level with interface reinforcement technology reaching an Registered 237 software copyrights
internationally leading level.
61 6206公司可Ser持vice续 Up治gra理din与g a合nd C规us运tom营er Value EnhancementThe year of 2025 marked a pivotal year for Suofeiya to deepen service strategy and systematically enhance customer experience. Thehome furnishing industry is undergoing profound transformations from “product-oriented to experience-oriented where service Four Core Initiatives for Service Upgrading in 2025stands as a core competitive strength. Against this background we have promoted comprehensive upgrading and practical implemen-tation of our service system under the initiative of “Precise Craftsmanship for Perfect First-Time Delivery a Promising Future Builton Excellent Service”. Highlighting four interconnected focuses of service guidelines iteration innovative skills competitions estab-
lishment of service standards and overcoming key project challenges we have fostered a new customer-centric full-link service 01 Upgrade to Suofeiya Home Furnishing Service Standards 2.0
ecosystem.In March 2025 Suofeiya Home Furnishing Service Standards 2.0 was officially released. As the home furnishing industry enters an
experience era customers’ expectations for home have gone beyond products to cover full-process experience of design delivery
Service Evolution: from Standards Formulation to usage and maintenance which makes service the core pillar of a brand’s vitality.Systematic Empowerment The upgrade encapsulates Suofeiya’s more than 20 years of service practices and customer insights with “prevention is better thancure” as its core philosophy. The full service chain is divided into six key links: sales design production urban distribution installa-
tion and after-sales service from which 55 practical service guidelines have been summarized. Compared with Version 1.0 this
Version 2.0 has achieved three breakthrough as specified below.Precision Craftsmanship First Time
Right; Service Wins the Future
The Service Standards 2.0 is streamlined and practical directly addressing
Published Operational Guidance Upgrading the Service Guidelines 2.0 enhancing More focused core customer pain points such as pricing transparency design safety and
Textbooks the practicality of the installation competition
format launching the 5A Service Initiative and installation reliability.Unified service personnel VI image establishing the ‘Precision Craftsmanship First
launched "One Wechat Group for Each Time Right’ project
Customer" and service mini-program and Each standard is illustrated by correct and incorrect practices turning abstract More intuitive
promoted "As Far As Possible" service requirements into perceivable and actionable visual guidance.Sales Expand Market Shares
Service Secures the Foundation
Released the "Suofeiya Super
6+1 Service" Standard Released and trained on service guidelines A pioneering dynamic scoring system of 12 points 6 points and 3 points is
advanced full-category CSI/DSI assessment
Created a service TikTok account and More scientificone-stop customer service and promoted adopted driving the shift of service management from experience-based
introduced the French-style Cabinet repeat purchase recommendation projects judgment to data-driven and precise control.Butler service
New Service Approach Effortlessly
Implemented CSI/DSI Managing the Entire Home
Assessment 2025
Upgraded CSI/DSI Promoted dealer responsibility review and Service is essentially a relay race. Every employee must not only excel at their own Launched mini-program and
established regional advisory Assessment
assessment and launched Service Provider
System 1.0 “100-meter segment” but also create optimal handover conditions for the next
teams
Promoted the Cabinet Butler stage. By connecting individual service strengths into full-link value we elevate
assessment
Established customer experience from “satisfaction” to “trust”.Service Center
proposed making service 2024
Suofeiya's core competi- 2023
tive advantage
2022 02 Fully Practical-Oriented Installation Competition
2021
To build core service capabilities for whole-home delivery we fully upgraded the
2020 11th National Installation and Delivery Technician Skills Competition held in 2025
2019 adopting a new model of “year-round implementation integrating competition
2018 and innovation” to test capabilities through real-scenario practices and empow-
er services via competition.Note: CSI – Customer Service System; DSI – Dealer Service System
From March to September 35 regional preliminaries covering 157 regions were held as skills enhancement drills. The October finals
featured first-ever 100% real-order competition requiring one-stop rapid delivery of all product categories within 12 hours. Home
Our service capabilities have achieved progressive improvement demonstrating a clear strategic evolution from individual break- furnishings for 25 households were successfully completed on the first attempt. For the first time the competition introduced AI cloud
throughs to systematic empowerment and from process standardization to leading experience which lay a solid foundation for the supervision for 360° transparent live streaming of the entire process which witnessed a total online exposure of over 5.07 million and
delivery of high-quality services. directly drove 6270 orders.
65 66Aiming to redefine whole-home delivery the competition transformed from a
Precise Craftsmanship for Perfect First-Time Delivery: Tackled Core Pain
simulated contest into a real-world battlefield publicly validating a new industry 04
standard for whole-home customization with one-time completion. It has not only Points and Upgraded Delivery Experience
set a benchmark for service efficiency and delivery quality but also inspired a
nationally replicable service empowerment model that combines practicalAs our core critical project in 2025 focusing on customer experience and operational efficiency “Precise Craftsmanship for Perfectoperations and digitalization. This lays a solid foundation for building a coreFirst-Time Delivery” aims to address critical pain points with first-time installation success rate. The project drives a qualitative leap
service moat and continuously earning consumer trust.from “being able to deliver” to “delivering well on the first try” through end-to-end process optimization closed-loop data manage-ment and coordinated improvements across all links. It achieves the four core objectives of “improving efficiency reducing costssolidifying reputation and building confidence” having raised our core service competitiveness.
03 Launched 5A Service: Set Standards for Custom Home Furnishings
Established the first This system enables quantification traceability and root-cause analysis of core indicators such
Suofeiya is one of the first company in the industry to implement and guide “China Custom Home 5A Standards”. Due to full-link A full-link service data as first-time installation success rate and rework/replacement rate providing solid data supporthigh-quality services and outstanding overall strength we obtained two authoritative certifications in 2025: “March 15 Trusted monitoring system for refined service management and targeted optimization.Consumption Brand” and “March 15 Directory of Quality Enterprises” which highlighted our benchmark status in service quality.Core indicators saw steady The project achieved remarkable results in pilot cities Guangzhou Shenzhen and Foshan Covering the entire process of sales design installation and after-sales service our 5A service features “assurance accelerated B improvements which where first-time installation success rate exceeded 90% and order rework/replacement ratedelivery accurate installation agile response and all-life maintenance”. Refined service specifications are created to form a verified its effectiveness dropped significantly which fully validated its scientificity and feasibility.full-cycle service closed-loop. We uphold the tenet of “serve satisfy empower innovate–for every client” and provide all-roundhigh-quality service to deliver a worry-free home improvement experience throughout the process truly enabling consumers to “pur-By eliminating redundant steps such as order rework replacement and second on-site visitschase securely install effortlessly” and promoting the custom home furnishing industry toward regulated high-quality development.C Lower operating costs our full-link operating costs have been effectively reduced. Liability-related rework and replace-demonstrated direct ment expenses for dealers in pilot cities have continued to decline achieving dual improvements
financial value
in customer service experience and operational efficiency.I Suofeiya 5A service I
Turning the promise of “flawless installation on the first try” into tangible customer experience
D Strengthened customer this project has greatly reduced time and communication costs caused by incorrect or missing word-of-mouth and brand
trust through reliable delivery parts and installation reworks for customers and significantly improved customer satisfaction. It
also further consolidates our service reputation and enhances consumer trust in us.Assurance Accelerated delivery Accurate installation Developed a standardized Systematically summarizing project implementation experience we have introduced a
promotion toolkit and laid the standardized toolkit covering problem diagnosis staff training process inspection review and
Certified personnel subject to On-schedule delivery with On-site acceptance of clean and tidy E
foundation for national optimization. This completes strategic preparations for nationwide promotion in 2026 and drives
professional training obey 55 service compensation for any delay; rapid handover with a commitment of zero replication this high-quality service model to be rolled out across all regions.standards to deliver meticulous replacement and installation of damage to walls and floors
high-quality service missing or defective parts
Agile response All-life maintenance
Dedicated 400 hotline with 24/7 Dedicated home concierge
quick response; one exclusive lifelong maintenance support
group per customer for full-pro- 5-year warranty and
cess follow-up whole-house coverage for all
product categories
Enable consumers to enjoy a truly worry-free home
renovation experience with all-round service
67 6807公司可EMP持LO续YEE治 DE理VE与LOP合ME规NT 运AND营 MUTUAL GROWTHAmid complex volatile economic environment and market uncertainties the value of talents as a core driving force for enterprises’
02 Built a Harmonious and Equal Employment Relationship
sustainable development has become increasingly pronounced. Suofeiya has always adhered to a “talent first” philosophy imple-
mented diversified talent development and employee support initiatives pooled team strength broken through development bottle-
necks and fostered a collaborative atmosphere in which the entire organization shares the same vision aligns its values and strives Suofeiya boasts a regulated but flexible organizational structure and a diversified talent pool. Our workforce consists of well-rounded
forward together. In this way we achieve mutual commitment and shared growth with employees. managers promoted from frontline production positions as well as professionals with cutting-edge ideas which fully meets the Compa-
ny’s needs for sustained high-speed development. We also work to build a sound harmonious and equal employment environment.Employee Rights and Interests Protection and We firmly oppose discrimination in any form based on gender religious belief regional background etc. strictly prohibit child labor and
forced labor fully implement the policy of equal pay for equal work for men and women and adopt people-oriented employee manage-
Compliant Employment ment creating a working atmosphere featuring mutual respect inclusiveness collaboration and solidarity. These efforts have enhanced
employees’ sense of happiness belonging and fulfillment.
01 Upheld Compliant Employment to Safeguard Basic Rights During the reporting period we had totally 11241 employees. A well-structured dynamic and highly cohesive workforce provides solid
support for the high-quality development of the Enterprise.We strictly abide by relevant laws and regulations including the Labor Law of the People’s Republic of China the Labor Contract Law
of the People’s Republic of China the Regulations on the Implementation of the Labor Contract Law of the People’s Republic of
China and the Social Insurance Law of the People’s Republic of China. Integrating employment compliance into the entire process of Professional Composition Category Education Level Category
human resource management we strive to protect employees’ legitimate rights and interests and foster a regulated orderly employ-
ment environment. Master's Degree
and Above
We boast regulated labor contract management and sign labor contracts with all employees. Our contract signing and renewal
Production
procedures strictly comply with legal requirements. The rights and obligations of both parties are clearly defined to ensure employment
Management Staff 0.98%
compliance. We also firmly prohibit the employment of child labor keep improving employment management system and regulate Staff 59.08% High School Bachelor's
employment practices in strict accordance with the requirements of labor security authorities so as to protect the legitimate rights and and Below 20.60% Degree
3.34%
interests of the Company and its employees. Administrative 4.22% 55.16%
Staff
Besides we implement national regulations on social insurance and pay monthly contributions for employees’ endowment insurance 1.44% 23.26% Associate
Sales
medical insurance work-related injury insurance unemployment insurance maternity insurance and housing provident fund ensuring 12.94% 18.98% Degree Finance Staff
that employees receive corresponding benefits in a timely manner and freeing them from worries about the future. Staff
Technical
Leave arrangements and welfare benefits for employees are improved to fully safeguard their daily livelihood Staff
physical health and mental well-being.Leave arrangements:We fully implement statutory and company-specific leave entitlements including annual leave marriage leave factory leave maternity leave nursing leave
paternity leave and parental leave and protect employees’ rights to rest and family time.Welfare benefits:In addition to statutory social insurance and housing provident fund we provide diversified benefits such as staff canteens employee dormitories annual tours and Age Distribution Gender Distribution
annual physical examinations effectively enhancing employees’ sense of belonging and well-being.Employee Health Check-Ups 51 and Above
Maternity Housing Provident 3.45% Female
Insurance Fund 29.02%
Maternity Leave 41-50
18.94%
Factory Leave Breastfeeding Leave Work Injury 31-40 52.67% Male Employee
Insurance Cafeteria
30 and Below
Benefits
Marriage Leave Paternity Leave 24.94%% 70.98%
Holidays Unemployment Employee
Insurance Dormitories
Annual Leave Parental leave Medical Annual
Insurance Travel
Pension
71 7203 Improved Incentives to Vitalize the Organization and Employees Focused on talent cultivation to addresses key pain points in career growth
In response to the needs of new generation employees efforts have been made to cultivate intergenerational leadership and help
Our Compensation Management Measures offers a competitive compensation standard and a scientific rational compensation incen-
managers adapt to management styles suitable for young employees. Amid an economic downturn we place emphasis on boosting
tive mechanism. On the basis of effectively protecting employees’ legitimate rights and interests we fully motivate their initiative at
employees’ mental strength and work motivation encouraging them to take initiative to break through limits and strive for excellence.work unlock their endogenous potential and inject sustained impetus into the continuous development of the Company.Meanwhile we fully tap into employees’ potential and core strengths. Based on their career aspirations we provide personalized
We maintain a clear orientation for value distribution and closely integrate employees’ personal development with the Company’s support to help them clearly plan their career paths and achieve greater self-value. In addition AI tools have been introduced tohigh-quality development. By implementing a competitive compensation system we have achieved the goal of “attracting motivating empower employees and improve their efficiency which has broadened the scope and deepened the depth of talent cultivation.and retaining talents” and consolidated the foundation for talent-based development. Based on job responsibilities we scientifically Supported by online learning platform and Academy of Talent Development we integrate high-quality internal and external learning
evaluate different positions from the core perspectives of delivery quality job responsibility and performance contribution in strict accor- resources and break the constraints of time and space having significantly enhanced the efficiency and convenience of talent cultiva-
dance with the principles of value orientation market competitiveness performance orientation and diversification and then determine tion.salaries to ensure fairness and rationality in compensation distribution.Meanwhile assessable quantitative and qualitative indicators are used to measure key dimensions such as workload work quality work
Supporting Strategic Developmentefficiency and economic value created. We strictly implement the principle of “compensation distribution according to work more pay Strengthening Management Foundations Building a Learning Organizationfor more work” to fully reflect employees’ value and contributions. This effectively encourages them to improve work efficiency excel
in their positions and create value ultimately achieving win-win results and shared growth with employees. Management Internal
Division/Intermediate Talent Development Map
Development Certification
Huangpu/
Executives
Full-Cycle Talent Development and Employee Growth Professional Trainers
Outstanding (Advanced)
Talent/Senior
Managers
Guided by the core principles of “strategy-led technology-empowered and talent-driven development” we optimized our ExcellentTalent/Newly
Promoted
development strategy in 2025 on the basis of existing full-life-cycle employee development system. Focusing on in-depth integration of Managers Empowerment of Talent Development Systems for Each Division + Senior
Business Support Empowerment Trainers
“business + talent” “AI + talent” empowerment model is adopted to align talent development with business objectives and achieve
Supervisor/ Customer (Intermediate
Reserve Chief Marketing Basic Frontline Team Commitment Team Efficiency
synergy. In light of the job characteristics and development needs of employees at different levels we have tailored development Service SkillBasic Staff Marketing Management Enhancement Leader Enhancement Integration Improvement
Officer (CMO) Training Training Training System Workshop Workshop Workshop
programs and career paths for them aiming to realize mutual empowerment between talent growth and enterprise development.General Competence for Frontline
Campus Recruitment Training
Employees - Super Individual Trainee
Instruments for Suofeiya Talent Development System Implementation Trainers Clear Clear Effective Happy Stage 3:
Stage 1: Stage 2: Stage 4: (Beginner)
Thinking Communication Execution Collaboration Performance
Understand Integrate into Build
Benchmark-
Valuation dimensions Talent pool construction Efficiency the Team the Team StrengthsEnergy 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
Standards System Inventory (Echelon) System Path Launched advanced seminar to build core competitiveness for high-end talents
In 2025 we further collaboration with Renmin University of China Business School
to offer advanced seminar for chief marketing officer. Drawing on the profound
Competency model Nine-box grid Learning map
job qualifications talent review meetings knowledge extraction techniques academic expertise of renowned professors from the university and cutting-edge
talent map combining training and practical experience marketing methodologies at home and abroad we have elaborately designed a
mentorship system structured curriculum. Systematic theoretical learning case studies and practical
rotation system application allow participants to comprehensively enhance their ability to adapt to
market volatility and solve marketing challenges. These efforts jointly foster
Human resource Promotion Job rotation Mentorship Performance evaluation sustainable growth momentum for the Enterprise enabling us to better respond to
mechanisms mechanism mechanism mechanism mechanism
complex market challenges and consolidate our leading position in the industry.
7374
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: Nurtured “She Power” Forged Cohesion via Diversified Cultural Activities
for Mutual Growth
As part of our efforts to care and support female employees we safeguard their rights and interests such as maternity leave and nursing Upholding the philosophy of “healthy living happy working” we have long been committed to fostering a vibrant corporate culture with
leave set up nursing rooms in office areas organize various cultural sports and recreational activities to enrich their spare time and a diverse and rich range of employee activities. A warm dynamic and cohesive workplace allows employees to relax find joy and build
offer holiday benefits to them on International Women’s Day through warm celebrations. We will continue to focus on the needs of consensus beyond daily work.female employees and support every one of them in achieving better development.Our offerings cover a wide spectrum: sports and cultural festivals autumn music festivals New Year’s Eve celebrations various
Adhering to people-oriented care we highly value the protection of female employees’ rights interests and career development and interest clubs employee networking events annual trips birthday celebrations and care programs for employees’ children. They cater
integrate our care for them into daily work. A supportive warm working and living environment for female staff is created to allow every to the needs of employees across all age groups and interests enriching their personal lives and safeguarding their physical and mental
female employee to feel warmth and respect from the Company. well-being in an all-round manner. Sports and cultural festivals and team-building events strengthen bonds and forge a strong team
spirit through friendly competition and collaborative interaction. Events like autumn music festival and birthday celebrations provide a
platform for employees to showcase their talents and vitality. Our care programs for employees’ children cover summer daycare
summer camps art contests and immersive study tours which effectively alleviate employees’ concerns allowing them to focus on
their work.Annual Staff Outing Sports and Culture Festival
Heart-warming Staff Birthday Party Autumn Music Festival
We strictly implement relevant national laws and regulations to fully protect the legitimate rights and interests of female employees and
earnestly offer special entitlements such as maternity leave and nursing leave ensuring that female employees receive adequate rest Charity Blood Donation Drive Diverse Interest Clubs
and care during pregnancy and lactation. Nursing rooms in office areas equipped with facilities in line with comfort safety and conve-
nience standards provide a private and reassuring space for breastfeeding female employees. These efforts have effectively addressed
worries for working mothers and embodied our philosophy as a maternity-friendly enterprise.To enrich the spare time of female employees and relieve their work pressure we regularly hold a variety of women-only cultural recre-
Activities for Staff Children Social Events
ational and sports activities that are both interesting and practical. Every year on International Women’s Day the Company and its
subsidiaries and branches organize warm and diverse celebrations to deliver exclusive holiday benefits and sincere wishes to female
employees conveying corporate care and demonstrating respect and recognition for female staff. Moving ahead we will continue to
The diverse array of engaging activities have not only effectively relieved work pressure and enriched employees’ cultural and spiritual
attend to the diverse needs of female employees further improve care measures and balance rights protection with career develop-
life but also brought them closer to one another and strengthened team cohesion and solidarity. With thoughtful humanistic care and a
ment. We will support every female employee in realizing personal value and achieving better development together with the Enterprise.variety of cultural events employees can truly feel a strong sense of belonging happiness and honor. This inspires all staff to strive hand
in hand with robust health full energy and high spirits and jointly embrace a bright future of high-quality development for the Company.
75 7608公司可SOC持IAL续 RE治SP理ON与SIB合ILIT规Y A运ND营 PUBLIC WELFAREBuilt Strength with Empowerment from Labor Union Lit up Young Minds with Reading and Supported the
and Demonstrated Corporate Responsibility Building of “Scholarly Campuses”
Fully acting as a bridge and bond between the Company and employees our labor union actively encourages staff to participate in public A strong youth makes a strong nation. In response to the National Action Plan for Teenag-
welfare initiatives practice corporate social responsibility with concrete actions spread warmth and positive energy and establish a ers’ Reading Campaign issued by eight ministries and commissions including the Minis-warm responsible public image for the Enterprise. try of Education and in line with the goal of “further promote nationwide reading and builda scholarly country” we actively leveraged our nationwide dealer network and jointly
Organized blood donations to warm lives launched public welfare initiative “Book House for the Young” on the basis of China
Charity Federation’s “Happy Homeland” Village and Community Mutual Assistance
Our labor union together with relevant departments organized blood donations on a
Program.regular basis. Our employees responded enthusiastically embodying the noble virtues of
caring for others and giving back to society with selfless blood donation and making solid Under this initiative we constructed public welfare reading rooms for schools in rural areas
contributions to public welfare and the protection of life and health. and equipped them with high-quality reading resources to help rural children develop
reading habits enhance their cultural literacy and inspire their internal motivation for
Delivered festival care and targeted assistance learning. To date we have completed over 30 book houses in Pingxiang Liuzhou Shan-
gluo Wuhan Liangshan Beijing Lanzhou and many other cities which benefit around
During major traditional festivals such as the Spring Festival and Mid-Autumn Festival our 20000 teachers and students. Moving forward we will continue to uphold the philosophy
labor union visited 74 disadvantaged households in surrounding communities providing of “people-oriented development and give back to society” expand our public welfare
them with daily necessities and festive care to allow them to truly feel the warmth of the endeavors and contribute more to social harmony and progress.Company and society. Within the Company it offered targeted assistance for disadvan-
taged employees. During the Mid-Autumn Festival it offered care packages and money
to 18 disadvantaged employees which effectively solved their difficulties enhanced their Implemented Healthy China Strategy and Created a
sense of belonging and confidence in overcoming hardships and fully reflecting the Com-
pany’s humanistic care. Friendly Medical Environment
Aligning ourselves with Healthy China 2030 strategic plan we actively engage in public
welfare for various medical institutions. We have in collaboration with local operators
Safeguarded Consumer Rights and Set a Benchmark provided support to dozens of hospitals and elderly care service facilities including Shang-
for Integrity hai Children’s Medical Center Children’s Hospital of Fudan University Zhejiang Mater-nal and Child Health Hospital Zhongnan Hospital of Wuhan University and Guangzhou
Haizhu Maternal and Child Health Hospital.Protecting consumer rights serves as the cornerstone of the healthy development of the
market while corporate integrity and high-quality services are key to gaining market By donating eco-friendly ENF-grade eco-friendly boards we create a healthy safe andrecognition. Suofeiya is the only industry representative to win “March 15 Trusted low-emission environment for diagnosis treatment and rehabilitation of patients by medi-Consumption Brand” award for two consecutive years since 2025. It has also been cal staff. This demonstrates our fulfillment of social responsibility for national medicalrecognized as “Guangdong March 15 Co-building Unit for Consumer Rights Protection conditions and public health undertakings.and Anti-Counterfeiting” and included in “March 15 Directory of Quality Enterprises”.The criteria for “March 15 Trusted Consumption Brand” were very stringent. A total of
5586 enterprises were shortlisted as candidates but only 32 were finally awarded this
In 2025 guided by the core philosophy of “people-oriented development and give back to society” we have deeply integrated social
honor representing an award rate of 0.57%. Such rarity underscores the exceptional
responsibility into corporate development. We made sustained efforts in public welfare consumer rights protection the construction of
value of this accolade and confirms Suofeiya’s industry-leading position in operating with
a Healthy China and more demonstrating the responsibility and commitment of a leading enterprise in the home furnishing industry.integrity delivering quality service and safeguarding consumer rights.Going forward we will further uphold sustainable development expand our social responsibility initiatives with more solid actions and
better products and services and join hands with all sectors of society to contribute more to a harmonious and better society.
79 80Trusted Consumption Brand Based Pioneering Intelligent Manufacturing to Industry Benchmark Demonstrating
on Quality Drive Development with Innovation Brand Influence
March 15 Trusted Consumption Brand Internationally advanced scientific and technological achievement: Included in “Pride of Chinese Brands” Initiative
Anti-counterfeiting co-building unit of Guangdong Anti-Counterfeiting Association electrostatic powder coating technology for wooden furniture UP Era Beacon · Guangdong Power
Member of Guangdong Anti-Counterfeiting Association Advanced Smart Factory Department of Industry and Information Annual Service Role Model in the Home Furnishing Industry
Top 30 in March 15 Directory of Quality Enterprises Technology of Guangdong Province Schmidt – Top 10 Brands in Light High-End Whole-Home Customization
One of the first batch “China Famous Consumer Brands” recognized by the First Prize of Guangdong Forestry Science and Technology Award China High-End Home Furnishing Brand
Ministry of Industry and Information Technology Top 100 enterprises in science and technology in China light industry
AAA rating in annual credit evaluation of the metals minerals and chemicals industry Top 200 enterprises of China light industry
Commitment Unit for Quality Emphasis and Integrity Abidance Annual AI Frontier Innovation Award
Benchmark Unit for Quality Emphasis and Integrity Abidance
Member Unit of Trusted Consumption Alliance
Excellent Governance to Win Recognition Design Aesthetics Honored with Acting with Benevolence to Fulfill
Despite the passage of time our original in the Capital Market International Awards Corporate Social Responsibility
aspiration remains unchanged. Suofeiya will
continue to uphold craftsmanship embrace Class A (Highest) rating in information disclosure for 2024-2025 by the Shenzhen 45 renowned design awards at home and abroad in 2025 including: Guangzhou Women and Children Charity Role Modelinnovation and fulfill responsibility. By Stock Exchange (for 12 consecutive years) 4 German iF Design Awards Commemorative plaque of gratitude for “Book House for theExcellence Award for Investor Relations of Listed Companies 9 American MUSE Design Awards Young” (China Charity Federation & Mapo School in Yuzhong
sticking to quality in our global layout and
Best ESG Practice Award for Listed Companies District Lanzhou City)The total number of awards received reached 234 ranking first inleading transformation with intelligent Shareholder Return Award for Investor Relations Management the customized home furnishing industry Commemorative plaque of gratitude for “Book House for themanufacturing we customize a better life Innovative Practice Award for Investor Relations Management Young” (China Charity Federation & Tangchi Town Central School
in Yingcheng City)
for hundreds of millions of families and go all
out for every expectation!
8182
HONORS
AND AWARDSConcluding Remarks
CONCLUDING REMARKS公司可持续治理与合规运营
As technologies for green energy continue to advance and witness breakthroughs we will further embed environ-
mental sustainability into our future development and actively promote coordinated growth of ecological benefits and
social value. In the next phase we will steadily increase the share of renewable energy in our operations and acceler-
ate the establishment of a low-carbon operating system. Leveraging intelligent management systems we will contin-
uously optimize resource allocation efficiency to minimize the environmental impact of our business activities.Following the goals of enhancing supply chain transparency and practicing responsible business operations we will
further collaboration and co-construction with partners drive coordinated upgrading of upstream and downstream
supply chains and steadily elevate green development level and ethical governance standards across the entire
industrial chain by sharing industry best practices and strengthening the spread of standards.To better give back to society and support employee growth we will continue to improve our employee training and
foster an inclusive diverse workplace refine our community engagement mechanism actively participate in local
development and public welfare initiatives and support high-quality regional development via concrete actions. We
firmly believe that continuously deepening our engagement in ESG and pursuing excellent sustainable practices will
not only create long-term and sound commercial value for Suofeiya but also contribute positively to global sustain-
able development goals.
83 84Key ESG Performance Indicators Environmental performance
Indicator Unit 2025 Indicator Unit 2025年Operating income CNY 10000 936695.03 Environmental investments CNY 492.73
Net profit CNY 10000 90128.23 Natural gas m3 3512837.90
Total taxes paid CNY 10000 117741.54 Diesel L 2131.91
Total cash dividends (taxes included) CNY 10000 77043.77 Electricity kWh 134215581
Cash dividend per 10 shares CNY 8 Photovoltaic power generation kWh 26152994.80
Public welfare expenditures CNY 799595.94 Carbon dioxide emission reductions t 26075
Standard coal saved t 9676
Employee structure Compliance rate of wastewater discharge % 100
Indicator Unit 2025 Compliance rate of noise emission % 100
Total employees Persons 11241 Hazardous waste generated t 509.53
Labor contract signing rate % 100% Compliant disposal rate of hazardous waste % 100
Total waste gas emissions m3 2915776.51
Production Persons 6641
Compliance rate of waste gas emissions % 100
Sales Persons 2133
Particulate matters t 89.46
Technology Persons 1455
Job position Benzene t 2.22
Finance Persons 162
Toluene t 1.15
Administration Persons 474
Xylene t 1.37
Management Persons 376
Non-methane total hydrocarbons t 14.20
Master’s degree and above Persons 110
Nitrogen oxides t 8.18
Bachelor’s degree Persons 2316
Education level Sulfur dioxide t 3.25
Associate degree Persons 2615
Total wastewater discharged t 388020.20
Senior high school and below Persons 6200
Compliance rate of wastewater discharge % 00
30 and below Persons 2803
Chemical oxygen demand t 80.41
31-40 Persons 5921 Five-day biochemical oxygen demand t 29.50
Age distribution
41-50 Persons 2129 Suspended solids t 45.20
51 and above Persons 388 Ammonia nitrogen t 5.58
Male Persons 7979 Total phosphorus t 0.78
Gender distribution
Female Persons 3262 Reused industrial wastewater (reclaimed water) t 6015.60
85 86Greenhouse gas emissions Corporate governance performance
Indicator Unit 2025 Indicator Unit 2025
Direct greenhouse gas emissions (Scope 1) General Meetings of Shareholders convened Times 2
South China Production Center tCO2e 464.85 Proposals deliberated at General Meetings of Shareholders Item 25
Central China Production Center tCO2e 343.11 Board of Directors meetings convened Times 4
East China Production Center tCO2e 288.34 Proposals deliberated at Board of Directors meetings Item 63
West China Production Center tCO2e 243.32 Audit Committee meetings convened Times 4
North China Production Center tCO2e 167.85 Proposals deliberated at Audit Committee meetings Item 10
Lankao Production Base tCO2e 237.18 Ad hoc announcements (numbered announcements) issued Copies 44
Qiqihar Production Base tCO2e 19.27 Regular reports released Copies 6
Jinhua Production Base tCO2e 14.98 Shenzhen Stock Exchange information disclosure rating Level A
Indirect greenhouse gas emissions (Scope 2) Newly introduced or revised regulations Copies 374
South China Production Center ttCO2e 4926.11 Routine supervisory inspections Times 8
Central China Production Center tCO2e 3635.99 Tender supervision Venue 45
East China Production Center tCO2e 3055.56 Report clues handled Documents 26
West China Production Center tCO2e 2578.49 Report handling closing rate % 100
North China Production Center tCO2e 1778.75 Offline integrity training sessions Venue 11
Lankao Production Base tCO2e 2513.48 Integrity training attendances Persons 11323
Qiqihar Production Base tCO2e 204.15 Integrity training coverage % 100
Jinhua Production Base tCO2e 158.69 Approved registered trademarks owned Persons 2072
Total greenhouse gas emissions (Scope 1 + Scope 2) Trademark protection records Times 134
South China Production Center tCO2e 5390.96 Major information security incidents Times 0
Central China Production Center tCO2e 3979.10 Host availability % 99.99
East China Production Center tCO2e 3343.90 Database availability % 99.99
West China Production Center tCO2e 2821.81 Network availability % 99.99
North China Production Center tCO2e 1946.60 Number of suppliers Households 500
Lankao Production Base tCO2e 2750.66 Procurement contract coverage % 100
Qiqihar Production Base tCO2e 223.42 Anti-bribery agreement coverage % 100
Jinhua Production Base tCO2e 173.66 Valid invention patents Documents 129
Utility model patents Documents 304
87 88Corporate governance performance Report Laws and Regulations Some of Internal
Chapters Observed Policies
Indicator Unit 2025 Criminal Law of the People's Republic of China Articles of Association of Suofeiya Home Co. Ltd.Design patents Documents 209 Criminal Procedure Law of the People's Republic of China Rules of Procedure for Shareholders' Meetings
Standards formulated with contribution from Suofeiya Item 96 CSecurities Law of the People's Republic of China Independent Director System
Academic papers published Chapter 133
Company Law of the People's Republic of China Board of Directors' Rules of Procedure
Software copyrights registered Item 237
Anti-Unfair Competition Law of the People's Republic
General Manager's Work Guidelines
Internationally advanced technology achievements appraised by experts of ChinaItem 18
Anti-Money Laundering Law of the People's Republic Conduct Guidelines for Directors Supervisors and
Technology awards received Item 21 of China Senior Management
Shenzhen Stock Exchange Listing Rules Investor Relations Management System
Shenzhen Stock Exchange Self-Regulatory
Institutional Survey Reception Management
Guidelines No.1 for Listed Companies on the
Guidelines
Main Board
Listing Rules of Listed Companies Information Disclosure Management System
Corporate Governance Code for Listed Companies Internal Audit System
Independent Director Management Guidelines for
Sustainable Listed Companies Contract Management System
Governance
Articles of Association for Listed Companies Contract Management Guidelines
Personal Information Protection Law Intellectual Property Management System
Consumer Protection Law Physical Stamp Management System
App Illegal Collection and Use of Personal Information Enterprise Internal Control Application Guidelines
Self-Assessment Guidelines
Anti-Unfair Competition Law of the People's Republic Suofeiya Employee Handbook
of China
Common Types of Mobile Internet Applications
Necessary Personal Information Range Suofeiya Employee Integrity Management Guidelines
Provisions
Suofeiya's Eight Red Lines
Conflict of Interest Declaration and Filing Notice
Suofeiya Home Co. Ltd.’s Whistleblower Manage-
ment Guidelines
Information Systems Emergency Plan
Business System Online Security Management
Guidelines
Data Center Security Management System
89 90Report Laws and Regulations Some of Internal Report Laws and Regulations Some of Internal
Chapters Observed Policies Chapters Observed Policies
Terminal Equipment and Network Management
Regulations Emergency Plan for Sudden Environmental Incidents
Information Security Management Procedures Bidding and Tendering Law of the People's Republic Procurement Management System
of China
Data Security Management Specifications
Bidding and Tendering Law Implementation Regula- Production Material Procurement Management
Confidentiality Management System Supply Chain tions (2019 Revision) Guidelines
with Sense of
Group Patent Infringement Risk Prevention Manage-
ment Measures Responsibility Electronic Commerce Law of the People's Republic of Supplier Quality Management System
Suofeiya Home Co. Ltd. Financial Management China
System
Supplier Review Management Guidelines
Environmental Protection Law of the People's Group EHS Responsibility System
Republic of China
Logistics Vendor Evaluation Operation Guidelines
Energy Conservation Law of the People's Republic of Safety Accident Management Measures
China
Product Quality Law of the People's Republic of China Suofeiya Home Co. Ltd.’s Four Major System
Circular Economy Promotion Law of the People's EHS Meeting Management Measures Management Manual
Republic of China
Regulations on Monitoring Chemicals Management in
Suofeiya Service Guidelines
Water Law of the People's Republic of China Environmental Protection Management System the People's Republic of Chinaople's Republic of China
Custom Wooden Cabinet Core Quality Grading
Water Pollution Prevention and Control Law of the Civil Code of the People's Republic of ChinaEnergy-saving Management System Standards
People's Republic of China
Consumer Protection Law of the People's Republic of Childcare and Infant Living Environment Safety
Air Pollution Prevention and Control Law of the Energy Management System
People's Republic of China China Control SpecificationsQuality
Environmental Labeling Product Technical Require-
Opinions of the Central Committee of the Communist Party of
China (CPC) and the State Council on the Complete and Innovation
Group Quality Evaluation Guidelines
ments
Accurate Implementation of the New Development Concept Group EHS Committee Structure and Responsibilities
and the Proper Implementation of Carbon Peaking and Carbon Quality Star Evaluation Management Guidelines
Neutral Work
Customer Complaints and Goods Rejection Process-
Rainwater and Sewage Drainage Management
Carbon Peaking Action Plan Before 2030 ing Procedures
Measures
Promoting Rainwater and Sewage Drainage Management Product Optimization Management Guidelines
Pollution Discharge Permit Management Regulations Measures
Green Technology Achievement Application Management
Guidelines
Development Environmental Management System Requirements Factory General Industrial Waste Recycling and
and Guidelines (GB/T24001-2016) Disposal Management Measures 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
Fixed Asset Disposal and Scrapping Implementation
Urban Drainage and Sewage Treatment Regulations
Details Regulations on Implementation of Labor Contract
Employee Training Management System
Industrial Enterprise Boundary Environmental Noise Law of the People's Republic of China
Energy Management System Manual
Emission Standards
Social Security Law of the People's Republic of China Performance Management Guidelines
Environmental Labeling Product Technical Require- Factory Solid Waste Disposal Management Specifi- Employment Promotion Law of the People's Republic Quarterly Excellent Employee Selection Management
ments - Cabinets (HJ/T432-2008) cations of ChinaJoint Growth Guidelines
Employment Service and Employment Management
Provisions Human Resources Management System
Environmental Labeling Product Technical Require- Pollutant Emissions Declaration Registration Corporate Culture Management System
ments - Furniture (HJ/2547-2016) Management Measures
Corporate Culture Implementation Management
Measures
Employee Handbook
Formaldehyde Release Grading for Engineered Environmental Monitoring and Measurement Control
Wood and Their Products (GB/T39600-2021) Procedures Suofeiya Employee General Health Examination
Management Guidelines
9192
沪公网安备31011802005267号
