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TCL智家:2024年度环境、社会和公司治理报告(英文版)

深圳证券交易所 04-22 00:00 查看全文

TCL智家 --%

Guangdong TCL Smart Home Appliances Co.Ltd.Stock Code: 002668

Abbr. TCL Smart Home

2024 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORTContents

About the Report 04

Implement Green Uphold Product Create a Happy

Message from the Board 01 Development 02 Responsibility 03 Workplace

of Directors 06

About TCL Smart Home 08

Response to Climate Change 24 R&D and Innovation 40 Employee Employment 62

ESG Management 10

Green Production 28 Product Quality and Safety 49 Talent Development 64

Green Culture 35 Digital and Intelligent Transformation 54 Care for Employees 67

Green Industry Chain 36 Customer Service 56 Occupational Health and Safety 72

Outlook for the Future 93

Appendix 94

04 Building a Corporate Harmonious Society 05 Governance

Responsible Supply Chain 76 Party Building Leadership 84

Social Public Welfare 80 Corporate Governance 85

Legal Compliance and Risk Management 87

Anti-corruption and Business ethics 89

Information Security and Privacy Protection 902024 Guangdong TCL Smart Home Appliances Co. Ltd. About the Report

Environmental Social and Governance Report

About the Report

Reporting Period Standards of Reference for Report

This is an annual report covering the period from January 1 2024 to December 31 2024 (hereinafter referred to as This Report is prepared in accordance with the Self-Regulatory Guidelines for Listed Companies No. 17 –

the "Reporting Period"). To improve the completeness of the report some of the data is beyond the above range. Sustainability Reporting (Trial) issued by the Shenzhen Stock Exchange (hereinafter referred to as the "SZSE

Guidelines"). It also draws reference from internationally recognized standards and frameworks including the

Global Reporting Initiative (GRI) Sustainability Reporting Standards (2021) the UN Sustainable Development

Goals (SDGs) the Ten Principles of the UN Global Compact (UNGC) the International Financial Reporting

Standards – Sustainability Disclosure Standards issued by the International Sustainability Standards Board (ISSB)

Scope of Organization and the European Sustainability Reporting Standards (ESRS).The scope of the Report covers Guangdong TCL Smart Home Appliances Co. Ltd. and its principal subsidiaries.For ease of presentation and perusal " TCL Smart Home " "the Company" "we" and "us" in the Report refer to

Guangdong TCL Smart Home Co. Ltd. and its principal subsidiaries below unless otherwise specified. Report Reliability Assurance

The Company guarantees that the content of this Report does not contain any false records or misleading

statements.Full Name of Principal Subsidiaries Short Name

TCL Home Appliances (Hefei) Co. Ltd. Hefei Home Appliances Access to the Report

Homa Appliances Co. Ltd. Homa Appliances You can download this report and obtain more information about the Company's sustainability and ESG

practices by visiting our official website: https://www.tclsmarthome.com/.Report Data Description Revision of Previous Reports Information

All data and examples used in this Report are derived from the Company's official documents statistical reports

as well as summaries and statistics on the performance of responsibilities. None.

1 22024 Guangdong TCL Smart Home Appliances Co. Ltd. Message from the Board of Directors

Environmental Social and Governance Report

Message from

the Board of Directors

In the wave of industrial transformation driven by the deep integration of artificial intelligence and the Internet of To deepen strategic layout and lead industry transformation. This year we have invested in artificial

Things TCL Smart Home keeps pace with the times adhering to its vision of becoming a global leader in smart intelligence technology continuously exploring the breadth and depth of technology. The Company has

household appliances. It firmly promotes its globalization strategy takes AI smart home appliance as the direction launched multiple high-capacity embedded refrigerators and our "Molecular freshness preservation

of development and realizes the interconnection collaborative operation and self-learning optimization of home technology+" and "TCL-40℃ crystal film deep-freezing freshness preservation technology" have been appraised

appliance products through scientific and technological innovations so as to bring forward-looking scientific and by the China National Light Industry Council and the China General Chamber of Commerce as reaching the

technological experiences and smart and healthy life for the users and to promote the further development of the international leading level. In the field of washing machines we have developed an innovative super drum

industry through science and technology. washing machine achieving a washing efficiency ratio of up to 1.2. In 2024 TCL Smart Home's R&D investment

reached 643 million yuan and a total of 2167 patents were granted

In the face of the deepening evolution of the global consensus on sustainable development TCL Smart Home

actively fulfills its ESG (environmental social and governance) responsibilities establishing a sustainable To empower talent development and undertake social responsibility. TCL Smart Home focuses on

development model that is environmentally friendly socially beneficial and governed with excellence. We are employee growth has established a comprehensive rights and interests protection and career development

fully aware that the creation of corporate value is not only reflected in the growth of business performance system created a diverse and inclusive workplace environment and provided competitive development

but also lies in the responsibility for global environmental governance the continuous contribution to social opportunities for employees. During the reporting period the total number of employees in the company

welfare and the continuous improvement of the corporate governance system. was 14923 and the number of employee training sessions reached 3440. At the same time TCL Smart Home

actively fulfills its corporate social responsibility contributing to the construction of a harmonious society

To build a green smart manufacturing system and fulfill our dual carbon commitments. This year we have through tangible compassion and concrete actions. In 2024 TCL Smart Home organized a total of 34 employee

focused on creating a green smart manufacturing system that spans the entire value chain promoting green volunteer activities to convey corporate warmth and contribute to the harmonious development of society.transformation in all aspects from procurement research and development production to transportation.In terms of product design we integrate the environmental impact of the entire product lifecycle into the To improve the governance structure and consolidate the foundation for development. This year we have

product research and development process continuously improving product energy efficiency and developing continuously optimized the corporate governance structure and internal management system implemented

environmentally friendly green and low-carbon products. In production we actively promote the transition to multi-level risk management strategies and ensured the compliant and efficient operation of our business.green energy continuously increasing the proportion of clean energy use by strengthening the construction The Company has strengthened communication with investors and stakeholders improved the transparency of

of projects such as distributed photovoltaic and photovoltaic energy storage in our parks. In 2024 TCL Smart information disclosure promoted stable operations facilitated sustainable development and set an excellent

Home's self-consumed photovoltaic power generation reached 21170382 kWh. At the same time we drive governance model for the industry.the development of a circular economy and reduce the environmental impact of TCL Smart Home's production

and operations through process innovation and improving the comprehensive utilization rate of waste. We also Looking ahead we also welcome an important milestone in international cooperation - TCL Group officially

extend green practices to stakeholders such as employees and suppliers driving the development of a green signed an agreement with the International Olympic Committee to become an Olympic Global Partner. TCL

ecological industry. Smart Home will provide innovative technologies and product services including refrigerators and washing

machines for the Olympic Games further enhancing our brand influence. We will continue to practice the

concept of sustainable development firmly promote the globalization strategy accelerate green and intelligent

innovation and leverage technology to drive industry transformation.

3 42024 Guangdong TCL Smart Home Appliances Co. Ltd. About TCL Smart Home

Environmental Social and Governance Report

About TCL Smart Home Development Milestones

2002 Homa Incorporation

Operation of the Company's first factory

2003 Launch of the first "Made by Homa" product

Company Profile

2005 Sales volume exceeded 1 million units for the first time

Operation of Homa's second factory

Guangdong TCL Smart Home Appliances Co. Ltd. (hereinafter referred to as the "Company") was established in 2002 and was

listed on the Shenzhen Stock Exchange in April 2012 under the stock code 002668.SZ. In May 2021 the Company's controlling

shareholder changed to TCL Home Appliances Group marking the beginning of a new phase of development. The Company 2008-2009 Ranked No. 1 Chinese refrigerator exporter to Europe for the first time

is committed to becoming a world-leading smart home appliance enterprise firmly promoting the globalization strategy

taking AI smart home appliance as the direction of development and realizing the interconnection collaborative operation

and self-learning optimization of home appliance products through scientific and technological innovations so as to bring 2012 Listed on the Shenzhen Stock Exchange

forward-looking scientific and technological experiences and smart and healthy life for the users and to promote the further Annual sales volume exceeded 5 million units for the first time

development of the industry through science and technology. Operation of Homa's third factory and accessories sub-factory

The Company has two core production and operation bodies Hefei Home Appliances and Homa Appliances its main

products include refrigerators (including freezers) and washing machines. As of 2024 the Company has ranked No. 1 2013 Development and launch of the very first all-new air-cooled side-by-side refrigerator FF2-66

in China's refrigerator exports for 16 consecutive years and No. 1 in exports to Europe for 17 consecutive years. Its TCL-

branded washing machines have consistently ranked among the top three in domestic sales within the industry.

2018 Biggest Chinese refrigerator exporter to Europe for the 10th consecutive year

2019 Homa Appliances' advent of the intelligent dual-inverter technology and single-system with multi-temperature

control technology

Strategic Vision 2020 Annual sales exceeded 10 million units

Homa owned 9 production sites

Looking ahead TCL Smart Home is committed to becoming a world-leading smart home appliance enterprise firmly

promoting the globalization strategy taking AI smart home appliance as the direction of development and realizing the 2021 The controlling shareholder of Homa Appliances was changed to TCL Home Appliances Group Co. Ltd and the

interconnection collaborative operation and self-learning optimization of home appliance products through scientific and actual controller was changed to Mr. Li Dongsheng.technological innovations so as to bring forward-looking scientific and technological experiences and smart and healthy life

for the users and to promote the further development of the industry through science and technology. Homa held the groundbreaking ceremony of the smart manufacturing base for high-end air-cooled refrigerator Annual revenue exceeded RMB 10 billion

The subsidiary Hefei Home Appliances unswervingly shaping the "technology-driven vitality-first" organizational core. It Full termination of the Fintech business and disposal of all related assets

has established the core strategic path of "brand-leading value global efficiency operation with a focus on mid-to-high-

end breakthroughs" and persistently pursues excellence in product quality and performance experience while rapidly 2022 Homa Group realized net income of 424 million yuan from attributable sources reversing the loss year on year

building and enhancing its core competencies with a precise focus on key regions and niche markets striving to step Homa Appliances' global sales volume exceeded 100 million units

confidently into the first tier of the industry.The subsidiary Homa Appliances continuously practices its unique strategic positioning as a "Global Professional

Refrigerator ODM Supplier" focusing on refrigerator and freezer businesses and adhering to a globalization-driven 2023 Homa Appliances: High-end Air-cooled Refrigerator Intelligent Manufacturing Base

operating model. It continues to deepen its expertise in frost-free technologies and promotes the extensive application Acquired TCL Home Appliances (Hefei) Co. Ltd. to further expand the refrigerator/washing machine business

of intelligent manufacturing providing global customers with refrigerator and freezer products with both top quality and

high-cost performance guided by a relentless pursuit of professional excellence.

2024 the Company was officially renamed Guangdong TCL Smart Home Appliances Co. Ltd.

5 62024 Guangdong TCL Smart Home Appliances Co. Ltd. ESG Management

Environmental Social and Governance Report

Stakeholder Communication

TCL Smart Home has established a comprehensive mechanism for stakeholders' communication providing diversified communication

channels to ensure efficient interaction and information sharing with all parties. Through multiple channels such as the official website the

"Interactive Easy" section of the Shenzhen Stock Exchange telephone and email the Company regularly collects understands and responds

to the demands of stakeholders actively promoting a transparent and open communication environment. At the same time the Company

works together with stakeholders to jointly promote the achievement of sustainable development goals and continuously optimize business

practices and social responsibility.ESG Management Stakeholders Concerns Communication Channels Feedback and Practice

Compliant operation and Government official website Operate in good faith and compliance

risk management announcement release with the law and optimize internal control

Government Anti-corruption and Consultation and compliance management systems

ESG Governance and Regulatory business ethics Seminar forum Regularly carry out information disclosure

Authorities Corporate governance Promote energy transformation and

Response to climate energy-saving technological upgrading

TCL Smart Home is committed to integrating ESG management principles into all change and develop green products

aspects of its production and operations. With a proactive approach to addressing

ESG risks and challenges the Company continuously enhances its ESG practices Corporate governance General meeting of shareholders

Optimize internal control and compliance

and promotes ESG awareness across the organization contributing the strength of Compliant operation and performance briefings management systems

Chinese enterprises to achieving the 2030 United Nations Sustainable Development Shareholders risk management

Roadshow on-site reception Respond to investor inquiries and

Goals. and Investors ESG governance Telephone Shenzhen Stock regularly disclose information

Exchange Interactive Easy email

TCL Smart Home actively supports the ESG initiatives of TCL Industries and promotes etc.the implementation of ESG management across the organization. Hefei Home

Appliances as a core member has joined the TCL Industries ESG Committee Product quality and Product launch events industry Strengthen technological innovation and

and serves as an industry representative in the Committee Office responsible safety exhibitions etc. enhance product quality

for executing Hefei Home Appliances' ESG strategy information disclosure and Customer service

Online customer service Conduct customer satisfaction surveys

implementation. Homa Appliances has established its own ESG Committee Customers R&D and innovation telephone email and demand research continuously

which is specifically tasked with overseeing and advancing the execution of the improve the customer service experience Responsible marketing

and enhance product qualityCompany's ESG policies. Information security and Enhance customer privacy protection

privacy protection

Supply chain Supplier exchange meeting Standardize the procurement process

management Supplier training improve the supplier management

Suppliers and Anti-corruption and system and strengthen daily

Partners business ethics communication with suppliers

Conduct supplier training and

environmental and social assessments

Employee rights and Employee congress morning Establish a labor union improve the

protection briefings regular meeting employee communication and exchange

Diversity and equality Employee training and mechanism and ensure smooth

Occupational health and communication

communication channels

safety

Employee feedback mailbox Strengthen occupational health and

Employees safety managementEmployee training and

development Establish a scientific and clear human

resource management system and

promotion mechanism

Regularly organize team building or

cultural and sports activities

Social development Public benefit activities Assist social welfare and carry out

Response to climate Environmental activities volunteer activities

Community change Develop green production and strengthen

Pollution and waste the management of three wastes

management

7 82024 Guangdong TCL Smart Home Appliances Co. Ltd. ESG Management

Environmental Social and Governance Report

Materiality Analysis Issue Inventory and Impact Assessment

Based on TCL Smart Home Appliances' ESG background and business reality and in accordance with authoritative domestic and international

TCL Smart Home carried out a materiality analysis to identify key topics across environmental social and governance aspects in a scientific standards and assessment methods combined with stakeholder communication results and on the requirement set by the Shenzhen

and accurate manner. The analysis was conducted with reference to both domestic and international policies industry standards and peer Stock Exchange's Guidelines TCL Smart Home identified 22 key topics across environmental social and governance dimensions including

practices. Through questionnaires interviews and other forms of engagement the Company maintained in-depth communication with key 7 environmental topics 10 social topics and 5 governance topics providing important guidance and reference for the Company's future

stakeholders to fully understand their expectations and demands regarding TCL's sustainable development thereby providing strong support sustainability strategy performance management and information disclosure.for strategic planning and decision-making.Based on the judgment criteria for impact materiality and financial materiality as outlined in the Shenzhen Stock Exchange's

Guidelines and referring to GRI 3: Material Topics and International Financial Reporting Sustainability Disclosure Standard No. 1 -

General Requirements for Sustainability-Related Financial Information Disclosure (IFRS S1) TCL Smart Home Appliances updated its

assessment methodology and carried out double materiality assessment integrating a financial perspective into the impact materiality

assessment. Energy management

Product quality and safety

Assessment Procedure Circular economy and resource utilization Response to climate change

Compliance and Risk Management Occupational health and safety

Employee training and development R&D and innovation

Step Key Work Content Protection of employees' rights and interests Supply chain management

Green products Pollution and waste management

Analyze the Company's activities Analyze the key stakeholder concerns based on the Company's business operations Water resource management

ESG Governance

Anti-corruption and business ethics

and business relationships products and services value chain and industry trends and interpret domestic and Environmental management system Customer serviceinternational sustainability standards Responsible marketing

Corporate governance Information security and privacy protection

Develop an issue inventory Identify and screen Company's ESG issues analyze the impacts risks and

Diversity and equal opportunities

Community development

opportunities related to relevant ESG issues.Assess and confirm issue Evaluate and rank the impact and financial materiality of issues based on the

materiality Company's situation industry development trends and authoritative domestic and international studies.E S G

Review and report Highlight the issues of higher materiality during the reporting period after review and confirmation by the Board of Directors. Financial importance for the Company

Low importance High importance

Assessment Method

During the reporting period TCL Smart Home Appliance conducted double materiality assessments through online questionnaire surveys Environment Social Governance

and in-depth interviews engaging with the internal management customers suppliers government agencies industry associations and

other stakeholders globally to ensure the scientific and comprehensiveness of the assessment. Environmental management system Product quality and safety Corporate governance

Response to climate change R&D and innovation Anti-corruption and business ethics

Energy management Customer service Information security and privacy

Impact materiality: Pollution and waste management

Supply chain management protection

Conduct a comprehensive assessment of both positive and negative impacts actual and potential effects and evaluate Water resource management

the likelihood and extent of these impacts. This in-depth assessment examines whether the Company's ESG-related issues Circular economy and resource Responsible marketing Compliance and Risk Management

will have a significant impact on the environment economy and society. utilization Protection of employees' rights and ESG Governance

Green products interests

Financial materiality: Diversity and equal opportunities

The Company comprehensively evaluates the likelihood of impact and the degree of financial impact over short-term Employee training and development

medium-term and long-term time horizons. The Company thoroughly analyzes the impact of ESG issues on the Company's

business model operations and financial indicators across multiple dimensions. Occupational health and safety

Community development

Note: The Company defines its time horizons as short-term (up to and including 1 year) medium-term (from 1 to 5 years inclusive) and long-term (beyond 5 years).

910

Impor tance to the Company2024 Guangdong TCL Smart Home Appliances Co. Ltd. ESG Management

Environmental Social and Governance Report

Impact Risk and Opportunity of Materiality Topics

Topics Scope of Impact Impact Risk Opportunity Topics Scope of Impact impact cycle impact cycle Impact Risk Opportunity

Response Full value Short- By optimizing Physical risks: Extreme Energy conservation Energy Self- Short- By optimizing the energy Cost risk: Production Cost reduction

to climate chain term manufacturing processes weather leads to and emission management operation term utilization system and equipment that is highly and efficiency

change medium- utilizing renewable work stoppages and reduction: Develop medium- improving energy efficiency dependent on traditional enhancement: Actively

term and energy designing low- production halts green operational term and the Company has reduced energy may lead to promoting energy-saving

long- energy products and resulting in decreased technologies and long- their dependence on non- escalating energy costs renovation projects and

term promoting green logistics production capacity emission reduction term renewable energy thereby if it is not updated in a eliminating inefficient

to drive the regulation of and thus reduced measures increase the mitigating the damage to timely manner. and high-energy-

greenhouse gas emissions revenue; long-term use of clean energy and the ecological environment consumption equipment

across the upstream and climate change leads reduce operational costs. caused by energy extraction Production stability and thus providing

downstream value chains to rising energy prices Market competitiveness: and utilization.risk: The lack of effective

we can contribute to the and increased operating energy management

the Company with

achievement of the national costs; Continuously promote and planning capabilities

opportunities to improve

"dual carbon" goals. product innovation may lead to power

energy efficiency and

Transition risks: develop green and supply stability issues reduce operating costs.the development efficient products and during extreme weather Enhancing enterprise

investment and services to attract more affecting corporate resilience: By

implementation of customers. production work. substituting traditional

clean technologies Policy incentives: The energy with green lead to short-term cost energy reducing

increases. Developed government provides dependence on

countries have set subsidies or tax traditional energy and

"carbon tariffs" requiring incentives related to "dual carbon" goals mitigating the impact the Company to increase of fossil energy price

investment in green and the Company can leverage these policies fluctuations on corporate products to cope with to promote low-carbon operating costs."green barriers" in

international trade transformation and business growth. Pollution Self- Short- Establishing scientific and Compliance risk: The Not involved

and waste operation term reasonable methods for local governments where

Environmental Self- Short- The Company Compliance and Not involved management community medium- collecting processing the Company operates

management operation term and has established cost risks: If the term and and disposing of waste both domestically and

system medium- a comprehensive environmental long- can help reduce the its internationally have clear

term environmental management system term damage on ecosystems and legal and regulatory

management system is not sound or not contribute to the protection requirements for waste

and actively obtained implemented properly of biodiversity and human disposal. Failure to

ISO 14001 environmental the Company may health. meet these standards

management certification face regulatory may result in fines or

effectively reducing the penalties and fines sanctions affecting the

damage to the surrounding due to environmental Company's operations

ecosystem caused by the pollution; domestic and business expansion.discharge of wastewater and international Cost risk: The costs of

waste gas and solid waste environmental policies waste disposal and

and lowering the risk of are facing a tightening resource recycling may

natural environmental trend which may be high and these

pollution. lead to systematic costs may further

transformation with high increase when stricter

costs for the Company in environmental policies

a short period of time. are implemented.Reputation risk: If the

Company is punished for Water Self- Short- By optimizing water use Risk of resource Not involved

environmental violations resources operation term efficiency and implementing scarcity: In regions with

it may lead to pressure management medium- full lifecycle management scarce water resources

from public opinion and term and of water resources the excessive water usage

a decline in customer long- Company can alleviate or wastage may lead

trust. term regional water scarcity to insufficient water

issues reduce the impact on supply affecting project

the ecological environment operations and future

and provide clean and development planning.sustainable water resources

for local communities.Circular Self- Medium- By promoting the recycling Not involved Cost reduction and

economy operation term and of electronic wastes and efficiency enhancement:

and resource and long- packaging materials we Through resource

utilization downstream term have reduced environmental recovery and recycling

value chain pollution caused by the Company has the

landfilling and incineration opportunity to reduce raw

facilitated efficient resource material costs enhance

reuse and effectively production efficiency

minimized resource waste. and improve resource

utilization.

11 122024 Guangdong TCL Smart Home Appliances Co. Ltd. ESG Management

Environmental Social and Governance Report

Topics Scope of Impact Scope of Impact impact cycle Impact Risk Opportunity Topics impact cycle Impact Risk Opportunity

Green Full value Short- By promoting the research Cost risk: Developing Market competitiveness: Supply chain Upstream Short- By formulating Operational risk: Industry ecosystem

products chain term development and green technologies and Product design that management value chain term and comprehensive Potential ESG issues in building: By enhancing

medium- production of energy- green products requires incorporates ESG principles and Self- medium- management measures the supply chain (such the compliance and ESG

term and saving environmentally significant resource can help the Company operation term processes and related as forced labor conflict standards of the supply

long- friendly and healthy investment increasing obtain policy support and systems for supplier minerals corruption etc.) chain the enterprise

term household appliances the Company's R&D green financial resources. introduction evaluation and may lead to instability in can attract more high-

the Company can reduce costs. supervision we ensure the service supply affecting quality partners.energy consumption and introduction of high-quality the normal operation of Systematic supply chain

carbon emissions during the Supply chain collaboration risk: and compliant suppliers. At the Company. management contributes product lifecycle thereby the same time the Company

minimizing environmental Creating green products also provides supplier Cost risk: Fluctuations in

to the sustainability of

impact. The promotion throughout their entire training to help suppliers raw material prices cause

product and service

of green products helps lifecycle requires fluctuations and risks in

provision promoting

consumers develop close collaboration

improve operational the Company's supply a stable and efficient

environmentally friendly with suppliers

efficiency build a mutually chain costs. supply chain ecosystem.consumption habits and increasing supply chain

beneficial supply chain

procurement costs and system enhance industry contributes to the green delivery risks compliance and promote development of society. the healthy development of

the industry.Product quality Full value Short- High-quality and safe Reputation risk: Product Market competitiveness:

and safety chain term product can directly enhance quality issues may By implementing high- Responsible Downstream Short- By strictly adhering to Cost and compliance Market Competence:

medium- customers satisfaction and lead to lawsuits fines standard product safety marketing value chain term and advertising compliance risks: Non-compliant Responsible marketing

term and trust indirectly promoting and damage to the management to ensure medium- requirements and advertising content may can assist businesses in

long- consumer support for Company's reputation. product quality and term implementing responsible lead to legal litigation shaping a sustainable

term sustainable development. safety brand value and marketing strategies and regulatory penalties. brand image enhancing

Furthermore safe products market share can be we can help safeguard Reputation risk: customer trust and produced in accordance enhanced. consumer rights and loyalty and ultimately

with industry standards help interests enhance social Consumer criticism of

reduce social issues caused trust in marketing activities irresponsible marketing

driving sales and market

share growth.by product defects such as and ultimately promote the practices may affect the

harm to user health. healthy development of the Company's reputation.overall market.R&D and Self- Short- Through research and Not involved Market competitiveness:

innovation operation term development innovation we Through continuous Protection of Self- Short- The enterprise provide Market and reputation Market and reputation:

and medium- aim to provide consumers innovation the Company employees' operation term legal and reasonable rights risks: Violations of By fostering a positive

downstream term and with products that are more can maintain its leading rights and medium- and interests protection human rights and labor corporate culture and a

value chain long- low-carbon intelligent position in technology interests term and as well as a good working rights and interests (such caring environment the

term and user-friendly thereby and the market set long- environment enhancing as forced labor) may Company can enhance

promoting technological industry benchmarks term employees' sense of pose compliance risks corporate cohesion

advancement and and attract more happiness and belonging and affect the reputation and employee loyalty

driving overall industry strategic partners and and promoting social and image of the further boosting social

development. investors thereby employment and labor Company. recognition of their

enhancing the overall stability. Internal risk: Lack corporate image.competitive advantage

of the enterprise. of protection for employee rights and

Cost reduction interests may lead to

and efficiency employee turnover risks

enhancement: New reducing the Company's

technologies and productivity.processes driven by

innovation can improve

resource utilization Diversity Self- Short- By establishing a N/A Corporate innovation:

efficiency reduce and equal operation term comprehensive DEI A diverse and versatile

operating costs and opportunities and medium- management system a talent team helps

provide support for the community term and more inclusive and open enhance corporate

sustainable development long- working environment has productivity and

strategy of the enterprise. term been created within the creativity contributing to enterprise which helps business growth.attract and retain diverse

Customer Self- Short- By establishing an Reputation risk: Market competitiveness: talents further promoting

service operation term intelligent service platform Inadequate after-sales Efficient and high-quality innovation and team

and medium- and optimizing after-sales systems may lead to after-sales service collaboration.downstream term and management processes delayed handling of management can form

value chain long- we have provided customer complaints a brand competitive

term consumers with a more or service failures advantage help the

efficient and personalized potentially damaging enterprise further expand

service experience thereby the brand image and its customer base and

enhancing user satisfaction causing customer loss. enhance customer

and brand loyalty. loyalty.

13 142024 Guangdong TCL Smart Home Appliances Co. Ltd. ESG Management

Environmental Social and Governance Report

Topics Scope of Impact Scope of Impact impact cycle Impact Risk Opportunity Topics impact cycle Impact Risk Opportunity

Staff Self- Short- Through a fair promotion Internal risks: An Market competitiveness: Anti- Self- Short- By promoting the Compliance cost Market competitiveness:

training and operation term mechanism and imperfect training system The growth of employee corruption operation term and implementation of business market and reputation A well-established

development medium- professional training or uneven resource skills helps to better and business medium- ethics and anti-corruption risks: Violating business business ethics

term and the Company effectively allocation may lead to adapt to the rapidly ethics term policies we can help ethics may lead to management system

long- enhance the vocational skills insufficient skill growth changing business maintain market fairness legal and regulatory can ensure the stability

term of its employees thereby among talents and environment and reduce the damage caused risks resulting in legal of corporate compliance

contributing to the overall obstacles to promotion enhance the Company's by corrupt practices to litigation and a crisis of increase the trust of

improvement of talent resulting in internal market competitiveness. the allocation of social public trust and causing customers and partners

quality in society. talent loss and reducing Talent Attraction: resources advocate financial losses and and facilitate long-term company productivity. By establishing a honest cooperation and loss of customers and cooperation and profit

comprehensive promote the development partners. growth.employee development of a healthier business

system more high- ecosystem.quality talents can

be attracted to join Information Self- Short- By establishing a Technical risk: If the Not involved

providing a solid talent security operation term and comprehensive privacy industrial internet does

base for the Company's and privacy and medium- and data security system not adopt encryption

development. protection downstream term we can fully safeguard the systems and related

value chain privacy and data security security measures there

Occupational Self- Short- By providing comprehensive Safety risk: If safety N/A of customers and other will be network security

health and operation term occupational health management is not in relevant parties. risks affecting the

safety medium- management and regular place it may lead to Company's production

term and safety training the incidence work-related accidents and operation.long- of occupational diseases resulting in employee Compliance and

term and accidents has been casualties and affecting reputation risks:

effectively reduced thereby the normal operation of Leakage of customer

indirectly improving the the enterprise. privacy or data will bring

quality of life of employees. Health risk: Employees risks of violating laws and

may be exposed to regulations reducing the

harmful factors such Company's credibility

as dust and noise and affecting the image

increasing the likelihood of the enterprise.of occupational diseases.Compliance risk: Compliant Self- long- By establishing a Technical risk: If the Not involved

Failure to comply with management operation term comprehensive privacy industrial internet does

occupational health and risk and data security system not adopt encryption

and safety regulations management we can fully safeguard the systems and related

in domestic and foreign privacy and data security security measures there

operational locations of customers and other will be network security

may lead to legal relevant parties. risks affecting the

proceedings fines and Company's production

affect the reputation and and operation.financial status of the Compliance and

enterprise. reputation risks:

Leakage of customer

Community Community Medium- Participating in public N/A Industry ecosystem privacy or data will bring

development term and welfare activities such as building and reputation risks of violating laws and

long- assisting students and enhancement: By regulations reducing the

term respecting the elderly actively taking social Company's credibility

improving the living responsibility the and affecting the image

conditions of vulnerable Company can further of the enterprise.groups and promoting deepen its connections

social equity and stability. with the community ESG Full value Medium- By establishing a N/A Market opportunities:

and society through Governance chain term and systematic ESG governance Systematic ESG

public welfare activities long- framework we aim to governance can enhance

enhance its brand image term enhance the Company's a company's market

and create a favorable overall performance in appeal and capital

community environment environmental social recognition.for their long-term stable and governance aspects

operation. strengthen communication Long-term cooperation:

and management among Sound governance stable operations and

Corporate Self- Short- By establishing an N/A Market competitiveness: all ESG stakeholders and effective and transparent

governance operation term and efficient diversified and By enhancing address the concerns of various stakeholders. communication with system medium- professional corporate governance diversity stakeholders help attract

term governance system the and professionalism the and establish long-term

transparency and credibility enterprise can establish partnerships.of enterprise operations a model corporate image

have been enhanced in domestic and foreign

setting an industry markets attracting

benchmark. This helps more investment

promote the improvement and cooperation

of governance standards opportunities.within the industry and

fosters a favorable business

environment.

15 162024 Guangdong TCL Smart Home Appliances Co. Ltd. ESG Management

Environmental Social and Governance Report

SDG's Road Map

SDGs Goals TCL Smart Home Initiatives SDGs Goals TCL Smart Home Initiatives

Goal 3 promoting occupational health and safety at all production Goal 9 Strengthening talent recruitment and R&D investment

Good health & well-being and operation bases by regularly organizing medical Industry innovation & infrastructure establishing multiple research centers to drive product

check-ups to protect employees' health and well-being. innovation while actively engaging in industry dialogues

Ensure healthy lives and promote well-being for all Build resilient infrastructure promote inclusive and technical exchanges to jointly advance industrial

and sustainable industrialization a innovation.Focusing on talent development a multi-level employee

Goal 4 training system has been established with diversified Goal 11 Actively engaging in community welfare initiatives

Quality Education training programs encouraging continuous learning. Sustainable cities & communities encouraging employee volunteerism and contributing to

the development of harmonious civilized and sustainable

Ensure inclusive and equitable quality education Leveraging cutting-edge technological strengths study- Make cities and human settlements inclusive cities and communities.and promote lifelong learning opportunities for oriented programs have been designed for student groups safe resilient and sustainable

all of all ages helping enhance scientific literacy through

immersive experiences and inspiring deep interest and

curiosity in science and technology education.Efforts have been continuously made across raw material

sourcing production and logistics to advance the

Goal 5 Upholding zero tolerance for workplace discrimination Goal 12 transition toward clean energy. Environmentally friendly

Gender Equality harassment coercion threats and violence; promoting Responsible consumption & production materials are prioritized advanced green manufacturing

equal pay for equal work and fostering a diverse and processes are adopted and recyclable packaging is used

Achieve gender equality and empower all inclusive workplace environment built on equality and Ensure sustainable consumption and production to ensure environmental compliance throughout the entire

women and girls respect. patterns product life cycle.Meanwhile through technological innovation TCL Smart

Home minimizes environmental impact by reducing and

repurposing waste generated during production.Goal 7 Deploying distributed photovoltaic and energy storage Goal 13 Promoting carbon accounting integrating climate

Affordable & clean energy projects to accelerate the transition to clean energy and Climate action response into business strategy identifying climate risks

provide cost-effective clean energy for production. and key countermeasures developing green production

Ensure access to affordable reliable sustainable Take urgent action to combat climate change models and enhancing full life-cycle management of

and modern energy for all and its impacts green products with the aim of advancing comprehensive

climate action.Goal 8 Providing an equal and safe working environment Goal 16 Ensuring zero tolerance for corruption upholding fairness

Decent work & economic growth while offering sustainable growth opportunities through Peace justice & strong institutions and transparency and empowering employee voices

systematic training programs. through open inclusive communication channels.Promote sustained inclusive and sustainable Promote peaceful and inclusive societies for

e c o n o m i c g ro w t h f u l l a n d p ro d u c t i v e sustainable development provide access to

employment and decent work for all justice for all and build effective accountable and

inclusive institutions at all levels

17 182024 Guangdong TCL Smart Home Appliances Co. Ltd. Implement Green Development

Environmental Social and Governance Report

Implement

Green Development

TCL Smart Home takes action to protect the Earth deeply

embedding the green concept into i ts core corporate

development strategy. Through innovative technologies and

efficient management practices the Company actively reduces

its carbon footprint and leads the green transformation in the

industry. From production to products and from supply chain to

recycling chain the Company has established an environmental

protection system covering the entire lifecycle working together

with employees partners and users to stride towards a

sustainable future.SDGs addressed in this chapter

DEVELOPMENT

19 202024 Guangdong TCL Smart Home Appliances Co. Ltd. Implement Green Development

Environmental Social and Governance Report

Response to Against the backdrop of a global joint response to climate change the country has clearly set TCL Smart Home continuously monitors risks and opportunities related to climate change continuously strengthens its ability to identify the goals of "carbon peaking" and "carbon neutrality" and actively promoted strategic plans and assess the impact of risks integrates risk management into its daily production and operation processes and formulates relevant

Climate Change such as ecological civilization construction. As an important participant in the industry TCL response strategies tailored to the Company's specific situation.Smart Home actively responds to the national "dual carbon" strategy promotes green and

low-carbon innovation and initiates exploration and practice in response to climate change

through practical actions contributing to the global green development and transformation.Physical Risk Categories Impacts and Countermeasures

TCL Smart Home refers to the International Financial Reporting Standard on Sustainability

Disclosure (IFRS S1 S2) issued by the International Sustainability Standards Board (ISSB)

and the A-share Guidelines for Disclosure of Sustainability Information identifying Category Risk Scope of Impact

of risks factors impact cycle Potential impact Countermeasuressignificant climate change-related risks and opportunities in corporate operations

from four dimensions: governance strategy risk management indicators and targets. Acute risks Extreme Full value Short to Extreme weather events such as When selecting a location for a

It promotes the Company's climate governance efforts and enhances the Company's weather (such chain medium rainstorms floods and typhoons new factory full consideration

adaptability and resilience in response to the impacts of climate change. as rainstorm term triggered by climate change may should be given to local climatic

extreme damage the infrastructure and conditions and historical natural

heat flood production equipment of TCL disasters to avoid unstable climatic

typhoon etc.) Smart Home's various production factors.Governance TCL Smart Home continuously improves its corporate climate governance structure and operation bases directly

systematically promotes relevant management measures and regularly discloses resulting in asset losses. Track meteorological and

governance progress and key performance indicators related to climate change response emergency response warnings Extreme weather may affect at any time issue early warning

to ensure the effectiveness and transparency of the management process. Specifically employee commuting leading notifications initiate emergency

Hefei Home Appliances and Homa Appliances subsidiaries of TCL Smart Home have to business obstruction or plans and implement relevant

respectively established the greenhouse gas group to be responsible for the management interruption as well as work preventive measures.work related to carbon emission verification. stoppages and production halts causing the Company to bear Identify potential asset damage

indirect benefits losses such caused by climate risks and

as legal liabilities for breach of purchase necessary insurance in

Strategy In the process of implementing the response to climate change TCL Smart Home centered contract and compensation. advance.around the strategic layout of TCL Industry comprehensively fulfills its commitment to green Chronic Rising Full value Short-term Rising temperatures or drought Pay attention to the energy

development from five dimensions: establishing a green production model optimizing the risks average chain medium- may increase TCL Smart Home's structure of the operational

energy management system strengthening carbon emission management improving the temperature term and expenses on refrigeration region and scientifically arrange

entire life cycle of green products and building a green corporate culture. persistent long-term equipment electricity and water production plans.drought etc. resource usage thereby increasing

operating costs. Strengthen energy management

improve production efficiency and

Dimension Specific measures Continuous high temperatures reduce energy consumption ratio.may hinder outdoor work

or increase health risks for Strengthen the layout of new

By strengthening the construction of distributed employees. energy within the factory increase

Establish a green photovoltaic power generation projects in the park the proportion of power supply

production model Continuous high temperatures from new energy sources and we aim to increase the proportion of clean energy and drought may cause instability enhance the response capabilities

utilization. in production and power supply during peak electricity usage

affecting daily production and periods and power rationing

We carry out energy-saving renovations for operation. periods in summer.Optimize the energy infrastructure and general production equipment

management system establish and improve the energy management

Strengthen the special deployment

for heatstroke prevention and

platform and energy low-carbon management cooling measures and provide

framework. employees with heatstroke

prevention and cooling facilities

equipment and items.Strengthen carbon We build a carbon management platform and

emission management establ ish a carbon footpr int inventor y and verification and product carbon accounting system.By considering various aspects such as green

design green supply chain green manufacturing

Improve the entire lifecycle green packaging green logistics and green

of green products recycling we aim to guide and drive the upstream

and downstream industrial chains to jointly achieve

low-carbon development.An "energy conservation and carbon reduction"

Build a green initiative has been launched for all employees with

corporate culture themed publicity and training activities focusing on

green issues.

21 222024 Guangdong TCL Smart Home Appliances Co. Ltd. Implement Green Development

Environmental Social and Governance Report

Categories Impacts and Countermeasures of Transition Risks Identification of Climate-related Opportunities

Category Risk Scope of Impact Potential

of risks factors impact cycle Potential impact Countermeasures Opportunities Opportunity Description Performance in 2024

Policy and Tightening of Self- Medium to Governments both domestically Actively monitor and

compliance policies related operation long term and internationally are follow up changes in People's awareness of climate change is TCL Smart Home has always integrated the concept of green

risk to climate continuously increasing their relevant international and continuously increasing and customers' and low-carbon into the entire product lifecycle providing

change requirements for the supervision local government laws consumption attitudes are undergoing consumers with green and low-carbon products from Consumer

and information disclosure regulations and policies demand for low- a transformation. Both businesses and

dimensions such as research and development design

of corporate climate change and promptly adjust individual consumers are gradually manufacturing green logistics and packaging. Hefei Home

actions. Capital markets and operational strategies to carbon products forming a trend of incorporating low- Appliances has successively obtained honors such as "Third

regulatory bodies are paying ensure compliance. carbon environmental protection into Batch of National-level Green Manufacturing Factories"

close attention to TCL Smart their shopping considerations. "Provincial Green Factory" "Provincial Green Products" and

Home's environmental and Disclose timely climate- "National Industrial Internet Pilot Demonstration Enterprise".climate performance. Failure to related information of the

comply with relevant policies and Company including key

exchange information disclosure initiatives performance

requirements may lead to risk assessment results and

compliance risks. other crucial information. Risk Management TCL Smart Home has established a comprehensive risk management framework centered

With the continuous improvement Strengthen energy-saving around its business characteristics and internal and external risks. Leveraging the expertise

of China's carbon trading market technological innovation and improve energy of internal and external experts it systematically sorts out potential major climate impacts

if TCL Smart Home is included in efficiency. At the same time from multiple dimensions such as daily operations value chain and stakeholders

the carbon market management increase the proportion of accurately identifying risk categories and impact scopes. Based on the assessment results

it may increase the Company's green and clean energy TCL Smart Home formulates targeted climate action plans establishes a normalized

operating costs. usage to meet strict tracking mechanism continuously optimizes workflows strengthens the Company's ability

regulatory requirements. to respond to climate risks effectively enhances corporate resilience and facilitates the

Company's stable operation.Technical Cost of green Self- Medium to The capital market is gradually Integrate the concept of

risk transformation operation long term increasing its focus on the carbon green development into all

footprint of products. TCL Smart aspects of product research

Home needs to identify advanced and development and Indicators and Establishing scientific emission indicators and targets is a crucial prerequisite for

low-carbon technologies production and reduce enterprises to control carbon emissions and quantify the effectiveness of carbon

to reduce carbon emissions unnecessary emissions and Targets reduction. TCL Smart Home fully supports TCL Industry's dual-carbon goals of "striving

throughout the product's lifecycle waste during operations. to achieve carbon peaking by 2030 and operational carbon neutrality by 2050". In 2024

which may result in increased

We will continue to TCL Smart Home conducted a greenhouse gas inventory and verification in accordance costs in the short term.promote communication with GHG Protocol and ISO 14064-1:2018 surveying greenhouse gas emissions within the

and collaboration with Company's operational boundaries. In 2024 Hefei Home Appliances completed carbon

our supply chain partners inventory and verification covering scope 12 and 3 and obtained certification under the

and jointly drive the ISO 14064 standard. During the reporting period TCL Smart Home's total greenhouse gas

innovative development of emissions were 195377.63 tons of carbon dioxide with an emission strength of 10.64 tons

environmental protection of carbon dioxide/million output value.technologies.Market risk The awareness Self- Short to With the increasing public Strengthen market research

of downstream operation medium awareness of environmental timely understand consumer

consumer term protection and recognition of preferences and demands

groups green products products bearing and actively develop green

towards green environmentally friendly labels and low-carbon products 163472.88

products are more likely to gain consumer based on trends. Scope 2 83.67%

has been acceptance. If a company fails to

enhanced effectively meet the demand for

green and low-carbon products it

may face the risk of losing market Total greenhouse

share. gas emissions

Reputation Stakeholder Self- Medium to If a company fails to respond Strengthen stakeholder

Risk expectations operation long term appropriately to climate change communication promptly

stakeholders such as customers respond to requests from

investors the public and the all parties and maintain 31904.75

media may form negative open and transparent Scope 1 16.33%

opinions towards it thereby information.damaging the company's brand

value.

23 242024 Guangdong TCL Smart Home Appliances Co. Ltd. Implement Green Development

Environmental Social and Governance Report

Green TCL Smart Home is committed to building an efficient low-carbon and sustainable production model integrating environmental protection concepts into every aspect. By Emergency Management

Production improving the environmental management system strictly controlling pollution and waste

continuously optimizing energy efficiency and promoting the usage of clean energy TCL

Smart Home achieves the normalization and standardization of green and low-carbon No To effectively test the effectiveness of daily environmental safety management and

production and operation facilitating the harmonious coexistence of production and the leakage accidents promptly address management deficiencies TCL Smart Home formulates and implements

environment. an environmental emergency response plan annually as planned. Its subsidiaries Hefei

Home Appliances and Homa Appliances strictly adhere to the requirements of the

No Emergency Response Plan for Environmental Emergencies complete the filing process with

major environmental violations the local environmental protection department and conduct emergency drills on schedule

Environmental according to the plan content to ensure the effectiveness of the emergency response plan. Environmental Compliance In order to obtain external support in a timely manner when necessary TCL Smart Home

Management System No has established a close emergency linkage mechanism with external government units

The Company strictly adheres to the Environmental Protection Law of the People's penalties incurred for violations ensuring that the Company can achieve an organic combination of pre-management

2024,TCL Smart Home Republic of China and other relevant laws and regulations continuously improving

of environment-related laws and emergency response in the face of environmental risks effectively addressing various

various environmental management systems to minimize the impact of its production and regulations potential environmental challenges.and operation processes on the environment. To scientifically implement environmental Hefei Home Appliances has formulated the Emergency Response and Preparedness

362.60 management systems and objectives and continuously enhance environmental ten thousand yuan No Control Procedure to clarify the management process of emergency events. During the performance both Hefei Home Appliances and Homa Appliances subsidiaries of TCL same period internal emergency drills for hazardous waste wastewater and exhaust

Total investment Smart Home have successfully obtained ISO 14001 certification for their environmental lawsuits related to gas were conducted to strengthen employees' awareness of environmental safety

inenvironmentalgovernance and environmental regulationsmanagement systems. risk prevention and control. This ensures that employees can respond quickly operate

protection accurately and master emergency handling skills when facing sudden environmental

events thereby enhancing their ability to avoid risks.Honors of Hefei

Home Appliances:

The Third Batch of

National-level Green

Manufacturing Factories Hefei Home Appliances ISO 14001 Homa Appliances ISO 14001 System Certification System Certification

Provincial Green Factory

Provincial Green Products

National Industrial Internet Hefei Home Appliances has established an Environmental Safety Committee and

Pilot Demonstration collaborates with the Human Resources Development Department to oversee the

Enterprise monitoring and evaluation of key environmental management performance. They have

issued internal management systems such as the Control Procedure for Identification

and Assessment of Environmental Factors and the Control Procedures for Operation of

Environmental Management System. By implementing four types of inspection procedures

including daily inspections regular inspections comprehensive inspections and special

inspections they have effectively ensured the continuous safety and stability of the On-site environmental safety management training for Homa Appliances

production and office environments.Homa Appliances and its branch factories perceive the principle of "making continuous

improvement in an environmentally-friendly and law-abiding way" as a key strategy in

environmental protection. As such they have established an environmental management Homa Appliances regularly conducts training sessions on environmental management

system under the leadership of the General Management Department with the joint standards for its employees. By promoting the environmental emergency response

participation of multiple departments. The General Management Department of Homa plan system and the management process for pollutants and wastes the Company

Appliances organizes an internal audit of the ISO 14001 environmental management standardizes employees' environmental management work and strengthens their ability

system annually to ensure a comprehensive investigation of potential hazards in the to respond to emergency incidents.production and office environments and to strengthen the Company's environmental

management level.

25 262024 Guangdong TCL Smart Home Appliances Co. Ltd. Implement Green Development

Environmental Social and Governance Report

Energy and Resource In 2024 Energy Management TCL Smart Home Water Resource Management

Management

TCL Smart Home strictly adheres to relevant laws and regulations such as the Law of the

People's Republic of China on Energy Conservation and continuously improves its energy 1627278.00m3 TCL Smart Home attaches great importance to the protection of water resources and In 2024 strictly adheres to laws and regulations such as the Law of the People's Republic of

Hefei Home Appliances: management system. To reduce dependence on non-renewable energy sources such as Water consumption

fossil fuels TCL Smart Home adopts various energy management measures promotes China on Prevention and Control of Water Pollution the Action Plan for Prevention and

3

22.41 energy-saving technologies and equipment optimizes energy structure and usage and m /Million Control of Water Pollution and the Integrated Wastewater Discharge Standard of the million kWh reduces energy consumption in various fields. At the same time the Company promotes 88.63 output value People's Republic of China. Adhering to the principle of prioritizing water conservation the

Green electricity consumption technological innovation and industrial upgrading improves energy conversion and Water intensity Company proactively strengthens various water conservation measures and continuously

utilization efficiency and balances economic and social development with reducing improves the efficiency of water use. In the production process water is primarily used in

energy consumption per unit of output value. production processes for laboratory tests production tests domestic uses and fire control.All water sources are from municipal water supply and do not involve water extraction

21000green certificates from water sources.from other provinces

Purchased TCL Smart Home Energy Consumption

Index Unit 2024 Packaging Material Management

Comprehensive energy

consumption Tons of standard coal 37738.76 In 2024 When selecting product materials TCL Smart Home gives priority to recyclable metals

21271306.60

Comprehensive energy Tons of standard coal/ TCL Smart Home to enhance the recyclability of its products. Its subsidiaries Hefei Home Appliances and

consumption density Million output value 2.06 Homa Appliances have established recycling programs to encourage consumers to

19976894 258813.36 tons return their old products for recycling and reuse thus achieving the circular utilization of

Natural gas m3 1.043582.21 resources.Total quantity of packaging

Diesel oil L 215353.97 materials In terms of packaging technology Hefei Home Appliances has invested in researching

and developing new eco-friendly materials such as biodegradable packaging materials

Gasoline L 25585.14 to reduce the burden on landfills while adopting streamlined protection measures.During the reporting period Hefei Home Appliances reduced the usage of protective film

Total power consumption kWh 293139142.62

2023 2024 fixing tape and sealing tape by 35%. To minimize the environmental impact of products

Homa Appliances insists on using green materials to manufacture product packaging

Self-consumption photovoltaic and opts for environmentally friendly soy ink and recycled paper for printing instructions

power generation (kWh) comprehensively promoting green production.Currently Hefei Home Appliances has achieved full coverage of its production base with an

energy management system and has specially established an energy management team In addition in 2024 Homa Appliances will simultaneously promote the Supplier Packaging

60% and an implementation team. By formulating comprehensive energy targets indicators and Recycling Management Measures to standardize the recycling management of packaging

review mechanisms as well as improving energy measurement and personnel management materials from various suppliers. The fixtures tools and packaging protection materials

53% systems Hefei Home Appliances systematically monitors analyzes and optimizes energy usage used by suppliers during transportation will be uniformly disposed of and recycled

continuously taps into energy-saving potential and continuously enhances energy utilization thereby improving the recycling rate of packaging materials and reducing factory waste

43% efficiency. production.

Meanwhile Hefei Home Appliances has actively constructed photovoltaic energy storage

33% projects effectively avoiding the impact of power rationing during peak periods on

enterprise production and operation. It has also enhanced energy efficiency by utilizing

waste heat recovery technology for refrigerator air compressors ensuring stable energy

supply for production and operation. Homa Appliances has introduced temperature

sensing equipment energy-saving motors and other technical facilities established

2024 2025 2026 2027 energy indicators and linked them to the performance of responsible individuals

Hefei Home Appliances' target for ultimately achieving all indicators by 2024. In 2024 Hefei Home Appliances achieved

the proportion of green electricity photovoltaic grid-connected capacity of 207800 MWh with an annual power generation of

purchased and used in 2024 and 14.5 million kWh. Currently 4.67 MW are under construction and it is expected to complete

the next three years the construction of 25 MW of photovoltaic capacity by 2025.Homa Appliances has been continuously paying attention to the energy consumption of

production equipment releasing the Energy Management Measures and Management

Measures for Energy Consumption of Key Machines to enhance the monitoring and

analysis of daily energy consumption in production and operations and to reasonably

control production energy consumption. To further implement the clean energy transition

work in 2024 Homa Appliances completed the research and planning of distributed

photovoltaics with a plan to invest approximately 10 MW and initiate implementation in

2025. In 2024 Homa Appliances was awarded the honor of Green Electricity Consumption

Honor of Green Electricity Customer by China Southern Power Grid.Consumption

27 282024 Guangdong TCL Smart Home Appliances Co. Ltd. Implement Green Development

Environmental Social and Governance Report

Pollution and Waste Adhering to the green production philosophy TCL Smart Home complies with national and In 2024 local laws and regulations on the emission and management of pollutants and waste. TCL Smart Home Wastewater Management

Management It has established internal management systems for waste gas wastewater waste and

noise continuously strengthens corresponding management measures regularly reviews

and updates relevant emission permits and follows the standard limits imposed by 301919 To effectively manage major wastewater pollutants such as ammonia nitrogen total tons

pollution discharge requirements to ensure that the treatment process is compliant and Total wastewater discharge phosphorus fluoride and animal and vegetable oils in compliance TCL Smart Home

legal thereby minimizing the negative impact of the Company's production and operation strictly adheres to national and local laws and regulations such as the Law of the

processes on the environment. People's Republic of China on Prevention and Control of Water Pollution the Action

Plan for Prevention and Control of Water Pollution and the Integrated Wastewater

To effectively identify potential environmental risks TCL Smart Home has formulated an 100% Discharge Standard of the People's Republic of China. It continuously improves

In 2024 environmental self-monitoring plan in accordance with relevant regulatory requirements. Wastewater discharge compliance rat its internal system construction equips with wastewater treatment facilities and The plan involves monitoring various pollution factors such as wastewater waste gas

TCL Smart Home standardizes wastewater monitoring and testing procedures to ensure wastewater groundwater and noise at the factory boundary through qualified third-party institutions discharge compliance.Wastewater waste and issuing corresponding monitoring reports to ensure emissions meet standards.gas and waste To further strengthen wastewater management Hefei Home Appliances has To further strengthen pollution and waste management Hefei Home Appliances has 245.01 tons

emissions all meet formulated the Wastewater Management System in accordance with policies such as established an environmental protection management team with the general manager Total discharge of hazardous wastes

the standards the Hefei Water Environment Protection Regulations . The Company has implemented serving as the team leader. The team consists of a deputy team leader and an executive management measures in an orderly manner such as reducing uncontrolled

team leader and various departmental management personnel are assigned to relevant leakage and spillage to control wastewater discharge and improve wastewater

responsibilities. At the same time Hefei Home Appliances has formulated multiple internal

15412.02 recycling and utilization. At the same time the Company has entrusted a third party systems including regulations on wastewater management waste gas management tons

noise management and hazardous chemical management to carry out comprehensive to be responsible for the operation of the sewage station and regularly inspects Total discharge of non-hazardous wastes

pollutant control and ensure emissions meet standards. the operation of on-site equipment. It also monitors the concentration of pollutants

in discharged sewage on a quarterly basis and strictly monitors the operation and

maintenance of sewage treatment facilities.Air Pollution Management

Wastewater

TCL Smart Home strictly adheres to national and local laws and regulations such as the

Law of the People's Republic of China on the Prevention and Control of Atmospheric

Pollution the Law of the People's Republic of China on Promotion of Cleaner Production

the Emission Standard of Air Pollutants for Industrial Kiln and Furnace the Emission Regulating tank

Standard of Pollutants for Synthetic Resin Industry the Emission Standards for Odor

Pollutants and the Emission Limits of Air Pollutants of Guangdong Province. It promotes

the construction of internal management systems builds waste gas treatment systems

and strictly controls and treats pollutants such as nitrogen oxides sulfur dioxide HCL PAC Coagulation reaction

particulate matter and volatile organic compounds (VOCs) in production and domestic precipitation

waste gases to meet relevant national and local standards ensuring that all types of air

pollutants are discharged in full compliance.PAM

Air flotation system Sludge condensation

In accordance with local regulations such as the Regulations of Anhui Province on and filter pressing

Prevention and Control of Air Pollution and the Regulations of Hefei on Prevention and

Control of Air Pollution Hefei Home Appliances has continuously improved its waste gas

management system. Based on the Company's own operational conditions it updated Neutralization

the Waste Gas Management System (4.0) and made adjustments to the management reaction tank

organizational structure and personnel further standardizing the management of air

pollutants. Hefei Home Appliances has taken multiple measures and adopted various

processes including filter cartridge filtration and dust removal secondary activated Filter

carbon adsorption UV photolysis or their combinations to treat waste gas according to

different scenarios and ensure emissions meet standards. At the same time the Company

strictly complies with environmental assessment requirements pollutant discharge

permit regulations and standards such as the Self-monitoring Technology Guidelines for Recycling water tank Standard emission

Pollution Sources (HJ 819-20170) conducts systematic monitoring of waste gas emission

concentrations on a quarterly basis comprehensively controls pollutant emissions and

ensures environmental compliance and controllable emissions. Hefei Home Appliances sewage treatment process

Homa Appliances has established the Wastewater and Waste Gas Management Measures

to efficiently manage the treatment and monitoring of waste gas emissions. At the

beginning of each year the Company formulates a waste gas monitoring plan and

scheme and regularly entrusts qualified environmental protection testing companies to Homa Appliances strictly adheres to the Wastewater and Waste Gas Management

monitor production waste gas and obtain air pollutant monitoring reports. Each factory Measures in managing and controlling production and domestic wastewater. It

then compiles a "waste gas and pollution prevention map" based on the report results regularly entrusts a third party to monitor the Company's production wastewater. For

clarifying the impact range and locations of waste gas emissions providing data support wastewater that fails to meet the standards subsequent operations are conducted

for air pollutant management. in accordance with the Procedures for Corrective and Preventive Measures.

29 302024 Guangdong TCL Smart Home Appliances Co. Ltd. Implement Green Development

Environmental Social and Governance Report

Waste Management Noise Management

TCL Smart Home conducts strict classification and management of waste. In accordance TCL Smart Home strictly adheres to national and local laws and regulations such as the

with national and local laws and regulations such as the Standard for Pollution Control on Law of the People's Republic of China on the Prevention and Control of Noise Pollution and

Hazardous Waste Storage and the Technical Specification for Setting Identification Signs of the Emission Standard for Industrial Enterprises Noise at Boundary of Guangdong Province

Hazardous Waste it organizes the disposal of hazardous waste and classifies and recycles and is committed to reducing the impact of noise on the surrounding environment. TCL

general waste. While ensuring that the waste disposal process meets legal requirements Smart Home and its subsidiaries have taken various measures to manage noise at the

it actively explores waste reduction and recycling measures. factory boundary such as regularly updating detection schemes improving equipment

protection and work environment testing and continuously optimizing noise control

For different types of waste Hefei Home Appliances has formulated different management strategies.systems and plans. Recyclable solid waste is sold normally while discarded electronic

components are handed over to manufacturers for professional recycling and disposal. Hefei Home Appliances has established a Noise Management System and effectively

In 2024 in accordance with relevant regulations and the Company's own operational controlled and reduced noise levels by adding sound-absorbing cotton and conducting

status Hefei Home Appliances updated the Environmental Factor Identification and regular environmental noise testing ensuring that noise levels meet standards. Meanwhile

Evaluation Management Specification (5.0) adjusted the organizational structure of Homa Appliances has formulated a Noise Emission Management Method implemented

waste management personnel and organized an updated list of hazardous waste. In sound insulation and shockproof measures in some workshops to minimize noise in the

terms of waste management measures Hefei Home Appliances has established a cross- factory area and promptly conducted maintenance and upkeep on production equipment

departmental cooperation mechanism. The supply chain is responsible for the storage to avoid noise disturbances to residents.and third-party disposal of general solid waste and hazardous waste while each factory

is responsible for ensuring the treatment and emission compliance of pollutants. The

Human Resources Development Department is responsible for monitoring and evaluating Green Culture TCL attaches great importance to enhancing employees' environmental awareness and is important environmental management performance to ensure efficient operation committed to creating a green cultural atmosphere where everyone participates. In the office

throughout the entire waste management process. On this basis the Company insists environment the Company implements energy-saving measures such as intelligent lighting

on purchasing environmentally friendly and low-toxicity products while reducing the systems and paper recycling to reduce resource waste. At the same time the Company

negative impact of solid waste on the environment from the aspects of waste production regularly conducts environmental protection training and themed activities to enhance

and pollution level. employees' understanding of green production improve their environmental awareness and

participation and encourage employees to integrate the concept of green development into

Homa Appliances has established systems such as the Waste Classification List and Waste corporate culture through multi-dimensional environmental protection concepts. In 2024

Management Measures creating a management system that covers the entire lifecycle Hefei Home Appliances conducted a total of three environmental protection trainings with a

of waste from generation classification storage transportation to final disposal. Each total of 39 participants. In addition Homa Appliances disseminates environmental protection

link is subject to strict solid waste control measures. On this basis Homa Appliances In 2024

Homa Appliances knowledge and fosters a sustainable development atmosphere where everyone participates has established a hazardous substance management system in accordance with by sending promotional videos advocating green culture within the Company.the QC080000 Requirements of Hazardous Substance Process Management System environmental protection

certification standard and relevant customer requirements clarifying the identification and 15 training sessions

control process of hazardous substances to reduce environmental risks. Conducted

Types of major pollutants 11039 personnel

The number of employees who

Waste type Waste contents Disposal methods participated in environmental

protection training was

Waste metal waste

General recyclable wastes plastic waste paper Commission qualified units

waste wood etc. for disposal

General non-recyclable Domestic waste Commission qualified units Environmental protection tips in the office of Hefei Home Appliances

wastes construction waste etc. for disposal

Store in hazardous

Electronic waste used waste warehouse and

Hazardous wastes packaging drums surface commission qualified

treatment sludge etc. hazardous waste disposal

agencies for disposal

Homa Appliances' promotional video Homa Appliances green culture

clip for the World Environment Day promotional video

31 322024 Guangdong TCL Smart Home Appliances Co. Ltd. Implement Green Development

Environmental Social and Governance Report

Green Industry TCL Smart Home adheres to the concepts of environmental friendliness and sustainable Homa Appliances continuously strives for improvement and innovation in energy-saving development in the production process. From product development and manufacturing to technologies committed to providing consumers with high-end and low-energy products.Chain disassembly and recycling it fully integrates into the green management system striving The Company's series of products consistently adopt the environmentally friendly R600a

to minimize resource and energy consumption while reducing unnecessary emissions and refrigerant which not only enhances refrigeration efficiency but also significantly reduces

pollution and minimizing environmental impact. The Company is committed to building a harmful substance emissions.green industrial chain and promoting innovation and joint development of environmental

protection technologies through close collaboration with supply chain partners. In the production process TCL Smart Home persists in promoting the transition to clean

energy actively adopts environmentally friendly and advanced processes and continuously

In 2024 In the raw material procurement process TCL Smart Home gives priority to materials that reduces the impact of corporate production and operations on the environment. Hefei

are environmentally friendly green and produced in accordance with environmental Home Appliances continues to strengthen its investment in photovoltaic energy within the

5.7243 million yuan protection and safety standards. Hefei Home Appliances rigorously monitors hazardous Company's parks using clean and sustainable energy to reduce outsourced electricity

the sales of green products of Hefei substances during the raw material procurement stage insists on using dangerous and achieving self-production and self-consumption of clean energy effectively reducing

Home Appliances amounted to hazardous components and elements that meet the requirements of the Directive on energy consumption and environmental damage. Homa Appliances focuses on updating

the Restriction of the use of Certain Hazardous Substances in Electrical and Electronic and replacing production processes to reduce various energy consumptions of products.Equipment (RoHS) and promotes the use of sustainable materials such as recyclable To test the effectiveness of related work Homa Appliances regularly conducts voluntary

plastics and straws to reduce dependence on environmental resources and provide clean production audits inviting third-party testing institutions to conduct comprehensive

customers with safer and more environmentally friendly products. Homa Appliances audits of key process flows and based on the audit results formulates targeted clean

emphasizes the selection of suppliers conducts strict verification of the environmental production goals and rectification plans to continuously improve and perfect the level of

performance of service or product suppliers prior to procurement to ensure their clean production.capabilities in controlling and managing critical environmental pollutants. On this basis

Homa Appliances creates a list of qualified suppliers conducts regular audits and When selecting product materials TCL Smart Home gives priority to recyclable metals

supervision and promotes continuous improvement in environmental management levels to enhance the recyclability of its products. Both Hefei Home Appliances and Homa

through dynamic evaluation. Appliances have established recycling programs encouraging consumers to return their

old products for recycling and reuse thus achieving resource recycling. Furthermore the

In the product R&D and design phase TCL Smart Home thoroughly considers the impact of Company is actively promoting the practice of green packaging investing in the research

products on the environment and creates durable environmentally friendly energy-saving and development of new eco-friendly materials such as biodegradable packaging

and efficient products through green innovation of key components and technologies. materials reducing packaging usage and promoting recyclable and degradable

Hefei Home Appliances adheres to a full lifecycle approach from the initial design stage packaging.rigorously complies with the latest energy efficiency standards of various countries and

the requirements for green products of household appliances and optimizes the product In the warehousing and transportation sector TCL Smart Home actively practices green

development and design from multiple dimensions. logistics and explores solutions to reduce carbon emissions and resource usage during

transportation. Hefei Home Appliances has reduced cartons used in product packaging

To enhance product energy efficiency Hefei Home Appliances actively adopts technologies and circulation and promote the use of recyclable packaging appliances special industrial

such as intelligent high-efficiency and energy-saving refrigeration components main vehicles and recyclable plastic boxes. Currently Hefei Home Appliances has established a

control frequency conversion and microcellular foam door seals. These technologies 10000 m2 low-carbon pollution-free intelligent stereoscopic warehouse equipped with

ensure the product's low energy consumption characteristics in terms of system efficiency new energy battery-powered vehicles to further reduce environmental impact.operational power consumption and insulation performance thereby reducing energy

consumption during product use. Furthermore Hefei Home Appliances incorporates the

maintainability recyclability and upgradeability of products into product design ensuring

long-term use and minimizing resource consumption. Through modular design users can

easily replace damaged components extending the product's service life.In 2024 Hefei Home Appliances'

Washing machine products have saved a total of 6300000 kWh of

electricity for users

The tumble dryer is 100% compliant with Level 1 of the GB 12021.4-2013

standard

27% of the pulsator washing machines are rated as Level 1 according to the R260F1G-C frost-free refrigerator has The compound double-tumble R316V7-D frost-free refrigerator obtained China Energy Efficiency dryers have obtained the certification has obtained the green products

GB 12021.4-2013 standard while 63% are rated as Level 2 according to the Certification of green products in China certification

same standard

Hefei Home Appliances Green Certification

33 342024 Guangdong TCL Smart Home Appliances Co. Ltd. Uphold Product Responsibility

Environmental Social and Governance Report

Uphold Product

Responsibility

TCL Smart Home has always taken sustainable technological

innovation and excellent product quality as the foundation for

its sustainable development. The Company is committed to

becoming a globally leading smart home appliance enterprise

actively fulfilling product responsibilities improving production

efficiency optimizing customer service and providing consumers

with a smart experience.SDGs addressed in this chapter

RESPONSIBILITY

35 362024 Guangdong TCL Smart Home Appliances Co. Ltd. Uphold Product Responsibility

Environmental Social and Governance Report

R&D and R&D and innovation are the core driving forces behind the high-quality development of TCL deploy the application of intelligence and artificial intelligence technology deeply explore Smart Home. After more than 20 years of development TCL Smart Home has established a the field of green and low-carbon technology continuously expand the breadth and depth

Innovation comprehensive and advanced R&D and quality control system. The Company is customer- of technology and further enhance the Company's core technological advantages.oriented continuously enhancing its product R&D and innovation capabilities attaching

great importance to the management and protection of intellectual property rights and Guided by the philosophy of creating people-oriented innovative technology that is

constantly improving its market competitiveness. rational and practical in product development Homa Appliances focuses on enhancing

the fit between embedded products and user usage scenarios and improving the air-

cooled product line to meet the order requirements of different customers. At the same

time Homa Appliances has intensified its efforts to develop completely knock down

R&D and TCL Smart Home has always adhered to the core concept of "achieving global leadership products to adapt to the needs of emerging markets. To further achieve efficient resource

with first-class talent" continuously increasing the introduction of scientific research talents

Innovation utilization and comprehensive improvement in market competitiveness Homa Appliances for refrigerators and washing machines especially in the fields of quality control vibration has conducted in-depth exploration and research in the fields of energy-saving control

Strength and noise suppression and simulation technology research and development attracting technology application of new materials and processes and product cost reduction and many senior professional talents to join. The R&D team is constantly expanding. TCL Smart consumption reduction continuously optimizing production processes and promoting the

Home has multiple R&D centers among which Hefei Home Appliances has two major deep integration of technological innovation and cost control.R&D centers for washing machines and refrigerators. Each R&D center is responsible for

formulating relevant product technology development strategies building research and

In 2024 development system capabilities promoting product development and ensuring product

TCL Smart Home performance and quality. The Homa Appliances R&D center focuses on the development of Innovative TCL Smart Home attaches great importance to product innovation and is committed to

air-cooled products and process technology efficiency improvement. Through continuous efficiently transforming innovative achievements into practical applications. It promotes the

1074 technological breakthroughs it continuously enhances the Company's research and Technologies and development and implementation of innovative products through diversified channels. In

development competitiveness. Products 2024 TCL Smart Home will focus on making breakthroughs in key technological areas such R&D personnel as product health technology refrigeration efficiency and energy consumption reduction.Homa Appliances Hefei Home Appliances integrates multiple concepts such as environmental protection 7.2% R&D center Research orientation health intelligence and user experience in product innovation fully embodying the organic combination of technological innovation and humanistic care to safeguard user

Ratio of R&D personnel Development of embedded product development health. For refrigerator products Hefei Home Appliances focuses on product features such

air-cooled products and completely knock down as intelligent noise reduction molecular freshness preservation antibacterial and odor

Enterprise R&D center products tackling of technical issues related to control deep freezing energy efficiency and built-in technology. Among them molecular

643 energy efficiency process efficiency improvement million yuan preservation and deep-freezing technology have been recognized by the Appraisal and reduction of expenditure and consumption Committee of the China National Light Industry Council as reaching the international

R&D investment is

Product appearance design panel materials leading level. For washing machine products Hefei Home Appliances continues to Provincial industrial application interior design and silk-screen printing optimize energy efficiency and environmental performance while focusing on user health design center design and inclusive design as the core of product innovation. Through the R&D and application of 60 innovative projects breakthrough multi-domain pollution-free technology it has created a safer and healthier washing experience for consumers. As of the end of the reporting period the sales volume

Carry out of products equipped with this technology has reached 136000 units.Laboratory accredited Product performance testing and product safety

by CNAS and stability testing In addition Hefei Home Appliances has extended its innovation focus to vulnerable

groups: washing machines are equipped with child lock functions to ensure the safety of

children; braille designs have been added to the control panel of washing machines to

provide convenience for visually impaired users effectively meeting the needs of special

groups.In addition to enhance the driving force of company employees in research and

development innovation and product development TCL Smart Home has formulated

multiple R&D incentive systems. Hefei Home Appliances has formulated incentive policies

such as the New Product Project Assessment and Incentive Plan and the Implementation

Rules for the Science and Technology Innovation Award and regularly organizes relevant

science and technology innovation activities every year to encourage all employees

to participate in technological innovation. Homa Appliances has formulated incentive

measures such as the Product Development Incentive Measures and the Technical Pre-

research Acceptance and Incentive Management Measures and further stimulates

the innovativeness of technical personnel by setting up technology innovation awards

quarterly awards for cost savings and consumption reduction and commendations for

technical pacesetters.Homa Appliances has been

awarded as a benchmark Hefei Home Appliances adheres to the product development philosophy of "asynchronous

enterprise for technological development quality and efficiency improvement technology-driven and premium Molecular Freshness Preservation 2nd Deep-freezing Technology -

innovation product creation" continuously innovating in the eight major directions of refrigerator Generation - Scientific and Technological Scientific and Technological

technology - healthy freshness preservation high energy efficiency aesthetic design Achievement Appraisal Certificate Achievement Appraisal Certificate

thin built-in series ice-water technology noise reduction technology intelligence and

exquisite design - to continuously enhance product quality and user experience. In 2024

Hefei Home Appliances will take technological originality as the core driving force actively

37 382024 Guangdong TCL Smart Home Appliances Co. Ltd. Uphold Product Responsibility

Environmental Social and Governance Report

In the design and technological innovation of its products Homa Appliances deeply

explores the actual needs of users enabling the products to integrate humanized design

and scenario-based experience on the basis of achieving basic functions in order to meet Case: TCL Smart Home has innovatively launched a household refrigerator

the diverse needs of users. For example in terms of exterior design Homa Appliances featuring -40℃ deep-freezing freshness preservation technology

adopts a bottom cooling system and an ultra-thin built-in design achieving a perfect

integration of the refrigerator and the cabinet helping users improve the utilization rate

of kitchen space. In terms of functional design Homa Appliances incorporates patented In the field of smart home food freshness preservation has always been a core concern for users. Among them high-end

quality control multi-temperature zone technology including specialized zones such as ingredients such as deep-sea seafood have extremely high requirements for storage temperature. The freezing temperature

intelligent control mother and baby temperature-variable space and zero-temperature of traditional household refrigerators is usually between -18℃ and -24℃ which is difficult to meet the freshness preservation

freshness preservation space to achieve specialized storage in dedicated areas enhance needs of deep-sea seafood. To address this industry pain point TCL Smart Home has innovatively launched a -40 ℃ deep-

the preservation effect of ingredients and simultaneously meet users' daily usage needs freezing freshness preservation technology for household refrigerators. As an industry pioneer this technology uses a single

improving convenience. Furthermore Homa Appliances is equipped with AG+ blue crystal R600a refrigerant combined with multi-level gradient heat dissipation three-dimensional heat dissipation air circulation

bacteria-removing function to achieve real-time dynamic sterilization providing users with ECC technology and intelligent control system to reduce the lowest temperature in the freezer compartment to -40 ℃ . This

healthy dietary guarantees. According to the testing and certification by the Guangzhou technological breakthrough not only meets consumers' demand for a high-quality life but also injects innovation power into

Microbiology Research Institute the antibacterial rate of this function is as high as 99.99%. the refrigerator industry.Technological innovation achievements of Hefei Home Appliances

Case: T7H super drum washing machine breaks through the industry ceiling in washing capacity

Technical

dimension Refrigerator Washing machine Constrained by technological bottlenecks the washing efficiency of washing machine products on the market has long

stagnated at around 1.1. As a globally leading home appliance brand Hefei Home Appliances focuses on the "washing

Combi European grade A energy efficiency China energy efficiency grade 1 efficiency" and has invested significant research and development resources in this field driving technological breakthroughs

in the industry. TCL's washing machine the Super Drum has elevated the washing efficiency to 1.2 surpassing the industry's CD European grade A energy efficiency European standard grade A-10%~25% upper limit in washing capacity. The core principle of the "Super Drum" stems from its larger drum diameter of 540mm

Surge current suppression circuit Australian Standard water efficiency star: 4.5 electricity coupled with the adoption of 6D lifting ribs and a sea wave pattern design which extend the movement trajectory of clothes

efficiency star: 5 etc.DC-DC high-efficiency power conversion by 80% achieving superior washing efficiency. Furthermore this product is equipped with an intelligent electronic control

technology algorithm that tailors washing programs according to different usage scenarios ensuring optimal cleaning results while Energy

precisely controlling water electricity and detergent usage thereby reducing resource and energy waste.efficiency Segmented carrier efficient control

technology

Research on frequency adaptation

technology

Variable frequency zero standby power

consumption technology

combi European grade A noise European standard grade A

AI-based intelligent noise reductio Dual-drum model G160C16-HDY/G160Q10-HDY won the

Noise Excellence Award in the acoustic quality evaluation and Comprehensive evaluation technology for certification organized by the China Household Electric

body-sensory noise Appliance Research Institute

Originality · Molecular Magnetic Freshness The pollution-free washing machine has been evaluated

by the China Household Electric Appliance Research GP+ photoelectric sterilization and odor

Health Institute and has achieved the industry's first dual Class 1 removal pollution-free product status

-40℃ crystal film freshness preservation

technology

User experience Household ultra-thin built-in technology etc.

39 402024 Guangdong TCL Smart Home Appliances Co. Ltd. Uphold Product Responsibility

Environmental Social and Governance Report

2024 Hefei Home Appliances Product Awards and Honors

Awarded by Award

iF Industrie Forum Design iF Product Design Award: TCL 6kg Slim Washing Machine

iF Product Design Award: T10 TCL Twin Drum Washing & Drying Set

Bureau of European Design Associations 2024 Red Dot Award: Super Drum P7

2024 Red Dot Award: Super Drum T7H

Organizing Committee of China Innovation Award at the 12th China Information Technology Expo: TCL

Information Technology Expo ultra-thin zero-embedded refrigerator

Innovation Award at the 12th China Electronic Information Expo: TCL Super

Drum Series Washing Machine

2024 20th China Household Appliance Annual Technological Innovation Award

Innovation Award

Organizing Committee of China Leading Brand Award in Health Washing and Care

Household Clothes Washing Drying and 2024 China Household Clothes Washing Drying and Care Industry -

Care Industry Summit Forum Products - Ultra-thin Integrated Washing and Care Innovation Pioneer -

GH200P20-DBI

2024 China Household Clothes Washing Drying and Care Industry

- Products - Healthy Washing and Care All-Round Star - G100T3-

BIS+H10UT3-S

Organizing Committee of China Leading brand in thin built-in health and freshness preservation

Refrigerator Industry Symposium Ultra-thin zero-embedded technology product

-40° C crystal film deep-freezing freshness preservation technology product

China Household Electric Appliance Top 10 Brands in the Washing Machine Industry for the Year 2023-2024

Research Institute

Homa Appliances Awards and Honors

Awarded by Award

Organizing Committee of Appliance & 2024 AWE Golden Word of Mouth Award Champion

Electronics World Expo/China Household

Electrical Appliances Association 2024 AWE Excellent Product Award

2024 China Refrigerator Industry Summit Leading Slot-in Product of 2024 China Refrigerator Industry

Forum

20th China Household Appliance Annual Product Innovation Award

Innovation Award

National Household Electric Appliance Built-in Innovation Pioneer Award

Industry Information Center

41 422024 Guangdong TCL Smart Home Appliances Co. Ltd. Uphold Product Responsibility

Environmental Social and Governance Report

Intellectual Intellectual property rights are an important carrier that embodies a company's innovation During the reporting period Hefei Home Appliances actively fosters an open innovation ecosystem establishing

Property strength technological accumulation and core competitiveness. They are also a key

deep partnerships with multiple national-level innovation centers key laboratories

strategic resource for a company to maintain its leading position in the industry. TCL Smart and renowned higher education institutions. This injects technological vitality into the

Protection Home attaches great importance to intellectual property protection and strictly follows 12 industry standards Company and sets a high-quality development model for the industry. Homa Appliances

laws and regulations such as the Patent Law of the People's Republic of China and the TCL Smart Home participated places great emphasis on industry exchanges and cooperation always adhering to the

Rules for the Implementation of the Patent Law of the People's Republic of China. It has in the design of concept of openness and win-win. It actively participates in various industry summits and

In 2024 established a professional patent application team and a full-process management technical forums both domestically and internationally sharing its practical experience

TCL Smart Home mechanism regularly conducts training related to intellectual property and efficiently in technological innovation and quality management and contributing to the overall

promotes the Company's intellectual property protection work. improvement of the industry level.

373 Hefei Home Appliances has formulated the Measures for the Administration of Patents and

new patents were granted Software Copyrights which stipulates specific measures for patent protection and violation

penalty mechanisms. At the same time it has equipped with full-time patent management Standards and industry reports formulated and updated with the participation of Hefei Home Appliances in 2024

personnel to carry out relevant management work comprehensively covering all aspects

85 of product research and development manufacturing and market sales throughout the entire process of enterprise production and operation. Within the Company Hefei Release time Name of published standards and industry reports

new invention patents were granted Home Appliances has comprehensively strengthened its intellectual property protection

capabilities by signing confidentiality agreements for research and development setting March 2024 White Paper on the Development of Cleaning Technology for Internal Stains of Washing Machines

up confidential areas establishing a professional team responsible for intellectual

Accumulatively T/CHEAA 0032-2024 The Technical Requirements of Copper Tube for Hermetic Motor-property application and registration and improving internal management mechanisms. June 2024 compressors for Refrigerators

2167 Simultaneously Hefei Home Appliances actively conducts market monitoring and rights protection actions to ensure the safety of innovative achievements and the effective T/CHEAA 0033-2024 Two-dimensional Bar Code Rules for Nameplate of Hermetic Motor-

patents have been granted protection of legitimate rights and interests. Furthermore the Company has established

June 2024 compressors for Refrigerators

a rigorous intellectual property risk prevention and control mechanism conducting

comprehensive patent searches before product research and development avoiding June 2024 T/CHEAA 0034-2024 Hermetic Motor-compressors for Refrigerators

similar designs during product research and development and obtaining patent licenses

when necessary to minimize the risk of infringement. July 2024 GBT 4706.24 Household and Similar Electrical Appliances - Safety - Particular Requirements for Washing Machines

Homa Appliances has established a comprehensive patent management operation and GB/T 4706.13-2024 Particular Requirements for Refrigerating Appliances Ice-cream Appliances

In 2024 application mechanism set up a dedicated intellectual property management team July 2024 and Ice-makers

TCL Smart Home formulated institutional documents such as the Patent Management Work Measures and

strengthened the whole process management of patent application maintenance and August 2024 T/CHEAA 0035—2024 Polyamide Materials for the Anticorrosive Coating of Metal Tubes

5 operation. At the same time Homa Appliances collaborates with professional service times agencies to build a comprehensive intellectual property risk prevention and control system September 2024 T/CHEAA 0036-2024 Micro or Nanon Imprinted Color Crystal Decorated Tempered Glass

onduct intellectual property to effectively respond to potential disputes.rights training November 2024 T/CHEAA 0040.1—2024 The Sound Quality of Household and Similar Refrigerating Appliances In order to further enhance employees' awareness of patent management and consolidate Part 1: Terms and Definitions

intellectual property protection efforts TCL Smart Home actively conducts training activities

on intellectual property and patent management. Through systematic course design it November 2024 T/CHEAA 0040.2—2024 The Sound Quality of Household and Similar Refrigerating Appliances

comprehensively improves employees' knowledge of intellectual property rights and their Part 2: Guideline for Subjective Assessment

ability to manage patents. November 2024 Technology Roadmap for the Household Electric Washing Machine and Dryer Industry in China

March 2024 T/CITS 0012-2024 Technical Requirements and Test Method for Household Refrigerator Magnetic Field Preservation

Case: Hefei Home Appliances conducts Patent Disclosure Document Writing Training

To reduce the cost of repeated communication and coordination during the design process and enhance the quality and Key cooperation projects of Hefei Home Appliances in 2024

approval rate of patent proposals Hefei Home Appliances has conducted a "Patent Disclosure Document Writing Training"

for its employees. Through a comprehensive introduction to the requirements for writing technical disclosures combined Partners Content

with demonstrations of excellent cases the training provides patent applicants with efficient writing templates and further

strengthens the patent management capabilities of relevant business personnel. GMCC Joint Innovation Center Promote technological innovation in the refrigerator industry in areas such as high efficiency

for New Technologies and energy saving silent and comfortable operation and healthy freshness preservation

We will promote the development of polymer materials for various household appliances

Leading Industry As a leading enterprise in the home appliance manufacturing industry TCL Smart Home Kingfa New Material Joint towards green low-carbon healthy environmentally friendly and performance-enhancing directions and strive to become a domestic first-class material research and development

has always been committed to driving technological innovation and development in Innovation Center

Development platformthe industry through innovation. By participating in the formulation of multiple industry

standards it promotes the process of industry standardization. Meanwhile the Company Signing of technical cooperation agreement for Establishment of Ultrasound-Assisted

adheres to building an open and win-win cooperation platform deeply participates in Jiangnan university Quick-freezing Technology and Deep-freezing Freshness Preservation Database

industry exchanges and cooperation actively shares industry experience and injects

continuous impetus into the high-quality development of the industry. Xi'an Jiaotong University romote research on new flying wing heat exchangers

43 442024 Guangdong TCL Smart Home Appliances Co. Ltd. Uphold Product Responsibility

Environmental Social and Governance Report

Product Quality TCL Smart Home has always prioritized product quality and safe production. The Company has established a comprehensive quality management system strengthened quality

Case: Green and low-carbon transition to "new" - Hefei Home Appliances and Kingfa Sci. & Tech. jointly and Safety inspection processes optimized the handling mechanism for non-conforming products establish a new material joint innovation center and implemented full lifecycle management of chemicals. Additionally the Company

conducts regular quality management training to comprehensively enhance the quality

management awareness and professional skills of all employees. These measures have

On May 20 2024 Hefei Home Appliances and Kingfa Sci. & Tech. Co. Ltd. held the unveiling ceremony for the "TCL-Kingfa New effectively promoted continuous improvement in product quality providing customers with

Material Joint Innovation Center". This innovation center aims to gather professional talents fully leverage the technological safe and reliable products and services.advantages and resources of both parties and strive to promote the development of various polymer materials used in

home appliances towards a green low-carbon healthy and environmentally friendly direction with improved performance. It

aspires to become a domestic first-class material research and development platform leading the sustainable development Quality In production and operation TCL Smart Home strictly adheres to the Product Quality Law of of the industry. the People's Republic of China and other laws and regulations as well as various quality

Management management standards both domestically and internationally. It continuously optimizes

System its quality management system and enhances product quality control and improvement processes. All of TCL Smart Home's operational bases have obtained ISO 9001 quality

management system certification.TCL White Household Appliances and Kingfa Sci. & Tech. TCL White Household Appliances and Kingfa Sci. & Tech.Jointly Establish a New Material Joint Innovation Center Jointly Establish a New Material Joint Innovation Center

Hefei Home Appliances Quality Homa Appliances Quality Management

Management System Certification System Certification

Hefei Home Appliances has established internal management systems such as the

Hefei Home Appliances and Homa Appliances jointly debut at Appliance & Electronics World Expo (AWE) 2024 Quality Environment & Occupational Health System Management Manual to strictly control

quality management during the production process. To systematically carry out product

quality management Hefei Home Appliances has established a Quality Management

In March 2024 Hefei Home Appliances and Homa Appliances jointly presented at AWE 2024 sharing innovative design Center responsible for the construction and optimization of the Company's quality

concepts with industry partners discussing how the home appliance industry can empower high-quality life and management system handling of quality issues improvement of supplier management

demonstrating the leading strength of Chinese enterprises in the field of intelligent technology. mechanisms customer feedback and technology introduction and making timely

updates and adjustments based on the Company's operations and business conditions.On the first day of the Expo Hefei Home Appliances held an innovative technology conference to unveil cutting-edge Through systematic quality control measures it ensures that products not only meet

technological achievements further demonstrating its technological innovation and market leadership in the field of smart quality standards but also satisfy customer needs while continuously improving team

household appliances. professional capabilities and the overall quality level of the enterprise. In 2024 Hefei

Homa Appliances unveiled its brand strategy upgrade plan at AWE 2024 showcasing its innovative product matrix and Home Appliances' Testing and Certification Center obtained CNAS accredited laboratory

global layout and continuously consolidating its industry-leading position. During the Expo Homa Appliances obtained qualification indicating that its work capabilities have met the requirements of the ISO/IEC

the "Santong" Product Authentication further demonstrating its globally unified high-standard quality control. 17025 system.Quality Management

Center

Deputy Director of Quality

Management Center

Quality and

System Refrigerator Washing Technology

Quality and

Testing and Parts Quality Technology Operation Certification Management Manufacturing

Machine Management Market Quality

Management Quality Manufacturing Department

Management

Department for Management

Department Department Department Department Quality for New Department Refrigerator New Washing

Department

Products Machine

Quality Management Center Structure of Hefei Home Appliances

45 462024 Guangdong TCL Smart Home Appliances Co. Ltd. Uphold Product Responsibility

Environmental Social and Governance Report

In 2024 Homa Appliances has established a Quality Management Committee to comprehensively materials. Homa Appliances has formulated the Procurement Inspection Management

TCL Smart Home coordinate and supervise the Company's quality management efforts. Led by the Vice Method to ensure that the purchased raw materials and components meet the Company's

President in charge of the quality system the Committee is responsible for setting and specified quality standards and technical requirements thereby ensuring product quality

None evaluating annual quality objectives conducting in-depth analysis of quality issues and from the source.planning improvement plans to continuously enhance the operational efficiency of the

In the production process Hefei Home Appliances has established a quality intelligent

Product quality incidents and Company's quality management system and ensure steady improvement in product quality. By formulating and implementing internal regulations such as the Quality Manual manufacturing system including an industry-leading AI intelligent appearance inspection

product safety accidents Homa Appliances further strengthens the management of product quality and safety. system and 42 full-process inspection procedures covering the entire factory to monitor

In 2024 Homa Appliances updated and established quality management systems such key manufacturing links in real time ensure timely correction of potential issues and

as the Design and Development Control Procedure Design Change Control Procedure comprehensively ensure that product quality meets the highest standards. In 2024

Completely Knock Down New Product Development Trial Production and Production to further enhance product quality Hefei Home Appliances invested in refrigerator

Transfer Management Procedure and Tooling and Mold Management Procedure to and washing machine ESD monitoring facilities increased MES scanning points and

enhance the standardization and systematization of product development production appearance inspection equipment continuously improving automation levels and

and quality control ensuring continuous improvement and safe and controllable product strengthening quality control capabilities.quality. Homa Appliances is a "Santong Product Authentication" enterprise.Hefei Home Appliances Homa Appliances implements multiple quality control measures during the production

RoHS Certificate process including pre-production inspections process inspections and monitoring of

TCL Smart Home Reference Standard* product pass-through rates to ensure that every step meets high-quality requirements.Additionally Homa Appliances adopts an MES intelligent quality management system to

Hefei Home Appliances achieve intelligent control in key inspection error prevention and repair processes. The

Honors ISO Standards ISO9001:2015、ISO/IEC17025 system tracks core quality characteristics such as product appearance safety performance

leak detection and refrigeration performance throughout the entire process ensuring and

In 2024 GB4343.1-2018、GB4706.1-2005、GB470.13-2014、GB/ guaranteeing product traceability.Hefei Home Appliances National Standards T8059-2016、GB12021.2-2015、GB19606-2004、GB470.24

Testing Center obtained 2008、GB/T4288-2018、GB12021.4-2013、GBT 4214.4-

In 2024 Homa Appliances conducted an annual equipment technical transformation

2008 comprehensively maintaining and optimizing existing equipment purchasing and CNAS accredited laboratory installing new equipment to meet product capacity trends and confirming equipment

certificate adjustment through first article inspection to ensure that each product meets quality

US Standards CAN/CSA-C300-18、ANSI/AHAM HRF-1-2019

The ultra-thin zero- requirements before being put into production. At the same time to enhance employees'

embedded series awareness of product quality management Homa Appliances regularly holds monthly

refrigerator R540P12- EU Standards EN 60335、EN 62552:2013、EU 2019/2016 internal quality meetings led by branch factory managers and department heads to

DQ from Hefei Home discuss quality improvement processes.Appliances won the

"FT Quality Award" for Australian/New AS/NZS 60335、AS/NZS CISPR 14.1:2013、AS/NZS

household refrigerators in Zealand Standards 4474.1:2007、AS/NZS 4474.2: 2009

2024 Hefei Home Appliances

*The reference standards listed above are all the standards certified by TCL Smart Home and its subsidiaries. Some of the RoHS Certificate

above standards are only applicable to Hefei Home Appliances or Homa Appliances

Guarantee of Adhering to the business philosophy of quality first TCL Smart Home regards product quality management as the core principle of enterprise operation. It has established

Product Safety a prevention mechanism that pursues "zero defects" from the product research and

development stage fundamentally ensuring the quality of new products upon leaving Hefei Home Appliances Smart Factory Homa Appliances MES

the factory. The Company strictly complies with laws and regulations such as the Product (Manufacturing Execution System)

Quality Law of the People's Republic of China establishes and improves management

processes and institutional documents and continuously ensures high production

efficiency and high finished product quality. 70% In the quality inspection phase of finished products TCL Smart Home conducts rigorous inspections on the packaging appearance dimensions and performance of each batch

TCL Smart Home attaches great importance to the safety of raw materials. Regarding As of the end of the reporting period of materials to ensure the consistency and reliability of product quality. Based on this

harmful chemical substances the Company explicitly requires all raw materials to meet the The repair rate of Homa Appliances Hefei Home Appliances has established internal management systems such as the Control

standards of the Directive on the Restriction of the use of Certain Hazardous Substances in has decreased by about Procedures for Product Monitoring and Measurement and the Control Procedure for Product

Electrical and Electronic Equipment (RoHS) and the Registration Evaluation Authorization Identification and Traceability to comprehensively track the quality and safety of finished

and Restriction of Chemicals Directive (REACH). Regular training on the use of relevant products. Additionally Hefei Home Appliances ensures product quality standards through

chemicals is conducted for employees to strengthen their management awareness. various quality control measures including 36 complete machine testing experiments.In 2024 based on internal and external feedback Hefei Home Appliances improved

Hefei Home Appliances has formulated the Regulations on Hazardous Substance and upgraded major quality control procedures such as finished product inspection

Process Management in accordance with relevant standards conducting comprehensive management specifications further strengthening factory inspection standards to ensure

assessments on raw materials involving chemical substances to ensure their safety. In that products meet industry and international quality standards. Homa Appliances has

addition Homa Appliances has established the RoHS Compliance Control Management established an IPQC process for spot-checking finished product quality and conducts

Measures set up a systematic supplier management mechanism and regularly audits rigorous inspections before product shipment to ensure that all outgoing products comply

suppliers eliminating those who fail RoHS testing to ensure that all raw material quality with the national "Santong" (same line same standard same quality) standard and EU

meets corporate standards. quality standards.In the procurement management process TCL Smart Home has established comprehensive By the end of the reporting period Hefei Home Appliances has obtained CCC certificate;

procurement inspection guidelines and related regulations. Hefei Home Appliances export refrigerators business have obtained certifications including SAA CB CE GS and

has implemented full-process quality tracking through the QMS system and established KC certificate; the washing machine business for export have completed certifications

a comprehensive procurement inspection process to strictly control the quality of raw including SAA CB CE GS SASO BSMI KC TISI and BPS. Homa refrigerators have completed

quality and safety certifications including CCC UL TISI TUV and VDE.

47 482024 Guangdong TCL Smart Home Appliances Co. Ltd. Uphold Product Responsibility

Environmental Social and Governance Report

Management of Unqualified Products Quality To ensure the orderly and efficient implementation of quality management TCL Smart

Home attaches great importance to cultivating employees' awareness of quality

Management management. On this basis Hefei Home Appliances has formulated the Incentive System

TCL Smart Home attaches great importance to the management of unqualified products and strictly controls the product recall process. Training for Quality Management Teams and issued the Incentive Plan for Total Quality Improvement

Through systematic practice it has established a sound recall management mechanism and standardized process committed to Activities at TCL Hefei Home Appliances aiming to mobilize employees' enthusiasm for

maximizing the protection of consumer rights and interests and strictly ensuring product quality and safety. product safety and high-quality production work. To establish a pool of quality talents and

support global business Hefei Home Appliances has established a quality talent training

To properly handle product recalls TCL Smart Home has established multiple mechanisms to fully protect the legitimate rights program. Through regular quality management training it unifies the quality cognition of

and interests of consumers. Hefei Home Appliances has issued the Control Procedures for Substandard Products and established Training for quality talent class professionals and strictly implements quality measures.regulations for product rework and repackaging management clarifying the processes for recalling evaluating and disposing of of Hefei Home Appliances

defective products to ensure timely handling of problematic products. Homa Appliances has established a series of systems including In 2024 to strengthen internal quality management and collaborative innovation Hefei

the Product Recall Management Measures Procedures for Corrective and Preventive Measures and Nonconforming Product Output 12 Home Appliances conducted a total of five QCC (Quality Control Circle) activities mainly Control Procedure clearly defining the functional departments involved in product recalls and their specific operational procedures. times covering areas such as the refrigerator and washing machine factories research and

When a product recall event occurs Homa Appliances will quickly form a product recall team composed of representatives from R&D The event was held development and quality. Through cross-departmental collaboration and continuous

quality manufacturing plants sales and after-sales service departments responsible for the overall planning notification record improvement product quality and production efficiency were further enhanced. During

keeping and effect evaluation of the recalled products. After the recall is completed the Company will organize relevant departments the same period Homa Appliances released the Homa Appliances 2024 Quality Activity

to conduct an in-depth analysis and summary of the event to optimize future response measures. Plan for All Employees setting up a TOP quality competition to encourage all employees to

35 participate and promote the culture of quality management.

The number of covered people is

Case: Applying what you have learned Hefei Home Appliances

launches "quality craftsmanship special training"

Feedback from the factory/ Possible recalls for products 100%

market on major product that have been delivered to The graduation rate is

quality defects or failures customers In April 2024 to enhance the proficiency of department

personnel in quality tools and align with the Company's

business development needs the Company organized

a special training on "Common Quality Management

Tools". The training emphasized the definitions usage

Evaluation of methods and application scenarios of the seven major

product recall risks and initiation Evaluation of products to be recalled quality management tools. By assigning homework of recall after class employees were guided to deeply

understand and proficiently use these tools ultimately

applying them effectively in their actual work.Initiation of recall procedure

Formulation of product recall plan Recall of products Case: Applying what you have learned Hefei Home Appliances

conducts quality management training for components

Implementation of product recall Disposal of recalled products In August 2024 Hefei Home Appliances' "Quality Talent Class" conducted its sixth

training session on component quality management aiming to enhance the

relevant personnel's professional knowledge of quality and technical knowledge

Analysis of product failure and formulation of product categories. This training session elaborated on the key points of Analysis and summary of

of corrective and preventive actions reasons for product recall component quality management and also incorporated an IQC practical operation

segment to strengthen employees' understanding of inspection processes and

mastery of quality standards. By inviting employees to practice the inspection

process at the washing machine IQC site the training improved their ability to

Disposal of recalled products Correction and prevention of recurrence identify defects and manage quality control.Recall summary Documentation and archiving

Product Recall Procedure of Hefei Product Recall Procedure of

Home Appliances Homa Appliances

On-site training for theoretical knowledge of Washing machine IQC

quality management operation site

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Digital and TCL Smart Home is committed to building an intelligent and efficient smart factory system while actively promoting the construction of digital systems and implementing digital and

Intelligent intelligent transformation efforts. Data empowers the comprehensive improvement of the Case: Hefei Home Appliances invests tens of millions to build MES manufacturing execution system

Company's manufacturing capabilities and cost control capabilities.Transformation

In 2024 Hefei Home Appliances fully promoted the

construction of the Company's digital system and

established the "6+1 digital platform". Among them the

Smart Production As a leading enterprise in the industry TCL Smart Home has established a systematic smart MES manufacturing execution system encompasses

factory system across its subsidiaries. By leveraging a fully automated manufacturing functional modules such as planning and scheduling

system across the entire chain and fully integrating artificial intelligence detection systems material management equipment management

it ensures excellent product quality while achieving efficient manufacturing. quality management cost management and energy

management. The introduction of this system supports

Hefei Home Appliances currently boasts three smart factories specializing in refrigerators Hefei Home Appliances in achieving full-process

National Industrial Internet Pilot washing machines and injection molding equipped with nine automated manufacturing production process control from production plan

Demonstration Enterprise lines. It has successfully established automated production lines covering the entire supply issuance product launch to product offline at the

chain. To ensure the efficient operation of its automated factories Hefei Home Appliances

Ministry of Industry and production base.has incorporated internal error prevention design and error prevention automation

Information Technology of the applications into its production lines. Through the automation and refined management of

People's Republic of China the manufacturing process it has improved product stability and quality while effectively

reducing the need for manual intervention. Currently the automation substitution rate for

labor-intensive positions at Hefei Home Appliances has reached 80%. Digital manufacturing system

On this basis Hefei Home Appliances has pioneered the world's only fully unmanned

Certification of Digital Workshop intelligent three-dimensional cabin which can operate unmanned and be directly Equipment Conduct real-time monitoring of various equipment on the production line

in Anhui Province connected to the intelligent sorting system after products are off the production line monitoring collect operational data of the equipment and achieve remote diagnosis and

enabling efficient three-dimensional storage and JIT shipping integration. At the same maintenance of the equipment.Anhui Provincial Department time Hefei Home Appliances has actively introduced artificial intelligence systems and

of Industry and Information currently possesses three visual inspection devices with the detection rate of defective

Technology door appearance improved to 99%.Homa Appliances has continuously strengthened its strategic investment in the field of Production Intelligently schedule production tasks optimize the allocation of production

intelligent manufacturing actively updated its automated production equipment and scheduling resources and improve production efficiency.production line architecture promoted the in-depth implementation of lean production

and committed to building a modern intelligent production system creating a leading

model of high-end intelligent factory in the industry. The Homa Appliances high-end air-

cooled refrigerator intelligent manufacturing base which was put into operation at the end

of 2023 covers an area of 72000 square meters. The factory is equipped with automated Quality By conducting online inspections of product quality on the production line real-

facilities and equipment such as robotic arms and automatic trimming achieving 100% inspection time monitoring of product quality is achieved enabling timely detection and

automated operation. In addition the production base is also equipped with a full-line handling of quality issues

automated detection system which ensures product quality and safety through artificial

intelligence automatic leak detection.Data By analyzing various data generated during the production process we can uncover patterns and issues within it providing support for corporate decision-

Digital Operation Smart production cannot be achieved without the establishment of a digital system. analysis making

TCL Smart Home continues to empower enterprise operational efficiency through digital

and Maintenance technology engines promoting sustainable enterprise development. In 2024 TCL Smart

Home and its subsidiaries vigorously promoted the construction of digital platforms

upgrading digital systems across multiple operational sectors including "procurement

research and development production logistics and finance". They deeply integrated Full-process By tracing materials and products throughout the entire process we ensure the

digital technology with refined operational strategies established a data transparency traceability quality of materials and products is controllable thereby enhancing customer satisfaction

Hefei Home Appliances "The management system and efficiently improved the Company's operational efficiency and

project to enhance the quality cost control capabilities.m a n a g e m e n t o f d i g i t a l

manufacturing for refrigerators Hefei Home Appliances has launched the "6+1" digital manufacturing quality management

and washing machines based improvement project for refrigerator and washing machine which involves "six major

on the industr ial Internet business areas and a unified development platform". It has established a digital platform

platform" has been selected and product system that is industry-leading and capable of agile delivery. The digital Homa Appliances has deeply promoted the application of digitalization construction and flexible production models established

for the pilot demonstration list system of Hefei Home Appliances covers the Company's main operational areas such as digital systems such as the quality management system (QMS) data platform a pilot smart material distribution system (WMS) and

of "Industrial Internet Platform R&D and design procurement production warehousing and logistics finance and human a big data analysis platform effectively reducing the Company's production costs and manufacturing expenses and enhancing the

+ Quality Management" resources enabling online business data and using data to provide effective support for Company's economic benefits and market influence. In 2024 Homa Appliances continued to optimize and upgrade the manufacturing

business decision-making. execution system (MES) to achieve real-time online business operations intelligent mobile management and full-chain digitalization.

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Customer Service TCL Smart Home is committed to providing high-quality customer service continuously empowering the service team and constantly optimizing the customer experience. real-time intelligent reminders in case of abnormalities helping work order management

personnel respond and intervene quickly. On this basis Hefei Home Appliances regularly

monitors product public opinion and user feedback through the VOC management

platform to efficiently handle user demands and promote product quality improvement

Excellent Customer High-quality customer service has always been the unwavering principle adhered to by TCL from the root. In 2024 the average processing time for user complaints at Hefei Home

Smart Home. By continuously improving after-sales service standards optimizing service

Service Appliances improved to 2.62 days per order a speed increase of 10%.processes and conducting customer service training TCL Smart Home is committed to

providing customer with products and services that are trustworthy. Homa Appliances adheres to the service philosophy of "serving customers wholeheartedly

and determined to impress customers" continuously strengthening after-sales service

Hefei Home Appliances adheres to the customer service philosophy of "striving to become responding to customer needs in a timely and effective manner and improving customer

the most trusted home appliance service provider for consumers providing users with experience. Homa Appliances has established communication channels such as telephone

ultimate services with warmth and making life better!" It continuously optimizes the hotlines and WeChat official accounts to respond to consumers' needs for repair reports

customer service process to enhance the customer service experience. To further improve inquiries complaints and suggestions. The Company has established user profiles

the user experience in 2024 Hefei Home Appliances formulated the TCL Refrigerator and through the "after-sales service system" with dedicated personnel responsible for follow-

Washing Machine Quick Compensation Mechanism 3.0 granting more authority to frontline up processing and response improving the efficiency of tracking customer needs. In

personnel to quickly handle user needs within their scope of authority. At the same time 2024 Homa Appliances will advance user research work to the sales end actively building

the Company upgraded the standardized service process for refrigerator and washing sales-end user research and information collection capabilities helping the after-sales

machine product fault detection improved maintenance quality reduced secondary visits department quickly establish user personas during the service process provide targeted

and effectively shortened the waiting time for users. In addition Hefei Home Appliances after-sales services and enhance customer experience.improved the service experience in the scenario of product return and replacement across

all channels and enhanced the timeliness of return and replacement services effectively Homa Appliances promises to provide customer service within 24 hours in central cities

improving customer satisfaction. and 48 hours in rural areas and offers appointment services for remote areas. In 2024

Homa Appliances further strengthened the optimization of service completion efficiency

In 2024 To improve the full-chain service management system in 2024 Hefei Home Appliances formulated the Special Maintenance Service Agreement requiring network assessment for

Homa Appliances launched a user demand management platform to achieve online processing of work orders that are not completed within 2 hours of appointment and simultaneously

user demands throughout the entire process. In addition Hefei Home Appliances setting up timely on-site incentive policies to ensure that user demands are promptly

comprehensively promoted the monitoring and analysis of user feedback across the

94.79% resolved. In 2024 the proportion of Homa Appliances' 2-hour timely appointment work entire network. Through the Voice of the Customer (VOC) management platform real- orders was 90% and the proportion of work orders completed within 48 hours was 81%.

Customer satisfaction time tracking of user feedback across the network was conducted and a special team was

established to efficiently handle user demands. In response to user feedback pain points In order to continuously improve the full-chain service management system TCL Smart

the Company vigorously promoted product quality improvement efforts forming a closed- Home comprehensively promoted the monitoring and analysis of user feedback across

99% loop solution. the entire network in 2024. Hefei Home Appliances established a VOC management platform to track user feedback in real-time across the entire network and set up a special

Customer complaint resolution rate In terms of customer complaint handling Hefei Home Appliances updated the User & team to efficiently handle user demands. Addressing the pain points identified through

Customer Complaint Resolution Mechanism (4.0) A3 institutional document to further user feedback Hefei Home Appliances vigorously promoted product quality improvement

standardize the customer complaint handling process. To efficiently respond to various efforts effectively reducing user complaints through the enhancement of product quality.customer demands management systems such as the customer management system

user service system (USS) and intelligent response robot have been established

comprehensively ensuring high-quality customer service management and efficient

customer service response speed. In 2024 the Company launched the service operations TCL Smart Home attaches great importance to customer privacy protection strictly

platform and timeliness intervention platform further refining the service work order Protecting abides by laws and regulations such as the Personal Information Protection Law of the

nodes and setting up a complaint early warning entry on the engineer APP providing Customer Privacy People's Republic of China and the Data Security Law of the People's Republic of China

and has formulated strict internal data management policies and permission settings.The Company has established protection mechanisms for various stages of acquiring

monitoring and distributing customer information to safeguard customer privacy.Hefei Home Appliances follows the TCL Privacy Policy (General Principles) and respects and

safeguards consumer privacy and security. In order to fully respect and protect consumers'

rights to know and decide regarding privacy and data Hefei Home Appliances has

outlined the content and scenarios of personal information collection and use in its "Shifen

Daojia" Privacy Guidelines. At the same time Hefei Home Appliances has carried out a

comprehensive inspection for data masking of all customer information in the data system

to strengthen the management and protection of user information.Homa Appliances has comprehensively strengthened its data permission settings to

ensure that user information is only accessible to internal personnel and service outlets

JD JD JD JD safeguarding consumer privacy and security. Each year Homa Appliances' partner outlets

After-sales Service Rock Award Installation Service Star Installation Service Star After-sales Service Golden Classic Award sign the Special Maintenance Service Agreement stipulating that maintenance services

TCL washing machines TCL washing machines TCL washing machines TCL washing machines cannot be authorized to third parties in any form to ensure that user information is not

leaked.

53 542024 Guangdong TCL Smart Home Appliances Co. Ltd. Uphold Product Responsibility

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Empowerment of TCL Smart Home remains dedicated to empowering the service team by continuously

improving its service awareness and skills. The Company empowers the customer service

Service Team team comprehensively from maintenance technology to service quality through regular Case: Homa Appliances organizes a post-sale work communication meeting for 2024

updates of service manuals online and offline training and assessments.The customer personnel training system of Hefei Home Appliances has developed In December 2024 Homa Appliances held the "New Thinking New Momentum" domestic marketing annual meeting in

differentiated training programs for customer service personnel of different ranks and Jiangmen Guangdong Province. During the meeting service personnel from various provinces and quality department personnel

In 2024 categories including pre-job training for new employees on-the-job emergency skills from the headquarters were invited to participate in the annual after-sales work communication and exchange session where

TCL Smart Home improvement training and literacy and skills training courses. In 2024 Hefei Home in-depth discussions and exchanges were held on the annual after-sales service and service prospects for 2025.Appliances updated the Call Center Customer Service Personnel Training Management

74 System to further standardize the induction training skill development path training content and assessment methods for customer service personnel. During the reporting

Number of customer service period Hefei Home Appliances organized 60 sessions of common fault & new product

training sessions knowledge empowerment training for customer service representatives and 16 sessions

of specialized technical training for frontline engineers comprehensively enhancing the

professional literacy and technical skills of the service team.

2031 Homa Appliances has formulated the Regulations on Management of Training for

Customer service training User Service Center to standardize customer service and training-related standards. To

participants strengthen the connection between customer service personnel and product technology

Homa Appliances has established a comprehensive knowledge transfer system: the

Company regularly uploads product-related documents through the Homa system

knowledge base cloud storage and other systems and regularly organizes meetings for

customer service product technology training. In addition for newly launched products

Homa Appliances promptly records relevant maintenance scheme videos to present

maintenance processes and key technical points in an intuitive and clear manner ensuring

that customer service personnel and maintenance teams can master the maintenance

skills of new products in the first place. In 2024 Homa Appliances added monthly customer

service exams focusing on assessing basic service literacy and product knowledge to

build a professional service team.Case: Hefei Home Appliances held a professional skills training conference for services related to

refrigerator and washing machine

In the second half of 2024 Hefei Home Appliances conducted 16 offline white appliances technical training sessions

nationwide. The training was primarily targeted at frontline engineers aiming to comprehensively enhance their basic

knowledge of refrigerators and washing machines as well as common troubleshooting methods. During the reporting period

a total of over 900 people participated in the training.

2024 TCL Refrigerators and Washing Machines Service 2024 TCL Refrigerators and Washing Machines Service

Professional Skills Training Conference - Hainan Station Professional Skills Training Conference - Nanjing Station

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Build a Happy

Workplace

The sustainable development process of a company is a process

of growing together with its employees. TCL Smart Home pays

close attention to talent retention and attraction continuously

improves its talent development management system and is

committed to building a diverse inclusive and equal workplace

atmosphere providing employees with a comfortable office

environment.SDGs addressed in this chapter

WORKPLACE

57 582024 Guangdong TCL Smart Home Appliances Co. Ltd. Build a Happy Workplace

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Employee TCL Smart Home strictly adheres to national laws and regulations continuously promotes Diversity and Equal TCL Smart Home has always advocated fair employment and firmly opposed any form equal employment for employees fully guarantees statutory benefits such as salary and

Opportunities of discrimination. In the processes of recruitment training and promotion it promises Employment vacation actively facilitates communication channels and strives to create a friendly and not to discriminate against employees based on factors such as gender age race

inclusive workplace environment. religious belief disability or marital status. Hefei Home Appliances has issued the Anti-

Discrimination Management Procedure which clearly implements the principle of equal

pay for equal work and ensures equal employment opportunities for male and female

Protection of TCL Smart Home strictly abides by relevant laws and regulations such as the Labor Contract In 2024 employees. Homa Appliances has formulated the Employee Behavior Management

Law of the People's Republic of China and the Labor Law of the People's Republic of China TCL Smart Home Measures which clarifies the handling process for anti-discrimination and anti-harassment Employees' Rights establishes an internal employee management system ensures standardized employment cases provides suitable positions and special allowances for disabled employees and

and Interests practices and effectively safeguards the legitimate rights and interests of employees. 259 supports their career development. In 2024 Homa Appliances established a women's person federation to provide ultimate protection for the rights and interests of female employees.TCL Smart Home has always adhered to the concept of fair recruitment and continuously Number of disabled employees

In 2024 established and improved the Company's recruitment management system. Hefei Home

TCL Smart Home Appliances upholds the recruitment philosophy of "equal opportunity fair competition 2385 Case: The inaugural meeting of the first Women's Federation and the first merit-based hiring person-job matching and legal compliance" actively conducts campus person Women's Congress of Homa Appliances were successfully held

100% lectures and job fairs enhances the brand awareness of corporate talent. Meanwhile we Number of employees from ethnic vigorously promote internal promotion and internal recruitment to enhance employee

Labor contract signing rate minoritiesinternal mobility and optimize corporate talent allocation. Homa Appliances adheres to the To better safeguard the rights and interests of female employees at Homa

recruitment philosophy of "openness fairness competition" and "appointing people based Appliances and unite and lead them to make achievements the inaugural

100% on merit" attracting outstanding talents through activities such as corporate open days 6.9% meeting of the first Women's Federation and the first Women's Congress of

and internal promotion channels. Homa Appliances adopts a "double-check" screening Homa Appliances were successfully held on May 30. The meeting deliberated

Employee social security coverage rate process in the recruitment process with the human resources department conducting Ratio of female executives and approved the Election Method for the Women's Congress (draft) listened to

preliminary screening and evaluation and the employing department conducting final the report on the preparations for the first Women's Congress and elected 11

2995 interviews to ensure "person-job matching". members to the Executive Committee of the first Women's Federation.16.90%

The total number of employees who TCL Smart Home strictly prohibits the child labor and any form of forced labor and firmly

regularly undergo performance and Ratio of female management safeguards the human rights of workers. During the recruitment process TCL Smart

career development assessments is personnelHome strictly adheres to national laws and regulations proactively verifies the true age of

employees and prevents the recruitment of child labor by mistake due to a false document

of proof of age. For underage employees the Company strictly complies with relevant laws

4415 person and regulations signs internship agreements and provides compliant management and training to ensure their legitimate rights and interests. Hefei Home Appliances has issued

Number of female employees 29.59% the Management Procedures for Prohibition of Child Labor and Underage Labor to further

standardize relevant requirements. In 2024 Homa Appliances updated its digital human

resources system and incorporated an age restriction function in the onboarding system to

Number of prevent violations.employees:

classified by TCL Smart Home has established a comprehensive compensation system. By implementing

gender various measures such as precise "position-compensation" matching regular conducting Employee TCL Smart Home emphasizes communication with its employees and continuously

salary market research constructing a systematic performance evaluation system and optimizes its feedback mechanism and problem-solving process. By establishing a

introducing a differentiated compensation incentive system the Company ensures Communication diversified communication platform the Company facilitates timely feedback on employee

10508 person that its compensation remains competitive in the market. TCL Smart Home closely links suggestions and promotes efficient problem resolution. On this basis the Company

Number of male employees 70.41% compensation with employee performance and regularly adjusts employee ranks and

regularly conducts satisfaction surveys to gauge employee satisfaction with the work

compensation levels based on factors such as the Company's strategic goals employee environment and logistics management and continuously optimizes related work based

performance and abilities to ensure fairness and reasonableness in employee on the feedback.

738 compensation. person In 2024 To further strengthen communication and cooperation between the Company and its

Employees over 50 years old 4.95% In terms of performance evaluation TCL Smart Home conducts comprehensive

TCL Smart Home employees Hefei Home Appliances has established a labor union organization and carries

performance evaluations on a regular basis according to the nature of the various job out its work adhering to the concept of "promoting harmonious development between

positions held by employees with a focus on the performance of employees in key 100% the enterprise and employees as a core task". The labor union actively reflects the opinions

areas such as safety quality and discipline. Hefei Home Appliances has established and suggestions of employees and fully safeguards their rights and interests. At the same

Number of Employee satisfaction rate a Performance Floating System that matches corresponding salary structures based time the labor union continues to promote the attention to the voices of employees in the

employees: on employees' semi-annual and annual performance and introduces tools such as Company's decision-making process.classified by 360-degree evaluation and engagement evaluation based on talent inventory job

age 11335 In 2024 Homa Appliances continued to implement the system outlined in the Notice qualifications and data analysis results to comprehensively build an evaluation and on Further Improving Communication Channels for Employees further expanding the

assessment framework. This not only effectively enhances employees' work enthusiasm

6389 Number of labor union members communication channels between employees and the Company. Employees can provide person but also promotes their self-improvement and comprehensive development in various their opinions and suggestions to the Company through various channels such as the

aspects. Homa Appliances has formulated a Performance Management Method which

Number of employees aged president's email complaint and suggestion image DingTalk corporate OA email and regularly organizes departments to conduct employee position and organizational

30 to 50 42.81% the "Homa Talks" official account. In addition Homa Appliances regularly conducts performance evaluations on a monthly quarterly and annual basis comprehensively communication training for grassroots supervisors and employees to strengthen internal

reviewing the performance of employees and teams.

7796 communication ensure smooth information flow within the Company and promote person efficient collaboration.

Employees under 30 years old 52.24%

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Talent TCL Smart Home is committed to establishing a smooth employee promotion channel Talent Training Program of Homa Appliances

Development to ensure the standardization and fairness of employee career development. TCL Smart Home attaches great importance to employee training and development continuously

improving the talent cultivation system and facilitating the building of a professional TCL Cultivation plan Plan content

In 2024 Smart Home team through the implementation of diversified talent cultivation projects and

TCL Smart Home the promotion of internal learning platform construction. To facilitate the rapid growth of fresh graduates Homa Appliances has established a systematic

Hefei Home Appliances has established a systematic talent cultivation system adopting Outstanding Talent training system for management trainees participating in the Outstanding Talent Program. Through one-on-one guidance from professional mentors management trainees will smoothly

2.8 a dual-mentor system that combines scientific selection and systematic training flexibly Program million RMB adapt to and integrate into the Company during the one-year mentoring process completing allocating resources to build a diversified and high-quality team. To support global

Total employee training investment their role transition.business expansion Hefei Home Appliances has set up a dedicated overseas factory

training program to reserve international talents.The "Talent Development Program" backup team leader program aims to cultivate grassroots

3440 management talents with management capabilities and self-awareness and reserve frontline Talent Development key personnel. The Company has customized courses such as "Role Awareness and Execution"

Number of employee training sessions Talent Training System of Hefei Home Appliance Program and "Interpersonal Leadership" for the trainees and comprehensively enhances the job skills of

conducted backup team leaders through practical sessions such as case analysis group discussions and

simulation exercises.Program Name Project Content

330231 The "Elite Program" (Training Program for Managers) is targeted at newly promoted grassroots Based on the enrollment year threshold objectives ability managers. Through various forms such as intensive training mentor coaching symposiums

Number of employees participating in indicators etc. we build a tiered leadership development Elite Program sharing sessions and on-the-job practice combined with practical business issues it helps

training Eagle series system from "young eagle" "flying eagle" to "elite eagle" managers smoothly complete their role transition enhance management skills and cultivate

training programs for fresh graduates as well as a training system for newly and reserve talents for enterprise development.appointed management and high-potential talent. This

aims to help quickly adapt to the workplace and enhance

174321 their leadership skills. Targeting personnel at the 9-12 job levels we aim to cultivate a group of outstanding hours backup middle-level leaders based on the Company's strategic needs. The training content

Total training hours for employees For new managers department heads directors and other Talent Gathering Program encompasses classroom instruction project practice extreme challenges and exchange and

Newly-appointed management personnel special training sessions will be sharing helping trainees enhance their comprehensive abilities. Successful graduates will be

series training conducted to focus on enhancing their management skills included in the backup middle-level leader talent pool.and leadership abilities. This will help them better adapt to

programs the role transition and effectively perform their management

functions.Targeting engineers specialists and team leaders we aim to cultivate a group of outstanding

Outstanding Talent backup grassroots leaders in accordance with the Company's strategic needs. The training

We regularly carry out professional ability training based Program encompasses classroom instruction project practice extreme challenges and exchange and

Professional on employees' job nature and work content to ensure sharing comprehensively enhancing the comprehensive abilities of the trainees. Those who

training programs the efficient implementation and smooth execution of successfully complete the training will be included in the pool of backup grassroots leaders.organizational strategic projects.Learning

platform and We establish diversified public learning platforms such as Case: Hefei Home Appliances launches the Home Appliances Blue Eagle Program

resources "T-School" open to all employees and provide rich learning

development resources and flexible learning methods.To support the business development and enhance the manufacturing capabilities of the refrigerator and washing machine

manufacturing plant Hefei Home Appliances has launched the Rock Project - a backup team leader training program

aiming to reserve more grassroots management personnel and improve employee career development channels.Homa Appliances has established a two-way career development path including a

"management channel" and a "technical channel" clarifying the promotion criteria and

qualifications for both channels to facilitate employee advancement. In the technical

channel Homa Appliances conducts professional title promotion reviews for technical staff

annually in accordance with the Management Measures for the Evaluation of Technical

Staff Titles . Furthermore Homa Appliances has launched the "Talent Flow Plan" to provide

job transfer opportunities for certain employees in the Company supporting personal

development.Homa Appliances has established targeted training programs for different levels

of personnel and formulated internal management systems such as the Training

Management Measures and Instructor Management Measures. It continuously optimizes

the training process enhances the abilities of training instructors and improves the

overall quality of employees. At the same time Homa Appliances actively promotes the

construction of the "Homa University" internal learning platform providing convenient and

efficient learning channels for company employees.

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Care for TCL Smart Home provides employees with free dormitory and shuttle bus services and

equips the dormitory area with facilities such as a billiards room dance hall and movie

Case: Hefei Home Appliances' Combined Value Excellence Marketing Elite Class Training ProgramBlue

Eagle Program Employees theater to enhance their leisure experience. At the same time the Company regularly

organizes various cultural and sports activities to further enrich employees' leisure time.TCL Smart Home also offers a range of welfare measures including overtime allowance

With the development of the white appliance business the ODM business has been continuously expanding. To assist the meal allowance full-attendance bonus high temperature allowance and transportation

ODM marketing center in achieving its business goals and enhance sales capabilities and professionalism especially in subsidies.major customer business Hefei Home Appliances has organized the Excellent Marketing Elite Class training program to help TCL Smart Home strictly abides by relevant laws and regulations providing employees

trainees systematically master core skills. with statutory maternity leave paternity leave and breastfeeding leave. Meanwhile each

production base provides nursing rooms for pregnant and breastfeeding employees

paying attention to the special needs of female employees. Hefei Home Appliances has

formulated the Risk Management Procedure for Pregnant and Lactating Mothers and

parental leave policies standardizing the management regulations for pregnant and

lactating employees in the Company and comprehensively implementing the rights and

interests of female employees. Homa Appliances provides flexible office hours for female

employees with children under 12 years old supporting their work-family balance.Homa Appliances pays close attention to the group of employees facing difficulties

or disabilities. The Company encourages its branches to recruit disabled individuals

implements retention incentive programs and provides employment opportunities for

disabled employees. In 2024 Homa Appliances regularly carried out special employee

condolence and care activities. For the group of impoverished employees after review

Homa Appliances provides additional subsidies to help employees tide over difficulties.Case: "Inspire Greatness Leading Future" Hefei Home Appliances

Preliminary Fitness Race

Case: Homa Appliances launches the Talent Gathering Program - Backup Middle-level Cadre Training Camp

Homa Appliances has launched the "Talent Gathering Program" backup middle-level cadre training camp for on-the-job From November to December 2024 Hefei Home

directors section chiefs senior commissioners and engineers. The program runs from January to October offering a total of Appliances called on all employees to participate in

17 courses covering professional knowledge and management skills in multiple fields. There were 37 participants with an the "Inspire Greatness Leading Future" preliminary

overall attendance rate of 97%. fi tness race. Employees were encouraged to

complete a 25-kilometer race within a period of one

and a half months and were offered chances to win

prizes to boost their enthusiasm for participation.Case: Homa Appliances conducts special employee care activities

In 2024 to further fulfill its humanistic care and social responsibility Homa

Appliances expressed its care and support for its employees by providing food

daily necessities and other essentials to special employees ensuring that their

lives outside of work are also warm and secure.

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Occupational Occupational health and safety is a crucial pillar for achieving the Company's long-term Homa Appliances has formulated the Measures for Classified Control of Safety

development. TCL Smart Home continuously optimizes its EHS governance structure Production Risks and established a comprehensive framework for occupational health

Health and comprehensively enhancing safety management levels through regular risk identification safety and environmental hazard investigation. Through daily inspections regular

high-risk operation control and improved emergency management capabilities. inspections comprehensive safety environment inspections and special inspections Safety To prevent occupational diseases TCL Smart Home emphasizes employee physical systematic risk assessments are conducted to further enhance the level of production

examinations and strengthens employees' awareness of safety and health through safety management. In 2024 Homa Appliances conducted a total of 380 special safety

continuous occupational health promotion. inspections and eliminated over 3000 production safety hazards.Safety TCL Smart Home strictly adheres to laws and regulations such as the Labor Law of the Risk assessment and countermeasures for safe production at Hefei Home Appliances

People's Republic of China and the Work Safety Law of the People's Republic of China

Management establishes an internal occupational health and safety management system and Risk of safety

System continuously improves its internal management system to comprehensively manage the production Source (risk point) CountermeasuresCompany's production safety process. All relevant industries of TCL Smart Home have

obtained ISO 45001 occupational health and safety management system certification and The refrigerator factory has added two safety management

this certification system has been extended to the supply chain requiring suppliers to also personnel with one dedicated person supervising and

comply with occupational health and safety management standards. Hot work for the installation of managing the construction sites for both day and night Fire Risk new refrigerator equipment shifts;

Hefei Home Appliances adheres to the safety management philosophy of "self- Risk identification approval and supervision before

management safety first safe white appliance starting from me" actively implements hazardous operations.the responsibility system for production safety and establishes an occupational health

and safety committee in accordance with relevant regulations on occupational health and Add radar scanning monitoring to the blind zone of the

safety responsible for researching deploying and guiding safety management work. In safety protection grating ensuring full coverage of the

Hefei Home Appliances ISO 45001 2024 Hefei Home Appliances updated 32 internal management systems related to safety monitoring range;

Certified Occupational Health and Safety to ensure that production safety work is legal and compliant.Management System Certification Risk Of Promote the establishment of equipment operation procedures and conduct training on these procedures for

Homa Appliances adheres to the safety management policy of "following the path of Mechanical Injury New equipment primary operators;

scientific enterprise development conducting compliance management caring for life The team conducts daily training and disclosure of

and creating a safer and more comfortable environment for employees". It has established operating procedures during pre-shift meetings;

an EHS safety committee and formulated internal safety management regulations such

as Safety Responsibilities Procedures for Each Department EHS Infrastructure Evaluation Team leaders and safety supervisors should strengthen

Standards and Safety and Environmental Management System for Interested Parties inspections and rectify violations.establishing a safety management system with clear levels and responsibilities. In 2024

Homa Appliances set the safety production goals of "zero work-related fatalities" "zero Management of limited storage of refrigerant in the refrigerant room;

serious injuries" "zero fire accidents" "zero occupational diseases" "zero acute poisoning

Homa Appliances ISO 45001 Occupational

Health and Safety Management System accidents" and "minor injury rate ≤ 2%". By the end of the reporting period all these goals

Explosion Risk The explosion vent of the The modification of adding explosion vents to the

Certification had been achieved. refrigerant room is missing refrigerant room poses a relatively low risk;

The safety supervisor conducts routine inspections and

supervision with emphasis.Safe Production Safety Review Safety Production Risk Assessment and Countermeasures for Homa Appliances

In 2024 To implement relevant laws and regulations such as the Work Safety Law of the People's

TCL Smart Home Republic of China and the Regulations on the Safe Production Permit TCL Smart Home Work safety risk Risk Points Countermeasures

rigorously enforces the safety production inspection system to ensure timely detection and

690.36 elimination of potential safety hazards safeguarding production safety and employee ten thousand RMB health. Before the commissioning of new equipment safety reviews are conducted Risk from Mechanical Box and door blister machine Safety prop emergency stop manual control warning sign

Expenses for safe production and safety operation procedures training is provided to main operators to ensure safe Incidents

equipment use. Meanwhile the Company has adopted a series of effective control

measures for safety production risk assessment to further strengthen safety management

398 and prevent accidents. session Leakage Risk Refrigerant room Install gas concentration alarm devices to monitor combustible gas leaks

Number of safety inspections Hefei Home Appliances regularly conducts equipment hazard investigations and performs

conducted safety reviews and acceptance checks on new equipment to ensure compliance with

safety standards by implementing management systems such as the Special Treatment

0 Plan for Equipment and Facility Safety Hazards the Occupational Hazard Identification session Operational Risk Crusher machine Warning signs safety trainingand Evaluation Control Procedure and the Laws Regulations and Other Identification

Number of major safety production Requirements for Regulatory Controls.accidents

65 662024 Guangdong TCL Smart Home Appliances Co. Ltd. Build a Happy Workplace

Environmental Social and Governance Report

Safety Production and Emergency Management

In 2024

Case: Homa Appliances launches a series of activities for the "119 Fire Prevention Awareness Month"

TCL Smart Home continuously optimizes the management and use process of chemicals

69 to ensure compliant operation and safe use. Hefei Home Appliances has formulated

and implemented the Regulations on Hazardous Substance Process Management In November Homa Appliances actively organized fire safety competitions publicity training evacuation drills and hidden Emergency drills

regularly conducts chemical assessments and ensures that all operations comply with danger investigations focusing on the theme of "Fire Protection for All Life Supreme". These activities aimed to continuously

relevant standards. In 2024 Hefei Home Appliances passed the certification for Level enhance employees' awareness of fire safety and their ability to prevent and rescue themselves. By strengthening fire risk

2 Enterprise of Safety Production Standardization. Homa Appliances has established a prevention a strong atmosphere of full attention learning and participation in fire safety was created further improving

comprehensive chemical management system that standardizes chemical management the overall level of fire safety management.864 work from chemical assessments inventory management optimization of use processes

Safety production trainings and employee training ensuring the operational safety of employees in the process

of managing and using chemicals. On this basis Homa Appliances regularly conducts

chemical management training covering usage norms accident prevention and

emergency response and evaluates employees' safety knowledge and operational

69266 capabilities through exams practical drills and inspections.

Number of employees participating in In terms of high-risk operation control TCL Smart Home has established strict operating

safety training specifications for high-risk operations such as hot work climbing and cyclopentane

unloading. By installing monitoring equipment and sensors to monitor potential hazards

in real time it ensures that risks are controllable and fully implements safety production

management measures. Safety Culture

Hefei Home Appliances has formulated the Regulations on the Management of Hazardous

Operations implementing strict risk identification and approval processes for high-risk TCL Smart Home is committed to strengthening the construction of a safety production culture. By regularly conducting various

operations. Additionally it has strengthened the management of operator qualifications safety activities and safety production month themed training it continuously enhances employees' awareness and knowledge of

ensuring that operators hold relevant certificates to ensure the safety and compliance occupational health and safety. Hefei Home Appliances has formulated the Regulations for Occupational Health and Safety Training

throughout the entire operation process. Homa Appliances has further improved its Management to standardize the effective implementation of safety training activities. Meanwhile Homa Appliances requires employees

safety management system through documents such as the Special Operations Safety to complete three-level safety education before employment and includes training on emergency rescue fire safety mechanical safety

Management System and the Hazard Source Identification Risk Assessment and risk control and other topics in subsequent training.Control Procedure . Simultaneously the Company has enhanced the safety protection

of mechanical equipment adopting interlocking devices and visual warning signs to

effectively reduce equipment risks.Case: Hefei Home Appliances held a kick-off meeting for the Production Safety Month

In terms of emergency management Hefei Home Appliances actively promotes the

standardized implementation of the emergency management system implements

emergency management procedures for safety accidents requires all departments to On June 5 Hefei Home Appliances held its kick-off meeting for the Production Safety Month with the theme of "Everyone Talks

respond collaboratively according to predetermined procedures quickly controls the about Safety Everyone Knows How to Respond to Emergencies - Keep the Life Channel Open". During the meeting participants

situation assigns responsibilities and implements improvements ensuring the prompt watched promotional videos for the Production Safety Month and learned relevant safety knowledge and emergency response

restoration of production safety. skills. The meeting emphasized the need to strictly implement production safety regulations strengthen risk management

and control and conduct thorough investigations of hidden dangers to ensure the safety and compliance of the production

Homa Appliances has formulated the Emergency Response Plan for Production Safety environment.Accidents and Emergency Preparedness and Response Procedures to provide guidance for

the actions to be taken during emergency events. Each factory area of Homa Appliances

is equipped with fire and chemical leakage alarm systems and automatic broadcasts to

enhance the efficiency of accident identification. Additionally facilities such as automatic

fire sprinklers safety ventilation fire hydrants emergency lights and evacuation indicators

are installed to strengthen the ability to respond to dangerous situations.Case: Hefei Home Appliances carries out fire prevention awareness month activity

Case: Homa Appliances conducts knowledge training for the Safety Production Month

In May Hefei Home Appliances carried out a fire prevention month activity with the theme of "Prevention First Life On June 15 Homa Appliances held a safety production month knowledge training session with the theme of "Keeping

Supreme". During the activity relevant personnel conducted a comprehensive safety inspection of key fire prevention the Life Channel Unobstructed for Education and Publicity". The training aimed to enhance employees' awareness of

areas in the workshop (such as foam storage areas and densely populated areas) identifying 6 fire hazards. In addition the importance of keeping the life channel unobstructed strengthen emergency evacuation and emergency response

on May 25 the Company selected 10 capable personnel from various workshops to form the "Hefei Home Appliances skills and ensure the rapid and safe evacuation of personnel in case of emergencies thereby safeguarding the lives of

Fire Emergency Rescue Team" further enhancing emergency rescue capabilities. employees.

67 682024 Guangdong TCL Smart Home Appliances Co. Ltd. Build a Happy Workplace

Environmental Social and Governance Report

Occupational TCL Smart Home has always been committed to providing comprehensive health and

safety protection for its employees and strictly adheres to the occupational disease

Health prevention regulations in all operational locations. To effectively reduce the risk of

Management occupational diseases the Company requires employees in relevant positions to Case: Homa Appliances conducts Red Cross first aid trainingregularly participate in occupational disease prevention training ensuring they possess

the necessary prevention and response capabilities. In high-risk work environments

employees must wear personal protective equipment such as earplugs and dust masks On June 6 and June 14 Homa Appliances held Red Cross first aid training sessions at the parts sub-factory and the second

to ensure safety during work. Furthermore the Company also requires employees to sub-factory training room respectively with participants including employees and management personnel from each sub-

In 2024 regularly undergo pre-employment in-service and post-employment occupational health factory. The training covered basic first aid skills cardiopulmonary resuscitation (CPR) and trauma treatment aiming to

TCL Smart Home examinations in order to promptly identify and prevent potential occupational health risks. enhance employees' emergency response and first aid capabilities.

100% In order to further enhance the overall health level of employees TCL Smart Home regularly invites medical personnel to conduct health lectures and popularize medical

knowledge about common diseases helping employees strengthen their awareness of

Physical examination coverage daily health management thereby promoting their long-term health and well-being. No

rate for employees occupational disease incidents have occurred at TCL Smart Home.Case: Enhancing employees' safety awareness and self-rescue ability - Hefei Home Appliances conducts

medical emergency training

On August 29 Hefei Home Appliances in collaboration

with the Red Cross Society of China Feixi organized a

medical emergency training. The training combined

online theory with offline practical operations covering

emergency skills such as cardiac resuscitation AED

use and trauma care. A total of 92 employees signed

up for the training with 75 actually participating.Among them 74 successfully passed the assessment

and obtained the qualification of first aider.

69 702024 Guangdong TCL Smart Home Appliances Co. Ltd. Building a Harmonious Society

Environmental Social and Governance Report

Building a

Harmonious Society

TCL Smart Home actively fulfills its social responsibilities

continuously establishes and improves its supply chain

management mechanism participates in community public

welfare promotes the coordinated development of the value

chain and the community and contributes to the harmonious

development of society.SDGs addressed in this chapter

SOCIETY

71 722024 Guangdong TCL Smart Home Appliances Co. Ltd. Building a Harmonious Society

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Responsible TCL Smart Home has always adhered to the principles of "honesty and trustworthiness Supplier TCL Smart Home has been continuously establishing and improving its supplier fairness and justice equality and mutual benefits" and places great emphasis on management system refining the supplier access review and exit mechanisms and

Supply Chain supply chain management and supplier empowerment to ensure efficient operation Management standardizing relevant institutional references to create a responsible supply chain. Hefei

and transparent management of the supply chain. At the same time the Company also Home Appliances has established a procurement management committee chaired

focuses on responsible mineral management is committed to promoting the sustainable In 2024 Hefei Home Appliances by the general manager and vice-chaired by the supply chain director and including

development of value chain partners and contributes to the virtuous cycle of the industry representatives from product lines procurement finance quality and audit. The

ecosystem. 100% committee integrates collaborative work across production research and development quality and procurement to make decisions and effectively manage procurement

The environmental and social audit operations. The procurement management committee has a category management

Supply Chain TCL Smart Home is committed to building an efficient and flexible supply chain coverage rate of suppliers mechanism (CEG team) responsible for executing procurement-related work. The supplier

management system. Through systematic supply chain risk management and the management work of Homa Appliances is centered around the supply department and is

Management application of digital supply chains TCL Smart Home effectively enhances the efficiency of divided into eight material management teams according to different material categories

supply chain resource allocation continuously optimizes operational cost management promoting refined supplier management.and helps enterprises achieve sustainable development.Supplier Admission

Category Hefei Home Appliances Homa Appliances

In 2024 In terms of supplier admission Hefei Home Appliances has established the Supplier

Establish a collaborative decision-making Establish a close partnership with suppliers and TCL Smart Home Certification Management Process and implemented a new supplier introduction process

mechanism for front- and back-office risks and through information sharing and collaborative consisting of "four stages and fourteen steps" to comprehensively review supplier

introduce multiple departments including the work provide early warnings and address

procurement committee to manage supply potential risks qualifications. Hefei Home Appliances requires suppliers to meet the SA 8000 social

chain risks. 758 responsibility standard as well as ISO 14001 environmental management certification ISO S t rengthen inventor y management and

Total number of suppliers 9001 quality management system certification and ISO 45001 occupational health and Continuously monitor price fluctuations of raw buffering strategies establish inventory buffer safety management system certification.materials and key components and use the zones or safety stock and ensure a certain

Supply chain risk annual cost reduction KPI as a driving force to level of production capacity and customer Based on this Hefei Home Appliances incorporates environmental and social factors into

management promptly report to the procurement committee satisfaction is maintained in the event of supply

for procurement decisions. chain disruptions. For risk materials prepare 753 supplier qualification assessments conducting comprehensive evaluations in terms of

material inventory in advance; achieve a 100% By adopting refined annual planning KPI Number of suppliers in

product quality research and development and environmental protection. In terms of the

completion rate for inventory preparation. Chinese Mainland environment Hefei Home Appliances evaluates suppliers based on the Environmental assessment and a hilltop project mechanism Protection of Restricted Substances - On-site Inspection Checklist giving preference to

supply chain risks are effectively allocated. Reduce dependence on a single supplier

enhance the flexibility and competitiveness of

suppliers with a QC08000 hazardous substance management quality system and actively

Introduce new suppliers in a timely manner to the supply chain; open at least two suppliers for 2 engaged in environmental protection efforts. In terms of society Hefei Home Appliances eliminate dependence on a single supplier similar materials. conducts a comprehensive review of suppliers' labor rights and occupational health and

Number of suppliers in Hong safety management based on the Supplier Social Responsibility Inspection Checklist .A supply and demand interlocking mechanism B y m a k i n g re a s o n a b l e p re d i c t i o n s fo r Kong Macao and Taiwan regions

(S&OP production and sales collaboration) as raw material demand and implementing Homa Appliances has established the Related Party Safety and Environmental

well as a material completeness and slow- differentiated management of long-term and Management System which conducts comprehensive assessments covering qualifications

Flexible supply moving inventory early warning mechanism short-term materials we can prepare materials business and product quality during the supplier qualification process. For certain key have been established. Data-driven forecasting in advance or trial-produce materials according

chain 3 suppliers Homa Appliances reviews and evaluates the environmental risk factors of each and procurement planning for different cycles to work orders.are carried out through key indicators such as Number of suppliers in vendor based on the Vendor Environmental Safety Questionnaire.cycle strategy and flow rate. overseas regions TCL Smart Home adheres to the implementation of responsible procurement requiring

all suppliers to effectively fulfill their responsibilities and obligations and collaborate

Integrate supply chain management through The SRM system integrates e-commerce data with suppliers and partners to build a clean industry chain. Hefei Home Appliances

the SRM system and build a full-process mining and collaborative technologies to create requires all suppliers to strictly adhere to the TCL Supplier Code of Conduct and sign the

digital platform covering modules such as an efficient digital supply chain management Integrity Agreement. To safeguard the rights and interests of various small and medium-

supplier management procurement demand system. sized enterprises Hefei Home Appliances signs cooperation contracts with all suppliers

Digital supply chain management sourcing management and clarifying payment methods and payment terms and executes all payments according

forecast management. to the contracts. Homa Appliances continues to strengthen the management of suppliers

and partners clarifying anti-corruption requirements in contracts and retaining the right

to terminate cooperation; it conducts regular assessments of suppliers and partners to

ensure their continued compliance with the Company's anti-corruption requirements.Include delivery distance in the assessment for 80% of the materials are supplied by suppliers Homa Appliances requires all business partners (including but not limited to suppliers

new supplier admission around the Pearl River Delta. agents distributors logistics providers etc.) to sign the Homa Appliances Anti-Commercial

Bribery Agreement.The bulk supply resources are located within a

Localized radius of about 50 kilometers with suppliers

procurement accounting for more than 60% of the total

73 742024 Guangdong TCL Smart Home Appliances Co. Ltd. Building a Harmonious Society

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Supplier Management Responsible TCL Smart Home strictly adheres to the requirements of the Code of Conduct Responsible Business Alliance (RBA) and other standards. Regarding the use of mineral resources

Mineral such as nickel cobalt manganese lithium graphite mica copper and aluminum that

TCL Smart Home focuses on refined and differentiated management continuously promoting the graded and classified management may be involved in the production and operation process the Company resolutely does

of suppliers. Hefei Home Appliances implements graded and classified management of product categories and suppliers based In 2024 Hefei Home Appliances not procure or support conflict minerals from conflict areas and also explicitly requires

on the TCL Industrial Product Category and Supplier Graded and Classified Management Process combining business needs with suppliers not to use mineral resources from conflict areas. The Company ensures the

the implementation of QCDT (Q: Quality; C: Cost; D: Delivery; T: Technology) four-dimensional graded and classified management. legality of procurement activities through due diligence and other means.Homa Appliances conducts graded and differentiated management of suppliers based on material attributes and cooperation depth

regularly updating the graded and classified standards to adapt to changes in business needs. 100% In 2024 Hefei Home Appliances updated its Standard for Conflict Mineral Management

Suppliers accept due diligence adding control requirements for key minerals such as cobalt and mica. Additionally

on conflict minerals Hefei Home Appliances requires suppliers to sign the TCL Declaration of Conformity for

Supplier Classified Management Measures of Homa Appliances Prohibited and Restricted Substances and conduct regular training on conflict minerals

to enhance suppliers' awareness of responsible mining practices. If any supplier is found

to be using conflict minerals Hefei Home Appliances will recall products on sale seal

Category Management measures relevant inventory and conduct a re-evaluation of the supplier in accordance with the

quality agreement. In November 2024 Hefei Home Appliances provided conflict mineral

Conduct publicity and educational activities to help suppliers understand the Company's training for suppliers through a diverse "online + offline" training channel covering 100%

environmental policies and the related environmental management regulations. of the Company's suppliers.Sign agreements to put forward Homa Appliances' environmental management

Key Influential requirements.Related Parties Verify and confirm the performance of all suppliers annually or at random forming the Supplier With "collaborative innovation and value co-creation" as its core TCL Smart Home

Questionnaire for Key Influential Related Parties. leverages resource sharing and technical support to assist suppliers in optimizing

As soon as a non-compliance is identified suppliers are required to propose corrective Empowerment operations enhancing quality and promoting green development jointly building an

measures and Homa Appliances supervises the implementation of those measures. efficient stable and sustainable supply chain ecosystem.Get to know their environmental status and obtain the corresponding information on its Case: "Huada Semiconductor" thematic training

General Influential pollution generation and pollution control.Related Parties Promote Homa Appliances' environmental policies and if necessary make requests or

recommendations for environmental management. In November 2024 Hefei Home Appliances held

In 2024 a "Huada Semiconductor" thematic training. The

Hefei Home Appliances director and engineer team of Huada Semiconductor

were invited to give lectures with the participation

Temporary Non- Provide information on Homa Appliances' environmental policies goals and targets to the of Hefei Home Appliances' supply chain and R&D

influential Related related parties upon request 5 departments. The training focused on the application

Parties Number of supplier training of semiconductor technology in the home appliance

sessions field aiming to enhance the technical capabilities of the

team and promote cooperation between both parties in

technological innovation and supply chain collaboration.

50

In terms of everyday supplier management TCL Smart Home and its various businesses formulate the annual supplier audit plan Number of training suppliers

hold regular supplier quality review (QBR) to evaluate the supplier's business performance and development which is included in the

environmental social and governance audits. In the event that they fail to take rectifying measures TCL Smart Home will either cease Case: "Procurement Domain Empowerment" Thematic Training

cooperation with the supplier or impose relevant penalties.Hefei Home Appliances regularly organizes assessments for suppliers based on QCDT category division scoring method and supplier On December 13 2024 TCL Smart Home held a "Procurement Domain Empowerment"

graded and classified scoring method and adjusts the supplier hierarchy grading and quota proportion based on the assessment Thematic Training with the participation of supply chain R&D and quality departments.results. For strategic categories and strategic suppliers Hefei Home Appliances provides cooperation and priority. For suppliers that The training focused on enhancing procurement skills supply chain collaboration

fail to meet the assessment standards Hefei Home Appliances will require them to make rectifications within a specified period. For and quality management innovation aiming to strengthen cross-departmental

suppliers who fail to implement rectification measures effectively cooperation will be terminated or relevant penalties will be imposed. collaboration capabilities improve operational efficiency and provide support for

For suppliers who violate integrity financial or other issues Hefei Home Appliances will immediately eliminate the involved suppliers. procurement strategy optimization and supply chain management.In 2024 there were no cases of unqualified suppliers being eliminated by Hefei Home Appliances.Homa Appliances conducts regular quarterly assessments of suppliers covering aspects such as product quality usage tracking

delivery timelines and service attitude and regularly updates supplier classification. For suppliers that have significant negative

environmental impacts Homa Appliances will urge them to implement rectification measures and submit rectification reports. In 2024

Homa Appliances did not eliminate any unqualified suppliers.

75 762024 Guangdong TCL Smart Home Appliances Co. Ltd. Building a Harmonious Society

Environmental Social and Governance Report

Social Public TCL Smart Home actively fulfills its corporate social responsibility and supports the development of social welfare undertakings while uniting social forces by organizing

Welfare public welfare activities and encouraging employees to participate in voluntary services. Case: "Exploring Industrial Tour: Innovation and Dreams Take Off" public welfare activity

Hefei Home Appliances focuses on science and technology education organizing science

popularization and research activities for students of all ages. It integrates abstract In December 2024 TCL Smart Home Appliances (Hefei) Industrial Park supported the industrial research and study activities

In 2024 scientific knowledge into vivid and interesting practical scenarios helping students organized by the TCL Charity Foundation hosting a group of teachers and students from Feicui Lake Junior High School under the

TCL Smart Home enhance their scientific literacy through experience and stimulating their strong interest Hefei No. 8 Middle School Education Group. The event guided the students to visit the industrial park and showcased the production

and enthusiasm for exploring science and technology education. Homa Appliances cares process exploring the beauty of industry and sparking their dreams of innovation.

34 about vulnerable groups such as the impoverished and disabled individuals encouraging events its employees to participate in public welfare volunteer activities to provide assistance and

support to these vulnerable groups.Carry out employee public

welfare activities

270 Case: Hefei Home Appliances leads students from the University of Science person-times and Technology of China to explore the charm of technology

Number of employee volunteers

involved In November 2024 Hefei Home Appliances invited students from the University of

Science and Technology of China to visit the TCL Smart Home Appliances (Hefei)

Industrial Park creating a public welfare research and study trip for the students

aimed at exploring the mysteries of technology and experiencing the charm

of smart manufacturing. This event provided a platform for students from the

University of Science and Technology of China to closely interact with cutting-edge

technology.Case: Homa Appliances organizes special voluntary blood donation service activities for employees

In September 2024 the general party branch of Homa Appliances together with the Zhongshan Blood Donation Office and the

town Red Cross organized a special volunteer service activity for employees aiming to promote the volunteer spirit of "dedication

fraternity mutual assistance and progress" and spread positive social energy. The activity attracted a total of 30 participants.

77 782024 Guangdong TCL Smart Home Appliances Co. Ltd. Corporate Governance

Environmental Social and Governance Report

Corporate

Governance

Robust corporate governance is the cornerstone for sustainable

development of enterprises. TCL Smart Home adheres to

the values of integrity transparency and respect persists in

adhering to the leadership of the Party continuously optimizes

the top-level design of corporate governance establishes

a compliant internal control and risk management system

effectively safeguards the rights and interests of all stakeholders

and promotes the steady progress of the enterprise.SDGs addressed in this chapter

GOVERNANCE

79 802024 Guangdong TCL Smart Home Appliances Co. Ltd. Corporate Governance

Environmental Social and Governance Report

Party Building TCL Smart Home fully leverages the political core role of the party organization and the Corporate governance is the cornerstone of a company's steady development. TCL Smart exemplary vanguard role of party members regarding party building as a crucial driving Corporate Home has established a sound corporate governance structure clarifying the division

Leadership force for leading the Company's high-quality development. The Company continues to Governance of responsibilities among the general meeting of shareholders the board of directors

strengthen the foundation of party building strictly implement relevant systems and the board of supervisors and the management team and continuously promoting the

continuously enhance the standardization level and organizational execution capability standardization and sustainable development of corporate governance. At the same time

of the general party branch. Each party branch thoroughly implements the decisions the Company strengthens communication with investors and other stakeholders regularly

and deployments of the Party Central Committee and higher-level party committees enhancing the transparency of information disclosure and ensuring the Company's steady

continuously optimizes the development strategy transforms the advantages of party development within a framework of compliance and transparency.In 2024 TCL Smart Home building into the core competitiveness of the enterprise and promotes the deep

integration of party building and enterprise development.During the reporting period TCL Smart Home actively organized various party-building Board of Directors TCL Smart Home strictly adheres to the Company Law of the People's Republic of China

34 activities organizing 43 events in total including activities such as member meetings and the Securities Law of the People's Republic of China the Rules Governing the Listing of

study sessions. In 2024 TCL Smart Home actively respond to the spirit of the 20th National Governance Shares on Shenzhen Stock Exchange and other relevant laws and regulations as well as

Conducted Party-building activities Congress established the Homa Women's Federation at Homa integrating "Her Strength" the relevant provisions of the stock exchange. It has formulated regulations such as the

into the Party. Articles of Association the Rules of Procedure for the Board of Directors the Work System

for Independent Directors and the Rules of Procedure for the Board of Supervisors to

42.86% standardize the work of the Company's board of directors.

Female representation on the Board TCL Smart Home has established a corporate governance structure consisting of the

Case: Learning Party discipline to strengthen awareness uniting of directors of TCL Smart Home general meeting of shareholders board of directors board of supervisors and the senior

efforts to promote improvement management. Rules of procedure for each level have been established to ensure effective

checks and balances in decision-making execution and supervision. Directors and

On April 24 2024 the Party branch of Hefei Home Appliances organized a Party discipline learning and education activity. supervisors are nominated by the nominating body and elected by the general meeting of

The meeting delved into the important exposition of General Secretary Xi Jinping on comprehensively strengthening shareholders. The board of directors comprises the Strategy Committee the Nomination

the discipline construction of the Party conveyed the spirit of the Notice on Carrying out Party Discipline Learning and Committee the Remuneration and Appraisal Committee and the Audit Committee.Education in the Whole Party In 2024 issued by the General Office of the CPC Central Committee and the meeting of the Central Members of the special committees are elected by the Board of Directors to ensure the TCL Smart Home

Leading Group for Party Building Work and mobilized and deployed the Party discipline learning and education work of standardization and sustainable development of corporate governance. Currently the

the Group Party Committee. This activity further strengthened the discipline awareness of Party members promoted the in- Company's Board of Directors has seven directors including three independent directors.depth development of Party discipline education and provided a strong guarantee for enhancing the combat effectiveness 9 The Board of Supervisors has three members. Session

and cohesion of grassroots Party organizations. The Company actively builds a diverse Board of Directors balancing members' gender

Number of Board of Directors age professional experience cultural and educational backgrounds and enhancing

meetings the effectiveness of decision-making and governance to promote sustainable corporate

development. Currently there are two female directors on the Board.

6 Session

Number of general meetings of Strategy General Meeting of Committee Shareholders

shareholders

Nomination

6 Committee Session Board of Directors Board of Supervisors

Number of the Board of Remuneration and

Supervisors meetings Appraisal Committee

Audit Committee General Manager Secretary of the Board of Directors

Case: "Women's Power" Boosts High-quality Development

To thoroughly implement the spirit of the 20th National Congress of the Communist Party of China Homa Appliances places

great emphasis on the protection of the rights and interests and career development of female party members. On June 15

Homa Appliances' first Women's Federation Inaugural Ceremony and the first Women's Congress were successfully held

marking the official establishment of the Homa Women's Federation. The Homa Party Branch and the Women's Federation

will closely integrate with the overall development of the enterprise fully leverage the unique advantages of female party

members inject strong "women's power" into the transformation upgrading and high-quality development of Homa

Appliances and jointly contribute women's wisdom and strength to local economic and social development as well as the

"Hundreds of Counties Thousands of Towns and Tens of Thousands of Villages High-Quality Development Project".

8182

Securities Department

Zhongshan Office

Legal Compliance

Department

Administration and HR

Department

Financial Management

Department

General Manager Office

Homa Appliances Business

Department

Homa Appliances Business

Department

Internal Audit and Internal

Control Department2024 Guangdong TCL Smart Home Appliances Co. Ltd. Corporate Governance

Environmental Social and Governance Report

Investor Rights TCL Smart Home has always attached great importance to the protection of investors' TCL Smart Home has established a comprehensive compliance and risk management

rights and interests strictly abiding by relevant regulations such as the Company Law of Legal Compliance system adopting multi-level risk management strategies and precise response measures

the People's Republic of China and the Securities Law of the People's Republic of China and Risk to effectively ensure that all business activities comply with regulatory requirements and

and has established an Investor Relations Management System. The Company has set promote the steady development of the Company in a complex environment.up a dedicated "Investor Relations" section on its official website to provide investors with Management

convenient and accessible information disclosure services. At the same time TCL Smart

Home also regularly communicates with investors and other stakeholders through investor

relations emails phone calls and the "Interactive Easy" section of the Shenzhen Stock

Exchange. In 2024 the Company held a total of two performance briefings and conducted Compliant TCL Smart Home strictly adheres to local ethical moral relevant laws as well as the dozens of roadshows and investor reception activities. In addition the Company also Articles of Association and has established a comprehensive compliance and internal

issued six Investor Relations Activity Record Forms to further enhance information Operation control management system. It continuously refines and enhances its compliance and

transparency and ensure that investors' rights and interests are fully protected. internal control management functions to ensure that business activities and business

engagements are compliant thereby safeguarding the Company's stable operations. In

At the same time TCL Smart Home places great importance on investor education and 2024 TCL Smart Home did not experience any violations of laws and regulations.awareness actively participating in activities such as the Investor Protection Month and

the National Investor Protection Publicity Day organized by the China Securities Regulatory To fulfill various compliance requirements Hefei Home Appliances has established

Commission and the Shenzhen Stock Exchange. These initiatives aim to help investors an Internal Control Committee and designated dedicated personnel to manage the

better understand cutting-edge laws regulations and industry practices thereby reducing Company's compliance and internal control work. The Company has formulated

information barriers. institutional documents such as the Internal Control Management Manual of TCL Home

Appliances (Hefei) Co. Ltd. and the Articles of Association of TCL Home Appliances (Hefei)

TCL Smart Home has always strictly adhered to the standardized process regulation Co. Ltd. regularly updating and reviewing core processes including organizational

of information disclosure continuously enhancing the management level and quality structure design and adjustment major decision-making as well as processes in multiple

of information disclosure to ensure transparency and fairness and fully protecting the business areas such as finance and procurement achieving a cycle from strategy

legitimate rights and interests of investors. Based on relevant laws and regulations such formulation to continuous monitoring and evaluation. At the same time Hefei Home

as the Company Law of the People's Republic of China Measures for the Administration of Appliances attaches great importance to departmental position checks and balances

Information Disclosure of Listed Companies and Self-Regulatory Guidelines for Companies seal management risk assessment and information management ensuring that the

Listed on Shenzhen Stock Exchange and in combination with the actual situation of Company's operations are compliant efficient and risk-controllable.the Company the Company has formulated the Management System for Information

Disclosure and the Management System for the Preparation and Disclosure of Regular Homa Appliances has established a management structure consisting of the Board of

Reports providing systematic norms and guidance for information disclosure work. Directors internal functional departments and business departments. The Board of

Through regular reports announcements annual reports and other means the Company Directors is responsible for the overall supervision and decision-making of the internal

discloses key content such as governance structure internal management and risk control control system the internal control functional departments are responsible for the

to shareholders investors and the public enhancing transparency strengthening investor internal control of finance and operation management and the business departments

trust ensuring compliant operations and optimizing the market environment. are responsible for implementing specific internal control measures within their

own departments to ensure that all business processes comply with internal control

For small and medium-sized investors TCL Smart Home has taken multiple measures requirements. Homa Appliances regularly updates its internal policies based on changes

to fully protect their rights and interests. TCL Smart Home continues to standardize the in international and domestic policies and ensures the effective implementation of the

procedures of the General Meeting of Shareholders improve the election mechanism Company's compliance policies and procedures through internal audit reviews.for directors and supervisors and enable small and medium-sized shareholders to fully

exercise their voting rights. Among them the second extraordinary General Meeting In combination with export business requirements Homa Appliances attaches great

of Shareholders in 2024 adopted a combination of on-site and online participation to importance to cross-border compliance requirements. Homa Appliances strictly adheres

facilitate shareholder participation. In addition through activities such as roadshows to domestic and international laws and regulations such as the Foreign Corrupt Practices

and investor collective reception days TCL Smart Home strengthens investor relations Act (FCPA) and the Customs Law of the People's Republic of China and has formulated the

management maintains communication with small and medium-sized investors and Export Compliance System based on internal needs and market conditions to ensure that

answers their questions. product technical standards meet local legal and regulatory requirements.TCL Smart Home has established a comprehensive internal compliance review mechanism.Hefei Home Appliances ensures compliance management through regular and special

reviews in an all-round and multi-dimensional manner. The Company conducts

comprehensive reviews annually to systematically audit the overall operational compliance

of the Company. For new business development implementation of major projects and

significant changes in laws and regulations special reviews are promptly initiated to

quickly respond to potential compliance risks and ensure the Company operates steadily

within the compliance framework. Homa Appliances has established a flexible review

frequency based on different review scopes and content including daily quarterly and

annual reviews to ensure efficient implementation and continuous improvement of

compliance management.Meanwhile TCL Smart Home actively promotes compliance training and cultural

construction striving to create a favorable corporate compliance culture environment

strengthen the compliance awareness of all employees and integrate compliance

requirements into all aspects of daily operations. In 2024 Hefei Home Appliances

conducted three sessions of compliance and internal control training.

83 842024 Guangdong TCL Smart Home Appliances Co. Ltd. Corporate Governance

Environmental Social and Governance Report

Risk Management Anti-corruption and Business ethics

Anti-corruption TCL Smart Home strictly adheres to the United Nations Convention against Corruption and

TCL Smart Home has established a risk management organizational structure with clear responsibilities and distinct levels adopting relevant national laws always maintaining a "zero tolerance" attitude towards corruption.a "three lines of defense" risk management framework to clarify the responsibilities of each department in risk identification By continuously improving the construction of internal anti-corruption systems smoothing reporting channels perfecting accountability mechanisms and conducting regular anti-

management and review ensuring effective response to potential risks in daily operations. corruption training and publicity the Company implements anti-corruption and business

ethics work. In 2024 TCL Smart Home was not involved in any corruption litigation cases.The three lines of defense for risk management in TCL Smart Home

In 2024 TCL Smart Home Hefei Home Appliances has a strict management system that clearly defines various types of corrupt behaviors and their handling methods. Employees involved in criminal acts

Three defense lines Department Main responsibility such as corruption and bribery who have been sentenced will be dealt with seriously in

accordance with the law to ensure a clean and honest internal environment. In terms of

2 whistleblower protection Hefei Home Appliances has set up a 24-hour complaint and Identify and assess risks during business operations;

reporting channel in the OA system and email. For reported leads the Company sets a First Defense Line Business departments The procurement department reduces the risk of raw Conducted anti-corruption 24-hour response time limit for reporting leads establishes a special investigation team

material supply by screening high-quality suppliers. training sessions to intervene in the investigation and evidence collection and publicizes the investigation

results on the intranet. Meanwhile the Company pays attention to whistleblower protection

Formulate and refine relevant systems policies and work strictly keeps whistleblower information confidential and prohibits any extortion

procedures; 620 participants threats and retaliation against whistleblowers.Second Defense Line Risk management and internal control department Oversee the risk management work of the first line of Total participants of anti-corruption Homa Appliances has established a comprehensive anti-corruption management system defense; training sessions forming an anti-corruption committee composed of senior management personnel to

Regularly carry out training work. manage the Company's anti-corruption strategies and supervise their implementation

from top to bottom effectively preventing identifying and responding to corrupt

Through regular audits we inspect the operational status of behaviors. Homa Appliances has formulated internal regulations such as the Accountability

various business areas identify potential risks and provide Management Regulations and the Integrity Management Code explicitly prohibiting any

improvement suggestions to management; form of corrupt behavior clarifying the "red lines" of operation and management strictly

Third Defense Line Internal audit department Responsible for independent auditing identifying and prohibiting abuse of power for personal gain fraud and other violations and requiring

rectifying issues and continuously following up on and all employees suppliers and partners to comply with laws regulations and company

improving progress. policies.In terms of the construction of the reporting mechanism Homa Appliances encourages

employees business partners and other individuals to provide tip-offs in their real names.It has established various feedback channels including letters and visits employee

01 02 suggestion boxes dedicated phone lines WeChat complaints and more to ensure

the smooth operation of the reporting channels. In the Accountability Management

Risk identification Risk assessmen Regulations Homa Appliances clarifies specific matters related to the protection of

reporters requiring strict confidentiality of reporter information and reporting materials

Through business risk analysis and internal Establish a fixed risk assessment and and prohibiting the disclosure investigation or identification of reporters so as to

and external audits identify potential market analysis utilizing data and information safeguard their rights and interests.operational financial legal and compliance systems to analyze the probability and

risks of the Company establish a risk tracking impact of risks. Evaluate the likelihood and TCL Smart Home is committed to fostering a culture of integrity within the Company. It

list and archive and track the development and impact of potential risks across various conducts anti-corruption training to educate employees and enhance their awareness. In

changes of risks business and functional departments and

TCL Smart Home 2024 TCL Smart Home conducted two anti-corruption training sessions with a total of 620 categorize and grade the risks participants.full-process risk

management system

Risk control and governance Risk monitoring and reporting Anti-unfair TCL Smart Home strictly adheres to the Anti-Monopoly Law of the People's Republic of China and the Anti-Unfair Competition Law of the People's Republic of China continuously

Based on the Company's risk exposure The audit department regularly organizes Competition reviews its business practices follows market development trends resolutely prevents allocate relevant resources to carry out risk reporting to the management and commercial bribery and unfair competition and safeguards fair market competition.risk control and governance work such as the Board of Directors repor t ing on

process construction and special sorting in the progress and results of various risk Hefei Home Appliances has established a comprehensive anti-monopoly and fair

order to reduce the overall risk level of the management efforts and conducts special competition risk management system encompassing risk monitoring internal compliance

Company reports on major risk events. reviews regular legal training and the formulation of relevant emergency response

plans. This system effectively mitigates various risks of monopoly and unfair competition

03 04 ensuring that business activities always comply with legal and regulatory requirements.

Homa Appliances strictly prohibits unfair competition behaviors such as false advertising

commercial bribery infringement of trade secrets and defamation of competitors. It

On this basis Hefei Home Appliances has introduced a risk matrix database and early warning system to regularly analyze key risk also forbids actions that violate the Anti-Monopoly Law such as entering into monopoly agreements abusing market dominance and implementing unfair pricing. To effectively

data update risk maps and utilize assessment models to monitor market financial and operational risks ensuring timely and effective promote fair market competition Homa Appliances has established a comprehensive

responses to high-risk areas of the enterprise. Based on the "three lines of defense" Homa Appliances has further formulated the Risk risk plan regularly conducts risk assessments on the Company's anti-monopoly efforts

Management Policy Risk Identification and Assessment System and Risk Monitoring and Reporting System clarifying the Company's and embeds anti-monopoly compliance review processes into internal management

risk management objectives risk identification processes and risk reporting requirements and strengthening the standardization and cooperation procedures such as pricing sales procurement and cooperation. Through

transparency of risk management. multiple measures and practical actions the Company practices anti-unfair competition.

85 862024 Guangdong TCL Smart Home Appliances Co. Ltd. Corporate Governance

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Information Security and Privacy Protection Business Stability

TCL Smart Home actively promotes the construction of information security culture. By optimizing the Company's information TCL Smart Home continuously optimizes its network infrastructure and establishes a multi-tiered network architecture to ensure the stable

management system and strengthening employee security awareness training it builds a protective barrier for enterprise information operation of its information systems. Hefei Home Appliances adopts a dual-line hot standby solution for internet leased lines to guarantee

security and adheres to the enterprise security bottom line. high availability of network connectivity. Combined with SD-WAN dual-line hot standby it optimizes the stability of remote office work and data

transmission. Meanwhile all major devices are equipped with a dual-machine hot standby mechanism to avoid the impact of single point

failures on business operations ensuring the stability and reliability of system operations. Homa Appliances relies on multi-operator line access

to enhance the stability of external network connectivity and reduce the risks posed by single network failures. The internal backbone network

adopts automatic switching between dual devices and dual lines to ensure network redundancy and rapid recovery capabilities. Furthermore

Information Security the Company has established a high-availability architecture combining databases and applications to ensure that core business systems

can operate smoothly even in the event of sudden failures or network fluctuations further enhancing business continuity and data security

TCL Smart Home has standardized its management system and enhanced its network security protection capabilities through a guarantees.comprehensive information security system. Hefei Home Appliances has formulated and implemented internal systems such as the

Information System Security Plan Information Security Management Policy and Encryption and Decryption System to standardize the

Company's information management system. Homa Appliances follows ISO/IEC 27001 and Classified Protection 2.0 standards and builds Information Security Training

an information security management system based on business risks. The Company has established a comprehensive data security

management framework with a management system led by the president guided by the IT management department and jointly Enhancing the security awareness of all employees is crucial for safeguarding enterprise data security and maintaining business stability. TCL

participated by various departments to ensure the effective implementation of data security work. Smart Home places great emphasis on information security and employee information security training actively conducting training sessions

and periodic activities to strengthen employees' awareness of data security. Hefei Home Appliances provides information security training for

all employees further enhancing their data security protection capabilities and ensuring the comprehensive implementation of information

Team Responsible for approving the overall information security strategy security management requirements. Homa Appliances actively promotes information security training and management optimization

leader President management norms and technical standards of the Company as well as making decisions on major information security incidents ensuring that security awareness is integrated into daily work and building a solid defense line for enterprise information security.Leadership

Group Deputy Responsible for overall information security planning the review

team Head of IT management of management standard and the coordination of information

leader department security construction and participating in decision-making regarding Case: Homa Appliances conducts information security training to strengthen employees' awareness of data securityinformation security incidents.Information

Security Relevant personnel of IT Responsible for the implementation of information security system

On July 18 2024 Homa Appliances conducted an

management department construction system formulation and technical support work. information security training session for all management Group trainees with a total of 160 participants. The training

The head of each department is the primary responsible person aimed to enhance employees' awareness of information

Execution Business for information security within their department responsible for security strengthen their data protection capabilities in

Group Group implementing and supervising information security standards within daily work and ensure the effective implementation of

Heads of departments/ the department and approving information security permissions. information security management requirements.sub-factories

Steering Responsible for checking the implementation of information security

Group standards regularly reporting relevant issues and implementing incentive measures while also preparing supervision reports.Data Security and Privacy Protection

Information Security System Assurance

TCL Smart Home has established a comprehensive network security protection system strengthening risk monitoring access control Data Security

and data protection to ensure the safe and stable operation of its business. Hefei Home Appliances has optimized its network

architecture reinforced the isolation strategy between the production network and the office network and deployed NSFOCUS probes Relying on advanced digital technology TCL Smart Home ensures efficient business operations and data security through computer

to continuously monitor the security situation of the internal network and accurately identify potential risks. By centrally managing encryption data collection transmission analysis and access control. Hefei Home Appliances employs an encryption system to ensure

server access through bastion hosts and strictly controlling permission allocation it ensures system access security. Homa Appliances the encryption of core business data preventing unauthorized access and leakage. Combined with access management it achieves

has established a multi-level security defense system deploying exit firewalls and data center firewalls to ensure network boundary secure data circulation and compliant usage. Homa Appliances strictly implements access management to ensure the reasonable use of

security. data and automatically revokes access upon employee departure to eliminate potential security risks. Additionally the Company adopts

methods such as PDA scanning and SCADA for data collection ensuring data transmission security through HTTPS encryption.Safety Inspection and Risk Assessment

Customer Privacy Protection

TCL Smart Home places great emphasis on security inspections and risk assessments. Homa Appliances regularly conducts information

security patrols risk assessments and compliance checks to ensure the effectiveness and compliance of the information security TCL Smart Home places great emphasis on customer privacy protection and has formulated strict data management policies. The

management system continuously enhancing the overall network security protection capabilities of the enterprise. At the same time Company has established protection mechanisms for various stages of acquiring monitoring and distributing customer information

the Company continuously conducts security vulnerability detection and remediation to reduce potential system security risks and relies to safeguard customer privacy. Hefei Home Appliances conducts desensitization checks on all user information in the data system

on RPA robots to automatically block abnormal IPs strengthening external threat defense capabilities and comprehensively ensuring strengthens user information management and protection and continuously optimizes the privacy control design of the Company's

the stability and security of the information system. products and application services to ensure autonomous and controllable privacy management.

87 882024 Guangdong TCL Smart Home Appliances Co. Ltd. Key Performance Table

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Outlook for the Future

Looking back to 2024 TCL Smart Home drove product upgrades through technological innovation achieving a

dual leap in brand value and user reputation through deep market insight and precise strategic execution. It set

an industry benchmark for the smart ecosystem layout and marked a new milestone in development. Looking

ahead TCL Smart Home will capitalize on this momentum leading the smart future with global strategies and

technological innovation promoting green production continuously deepening technology R&D providing

quality services and making TCL Smart Home's contribution to the UN Sustainable Development Goals (SDGs).Keeping pace with the times we aim to build green competitiveness across the entire value chain. We

will unswervingly promote green and low-carbon development integrating it into all aspects of our business

operations from product design production packaging warehousing and logistics. We will innovate green

technologies create energy-efficient durable and high-performance products and promote carbon reduction

throughout the entire product lifecycle. TCL Smart Home will also collaborate with upstream and downstream

partners to build a green ecosystem export low-carbon standards and technological solutions and empower

the industry's green upgrade.Creating a beacon to illuminate the way empowering diverse value co-creation with the warmth of

technology. TCL Smart Home has always adhered to the path of high-quality development. Facing consumers

we actively build a strict product quality management system across the entire chain prioritizing product

quality and providing customers with reliable products and services. Facing employees we will continue to play

an active role in the enterprise continuously improving the protection of employees' rights and interests and

talent cultivation system leading employees to create social value together. Facing society we will continue to

pay attention to vulnerable groups actively participate in public welfare undertakings and rely on TCL Smart

Home's cutting-edge technology to promote social development.Those who act often succeed building a transparent and efficient engine for sustainable development.We will deeply focus on the comprehensive optimization of ESG governance establish a normalized and multi-

dimensional communication bridge listen to the voices of all stakeholders and ensure that every decision and

every step of the Company resonates with the expectations of society. In terms of internal management we will

promote the construction of a compliant internal control system establish a comprehensive risk management

framework enhance our ability to identify and respond to potential risks and ensure the stable operation of the

Company.In 2025 Hefei Home Appliances will adhere to the core strategic path of "brand-leading value global efficiency

operation technology-driven and vitality-first" and firmly pursue a differentiated development route

achieving breakthroughs through product innovation. Homa Appliances will focus on management efficiency

improvement digital and intelligent upgrading and high-end transformation driving the enterprise to new

heights.As time goes by some are trapped in thorns while others pursue the sunrise. TCL Smart Home will remain true

to its original aspiration adhering to the mission of "Becoming a global leader in smart household appliances"

presenting a new image of Chinese home appliance manufacturing enterprises and working together with

global partners to practice sustainable development.

89 902024 Guangdong TCL Smart Home Appliances Co. Ltd. Key Performance Table

Environmental Social and Governance Report

Key Performance Table

Material Topic Indicators Unit 2024 Material Topic Indicators Unit 2024

Economic Total Revenue RMB 18360802831.59 Total Water Consumption m3 1627278.00Performance Water Resource

Management m3 / Million Output

Total Investment in Environmental Protection 10000RMB 362.60 Water Use Intensity Value 88.63

Number of penalties incurred by the Company Total Packaging Materials Ton 258813.36

for violations of environment-related laws and Number 0

Environmental regulations Paper Cartons Ton 57451.00

Management

System Fines incurred by the Company for violations of RMB 0 Circular Economy Plastic Foam (EPS) Ton 19805.17environment-related laws and regulations and Resource

Utilization Plastics Ton 0.00

Number of environment-related lawsuits resulting

from violations of environment-related regulations Number 0 Renewable Packaging Materials Ton 0.00

Total Greenhouse Gas Emissions Tons of carbon dioxide 195377.63 Manuals Ton 0.00equivalent

Total Wastewater Discharge Ton 301919.00

Scope 1 Tons of carbon dioxide 31904.75

Addressing Climate equivalent Sulfur Dioxide (SO2) Emissions Ton 0.07

Change

Scope 2 Tons of carbon dioxide Nitrogen Oxides (NOx) Emissions Ton 0.29equivalent 163472.88

Particulate Matter (PM) Emissions Ton 0.68

Operational Scope (S1+S2) Greenhouse Gas Emission Tons of carbon dioxide

Intensity equivalent 10.64 VOC Ton 17.18

Total Energy Consumption Tons of standard coal 39007.80 Total Hazardous Waste Generated Ton 165.91

Pollution and Waste

Total Direct Energy Consumption Tons of standard coal 1682.65 Management Total Non-hazardous Waste Generated Ton 15412.02

Waste Paper Cartons Ton 4270.57

Total Indirect Energy Consumption Tons of standard coal 36056.11

Waste Plastics Ton 1102.23

Energy Use Intensity tce / Million Output Value 2.06 Waste Plastic Foam (EPS) Ton 327.09

Natural Gas m3 719521.00 Other Non-hazardous Waste (Manuals) Ton 3794.84

Energy Other Non-hazardous Waste (Scrap Iron) Ton 5917.29

Management Diesel Liter 205316.60

E-waste Generated Ton 83.78

Gasoline Liter 25585.14

Number of employee training sessions on Sessions 15.00

Total Electricity Consumption kWh 311883366.70 Environmental environmental protection

Culture Number of employees' participation in environment

Purchased Electricity kWh 290612060.10 protection training Attendances 11039

Self-generated and consumed photovoltaic power kWh 21271306.60 Labor contract signing rate % 100%

Protection of Social insurance coverage rate % 100%

Purchased Green Electricity kWh 21000000.00 Employee Rights

and Interests Employee satisfaction rate % 100%

Number of trade union members Person 11335

91 922024 Guangdong TCL Smart Home Appliances Co. Ltd. Key Performance Table

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Material Topic Indicators Unit 2024 Material Topic Indicators Unit 2024

Number of employee turnovers (annual) Person 8986 Total sessions of employee training (annual) Sessions 3440

Number of new hires (annual) Person 10884 Investment in employee training (annual) 10000 RMB 280

Total employee training attendances Attendances 330231

Total number of employees Person 14923

Training attendances - Male Attendances 222902

By Gender

Training attendances - Female Attendances 107329

Number of male employees Person 10508

Training attendances - Senior management Attendances 3408

Number of female employees Person 4415 Training attendances - Middle management Attendances 12750

By Age Group Training attendances - Junior employees / Non-

management Attendances 314073

Number of employees aged under 30 Person 7796

Total employee training hours Hour 174321

Number of employees aged 30 to 50 Person 6389

Training hours - Male Hour 123166

Human Capital

Number of employees aged above 50 Person 738 Development Training hours - Female Hour 51155

By Educational Level Training hours - Senior management Hour 7068

Master's degree or above Person 153 Training hours - Middle management Hour 22830

Bachelor's degree Person 1656 Training hours - Junior employees / Non-management Hour 144423

Workforce Total employees receiving regular performance and Person 2995

Composition College degree or below Person 13114 career development reviews

By Employee Category (Rank) Male employees receiving reviews Person 2123

Number of senior management Person 29 Female employees receiving reviews Person 872

Senior management receiving reviews Person 19

Senior management - Male Person 27

Middle management receiving reviews Person 141

Senior management - Female Person 2

Junior employees / Non-management receiving Person 2835

Number of middle management Person 175 reviews

Middle management - Male Person 137 Expenses for safe production 10000 RMB 690.36

Number of major safety accidents Number 0

Middle management - Female Person 38

Number of safety inspections / risk assessments Number 398

Number of junior management Person 293

Number of work-related deaths Person 0

Junior management - Male Person 248

Number of work-related injuries Number 65

Junior management - Female Person 44

Occupational Total number of days lost due to work-related injuries Day 1569

Management - Aged under 30 Person 56 Health and Safety Number of employees' occupational diseases Number / Cases 0

Management - Aged 30 to 50 Person 398 Employee physical examination coverage rate % 2

Management - Aged above 50 Person 42 Number of occupational health and safety training

sessions conducted Sessions 864

Diversity and Number of employees from ethnic minorities Person 2385 Number of persons covered by occupational health

and safety training Attendances 69266Equal Opportunity Number of employees with disabilities Person 259

Total hours of occupational health and safety training Hour 383896

93 942024 Guangdong TCL Smart Home Appliances Co. Ltd. Key Performance Table

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Material Topic Indicators Unit 2024 Material Topic Indicators Unit 2024

Total number of suppliers Number 758 Number of significant fines and non-monetary

sanctions for non-compliance with laws and Number 0

Number of suppliers in Chinese mainland Number 753 Compliance and regulations

Risk Management

Supply Chain Number of suppliers in Hong Kong Macao and Number 2 Monetary value of significant fines for non-compliance Management Taiwan regions with laws and regulations RMB 0

Number of suppliers in other regions (overseas) Number 3 Number of confirmed incidents of corruption Incidents 0

Supplier integrity agreement signing rate % 100% Number of employees disciplined or dismissed due to

corruption Incidents 0

Annual number of patents granted Number 373

Number of contracts with business partners

Cumulative number of patents granted Number 2167 terminated or not renewed due to corruption Incidents 0

Number of innovative study programs/projects Number 60 Number of anti-corruption training sessions Sessions 2

R&D and Anti-corruption

Innovation Total number of R&D and technical employees Person 1074 and Business Anti-corruption training attendances Attendances 620

Ethics

R&D investment 10000 RMB 64266 Number of legal actions pending or completed

regarding anti-competitive behavior and violations of Legal Actions 0

Number of participation in industry standards anti-trust and monopoly legislation

development Number 18

Number of anti-monopoly and fair competition Sessions 1

Percentage of significant products and service training sessions

categories assessed for health and safety impacts for % 0

improvement Anti-monopoly and fair competition training attendances Attendances 10

Percentage of sold or shipped products recalled due % 0 Total number of Directors on the Board Member 7

Product Quality to safety and health reasons

and Safety Number of female Directors Member 3

Number of incidents of non-compliance concerning

the health and safety of products and services Incidents 0 Number of Executive Directors Member 0

Monetary value related to damages from major Number of Non-executive Directors (NEDs) Member 7

liability accidents concerning product/service safety 10000 RMB 0

and quality Corporate Number of Independent Non-executive Directors

Governance (INEDs) Member 3

Number of customer complaints Number 179

Number of Board of Directors meetings held Meetings 9

Customer Service Number of customer service training sessions Sessions 74

Number of Remuneration Committee meetings held Meetings 1

Customer service training attendances Attendances 2031

Number of Nomination Committee meetings held Meetings 4

Number of Party members Person 203 Number of shareholder meetings held Meetings 6

Party Building

Leadership Number of new Party members Person 21

Number of party building activities Activities 43

Total monetary donations for social welfare 10000 RMB 200

Number of public welfare activities Activities 10

Community

Development Number of employee volunteer activities Activities 34

Number of employee volunteers (attendances) Attendances 270

Volunteer hours contributed by employees Hour 303

95 962024 Guangdong TCL Smart Home Appliances Co. Ltd. Key Performance Table

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Index

Sustainability Report Index

Chapter Guidelines Disclosure Disclosure location Chapter Guidelines location

Chapter I General Provisions Articles 1 - 10 About the Report Energy and Resource Materiality Analysis / Article 44 Management Green

Industry Chain

Chapter II Disclosure of Sustainability Framework Articles 11 - 19 ESG Management

Supply Chain Risk

Management Article 45 Social Public WelfareSection 1

Addressing Climate Addressing climate change Articles 20 - 28 Response to Climate

Change Change

Section 3

Suppliers and Equal Treatment of Small and

Customers Medium-Sized Enterprises

Article 46 /

Environmental Chapter IV / Article 29 Management System Disclosure Product and Service Safety

and Quality Article 47 Social Public Welfareof Social

Information

Pollutant Emissions Article 30 Pollution and Waste Management Data Security and Customer Innovative Technologies

Privacy Protection Article 48 and Products R&D and

Section 2 Pollution and Waste Innovation Strength

Pollution Prevention Waste Disposal Article 31 Management

and Ecosystem Innovative Technologies

Protection Ecosystem and Biodiversity / Article 49 and Products R&D and Section 4

Conservation Article 32 / Innovation StrengthChapter III Employees

Disclosure of Environmental Employees Article 50 /Environmental

Information Environmental compliance Management System management Article 33 Pollution and Waste Corporate Governance Article 51 Responsible Supply Management Chain Customer Service

Section 1

Energy and Resource Sustainability Due Diligence Article 52 Responsible Supply / Article 34 Management Green Governance Chain

Industry Chain Mechanism

Chapter V Communication with

Section 3 Energy Utilization Article 35 Response to Climate Disclosure of Stakeholders

Article 53 Supplier Management

Resource Utilization Change Sustainability

and Circular Economy Governance Operation Compliance Article 54 Product Quality and

Water Resource Utilization Article 36 Environmental Information SafetyManagement System

Section 2 Anti-Commercial Bribery and Information Security and

Circular Economy Article 37 Pollution and Waste Business Conducts Anti-Corruption

Article 55 Privacy Protection

Management

Responsible Supply Anti-Unfair Competition Article 56

Protection of Employees'

Corporate Governance Article 51 Rights and InterestsChain Customer Service

Section 1

Sustainability Responsible Supply Chapter VI

Index Article 57 Index

Governance Due Diligence Article 52 Chain Supplementary Provisions and

Interpretation Assurance Statement Article 58 GHG Emissions Mechanism Assurance

Chapter IV Communication with Stakeholders Article 53 Supplier ManagementDisclosure

of Social

Information Operation Compliance Article 54 Product Quality and Safety

Section 2 Anti-Commercial Bribery and Information Security and

Business Conducts Anti-Corruption Article 55 Privacy Protection

Anti-Unfair Competition Article 56 Protection of Employees' Rights and Interests

97 982024 Guangdong TCL Smart Home Appliances Co. Ltd. Key Performance Table

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GRI Index

Disclosure Chapter Disclosure Chapter

GRI 1:Foundation2021 2-23 Policy commitments ESG Governance

GRI 1 introduction key concepts and standards About the Report 2-24 Embedding policy commitments ESG Governance

GRI 2:General disclosures 2021 2-25 Processes to remediate negative impacts Environmental Management System Employee Communication

2-1 Organizational details Company Profile

2-26 Mechanisms for seeking advice and raising concerns Anti-corruption Employee Communication

2-2 Entities included in the organization's sustainability reporting About the Report 2-27 Compliance with laws and regulations Compliant Operation

2-3 Reporting period frequency and contact point About the Report 2-28 Membership associations Leading Industry Development

2-4 Restatements of information About the Report 2-29 Approach to stakeholder engagement Stakeholder Communication

2-5 External assurance \ 2-30 Collective bargaining agreements Protection of Employees' Rights and Interests

2-6 Activities value chain and other business relationships Company Profile GRI 3:Material Topics

2-7 Employees Diversity and Equal Opportunities 3-1 Process to determine material topics Materiality Analysis

2-8 Workers who are not employees \ 3-2 List of material topics Materiality Analysis

2-9 Governance structure and composition Corporate Governance 3-3 Management of material topics Materiality Analysis

2-10 Nomination and selection of the highest governance body Corporate Governance GRI 201:Economic Performance

2-11 Chair of the highest governance body Corporate Governance 201-1 Direct economic value generated and distributed Protection of Employees' Rights and Interests Social Public Welfare

2-12 Role of the highest governance body in overseeing the management of impacts ESG Governance 201-2 Financial implications and other risks and opportunities due to climate change Response to Climate Change

2-13 Delegation of responsibility for managing impacts ESG Governance

201-3 Defined benefit plan obligations and other retirement plans Protection of Employees' Rights and Interests

2-14 Role of the highest governance body in sustainability reporting ESG Governance 201-4 Financial assistance received from government \

2-15 Conflicts of interest \

GRI 202:Market Presence

2-16 Communication of critical concerns \

202-1 Ratios of standard entry level wage by gender compared to local minimum wage \

2-17 Collective knowledge of the highest governance body \

Evaluation of the performance of the highest governance 202-2

Proportion of senior management hired from the local \

2-18 \ communitybody

GRI 203:Indirect Economic Impacts

2-19 Remuneration policies Corporate Governance Protection of Employees' Rights and Interests 203-1 Infrastructure investments and services supported Social Public Welfare

2-20 Process to determine remuneration Corporate Governance

203-2 Significant indirect economic impacts Green Industry Chain Responsible Supply Chain

2-21 Annual total compensation ratio \

GRI 204:Procurement Practices

2-22 Statement on sustainable development strategy Message from the Board of Directors

204-1 Proportion of spending on local suppliers Supply Chain Management

99 1002024 Guangdong TCL Smart Home Appliances Co. Ltd. Key Performance Table

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Disclosure Chapter Disclosure Chapter

GRI 205:Anti-corruption GRI 304 Biodiversity

205-1 Operations assessed for risks related to corruption Anti-corruption Operational sites owned leased managed in or adjacent

304-1 to protected areas and areas of high biodiversity value \

Communication and training about anti-corruption policies outside protected areas205-2 and procedures Anti-corruption

304-2 Significant impacts of activities products and services on \

205-3 Confirmed incidents of corruption and actions taken Anti-corruption biodiversity

304-3 Habitats protected or restored \

GRI 206: Anti-competitive Behavior

304-4 IUCN Red List species and national conservation list species

206-1 Legal actions for anti-competitive behavior anti-trust and Anti-unfair Competition with habitats in areas affected by operations

\

monopoly practices

GRI 305:Emissions

GRI 207:Tax

305-1 Direct (Scope 1) GHG emissions Indicators and Targets

207-1 Approach to tax \

305-2 Energy indirect (Scope 2) GHG emissions Indicators and Targets

207-2 Tax governance control and risk management \

207-3 Stakeholder engagement and management of concerns

305-3 Other indirect (Scope 3) GHG emissions \

related to tax \

305-4 GHG emissions intensity Indicators and Targets

207-4 Country-by-country reporting \

305-5 Reduction of GHG emissions \

GRI 301:Materials

305-6 Emissions of ozone-depleting substances (ODS) \

301-1 Materials used by weight or volume Pollution and Waste Management

305-7 Nitrogen oxides (NOx) sulfur oxides (SOx) and other

301-2 Recycled input materials used Green Industry Chain significantair emissions

Pollution and Waste Management

GRI 306:Waste 2020

301-3 Reclaimed products and their packaging materials Green Industry Chain

306-1 Waste generation and significant waste-related impacts Pollution and Waste Management

GRI 302:Energy

306-2 Management of significant waste-related impacts Pollution and Waste Management

302-1 Energy consumption within the organization Energy and Resource Management

306-3 Waste generated Pollution and Waste Management

302-2 Energy consumption outside of the organization \

306-4 Waste diverted from disposal Pollution and Waste Management

302-3 Energy intensity Energy and Resource Management

306-5 Waste directed to disposal Pollution and Waste Management

302-4 Reduction of energy consumption Energy and Resource Management

Reductions in energy requirements of products and GRI 308:Supplier Environmental Assessment302-5 services Green Industry Chain

308-1 New suppliers that were screened using environmental criteria Supplier ManagementGRI 303:Water and Effluents

Negative environmental impacts in the supply chain and

303-1 Interactions with water as a shared resource Energy and Resource Management 308-2 actions taken Supplier Management

303-2 Management of water discharge-related impacts \ GRI 401:Employment

303-3 Water withdrawal Energy and Resource Management 401-1 New employee hires and employee turnover Key Performance Indicators

303-4 Water discharge Pollution and Waste Management 401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees Care for Employees

303-5 Water consumption Energy and Resource Management

401-3 Parental leave Care for Employees

101 1022024 Guangdong TCL Smart Home Appliances Co. Ltd. Key Performance Table

Environmental Social and Governance Report

Disclosure Chapter Disclosure Chapter

GRI 402 Labor/Management Relations GRI 409:Forced or Compulsory Labor

402-1 Minimum notice periods regarding operational changes \ 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor Protection of Employees' Rights and Interests

GRI 403:Occupational Health and Safety

GRI 410:Security Practices

403-1 Occupational health and safety management system Safety Management System

410-1 Security personnel trained in human rights policies or procedures \

403-2 Hazard identification risk assessment and incident investigation Safe Production Safety Management System GRI 411:Rights of Indigenous Peoples

403-3 Occupational health services Occupational Health Management

411-1 Incidents of violations involving rights of indigenous peoples \

403-4 Worker participation consultation and communication on occupational health and safety Safety Management System GRI 413:Local Communities

403-5 Worker training on occupational health and safety Safety Management System

413-1 Operations with local community engagement impact assessments and development programs Social Public Welfare

403-6 Promotion of worker health Occupational Health Management

Operations with significant actual and potential negative

403-7 Prevention and mitigation of occupational health and

413-2\

safety impacts directly linked by business relationships Supplier Management

impacts on local communities

GRI 414:Supplier Social Assessment

403-8 Workers covered by an occupational health and safety management system Safety Management System 414-1 New suppliers that were screened using social criteria Supplier Management

403-9 Work-related injuries Key Performance Indicators

414-2 Negative social impacts in the supply chain and actions taken Supplier Management

403-10 Work-related ill health Occupational Health Management

GRI 415:Public Policy

GRI 404: Training and Education

415-1 Political contributions \

404-1 Average hours of training per year per employee Safety Management System

GRI 416:Customer Health and Safety

404-2 Programs for upgrading employee skills and transition assistance programs Safe Production Safety Management System

416-1 Assessment of the health and safety impacts of product and service categories Guarantee of Product Safety

404-3 Percentage of employees receiving regular performance and career development reviews Occupational Health Management

416-2 Incidents of non-compliance concerning the health and safety impacts of products and services Guarantee of Product Safety

GRI 405:Diversity and Equal Opportunity

GRI 417:Marketing and Labeling

405-1 Diversity of governance bodies and employees Corporate Governance Diversity and Equal Opportunities

417-1 Requirements for product and service information and labeling \

405-2 Ratio of basic salary and remuneration of women to men Diversity and Equal Opportunities

417-2 Incidents of non-compliance concerning product and \

GRI 406:Non-discrimination service information and labeling

406-1 Incidents of discrimination and 417-3

Incidents of non-compliance concerning marketing \

corrective actions taken Diversity and Equal Opportunities communications

GRI 407:Freedom of Association and Collective Bargaining GRI 418:Customer Privacy

407-1 Operations and suppliers in which the right to freedom of 418-1

Substantiated complaints concerning breaches of Protecting Customer Privacy Data Security and

association and collective bargaining may be at risk / customer privacy and losses of customer data Privacy Protection

GRI 408:Child Labor

408-1 Operations and suppliers at significant risk for incidents of child labor Protection of Employees' Rights and Interests

103104

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