Stock Code：002668 Abbr.： TCL Smart Home
2025
Guangdong TCL Smart Home Appliances Co.Ltd.Environmental Social and Governance Report01 Implement Green Lead Product Development 02 Responsibility
Response to Climate Change 15 R&D and Innovation 33
Environmental Compliance Management 21 Product Quality and Safety 40
CONTENTS Energy and Resource Management 23 Supply Chain Management 45
Pollution and Waste Management 27 Customer Service 49
About the Report 01
Message from the Board of Directors 03 Co-create a Collaborating Consolidate Governance
About TCL Smart Home 05 03 Community Ecosystem 04 Foundations
ESG Management 07 Employee Rights and Protection 55 Party Leadership 67
Employee Training and Development 58 Corporate Governance 68
Occupational Health and Safety 61 Compliant Operation and Risk Management 71
Outlook 79 Community Development 63 Business Ethics 74
Appendix 81 Data Security and Privacy Protection 75Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 About the Report
About the Report
Reporting Period This is an annual report covering the period from January 1 2025 to Standards of This Report is prepared in accordance with the Self-Regulatory Guidelines
December 31 2025 (hereinafter referred to as the "Reporting Period"). To No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability
improve the completeness of the report some of the data is beyond the Reference for Report (For Trial Implementation) (hereinafter referred to as the
above range. Report "Guidelines"). Additionally this report draws upon the following:
※ The Sustainability Reporting Standards (2021) published by the Global
The scope of the Report covers Guangdong TCL Smart Home Appliances
Scope of Sustainability Standards Board (GSSB) (hereinafter referred to as the Co. Ltd. and its principal subsidiaries. For ease of presentation and "GRI Standards")
Organization perusal " TCL Smart Home " "the Company" "we" and "us" in the Report
refer to Guangdong TCL Smart Home Co. Ltd. and its principal subsidiaries ※ The UN Sustainable Development Goals (SDGs)
below unless otherwise specified. ※ The Ten Principles of the UN Global Compact (UNGC)
※ International Sustainability Standards Board (ISSB) IFRS Sustainability
Disclosure Standard 1 - General Requirements for Disclosure of
Full Name of Principal Subsidiaries Short Name Sustainability-related Financial Information and IFRS Sustainability
Disclosure Standards 2 - Climate Related Disclosures
TCL Home Appliances (Hefei) Co. Ltd. Hefei Home Appliances
Homa Appliances Co. Ltd. Homa Appliances Report The Company guarantees that the content of this Report does not contain
any false records or misleading statements.Reliability
Assurance
Access to the You can download this report and obtain more information about the
Report Statement All data and examples used in this Report are derived from the Company's
Company's sustainability and ESG practices by visiting our official website:
Report
official documents statistical reports as well as summaries and statistics https://www.tclsmarthome.com/.on the performance of responsibilities.Revision of None
Previous
Reports
01 02Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Message from the Board of Directors
Message from the
Board of Directors
Against the backdrop of a new wave of technological revolution and industrial transformation artificial with a continued increase in authorized patents and achieved technological advancements in key areas
intelligence the Internet of Things and intelligent manufacturing are profoundly reshaping the global such as health preservation intelligent laundry solutions and energy efficiency. Meanwhile we have
home appliance industry landscape. TCL Smart Home has aligned with these trends taking technological integrated artificial intelligence technologies into product manufacturing and quality inspection processes
innovation as the core driving force and continuously advancing its global strategy with the ambition to continuously enhancing product quality and promoting the premiumization and intelligent upgrade of our
become a leading global smart home appliance company. products.In 2025 TCL Smart Home further deepened its ESG governance practices and promote the development Fostering A Robust Talent Development Ecosystem Demonstrating Corporate Responsibility. Upholding
of a sustainable framework characterized by green and low-carbon operations shared value creation a people-oriented philosophy we continue to improve employee rights and benefits protection systems
and refined governance. We firmly believe that the Company's long-term development relies not only establish dual career development pathways for management and technical professionals implement
on technological innovation to strengthen its global competitiveness but also on fulfilling corporate multi-dimensional talent development programs and provide comprehensive skills and safety training for
responsibilities in response to evolving societal expectations. all employees. These efforts aim to create a diverse inclusive and empowering workplace environment.At the same time the Company actively fulfills its social responsibilities by regularly organizing employee
Anchored In "Dual Carbon" Goals Committed to Building a Green Ecosystem Across the Entire Value Chain. volunteer activities and community engagement initiatives.We continue to enhance climate governance by establishing a Company-led and subsidiary-coordinated
climate risk management mechanism systematically advancing carbon emissions management and Optimizing Governance Structure Strengthening the Foundation for Sustainable Development. Our
energy conservation initiatives. On the production side we are accelerating the adoption of clean energy. ESG management has been integrated into the Company's decision-making framework supported by
Hefei Home Appliances is advancing photovoltaic and energy storage projects three of our factories continuously improved governmental systems and rules of procedure. In risk management we rely on the
have been consecutively recognized as "National Green Factories" and Homa Appliances' photovoltaic "Three Lines of Defense" model to enhance compliance data security and business ethics. For investors
project has achieved annual power generation exceeding 10.8 million kWh. On the operational side we we conducted diverse investor communication activities throughout the year to ensure timely and accurate
have strengthened pollution prevention and resource recycling with Hefei Home Appliances increasing information disclosure. Through transparent and standardized governance practices we have strengthened
its industrial water reuse rate to 85.3% promoting the coordinated development of operations and market trust and laid a solid foundation for our global expansion.environmental protection. We also collaborate closely with suppliers to advance green supply chain
development and support low-carbon transformation across the value chain. Looking ahead TCL Smart Home will continue to deepen its global strategy steadily expand into overseas
markets and further enhance product competitiveness brand influence and sustainability capabilities.Driving Intelligent Industrial Transformation Breakthrough in Core Technologies. The Company has further We will also actively respond to the "AI+" initiative positioning intelligent manufacturing as the primary
increased R&D investment and strengthened its innovation system. The Phase I laboratory of the Hefei Home application scenario to transform advanced technologies into real productivity. By maintaining ESG as the
Appliances Washing Machine R&D Center has been officially launched while Homa Appliances has built foundation of our development we will continue to advance global expansion and enhance long-term value
an integrated innovation system based on a national-level industrial design center and CNAS-accredited creation through green transformation technological innovation and sustainable growth.laboratories. During the year we participated in the formulation of multiple national and industry standards
03 04Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 About TCL Smart Home
About TCL Smart Home Milestones
* Homa Incorporation
Company Profile * Operation of the Company's first factory
2002
2003 * Launch of the first "Made by Homa" product
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 * Sales volume exceeded 1 million units for the first time
changed to TCL Home Appliances Group marking the beginning of a new phase of development. The Company is committed to 2005
becoming a world-leading smart home appliance enterprise firmly promoting the globalization strategy taking AI smart home * Operation of Homa's second factory
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 forward-looking scientific and * Ranked No. 1 Chinese refrigerator
technological experiences smart and healthy life for the users and to promote the further development of the industry through 2008–2009 exporter to Europe for the first time
science and technology. * Listed on the Shenzhen Stock Exchange
The Company has two core production and operation bodies Hefei Home Appliances and Homa Appliances with its main * Annual sales volume exceeded 5 million units
products covering refrigerators (including freezers) and washing machines.In 2025 the Company achieved its 17th consecutive for the first time 2012
year as China's No. 1 in refrigerator export volume and its 18th consecutive year as China's No. 1 in refrigerator exports to Europe. * Operation of Homa's third factory and
TCL refrigerators and washing machines have also been featured for nine consecutive years on CCTV's National Brand program accessories sub-factory
establishing themselves as benchmarks for high-quality development among Chinese home appliance brands.
2013 * Development and launch of the very first all-new air-cooled side-by-side refrigerator FF2-66
Strategic Vision * Biggest Chinese refrigerator exporter to Europe
for the 10th consecutive year 2018
Looking ahead TCL Smart Home is committed to becoming a globally leading smart home appliance enterprise. It will steadfastly * Homa Appliances' advent of the intelligent dual-
advance its globalization strategy with AI-powered smart appliances as the core development direction. Through continuous 2019 inverter technology and single-system with multi-
technological innovation the Company aims to achieve full interconnectivity coordinated operation and self-learning optimization temperature control technology
across its product ecosystem. By delivering forward-looking technological experiences and promoting smart healthy living the
Company strives to drive further advancement of the industry through innovation. * Annual sales exceeded 10 million units
2020
Hefei Home Appliances will steadfastly cultivate an organizational core defined by "technology-driven growth and vitality-first." * Homa owned 9 production sites
It will establish a strategic pathway centered on "brand-leading value global efficiency operation and a focused breakthrough in * The controlling shareholder of Homa Appliances was
the mid-to-high-end market." The Company will consistently pursue excellence in product quality and outstanding performance changed to TCL Home Appliances Group Co. Ltd and
experience while rapidly building and enhancing core capabilities. With a precise focus on key regions and segmented markets it the actual controller was changed to Mr. Li Dongsheng.aims to advance with agility into the industry's leading tier. * Homa held the groundbreaking ceremony of the smart
manufacturing base for high-end air-cooled refrigerator
Homa Appliances will unwaveringly uphold its distinctive strategic positioning as a "globally specialized ODM supplier of 2021 * Annual revenue exceeded RMB 10 billion
refrigerators." It will focus on the refrigerator and freezer business adhere to a globalized operating model and continue to deepen
its expertise in frost-free cooling technology. By fully advancing the in-depth application of intelligent manufacturing the Company * Homa Group realized net income of 424 million * Full termination of the Fintech business and disposal
is committed to delivering refrigerator and freezer products to global customers that combine top-tier quality with exceptional cost RMB from attributable sources reversing the loss of all related assets
performance driven by a philosophy of ultimate professionalism. year on year 2022
* Homa Appliances' global sales volume exceeded
100 million units * Homa Appliances: High-end Air-cooled
Refrigerator Intelligent Manufacturing Base
2023 * Acquired TCL Home Appliances (Hefei) Co.
Ltd. to further expand the refrigerator/washing
machine business
* The Company was officially renamed Guangdong
TCL Smart Home Appliances Co. Ltd. 2024
* TCL officially signed an agreement with the
International Olympic Committee (IOC) to become a
Worldwide Olympic Partner.* Homa Appliances remained the No. 1 in export volume
for the 17th consecutive year.
2025 * Homa Appliances intelligent manufacturing project
for high-end frost-free refrigerators with an annual
capacity of 2.8 million units was fully completed
and put into operation and the construction of its
manufacturing base in Thailand officially commenced.
05 06Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 ESG Management
ESG Management Stakeholder Engagement
TCL Smart Home based on industry characteristics and operational realities has identified six key stakeholder groups: government
and regulatory authorities shareholders and investors customers suppliers and partners employees as well se the community
and environment. The Company has established diversified and regular communication mechanisms to systematically collect and
ESG Governance respond to relevant opinions and feedback continuously improving ESG management and promoting sustainable value for all stakeholders.TCL Smart Home is comprehensively advancing the development of its ESG management system. During the reporting period the
Company enhanced the functions of the Board Strategy Committee by renaming it the "Strategy and Sustainability Committee"
under the Board of Directors. Correspondingly the Company formulated the Working Rules of the Board Strategy and Sustainability Key Stakeholders Focused Topics Communication Methods TCL Smart Home Responses
Committee formally incorporating ESG matters into the unified management of the Company's highest governance level. The
Committee is responsible for reviewing ESG-related strategic plans and providing guidance on the implementation recognizing and * Party leadership * Government official website * Uphold party leadership in company development
managing ESG-related risks as well as supervision of such initiatives across its subsidiaries. At the same time ESG rating targets have * Compliant operation and risk announcement release and actively fulfill social responsibilities
been included as one of the key performance indicators in the annual evaluation of senior executives and are directly linked to their management * Government visits and * Operate legally and with integrity responding to
annual performance bonuses. This mechanism is designed to strengthen management accountability and drive concrete actions in * Product quality and safety research national policies
the field of sustainable development. * Response to climate change * Information platform * Improve the product quality management systemGovernment and disclosure
On this basis Hefei Home Appliances as a core member has joined the TCL Industries ESG Committee and serves as an industry Regulatory * Business ethics * Promote energy conservation and emission * Periodic reports reduction and develop green products
representative in the Committee Office. It is specifically responsible for ESG strategic planning information disclosure and Authorities
implementation within the Hefei Home Appliances segment. Meanwhile Homa Appliances has established its own ESG Committee * Create employment opportunities
dedicated to advancing and overseeing the implementation of the Company's ESG-related policies and management requirements.* R&D and innovation * Shareholders' meetings * Optimize governance structure
* Corporate governance * On-site reception * Standardize company management and establish
ESG Awards and Honors * Compliant operation and risk * Telephone Shenzhen Stock investor communication channels
management Exchange "Interactive Easy" * Establish effective communication mechanisms
Shareholders and email etc.Investors * ESG governance * Improve risk management and performance
The 3rd Guoxin Cup * Investor performance briefing evaluation systems
"ESG Rising Star Golden Bull Award" Ju Dong Mi "Top 100 ESG Companies"
China Securities Journal Board Secretaries Institute * R&D and innovation * Online customer service * Strengthen technological innovation
* Product quality and safety * Email * Develop energy-efficient and innovative products
* Information security and * Official website * Enhance product quality and provide excellent
The 8th China Excellence IR privacy protection * Official WeChat account service
"Best ESG Rising Star Award" * Customer service * Strengthen customer privacy protection
Cross-Border Roadshow Platform for Customers * Conduct customer satisfaction surveys and need
Listed Companies assessments to continuously improve customer service
* Compliant operation and risk * Industry exchange meetings * Standardize procurement processes
management * Routine management on * Strengthen supplier evaluation and auditing
* Supply chain management suppliers * Promote the healthy development of the industry
Suppliers and * Business ethics * Supplier trainings
Partners
* Employee rights protection * Employee training courses * Safeguard employees' basic rights
* Employee training and * Employee congresses * Respect the diversity of the workplace
development * Morning briefings regular * Ensure employee occupational safety and health
* Occupational health and meetings * Build smooth career development pathways
Employees safety * Employee feedback mailbox * Improve employee benefits and care
* Community development * Public benefit activities * Support social welfare initiatives
* Response to climate change * Industry development activities * Carry out volunteer activities
* Environmental compliance * University and community * Strengthen management of wastewater waste
management activities gas and solid waste
Community and * Energy and resource * Develop green production
Environment management * Promote energy conservation and emission
* Pollution and waste reduction and develop green products
management
07 08Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 ESG Management
Double Materiality Assessment
To systematically identify fully understand and respond to stakeholders' concerns regarding the Company's sustainable
development practices TCL Smart Home conducts ESG topic identification and double materiality assessments. During
the assessment process we refer to the latest international disclosure standards including GRI 3: Material Topics and IFRS Environmental compliance Response to climate change
Sustainability Disclosure Standard 1 – General Requirements for Disclosure of Sustainability-related Financial Information (IFRS S1)
continuously improving our evaluation methods. In line with the Guidelines' criteria for assessing impact materiality and financial management Energy and resource management
materiality we carry out double materiality assessments on the high relevant topics to the Company. Occupational health and safety R&D and innovation
Employee rights and protection Product quality and safety
Steps Key Procedures Employee training and development Supply chain management
Corporate governance Compliant operation and risk management
Systematically review domestic and international sustainable development policies and
Analyze the Company's standards. By integrating the Company's strategic positioning core business and value chain ESG governance
activities and context of structure analyzing industry development trends and competitive landscape to clarify the
business Company's sustainable development context identify key topics and determine important
stakeholder groups.Based on a thorough understanding of the Company's operations and informed by
Establish a list of ESG topics stakeholder engagement outcomes potential ESG topics were comprehensively identified and preliminarily screened. These topics were further analyzed across different time horizons Community development Pollution and waste management
to assess their actual and potential impacts risks and opportunities. Customer service
Through internal interviews expert evaluations and other diversified approaches Information security and privacy
Assess and confirm topic systematically assess and rank each topic's impact materiality and financial materiality protection
materiality considering the Company's development strategy industry trends and policy context Business ethics
resulting in a double materiality matrix.Topic reporting After review and approval by the Board of Directors determine the high-priority topics for the year and provide focused disclosure and responses in the report.During the reporting period the Company identified a total of 17 ESG-related topics including 4 environmental topics 8 social
topics and 5 governance topics. In addition to the topics recommended by the Guidelines the list also includes other customized
topics identified by the Company based on policy trends industry context business model and capital market ratings. Financial materiality
For the identified topics the Company conducts multidimensional and comprehensive risk and opportunity assessments covering
impacts from its own operations to those across the value chain. This includes evaluating both the impact materiality and financial
materiality of each topic and the results are used to construct a double materiality matrix. Environmental Social Governance
Response to climate change R&D and innovation Corporate governance
Environmental compliance Product quality and safety Compliant operation and risk
Conduct a comprehensive assessment of the substantive impacts of ESG topics across management management
environmental economic and social dimensions covering both positive and negative Customer service
Impact materiality impacts as well as actual and potential effects. The assessment systematically evaluates Energy and resource Business ethics
each impact based on its likelihood and magnitude. management Supply chain management
Information security and
Pollution and waste Employee rights and protection privacy protection
management
Employee training and ESG governance
Assess the financial impacts of ESG topics on the Company's business model operations development
Financial materiality and financial performance across short-term medium-term and long-term time horizons
taking into account both the likelihood and magnitude of each impact. 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).
0910
lmpact materialityGuangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 ESG Management
UN SDGs Roadmap
SDGs Goals TCL Smart Home Initiatives SDGs Goals TCL Smart Home Initiatives
Decent work & economic
Mobilize corporate resources to support community growth Build an equitable safe and inclusive working
No poverty development and contribute to the implementation environment create stable employment Promote sustained inclusive
of the rural vitalization strategy; provide financial opportunities for the community and actively End poverty in all its forms and sustainable economic
assistance to employees in need to improve their promote the employment of persons with disabilities everywhere growth full and productive
well-beings. to ensure equal development opportunities for employment and decent work vulnerable groups.for all
Industry innovation &
Good health & wellbeing Promote a healthy lifestyle by regularly organizing infrastructure
Deepen innovation in R&D by establishing a professional
medical check-ups health education training and R&D framework research institutes and various
Ensure healthy lives and Build resilient infrastructure healthcare awareness activities helping employees testing units while continuously increasing investment
promote wellbeing for all promote inclusive and develop good work and health habits. in funding and talent to drive product and industry sustainable industrialization upgrading through efficient and green technologies.and foster innovation
Emphasize talent development by formulating Integrate green principles throughout the entire Quality Education Sustainable cities &
differentiated training programs aligned with the product lifecycle by adopting environmentally friendly communities
Ensure inclusive and equitable Company's development and encourage continuous materials clean processes and recyclable packaging
quality education and promote learning through diversified development initiatives Make cities and human to ensure full compliance with environmental
lifelong learning opportunities to comprehensively enhance employees' overall settlements inclusive safe standards. At the same time promote waste reduction
for all capabilities. resilient and sustainable and resource utilization through technological
innovation to minimize environmental impact.Firmly oppose workplace discrimination harassment Actively advances climate change response by
Gender Equality coercion threats and violence while fully considering Climate action identifying climate-related risks and opportunities
the needs of female employees to foster a fair and introducing green design building green factories
Achieve gender equality and inclusive workplace culture; ensure equal pay for equal Take urgent action to combat and promoting green production and green office
empower all women and girls work regardless of gender and provide employees climate change and its impacts practices continuously reducing carbon emissions
with an open fair and equitable promotion platform. from operations and enhancing climate resilience.Apply water risk assessment tools to identify risks Peace justice & strong
Clean water and sanitation and implement tiered management and control institutions
advance water-saving technological upgrades and Continuously promote compliant operations strictly
Ensure availability and compliant discharge management strengthen Promote peaceful and inclusive prohibit corruption and strive to build a transparent
sustainable management of community communication and information societies for sustainable and fair management system. Through diversified
water and sanitation for all disclosure to continuously improve water-use development provide access to channels for democratic communication ensure that
efficiency and watershed sustainability. justice for all and build effective employees' voices are fully expressed and heard.accountable and inclusive
institutions at all levels
Affordable & clean energy Continuously advance the transition to clean
energy by implementing distributed photovoltaic
Ensure access to affordable and energy storage projects and procuring green
reliable sustainable and electricity further enhancing the sustainability of
modern energy for all energy use.
11 12Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Implement Green Development
Implement Green
Development
TCL Smart Home takes action to protect the Earth deeply embedding
the green concept into its core corporate development strategy.Through innovative technology and efficient management practices
the Company actively reduces its carbon footprint and leads the
industry in green transformation. 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.ENVIRONMENT
13Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Implement Green Development
Response to Climate Change Transitional Risks
Duration Impacted
Risk Types Risk Description Scope of Impact
of Impact Financial Metrics
Governance TCL Smart Home advances its climate change management efforts through its ESG management system. The Board of Directors serves as the highest supervisory body overseeing the review of climate-related strategic Climate-related Disclosure: Regulatory bodies and international
plans and major initiatives. Under the guidance of the Strategy and Sustainability Committee its subsidiaries— standards are imposing more systematic requirements on listed
Hefei Home Appliances and Homa Appliances—have each established greenhouse gas task forces working companies regarding the identification and analysis of climate risks Short-
groups implemented carbon emissions management energy conservation and emission reduction initiatives as well as the transparency of carbon emissions data. Companies need term Self-operation Operating Coststo continuously improve their carbon accounting systems and internal Mid-term
tailored to the Company's operational contexts while monitoring and tracking the progress of these efforts to control processes while also increasing investments in compliance
ensure that climate management is aligned with the Company overall development strategy. management and information systems.Policy Risk
Strategy TCL Smart Home is committed to green development. In line with TCL Industries' climate strategy the Trade Regulation: Some economies are tightening regulatory Company is systematically advancing its green transformation through initiatives such as green manufacturing requirements related to product sustainability. For example the Digital Upstream Value Operating Costs
optimized energy management carbon emissions control product lifecycle management and the promotion Product Passport (DPP) system is being gradually rolled out to key Mid-term
of a green corporate culture. sectors such as electrical and electronic equipment. The implementation Long-
Chain
of these rules will raise the bar for companies in terms of compliance term Operating Self-operation Revenue
Based on Working Rules of the Board Strategy and Sustainability Committee in accordance with the disclosures and may increase compliance costs in the export process thereby having a certain impact on product pricing and profit margins.relevant requirements of the Guidelines and in alignment with International Financial Reporting Standard on
Sustainability Disclosure No. 2—Climate-related Disclosures (IFRS S2) issued by the International Sustainability
Standards Board (ISSB) TCL Smart Home regularly conducts climate risk identification and assessment across The demand for a green and low-carbon transition in the manufacturing
multiple dimensions—including the value chain stakeholders and production and business operations— sector is growing ever stronger with energy efficiency standards energy-saving regulations and the development of green manufacturing systems
taking into account the Company's business structure and regional operational characteristics. The Company undergoing continuous improvement. As household appliances are Mid-term
analyzes the potential scope of impact for different risk types to provide a basis for formulating subsequent Technical Risk major energy-consuming end-use devices energy efficiency standards Long- Self-operation Operating Costs
management measures. The Company has assessed the potential impact of relevant climate risks on its are likely to be raised further in the future prompting the Company to term
business and financial performance under various climate scenarios referencing scenario assumptions and increase its investment in technological research and development and
pathways established by authoritative international climate research institutions. product upgrades.As the concept of sustainability continues to gain traction stakeholders Self-operation
Identification of Climate-related Risks and Opportunities Reputational are paying increasing attention to companies' climate performance. Short- Operating
Risk Inadequate climate risk management may adversely affect Company term Downstream Revenue
Physical Risks reputation and brand image thereby impacting market sales. value chain
Duration of Impacted
Risk Types Risk Description Scope of Impact
Impact Financial Metrics
The frequency and intensity of extreme precipitation events
may increase thereby raising the risk of flooding and urban Upstream Value
waterlogging. This could result in damage to facilities and Chain Fixed Assets Climate-related OpportunitiesFlooding and
heavy rainfall equipment moisture damage to inventory disruptions to Short-term Self-operation Revenuelogistics and transportation and temporary production Downstream Operating Costs Impacted
stoppages leading to asset impairment delivery delays and Opportunity Duration Scope of value chain Opportunity Description Financial TCL Smart Home Initiatives
increased equipment maintenance costs. Types of Impact Impact Metrics
Increased uncertainty regarding typhoon intensity and extreme Upstream Value TCL Smart Home incorporates a full product
storm events in coastal regions may result in damage to building Chain Fixed Assets
As the trend toward
green consumption gains lifecycle approach during the product research
Hurricane structures power outages and delays in logistics and transportation Short-term Self-operation Revenue momentum market demand and development and design phases taking
disrupting the stability of production supply chains while also Downstream Operating Costs for energy-efficient and low- environmental factors into full consideration
increasing expenses related to facility repairs and reinforcement. value chain Market carbon home appliances Short- Self- Operating and aligning with energy efficiency standards
Opportunities is gradually increasing term operation Revenue and green product requirements in various
presenting potential market Mid-term countries. Through green innovation in key
Hot weather can lead to increased cooling demands and higher opportunities and market components and core technologies the
electricity consumption in production facilities and can also affect share for home appliance Company enhances product durability and
employee productivity and equipment reliability. In extreme heat manufacturers. energy efficiency to better meet the trends of
companies are required to provide employees with heat allowances green consumption.and heatstroke prevention measures. Self-operation
Heatwave Short-term Downstream Operating Costs
Under extreme high-temperature conditions the workload on value chain TCL Smart Home is progressively integrating
refrigeration products increases which may affect equipment low-carbon technologies into its product
stability and lead to a rise in demand for after-sales repair and Low-carbon technologies development and manufacturing processes
maintenance services; as a result the Company needs to allocate help improve product thereby enhancing product energy efficiency
additional resources for service and technical support. energy efficiency and drive Mid-term and driving product portfolio upgrades. At Technological green upgrades while also Self- the same time by optimizing production
Opportunities optimizing production Long- operation Operating Costs processes and energy management the
Sea-level rise may affect the safety of coastal assets and processes and enhancing
term Company is improving energy utilization
Sea-level Rise infrastructure potentially increasing the costs of facility retrofitting
Fixed Assets energy efficiency thereby efficiency and reducing unit production
and capital expenditures and placing some pressure on the value of Long-term Self-operation Operating Costs reducing production costs. costs thereby strengthening its market
fixed assets and operating costs. competitiveness against the backdrop of the
green transition.
1516
Acute Risks Chronic RisksGuangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Implement Green Development
Climate Scenario The Company has selected the "Reference Emissions Scenario" (SSP2-4.5) and the "High
Emissions Scenario" (SSP5-8.5) from the socio-economic pathways published by the United
Analysis Nations Intergovernmental Panel on Climate Change (IPCC) as the analytical basis for its
physical risk assessment. It has conducted a preliminary assessment of the severity of risks
by combining the likelihood of occurrence and the magnitude of impact across different
time horizons. Regarding transition risks the Company relies on the "Net-Zero Emissions
(NZE)" scenario published by the International Energy Agency (IEA) to assess the impact
on key segments of its value chain and to preliminarily evaluate the overall impact on the
Group's operational performance across different time horizons.Physical Risk Analysis
Time Dimensions 2030 2050
Risk Types
SSP2-4.5 SSP5-8.5 SSP2-4.5 SSP5-8.5
Time Range Explanation
Flooding and heavy rainfall
This phase coincides with the critical window period for the country to reach peak carbon
emissions by 2030 and the ongoing advancement of the green transition. Changes in
2025-2030 climate policy and technological advancements may gradually impact product portfolios Hurricane
and export business strategies requiring the Company to adapt to evolving trends in
green consumption and regulatory requirements.Heatwave
This phase aligns with the national carbon neutrality targets and global pathways for deep
2031-2050 emissions reductions; trends towards the optimization of the energy mix and industrial upgrading are likely to continue to intensify and the Company will face the need for Sea-level Rise
structural adjustments and enhancement of its production and operational management.Transitional Risks Analysis
Scenario Selection
20302050
Expected
Climate warming by Upstream Product Upstream Product
Climate Risks Scenario Description Risk Types Manufac- Product Manufac- Product
Scenarios the end of this supply Develop- supply Develop-
turing Sales turing Sales
century chain ment chain ment
This scenario assumes that global socio-economic development
follows historical trends climate policy is implemented with Strengthened
SSP2-4.5 moderate ambition and greenhouse gas emissions peak in the Approximately Disclosure Regulation medium term before gradually declining; it is used to simulate a 2.7° C on Climate Information
climate change pathway characterised by steady progress in social
economic and technological development.Physical risks Trade and Distribution
This scenario assumes a path of rapid economic growth driven by Restrictions
fossil fuels with a lack of effective climate mitigation measures
SSP5-8.5 leading to a continued rise in greenhouse gas emissions; it is used to Approximately
simulate climate change trajectories under extremely high emission 4.4℃ Green Transition
conditions. Technology
Investment
Net-Zero This scenario outlines a challenging transition pathway aimed at Transition risks Scenario (NZE) achieving net-zero carbon dioxide emissions by 2050 in line with the
Approximately Customer Trust
goal of limiting the long-term rise in global average temperature to 1.5° C. 1.5° C
Low Medium- Medium Medium- High
Low High
17 18Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Implement Green Development
Climate Resilience and Responses Impact Risk TCL Smart Home has integrated climate risk management into its overall enterprise risk management system. Centered on strategic planning and operational activities
and Opportunity the Company systematically identifies assesses and responds to both physical
Risk Management Relevant Measures
Management and transition risks. Through scenario analysis it evaluates potential financial
* Maintain constant vigilance regarding extreme weather warnings and issue alerts in good time; at the impacts formulates targeted action plans and establishes a normalized monitoring
same time draw up and implement contingency plans and conduct regular emergency drills to ensure mechanism to continuously enhance its climate governance capabilities and
the safety of personnel during extreme weather conditions. operational resilience.Acute Risks * Strengthen the protection of fixed assets optimize equipment performance and ensure the stable
operation of production facilities.Integrate climate risks into the overall risk management system in line with
* Enhance the efficiency and responsiveness of after-sales and customer service to lay the groundwork the Company's strategy and operating characteristics. Systematically identify
for managing periods of peak demand. Risk Identification physical risks and transition risks from the dimensions of business model value
chain and stakeholders.* Carry out regular risk identification and assessment and refine flood prevention drainage and
infrastructure maintenance measures as appropriate to enhance the safety and resilience of asset
Chronic Risks operations. Assess the potential financial impacts of climate risks and opportunities on
Risk Assessment
* Integrate climate resilience considerations into project planning and investment decision-making various business segments through qualitative quantitative and scenario
processes to optimize asset allocation and construction standards. analyses and identify key risk areas.* Build upon the existing ESG management system to continuously refine greenhouse gas emissions
accounting and disclosure processes gradually improve data collection and internal control standards Develop targeted climate action plans based on assessment results optimize
strengthen the development of relevant information systems and compliance management capabilities Risk Response management measures and enhance the Company's adaptability and resilience
and ensure that climate-related disclosures comply with regulatory requirements. under different climate scenarios.Policy Risks * Track developments in international carbon policies and trade regulations; strengthen capabilities in
supply chain carbon data management and product carbon footprint assessment; collaborate with
upstream supply chain partners to optimize raw material procurement structures; and simultaneously
improve product energy efficiency thereby enhancing the adaptability of export operations to low- Establish a regular monitoring mechanism. The Board of Directors regularly
carbon regulations. Ongoing Monitoring reviews climate risk management progress and implementation effectiveness
and continuously improves the climate governance system.* Persistently advance investments in product energy efficiency upgrades green technological innovation
Market Risks energy-saving R&D and product portfolio optimization whilst simultaneously driving energy-saving retrofits in production processes and enhancing energy management thereby strengthening our
capacity for technological iteration and cost control.Indicators and Targets TCL Smart Home actively responds to the net-zero strategy deployment of TCL Industrial
* Enhance mechanisms for identifying and managing climate risks focus on the development of green and continuously advances the management of greenhouse gas emissions. During the
Reputational Risks products improve transparency in information disclosure and communication with stakeholders and reporting period the Company conducted a systematic inventory of greenhouse gas
enhance the company's brand image and market recognition in the field of green development. emissions within its operational boundaries in accordance with ISO14064-1:2018 and the
Greenhouse Gas Protocol (GHG Protocol). Among its subsidiaries Hefei Home Appliances
completed the inventory and verification of Scope 3 emissions and obtained ISO 14064
Greenhouse Gas Inventories and Verification. During the reporting period the total
greenhouse gas emissions of TCL Smart Home amounted to 156400.60 tons of carbon
Opportunity dioxide equivalent with an emission intensity of 8.44 tons of carbon dioxide equivalent
Relevant Measures
Management per million revenue.* During the product research development and design phase we apply a full product lifecycle
Market approach taking full account of environmental factors and benchmarking against international energy
Opportunities efficiency standards and green product requirements. Through green innovation in key components Indicators Unit 2025and core technologies we enhance product durability and energy efficiency to better align with green
consumption trends. Total Greenhouse Gas Emissions tons of CO2e 156400.60
Direct Emissions (Scope 1) tons of CO2e 14424.98
* During the product development and manufacturing processes we will progressively implement low-
Technological carbon technologies to enhance product energy efficiency and drive product structure upgrades. At Indirect Emissions (Scope 2) tons of CO2e 141975.62
Opportunities the same time by optimizing production processes and energy management we will improve energy utilization efficiency and reduce unit production costs thereby strengthening the Company's market
competitiveness in the context of the green transition. Greenhouse Gas Emissions per Unit of
Revenue tons of CO2e / million revenue 8.44
19 20Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Implement Green Development
Environmental Compliance Emergency TCL Smart Home formulates and implements environmental emergency response plans annually as planned. Its subsidiaries Hefei Home Appliances and Homa Appliances strictly adhere to the requirements
Management Management of the Emergency Response Plan for Environmental Emergencies complete the filing process with the local environmental protection department and conduct emergency drills periodically according to the plan content
to ensure the effectiveness of the emergency response plan. At the same time the Company establishes
TCL Smart Home coordinates its subsidiaries to jointly establish an environmental management an emergency linkage mechanism with the local government to strengthen the prevention and emergency Governance system involving multi-department collaboration. Hefei Home Appliances has established an response capabilities of environmental risks ensuring timely and effective response to emergencies.Environmental Safety Committee and is jointly responsible with the Human Resources Development
Department for monitoring and evaluating key environmental management performance. Homa Based on this Hefei Home Appliances has formulated the Emergency Response and Preparedness Control
Appliances has established an environmental management framework led by the Safety Production Procedure clarifying the emergency event management process. They regularly organize environmental
Committee involving collaborative participation from various relevant departments forming an accident emergency drills and establish relevant environmental accident emergency systems. Monthly they
environmental management system with clear division of labor and implemented responsibilities to organize personnel to conduct environmental risk and hazard investigations and remediation aiming to
ensure effective implementation of environmental management measures. enhance employees' awareness of environmental safety risk prevention and control and effectively avoid
environmental risks. Furthermore during the reporting period Homa Appliances completed the revision of the
Emergency Response Plan for Environmental Emergencies and updated the process framework of emergency
Strategy TCL Smart Home adheres to the development philosophy of efficiency low carbon and sustainability
response plan to ensure the timeliness of the emergency response plan.fully integrating environmental protection into all aspects of its operations. It is committed to
building and continuously improving its environmental management system to facilitate harmonious
coexistence between production and the environment. Homa Appliances adopts the principle
of "making continuous improvement in an environmentally-friendly and law-abiding way" as its
environmental protection philosophy and strategy and integrates it into its daily operations to ensure Homa Appliances conducts emergency drills for chemical leakage
the implementation and continuous improvement of environmental protection goals.In June 2025 Homa Appliances conducted a chemical leakage drill with relevant emergency
response team members participating in the drill. By simulating a leakage scenario the drill tested
and improved the emergency response coordination and risk control abilities of the relevant
Stakeho- Affected
Time range of personnel strengthening the factory's ability to respond to sudden environmental incidents.Impact lders Main types of risks and opportunities financial
impact
affected indicators
By implementing systematic Risks: No major risks have been identified for this topic.environmental management and
compliant operations we aim Opportunities: By implementing environmental
to reduce the potential adverse Short-term medium- Self-
compliance management enterprises can reduce the
risks of penalties production halts or lawsuits due Operating impacts of production activities on
the environment and maintain the term
operation to non-compliance which is conducive to ensuring cost
quality of the regional ecological operational continuity.environment.Impact Risk and Opportunity Management
Environmental TCL Smart Home strictly adheres to the Environmental Protection Law of the People's Republic of
China and other relevant national and overseas operating regulations continuously improving the
Compliance construction of its environmental management system and enhancing its environmental management
level. The production departments of Hefei Home Appliances have taken the lead in formulating
internal management systems such as the Control Procedures for Identification and Assessment of
Environmental Factors and the Control Procedures for Operation of Environmental Management
System to standardize the identification assessment and operational control of environmental
factors. During the reporting period both Hefei Home Appliances and Homa Appliances subsidiaries
of TCL Smart Home have obtained ISO 14001 environmental management system certification. Emergency drills site for chemical leakage
Homa Appliances organizes annual internal audits of the environmental management system to
systematically identify environmental risks and hazards ensuring the safety and compliance of
production operations. Based on the audit results it sets improvement goals and optimization
measures to continuously enhance the level of clean production management.Green Culture TCL Smart Home actively promotes the construction of a green culture enhancing the environmental
awareness of all employees through systematic training and themed activities. Hefei Home Appliances
Development in accordance with its annual plan organized multiple environmental protection knowledge
Hefei Home Appliances and management trainings during the reporting period and launched a promotional activity
covering all employees on June 5 World Environment Day. Homa Appliances regularly conducts
environmental management standard training for employees covering key environmental areas such
Three of its factories have been awarded the title of "National Green Factory" as environmental emergency response plans and pollutant and waste management processes to
standardize environmental operations and strengthen the building of environmental awareness.
21 22Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Implement Green Development
Biodiversity TCL Smart Home's production and business activities are primarily concentrated in planned industrial parks and existing construction land areas without involving natural reserves ecological Impact Risk and Opportunity Management
Conservation red line areas or sensitive areas with significant biodiversity value. The overall business activities
have a relatively limited direct impact on ecosystems and biodiversity. During production operations Energy Management TCL Smart Home strictly adheres to relevant laws and regulations such as the Energy
and project construction the Company strictly complies with relevant national and local laws and Conservation Law of the People's Republic of China and continuously improves the group's
regulations on ecological and environmental protection legally performs environmental impact energy management system. During the reporting period Hefei Home Appliances obtained
assessments and related approval procedures and reduces the potential impact of production ISO 50001 energy management system certification.activities on the surrounding ecological environment by implementing pollution prevention resource Homa Appliances
conservation and environmental risk control measures. Hefei Home Appliances actively promotes the construction of photovoltaic energy storage projects to reduce the impact of power curtailment during peak periods and ensure stable
Has developed a photovoltaic power energy supply for production. Simultaneously it improves energy utilization efficiency by
generation project with a total applying measures such as waste heat recovery technology for refrigerator air compressors
installed capacity of approximately
Indicators and Targets continuously reducing energy consumption. Furthermore Hefei Home Appliances 9.88 gradually expands the scale of green electricity use synergizing efforts from both energy MW mix optimization and energy efficiency improvement to drive a continuous decline in
Targets Progress during the reporting period operational carbon emissions.Homa Appliances has formulated the Energy Management Measures and Management
* Optimize environmental management mechanisms * No major environmental accidents have occurred. Annual power generation is
approximately Measures for Energy Consumption of Key Machines clarifying energy management improve risk identification and prevention control * No environmental lawsuits resulting from violations of responsibilities and requirements for controlling energy consumption of key equipment
measures and continuously reduce the impact of environment-related regulations have occurred. 10.8 in order to achieve systematic control of energy consumption in production processes. production and operation on the environment. * No environmental penalties have been imposed. Million kWh To further strengthen the energy management responsibility mechanism Homa
* Regularly organize environmental protection training
to enhance employees' awareness of environmental * The total investment in environmental protection
Appliances has incorporated energy-saving goals into its performance evaluation system
protection. amounts to 3.62 million RMB.implementing monthly statistics and quarterly assessments. At the same time it promotes
Estimated annual cost savings of the application of energy-saving lighting temperature control equipment and clean
approximately production technologies integrates carbon emission factors into product design and builds
an energy-saving system covering operations and products. During the reporting period
9.5 Million RMB Homa Appliances constructed a photovoltaic power generation project with a total installed
capacity of approximately 9.88 MW generating an annual electricity output of approximately
Energy and Resource Management 10.8 million kWh which is expected to save costs of approximately 9.5 million RMB.TCL Smart Home
Governance TCL Smart Home has guided its subsidiaries Hefei Home Appliances and Homa Appliances to establish energy management systems respectively. Hefei Home Appliances has set up an energy Self-consumption photovoltaic power generation 23701684kWh
management team and an executive team with clear division of responsibilities and collaborative Purchased green electricity 32845709.50 kWh
advancement achieving comprehensive coverage of the energy management system in the
production base. Homa Appliances has established an Energy Management Committee led by the
committee director and deputy director with an energy office under its jurisdiction guiding and
supervising the implementation of energy management system and energy-saving technological
transformation work by the energy management team members of the Equipment Department Homa Appliances builds a digital and intelligent energy management system
department heads and equipment section chiefs of each branch factory.During the reporting period Homa Appliances introduced a smart energy management
monitoring platform and a large screen for real-time display of energy consumption
Strategy TCL Smart Home is committed to reducing dependence on fossil fuels adopting various energy replacing the traditional manual meter reading mode. This has enabled automated management measures actively promoting energy-saving technologies and equipment and collection information management and visual monitoring of energy consumption
improving energy conversion and utilization efficiency through optimizing energy mix and usage data. This measure has effectively improved the level of precision in energy management
patterns technological innovation and industrial upgrading thereby contributing to sustainable and provided data support for continuous energy efficiency analysis and optimization.development.Stakeho- Affected
Time range
Impact lders Main types of risks and opportunities financial
of impact
affected indicators
Risks: If the efficiency of energy and resource
Improve the efficiency Upstream utilization is not sufficiently improved enterprises
of energy and resource value may face the risks of rising production costs and
utilization effectively Short- chain increased uncertainty in resource supply.reduce dependence on and term Operating
consumption intensity of non- medium- Self- Opportunities: By improving energy efficiency cost
renewable resources and term operation optimizing resource allocation and gradually
reduce the pressure on the introducing clean energy enterprises can reduce
environment. unit costs and enhance the controllability of
resource utilization. Homa Appliances Energy Management System
23 24Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Implement Green Development
Water Resources TCL Smart Home attaches great importance to water resource protection strictly complies with laws and
regulations such as the Water Pollution Prevention and Control Law of the People's Republic of China
Management Hefei Home Appliances conducts water resource risk identification the Action Plan for Prevention and Control of Water Pollution and the Integrated Wastewater Discharge and quantitative management practices
Standard of the People's Republic of China adheres to the principle of prioritizing water conservation
and enhances water use efficiency. In production and operation the Company's water usage mainly In 2025 Hefei Home Appliances established a "Identify-Assess-Respond" management mechanism
includes laboratory testing production testing domestic use and fire protection and all water sources centered around water resource topics covering key aspects of production operations and supply chains.are municipal water supply; therefore there is no issue regarding the sourcing of suitable water. By combining regional water resource risk tools with operational data analysis it identifies potential
Hefei Home Appliances
To strengthen water resource management reduce the reliance of operational production on water impacts brought by water resource pressure extreme climate and regulatory changes and conducts cost and operational scenario assessments to provide a basis for management decisions.resources and protect regional aquatic ecosystems Hefei Home Appliances systematically screens and
Cumulative water saving manages topics related to water resources comprehensively promotes water resource risk assessment Based on the identification results Hefei Home Appliances implements hierarchical control over high-
1.2 and management and is committed to improving water resource utilization efficiency through water risk areas incorporates major water risks into the priority treatment list and coordinates the promotion Million Tons resource recycling aquatic ecosystem restoration in the factory area and R&D and innovation of water- of water conservation renovation water use efficiency improvement and supply chain collaborative
saving products. Homa Appliances has incorporated water consumption and water conservation management. Furthermore through community communication and information disclosure mechanisms
indicators into its existing energy consumption assessment system and has achieved refined control it incorporates feedback from stakeholders into water conservation targets and improvement plans continuously strengthens the resilience of water resource management and forms a dynamically
of water use efficiency through measures such as conducting water balance tests. During the reporting optimized closed-loop governance system.period Hefei Home Appliances saved approximately 1.2 million tons of water.A series of products from Hefei Home Appliances have obtained the "Grade 1 Water Efficiency"
Water resource management measures throughout the entire lifecycle certification for China Water Efficiency Label and meet international water conservation standards
of Hefei Home Appliances
* Conduct risk assessment based on the Aqueduct Water Risk Atlas of the World Resources Recycling TCL Smart Home actively complies with the Circular Economy Promotion Law of the People's Republic of China
Water resource risk Institute (WRI) and the Regulations for the Administration of the Recovery and Disposal of Waste Electric and Electronic Products
assessment and continuously promotes resource recycling in aspects such as product design material selection packaging * Conduct financial quantification of water resource-related impacts in accordance with the management and recycling systems centered around the concept of circular economy.European Sustainability Reporting Standards (ESRS)
Among them Hefei Home Appliances conducts impact and risk assessments of recycling utilization identifies action
priorities updates product design specifications and formulates circular economy project plans. In practice Hefei
* Product innovation design: Promote the R&D of technology for low-water or water-free Home Appliances incorporates the maintainability recyclability and upgradeability of products into the design
applications stage enhancing product maintainability and service life through modular design. At the same time the Company
* Intelligent management: Installing smart water meters and monitoring systems at prioritizes the use of sustainable materials such as recyclable metals recyclable plastics and straw in material
Water conservation production bases selection for products reducing dependence on primary resources.at the source * Rainwater recycling: Promote the use of rainwater collection for non-industrial purposes In the product usage and recycling process TCL Smart Home promotes closed-loop resource management leading
such as greening irrigation Hefei Home Appliances and Homa Appliances to establish a used appliance recycling mechanism. They launch a
trade-in service on their official website and major sales platforms encouraging consumers to participate in product
* Water conservation advocacy: Launch internal water conservation awareness campaigns for recycling and reuse. In terms of production operations and supply chain management Hefei Home Appliances
employees enhances the level of packaging recycling by reducing the use of cardboard boxes promoting recyclable packaging
utensils and specialized tooling vehicles. Meanwhile Homa Appliances has formulated the Supplier Packaging
* Production wastewater treatment: Implement a water reuse system at the production base Recycling Management Measures to standardize the unified recycling and management of supplier packaging and
to avoid disposable water usage tooling utensils further improving the recycling rate of packaging materials.Recycling and reuse * Product water circulation technology: Some high-end washing machines are equipped with water circulation modules enabling the filtration and reuse of water from a single wash Indicators and Targets
* Supply chain collaboration: Require suppliers to provide supporting water resource recycling
facilities and promote water conservation in the industrial chain Targets Progress during the reporting period
* Sewage management: The purification treatment of production wastewater shall be carried * The total comprehensive energy consumption is 40532.35 * Organize and carry out energy-saving technological
out to a standard higher than the local standard tons of standard coal equivalent (tce) and the energy transformation activities and continuously improve energy consumption intensity is2.19 tce/million revenue.* Ecological cooperation projects: Participate in public welfare wetland protection or river and resource efficiency through technological upgrading and * Clean energy consumption is 6949.67 tons of standard
Water ecosystem restoration restoration projects and improve regional water ecology through financial or technological enhanced refined management. coal equivalent (tce) accounting for 17% of total energy
investment * Continue to promote the optimization of the energy mix and consumption..* Plastic reduction: Reduce the use of plastic in product packaging prevent plastic particles increase the proportion of clean energy. Hefei Home Appliances * The comprehensive indicators of water electricity and gas for
from entering the ocean and protect aquatic ecosystems has set a target for green electricity which is expected to reach 43% in 2025 53% in 2026 and 60% in 2027. Homa Appliances have decreased by 10% compared to 2024
and the set target for 2025 is a decrease of 2.5%.* Regionalized water conservation strategy: Prioritize the deployment of water recycling * Total water withdrawal is 1840843 m3 and water
equipment in factories located in water-scarce areas * Improve the resource management system and promote withdrawal intensity is 99.34 m3 /million revenue.Production management * Water resource risk assessment: Conduct special audits on production bases in high-water a series of measures to optimize water efficiency in production. * Homa Appliances utilized 46000000 m
3 of recycled water
and investment in water risk areas and formulate emergency response plans (grey water).resource risk areas * Carry out public welfare projects: Build water reservoirs for local communities donate water-
saving equipment and enhance the resilience of surrounding water resources * Carry out recycling and reduce the one-time use and * Continuously promote the substitution of renewable materials strengthen the recycling and reuse of old
* Technology R&D focus: Launch ultra-water-saving products for arid markets consumption of resources. products and improve resource utilization.
25 26Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Implement Green Development
Pollution and Waste Management Wastewater Management TCL Smart Home strictly adheres to regulations such as the Water Pollution Prevention and Control Law of the People's Republic of China the Action Plan
for Prevention and Control of Water Pollution and the Integrated Wastewater
Governance TCL Smart Home leads its subsidiaries to continuously improve their management systems
Discharge Standard of the People's Republic of China. In the process of wastewater
Hefei Home Appliances
to implement pollutant control and reduce environmental risks. Hefei Home Appliances has management TCL Smart Home conducts standardized disposal monitoring and
established an environmental protection management team with the general manager serving Increased water reuse rate by reporting of major wastewater pollutant indicators such as Chemical Oxygen Demand
as the team leader and subordinate a deputy team leader and an executive team leader. Special (COD) Biochemical Oxygen Demand ammonia nitrogen petroleum compounds
personnel are assigned to manage each department to ensure pollution and waste emissions meet 85.3% total nitrogen and suspended solids.standards. Hefei Home Appliances has formulated the Wastewater Management System in
accordance with the Hefei Water Environment Protection Regulations implemented
Adhering to the concept of green production TCL Smart Home has incorporated pollutant Decreased total COD emissions from a three-tier management mechanism and established a digital monitoring platform. Strategy
and waste management into its corporate environmental governance system. Focusing on key wastewater by It regularly conducts environmental monitoring and information disclosure and
environmental factors such as exhaust gas wastewater solid waste and noise it has established continuously improves its environmental protection system and management
a systematic management mechanism and continuously optimized control measures to drive 18% YoY structure. Referring to the ISO 14001 environmental management system and
continuous improvement in environmental performance. international industry standards Hefei Home Appliances implements internal control
requirements for core sewage control indicators that are stricter than national
first-level standards and entrusts professional third parties to carry out advanced
treatment to ensure stable and compliant emissions. At the same time it implements
graded management in the factory area conducts assessments of the water
Stakeho- Affected
Time range environment carrying capacity of river basins enforces stricter emission controls in
Impact lders Main types of risks and opportunities financial
of impact
affected indicators key areas such as water sources and ecological protection zones and systematically
reduces the impact of sewage discharge on the environment.Strengthen the control of Risks: Enterprises may face risks such as
pollutants and standardized increased penalties rectification or disposal
management of waste to reduce costs. Additionally the lack of effective Compliance Wastewater treatment measures for Hefei Home Appliances
the impact of production and Short-term Self- management of hazardous waste emissions at
cost
business activities on the operation the source may lead to higher treatment costs. Operating
surrounding environment while cost * Implement green production process transformation to reduce pollutant generation
promoting resource recycling Opportunities: No major opportunities were * Promote environmentally friendly materials such as phosphorus-free cleaning agents and
and reuse. identified for this topic. Source control water-based paints
* Establish a material balance ledger to track the flow of pollutants
* Collection by zones and treatment based on quality: Classify and treat production
Impact Risk and Opportunity Management wastewater according to its pollution level
Process management * Online monitoring of key process points: Install real-time monitoring equipment in processes such as electroplating and spray painting
Air Pollution TCL Smart Home strictly adheres to the Environmental Protection Law of the People's Republic of China the * Automated dosing system: Intelligently adjusting treatment parameters based on water
Atmospheric Pollution Prevention and Control Law of the People's Republic of China the Cleaner Production quality monitoring data
Management Promotion Law of the People's Republic of China as well as national and local laws and regulations such as
the Emission Standard of Air Pollutants for Industrial Kiln and Furnace the Emission Standard of Pollutants for
Synthetic Resin Industry and the Emission Standard for Odor Pollutants. It has established a comprehensive * "Pre-treatment + Biochemical treatment + Advanced treatment" three-stage treatment
waste gas emission management mechanism which ensures appropriate treatment of major air pollutants process
through source prevention and control process control and end-of-pipe treatment while continuously improving End-of-pipe treatment * MBR membrane bioreactor advanced oxidation and other advanced technologies are
monitoring and reporting processes. applied in water reuse system
* Part of the treated water is recycled for plant greening flushing and other activities in the
TCL Smart Home implements strict control and management of pollutants such as nitrogen oxides sulfur dioxide factory area
particulate matter and volatile organic compounds (VOCs) in exhaust gas ensuring that all emission indicators
fully meet the environmental protection standards of the country and the region where it operates achieving
100% emission compliance of atmospheric pollutants. * Construct an emergency pool with a capacity equal to or greater than the 24-hour emission volume
Hefei Home Appliances strictly complies with local environmental regulations such as the Regulations of Anhui Emergency management * Regularly carry out emergency drills for leakage excessive emissions etc.Province on Prevention and Control of Air Pollution and the Regulations of Hefei on Prevention and Control * he redundant design of key equipment ensures the continuous operation of the processing
of Air Pollution and has developed more stringent internal emission standards based on these requirements. system
Corresponding internal systems have also been established to ensure that all production activities meet pollutant
emission standards. During the reporting period Hefei Home Appliances continued to advance air pollution
prevention and control by introducing low-pollution processes such as laser engraving to reduce the generation
of volatile pollutants. In addition it upgraded and renovated its exhaust gas treatment facilities to further reduce
pollutant emission concentrations. Through a combination of technological R&D process improvements and Homa Appliances has established a comprehensive wastewater management system based on the Wastewater and Waste Gas
raw material substitution Hefei Home Appliances has continuously enhanced its air and water pollution control Management Measures implementing systematic control over production and domestic wastewater and constructing a multi-
capabilities driving steady improvements in its emission performance. level management system encompassing indicator management online monitoring and emergency response. Homa Appliances
Homa Appliances strictly adheres to regulatory requirements such as the Emission Limits of Air Pollutants of regularly entrusts qualified third-party organizations to conduct wastewater monitoring and provides professional maintenance
Guangdong Province and has established internal systems like the Wastewater and Waste Gas Management for the online monitoring equipment at the wastewater treatment station to ensure the stable operation of the monitoring system.Measures to systematically standardize waste gas management and risk prevention. Additionally Homa Appliances In response to non-compliance issues identified during monitoring the Company strictly follows the Procedures for Corrective and
formulates annual waste gas monitoring plans commissions third-party inspections and generates reports. Based Preventive Measures to carry out rectification suspend discharges and recover abnormal wastewater for reprocessing ensuring
on these each factory clarifies emission points and impact areas supporting refined control of air pollutants. that the entire wastewater discharge process is controlled and compliant.
27 28Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Implement Green Development
Waste Management TCL Smart Home strictly adheres to laws and regulations such as the Law of the People's
Republic of China on the Prevention and Control of Environmental Pollution by Solid Wastes Indicators and Targets
the Standard for Pollution Control on Hazardous Waste Storage and the Technical Specification
for Setting Identification Signs of Hazardous Waste implementing classified management Targets Progress during the reporting period
of waste. The Company conducts standardized disposal of hazardous waste and classified
recycling of general waste actively promoting waste reduction and resource recycling measures
while ensuring legal compliance throughout the entire process. * Emissions of atmospheric pollutants wastewater waste
and noise all meet the standards.Guided by the principles of "source control low emissions low pollution and zero * Ensure compliant discharge of waste gas wastewater and
landfill" Hefei Home Appliances focuses on the full lifecycle management of emissions. By waste. * No significant impact on employees local community
strengthening multiple measures such as waste classification recycling and utilization residents and other groups has been observed due to
it continuously reduces the environmental impact of its operations. To strengthen the pollutant emissions.implementation of waste management responsibilities Hefei Home Appliances has formulated
the Environmental Aspect Identification and Evaluation Management Specification clarifying
the list of key hazardous wastes and the organizational structure for waste management.It has established a cross-departmental coordination mechanism where the supply chain * The total emission of atmospheric pollutants is 3
is responsible for waste storage and external disposal each factory implements compliant 3618182895 m .treatment and the Human Resources Development Department conducts performance * The total amount of wastewater discharged was 268578
monitoring to ensure efficient and orderly operation of waste management work. tons with an emission strength of 14.49 tons/million
* Continuously reduce the generation of pollutants from
Homa Appliances is committed to strengthening material management in the production revenue.the source and enhance the recycling and utilization
process reducing waste and minimizing waste generation and strictly enforcing rate of wastewater and waste. Among them Hefei Home * The total waste emissions are 14609.99 tons with an
compliance disposal regulations for all hazardous waste to ensure no emission risks to the Appliances is committed to achieving a waste recycling emission strength of 0.79 tons/million revenue.external environment. In accordance with relevant national laws and regulations Homa rate of 99.9% by 2030.Appliances has established internal systems such as the Waste Classification List and Waste * Part of the treated water from Hefei Home Appliances is
Management Measures and has established a management system covering the entire used for plant greening washing etc. with a reuse rate of
lifecycle of waste exercising strict control over all aspects from generation classification 30%.temporary storage transportation to final disposal.Types of main pollutants and handling methods
Waste type Major contents Handling methods
General recyclable wastes Waste metal waste plastic waste paper waste wood etc. Commission qualified units for disposal
General nonrecyclable wastes Domestic waste construction waste etc. Commission qualified units for disposal
Electronic wastes
Store in hazardous waste warehouse
Hazardous wastes Waste packaging drums surface and commission qualified hazardous
treatment sludge surface treatment waste disposal agencies for disposal
waste liquid waste resin etc.Noise Management TCL Smart Home strictly adheres to national and local regulations and standards such
as the Law of the People's Republic of China on Noise Pollution Prevention and Control
and the Emission Standard for Industrial Enterprises Noise at Boundary of Guangdong
Province. It also leads its subsidiaries in establishing a noise control system implementing
comprehensive measures centered around source vibration reduction transmission
isolation and regular monitoring and is committed to reducing the impact of operational
noise on the surrounding environment.Among them Hefei Home Appliances has formulated the Noise Management System to
systematically control noise pollution by installing sound-absorbing cotton in the crushing
room and regularly conducting environmental noise monitoring. Homa Appliances has
formulated the Noise Emission Management Measures and in accordance with these
measures has carried out sound insulation and anti-vibration treatment for some
workshops installed mufflers on equipment set up enclosed rooms and carried out
regular maintenance of production equipment. Additionally it conducts noise monitoring
in the working environment taking multiple measures to reduce noise emissions.
29 30Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Lead Product Responsibility
Lead Product
Responsibility
TCL Smart Home has always adhered to sustained technological
innovation and excellent product quality as the foundation of its
development striving to become a globally leading smart home
appliance enterprise. Meanwhile the Company continues to delve
deeply into product responsibility production efficiency and customer
service creating a high-quality smart living experience for consumers.QUALITY
31 32Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Lead Product Responsibility
R&D and Innovation Time Stakeho- Affected
Impact range of lders Main types of risks and opportunities financial
impact affected indicators
TCL Smart Home has established a R&D management system with clear division of labor and responsibilities Through technological Short- Upstream Risks: No major risks have been identified for this topic.Governance innovation and the term Operating focusing on product research and technological innovation. Its subsidiaries based on their own business value chaintransformation of research Opportunities: Enterprises continue to promote R&D income
positioning have formed research and development organizational structures that match their product lines. achievements intelligent and
green products are promoted medium-
Self- and innovation expand market space respond to
term operation emerging demands such as green products and intelligent
R&D
Hefei Home Appliances has established a washing machine R&D center and a refrigerator R&D center to to implement enhancing the manufacturing and introduce innovative technologies to investment
conduct R&D work centered around key product performance. Each R&D center is responsible for formulating user experience and resource Downstream optimize resource utilization and production operations
product technology development strategies building R&D system capabilities and promoting product efficiency of end products. long-term value chain achieving cost reduction and efficiency improvement.development and performance verification to ensure product performance and quality.Homa Appliances has established a Technology Research Institute which is directly managed by the Impact Risk and Opportunity Management
Company and headed by a Vice President of Technology responsible for the daily management of various
departments within the institute. Each business department is specifically implemented by its head.Innovation-Driven TCL Smart Home has established a comprehensive R&D funding guarantee mechanism. Additionally Homa Appliances has set up three R&D units: an enterprise R&D center a provincial industrial Through multiple channels such as annual budget special arrangements industry-academia-
design center and a laboratory accredited by CNAS focusing on functions such as air-cooled product research cooperation support and government project support it has carried out systematic
development industrial design and performance testing forming an organizational system that integrates layout focusing on key technological directions such as smart home appliances energy
R&D design and testing. During the reporting period Homa Appliances has obtained multiple core TCL Smart Home conservation and environmental protection and green manufacturing optimization. By
qualifications including national high-tech enterprise national industrial design center provincial industrial improving the R&D organizational structure and resource allocation mechanism it accelerates
design center provincial enterprise technology center provincial engineering technology research center R&D personnel the transformation and application of innovation achievements.and laboratory accredited by CNAS. 1296 Hefei Home Appliances has established incentive systems such as the New Product Project Assessment and Incentive Plan and the Implementation Terms of Reference for the Science
and Technology Innovation Award regularly organizes scientific and technological innovation
R&D personnel percentage activities and encourages employees to actively participate in technological innovation.Industrial entity Name of R&D center R&D direction 8.75% The refrigerator R&D center focuses on eight core directions: freshness preservation high energy efficiency aesthetic design thin built-in design ice water technology noise reduction
Refrigerator R&D Eight core directions: freshness preservation high energy efficiency aesthetic technology intelligence and exquisite design continuously carrying out technological
center design thin built-in design ice water technology noise reduction technology R&D investment breakthroughs and R&D innovation to continuously improve product quality and user
Hefei Home intelligence and exquisite design experience. The washing machine R&D center focuses on seven major R&D directions: platform
Appliances 680 Million RMB washing drying and care appearance and craftsmanship noise reduction health energy
Focusing on seven core directions: platform washing drying and care conservation and environmental protection and intelligence systematically improving the Washing machine
R&D center appearance and craftsmanship noise reduction health energy conservation
product technology system and consolidating the foundation of R&D innovation.and environmental protection as well as intelligence YoY Growth
Embedded product development air-cooled product development fully- 5.86%
Enterprise R&D center disassembled product development efficient energy-saving technology
The laboratory of washing machine R&D center (Phase I) of
research process efficiency improvement cost savings and consumption Hefei Home Appliances has been officially put into use
reduction In December 2025 the laboratory of washing machine R&D center (Phase I) of Hefei Home
Homa Appliances Provincial industrial Product appearance design panel material application interior design and Appliances was officially put into use. The laboratory will establish a closed-loop system centered around "technology R&D - experimental verification - achievement transformation"
design center screen printing design strengthen technological breakthroughs and product verification capabilities and continuously
enhance technological innovation capabilities.Laboratory accredited Product performance testing and product safety and stability testing The laboratory of washing machine R&D center (Phase I) is primarily equipped with core testing by CNAS equipment that can cover multiple national technical standards. It has also established a joint
research area for domestic stains and care with Donghua University focusing on conducting
specialized research around fabric and stain characteristics. Additionally plans are in place to
build an AI software laboratory and introduce automated testing systems to simulate tests such
as water level and temperature thereby enhancing R&D efficiency. In the future the laboratory
will concentrate on tackling core care technologies and washing algorithms deepening AI-
Adhering to the "leading technology" strategy TCL Smart Home continues to increase R&D investment enabled product iteration refining the full-process quality verification system and exploring Strategy and innovation layout in key technological fields such as smart home appliances energy conservation and cutting-edge directions such as intelligent connectivity and green low-carbon technologies strengthening core patent reserves and technological competitiveness.environmental protection and green manufacturing actively promoting the deep integration of technological
innovation and green sustainable development. The Company is customer-oriented continuously enhancing
product R&D and innovation capabilities attaching importance to the management and protection of intellectual
property rights and promoting the simultaneous improvement of product performance and quality.Meanwhile Hefei Home Appliances with its core R&D system of "demand-driven and pragmatic innovation"
continuously carries out technological innovation in directions such as freshness preservation high energy
efficiency aesthetic design thin built-in design water technology noise reduction technology intelligence
and exquisite design enhancing product functionality and user experience. Homa Appliances follows the R&D
philosophy of "innovative technology people-centric approach rationality and practicality" focusing on the
alignment between embedded products and user usage scenarios continuously improving the structure of the air-
cooled product line and meeting the needs of different types of customers.Visit to the laboratory of washing machine R&D center (Phase I)
33 34Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Lead Product Responsibility
In addition TCL Smart Home continuously deepens the user-oriented concept in product
Awards and honors of Hefei Home Appliances products design and technological innovation integrating accessibility and scenario-based design
while ensuring the basic performance of products. Hefei Home Appliances equips washing
Awarded by Honor machine products with child lock function to enhance the safety of children's use and adds braille markings on the control panel to provide operational convenience for visually
impaired users. Homa Appliances optimizes product functions and interactive experiences
2025 UET Good Product Award G120T7H-HDIS/G120P7-HDI around users' actual usage scenarios promoting products to better meet diversified and
China Household Electrical Appliances differentiated needs.Research Institute 2025 China Household Appliances Innovation Award "Product
Innovation of the Year" Award
2024-2025 Global Top Brands The built-in nursery refrigerator of Homa Appliances selected into the first batch of recommended
Consumer Technology Association (CTA) Clean Technology Innovation Gold Award catalogues for the New National Energy Efficiency Standards
TCL Super Drum Series Front Load Washing Machine
In December 2025 the 6th Electrical Appliance Industry Chain Ecological Cooperation
Organizing Committee of Appliance & Conference guided by the Department of Industry and Information Technology of
Electronics World Expo/China Household 2025AWE Award-Innovation Award R515T15-UQBS Guangdong Province and the Department of Commerce of Guangdong Province and
Electrical Appliances Association co-hosted by the China National Electric Apparatus Research Institute and the China
Electrical Equipment Industry Association was held. The conference officially released
Healthy Thin Built-in Aesthetics Leading Brand Award the Recommended Catalogue of First Batch of Products that Meet the New National
Energy Efficiency Standards for Electrical Appliance and Motor and the built-in mother
Organizing Committee of China and baby refrigerator of Homa Appliances was successfully selected becoming the
Refrigerator Industry Summit Forum Ice Kylin - Molecular Magnetic Freshness Original Product Award first representative product in the nursery sub-category to pass the new national
standard certification.Cold Jelly – Thin Built-in Ice-Making Pioneer Product Award
Focusing on the three core needs of families with newborn—precision storage
health protection and energy efficiency with low noise—Homa Appliances has
National Household Appliances Industry
Information Centre Innovative Pioneer Award for Thin Built-in Ice Making R456T9-DQB launched a built-in nursery refrigerator through large-scale user research forming triple advantages in energy efficiency functionality and design. The product meets
the new national first-level energy efficiency standard with a comprehensive
AI Super Drum Washing and Drying Set T7R
China Household Clothes Washing Drying power consumption of only 0.89 kWh per 24 hours. Equipped with an intelligent
and Care Industry Summit Forum three-frequency conversion system it achieves low power consumption and stable
Outstanding channel performance product G100T7R-HDIS temperature control. It is equipped with an 82L independent temperature-adjustable
compartment for mother and baby supporting wide temperature adjustment from
-20 ℃ to 5 ℃ . Made of bottle-grade materials and utilizing sterilization technology it
Organizing Committee of Red-top Award The 17th Red-top Award RED-TOP Nomination Award for T7RUltra-T ensures the healthy storage of mother and baby ingredients. With a heat dissipation The built-in nursery refrigerator of Homa Appliances selected into
and ultra-thin body design it achieves zero-distance integration and convenient door the first batch of recommended
opening balancing space utilization and user experience. catalogues for the New National
Energy Efficiency Standards
Homa Appliances boasts a comprehensive R&D management system. During the reporting
period the Company has formulated procedural documents such as the Design and
Development Control Procedure and the Product Order Control Procedure. Additionally
it has compiled a series of management documents including the Management Measures
of New Product Trial Production Technical Document Management Measures Technical Hefei Home Appliances' original molecular magnetic freshness technology wins the special award of the
Center Performance Evaluation System and Management Measures of R&D Investment Science and Technology Award of the China General Chamber of Commerce
Accounting. These documents integrate the management of the Company's technological
innovation activities into its daily business operations ensuring the effective operation of
the Company's innovation mechanism. In July 2025 the results of the 2024 China General Chamber of Commerce Science and Technology Award were announced. The project "Key Technology of Food
Meanwhile in order to stimulate the innovation vitality of technical personnel Homa Freezing and Refrigeration Preservation Based on Magnetic Field Biological Effects
Appliances has formulated incentive measures such as the Product Development Incentive and Household Appliance Industrialization" jointly completed by TCL Home
Measures and the Technical Pre-research Acceptance and Incentive Management Appliances (Hefei) Co. Ltd. and Jiangnan University won the Special Award for
Measures. By setting up technological innovation awards quarterly awards for cost Technological Invention. This award is approved and established by the Ministry
savings and energy consumption reduction and recognition of technical pacesetters the of Science and Technology and the National Office for Science and Technology
Company fully mobilizes the innovation enthusiasm of the technical team. Additionally Awards. Only six projects nationwide were selected for this year's Special Award for
Homa Appliances has conducted in-depth exploration in the fields of product energy-saving Technological Invention.control technology application of new materials and processes and product cost savings The award-winning project is centered around TCL Refrigerator's original "Molecular
and consumption reduction achieving efficient resource utilization while comprehensively Magnetic Freshness" technology which utilizes the biological effects of magnetic
enhancing market competitiveness. fields on food cells to reduce metabolic loss delay the spoilage process and achieve
precise preservation under refrigeration and freezing conditions. The relevant
technology has been applied in product development and combined with scenario-
based design has been promoted for industrial implementation driving the
Awards and honors of Homa Appliances products upgrading of preservation technology from traditional temperature control mode to
multi-dimensional regulation.Awarded by Honor
Zhongshan Bureau of Industry and Bronze Award in the Comprehensive Competition of the 2025 Hefei Home Appliances wins the special award of the Science and
Information Technology Zhongshan Industrial Design Competition (Product Design Group) Technology Award of the China
General Chamber of Commerce
35 36Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Lead Product Responsibility
Intellectual TCL Smart Home attaches great importance to intellectual property protection strictly complies Industry Standard Achievements of TCL Smart Homewith laws and regulations such as the Patent Law of the People's Republic of China and the
Property Implementation Regulations of the Patent Law of the People's Republic of China establishes
Protection a professional patent application team and a full-process management mechanism regularly Industrial entity Standard type Standard title
conducts training related to intellectual property and promotes the institutionalization and
standardization of intellectual property protection work. During the reporting period TCL Group standard Slowly melting ice
Smart Home did not experience any major intellectual property infringement incidents.Hefei Home Appliances has formulated the Measures for the Administration of Patents Group standard Clean ice
and Software Copyrights which clarifies requirements for patent application ownership Hefei Home
management confidentiality management and violation handling. It has also appointed Appliances Group standard Preservation in tea area
full-time intellectual property management personnel to cover various aspects such as R&D
production and manufacturing and market sales. Hefei Home Appliances has established a full-
lifecycle patent management system that encompasses patent search and layout application Group standard Preservation of Ganoderma lucidum in dry area
confirmation classification maintenance and operational rights protection. Through
systematic training it continuously enhances employees' awareness of intellectual property Group standard TCPQS E00079.1-2025: Evaluation of Hygienic and Healthy Freshness for
protection and management capabilities. Before R&D patent search and risk assessment are Refrigerators - Part 1: Technical Requirements for Meat Freshness Evaluation
conducted. During the R&D process confidentiality agreements technical document access
management and node review mechanisms are implemented. Additionally cooperation TCPQS E00079.2-2025 Evaluation of Hygienic and Healthy Freshness for
with professional agencies is established to improve the quality of patent applications and Homa Appliances Group standard Refrigerators - Part 2: Evaluation of Antimicrobial Bactericidal and Odor
authorization efficiency. Meanwhile Hefei Home Appliances has established an intellectual Removal Effects
property risk prevention and control mechanism to avoid similar designs and obtain patent
licenses when necessary thereby minimizing the risk of infringement.National standard GB 12021.2-2025: The Maximum Allowable Values of the Energy Consumption
Homa Appliances has established a full-process intellectual property management system and Energy Efficiency Grade for Household Refrigerators
covering R&D process and production. It has formulated and continuously improved
institutional documents such as the Patent Management Measures and the Document
and Record Control Procedure clarifying the norms for patent application review
confidentiality and archive management. During the reporting period it further refined the Hefei Home Appliances has established a collaborative innovation system of "industry-
patent management requirements. At the same time it has appointed full-time intellectual academia-research" and has carried out multiple key technological collaborations
property management personnel to coordinate patent application maintenance and risk with Jiangnan University University of Science and Technology of China Xi'an Jiaotong
control work. It has also established a long-term cooperation mechanism with professional University and TCL Hong Kong Research Institute including scanning electric pulse thawing
agencies to improve the quality of patent applications and dispute resolution capabilities. technology energy-saving application of energy storage materials stepless frequency
conversion technology and array-based odor sensing research. During the reporting
Since the initiation of its own brand building Homa Appliances has continuously improved period Hefei Home Appliances conducted two technological ecosystem collaborations with
its patent operation mechanism and incentive mechanism strengthened the awareness of Donghua University focusing on research to reduce detergent usage and minimize energy
intellectual property among all employees enhanced the patent literacy of management consumption through precise drying care.and R&D personnel through regular training strengthened the whole-process management
of patent application maintenance and utilization actively participated in the formulation In terms of industry research Hefei Home Appliances has completed two technical
of industry standards and intellectual property cooperation and promoted the effective appraisals namely "Key Freshness Technology for Multi-effect Regulation of Refrigerator
transformation of technological achievements and collaborative industrial development. Cold Storage Micro-environment" and "Industrialization and Application of New Generation
Bionic Wing Condenser Technology". It has participated in the formulation of four group
standards and won one national award. Furthermore focusing on improving the energy
efficiency of washing machines Hefei Home Appliances has released the White Paper on the
Development of AI Smart Washing and Care Technology for Washing Machines exploring
technologies centered around AI empowerment and green low-carbon directions.Homa Appliances Conducts Intellectual Property Training
In April 2025 in order to strengthen the awareness of
intellectual property protection among employees across
various departments Homa Appliances organized a Hefei Home Appliances and Hongbaoli Joint Innovation Laboratory Officially Unveiled
specialized training session on intellectual property. The
training focused on intellectual property protection patent
application processes and R&D compliance management In December 2025 Hefei Home Appliances and Hongbaoli
and was targeted at employees from the R&D and related Group a leading enterprise in polyurethane new materials held the unveiling ceremony of their joint innovation
departments with a total of 42 participants. laboratory in Nanjing. This strategic cooperation centers
on the core mission of "conquering ultimate insulation
technology to drive energy efficiency leaps in the home
appliance industry". It focuses on breakthroughs in the
Homa Appliances Intellectual Property Training Venue insulation performance of polyurethane foam materials
precisely tackling the dual challenges of industry energy
efficiency upgrades and environmental transformation.Industry Driven by technological innovation TCL Smart Home actively participates in the formulation Through an industrial chain collaboration model of
of industry standards promoting industry standardization and high-quality development. "technology co-creation + talent co-cultivation + results
Development The Company has been involved in multiple industry standard setting and technical exchange sharing" it establishes an industry benchmark for cross-
activities facilitating the process of industrial technology upgrading and standardization. sector cooperation to break through industrial bottlenecks.Meanwhile TCL Smart Home continues to build an open cooperation platform deepening Unveiling ceremony of Joint Innovation Laboratory
collaborative cooperation with research institutions and industry chain partners and
promoting industry experience sharing and technological collaborative innovation.
37 38Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Lead Product Responsibility
Homa Appliances actively participates in domestic and international industry exchanges
and industry-academia-research cooperation sharing practical experience in technological Product Quality and Safety
innovation and quality management and promoting collaborative development and
capability enhancement within the industry. During the reporting period the Company
participated in important industry events such as the China Import and Export Fair in TCL Smart Home coordinates the direction of product quality and safety management at the group level and
spring and autumn the China International Furniture Fair (Shanghai) the China Household Governance its subsidiaries establish management structures based on their own operational realities clarifying division
Electrical Appliances Association Technical Conference and the IFA in Germany and also of responsibilities and implementing quality control throughout the entire product lifecycle.engaged in industry-academia-research cooperation with universities such as Harbin Institute
of Technology Shenzhen to deepen technological exchanges and collaborative innovation. Hefei Home Appliances has established a Quality Management Center which comprises eight professional
departments including Deputy Director System Operation Testing and Certification etc. The Quality
Management Center is responsible for the construction and optimization of the Company's quality
management system handling quality issues improving supplier management mechanisms customer
Homa Appliances collaborates with Harbin Institute of Technology Shenzhen on industry- feedback and technology introduction. It also updates and adjusts the business scope in a timely manner
academia-research cooperation according to the Company's operation and business situation.In November 2025 Homa Appliances and Harbin Institute of Homa Appliances has established a Quality Management Committee to comprehensively coordinate and
Technology Shenzhen conducted a collaborative exchange on supervise the Company's quality management work. The committee is led by the Vice President in charge of
industry-academia-research cooperation in the conference room the quality system who is responsible for formulating and evaluating annual quality objectives conducting
of the Homa Technology Research Institute. Both parties engaged in-depth analysis of quality issues planning improvement plans and continuously enhancing the operational
in technical discussions centered around the theme of "Analysis of efficiency of the Company's quality management system.Noise in Air-cooled Refrigerators and Research on Noise Reduction
Technology" with a focus on exploring the noise mechanism of air-
cooled refrigerators noise analysis of prototypes identification of Strategy TCL Smart Home adheres to the business philosophy of quality first embedding the "zero defect"
transmission paths and structural optimization simulation. requirement into product R&D and manufacturing processes and taking product quality management
The meeting focused on technical reporting and exchange as its core business principle. It promotes quality control across the entire process including R&D design
regarding project research plans testing methods and phased production and manufacturing and after-sales service.results. Both parties leveraged the application needs of enterprise
products and the research strengths of universities to promote
Affected
the implementation of noise control technology in product Industry-academia-research collaboration Time range of Stakeho-lders Impact Main types of risks and opportunities financial
development providing technical support for enhancing the exchange-project report impact affected indicators
acoustic performance of air-cooled refrigerators.Risks: In the event of product issues the
Continuously improve the Upstream enterprise may face risks such as product recalls
level of product quality and Short-term value chain compensation and regulatory penalties which
Indicators and Targets safety reduce potential risks will have adverse impacts on operating costs
to consumer safety caused medium- Self- sales stability and brand reputation. Operating
by quality defects and term operation revenueOpportunities: Continuously strengthening
Targets Progress during the reporting period maintain a healthy market long-term Downstream the product quality and safety management
environment. value chain system can help reduce the probability of quality
* Steadily increase the intensity of R&D investment to drive * There are 1296 R&D personnel accounting for 8.75% accidents and minimize related losses.technological innovation and product upgrades. * R&D investment of 680 million RMB
* 363 new authorized patents Impact Risk and Opportunity Management
* Improve the intellectual property system and strengthen
patent layout. * Accumulated 2725 authorized patents
* Accumulated 16 authorized overseas patents Quality TCL Smart Home has always prioritized product quality and safe production. The Company strictly
adheres to the Product Quality Law of the People's Republic of China and other relevant laws and
Management
* Promote industry exchanges and drive deep integration regulations as well as domestic and international quality management standards. It continuously * Participated in the formulation of 8 industry standards
between upstream and downstream segments of the System optimizes its quality management system and improves its product quality control and enhancement
industry chain. * Participated in industry exchange activities 6 times processes. During the reporting period all subsidiaries of TCL Smart Home have obtained ISO 9001 quality management system certification.Hefei Home Appliances ISO 9001 Homa Appliances ISO 9001 System
System Certification Certification
39 40Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Lead Product Responsibility
Hefei Home Appliances adheres to the quality policy of "being user-centered continuously Homa Appliances has established a quality inspection process covering pre-production in-
improving product and service quality providing an ultimate experience and becoming a top-tier production and post-production stages. Before production it implements first article inspection
home appliance brand." In accordance with relevant laws and regulations it has formulated internal and in-process control inspection conducts pre-transfer box audits process discipline inspections
management systems such as the Quality Environment & Occupational Health System Management and special inspections for key processes and regularly organizes equipment risk maintenance and
Manual to standardize quality management throughout the produ ction process. Additionally technological transformation to ensure that equipment performance meets manufacturing and
the Hefei Home Appliances Testing and Certification Center has been accredited as a certification quality requirements. Additionally by monitoring first-pass yield and conducting spot checks on key
laboratory by the China National Accreditation Service for Conformity Assessment (CNAS). processes it continuously strengthens process quality control and production stability.In addition Homa Appliances has formulated institutional documents such as the Quality Manual In advancing digital and intelligent production Homa Appliances relies on the MES intelligent
Design and Development Control Procedure Design Change Control Procedure Completely quality management system to systematically control key inspection error prevention and repair
Knock Down New Product Development Trial Production and Production Transfer Management processes achieving full-process data tracking and product traceability management for core quality
Procedure and Tooling and Mold Management Procedure to standardize the management characteristics such as appearance safety performance leak detection and refrigeration performance.of product design development and manufacturing processes. During the reporting period Production inspection and repair processes have been fully integrated into system management and
the Company revised institutional documents such as the Supplier Management Procedure visual scanning devices have been installed at key process nodes to effectively prevent misassembly of
Electrostatic Protection Management Procedure Quality Digitalization Project Management components thereby enhancing the digitalization and precision of quality control.Measures Product Recall Management Measures and Management Measures of Quality
Improvement Project Award to further refine management requirements. Homa Appliances has During the reporting period Homa Appliances continued to promote technological upgrading centered
obtained the "Same Line Same Standard Same Quality" enterprise certification. Homa Appliances' on quality inspection and active error prevention capabilities. From automated inspection AI intelligent
products have passed tests conducted by Testing Centers authorized by CNAS internationally recognition to extreme condition safety verification it established a multi-dimensional quality assurance
renowned testing institutions SGS CSA TUV ITS and Dekra. The products have obtained safety system covering the manufacturing process and product safety evaluation driving the transformation of
environmental protection energy consumption and other certifications in more than 100 countries quality management from manual experience judgment to data-driven and intelligent control.and regions worldwide meeting stringent European energy efficiency standards.Technical focus Specific measures Control effectiveness
Comprehensive TCL Smart Home has established a quality management system centered around the entire product
lifecycle forming a closed-loop control mechanism that covers material procurement production and Build an AI production line apply an AI leak and Enhance the error prevention capability of
Quality Control finished product delivery. The Company has established systems for material procurement inspection AI intelligent error prevention error prevention system for foot screws and key processes achieve automatic sorting and
process control finished product sampling inspection non-conforming product management and market automatically transfer abnormal products to the disposal and prevent missing or incorrect
complaint handling. It implements graded control over key quality nodes to ensure stable and reliable repair line assembly of key components
product quality. Meanwhile by regularly conducting recall drills it enhances its emergency response and
handling capabilities in case of quality anomalies. During the reporting period TCL Smart Home did not Innovative automatic detection technology for Replace manual inspection reduce human experience any major product quality accidents. Automated defect detection exposed defects in PA pipes misjudgment and further improve detection
Regarding procurement management Hefei Home Appliances relies on the Quality Management System accuracy and consistency
(QMS) to achieve full-process quality traceability establishes a standardized procurement inspection
process and strictly controls the quality of raw materials. Homa Appliances has formulated the Procurement Fill the gap in safety verification for extreme
Inspection Management Measures to ensure that purchased raw materials and components meet Safety performance Establish a safety evaluation system for touch operating conditions and strengthen active
Detection efficiency established quality and technical standards laying a solid foundation for product quality from the source. verification system voltage values safety protection for products without
improved grounding wires
10 Homa Appliances implements supplier management in the upstream raw material stage and conducts Times incoming inspection according to the purchase inspection management requirements. During the reporting
period Homa Appliances entered the AI incoming inspection system to further optimize inspection
efficiency and accuracy; at the same time it established the Advanced Planning and Scheduling (APS)
system and the Product Data Management (PDM) system to strengthen production plan coordination and
Order response cycle technical document version control thereby enhancing quality consistency from the source.shortened Homa Appliances launches "Compressor Failure Risk and Quality Anomaly Improvement" project
30% In the production process Hefei Home Appliances actively promotes intelligent management and control of product production and quality monitoring establishes an AI intelligent appearance inspection system
and sets up a full-process inspection procedure covering the entire factory. It conducts real-time monitoring In 2025 Homa Appliances identified a potential risk of voltage surge failure in a certain model of chip used in compressor control
of key processes and quality control points co mbines on-site inspection and data recording identifies boards during product quality monitoring. After analysis by the technical team it was found that the root cause of the problem
and corrects abnormalities in the manufacturing process and strengthens process quality stability. was the insufficient precision in matching the selection of protective components with the voltage tolerance of the chip. In
During the reporting period Hefei Home Appliances promoted the construction of a smart manufacturing response to this situation the team quickly formulated an improvement plan replacing the specifications of the protective
demonstration line introducing industrial robots Automated Guided Vehicles (AGVs) and visual inspection components to ensure that they could activate the protection mechanism in a timely manner within the tolerable range of the
systems to implement automation and online monitoring of key processes. The automation rate of key chip. Currently the optimization and replacement of the relevant model products have been completed further enhancing the
processes increased to over 65% the detection accuracy of some inspection links improved to over 99% reliability and stability of product quality.and the detection efficiency increased tenfold. In addition a flexible production line was built to achieve
mixed-model production of multiple product models reducing the order response cycle by 30%.In the quality inspection process of finished products Hefei Home Appliances has established
internal management systems such as the Control Procedures for Product Monitoring and
Measurement and the Control Procedure for Product Identification and Traceability to standardize
the monitoring and traceability management of finished product quality. Comprehensive testing
Hefei Home Appliances actively promotes the construction of intelligent manufacturing is conducted on product performance and safety indicators to ensure that outgoing products
and digital quality management meet relevant quality requirements. Homa Appliances has established an IPQC process for spot-
During the reporting period Hefei Home Appliances focused on its dual-drive strategy centered on "smart manufacturing" and checking the quality of finished products and conducts rigorous quality inspection before product
"digital operation" applying digital technology to the quality control of the production process. The Company formulated a delivery to ensure that all finished products comply with the national "Same Line Same Standard
comprehensive digitalization plan covering R&D production supply chain marketing and management. During the reporting Same Quality" Standards and EU quality standards.period the Company completed the integrated deployment of core platforms such as Enterprise Resource Planning (ERP) Hefei Home Appliances has obtained CCC certification and its refrigerators have obtained SAA
Manufacturing Execution System (MES) and Product Lifecycle Management (PLM) and plans to leverage industrial internet CB CE GS and KC certifications for export sales. Its washing machines have obtained SAA CB
platforms to gradually integrate data from key business processes enabling unified data analysis and decision support. CE GS SASO BSMI KC TISI and BPS certifications for export sales. Homa Appliances have
completed quality and safety certifications including CCC UL TISI TUV and VDE.
41 42Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Lead Product Responsibility
Product Safety TCL Smart Home attaches great importance to the management of raw material safety ensuring product Building High Product TCL Smart Home places great emphasis on fostering a product quality culture integrating quality
safety and compliance from the source. Regarding harmful chemical substances the Company requires awareness into the entire process of enterprise management and production operations and promoting
all raw materials to comply with relevant requirements such as the Restriction of Hazardous Substances Quality Culture the formation of a quality culture characterized by full participation and whole-process control.(RoHS) and the Registration Evaluation Authorization and Restriction of Chemicals (REACH). In addition
the Company regularly conducts training on the use of relevant chemicals for employees strengthening Hefei Home Appliances has established systems such as the Incentive System for Quality
the management awareness of relevant personnel. During the reporting period TCL Smart Home did not Management Teams and the Incentive Plan for Total Quality Improvement Activities at TCL Hefei
experience any product safety accidents. Homa Appliances Home Appliances effectively mobilizing all employees to participate in quality initiatives. To
strengthen the construction of quality talent teams Hefei Home Appliances has set up quality
Hefei Home Appliances has formulated the Regulations on Hazardous Substance Process Management
based on relevant standards conducting comprehensive assessments of raw materials involving chemical Product quality training
talent training classes and regularly conducted quality management training to align quality
awareness among professionals. During the reporting period Hefei Home Appliances conducted 11
substances. The Company has established a supplier management mechanism in accordance with the Sessions training sessions on export standards for refrigerators and washing machines covering more than
RoHS Compliance Control Management Measures regularly conducting audits and eliminating suppliers 104 200 people in the fields of product R&D and quality.who fail RoHS testing to ensure that raw materials meet corporate control requirements. During the
product design and development stage the Company implements national standards and conducts To deepen the construction of a quality culture for all employees Hefei Home Appliances regularly
testing and verification to ensure that products meet safety performance requirements. The Company organizes various quality-focused activities. The Company organizes self-inspection and mutual
regularly organizes product type testing to verify the safety and performance stability of mass-produced Total number of participants in inspection activities in the refrigerator and washing machine factories every month to strengthen
products. In addition Hefei Home Appliances has established a three-level inspection process and a non- the trainig quality control throughout the production process. In addition the Company conducts monthly
conforming product handling process to strictly control product quality. Quality Star improvement activities covering all areas of R&D manufacturing procurement service 2031 Participants and quality. The refrigerator and washing machine factories conduct evaluation and assessment based
Homa Appliances adheres to the RoHS Compliance Control Management Measures and has established on market quality indicators and finished product quality indicators promoting improvement and
internal systems such as the Procurement Inspection Management Method and the Management Measures enhancing quality levels through evaluation. Meanwhile Hefei Home Appliances forms improvement
of Hazardous Substance Compliance Control to standardize the inspection process of raw materials. The teams in the form of small groups to carry out Quality Control Circle (QCC) improvement activities. The
Company has implemented a systematic supplier management mechanism regularly conducting audits Company evaluates the inspection skills of online inspectors based on the actual products presenting
and eliminating suppliers who fail RoHS testing. During the reporting period in order to strengthen the awards to the top three performers and establishing quality benchmarks.control of hazardous substances and enhance the environmental compliance of raw materials Homa
Appliances changed the material of the internal tank granules to environmentally friendly materials. Homa Appliances focuses on enhancing quality capabilities and takes multiple measures to foster a
quality culture. On the one hand the Company implements quality engineering projects enabling
employees to systematically learn quality project management methods and tools through project
practice thereby improving their practical ability in quality control. On the other hand Homa
Appliances holds monthly quality meetings to strengthen the quality improvement mechanism.Branch factory managers and department heads organize discussions on quality improvement
matters and through thematic exchanges and experience sharing activities a learning and
communication platform is established to continuously enhance employees' ability in quality
engineering analysis and improvement.Homa Appliances conducts special training on product inspection standards
In December 2025 in order to continuously promote the
construction of quality culture the Quality Department of
Homa Appliances organized a training session on product
inspection standard knowledge with the theme of Product
Audit Evaluation Standard Requirements in the training
room of the sixth factory with a total of 23 participants.The training systematically covered topics such as the
Hefei Home Appliances Washing Hefei Home Appliances product audit process understanding of evaluation
Machine RoHS Certificate Refrigerator RoHS Certificate standards and identification of quality risks further
enhancing employees' understanding and execution
ability of product quality standards.Management TCL Smart Home attaches great importance to the management of unqualified products and strictly controls Special training on product inspection standards
the product recall process. Through systematic management practices the Company has established a sound
of Unqualified product recall management mechanism and standardized operating procedures to effectively safeguard the
Products legitimate rights and interests of consumers and ensure product quality and safety. During the reporting period
TCL Smart Home did not experience any recalls of unqualified products. Indicators and Targets
Hefei Home Appliances has established a standardized control system for unqualified products formulated internal
systems such as the Control Procedures for Substandard Products and improved relevant management regulations for Targets Progress during the reporting period
product rework and repackaging. The Company has clearly defined the identification recall evaluation and disposal
processes for defective products to prevent unqualified products from entering the market. * No major product quality or product safety accidents have
Homa Appliances has formulated relevant management procedures such as the Product Recall Management occurred.Measures clarifying the division of responsibilities and specific operational processes among various * With the goal of achieving zero product safety accidents * No major administrative penalties have been imposed due
departments. In the event of a product recall the Company will establish a product recall team consisting of the Company should strengthen the quality and safety to product quality and product safety issues.representatives from R&D quality manufacturing plants sales and after-sales service departments responsible defense line. In this regard Homa Appliances has set a * The product has been recalled 0 times.for the overall planning notification issuance record compilation and effect evaluation of the recalled products. target of achieving a first-pass yield of over 90%.During the reporting period the Company revised and updated the Product Recall Management Measures to * The annual achievement value of first-pass yield of products
further optimize the content and implementation requirements of the system. for Homa Appliances is 92.33% exceeding the target.
43 44Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Lead Product Responsibility
Supply Chain Management Material circulation management principles of Homa Appliances
Adhering to the Just In Time (JIT) principle the Company precisely controls the arrival
Principle 1
Governance TCL Smart Home oversees supplier management from a group-level perspective with its subsidiaries time of raw materials according to the production plan to reduce inventory occupation.establishing corresponding management structures based on their actual business needs. They have
refined the entire process mechanism for supplier access review and exit continuously enhancing the
standardization and responsibility management of the supply chain. Implement the first-in first-out (FIFO) principle to ensure that raw materials are used in
Hefei Home Appliances has established a Procurement Management Committee chaired by the general Principle 2 batch order avoiding expiration or deterioration.manager and vice-chaired by the supply chain director. The committee comprises representatives from
relevant functions such as product lines procurement finance quality and audit coordinating and
collaborating across multiple parties including production R&D quality and procurement to implement Implement classification management based on the ABC classification method with a
unified decision-making and efficient management of the Company's procurement business. The Principle 3
committee has a subordinate category management mechanism (CEG team) specifically responsible for the focus on high-value and critical materials.implementation and execution of various procurement-related tasks.The supplier management work of Homa Appliances is centered around the supply department and
is divided into eight material management teams according to different material categories. Through Establish a full-process traceability system from suppliers to finished products strengthen
classified management and precise control the Company continuously improves the level of refinement and Principle 4 quality control and responsibility implementation and enhance the basic management
professionalism of its supply chain operations. capabilities of the supply chain.TCL Smart Home attaches great importance to responsible supply chain management always adhering To cope with risks such as fluctuations in raw material prices supply disruptions of key Strategy to the cooperation principles of "honesty and trustworthiness fairness and justice equality and mutual components fluctuations in logistics costs and supply interruptions Homa Appliances
benefits". With the goal of building an efficient transparent and sustainable supply chain system it systematically promotes risk management and control through supply collaboration inventory
promotes value chain partners to jointly practice responsible business practices. management and supply structure optimization. Homa Appliances has established close
supplier partnerships achieving early risk warnings and coordinated responses through
Homa Appliances' Material information sharing and collaboration mechanisms. In terms of inventory management the
Preparation Completion Rate Company sets up inventory buffers and safety stocks and implements advance stocking for
Affected
Time range of Stakeho-lders materials identified as high-risk to ensure supply continuity.Impact Main types of risks and opportunities financial
impact affected
indicators 100% Meanwhile Homa Appliances actively promotes the diversification of its supplier base
introducing at least two suppliers for similar materials to reduce dependence on a single supplier
Promote responsible supply Risks: Fluctuations in raw material prices
and enhance the flexibility and stability of the supply chain. In response to the risk of fluctuations
in shipping prices the Company strengthens monitoring of the transportation market and overall
chain management enhance Upstream unstable supply and stricter compliance shipment coordination and enhances overall risk response capabilities through inventory
the transparency and stability value chain regulations may lead to delivery delays increased Short-term costs and the transmission of compliance risks adjustment supplier collaboration and traceability management mechanisms. During the of the supply chain facilitate
Self- affecting production continuity. reporting period Homa Appliances achieved a 100% completion rate for inventory preparation compliance management Raw targets with a material completeness index of 93% exceeding the annual target. The material
and capability improvement medium- operationterm Opportunities: Strengthening cooperation material turnover index was 6.5 days meeting the annual standard.of suppliers while ensuring Downstream with high-quality suppliers and promoting the cost
equal treatment of small and
long-term value chain
In addition Homa Appliances has advanced the construction of its manufacturing base in
construction of a green integrity-driven and fair
medium-sized enterprises Thailand and commenced operations at its 300000-unit freezer sub-factory. By improving its supply chain will help enhance the resilience
to foster a sustainable overseas production capacity layout the Company has enhanced the resilience and stability of the supply chain and improve the stability of
cooperation environment. of its supply chain thereby effectively strengthening its ability to cope with fluctuations in the enterprise operations. international trade environment.Dimension of supply chain
Hefei Home Appliances Homa Appliances
capability building
Impact Risk and Opportunity Management
A supply and demand interlocking mechanism (S&OP
production and sales collaboration) as well as a By making reasonable predictions for raw material
material completeness and slow-moving inventory early demand and implementing differentiated management Supply Chain TCL Smart Home has established a comprehensive supply chain risk management system continuously Flexible supply chain warning mechanism have been established. Data-driven of long-term and short-term materials the Company can
Management enhancing the supply chain's resilience to risks through a full-chain risk identification assessment and forecasting and procurement planning for different cycles
prepare materials in advance or trial-produce materials
response mechanism. are carried out through key indicators such as cycle according to work orders to ensure supply flexibility and
Hefei Home Appliances has established a systematic supply chain risk management framework effectively strategy and flow rate.responsiveness.diversifying and addressing various risks through multi-departmental collaborative decision-making and
refined control. The Company has established a collaborative decision-making mechanism for front- and By adopting the SRM system the Company aims to build a collaborative and win-win partnership and jointly explore
back-office risks led by the procurement committee with multiple departments jointly participating in the market creating an integrated platform for enterprise
supply chain risk management. To stabilize procurement costs and supply order the Company continuously Integrate supply chain management through the SRM system and build a full-process digital platform covering resource acquisition and supplier management. The
tracks the price fluctuations of raw materials and key components with the annual cost reduction KPI as Digital supply chain modules such as supplier management procurement SRM system integrates various information technologies
the goal and promptly submits it to the procurement committee for scientific decision-making. At the demand management sourcing management and to support processes such as strategic product design
same time the Company further diversifies and resolves various supply chain risks through refined annual forecast management. strategic resource acquisition contract negotiation management and unified product information
planning improved KPI assessment system and promotion of the hilltop project mechanism. The Company management achieving digital and collaborative
continues to expand high-quality supplier resources and enrich supply channels fundamentally reducing operation of supply chain management.the dependency risk brought by a single supplier.Homa Appliances has established internal management systems such as the Material Circulation Incorporate delivery distance in the assessment for new
Management Measures which clarify material management standards and implement four major supplier admission and optimize the local supply layout; 80% of raw materials are provided by suppliers around Localized procurement The bulky materials suppliers are located within a radius the Pearl River Delta continuously deepening the supply
management principles. of about 50 kilometers with local suppliers accounting for chain layout in the Pearl River Delta region.more than 60% of the total.
45 46Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Lead Product Responsibility
Supplier TCL Smart Home attaches great importance to supply chain source control. For potential new suppliers it suspending cooperation will be taken. If a supplier has major violations in integrity finance or other aspects the
conducts comprehensive verification from dimensions such as qualification compliance business reputation Company will immediately eliminate it.Admission system certification and product quality. Through on-site audits it comprehensively evaluates suppliers'
contract fulfillment capabilities and reliability establishing a standardized and regulated supplier admission Homa Appliances has established standardized supplier admission and procurement management processes
system. forming a closed-loop management mechanism that covers plan reception order placement arrival tracking and
material warehousing. The supply department salesperson first receives and reviews the master production plan
Hefei Home Appliances has established and implemented the Supplier Certification Management Process and then places a purchase order after calculating precise procurement needs through the Logistics Resource
conducting supplier qualification reviews and assessments in accordance with the "four stages and fourteen Planning (LRP) system. Subsequently the salesperson follows up on the material arrival progress throughout
steps" new supplier introduction mechanism. It explicitly requires suppliers to possess SA 8000 social the entire process. Upon arrival of the materials the quality department conducts rigorous incoming inspection.responsibility standard qualifications as well as ISO 14001 environmental management system ISO 9001 Qualified materials are managed by the manufacturing department warehouse while unqualified materials are
quality management system and ISO 45001 occupational health and safety management system certifications. either subject to the recycling process or returned according to regulations.Homa Appliances has simultaneously improved its supplier admission management explicitly requiring
suppliers to possess three core qualifications: legal compliance environmental and safety management as well Homa Appliances conducts quarterly regular assessments on suppliers covering multiple aspects such as product
as social responsibility and business ethics. Firstly suppliers must comply with national laws and regulations quality usage tracking delivery timeliness and service attitude. Based on the assessment results the Company
possessing legal documents such as business licenses environmental impact assessment approvals and safety regularly updates supplier classification. If a supplier is involved in major negative environmental incidents or
permits. Additionally the Company pays attention to the industry status and supply qualifications of suppliers related issues the Company will urge it to promptly implement rectifications and submit a rectification report.focusing on the construction of their quality management systems. Homa Appliances conducts on-site audits In addition TCL Smart Home has continuously deepened its supplier empowerment efforts. Through various
for key suppliers inspecting the production environment storage conditions and the management system means such as resource sharing technical support and training exchanges it has continuously strengthened
operations. suppliers' management capabilities in compliance management product quality and business ethics. This has
facilitated suppliers' timely understanding of the Company's management requirements and industry trends
Supplier ESG TCL Smart Home has incorporated ESG requirements into its supplier admission assessment system promoting
promoting collaborative development of the supply chain. During the reporting period the Company conducted
upstream and downstream collaboration to implement the concepts of sustainable development. 2 sessions of supplier training covering 784 suppliers. Some suppliers have already undergone training related
Management to AEO trade security standards to enhance the compliance level of cross-border business and the security of the
Hefei Home Appliances incorporates multiple dimensions such as product quality technology R&D and
and Due supply chain.environmental protection into supplier evaluation. In terms of environmental management the Company
Diligence audits suppliers based on the Environmental Protection of Restricted Substances - On-site Inspection Checklist
and gives priority to partners who have obtained QC080000 hazardous substance process management system
certification and actively implement environmental protection measures. In terms of social responsibility
Hefei Home Appliances the Company conducts rigorous reviews of suppliers' labor rights protection occupational health and safety Equal Treatment TCL Smart Home has always adhered to the principles of "honesty and trustworthiness fairness and justice
management and other aspects in accordance with the Supplier Social Responsibility Inspection Checklist. For equality and mutual benefits" fully safeguarding the legitimate rights and interests of small and medium-
Suppliers' environmental of Small and suppliers that pass the evaluation Hefei Home Appliances signs documents such as the Notice to Interested sized enterprise suppliers. The Company has clarified payment methods and payment terms with all suppliers
assessments coverage Parties Integrity Commitment Letter Supplier Code of Conduct Quality Assurance Agreement Supplier Medium-sized through formal contracts and strictly fulfills its payment obligations for accounts payable as agreed. During
rate Capability Survey Form Social Responsibility Agreement Supplier Performance Management Measures the reporting period TCL Smart Home had no legal proceedings related to overdue payments and its accounts Enterprises payable balance did not exceed 50% of total assets.
100% Partner Code of Conduct Agreement and Safety and Fire Management Responsibility Commitment Letter clarifying the responsibilities and requirements of both parties in terms of compliance management product
quality social responsibility safety management and performance management.Suppliers' social Homa Appliances conducts audits and assessments of environmental risk factors for some key suppliers based Responsible TCL Smart Home adheres to the Code of Conduct Responsible Business Alliance (RBA) and other relevant
assessments coverage on the Related Party Safety and Environmental Management System and the Vendor Environmental Safety regulatory requirements and places great emphasis on the sustainable management of mineral resources in its
rate Questionnaire. In terms of social responsibility Homa Appliances reviews suppliers' social security payment Mineral production and operation. For key mineral resources such as nickel cobalt manganese lithium graphite mica
100% certificates safety management systems employee manuals anti-bribery policies social responsibility Sourcing copper and aluminum the Company refrains from purchasing or supporting minerals from conflict-affected reports and other documents and evaluates the protection of labor rights and occupational health and safety areas and clearly constrains upstream suppliers to jointly comply with the conflict mineral prohibition policy. By
management. conducting supply chain due diligence the Company continuously strengthens compliance management in the
procurement process and effectively ensures the legality and compliance of raw material procurement.Suppliers' Integrity Homa Appliances requires suppliers to sign Integrity Agreements which clarify anti-corruption and anti-bribery
(Sunshine) Agreement Hefei Home Appliances has formulated the Standard for Conflict Mineral Management committing to requirements and prohibit any form of bribery kickbacks and benefit transfers. Meanwhile the Company
signing rate eliminating the use of conflict minerals in its products and supply chain. The Company requires suppliers to requires suppliers to adhere to the principle of fair competition eliminate unfair competition behaviors such as sign the TCL Declaration of Conformity for Prohibited and Restricted Substances and regularly conducts training
100% bid collusion bid rigging and price manipulation fulfill intellectual property protection obligations establish a related to conflict minerals to strengthen supplier responsibility awareness and compliance capabilities. If any comprehensive technology confidentiality and trade secret protection mechanism and jointly maintain a healthy supplier is found to be using conflict minerals Hefei Home Appliances will immediately take control measures
business ecosystem. such as recalling products on sale and sealing relevant inventory and will re-evaluate and dispose of the
supplier in accordance with the quality agreement.Supplier TCL Smart Home places great emphasis on the full-cycle supply chain management. By formulating annual
supplier audit plans and regularly convening supplier quality review (QBR) meetings it conducts comprehensive
Management assessments of suppliers' performance in environmental social and governance aspects continuously
strengthening daily operational management of suppliers. For suppliers with violations the Company will urge
them to complete rectification within a specified timeframe; for those who fail to rectify or refuse to do so the Indicators and Targets
Company will take corresponding management measures such as suspending cooperation or terminating
admission. Targets Progress during the reporting period
Based on the TCL Industry Product Category and Supplier Graded and Classified Management Process and taking
into account business needs Hefei Home Appliances implements a four-dimensional hierarchical management * The total number of suppliers is 841 including:
of product categories and suppliers covering QCDT (Quality Cost Delivery and Technology). The Company * Optimize the global supply chain layout build a diversified ※ 804 suppliers in the Chinese mainland
regularly conducts comprehensive assessments based on QCDT indicators product category scoring standard and supplier network and continuously strengthen the stability
supplier hierarchical scoring system and dynamically adjusts supplier grades and supply quotas according to the of the supply chain ※ 10 suppliers from Hong Kong Macao and Taiwan regions
assessment results. ※ 27 overseas suppliers
For strategic product categories and strategic suppliers Hefei Home Appliances gives priority support in resource
matching and cooperation promotion. For suppliers whose evaluation results do not meet the standards the * Deepen supplier capacity building and build a collaborative * Conducted 2 sessions of supplier training covering 784
Company requires them to complete rectification within a specified period; for suppliers that fail to rectify partnership for development suppliers
effectively or whose rectification results do not meet the requirements corresponding measures such as
47 48Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Lead Product Responsibility
Customer Service Impact Risk and Opportunity Management
Governance TCL Smart Home has incorporated the development of customer service capabilities into the key management focus of the group clarifying service standards and Customer Service TCL Smart Home attaches great importance to the development of its customer service
management requirements and promoting its subsidiaries to improve their customer management system consistently adhering to a user-centered approach and continuously Management System improving the service system and service processes. The Company is committed to building
service structures thereby continuously enhancing service quality and response a standardized and efficient service management system continuously striving to enhance
efficiency. Both Hefei Home Appliances and Homa Appliances have established after- service quality and user satisfaction.sales service departments as the executive bodies responsible for the operation of
the service system network management complaint handling and service quality Homa Appliances Hefei Home Appliances strictly adheres to systems such as the TCL Refrigerator and Washing
improvement. They have also established a digital after-sales service system to Machine Quick Compensation Mechanism 3.0 and rigorously implements standardized service
provide support for customer demand tracking work order management service processes for fault detection of refrigerators and washing machines. Through standardized
progress monitoring and satisfaction follow-ups. Percentage of work orders inspection and maintenance management Hefei Home Appliances has established scheduled within two hours standardized service processes for fault detection of refrigerators and washing machines
which improve maintenance quality reduce the need for secondary visits and shorten user
Strategy TCL Smart Home has always adhered to a user-centered service management
accounted for
waiting times. At the same time Hefei Home Appliances has improved the omni-channel
philosophy continuously building a standardized and efficient service management 93% return and replacement service mechanism optimized processes and increased authorization system and guiding its subsidiaries to base themselves on their own business for frontline personnel enabling them to respond quickly to customer needs within their scope
characteristics and implement a service philosophy that meets user needs. of authority thereby improving service efficiency and the overall customer experience.Hefei Home Appliances adheres to the customer service philosophy of "striving to Percentage of work orders Homa Appliances has established a comprehensive service standard system formulating
become the most trusted home appliance service provider for consumers providing completed within 48 hours normative documents such as the Out-of-Warranty Charging Standards and service
users with ultimate services with warmth and making life better!" It focuses on 82% guidance documents like Polite Telephone Communication Language for Service Outlets upgrading service quality and is committed to creating a warm and highly recognized and Service Standards and Polite Language for On-site Service at Outlets. The Company
service experience. Homa Appliances upholds the service philosophy of "serving has established user profiles through its "after-sales service system" with dedicated
customers wholeheartedly and determined to impress customers". Focusing on efficient personnel responsible for follow-up and handling enhancing the efficiency of tracking customer needs. The Company has appointed after-sales service managers in each province
response to customer needs and continuous optimization of after-sales service it to manage service outlets and service orders with regular monitoring of service progress
consistently improves the user experience throughout the entire service journey. and user satisfaction feedback by the headquarters. Furthermore to improve service
completion efficiency the Company has established a timely on-site incentive policy in the
Special Maintenance Service Agreement stipulating that service outlets will be assessed for
Affected orders not completed within 2 hours of appointment.Time range Stakeholders
Impact Main types of risks and opportunities financial
of impact affected In addition the Company actively improves its after-sales service network ensuring service
indicators within 48 hours in rural areas and providing appointment services for remote areas thereby
By establishing intelligent Risks: If customer service experiences slow
guaranteeing the consumer experience for rural consumers.service platforms and Upstream response improper attitude or fails to handle
optimizing after-sales value chain issues in a timely manner it can easily lead to management processes Medium- customer loss affecting corporate revenue and Customer Complaint TCL Smart Home places high importance on customer complaints regarding rapid response and
enterprises provide term market expansion. Operating effective resolution of customer demands as the core of service improvement. The Company
consumers with efficient Self-operation Management continuously improves the whole-process management system for customer complaints Opportunities: By enhancing service revenue
service experiences forming effectively safeguarding users' legitimate rights and interests and ensuring a good experience.long-term Downstream processes and service quality enterprises can a service ecosystem oriented simultaneously improve internal operational Hefei Home Appliances has established the User & Customer Complaint Resolution
towards user rights and value chain efficiency and customer response speed Mechanism (4.0) A3 to standardize the processes of customer complaint acceptance
interests. thereby increasing customer retention rates. handling and closed-loop management. The Company has constructed a digital service
system encompassing a customer management system User Service System (USS) and
intelligent response robots. It also refines the management of work order nodes through the
service desk and timely intervention desk sets up a complaint warning entry on the engineer
APP terminal to enable real-time anomaly alerts and rapid intervention ensuring efficient
response to customer demands. Additionally the Company relies on the Voice of Customer
(VOC) management platform to regularly monitor product public opinion and user feedback
strengthen problem analysis and closed-loop improvement mechanisms and improve
product and service quality from the source.Homa Appliances has established the Reminder and Complaint Standards and set up
communication channels such as telephone hotlines and WeChat official accounts to respond
to consumers' needs for repair reports inquiries complaints and suggestions. The Company
has established user profiles through the "after-sales service system" and adopted 100%
manual review with dedicated personnel responsible for follow-up handling and response to
enhance customer satisfaction. For major repair service orders one-on-one telephone follow-
ups are conducted and follow-up summaries are generated in the after-sales service system.Homa Appliances
100%100%
Customer satisfaction Follow-up rate
4
Customer complaints handled
49 50Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Lead Product Responsibility
Customer Service TCL Smart Home adheres to a user-centered approach continuously improving its
customer service training system and enhancing employees' abilities in customer
Empowerment reception communication responsiveness and comprehensive service.Homa Appliances has formulated the Regulations on Management of Training for User
Service Center to further standardize customer training standards. The Company relies on
digital tools to establish diversified training and knowledge sharing channels uploading
product-related documents and sharing product maintenance manuals through the
Homa Appliances knowledge base and regularly conducts product technical training for
service outlets and customer service personnel through WeCom live broadcasts.During the reporting period Homa Appliances promoted two initiatives to enhance
customer service capabilities. Leveraging the Homa Appliances knowledge base
the Company effectively reduced the pre-job training time for new employees
enabling them to quickly search for issues and obtain online answers promptly after
independently taking up their positions. Furthermore the Company further clarified
the standard handling process and standardized communication methods for non-
routine issues in the knowledge base assisting customer service personnel in quickly
identifying and efficiently addressing complex issues.Homa Appliances conducts online training on the refrigeration
principle of air-cooled products
In December 2025 Homa Appliances conducted a special training on the
refrigeration principle of air-cooled products through a live broadcast on WeCom
aiming to continuously improve the quality of customer service and response
efficiency. The training focused on technical knowledge of air-cooled products
and customer service standards covering a total of 48 network and customer
service personnel.Responsible Marketing TCL Smart Home has always regarded integrity in business operations as the cornerstone
of its brand development. In advertising and marketing activities it strictly adheres to
relevant national laws and regulations industry standards and business ethics norms
in its operating regions ensuring that all external communication content is truthful
accurate legal and compliant while actively promoting healthy consumption concepts.The Company strictly adheres to relevant laws and regulations such as the Advertising
Law of the People's Republic of China the Law of the People's Republic of China on
the Protection of Consumers Rights and Interests and the Interim Measures for the
Administration of Internet Advertising as well as institutional documents such as
advertising review and publishing guidelines issued by market regulatory authorities. In
overseas markets the Company strictly complies with local laws related to advertising
consumer protection data privacy and competition and actively aligns with industry self-
regulatory code of conduct such as the International Advertising Standards Alliance (IASA).Hefei Home Appliances has established a comprehensive compliance management
system for the entire process of advertising content review and full coverage. It has set
up a cross-functional advertising review team composed of marketing legal technical
and compliance departments implementing a full-chain content review mechanism
covering "planning - copywriting - design - publishing". The Company conducts key
reviews focusing on content authenticity compliance and objectivity to eliminate false
misleading information exaggerated propaganda unfair competition and sensitive
violations. During the reporting period all advertising and marketing activities carried
out by Hefei Home Appliances globally passed 100% internal compliance review
and regular inspections and risk assessments were conducted on published content
through a normalized monitoring mechanism.Indicators and Targets
Targets Progress during the reporting period
* Continuously optimize product and service experience * Deepened the development of its customer service
and enhance customer satisfaction level framework leading to ongoing enhancements in user experience and a notable rise in satisfaction levels.
51 52Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Co-create a Collaborating Community Ecosystem
Co-create a
Collaborating
Community Ecosystem
TCL Smart Home views sustainable development as a process of growing
together with our employees. The Company continuously improves its talent
development management system actively creates a diverse inclusive
and equal workplace atmosphere and provides employees with a safe and
comfortable office environment as well as vast development opportunities.At the same time the Company proactively fulfills social responsibilities
by participating in community public welfare activities promoting
collaboration and progress between the value chain and the community.COMMUNITY
53 54Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Co-create a Collaborating Community Ecosystem
Employee Rights and Protection TCL Smart Home respects the rights of employees to freely associate and engage in collective negotiation acknowledges and respects all lawful and legitimate acts of
free association and collective negotiation and does not interfere with the lawful and
reasonable activities organized by employees. Employees will not be discriminated
Governance TCL Smart Home has established a sound organizational structure for the protection of
against or retaliated against for participating in organizational activities.employee rights and assembled a professional management team to lead and coordinate
relevant work on employee rights. By formulating and improving the human resource
management system standardizing the entire process management of human resource
planning compensation and benefits performance management career development
it promotes the coordinated development and mutual benefit of the enterprise and Total number of employees
employees. 10394 Number of 441314807 Person employees: Person
Person Number of male employees classified by Number of female employees
Strategy TCL Smart Home has always adhered to the principle of fair recruitment and continuously genderestablished and improved the Company's recruitment management system. Hefei
Home Appliances adheres to the recruitment principles of "equal employment person-
job match empowerment for mutual success" focusing on professional ability and job
suitability to achieve common development for both the Company and its employees.Homa Appliances adheres to the recruitment principles of "openness fairness
competition" and "appointing people based on merit" laying a solid foundation of talents
for the steady development of the Company.
7705Person Number of 6267Person
Potential employees:
Time range Stakeholders Number of employees
Impact Main types of risks and opportunities financial Number of employees classified by age
of impact affected aged 30 to 50
impact under 30 years old
Risks: If the employee rights and protection is not in
place it may lead to talent loss decreased employee
Provide legal rights Short-term satisfaction and weakened organizational cohesion
protection and a good which in turn will affect operational efficiency and
working environment increase operating costs. 835person
promote stable medium- Self- Operating
employment maintain term operation Opportunities: By fostering an equal and inclusive cost Number of employees over 50 years old
harmonious labor relations workplace environment and improving the salary
and promote inclusive communication mechanism the Company can enhance
social development. long-term employee trust and sense of belonging increase the
attractiveness and retention rate of high-quality talent 1785Person
and promote operational efficiency. Number of
Bachelor's degree employees: 12837
classified by Person
Impact Risk and Opportunity Management educational level Associate degree or below185Person
Equal Employment TCL Smart Home strictly adheres to the International Labor Organization Convention the Labor Law of the People's Republic of China the Labor Contract Law of the People's Master's degree or above
Opportunity Republic of China and other relevant laws and regulations. It continuously improves its
recruitment management system effectively safeguards employees' statutory rights and
interests such as salary and vacation establishes an internal employee management system Employee TCL Smart Home places great emphasis on effective communication with its
strictly prohibits the employment of child labor and any form of forced labor and rigorously employees continuously improving communication mechanisms and problem-solving
verifies employee ages during the recruitment process. Hefei Home Appliances has issued Communication processes and fostering a friendly and inclusive workplace atmosphere. By establishing
the Management Procedures for Prohibition of Child Labor and Underage Labor to further a diversified communication platform the Company ensures timely feedback on
standardize employment management requirements. Homa Appliances relies on a digital employee suggestions and efficient resolution of related issues. Additionally the
human resources system to achieve compliant employment and prevent employment Company regularly conducts employee satisfaction surveys to comprehensively
violations. During the reporting period the Company did not experience any illegal or understand employees' evaluations of the work environment logistics management
irregular employment incidents. and other aspects and continuously optimizes related work based on survey feedback.TCL Smart Home is committed to creating a diverse inclusive and equal workplace Hefei Home Appliances has established a four-in-one communication channel
environment and firmly opposes all forms of discrimination harassment and bullying.In recruitment training promotion and other aspects it does not discriminate against consisting of physical suggestion boxes direct departmental feedback employee
employees based on gender age race religious belief disability marital status or other representative communication and a dedicated complaint hotline to ensure
factors. Hefei Home Appliances has issued the Anti-Discrimination Management Procedure convenient and efficient expression of employee demands. The Company has
to implement the principle of equal pay for equal work and ensure equal employment rights established a labor union to actively collect and reflect employee opinions and
for male and female employees. Homa Appliances has formulated the Employee Behavior suggestions and has simultaneously released the Grievance and Complaint
Management Measures clarifying the anti-discrimination and anti-harassment handling Management Procedure to clarify the process for handling employee concerns. A
procedures establishing a women's federation organization to safeguard the rights and full-process closed-loop mechanism has been established encompassing "demand
interests of female employees providing suitable positions and special allowances for submission - dedicated follow-up - timely resolution - result feedback" to ensure
disabled employees and supporting their career development. timely feedback on employee demands and opinions.Homa Appliances has formulated the Notice on Further Improving Communication
TCL Smart Home Channels for Employees to broaden the communication paths between employees and TCL Smart Home the Company. Employees of Homa Appliances can provide opinions and suggestions
There are 293 disabled employees Employee satisfaction to the Company through various channels such as the president's email complaint
and suggestion mailbox corporate OA email and the "Homa Talks" official account.
2290 employees from ethnic minorities 100% In addition the Company regularly conducts communication training for grassroots supervisors and employees to ensure smooth and efficient internal communication.
55 56Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Co-create a Collaborating Community Ecosystem
Employee Welfare and TCL Smart Home strictly abides by relevant national laws and regulations legally ensuring
that employees enjoy statutory holidays such as maternity leave paternity leave and Employee Training and Development
Care breastfeeding leave. Additionally it provides a range of welfare benefits including free
dormitory housing overtime allowances meal subsidies full-attendance bonuses high-
temperature allowances and transportation allowances. TCL Smart Home regularly TCL Smart Home continues to promote employee capability development. Led by
organizes various cultural sports and major holiday activities and equips the dormitory Governance the Human Resources Department a comprehensive employee development system
area with leisure facilities such as billiard rooms dance halls and movie theaters enriching has been established and a diversified talent training plan has been formulated to
employees' leisure time and enhancing their sense of belonging and well-being. encourage employees to continuously learn and enhance their abilities.Strategy TCL Smart Home has always adhered to the core concept of "achieving global leadership with first-class talent". While continuously introducing high-end scientific
research talents in the fields of refrigerators and washing machines it has been
improving its employee training and development system strengthening talent
cultivation and capability building and driving core technological innovation and
high-quality development with a team of high-quality talents.Time range Stakeholders Potential
Impact Main types of risks and opportunities financial
of impact affected impact
Provide employees with continuous Risks: No major risks have been
learning and development Short-term identified for this topic. Operating
Homa Appliances held a special event for the Mid-Autumn Festival opportunities enhance their Opportunity: The enterprise can improve costs
professional abilities and long-term its employee training and development
employment competitiveness and medium- Self- Operating
TCL Smart Home has established nursing rooms at its various production bases system enhance organizational cultivate professionals who can term operation
focusing on the needs of female employees during lactation. Hefei Home Appliances competitiveness strengthen market revenueadapt to technological changes and
has formulated the Risk Management Procedure for Pregnant and Lactating Mothers adaptability attract and retain talents industrial upgrading for the industry long-term
implemented parental leave policies and comprehensively protected the legitimate and lay a solid foundation for the and society.rights and interests of female employees. Homa Appliances focuses on caring for Company's sustainable development.female employees and special groups providing flexible office arrangements for female
employees with children under 12 years old helping employees balance work and family.In addition it actively employs disabled employees regularly conducts condolences for Impact Risk and Opportunity Management
special employees and provides special subsidies to employees in difficulty.Talent Attraction TCL Smart Home regards talent as the driving force for the Company's development and continuously expands its talent acquisition channels. Hefei Home Appliances
enhances its talent brand presence through campus lectures job fairs and other
activities while promoting internal referrals and internal appointments to enhance
employee internal mobility and optimize talent resource allocation. Homa Appliances
attracts outstanding talents through channels such as corporate open days and
internal referrals and collaborates and conducts recruitment lectures with 20
universities and colleges including South China University of Technology and Central
South University. In the recruitment process a "double-check" screening method is
implemented with the Human Resources Department conducting initial screening
and evaluation and the employing department conducting final interviews to ensure
a match between the person and the position.Homa Appliances held an International Women's Day festival event
Employee In terms of compensation management TCL Smart Home has established a comprehensive compensation system and regularly conducts market research on
Compensation and compensation to ensure its competitiveness in the market. The Company closely
Performance Evaluation links compensation with performance implements a differentiated compensation Indicators and Targets incentive mechanism and regularly optimizes the job level system and compensation
standards based on the Company's strategy employee performance and ability
levels ensuring fair just and transparent compensation distribution.Targets Progress during the reporting period
In terms of performance evaluation TCL Smart Home has established a systematic
* The signing rate of labor contracts is 100% performance evaluation system implementing comprehensive performance
evaluations based on job characteristics and continuously improving the
* Protect the legitimate rights and interests of employees * The coverage rate of Five Social Insurances and One performance complaint mechanism to ensure fairness and impartiality in performance
continuously improve the construction of employee Housing Provident Fund is 100% appraisal thereby driving the continuous optimization of its performance
welfare system and promote diversification and equality * The ratio of female employee is 30% management system. Hefei Home Appliances has established a Performance Floating
work. System set up a standardized evaluation and assessment system and utilized tools * Number of disabled employees is 293 such as 360-degree evaluation and engagement evaluation combined with talent
* Number of employees from ethnic minorities is 2290 inventory job qualifications data analysis and other methods to dynamically assess employee performance and optimize the salary structure. In addition Homa
Appliances has formulated the Performance Management Measures systematically
* Strengthen employee communication and promote * Employee satisfaction is 100% carrying out job performance and organizational performance assessments and
efficient problem-solving. * Number of labor union members is 11463 establishing recognition mechanisms such as "Monthly Star" and employee honor
roll to provide positive motivation for employees with excellent performance.
57 58Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Co-create a Collaborating Community Ecosystem
Employee Training and TCL Smart Home is committed to establishing a smooth employee promotion channel and ensuring the standardization and fairness of employee career development. Hefei Talent training program of Homa Appliances
Development Home Appliances has formulated systems such as the Regulations on Rewards and
Punishments Management with job value performance contribution and ability level as
the core evaluation dimensions in the promotion selection and excellence award process. Outstanding Talent Program Talent Development Program
Homa Appliances has established a dual career development path for management
and technical channels clarifying the promotion standards and qualifications for both To facilitate the rapid growth of fresh graduates Homa The "Talent Development Program" backup team leader
channels. In terms of the technical channel the Company organizes professional and Appliances has established a systematic training program aims to cultivate grassroots management talents
technical personnel title evaluations annually in accordance with the Management system for management trainees participating in the with management capabilities and self-awareness
Measures for the Evaluation of Technical Staff Titles. Meanwhile Homa Appliances Outstanding Talent Program. Through one-on-one and reserve frontline key personnel. The Company
implements the "Talent Flow Plan" to provide employees with internal job transfer guidance from professional mentors management has customized courses such as "Role Awareness and
opportunities promoting mutual development between employees and the Company. trainees will smoothly adapt to and integrate into the Execution" and "Interpersonal Leadership" for the Company during the one-year mentoring process trainees and comprehensively enhances the job skills of
TCL Smart Home has established a systematic talent development mechanism and completing their role transition. backup team leaders through practical sessions such as
has carried out diversified talent cultivation projects centered around capability case analysis group discussions and simulation exercises.enhancement and job progression needs continuously improving the construction of
internal learning platforms and striving to build a high-quality professional talent team. Elite Program Talent Gathering Program
Hefei Home Appliances implements a dual-mentor training system laying a solid talent
TCL Smart Home foundation through scientific selection and systematic cultivation and has established The "Elite Program" (Training Program for Managers) According to its strategic needs the Company aims overseas factory training programs to reserve international talents and provide strong is targeted at newly promoted grassroots managers. to cultivate outstanding reserve middle-level leaders
support for global business layout. Homa Appliances has formulated differentiated Through various forms such as intensive training among high-level employees. The training content
Total investment in employee training training programs for employees at all levels established management systems such mentor coaching symposiums sharing sessions and encompasses classroom instruction project practice
215.55 as Training Management Measures and Instructor Management Measures continuously on-the-job practice combined with practical business extreme challenges and exchange and sharing helping Ten thousand RMB optimized training processes improved the professional capabilities of instructors issues it helps managers smoothly complete their role trainees enhance their comprehensive abilities.
comprehensively enhanced the overall quality of employees and promoted the transition enhance management skills and cultivate Successful graduates will be included in the backup
construction of the "Homa University" internal learning platform providing employees and reserve talents for enterprise development. middle-level leader talent pool.with an efficient and convenient learning and development channel.Future Leader Program
Targeting engineers specialists and team leaders the Company aims to cultivate a group of outstanding backup
Talent training system of Hefei Home Appliances grassroots leaders in accordance with its strategic needs. The training encompasses classroom instruction project
practice extreme challenges and exchange and sharing comprehensively enhancing the comprehensive abilities of
the trainees. Those who successfully complete the training will be included in the pool of backup grassroots leaders.Eagle series training programs Newly-appointed series training programs
Based on the enrollment year threshold objectives For new managers department heads directors
ability indicators a leadership development system and other management personnel special training
has been designed for fresh graduates progressing sessions will be conducted to focus on enhancing
from "young eagle" "flying eagle" to "elite eagle". their management skills and leadership abilities. This
Additionally training programs for newly appointed
and high-potential talents have been established to will help them better adapt to the role transition and
assist them in rapidly adapting to the workplace and effectively perform their management functions.enhancing their leadership skills.Professional training programs Learning platform and resources development
The Company regularly carries out professional ability The Company establishes diversified public learning
training based on employees' job nature and work platforms such as "T-School" open to all employees "Outstanding Talent Program" Star Power "Talent Development Program" training "Elite Program" cadre training
content to ensure the efficient implementation and and provides rich learning resources and flexible training
smooth execution of organizational strategic projects. learning methods."Talent Gathering Program" training "Outstanding Talent Program" training On-site training for internal trainers of
Homa Appliances
Indicators and Targets
Targets Progress during the reporting period
* Focus on talent development clarify promotion channels and * The investment in employee training amounted to
paths and establish a comprehensive talent training system. 215.55 ten thousand RMB
59 60Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Co-create a Collaborating Community Ecosystem
Occupational Health and Safety of occupational health risks in accordance with the System for Identification and Control of Occupational Health Safety and Environment Potential Risks and further improves safety
management measures through documents such as the Special Operation Safety Management
System and Hazard Source Identification Risk Assessment and Control Procedure
TCL Smart Home supervises its subsidiaries to establish EHS governance structures based strengthening the safety protection configuration of mechanical equipment adopting safety Governance on their respective operational conditions. Among them Hefei Home Appliances has interlock devices and visual warning signs and effectively reducing equipment operation risks.established an Occupational Health and Safety Committee in accordance with relevant
regulations on occupational health and safety which is responsible for coordinating research Regarding emergency management Hefei Home Appliances has promoted the operation
deployment and guidance of various safety management tasks. Homa Appliances has set of the emergency management system strictly implemented the emergency response
up a Safety Production Committee with the deputy general manager in charge of safety procedures for safety accidents facilitated collaborative responses from various
and environmental protection responsible for the overall management of the system. departments swiftly handled dangerous situations clarified responsibilities and carried
Through regular risk identification and high-risk operation control emergency management out rectification and optimization. The Company has added the Emergency Response Plan
capabilities are improved and the overall level of safety management is strengthened. for Sudden Illness of Manufacturing Employees in the White Goods BU Washing Machine
to standardize on-site emergency response measures material preparation and accident
Strategy Hefei Home Appliances adheres to the safety management philosophy of "safety first
handling procedures. During the reporting period Hefei Home Appliances planned to
prevention foremost and comprehensive management" actively implementing the safety implement 37 emergency drill plans and actually organized and completed 42 including 5
production responsibility system. Homa Appliances adheres to the safety management new drills related to hazardous materials exceeding the annual plan. At the same time the
policy of "following the path of scientific enterprise development conducting compliance Company further promoted the signing of safety responsibility commitment letters covering
management caring for life and creating a safer and more comfortable environment for all employees and positions strengthening the implementation of safety responsibilities.employees" continuously improving the safety management system and effectively ensuring
the occupational health and life safety of employees. Homa Appliances has formulated the Emergency Response Plan for Production Safety Accidents and the Emergency Preparedness and Response Procedures to provide clear
operational guidelines for handling emergencies. Each factory is equipped with fire and
Potential chemical leakage alarm systems automatic broadcasting systems as well as automatic fire-
Time range Stakeholders
Impact Main types of risks and opportunities financial fighting sprinkler systems safety ventilation systems fire hydrants emergency lighting and
of impact affected
impact evacuation indicators among other emergency facilities to comprehensively enhance the
capability to respond to and handle dangerous situations.Risks: Negligence in occupational health
By providing full- management can easily lead to personal injuries
process occupational Short-term in the workplace resulting in legal proceedings
health management and and related penalties for the enterprise. Operating
regular safety training cost
the occurrence rate of medium-term Self-operation Opportunities: The enterprise attaches great occupational diseases importance to the safety and health of its Compliance
and accidents has been employees safeguards their rights and interests cost
effectively reduced ensuring long-term enhances stability and production efficiency
employee safety. and simultaneously consolidates the Company's
image and reputation.Impact Risk and Opportunity Management
Safe Production TCL Smart Home places the utmost importance on safe production and employee Homa Appliances conducts special safety inspections for special operation positions and placesoccupational health continuously establishing a clear full-chain safety management system in
areas such as chemical control high-risk operations emergency response safety culture and
occupational health. Its subsidiaries have improved special systems strengthened practical
control conducted regular training and drills implemented compliance requirements fortified Safety Culture Promotion TCL Smart Home continues to promote the construction of a safety production culture regularly
the production safety line and safeguarded employee health. The Company has also extended organizing various safety activities and special training sessions during the Safety Production
safety management to its suppliers. During the reporting period Homa Appliances updated Month to continuously strengthen employees' awareness of occupational health and safety
the Related Party Safety and Environmental Management System further strengthening the and enhance their safety knowledge and skills. Hefei Home Appliances has issued the
safety protection for supplier personnel visiting the factory. It clarified that all personnel Regulations for Occupational Health and Safety Training Management to further standardize the
must possess relevant operational qualifications before entering the site and sign a safety organization and implementation of safety training work. Homa Appliances strictly implements
notification reinforcing the responsibilities and obligations of both parties in safe production. the three-level safety education for new employees before they join the Company and conducts
regular training focusing on emergency rescue fire safety mechanical safety risk prevention
Regarding chemical management and control Hefei Home Appliances has formulated and and control comprehensively strengthening the foundation of safety management.implemented the Regulations on Hazardous Substance Process Management regularly
conducted chemical risk assessments and ensured that operations comply with relevant
standards and requirements. It has also obtained the certification of Level 2 Enterprise of Safety
Production Standardization. Homa Appliances has formulated systems such as the Chemical Homa Appliances' eighth factory conducts fire emergency drills
Safety Management Measures and the Hazardous Goods Receiving Procedure establishing
a comprehensive management system covering hazardous chemicals including Safety Data
Sheets (SDS) and labels for hazardous chemicals receiving and unloading storage and use In June 2025 in order to implement the fire safety policy and
personnel training and safety inspections. The Company regularly organizes specialized enhance employees' fire emergency response capabilities the
chemical safety training focused on operational procedures accident prevention and safety team of Homa Appliances' eighth factory organized a
emergency response to chemical spills. Employees' safety skills and operational proficiency are drill for all day-shift employees to simulate a scenario where
tested through theoretical exams practical drills and on-site inspections. a mobile phone placed in the foam area of the box bottom
support caught fire due to spontaneous combustion. Each
In terms of high-risk operation control TCL Smart Home has established strict operating emergency response team was assigned specific tasks such as
specifications for high-risk operations such as hot work climbing and cyclopentane fire extinguishment evacuation cordoning off and search and
unloading achieving real-time monitoring of hidden dangers through the installation of rescue. The planning for this drill was detailed and each team
monitoring equipment and sensors to ensure that operational risks are controllable. Hefei responded swiftly. The dormitory area was also included in the
Home Appliances implements strict risk identification and approval procedures for high-risk evacuation scope and a detailed evacuation route map was
operations in accordance with the Regulations on the Management of Hazardous Operations drawn. Moving forward the safety team of the eighth factory
strengthens the management of operator qualifications strictly enforces the requirement of will continue to focus on enhancing fire safety and applying the
holding certificates for employment and ensures safety and compliance throughout the entire drill procedures to actual production. Homa Appliances' eighth factory conducts fire emergency drills
operation process. Homa Appliances on the other hand systematically manages key areas
61 62Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Co-create a Collaborating Community Ecosystem
Occupational Health TCL Smart Home has always been committed to providing comprehensive health and safety protection for its employees and strictly complies with the occupational disease prevention
Management regulations in all its operational locations. To effectively reduce the risk of occupational
diseases the Company requires employees in relevant positions to regularly participate
in occupational disease prevention training and requires employees to undergo regular
pre-employment in-service and post-employment occupational health examinations to
ensure 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 to ensure safety during work. Employees in positions with occupational disease
hazards are issued an Occupational Disease Hazard Position Notification to facilitate the
timely detection and prevention of potential occupational health risks. During the reporting
period TCL Smart Home did not experience any occupational disease incidents.In addition TCL Smart Home conducts occupational health knowledge dissemination
activities for all employees every year through occupational health awareness week and
systematic annual training continuously enhancing employees' awareness of occupational
disease prevention and self-protection capabilities. To further improve the overall health
level of employees the Company regularly invites medical personnel to conduct lectures on
common disease medical knowledge and health helping employees enhance their awareness
of daily health management thereby promoting their long-term health and well-being.Homa Appliances occupational disease prevention and control training courseware
Indicators and Targets
Targets Progress during the reporting period
* No major occupational safety accidents caused
* Continuously create a safe and stable working environment promptly by production safety have occurred.eliminate risks through a normalized hidden danger investigation * A total of 825 occupational health and safety
and rectification mechanism avoid major work-related accidents and training sessions were held attracting 186666
related losses and effectively safeguard employee health and safety. employee participation with an average training
duration of 1 hour per employee.Community TCL Smart Home actively fulfills its corporate social responsibility regularly organizes public welfare activities and encourages employees to participate in volunteer services
demonstrating its social responsibility through concrete actions and supporting the high-
Development quality development of social welfare undertakings.Hefei Home Appliances actively carries out employee volunteer activities and organizes
science education and research activities for young people to enhance their scientific
and technological literacy through immersive experiences stimulate their enthusiasm
for scientific exploration and promote the popularization of science and technology
education. Homa Appliances mobilizes its employees to actively participate in public
welfare volunteer services. In the field of ecological environmental protection it actively
participates in ecological restoration and energy conservation and emission reduction
projects. In community development it supports the improvement of community
TCL Smart Home infrastructure and carries out various community service activities. Through participating
in public welfare activities such as educational support and elderly care it cares for
External donations vulnerable groups such as people in difficulty disabled people the elderly and children.
2.02 In addition the Company actively responds to and participates in the "Home Appliances to Million RMB the Countryside" and "Trade-in" activities organized by governments at all levels striving
to bring its high-quality cost-effective products to rural areas thereby helping to improve
the quality of life and access to consumer goods for local residents.Homa Appliances has been awarded the China Red Cross
Dedication Medal
63 64Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Consolidate Governance Foundations
Consolidate
Governance
Foundations
TCL Smart Home upholds the core values of integrity transparency and
respect adheres to the leadership of the Party continuously improves
the top-level design of corporate governance and builds a sound
compliance internal control and risk management system. At the same
time the Company steadily promotes data and information security
protection work effectively safeguarding the legitimate rights and
interests of all stakeholders and laying a solid governance foundation
for the Company's high-quality development and stable operation.GOVERNANCE
65 66Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Consolidate Governance Foundations
Party Leadership Corporate Governance
Governance and Guided by the theories of the Party TCL Smart Home has thoroughly studied and TCL Smart Home has established a corporate governance structure consisting of implemented the important spirit of the Party continuously strengthened the core Governance the shareholders' meeting the Board of Directors and the Management clearly
Strategy role of party building leadership in the Company's strategic planning and operation delineating the roles and responsibilities at each level and formulating corresponding management and effectively transformed the political and organizational advantages rules of procedure to achieve effective checks and balances among decision-making
of the Party into the efficiency and development advantages of corporate governance. execution and supervision.The general Party branch of the Company has continuously strengthened Party
building work solidly promoted the standardized development of Party branches
strictly implemented various organizational life systems and continuously enhanced
cohesion and execution. Each Party branch closely focuses on the actual situation of Shareholders' Meeting
the Company's business operations and development conscientiously implements
the requirements of the superior Party organizations regularly conducts self- Strategy and Sustainability
examination and self-correction actively promotes the deep integration of Party Committee
building work with business development team building risk control and fully
leverages the role of the Party organization as a fighting bastion and the exemplary
role of Party members thereby providing a strong organizational guarantee for the Nomination Committee
high-quality development of the Company. Board of Directors
Remuneration and
Appraisal Committee
Impact Risk TCL Smart Home promotes party building with a focus on implementing the spirit of the eight-point decision on improving Party and government conduct. Relying on Secretary of the Board
and Opportunity various forms such as "Three Meetings and One Lecture" system thematic Party days
Audit Committee General Manager of Directors
and online learning platforms the Company systematically organizes theoretical
Management learning and special education guiding party members and cadres to build a solid
ideological foundation and strictly adhere to the bottom line of discipline. Meanwhile
the Company promotes party members to play a leading role in business challenges
service improvement and innovative development by setting up party member
pioneer posts and party member responsibility areas effectively promoting the deep
integration of party building and business development.TCL Smart Home
Number of party members is 223
The Board of Directors of the Company currently consists of 7 directors including
Number of new party members is 28 3 independent directors，accounting for 43%. The composition and electionprocedures strictly comply with relevant laws and regulations as well as the
requirements of the Articles of Association. The Board of Directors has established
the Strategy and Sustainability Committee Nomination Committee Remuneration
and Appraisal Committee and Audit Committee. The members of each special
committee are elected by the Board of Directors providing professional support for
Leading Party Building to Strengthen Skills Building Dreams with the standardized operation and sustainable development of the Company.Craftsmanship to Drive Development
Strategy TCL Smart Home adheres to the principles of compliant and efficient corporate In November 2025 Homa Appliances held a technical competition under the governance built on a clear governance structure and a diverse professional
theme "Leading Party Building to Strengthen Skills Building Dreams with decision-making body. It is committed to continuously enhancing decision-making
Craftsmanship to Drive Development." More than 120 party member employee efficiency and governance standards ensuring the Company's long-term sustainable
representatives participated. This party building activity focused on core skills development through effective governance practices.such as copper-aluminum welding and quality inspection with Party members
taking the lead in demonstrating their expertise and competing on technical
proficiency. This activity helped implement the approach of "nurturing talent
and promoting learning through competition" injecting a powerful driving force
into the Company's efforts to identify key technical talents and build a solid Potential
foundation for talent development. Time range Stakeholders Impact Main types of risks and opportunities financial
of impact affected
impact
Improve governance
Indicators and Targets structure and decision-
Risks: No major risks have been identified for
making mechanism enhance Short-term this topic.operational transparency and Opportunities: By enhancing governance
Targets Progress during the reporting period responsibility implementation medium- Self- diversity and professionalism establishing Market
level promote standardized term operation a positive corporate image and bolstering financing
* Continuously strengthen the construction of the Party operation and scientific stakeholders' confidence in the enterprise
member team carry out Party building activities in an * There are 223 party members including 28 new party decision-making of the long-term can attract more investment and cooperation
orderly manner and promote the deep integration of members recruited this year. Company and safeguard opportunities.Party building with business development. investors rights.
6768
Securities
Department
Zhongshan Office
Legal Compliance
Department
Administration and
HR Department
Financial Management
Department
General Manager
Office
Hefei Home
Appliances
Homa Appliances
Internal Control
DepartmentGuangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Consolidate Governance Foundations
Impact Risk and Opportunity Management Information Disclosure TCL Smart Home adheres to the philosophy of proactive and transparent information disclosure strictly complies with laws and regulations such as the Administrative
Measures for Information Disclosure of Listed Companies and the Guidelines for the
Corporate Governance TCL Smart Home strictly complies with the Company Law of the People's Republic of China Regulation of Listed Companies No. 10—Market Value Management and has established the Securities Law of the People's Republic of China the Rules Governing the Listing of and continuously improved a series of internal governance systems including the
System Shares on Shenzhen Stock Exchange and other relevant laws and regulations as well as Information Disclosure Management System the Regular Report Preparation and
the regulatory requirements of the exchange. Guided by the Articles of Association and Disclosure Management System and the Investor Relations Management System.supplemented by supporting rules and regulations such as the Independent Director It ensures the authenticity accuracy completeness and timeliness of information
System and the Terms of Reference of the Strategy and Sustainability Committee of Board disclosure effectively safeguarding investors' rights to know and participate.of Directors the Company continuously standardizes the decision-making and operational
processes of the Board of Directors ensuring that the shareholder' meetings and Board of The Company has established a comprehensive information disclosure mechanism
Directors meetings are convened in accordance with the law and regulations. All directors setting up regular reporting systems for matters such as foreign exchange hedging
diligently fulfilled their duties and actively attended board meetings and specialized bank credit related-party transactions external guarantees/applications for
committee meetings. During the reporting period TCL Smart Home held 2 shareholders' guarantees and major litigations. It also regularly monitors sensitive matters and data
meetings 6 Board of Directors meetings and 10 meetings of specialized committees under in daily operations evaluates matters approaching disclosure thresholds and provides
the Board of Directors and special meetings of independent directors. timely alerts to ensure that information disclosure is conducted in accordance with
laws and regulations. During the reporting period the Company did not experience any
TCL Smart Home The Company has established a sound internal and external collaborative supervision and violations of information disclosure regulations.balance mechanism to ensure standardized operation. In terms of internal supervision
The proportion of female directors independent directors and the Audit Committee continuously monitor the financial status
and the legality and compliance of the performance of directors and senior management.
43% In terms of external supervision the Company actively accepts the supervision of
TCL Smart Home
professional institutions such as securities regulators accounting firms and law firms. The
annual financial report is independently audited in accordance with the law to ensure the
authenticity and accuracy of financial information. 101 129 222
On this basis the Company actively promotes the diversification of the Board of Directors Investor communication Number of institutions Participants
continuously optimizing the structure in terms of gender age professional experience cultural events conducted covered engaged
and educational background among which the proportion of female directors is 43%.To ensure the independence and performance compliance of independent directors each 73 18
independent director is required to submit an annual duty performance report to the
Company's annual general meeting of shareholders explaining their fulfillment of duties. Inquiries have been responded on "Investor Relations Activity Record
Independent directors are also required to perform an annual self-assessment of their the "Interactive Easy" platform Forms" disclosed
independence and submit the findings to the board of directors. The board then evaluates
the independence of the independent directors and issues a special opinion accordingly.Protection of Investors TCL Smart Home is committed to protecting the rights and interests of shareholders and strictly implements various safeguard measures in accordance with the Articles Indicators and Targets
Rights of Association. Shareholders' meetings are held through a combination of on-site
participation and online voting and a cumulative voting system is implemented during
the election of directors fully guaranteeing the participation and voting rights of all Targets Progress during the reporting period
shareholders especially small and medium-sized investors.To maintain good investor communication the Company actively engages in one-on-one * Continue to improve governance structure to ensure that * Hold 2 shareholders' meetings and 6 Board of Directors
research strategy meetings performance presentations and other activities to maintain all major decision-making procedures are compliant meetings.deep interaction with investors. At the same time the Company has established dedicated
sections for "Complaints and Suggestions" and "Investor Relations" on its official and fully deliberated. Place high importance on investor * The proportion of female directors is 43%.website and communicates with investors through investor relations emails hotline relations management strictly manage information disclosure and safeguard investors rights. * Achieve the goal of "zero violations" "zero omissions" and the "Interactive Easy" platform of the Shenzhen Stock Exchange building a diverse and "zero corrections" in information disclosure.communication channel that covers both online and offline.Awards and honors of TCL Smart Home
Awarded by Honor
www.cls.cn 2025 Most Valuable Investment Award in Capital Market
2025 Best Board Secretary
New Fortune Magazine
2025 Best Media Communication Award
China Fund Excellent Board Secretary 2025 China Listed Companies Yinghua Award
Securities Times The 19th Sunshine Board Secretary for Listed Companies in China
JRJ.com The 14th Jinzhi Award for Outstanding Investor Relations Team (IR)
Top 100 Board Secretaries
Ju Dong Mi
Top 100 IRM Companies
69 70Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Consolidate Governance Foundations
Compliant Operation and Risk Management Strategy TCL Smart Home operates on the basis of legality and compliance proactively identifying opportunities and risks in the external environment. Based on this it has established a compliance
operation and risk management system that aligns with its business characteristics ensuring the
orderly operation of various businesses within a standardized and transparent framework.Governance TCL Smart Home has established the Internal Audit and Internal Control Department and appointed full-time internal auditors to independently perform internal audit functions. Potential
The department conducts inspections and assessments on the operational quality of the Time range Stakeholders Impact Main types of risks and opportunities financial
Company and its subsidiaries the completeness and effectiveness of internal controls of impact affected impact
the use of expenses and asset management promoting the effective operation of internal
controls. The internal audit department is directly responsible to the Board of Directors Risks: Insufficient understanding of updates to
and independently exercises audit powers under the guidance of the Audit Committee. Improve compliance policies and regulations may increase compliance
management and risks affecting business continuity and expansion;
Based on this Hefei Home Appliances has established an Internal Control Committee risk identification Short-term Upstream inadequate risk management may weaken the
assigning dedicated personnel to manage the Company's compliance and internal control mechanisms enhance value chain Company's overall response capabilities resulting in
work with a focus on the management of departmental position checks and balances institutional construction medium- adverse impacts in various aspects such as finance Compliance
seal management risk assessment and information management to ensure that the internal control and term Self-operation law customers and reputation.Company's operations are compliant efficient and risk-controllable. Homa Appliances cost risk investigation and
has established a management structure consisting of the Board of Directors internal maintain a fair and Downstream Opportunities: The enterprises continuously track
functional departments and business departments. The Board of Directors is responsible competitive market long-term value chain and analyze domestic and international compliance
for the overall supervision and decision-making of the internal control system the internal environment. requirements enhance their market access capabilities
control functional departments are responsible for the internal control of finance and reduce compliance costs and create more opportunities
operation management and the business departments are responsible for implementing for business expansion.specific internal control measures of their own departments to ensure that various
business processes meet internal control requirements.Additionally TCL Smart Home has established a risk management organizational Impact Risk and Opportunity Management
structure with clear responsibilities and distinct levels forming a "three lines of
defense" risk management framework. This framework systematically defines the
functional division of responsibilities among various departments in risk identification Compliance Operation TCL Smart Home strictly adheres to the laws and regulations of the regions where its business
control and supervision ensuring that various potential risks in daily operations are and operations are conducted. It has established a comprehensive compliance internal control
addressed efficiently and promptly. management system and an internal compliance review mechanism continuously refining and
detailing its compliance internal control management functions and consistently fostering a
positive compliance culture to ensure the Company's compliance and stable operation. During
The three lines of defense for risk management at TCL Smart Home the reporting period the Company organized key personnel from various departments to comprehensively revise 41 internal management systems including the Articles of Association
based on normative documents such as the Guidelines for Articles of Association of Listed
Third Defense Line: Internal Companies and in conjunction with its own operational management needs. This resulted in
audit department the formation of a fundamental system for the Company's internal control further enhancing
standardized operation and management efficiency.* Through regular audits Hefei Home Appliances formulates the Internal Control Management Manual of TCL Home
the Company inspects the Appliances (Hefei) Co. Ltd. and the Articles of Association of TCL Home Appliances (Hefei)
operational status of various Co. Ltd. and carries out compliance management and internal control work based on these
business areas and identifies documents. It regularly reviews and updates core processes such as organizational structure and
potential risks; major decision-making and continuously pays attention to compliance and risk management
Second in various business areas such as finance and procurement to monitor the implementation of
Defense Third * Propose improvement compliance strategies in all aspects. At the same time Hefei Home Appliances also identifies and
First suggestions to the Line Defense responds to external risks such as regulatory changes through regular comprehensive reviews
Defense Management; ensuring the smooth implementation of new business development and major projects and Line
Line * Responsible for independent maintaining stable operations within a compliant framework.auditing identifying and
rectifying issues and Homa Appliances regularly conducts risk monitoring promptly updates internal policies
continuously following up on based on adjustments to domestic and international policies and ensures the effective
and improving progress. implementation and coverage of compliance policies across all business segments through Second Defense Line: Risk management internal audit reviews. Regarding external risks Homa Appliances conducts daily quarterly
and internal control department and annual reviews to cover different types and scopes of situations ensuring efficient
First Defense Line: Business department implementation and continuous improvement of compliance management. In addition
* Formulate and refine relevant systems policies to manage compliance risks in overseas business Homa Appliances follows domestic and
and procedures; international laws and regulations such as the Customs Law of the People's Republic of China * Identify and assess risks during business and the Foreign Corrupt Practices Act and has established the Export Compliance System.* Oversee the risk management work of the first line operations; Through systematic process norms and audit mechanisms it ensures that products meet the
of defense; * The procurement department reduces the risk standards and compliance requirements of the target market.* Regularly carry out training work. of raw material supply by screening high-quality
suppliers. To systematically address external regulatory requirements and prevent operational risks TCL Smart Home continuously promotes compliance training and cultural construction that covers
all employees. The Company has established a regular training system with training content
encompassing interpretation of laws regulations and internal guidelines business ethics and anti-
corruption requirements as well as risk identification and response ability cultivation in business
scenarios aiming to internalize compliance awareness into employees' conscious actions.
71 72Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Consolidate Governance Foundations
Risk Management TCL Smart Home has established the Internal Audit System and set up a full-process
risk management system to supervise and control potential risks. Under the guidance Business Ethics
of the Company Hefei Home Appliances regularly analyzes key risk data using risk
matrices databases and early warning systems updates risk maps and dynamically
monitors market financial and operational risks through evaluation models taking TCL Smart Home has clarified management principles and supervision requirements
measures to address high-risk areas. Homa Appliances under the "three lines of Governance at the group level and supervises its subsidiaries in establishing and continuously
defense" framework has formulated the Risk Management Policy Risk Identification improving their anti-corruption management systems. Homa Appliances has
and Assessment System and Risk Monitoring and Reporting System clarifying the established a comprehensive anti-corruption management system and set up an anti-
Company's risk management objectives risk identification process and risk reporting corruption committee composed of senior management personnel responsible for
mechanism and enhancing the standardization and transparency of risk management. formulating and supervising the implementation of the Company's anti-corruption
strategies to effectively prevent identify and respond to various corrupt behaviors.TCL Smart Home full-process risk management system Strategy TCL Smart Home has always adhered to the "zero tolerance" principle towards corruption. By establishing and improving the anti-corruption governance system
and fostering a culture of integrity it implements anti-corruption and business ethics
Through business risk analysis and internal and external audits identify initiatives to ensure that all employees and partners conduct honest and transparent
potential market operational financial legal and compliance risks of the business practices.Risk Identification Company establish risk tracking checklists and archives and track the
development and changes of risks.Potential
Time range Stakeholders
Impact Main types of risks and opportunities financial
of impact affected
Establish a fixed risk assessment and analysis utilizing data and information impact
systems to analyze the probability and impact of risks. Evaluate the likelihood
Risk assessment Strengthen the requirements Risks: Violating business ethics may trigger
and impact of potential risks across various business and functional for business ethics and Short-term Upstream legal risks and trust crises resulting in financial
departments and categorize and grade the risks. integrity in operations and value chain losses and the loss of customers and partners. Compliance
reduce the interference of medium- costimproper transactions and Self-operation Opportunities: A well-established business
corrupt practices in the market term ethics management system can ensure the Operating
Based on the Company's risk exposure allocate relevant resources to carry environment by clarifying Downstream stability of corporate compliance increase the
Risk control and governance out risk control and governance work such as process construction and special
cost
behavioral norms and long-term value chain trust of customers and partners and facilitate
sorting in order to reduce the overall risk level of the Company. accountability mechanisms. long-term cooperation and profit growth.The audit department regularly organizes risk reporting to the management
Risk monitoring and Impact Risk and Opportunity Managementand the Board of Directors reporting on the progress and results of various risk
reporting management efforts and conducts special reports on major risk events.Anti-commercial TCL Smart Home strictly adheres to the United Nations Convention against
Corruption and relevant national laws establishing and refining an anti-corruption
Bribery Anti-corruption governance system to ensure honest and transparent business practices. Hefei Home
To address various internal and external risks such as fluctuations in raw material Appliances based on its internal management system clearly defines various types
prices market competition exchange rate changes export business and credit and Anti-unfair of corrupt behaviors and their handling methods and legally handles employees
the Company has established a systematic risk management mechanism. Through
Competition involved in criminal acts such as corruption and bribery who have been sentenced. continuous monitoring dynamic assessment and hierarchical control it formulates Homa Appliances has formulated internal regulations such as the Accountability
and implements corresponding prevention and response strategies to enhance risk Management Measures and the Integrity Management Code clarifying operational
resistance ensure business continuity and financial stability and support long-term "red lines" and strictly prohibiting violations such as abuse of power for personal gain
sustainable business development. During the reporting period TCL Smart Home and fraud. It also requires all employees suppliers and partners to jointly abide by
engaged an external accounting firm to conduct financial statement audits and relevant laws regulations and company policies.initiated an internal special inspection of platform expense payments to identify and
prevent operational and financial risks. To further enhance employees' awareness of business compliance TCL Smart Home
continuously conducts anti-corruption training and promotes a culture of integrity.Through diversified educational forms it aims to enhance employees' compliance
awareness and foster a clean and fair corporate atmosphere.Indicators and Targets Furthermore in order to eliminate all forms of monopoly and unfair competition TCL Smart Home strictly adheres to laws and regulations such as the Anti-Monopoly Law
of the People's Republic of China and Anti-Unfair Competition Law of the People's
Republic of China regularly reviews business practices and resolutely prevents
Targets Progress during the reporting period commercial bribery and unfair competition to maintain a fair market competitive
* Improve the compliance internal control system environment. Hefei Home Appliances has established a risk management system
implement compliance strategies ensure the smooth for anti-monopoly and fair competition that encompasses risk monitoring internal
operation of the risk management mechanism strengthen * No major risk events have occurred and no penalties or compliance reviews regular legal training and emergency response plans. Homa
risk prevention and control capabilities and support the fines have been imposed for violations. Appliances explicitly prohibits all types of unfair competition and monopoly
steady development of the business. behaviors and ensures that business activities fully comply with legal requirements
by developing risk response plans conducting regular risk assessments and
embedding compliance review mechanisms in key processes such as pricing sales
procurement and cooperation.
73 74Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Consolidate Governance Foundations
Whistleblower TCL Smart Home has established and improved its internal reporting and feedback Strategy TCL Smart Home has incorporated data security and privacy protection into its overall mechanism to ensure smooth supervision channels and implement the responsibility development strategy continuously strengthening information security construction
Protection system. Hefei Home Appliances provides a 24-hour reporting channel through the OA implementing effective control throughout the entire data process while enhancing the
system and email promises to respond to reporting leads within 24 hours and sets security awareness of all employees. In doing so it effectively protects customer privacy and
up a special investigation team to conduct verification. The investigation results are builds a solid security defense line.publicized on the intranet. The Company also strictly implements the whistleblower
protection policy ensures confidentiality of whistleblower information and prohibits Potential
any form of threat or retaliation. Homa Appliances has established various reporting Time range Stakeholders Impact Main types of risks and opportunities financial
channels including letters and in-person visits employee suggestion boxes dedicated of impact affected impact
phone lines and WeChat complaints encouraging real-name reporting. It also clearly
stipulates strict confidentiality requirements for whistleblower information and materials Risks: Inadequate information management
in the Accountability Management Measures prohibiting disclosure and retaliation. Strengthen the management of information security and privacy Short-term Upstream
and data protection may lead to information
leakage and damage to trust affecting business
protection reduce the risks value chain Compliance collaboration and operational stability.Indicators and Targets posed to users and partners by medium-
cost
information leakage and abuse term Self-operation Opportunities: By establishing a robust
and ensure the privacy and data mechanism for information security and privacy Operating
security of customers and other Downstream protection the Company can enhance data cost value chain
Targets Progress during the reporting period relevant parties. long-term security strengthen trust in cooperation and
provide safeguards for stable operations.* Continuously improve the systematic compliance and
risk management system and firmly implement the * No commercial bribery or corruption incidents have
construction of a culture of integrity that adheres to a occurred and no lawsuits or significant administrative
"zero tolerance" approach to corruption. penalties have been imposed due to unfair competition.Impact Risk and Opportunity Management
Information Security TCL Smart Home strictly adheres to laws and regulations such as the Cybersecurity Law of the People's Republic of China and continuously improves its information security management system
and institutional framework. Hefei Home Appliances has established the Information System Security
Response Plan and the Information Security Management System clarifying the information security
management process and responsibilities. Homa Appliances has established institutional documents
Data Security and Privacy Protection such as the Homa Appliances Information Security Management Standards and the Homa Appliances Network and Data Center Emergency Response Plan and organizes corresponding emergency drills
and skill training based on the above institutional documents to enhance risk response capabilities
strengthening security operations and response mechanisms.Governance TCL Smart Home has established a data security governance system with clear Hefei Home Appliances comprehensively utilizes technical tools such as firewalls antivirus software responsibilities and standardized processes. Under the unified leadership of the Data Leakage Prevention (DLP) systems and situational awareness platforms to establish a multi-
President the IT management department leads the data security work with the level technical protection system. At the same time special data leakage prevention monitoring
participation and execution of various business and functional departments jointly measures are deployed for core devices used to handle highly confidential data providing
promoting the implementation of data security and privacy protection. comprehensive information security protection. Homa Appliances effectively enhances the level of information security protection by deploying systems such as bastion hosts firewalls threat
situational awareness and terminal control.Meanwhile TCL Smart Home continues to promote and improve information security auditing
strengthening the supervision and evaluation of information security implementation. Hefei Home
Data security and privacy protection governance framework of TCL Smart Home Appliances conducts regular internal and external information security audits every year and
obtained ISO 27001 information security management system certification during the reporting
period. Homa Appliances has established an information security audit mechanism that combines
Responsible for approving the overall information security internal and external audits focusing on dimensions such as system implementation system
Leader CEO strategy management norms and technical standards vulnerability scanning and network-wide security traffic monitoring. This proactive approach of the Company as well as making decisions on major aims to identify and rectify potential security risks thereby continuously improving the level of
information security incidents. information security management.Leadership
group In addition to strengthen the construction of information security culture Hefei Home Appliances
Responsible for overall information security planning regularly sends security-themed promotional emails establishes an online curriculum system and
Deputy leader Head of IT Management management standard review and coordination of organizes annual information security assessments covering all employees. The relevant training Department information security construction and participating in and assessments have covered more than 70000 participants effectively enhancing employees'
decision-making regarding information security incidents. security awareness and practical abilities.Information Relevant personnel from Responsible for the implementation of information security
security team the IT Management system construction system formulation and technical
Conducting information security training to establish awareness of confidentiality responsibility
Department support work.On July 25 2025 Homa Appliances organized an information
The head of each department serves as the primary security and confidentiality awareness training activity
responsible person for information security within for newly recruited management trainees with a total
Execution group Business team their department being accountable for enforcing and of more than 150 participants. This training helps new
overseeing information security standards as well as employees establish a security concept at the early stage of
Head of each department/ approving information security permissions. employment laying an important foundation for consciously
branch factory abiding by information security norms in subsequent work.Responsible for inspecting the implementation of
Supervision information security standards regularly reporting relevant
team issues and implementing incentive measures and forming
supervision reports. Homa Appliances conducts training on information security and confidentiality awareness
75 76Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Consolidate Governance Foundations
Business Stability TCL Smart Home has built a multi-layered and highly available network architecture continuously enhancing the reliability and risk resistance of the network
infrastructure. Hefei Home Appliances adopts a model combining dedicated internet
lines with dual-active devices and Software-Defined Wide Area Network (SD-WAN)
technology effectively ensuring the high availability of network connectivity and
optimizing the experience of remote office work and data transmission. Meanwhile
a dual-machine hot standby mechanism is deployed for core devices to avoid single
point failures and further enhance the overall stability and business continuity of the
system. Homa Appliances deploys dedicated internet lines from multiple operators to
achieve automatic failover ensuring redundant and reliable external network access.The internal network construction adopts a "dual-line + dual-device + 5G" approach
providing solid support for production operations and daily office work.Data Security and TCL Smart Home is committed to building a security management mechanism that covers the entire data lifecycle systematically reducing the risks of data leakage
Privacy Protection and abuse. Hefei Home Appliances has formulated the Data Security Management Requirements clarifying internal data classification and grading standards
standardizing the use and control processes of data at all stages of the lifecycle and
ensuring data security. Homa Appliances has implemented the Homa Appliances
Data Center Management Standards strictly managing account permissions
strengthening data classification protection and transmission encryption and
executing regular backups and file access control systematically ensuring data
security and controllability at all stages.TCL Smart Home attaches great importance to customer privacy protection
integrating privacy protection into its business operations and product services.Hefei Home Appliances in accordance with the TCL Industry Privacy Management
System and other privacy management system documents clarifies the management
regulations for personal information in various aspects such as collection processing
use sharing and storage. It strictly implements privacy protection requirements in
the processes of product design and development marketing and other aspects
effectively ensuring customer privacy security.Indicators and Targets
Targets Progress during the reporting period
* Improve the data security and privacy protection system
strictly implement various management measures and * No data security incidents or customer privacy breaches
technical protections and prevent related risks. have occurred.
77 78Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Outlook
Outlook
Looking back on 2025 TCL Smart Home advanced high-quality development by deeply integrating
ESG into its operations. Through green transformation technological innovation and responsible
practices the Company continuously enhanced its brand value and industry influence laying a solid
foundation for its global expansion and sustainable development. Looking ahead TCL Smart Home
will build on this momentum leveraging its role as a Worldwide Olympic Partner to further advance
its global strategy and technological innovation and to shape a smarter future. The Company will
continue to promote green production deepen technological research and development and
enhance service capabilities contributing to the achievement of the United Nations Sustainable
Development Goals.Deepening Green Transformation to Build a Low-Carbon Future
We will remain committed to green and low-carbon development by integrating carbon reduction
principles throughout the entire product lifecycle. Through green technological innovation we aim
to develop energy-efficient and durable products continuously reducing carbon emissions across
the full lifecycle of our products. At the same time we will further improve resource efficiency
promote material recycling and waste reduction and facilitate the transition of production and
operations toward resource-efficient and circular models. We will also work closely with value chain
partners to build a green ecosystem and jointly advance supply chain decarbonization actively
contributing to the achievement of our "carbon peaking and carbon neutrality" goals.Delivering Technology with Purpose and Fostering an Inclusive Ecosystem
We remain committed to high-quality development and to creating value for all stakeholders. For
consumers we will continue to strengthen end-to-end product quality management meeting
user needs with reliable quality and high-quality services while leveraging innovation to deliver
intelligent and healthy living experiences. For employees we will further enhance employee rights
protection and talent development systems expand diversified career pathways and stimulate
employee growth and innovation. For society we will continue to address the needs of vulnerable
groups actively engage in public welfare initiatives and leverage technological innovation to
advance social progress.Strengthening Corporate Governance for Sustainable Growth
We will continue to optimize our ESG governance system establish multi-dimensional
communication mechanisms and actively engage with stakeholders to align corporate development
with societal expectations. At the same time we will further strengthen compliance and internal
control systems improve risk management mechanisms and enhance our capabilities in risk
identification and response providing a solid foundation for long-term stable development through
transparent and standardized governance.Building on momentum and moving forward with determination TCL Smart Home will remain
committed to its vision of becoming a world-leading smart home appliance enterprise. Inspired
by the Olympic spirit we will continue to embed sustainability into our development steadily
advancing our global intelligent and green transformation. By driving industry upgrading through
technological innovation and responding to societal expectations with responsible practices TCL
Smart Home aim to create long-term value while contributing to global environmental governance
social progress and industry development.
79 80Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Appendix
Appendix
Key Performance Table
Material Topics Indicators Unit 2025 Material Topics Indicators Unit 2025
Economic
Performance Total revenue RMB 18530993941.45
Total water consumption m3 1572265.00
Energy and Resource
Total investment in environmental protection Ten Thousand RMB 361.59 Management
Total water withdrawal m3 1840843.00
Water withdrawal intensity m3 / Million Revenue 99.34
Number of penalties incurred by the Company for violations
of environment-related laws and regulations Number 0 Wastewater discharge volume Tons 268578.00
Fines incurred by the Company for violations of
Environmental environment-related laws and regulations
Ten Thousand RMB 0 Wastewater discharge intensity Tons / Million Revenue 14.49
Compliance
Management Number of environment-related lawsuits resulting from Number 0 -- Industrial wastewater Tons 48460.00violations of environment-related regulations
-- Domestic wastewater Tons 220118.00
Number of employee training sessions on environmental
protection Sessions 25 Chemical oxygen demand (COD) discharge volume Tons 3.15
Number of employees' participation in environment
protection training Attendances 13238 Biochemical oxygen demand (BOD) discharge volume Tons 4.42
Total GHG emissions tCO2e 156400.60 Ammonia nitrogen (NH3-N) discharge volume Tons 0.06
Scope 1 (S1) tCO e 14424.98 Total nitrogen (TN) discharge volume Tons 0.082
Response to Climate
Change Scope 2 (S2) tCO e 141975.62 Total phosphorus (TP) discharge volume Tons 0.372
Air pollutant discharge volume m3 3618182895.00
Operational Scope (S1+S2) GHG emissions intensity tCO2e/Million Revenue 8.44
Sulfur dioxide discharge volume Tons 0.23
Total energy consumption Tons of Standard Coal Equivalent 40532.35 Nitrogen oxides discharge volume Tons 1.34
Pollution and Waste
-- Total direct energy consumption Tons of Standard Coal 1707.67 Management Particulate matter discharge volume Tons 0.19Equivalent
VOC Tons 5.62
-- Total indirect energy consumption Tons of Standard Coal Equivalent 38824.67
Waste discharge volume Tons 14609.99
Clean energy consumption Tons of Standard Coal Equivalent 6949.67 Waste discharge intensity Tons / Million Revenue 0.79
Tons of Standard Coal -- Hazardous waste1 Tons 353.15
Energy use intensity Equivalent/ Million 2.19
Energy and Resource Revenue -- E-waste Tons 14.02
Management Natural gas m3 898325.47 -- Non-hazardous Waste Tons 14256.84
Diesel Liter 232206.08 ---- Waste paper cartons Tons 4109.20
Gasoline Liter 24137.08 ---- Waste plastics Tons 599.59
Total electricity consumption kWh 291277290.00 ---- Waste plastic foam (EPS) Tons 74.02
-- Purchased electricity kWh 267575606.00 ---- Manuals Tons 1512
-- Self-generated and consumed photovoltaic power kWh 23701684.00 ---- Scrap iron Tons 7962.03
-- Purchased green electricity kWh 32845709.50 Total recycled and reused waste2 Tons 24.83
1 TCL Smart Home's hazardous waste data includes all dangerous waste generated by the Company.
2 The statistical scope only includes Hefei Home Appliances.
81 82Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Appendix
Material Topics Indicators Unit 2025 Material Topics Indicators Unit 2025
Annual number of patent applications Number 736 Labor contract signing rate / 100%
Social insurance coverage rate / 100%
Annual number of patents granted Number 363
Employee satisfaction rate / 100%
Cumulative number of patents granted3 Number 2725
Number of labor union members Person 11463
Cumulative number of overseas patents granted4 Number 16 Total number of employees Person 14807
Number of intellectual property rights training sessions Sessions 7 By Gender
Number of male employees Person 10394
R&D and Innovation R&D investment Ten Thousand RMB 68029.80
Number of female employees Person 4413
Number of R&D personnel Person 1296
By Age Group
Number of technical personnel Person 1414 Number of employees aged under 30 Person 7705
Ratio of R&D and technical personnel / 18.30% Number of employees aged 30 to 50 Person 6267
Number of employees aged above 50 Person 835
Number of innovative projects Number 34
By Educational Level
Number of industry standards participated in Number 8
Master's degree or above Person 185
Total number of suppliers Number 841 Bachelor's degree Person 1785
Number of suppliers in Chinese mainland Number 804 College degree or below Person 12837
Number of suppliers in Hong Kong Macao and Taiwan Number of employees at management level Person 505Number 10
Supply Chain regions Employee Rights and
Management Protection By Age Group
Number of suppliers in other regions (overseas) Number 27 Management - Aged under 30 Person 38
Number of supplier training sessions Sessions 2 Management - Aged 30 to 50 Person 417
Number of trained suppliers Number 784 Management - Aged above 50 Person 50
Percentage of significant products and service categories Number of employees at senior management level Person 26
assessed for health and safety impacts for improvement / 0 Senior management - Male Person 24
Percentage of sold or shipped products recalled due to / 0 Senior management - Female Person 2safety and health reasons
Number of incidents of non-compliance concerning the Number of employees at middle management level Person 194
health and safety of products and services Incidents 0Product Quality and Middle management - Male Person 154
Safety
Total number of product recall incidents Number 0 Middle management - Female Person 40
Major administrative penalties related to safety and quality Number of employees at junior management level Person 285
of products and services Cases 0
Junior management - Male Person 254
Monetary value related to damages from major liability
accidents concerning product/service safety and quality Ten Thousand RMB 0 Junior management - Female Person 31
Number of customer complaints Number 218 Number of new hires (annual) Person 8214
Number of employee turnovers (annual) Person 8441
Number of product complaints Number 5657
Customer Service Employee turnover rate5 / 36%
Customer service training sessions Sessions 11
Number of employees from ethnic minorities Person 2290
Customer service training attendances Attendances 815 Number of employees with disabilities Person 293
3 Cumulative number of patents granted refers to the number of patents granted to the Company as of the end of 2025. 5 Employee Turnover Rate = (Annual Number of Employee Departures) / (Initial Number of Employees + Annual Number of New Employees)
4 Cumulative number of overseas patents granted refers to the number of overseas patents granted to the Company as of the end of 2025.
83 84Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Appendix
Material Topics Indicators Unit 2025 Material Topics Indicators Unit 2025
Investment in employee training (annual) Ten Thousand RMB 215.55 Total number of directors on the board Person 7
Total sessions of employee training (annual) Sessions 2548
Number of female directors Person 3
Total employee training hours Hour 177020
Percentage of female directors / 43%
By Gender
Training attendances - Male Hour 126959 Number of executive directors Person 0
Training attendances - Female Hour 50061 Number of non-executive directors (NEDs) Person 7
Corporate
Employee Training By Rank Governance
and Development Number of independent non-executive directors (INEDs) Person 3
Training attendances - Senior management6 Hour 1720
Number of board of directors meetings held Number 6
Training attendances - Middle management Hour 6622
Training attendances - Junior employees / Non-management Hour 168675 Number of remuneration committee meetings held Number 1
Total employees receiving regular performance and career Person 3143 Number of nomination committee meetings held Number 0development reviews
Male employees receiving reviews Person 2236 Number of shareholder meetings held Number 2
Female employees receiving reviews Person 907 Number of significant fines and non-monetary sanctions for
Compliant non-compliance with laws and regulations Number 0
Expenses for safe production Ten Thousand RMB 812 Operation and Risk
Management Significant fines for non-compliance with laws and
regulations Ten Thousand RMB 0Number of major safety accidents Number 0
Number of safety inspections / risk assessments Number 395 Number of confirmed corruption incidents Incidents 0
Number of work-related deaths Number 0 Number of employees disciplined or dismissed due to
corruption Incidents 0
Occupational Health Number of work-related injuries Number 42
and Safety Number of contracts with business partners terminated or Incidents 0
Total number of days lost due to work-related injuries Days 792 not renewed due to corruption
Number of employees' occupational diseases Number 0 Number of anti-corruption training sessions Sessions 3
Number of occupational health and safety training sessions Business EthicsSessions 825 Anti-corruption training attendances Attendances 803conducted
Number of persons covered by occupational health and Number of legal actions pending or completed regarding
safety training Attendances 186666 anti-competitive behavior and violations of anti-trust and Incidents 0
monopoly legislation
Community
Development External donation Ten Thousand RMB 202 Number of anti-monopoly and fair competition training
sessions Sessions 1
Number of Party members Number 223
Party Leadership Anti-monopoly and fair competition training attendances Attendances 12
Number of new Party members Number 28
6 The statistics cover the number of employees at senior management levels.
85 86Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Appendix
Index
Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—
Sustainability Report (For Trial Implementation) Index
Chapter Guidelines Disclosure location Chapter Guidelines Disclosure location
About the report Supply Chain Risk Articles 44 - 45 Supply chain
Chapter I General Provisions Articles 1 - 10 Management managementDouble materiality
assessment
Equal Treatment of
Small and Medium-Sized Article 46 Supply chain management
Chapter II Disclosure of Sustainability Framework Articles 11 - 19 ESG governance Section 3 Suppliers and Enterprises
Customers
Product and Service Safety
Section 1 Addressing Article 47 Product quality and safety
Climate Change Addressing climate change Articles 20 - 28
Response to climate and Quality
change
Data Security and Customer Article 48 Data security and privacy
Pollutant Emissions Article 30 Pollution and waste Privacy Protection protectionmanagement
Employee rights and
Waste Disposal Article 31 Pollution and waste protectionmanagement
Section 2 Pollution Section 4 Employees Employees Articles 49 - 50
Employee training and
development
Prevention and Ecosystem Ecosystem and Biodiversity
Protection Conservation Article 32 / Occupational health and
safety
Chapter III
Disclosure of
Environmental Environmental
Information Environmental compliance compliance management Corporate Governance Article 51 ESG governance
management Article 33 Pollution and waste
management
Section 1 Sustainability Supply chain
Governance Mechanism Due Diligence Article 52 management
Energy Utilization Articles 34 - 35 Energy and resource management
Communication with Article 53 Communication with
Section 3 Resource Stakeholders stakeholders
Utilization and Circular Water Resource Utilization Article 36 Energy and resource
Chapter V
Economy management
Disclosure of
Sustainability
Governance Compliance Operation Article 54 Compliant operation
Information and risk management
Circular Economy Article 37 Energy and resource management
Compliant operation
Section 2 Business Anti-Commercial Bribery Article 55 and risk management
Rural Revitalization Articles 38 - 39 / Conducts and Anti-Corruption Business ethics
Section 1 Rural
Revitalization and Social
Contribution
Social Contribution Article 40 Community Development Anti-Unfair Competition Article 56 Business ethics
Chapter IV
Disclosure of
Social Information Product quality and safety
Innovation-Driven Article 42 Article 57 Index
Section 2 Innovation-Driven R&D and innovation Chapter VI Supplementary Provisions and Interpretation
and Technological Ethics
Article 58 Greenhouse Gas
Technology Ethics Article 43 / Verification Statement
87 88Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Appendix
GRI Index
Disclosure Chapter Disclosure Chapter
GRI 1：Foundation2021 2-26 Mechanisms for seeking advice and raising concerns Employee rights and protection，Business ethicsGRI 1 Introduction key concepts and standards About the Report
2-27 Compliance with laws and regulations Compliant operation and risk management
GRI 2：General disclosures 2021
2-28 Membership associations /
2-1 Organizational details About TCL Smart Home
2-29 Approach to stakeholder engagement Communication with Stakeholders
2-2 Entities included in the organization's sustainability reporting About the Report 2-30 Collective bargaining agreements Employee rights and protection
2-3 Reporting period frequency and contact point About the Report GRI 3：Material Topics2021
2-4 Restatements of information About the Report 3-1 Process to determine material topics Double materiality assessment
2-5 External assurance / 3-2 List of material topics Double materiality assessment
2-6 Activities value chain and other business relationships About TCL Smart Home 3-3 Management of material topics Double materiality assessment
2-7 Employees Employee rights and protection GRI 101: Biodiversity 2024
2-8 Workers who are not employees / 101-1 Policies to halt and reverse biodiversity loss Environmental compliance management
2-9 Governance structure and composition Corporate governance 101-2 Management of biodiversity impacts Environmental compliance management
2-10 Nomination and selection of the highest governance body Corporate governance
101-3 Access and benefit-sharing /
2-11 Chair of the highest governance body Corporate governance
101-4 Identification of biodiversity impacts /
2-12 Role of the highest governance body in overseeing the management of impacts ESG governance 101-5 Locations with biodiversity impacts /
2-13 Delegation of responsibility for managing impacts ESG governance 101-6 Direct drivers of biodiversity loss /
2-14 Role of the highest governance body in sustainability reporting ESG governance 101-7 Changes to the state of biodiversity /
2-15 Conflicts of interest Business ethics 101-8 Ecosystem services /
2-16 Communication of critical concerns Communication with stakeholders GRI 102: Climate Change 2025
2-17 Collective knowledge of the highest governance body / 102-1 Transition plan for climate change mitigation Response to climate change
2-18 Evaluation of the performance of the highest governance Corporate governance 102-2 Climate change adaptation plan Response to climate change body
2-19 Remuneration policies Employee training and development 102-3 Just transition /
2-20 Process to determine remuneration Employee training and development 102-4 GHG emissions reduction targets and progress Response to climate change
2-21 Annual total compensation ratio / 102-5 Scope 1 GHG emissions Response to climate change
2-22 Statement on sustainable development strategy Message from the Board of Directors 102-6 Scope 2 GHG emissions Response to climate change
2-23 Policy commitments ESG governance 102-7 Scope 3 GHG emissions /
2-24 Embedding policy commitments ESG governance 102-8 GHG emissions intensity Response to climate change
Environmental compliance management， 102-9 GHG removals in the value chain /
2-25 Processes to remediate negative impacts Product quality and safety，Employee rights
and protection，Business ethics 102-10 Carbon credits /
89 90Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Appendix
Disclosure Chapter Disclosure Chapter
GRI 103: Energy 2025 207-4 Country-by-country reporting /
103-1 Energy policies and commitments Energy and resource management GRI 301：Materials2016
103-2 Energy consumption and self-generation within the Energy and resource management 301-1 Materials used by weight or volume Energy and resource managementorganization
103-3 Upstream and downstream energy consumption / 301-2 Recycled input materials used Energy and resource management
103-4 Energy intensity Energy and resource management 301-3 Reclaimed products and their packaging materials Energy and resource management
103-5 Reduction in energy consumption Energy and resource management GRI 303：Water and Effluents2019
GRI 201：Economic Performance2016 303-1 Interactions with water as a shared resource Energy and resource management
201-1 Direct economic value generated and distributed Employee rights and protection，Community 303-2 Management of water discharge-related impacts Pollution and waste managementdevelopment
201-3 Defined benefit plan obligations and other retirement plans Employee rights and protection 303-3 Water withdrawal Energy and resource management
201-4 Financial assistance received from government / 303-4 Water discharge Pollution and waste management
GRI 202：Market Presence2016 303-5 Water consumption Energy and resource management
GRI 305：Emissions2016
202-1 Ratios of standard entry level wage by gender compared to local minimum wage /
305-6 Emissions of ozone-depleting substances (ODS) /
202-2 Proportion of senior management hired from the local community /
305-7 Nitrogen oxides (NOx) sulfur oxides (SOx) and other
GRI 203：Indirect Economic Impacts2016 significantair emissions
Key Performance Indicators
203-1 Infrastructure investments and services supported Community development GRI 306：Waste 2020
Supply chain management，Community 306-1 Waste generation and significant waste-related impacts Pollution and waste management203-2 Significant indirect economic impacts development
306-2 Management of significant waste-related impacts Pollution and waste management
GRI 204：Procurement Practices2016
204-1 Proportion of spending on local suppliers Supply chain management 306-3 Waste generated Pollution and waste management
GRI 205：Anti-corruption2016 306-4 Waste diverted from disposal Pollution and waste management
205-1 Operations assessed for risks related to corruption Business ethics 306-5 Waste directed to disposal Pollution and waste management
205-2 Communication and training about anti-corruption policies and procedures Business ethics
GRI 306：Effluents and Waste 2016
205-3 Confirmed incidents of corruption and actions taken Business ethics 306-3 Significant spills Pollution and waste management
GRI 206： Anti-competitive Behavior2016 GRI 308：Supplier Environmental Assessment2016
206-1 Legal actions for anti-competitive behavior anti-trust and 308-1
New suppliers that were screened using environmental
monopoly practices Business ethics criteria
Supply chain management
GRI 207：Tax2019 308-2 Negative environmental impacts in the supply chain and actions taken Supply chain management
207-1 Approach to tax /
GRI 401：Employment2016
207-2 Tax governance control and risk management / 401-1 New employee hires and employee turnover Key Performance Indicators
207-3 Stakeholder engagement and management of concerns related to tax /
91 92Guangdong TCL Smart Home Appliances Co.Ltd. Environmental Social and Governance Report 2025 Appendix
Disclosure Chapter Disclosure Chapter
401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees Employee rights and protection
GRI 408：Child Labor2016
408-1 Operations and suppliers at significant risk for incidents of Supply chain management、Employee rights
401-3 Parental leave Employee rights and protection child labor and protection
GRI 402 Labor/Management Relations2016 GRI 409：Forced or Compulsory Labor2016
409-1 Operations and suppliers at significant risk for incidents of Supply chain management、Employee rights 402-1 Minimum notice periods regarding operational changes / forced or compulsory labor and protection
GRI 403：Occupational Health and Safety2018 GRI 410：Security Practices2016
403-1 Occupational health and safety management system Occupational health and safety 410-1 Security personnel trained in human rights policies or procedures /
403-2 Hazard identification risk assessment and incident investigation Occupational health and safety GRI 411：Rights of Indigenous Peoples2016
411-1 Incidents of violations involving rights of indigenous 403-3 Occupational health services Occupational health and safety peoples /
403-4 Worker participation consultation and communication on Occupational health and safety GRI 413：Local Communities2016occupational health and safety
413-1 Operations with local community engagement impact Community development
403-5 Worker training on occupational health and safety Occupational health and safety assessments and development programs
413-2 Operations with significant actual and potential negative 403-6 Promotion of worker health Occupational health and safety impacts on local communities /
403-7 Prevention and mitigation of occupational health and Occupational health and safety GRI 414：Supplier Social Assessment2016safety impacts directly linked by business relationships
414-1 New suppliers that were screened using social criteria Supply chain management
403-8 Workers covered by an occupational health and safety management system Occupational health and safety
414-2 Negative social impacts in the supply chain and actions taken Supply chain management
403-9 Work-related injuries Key Performance Indicators
GRI 415：Public Policy2016
403-10 Work-related ill health Occupational health and safety
415-1 Political contributions /
GRI 404： Training and Education2016
GRI 416：Customer Health and Safety2016
404-1 Average hours of training per year per employee Key Performance Indicators
416-1 Assessment of the health and safety impacts of product Product quality and safety
404-2 Programs for upgrading employee skills and transition
and service categories
assistance programs Employee training and development
416-2 Incidents of non-compliance concerning the health and Product quality and safety
404-3 Percentage of employees receiving regular performance
safety impacts of products and services
and career development reviews Key Performance Indicators GRI 417：Marketing and Labeling2016
GRI 405：Diversity and Equal Opportunity2016
417-1 Requirements for product and service information and Customer service
405-1 Diversity of governance bodies and employees Corporate governance，Employee rights and
labeling
protection
417-2 Incidents of non-compliance concerning product and service information and labeling Customer service
405-2 Ratio of basic salary and remuneration of women to men /
Incidents of non-compliance concerning marketing
GRI 406：Non-discrimination2016 417-3 communications Customer service
406-1 Incidents of discrimination and corrective actions taken Employee rights and protection GRI 418：Customer Privacy2016
Substantiated complaints concerning breaches of
GRI 407：Freedom of Association and Collective Bargaining2016 418-1 customer privacy and losses of customer data Data security and privacy protection
407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk Employee rights and protection
93 94Guangdong TCL Smart Home Appliances Co.Ltd.
Stock Code：002668
Website：https://www.tclsmarthome.com/
Address：2nd Floor No. 59 Middle Nantou Avenue Nantou Town
Zhongshan City Guangdong Province China
Hefei Home Appliances：0551-62558000
Homa Appliances：400-700-1770
沪公网安备31011802005267号
