CONTENTS

About This Report 01 01 Governance and Innovation Supply Chairman's Message 03 Compliance 02 and Quality 03 Chain

Step into LAZZEN 05

Sustainable Development Management 19 Innovation-Driven Development 39 Supplier Management 67

Honor 2025 07

Corporate Governance 22 Intelligence Ecosystem Products 47 Sustainable Supply Chain 68

Risk Compliance 27 Digital Transformation 51 Supply Chain Security 70

Key Performance 121 Business Ethics 33 Product Quality 54 Treat Small and Medium-Sized 72

Enterprises Equally

Indicator Index 129 Customer Service 59

AA1000 Independent Assurance Statement 135

Information Security and Customer Privacy 63

Protection

04 Environment 05 Employee 06 Collaboration and Special Topic: Zero Carbon Manufacturing Public Welfare

Makes Green Future 09

Responding to Climate Change 75 Employee Rights 103 Industry Collaboration 117

Environmental Compliance Management 82 Employee Care 106 Social Welfare 120

Resource Management 86 Talent Development 111

Pollutant Emissions 92 Occupational Health and Safety 112

Waste Management 96

Chemical Management 99

Biodiversity Conservation 1002025 Environmental Social and Governance Report

About This Report Accuracy

LAZZEN will do our best to ensure the accuracy of the information. The quantitative data presented in the report are

based on actual data of our internal production and operation and there are no false records misleading statements

or material omissions.Report notes Completeness

The information in this report cover LAZZEN and the companies we controls. At the same time this report also

This report is the fourth ESG report released by Shanghai Liangxin Electrical Co. LTD. (hereinafter referred to as discloses relevant information in full based on our circumstances."LAZZEN""we" or "the company") to stakeholders. This report provides detailed information on our practices and

performance in environmental social and governance areas for the year 2025 aiming to systematically respond to

the expectations and requirements of all stakeholders. Clarity

The figures data references and technical terms in this report which involve complex understanding will be

sourced and explained in plain language.Report scope

Background of Sustainable Development

This report covers the period from January 1 2025 to December 31 2025 (referred to as the "reporting period") LAZZEN actively responds to sustainable development trends identifies stakeholders and key topics in light of

and focuses on the performance of environmental social and governance responsibilities in 2025. For the sake of the characteristics of our electrical equipment industry and business operations and engages in stakeholder

continuity and comparability some parts appropriately trace back to previous years. communication. For details please refer to the section on sustainable development management.Report data description Balance

The content of this report truly reflects the objective situation of LAZZEN's operation without exaggeration or

The financial data in the report is derived from our audited financial reports and the other data are derived from our misleading description fully discloses the positive and negative information that exists in our operation process and

internal documents and aggregated information statistics. Unless otherwise stated the currency types and amounts strives to be fair objective and balanced.involved in this report are measured in CNY. There are no false records misleading statements or material omissions

in this report and we are responsible for the truthfulness accuracy and completeness of the report.Verifiability

The cases management systems and quantitative data in this report are derived from actual circumstances in our

Basis of preparation operations and all information is traceable.Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 17 - Sustainable Development Report (Trial) Quantification

Shenzhen Stock Exchange Self-Regulatory Instructions for Listed Companies No. 3 - Preparation of Sustainable

Development Reports The quantitative data disclosed in this report will be disclosed as continuously as possible and the reliability of the

Ministry of Finance Corporate Sustainability Disclosure Standards - Basic Standards (Trial) disclosed data will be continuously improved to demonstrate the development trend of our ESG management level.Finance Department Corporate Sustainability Disclosure Standard No. 1 - Climate (Trial)

Global Sustainability Standards Board Sustainability Reporting Standards (GRI Standards)

Report release and contact information

Reporting preparation principles You can consult or download the electronic version of this report on the official website of Shenzhen Stock Exchange

(www.szse.cn). If you have any questions or suggestions about this report please feel free to contact us at any time:

Timeliness Tel: 86-21-68586699

After the end of fiscal year 2025 we immediately initiated the preparation of this report. After being reviewed by the Fax: 86-21-23025796

board of directors the report was released and the disclosure time was no earlier than the Annual Report and no Email: lazzen@lazzen.com

later than April 30. Address: 2000 South Shenjiang Road Pudong New Area Shanghai

01 022025 Environmental Social and Governance Report

Chairman's Message

Dear colleagues partners and friends from all walks of life: For employees we improve the compensation and benefits system build a "dual-track" career development path

and strengthen safety production and occupational health management at the same time achieve full coverage

2025 is a crucial year for LAZZEN to deepen our ESG governance and practice the concept of sustainable of work injury insurance and work safety liability insurance and create a safe healthy and growing working

development. We are committed to the vision of "Becoming a global leader in smart low-voltage electrical solutions" environment for employees. To our customers we adhere to the principle of "Customer-oriented quality as dignity"

and the mission of "unlocking electrical intelligence and empowering human and nature to live in harmony" moving and through our customer service system covering both domestic and overseas we provide 7×24-hour rapid

steadily in the ESG field and responding to the trust and expectations of all parties with concrete actions. This year response services to global customers and continuously enhance customer satisfaction.we have further refined our ESG organizational management structure deeply integrated the concept of sustainable

development into strategic planning and daily operations and formed a full-chain responsibility system led by the We continuously improve the modern enterprise system optimize the governance structure and form a decision-

decision-making level driven by the management level and implemented by the executive level to ensure the making and management system with clear rights and responsibilities and standardized operations. We continuously

orderly implementation and effectiveness of all ESG initiatives. enhance the quality of information disclosure and communication with investors actively respond to investors'

concerns and demands ensure the stable operation and long-term value creation of LAZZEN and effectively

With "Zero Carbon Manufacturing" as our core we are fully committed to the green transformation. As a leading Zero safeguard the rights and interests of all shareholders and stakeholders. We have strengthened risk compliance

Carbon demonstration plant in China the Hangzhou Bay Mega Factory has built an integrated innovation scenario management established a "three-line defense" risk prevention and control system improved anti-corruption and

of "Photovoltaic energy storage direct current flexibility (PEDF)" with a total annual carbon emission reduction of anti-monopoly systems and created a clean and upright business environment.about 20000 tons in the future. We have been awarded the Five-Star Zero Carbon Factory Certification and selected

as a demonstration project of the National Key Research and Development Program during the 14th Five-Year Plan. Looking ahead LAZZEN will continue to focus on sustainable development deepen ESG governance and make

We have established a three-tier collaborative architecture of "equipment - control - platform" and achieved full- continuous efforts in areas such as Zero Carbon technology research and development digital transformation talent

chain resilient carbon reduction from energy production to terminal consumption through self-developed energy cultivation and supply chain collaboration. We will further refine our Zero Carbon solutions drive more customers

and carbon systems. At the same time we continuously optimize resource utilization efficiency and effectively to achieve green transformation and continue to steadily move forward on the path of empowering harmonious

promote energy conservation emission reduction and circular economy through measures such as water recycling coexistence between humans and nature!

waste classification and disposal and energy-saving technological transformation responding to the national "dual

carbon" goals with concrete actions.We adhere to the principle of "People-oriented chain drive for win-win" and fulfill our responsibilities in all aspects. Ren Silong Chairman

Shanghai Liangxin Electrical Co.LTD.

03 042025 Environmental Social and Governance Report

Step into LAZZEN Major Events of 2025

Company Profile LAZZEN and KINGJEE Group officially

signed a strategic cooperation

agreement in Nanjing. Both sides will

LAZZEN was established in 1999 and listed on the Shenzhen Stock Exchange in 2014 (stock code: 002706.SZ). carry out in-depth cooperation on

Positioned as an expert in smart low-voltage electrical solutions LAZZEN focuses on the research and development LAZZEN Magic Cube "Tianqi" series

production sales and service of medium and low-voltage electrical appliances vehicle-mounted devices products and smart home solutions to LAZZEN's Hangzhou

instruments and meters smart energy and carbon and smart living. Our products and solutions are widely used in jointly create a new model of high-end Bay Mega Factory was

various scenarios from power generation transmission and distribution to power consumption. Our business covers smart home. certified by Bureau

more than 30 sub-sectors in areas such as smart computing centers new energy infrastructure rail transit smart Veritas for ISO 50001

buildings power grids industrial control etc. energy management

LAZZEN has always adhered to the core value of "achieving customers" and our service network covers more system. LAZZEN Hangzhou

than 140 cities in China and more than 30 countries and regions overseas. Through end-to-end organization and Bay Mega Factory At the "2025 Brand Day

system we provide professional and efficient services to customers worldwide. LAZZEN drives product research and was awarded the Trademark Brand Development

development based on customer needs and our Research and Development (R&D) Center has been recognized as five-star standard Conference" hosted by the

a "National Enterprise Technology Center". We also have an enterprise postdoctoral research workstation and our for Zero Carbon China Trademark Association

laboratory has been accredited by both the China National Accreditation Service for Conformity Assessment(CNAS) Factory.LAZZEN was awarded the title On July 11 "Good House

and Underwriters Laboratories. of "AAA Well-Known Trademark Opens Today" - the opening

Brand". ceremony of the LAZZEN

Brand Positioning Core Values Good House Co-built

showroom was grandly

Expert in smart low-voltage electrical solutions Smart Green Safety Customized Service LAZZEN and HOKO held at LAZZEN's Shanghai

Electric signed a On June 5 LAZZEN's headquarters.strategic cooperation new smart showroom

agreement. Both at Hangzhou Bay Mega

Vision Mission sides will give full Factory opened grandly.Aiming to Be a Global Leader in Smart Low-Voltage Empowering Harmony Between Humanity and play to respective

Electrical Solutions Nature with Smart Electrical Solutions synergy advantages in

technology research LAZZEN's Safety Integrity

and development Level (SIL)-certified frame

Development Strategy and market circuit breaker has passed

expansion to jointly the "SIL2" Certification. On September 25th

Focus on smart low-voltage Adhere to a mid-to-high-end Upgrade energy efficiency with build an innovative "Jinghong" - 2025 LAZZEN

electrical select target market positioning and focus on intelligent distribution enhance user development path Smart Power Distribution

aggregation strategy and advance benchmark customers in sub- experience with smart living and of smart low-voltage Tasting Event and Partner international development. sector. empower the new power system with

new energy electrical technology. electrical under the Ecosystem Conference

guidance of the "dual was successfully held in

carbon" goals! Hangzhou Bay.Values

Customer Success Proactive and Enterprising Seek Truth and Self-Reflection Open and Collaborative

Customer-oriented Aim high be innovative Respect the laws be Embrace different

constantly meet customer take responsibility be a realistic be honest and cultures listen to different

needs help customers trusted industry expert for trustworthy self-criticize opinions and suggestions

succeed and achieve the customers. due to internal factors embrace change recruit

common development of constantly surpass always talents concentrate

customers companies maintain the spirit of hard efforts on a single point

teams and individuals. work and struggle. and strive for overall

excellence.

05 062025 Environmental Social and Governance Report

Honor 2025

Shanghai LAZZEN Haiyan LAZZEN

Shanghai Design Key Cultivated Advantageous Zhejiang Green and Low-Carbon

Innovation Center Enterprises with Independent

Outstanding Contribution High-Tech Enterprise National Advanced Smart Factory Factory

Intellectual Property Rights Award for Pudong New Area

Economy and Information Technology Department of Zhejiang Economy and Information Technology Economy and Information Technology Department of Zhejiang Shanghai Municipal Commission of

Economy and Information Technology Shanghai Customs Shanghai Pudong New Area Government

Zhejiang Provincial Department of Finance Department of Zhejiang Zhejiang Provincial Development and Reform CommissionZhejiang Provincial Tax Service State Taxation Administration Department of Ecological Environment of Zhejiang

2025 China Low-Voltage

Electrical Appliance Market Sales Certificate of Evaluation of Well-

Top 20 Outstanding Brands

of Shanghai Manufacturing Zhejiang Industrial Zhejiang Enterprise Research Zhejiang Provincial Water-

Leadership Award Known Trademark Brand Individual Champions Internet Platform Institute Saving EnterpriseEconomy and Information Technology Department of Zhejiang

Shanghai Municipal Commission of Shanghai Federation of Industrial Economy and Information Technology Economy and Information Technology Housing and Urban-Rural Construction Department of Zhejiang Province

Economy and Informatization Technology China Trademark Association Economics Department of Zhejiang Department of Zhejiang Department of Water Resources of Zhejiang ProvinceZhejiang Provincial Office of Water Conservation

2025 Shanghai Hardcore

Techology Companies - Industry Advanced Trade Union of

Zhejiang Provincial Benchmark

Kangqiao Industrial Zone 2025 Diamond Partner Unit Enterprises for Artificial Jiaxing Municipal Green Factory

Jiaxing Municipcal Cleaner

Standards List TOP 50 Intelligence Applications Production Enterprise

Shanghai Industrial Technology and Trade Union of Kangqiao Industrial Zone Building Electrical Branch of the Economy and Information Technology Jiaxing Municipal Bureau of Economic Jiaxing Municipal Bureau of Economic

Innovation Association Zhangjiang Science City Shanghai Architectural Society of China Department of Zhejiang and Information Technology and Information Technology

Diamond Partner of Jiangsu Zhejiang Provincical Specialized

Province Building Electrical iF Design Award China Best Managed Companies and Sophisticated Small and Top 20 Industrial Enterprises National Key R&D Program of

Academic Annual Conference 2022-2025 Medium-Sized Enterprises (SMEs) the 14th Five-Year Plan - PEDF

Building Electrical Committee of Jiangsu Demonstration Project - Haiyan iF Industrie Forum Design Deloitte China Management Excellence Economy and Information Technology Haiyan County Committee of the Communist Party of ChinaCivil Engineering & Architectural Society LAZZEN Office Building PEDF Department of Zhejiang The People's Government of Haiyan County Project

Research and Application Project of Key

2025 China IDC Industry Innovation Technology Product Award - Smart Member of the 10th Council of the Jiaxing Vocational & Technical College Haiyan Branch Campus Technologies of PEDF Building DC Power

Computing 800V DC System Solid-State Circuit Breaker Product High Voltage Switchgear Branch Industry-Education Integration Base Distribution System(2025-2030)

China IDC Industry Annual Conference Organizing Committee High Voltage Switchgear Branch of China Electrical Equipment Industry Association Jiaxing Vocational & Technical College

Liangyun Technology Smart Electrician

Software Enterprise Certificate High-Tech Enterprise High-Tech Enterprise National-Level Specialized Sophisticated Distinctive and Innovative "Little Giant" Enterprises

China Software Industry Association Shanghai Municipal Science and Technology Commission

Shanghai Municipal Science and Technology Commission Shanghai Municipal Commission of Economy and Information Technology

07 082025 Environmental Social and Governance Report

Special Topic

Zero Carbon Manufacturing

Makes Green Future

LAZZEN Hangzhou Bay Mega Factory - Creating a Leading Zero Carbon

Demonstration Plant in China

LAZZEN has built the Hangzhou Bay Mega Factory into a leading Zero Carbon demonstration plant in China

relying on its system solution capabilities in intelligent power distribution and energy management to

create an integrated innovative scenario of source-grid-load-storage and PEDF.LAZZEN's Zero Carbon plant integrates 4.695MW distributed rooftop photovoltaics 4.75MW/10MWh National Key Research and Development

electrochemical energy storage and 62 smart AC and DC V2G charging piles. And fully deploy building air Zero Carbon Plant Verification Statement LEED Green Building Certification Program of the 14th Five-Year Plan

conditioning and lighting automation industrial water machine air conditioning automation DC flexible

load management intelligent distribution management microgrid management smart energy and carbon

management systems and equipment etc. The project is equipped with LAZZEN smart power distribution Clean Energy

equipment and PX power distribution expert system to

achieve precise metering of end-point sub-item energy

consumption and carbon emissions. The LAZZEN microgrid

solution with the MX microgrid expert system and microgrid The Hangzhou Bay Mega Factory has currently built a 4.695-megawatt distributed photovoltaic system and plans to

controller achieves source-grid-load-storage optimized add an additional 7.15-megawatt wind power installation by 2026. This project has already made some significant

scheduling through the leading LAZZEN artificial intelligence progress in 2025. Through the dual drive of "self-generation for self-use + purchase of green electricity" the plant

(AI) optimized scheduling strategy algorithm and reduces has achieved 100% green power supply - nearly 20% of which comes from the renewable energy facilities built by

carbon dioxide emissions by approximately 3800 tons per the plant itself and the rest is supplemented by purchasing certified green electricity and green certificates. This

year. When the distributed 7.15MW wind turbine project is diversified green power structure not only significantly reduces Scope 2 carbon emissions but also provides a stable

put into operation and integrated into the plant's microgrid green energy foundation for the carbon reduction operations at the manufacturing end.in 2026 the annual green power generation of the LAZZEN

Zero Carbon plant project will reach approximately 20

million kilowatt-hours and the total annual carbon

reduction of the plant will be approximately 20000 tons. Hangzhou Bay Mega Factory

With systematic practices in green manufacturing and deep decarbonization the plant has received multiple

authoritative recognitions:

Recognized as Zhejiang Provincial Green Low-Carbon Factory

Through Bureau Veritas third-party verification we were awarded the Five-star Certification of Zero Carbon Plant

in accordance with the Evaluation Specification of Zero Carbon Factory (T/CECA-G 0171-2022)

Obtain the PAS2060 Carbon Neutrality Certificate certified by Bureau Veritas.Selected as a demonstration project of Key Technologies and Equipment for Urban Sustainable Development

under the National Key Research and Development Program of the 14th Five-Year Plan

Recognized as a New Energy High-Proportion Application Demonstration Project by the Energy Bureau of

Zhejiang Province

Received LEED Green Building Certification

The above achievements mark that LAZZEN's low-carbon transformation in operation has entered the leading

ranks of the industry providing a replicable and verifiable technical paradigm for the construction of Zero Carbon

manufacturing plants. Distributed photovoltaic

09 102025 Environmental Social and Governance Report

Resilient carbon reduction

Data security and autonomy: The PX system uses

In the construction of Zero Carbon Plant the distribution system as the central link connecting new energy an on-premises deployment architecture and all

generation and multiple loads needs to have panoramic perception intelligent decision-making and millisecond- data (energy consumption data carbon emissions

level control capabilities. In the Hangzhou Bay Mega factory LAZZEN builds an elastic carbon reduction system data equipment operation data) are stored on

covering the entire chain of "source-grid-load-storage- charging" by integrating the software and hardware synergy servers within the park. This means relying on the

of the MX Microgrid Expert System and the LEC300 Microgrid Coordination Controller based on the PX Power public network and even if the external network is

Distribution Expert intelligent distribution system. interrupted local monitoring and control remain available.PX Power Distribution Expert

PX Power Distribution Expert

PX Power Distribution Expert is a localized smart power distribution management platform developed by

LAZZEN for Zero Carbon plants. Its core value lies not only in enhancing the safety and operational efficiency

of the power distribution system but also in providing a solid adjustable and quantifiable underlying

support for "resilient carbon reduction". Under the Zero Carbon goal the carbon reduction path of the plant MX Microgrid Expert

cannot rely on a single rigid means but must have the ability to dynamically adjust according to energy

demand green power supply electricity price mechanism and external policies - the PX system empowers

the plant to reduce carbon resiliently through deep perception and fine control. MX Microgrid Expert System is a smart energy management platform developed by LAZZEN for park-level

microgrids. It covers the five core links of the energy system: power generation power distribution power

The system is fully integrated with LAZZEN's self-developed smart circuit breakers multi-functional meters consumption energy storage and charging. By connecting to LAZZEN's self-developed collection metering

and environmental sensors from the main distribution room to the end circuit collecting multi-dimensional control and protection devices it achieves panoramic visual monitoring integrated operation control and

data such as current voltage power energy circuit breaker contact temperature operation frequency and safe and reliable guarantee of energy equipment throughout the domain.health status in real time transforming the traditional "black box" distribution system into a transparent and

intervenable digital system. Based on this PX has achieved the following key capabilities that directly serve

energy conservation and carbon reduction:

With an intuitive 2.5D/3D dashboard managers can always keep track of:

Real-time power generation (PV/wind) and power consumption

Precise metering of sub-item energy consumption: The system automatically generates pie charts trend Energy storage charging and discharging status and revenue strategies

curves and comparative analyses of energy consumption composition based on fine statistics of electricity Charging station operating efficiency and revenue statistics

usage types such as light air conditioning power sockets etc. to help managers monitor and analyze;

Analyze energy consumption and carbon emissions data

Carbon emissions back to the loop level: By combining grid emission factors carbon emissions are Abnormal fault alerts and operational suggestions

associated to specific equipment or areas to make carbon reduction measures quantifiable and verifiable;

Load rigid regulation support: Under the premise of ensuring safety support multiple rigid regulation

means such as remote opening and closing timed control and scene linkage (such as automatic light and The system also supports intelligent regulation of key

air conditioning off in "off-duty mode") in combination with the microgrid dispatching strategy to achieve energy-consuming equipment such as lighting and air

the transfer of electricity usage time periods; conditioning including automatic switching between

"day/night mode" and remote startup/shutdown

Green power consumption synergistic response: PX seamlessly integrates with the upper-level park of air conditioners which enhances comfort while

microgrid system. When a surplus of photovoltaic output is detected it can automatically execute the achieving energy conservation and carbon reduction.synergistic strategy temporarily activate the energy storage charging circuit or activate the adjustable load

to increase the green power self-use rate;

Demand critical active intervention: Real-time monitoring of the total incoming line power and rapid

removal of non-critical loads when approaching the demand threshold to avoid purchasing high-priced

and high-carbon mains power or triggering fines;

Equipment health early warning drives energy efficiency improvement: PX builds a full life cycle health

model of circuit breaker equipment based on predictive indicators such as the number of circuit breaker MX Microgrid Expert

operations temperature rise and aging trends to detect deteriorating equipment in advance and reduce

hidden energy consumption losses;

11 122025 Environmental Social and Governance Report

LEC300 Microgrid Coordination Controller Carbon reduction through equipment

In the smart energy system of Zero Carbon plants the LEC300 microgrid coordination controller is the core

device for achieving local real-time control and optimization. Designed specifically for new energy stations The Hangzhou Bay Mega Factory was fully integrated with the Zero Carbon concept at the early planning stage.it is deployed in key links such as source grid load storage and charging responsible for all-element data The office building has obtained LEED Green Building Certification and the production plant is applying for Green

collection and millisecond-level closed-loop control and maintains stable communication with the upper- Industrial Building Certification. Through passive designs such as high-performance building envelope optimized

level MX microgrid expert system uploads operational data receives dispatch instructions and forms an natural lighting and improved thermal performance the initial load requirements of systems like air conditioning

edge-cloud collaborative architecture. and lighting are significantly reduced thus reducing energy consumption from the source.Based on this the plant implements full life-cycle energy efficiency management for all energy-consuming

equipment:

LEC300 supports the park in achieving its economic operation and green energy use goals through multiple

control strategies：

At the equipment end use In the power transmission At the operational control

Peak-valley arbitrage: Based on user-configured time-of-use pricing templates charge during off- low-power switches low-drop section deploy low-resistance level through energy-

peak hours and discharge during peak hours to reduce electricity charges applicable to industrial and components green materials distribution cables and saving optimization

commercial users subject to time-of-use pricing. and efficient control circuits low-loss power conversion algorithms and intelligent

to reduce ontology loss. equipment to reduce line loss. dispatching redundant

Demand defense: Real-time monitoring of the total meter demand value at the gateway automatically operations are avoided.triggering control actions such as reducing energy storage charging initiating energy storage discharging

lowering the power of charging piles or adjusting adjustable loads when approaching the set limit to avoid

additional costs or fines for exceeding demand applicable to two-part tariff users.Maximum green power consumption: When photovoltaic power generation far exceeds the load of the Most importantly LAZZEN has extended energy-saving capabilities to the bottom of the chip and circuit design

plant and feed-in revenue is low or restricted prioritize the dispatch of energy storage systems to absorb and through the synergy of software and hardware implemented power optimization strategies (such as clock

excess green power and increase the proportion of self-generated and self-consumed electricity. gating pre-computation logic reconfiguration optimized fan-out etc.) at multiple levels including behavioral level

register-transfer level (RTL) logic level and physical level achieving a combined power savings of 10% to 70%.Flexible anti-reverse flow: In scenarios where These efficient devices are further integrated into combined cooling heating and power systems smart distribution

reverse power supply is prohibited by grid networks and building automation platforms to form a closed-loop system of "low load on buildings + low power

connection policies by dynamically adjusting consumption on devices + low transmission loss + no redundancy in operation". Equipment carbon reduction thus

the charging and discharging state of energy upgrading from a single product to a full-stack green manufacturing capability covering space systems and chips.storage and linkage control of photovoltaic

inverter output power when necessary

reverse power over-limit is prevented to

ensure compliant grid connection.Carbon reduction through management

LEC300 Microgrid Coordination Controller LAZZEN regards "Carbon reduction through management" as a key support for the implementation of Zero Carbon

plants. Through its self-developed EX energy and carbon management platform (expected to be launched in 2026)

In the practice of Zero Carbon plants the PX Power Distribution Expert the MX Microgrid Expert System LAZZEN has upgraded from the traditional model that relies on manual statistics cannot grasp energy consumption

and the LEC300 Microgrid Coordination Controller form a "device-control-platform" three-tier collaborative details in real time and delayed analysis and optimization to a modern energy management model featuring full-

architecture to jointly support resilient carbon reduction goals: PX focuses on the distribution side to achieve loop precise measurement carbon emission analysis and integrated energy-carbon optimization.loop-level safety monitoring and sub-item energy consumption metering providing underlying data and

execution capabilities for carbon emission accounting and precise regulation; LEC300 responds in real time to In addition the PX Power Distribution Expert system integrates high-precision metering functions at all levels of

changes in electricity prices loads and green power on the edge side and dynamically implements strategies distribution nodes such as frame circuit breakers molded case circuit breakers and miniature circuit breakers

such as peak-valley arbitrage demand control and green power consumption to ensure operational economy achieving full-circuit itemized and zoned electricity consumption monitoring from the main trunk to the end with

and low carbon emissions; MX integrates all-domain energy data at the park level visualizing carbon metering accuracy reaching the national standard level 1 and meeting the requirements of the "Design Standard

emissions conducting revenue analysis and operation and maintenance management to support long- for Itemized and Zoned Electricity Metering Systems for Public Buildings". The system not only supports the refined

term optimization decisions. Three systems work together to enable Zero Carbon plants to adapt flexibly to management of power loads such as air conditioning lighting and charging piles but also can be extended to access

changes in the external environment while ensuring power supply safety and production continuity and to multi-energy metering terminals such as water gas and heat to build a unified integrated energy database for the

achieve quantifiable adjustable and sustainable carbon reduction paths.

13 142025 Environmental Social and Governance Report

plant. Thanks to the highly integrated and instrument-free design of the equipment maintenance and replacement

costs are reduced by about 50% in later operation and maintenance. Case Facilitating the construction of Zhengzhou Bofang Zero Carbon Plant

In terms of demand management the system automatically implements the "non-critical" strategy (that is

automatically offloads non-critical loads during peak load periods) through intelligent switching components Zhengzhou Bofang Electric 's plant was previously completely dependent on municipal power supply

dynamically optimizes maximum demand effectively avoids transformer overload and power fines reduces excess with high electricity bills. In response to this situation LAZZEN led the design of an integrated Zero Carbon

contract capacity charges by an average of 4% annually and significantly reduces hidden electricity costs. infrastructure solution aiming to optimize electricity costs and manage carbon emissions quantitatively

through the deployment of new energy and the integration of intelligent systems while meeting energy

Relying on cloud-based monitoring and intelligent diagnostic systems the plant significantly reduces its reliance demands.on on-site manual inspections and promotes the upgrade of operation and maintenance work towards remote

automated and intensive. This model not only significantly enhances the operational reliability of the energy system The project has built a new 500kW photovoltaic power station a 522kWh energy storage station a 630kVA

but also brings considerable resource savings and efficiency improvements: personnel costs are reduced by 50% transformer and four AC/DC charging stations and fully deploy LAZZEN 's self-developed system: PX Power

equipment failure rates are reduced by 30% and average power restoration time is shortened by 60%. Through Distribution Expert System for sub-item energy consumption and carbon emission monitoring to support

intelligent management not only the uncertainty brought by human intervention is reduced but also hidden carbon online intelligent operation and maintenance; MX Microgrid Expert System based on AI prediction and

emissions resulting from power outages or energy efficiency losses are lowered. control strategies enhances the efficiency of local photovoltaic consumption optimizes energy storage

charging and discharging and achieves coordinated interaction with the main grid; The LEC300 Microgrid

Operational carbon reduction Coordination Controller is responsible for low-level dispatching to ensure autonomous and efficient use

of energy. After coming into operation the monthly electricity consumption of the plant decreased by

Based on the construction practice of the Zero Carbon plant of the Hangzhou Bay Mega Factory LAZZEN has 60% and about 350 tons of carbon dioxide were simultaneously reduced annually verifying the actual

systematically accumulated full-cycle experience from planning implementation to operation and deeply verified effectiveness of LAZZEN's Zero Carbon plant model in small and medium-sized manufacturing scenarios.the synergy of software and hardware products. Our self-developed refined EX energy and carbon management Zhengzhou Bofang Zero Carbon Plant facilities

system MX Microgrid Expert System and other core tools can achieve full accounting itemized traceability and

dynamic optimization of carbon emissions at the plant level and deeply cover key scenarios such as manufacturing

power distribution and energy use.Based on this unique closed loop of "self-developed + self-built + self-used" LAZZEN can not only provide

professional Zero Carbon consulting services but also efficiently drive the Zero Carbon factory projects of external

customers from blueprint to implementation with reusable productized Zero Carbon solutions truly achieving one-

stop empowerment of "understanding the scenario having the tools and being able to deliver". In addition for

customers with existing infrastructure or specific retrofit requirements LAZZEN can provide modular and embedded

Zero Carbon plant solutions. The solution focuses on key aspects of Zero Carbon plant construction such as smart

distribution microgrid coordination energy storage dispatch and carbon emissions metering and supports

independent deployment and flexible integration.Case New Intelligent Distribution Room at Hubei University

500KW photovoltaic power station 522kWh energy storage station

LAZZEN helped Hubei University build a new

intelligent distribution room avoiding information

silos and improving operation and maintenance

efficiency through integrated monitoring of

medium voltage low voltage transformers and

power quality. In addition through the intelligent

framework NDW3 NDM5E dynamic environment

software and hardware guarantee the stable

operation of the distribution room has improved

by 38% and preventive maintenance has

increased efficiency by 90%.Intelligent distribution room of Hubei University 630KVA transformer capacity 4 AC/DC charging stations

15 162025 Environmental Social and Governance Report

01

Governance and

Compliance

Sustainable Development Management

Corporate Governance

Risk Compliance

Business Ethics

Contributions to the United Nations

Sustainable Development Goals (SDGs)

17 182025 Environmental Social and Governance Report

Sustainable Development Management Stakeholders Topics of concern Communication and response

Hold earnings briefings

P roduct quality and customer

LAZZEN adheres to the working policy of "Marketing-driven product-leading quality and efficiency improvement Boost business performanceservice

performance-driven" closely aligns with the national "dual carbon" goals and integrates ESG work with the E nhance R&D innovation Investors and Shareholders Innovation-driven

actual work of each business department. We continue to deepen our ESG strategy and actively promote the capabilities

implementation of various measures to ensure that while achieving economic benefits making greater contributions

to environmental protection and social development.E nvironmental compliance

management Ensure environmental compliance

ESG governance structure Anti-commercial bribery and anti-corruption Adhere to business ethics

Government/regulatory Employee employment and rights Employ legally

agencies Social contribution Engage in social welfare

LAZZEN has established the ESGMT (Environmental

Social and Governance Management Team) forming

an ESG organizational management structure Product quality and customer Customer visits

composed of the decision-making level management service Improve product quality

level and executive level. Among them the board Customer privacy protection H andle customer feedback in a

of Directors is fully responsible for the overall Customers Innovation-driven timely manner

deployment and supervision of LAZZEN's ESG work

promoting the concept of sustainable development Board of

throughout the entire process of our operations Decision-making Layer Directors P erform contracts in accordance

from top to bottom and deeply integrating ESG Supply chain security with the law

management into the business decision-making A nti-commercial bribery and Cooperate in good faith

system. The Sustainable Development Committee Supplier anti-corruption Improve supply chain management

leads the daily management of ESG including systems

building an ESG management system identifying and Management Layer ESGMT

assessing ESG risks formulating ESG strategic plans

reviewing ESG reports tracking and optimizing key Ensure employee rights

ESG indicators and coordinating internal and external Employee employment and Improve employee communication

ESG communication and information disclosure. rights channels

Each functional department and production base Employees Occupational health and safetyExecution Ensure safe productionFunctiona

acts as an executive unit with dedicated teams and Layer l Departments and Production Bases

fixed positions to be responsible for the connection

execution and implementation of ESG-related work. Environmental compliance Ensure environmental compliance

management Engage in social welfare

Pollutant emissions Communicate and interact with

Community Social contribution the community actively

Stakeholder communication

LAZZEN defines stakeholders as individuals and groups that have an impact on our business operations or are Analysis of important topics

affected by our operational behaviors. We attach great importance to the interests and needs of stakeholders are

committed to maintaining close two-way communication and collaboration with all parties standardize the ESG

information disclosure process actively listen to all parties' opinions and suggestions promote the scientific and Based on the communication results with various stakeholders combined with our own business situation and

transparent nature of the company's sustainable development decisions and ensure that key topics are effectively outstanding cases in the same industry we conducted in-depth research on relevant provisions including the

responded to and continuously improved. Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 17 - Sustainability Report (Trial)

We have taken a series of proactive measures to respond to topics of concern to stakeholders deeply integrating the the Shenzhen Stock Exchange Self-Regulatory Instructions for Listed Companies No. 3 - Sustainability Report

concept of sustainable development into business operations and strategic planning and promoting the realization Preparation and the GRI Sustainability Reporting Standards with reference to expert opinions and suggestions. We

of our sustainable development goals. finally determined the matrix of important topics.

19 202025 Environmental Social and Governance Report

Analysis process of important topics Corporate Governance

Sort out and adjust our list of important topics by referring to the sustainability reporting guidelines issued by the

Shenzhen Stock Exchange industry development characteristics company operating conditions etc. LAZZEN strictly adheres to all laws and regulations to ensure that the corporate governance structure is legal

compliant and operates in a standardized manner. We attach great importance to information disclosure ensuring

that the disclosed information is true accurate and timely and effectively safeguarding investors' right to know;

Through continuous communication and research in daily business operations combined with the professional maintain regular communication with investors through diversified channels and continuously enhance investors'

experience of experts and other forms assess the significance of each issue based on two dimensions: financial understanding and trust in the company. In addition we adhere to Party-building leadership give full play to the

importance and impact importance. political core role of the Party organization and ensure that LAZZEN moves in the right direction.Based on the assessment results of important topics build the important topic matrix and disclose it after approval by Governance structure

the board of directors.For topics of financial importance we disclose them in accordance with the "Governance - Strategy - Impact Risk and

Opportunity Management - Indicators and Goals" framework. This year we have identified four financial important In accordance with laws and regulations such as the Company Law and the Securities Law LAZZEN continuously

topics: "Product Quality and Customer Service" "Innovation-Driven Development" "Environmental Compliance improves internal systems such as the Articles of Association the Rules of Procedure for the Board of Directors and

Management" and "Responding to Climate Change". the Rules of Procedure for the Shareholders' Meeting clarifies the responsibilities authorities and procedures of each

institution builds a standardized organizational structure and operating mechanism and ensures the efficient and

LAZZEN's 2025 important topic matrix orderly advancement of our business decisions. During the reporting period we optimized organizational structure in line with regulatory requirements and development realities abolished the establishment of the supervisory

board and the audit committee of the board of directors took over the statutory powers of the original supervisory

Product Quality and Customer Service

High Occupational Health board establishing a decision-making and operation system with the shareholders' meeting the board of directors and Safety Opportunities in

Clean Technology Environmental and the management as the main structure forming a governance system with clear rights and responsibilities and

Anti-bribery and Compliance Management

Anticorruption Innovation-Driven standardized operation and promoting the continuous upgrading of governance efficiency.Tax Risk Management Pollutant Emissions Employee Recruitment and Rights

Data Security and Protection of Shareholders' Meeting

Technology Ethics Customer Privacy

Supply Chain Security

Digital Treat Small and Medium-

Development Sized Enterprises Equally

Responding to Climate Change

Stakeholder Communication Water Resource Energy Utilization

Utilization Board of Directors

Social Waste Disposal

Contribution Anti-Unfair Competition Employee Training and Development

Board Secretary

Due Diligence Ecosystem and Diodiversity Conservation

Rural Revitalization Circular Economy CEO

Low High

Financial Importance

ESG honors

Ecovadis Bronze Medal* GoodWe ESG Ecosystem Partner Guancha Net ESG Model Enterprise Award 2025 "Innovation Pioneer Award"

*Link: https://recognition.ecovadis.com/TdAj4kqJsEWaLTQihPsEdQ

2122

Operations and Human

Resources System

Strategic and Financial System

Technical System

Smart Terminal and Vehicle-

Mounted Device Product Line

Smart Distribution Product

Line

Medium and Low Voltage

Component Product Line

Key Project Office

International Business System

Digital Energy and Building

Marketing System

Infrastructure Marketing

System

Impact Importance

Identify Evaluation Disclosure2025 Environmental Social and Governance Report

Information disclosure

LAZZEN strictly complies with relevant laws regulations and normative documents and organizes

and holds shareholders' meetings in accordance with internal systems such as the Articles of LAZZEN strictly adheres to the Articles of Association the Information Disclosure Management System and relevant

Association and Rules of Procedure for Shareholders' Meetings and implements deliberation laws and regulations fulfills information disclosure obligations truthfully accurately completely timely and fairly

and voting procedures. As the highest authority of LAZZEN the main powers of the shareholders' conducts investor relations management through multiple channels platforms and methods and is committed

Shareholders' meeting include reviewing and approving the company's business plans and investment schemes to improving the quality and transparency of information disclosure.Meeting electing and replacing directors who are not employee representatives deciding on matters We ensure that shareholders and creditors of LAZZEN have equal and During the reporting period

related to the remuneration of directors and reviewing and approving the work report of the timely access to information on our business operations and major

board of directors etc. The meeting is held in a combination of on-site and online voting strictly matters. During the reporting period there were no false records

implementing procedures such as recusal of related shareholders cumulative voting and voting LAZZEN disclosed 88 misleading statements or material omissions in our information

on a per-item basis to ensure that the voting is legal and valid. disclosure work demonstrating solid achievements in information announcements in compliance

During the reporting period LAZZEN held a total of 4 shareholders' meetings and deliberated on disclosure quality and compliance management. with regulations

28 proposals. We have always treated all shareholders equally and effectively safeguarded the

legitimate rights and interests of all shareholders including minority shareholders. During the Investor relations management

reporting period there was no situation that harmed the rights and interests of shareholders.LAZZEN strictly complies with policies and regulations such as

the Company Law the Securities Law the Guidelines for Investor

Relations Management Work of Listed Companies and the provisions

of the Articles of Association continuously revises and improves the

The Board of Directors holds board meetings strictly in accordance with the provisions of the Investor Relations Management System systematically conducts

Articles of Association and the Rules of Procedure for the Board of Directors earnestly implements investor relations management work and effectively safeguards the

the resolutions of the shareholders' meeting standardizes the implementation of authorized legitimate rights and interests of investors.matters and resolutely eliminates illegal behaviors such as over-authority approval and

Board of "implementation first approval later". The board adheres to the Company Law and other laws and Investor communication

Directors regulations always aims to safeguard the overall interests of LAZZEN attaches great importance LAZZEN attaches great importance to communication with investors and always regards safeguarding investors'

to and effectively protects the legitimate rights and interests of minority shareholders. During the rights and interests as an important responsibility. To this end we continuously optimize communication

reporting period LAZZEN held 6 board meetings and deliberated on 68 proposals. mechanisms actively expand communication channels and ensure the timeliness accuracy and transparency of

The Board of Directors consists of the Strategic Committee the Audit Committee the Nomination information transmission. During the reporting period we carried out investor communication activities through

Committee and the Compensation and Appraisal Committee each of which effectively assists various forms such as organizing earnings briefings visits by small and medium-sized investors and institutional

the Board of Directors in performing its decision-making and supervisory functions. During the investors to the listed company answering investor hotlines voluntary information disclosure and interactive Q&A

reporting period the specialized committees operated properly and the meetings and resolutions exchanges to strengthen communication with investors and shareholders and safeguard shareholders' legitimate

were in compliance with the relevant system requirements. rights.Investor communication activities in 2025

LAZZEN is committed to promoting the effectiveness and diversity of its board taking into account 74 investor communication activities conducted

factors such as the industry experience educational background and overall quality of our board

members to ensure that the board of directors is both effective and diverse. The current board 52 questions responded on the Easy Interaction platform

members have professional capabilities in finance law power equipment and other fields and 7 times record sheet of investor relations activities released

Board all have rich industry experience. LAZZEN's board consists of nine directors including one female

effectiveness director and three independent directors. 48 phone calls made

and diversity The independent directors strictly follow the "Independent Director Work System proactively 1 earnings briefing held

understand LAZZEN's production and operation situation pay attention to our development

dynamics and the standardization of operations diligently and responsibly perform their Protect the interests of small and medium-sized investors

duties and obligations make reasonable suggestions on matters related to our internal control

management of raised funds etc. and express independent opinions prudently and objectively LAZZEN has taken the initiative to maintain close communication with the Shenzhen Stock Exchange study

in order to safeguard the overall interests of LAZZEN especially the rights and interests of small regulatory requirements in depth and participate in discussion and research meetings of listed companies organized

and medium-sized investors and promote the continuous improvement of LAZZEN's governance by the Small and Medium Investors Service Center focusing on learning the methods of standardized operation

structure and the standardization of its operation and management. of listed companies and communication with small and medium investors. At the same time we maintained

active interaction with small and medium-sized investors through the Easy Interaction platform to ensure smooth

information communication channels and effectively protect the interests of small and medium-sized investors.

23 242025 Environmental Social and Governance Report

Strengthening the foundation through Party building Party building culture construction

LAZZEN deeply integrates Party building into the ESG development system leading the high-quality and sustainable LAZZEN has always insisted on integrating Party organization building with corporate culture building bringing

development of the enterprise with high-quality Party building. In 2025 we continued to improve organizational together employees and Party members and by focusing on political guidance organizational cohesion and role

construction create distinctive brands innovate working models deepen the integration of Party and enterprise play we have continuously strengthened ideological consensus gathered the strength to forge ahead effectively

and promote the resonance of Party building with production and operation employee development green transformed the advantages of Party building into development advantages and promoted the steady and far-

transformation and other work building a solid political foundation and organizational guarantee for the company's reaching high-quality development of the enterprise.ESG development. We are committed to building a Party member activity room with LAZZEN characteristics. While consolidating

Improve the Party organization system the Party building work position and strengthening the vanguard role of Party members we promote the deep integration of Party building and business thereby consolidating the development synergy and enhancing the

comprehensive competitiveness of the enterprise; we are committed to building the "Liangfeng" Party building

LAZZEN continued to improve Party organization system. In August 2025 under the guidance of the superior brand of Party member pioneers product pioneers enterprise pioneers and industry pioneers focusing on the

Party organization the Party Branch Committee of Haiyan LAZZEN was officially established. The General Branch urgent needs of employees the pain points of enterprise development and the weak links in work and actively

Committee of Shanghai LAZZEN of the Communist Party of China is established at the headquarters with three Party responding to the voices of employees.branches under it forming a pattern of coordinated Party building work from top to bottom."Liangfeng" Home: Equipped with a tea area a table tennis room a basketball court etc. we provide

places for Party members and employees to rest and strengthen their bodies and minds.Party Member Activity Room

"Liangfeng" Screening room: For Party members and the masses within the enterprise to

study the spirit of the Party and red films broadening the ways of Party building learning."Liangfeng" Academy: Provides functions such as party affairs training business training skills "Liangfeng" Exhibition Hall: It showcases the corporate culture and Party building of LAZZEN reflects our strength

improvement etc. creates a red learning atmosphere and promotes the development of Party branches. in building a "future factory" and serves as an effective carrier for ideological education and publicity activities.

25 262025 Environmental Social and Governance Report

Risk Compliance An internal control management system

Internal control Specific content

LAZZEN attaches great importance to compliance management internal control management risk management management

and tax management continuously improves the supporting management system and operational procedures and The assurance of effective implementation of internal control includes daily oversight and

comprehensively enhances the enterprise's risk prevention and compliance control capabilities. Monitoring special oversight with management responsible for ongoing daily oversight internal audit

responsible for targeted special assessment and third-party assessment.Compliance management Information and The carriers for the implementation of internal control include information quality

communication communication systems information systems and anti-fraud mechanisms.LAZZEN strictly adheres to relevant laws and regulations such as the Company Law the Securities Law and The means of implementing internal control include incompatible job separation

the Accounting Law continuously revises and improves internal systems such as the Compliance Obligation Control activities authorization approval control accounting system control property protection control

Management Procedure the Compliance Evaluation Management Procedure and the Intellectual Property budget control operational analysis control performance evaluation control etc.Compliance Management Measures reasonably guarantees the legal and compliant operation and management of

the company the safety of assets and ensures the authenticity and completeness of financial reports and related Risk assessment The basis for implementing internal controls including objective setting risk identification information. Adapt to the dynamic changes of the external environment and continuously improve the internal risk analysis and risk response.management level.Control The foundation of the internal control system includes governance structure organizational

To meet the requirements of risk control and system audit LAZZEN reviews and updates various laws regulations environment setup authority allocation human resource policy corporate culture etc.rules and regulations policy documents and related standards every year. During the reporting period we added the

review of laws regulations and systems related to import and export control.Risk control

Regular mechanism System revision

LAZZEN establishes a full-process system for identifying analyzing and evaluating risks and opportunities and

Annual review and update of laws regulations The articles of association and related takes countermeasures to strengthen internal control and improve the management and operation level and risk

systems and policy documents related to RoHS management systems have been revised prevention capacity of the company.intellectual property information security accordingly in accordance with the revised

EHS (Environment Health Safety) and energy Company Law implemented in 2025. Risk governance

modules.LAZZEN strictly adheres to relevant laws and regulations and continuously improves the risk prevention and control

and compliance management mechanism. In 2025 we completed the revision of systems such as Case Management

Measures Quality Risk Management Plan and Legal Guidelines for Debt Collection and Recovery and added

Internal control Electronic Seal Management Measures to continuously enhance risk governance and compliance control capabilities.To further strengthen the construction of the risk management system we developed the Risk and Opportunity

Management Procedure and integrated and optimized it with the Enterprise Risk Management System in 2025 to

In accordance with the relevant regulations of the China Securities Regulatory Commission and the Shenzhen Stock further improve the risk control system.Exchange LAZZEN adheres to the basic principles of internal control combines the actual operating conditions of

the company focuses on management blind spots and pain points in business processes continuously optimizes risk At the same time LAZZEN continues to improve our risk management governance structure clarifies job

control management processes and systems and builds a sound and effectively operating internal control system. responsibilities at all levels builds the "three lines of defense" for risk prevention establishes a comprehensive

centralized and unified audit supervision network to effectively prevent major risk events and provides governance

LAZZEN has improved internal control management system in accordance with the requirements of the Basic Norms guarantees for the implementation of our strategy and sustainable operation.for Enterprise Internal Control to ensure that its operation and management are legal and compliant and its assets

are safe and controllable. We regularly assess the effectiveness of the internal control system disclose the internal The "Three lines of defense" for risk prevention

control evaluation reports truthfully and continuously iterate and improve the internal control management system.During the reporting period we had no material or significant deficiencies in our internal control.The first line The second line The third Line of

of defense of defense defense

All business Risk Management Audit

departments Committee Department

27 282025 Environmental Social and Governance Report

Company risk management system architecture Potential

Risk types Risk description Impact cycle financial Risk management measuresManagement

structure Responsibilities and authorities

implications

Product quality and non-

compliance with RoHS can Short-

The committee consists of one director one executive secretary and seven risk committee members affect LAZZEN's reputation and term/ Operating costs Regular high-level quality monthly meetings;

(Information Security Risk Committee member Business Risk Committee member Legal Risk Quality RoHS result in direct economic losses medium- increase Assess the risks of systems such as

Committee member Supply Chain Risk Committee member Labor Relations Risk Committee member risk such as product rework recalls term/long- Revenue decline management quality through systems

Risk Management Tax and Finance Risk Committee member Intellectual Property Committee member). compliance fines and customer term internal audits and management reviews.Committee claims

A s the highest decision-making body for risk management it is responsible for reviewing LAZZEN 's

risk management system and framework deliberating on major risk matters and deciding on risk

response strategies etc. Information security incidents Short- M ultiple internal self-examinations in such as data breaches resulting term/ response to repeated letters from software Information in compliance penalties medium- Operating costs vendors claiming that LAZZEN uses pirated

A s the risk management department they are responsible for the daily identification assessment security risks customer/partner claims increase software;

Business Units and reporting of risks within their business area and formulate and implement targeted risk response business disruption losses and

term/long-

emergency response costs term

Implement meeting resolutions by issuing

plans. systems and signing documents.Background checks on candidates;

A s the risk management supervision and evaluation department it is responsible for conducting

Risks of labor Causing labor disputes resulting U pdate the employee handbook in a timely independent audits and supervision of the operation of LAZZEN 's risk management system and the

disputes in economic and reputational Short-term

Operating costs

Audit Department implementation of risk control measures; proposeds supervision and improvement suggestions tracks damage increase

manner;

Properly handle changes to the subject of the

the closed-loop of risk rectification and ensure the standardized implementation of risk management labor contract and negotiate termination.work.Establish an intellectual property risk

assessment process patent risk levels and

Triggering intellectual response strategies through an intellectual

Risk identification and management property disputes resulting in property compliance management system;

Intellectual compensation for infringement Medium Operating costs Promote the implementation of patent risk

LAZZEN continuously identifies and controls risks in key areas and tracks and synchronizes them through property risks litigation costs waste of and long- increase assessment actions through the IPD process;

performance assessment meeting follow-up system processes etc. to ensure the formulation and implementation R&D investment damage to term Revenue decline Review the effectiveness of risk management brand reputation and market actions and make timely improvements

of risk response measures. In addition in accordance with the Basic Norms for Enterprise Internal Control and its competitiveness through internal and external audits of

supporting guidelines LAZZEN compiles an internal control risk matrix based on its actual situation and conducts the intellectual property compliance

regular risk identification assessment supervision response and improvement. For ESG risks related to business management system.operations we take actions such as sorting out risk inventories and conducting materiality assessments to clarify the

impact of risks and response measures and integrate ESG risk management into the corporate governance system.Internal audit

LAZZEN in collaboration with the Intellectual Property Department updates legal education content monthly in

the "Law · Knowledge Zero Distance" column on the OA platform organizes long-term legal advisors to conduct LAZZEN has established a risk-oriented audit framework based on business cycles and key elements of our

special training on job responsibilities and risk prevention for directors supervisors and senior management operations making full use of existing audit resources to conduct audit checks on key risks in the business. We have

comprehensively strengthens the compliance awareness and risk prevention capabilities of all employees promotes established the Internal Audit System and the Departure Audit Management System aiming to enhance management

employees to master the risk management process proficiently and continuously improves the overall risk efficiency prevent business risks and ensure the safety of our assets and its sustainable and healthy development.governance level of the company.Potential 01 02 03 04

Risk types Risk description Impact cycle financial Risk management measuresimplications

Supervise the Evaluate the Check the security Raise the risk

Customers (especially smart Pre-review of customer credit qualifications compliance of effectiveness and and integrity of the awareness of all

power distribution direct supply payment terms order release commercial bill business operations efficiency of business enterprise's assets and employees in the

projects) have a higher risk of Medium receipt etc. through organizations such as the and prevent violations operations and reduce unnecessary enterprise and reduce Customer

payment risk debt collection which can lead to and long-

Operating costs Cash Flow Management Committee;

bad debts and increase the risk of term increase Non-litigious collection by business legal and

from causing damage provide objective waste and loss potential risks in daily

litigation generating additional attorneys during the process;

to business assets and and impartial work

costs for rights protection Risk management through post-event reputation statements to the proceedings etc. to reduce bad debt risk. board of directors and

management

29 302025 Environmental Social and Governance Report

Internal audit framework Tax administration

Business cycle Audit focus areas LAZZEN has always adhered to the principle of paying taxes in accordance with the law. To strengthen tax

administration ensure legal business operations and fulfill the commitment of honest tax payment we have

Product prices special offer management credit lines formulated the Tax Administration System to clarify the responsibilities and authorities of each department

Sales and collection business and relevant personnel in tax administration and standardize the operation procedures of key links such as tax

Sales orders freight charges reverse logistics

cycle registration tax declaration invoice use and management tax planning and file management.Accounts receivable other receivables In the routine audit of financial internal control in 2025 the spot-check of tax declaration materials was

simultaneously covered and no tax compliance issues were found effectively ensuring that daily tax handling

Supplier management operations were standardized and orderly.Purchase and payment business

Purchase Price purchase allocation ratio Tax risk response measures

cycle

Accounts payable

Measures category Specific content

Financial budget Establish a comprehensive tax administration system with clear management

Finance (monetary funds cycle) Monetary funds notes receivable processes and job responsibilities implement dynamic risk assessment and

develop corresponding risk control measures.Raised funds

Adhere to tax payment in accordance with the law ensure that tax information is

true and complete tax declaration and payment are timely and accurate strictly

Real estate production equipment office equipment Improve systems and fulfill tax information disclosure obligations and actively cooperate with tax

Items (production and inventory compliance building supervision work.Inventory molds low-value consumables

cycle) W ithin the existing tax administration framework we optimized the key points

Scrap of daily operations in the input tax deduction link in 2025 in accordance with

the relevant policy adjustments of the current year; and worked with external

Production safety professional institutions to complete the group related-party transaction pricing

compliance report and standardize related-party transaction tax operations.People (human resources and Payroll accounting

payroll cycle) Employee benefits Continuously track and study national tax policies regularly conduct internal

tax training promote deep integration of business finance and taxation and

Labor employment optimize tax-related business processes.Respond to the policy and Strengthen the professional capabilities of the tax team to achieve rapid

enhance capabilities adaptation to policy changes and compliance implementation.In 2025 two internal tax policy interpretation meetings were organized in

response to changes in tax policies covering a total of 50 people from core

positions in finance and business. There were no operational errors in tax

declaration throughout the year.U se digital tools to enhance tax administration transparency and reduce

compliance management costs.Optimize efficiency

through digital risk control R egularly conduct self-audits of tax risks and work with professional consulting

agencies to enhance compliance reviews to ensure that tax operations are

standardized and secure.Through institutional improvement technological empowerment and personnel

Build a long-term capacity building strive to achieve regularized and standardized tax risk

mechanism management form a sustainable tax risk prevention and control mechanism and

provide a solid guarantee for the stable development of the business.

31 322025 Environmental Social and Governance Report

Business Ethics LAZZEN continues to strengthen anti-corruption risk management through measures such as improving institutional construction and strengthening supervision mechanisms and standardizing business operation processes to create

a strong deterrent with severe punitive measures and to build a full-process transparent management system

LAZZEN upholds a high level of social responsibility and professional ethics adopts a zero-tolerance attitude covering pre-event prevention in-event supervision and post-event handling creating a good organizational

towards corruption strictly enforces anti-corruption policies and ensures the integrity and transparency of the atmosphere of "not wanting to be corrupt not being able to be corrupt and not daring to be corrupt".our operations. We firmly oppose any form of monopolistic behavior and unfair competition adhere to market

competition rules and maintain a fair and just market environment. LAZZEN attaches great importance to complaints and reports formulates strict handling procedures and stipulates the timeliness of handling and also establishes a protection mechanism for the complainants and reporters.Anti-corruption Corporate whole-process anti-corruption management system

LAZZEN actively responds to the national anti-corruption policy formulates the Integrity Management Measures

Stages Unwilling to corrupt (thought Unable to corrupt (due to No dare to corrupt (deterrent establishes and improves the integrity management system sets up the Sunshine Management Committee guidance) institutional constraints) punishment)

to manage the behavioral norms integrity and self-discipline of all employees and related business activities

investigates and handles illegal and non-compliant and acts that harm the interests of us and prevents fraud and Culture of Integrity Set rules Deterrence and deterrence

corruption so as to create a good business environment and ensure the company's steady development. S etting rules: Defining the red line of E stablish a main body L egal education: Lectures on

conduct responsible for integrity integrity cases and learning from

With integrity culture and loyalty and self-discipline as the core orientation LAZZEN aims to build a clean and upright S electing and employing people: management: Sunshine economic criminals

business environment through institutional building training and education and supervision and inspection to Background checks for sensitive Business Committee P ublicity and notification:

promote the stable development of the company. We signed Integrity Commitment with all employees organized positions E stablish a set of integrity Internal publicity and notification

employees to participate in anti-corruption training and education advocated employees to adhere to the work style O rganizational atmosphere: Leading management system norms: of typical cases and organization

of integrity and honesty and ensured that all business activities of the company operate in the open. Prevention by example by management cadres Integrity Management of learning

in advance T raining and education: Regularly Measuresconducting integrity and legal

Regarding the management of anti-corruption behavior of partners and suppliers LAZZEN adheres to the W eaken the influence of education individuals in business

cooperative philosophy of integrity transparency and openness establishes cooperation mechanisms with partners Making contracts: Signing the decisions: Business process

and suppliers and firmly resists commercial bribery. To ensure the compliance and integrity of business activities Integrity Commitment and Integrity R educe the control of

LAZZEN signs integrity cooperation agreements with partners specifies email information for reporting acceptance Agreement individuals in business

in the agreements conducts periodic inspections aimed at consolidating the foundation of honest cooperation I ntegrity initiative: Issue integrity execution: Business initiative letters before New Year's informatization

between the two sides and organizes suppliers to participate in anti-commercial bribery training to cultivate their Day Spring Festival and other festivals

business ethics and compliance awareness.Proactive reporting Process self-check Inspection Monitoring

Proactive reporting for receiving cash S ystem check: Data anomaly Audit Inspection: Regular/

Management dimension Content description gifts alarm function embedded in irregular integrity inspection by

P roactive reporting for participating the information system the Audit Department

Top organization Sunshine Management Committee In-process in activities B usiness self-check: Business H igh-level communication:

control P roactive reporting for conflicts of departments conduct regular regular/irregular communication

Core system Integrity Management Measures interest or irregular integrity checks between committee members P roactive reporting for relationships on their own and partners

with relatives and friends to cooperate J ob rotation mechanism:

Objects of management Internal: Employees with background checks Sensitive positions are rotated External: Partners suppliers and other external affiliates regularly

Internal: Employee Handbook and Integrity Commitment

Control measures External: Integrity Cooperation Agreement Complaints and reports Supervision and inspection Accountability and punishment

All-Staff training and presentation Audit mailbox receives internal and A udit investigation: Internal Multi-level accountability:

external complaints and reports investigation as appointed by Personal responsibility

Internal reporting: OA system Conflict of Interest Reporting S unshine Management Committee the director of the committee management responsibility

Supervision and inspection External oversight: Audit Mailbox members receive internal and E xternal investigation: leadership responsibility

Regular audits Post-event external complaints and reports Investigation by anti-fraud H andling and punishment: oversight professional lawyers or public Notice dismissal punishment

security investigation compensation for losses

Bottom-line measures Commission an external expert investigation (independent verification for L egal liability: Transfer to judicial major or complex issues) authorities and assume legal

liability

33 342025 Environmental Social and Governance Report

Anti-unfair competition

Channels for receiving Timeliness of handling complaints and reports LAZZEN adheres to the business philosophy of legality and compliance strictly abides by the Anti-Monopoly Law

complaints and reports Upon receiving a report the company and the Anti-Unfair Competition Law standardizes market competition behaviors resolutely eliminates false

Board of Directors' written undertakes to complete the investigation advertising commercial bribery infringement of trade secrets and other illegal acts and maintains a fair and

and oral instructions within one month provide feedback on orderly business order. In 2025 we revised the content of confidential information management in the Trade Secret

Designated email: audit@lazzen.com the investigation results to the Sunshine Management Procedure strengthened the identification and control of anti-unfair competition risks and ensured a

Management Committee and the person clean and healthy business environment. During the reporting period we did not have any monopolistic and unfair

reported and issue an audit investigation competition violations or illegal incidents.report. The audit investigation period shall LAZZEN actively maintains a fair and just market environment promotes positive interaction with partners jointly

not exceed three months. builds a healthy and orderly market ecosystem and lays a solid foundation for long-term stable development.We signed cooperation agreements with dealers clearly stipulating that both parties must abide by the market

maintenance provisions of the Dealer Agreement and the LAZZEN Market Regulation Management Measures and

jointly maintain the normal competitive order of the market. During the reporting period the signing rate of the

Complaint and whistleblower protection mechanism company's "Dealer Agreement" was 100%.Intellectual Property Risk Management Procedures for the identification and control

Protective measures Specific Content of trademark infringement and unfair competition

The Audit Department has an obligation to keep confidential the information of complainants

Obligation to keep and informants. According to the 'Internal Audit System' if an auditor violates the principle of

information confidential confidentiality and discloses the information of a complainant or informant LAZZEN has the right 01 Monthly ducument numbers trademark information and market monitoring

to deal with and punish them.Minimize the scope of We implement the principle of minimizing the scope of knowledge of complaints and reports

knowledge ensuring that the investigation process of complaints and reports is not public and is known only

Where any trademark infringement or unfair competition against us is identified a

to essential personnel to prevent the spread of information. temporary emergency response team will be established to conduct a risk assessment

Support anonymous We support anonymous complaints and reports and take the same investigation and handling

reporting methods for anonymous reports as for real-name reports to safeguard the rights and interests of the reporters. Develop a contingency plan for risk prevention

Anti-corruption management indicators

Decisions on measures to be taken are made by the Minister of Operations

Standardization and Intellectual Property

Disclosures Unit 2025

Number of corruption lawsuits filed and concluded by regulators against issuers or their

employees piece 0 02 Identify trademark risks before use

Number of anti-corruption whistleblowing incidents piece 1

Low-risk and medium-risk trademarks: Risk warning to the head of the

Total number of directors covered by anti-commercial bribery and anti-corruption training persons 9 secondary organization of the trademark use requirement

Proportion of directors covered by anti-commercial bribery and anti-corruption training % 100

Total number of management personnel covered by anti-commercial bribery and anti- High-risk trademark: Head of a level 1 organization with a risk

corruption training persons 70 warning to the need for trademark application

Proportion of management personnel covered by anti-commercial bribery and anti-

corruption training % 100

Total number of employees covered by anti-commercial bribery and anti-corruption training persons 1535

Proportion of employees covered by anti-commercial bribery and anti-corruption training % 63

35 362025 Environmental Social and Governance Report

02

Innovation

and Quality

Innovation-Driven Development

Intelligence Ecosystem Products

Digital Transformation

Product Quality

Customer Service

Information Security and Customer Privacy Protection

Contributions to the United Nations

Sustainable Development Goals (SDGs)

37 382025 Environmental Social and Governance Report

Innovation-Driven Development Risks Risk description Response measures

Lay out various new technologies in advance accurately identify

LAZZEN adheres to innovation-driven development builds core competitiveness through technological innovation new technology points in the industry including high-voltage

builds an industry-leading integrated R&D platform by improving the R&D governance system and formulating Risk of

In the context of rapidly changing global

situations and increasing customer product technology and high breaking capacity technology

medium- and long-term R&D strategic plans continuously increases R&D investment builds high-level professional technology iteration demands the company faces the risk of its O rganize technical reserves for products targeting overseas

R&D teams and builds a full-chain management and risk prevention and control system for intellectual property. existing technologies being replaced markets and promote the application of solid-state technology

We conduct forward-looking layout of core technologies advance technological iteration and product development AI technology etc

promote the efficient transformation of scientific and technological achievements and empower product technology

upgrades.As customers continue to upgrade and T ake the initiative to respond to customers' demands for new

expand their own systems their demand for products lay out technology and product planning in advance

Research and development management new products becomes increasingly urgent. iterate existing technologies and carry out various product

Risk of The rapidly changing market demands research and development in advance

change in require companies to have agile response

Governance demand capabilities to ensure that they are always

Focus on high-voltage product technology high breaking

in step with the development of their capacity technology and overseas market adaptation technology

customers' systems and provide precise and reserves continuously increase investment in research and

timely solutions development innovation and push key technologies to industry-

LAZZEN builds a comprehensive and efficient R&D innovation governance system leads business development leading levels

with a forward-looking R&D strategy promotes customized innovation around customer needs and continuously

strengthens core competitiveness. We have established multiple R&D institutions based on different R&D fields and In response to the growing business

key directions focusing on conducting cutting-edge research and product development in each technology field Risk of demands of the company the original

regularly evaluating and optimizing research directions deepening cross-institutional collaboration accelerating the insufficient production base in Pudong Shanghai is no A mega factory was built in Haiyan Jiaxing and the entire

capacity longer capable of meeting the production relocation was completed in 2025transformation and implementation of innovation achievements and laying a solid foundation for our sustainable

innovative development. demands of customers' products

The ITMT (Integrated Technology Management Team) is responsible for building our competitiveness in public and

cutting-edge technologies by organizing technology roadmap planning technology investment decision-making LAZZEN formulates a three-year R&D strategic plan and dynamically optimizes and adjusts it in light of actual

project initiation and review etc. so as to enhance the technological competitiveness of products and form a leading business conditions. From 2026 to 2028 we will focus on four strategic layouts: technological innovation market

product advantage. expansion talent development and international cooperation. We will continue to innovate and develop in key

areas such as high-voltage product technology high breaking capacity technology technology reserves suitable for

The research and development assessment indicators set by LAZZEN cover the accuracy and foresight of industry overseas market product requirements intelligent technology application and information technology application

and customer demand analysis competitor and patent analysis frontier technology analysis and technology and comprehensively enhance our R&D strength and core technology level.strategy and technology panorama analysis reports for the next three to five years of technology roadmap planning.At the same time we assess the implementation rate achievement rate and migration rate of technology planning Innovation-driven three-year development strategy

output projects to ensure that planning projects can be smoothly implemented completed on time and ultimately

applied to products.High-voltage product technology

Strategy

Industry voltage level breakthrough (DC2000+ AC3300V) cost reduction trend

To precisely match the current and potential needs of customers LAZZEN delves deeply into various application

scenarios and initiates strategic to execution (DSTE) planning for the next year and the next three years in the Voltage boosts are expected to be fully rolled out in the market in 1-2 years

fourth quarter of each year. Through the "Five Views" method of market insight we sort out the list of opportunity Previous years' technology trends continue

points make forward-looking judgments on new technological trends in the industry and accurately identify

our own technological shortcomings and potential risks. And formulate practical key tasks and corresponding

countermeasures to ensure the efficient implementation and effective execution of the strategy.High breaking performance technology

Higher performance requirements for high-voltage and high-current products

Product safety and reliability

Past technological trends continue

39 402025 Environmental Social and Governance Report

Technical reserves for product requirements in overseas markets Impact risk and opportunity management

High requirements for products in overseas market standards such as UL standards for electrical Research platform construction

life breaking capacity and temperature rise UL1077 UL98 UL489 LAZZEN builds industry-leading R&D platforms and through the establishment of an industry-university-research

Future product consolidation lays the technical reserve for cost advantage cooperation system and the strengthening of an open innovation ecosystem such as postdoctoral workstations

realizing resource sharing and forms a standardized platform-based and digitalized R&D support system to

comprehensively enhance R&D efficiency and core technology competitiveness providing a solid guarantee for

product innovation and technological leadership.Application of intelligent technology

LAZZEN has established a specialized simulation technology platform in the field of low-voltage electrical appliances.Relying on simulation computing tools and software we conduct virtual prototype function evaluation of product 3D

Low-voltage electrical appliances computing-electricity coordination intelligent control application models to facilitate product forward design and form a closed-loop forward design method. The platform supports

Product intelligent upgrade adaptive scenarios AI empowerment platformization and ecologicalization complex working condition assessment responds quickly to market demands and currently has multi-scenario

Build smart office Good House and other smart and seamless scenarios with people-oriented simulation analysis capabilities such as high voltage high breaking capacity and temperature rise and continues to

expand in assessment dimensions and analysis depth building an increasingly complete and industry-leading virtual

prototype assessment capability.Application of information technology Common technology module (CBB) LAZZEN series product platform Research and development tools

Structural CBB modules for Set up a three-disconnection Under the Integrated Product

Information technology: Mass sensing communication Internet of Things intelligent controllability mechanisms arc extinguishing and one-connection product Development (IPD) process

In line with the transformation of the power industry grid interconnection drawer bases and accessories platform. The framework framework more than 800

Green carbon energy conservation digital and information-based energy were built to reduce repetitive product is intelligent with soft preferred material libraries and development and improve R&D connection optimization and low 57 types of technical requirement

efficiency through CBB sharing power consumption; molded libraries were established

and reuse. shell products reduce power through integrated secondary

consumption; micro-break development enabling various

Three Strategic layouts products achieve low moment of knowledge bases to serve rapid

inertia mechanisms; contactor design calls and increasing R&D

products ensure the reliability of efficiency by 30%.Strategy1 Strategy2 Strategy3 contact conduction and action.Smart Living Smart Power New Energy Industry-university-research collaboration

Distribution

Focusing on the smart living Focusing on the intelligent Focusing on the new energy LAZZEN has established an industry-university-research cooperation system driven by both technological

industry we put forward the power distribution industry industry including wind power breakthroughs and talent cultivation focusing on areas such as low-voltage electrical appliances new energy

concept of living in a quality we provide a complete set of photovoltaic energy storage and intelligent power distribution to achieve rapid industrialization of technological achievements. The overall

home featuring intelligent and solutions for the integration of new energy vehicles and other coordination of our industry-university-research cooperation is carried out by the human resources department the

unobtrusive experience. power distribution products. fields we have maintained research co-creation projects are mainly operated by ITMT and the corresponding field Mozi experts and the head of

steady growth. the postdoctoral workstation work together.Institution Research Collaboration Help in Cultivation Students

Business value

Brand influence

Attracting talent

4142

Open Day

Club

Scholarship/

Grant

Training

base

Elite talent

joint training

Technical

sharing

Technical

breakthrough

Research

project2025 Environmental Social and Governance Report

Construction of the R&D team Indicators and goals

LAZZEN attaches great importance to the team building of R&D talents recruits industry elites and builds a learning Data performance

organization. We have established the LAZZEN Talent Development Center which includes the Edison Academy

the Pangu Academy the Panshi Academy the Ganjiang Academy and the Lean Academy to continuously match the

job competency requirements and facilitate the growth and development of employees. At the same time three Disclosures Units 2025

specialized groups have been established for R&D personnel covering structure electromagnetism and thermology.A total of 24 professional sharing sessions were held to continuously strengthen professional knowledge reserves Research and development investment amount CNY 10000 33379.09

improve technical skills and provide strong support for achieving work goals efficiently. Proportion of research and development

investment to business income % 7.44

Number of R&D personnel persons 657

Proportion of R&D personnel % 25.79

Key honors

Edison Academy Professional Sharing

Research incentives

Gold Award of German iF Design Award 2025 Second prize in the Xiongan Near-Zero Carbon Building Technology Application Competition Shanghai Design Innovation Center 2025-2027

LAZZEN fully stimulates the innovation vitality and work enthusiasm of its employees promotes technological

progress and business development builds a good innovation culture that encourages exploration values innovation

and allows trial and error through systems and mechanisms such as the Technology Innovation Award Selection

System and sets up key position allowances to encourage employees to take on responsibilities and forge ahead

injecting internal impetus into our continuous technological innovation and high-quality development.It aims to reward For teams that To encourage Mozi

teams or individuals perform exceptionally experts to build a

who have achieved well in major technical family of

significant development and professional teams Recognition of high-tech transformation Demonstration Project of Key Technology China IDC Industry Innovation Technology and

technological implementation drive the improvement projects in Shanghai Research and Application of PEDF Building Direct Current Power Distribution System Product Award 2025

innovation projects in the fields of technical position

breakthroughs in the of product marketing engineers' capabilities

product development technology and inspire

process and accelerate procurement professional position

product renewal. manufacturing engineers to develop

functionality etc. towards Mozi experts.Technology Innovation Gold Project Award Mozi Expert Allowance

Award Second Prize of Science and Technology Award PEDF Demonstration Project - GoodWe Zero Bronze Award in the Artificial Intelligence

of China Institute of Communications - key Track of the Fusion Innovation and

Incentives for research projects technologies and equipment for high-precision Carbon Cabin Development Professional Competition

energy metering and control of 5G base stations

43 442025 Environmental Social and Governance Report

Intellectual property protection During the reporting period

LAZZEN establishes an intellectual property management system and conducts intellectual property management

work in accordance with the requirements of the Enterprise Intellectual Property Compliance Management System we conducted 11 training sessions and other activities on intellectual property protection

(GB/T 29490-2023) and incorporates intellectual property management into the scope of our strategic management.We implement systematic and standardized management of intellectual property policy objectives resource three of which were mainly targeted at R&D personnel

management basic management implementation and operation and review and improvement and formulate covering approximately 600 people.systems such as the Intellectual Property Management Manual Intellectual Property Management Procedure and

Intellectual Property Risk Management Procedure to form a management mechanism covering the entire life cycle

of intellectual property creation application protection and management. We have obtained the certification of the

Intellectual Property Compliance Management System continuously maintain the effective operation of the system

and complete internal audits and accept supervision audits as required every year.Disclosures 2025

LAZZEN conducts an annual self-inspection of intellectual property compliance to

identify and address intellectual property risks in advance. During the reporting

period we continuously optimized our intellectual property management system Number of invention patents applied to the main business 404

improved the intellectual property management mechanism for strategic-level

projects broadened the scope of patent application subjects encouraged the Number of patent applications for invention during the reporting period 159

manufacturing process to apply for patents around technological achievements

such as process improvement equipment optimization and efficiency enhancement Number of invention patents granted during the reporting period 56

strengthened the management of patent information confidentiality strengthened

the security control of technical secret materials and optimized the evaluation rules

for the technological innovation award further improving the standardization and Number of new patents granted during the reporting period 379

systematicness of our intellectual property management.Number of patents held 2016

LAZZEN attaches great importance to its own intellectual property protection

work. We acquire suspected patent infringement information through intellectual

property competition analysis competitor analysis patent monitoring etc. We Number of trademark and word registrations held 731

acquire suspected trademark infringement clues through monthly active monitoring GB/T 29490-2023 Intellectual

of trademarks and business names passive channels of clue collection overseas Property Compliance Number of software copyrights held 107

trademark monitoring of the intellectual property protection center intellectual Management System Certification

property customs filing etc. Certificate Annual number of new patent applications 572

Early warning and risk assessment of intellectual property

Patent risk assessment

Patent risk management for R&D projects：Conduct patent risk assessment incorporate the review of

risk response measures into the technical review achieve timely problem closure prohibit projects with

patent risks from proceeding to the next stage and increase the frequency of assessment based on the

importance of the project

Regular patent early warning assessment:Use a patent search database to automatically obtain and

evaluate newly published patents in key areas of interest and technical fields on a regular basis

Trademark risk assessment

Embed the use risk assessment in the assessment process for new trademark applications alert different

risk levels to different levels of responsible persons and then update the use risk assessment conclusions

and alert them simultaneously based on changes in the review progress conclusion etc. of the trademark

application

45 462025 Environmental Social and Governance Report

Intelligence Ecosystem Products Expand smart microgrids and Zero Carbon operations

On the basis of ensuring reliable power supply and distribution we expand our capacity in microgrid

As a leading enterprise in the high-end market of low-voltage electrical appliances in China LAZZEN focuses on collaboration and green energy consumption. Through integrated regulation of source-grid-load-

the digital upgrade of the industry and the development needs of the national "dual carbon" strategy. Through storage systems we provide our cucstomers with support such as multi-energy complementarity

the upgrading of intelligent and digital products we continuously launch high-end solutions suitable for diverse optimization and demand response strategies for households drive the energy consumption system

scenarios such as new energy intelligent computing centers intelligent buildings infrastructure electricity to upgrade from "passive power supply" to "active energy consumption management" and fully

IoT (Internet of Things) and new energy vehicles. We steadily advance the expansion of key customers in the unleash the carbon reduction value of distributed green electricity.industry and the creation of model projects. At the same time supported by sustained high R&D investment we

drive the enterprise to transform from a traditional low-voltage electrical appliance manufacturer to an expert in Expand energy efficiency optimization and low-carbon management

smart electrical solutions and inject the LAZZEN power into industrial energy transition and social low-carbon

development through all-round technological innovation and scenario-based solutions. On the basis of ensuring the safe operation of distribution systems we expand energy efficiency optimization and low-carbon management capabilities. By continuously collecting and analyzing

energy consumption data we provide customers with support such as energy consumption

Smart power distribution structure analysis and energy-saving transformation assessment promote the upgrade of

distribution systems from "electricity consumption management" to "energy efficiency and energy

carbon management" and fully release the carbon reduction value on the distribution side.Smart distribution has become key infrastructure supporting energy transition safe electricity use and energy

efficiency improvement against the backdrop of the deepening of the national "dual carbon" goals the

comprehensive advancement of new power system construction and the accelerated implementation of energy Case Load Identification Project

conservation and carbon reduction transformation in key industries. Taking smart distribution components as

the core foundation with safety efficiency and carbon reduction as the core goals and integrating cutting-edge In collective living scenarios such as university dormitories and staff apartments non-compliant high-

technologies such as IoT cloud computing big data and AI LAZZEN has launched smart distribution solutions and power electrical appliances have become the main cause of electrical fires but existing facilities have

products that are both reliable and industry-leading which deeply adapt to power distribution demands in multiple insufficient design redundancy and inefficient manual inspection making it difficult to identify hidden

fields such as new energy smart buildings high-end manufacturing and rail transit; at the same time we continue to dangerous loads in a timely manner. Relying on non-intrusive load monitoring technology we can not only

deepen the integration and innovation of smart distribution software and hardware and create systematic solution achieve millisecond-level cut-off of potential power sources for active fire prevention accurately distinguish

covering the distribution side the consumption side and energy and carbon management to fully assist customers between dangerous/conventional electrical appliances of similar power but also achieve 7×24-hour

in achieving digital intelligent and low-carbon upgrades of the distribution system. unmanned operation at the management end to reduce labor costs. Through long-term data accumulation

Case studies in the field of smart distribution we can establish user electricity consumption behavior profiles providing a data basis for grid load dispatching and line transformation.Digitalization and standardization at the panel and cabinet level

With SEA Digital Intelligent Cabinets as the core integrated intelligent components are integrated Smart human settlements

to achieve automatic device identification and plug-and-play significantly enhancing delivery

efficiency and human efficiency. At the same time by visualizing operational status assessing LAZZEN adheres to the "1+3+N" and "All IN ONE" design concepts prioritizing "safety and reliability low carbon

equipment health and warning of anomalies the risk of failure is reduced the intrinsic safety and energy efficiency health and comfort" creating intelligent living scenarios with communication sensing and AI

of power distribution is consolidated and a high-quality sustainable power distribution data technologies as the core independently developing the LAZZEN Yunju Open Ecosystem Platform and constructing

foundation is built. N intelligent subsystems such as energy consumption management and smart lighting to create a smart home

Strengthen system-level monitoring and operational analysis solution centered on Tianqi and bring high-quality smart living experiences to Chinese families.Centering on the centralized management requirements of distribution rooms and medium The platform is built on cutting-edge technologies such as multimodal IoT communication and AI algorithms with an

and low voltage systems we achieve rapid fault location and multi-dimensional presentation of open and compatible system architecture and a comprehensive upgrade in four aspects including experience and

operational status through unified models and single-line graph self-configuration and drive the interaction. LAZZEN focuses on refining energy efficiency management and intelligent lighting systems which can

transformation of distribution operation from "passive response" to "active management". We not only achieve precise power usage control and strengthen power usage safety but also create personalized light

introduce multi-algorithm collaborative load forecasting models and achieve adaptive updates and shadow experiences.implement scenarios such as capacity planning and dispatch optimization and enhance the

economic operation level of distribution. During the reporting period we launched a series of 6-inch smart central control screens leveraging their

technological and scenario-based advantages to be implemented in multiple real estate projects and achieve bulk

Strengthen local perception and rapid response capabilities supply to leading real estate developers. At the same time we achieved a number of industry results: we became

the sole partner in the field of indoor smart power consumption intelligence of the Science and Technology and

For scenarios with high response speed and high system independence requirements PXT station Industrialization Center of the Ministry of Housing and Urban-Rural Development; the digital home integrated box

control units are deployed on the distribution cabinet side to achieve real-time monitoring and rapid participated in the formulation of standards in 12 provinces and municipalities among which 5 provinces and

alarm of key circuits and equipment enhancing the overall resilience of the distribution system with municipalities have released them; The integrated box has been implemented at 23 sample sites and the Zhejiang

local processing capabilities. Jiaotong Control project has become a benchmark for Beilun Technology.

47 482025 Environmental Social and Governance Report

Case Key technologies for building low-carbon energy efficiency Potential

and smart living equipment based on AI problems Risk types Risk analysis Response measures

LAZZEN developed an AI environmental control system for smart homes and green buildings in response C onduct specialized training on privacy protection and

to the security of aging homes the need for dual carbon energy conservation and the privacy pain points Millimeter-wave radar can ethical compliance for all staff and require R&D personnel

of traditional cameras and implemented it in smart home scenarios such as high-end residences and precisely monitor human to incorporate ethical guidelines throughout the entire

office buildings. The system is centered on smart sensors integrated with millimeter-wave radar and AI Surveillance activities and vital signs. If stage of technical design and application.temperature control algorithms achieving high-precision human pose detection and linkage control and privacy deployed without effective A dopt a pure radar sensing technology approach physically

through millimeter-wave radar and deep learning algorithms. The AI temperature control algorithm can violations control it can lead to privacy discarding optical cameras to cut off the risk of image

autonomously learn room thermal inertia and user comfort preferences taking into account privacy violations especially in close- privacy information leakage from the source.protection safety monitoring and low-carbon energy conservation empowering the upgrade of smart range applications such as E stablish a multi-level review mechanism for technical

living. elderly care at home. solutions codes and research results and implement transparent supervision and review processes.Technology ethics Privacy

Issues I mplement the requirements for classified and graded protection of data and implement full life-cycle security

To fully guard against scientific ethics risks LAZZEN integrates ethical compliance requirements into the R&D Millimeter-wave radar collects control over collected sensitive data.process ensuring that all R&D activities and technology applications strictly follow current ethical standards laws sensitive personal data such Training sample data from the research and development

and regulations proactively follow and adapt to the latest regulatory requirements and conduct systematic ethical as human position behavioral stage should be anonymized to remove information such as timestamps and location tags and the original data

evaluations before project initiation. At the same time we established a full-process ethical control and information Data collection trajectory health status etc. If data collection storage should be regularly destroyed after the model training is

disclosure mechanism promptly disclose the progress of research and development and the results of ethical and use and use are not carried out in completed.reviews actively accepted social supervision effectively prevented and responded to scientific and technological accordance with regulations it C learly define the "Three No's" management red line:

ethical risks through full-chain control and ensured the compliant healthy and sustainable development of may lead to ethical issues such no collection of original facial or identity information no

scientific and technological research and development. as data leakage and abuse. upload of undesensitized original waveform data and no

conduct of invisible monitoring without user authorization.Our application of AI technology is mainly project-oriented focusing on the research and development of specific

technologies for industrial equipment monitoring and smart living scenarios. We do not basically encounter common

AI risks such as algorithmic bias data abuse and loss of control over autonomous behavior.In smart home scenarios we rely on millimeter-wave radar technology to achieve medical-grade precision detection I mplement a local processing strategy for edge computing

of vital signs and human activity. The physical principle of millimeter-wave radar technology which detects objects where all signal processing is completed on the device end Millimeter-wave radar can raw data does not leave the domain or upload and only

based on microwave signals does not involve ethical issues in itself but in practical applications it can collect detect physiological signals outputs the final decision results externally.sensitive data such as human behavior trajectories and vital signs which may lead to a series of scientific ethical risks such as human movement E xpand the boundaries of privacy protection responsibilities

and challenges such as privacy violations and data abuse. LAZZEN ensures that the application of technology does breathing and heartbeat. If and incorporate data security and ethical requirements into

not infringe upon individual rights or public interests through multiple measures such as optimizing the technical Social and used for real-time tracking the assessment of all positions in R&D manufacturing and

architecture standardizing systems and processes and providing compliance training for all employees. Misuse and operations.abuse psychological or large-scale monitoring effects it can raise public concerns E stablish a privacy review mechanism for patent submissions and academic releases and strictly prohibit

about privacy and freedom the public release of algorithms data and charts that can

and have adverse social and restore sensitive information.psychological effects on social S trictly follow the "notice-consent" principle and conduct

behavior. data collection and technology application on the premise

of user authorization.

49 502025 Environmental Social and Governance Report

Digital Transformation Digital construction initiatives

LAZZEN focuses on the digital and intelligent upgrade of its full-chain business actively promotes digital

transformation steadily enhances information technology research and development capabilities strives to improve Digitalization of channel management

the process platform builds a scientific operation mode and continuously converts the achievements of information LAZZEN implemented the second phase of the LCM Dealer Portal project achieving a full-process online reconstruction

technology construction into development effectiveness. of the core business of dealers. Through the electronic transformation of the signing process the confirmation and

circulation cycle was reduced from 10 days to 7 days and business efficiency was increased by 30%. The compliance

We have established a Digital Transformation Committee (DXMT) which has the management capabilities of digital design of electronic signing and the full-process systematic control also avoided the risks of document omissions and

transformation planning investment project decision-making and architecture governance and has defined ambiguous rights and responsibilities in the paper process. It achieves pre-emptive control of financial and compliance

specific responsibilities to fully promote the implementation of integrated digital construction. Based on the overall risks improves the efficiency of connection with partners and enhances the stability of industrial chain synergy.digital transformation plan and project construction requirements we have formulated the Operating Mechanism

of the Digital Transformation Committee established a full-process closed-loop management mechanism of

"planning - implementation - review - optimization" guided by the annual digital transformation special work plan

and advanced digital project construction in stages according to different business scenarios we clearly define the Digitalization of engineering services

implementation goals responsible entities and timeframes of each project; hold regular meetings of the Digital

Transformation Committee to conduct a comprehensive review of the achievements and business empowerment LAZZEN builds the LPM Smart Distribution Project management platform focusing on the full process control of smart distribution projects. We innovatively build a standardized management system consisting of 13 core milestones which

effects of each project sort out the problems in the transformation process and clarify the optimization direction in can flexibly configure key nodes such as material preparation production processing delivery acceptance etc. Through

combination with operational data and actual business needs. refined management we effectively reduce inventory overstock payment delay and audit compliance risks and

strengthen project compliance and enhance management transparency.Architecture of the Digital Transformation Committee (DXMT)

Digital Transformation Main Committee Digitalization of production operations

LAZZEN is advancing the MES production line transparency project using hierarchical electronic dashboards to monitor

production status in real time enabling production managers to grasp production progress and abnormal information

Marketing Research and Supply Chain Operation Digital in real time and combining data-driven meeting mechanisms to quickly identify the root causes of problems promoting

Subcommittee Development Subcommittee Subcommittee Technology performance correction and per capita output increase improving delivery efficiency by 10% improving the work Subcommittee Subcommittee efficiency of basic managers by 25% and achieving paperless office. By introducing AI technologies such as machine

learning and deep learning we have continuously improved the construction of the APS system. Through operational

Digital transformation operation mechanism research constraint algorithms we have reduced the scheduling time of planners by 27% improved planning accuracy and

response speed and strengthened intelligent control of the production process.

0102030405

Project Digitalization of warehouse managementRequirement Solution Procurement Acceptance

review review review implementation review LAZZEN carried out the vertical warehouse efficiency optimization project dynamically optimizing warehouse resources

through algorithmic strategy innovation. Based on the cold and hot data of material usage frequency in the container

warehouse of the vertical warehouse we intelligently calculated and matched the optimal warehouse location for

LAZZEN digital project classification overview inbound and outbound paths and automatically moved the warehouse to improve the efficiency of material inbound

and outbound. We achieved a 5% increase in pallet warehouse utilization 19% energy savings in container warehouses a

Application systems SAP PLM MES WMS etc 15% increase in inbound efficiency and reduced inventory overstock and energy waste. In addition we have reduced the

time for handling abnormal processes by adding abnormal box card control and one-click material lock to further improve

Data platform Business analysis platform five aspects of marketing product line turnover efficiency.operation combat platform etc

Utility software Solidworks moldflow etc

Digitalization of logistics supply chain

Basic operations and maintenance Computers hardware servers firewalls penetration testing

In 2025 LAZZEN integrated the SRM smart plant (vehicle management system) and WMS platforms and displayed

the raw material and finished product receiving and dispatching processes in the form of dashboards enhancing the

During the reporting period LAZZEN through full-chain digital and intelligent upgrades deeply integrated transparency of each process node and personnel efficiency of raw materials (especially urgent materials) and finished

digitalization into product lifecycle management covering every link from design supply chain production to products.quality control data-driven decision-making improved operational efficiency and strengthened risk prevention and

control.

51 522025 Environmental Social and Governance Report

Digitalized quality control Product Quality

LAZZEN has upgraded its data-driven full-process quality control system built a closed-loop digital quality system

deployed the LIMS (Laboratory Information Management System) in reference to the CNAS system increased

report production efficiency by 89.6% through the automatic generation of test electronic records and reports and

simultaneously strengthened the traceability of test data and reduced the risk of human error; the FAI intelligent image Governance

recognition project was implemented relying on AI vision technology to achieve automatic recognition of new product

inspection images which increased inspection efficiency by 16.3% and precisely prevented quality complaints through LAZZEN has always adhered to the core orientation of "Customer-centered Quality as dignity" anchored the

the system's fool-proof mechanism; we introduced professional FMEA (Failure Mode and Effects Analysis) tools to improve

the quality early warning system and help quickly identify the root causes of problems. At the same time we optimized development vision of "Building quality competitiveness becoming a synonym for high quality in the industry"

the QMS system based on the pain points of customer complaints to achieve precise implementation of special customer and adhered to the quality culture and policy of "Prevention first self-management doing it right the first time

requirements through digital tagging management significantly reduced the incidence of related customer complaints continuous improvement". LAZZEN is deeply engaged in quality requirements and standards centered on IPD

and built a comprehensive defense line for product quality. builds a comprehensive efficient and appropriate quality management system takes customer experience as the

fundamental benchmark regards product reliability as the foundation of the enterprise and through continuous

innovation and optimization provides intelligent green safe and excellent products and quality services to

Digitalization of material procurement customers and society steadily enhancing quality competitive advantage and moving steadily towards

Through the integration and calculation of multi-system data LAZZEN has digitized the material planning order the international leading level.management strategy model online and relied on automated system order placement to create a closed-loop material As of the end of the reporting period the product

replenishment planning system that integrates data integration intelligent analysis human-machine collaborative

decision-making and automatic execution effectively enhancing planning accuracy efficiency and agility and reducing sampling pass rate rose to 99.6% the business scope

inventory costs and material shortage risks. Currently 80% of material orders have been placed through RPA (Automated covered by the quality management system certification

Order Placement). reached 100% and the ISO 9001 quality management

system certification and IATF 16949 automotive quality

management system certification remained valid.Production line upgrade

We applied lean thinking through production line layout workstation design job balance combined with the use of

automated equipment low-cost automated tooling and tools to achieve a lean flexible benchmark production line ISO 9001 Quality Management IATF 16949 Automotive

that meets small-batch multi-variety demands. System Certification Quality Management System

LAZZEN Quality strategy goals Certification

The "NDW2-2000 fully automated production line" at the Hangzhou Bay Mega Factory uses automatic assembly

processes such as "automatic oiling automatic screw assembly automatic lid closing automatic arc extinguishing

chamber assembly and automatic drawer seat assembly" to create an unmanned control mode of automatic Year Goals Specific Content

packaging in the packaging section and AGV automatic conveying achieving full control of work orders and material

information as well as full control of intelligent shelf storage locations. In 2025 Deep promotion The product quality level is leading in the industry

Quality culture

Prevention-oriented Self-management Do it right at the first time Continuous improvement

Work philosophy Work style Work requirements Work topic

Shift from eliminating Quality management Work must be done rightly Constantly improve

quality issues to is integrated into the at the first time products and innovate pursue

preventing them. daily work of business must be made well at the excellence and

Management extends to departments everyone first time services must avoid stagnation and

clients and suppliers. is responsible for the be provided perfectly arrogance.quality of their own eliminate quality risks and

work. reduce quality costs.

53 542025 Environmental Social and Governance Report

Strategy R&D Materials Process Customer

LAZZEN adheres to the quality consensus that "Prevention is better than correction and do it right at the first time

has the lowest cost" and has established a quality management system covering R&D manufacturing processes D evelop a project Develop material C learly define the A ccept customer

and supply chains. At the source of research and development we reduce quality risks throughout the entire life quality plan and clearly inspection documents quality control points in problem feedback define the quality goals and clearly define the quality control plan. through the Customer

cycle from the design source by optimizing processes and deliverable standards strengthening failure avoidance of the project. inspection standards. Service Management

planning for similar problems and improving efficiency in solving R&D problems. At the mass production and supply Monitor the production System (CSM).chain end we launch special campaigns to tackle key quality issues simultaneously carry out special campaigns for Conduct tests according C onduct incoming quality through first

improving the quality of suppliers and materials strengthen quality synergy in the industrial chain and ensure the to the test cases to inspection through the inspection patrol I mport quality issues ensure the performance QMS system and record inspection and final into the Improvement

stability and reliability of mass production products. In the production process we optimize process control through compliance of the new the results. inspection and upload Management System

CLE (Process Control Level) projects Quality Management Group (QCC) activities and automation upgrades increase product. the data to the QMS (IMS) and form a

product pass rate and spot-check pass rate and reduce process fluctuations and resource waste. At the platform system. team to implement

empowerment level we promote material normalization improve the test case library and CBB library optimize Ensure the project improvements.the IMS system and conduct quality training to continuously enhance the quality level of the entire chain through delivery quality through technical review (TR)

standardization and digitalization capabilities. and business decision

review (DCP).Carry out the special project for improving

TOP issues

O ptimize the R&D process and Carry out the 6sigma special project

the delivery template Carry out the FMEA special project

Improve the issue closure rate

Improve the Optimize the engineering change Case Quality Management Group (QCC) activitiesImprove the

quality of technical

new product quality of mass- business

research and produced LAZZEN focused on quality improvement and cost optimization at the production site implemented QCC

development products Carry out the special project activities promoted full participation in quality management and created an atmosphere of continuous

Carry out periodic reliability

Improve the for improving the quality of TOP improvement. During the reporting period 27 groups of topics were proposed and 163 employees

testing services to monitor conformity Improve the suppliers participated in the activity. At the same time the product qualification rate was improved resource waste

the product quality testing of mass material production quality Carry out the special project for was reduced and the quality awareness and collaboration of employees were significantly enhanced.compliance in real time products improving TOP materials

Carry out the special project for

Improve the advancing quality inspection forward

Establish a core customer customer service Improve

satisfaction of the process Enhance the automation level of

service team and provide core products quality material inspection

specialized services

Jointly carry out quality Carry out QCC activities

improvement projects with Launch a special project to enhance CLE

customers (Process Control Level)

Improve the level of process automation

Impact risk and opportunity management

Quality risk management Quality incentives

To strengthen quality risk management LAZZEN ensures reliable quality throughout the product life cycle by

formulating project quality plans strictly controlling incoming and outgoing inspections implementing full-process LAZZEN builds a variety of quality incentive methods and conducts a series of quality incentive activities to fully

monitoring and closed-loop customer problem management. LAZZEN has established a regular quality assessment mobilize the enthusiasm and initiative of all employees to participate in quality improvement. During the reporting

and improvement mechanism. Through monthly quality meetings and annual management review meetings we period we organized three rounds of immediate quality incentive evaluation three rounds of IMS excellent case

systematically assess product quality risks quality target performance levels and improvement directions. At the selection conducted quality knowledge competitions quality essay competitions with prizes and special activities of

same time relying on regular internal audits and inspections we accurately identify the improvement points in the "Flagship Plan - Quality Star" submitted more than 200 people for evaluation 17 excellent cases received 47 quality

quality management process of each business department and promptly follow up on the improvement of non- essays and 27 projects participated in the Quality Star selection. Ultimately a number of outstanding individuals

conformities continuously improve the consistency of operational processes with quality management requirements teams and works were selected and incentivized effectively strengthening the quality responsibility awareness of

and promote the closed-loop optimization of the quality system. employees and creating a good quality culture atmosphere.

55 562025 Environmental Social and Governance Report

Product recall

LAZZEN has established special management systems such as the Customer Return and Recall Management

Procedure and the Nonconforming Product Management Procedure and has established a closed-loop handling

process and emergency response plan for after-sales issues. We have implemented standardized and efficient

handling of return and recall matters for customer standard orders and sample orders effectively safeguarding the

legitimate rights and interests of us while fully protecting the legitimate demands of customers and built a solid line

of defense for product quality after-sales service.Product recall process

Submit quality exchange and complaint 01

Quality incentive activities applications return applications.Quality training

LAZZEN continued to carry out quality training activities holding a total of 30 quality training sessions throughout 02 Review non-quality return information and

the year with more than 700 participants. The training was conducted in the form of lectures combined with project issue an execution recall notice; quality return information review and recall notice

practice covering aspects such as quality concept consensus quality professional tools quality system knowledge issuance along with on-site after-sales

business process knowledge audit skills and techniques to comprehensively enhance the professional capabilities service.and practical skills of employees and lay a solid talent foundation for the steady improvement of the company's Count and confirm the quantity of 03

product quality. returned items.The quality department of LAZZEN conducts specialized training on automotive-grade systems

From May to July 2025 in order to meet the standards and quality requirements of automotive-grade 04 Preliminary inspection of returned goods.products LAZZEN's quality department carefully planned and organized relevant personnel to participate

in the automotive-grade system special training. The training course covered several key areas:

The Error-Proof Verification Training leads trainees to explore the ingenious strategies for preventing Confirm the quality analysis and handling plan

errors building the first solid line of defense for product quality; 05of the returned items make meeting decisions

"Quick Response and Team Problem-Solving Training" focuses on developing agile thinking and based on the classification of "safety and

efficient collaboration skills in the face of complex problems ensuring that teams can break through significant impact issues batch issues general

quickly at critical moments; issues" fill out the product recall list and

The IATF 16949 Special Characteristics Management Requirements course provides in-depth notification form and initiate the recall process. 06 Issue plans for returned and reworked and repaired products and ship them as needed.interpretation of the standard to help students accurately grasp the key points of special characteristics

management;

The "Qualified & Nonconforming Product Management" course focuses on the meticulous control of

product quality preventing the inflow of nonconforming products from the source and ensuring that Dismantling or scrapping of returned items. 07

every product meets high-quality standards;

The Subsupplier Management course aims to optimize the

supply chain system and ensure that the products and services

provided by subsuppliers are always stable and reliable

through scientific and effective management methods;

The course "Change Management & Change Management - In 2025

Production Trial Run" systematically explain the processes and

methods of change management as well as the precautions The number of products The sales involved in The number of product

during the production trial run phase providing strong support recycled was product recycled was recall incidents was

for enterprises to achieve a smooth transition during product

change. 0 0 0

57 582025 Environmental Social and Governance Report

Indicators and goals LAZZEN has formulated specialized management systems such as the Customer Complaint and After-sales Handling Management Procedure Customer Return and Recall Management Procedure and Process Management Specification

for Large Customer Service System. At the same time we regularly conduct a series of training sessions for the service

capacity enhancement camp providing monthly specialized training for the service team on low-voltage electrical

Indicators Goals Achievement status fundamentals professional product knowledge and on-site problem handling. We will continue to strengthen our team's

professional service capabilities and ensure reliable power supply for customers in all aspects.PPM decline rate -25% Achieved

During the reporting period we optimized the management system for large customer service standardized the work

Client RoHS issue complaint 0 Achieved content and execution process related to large customers thereby enhancing the professionalism and pertinence of

large customer service. At the same time we rationally integrated effective resources clarified customer classification

Customer audit pass rate in one go 100% Achieved standards precisely met the needs of customers at different levels through differentiated services and further unified full-

channel service standards and solidified standardized service processes to effectively improve overall service efficiency.The PPM reduction rate of defective batches of materials going

online -25% Achieved LAZZEN launched the CSM after-sales management system to create a digital after-sales solution centered on "integrated

control intelligent efficiency improvement and data-driven decision-making". The system integrates the full-scenario

Number of RoHS defects in incoming materials 10 Achieved functions of after-sales service work orders quality exchanges and customer complaints breaking down the barriers of

traditional decentralized after-sales management. At the same time it links up after-sales service personnel of dealers

Incoming material pass rate 98.5% Achieved to build a full-chain service loop of "headquarters - dealers - customers" which not only improves service quality but

also strengthens the uniformity and efficiency of the brand after-sales system. Through digital means we achieve a dual

Product sampling pass rate 99.6% Achieved improvement of enterprise after-sales service efficiency and customer satisfaction and fully empowered the refined and

efficient implementation of customer service work.The proportion of business covered by quality management

system and information security management system 100% Achieved In response to customer feedback LAZZEN focuses on key customers and bulk quality issues integrates internal resources

certifications to establish an efficient quality issue escalation and handling mechanism builds a complete management system

covering pre-issue quality issue escalation handling and post-issue customer complaint handling and achieves pre-issue

prevention and post-issue efficient resolution through preventive management and rapid response measures. To enhance

customer service quality and satisfaction in all aspects.Customer Service We have developed the Customer Complaint and Aftermarket Management Procedure which clarifies the job

responsibilities of relevant departments such as dealers/offices after-sales service departments technical support

departments process quality departments from the aftermarket end and makes standardized requirements for the

Customer service system record-keeping and follow-up work throughout the complaint handling process achieving clear rights and responsibilities and closed-loop control in aftermarket problem handling. We continuously improve the customer service commitment

system. Customers can report on-site problems through the local office or the hotline in the first instance. If on-site service

LAZZEN has always adhered to a customer-oriented service philosophy. Our is required it will be followed up and supported by a dedicated person. LAZZEN commits to the core service principles

domestic service network cover more than 140 key cities achieving end-to-end of three-year product warranty and priority resolution of customer problems and establishes a graded rapid response

rapid connectivity through an ultra-representative service system and providing mechanism: responding to general problems within 12 hours major problems within 1 hour and serious incidents

professional and efficient services to customers in more than 30 countries and within 0.3 hours with after-sales engineers arriving at the site within 24 hours and replying to customers with problem

regions around the world.Through internal and external linkage we provide explanations or handling reports within 3-5 working days to do our best to ensure the customer experience.customers with more considerate more professional and more efficient

services. LAZZEN was the first in the industry to introduce a three-year warranty In 2025 LAZZEN's overall customer satisfaction score was 93.20 points.service for its products insisting on putting customer needs at the center. After-

sales service always prioritizes solving practical problems for customers and

fully ensures the safety and reliability of customers' electricity usage. From

responding quickly to customer needs to providing 7×24-hour uninterrupted

service and to archiving information throughout the service process we have

established a standardized full-process service system to ensure efficient

standardized and traceable quality service for customers.LAZZEN has obtained the five-star certification required by the GB/T 27922-2011

Commodity After-sales Service Evaluation System Standard marking that our Certification for after-sales service of

after-sales service capabilities have reached the benchmark level within the goods

industry and the national standard. 2023 2024 2025

Customer satisfaction score 92.28 93.11 93.20

59 602025 Environmental Social and Governance Report

Responsible marketing

LAZZEN strictly adheres to national laws and regulations such as the Advertising Law in the management of product

and business promotion scientifically formulates appropriate promotional content and promotion methods and

adheres to the authenticity and compliance of promotion. To regulate marketing cooperation and market order

LAZZEN has developed the Dealer Manual which clearly stipulates core contents such as distribution areas product

prices sales conditions and after-sales service guarantees ensuring that the cooperation between LAZZEN and

dealers is based on clarity and fairness and focusing on building a stable and win-win dealer cooperation network.At the same time we further improved the responsible marketing management system identified the circumstances

of malicious cross-regional sales by different entities in response to cross-selling behavior in market operations

formulated differentiated penalty measures and set reasonable exceptions. For violations that violate the principle

of genuine promotion such as false discounts and dealers' false self-development clear criteria for identification

Customer letter of thanks and tiered penalty schemes have been established and the applicable circumstances for aggravated and mitigated

Customer& Partner honor awards penalties have been specified to strictly regulate marketing practices in all aspects.To further empower the growth of dealers and enhance the overall professional and

market development capabilities of the channel LAZZEN also conducts specialized

training and case-sharing activities for dealers focusing on core areas such as

smart distribution and new energy (wind solar energy storage and charging). We

provide in-depth training on smart distribution solutions and new energy industry

solutions and offer comprehensive explanations covering industry pain points

solutions to project practice and question answering. The training and case sharing

effectively enhanced the solution implementation and market development

capabilities of dealer project managers helped to enrich the channel professional

talent reserve further strengthened the channel operation efficiency and laid a

Diamond Partner Unit of the Building professional foundation for the compliant expansion of market business. Through Zhongcheng Liancai Outstanding Sungrow Power Supply Beyond Ambition

Electrical Branch of the Architectural the construction of a comprehensive and standardized marketing management

Society of China Partner Award Award system and channel empowerment actions we have continuously enhanced our

market compliance operation capabilities and core competitiveness earnestly

practiced the concept of responsible marketing and promoted the long-term

symbiosis and common development of the enterprise and our partners.Sungrow Power Supply ESG Best Hopewind Electric Supplier of the Year

Practice Award Kehua Data Excellence Partner Award Award

Mingyang Smart Energy 2025 Strategic TGOOD "TGOOD Award" Ecological

Ampace Supplier of the Year Award Specialized training and case sharing for dealers

Supplier Award Partner

61 622025 Environmental Social and Governance Report

Information Security and Customer Privacy Protection LAZZEN has developed a comprehensive information security contingency plan incorporating network risk assessment information security training security testing and practical drills into the core links forming a

management loop of "assessment - training - testing - drill". LAZZEN conducts information risk assessment on a

LAZZEN strictly adheres to relevant laws and regulations such as the Data Security Law and the Cybersecurity Law regular basis. Through the information security risk assessment form and the annual information security planning

comprehensively strengthens the information security defense line and builds a full-dimensional information document we systematically identify and assess potential security threats clarify risk levels and impact scopes

security management system covering equipment security network security data security software and hardware and formulate response measures.We engage an external third-party company to conduct a comprehensive

security and computer room management. As of the end of the reporting period our information security penetration test on our Internet resources to accurately identify high-risk vulnerabilities such as weak passwords and

management system certification covers 100% of business areas and remains valid. configuration errors and to clarify the direction for subsequent security reinforcement.During the reporting period we conducted 9 disaster recovery drills for different infrastructure or application

systems covering key systems and facilities such as the core switch firewall K8S platform SAP LOMS order

Our internal digital intelligence platform is equipped with advanced security placement system and UPS of Haiyan Data Center. This verified that the disaster recovery mechanism met the RTO

permission management capabilities which can precisely implement data and RPO goals while identifying optimization items to continuously improve the disaster recovery system.access control and permission allocation effectively defending data and

privacy security at the management level. At the same time aTrust VPN WAF

firewall situational awareness and antivirus software are used to build a We regularly organize special training on information

technical barrier for information security. security and conducted special education on information

security for management trainees to enhance their

awareness of security. We conduct online phishing email

Data security prevention education and training for all employees

effectively enhancing the security awareness and

The security of end-user devices is guaranteed through the Lenovo practical ability of all employees to prevent phishing

access and desktop management system and the Internet behavior emails comprehensively safeguarding the security of

management system. A dual data protection mechanism of core company and customer data and ensuring the safe and

business data backup in the headquarters computer room and off-site stable operation of business systems.disaster recovery computer room is established along with regular

disaster recovery drills to ensure high data availability and stability. During the reporting period our information security ISO 27001 Information Security training coverage rate was 100% and no information

Management System Certification security incidents occurred. Information security education and training

Software and hardware security

The enterprise version of ESCT antivirus software is used for terminal anti-virus management and the

physical interfaces of terminal devices are controlled through the Lenovo desktop management system to

prevent unauthorized device access.Network and device security

Relying on the situation awareness system of network security service providers for real-time monitoring

and analysis of internal network threats isolation of production areas office areas and Internet access is

achieved through measures such as switch ACL policies firewalls and bastion hosts to ensure secure access

and auditing of important business systems.Computer room management

The computer room environment is equipped with complete fire protection UPS power supply and constant

temperature and humidity facilities strict access control and emergency response plans for catastrophic

failures are established and regular drills are conducted to further ensure the stable operation of business

systems.

63 642025 Environmental Social and Governance Report

03

Supply Chain

Supplier Management

Sustainable Supply Chain

Supply Chain Security

Treat Small and Medium-Sized Enterprises Equally

Contributions to the United Nations

Sustainable Development Goals (SDGs)

65 662025 Environmental Social and Governance Report

Supplier Management

Projects that require compliance with all

Strategic suppliers preferred suppliers national and local environmental laws and

LAZZEN is committed to sustainable development and responsible procurement and continuously improves and qualified suppliers limited suppliers and regulations such as environmental protection

optimizes the supplier management system. We have established systems such as the Supplier Access Certification eliminated suppliers. production safety and labor management.Management Procedure Supplier Stratification and Grading Management Approach and Supplier Performance

Management Approach to further standardize supplier management and enhance the efficiency and transparency of

supply chain collaboration.LAZZEN has established a supplier management structure centered on the Procurement Committee with our List of supplier system certifications

president as the top leader fully responsible for our supply chain management system and management. The

Committee has a supply chain system general manager and a supply chain quality operations department head

who are responsible for coordinating our supply chain management and a management structure in which general Quality Management System Certification ISO 9001

managers of product lines quality systems operations and strategic finance systems work together.Quality Management System Certification IATF 16949

The management structure of the Procurement Committee of LAZZEN

Intellectual Property Compliance Management System Certification GB/T 29490

First-level Procurement Committee Level Role Information Security Management System Certification ISO/IEC 27001

Director President / System General Manager / Category General Manager Environmental Management System Certification Certification ISO 14001

Deputy Director Procurement / Technology

Occupational Health and Safety Management System Certification ISO 45001

Second-level Procurement Committee

Permanent Member Operation Cost Technology Delivery Procurement Quality Others Hazardous Substance Management System Certification IECQ QC 080000

Supervisory

Committee members Audit

other attendees Energy Management System Certification ISO 50001

Third-level Procurement Committee Executive Secretary Procurement Committee Levels

Sustainable Supply Chain

Procurement Committee Three-level Procurement Committee Levels

Structure

Supplier full-process management LAZZEN adheres to the concept of sustainable development by establishing a sound institutional system and systematically promoting the construction of a green and responsible supply chain. In 2025 we formulated and

released the Supplier Social Responsibility Management Measures and the Supplier Social Responsibility Review

LAZZEN implements strict assessment criteria for the screening and admission of suppliers and integrates ESG into Form and encouraged suppliers to sign the Supplier Social Responsibility Commitment Letter. We fully integrate

the screening and admission criteria of suppliers based on the assessment of enterprise qualifications and delivery environmental social and governance (ESG) factors into the supplier access review and performance evaluation

quality to ensure the sustainability and stability of potential suppliers. process continuously strengthen the supply chain ESG management mechanism to provide solid support for

building a responsible and sustainable supply chain system.We continuously conduct environmental and social impact assessments of our suppliers incorporate environmental

Conduct a comprehensive audit and protection requirements social responsibility and compliance operations into the scope of supplier access and daily Purchase spread rate (excluding bulk) -6%

evaluation of new suppliers through management promote the joint practice of sustainable development concepts by upstream and downstream and

qualification certification system certification Incoming material pass rate 98.5% build a responsible green and low-carbon supply chain ecosystem. During the reporting period we conducted social

and product certification to ensure the impact assessments on 100 suppliers and environmental impact assessments on 120 suppliers. The on-time delivery rate to standard is 90%

availability procureability cost and support

capacity of materials. Domain purchase program file update rate 100%.

6768

Supplier social

responsibility

Hierarchical

management of suppliers

Supplier performance assessment

Access certification management2025 Environmental Social and Governance Report

Green supply chain Supply Chain Security

LAZZEN requires its suppliers to sign the Environmental Protection (RoHS) Agreement and the Supplier Material

Environmental Protection Assurance Agreement encourages the use of degradable raw materials and low-carbon

processes and promotes the green transformation of the supply chain. To ensure the continuous stability of the supply chain and the operation of the business LAZZEN has established a

full-process closed-loop management system covering supplier access certification performance assessment and

With the core strategic goal of building a green and sustainable supply chain system LAZZEN has established a supplier classification management. By establishing a backup mechanism for long and short lists of suppliers and

dedicated green supply chain management department to promote the greening process of the entire chain in a implementing a dual-supply backup strategy for key core materials we effectively diversify supply risks and enhance

coordinated manner. To achieve this goal we have built a green information platform that integrates SRM system supply chain resilience.WMS TMS (transportation management system) simulation analysis and PLM system building a full-chain digital

management platform that covers basic information management green production green material management

supplier management green design and green logistics. Supply chain risk management

Green Information Platform

LAZZEN attaches great importance to supply chain risk management and has established a management mechanism

covering risk identification assessment response and monitoring. We work with our suppliers to comply with

international environmental standards and social responsibility norms and avoid supply chain risks through a

diversified supplier strategy regular evaluation of supplier performance establishment of contingency plans the

signing of compliance commitments enhanced communication and cooperation with suppliers implementation of

supplier development and improvement plans and adoption of advanced supply chain management systems so as

to ensure the stable operation and continuous development of our business.Basic Green Green Material Supplier Green Design Green

Information Production Management Management Logistics In terms of risk identification and assessment we have established a regular supplier audit system systematically

Management screening for potential risks through annual comprehensive audits delivery quality tracking conflict minerals due diligence and environmental compliance checks such as RoHS. In 2025 we conducted more than 60 audits

In 2025 we continued to optimize the SRM system enhance operational efficiency and add a mold ledger of our supplier system more than 40 new supplier access audits and completed more than 30 mineral surveys

management module to achieve systematic ledger management. At the same time we promoted full access to the continuously enhancing the transparency and compliance of our supply chain.SRM system at the supplier end to achieve paperless business collaboration. In addition we promoted the use of

recyclable turnover boxes. By 2025 40 suppliers had adopted turnover box packaging reducing the use of paper To enhance supply chain resilience we revised and implemented a new version of the Delivery Contingency Plan

packaging and promoting green logistics. in 2025 further clarifying the emergency organizational structure response process and execution responsibilities

to ensure the rapid recovery and stable operation of the supply chain in case of emergencies. At the same time we

updated our conflict minerals management system documents and pushed suppliers to sign relevant compliance

Conflict minerals management agreements to strengthen risk control from the source.To practice responsible sourcing we strictly enact a conflict-free minerals sourcing policy. To implement the

requirements we urge suppliers to sign REACH commitment letters and fill out research forms to strengthen the

source management of hazardous substances. At the same time we updated management documents related to

conflict minerals requiring suppliers to complete agreement signing and establish a traceable and responsible

mineral supply chain system. In 2025 we conducted more than 30 mineral surveys in total.Sunshine sourcing

To continuously create an open transparent compliant and orderly procurement environment LAZZEN actively

promotes the Sunshine Procurement mechanism and comprehensively regulates procurement practices. We

explicitly require all suppliers to sign the Integrity Cooperation Agreement which constrains the cooperation

behavior of both parties at the institutional level and establishes the foundation of integrity cooperation. During the

reporting period the signing rate of the Supplier Integrity Clause was 100%. At the same time we regularly issue

integrity initiatives to smooth supervision and feedback channels set up an audit reporting hotline to accept internal

and external supervision and further strengthen the transparency and standardization of the procurement process.In addition during holidays we issue integrity initiatives to all suppliers resolutely eliminating any form of grey

behavior in order to maintain a clean procurement environment.In 2025 our procurement process remained open and transparent and no major integrity violations occurred

further consolidating the integrity foundation and sustainable governance capacity of the supply chain.

69 702025 Environmental Social and Governance Report

Strengthen supplier training Treat Small and Medium-Sized Enterprises Equally

LAZZEN regularly organizes safety operation training and on-site supervision and inspection and assists suppliers

in continuously optimizing production processes and quality control capabilities through lean improvement and LAZZEN strictly adheres to the requirements of relevant laws and regulations such as the Law on Promoting the

special quality enhancement coaching jointly strengthening the foundation of supply chain security. Development of Small and Medium-Sized Enterprises upholds the principle of fair just equal and mutually

beneficial cooperation respects the legitimate rights and interests of every supplier and partner and ensures that all

In 2025 we organized multiple supplier training and on-site coaching sessions on themes such as quality types of market entities enjoy equal cooperation opportunities and treatment throughout the cooperation process.improvement lean production and green transformation including APQP/PPAP process training lean production

improvement coaching green procurement and ESG special training. To ensure the compliance and timeliness of payment we have established a sound financial control system regularly

conduct financial budget preparation tracking analysis of implementation and verification of payment ledgers and

ensure reasonable fund allocation and standardized payment processes through refined financial management.During the reporting period we strictly fulfilled payment obligations with no cases of overdue payments to small

and medium-sized enterprises maintaining a healthy and stable supply chain ecosystem through practical actions.APQP training for key suppliers PPAP training for key suppliers

Supplier quality management training Training on RoHS risk identification and control reporting

LAZZEN establishes and continuously improves the supply chain emergency response plan system clarifying the

response process and division of responsibilities under various emergency scenarios. In 2025 we updated the

Delivery Contingency Plan further strengthening the closed-loop management mechanism from risk identification

assessment to emergency response to ensure the stability and controllability of the supply chain in the event of

fluctuations in the external environment or emergencies.

71 722025 Environmental Social and Governance Report

04

Environment

Responding to Climate Change

Environmental Compliance Management

Resource Management

Pollutant Emissions

Waste Management

Chemical Management

Biodiversity Conservation

Contributions to the United Nations

Sustainable Development Goals (SDGs)

73 742025 Environmental Social and Governance Report

Responding to Climate Change Identification of climate risks and opportunities

In response to the "dual carbon" goals LAZZEN identified and managed the risks and opportunities of climate

LAZZEN has always placed addressing climate change in a strategic priority position and maintained close and change. We classified climate change risks into physical risks and transition risks and developed corresponding

continuous attention. We actively respond to the requirements of the national "dual carbon" goals attach great response measures based on the relevant impacts of climate change to better address climate change.importance to building our own capacity to address climate change and accelerates the process of green and low-

carbon transformation with firm determination and efficient actions. We align with the International Sustainability

Standards Board's (ISSB) IFRS S2 - Climate-related Disclosures framework to analyze and manage climate change Risk / opportunity types Risk / opportunity description Response measures

issues. We continuously refine the climate change management structure to enhance our ability to respond to

climate change.Production disruptions depreciation of fixed assets Establish a regular tracking mechanism for meteorological

labor losses and increased facility maintenance information and develop contingency plans for extreme

Governance Acute risk costs caused by extreme weather (such as heavy rain weather and sudden environmental incidents; Introduce typhoons heavy snow floods high temperatures digital platforms for real-time monitoring to facilitate early etc.) affect product delivery warning of potential safety hazards

LAZZEN has established the ESGMT (Environmental Social and Governance Management Team) incorporating Physical risks Changes in temperature and precipitation patterns

climate change governance into the committee's decision-making process. We have clearly defined the rights and caused by global warming may affect the extraction

responsibilities of each level of organization and prioritized integration of internal organizational resources to drive and transportation costs of raw materials

Chronic risk Keep a long-term focus on climate change trends and early swift transformation and innovation in response to the rapid changes and challenges in the external environment Both Shanghai Factory and Hangzhou Bay Mega warnings and develop climate change response strategiesFactory are located in coastal areas and face the risk

fully ensure the achievement of medium-to-long-term strategic goals. At present We are initially establishing of rising sea levels which may increase maintenance

relevant systems and will revise and improve them year by year. costs for the plants

Climate change governance framework and responsibilities Improve the carbon emissions and product carbon footprint management system set climate change-related

Government requirements for climate-related management targets continuously optimize the energy

information disclosure are becoming increasingly structure and energy conservation and carbon reduction

Policy and strict and the pressure on companies to manage measures and strengthen the research and development compliance is gradually increasing. carbon of green and low-carbon technologies. Keep track of laws

Director of the ESGMT legal risks emissions from production and operation need to be and regulations related to GHG emissions in domestic and

strengthened and the pressure of GHG control for international markets in real time refine the company's

Oversee and manage efforts overseas business is increasing internal environmental management system and respond promptly to new laws regulations and regulatory

related to addressing climate Member of the ESGMT requirements

change

Oversee LAZZEN's climate risks Transition Technical In the new energy sector technology is evolving Increase investment in research and development

and opportunities and develop risks risks

rapidly and our products may face the risk of a decline strengthen cooperation with research institutes and further

in product competitiveness enhance technological reserves

Departments and subsidiaries corresponding management initiatives Customers' demand for green low-carbon solutions Pay attention to changes in carbon market policies and lay

Market risks is increasing; Higher demands for green supply chains out in advance in areas such as green technology research

may affect market share and development and green supply chains to meet customer Promote the implementation and market demands

of climate change management

measures in accordance with Stakeholders are increasingly concerned about a company's performance in responding to climate We will continue to enhance our capacity to address climate

climate change strategies Reputational change. If we fail to actively engage in climate change change strengthen the monitoring of negative public

risks response actions we may fail to meet local regulatory opinions proactively follow up on rectifications and reduce

requirements and stakeholder expectations thereby the negative impact on the surrounding environment

damaging its own image and reputation

Strategy

New energy installations such as wind solar and Focus on the development of new energy-specific products

energy storage have continued to grow and demand build a distribution network with new energy as the main

LAZZEN has always adhered to the concept of green development making the gradual reduction of carbon emission Product for our smart distribution low-voltage components

body enhance the shock resistance fatigue resistance and

and service and other products has increased

protection level of equipment and form a technological

intensity a long-term strategic direction and has always been committed to optimizing the energy structure and barrieropportunities The construction of Zero Carbon plants in various

increasing the proportion of clean energy in our overall energy consumption. In addition through technological Opportunities regions is accelerating and the demand for supporting The Hangzhou Bay Mega Factory builds a Zero Carbon demonstration project has formed comprehensive energy

upgrades and equipment renovations energy utilization efficiency is enhanced and carbon emissions in the solutions is increasing service capabilities and can export solutions externally

production process are reduced. LAZZEN Hangzhou Bay Mega Factory has been built into a leading Zero Carbon

demonstration plant in China. In the future the Shanghai Base will undergo Zero Carbon transformation and Opportunities Develop corresponding energy-saving and consumption-

upgrading and the Zero Carbon plant solution will be fully promoted to contribute LAZZEN wisdom to sustainable for energy

Improving energy efficiency in LAZZEN's operations

utilization can help reduce our resource expenditure

reducing renovation plans for key energy-consuming systems

and continuously carry out energy-saving dispatching work

development.

75 762025 Environmental Social and Governance Report

Impact risk and opportunity management Green electricity consumption

By proactively purchasing green

LAZZEN continues to accelerate the green transformation strengthen the research and development of green electricity certificates we have

ecological technologies layout the new energy market provide customers with energy-efficient products and low- significantly increased the

carbon solutions and empower the harmonious coexistence of man and nature. proportion of renewable energy

in our electricity consumption

Management measures of LAZZEN in response to climate change structure and directly reduced

indirect carbon emissions from

purchased electricity. In 2025 we

Green products purchased a total of 6177 green

certificates corresponding to a

Our green innovation R&D layout covers multiple aspects such as materials structures and performance consumption of 6177 MWh of green

and optimizes and improves high-energy-consuming process equipment and energy-saving algorithms electricity. Green electricity certificate trading credentials

through new processes new technologies new equipment and new energy sources. We incorporate green

ecological design concepts into its product design conduct full life cycle evaluations of its products and

continuously optimize in areas such as lightness and low-carbonization. Our products have been awarded

the title of Green Design Product by the Ministry of Industry and Information Technology. Case Product carbon footprint certification

LAZZEN has completed carbon footprint

calculation for a core product (1-pole NDB2-

Cleaner production 63 miniature circuit breaker) in accordance

with the international standard ISO 14067

We advocate a green operation concept promotes a low-carbon lifestyle and always implement the and has obtained an authoritative third-party

ecological and environmental protection concept in production and business activities. In the production verification certificate which lays the foundation

process we use advanced Italian fully automatic micro-break assembly lines and Asia's third automatic for quantifying the environmental impact of the

electroplating silver production line to reduce the generation of industrial solid waste and the harmfulness of product and identifying key links for emission

solid waste creating a "dark factory" model to achieve energy conservation and consumption reduction. reduction.Carbon footprint verification certificate for the 1-pole

Green office NDB2-63 miniature circuit breaker product

LAZZEN encourages employees to implement environmental protection measures implement paperless

work and complete meeting notifications schedule management expense reimbursement etc. through OA Case Product Life Cycle Assessment (LCA) Verification

electronic processes further reducing the environmental burden and contributing to the protection of the

ecological environment.LAZZEN has completed LCA verifications for several Verification Statement Verification Statement

major product lines providing scientific decision-

making basis for eco-design material selection and Registration No.: LCA- TüV Rheinland -2026-01-002 Registration No.: LCA- TüV Rheinland -2026-01-001 Report No.: CN26U59N 001 Report No.: CN26H3XX 001

Statement Holder: Shanghai Liangxin Electrical Co. Ltd. Statement Holder: Shanghai Liangxin Electrical Co. Ltd.process optimization through systematic assessment No.2000 Shenjiang South Road Pudong New District Shanghai No.2000 Shenjiang South Road Pudong New District Shanghai City P.R.China City P.R.China

New energy product research and development Verification Site: Liangxin Electrical (Haiyan) Co. Ltd. Verification Site: Liangxin Electrical (Haiyan) Co. Ltd. No.1799 Changqian Road Xitangqiao Street Haiyan County No.1799 Changqian Road Xitangqiao Street Haiyan County of the environmental impact at each stage from raw Jiaxing City Zhejiang Province P.R.China Jiaxing City Zhejiang Province P.R.China Product: Miniature Circuit Breaker Product: Miniature Circuit Breaker (NDB2-40)

(NDB2-63(1-4P); NDB2T-63(1-4P); NDB2-63K)

Environmental

material acquisition to product disposal and driving Environmental Indicators: Details in the Appendix Indicators: Details in the Appendix Verified acc. To: ISO 14064-3:2019; ISO 17029:2019

Verified acc. To: ISO 14064-3:2019; ISO 17029:2019

Verification Scope details are listed on the next page

green product innovation. Verification Scope details are listed on the next page LAZZEN adheres to the principle and concept of "Fully investing resources and designing for 25 years of use" The defined verification program has been executed based on information provided to TüV The defined verification program has been executed based on information provided to TüV Rheinland (Shanghai) Ltd. The statement refers to the above-mentioned product and is Rheinland (Shanghai) Ltd. The statement refers to the above-mentioned product and is based on a verification of information and records provided by the applicant. It was verified

based on a verification of information and records provided by the applicant. It was verified that the claims defined by the verification statement holder are substantiated by

in new energy research and development. Anchor the innovation points of new energy product research and that the claims defined by the verification statement holder are substantiated by documented evidence and possible onsite observation. The verification statement does not documented evidence and possible onsite observation. The verification statement does not imply any testing of a product nor does it express any warranty guarantee or other imply any testing of a product nor does it express any warranty guarantee or other assurances of the above product. The statement does not imply the assessment of the assurances of the above product. The statement does not imply the assessment of the production of the product. Nor does the verification include review of external

production of the product. Nor does the verification include review of external communication. If new facts or information that could materially affect the verification

development focus on customized product development simplify the R&D process to focus on key points communication. If new facts or information that could materially affect the verification statement are discovered by the statement holder after the issue date this shall be made statement are discovered by the statement holder after the issue date this shall be made available to the Verification body. available to the Verification body. V alid until: 2028-03-02

Valid until: 2028-03-02

pay attention to multi-sample reliability testing in the process of new product development go deep into Issue Date: 2026-03-03 __________________________________ Issue Date: 2026-03-03 __________________________________

TüV Rheinland (Shanghai) Co. Ltd. China TüV Rheinland (Shanghai) Co. Ltd. China

customer usage scenarios continuously interact with customers for testing discover and solve problems in

the process to achieve high volume upon market launch. Page 1 of 11 Page 1 of 3

LCA Verifications for miniature circuit breakers (NDB2-40 NDB2-63(1-4P) NDB2T-63(1-4P) NDB2-63K)

77 782025 Environmental Social and Governance Report

Case Facilitating new energy project construction Azerbaijan Khizi-Absheron Wind Power project

Project Capacity: 240MW

LAZZEN continues to provide more advanced and reliable smart electrical solutions for global customers

jointly building a clean low-carbon safe and efficient future energy system. LAZZEN is deeply involved With a total capacity of 240MW the project is

in the construction of many major wind power and energy storage projects both at home and abroad. Azerbaijan's largest single wind power project

With key products such as dedicated electrical solutions for wind power and core circuit breakers on the generating about 1 billion kWh of electricity

DC side of energy storage we provide core electrical support for the efficient power generation of wind annually saving about 220 million m3 of natural gas

power projects and the safe and stable operation of energy storage systems facilitating the large-scale annually and reducing carbon dioxide emissions by

development of clean energy and the efficient consumption of power grids. By continuously empowering more than 400000 tons annually

the implementation of Zero Carbon energy scenarios such as wind power and energy storage LAZZEN

continuously promotes the substitution of traditional fossil energy effectively reducing carbon emissions

across the entire industrial chain from the energy supply side. Mengnengzhongqi 1.5 million kW wind storage Base project

Huaneng Shandong Peninsula North Offshore Wind Projec Project Capacity: 1.5GW

Project Capacity: 504MW When fully operational the project is expected to

Once completed and put into operation the project will generate 5.44 billion kWh of electricity annually

generate about 1.7 billion kWh of electricity annually which reducing the burning of 1.64 million tce each year

can meet the annual electricity demand of about 500000

households saving about 500000tce and reduce carbon

dioxide emissions by 1.35 million tons each year at the same

time

Goldwind 20MW offshore wind project Indicators and goals

Project Capacity: 20MW LAZZEN conducts annual greenhouse gas audits and sets corresponding climate

Compared with offshore wind farms that use 16MW units change targets based on the national "dual carbon"goals. At present LAZZEN

20MW units can help wind farms reduce 25% of turbine sites is leading the compilation of the Carbon Neutrality White Paper and planning

save sea area spread out development costs and remove the carbon neutrality path. The document will systematically set out our carbon

economic bottlenecks for the large-scale development of neutrality vision strategic path phased goals and implementation roadmap aiming

deep-sea wind power. The GW147 blades used in 20MW units to unify our action plan internally and transparently display our commitments and Carbon Sink Offset

are made of high-modulus carbon fiber materials significantly plans externally. Certificate

improving aerodynamic efficiency. Combined with an intelligent control system the power

generation efficiency can be increased by 5% and the value cost per kilowatt-hour of the project can

be reduced by 5% to 8%

Sunpro Wind Farm Vietnam

Project Capacity: 30MW

Once operational the project will generate approximately

89.5GWh of clean electricity annually enough to meet the

electricity needs of about 27000 local households and Shanghai LAZZEN ISO14064 GHG Verification Hangzhou Bay Mega Factory GHG Verification Carbon Neutrality

effectively reduce GHG emissions Statement Statement Verification Statement

During the reporting period LAZZEN purchased a total of 1126 Verified Carbon Units (VCUs) to offset

greenhouse gas emissions and achieve carbon neutrality.

79 802025 Environmental Social and Governance Report

Disclosures Units 2025 Environmental Compliance Management

LAZZEN strictly adheres to national environmental protection laws regulations and rules such as the Environmental

Scope 1 GHG emissions tCO2e 780.34 Protection Law and the Environmental Impact Assessment Law continuously improves the environmental

management system optimizes the supporting organizational structure clearly defines the environmental

Scope 2 GHG emissions tCO e 20986.29 management responsibilities at all levels and comprehensively enhances our environmental compliance 2 management capabilities.Total GHG emissions tCO2e 21766.63 Governance

GHG emission intensity tCO2e / CNY 10000 0.0511 LAZZEN has developed internal environmental management

documents such as the Environmental Occupational Health and

Safety Management System Environmental Management Policy

Calculation method:The emission factors for fossil fuels are adopted from the 2006 IPCC for National Greenhouse Gas Inventories. The emission factors

Environmental Factor Identification and Evaluation Management

used for purchased electricity are from the Announcement on Issuing the 2003 Power Sector Carbon Dioxide Emission Factors issued by the Ministry Procedure Wastewater Discharge Management Procedure Exhaust

of Ecology and Environment and the National Bureau of Statistics of China. The emission factors used for purchased steam are based on the steam Gas Discharge Management Procedure Emergency Preparedness

enthalpy table in the Calculation Method and Reporting Guidelines for Greenhouse Gas Emissions of Enterprises in Other Industrial Sectors in China. and Response Management Procedure and has established an

Calculation boundary:The data covers the Shanghai Factory and the Hangzhou Bay Mega Factory. environmental management framework.The data on Scope 2 GHG emissions disclosed in the table is based on location. The Scope 2 GHG emissions for the year 2025 based on the market (after At present LAZZEN has passed the ISO 14001 environmental

deducting the green certificate purchase volume) were 7773.40 tCO2e. management system certification.ISO 14001 Environmental Management System Certification

Strategy

LAZZEN fully implements ecological and environmental protection management measures scientifically plans

and implements environmental compliance management system and continuously enhances the comprehensive

effectiveness of our environmental compliance governance by conducting environmental risk factor identification

and strengthening pollutant and waste discharge requirements. In addition we actively conduct environmental

protection training and activities and enhance the environmental awareness of employees through regular

environmental protection promotion.Impact risk and opportunity management

LAZZEN has established institutional documents to address environmental compliance risks such as the Emergency

Response Plan for Sudden Environmental Incidents Emergency Preparedness and Response Management

Procedure Incident Investigation and Handling Management Procedure Risk and Opportunity Management

Procedure Corporate Environmental Analysis Management Procedure.LAZZEN has established the Emergency Response Team (ERT) led by the EHS Safety Committee consisting of the

heads of relevant departments or specific personnel designated by each department. Each department regularly

fills out and submits the Risk and Opportunity Identification Evaluation Form commissions a third party to conduct

environmental tests on the company and produce reports and continuously optimizes the management of

environmental compliance energy resources and other environmental protection links.To ensure the legal and compliant operation LAZZEN conducts regular risk assessment for environmental

management. We use professional environmental risk assessment tools and methods to quantitatively assess each

environmental compliance risk point determining the probability of its occurrence the potential impact as well as

the types and severity of consequences of environmental accidents that may be triggered. This help us identify the

focus and priorities of our environmental management work and formulate corresponding response measures.

81 822025 Environmental Social and Governance Report

During the reporting period we identified new environmental risk factors including electromagnetic radiation from Risk analysis on environmental accidents

the test station dust from PCB cutting in the electronic workshop filter material replacement in the exhaust gas

treatment facility dust from laser grinding and metal dust from copper plate cutting. We have formulated control

measures for each of these factors such as regular detection and external shielding for electromagnetic radiation Types of

collection and cleaning of dust and harmless outsourcing disposal of waste filter material. environmental Specific environmental events Environmental impact and risk responseevents

Environmental compliance risk assessment at LAZZEN

Sudden Excessive sewage discharge If an accident occurs at the wastewater treatment station in the

environmental Sewage pipe leakage causing river factory area the untreated industrial wastewater will be directly Categories Content

incidents of water pollution discharged into the Jiaxing United Sewage Treatment company River accident which will cause pollution. Therefore environmental emergency

Regulatory Policy review: Conduct a comprehensive review and interpretation of new or pollution Large-scale sewage system leakage drills will be conducted.revised national and local environmental laws regulations policies and standards on an

annual basis with a focus on regulatory changes that may have a significant impact on the

Regulatory company's production and operation activities.review Sudden If the operation is not stopped and repaired in time the

Preliminary Risk identification: Based on LAZZEN's business scope and operational model environmental Fan failure concentration of exhaust emissions will increase several times

initially identify potential environmental risk areas from the perspective of legal compliance incidents of air E nd-of-pipe treatment device potentially causing poisoning of personnel and potentially

and compile potential risk points into a list as the basis for subsequent in-depth assessment. pollution failure affecting further downwind. Replace the relevant equipment in a timely manner to prevent it from failing.EHS Quantitative assessment: The EHS department conducts a quantitative assessment of each

identification risk point to determine the likelihood of its occurrence the extent of potential impact and the Leakage of environmental

assessment types and severity of consequences of environmental incidents that may be triggered.Sudden hazardous substances and solid

If a solid waste leakage occurs within the factory premises

waste during transportation emergency treatment can be carried out by closing the rainwater

Cross-departmental communication and collaboration: The EHS department provides environmental Leakage of environmental outlet valve opening emergency facilities such as the emergency

detailed briefings and training on risk assessment results and response plans to all incidents of soil hazardous substances and solid pool and using emergency supplies such as sand cotton cloth

departments within the company organizes cross-departmental communication meetings pollution waste during storage etc. to control the impact of the leakage within the factory

Internal and participates in environmental risk management together. premises.synchronous

communication Day-to-day operations management: Integrate the environmental risk assessment results and

response measures into the day-to-day operations management system of the company from LAZZEN conducted environmental emergency drill

strategic planning production planning purchasing decisions to performance assessment

and develop corresponding risk control indicators and operating procedures. On September 3 2025 we conducted

a n e m e rge n c y d r i l l fo r exce s s i v e

LAZZEN has established an environmental compliance emergency management system based on systems such as wastewater and waste gas. Through

the Emergency Plan for Sudden Environmental Incidents and has set up an emergency rescue organization. We this drill our emergency response

have established an environmental risk prevention control and emergency response as well as a regular inspection capacity for sudden environmental

and maintenance responsibility system. We implement corresponding prevention and emergency measures for all incidents was enhanced the multi-

environmental risks specified in the environmental impact assessment and approval documents of construction department collaboration mechanism

projects we also conduct publicity and training on environmental risks and environmental emergency management was strengthened the division of

for employees more than twice a year and carried out emergency drills for sudden environmental incidents. responsibilities was clarified and it helped to enhance the environmental

awareness and emergency skills of

LAZZEN emergency response system personnel.Shanghai Liangxin Electrical Co.LTD. & Liangxin Electrical (Haiyan) Co. LTD. Comprehensive Emergency Plan for Safe Operations

Special Emergency Plan for Special Emergency Plan for Special Emergency Plan for Typhoon

Sudden Accidents Fire Accidents and Flood-related Natural Disasters

83 842025 Environmental Social and Governance Report

Indicators and goals Resource Management

LAZZEN 2025 environmental compliance indicators and goal setting and achievement status LAZZEN continuously optimizes resource and energy management system reduces losses and waste at all stages

of energy consumption pays attention to the recycling of water resources adopts various water-saving measures

Serial prioritizes the use of green packaging materials promotes resource recycling and utilization measures and

Environmental compliance indicators and goal settings for 2025 Achievement status

number comprehensively enhances the utilization rate of resources and energy.

1 Zero exceedance of waste gas and wastewater emissions Achieved Energy management

2 Environmentally friendly treatment of hazardous waste ≥ 1 time Achieved The types of energy consumed in the production of

LAZZEN include electricity natural gas and steam

3 100% disposal rate for hazardous waste Achieved among which electricity and steam are the main energy

consumption. We conduct energy management in

4 0.1% reduction in total emissions per unit output (particulate matter VOCs) Achieved accordance with laws regulations and rules such as

the Energy Conservation Law the Energy Law the

5 Reduce waste production by 5% Achieved Shanghai Energy Conservation Regulations etc. We have

established and promulgated and implemented energy

6 Electroplating unit output drainage meets 0.25 tons /m2) Achieved management systems such as the Energy Management Manual Energy Risk Management Measures Energy

Review Management Procedures Energy Measurement

7 Fire hazard ≤ 1 Achieved Management system etc. forming a complete energy

management system. LAZZEN has obtained the ISO 50001

8 Chemical spill incident ≤ 1 Achieved Energy Management System Certification.

ISO 50001 Energy Management System Certification

During the reporting period LAZZEN implements a hierarchical energy management system establishes an energy management team and holds

energy management meetings in a timely manner based on the relevant energy conservation targets set by LAZZEN

to analyze the extent to which the operation of related disposal processes and equipment affects the comprehensive

LAZZEN's total environmental investment amounted to CNY 0.7 million. energy consumption per unit of product. The relevant departments establish ledgers of key energy-consuming

has not been fined equipment based on equipment model power operating time loss situation etc. and monitor them effectively.LAZZEN for any major administrative penalties imposed by ecological

To enhance energy management efficiency LAZZEN has actively carried out energy management system audits.environment and other relevant departments due to environmental incidents. During the reporting period we analyzed the energy utilization situation of the enterprise determined the energy

utilization level and identified the problems and loopholes existing in the energy management and utilization

The total number of employees participates in environmental training was 3550 person-times process. Through on-site detection and diagnosis the potential for energy conservation of the enterprise was

and the total duration of environmental training was 7100 hours. explored and practical energy-saving measures and suggestions were proposed thereby strengthening the energy

management level of the company and reducing energy utilization costs.LAZZEN has formulated Regulations for the Management of Process Chiller Rooms Regulations for the Management

of High and Low Voltage Rooms and Regulations for the Management of Air Compressors standardizing equipment

usage and emergency response plans and focusing on improving equipment utilization efficiency. During the

reporting period LAZZEN systematically phased out backward and high-energy-consuming equipment through

technological transformation and equipment upgrading introduced efficient and energy-saving advanced

production equipment and technologies freed up 119 tce energy space achieved a continuous reduction in energy

consumption per unit of output value and reduced energy consumption and carbon emissions from the source.To ensure stable energy supply stable prices and the sound operation of energy enterprises and industries LAZZEN

has formulated management systems such as Energy Risk Management Measures and Risk and Opportunity

Management Procedures and further strengthened our ability to deal with energy management risks by

implementing energy conservation and carbon reduction measures. LAZZEN regularly implements energy monitoring

and analysis systems energy quota allocation and real-time adjustment of production plans and scheduling in

accordance with relevant policies thereby further strengthening our risk resilience in energy management.

85 862025 Environmental Social and Governance Report

In response to risks such as energy shortages LAZZEN has developed full-process response plans. Activate the real-

time monitoring function of the energy management system to closely monitor the consumption of various types

of energy and energy usage data. Assign dedicated personnel to conduct regular inspections of energy metering

instruments and report any anomalies in a timely manner. In addition LAZZEN organizes professional maintenance

teams to inspect energy equipment that ensures safe production and involves key production processes to avoid

exacerbating energy supply tightness or causing safety accidents due to equipment failure and provides emergency

power supplies for key equipment. LAZZEN also conducts regular emergency drills for energy shortages formulates

corresponding risk prevention and control measures for various safety risks strengthens on-site safety management

and monitoring to ensure the safe and stable use of energy.Improvement measures for energy use in 2025

Photovoltaic power grid connection Microgrid management system Air conditioning smart control management system

The Hangzhou Bay Mega Factory has built 4.695MW of photovoltaic power generation in three

phases by using rooftop photovoltaic systems to increase the proportion of self-consumption of Indicators and goals

photovoltaic power and reduce the amount of power purchased by power supply bureaus.The energy goal set by the Hangzhou Bay Mega Factory is 0.0189 tce / CNY 10000. Achievement status: achieved.Park energy storage project

Disclosures Units 2025

The park has added 4.75MW of large-scale energy storage facilities. The principle of two charge and

two discharge per day (charging during off-peak hours and discharging during peak hours) reduces Comprehensive energy consumption tce 5039

electricity costs.Comprehensive energy consumption intensity tce / CNY 10000 0.0118

The exhaust system operation Natural gas m3 82332

Renovation of the automatic control system of the exhaust fan new remote start-stop and timed Gasoline Liter 29589

on/off functions

Enable timed start-stop of the exhaust fan based on the production situation of each workshop Purchased steam tons 1026

thereby saving electricity

Install air pressure control frequency on the exhaust fan save electricity by using air pressure to Purchased electricity MWh 39028

automatically control the frequency of exhaust fans

Direct energy consumption tce 142

Central air conditioning energy saving smart control Indirect energy consumption tce 4897

With the smart control project system set the automatic on/off time based on the sensor and user- Usage of clean energy MWh 5526

set temperature and automatically adjust the most economical load operation status based on the

actual load operation. * The data cover the Shanghai Factory and the Hangzhou Bay Mega Factory the conversion coefficients of natural gas steam

gasoline and electricity to standard coal are converted to 20° C kcal in accordance with GB/T 2589-2020 General Rules for

Comprehensive Energy Consumption Calculation.In addition to improve energy efficiency and promote transparency in energy management we installed an

intelligent power distribution platform system and built a smart energy management platform. The system is mainly

based on industrial internet technology and is interconnected with smart park digital twin MES and other systems.It has functions such as measurement data operation and maintenance management energy consumption analysis

energy consumption display system configuration etc. It adopts a hierarchical distributed system architecture to

collect real-time data on electricity consumption of each energy-consuming unit in the factory area and issue early

warnings for abnormal situations. The cumulative data information is statistically analyzed to provide effective data

support for the implementation of energy conservation and consumption reduction.

87 882025 Environmental Social and Governance Report

Water resources management

Rainwater recycling

LAZZEN always adhere to laws and regulations such as the Water Law of the People's Republic of China adhere to the

principle of sustainable development and attaches great importance to the rational application of water resources. Consider launching a rainwater collection pool project that once initiated would reduce reliance

LAZZEN has established systems such as Water Metering Management System Water Conservation Statistics System on traditional municipal water supply systems and provide a stable and sustainable water supply for

Water Conservation Management Reward and Punishment System and Regular Maintenance System for Water landscaping toilet flushing and floor cleaning in the dry season. In addition through the recycling

Conservation Equipment Pipelines and Appliances and has set up a three-level water conservation management of rainwater pollution to natural water bodies is reduced.network of company leaders departments workshops and teams and adopted measures such as "daily inspection

end-of-month assessment reward and punishment implementation" to effectively guarantee the implementation of

water conservation work responsibilities. LAZZEN has also established a water conservation creation work leading

group which organizes three major water conservation work inspections each month to identify violations and water

usage risks and promptly corrects or sets deadlines for rectification. Use water-saving valves

LAZZEN's water resources are mainly drawn from municipal water supply and are mainly used for replenishing the The water valves in the workshop restrooms were retrofitted with water-saving valves reducing fresh

cooling circulation system preparing pure water and domestic water. Since a large amount of water used by the water intake by an average of 4000m3 per year.company is lost through evaporation the rate of water reuse is high and the amount of water discharged is small.LAZZEN uses highly efficient circulating water cooling towers to reduce water consumption. We encourage every

member to use water rationally and work together to reduce overall water consumption. LAZZEN actively uses

rainwater recycling and sewage diversion technologies to minimize water waste and environmental pollution and Use a remote monitoring system for water metering

ensure that all operations comply with strict environmental regulations.By deploying a remote water metering monitoring system and installing smart water meters in

To enhance the effectiveness of water conservation management we have specially formulated the "Annual the factory area and each branch real-time monitoring and centralized management of water

Water Conservation Work Plan" fully implemented water conservation measures formulated water conservation consumption can be achieved. The system successfully identified and fixed multiple leakage

implementation plans and established a long-term mechanism for water conservation work which has played a points effectively reducing water consumption its intelligent alarm function can promptly identify

guaranteeing role in the effective implementation of water conservation work. abnormal water usage avoiding waste of resources and economic losses. At the same time the

accuracy and analyzability of water usage data are guaranteed by timely replacement of faulty water

Reuse of electroplating cleaning wastewater meters and standardized installation of new ones.The electroplating workshop has adopted counter-current rinsing for secondary reuse of wastewater.Currently an industrial wastewater filter has been purchased to recycle the cleaning wastewater in

multiple stages increase the reuse rate of wastewater reduce the daily pure water replenishment

volume and can process 6 tons of wastewater per day to meet the reuse standards. The wastewater Pipe inspection

from the electroplating workshop is treated at the wastewater treatment station and the recycling

rate is 50%. Inspect the piping in the park to identify leaks and reduce the risk of leaks.Intelligent control transformation of the air conditioning system

LAZZEN's largest water consumption unit is the air conditioning refrigeration system. The cooling Indicators of water usage

tower has adopted the more advanced closed cooling tower the intelligent management system

has been installed on the ventilation system and partitions have been added in the office and

production areas to avoid the waste of cooling capacity reduce the circulation volume of the cooling Disclosures Units 2025

tower and achieve better water and energy conservation effects.Municipal water purchase volume tons 258605

Water conservation publicity and education Total volume of circulating water/reclaimed water tons 4052

Carry out extensive water conservation education campaigns through various forms such as hanging Total water withdrawal tons 262657

water conservation slogans and holding water conservation knowledge lectures to popularize water

conservation knowledge and raise water conservation awareness among all employees produce Total water consumption tons 25610

water conservation posters distribute water conservation handbooks etc actively organize water-

saving practices and encourage employees to take water-saving measures in their daily lives set up Water usage intensity tons/ CNY10000 0.6166

model posts for water conservation pioneers strictly enforce the system of rewarding and punishing

individuals or departments for water conservation. * Data cover the Shanghai Factory and the Hangzhou Bay Mega Factory

89 902025 Environmental Social and Governance Report

Material resource management Pollutant Emissions

LAZZEN is committed to using environmentally friendly innovative materials and recyclable raw materials and

actively guides suppliers to provide environmentally friendly products aiming to minimize environmental pollution LAZZEN complies with laws and regulations such as the Environmental Protection Law the Law on the Prevention

to the greatest extent. On the journey of sustainable development we are committed to the rational use of raw and Control of Water Pollution the Law on the Prevention and Control of Air Pollution the Law on the Prevention

materials and strive to minimize the production of waste and waste. and Control of Soil Pollution the Law on the Prevention and Control of Noise Pollution and the Measures for the Administration of Pollutant Discharge Permits and implements pollutant discharge management in accordance

LAZZEN has established management systems for material with the pollutant discharge standards and total discharge control indicators prescribed by the industry. During the

resources such as the Product Material Scrap Management reporting period there were no cases of excessive pollutant emissions.System Waste Management Procedures Management Measures In accordance with the requirements of the system and the pollutant discharge permit LAZZEN has established

for the Prevention and Disposal of Idle Materials and Operation pollutant discharge management procedures such as Wastewater Discharge Management Procedure Waste Gas

Instruction for Waste Disposal Processes and has established a Discharge Management Procedure and Noise Discharge Management Procedure. The sewage treatment plants

recycling system for raw materials and packaging materials taking and various waste gas treatment facilities built by LAZZEN conduct self-monitoring in strict accordance with the

the initiative to assume responsibility for the recycling and resource requirements of the pollutant discharge permit and will entrust qualified third-party monitoring institutions to carry

utilization of products after discarded. Effective circulation of waste out environmental monitoring related work. In addition LAZZEN conducts risk assessment and analysis of pollutant

products among production enterprises consumers recycling emissions formulates corresponding risk response measures and continuously strengthens the management and

enterprises and dismantling enterprises. All the raw and auxiliary monitoring of pollutant emissions.materials required for turnover by the company department are

transported by environmentally friendly and energy-saving electric LAZZEN has established a green manufacturing management system team which is mainly responsible for improving

trolleys the turnover equipment is reusable plastic boxes and the energy efficiency of facilities and equipment photovoltaic project construction etc. We implements the clean

the pallets are reusable high-density plastic pallets the front and production concept prioritizes the use of non-toxic and low-toxic raw materials and uses water-based paint instead

back processes and product entry are all fully automated conveyor RoHS and recyclable marks on the outer of oil-based paint for anti-corrosion spraying of circuit boards significantly reducing the emissions of VOCs xylene

system sorting and stereoscopic warehouse storage reducing packaging of LAZZEN's products and acetone. In addition we have formulated the management document Cleanroom Usage Specifications to adopt

the use of corrugated paper in the process and implementing the clean production processes select advanced environmental protection supporting equipment avoid unorganized

concept of green packaging materials. emissions of smoke and dust in the welding process replace the original oil-based ink printing machine with a laser

printing machine and significantly reduce pollutant emissions from the printing process.Circular economy Serial

Numbers Pollutants Emission goals Achievement status

LAZZEN builds a full-process circular economy treatment system around idle materials scrap and used products

effectively promoting resource recycling and sustainable development through multi-link resource utilization: 1 Wastewater Wastewater discharge reuse reaches 40% to 60% Achieved

For the idle materials and scrapped products we adopt processing methods that comply with the concept of circular 2 Waste gas Harmless treatment of waste gas pollutants Achieved

economy such as disassembling and recycling of components and selling discounted inventory materials. The

scrap products that can be sold are sold in accordance with the Operation Instruction for Waste Disposal Process. Noise detection across the entire plant is less than 60

After the used products enter the waste dismantling department for dismantling they are classified according to 3 Noise decibels during the day and less than 50 decibels at night Achieved

the component attributes and recycled and reused by specialized third-party institutions promoting the circular

economy model.Disclosures Units 2025

Waste recycling volume tons 220

Water recycling volume tons 4052

91 922025 Environmental Social and Governance Report

Wastewater treatment Key performance: Wastewater control

LAZZEN has formulated Wastewater Discharge Management Procedure to implement classified collection A total of 12 tests were conducted in 2025 and both wastewater and stormwater outlets met the

differentiated treatment and full-process control of production and domestic wastewater. The production

wastewater mainly includes electroplating wastewater acid-base wastewater cleaning wastewater exhaust gas special discharge standards of the Electroplating Pollutant Discharge Standard GB 21900-2008.spray wastewater RO concentrate water and initial rainwater among which cyanide-containing and silver-containing

wastewater is preferentially recovered at the tank side to achieve the resource utilization of precious metals. The

recovered wastewater after special pretreatment partially enters the reclaimed water reuse system and partially Exhaust gas treatment

flows into the comprehensive treatment system. Other production wastewater after pretreatment processes such as

neutralization coagulation and adsorption based on water quality characteristics is diverted to reuse or integrated

treatment systems according to water quality compliance. Domestic sewage is treated in septic tanks and then LAZZEN has formulated the Exhaust Gas Emission Management Procedure and conducted risk management on

connected to the municipal network. exhaust emissions. We have developed a series of risk response measures in response to the risk of excessive exhaust

Through a dual mechanism of regular self-monitoring and annual third-party emissions. According to the environmental protection acceptance monitoring by professional third-party institutions

testing LAZZEN continuously verifies the compliance of its discharge to ensure that all indicators related to the company's exhaust gas meet the emission standards.the wastewater after advanced treatment is stably discharged up to standard. All

indicators over the years have significantly exceeded the limits of the Integrated LAZZEN's measures to deal with the risk of excessive exhaust emissions

Wastewater Discharge Standard.LAZZEN is committed to steadily enhancing the level of water resource recycling Establish a daily operation and Carry out regular self- Strengthen environmental

and utilization. Through measures such as reclaimed water reuse cleaning water maintenance system for waste monitoring management and emergency

recovery and grinding fluid regeneration we effectively reduce the amount of gas treatment facilities response measures

wastewater discharged per unit product. Among them the wastewater discharge

per unit area of the electroplating line was reduced from 0.25 tons/m3 to 0.23 Equip professional operation and In accordance with the Strengthen environmental maintenance personnel to conduct requirements of relevant management of the production

tons/m3. The reuse of silver plating cleaning water not only reduces the use of regular inspections maintenance national standards regularly process optimize production

cyanide but also enables the recycling and reuse of silver resources. The grinding and repairs of the facilities replace commission qualified third-party processes and reduce the amount

water recovery system reduces wastewater treatment by about 6 tons per day vulnerable parts in a timely manner testing institutions to conduct of waste gas produced. Develop

with a recovery rate of over 60%. The electroplating workshop has implemented record the operation parameters comprehensive tests on exhaust contingency plans for excessive

a process transformation for the wastewater from heavy metal cleaning that was and maintenance conditions of gas to ensure the accuracy and emissions of waste gas such as the facilities and ensure that the reliability of the monitoring reducing production load and

not recovered adding coagulation sedimentation and resin adsorption before facilities are always in good operating data and adjust the exhaust gas increasing the dosage of waste

entering the reclaimed water reuse system increasing the reuse rate by about 5%. condition. treatment process and facility gas treatment agents and actively

Additionally under the condition of meeting quality requirements the frequency Wastewater treatment facilities operation parameters in a timely cooperate with environmental

of discharge of cleaning water from the production line has been reduced by about manner based on the test results. protection departments in

10%. As a result the volume of wastewater discharged per unit of production was investigation and handling.

reduced by 29.88%.Disclosures Units 2025

LAZZEN implements classified collection and efficient treatment of various types of process exhaust gases generated

Total amount of wastewater discharge tons 237047 during production covering welding fumes coating VOCs ink volatiles electroplating acid mists and cyanide-containing

exhaust gases etc. By strengthening source capture through "One post one mask" to ensure that all waste gas is collected.Industrial wastewater discharge tons 3315 According to the characteristics of different exhaust gases appropriate combinations of technologies such as adsorption

Domestic wastewater discharge tons 233732 and chemical spray are used for purification and all exhaust gases are treated and discharged through 25-meter-high

exhaust stacks in a standardized manner.Chemical Oxygen Demand (COD) tons 0.688

In 2025 we further strengthened the operation and maintenance management of waste gas treatment facilities

Biochemical Oxygen Demand (BOD) tons 0 formulated strict maintenance plans and entrusted third parties to regularly replace consumables such as waste activated

carbon and filter cotton ensuring the continuous and efficient operation of the treatment system. At the same time we

Suspended matter tons 0 actively promoted source reduction by promoting water-based environmentally friendly board washing water in the

Ammonia nitrogen tons 0.001 electronic workshop replacing high-VOCs organic solvent cleaning agents.Total Nitrogen (TN) tons 0.076 During the reporting period LAZZEN conducted four tests in accordance with the requirements of the pollutant discharge

permit and the concentrations of hydrogen cyanide and sulfuric acid mist gas were both lower than those stipulated in

Total Phosphorus (TP) tons 0.013 Table 5 of the Electroplating Pollutant Discharge Standard GB 21900-2008. Particulate matter emissions per unit output

decreased by 13.8% compared to the previous year and VOCs emissions decreased by 47.92%. All emission indicators

pH - 6-9 met the requirements of relevant national and local standards.

93 942025 Environmental Social and Governance Report

Soil pollutants

LAZZEN regularly monitors and inspects soil conditions and focuses on soil pollution management. LAZZEN's

industrial wastewater pipe network is laid overhead with exposed pipes to prevent soil pollution caused by leakage

from underground pipe laying.According to the environmental protection acceptance monitoring by professional third-party institutions the soil

test concentrations in the area where the company is located are all lower than the screening value standards for the

second category of land use in Soil Environmental Quality - Risk Control Standards for Soil Pollution in Construction

Land (Trial) (GB 36600-2018).Waste gas treatment facilities

Disclosures Units 2025 Waste Management

Total exhaust emissions m3 485130000

LAZZEN manages waste in compliance with laws and regulations such as the Law on the Prevention and Control of

Particulate matter kg 2 Environmental Pollution by Solid Waste Pollution Control Standards for Storage and Landfill of General Industrial

Solid Waste and Pollution Control Standards for Storage of Hazardous Waste.Total non-methane hydrocarbons kg 816

Nitrogen oxides kg 0 Waste management governance

Sulfur oxides kg 0

VOC emissions kg 2870 LAZZEN's current solid waste mainly consists of waste oil rags and

gloves waste packaging materials of hazardous chemicals waste

activated carbon laboratory waste liquid waste oil liquid general

Noise management waste packaging materials etc. LAZZEN has established Waste

Management Procedures and Waste Classification and Treatment

LAZZEN formulates and implements the Noise Emission Management Procedure sets noise control targets at the Regulations covering compliance treatment requirements and

factory boundary: ≤ 60 decibels during the day and ≤ 50 decibels at night and ensures the continuous achievement procedures for general solid waste hazardous waste kitchen

of these targets through quarterly full coverage monitoring. During the reporting period we completed a total of 4 waste etc. LAZZEN guarantees that all waste is disposed of

factory boundary noise tests. According to the results of the third-party environmental acceptance monitoring the legally and in compliance with regulations without affecting the

factory boundary noise stably met the Class 2 standards of the Emission Standard of Environmental Noise at the surrounding environment and human health and without causing National pollution source monitoring data

Boundary of Industrial Enterprises GB 12348-2008 throughout the year. secondary pollution. We regularly improve the management plans management and sharing system

for hazardous and solid waste for the next year and submits them

To systematically reduce the impact of noise we have adopted multi-dimensional control measures: which are confirmed and approved by the local environmental

protection department and subsequent transfer of hazardous

Source control Layout optimization Engineering noise Ecological buffering waste is filled in the system platform.reduction

Doors and windows Concentrate high- Build soundproof Green belts are set up

are rarely opened noise workshops and stations in high-noise around the factory In 2025 the total disposal volume of general and hazardous waste at the Hangzhou

when the production equipment in the areas such as air boundary and Bay Mega Factory decreased by 16.84% compared with the previous year exceeding

workshop is operating middle of the factory compressor stations vegetation is used to the annual waste reduction target of 5%. And Haiyan LAZZEN passed the assessment

normally; We priorize area away from the and refrigeration assist in absorbing of Zhejiang Province as a "Waste-Free Factory".the use of advanced factory boundary and stations and equip and blocking noise

equipment such as keep workshop doors them with sound transmission

ultra-low noise cooling and windows closed absorption vibration enhancing

towers and low-noise during operation to reduction and environmental

screw air compressors reduce noise overflow. vibration reduction friendliness.to reduce noise facilities to enhance

generation from the the overall sound

source. insulation effect. "Waste-Free Factory" Certification

95 962025 Environmental Social and Governance Report

Waste management strategy Management measures of LAZZEN in response to the risk of hazardous waste leakage

LAZZEN disposes of solid waste in accordance with the principles of "resource utilization reduction and

harmlessness" and fully implements the primary responsibility for environmental protection.Waste disposal goals Improve management Strengthen personnel Standardize the systems training classification and temporary

Establish and improve the Regularly organize hazardous storage of hazardous waste

Serial management system for waste management personnel

Number Waste disposal goals Achievement status

The hazardous waste

hazardous waste and clarify to participate in professional generated by LAZZEN should

the management process and training to familiarize them with be stored in separate zones

1 The legal disposal of hazardous waste is more than once a year Achieved division of responsibilities knowledge and skills such as by category. Each workshop

throughout the entire process the characteristics of hazardous

2 Zero violations in hazardous waste disposal Achieved should set up dedicated from generation to final waste classification methods waste bins with clear labels to

disposal. packaging requirements and

3 The annual growth rate of the intensity of general industrial solid waste

ensure source classification

Achieved emergency response measures generation is negative or zero standardized temporary and enhance their risk prevention storage and prevent mixed

4 The annual growth rate of hazardous waste generation intensity is negative

awareness and operational storage.or zero Achieved proficiency.General waste

The general industrial solid waste generated by us including plastics packaging paper plastic foam packaging

materials and metals is recyclable waste. Each year it is entrusted to a third-party company with professional

qualifications for sorting and utilization and disposal. The specific treatment process is as follows: the waste is

collected in workshop and transferred to the general solid waste warehouse where is sorted and baled before being Optimize storage facilities Strict supervision of Establish an emergency

loaded and transported to the paper mills. transportation and disposal response mechanism

LAZZEN fully implements standardized management of solid Conduct a comprehensive Select qualified and Develop contingency plans

waste and relies on the solid waste management platform to inspection and upgrade of experienced hazardous for sudden environmental

implement full-process digital control. During the reporting hazardous waste storage waste disposal units sign incidents and organize regular

period the platform management plan fully covered all waste- facilities to ensure they meet detailed hazardous waste emergency drills.generating links the information filling rate reached 100% national standards and disposal contracts clarify

ensuring that the data was timely true and traceable. The have good leak-proof leak- the rights and obligations of

system operated stably and no warning events were triggered proof rainproof and other both parties and strengthen

throughout the year. At the same time LAZZEN established clear functions. tracking and supervision of

and accurate solid waste management ledgers detailing the the transportation process.generation storage transfer and disposal of all types of solid Solid waste management platform

waste and strictly implemented the electronic waybill system

which was filled out in a standardized manner with complete

content and orderly circulation. Disclosures Units 2025

Hazardous waste Total waste generation tons 259

Total hazardous waste generation tons 39

LAZZEN's hazardous waste includes waste cutting fluid waste packaging materials for hazardous chemicals

wastewater sludge waste paint packaging drums etc. LAZZEN signs hazardous waste disposal contracts with Total general waste generation tons 220

qualified third-party companies to handle hazardous waste every year and the process is registered and verified in Waste recycling volume tons 220

the national solid waste management system during the transfer of hazardous waste. We conduct risk management

for hazardous waste and formulate corresponding risk response measures for hazardous waste leakage soil and

water pollution and serious environmental pollution accidents that may occur during the collection storage

transportation and disposal of hazardous waste. * Data cover the Shanghai Factory and the Hangzhou Bay Mega Factory

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Chemical Management

LAZZEN attaches great importance to chemical safety and has established chemical management procedures such

as Chemical Management Procedures Five Doubles Management System for Highly Toxic Chemicals (Explosive

Precursor and Precursor Drugs) in Electroplating Manufacturing Department Safety Operating Procedures for

Hazardous Chemicals in Electroplating Manufacturing Department and Safety Operating Procedures for Handling

and Loading/Unloading of Hazardous Chemicals in Electroplating Manufacturing Department.Storage of chemicals

LAZZEN controls the total storage volume of all applicable chemicals and explosion-proof cabinets are installed at

the workshop usage points. LAZZEN has a hazardous chemicals warehouse where hazardous chemicals are classified

and zoned and the processes from the entry and exit of chemicals to their use are strictly in accordance with the

requirements for the operation and management of highly toxic substances. LAZZEN requires personnel responsible

for the storage of highly toxic chemicals to have a general knowledge of handling highly toxic chemicals. In addition

the storage management of highly toxic chemicals must strictly adhere to the "five doubles system" namely double-

person receipt and dispatch double-person accounting double-person double-lock double-person transportation

and double-person use.LAZZEN's management of hazardous chemicals is directly connected to the Zhejiang Provincial Public Security

Organs Integrated Intelligent Governance Platform for Key Items (highly toxic chemicals). Through government

network management LAZZEN insists on regular monitoring and reporting of safety hazards actively accepts

government review and reports self-inspection risk points on the safety production platform every month and

completes rectification in a timely manner.First aid drill for acute poisoning from highly toxic substances

Biodiversity Conservation

Highly toxic chemicals network intelligent governance platform LAZZEN strictly adheres to laws regulations and rules such as the Regulations on the Protection of Wild Plants. We

encourage employees to attach importance to ecological environment protection actively conduct environmental

awareness campaigns and are committed to promoting best practices for protecting animals and strictly follows the

LAZZEN actively organizes training and assessment related to chemicals and highly toxic chemicals conducts internal environmental compliance management system in the process of production and operation to minimize the

emergency drills for chemicals and enhances employees' safety awareness and risk response capabilities. In 2025 negative impact on biodiversity and ecological environment.LAZZEN carried out education and training on precursor chemicals and hazardous chemicals. In addition the

electroplating workshop conducted first aid drills for the leakage and poisoning of highly toxic substances. These To effectively protect biodiversity LAZZEN conducts strict ecological assessments during the project site selection

drills have enhanced safety management of the use and storage of highly toxic chemicals improved emergency stage actively avoids various ecologically sensitive areas such as ecological protection red lines and natural

response capabilities for sudden poisoning incidents promoted multi-departmental synergy in the safety habitats and minimizes the impact of development activities on the ecological environment. In the early stage of

management of highly toxic chemicals and familiarized relevant units with the use of detoxification agents for acute the construction of the Hangzhou Bay Mega Factory the regional ecological environment was determined to be

poisoning. insensitive and classified as a general development area.

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05

Employee

Employee Rights

Employee Care

Talent Development

Occupational Health and Safety

Contributions to the United Nations

Sustainable Development Goals (SDGs)

101 1022025 Environmental Social and Governance Report

Employee Rights By age 41 By region 2

LAZZEN strictly adheres to the Labor Law and other relevant laws and regulations safeguards the legitimate rights 712

and interests of employees continuously optimizes the compensation system clarifies the promotion path and

training mechanism for employees facilitates open communication channels for employees provides various

employee benefits and organizes diverse activities truly thinks what employees think and enhances employees' Under 30 years old

satisfaction and sense of belonging.

30 to 50 years old Chinese mainland

LAZZEN promotes continuous innovation and business growth by formulating precise talent introduction and

effective talent management strategies. In the recruitment and employment process We require all regular Over 50 years old 1899 Other countries and regions 2650

employees to sign labor contracts in accordance with the law at the onboarding stage to protect the legitimate rights

and interests of both parties and to achieve the standardization and compliance of employment management. Our

recruitment and assignment follow the principle of "Meritocracy and ability first; mutual recognition and smooth As of the end of the reporting period LAZZEN had 10 minority employees and 4 disabled employee and continued

handover" ensures fairness and continuity of work; encourage employees to recommend suitable talents for us and to create an open inclusive equal opportunity and common development employment environment. During the

have corresponding reward rules. reporting period we intensified our recruitment efforts with 629 new employees recruited an increase of 212

compared to the previous year.Employee hiring strategy

Human rights protection

Strategy Module Specific measures

LAZZEN has established management systems such as the Human Resources Management System and the Social

We drive continuous innovation and business Attract industry experts through social recruitment Responsibility Management Measures set up anti-discrimination regulations to eliminate unfair treatment adheres

growth by formulating precise talent recruitment S elect outstanding talents from industry-specific top to the principle of equal pay for equal work strictly prohibits any form of discrimination firmly resists the use of

and effective talent management strategies institutions through management trainee programs child labor and forced labor safeguards the legitimate rights and interests of employees and creates a fair mutually

respectful and diverse working environment.C ommitted to building internal and external talent maps and

talent pools Anti-discrimination and equal treatment

Talent Map S ystematically manage and plan talent resources to ensure

that the company can continuously attract and retain key LAZZEN is committed not to discriminate on the basis of race ethnicity regional or social origin social class origin

talent religion disability gender sexual orientation family responsibility marital status group membership political

opinion age or any other circumstances that may cause discrimination and to be impartial and objective in

handling matters related to employment remuneration training promotion dismissal or retirement. In addition

Diversified hiring we require suppliers and outsourcing parties to refrain from discriminatory practices and to supervise them in

accordance with the Supplier Development Management Procedure.LAZZEN adheres to the principles of diversity fairness and inclusiveness in employment providing equal

employment opportunities to all job seekers. During the recruitment process we don't discriminate based on

factors such as ethnicity race gender age religious belief household registration disability marital status or Prohibition of child labor

family background. We strictly follow the standards of fairness impartiality and merit-based selection respecting

and embracing the individual differences and diverse backgrounds of employees. Committed to creating an open The human resources department ensures that no child labor or underage workers are recruited when hiring. If

inclusive equal opportunity and mutually beneficial employment environment. it is found that we have used child labor the human resources department is responsible for providing relief. The

purchasing department requires suppliers subcontractors and sub-suppliers to sign commitments to eliminate the

use of child labor and protect underage workers.By gender By type of employment 69

58

796 LAZZEN has established a recruitment registration verification system to regulate employment management

and avoid employing child labor:

M ake it clear in the job advertisement or at the job fair that no child labor under the age of 16 will be hired

Labor contract system for any position.Male Labor dispatch A sk candidates to provide personal information such as their date of birth. Once a candidate is identified

the human resources department must re-examine the candidate's ID card to ensure that the age meets the

Female 1856 Others 2525 requirements.

103 1042025 Environmental Social and Governance Report

Prohibited of forced labor Employee satisfaction

LAZZEN is committed to eliminating all forms of forced labor ensuring that employees are not physically punished We completed the 2025 Employee Satisfaction survey in May 2025. A total of 1281 valid questionnaires were

assault searched or insulted. We maintain an unlocked workplace ensure unrestricted freedom of movement and collected in this survey with an employee participation rate of 82.5%. The survey has a wide coverage and high

uphold the right of workers to leave the factory freely after work. participation rate truly reflecting the voices and demands of employees.The overall employee satisfaction score was 6.35 out of 7 and the overall employee recognition rate was 90.7% an

Compensation management increase of 3.5 percentage points compared with 2024 indicating that our corporate culture management efficiency

working environment and welfare security have been widely recognized by employees and phased achievements

LAZZEN has established management systems such as the Performance Management System and the Compensation have been made in employer brand building and internal management optimization.and Benefits Management System and conducts scientific compensation management in combination with In the future we will continue to be oriented towards the needs of our employees translate the survey results into

employee performance assessment clearly defining the composition of three parts of compensation rights and practical improvement measures continuously enhance employees' sense of belonging happiness and gain and

interests: equity salary and bonus fully respecting employees' access to fair and impartial compensation rights work together with all employees to seek common development.and interests.We have established a talent incentive and assessment system that is market-oriented and customer-

centered. Adhere to a compensation incentive mechanism that combines cash compensation with employee stock

ownership and continue to do a good job in the sale of reserved shares of the employee stock ownership plan and

the recognition of performance evaluation. Employee Care

LAZZEN implements a refined compensation management strategy to accommodate the specific needs and LAZZEN attaches great importance to employee benefits and activities cares about the physical and mental health of

contributions of employees in different business lines. By taking into account factors such as job responsibilities employees contributes to the housing provident fund and various social insurances such as endowment insurance

professional skills job performance and market pay levels fully stimulate the enthusiasm and creativity of basic medical insurance unemployment insurance work-related injury insurance and maternity insurance for

employees promote the stable development of talents and help to achieve our long-term strategic goals. employees and organizes comprehensive physical examinations for employees on a regular basis to ensure coverage

of 100%. In addition the company strengthens employees' sense of belonging by organizing a variety of cultural and

Democratic communication sports activities and implementing a comprehensive welfare policy.Employee benefits

LAZZEN has established trade unions and workers' congresses holds regular workers' congresses and has

established a system of equal consultation and collective contracts. By unblocking the democratic dialogue

mechanism collecting opinions and suggestions from all staff and improving the VOS Voice community to ensure

the effective implementation of democratic management. We also actively promotes the factory affairs disclosure Five social

mechanism strengthens democratic supervision and conducts labor dispute mediation in accordance with the insurances Settlement Subsidies for Team-

law provide channels for employees' complaints regarding salary performance and assessment management and housing in Shanghai community building

ensure that employees' rights and interests are properly protected and create a harmonious and stable working fund activities expenses

environment.Each workshop bulletin board has a feedback channel where employees can contact if they encounter problems or

need feedback consultation complaint etc.Annual Women's Hardship physical

examination care

grants & Sick care

donation

Leave management

LAZZEN always pays attention to the physical and mental health and life balance of employees and establishes a

standardized complete and humanized vacation system. We strictly enforce national legal holidays and paid annual

leave and provides all types of leave such as marriage leave maternity leave and parental leave in accordance with

the law encouraging employees to balance work and rest and take reasonable breaks so that every employee can

enjoy life and spend time with their families while working with peace of mind. We have set out various types of leave

Bulletin Board and their implementation regulations in the Employee Handbook as follows:

105 1062025 Environmental Social and Governance Report

Employee greetings

Statutory Paid Marriage Distributed 300 cooling supplies to frontline workers working in high temperatures to provide summer care

holidays annual leave leave

Prenatal

check-up Maternity Nursing

leave leave time

Parental Care leave Bereavement

Assistance for employees in need Light up wishes

leave leave

Identified the recipients of assistance for the Successfully fulfilled one employee's micro-wish

2026 Spring Festival in advance and finally by trade union

applied for assistance for one needy employee

Caring for female employees Employee activities

LAZZEN has created "Love Mommy Rooms" specifically for pregnant and lactating female employees By actively engaging in various forms of activities enrich employees' spare-time cultural life enrich

equipped with essential items such as sofas refrigerators disinfection cabinets hot water kettles file racks employees' cultural life and spiritual world

partition screens and books on breastfeeding and lactation knowledge. These rooms are built and managed

in a standardized manner with dedicated personnel responsible for daily maintenance such as cleaning

and disinfection of the environment and facilities to ensure that the rooms are clean tidy and comfortable

demonstrating care for female employees.Employee club activities

Loving Mommy Room Birthday party Women's Day activities

107 1082025 Environmental Social and Governance Report

Employee club activities 2025 Zhuguang Program - 3rd Anniversary of Employment

The Zhuguang Program is a cultural and sports activity specifically designed for core employees who have

been with LAZZEN for three years. In 2025 we set up a 10-kilometer hiking challenge and all participating

employees successfully completed it.Mother's Day activities Father's Day activities Children's Day Essay Contest

2025 Shaoguang Program - 5th Anniversary of Employment

The Shaoguang Program is an honor care and capability enhancement program specifically designed for

core employees who have been with LAZZEN for five years. Through the Youth Family Day series of activities

we aim to express gratitude to employees for their long-term contributions unite the team and empower

growth.DIY activities for the Dragon Boat Festival Mid-Autumn Festival activities

2025 Miguang Program - 1st Anniversary of Employment

The Miguang Program is a tea party specifically for core employees who have been with LAZZEN for a full

year. Through employee interaction and sharing we deepen trust and friendship and help them integrate

into the team culture.The awarding ceremony of the Prime Time Commemorative gold Coin

Prime Time Garden Party - Corporate culture Flying Chess

109 1102025 Environmental Social and Governance Report

Talent Development Management trainee onboarding training

Promotion system For new management trainees we have meticulously planned a series of intensive classroom training sessions with the essence of "experience and integration" aiming to quickly immerse these new talents in the vast world of the

company help them gain an in-depth understanding of LAZZEN's corporate culture operation management and

LAZZEN implements a dual-track career development path covering professional and management positions various business processes and lay a solid foundation for their future career development.allowing employees to advance across different tracks and achieve multi-path career development. The promotion

system specifies the qualifications for promotion and requires employees to demonstrate their abilities and

adaptability through a defense session. The assessment criteria are set according to the requirements of the training

institute.LAZZEN implements a cadre management rotation system to promote the all-round development and experience

accumulation of cadres. In the future we will continue to optimize the promotion channels and management

mechanisms for employees providing them with broader career development space.Employee training

Our internal training system is based on the LAZZEN Talent Development Center which has five professional

colleges each focusing on a different functional area. Training activities are planned and implemented on a monthly

and quarterly basis and summarized and reviewed at the end of the year. The company follows up on the demand for

new training programs in real time and manages and adjusts them in accordance with the human resources system

and the specific systems of each college. Occupational Health and Safety

Employee internal training system

Work safety

Drive performance LAZZEN is committed to establishing and improving the safety production standardization process perfecting the

safety production responsibility system building intelligent safety production lines optimizing the safety production

standardization process and fully ensuring the safety of production operations.Pangu Institute Edison Institute Panshi Institute Jingyi Institute Ganjiang Institute LAZZEN has always adhered to the safety policy of "safety first prevention foremost comprehensive governance"

based on relevant provisions such as the Safety Law established the Safety Committee clarified responsibilities at

all levels promoted the standardization process of work safety governance held safety month activities every year

WIN Program Trust Training and conducted regular work safety inspections.Internal instructor resource LAZZEN course resource External resource

constructio library introduction Safety Committee Organization Structure

Online learning platform Safety Committe Safety Committee Office Safety Team

PBC+ Position Responsibility Fulfillment We continuously explore smart safety production lines and build dynamic digital twin virtual factories by

comprehensively applying advanced technologies such as digital modeling simulation analysis and the IoT. By

introducing multiple sets of imported high-precision equipment fully automated production lines intelligent three-

The LAZZEN Talent Development Center is responsible for overall planning and management of training affairs and dimensional storage equipment and intelligent inspection equipment we reduce the safety risks for employees

is committed to building a team of lecturers composed of both internal and external experts. The center will be during production and create a safe digital intelligent production line.responsible for the development and execution of courses and through systematic training programs cultivate and

build a high-quality talent team providing support for our long-term development goals. In addition we focuse on At present Haiyan LAZZEN has obtained the Safety Production Standardization Level 3 Enterprise (Machinery)

the development of potential reserves and the continuous training of cadres upon their appointment to ensure that Certificate; Shanghai LAZZEN has obtained the Safety Production Standardization Level 2 Enterprise (Machinery)

employees can adapt to new job requirements and continuously improve their personal capabilities. Certificate.

111112

LAZZEN Talent Development

Center2025 Environmental Social and Governance Report

Duties of the Safety Committee We have formulated occupational health management documents such as the Notice

of Environmental and Occupational Health Requirements Declaration of Abandonment

01 Regularly analyze the situation of work safety analyze and determine the policies objectives and of Occupational Health Exit Examination and Environmental Occupational Health and indicators for work safety and occupational disease prevention and control. Safety Management System continuously updated hazard identification documents

and established a complete occupational health and safety production reporting

02 Formulate safety technical measures occupational disease prevention and control annual key system.work plans and annual safety expense plans. LAZZEN has obtained ISO 45001 Occupational Health and Safety Management System

Certification.

03 Clearly define the special funds assessment rewards and punishments for work safety occupational disease prevention and control and fire emergency response. Study coordinate and solve major

problems in production. Review solutions to major safety hazards and emergency response plans Occupational health risk management

for production safety accidents and improve occupational health and safety management and

emergency response systems. LAZZEN actively conducts comprehensive occupational health risk factor identification ISO 45001 Occupational Health

and early intervention conducts daily inspections based on the Hazard Identification and Safety Management System

04 Guide activities and publicity and education related to work safety and occupational disease and Risk Assessment Form identifies and assesses hazard sources in production and Certificationprevention and control do a good job in summarizing work safety and occupational health promote operation activities ensures the timely discovery of potential safety hazards keeps

advanced technologies and management methods for work safety and occupational disease records and tracks improvement status thereby effectively reducing occupational

prevention and control and select commend and reward advanced departments and individuals in health and safety risks.work safety and occupational disease prevention and control. Occupational health risk assessment and management measures

05 In accordance with the approval of the state and local government and the relevant regulations of Risk types Management approaches Specific measuresLAZZEN propose handling opinions for departments and personnel responsible for major work

safety accidents within the company. Occupational

disease prevention Develop and implement occupational disease prevention management systems in accordance

management with normative requirements

06 Hold accountable for other safety production accidents that occur within LAZZEN discuss and decide on the handling of relevant responsible departments and personnel and assist in handling Management of Develop and enforce a noise emissions management system to ensure compliance with relevant noise emissions standards

major matters related to safety production. Risk of work safety

Establish a management system for labor protection supplies and clearly define the

Management of distribution records

labor protection Train personnel in all positions to truthfully collect record and correctly wear labor protection

Work safety and emergency management supplies

supplies

The EHS department should regularly inspect the wearing situation truthfully record and feed

back to the responsible department for rectification

In order to minimize the potential accident consequences of emergencies LAZZEN conducts regular safety

Emergency Emergency LAZZEN is equipped with 11 AEDs (4 in Shanghai Base and 7 in Haiyan Base)production risk assessments and formulates corresponding safety production emergency preparedness and accident risk equipment and Practical training with AEDs for key personnel (security personnel cafeteria staff equipment

response measures for emergencies such as falls from heights and mechanical injuries that may cause personal training personnel EHS-related responsible persons etc.)

injury or loss to the company. Safety Safety hazard The EHS department conducts daily on-site safety hazard inspectionsmanagement inspection Records hazards in a timely manner and feeds them back to the responsible department for In recognition of the irreversible impact of injuries to people and property damage in emergencies we actively risks rectification within a specified time limit

organize specialized training and emergency drills to enhance employees' ability to respond to emergencies

and strengthen teamwork. Specialized training includes forklift safety training accident case warnings and Occupational R egularly conduct occupational health check-ups for personnel in positions with occupational hazards

presentations occupational disease and occupational hazard factor training emergency training covers operational Occupational health examinationhealth risks Occupational Prohibit personnel with contraindications from working in hazardous positions and transfer

coordination and communication skills in various emergency scenarios such as natural disasters and public health health monitoring them R egularly conduct occupational health monitoring in accordance with normative requirements

events enhancing the team's practical ability to deal with complex situations and minimizing losses and injuries. In

addition employees are provided with safety incident videos to foster a culture of learning and prevention ensuring Occupational health goals

comprehensive safety and health throughout the production process.Occupational health Serial number Occupational health management objectives Achievement status

LAZZEN attaches great importance to employees' occupational health established an occupational health 1 Work-related injury and above (Level 4 and above) ≤ 1 Achieved

management system and implementd management measures such as detection of occupational hazard factors 2 Zero occupational disease occurrences Achieved

optimization of protective equipment and occupational health education and training to strengthen our capacity

for occupational health protection. 3 Rate of personal injury sent to hospital is ≤ 1% Achieved

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06

Collaboration and

Public Welfare

Industry Collaboration

Social Welfare

Contributions to the United Nations

Sustainable Development Goals (SDGs)

115 1162025 Environmental Social and Governance Report

Industry Collaboration Some of the industry associations in which LAZZEN participates

LAZZEN actively engages in industry collaboration and school-enterprise cooperation actively participates in Shanghai Electric Power China Electrical Equipment Industry

industry forums government-related activities and industry conferences assists in the formulation of industry Industry Association Association (General Association)

standards promotes knowledge sharing and technological innovation and contributes to the overall improvement Member Unit Director Unit

and high-quality development of the industry.To strengthen market promotion and deepen customer partnerships we planed and organized large-scale industry China Electrical Equipment Industry

exhibitions academic forums and industry exchange activities to continuously enhance the company's brand Association General Low Voltage Electrical Zigbee Alliance (CSA Alliance)

influence and industry exchange level. Appliances Branch

Deputy Chairman Unit Participant

China Electrical Equipment Industry

Association Electrical Accessories and China Smart Home Industry Alliance

Home Controllers Branch

Member Unit Chairman Unit

China Survey and Design Association Architectural Electrical Branch of China Architecture Society

Director Unit Director Unit

GENERA 2025 International Week of Electrification and The 13th Energy Storage International

Decarbonisation Conference and Expo (ESIE 2025) New Energy Electrical Appliances New Energy Storage

Alliance Industry Association

Deputy Chairman Unit Member Unit

Standard formulation and revision

National and group standards that LAZZEN participated in formulating and revising in 2025

Serial

numbers Standard number Standard name

Standard

type

The 21st Green Energy Expo The 22th China International Exposition of Housing Industry 1 GB/T 10963.3-2025 Electrical accessories—Circuit-breakers for overcurrent protection for household National

& Products and Equipments of Building Industrialization and similar installations—Part 3: Circuit-breakers for DC operation Standard

Low-voltage switchgear and controlgear—Part 4-3: Contactors and motor-

2 GB/T 14048.12-2025 starters—Semiconductor controllers and semiconductor contactors for non- National

motor loads Standard

3 GB/T 14048.3-2025 Low-voltage switchgear and controlgear—Part 3: Switches disconnectors National switch-disconnectors and fuse-combination units Standard

4 GB/T 14048.6-2025 Low-voltage switchgear and controlgear—Part 4-2: Contactors and motor- National starters—Semiconductor motor controllers starters and soft-starters Standard

5 GB/T 18499-2025 Residual current-operated protective devices (RCD) for household and similar National use—Electromagnetic compatibility Standard

6 GB/T 20641-2025 Empty enclosures for low-voltage switchgear and controlgear assemblies— National

2025 New Energy Ecosystem Cooperation Conference The 4th Nuclear Electrical Technology Exchange General requirements Standard

Conference and Nuclear Electrical System and

Equipment Reliability Exchange Conference

117 1182025 Environmental Social and Governance Report

Serial Standard number Standard name Standard Serial Standard number Standard name Standard numbers type numbers type

7 GB/T 31143-2025 General requirements for arc fault detection and protection devices (AFDD) National 27 T/CEEIA 877-2025 Quantification methods and requirements for carbon footprint of greenhouse Group Standard gas products Low-voltage switchgear assemblies Standard

8 GB/T 24276-2025 A method of temperature-rise verification of low-voltage switchgear and National controlgear assemblies by calculation Standard 28 T/CEEIA 940-2025 Internet of Things smart miniature circuit breakers

Group

Standard

9 GB/T 22200.1-2025 Reliability for low-voltage apparatus - Part 1: General rules National Standard 29 T/CEEIA 963-2025

Guidelines for Selection of Low-voltage Circuit breakers for Wind Power Group

Converters Standard

10 GB/T 22200.2-2025 Reliability for low-voltage apparatus—Part 2: Reliability test method of moulded National case circuit-breakers Standard 30 T/CEEIA 964-2025 Low-voltage circuit breakers for wind power converters

Group

Standard

11 GB/T 22200.3-2025 Reliability for low-voltage apparatus—Part 3: Reliability test method of overload National Group relay Standard 31 T/CEEIA 965-2025 Low-voltage DC molded case circuit breakers for photovoltaic storage systems Standard

12 GB/T 22200.4-2025 Reliability of low-voltage apparatus—Part 4：Reliability test method of circuit- National Group breakers for overcurrent protection for household and similar installation Standard 32 T/CEEIA 966-2025 Low-voltage DC miniature circuit breakers for photovoltaic storage systems Standard

13 GB/T 22200.5-2025 Reliability of low-voltage apparatus—Part 5:Reliability test method of residual National Group current operated circuit-breaker for household and similar uses Standard 33 T/CES 409-2025 Low-voltage DC disconnectors for photovoltaic storage systems Standard

14 GB/T 22200.7-2025 Reliability for low-voltage apparatus—Part 7: Reliability test method of National contactors Standard 34 T/DZJN 424-2025 Information and communication 1U circuit breaker

Group

Standard

15 25D204-2 Smart power supply and lighting control National Standard 35 T/CECA-G0171-2025 Evaluation specification for Zero Carbon factory

Group

Standard

16 25DX016-1 Zero carbon building electrical and intelligent design National Standard 36 DB21/T 4112-2025 Specification for energy management in college

Local

Standard

17 JB/T 14947-2025 Technical requirements for digital workshop of miniature circuit-breakers Group Standard

18 JB/T 14941-2025 Technical Specification for green- design Product assessment— Circuit Industry -breakers for overcurrent protection for household and similar installation Standard Social Welfare

19 DL/T 1441-2025 Technical conditions for intelligent low-voltage distribution box Industry Standard

Technical specification for green-design product assessment - Moulded-case Industry In 2025 we adhered to the public welfare concept of "People-oriented and giving back to society" and worked hard 20 JB/T 14942-2025 circuit-breaker Standard on both the trade union and the company level to carry out various public welfare and charity activities solidly.In response to the call for local charity we participated in the "Kangqiao Town Charity and Public Welfare Joint

21 JB/T 8627-2025 Bimetal type thermal over-load relay Industry Standard Donation" and "2026 Gaohang Town Charity and Public Welfare Joint Donation" in December 2025 donating a total of CNY12000. With practical actions we contributed to the development of local public welfare and conveyed

22 PCCC-GF015-2025 Technical Specification for Product certification of low-voltage circuit breakers Group

responsibility and warmth through small acts of kindness.for new energy systems Standard

LAZZEN actively participates in community public welfare and rural revitalization activities establishes solid

23 T/BICA 024-2025 Test methods for intelligent low-voltage plastic-enclosed circuit breakers Group cooperative relationships with local residents government agencies community organizations etc. takes the Standard initiative to care about people's livelihood and help the weak and needy promotes sustainable development of the

social economy and achieves the company's long-term development strategic goals.

24 T/BICA 025-2025 Technical requirements for smart Internet of Things circuit breakers Group Standard

25 T/BICA 026-2025 Technical requirements for low-voltage intelligent molded case circuit breaker Group systems Standard

26 T/CEC 802.4-2025 Technical guide for parallel DC power supply system in 220kV and below Group substations - Part 4: Operation and maintenance Standard

119 1202025 Environmental Social and Governance Report

Key Performance Disclosures Units 2024 2025

Total volume of circulating water/reclaimed

water tons 5016 4052

Environmental Performance Total water withdrawal tons 237836 262657

Total water consumption tons 41840 25610

Disclosures Units 2024 2025 Water usage intensity tons/ CNY10000 0.6141 0.6166

Responding to climate change Material usage

Scope 1 GHG emissions tCO2e 1125.37 780.34 Total use of packaging consumables tons 1832 1919

Scope 2 GHG emissions tCO2e 18716.38 20986.29 Wood tons 1439 1507

Total GHG emissions tCO2e 19841.75 21766.63 Plastic tons 315 330

GHG emission intensity tCO2e / CNY 10000 0.0512 0.0511 Paper tons 78 82

Energy consumption Discharge of gaseous pollutants

Comprehensive energy consumption tce 4515 5039 Total exhaust emissions m3 588960000 485130000

Comprehensive energy consumption intensity tce / CNY 10000 0.0117 0.0118 Particulate matter kg 2 2

Natural gas m3 100705 82332 Total non-methane hydrocarbons kg 991 816

Gasoline Liter 28258 29589 Nitrogen oxides kg 0 0

Purchased steam tons 2273 1026 Sulfur oxides kg 0 0

Purchased electricity MWh 33621 39028 VOC emissions kg 3964 2870

Direct energy consumption tce 165 142 Discharge of water pollutants

Indirect energy consumption tce 4350 4897 Total amount of wastewater discharge tons 195995 237047

Usage of clean energy MWh 4705 5526 Industrial wastewater discharge tons 4104 3315

Water use Domestic wastewater discharge tons 191891 233732

Municipal water purchase volume tons 232820 258605 Chemical Oxygen Demand (COD) tons 0.116 0.688

*We have retrospectively adjusted the statistical criteria for the Comprehensive energy consumption Comprehensive energy *We have adjusted the statistical scope of Total amount of wastewater discharge to the sum of Industrial wastewater discharge

consumption intensity Natural gas Gasoline Direct energy consumption Indirect energy consumption Municipal water purchase and Domestic wastewater discharge and consolidated the data of the Shanghai base. As a result the Total amount of wastewater

volume Total water withdrawal and Total water consumption for the year 2024. The addition of data from the Shanghai base has discharge and Domestic wastewater discharge data for 2024 are different from the disclosed values of the previous year.led to differences in the disclosed data compared to the previous year.

121 1222025 Environmental Social and Governance Report

Disclosures Units 2024 2025 Social Performance

Biochemical Oxygen Demand (BOD) tons 0 0

Disclosures Units 2024 2025

Suspended matter tons 0 0

Innovative research and development

Ammonia nitrogen tons 0.002 0.001

Research and development investment amount CNY 10000 32469.74 33379.09

Total Nitrogen (TN) tons 0.026 0.076

Proportion of research and development investment to

business income % 7.66 7.44

Total Phosphorus (TP) tons 0.001 0.013

Number of R&D personnel persons 594 657

pH - 6-9 6-9

Proportion of R&D personnel % 25.22 25.79

Waste management

Number of invention patents applied to the main

business / 348 404Total waste generation tons 101 259

Number of patent applications for invention during the

Total hazardous waste generation tons 30 39 reporting period / 127 159

Number of invention patents granted during the

Total general waste generation tons 71 220 reporting period / 207 56

Waste recycling volume tons 71 220 Number of new patents granted during the reporting

period / 356 379

Environmental compliance Number of patents held / 1779 2016

Environmental investment CNY 10000 170 70 Number of trademark and word registrations held / 701 731

Amount of major administrative penalties

imposed by ecological and environmental Number of software copyrights held / 60 107

authorities for environmental incidents during CNY10000 0 0

the reporting period Annual number of new patent applications / 456 572

Number of employees who received

environmental training persons 2355 3550 Employee hiring

Total duration of environmental training for

employees hours 4710 7100 Proportion of labor contracts signed % 100 100

Average duration of environmental training for hours 2 2 Total number of employees persons 2355 2652employees

Male persons 1637 1856

By gender

Female persons 718 796

Labor contract system persons 2259 2525

By type of

employment Labor dispatch persons 66 69

Others persons 30 58

*Total number of employees includes dispatched workers while the total number of employees in the annual report excludes

dispatched workers.

123 1242025 Environmental Social and Governance Report

Disclosures Units 2024 2025 Disclosures Units 2024 2025

Over 50 years old persons 25 41 Number of departing employees persons 710 562

By age 30 to 50 years old persons 1697 1899 Talent development

Under 30 years old persons 624 712 Employee training investment CNY 10000 200 190

Chinese mainland persons / 2650 Number of employees who received training persons 39241 41315

By region

Other countries and regions persons / 2 Number of training sessions times 651 351

Doctor persons 3 3 Total duration of training received by employees hours 47175 50952

Master persons 142 169 Number of employees who undergo performance

appraisals or career development evaluations persons 1565 1599

By educational

attainment Undergraduate persons 1188 1359 Work safety

Junior college persons 348 430 Safety production investment CNY 10000 124 108

Below junior college persons 674 691 Number of work safety accidents cases 0 0

Total number of grassroots

employees persons 2116 2378 Employee work injury insurance coverage % 100 100

Total number of middle persons 228 255 Employee work safety liability insurance coverage % 100 100management staff

By employee Total number of senior Employee safety production liability insurance persons 34 19 contribution amount CNY 10000 3 3category management staff

Number of women in middle persons 11 40 Number of work-related accidents cases 5 3management

Number of women in senior Number of work-related injuries persons 5 3

management persons 1 3

Number of work-related fatalities cases 0 0

Production personnel persons 888 930

Number of deaths at work persons 0 0

Technical personnel persons 657 823

Number of contracted work-related injuries cases / 0

By professional

composition Salesperson persons 586 628

Number of contractor deaths at work persons / 0

Financial personnel persons 24 33

Number of employees receiving safety training persons 1742 1812

Management personnel persons 200 238

Total hours of safety training attended by employees hours 13936 14496

Number of ethnic minorities persons 6 10

Occupational health

Number of disabled people persons 1 4

Number of plants certified by the Occupational Health

and Safety Management system persons 5 5Number of new hires persons 417 629

125 1262025 Environmental Social and Governance Report

Disclosures Units 2024 2025 Governance Performance

Number of employees in occupational risk positions persons 503 778 Disclosures Units 2024 2025

Number of employees undergoing occupational health

check-ups persons 480 780 Corporate Governance

Number of employees with occupational diseases persons 0 0 Number of shareholders' meetings held / 2 4

Number of companies participating in the physical Number of board meetings / 10 6

examination persons 1742 1768

ESG Governance

Proportion of person-times participating in physical

examinations % 79 80

Number of ESG training sessions / 1 1

Supply Chain management

ESG training coverage persons 30 20

Total number of suppliers / 272 305

Risk Compliance and Taxation

Proportion of suppliers signing the Supplier Integrity

Clause % 100 100 Risk/Audit training times 4 2

Proportion of suppliers signing terms that include Number of employees covered by risk/audit training persons 200 200

environmental and labor requirements % 100 100

Number of suppliers conducting social impact Number of employee compliance training persons 100 150

assessments / 83 100

Number of employees covered by financial tax training persons 30 27

Number of suppliers conducting environmental impact

assessments / 120 120

Anti-corruption

Number of suppliers certified with ISO 9001 / 256 289

Number of corruption lawsuits filed and concluded by regulators against issuers

or their employees / 0 0

Number of suppliers certified with ISO 14001 / 125 140

Number of anti-corruption whistleblowing incidents / 2 1

Number of suppliers certified with ISO 45001 / 83 100

Proportion of directors covered by anti-commercial bribery and anti-corruption % 55 100

Number of suppliers identified as having actual and training

potential significant negative social impacts / 0 0

Proportion of management personnel covered by anti-commercial bribery and

Number of suppliers identified as having actual and anti-corruption training

%100100

potential significant negative environmental impacts / 0 0

Proportion of employees covered by anti-commercial bribery and anti-

corruption training % 80 63

Number of new suppliers / 15 22

Investor Relations

Local supplier percentage % 13 15

Investor communication activities conducted / 78 74

Number of suppliers who terminated their cooperation / 0 0

Record sheet of investor relations activities released / 8 7

Social contribution

Earnings briefing held / 3 1

Amount of social welfare contribution CNY 10000 36.3 1.2

Interactive Q&A / 61 52

Phone calls made / 60 48

*Apart from the personnel dataall the performance data above do not include those of Hoko Electric.

127 1282025 Environmental Social and Governance Report

Indicator Index GRI Index

Shenzhen Stock Exchange Guidance Index GRI

standards Disclosures Corresponding chapters

GRI 2: General Disclosures 2021

Dimensions Topics Corresponding chapters

About This Report

Responding to Climate Change Responding to Climate Change 2-1 Organizational details

Step into LAZZEN

Pollutant Emissions Pollutant Emissions

2-2 Entities included in the organization's sustainability reporting About This Report

Waste Disposal Waste Management

2-3 Reporting Period Frequency and contact point About This Report

Ecosystem and Biodiversity Conservation Biodiversity Conservation

Environment

Environmental Compliance Management Environmental Compliance Management 2-4 Restatement of information About This Report

Energy Utilization Resource Management 2-5 External assurance AA1000 Independent Assurance Statement

Water Utilization Resource Management 2-6 Activities value chain and other business relationships Step into LAZZEN

Circular Economy Resource Management

2-7 Employees Employee Rights

Rural Revitalization Social Welfare

2-9 Governance structure and composition Corporate Governance

Social Contribution Social Welfare

2-10 Nomination and selection of the highest governance body Corporate Governance

Innovation-driven Innovation-driven Development

2-11 Chair of the highest governance body Chairman's Message

Science and Technology Ethics Intelligence Ecosystem Products

2-12 Role of the highest governance body in overseeing the management of Supply Chain Security Supply Chain Security impacts Corporate Governance

Society Treat Small and Medium-sized Enterprises Treat Small and Medium-sized Enterprises

Equally Equally 2-13 Delegation of responsibility for managing impacts

Sustainable Development

Management

Product Quality 2-14 Role of the highest governance body in sustainability reporting Sustainable Development

Safety and Quality of Products and Services Management

Customer Service

2-16 Communication of critical concerns Sustainable Development

Data Security and Customer Privacy Information Security and Customer Privacy Management

Protection Protection

2-19 Remuneration policies Employee Rights

Employees Employee Rights

2-20 Process to determine remuneration Employee Rights

Due Diligence Risk Compliance

Stakeholder Communication Sustainable Development Management 2-22 Statement on sustainable development strategy

Sustainable Development

Management

Sustainable development-

related governance Anti-commercial Bribery and Anti- Business Ethics 2-26 Mechanisms for seeking advice and raising concerns

Sustainable Development

corruption Management

Anti-unfair Competition Business Ethics

129 1302025 Environmental Social and Governance Report

GRI

standards Disclosures Corresponding chapters

GRI

standards Disclosures Corresponding chapters

2-27 Compliance with laws and regulations Each chapter covers it 301-2 Recycled input materials used Resource Management

2-28 Membership association Industry Collaboration 301-3 Reclaimed products and their packaging materials Resource Management

2-29 Approach to stakeholder engagement Sustainable Development GRI 302: Energy 2016Management

302-1 Energy consumption within the organization Resource Management

GRI 3: Material Topics 2021

302-2 Energy consumption outside of the organization Resource Management

3-1 Process to determine material topics Sustainable Development Management

302-3 Energy intensity Resource Management

3-2 List of material topics Sustainable Development Management 302-4 Reduction of energy consumption Resource Management Special Topic

GRI 201: Economic Performance 2016

302-5 Reductions in energy requirements of products and services Resource Management Special Topic

201-1 Direct economic value generated and distributed Refer to the Annual Report

GRI 303: Water and Effluents 2018

201-2 Financial implications and other risks and opportunities due to climate change Responding to Climate Change

303-1 Interactions with water as a shared resource Resource Management

GRI 204: Procurement Practices 2016

303-2 Management of water discharge-related impacts Pollutant Emissions

204-1 Proportion of spending on local suppliers Social Performance

303-3 Water withdrawal Resource Management

GRI 205: Anti-corruption 2016

303-4 Water discharge Pollutant Emissions

205-1 Operations assessed for risks related to corruption Business Ethics

303-5 Water consumption Resource Management

205-2 Communication and training of anti-corruption policies and procedures Business Ethics

GRI 304: Biodiversity 2016

205-3 Confirmed incidents of corruption and actions taken Business Ethics

304-1 Operational sites owned leased managed in or adjacent to protected Environmental Compliance GRI 206: Anti-competitive Behavior 2016 areas and areas of high biodiversity value outside protected areas Management

206-1 Legal actions for anti-competitive behavior anti-trust and monopoly practices Business Ethics GRI 305: Emissions 2016

GRI 207: Tax 2019

305-1 Direct (Scope 1) GHG emissions Responding to Climate Change

207-1 Approach to tax Risk Compliance

305-2 Energy indirect (Scope 2) GHG emissions Responding to Climate Change

207-2 Tax governance control and risk management Risk Compliance

305-4 GHG emissions intensity Responding to Climate Change

207-3 Stakeholder engagement and management of concerns related to tax Risk Compliance

305-5 Reduction of GHG emissions Responding to Climate Change

GRI 301: Materials 2016

305-7 Nitrogen oxides (NOx) sulfur oxides (SOx) and other significant air emissions Pollutant Emissions

131 1322025 Environmental Social and Governance Report

GRI

standards Disclosures Corresponding chapters

GRI

standards Disclosures Corresponding chapters

GRI 306: Waste 2020 403-9 Work-related injuries Occupational Health and Safety

306-1 Waste generation and significant waste-related impacts Waste Management 403-10 Work-related ill health Occupational Health and Safety

306-2 Management of significant waste-related impacts Waste Management GRI 404: Training and Education 2016

306-3 Waste generated Waste Management 404-1 Average hours of training per year per employee Talent Development

306-4 Waste diverted from disposal Waste Management 404-2 Programs for upgrading employee skills and transition assistance programs assistance programs Talent Development

306-5 Waste directed to disposal Waste Management 404-3 Percentage of employees receiving regular performance and career development reviews Talent Development

GRI 308: Supplier Environmental Assessment 2016

GRI 405: Diversity and Equal Opportunity 2016

308-1 New suppliers that were screened using environmental criteria Sustainable Supply Chain Corporate Governance

405-1 Diversity of governance bodies and employees

308-2 Negative environmental impacts in the supply chain and actions taken Sustainable Supply Chain Employee Rights

GRI 401: Employment 2016 GRI 406: Non-discrimination 2016

401-1 New employee hires and employee turnover Employee Rights 406-1 Incidents of discrimination and corrective actions taken Employee Rights

401-2 Benefits provided to full-time employees that are not provided to GRI 408: Child Labor 2016temporary or part-time employees Employee Rights

401-3 Parental leave Employee Care 408-1 Operations and suppliers at significant risk for incidents of child labor Employee Rights

GRI 403: Occupational Health and Safety 2018 GRI 409: Forced or Compulsory Labor 2016

409-1 Operations and suppliers at significant risk for incidents of forced or 403-1 Occupational health and safety management system Occupational Health and Safety compulsory labor Employee Rights

403-2 Hazard identification risk assessment and incident investigation Occupational Health and Safety GRI 413: Local Communities 2016

403-3 Occupational health services Occupational Health and Safety 413-1 Operations with local community engagement impact assessments and development programs Social Welfare

403-4 Worker participation consultation and communication on occupational health and safety Occupational Health and Safety GRI 414: Supplier Social Assessment 2016

403-5 Worker training on occupational health and safety Occupational Health and Safety 414-1 New suppliers that were screened using social criteria Sustainable Supply Chain

403-6 Promotion of worker health Occupational Health and Safety 414-2 Negative social impacts in the supply chain and actions taken Supply Chain Security

403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships Occupational Health and Safety

GRI 416: Customer Health and Safety 2016

403-8 Workers covered by an occupational health and safety management

Product Quality

Occupational Health and Safety 416-1 Assessment of the health and safety impacts of product and service system categories

Customer Service

416-2 Incidents of non-compliance concerning the health and safety impacts of products and services Product Quality

133 1342025 Environmental Social and Governance Report

GRI

standards Disclosures Corresponding chapters

Assurance criteria

GRI 417: Marketing and Labeling 2016 The Bohan Sustainability Center uses the AA1000AS v3 Type 2 moderate assurance level which includes the

evaluation of LAZZEN's compliance with and extent of the four AA1000AS v3 assurance principles of inclusion

417-1 Requirements for product and service information and labeling Customer Service substance responsiveness and impact.

417-2 Incidents of non-compliance concerning product and service information and labeling Customer Service Source of assurance information

417-3 Incidents of non-compliance concerning marketing communications Customer Service

Report Title: LAZZEN 2025 Environmental Social and Governance (ESG) Report

GRI 418: Customer Privacy 2016 Source: LAZZEN

418-1 Substantiated complaints concerning breaches of customer privacy Information Security and Customer and losses of customer data Privacy Protection

Assurance duties and statements

The management of LAZZEN is fully responsible for the preparation and content of the LAZZEN 2025 Environmental

AA1000 Independent Assurance Statement Social and Corporate Governance (ESG) Report. It is the responsibility of the Bohan Sustainability Center to conduct the assurance based on the scope described in the opinion and to provide professional assurance opinions and

independent assurance statement opinions to the report readers and stakeholders.To the management and stakeholders of LAZZEN: Based on the restricted matters of the assurance scope the Bohan Sustainability Center conducts independent and

limited assurance work and guarantees the conclusion for the matters within the defined scope of the ESG Report of

Bohan Sustainability Center Co. LTD. (hereinafter referred to as "Bohan Sustainability Center") is entrusted by LAZZEN. in accordance with AA1000AS v3 (the management of LAZZEN is fully responsible for the preparation and

Shanghai Liangxin Electrical Co.LTD. (hereinafter referred to as "LAZZEN") to conduct independent limited assurance content of the report). Except for conducting independent assurance of the facts corresponding to those conclusions

of the information and data disclosed by LAZZEN. regarding the Environmental Social and Governance (ESG) Report and making other statements of opinion Bohan Sustainability Center shall not bear or be liable for any inquiry for

2025 (hereinafter referred to as the ESG Report) in the form of an independent assurance statement disclose the any other purpose or for any other person who reads this independent assurance statement of opinion.

results and conclusions of the assurance to the readers and stakeholders of the ESG report of LAZZEN.Any questions regarding the contents of this independent assurance statement or related matters will be answered

by LAZZEN.Scope of the assurance

The time range of this assurance is limited to the information and data disclosed in the ESG report for the period

from 1 January 2025 to 31 December 2025. Any relevant information outside the reporting period is not within the Assurance process and work

scope of this assurance.Verify the data and information covered by LAZZEN and its affiliated subsidiaries in LAZZEN's ESG Report. In order to gather evidence related to the formation of conclusions we carried out the following work:

This assurance does not include data and information from LAZZEN's suppliers partners and other third parties.

01 Document key resource requirements evidence to be collected tasks activities deliverables and timetables

To assess the extent to which LAZZEN's ESG Report complies with the AA1000AS v3 principles of inclusiveness in the assurance plan to form the assurance plan.substance responsiveness and impact.

02 Through interviews and document reviews understand the overall situation of LAZZEN's fulfillment of

For the information and data disclosed in the ESG report that has been audited or verified by an independent environmental social and corporate governance responsibilities and related management processes.third-party institution no re-assurance will be conducted this time.

03 Verify the key developments and policy implementation of the relevant organization of LAZZEN as well as

the supporting evidence for the declarations made in the review report.

04 Through interviews and review of relevant documents understand the key stakeholders of LAZZEN and their

expectations and needs the specific communication channels between the two parties and how LAZZEN

responds to the expectations and needs of the stakeholders.

135 1362025 Environmental Social and Governance Report

05 Select the environmental social and governance information in this report perform an analytical assurance

procedure on the information assess its overall performance and verify its consistency with the information Assurance conclusions

disclosed in the report.

06 Verify the process management related to inclusion substance responsiveness and impact in the report and

Based on the information provided by LAZZEN and sampling tests there are no material misstatements in

its associated AA1000 to confirm the suitability of this statement. LAZZEN's ESG report.Sample and examine the supporting evidence for the reliability and quality of the data related to the selected The detailed review results regarding the inclusion substance responsiveness and impact principles included in 07

specific performance information. AA1000AS v3 are as follows:

08 Recalculate and validate the selected specific performance information.

09 Carry out other procedures that the Bohan Sustainability Center deems necessary.

Principles Evaluation

The report reflects that LAZZEN has established a systematic stakeholder engagement

mechanism identified key stakeholder groups and continuously collected their expectations

Independence and assurance capabilities Inclusiveness and concerns through diversified communication channels such as regular communication information disclosure and special exchanges. The relevant results have been incorporated

into the company's ESG management and the process of identifying important topics and are

Bohan Sustainability Center and LAZZEN are completely independent organizations of each other and there is no responded to in the report.business relationship between the two parties that would lead to conflicts of interest; The Bohan Sustainability

Center's assurance team independently carried out this assurance; LAZZEN has established a mechanism for identifying and evaluating critical ESG topics through

The Bohan Sustainability Center's assurance team is composed of experienced ESG experts in the industry. The Substantive a systematic process and assesses and ranks them based on two dimensions: financial

relevant personnel have received professional training in sustained-related standards such as GRI standards issued importance and environmental and social impact importance forming a list of critical topics

by the Global Reporting Initiative AA1000AS v3 ISO 14001 ISO 14064 EcoVadis Global Supply Chain Rating and and disclosing it in the report.are qualified for sustainability assurance services of the Bohan Sustainability Center. All have the ability to carry

out assurances. LAZZEN has established a systematic response mechanism for the material topics of concern

Responsiveness to stakeholders responds by formulating relevant policies management systems and specific action measures and discloses the relevant progress and achievements in reports

demonstrating a management closed loop of continuous improvement.LAZZEN has established a mechanism for identifying assessing and managing the impact

Limitations of key ESG topics. By setting relevant performance indicators the company monitors and

Impactful quantifies environmental and social impacts and discloses them in its reports. At the same time the company is gradually refining its impact management process to support decision

This review used sampling to verify the relevant data and information and therefore did not cover all the optimization and continuous improvement thereby more objectively reflecting its actual

information disclosed in the report. impact on sustainability.Some ESG information has not yet formed a fully unified international standard in terms of data collection

calculation methods and disclosure standards. Different organizations may adopt different methods which may

affect the comparability of the data.Some of the information in the report (such as the identification of materiality topics and stakeholder engagement

results) relies on management judgment and related methods and is somewhat subjective.This review does not cover information outside the reporting period and does not provide any assurance regarding

future predictive information related to it.Assurance Institution: Shanghai Bohan Public Relations Management Consulting Co. LTD.This assurance does not cover supply chain and other third-party data whose completeness and accuracy have not

been verified in this assurance. Assurance date: March 2026

Assurance members: Bohan Sustainability Center Sustainability Assurance Team

137138