2025 Environmental Socialand Governance (ESG) Report

PB 1CONTENTS

01 Message from the Chairman Creating Shared

03 About Estun 04 Value and Advancing Together on a New

07 Responsibility 2025 Pursuing Green Journey

09 Development to Build a Special Focus: Industrial Embodied Intelligence – Ushering in a 03

New Era of Human?Machine Symbiosis Sustainable Future 73 Human Capital Development

94 About This Report 87 Sustainable Supply Chain59 Environmental Management

95 Key Performance Table 91 Shared Social Development61 Addressing Climate Change

97 Index Table 02 Strengthening 66 Resource ManagementGovernance to 68 Pollution Prevention and ControlDrive High-Quality

Development 70 Noise Management

70 Biodiversity Protection

37 Corporate Governance

42 Sustainable Development Management

47 Risk and Compliance Management

Deepening Industry 52 Business Ethics and Anti?Corruption01 Capabilities to 54 Information SecurityUnlock New Quality

Productive Forces

13 Creating Industrial Value

18 R&D Innovation

25 Product Quality and Safety

31 Customer Relationship Management2025 Environmental Socialand Governance (ESG) Report Message from the Chairman

Message from the Chairman

At a time when global industrial transformation intersects with the accelerating momentum of sustainable development Estun is By advancing green and low?carbon development we deliver on our responsibility to shape a sustainable future.forging ahead through innovation and responsibility taking solid strides in a landscape shaped by the convergence of green and

intelligent development. In 2025 we remained committed to our core strategy of “ALL Made By ESTUN” achieving coordinated In response to the challenges of global climate change we have integrated green development into our overall strategy and

improvements in both scale and quality within intelligent manufacturing and contributing to the advancement of China’ s advanced the implementation of our carbon peaking and carbon neutrality goals through a systematic approach. In R&D and

robotics industry toward the high end of the global value chain. Guided by our founding mission we continue to integrate design we integrate green principles across the entire product lifecycle which improves environmental performance from the

sustainability into both innovation and practice empowering industries across sectors to accelerate their transition toward outset and reduces overall environmental impact. In manufacturing we have rolled out distributed rooftop photovoltaic systems

intelligence and low-carbon development. across our three major facilities enabling the use of clean energy to reduce carbon emissions in our operations. In recycling

and reuse we have established a circular reuse system for legacy equipment which significantly reduces resource waste and

By deepening our industrial capabilities we activate new quality productive forces through innovation. electronic waste and enables the development of a new circular economy model for robotics that delivers both economic and

environmental value. Meanwhile we advance green supply chain initiatives and collaborate with partners across the value chain

We firmly believe that technological self-reliance is the foundation of industrial strength. In 2025 we adhered to the dual to create shared green value. Through concrete actions we uphold our commitment to making the world greener and position

principles of “independent control of core technologies” and “application-driven innovation” and advanced a system-level sustainability as a defining feature of intelligent manufacturing.forward R&D strategy which further strengthened our investment in research and innovation. As a result we have built a fully

self-controlled intelligent manufacturing ecosystem. We led major science and technology initiatives under the Ministry of By creating shared value we unite stakeholders and strengthen collective momentum for development.Industry and Information Technology through which we achieved key breakthroughs in industrial automation and industrial

digital platforms. At the same time we adopted a forward-looking approach to expand into AI-powered robotics applications Our growth depends on the dedication of our employees and the trust of our stakeholders. We are committed to building an open

which accelerates the integration of embodied intelligence artificial intelligence and robotics technologies. These efforts and inclusive workplace where we strengthen career development pathways and talent development systems to enable shared

enable us to provide solutions that support the flexible intelligent and green transformation of industries. growth between employees and the Company. Guided by our people-oriented philosophy we have established a dedicated Love

Fund to support those in need and enhanced our compensation and benefits framework so that those who strive can share in

By enhancing governance effectiveness we ensure high?quality development through strong and standardized practices. the fruits of development. At the societal level we take “technology leading industry and education empowering the future”as our responsibility. We actively promote the integration of industry and education by developing a diversified “robotics +We continue to refine our corporate governance framework and strengthen our risk management and anti-corruption systems education” ecosystem which converts our technological advantages into educational resources and contributes to both industrial

which support the effective functioning of the Board-level ESG Committee. We embed sustainability across all operational upgrading and talent cultivation. Meanwhile we continue to support public welfare and charitable initiatives including targeted

processes establishing a more structured and consistent ESG management approach that creates long-term value for both procurement programs that advance rural revitalization as part of our commitment to corporate citizenship.shareholders and stakeholders. In 2025 ESTUN received an S&P Global ESG Score of 47 placing it within the top 15% of the

global IEQ Machinery and Electrical Equipment industry. The Company also achieved an AAA ESG rating from CNI Index and AA Looking ahead Estun will strive to lead in the global era of intelligent manufacturing with confidence and ambition. We will

ratings from both Sino-Securities Index and Wind ESG. Furthermore the Company were included in several ESG recognitions continue to embrace the momentum of global intelligent manufacturing and integrate sustainability deeply into the development

such as Wind’ s Top 100 ESG Best Practices of Chinese Listed Companies 2025 (Small and Mid-cap) Sino-Securities Index’ s of the industrial ecosystem with the aim of building a globally recognized Chinese benchmark brand in intelligent manufacturing.

2025 Top 50 A-Share Listed Companies in Environmental (E) Best Practices and 2025 Top 30 Green & Low-Carbon Pioneers We will continue to grow with our employees create value with our customers thrive with our partners and advance together

among A-Share Listed Companies. These achievements demonstrate our unwavering commitment to sustainability and high- with the industry. Working hand in hand with global partners we will move forward with conviction on the path of sustainable

quality growth. development and jointly create a new era of intelligent manufacturing that is more efficient more intelligent safer and more

sustainable.Wu Bo

Chairman of Estun Automation Co. Ltd.

01 022025 Environmental Socialand Governance (ESG) Report About Estun

About Estun

Estun (Stock Codes: 002747.SZ 02715.HK) was founded in 1993. Guided by its corporate philosophy of openness innovation dedication and Core Business

shared growth the Company remains committed to the independent development of core technologies. Headquartered in China and leveraging

global talent Estun delivers high-quality products and intelligent turnkey solutions to customers worldwide advancing the global recognition of

Chinese intelligent manufacturing. The Company remains committed to its “All Made By ESTUN” full industry chain strategy and has built a fully

self-developed and controllable intelligent manufacturing ecosystem. According to the latest data from MIR DATABANK Estun ranked first in

industrial robot shipments in the Chinese market in 2025 including both domestic and international brands. This marks the eighth consecutive

year that the Company has ranked first among domestic industrial robot brands in terms of shipments positioning it as a key driver of sustained

growth in China’ s industrial robotics market.Industrial Automation Products

Corporate Culture Estun’ s proprietary motion control technology is delivered through the TRIO and Estun brands. Its product portfolio includes HMIs CNC

systems motion controllers PLCs AC servo systems (50W-200kW) encoders and a comprehensive range of automation components.Covering the information control drive and execution layers the Company provides integrated intelligent control solutions—combining

TRIO + ESTUN—for sectors such as electronics manufacturing semiconductors lithium batteries packaging textiles and machine tools.Vision Core

& Values Slogan

Mission

Enjoy your life from Open For a better life ！

automation: Innovation Always·Doing·Better

Smarter Manufacturing

Striving

Greater Quality

Growing Together Industrial Robots & Intelligent

Better Life Manufacturing Solutions

Greener World! Leveraging its core robotics technology Estun offers 96 industrial robot models with load capacities ranging from 3 kg to 1200 kg. The

product lineup includes SCARA robots general-purpose articulated robots and specialized models for high-protection cleanroom

explosion-proof bending palletizing welding and stamping applications. Supported by dozens of mature process software packages

these solutions are widely deployed in automotive PV lithium batteries automotive components electronics manufacturing construction

machinery and offshore and marine equipment helping industry leaders build lighthouse factories.Digital Products & Digital Services

Estun provides industrial software and digital platforms covering the full solution lifecycle from production line design and validation

to integration delivery and operations and maintenance services. The Company has developed platforms including the E-Noesis cloud

platform and the E-Care remote operation and maintenance platform. These deliver digital capabilities such as process quality inspection

and optimization fault early warning analysis remote maintenance and data integration enabling transparency into equipment

parameters process data capacity information and quality metrics to strengthen customers’ digital competitiveness.

0303 042025 Environmental Socialand Governance (ESG) Report About Estun

Business Regional Distribution

GLOBAL BASE

Global Bases

1334

Nanjing China 2

*Estun Automation Headquarters

Global Service Points Robot Manufacturing Base

*Estun Automation Motion

75 Control System Manufacturing Base*Estun Machining Manufacturing

Base

*Estun Automation Intelligent

Manufacturing Base

Estun Automation (Hubei) Manufacturing Base

Southwest China Regional Headquarters (Chengdu) London UK Haiger Germany Kronach Germany

Central China Regional Headquarters (Changsha) Trio Motion Control Cloos Welding Robot M.A.i Intelligent Systems

Southern China Regional Headquarters (Foshan) Base in the UK Manufacturing Base Engineering Manufacturing

in Germany Base in Germany

Global Service Network (INTERNATIONALIZATION)

1 China 2 Asia

Pune India: Trio Indian Subsidiary/Cloos Indian Subsidiary

Eastern China Southern China Southeast China

Kuala Lumpur Malaysia: Malaysian Subsidiary

Headquarters in Shunde Service

Estun Automation Headquarters Estun Automation Motion Control Estun Machining Manufacturing Base Nanjing Center

Robot Manufacturing Base System Manufacturing Base 3 Europe

Wuxi Office Dongguan Office Hangzhou Office

Changzhou Office Shenzhen Office Ningbo Office London UK: Trio Headquarters

Staffordshire UK: Cloos UK Subsidiary

Suzhou Office Foshan Office Wenzhou Office

Milan Italy: European R&D Center

Shanghai Office Xiamen Office Kronach Germany: M.A.i. Headquarters

Haiger Germany: Cloos Headquarters

Central China Northern China Western China Other Cloos subsidiaries in Europe:

Belgium the Netherlands Austria Spain Turkey Czech

Estun Automation Intelligent Southern China Regional Southwest China Regional Central China Regional Changsha Service Tianjin Service Chengdu Service Republic and Hungary

Manufacturing Base Headquarters(Foshan) Headquarters(Chengdu) Headquarters(Changsha) Center Center Center

Wuhan Office Jinan Office Chongqing Office

4 America

Zhengzhou Office Qingdao Office

Pennsylvania USA: Trio North American Subsidiary

Illinois USA: Cloos North American Subsidiary

Northeast China

Mexico: Cloos Mexican Subsidiary

Shenyang Office Brazil: Cloos Brazilian Subsidiary

Cloos Welding Robot M.A.i. Intelligent Systems

Estun Automation (Hubei) Trio Motion Control Base in Manufacturing Base in Engineering Manufacturing Base

Manufacturing Base the UK Germany in Germany

05 062025 Environmental Socialand Governance (ESG) Report Responsibility 2025

Responsibility 2025

Awards & Recognitions

Deepening Industry Capabilities to Unlock New Quality Productive Forces

R&D Total granted patents and First-pass yield upon In-process Customer satisfaction

investment software copyrights unpacking inspection yield score National Enterprise Compliant National Advanced Collective 2025 Advanced-Level

RMB 476 million 1075 99.78 94.83 91.4 with Industrial Robot Industry in Industry and Information Smart Factory in Jiangsu % %

Specification Technology Systems Province

Total R&D personnel up up up up Ministry of Industry and Information Ministry of Human Resources and Department of Industry and Information

968 5.91 0.09 0.75 1.64 Technology Social Security; Ministry of Industry and Technology of Jiangsu Province% Information Technology

year-on-year percentage points percentage points points

year-on-year year-on-year year-on-year

Industrial Robot Top 50 Leading Chinese Benchmark Enterprise in

High-End Application Robotics Enterprises Comprehensive Layout of Industrial

Strengthening Governance to Drive High-Quality Development Award of the Year Embodied Intelligence

2025 6th China Robotics Industry 2025 6th China Robotics Industry 2025 GGII Golden Globe Award

Annual Conference Annual Conference

Operating revenue Total tax contribution Special audits on business ethics and anti-corruption

RMB 4.89 billion RMB 87.76 million 3

Outstanding Embodied Most Influential Innovative

Intelligence Enterprise Enterprise Brand Technology Award

of the Year of 2025 of 2025

Pursuing Green Development to Build a Sustainable Future GuruClub Gold Award CIAA25 Summit Forum CIAA25 Summit Forum

Innovative Product Brand Influence Enterprise Outstanding Domestic Industrial

Investment in environmental protection GHG emission intensity Water withdrawal intensity

tonnes of CO equivalent/ of the Year of the Year Robot Brand

RMB 1.98 2million 1.98 RMB 1 million revenue 32.40 tonnes/RMB 1 million revenue

OFweek Cup 2024 OFweek Cup 2024 imrobotic.com

Creating Shared Value and Advancing Together on a New Journey

Total hours of online employee training Investment in production safety Total charitable donations

73224.98 hours RMB 7.04 million RMB 661500

0707 08082025 Environmental Socialand Governance (ESG) Report Special Focus

Special Industrial Embodied Intelligence – Ushering in a Collaborative Leadership Charting a New Blueprint for the Embodied Intelligence Industry

Focus New Era of Human-Machine Symbiosis Estun believes that industrial development thrives on collaboration and grows through symbiosis. The Company actively brings together resources

across the industrial chain driving and participating in industry exchanges technology standard development and collaborative R&D in embodied

intelligence. Leveraging its technological strengths and industry experience Estun is helping China’ s embodied intelligence industry accelerate

In 2025 “cultivating future industries such as embodied intelligence” was included in China’s Government Work Report for the first time marking

its transition from technological breakthroughs to large-scale applications supporting the maturation and growth of the domestic supply chain.its elevation to a national strategic priority. As a core domain at the intersection of AI and robotics embodied intelligence is emerging as a key

driver reshaping the global industrial landscape. As a leading enterprise in China’ s automation and robotics sectors Estun has strategically

positioned itself at the forefront of embodied intelligence leveraging its technological capabilities to support the manufacturing industry’ s

transition toward flexibility intelligence and sustainability. On June 28 2025 the Jiangsu Provincial Embodied

Intelligence Robot Industry Alliance was inaugurated

accompanied by an Industry Innovation and Development

Cooperation Conference in Nanjing. Estun serves as the

Strategic Definition A New Paradigm Integrating AI and Robotics rotating chair of the inaugural alliance helping accelerate the

industrialization of embodied intelligence technologies.Establishment of Jiangsu Provincial Embodied Intelligence Robot Industry Alliance

As AI moves from virtual algorithms into

the physical world embodied intelligence is In June 2025 Estun co-organized the Embodied Intelligence In the 2025 GGII Golden Globe Award selection

redefining the boundaries of human-machine Technology Development Academic Forum helping build Estun was named acollaboration through a closed-loop logic of a collaborative innovation platform connecting industry “Benchmark Enterprise in Comprehensive Layout of“perception – decision – action.” At a time academia research and application and fostering deep Industrial Embodied Intelligence.”

when industries are navigating the depths of integration between technological breakthroughs and

intelligent transformation Estun—drawing practical scenario implementation.In the 2025 GuruClub Gold Award annual excellence selection

on i ts deep understanding of industr ia l Estun received the the Embodied Intelligence Technology Development Academic Forumautomation—has redefined the paradigm for “Outstanding Embodied Intelligence Enterprise ofintegrating AI and robotics. the Year” honor. Estun participated in Jiangsu Province’ s 2025 major science and technology projects and cutting-edge technology research programs

driving breakthroughs in key embodied intelligence technologies.Leveraging its fully self-developed industrial ecosystem spanning “core On May 15 2025 Estun Codroid participated in the inaugural national standard launch meeting for humanoid robots contributingcomponents – complete robots – digital systems” Estun has built a practical insights from robotics R&D to help refine the standard framework and promote standardization in the humanoid robot industry.comprehensive product portfolio covering motors drives and controllers

anchored in its core strength in motion control. This provides industrial

robots with a high-performance highly reliable “torso” and “neural system.”

Building on this foundation the Company has achieved a balance between Shaping the Future From Industrial Sites to Broader Human?Machine Symbiosis

high-level task planning scene understanding and decision-making (the

“brain” ) and real-time precise motion control (the “cerebellum” ) through From precise execution on the factory floor to seamless human-machine interaction Estun is building a next-generation automation ecosystem

a software platform architecture designed for synergy between the two. infused with AI. This ecosystem is built on intelligent controllers edge computing gateways and industrial automation software packagesThrough data-driven skill learning (reinforcement learning and imitation leveraging high-precision industrial robot bodies and expanding application boundaries through models such as “robots + digital simulationlearning) and Sim2Real digital twin technology robots can acquire skills platforms.” At the AI and digital scenario layer the Company integrates AI vision AR/VR and digital twin technologies. It has independently

in virtual environments and execute them with precision in the physical Estun Codroid officially launches its second-generation developed the Estun-Chat AI language model and the CoDroid multimodal large model for industrial applications enabling natural language

world significantly reducing deployment complexity. By embedding AI humanoid robot Codroid 02 interaction and complex environment understanding. By combining industrial software with cloud services and exploring emerging technologies

such as humanoid robots and dexterous hands the Company is driving automation systems toward autonomous perception intelligent

across robot perception decision-making and execution Estun enables robots to self-learn self-decide and execute in complex unstructured

decision-making and flexible execution.environments providing an evolvable and reliable technology foundation for industrial intelligence and advancing Chinese manufacturing toward Automation Scenarios Robotics Scenarios AI + Digital Scenarios

a new paradigm of human-machine symbiosis.Estun has developed a control system architecture designed for AI applications characterized by strong openness compatibility and scalability Looking ahead Estun will continue to advance

providing robust support for industrial intelligence scenarios. Drawing on extensive experience and data from industrial robot applications the embodied intelligence technologies increase

Company has integrated AI technologies in a layered manner. Its next-generation controller incorporates dedicated interface technology that R&D investment in “AI + robotics” and focus

seamlessly connects with AI control enabling the underlying architecture to interface with higher-level embodied intelligence systems. on practical application value and concrete

deployment scenarios for intelligent robotics.Estun’ s solutions for teaching-free welding teaching-free grinding and vision-guided random picking integrate motion control machine vision The Company will also drive interdisciplinary

and AI programming. These solutions enable robots that are easy to deploy user-friendly and capable of intelligent operation without the need research at the convergence of robotics AI big

for teaching. In application areas with low robot density—such as steel structure welding curved surface grinding and gluing and laser welding— data and other cutting-edge fields.these robots can be rapidly deployed across scenarios expanding market demand.

09 102025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing

Unlock New Quality Productive Forces Drive High-Quality Development to Build a Sustainable Future Together on a New Journey

1 Deepening Industry

Capabilities to

Unlock New Quality

Productive Forces

Contributing to UN SDGs

11 122025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing

Unlock New Quality Productive Forces Drive High-Quality Development to Build a Sustainable Future Together on a New Journey

Creating Industrial Value

Estun remains committed to its “All Made By ESTUN” full industry chain

strategy and has built a fully self-developed and controllable intelligent Raw Material Selection Manufacturingmanufacturing ecosystem. The Company enables the intell igent Recognized as a “Nationaltransformation of diverse industries enhancing productivity safety and Advanced Collective in Industry and * Select lightweight eco-friendly alloys to replace traditional heavy * Reduce energy consumption through intelligent productionreliability in industrial environments—making manufacturing smarter Information Technology Systems” steel reducing total material consumption and equipment operating equipment energy-saving retrofits precision control

quality more consistent life more fulfilling and the world greener. energy without compromising structural strength. improvements efficient energy utilization and the development

Ministry of Human Resources and * Prioritize recycled metal materials—such as recycled aluminum of a green energy supply system.Social Security; Ministry of Industry and

alloys and recovered stainless steel—for non-load-bearing * Emphasize clean production by promoting green process

Information Technology

structural components (e.g. module brackets and PACK frames) in technologies that reduce material loss and minimize emissions

lithium-battery module and PACK smart production lines. Establish of solid waste wastewater and exhaust gases.purity testing and adaptation verification mechanisms to ensure For details refer to the “Addressing Climate Change” and

Enabling Low-Carbon Transition mechanical properties meet assembly requirements. "Pollution Prevention and Control" sections.Against the backdrop of global green and low-carbon transformation Estun pursues its corporate mission of “making the world greener” by

positioning clean technology innovation as a core strategic priority. The Company develops integrated low-carbon solutions that combine

automation digitalization and intelligence actively supporting the intelligent upgrade of the new energy sector and contributing to the

society’ s low-carbon transition.Green Product Design Use Storage / Transportation

* Integrate intelligent energy consumption management systems to * Implement “reusable + degradable” green packaging solutions.Committed to green development Estun designs its products in accordance with the General Principle and Requirements of Eco-design for enable adaptive load control for core production equipment (e.g. Use recycled paper-based cushioning as core packaging

Products (GB/T 24256-2009). The Company integrates green ecological and circular principles across the entire product lifecycle—from welders ovens testing equipment) automatically switching to materials to replace disposable foam plastic film and other

design and production to use and end-of-life—enhancing environmental performance at every stage. low-power mode during standby and reducing energy consumption non-biodegradable materials. Incorporate damage-prevention

by over 60%. designs using cushioning materials such as honeycomb

* Adopt designs that improve heat flex and chemical corrosion paperboard and degradable EVA foam to reduce module

Stage of Product resistance without compromising customer requirements damage during transport and minimize resource waste.Lifecycle extending product life in harsh environments. Promote modular * Adopt “containerization + lightweight” transport solutions. Use

and easy-to-disassemble designs to improve repairability and parts foldable containers and standard pallets for unitized transport

compatibility enabling localized faults to be addressed through to increase transport capacity per unit reduce trips and lower

precise component replacement rather than complete unit disposal carbon emissions.Technology R&D Product Design thereby effectively reducing scrappage rates and extending product * Select new energy transport vehicles—such as electric trucks

lifespan. and hydrogen fuel cell logistics vehicles—to replace traditional

* Establish a core technology system encompassing lightweight * Promote “modular + lightweight” design to reduce redundant fuel-powered vehicles supported by charging stations and

robot body design servo common-bus technology (enabling structures and material consumption. Use standardized hydrogen refueling infrastructure to reduce exhaust emissions.multiple servo drives to share a communication bus and power interfaces for core components to enhance disassembly and

supply) motor weight reduction and heat dissipation optimization reuse rates.* Adopt “modular disassembly + standardized interfaces” structures. Use snap?fit or quick?release connections for core

brake dual-voltage control strategies (using two voltage levels * Optimize equipment layout and energy paths to shorten

components instead of welding. Incorporate recyclable labels centralized wiring and separable connector designs to

to ensure precise and safe stopping) servo software control material transport distances and reduce energy consumption

simplify disassembly improve recycling efficiency and reduce material waste.algorithms controller software sleep functions and four- of powered equipment such as AGVs and conveyor lines.* Develop a tiered recycling program to channel high?value components for testing repair and reuse while directing

quadrant controllable rectification at the power supply end * Design dedicated waste liquid and material collection End?of?Life metal and plastic parts to specialized partners for material regeneration.(enabling bidirectional energy flow for driving and regenerative channels to prevent pollutant leakage during production and

* Establish a dedicated battery?related waste recycling mechanism for lithium?battery module and PACK production

applications). reduce environmental treatment costs.lines. Design sealed collection devices for hazardous waste—including spent cells electrolytes and contaminated

auxiliary materials—to prevent leakage during recycling.

13 142025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing

Unlock New Quality Productive Forces Drive High-Quality Development to Build a Sustainable Future Together on a New Journey

Case Creating a Circular Economy Model for Remanufactured Robots

To address the cost and environmental pressures associated with shortened equipment replacement cycles in manufacturing Estun has The Company provides solutions covering the full range * Support 2000 GW/h of global PV cell

launched an official robot remanufacturing service. Leveraging its original manufacturer technical expertise the Company operates a of manufacturing scenarios from silicon wafers and cells manufacturing

closed-loop model of “assessment – recycling – remanufacturing – certification – resale.” Recovered equipment is fully disassembled through to modules. Robots are widely used in processes * Over 15000 Estun PV-specific robots

rigorously tested and fitted with upgraded components and control systems. Each remanufactured robot undergoes a 24-hour continuous PV Industry such as silicon rod handling cassette handling cell operate 24/7

test before receiving official remanufacturing certification. This model helps customers optimize procurement costs while significantly string layout and module framing. High-value products

* Deeply involved in the construction of the

reducing resource waste and electronic waste through equipment reuse establishing a new circular economy paradigm for robotics that are customized for challenging processes achieving

world’s first PV lighthouse factory

delivers both economic and environmental benefits. automation coverage across the entire PV value chain.* Estun servo products are featured on CATL’s

The Company provides intelligent solutions across the recommended component brand list

Improving Manufacturing Energy Efficiency entire industrial chain—from electrode processing (die

Lithium Battery * Built ultra?high?speed lithium battery

cutting winding) to cell assembly (stacking wrapping) and

Estun develops tailored solutions for specific market segments deeply integrating automation and robotics into industrial ecosystems. The Industry production lines globallymodule/PACK (assembly positioning)—helping customers

Company builds high-precision highly flexible intelligent production systems for sectors including metal processing automotive electronics build lean efficient and flexible production lines. * Participated in the construction of 3 lithium

welding rail transportation and aerospace manufacturing enhancing production efficiency while ensuring quality consistency. Estun has battery lighthouse factories

contributed to the construction of the world’s first PV lighthouse factory the world’s first lighthouse factory in the coal mining equipment industry

three lithium battery lighthouse factories and one construction machinery lighthouse factory driving efficiency gains and quality improvements

through smart manufacturing.Case Pioneering “Magnetic Levitation + Flexible Chain” Technology to Optimize Large?Surface Liquid Cooling Plate

Case Supporting CRRC in Building a “Lights?out Factory” to Achieve Breakthroughs in Both Efficiency and Quality Assembly Efficiency for Lithium Batterie

To address the challenges of low transport efficiency and complex changeovers in traditional large-surface liquid cooling plate assembly lines

To support the intelligent upgrade of rail transportation equipment Estun built “lights-out factory” production lines for three CRRC

Estun pioneered the integration of magnetic levitation and flexible chain technologies successfully implementing this solution in a battery

subsidiaries—Puzhen Dalian and Zhuzhou—covering digital assembly welding logistics inspection and final rollout. Using flexible traveling

industry leader’s large-surface liquid cooling plate assembly project. For cooling plate transport magnetic levitation technology was introduced

fixtures and automated warehouse transfer systems the lines enable zero-changeover-time model switching transforming the traditional

to leverage its contactless low-friction advantages enabling high-speed transfer and precise positioning. For cell transfer a flexible conveyor

5- to 10-minute changeover model and precisely meeting the cycle time requirements of the new facilities. In the welding process rapid

line was adopted to accommodate reject handling processes. By reorganizing production processes and optimizing equipment layout the line

deep-penetration welding achieves a 4 mm penetration depth while tandem dual-wire welding delivers a deposition rate of up to 25 kg/h

footprint was reduced by 50% assembly efficiency reached 45 PPM and one-key model changeovers can be completed within 30 minutes

significantly boosting productivity. The welding process software is compatible with multiple welding tool brands seamlessly integrates with

supporting the full product range. Additionally stacking stations and recipe systems were optimized reducing equipment failure rates from 2.5%

existing digital production lines and MES systems and enables data traceability and quality monitoring. Together these capabilities create an

to 1.5% and increasing product yield from 95% to 99% delivering a significant improvement in product yield.unmanned traceable intelligent welding workshop establishing a benchmark for intelligent manufacturing in the rail transportation industry.Enabling Green Smart Manufacturing in the New Energy Sector

Accelerating Industrial Digital Transformation

As the global energy transition accelerates China is emerging as a key driver of

this transformation through its advanced manufacturing capabilities and intelligent To address efficiency bottlenecks in traditional industrial maintenance and fully unlock the value of equipment data Estun has developed a

technologies. Estun’s industrial robots and automation solutions play a critical role Scan the QR code to explore comprehensive suite of industrial software and remote operation and maintenance platforms including EstunEditor E-Care E-Noesis E-Chat

across new energy segments including PV traction batteries energy storage and robotics applications in the and E-Data. These solutions cover the full spectrum of robot programming remote maintenance cloud platform management intelligent

automotive helping the industry move toward greater efficiency precision and new energy sector interaction and digital twin applications. They help enterprises reduce operational and trial-and-error costs enhance production transparency and

sustainability. controllability and accelerate the transition to Industry 4.0 and smart manufacturing.Case E?Noesis Platform Enables Lean Production in Welding Shops

Traditional welding shop information systems are constrained by data silos and manual monitoring resulting in limited real-time visibility

into welding parameters delayed defect detection slow fault response extended downtime and significant material waste—making quality

traceability and process optimization challenging. The E-Noesis platform addresses these challenges by monitoring robot performance and

production line efficiency in real time optimizing scheduling and material tracking. Combined with digital twins it enables remote visualization of

the workshop. Real-time alerts and trend analysis identify potential equipment issues early supporting predictive maintenance and significantly

reducing unplanned downtime. This helps customers achieve lean production and continuous improvement. As of the end of the reporting

period 11445 industrial robots had been connected to the Company’ s E-Noesis platform.

1515 162025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing

Unlock New Quality Productive Forces Drive High-Quality Development to Build a Sustainable Future Together on a New Journey

Enhancing Intrinsic Safety Through Automation

EstunEditor & AutoList Simulation and Offline Programming Suite

The suite offers robot parameter configuration intelligent programming prompts Estun is committed to using technology to enable safer and more efficient industrial development. The Company actively promotes the concept

virtual debugging and graphical trajectory editing. Editor supports real-time motion of replacing humans with machines deploying industrial robots to take over repetitive high-intensity and hazardous manual tasks. This approach

posture monitoring and collision detection; AutoList specializes in sheet metal bending reduces operational safety risks at the source alleviates worker fatigue and supports safer more humane production methods.optimization automatically generating optimal gripping and flipping processes to improve

equipment utilization and bending efficiency for high-mix low-volume production. Case AI Intelligent Loading System: Enhancing Intrinsic Safety Through Automation

Traditional manual loading operations present significant safety risks and high labor

intensity with over 2000 reported incidents annually nationwide representing a

Estun RCS Robot Virtual Control System major bottleneck for manufacturing upgrading. To fundamentally reduce safety risks

Estun partnered with collaborators to address the industry challenge of achieving

The system is deeply integrated with Siemens PDPS incorporating the Estun

efficient collaboration between robots and 3D LiDAR in complex environments

kinematics kernel for high-precision digital twin simulation. It supports spot welding

resulting in a fully integrated AI intelligent loading system. The system is built around

process commands and industrial-grade cycle time simulation and automatically

a self-developed palletizing robot and integrates 3D perception AI recognition

generates robot programs providing precise offline programming solutions for

and reinforcement learning. LiDAR collects environmental data AI models analyze

applications such as automotive manufacturing.vehicle and cargo characteristics and reinforcement learning optimizes dynamic

obstacle avoidance strategies. This enables full-chain autonomous decision-making—

from vehicle recognition and motion control to loading operations. The system has

E-Care Intelligent Remote Operation and Maintenance Platform

successfully achieved a complete closed-loop application for domestic robots in intelligent loading scenarios fully replacing high-risk manual

The platform enables cloud connectivity for robots through a zero-cost networking loading work. This significantly reduces worker labor intensity and operational safety risks strengthening intrinsic safety at the source.solution eliminating reliance on hardware gateways. It supports remote fault diagnosis

real-time status monitoring and direct data integration with PLC and MES systems.Combined with multi-layer encryption protocols it ensures end-to-end data security

significantly reducing downtime. The platform has increased fault resolution efficiency R&D Innovation

by over 60% and reduced unplanned downtime losses by more than 30%.Estun pursues an innovation-driven R&D strategy guided by independent core technologies and application-driven innovation. The Company

continuously increases investment in technology R&D and innovation accelerates the translation of scientific and technological achievements and

E-Noesis Industrial Internet Platform drives product and technology innovation to unlock new engines for high-quality development.The platform delivers enterprise-wide equipment management permanent data

storage and high-speed analytics. It covers material scheduling process management Governance

digital twin dashboards and integrates AI customer service and programming

The Company has established a comprehensive and efficient R&D innovation governance system supported by a forward-looking technology

assistants enabling intelligent production decisions and full-process traceability.strategy that enables long-term growth and technological leadership. The internal R&D team is led by the Product Competitiveness Center which

oversees the overall technology development strategy makes key technology decisions and drives breakthroughs in core technologies and

the allocation of innovation resources. The Center comprises three core departments each with distinct responsibilities. The Innovation Center

manages the Company’ s medium- to long-term technology roadmap and drives forward-looking enhancement of core capabilities. The R&D

E-Data Visual Decision-Making Center focuses on short- to medium-term technology planning and execution to ensure continuous improvement in product competitiveness.The Product Lines teams are responsible for product-level innovation and development—particularly in industrial robots motion control and AI

The solution leverages data dashboards and digital twins to enable digital visualized

applications—ensuring close alignment with market demands and operational execution.and transparent monitoring of complex production scenarios supporting efficient

operational decisions with precise data. Virtual simulation technology models the entire For intellectual property (IP) management the Company operates a framework characterized by item-specific responsibility and coordinated

production process helping enterprises rapidly build industrial metaverse applications. management. The Operations Management Department of the Competitiveness Center serves as the central management unit coordinating

the planning maintenance risk prevention and utilization of all IP categories including patents software copyrights and trade secrets. The

Administration Department is responsible for trademark management including registration maintenance standardized use and market

monitoring. Together they form an IP protection system that spans the entire value chain.E-Chat Small AI Agent

The Company has established and consistently refines internal policies such as the R&D Management Standards and the Intellectual Property

The agent integrates dual core functions: AI customer service and AI-assisted Management System to standardize R&D and IP management ensuring that all R&D activities proceed in an orderly manner. During the reporting

programming. It provides 24/7 intelligent service accurately interpreting product period the Company enhanced its system for identifying and managing IP infringement risks. New specialized policies were introduced

knowledge and responding quickly to inquiries. The system can also intelligently including the Trademark Management the Intellectual Property Validity Monitoring the Intellectual Property Infringement Management and the

generate robot program code based on user requirements delivering a professional Infringement Identification and Remediation Procedure. A full-channel infringement monitoring system an internal-external linkage mechanism

efficient and convenient intelligent interaction experience. for tracking infringement clues and a case-file management process were established. This has created an integrated protection network

covering prevention monitoring and response providing a solid foundation for technological innovation and brand value enhancement.

17 182025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing

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Strategy and Management Approach

Innovation Talent Development

Forward R&D System Estun is focused on building a highly skilled dynamic R&D workforce to sustain technological development and innovation breakthroughs. With

Guided by its strategic R&D objective of “moving from following to surpassing” Estun has transformed its traditional R&D approach by advancing a Nanjing as its R&D hub the Company integrates global resources from innovation centers in Germany the United Kingdom and the United States

system-level forward R&D strategy. The Company has built a full-chain R&D system linking customer needs product requirements and technical to build a world-class R&D team. As of the end of the reporting period the Company employed 968 R&D professionals of whom 265 hold a

solutions which enables deeper alignment between technology development and market demand at the source and provides strong support for master’s degree or higher.the independent and controllable development of China's domestic robotics industry chain. To sustain R&D vitality and innovation capacity the Company leverages its innovation incentive system—including the Intellectual Property Reward

Management Measures—to build a long-term mechanism for cultivating and retaining research talent. In 2025 the Company further detailed and

Deepening IPD Transformation implemented its incentive mechanisms. This included introducing differentiated patent rewards tiered based on high-value versus general-value

patents covering diverse achievements such as inventions software copyrights and trade secrets; establishing an inventor contribution

Building on the achievements of its Integrated Product Development (IPD) transformation in 2024 the Company continued to optimize and refine review mechanism which clarifies qualification criteria and distribution rules to ensure fairness and transparency; and including patent review

its IPD initiatives. It developed the Estun IPD Framework Map (V2.0-2025 Edition) which outlines the transformation roadmap and improvement committee members in the incentive structure encouraging technical experts to participate in patent quality control. Through precise incentives

targets for 2025 and restructured the IPD process system to drive full implementation. standardized management and fair distribution the Company has mobilized the innovation enthusiasm of its R&D personnel continuously

improving IP quality and strengthening its core technological competitiveness.IPD Process System 2025 Transformation Initiatives

* Organization & Personnel Appointments: The Company published the Open Innovation Ecosystem

operating mechanisms and personnel appointments for the Integrated Estun consistently strengthens its R&D innovation network actively engaging in innovation collaboration with customers suppliers partners

Portfolio Management Team (IPMT) the Integrated Technology Management research institutions and universities. The Company has developed a diversified open R&D model that stimulates innovation vitality.Team (ITMT) and the Special Product Development Team (SPDT) on its

OA system. This promoted the implementation of a cross-domain matrix

organization and further strengthened the operational management * As a high-tech enterprise the Company has established 1 National Enterprise Postdoctoral Research

responsibilities of SPDTs guiding functional departments to focus on Workstation 1 Provincial Enterprise Technology Center 3 Provincial Engineering Technology Centers 1 Provincial

resource assurance and capability building. Key Laboratory 2 Provincial Enterprise Graduate Workstations and 1 Provincial Industrial Design Center

These are core value?creation processes that * Performance Target Breakdown: The Company linked the KPIs of core Technology supporting numerous research projects. During the reporting period the Company led 3 key national science

belong to the Company's primary operational

SPDT representatives to product line operating results. This embedded Collaboration and technology projects under the Ministry of Industry and Information Technology and a “Two Priorities” project

functions. They are customer?facing

IPD principles within business departments and achieved an interlocking under the National Development and Reform Commission—a program focused on implementing major national

Operating end?to?end and logically structured business operational mechanism between product lines and business units. strategies and building security capacity in key areas. It also participated in 2 provincial R&D projects leveraging

Processes activities essential for delivering customer

value. * Process System Development: The Company added implementation its strong technological innovation capabilities to contribute to China’s intelligent manufacturing efforts.standards for processes including the Lifecycle Project Process the

Technology Development Process and the Non-Standard Customization

Request Process. These standards cover all typical business activity types The Company actively organizes innovation forums and seminars with university and industry experts to discuss

helping to control project process quality and improve operational efficiency. emerging technology trends. Its senior R&D experts participate in academic conferences industry association

* Enhanced Team Operation Mechanisms: The Company optimized SPDT events and exhibitions to stay abreast of cutting-edge technology developments driving technological innovation

management rules clarifying key requirements for meetings authorization and application commercialization.and review meeting frequency. It also refined the functional support system Innovation * Hosted the Estun 2025 Global Partner Development Summit bringing together over 400 global channel partners for

to drive the implementation of operational activities. Exchanges in-depth discussions on the transformation and sustainable development of the intelligent manufacturing industry.* Participated in the 2025 World Intelligent Manufacturing Conference showcasing innovative products such as

high-performance arc welding and spot welding workstations explosion-proof grinding robots multi-robot

These are processes that support professional * Within the R&D Center the Company established standardized design coordination systems and embodied intelligence robots.capabilities and belong to the Company's and development processes and specialized development specifications

capability?building functions. They are covering the entire workflow. These initiatives systematically improve

specialized and are invoked repeatedly or development efficiency and product quality while consolidating reusable

Enabling intermittently by operating processes focusing * Gerald Mies CEO of Estun Robotics Europe was elected to the Executive Committee of the International team knowledge and experience thereby creating a long-term mechanism

Processes on capability building to enhance operational Federation of Robotics (IFR). In this role he represents Estun and the Chinese robotics industry within the for R&D accumulation and knowledge transfer.efficiency. international robotics community and supports the IFR in serving the industry’ s development.* The Company is deeply involved in industrial ecosystem development serving as the rotating chair of the

Industry

inaugural Jiangsu Provincial Embodied Intelligence Robot Industry Alliance. It co-organized the alliance’ s first

Support

These are foundational public services and * The Company established a Process Owner accountability system to ensure member assembly and the Embodied Intelligence Technology Development Academic Forum. Estun Codroid

infrastructure. They are basic processes that the implementation of transformation initiatives. This system is supported by participated in the development of the first batch of national standards for humanoid robots promoting

exist to ensure the continuous efficient and a suggestion incentive mechanism that encourages frontline employees to standardization and high-quality development in the embodied intelligence industry. (For details refer to the

Supporting low?risk operation of the IPD system. proactively identify and raise process bottlenecks enabling those closest to “Special Focus: Industrial Embodied Intelligence – Ushering in a New Era of Human-Machine Symbiosis” section.)

Processes operational challenges to participate deeply in process optimization.

19 202025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing

Unlock New Quality Productive Forces Drive High-Quality Development to Build a Sustainable Future Together on a New Journey

* The Company has launched the new E-Care robot remote

Leading Technology Breakthroughs operation and maintenance platform integrating IoT and

cloud computing technologies. With an integrated design

Leveraging its advanced IPD R&D system and innovation ecosystem Estun has achieved continuous breakthroughs in robot body structure the platform enables whole-lifecycle operational monitoring

technology motion control and servo technology and industrial digital platform technology. The Company is developing safer products with higher and intelligent remote maintenance for robots. It connects

performance continually redefining intelligent manufacturing. IT and OT data links supporting real-time status monitoring

remote fault diagnosis and direct integration with PLC and

MES systems. The platform addresses challenges such as

Industrial Digital data silos slow fault response escalating downtime losses

* The 5-series servo system incorporates innovative magnetic field modulation technology using motor stator teeth as Platforms and high maintenance costs—improving fault resolution

a magnetic field modulator to create a “fundamental + harmonic” multi-working-wave torque generation mechanism.efficiency by over 60% and reducing unplanned downtime

It also features an industry-first asymmetric stator modulation tooth structure and integrated processing technology.losses by more than 30% helping enterprises achieve

With unchanged volume and material usage system efficiency has increased by 3.1% and torque ripple has been

efficient maintenance.significantly reduced to 0.145%. Under the same output torque the volume and weight of the 5-series servo products

have decreased by 20% providing key technical support for the miniaturization and lightweighting of high-end

equipment.* The Company independently developed the iER.OS robot control system and launched the RoboBase platform focused

on the industrial robot and AI application ecosystem. iER.OS serves as the “intelligent brain” rebuilding the robot

language architecture (Juliet language) and real-time control kernel from the ground up to connect data perception

Industrial EM5G Series High-Quality Servo Motor and control pathways equipping robots with environmental perception and autonomous decision-making capabilities.Automation System Magnetic Field Modulation RoboBase acts as the application ecosystem carrier establishing an open Android-like architecture for the industrial

Technology – Winner of the

sector that supports third-party deep integration and secondary process development promoting the evolution of“2025 Innovative Technology Award robot systems toward a software-defined and ecosystem-co-creation model.in the Motion Control Field” * By integrating large language models multimodal sensors machine vision speech recognition and advanced

at the CIAA25 Summit Forum learning algorithms the Company is applying AI technology across its product portfolio with implementations in

multiple scenarios.Built on 2D and 3D vision and integrated with motion control platforms

* In 2025 the Company launched the first 1.2-ton six-joint heavy-duty robot featuring 100% domestically produced core this solution achieves cross-process data linkage and dynamic optimization

components. Through breakthroughs in dual-motor synchronization control dual-reducer hard synchronization and AI Vision?Based Collaborative through precise positioning intelligent quality inspection and deep vertical

whole-body lightweighting the system overcomes international technology barriers. Its high rigidity and compact Motion Control PlatformAI + Innovation process integration providing comprehensive intelligent support for motion

structure provide strong support for intelligent manufacturing in China’ s aerospace and new energy sectors. Solutions control applications.* Centered on greater openness intelligence reliability and precision the Company has fully upgraded its ER

series with the introduction of the new iER series intelligent industrial robots. Built on the self-developed iER.OS A predictive diagnostics and maintenance system for motion control systems

operating system and Juliet high-level language the software architecture has been restructured to achieve deep AI?Based Predictive powered by AI algorithms captures equipment operation characteristics in

decoupling and intelligent integration of hardware and software. Key outcomes include ultra-high precision across Diagnostics and Maintenance real time predicts potential faults and generates optimal maintenance plans—

the entire workspace and predictive intelligent maintenance upgrades. This has improved absolute precision to significantly improving system stability and lifecycle management efficiency.±0.2 mm reduced control cabinet energy consumption by up to 30% and integrated remote maintenance platform

capabilities delivering an energy-efficient integrated and intelligent solution.Centered on greater openness By learning historical process data and real-time production demands the

intelligence reliability and precision the Company has fully upgraded its ER series with the introduction of the new AI?Based Generative Intelligent platform automatically generates scenario-adapted program code and iterates

iER series intelligent industrial robots. Built on the self-developed iER.OS operating system and Juliet high-level Programming Platform dynamically dramatically reducing manual programming costs and enabling

language the software architecture has been restructured to achieve deep decoupling and intelligent integration flexible efficient production at the motion control execution layer.of hardware and software. Key outcomes include ultra-high precision across the entire workspace and predictive

Industrial Robots intelligent maintenance upgrades. This has improved absolute precision to ±0.2 mm reduced control cabinet energy

consumption by up to 30% and integrated remote maintenance platform capabilities delivering an energy-efficient

integrated and intelligent solution.Intellectual Property Protection

Estun regards intellectual property—including patents software copyrights

trademarks trade secrets and proprietary technologies—as core strategic

assets. The Company has built a comprehensive IP protection framework to

achieve closed-loop management across creation maintenance utilization National Intellectual Property

and protection reducing the risk of unauthorized use or infringement by third Advantage Enterprise

parties. During the reporting period the Company had no legal disputes related

to IP infringement effectively safeguarding operational compliance.

21 222025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing

Unlock New Quality Productive Forces Drive High-Quality Development to Build a Sustainable Future Together on a New Journey

Furthermore the Company strictly adheres to the Industrial Robot Industry Standard Conditions (2024 Edition) the Implementation Measures

* The Company conducted patent portfolio analysis for industrial robots and automation core components developed for the Administration of Industrial Robot Industry Regulatory Conditions (2024 Edition) and other applicable domestic and international laws

a patent strategy implementation plan identified technological gaps and clarified R&D pathways. It deployed patent regulations and technical standards. In its R&D and innovation activities the Company follows scientific research ethics prioritizing user safety

Strengthening combinations from improvement to application across the technology application industry chain implemented and environmental sustainability. It strictly prohibits R&D and business activities that infringe upon fundamental individual rights or harm the public

IP Portfolio necessary design-around strategies and peripheral patent layout and expanded overseas protection based on target interest ensuring that its technologies and products consistently serve sustainable development and social well-being.markets forming a multi-dimensional global patent protection system.Indicators and Targets

* IP protection has been fully integrated into the new product development process. Through system revisions and Estun pursues a long-term vision of achieving business success through technological innovation. The Company maintains a high level of R&D

process reengineering risk control and patent mining are embedded from the outset of R&D shifting IP management investment targeting approximately 10% of operating revenue.from reactive response to proactive involvement at the innovation source.* A professional trademark agency was entrusted to review the Company’ s trademarks and develop an Enterprise R&D investment (RMB 100 million) R&D investment as a percentage Number of R&D personnel R&D personnel as a percentage of

Improving IP of revenue (%) total workforce (%)

Market Analysis and Trademark Layout Report. Trademark monitoring was implemented for the “Estun” “ESTUN”

Management 1201

and “CLOOS” brands in core and related categories with monitoring reports and intervention measures for similar 6 1108 1200

trademarks. 5.03 5.03 1032 968

* Leveraging its information platforms and channel resources the Company retained professional law firms to regularly 5 4.76 1000

monitor online and offline sales of similar products developing protection strategies for infringing products. 796 4.024 800

32.81600

30.83%31.19%28.89%29.68%

* The Company signed legally binding confidentiality and IP 27.53%2 400

ownership agreements with all employees as well as with external

stakeholders such as customers suppliers and partners clearly 1 12.55% 200

%10.35%10.81%9.74%

defining IP protection obligations and enforceable remedies for 9.33

00

breaches.Raising IP 2021 2022 2023 2024 2025

* Three specialized IP training sessions were conducted for R&D

Awareness

personnel with over 150 attendances recorded effectively

enhancing their capabilities in IP creation protection and risk

management. R&D personnel have developed foundational R&D Personnel Structure in 2025

capabilities in patent value assessment risk analysis and high-

quality patent disclosure. R&D personnel with other Intellectual property training R&D personnel academic qualifications aged 41 and above R&D personnel aged 30

195 Academic R&D personnel with 202 Age and under

R&D personnel with Bachelor's degreeStructure Structure 336

master’ s degree or above R&D personnel 508 aged 31-40

Impact Risk and Opportunity Management 265

430

Driven by advancements in sensor technology AI and next-generation control architectures the industrial robot solutions market is evolving

rapidly. Stagnant R&D the emergence of alternative technologies or loss of competitiveness in the market can expose the Company to operational

risks. To address these Estun has established a dynamic cross-functional risk management mechanism. At the R&D innovation management Intellectual Property Performance in 2025

level the Company emphasizes close collaboration among R&D marketing and production departments. It tracks global technology trends and New patent applications New patents granted Total patents granted New software

policy changes in real time to develop and launch new products and solutions. Additionally the Company explores applications of its products copyrights registered

and solutions across various vertical industries to meet evolving customer needs and capture new growth opportunities. Estun focuses on core 87 74 634

technologies such as high-speed high-precision motion control intelligent robot algorithms and industry-specific software deepening its 51

presence in high-growth sectors such as new energy vehicles and semiconductors. By leveraging the demanding technical requirements and 251

domestic substitution opportunities in these fields the Company solidifies its technological leadership. 6 29 8 42

The Company’s ability to maintain a competitive advantage in the industrial robot solutions industry depends significantly on its IP portfolio which Total software

faces risks of challenge invalidation circumvention or misappropriation. During the reporting period the Company established an integrated copyrights held

IP risk management system covering the entire R&D innovation lifecycle. Risk reviews are embedded in R&D processes with mandatory IP risk

28441

assessments at key milestones such as project initiation and pre-market launch. A systematic infringement monitoring and tiered response 52 24

mechanism has been established to enhance risk management capabilities and response efficiency. Through market and network monitoring

Overseas Domestic

technical comparisons and other means the Company consistently monitors the market for potential infringement of its patents trademarks Invention patents Utility model patents Design patents invention patents invention patents

or trade secrets. When infringement clues are identified a 48-hour preliminary assessment and tiered legal response process is initiated with

actions ranging from warning letters to litigation depending on the severity of the infringement.

23 242025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing

Unlock New Quality Productive Forces Drive High-Quality Development to Build a Sustainable Future Together on a New Journey

Full-Process Quality Control

Product Quality and Safety Guided by its corporate mission of achieving quality excellence Estun has built a comprehensive quality control system that spans the entire

product lifecycle covering product quality process quality and personnel capability. The system encompasses five key stages: product

development raw material selection manufacturing sales and service and non-conforming product management enabling systematic quality

Estun believes that quality is the most fundamental element of manufacturing—the lifeblood of products and the soul of a brand. The Company control and continuous improvement.consistently optimizes its product quality management mechanism embedding quality into every aspect of production and operations. It

fosters a culture of craftsmanship to provide customers with reliable safe products.Business Stage Core Management Policies Quality Management Measures

Technology Project

Development Process * Follow the IPD process to identify and reduce quality risks early in development. Product

Use cross-functional technical reviews and reliability design tools such as DFX

Development New Product Development (Design for Excellence) to achieve proactive quality control.Process

* Implement detailed internal supplier quality management procedures including

The Company's high-payload industrial robot series has achieved quality improvement plans and updated agreements requiring suppliers to

an MTBF (Mean Time Between Failures) of 120000 hours Incoming Material Quality ensure that key component dimensions and performance meet requirements

Raw Material Management Process before delivery.demonstrating industry-leading technical stability. Selection Material Qualification * Conduct monthly supplier performance evaluations. Develop targeted

Management Process improvement measures for underperforming suppliers. Utilize the SRM system

to require suppliers to upload outgoing inspection reports and periodically invite

senior supplier management for quality briefings.* Systematically identify key control points across man machine material method

environment and measurement (4M1E + measurement). Implement PFMEA SPC

and error-proofing technologies. Detect and correct anomalies early through

regular process audits and additional inspection points ensuring process stability

Production Process at the source.Manufacturing

Governance Management Process * Conduct root cause analysis based on full-chain production data. Combine reliability testing and validation to pinpoint issues and iterate solutions. Embed

improvement measures into process standards and operating procedures

The Company's Quality and Technology Department is responsible for building the quality management system and driving continuous product forming a continuous optimization loop from problem discovery to prevention

quality improvement. The Department comprises several divisions including the Technology Department the Process Quality Department the of recurrence.Supplier Quality Department and the Customer Quality Department which enable full-lifecycle quality control. A Quality Expert Group is also

established to provide regular guidance on quality strategy and improvement. * Establish standardized service processes and service level agreements (SLAs).Customer needs are rapidly responded to and routed via the CRM system and

The Company strictly complies with quality laws and regulations such as the Product Quality Law of the People's Republic of China and the

Customer Complaint Product the 400 hotline. For identified issues 8D reports are initiated for root cause

Supervision and Management Regulations for Industrial Product Manufacturing Units to Implement Quality and Safety Responsibilities. Based on Sales and Service Quality Issue Handling Process analysis and cross-departmental coordination. Results are communicated to

the requirements of the ISO 9001:2015 Quality Management System it has established a comprehensive set of 109 product quality management customers and measures validated while trend analysis drives continuous quality

system documents which are regularly revised to ensure alignment with operational needs. During the reporting period the Company optimized improvement.and updated its quality system documents across product R&D procurement management manufacturing quality management and after-sales

service. A total of 59 documents were issued including 18 new documents and 41 revisions. Following issuance these documents were used to * Clearly define handling procedures and requirements for non-conforming

train relevant personnel through the Estun Academy platform with over 2400 attendances. products during manufacturing to ensure proper disposition and effective

isolation upon anomaly detection. Prevent defective product flow by updating

In accordance with policies such as the Quality Management Manual and the Internal Audit Management System the Company conducts annual Non?Conforming agreements and implementing quality alert mechanisms at the source.Non-Conforming Product

internal quality management audits and third-party supervisory audits against ISO 9001 customer requirements and industry standards to Product & Recall * Build a single-code traceability system assigning unique identification codes Management Process

identify improvement opportunities and ensure products meet customer quality expectations. In 2025 the Company passed the ISO 9001 Quality Management to key components and complete machines. The MES system links production

inspection and order data enabl ing precise forward and backward

Management System surveillance audit covering 100% of its domestic manufacturing bases. It conducted 20 internal targeted quality audits and traceability across the full chain from supplier to end customer facilitating

underwent 10 customer second-party audits identifying 159 issues all of which were rectified with a 100% completion rate. rapid recall if necessary.Quality Improvement Initiatives

Strategy and Management Approach The Company has established a special improvement

mechanism to regularly advance quality improvement Process pass-through rate Product failure rate Material PPM

Quality improvement is a long-term ongoing process. Estun is steadily advancing its three-year quality improvement plan. Following the quality initiatives consistently addressing key issues in increased by decreased by decreased by

revolution phase in 2024 which focused on optimizing product and process quality management the Company designated 2025 as the year for testing manufacturing and customer applications.quality breakthroughs. Lessons learned have been deeply integrated into regular management with quarterly reviews and discussions serving as During the report ing period over 30 qual i ty 0.75 0.19 5 4 % percentage points percentage points year-on-year

a core component of quality culture development. By thoroughly analyzing past projects the Company consistently refines workflows to enhance improvement projects were carried out resulting in year-on-year year-on-year

product quality and operational efficiency driving quality management from revolution to breakthrough. significant improvements in key quality indicators.

25 262025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing

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Digitalization Enabling Quality Management

Case Targeting Typical Anomalies to Boost Both Quality and Efficiency

To further enhance quality control the Company deploys integrated digital systems across

Motor insulation breakdown had long constrained process yield. To address this the Company formed a special improvement team to all key stages enabling rapid risk identification and response while providing effective data

systematically analyze the issue using the 4M1E + measurement methodology. The team optimized motor winding design fixtures and assembly support for quality management. Raw material inspection plans and results are entered into

Selected as a 2025

consistency; analyzed failed control cabinets case by case to refine hardware and software parameters and testing coverage; and verified product the SAP system generating metrics such as PPM and batch pass rates in real time. Supplier

reliability through both simulation and customer field tests. Following these improvements motor breakdown rates dropped to below 0.2%—a performance is managed through the SRM system. In production the MES system enables Advanced-Level Smart Factory

reduction of over 80%—effectively lowering costs and improving throughput. Control cabinet product failure rates stabilized quickly after mass traceability of key materials real-time monitoring of processes automatic data collection and in Jiangsu Province

production achieving breakthroughs in both quality and efficiency. anomaly visualization directly supporting the zero-defect philosophy. For customer service

the CRM system ensures end-to-end traceability of feedback improving response speed and

improvement efficiency.Case “Process Inspection + Error?Proofing Map” Drives Robot Quality Improvement

To address process variations and potential failure risks in robot manufacturing the Company Zero-Defect Culture

simultaneously advanced two quality initiatives: daily process inspection and error-proofing

Centered on the zero-defect quality goal the Company organizes thematic quality culture activities on monthly quarterly and annual cycles. These

maps. Through weekly full-process inspections and cross-departmental joint checks

activities foster an environment of valuing quality management participating in quality control monitoring quality issues and enjoying quality

deviations were corrected in real time enabling closed-loop management of frequently

benefits helping to embed the Company’ s quality culture and support sustainable business growth.occurring issues. Additionally a three-layer “process – risk – measure” error-proofing map tool

was introduced. Using PFMEA 83 critical nodes across the assembly process were identified

and error-proofing devices—such as those for oil seal press-fitting and servo parameter

automation—were deployed for high-risk processes eliminating human error at the source.Since the dual initiatives were implemented 109 improvement opportunities have been

identified with a 96% closure rate. This reflects the Company's commitment to addressing Valuing * Conducted 30 specialized quality

* Specialized quality training

issues promptly and preventing risk transfer resulting in significant improvements in product Quality training sessions

Management * Quality Month activities

consistency and process stability. * Total training hours 55.5 hours

* Total attendances 418

Quality commitment pledge ceremony

Supplier Quality Management

The Company continues to strengthen supplier quality management by precisely overseeing supplier process controls and capabilities at the source.Targeted training programs address supplier weaknesses empowering supply chain partners and enhancing overall quality management levels.Participating * Received 311 suggestions

in Quality * Suggestion programs * Evaluated and confirmed feasibility

Control * Lessons learned reviews

for 214 suggestions

Lessons learned sharing session

Supplier on-site audit for risk identification and support On-site supplier practical training

* Targeted quality audits * Identified 154 issues through various

Monitoring

quality audits

Quality * Product audits

Regular Supplier Performance Evaluation Special Quality Improvements and Targeted Resolution of Key Issues * Product quality spot checks * Rectification completion rate: 100%

and Process Audit Mechanism Standard System Development Supply Chain Quality Issues

Targeted quality audit

The Company sets PPM targets by category To address ambiguous quality acceptance The Company implemented 17 specia l

with monthly performance evaluations. standards the Company took the lead in quality improvement projects. For example

Special improvement measures are developed optimizing standards quantifying metrics collaborating with a supplier to address * Skills competitions

for underperforming suppliers. In 2025 and clarifying benchmarks. It issued 5 quality casting leakage defects from both source

Enjoying * Workshop FPY improvement * A total of 487 attendances were

a total of 39 annual process and fl ight technology specification documents and drove and process perspectives achieved zero Quality competitions recorded across various competitions

audits were completed with follow-up on training implementation for both supply and recurrence of the issue. This marked a Benefits * Quality knowledge and evaluation activities.non-conformities until closure. Additionally demand sides to ensure stable product quality. shif t from inspect ion-based qual i ty to competitions

66 quality briefings and 76 on-site and empowerment-based coaching promoting Employee skills competition

remote audits were conducted continuously long-term supply chain quality improvement.strengthening supply chain process control.

27 282025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing

Unlock New Quality Productive Forces Drive High-Quality Development to Build a Sustainable Future Together on a New Journey

Product Safety Management Impact Risk and Opportunity Management

Estun prioritizes product safety ensuring that users are not exposed to risks from immature technologies. The Company strictly implements The Company has built a preventive full-chain closed-loop quality risk control mechanism. It systematically identifies technical supply chain

product safety standards throughout design production and use actively controls hazardous substances and comprehensively safeguards and engineering risks during R&D procurement assembly and commissioning. Tools such as Failure Mode and Effects Analysis (FMEA) supply

product and user safety. chain geographic analysis and failure data are used for multi-dimensional quantitative assessment and risk classification. Special control plans are

developed for high-risk items such as motion control accuracy and collision safety logic forming a closed loop from identification and assessment

Mechanical Functional Safety

to resolution.Safety is a critical feature of general-purpose industrial robots. The Company’ s robot designs employ redundant reliable control architectures

to mitigate high risks and incorporate continuous monitoring of position speed and designated safety zones effectively protecting operators

and equipment in complex high-risk environments. This high-performance safety system is built on the Company’ s self-developed functional

safety module whose core technology is a dual-core redundant functional safety computing platform. At the software level the Company uses * Regularly review the risk map incorporating field * U t i l i ze t h e O N E S p l a t fo r m to e n s u re

a black-channel architecture concept to establish a safety data verification module supporting various safety encoders and network protocols. failure cases and solutions into design specifications transparency in project development issues.supplier joint development agreements assembly Organize expert technical reviews to identify

At the hardware level it has developed a platform design with scalable safety input/output interfaces that can adapt to changes in product

error-proofing fixtures and final product diagnostic technical risks. In 2025 over 20 project reviews

application standards and peripherals. The module meets the ISO 10218-1 robot functional safety standard and is designed to comply with IEC

procedures. This creates a closed loop from source were completed with more than 50 risk

61508 certification requirements. Software safety functions target PLd and SIL 2 levels while hardware safety functions target PLe and SIL 3 prevention to product iteration continuously mitigation measures implemented.

levels ensuring that the overall robot meets the PLd Category 3 requirements defined in ISO 13849-1. This establishes Estun’ s first-mover improving the ability to prevent quality risks. * Conduct regu la r p roduct and process

advantage in functional safety within the domestic industrial robot sector. audits and on-site inspections. Over 30

01 02 workshop audits were organized throughout

the year identifying and closing more than

Source Prevention Identification

through Quality 300 improvement points achieving r isk of Quality Risks

Risk Audits identification and closed-loop control across

Full series of robots have passed ISO 13849 functional safety certification. the entire process from R&D to manufacturing.The ESTUN Safety Solution (ESS) has passed TüV Rheinland CE functional safety certification.* Enable real-t ime monitoring of SPC core * E n co u ra g e e m p l oye e s t o p ro a c t i ve l y

The industrial six-axis articulated robot has passed cETLus certification. component traceability and robot torque Monitoring and Reporting and identify quality risks report improvement

consistency on production l ines with Traceability of Improvement of suggestions and receive incentives for quality

Quality Risks Quality Risks

threshold-triggered alerts and rapid response. improvements. In 2025 311 suggestions were

Hazardous Substance Management * Optimize the MES system to enable strong 03 04 received 214 were evaluated and approved

verification of key materials and full forward and and over 200 instances of incentives were

The Company ensures that all products meet safety quality and environmental requirements. Hazardous substances are managed across raw backward traceability via a single code ensuring granted.material procurement new product development manufacturing packaging storage and transportation. In accordance with standards such as quality r isks are perceivable monitored and

the RoHS Directive the Company strictly prohibits the use of hazardous substances including lead mercury cadmium hexavalent chromium traceable.polybrominated biphenyls (PBBs) and polybrominated diphenyl ethers (PBDEs). It prioritizes the use of low-toxicity non-toxic and degradable

materials to ensure products comply with regulatory and customer requirements regarding hazardous substances.Reliability Management

Estun has established a Product Reliability Testing Center comprising 4 testing teams and 9 functional laboratories. The Center is a Indicators and Targets

CNAS-accredited national laboratory and a partner laboratory for certification bodies such as TüV Rheinland and UL with comprehensive

reliability testing and validation capabilities. In 2025 the Testing Center operated strictly in accordance with CNAS system requirements The Company pursues zero defects as its core quality goal and sets challenging annual management targets. Driven by high standards it

successfully passed the annual surveillance audit and expanded its accredited scope. It added 12 standards and 24 capability items now covering consistently optimizes and improves quality performance through systematic process control and continuous improvement mechanisms. During

49 domestic and international standards across 7 major fields—including motors servos robot performance and safety EMC environment and the reporting period the Company had no major product recalls due to quality issues nor did it receive any major customer complaints product

vibration—and 78 testing projects. This provides full-process reliability validation support for product R&D and production. liability claims or other legal claims related to the quality of sold products.Product testing at the Reliability Laboratory follows the IPD Product Testing Enabling Process which defines the stages operational requirements

entry and exit criteria and output specifications for testing. The Severity Occurrence Detection (SOD) evaluation from Process Failure Mode and 2025 Target 2025 Actual Target Achievement Status

Effects Analysis (PFMEA) and a maturity model serve as criteria for test acceptance. In 2025 the Laboratory launched a Laboratory Information

Management System (LIMS) enabling unified digital management of testing tasks equipment personnel and reports—significantly improving Product failure rate 0.9% 0.99% 91.1%

operational efficiency and standardization.In-process yield 96% 94.83% 98.8%

To consistently improve product reliability the Company has established enterprise-level testing requirements for each product category that

exceed GB and IEC standards. These are strictly followed to ensure consistency in test results and product quality. In 2025 the Laboratory First-pass yield upon unpacking inspection 99.9% 99.78% 99.9%

conducted extreme stress tests to proactively identify potential design risks through destructive testing continuously enhancing product reliability.Additionally ongoing reliability testing (ORT) is conducted monthly on mass-produced products to identify latent defects resulting from material Material PPM 700 632 109.7%

process or design changes monitor the batch quality of supplier components and ensure the stability and consistency of finished products

throughout their lifecycle.

29 302025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing

Unlock New Quality Productive Forces Drive High-Quality Development to Build a Sustainable Future Together on a New Journey

Customer Relationship Management

Upholding its customer-centric service philosophy Estun has built an efficient service system that extends from China to global markets

consistently optimizing service processes offerings and experiences. Through effective customer engagement the Company secures customer

recognition and long-term support working together to build mutually beneficial partnerships for sustained value creation.Governance

Estun has established the Global Delivery and Service Department as its front-end interface responsible for coordinating customer

communication and relationship management. An Iron Triangle customer support team—comprising sales technology and project management

professionals—provides high-level customized services professional advice and solutions. The Company has implemented policies such as the

After-Sales Service Management System the Customer Complaint Handling Standards and the Repair Management Measures to standardize

service processes complaint handling mechanisms and response time benchmarks ensuring consistency traceability and standardization in

service delivery. Case Building a Nationwide Joint Service Network for Estun Robot Products to Ensure Efficient Service

The stable operation of automation equipment is critical to enterprise production. To enhance service response efficiency for its robot

Strategy and Management Approach products Estun has officially authorized four joint service partners establishing an after-sales service network covering North East Central and South China for spare parts repairs and maintenance. All cooperative service partners undergo rigorous selection and systematic

Customer Service System Management technical training by Estun and have access to Estun’ s official spare parts supply system ensuring customers receive the same service

experience and quality standards as from the official service team. By building this localized service network the Company has significantly

Estun has built a global service system providing 24/7 technical support across pre-sales in-sales and after-sales phases. In the pre-sales phase the shortened engineers’ on-site response time and fault handling cycles minimizing losses caused by production interruptions and effectively

Company focuses on precise market analysis and customer need identification actively participating in industry associations trade shows and technical optimizing customer maintenance costs.seminars. It optimizes customer communication and solution design processes to deliver customized solutions.In the in-sales and after-sales phases the Company has built a multi-dimensional service network encompassing delivery training installation and

commissioning preventive maintenance extended warranties upgrades peripheral products repair services spare parts and buy-back services.This ensures customers can confidently use Estun’s high-quality products and benefit from comprehensive operation maintenance training and Enhancing Digital Service Experience

upgrade services. During the reporting period the Company conducted over 200 technical training sessions totaling more than 12000 hours

helping customers enhance their technical skills and operational capabilities. It also developed an online learning platform to provide customers In addition to its offline global service network the Company is actively expanding online customer service channels including a 400 hotline and mobile

with more convenient and flexible learning resources. Additionally the Company promotes digital and intelligent customer management using a platforms. AI is applied across various customer service scenarios such as Estun Chat and intelligent customer service enabling customers to quickly

robust CRM system to comprehensively record customer information needs and preferences project history and service records. This enables receive effective support enhancing digital experience and improving overall service efficiency.personalized service delivery improving service efficiency and responsiveness to customer needs. In 2025 the Company launched the Estun Automation Products and Application Cases mini-program integrating core resources such as product

selection solution videos document downloads and after-sales service. It also provides online training courses covering the full range of

scenarios from product selection to training and learning helping users conveniently access technical resources and efficiently connect with

Strengthening Service Support Systems after-sales service—achieving one-stop technical empowerment.The Company is dedicated to providing comprehensive and timely service and technical support to global customers. It has established a service

network covering major cities across China staffed by a professional technical service team capable of quickly arriving on-site for fault diagnosis and

repair upon receiving a service request. The Company adheres to a “2-hour response 24-hour solution 48-hour on-site handling” response time

commitment ensuring a convenient and hassle-free customer experience.The Company is dedicated to providing comprehensive and timely service and

technical support to global customers. It has established a service network covering major cities across China staffed by a professional technical serviceteam capable of quickly arriving on-site for fault diagnosis and repair upon receiving a service request. The Company adheres to a “2-hour response

24-hour solution 48-hour on-site handling” response time commitment ensuring a convenient and hassle-free customer experience.

Global service outlets Regional centers in China Cooperative service outlets Offices After-sales engineers

75 4 6-10 18 115 Estun Automation Products and Application Cases mini-program After-sales service inquiry Training and learning services

31 322025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing

Unlock New Quality Productive Forces Drive High-Quality Development to Build a Sustainable Future Together on a New Journey

Customer Communication and Satisfaction Management

Estun places high importance on customer feedback and has implemented a structured tiered complaint handling mechanism. It has established the Impact Risk and Opportunity Management

Customer Complaint Handling Standards and the Estun 400 Customer Service Hotline Operation Management Standards defining the full-process

mechanism for complaint receipt classification routing handling feedback and closure. In 2025 the Company optimized its complaint escalation path In the context of business development customer management requires attention to risks such as misaligned needs and information leakage while

and handling timeliness requirements ensuring a complaint response within 2 hours. If on-site support is required the Company guarantees dispatching also capturing growth opportunities driven by enhanced customer loyalty. The Company has established a customer risk management and opportunity

technical personnel within 24 hours. The service team includes junior and intermediate engineers with issues escalated to an expert team when identification mechanism that spans the entire business process. Through regular customer visits satisfaction surveys industry exhibitions and

necessary. All service activities are recorded in the CRM system to ensure full traceability. The Company also implements a first-inquiry responsibility regulatory tracking it dynamically captures market trends and evolving customer needs promptly identifying potential business risks arising from

system where the employee who first receives a customer complaint is responsible for following it through to resolution ensuring that complaints are technology shifts quality fluctuations or delivery issues. Leveraging the CRM system the Company achieves systematic control from pre?sales

not passed off or delayed. After resolution the responsible department conducts a follow-up to confirm customer satisfaction. To prevent recurrence inquiries and order fulfillment to after?sales support effectively mitigating risks such as delivery delays data breaches and customer churn while

customer feedback is categorized into nine key issue types—such as operational quality or usage-related issues—for root cause analysis by relevant improving service efficiency and responsiveness to customer needs.departments with findings fed back into R&D and manufacturing processes to drive continuous improvement. During the reporting period the Company

received 29 product and service-related complaints all of which were effectively addressed and actively processed. Furthermore the Company prioritizes the collection processing and protection of customer information. It commits to collecting customer

information only through lawful means with explicit customer authorization and to using such information solely for providing and improving

The Company conducts annual satisfaction surveys for domestic and international customers covering three customer types: end users services. To ensure customer information security and privacy Estun has established a comprehensive set of information security policies and

integrators and channel partners. The surveys assess satisfaction with product quality delivery time after-sales service pre-sales evaluation and strict management procedures safeguarding the interests of both the Company and its customers.pricing. In 2025 the Company’ s overall customer satisfaction score was 91.40 an increase of 1.64 points year-on-year. Pre-sales evaluation and

after-sales service scored highest. For areas with lower satisfaction the Company developed improvement plans—such as enhancing product

performance and reliability inspections and strengthening channel partner service staff training—and incorporated these into the work plans of

relevant departments continuously improving service quality and standards.Service Team Capability Building Indicators and Targets

The Company is committed to building a highly skilled professional customer service team. It conducts regular specialized training service skills

competitions and excellent service case sharing sessions for technical service teams across all service network locations. These activities improve staff The Company has established a service quality supervision and assessment mechanism regularly reviewing and evaluating service processes and

capabilities in service quality communication skills product knowledge and issue handling procedures. The Company has also established a pool of outcomes. Annual targets are set for indicators such as customer satisfaction customer complaint rate and issue resolution timeliness which are

service experts selecting employees with strong skills and high customer evaluations to provide technical support and guidance thereby enhancing the incorporated into the Company's assessment system and linked to employee compensation and promotion.overall service level of the team. During the reporting period the Company conducted 27 specialized training sessions for technical service personnel

totaling over 660 hours and recording over 1100 attendances.

2025 Target 2025 Actual 2026 Target

The Company also values capability building for its ecosystem partners. It offers engineer training programs for channel partners to ensure

high-quality customer service at the market level and conducts skills assessments for channel partner after-sales staff to ensure continuous Customer satisfaction (points) 100 91.4 100

improvement in service quality. During the reporting period the Company conducted 5 phases of the Pioneer Warrior special empowerment

training for channel partner sales personnel training 178 individuals. At the Estun 2025 Global Partner Development Summit the Company Average issue resolution time1 (days) 24 12 24

officially launched the Spark Plan aimed at fostering the growth and capability development of partner technical teams to ensure continuous

improvement in service quality. In 2025 the Spark Plan covered 9 G-level distributors and 4 S-level distributors with over 10 core engineer team Customer complaint resolution rate (%) 100 90 100

members certified by Estun building the core capability to deliver outstanding innovation value to customers.Notes:

Spark Plan Action Matrix 1. Average issue resolution time includes stages such as custom requirement analysis testing and solution validation.

2. The customer complaint resolution rate in 2025 did not reach 100% due to certain commercial disputes requiring negotiation and settlement;

the Company is actively working to resolve these.The Company deploys technical personnel to partner sites for on-site technical training and practical coaching

Technical Spark systematically enhancing the delivery capabilities of channel partner technicians and building a partner-side

product knowledge base and FAQ manual.Percentage of customers using the Company's online service solutions / sales platforms

Through hands-on coaching for partner technicians the Company establishes and implements coding standards 2024 2025

key checkpoint checklists and delivery acceptance standards making service processes replicable and traceable Market Ignition

%

thereby improving customer service experience and satisfaction. 22.2% 31.6

Leveraging the after-sales certification system the Company expands the pool of certified after-sales engineers

Service Constellation among channel partners. Through certification planning coaching and project-based practice it enhances

partners’ ability to independently handle issues and improves their regional service coverage.

33 342025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing Unlock New Quality Productive Forces Drive High?Quality Development to Build a Sustainable Future Together on a New Journey

2 Strengthening

Governance to

Drive High-Quality

Development

Contributing to UN SDGs

35 362025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing Unlock New Quality Productive Forces Drive High?Quality Development to Build a Sustainable Future Together on a New Journey

Corporate Governance

Estun recognizes that strong corporate governance is fundamental to sustainable development. The Company continues to enhance its qualification requirements and appointment procedures set out in these policies ensuring that qualified experts and professionals are selected

governance framework leveraging a well-designed organizational structure and efficient operating mechanisms to ensure steady progress along and that their role in corporate governance is effectively fulfilled.the path of high-quality development.The Board of Directors comprises nine members with independent directors accounting for 33.33% none of whom hold shares in the Company.Independent directors do not participate in day-to-day management which helps mitigate potential conflicts of interest and reinforces effective

Corporate Governance System checks and balances. In addition the number of concurrent positions held by independent directors is appropriately managed to ensure they

can devote sufficient time and attention to their duties. Independent directors form a majority on and chair the Audit Committee Nomination

Estun strictly complies with applicable laws regulations and normative documents including the Company Law of the People’ s Republic of Committee and Remuneration and Appraisal Committee thereby ensuring the objectivity and fairness of Board decision-making. The Company

China the Securities Law of the People's Republic of China the Measures for the Administration of Stock Exchanges the Code of Corporate has established a Board performance evaluation mechanism under which the Remuneration and Appraisal Committee formulates assessment

Governance for Listed Companies the Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange and the Shenzhen Stock Exchange criteria and conducts regular evaluations of directors. During the reporting period performance evaluations covered 100% of Board members.Self-Regulatory Guidelines No. 1 – Standardized Operations for Main Board Listed Companies. The Company has established a modern corporate Estun provides independent directors with adequate working conditions and professional support while safeguarding their right to information by

governance framework centered on the General Meeting of Shareholders and the Board of Directors supported by a well-defined operating regularly sharing operational updates and relevant materials. In 2025 the Company convened four special meetings of independent directors to

mechanism characterized by clear allocation of responsibilities effective communication and robust checks and balances. In 2025 the Company review matters such as related party transactions. Prior to the Board’s deliberation of significant and complex matters independent directors are

streamlined its governance structure by dissolving the Board of Supervisors and transferring its supervisory responsibilities to the Audit Committee involved in research and evaluation processes to ensure their views are fully considered. The Company also actively facilitates on-site engagement

of the Board enhancing the centralization and professionalization of oversight functions. In parallel the Company continued to refine its internal by independent directors providing strong support for the effective and comprehensive discharge of their duties.governance framework. During the reporting period it introduced the Interim Measures for the Deferral and Exemption of Information Disclosure

and revised 25 key governance policies including the Articles of Association the Rules of Procedure for the General Meeting of Shareholders

and the Rules of Procedure for the Board of Directors. Corresponding policies applicable to its Hong Kong listing were also issued to ensure the Independent Director Representation and Meeting Attendance of Board Committees

timeliness adaptability and compliance of its governance system.Proportion of Independent Attendance Rate of

Board Committees Number of Meetings

Directors Independent Directors

Strategy Committee 20% 5 100%

Audit Committee* 100% 6 100%

General Meeting of Shareholders Board of Directors

Remuneration and Appraisal Committee* 66.7% 3 100%

The General Meeting of Shareholders is the Company's Reporting to the General Meeting of Shareholders the Board

highest authority. Estun convenes and holds general meetings of Directors serves as the decision-making body for the

Nomination Committee* 66.7% 3 100%

of shareholders in strict accordance with the Articles of Company's operations and management as well as the highest

Association the Rules of Procedure for the General Meeting of decision-making authority for ESG management. In accordance Environmental Social and Governance 33.3% 3 100%

Shareholders and other applicable regulations. The Company with the Rules of Procedure for the Board of Directors the (ESG) Committee

fully respects the rights of all shareholders ensuring their right Company standardizes the Board’ s deliberation processes and Note: * indicates that an independent director serves as the chair of the committee.to be informed to participate and to vote on significant matters. decision-making procedures thereby promoting the effective

It also ensures equal treatment and the full exercise of lawful performance of duties by both the directors and the Board as a

rights for all shareholders with particular attention to minority whole. The Board has established five specialized committees

shareholders. In accordance with regulatory requirements namely the Audit Committee the Nomination Committee Board Skills and Diversity

the Company discloses resolutions of general meetings of the Remuneration and Appraisal Committee the Strategy

shareholders and related legal opinions in a timely manner. Committee and the Environmental Social and Governance To enhance the quality and effectiveness of Board decision-making Estun has formulated a Board Diversity Policy (Draft) taking into full

(ESG) Committee. Each committee performs its duties in consideration diversity across multiple dimensions including cultural background education professional experience gender and age. This

accordance with the Articles of Association and its respective approach enables the Board to benefit from broader perspectives and more balanced judgment supporting its professional well-informed

implementation rules providing professional recommendations and efficient operation. The Board comprises directors with a balanced mix of knowledge and competencies bringing both academic expertise

4 to the Board and enhancing its standardized operation and During the reporting period the Company convened and practical experience in fields such as engineering mechanical engineering electrical automation accounting economics and business sound decision-making. administration. Ms. Han Xiaofang Chair of the Audit Committee possesses extensive experience in finance and accounting enabling effective

general meetings of shareholders at which 31 resolutions oversight of internal financial management and risk control.were reviewed and approved. During the reporting period the Board of Directors convened

9 meetings at which 62 resolutions were reviewed The Company continues to strengthen the standardized operation of the Board by providing sufficient internal and external training resources to

and approved. support directors in the effective discharge of their duties. During the reporting period the Company organized 7 training sessions for directors

covering topics such as market value management high-quality development information disclosure and continuing obligations of directors

supervisors and senior management of Hong Kong–listed companies further enhancing directors’ ability to perform their responsibilities.Board Independence and Effectiveness

Estun recognizes that an effective independent director system is essential to promoting standardized corporate governance safeguarding the

overall interests of listed companies and protecting the legitimate rights and interests of minority investors. In accordance with the Measures

for the Administration of Independent Directors of Listed Companies the Company has established and implemented the Independent Director

System and the Working Rules for Independent Directors’ Special Meetings. Independent directors are appointed in strict compliance with the

37 382025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing Unlock New Quality Productive Forces Drive High?Quality Development to Build a Sustainable Future Together on a New Journey

Professional Expertise

Average annual remuneration of employees Total annual remuneration of the Ratio of General Manager's remuneration

Position Name Gender (excluding the General Manager)

Strategic Industry Risk Financial Technology Sustainable General Manager to average employee remuneration

planning experience management accounting Law R&D development

RMB 363400 RMB 968400 2.66

Chairman Wu Bo Male ? ? ? ? ?

Vice Chairman General Manager Wu Kan Male ? ? ? ? ? ?

Director Deputy General Manager Zhu Chunhua Male ? ? ? ? Director and Senior Management Compensation Structure

In 2025 the Chairman did not receive any remuneration from the Company. Other non-independent directors who hold executive positions receive

Director Deputy General Manager Zhou Ailin Male ? ? ? ?

remuneration based on their respective roles and do not receive additional director fees. Their remuneration is determined with reference to the

Director Chief Financial Officer

He Lingjun Male ? ? ? ? ? ? Company's operating performance the scope and responsibilities of their management roles their level of responsibility and performance against

Deputy General Manager assigned objectives.Director Chen Yinlan Female ? ? ?

Performance-based Salary

Independent Director Tang Wencheng Male ? ? ? ?

Basic Salary ESG-related Components

Independent Director Han Xiaofang Female ? ? ?

Quality and Risk Talent Employee

Independent Director Lin Jinjun Male ? ? ? ? Work Safety Service Management Development Satisfaction

Ownership of Directors and Senior Management

Total Pre?tax

Board Educational Board Gender Board Age Shareholding at Year?end Multiple of Annual Name Position Remuneration in 2025

Background Composition Distribution (Shares) Compensation1(RMB 10000)

Wu Bo Actual Controller Chairman 110996700 0 N/A2

50 years old 61 years old and

Doctoral Degree Male and below above Wu Kan Vice Chairman General Manager 1263033 96.84 30.91

2 7 4 2 Zhu Chunhua Director Deputy General Manager 128600 89.84 3.39

Zhou Ailin Director Deputy General Manager 224500 81.24 6.55

Master's Degree Bachelor's Director Chief Financial Officer Deputy

Degree Female 51-60 years old He Lingjun 240000 121.09 4.70 General Manager

4 2 3 Chen Yinlan Director 118000 50.39 5.55

Yin Chenggang Deputy General Manager 84900 66.16 3.04

Director and Senior Management Compensation Policy

ZHANGXING ZHU Deputy General Manager 122000 251.94 1.15

Estun has established a fair and effective remuneration management system and incentive framework for directors and senior management.Xiao Tingting Board Secretary 40000 64.79 1.46

The Remuneration and Appraisal Committee is responsible for formulating and reviewing remuneration policies and plans for directors and

senior management. Such policies and plans are subject to approval by the Board of Directors and the General Meeting of Shareholders prior to Note: 1. The multiple of annual compensation is calculated as: year-end share price × number of shares held ÷ annual remuneration.implementation with appropriate information disclosure conducted in accordance with regulatory requirements. The Nomination Committee and 2. Mr. Wu Bo does not receive remuneration from the Company; therefore the multiple is not applicable.the Remuneration and Appraisal Committee jointly assess senior management based on their professional capabilities performance of duties and

achievement of business objectives and determine their annual remuneration packages and year-end bonuses accordingly.To align individual incentives with the Company’ s long-term development the CEO and senior management are remunerated under an annual

salary system comprising a fixed monthly base salary and a performance-based annual component. The performance-based component is Protection of Investor Rights and Interests

closely linked to the Company’ s overall operating results with assessment indicators covering key financial metrics such as revenue profit

and cash collection as well as medium- to long-term factors including strategic execution and organizational development. This structure

Estun attaches great importance to investor relations management and strictly complies with the Company Law of the People’ s Republic of China the

encourages management to focus on sustainable long-term value creation and mitigates short-termism. In addition a significant proportion

Securities Law of the People’ s Republic of China the Guidelines on Investor Relations Management of Listed Companies and other applicable laws

of total compensation is variable and performance-based reflecting a “high risk high return” incentive approach and further strengthening the

regulations and the Company's Articles of Association. The Company has established and continuously improved its Investor Relations Management

alignment between management compensation and the Company’s long-term performance. To complement this structure the Company has also

System adhering to the principles of fairness openness objectivity and equal treatment to safeguard investors’ right to information and other lawful

implemented long-term incentive schemes including equity and stock option plans for the CEO senior management and key talent to further

rights and interests. The Company is committed to protecting the rights and interests of minority shareholders by ensuring their ability to attend general

support effective performance of their duties.meetings of shareholders in person or exercise voting rights through online channels. For material matters that may affect minority investors votes are

counted separately and disclosed individually. This approach ensures that minority shareholders can fully exercise their rights.

39 402025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing Unlock New Quality Productive Forces Drive High?Quality Development to Build a Sustainable Future Together on a New Journey

Sustainable Development Management

Information Disclosure

Estun has established and strictly implements the Information Disclosure Management

System and the Confidentiality Management System. These systems set out clear Board StatementPeriodic reports disclosed

requirements for information transmission review and approval disclosure procedures Estun has established and consistently strengthened its ESG governance structure to enhance overall ESG performance. The Company has put in

confidentiality measures document management and accountability. The Company fulfills 4 place a three?tier ESG management framework comprising the oversight management and execution levels under the leadership of the Board

its information disclosure obligations in accordance with applicable laws and regulations

of Directors. This structure enables the systematic integration and effective implementation of ESG and sustainable development initiatives across

and ensures the proper preparation review and release of ad hoc announcements and Ad hoc announcements disclosed

the organization. The Board of Directors serves as the highest decision?making body for ESG management and assumes overall responsibility for

periodic reports. Information is disclosed in a true accurate complete and timely manner

with a continued focus on improving disclosure quality. During the reporting period the 185 overseeing ESG?related matters. In terms of ESG governance the Company has established a regular ESG risk management mechanism. Through

Company reported no instances of false or misleading statements material omissions or materiality assessments the Board and the ESG Committee periodically identify prioritize and manage ESG issues that are most relevant to the

other non-compliant disclosures. Company’ s operations. Resource allocation is aligned with the level of risk exposure strengthening the Company’ s capacity to address key

ESG topics such as climate change green manufacturing business ethics and employee development. With respect to ESG target management

the Company integrates ESG objectives into its day?to?day operations. It has established a set of ESG targets covering areas such as carbon

Investor Communication

emissions management quality management and workplace safety. Progress against these targets is reviewed on a regular basis and targets are

Estun adheres to an investor relations philosophy grounded in sincerity compliance and professionalism. The Company maintains open and continuously refined in line with industry trends and the Company’ s strategic priorities. This approach embeds sustainability across all aspects of

effective communication with investors through multiple channels including telephone email the Shenzhen Stock Exchange Interactive operations and supports the creation of long?term value for shareholders and broader Financially Material Issue.Platform on-site investor visits results briefings brokerage strategy meetings reverse roadshows and major industry exhibitions such as

the China International Industry Fair. These efforts ensure that shareholders and the broader investment community are kept informed of

significant developments and operating performance while supporting constructive and ongoing engagement with investors.* A cross-functional coordination mechanism is in place to respond to investor concerns particularly on key or high-interest topics.The Board Secretary leads coordination efforts with relevant business units providing timely input to ensure efficient communication Board of Directors

between the Company and the market. The Board of Directors is the highest decision-making body for ESG management. It is fully responsible for

* The Company continues to upgrade its showroom and regularly updates exhibits to reflect its latest products. Factory tour routes overseeing ESG-related matters reviewing and approving ESG strategies and objectives management policies ESG

are open to visiting investors enabling direct observation of production facilities products operational processes and working reports and other significant ESG matters and retains ultimate decision-making authority on key ESG issues.environments.* In response to a diversified investor base the Company adjusts the timing of visits and engagement activities for overseas investors

to facilitate broad and equitable participation. Environmental Social and Governance (ESG) Committee

* Professional agencies are engaged to produce corporate videos that present the Company’s fundamentals and address key investor Oversight

concerns. These materials are used in overseas investor communication activities for China A-share companies. Chaired by the Chairman the ESG Committee is responsible for identifying and overseeing ESG-related risks and Level

* The Company maintains regular communication with major financial media and actively manages public opinion. Potential market- opportunities that may have a material impact on the Company’s business. It provides guidance to management on

sensitive developments are monitored and addressed in a timely manner to help guide market expectations and reduce the risk of appropriate responses to these risks and opportunities supports the formulation of ESG strategies and objectives

misinformation. monitors implementation progress and effectiveness and reports to and advises the Board on ESG matters.* Visual summaries of the annual report and Hong Kong IPO are developed and released in infographic format providing clear and

accessible communication of key information to investors.Number of investor engagement activities Total investor participants Number of investor visits received

(including results briefings)

549728

ESG Leadership Group

Led by the General Manager the ESG Leadership Group comprises heads of relevant functions including corporate

governance environmental management health and safety supply chain management product innovation quality

Standardizing Related Party Transactions and service and human capital development. It is responsible for the overall coordination and management of Management

ESG work including identifying and managing ESG risks and opportunities assessing the materiality of ESG issues

To regulate related party transactions reduce unnecessary transactions and protect the legitimate rights and interests of shareholders Estun Level

integrating ESG considerations into business decisions and formulating ESG targets and action plans.has established and continuously improved a set of governance policies including the Articles of Association the Rules of Procedure for

General Meeting of Shareholders and the Related Party Transaction Management Measures. These policies set out clear requirements for the

scope review and approval disclosure and recusal procedures of related party transactions ensuring that decision-making is conducted on a

fair and equitable basis for all shareholders and that related party transactions are managed in an orderly and compliant manner.During the reporting period all related party transactions were conducted in the ordinary course of business and were necessary for

the Company’ s operations and development. These transactions were carried out on normal commercial terms and in accordance with ESG Working Group

market principles. Pricing was fair and reasonable and all required approval procedures and information disclosure obligations were duly The ESG Working Group consists of personnel from various departments and subsidiaries. It is responsible for

completed. Independent directors conducted prior reviews of material related party transactions and issued independent opinions. This

implementing ESG initiatives managing ESG-related indicators monitoring progress and collecting and reporting

process ensures that such transactions are carried out in the best interests of all shareholders. Execution

ESG data to support effective execution across the organization.Level

41 422025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing Unlock New Quality Productive Forces Drive High?Quality Development to Build a Sustainable Future Together on a New Journey

Stakeholder Communication

Board of Directors

Oversight Level Estun places great importance on communication with its Financially Material Issue. Based on its daily operations management practices material

Environmental Social and Governance (ESG) Committee issue categories and various influencing factors the Company identifies and prioritizes internal and external Financially Material Issue with significant

impact. Through diverse communication channels it actively engages to understand stakeholder expectations and concerns and responds in a timely

and proactive manner to achieve mutual benefit and harmonious development with all parties.Management Level ESG Leadership Group

Financially Material Issue Issues of Concern Communication Channels

* Compliance and risk management

Execution Level ESG Working Group

* R&D and innovation * Government meetings

* Green technologies and products * Special reports

* Climate change and energy management * On?site visits

Government and

Regulatory Bodies * Public welfare and charity * Information delivery

* Product quality management

* Corporate governance * Information disclosure

* Protection of investor rights and interests * Shareholders’ meetings

* Customer service management * Earnings briefings

Shareholders & Investors * R&D and innovation * Investor communication platform

* Product quality management * Investor meetings and site visits

In 2025 the Environmental Social and Governance (ESG) Committee continued to

actively fulfill its responsibilities holding 3 special meetings focused on key ESG matters. S&P Global ESG Score * Product quality management

During these meetings the Committee reviewed and approved several critical proposals

* Sustainable supply chain * Daily operational communication

including the Proposal on Establishing the Company's ESG Governance Structure the 47

Proposal on the Company's 2024 Environmental Social and Governance (ESG) Report * Intellectual property protection * Official communication channels

the Proposal on Revising the Rules of Procedure of the Board Environmental Social and Top 15% * Responsible marketing * After?sales service and feedback

Governance (ESG) Committee and the Proposal on Revising the Draft Rules of Procedure Customers

in the global IEQ Machinery and * Customer service management * Customer satisfaction survey

of the Board Environmental Social and Governance (ESG) Committee in Connection with

Electrical Equipment industry * Information and data security

the H-Share Issuance and Listing. These actions advanced the institutionalization of the

Company's ESG efforts.* Sustainable supply chain

* Strategic cooperation

* Digital transformation

* Thematic Training

* Environmental management system

* Market research

* Business ethics and anti?corruption

* Special meetings

CNI Index ESG Rating Sino-Securities Index ESG Rating Wind ESG Rating Suppliers & Partners * Compliance and risk management

* Industry exchanges

AAA AA AA * Industrial cooperation and development

* Employee training and development

Wind ESG * Official WeChat of the Company

* Employee rights and benefits

2025 Top 100 China Listed Companies ESG Best Practices (Small & Mid-Cap) * Workers' Congress

* Compliance and risk management

Employees * Employee activities* Production safety and occupational health

Sino-Securities Index ESG

2025 Top 50 A-Share Listed Companies in Environmental (E) Best Practices * Pollution and waste management * Community communication

* Business ethics and anti?corruption * Media interaction

Sino-Securities Index ESG * Green technologies and products * Industry forums

2025 Top 30 Green & Low-Carbon Pioneers among A-Share Listed Companies Community and Public * Industrial cooperation and development * Information disclosure

* Public welfare and charity * Public welfare volunteer activities

4344

Community Responsibility

Working Group

Information Security Working

Group

Quality and Service Working

Group

Product Innovation Working

Group

Supply Chain Management

Working Group

Employee Responsibility

Working Group

Production Safety Working

Group

Climate Change Response

Working Group

Environmental Management

Working Group

Business Ethics Working

Group

Corporate Governance

Working Group2025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing Unlock New Quality Productive Forces Drive High?Quality Development to Build a Sustainable Future Together on a New Journey

Material Issues Analysis

Identification of Material Issues Financially Material Impact

Issue Horizon Risk/Opportunity Description Response Strategy

Based on a comprehensive assessment of the continuity of ESG topics and the consistency of management practices and considering that no

material changes in business operations or business model occurred during the reporting year Estun determined that its existing materiality * Maintain a full?process quality management system * Quality issues could lead to major

framework remains relevant and applicable. Accordingly the Company has continued to adopt the material issues identified in 2024 together with covering product design and manufacturing fostering a financial losses such as product

quality?focused culture.the corresponding management approach. The methodology and process for identifying and assessing material issues are detailed in the Estun recalls.Product Quality * Operate the Estun Reliability Testing Center with specialized

Automation Co. Ltd. 2024 Environmental Social and Governance (ESG) Report. Estun will continue to monitor changes in its internal operations Long?term * High?quality products increase

Management equipment and a dedicated testing team applying reliability

and external environment. Material issues will be reviewed and updated as necessary in response to significant developments or periodic customer trust enhance the standards that exceed national and IEC requirements to

reassessments ensuring ongoing alignment with the Company's sustainability practices and stakeholder expectations. Company's reputation and grow improve R&D quality and product reliability.market share.For details refer to the "Product Quality and Safety" section.Estun's Dual Materiality Issues Matrix

* Maintain a comprehensive service assurance system and

Governance Environmental Social * Deteriorating customer global service network to provide timely thorough after?sales

High dimension dimension dimension

relationships could lead to

support.

1 Corporate governance 13 Industry cooperation

customer attrition negatively

and development Customer Service * Conduct regular customer satisfaction surveys and maintain a Long?term impacting market performance.

2 Compliance and risk Employee training and Management customer complaint handling process to respond promptly to management 14 * Strong customer relationships drive

1 development feedback.

20 23 Business ethics and business growth and create new 14 322 anti?corruption 15

Production safety and For details refer to the "Customer Relationship Management"

occupational health opportunities.

15 16 section.

5 4 Protection of investor 19 16 Employee rights and 13 21 rights and interests18 benefits

6 17 3 5 Digital transformation Intellectual property * Strengthen supply chain management by incorporating ESG

4 2 17Environmental protection factors into supplier evaluation and selection.

76

8 24 management system Information and data * ESG risks in the supply chain * Implement a supply chain risk management plan to 18

9 Sustainable Supply Medium- to

7 Green technologies

security could cause instability affecting continuously identify and monitor procurement risks.

10 and products 19 Sustainable supply chain

Chain long?term

production and operations. * Promote sustainable practices among suppliers.

11

8 Promoting green 20 Customer service For details please refer to the "Sustainable Supply Chain" packaging management

12 section.

9 Pollution and waste 21 Responsible marketingmanagement

10 Material recycling 22 R&D and innovation * Data breaches could violate

11 Climate change and energy management 23

Product quality laws and regulations leading to * Enhance the information security management system

management compliance risks and financial strengthening data controls and cybersecurity protection.Low Significance of Impact on the Company's Financial Performance High 12 Water use and 24 Public welfare and Information and Data Medium- to management charity penalties while also eroding * Standardize information confidentiality management and raise

Security long?term customer trust. employee security awareness.* Strong information and data For details please refer to the "Information Security" section.Risk and Opportunity Analysis for Financial Material Issues security helps maintain customer relationships.The Company has comprehensively assessed the impact timeframe risks and opportunities associated with financially material sustainability

issues. It has developed corresponding response strategies to rigorously control relevant risks and actively seize opportunities thereby ensuring * Weak corporate governance could * Maintain a sound efficient governance structure with

the Company's sustainable development. lead to poor decision?making clearly defined responsibilities and standardized operations.Corporate and ineffective internal oversight Ensure Board independence and diversity to support fair

Long?term

Financially Material Impact Governance harming long?term development well?informed decisions

Issue Horizon Risk/Opportunity Description Response Strategy shareholder interests and market For details please refer to the "Corporate Governance"

reputation. section.* R&D investment carries financial

* Adhere to short? medium? and long?term R&D strategies.risk as it may not yield expected

Increase R&D investment build technology innovation * Consistently strengthen the internal control and compliance

commercial returns.platforms and pursue breakthroughs in core technologies. * Failure to meet compliance management system focusing on audit internal control and

* R&D innovation enables timely

R&D and innovation Long?term * Use the IPD model to advance technology R&D and product requirements or inadequate risk compliance.response to evolving customer

development based on macro trends corporate strategy Compliance and Risk Medium- to management could result in * Enhance the tax management system to continuously improve

needs enhancing the Company's

customer needs and technology roadmaps. Management long?term financial losses legal disputes and tax compliance capabilities.competitiveness and industry

For details refer to the "R&D Innovation" section. reputational damage. For details please refer to the "Risk and Compliance

leadership.Management" section.

4546

Significance of Impact on Economic Environmental

and Social Sustainability2025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing Unlock New Quality Productive Forces Drive High?Quality Development to Build a Sustainable Future Together on a New Journey

Major Emerging Risk

Risk Category Risk Description and Potential Impact Response Measures

* The global division of labor is shifting from an * Implement supply chain backup and localization

efficiency?first model to one that balances security strategies. Diversify supply chain models to

Risk and Compliance Management and resilience. Over?concentrated supply chains become self?sufficient and agile avoiding face disruption risks from unforeseen events over?reliance on any single model to strengthen

Supply Chain which could affect business continuity and cause resilience.Resilience & price volatility for critical resources. * Promote diversification and regionalization of

Estun consistently refines its risk management framework and strengthens its internal control and compliance systems. By building a solid EconomicGlobal Industrial * Policy divergence and rising trade rule uncertainty operations and supply networks. Strengthen local

internal governance foundation the Company supports efficient corporate governance and stable operations. Restructuring among major economies create long?term service capabilities in different regions to adapt

challenges for market access regulatory to varying regulatory environments and disperse

compliance and investment returns across systemic risks.jurisdictions increasing the complexity and cost of For details see the "Sustainable Supply Chain"

global operations. section.* Increase local value?added activities in the

Governance * Changes in international trade and investment United States to reduce the share of imported policies combined with rising geopolitical tensions

components subject to tariffs. Improve customs

could materially harm the Company's business

Estun has established an effective risk management structure. The Audit Committee established under the Board monitors and reviews operational procedures to ensure tariff assessments apply International and financial results. Trade measures such as

risk management performance to ensure risk stays within acceptable limits. The Audit Department as the internal audit function conducts day-to-day only to specific components covered by relevant Trade Geopolitical new tariffs import/export restrictions technology

audits including verifying the accuracy and completeness of financial information and assessing the design and implementation of internal controls. tariff codes not entire products.Restrictions controls and economic sanctions are highly

* Expand operations in Europe including

Building on this foundation the Company has established a Three Lines of Defense model for coordinated interconnected risk management. This unpredictable. Frequent U.S. tariff adjustments in

establishing local manufacturing facilities to

creates a full-process closed-loop risk prevention and control system characterized by front-line prevention mid-line coordination and back-line 2025 significantly increased market uncertainty and

better manage and mitigate the potential impacts

supervision which embeds risk management throughout the business chain. Internal policies including the Estun Risk Management System the could directly affect the Company's performance. of U.S.-China trade tensions.Internal Control System and the Internal Audit System provide clear rules and procedures for risk management and internal control compliance.Additionally the Company consistently improves its ESG management system. The ESG Leadership Group identifies and manages ESG risks and

opportunities ensuring effective oversight of ESG risks that could materially impact the Company's business. Risk Culture Development

In 2025 the Company delivered specialized risk management training through the Estun Academy Online platform embedding the Three

Lines of Defense concept at the operational level. The training enhanced employees' ability to identify risks and manage daily operations while

First Line of Defense Second Line of Defense Third Line of Defense fostering a culture of participation and proactive prevention.Crisis Event Management

Core business departments Support functions Assurance function

To prevent and respond effectively to emergencies the Company has established a systematic institutionalized crisis management and response

Sales Procurement R&D Finance Legal Human Resources Internal Audit.Quality EHS Process Digital etc. mechanism. This framework ensures orderly execution of emergency response decision-making handling and post-event improvement Production etc.thereby containing crises and minimizing major harm or negative impact.Crisis Event Closed?Loop Management Mechanism

Pre?Event Prevention & Early Warning

* Department and subsidiary heads serve as the first responsible persons for early warning. They must regularly identify risks and ensure timely

alerts and proactive control.Strategy and Management Approach * The Company encourages and standardizes the internal reporting of early warning information. Any employee may report risks through

dedicated hotlines.* The Company also explores digital early warning tools to strengthen its forward?looking capabilities such as using AI to scan public

Risk Management information for supply chain disruption risks.Estun has built a comprehensive risk management system strengthened its risk prevention mechanisms and cultivated a risk-aware culture. The In?Event Response & Handling

Company operates a proactive risk control framework spanning pre-event prevention and early warning in-event response and handling and

* Activation and Assessment: When an incident occurs the Company immediately activates the response plan and forms a crisis response team

post-event review and improvement. This approach strengthens operational resilience and ensures that all business activities remain healthy

to assess the nature and impact of the event.and stable. During the reporting period the Company experienced no major risk incidents.* Unified Command and Action: The crisis response team coordinates command and implements measures based on the incident type.* Compliant Disclosure and Communication: The Company prioritizes the protection of investors' legitimate rights and interests. According to

Strengthening Risk Management disclosure regulations it promptly and transparently reports to authorities and issues public announcements. The Company also establishes

dedicated hotlines to respond to investor inquiries keeping communication channels open.The Company has defined appropriate risk tolerance levels and designed corresponding internal control procedures. It has developed a series

* Seeking Professional Support: When necessary the Company engages independent experts (e.g. legal public relations technical appraisal)

of Internal Control Manuals covering eight key areas and consistently updates the Internal Control Checklist. ESG risks including those related to to assist in handling the event ensuring that response measures are objective and credible.human resources information security R&D management quality management and business ethics are fully integrated into the enterprise risk

management framework. In 2025 the Company advanced risk governance and internal control upgrades using budgeting contracting process Post?Event Review & Improvement

management and digitalization as primary control tools. * After the crisis is resolved the Company conducts a comprehensive review to evaluate response effectiveness and document lessons learned.

47 482025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing Unlock New Quality Productive Forces Drive High?Quality Development to Build a Sustainable Future Together on a New Journey

Internal Control and Compliance

Total tax contribution Domestic subsidiaries rated as representing Tax knowledge training sessions

In 2025 to strengthen internal control and compliance management Estun leveraged the COSO framework and the 18 internal control

Class A taxpayers in 2025

guidelines as core tools to advance its compliance governance efforts. During the reporting period the Company had no material internal RMB 87.76 million 21 % 4

control deficiencies in financial or non-financial reporting. 6 of all domestic subsidiaries

Improving Internal Control Management

The Company issued 5 internal control-related policies including the Guidelines for Internal Control Process Optimization. It completed Fair Competition

internal control special audits for the entire sales process and R&D project management which refined internal control details in key Estun strictly complies with the Anti-Monopoly Law of the People's Republic of China the Anti-Unfair Competition Law of the People's Republic

areas. During budgeting and control system-based threshold controls strengthened the rigid constraints of budget execution. In digital of China the Several Provisions on Prohibiting Infringements upon Trade Secrets and all applicable anti-monopoly and fair competition laws in

development the successful launch of the CRM and SRM systems along with BI reports further optimized business processes to the countries and regions where it operates. To formalize this commitment the Company conducts all business activities based on the principles

consistently reinforce the foundation for enterprise risk prevention. of fair and free competition.Internal Audit Supervision Maintaining Fair Competition Order

The Company developed an annual audit plan covering core business activities key matters and high-risk areas across headquarters

and subsidiaries. Issue rectification was tied to performance assessments to ensure effective resolution of audit findings. In 2025 the The ESTUN Code of Conduct requires the Company to treat investors customers suppliers competitors and employees fairly. No employee

Company completed 19 audit projects spanning procurement management sales operations financial management and anti-corruption. may engage in fraud by altering hiding or misusing proprietary information misrepresenting material facts or participating in other unfair

These audits drove 43 issue rectifications and established a "discovery → rectification → verification" closed?loop management system business activities. The Company commits not to make false or misleading statements about competitors not to maliciously disparage them

effectively preventing operational risks. not to illegally collect their trade secrets or other confidential information and not to collude with peers to fix prices or disrupt market order

thereby working with peer companies to maintain a fair competitive environment. Additionally anti-unfair competition content is included in

Legal Compliance Management mandatory compliance training for new hires to ensure employees understand the boundaries.To improve governance the Company systematically advanced its legal compliance system. At the operational level it optimized templates The Company also addresses anti-unfair competition in its Partner Code of Conduct and Channel Partner Cooperation Agreements which

for all business contracts and synchronized them to the CRM and SRM systems thereby strengthening transaction compliance and requires suppliers distributors and other partners to adhere strictly to relevant requirements. These documents specify authorized sales

efficiency from the start. At the organizational and policy level the Company established its own law firm in April 2025 supported by the regions prohibit sales outside those regions and forbid partners from providing false information or acting contrary to good faith. Partners

Estun Corporate Lawyer Management Measures and the Litigation Management System. This achieved a strategic upgrade of legal risk are also strictly prohibited from engaging in malicious low-price competition. Through these measures Estun works with its partners to

management toward specialization embedded integration and full-process coverage. maintain fair business competition. The Company has established multiple channels including email and a channel platform system to

receive and handle violation complaints. Handling results are publicly communicated to all channel partners in real time through the Market

Violations and Penalties section of the channel platform system. During the reporting period the Company received no reports or lawsuits

Legal risk control training sessions Total legal risk control training hours Total attendances in legal risk control training

regarding unfair competition practices.

33.5310

Responsible Marketing

Estun strictly complies with the Civil Code of the People's Republic of China the Advertising Law of the People's Republic of China the

Tax Management Trademark Law of the People's Republic of China and other relevant laws and regulations. Upholding the principle of responsible marketing

Estun fulfills its corporate tax obligations in strict accordance with domestic and international tax laws and regulations. These include the Law the Company has established a review and oversight mechanism for marketing materials to regulate product labeling marketing and

of the People's Republic of China on the Administration of Tax Collection the Enterprise Income Tax Law of the People's Republic of China and customer sales activities. This ensures that customers receive complete and accurate product and service information. Additionally the

applicable international tax rules. During the reporting period the Company had no major tax violations and was not involved in any significant Company provides responsible marketing training to sales personnel to protect customer rights effectively.tax-related litigation or arbitration.Establishing a Marketing Strictly Reviewing Enhancing Marketing

Improving Tax Management Compliance Mechanism Marketing Content Compliance Awareness

The Financial Management Center has full responsibility for the Company's tax management. By establishing a systematic tax compliance Internally the Company strengthens The Iron Triangle sales supervisors and The Company clearly defines ethical

framework it defines tax management principles operational standards and process requirements standardizes tax payment practices supervision and management of marketing the Legal Department review and approve standards for communicating with

and dynamically tracks changes in domestic and international tax policies to update tax operation guidelines accordingly. This ensures activities strictly prohibiting exaggeration marketing materials and promotional customers and the public requiring

timely and accurate tax filings and payments to effectively control tax risks. and false advertising. Non-compliant content step by step before release. This compliance with industry norms in

activities are promptly addressed and ensures that all materials accurately and marketing activities to avoid improper

Tax Risk Management publicly disclosed as a warning. Externally rigorously reflect the features and value of promotion. Regular training for marketing

The Company conducts regular tax self-assessments selecting 1-2 entities within the consolidated group annually for comprehensive the Partner Code of Conduct strictly restricts the Company's products and services thus personnel emphasizes the importance

tax self-assessment and risk evaluation. By identifying potential issues and implementing corrective actions it consistently improves partners by prohibiting false or misleading avoiding false advertising. of compliance helping them understand

tax compliance levels. The Company actively cooperates with tax authorities during inspections and audits and engages independent statements in marketing and external relevant laws and regulations and ensuring

third-party audit firms to conduct special audits of its tax management. This internal-external audit mechanism enhances tax management business interactions. their activities meet legal requirements.efficiency and enables iterative improvements to the tax management system.Tax Compliance Training

Responsible marketing Total attendances in responsible Total employee responsible Average responsible marketing

The Company strengthens its tax team by organizing tax knowledge training for its tax study group consisting of general ledger and tax training sessions marketing training marketing training hours training hours per employee

management personnel from the Group and its subsidiaries. It conducted 4 training sessions using an online + offline model to interpret

the latest tax policies while adding in-depth courses on cross-border tax risk prevention and R&D expense super-deduction. These 86 122 6853 56

sessions enhanced the tax compliance awareness of relevant personnel and strengthened their tax compliance management capabilities.

49 502025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing Unlock New Quality Productive Forces Drive High?Quality Development to Build a Sustainable Future Together on a New Journey

Protecting Trade Secrets Business Ethics and Anti-Corruption

Estun has built a trade secret protection system covering both internal employees and external partners to prevent trade secret leakage and

improper benefit transfers. Estun consistently follows an integrity-based business philosophy strictly adheres to business conduct standards and maintains a zero-tolerance

policy toward any form of corruption or behavior that violates business ethics. The Company participates in market competition lawfully and works

Controlling Employee Standardizing Market with partners to build a strong defense line for business ethics.Conduct Competition Constraining Partners

The Employee Handbook and the The ESTUN Code of Conduct sets explicit The Partner Code of Conduct states that

Non-Compete Agreement clearly require market conduct standards by prohibiting partners must not disclose information Upholding the Business Ethics Defense Line

that during employment and for a specified employees from profiting through illegal about their cooperation projects with

period after termination employees must not acquisition or use of others' trade secrets Estun to the media without the Company's

Estun strictly complies with the Civil Code of the People's Republic of China the Interim Provisions on Prohibition of Commercial Bribery and

engage in competitive activities or use the thereby avoiding civil and criminal liability. consent which prevents risks and disputes

other applicable laws and regulations in the countries and regions where it operates. In 2025 with the goal of enhancing ESG governance the

Company's trade secrets for personal gain. arising from information leakage.Company built a business ethics and anti-corruption management system integrating cultural guidance systematic prevention and targeted

enforcement. During the reporting period the Company had no violations or illegal incidents related to corruption bribery conflicts of interest

fraud money laundering or unfair competition nor any major legal disputes concerning business ethics or anti-corruption.Strategy and Management Approach

For key risk areas closely tied to business operations Estun regularly reviews risks in each business module defines control measures and

oversight mechanisms and implements closed-loop management to keep risks under control. Regular risk assessments are conducted and

improvement measures are developed based on findings to further strengthen the Company's risk prevention and control capabilities. The The Board of Directors serves as the highest decision-making body for business ethics and anti-corruption

Company also regularly evaluates the effectiveness of its risk management and internal control systems and conducts periodic special audits. Improving the management. The Audit Committee established under the Board coordinates and supervises the Company's

These activities ensure that the internal control and compliance system operates effectively to prevent operational risks. In 2025 the Company Management audit and oversight activities to ensure compliance and transparency in decision-making and execution. Under the

conducted 10 risk identification and assessment activities for internal control audit projects. It also completed systematic internal control special System Audit Committee's leadership the Audit Department carries out audit and oversight functions to enhance business

audits for the entire sales process and R&D project management which refined internal control details in key areas and strengthened the ethics monitoring.foundation for enterprise risk prevention.Identify Risks Continuous Monitoring The Company effectively implements policies including the Estun Reporting Management System the Estun

Business Gift Management System and the ESTUN Code of Conduct. These policies clearly define provisions on

Evaluate Existing Yes anti-fraud anti-money laundering anti-corruption fair competition and anti-monopoly and conflict of interest

Control Measures Refining No covering the Company's directors all employees and all supply chain partners. In 2025 the Company developed Management

Analyze and Evaluate Risks Develop an Improvement Plan the Anti-Corruption Anti-Money Laundering and Economic Sanctions Policy (Draft) which further prohibits

Are the controls effective and Policiesdonations to political parties party officials or candidates for public office on behalf of the Group and provides

properly implemented

Consider potential impact and guidance on charitable donations and contributions to ensure that all activities are conducted with integrity and

likelihood of occurrence the highest ethical standards.Significant Risks Implement Control Measures

Led by the Legal Department the Company has established a control mechanism of pre-transaction compliance

Estun's Risk Review Process

Optimizing the review in-transaction dynamic monitoring and post-transaction rapid response. For areas with concentrated

Prevention and authority such as procurement sales and R&D contract compliance review nodes have been embedded. Special

Control System audits on business ethics and anti-corruption are conducted consistently enhancing the standardization and

Indicators and Targets transparency of business conduct and effectively preventing integrity risks.Indicator / Target Achievement Status in 2025

Zero major risk incidents reported Target achieved The Company promotes business ethics and anti-corruption through internal websites and the Estun Style

enterprise WeChat page featuring topics such as "Strictly Preventing Conflicts of Interest and Prohibiting Crossing Fostering

Provide specialized training for compliance administrators; complete compliance Red Lines" and "Employee Professional Ethics Red Lines." Using case studies and legal interpretations these Culture and

Target achieved

promotion and training for all employees initiatives reinforce integrity awareness and foster a culture where compliance is non-negotiable and violations are Values

actionable.Target achieved

Conduct 12 audit projects

19 audits conducted in 2025

51 522025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing Unlock New Quality Productive Forces Drive High?Quality Development to Build a Sustainable Future Together on a New Journey

Information Security

Special business ethics and Cooperative entities audited for anti-commercial Anti-corruption training

anti-corruption audits bribery agreement signing and filing sessions with

3 139 2 273 Estun places high importance on information security and privacy protection. To fully safeguard its information and data security the Company attendances strictly complies with relevant laws and regulations including the Cybersecurity Law of the People's Republic of China the Data Security Law of

the People's Republic of China and the Personal Information Protection Law of the People's Republic of China.Anti-corruption training sessions for directors with representing

1 9 100 Governanceattendances % coverage

Estun has established a comprehensive information security and privacy protection management system through a multi-level governance

Anti-corruption training sessions for employees with model of Board supervision executive responsibility and specialized department execution. By linking information security performance to

management and personnel assessments and incentives the Company consistently improves its overall information security governance

1 264 attendances capabilities and risk prevention levels.

Board of Directors

The Board oversees the implementation of information

security initiatives. It ensures that information security strategies

Reporting and Whistleblower Protection and policies align with the Company's overall business objectives and that all security policies and systems are effectively enforced.Estun has established the Estun Reporting Management System which defines violation types reporting procedures whistleblower protections

and management measures thus standardizing reporting management to ensure fair effective and timely handling of potential corruption reports. Information Security Management Committee

The Company provides multiple reporting channels including hotlines and email and encourages employees customers suppliers and other third Chaired by the General Manager the Committee is responsible for the Company's

parties to report any behavior that may violate business ethics laws regulations or other relevant policies either anonymously or by name. overall information security management including formulating information security

strategies and plans supervising the operation of the information security management

Upon receiving a report designated investigators from the Audit Department Reporting Channels system and coordinating the resolution of major security issues.handle and investigate the matter prepare an investigation report propose

handling recommendations and report findings to the Chairman of the Phone Reporting (Landline): +86 25 52785932 Information Security Management Department (Digitalization Department)

Board to ensure the independence and fairness of investigation results. The Email Reporting: sjjb@estun.com The Department leads the development and management of the information security system

Company ensures strict confidentiality for all whistleblower information including the formulation and improvement of information security strategies policies processes and Mail Reporting: Estun Audit Department No. 1888 Jiyin

technology solutions. It oversees the daily operation and maintenance of information systems performs

treats report materials as confidential documents with access strictly limited Avenue Jiangning District Nanjing China real-time monitoring and promptly addresses security incidents. Additionally it provides technical support

to those with a need to know and strictly prohibits any form of retaliation

In?Person Reporting by Appointment and training to other departments thereby fostering company-wide information security awareness.against whistleblowers or related personnel.Functional Departments

These departments are responsible for managing information security within their respective areas ensuring

the implementation of information security policies and systems. They also cooperate with the Information Security

Supply Chain Integrity Management Management Department on security inspections and assessments to promptly rectify any identified issues.Estun's Information Security Governance Structure

Estun strengthens business ethics and compliance management with its

suppliers. The Company has established the Supplier Commitment Letter

The Company consistently strengthens its information and data security framework. In

and the Partner Code of Conduct which clearly define integrity and business

2025 based on ISO 27001 requirements and its own operational context the Company

ethics requirements for suppliers. Suppliers must strictly comply with relevant

conducted an annual review and update of its information security management systems

national and local laws regulations and industry standards regarding fair

and data protection policies. It developed and improved a range of internal management

trade integrity and compliance. They must resolutely oppose any form of

documents including the Information Security Management Manual the Information

commercial bribery and refuse to accept or participate in bribery in business

Security Risk Management Procedure and the Personal Privacy Policy to continuously

dealings. Suppliers are encouraged to promptly report any improper conduct

promote standardized information security management.through the Company's official reporting channels. The Company maintains a

zero-tolerance policy toward fraud dishonesty malicious collusion in bidding Supplier Commitment Letter signing rate The Company conducts an annual internal audit and management review of its information

malicious withdrawal from bidding or malicious breach of contract. Upon 100 security management system to ensure effective operation. During the reporting period investigation and verification it will cease cooperation with the violating % the Company completed an internal information security audit of its core information

supplier and place it on a blacklist. Additionally the Company emphasizes system and key business system while implementing changes based on identified risks

integrity promotion with all suppliers. During major holidays it sends letters and improvement recommendations. As of the end of the reporting period the Company

via internal systems and email to advocate for honest cooperation jointly had achieved ISO 27001 Information Security Management System certification covering Estun's ISO 27001 Information Security

fostering a fair transparent and integrity-based cooperation environment. Management System CertificateEstun Automation Co. Ltd. and Estun Robot Engineering Co. Ltd.

5353 542025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing Unlock New Quality Productive Forces Drive High?Quality Development to Build a Sustainable Future Together on a New Journey

Strategy and Management Approach Impact Risk and Opportunity Management

Estun has adopted an information security policy centered on four principles: all-employee participation to ensure information security Estun makes information security risk assessment a core component of its management system. The Company has established the Information

prevention-first to strengthen risk control continuous improvement to achieve excellence and customer-first to create a secure future. The Security Risk Management Procedure and built a comprehensive information security risk management framework which defines risk

Company consistently enhances its information security management system by adopting advanced protection technologies strengthening assessment standards handling procedures and emergency response requirements. It systematically identifies risks and opportunities that need

network security and data controls and raising employee security awareness. These efforts fully safeguard information and data security to be addressed preventing and mitigating information security risks to ensure the security of the Company's information assets and stable

thereby supporting standardized operations and stable international expansion. During the reporting period the Company recorded no major business operations.cybersecurity incidents data breaches or compliance violations related to data or personal information protection.Information Security Risk Management

Risk Identification Risk Analysis & Assessment Risk Treatment & Improvement

* The Company has enhanced network boundary protection and endpoint security management which improves

its ability to monitor and respond to malicious attacks and abnormal behavior. The Company uses multiple methods The Company uses standardized information The Company develops a risk treatment

Network * The Company has consistently strengthened the security of its information technology systems aiming to to identify information security risks. It security risk assessment methods and tools to plan based on the results of its

Security achieve stronger endpoint management malicious attack prevention data loss prevention and system stability. considers threat sources threat events and conduct regular assessments. It determines information security risk assessments. It

Protection * The Company has developed information security?related business continuity plans strengthened high

vulnerabilities to pinpoint risk factors that risk levels and dynamically updates the list identifies all necessary control measures

availability and operational monitoring of core systems and regularly conducts disaster recovery drills to

enhance business continuity assurance. It has also strengthened system operation standards and patch could lead to the loss of information assets. of key risks to provide a reliable basis for risk and ensures the orderly execution of risk

management. treatment. treatment activities.* The Company has implemented data classification grading and backup and recovery mechanisms to reduce Emergency Management

the risk of data loss and damage.Data * The Company promotes personal information protection and full?lifecycle data compliance management The Company has established a comprehensive data and information leakage emergency management mechanism covering pre-event

Compliance integrating data compliance requirements into its internal control and risk management system.Management risk identification in-event rapid response and post-event rectification and improvement. This ensures prompt detection effective * The Company has enhanced compliance assessment and management for cross?border data flows in the handling and minimal impact of any data leak. The Company has developed the Data and Information Leakage Emergency Plan to define

context of overseas business expansion ensuring that relevant activities comply with domestic and international

emergency response management procedures. It regularly conducts information security emergency drills tabletop exercises and

data protection laws and regulations.training sessions to continuously test and improve the effectiveness and operability of its emergency plans. These measures enhance the

Company's ability to respond to and handle security incidents efficiently and reduce the impact of data and information leaks on business

and compliance.* The Company has established an information security incident reporting and handling mechanism. Employees

can promptly report security incidents system vulnerabilities or suspicious activities through designated

Information internal channels.Security * The Information Security Management Department classifies and assesses reported incidents. Based on

Management severity it organizes relevant departments to handle isolate repair and recover activating emergency response Indicators and Targets

procedures when necessary.* The Company documents and reviews incident handling processes and outcomes while also driving the 2025 Target 2025 Actual Achievement Status

implementation of corrective measures.Core business system security hardening completion rate ≥ 95% 100% Target achieved

Information security training coverage for IT personnel ≥ 90% 100% Target achieved

* The Company includes information security training in new employee orientation covering its security policies

Information Major information security incident rate 0 0 Target achieved

Security basic security knowledge and common risk prevention methods.Training & * The Company regularly organizes specialized information security training for all employees inviting industry Third?party supplier information security review completion rate ≥ 90% 95% Target achieved

Communication experts to present on the latest security trends case studies and response strategies.* The Company displays information security posters in internal office areas and plays security tips on electronic Key data backup availability ≥ 99.9% 100% Target achieved

screens fostering a strong information security culture.Information security training sessions Total information security training hours Information security training attendances

* Network Security: Partners must strictly comply with the laws and regulations of their respective countries 6 54 403

regarding network security and personal data protection refraining from infringing on end users' freedom of

Third?Party communication or privacy rights.Management * Personal Information Protection: Partners must collect use and process personal information in compliance Offensive and defensive drills Information leakage incidents

with the latest personal information protection regulations. They must ensure that end users are informed of

and provide written consent for the intended use of any personal information provided to Estun. 2 0

55 562025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing Unlock New Quality Productive Forces Drive High-Quality Development to Build a Sustainable Future Together on a New Journey

3 Pursuing Green

Development to

Build a Sustainable

Future

Contributing to UN SDGs

57 582025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing Unlock New Quality Productive Forces Drive High-Quality Development to Build a Sustainable Future Together on a New Journey

Environmental Management Controlling Environmental Risks

Identification of Environmental Aspects

Estun strictly complies with national environmental protection laws and regulations including the Environmental Protection Law of the People’s The Company systematically identifies environmental aspects following the Environmental Aspect Identification and

Republic of China. The Company has elevated environmental management to a strategic priority and continuously improves its environmental Evaluation Control Procedure. For significant aspects identified it develops management plans emergency plans

management system. It has developed a full-process governance model driven by senior leadership aligned with system certification and and control measures conducts hazard inspections and monitors corrective actions thereby effectively preventing

integrated with performance management which enables effective control of environmental risks across operations and supports regional environmental risks. During the reporting period through monthly special inspections and daily irregular patrols the

environmental improvement and national ecological conservation. Company identified 36 environmental risk points. Responsible personnel rectified all immediately achieving a 100%

rectification rate.Environmental Incident Emergency Response

Improving Environmental Management

During the reporting period the Company revised its Environmental Emergency Response Plan and classified its

environmental risk level as “general” . The revised plan was submitted to the Nanjing Jiangning Ecology and Environment

Environmental Management Structure and Systems Bureau for approval and record filing.The Company has established an Environment and Safety Management Committee chaired by the General Manager.The committee oversees an EHS Management Department which is responsible for approving environmental protection * The Company installed shut-off valves at rainwater * Three rounds of emergency response drills for

systems and driving environmental initiatives. The Company strictly enforces key environmental policies including the discharge outlets at the Jiyin Avenue Yanhu Road hazardous waste transfer and containment of

Environmental Protection Management System the Energy Management System the Energy Management Manual and Shuige Road plants for use during emergency decontamination wastewater from spil ls were

and the Environmental Social and Governance (ESG) Indicator Management Manual to ensure effective environmental conditions ensuring that accident wastewater is conducted across the three plants focusing on

management. During the reporting period the Company revised and formally implemented two environmental effectively contained and prevented from being decontamination wastewater containment. These

management policies. The Production Safety Accident Management System was updated to the EHS Accident discharged into the external environment. drills ensure that sufficient personnel are proficient in

Management System clarifying procedures for addressing environmental pollution and accidents arising from production operating the shut-off valves.incidents. The Work Safety Rewards and Penalties System was updated to the EHS Rewards and Penalties System

introducing new environmental management?related rewards and performance deductions.Environmental Indicator Monitoring

In accordance with the Environmental Protection Management System the Company implements controls for wastewater

Environmental Management System Development exhaust gas noise and solid waste management. It clearly defines emission limits applicable standards and monitoring

The Company conducts internal environmental management audits and undergoes external audits by third?party frequencies for each pollutant indicator.professional firms. It has achieved ISO 14001 Environmental Management System certification covering the design

development and production of AC servo drive systems permanent magnet AC servo motors and electro?hydraulic * The Jiyin Avenue plant uses a combination of manual and automated monitoring. Automated equipment

servo systems; the design development and production of industrial robot bodies and electrical control cabinets for monitors pollutant parameters in real time and is connected to provincial and municipal ecology and

mechanical equipment; the machining of industrial robot components; and the design development production and environment bureaus. The online monitoring system is entrusted to Nanjing Zhida Automation Group Co. Ltd.related management activities of industrial intelligent manufacturing systems (including industrial robot applications). for 24-hour operation and maintenance. Manual monitoring is entrusted to Jiangsu Yanlan Detection Technology

Co. Ltd. a third-party testing organization with CMA certification.Environmental Management Target Assessment

Based on actual business conditions the Company sets science?based environmental targets breaks them down into Environmental Impact Assessment

measurable indicators and signs safety and environmental responsibility agreements with each department. These

agreements are integrated into the departmental performance assessment system to ensure accountability. Additionally The Company conducts environmental impact assessments and completion acceptance in accordance with regulatory

the Company signs environmental protection agreements with management setting aside a portion of compensation as requirements. During the reporting period the machining workshop robot component production line renovation

an environmental protection incentive fund. The fund is distributed based on performance target achievement status project passed an on?site expert review met the conditions for environmental protection completion acceptance and

systematically advancing the realization of environmental goals. successfully completed the process.Environmental Goal Decomposed Indicators Achievement Status

100% compliance for exhaust gas emissions

Zero environmental pollution 100% compliance for wastewater discharge

All targets achieved

incidents 100% compliance for boundary noise levels

100% compliance for hazardous waste disposal

Welding fume detection

59 602025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing Unlock New Quality Productive Forces Drive High-Quality Development to Build a Sustainable Future Together on a New Journey

Raising Environmental Awareness

For energy management the Company has developed and implemented internal

The Company organized personnel involved in hazardous waste management to participate in specialized training management documents including the Energy Management Manual and the

conducted by the Nanjing Ecology and Environment Bureau. All 16 participating employees passed the examination Energy Management Implementation Plan. It regularly conducts internal audits

and obtained certificates enhancing the technical skills and environmental awareness of relevant staff. management reviews and legal compliance assessments to ensure continuous

improvement of the energy management system in line with ISO 50001 and relevant

regulatory requirements. During the reporting period the Company revised and

released an updated Energy Management System specifying the composition of the

Violations of environmental protection laws and regulations Energy Management Leadership Group providing assessment details and refining Environmental protection training sessions

departmental responsibilities for energy management. The Company passed the ISO

0 2 50001 Energy Management System surveillance audit and conducted one energy

management training session. The training covered energy management systems

Environmental protection investment with approx. regulations and standards energy?saving technologies and case studies aiming to

1.98 500 enhance employees' understanding of energy consumption reduction. Estun's ISO 50001 Energy Management System CertificateRMB million participations

Strategy and Management Approach

Addressing Climate Change To strengthen climate resilience and seize climate?related opportunities the Company conducts detailed climate risk and opportunity assessments.Based on the findings it implements mitigation and adaptation strategies and integrates climate risks into its long?term strategic planning. The Company

accelerates progress toward its dual?carbon goals by enhancing climate resilience optimizing the energy structure and improving energy efficiency. The

Extreme weather events have grown more frequent in recent years and global climate risks continue to escalate. Addressing climate change has

Company also continues to prioritize R&D and innovation in low?carbon technologies and products positioning its support for the new energy industry

become a broad international consensus. As a leading enterprise in its industry Estun places strong emphasis on the risks and impacts of climate

and energy?efficient business (e.g. industrial automation) as core strategic directions. It actively monitors emerging fields and market demands arising

change. Following the Guidelines No. 3 of Shenzhen Stock Exchange for the Self-Regulation of Listed Companies – Sustainability Report Preparation

from the low?carbon transition seizing opportunities in green technology development to lead the industry's green transformation.and referencing the International Sustainability Standards Board's IFRS S2 Climate?related Disclosures the Company has established a science?based

climate governance framework. It identifies and assesses climate?related risks and opportunities develops and implements effective response

strategies and continuously strengthens the climate resilience of its own operations and the broader value chain aiming to become a pioneer in Focus Area Strategy

climate change management within its industry.The Company monitors and analyzes carbon emissions across different processes and sites breaking down reduction

Company targets across business units. It also uses PV systems in its industrial parks and integrates green electricity into

Governance production to reduce operational carbon emissions.Estun has built a climate change governance structure led by the Board of Directors and the ESG Committee with management at the core and The Company responds to customer needs by innovating energy?efficient products and developing comprehensive

various departments branches and subsidiaries serving as the primary implementing bodies. Customers intelligent automated and green solutions for various carbon emission reduction scenarios. This helps customers

consistently improve their carbon emission reduction performance.The Company deeply engages in new energy market segments such as PV lithium batteries new energy vehicles

Board of Directors and ESG Committee hydrogen storage and flow batteries. It identifies industry needs and pain points collaborates with partners to drive Value Chain

technological breakthroughs and promotes carbon emission reduction and resource efficiency across the new

These bodies approve the Company's climate?related strategic plans. They oversee climate?related risks and opportunities energy value chain.review climate targets and receive management reports on climate matters providing recommendations as needed.Enhancing Climate Resilience

ESG Leadership Group The Company recognizes that climate change can introduce both risks and opportunities across its value chain affecting strategy operations and

financial performance. Through systematic risk management and forward?looking planning the Company is strengthening its climate adaptation

This Group coordinates the development of major policies and strategic plans. It identifies climate?related risks and opportunities capacity and long?term resilience in operations supply chains and products.and integrates them into operational considerations. The Group also manages climate targets and drives the orderly

implementation of climate actions and low?carbon development initiatives.Strengthening Physical Risk Response Driving Low?Carbon Operational Transformation

The Company develops specialized emergency plans and By improving production processes using energy?efficient

ESG Working Group allocates emergency supplies for extreme weather events such equipment building smart energy management systems

as floods high temperatures and hail. It also assesses regional and increasing the share of renewable energy the Company

This Group is responsible for executing and advancing climate?related tasks. It manages climate?related indicators and regularly

climate risks during project planning. consistently reduces energy consumption and carbon emissions

reports on progress and target achievement status to the ESG Leadership Group.to mitigate risks such as rising electricity costs and operational

disruptions.

6162

The Oversight The The Execution

Bodies Management Bodies

Bodies2025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing Unlock New Quality Productive Forces Drive High-Quality Development to Build a Sustainable Future Together on a New Journey

Climate?Related Risks and Opportunities

Risk/Opportunity Potential Financial Risk/Opportunity Potential Financial

Risk/Opportunity Description Response Measures * Risk/Opportunity Description * Response Measures

Type Impact Type Impact

Physical Risks Opportunities

* Improve energy consumption monitoring * As the low-carbon economic transition gains * Seize market opportunities by leveraging R&D

* Rising average temperatures will significantly increase accuracy introduce advanced production momentum demand for green low-carbon products strengths in industrial automation to consistently

electricity consumption for air conditioning in Estun's processes and equipment phase out outdated Products & and services may increase. Developing and offering expand the green product portfolio and provide Revenue ↑

offices and plants leading to higher electricity costs high-energy-consumption equipment and Services low-carbon products services and solutions could innovative low-carbon transformation solutions

Operating costs ↑

and increased carbon emissions. actively promote energy-saving technologies. help the Company better adapt to market needs and across industries thereby reducing downstream

Acute Risk Revenue ↓

* Extreme weather events such as extreme heat heavy * Develop and regularly update emergency plans achieve additional growth. value chain carbon emissions.Asset value ↓

rainfall river flooding and coastal flooding could for extreme weather and natural disasters stock

cause production interruptions equipment damage emergency supplies and conduct regular drills * Introduce advanced production processes and

and employee commuting difficulties. to consistently strengthen emergency response equipment actively promote energy-saving

mechanisms. * Adopting energy-efficient technologies and technologies and phase out outdated

equipment reduces energy consumption during high-energy-consumption equipment.Resource production lowering operating costs while improving Revenue ↑ * Improve energy monitoring accuracy and

* Reduced rainfall due to persistent high temperatures Efficiency efficiency and supply capacity. Operating costs ↓ promote conservation through awareness

or drought caused by climate change pose significant * Consider regional climate risks during project * Strengthening resource recycling reduces waste and campaigns to reduce energy costs.challenges including water scarcity power shortages selection and planning.Operating costs ↑ production costs. * Establish a comprehensive resource recovery

Chronic Risk rising electricity prices and operational interruptions. * Gradually increase the share of renewable

Asset value ↓ and treatment system to achieve waste

* Sea-level rise could affect the normal operation of energy such as solar power in production and reduction and resource utilization.coastal headquarters branches and subsidiaries of operations.the Company incurring relocation costs.* With ongoing R&D and innovation in green

* Deploy PV power generation expand clean

technologies and supportive policies renewable

Transition Risks energy use and gradually increase the share of

Energy Structure energy is becoming more accessible and potentially Operating costs ↓

renewables such as solar power in production

less expensive. Using renewable energy in production

and operations.* Sustainability disclosure requirements from the and operations could lower direct energy costs.* Closely monitor changes in international and

Shenzhen Stock Exchange the Stock Exchange of

domestic environmental and carbon-related

Hong Kong and the European Union will gradually

laws and policies proactively consider policy

strengthen climate-related information disclosure * Proactive response to climate policies can help

adaptability and improve internal management * Actively participate in international certification

imposing new demands on the Company's climate the Company access more international markets

Policy & Operating costs ↑ and compliance disclosure. Market Revenue ↑ and standard-setting to strengthen the

change management and reporting. enhancing global competitiveness and attracting

Regulatory Risk Asset value ↓ * Strengthen energy and carbon emissions competitiveness of its products in global markets

* As carbon trading markets expand and various carbon more international customers and partners.management optimize the energy structure

assets emerge carbon pricing is becoming a key tool

through energy-saving retrofits and advance

for government control over corporate emissions

carbon emission reduction technologies to

increasing the Company’s cost burden associated

reduce operational carbon emissions.with the energy transition.Clean Energy Transition

* Strengthen communication with customers to

* As a Tier 1 supplier to many well-known companies understand their ESG requirements for suppliers The Company expands its renewable electricity sources and accelerates the construction of PV power generation projects including the installation

Estun faces increasing customer expectations and products. Incorporate sustainability of rooftop distributed PV systems across its three plants. In 2025 the plants continued to use third?party?invested PV power generation with a total

Market Risk Revenue ↓

regarding low-carbon practices. Failure to meet these requirements into product R&D highlighting installed capacity of 4621.3 kW. Annual self?built PV power generation reached 4.13 million kWh accounting for 24.85% of total annual electricity

requirements could result in significant loss of orders. the green energy-efficient and low-carbon consumption.features of its products.* Strengthen feasibility studies for low-carbon

* Underinvestment in energy-saving and carbon technology R&D and application to reduce Improving Energy Efficiency

emission reduction technologies compared to peers trial-and-error costs.could cause the Company to fall behind market Operating costs ↑ * Maintain R&D investment actively engage in

Technology Risk Following an energy policy of energy conservation clean production continuous improvement and green development Estun systematically

demands. Revenue ↓ industry collaboration and work with value chain

* R&D investment in new technologies carries an partners to advance low-carbon technology implements energy management and conservation controls to consistently improve energy efficiency and management levels.inherent risk of failure. R&D and application thereby closing the

technology gap with peers.Real?Time Energy Monitoring

* Increasingly stringent environmental performance

* Timely disclose measures taken to address

disclosure requirements will raise compliance costs

climate change including strategic planning

associated with maintaining or enhancing reputation. The Company uses smart meters to monitor electricity consumption in real time across all production stages. A smart energy monitoring and

targets actions and performance.* Failure to meet external carbon emission reduction Operating costs ↑ management platform has been built to implement three?level energy data control using information technology. By comparing and analyzing

Reputational Risk * Rigorously review disclosed information to

commitments could expose the Company to Revenue ↓ data the platform strengthens balanced distribution and optimized scheduling of energy resources thereby improving energy management

ensure accuracy and alignment with actual

accusations of greenwashing from investors and the

conditions building a cautious and responsible and reducing overall consumption. The Company plans to achieve comprehensive monitoring of all major high?power equipment across all

public negatively impacting brand reputation and

corporate image based on actual performance. plants within three to five years.image.

63 642025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing Unlock New Quality Productive Forces Drive High-Quality Development to Build a Sustainable Future Together on a New Journey

Strengthening Energy Conservation Controls Energy Targets

Indicator Unit 2024 Baseline 2025 Target 2025 Actual

Selecting The Company has established a phase?out and replacement plan prohibiting the selection of obsolete

Comprehensive energy consumption per unit of

High?Efficiency electromechanical products and prioritizing energy?efficient alternatives. In 2025 9 energy?efficient devices were kgce/unit 0.33 0.31 0.30electro?hydraulic servo system

Equipment introduced. The Coating Drying Gas System Optimization project replaced traditional burners with low?nitrogen Comprehensive energy consumption per unit of

kgce/unit 27.10 25.75 19.97

burners improving gas heating efficiency and reducing gas consumption per unit of product. industrial robot body

Comprehensive energy consumption per unit of

kgce/unit 3.17 3.01 3.07

industrial robot component

Optimizing The Company applies advanced technologies and processes to increase capacity and efficiency while promoting

Production energy conservation. By implementing a compressed air control system reducing supply pressure and conducting Energy Consumption and GHG Emissions

Management regular pipeline leak detection the Air Compression System Optimization project is expected to reduce air compressor

electricity consumption by 5%-15% with a corresponding decrease in electricity consumption of compressed air per Indicator Unit 2023 2024 2025

unit of output.Energy Consumption

Implementing Green Production facilities use energy?efficient lighting and green lighting systems saving 120 kWh per month. Air Natural gas cubic meters (m3) 392466.02 396673.24 411416.00

Office Practices conditioning energy controls are strengthened with each unit using a dedicated energy management card.Temperatures are set at 26° C in summer and 22° C in winter with estimated summer savings of 1500 kWh. Gasoline tonnes 18.69 24.27 22.18

Additionally a duty officer inspection system ensures that unnecessary standby equipment is turned off promptly Diesel tonnes 26.90 63.18 33.63

effectively eliminating unoccupied energy consumption after working hours.Heating oil tonnes / / 36.55

Purchased electricity million kWh 16.17 17.30 16.61

Impact Risk and Opportunity Management Self?built photovoltaic power generation million kWh 1.48 3.45 4.13

Total comprehensive energy consumption tonnes of standard coal equivalent 2757.85 3204.60 3229.08

To proactively address climate change challenges Estun has established a systematic risk management process. Through internal research industry tonnes of standard coal equivalent/

analysis and external advice the Company identifies analyzes evaluates and manages major climate risks and opportunities to ensure dynamic and Comprehensive energy consumption intensity 0.59 0.80 0.66RMB 1 million revenue

ongoing management of short? medium? and long?term climate?related risks and opportunities. In 2025 the Company continued its climate risk

GHG Emissions

assessment identifying 2 physical risks 4 transition risks and 4 opportunities with material impact on its business. It evaluated their potential financial

impacts developed practical response measures and reported results to the Board's ESG Committee. Direct GHG emissions (Scope 1) tonnes of CO? equivalent 842.00 882.05 1141.76

Indirect GHG emissions (Scope 2) tonnes of CO? equivalent 8721.85 8994.82 8547.69

Total GHG emissions tonnes of CO? equivalent 9563.85 9876.87 9689.45

Identification of * The Company identifies climate risk and opportunity items following the framework recommendations of IFRS tonnes of CO ? equivalent/

Climate Risks and S2 Climate-related Disclosures and the Guidelines No. 3 of Shenzhen Stock Exchange for the Self-Regulation of GHG emission intensity 2.06 2.46 1.98RMB 1 million revenue

Opportunities Listed Companies – Sustainability Report Preparation (Revised 2026).Materiality Assessment * The Company uses internal and external risk management tools combined with the likelihood and impact of

of Climate Risks and occurrence to identify climate risks and opportunities that materially affect its business. Resource Management

Opportunities

Following a resource management philosophy of source reduction process circulation and end?of?pipe control Estun actively supports the global

Management of * The Company develops response measures based on risk levels. Through regular monitoring and dynamic strategy shift toward a circular economy. Through technological innovation and process optimization the Company applies refined management to water

Climate Risks and adjustments it ensures that its business remains aligned with policy trends and market demands. resources and packaging materials minimizing resource use and environmental impact while promoting both environmental and economic benefits.Opportunities * For physical risks the Company improves emergency plans and equips emergency supplies. It also enhances its

extreme weather response capabilities through optimized response mechanisms.Climate Risk and Opportunity Management Process Water Resource Management

Indicators and Targets The Company's operations are not heavily water?dependent. Water is used primarily for R&D testing

industrial cooling equipment cleaning and employee facilities. All water comes from municipal

supplies and water withdrawal has no direct ecological impact. In terms of water management Estun

Estun has set a goal of achieving operational carbon neutrality by 2050 using this target to guide its carbon emission reduction roadmap and track Total water withdrawal

strictly complies with the Water Law of the People's Republic of China and other relevant regulations

progress over time. In energy management the Company aims to reduce unit energy consumption by 5% annually compared to the previous year.and has established and consistently improves its internal water management systems. During the

This target is broken down by product type and process workshop with regular monitoring at each level and dynamic adjustments as needed. 158375.64 tonnes

reporting period the Company revised its Energy Management System to include a section on Water

Use Management Regulations which strengthens requirements for water conservation and recycling

Carbon Emission Reduction Targets Water withdrawal intensityacross planning design production and daily operations to further standardize water management.To address its water usage the Company has set medium?to?long?term water conservation goals 32.40

of a 5% reduction in total water consumption by 2030 (from a 2024 baseline) and 100% coverage

tonnes/RMB 1 million revenue

Achieve peak operational carbon Achieve operational carbon neutrality of water?saving fixtures in office areas with progress tracked regularly. To meet these goals the

Company integrates water conservation into all production and operational processes consistently

emissions by 2028 by 2050

improving water efficiency through refined management and ongoing optimization.

65 662025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing Unlock New Quality Productive Forces Drive High-Quality Development to Build a Sustainable Future Together on a New Journey

Pollution Prevention and Control

The Company uses high?grade wet?type vane?wheel water meters and flow meters which are regularly calibrated

and maintained to track water use across production stages. This improves the precision of its water management.Estun strictly complies with national laws regulations and local environmental requirements. The Company has established the Environmental

Protection Management System to govern exhaust gas wastewater and solid waste from production and operations. A dynamic management

framework—combining real?time monitoring regular assessment and rigorous evaluation—is in place. The Company promotes cleaner production

Water to cut emissions at the source and promotes internal material recycling within production processes. These efforts have made pollution reduction

Monitoring and prevention routine and sustainable effectively fulfilling the Company's environmental responsibilities. During the reporting period all wastewater

The Company regularly inspects production The Company treats waste liquid from exhaust gas and noise monitoring results met national standards and the Company's operations had no significant impact on the environment or

equ ipment and p ipe l ines to detect i ts machining workshop at its on?site natural resources.Management?

and promptly repair leaks. It also posts Water wastewater treatment station. Liquid with

Based

water?saving signs in restrooms and near RecyclingConservation a COD concentration below 500 mg/L is

drinking fountains to encourage employees reused to prepare new cutting and cleaning Exhaust Gas Management

to adopt water?saving habits. f luids. This reduces daily wastewater

Rainwater discharge by approximately 50% while Estun strictly follows the Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution and relevant national

\Reuse saving 1 to 1.5 tonnes of fresh water per day. standards. Through standardized management and operation of exhaust treatment equipment the Company minimizes emissions while ensuring

compliance actively protecting air quality. In line with the national Action Plan for Continuous Improvement of Air Quality and the target to reduce total

nitrogen oxides emissions by 10% the Company replaced burners in its industrial robot coating drying process with natural gas?fired low?nitrogen

The Company has installed rainwater collection tanks in its industrial parks. The collected units cutting NOx formation. In 2025 this change reduced nitrogen oxides emissions by over 40%.rainwater is used for landscaping irrigation effectively conserving fresh water resources.The Company adopts a combined purification process consisting of a water curtain filtration media and two-stage activated

carbon adsorption to effectively treat point-source exhaust gas from production lines ensuring compliant emissions.Packaging Material Management For point source emissions the Company * The Company promotes cleaner raw materials

conducts real-time online monitoring in to prevent pollution at the source. At the

Multi?Stage Yanhu Road plant it replaced the original accordance with the Emission Standard of

Estun follows a packaging strategy centered on reduction reusability recyclability renewability and degradability. Guided by the Logistics Packaging Adsorption cleaning agent with a VOC-free alternative

Design Management Measures the Company systematically promotes standardized and green packaging for finished goods purchased parts and Air Pollutants for Industrial Coating Processes achieving zero VOC emissions. At the Shuige

Road plant the electronics workshop phased

semi?finished products to reduce environmental impact at the source. (DB32/4439-2022). For fugitive emissions out solvent-based 802 board cleaner in favor

it performs monitoring every six months of a water-based version effectively reducing

under the Integrated Emission Standard of VOC emissions.Air Pollutants (DB32/4041-2021). To precisely Emission Source * For the coating workshop's natural gas

Total packaging 0.30 Monitoring ReductionIncluding tonnes of plastic 28.11 tonnes of paper control VOC emissions the Company has drying process the Company upgraded

material usage

129.50 2.52 installed online monitoring equipment for its

its equipment by replacing conventional

tonnes of wood tonnes of foam burners with low-nitrogen models. This

163.81 coating lines which is supported by weekly reduces thermal NOx formation at the source tonnes 3.38 calibration and maintenance to ensure data and significantly lowers harmful exhaust and tonnes of other materials

accuracy and reliability. concentrations.Packaging Reusable

Reduction Packaging Exhaust Gas Emission Performance

Indicator Unit 2023 2024 2025

The Company eliminates unnecessary packaging to minimize * The Company prioritizes recyclable materials and Total exhaust gas emissions 10000 m3 26013.71 20642.28 23379.034

material use and resource waste. minimizes disposable packaging. It ensures that all

packaging materials are safe non-toxic and easy to Exhaust gas emission intensity 10000 m3 / RMB 1 million revenue 5.59 5.15 4.78

* For robot wooden crates it optimizes box dimensions degrade or recycle.to reduce wood consumption and packaging weight Non?methane total hydrocarbons (NMHC) tonnes 0.35 0.38 0.89

without sacrificing safety or stability thereby lowering * The Company also promotes recyclable returnable

transportation energy use. containers for inter-plant transport of items such as Particulate matter (PM) tonnes 0.41 0.16 0.27

drives and castings replacing disposable packaging and

* For 3C small robots it substitutes cardboard boxes for significantly raising packaging recycling rates.wooden crates where carton strength meets shipping Tin tonnes —— 0.14 0.06

requirements thereby cutting packaging material use.Nitrogen oxides (NOx) kilograms —— 3.55 1.98

67 682025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing Unlock New Quality Productive Forces Drive High-Quality Development to Build a Sustainable Future Together on a New Journey

Wastewater Management Solid Waste Type Solid Waste Source Treatment Method

General Industrial Primarily recyclable waste including waste packaging materials

Estun strictly complies with the Law of the People's Republic of China on Water Pollution Prevention and Control. The Company has built robust Outsourced for reuse

Solid Waste waste wood metal scrap cable scrap and waste plastics.internal management systems and standards implementing systematic pollution control and resource reuse. While ensuring wastewater meets

discharge standards it consistently lowers pollutant discharge intensity and advances green development. Waste drums (200L) waste oil waste kerosene and waste circuit Entrusted to qualified units for reuse

boards.Waste packaging containers spent adsorption cotton spent

Production wastewater undergoes a treatment sequence of equalization demulsification hydrolysis and A/O biological Hazardous Waste activated carbon paint residue waste resin spent cleaning agents Entrusted to qualified units for incineration

Segregated treatment. Domestic sewage passes through grease traps and septic tanks. Semi-annual monitoring confirms that cleaning waste liquid sludge etc.Treatment effluent quality meets the B-level standards of the Wastewater Quality Standards for Discharge to Municipal Sewers Entrusted to qualified units for

(GB/T 31962-2015). Hydraulic cyclone wastewater* physical?chemical treatment

Note: Hydraulic cyclone wastewater is classified as hazardous waste (HW12) due to its toxic and harmful content and is not discharged into the plants' sewage network.Wastewater Cleaning wastewater from machining is processed at the treatment station and then reused as make-up water for

Solid Waste Segregated Disposal Performance (China Operations)

Reuse machine tool cutting fluids substantially reducing factory wastewater discharge.Indicator Unit 2023 2024 2025

Hazardous waste disposal volume tonnes 97.44 136.46 120.72

Wastewater Discharge Performance

* Incineration tonnes 92.57 114.29 105.17

Hazardous Waste

* Reuse tonnes 4.87 22.17 15.55

Indicator Unit 2023 2024 2025

Hazardous waste utilization rate % 5.00 16.25 12.88

Total wastewater discharge tonnes —— 96461 115694.73

tonnes/RMB 1 million General solid waste disposal volume tonnes 2217 1716.15 899.83

Wastewater discharge intensity —— 24.06 23.67

revenue * Non?recyclable incineration tonnes 1219.35 1098.34 186.08

Chemical oxygen demand (COD) tonnes 7.20 10.98 20.16 General Solid Waste

* Reuse tonnes 997.65 617.81 713.75

Ammonia nitrogen tonnes 0.91 1.53 1.91

General solid waste utilization rate % 45.00 36.00 79.32

Suspended solids (SS) tonnes 2.85 9.6 6.62

Total phosphorus tonnes 0.08 0.19 0.25

Total nitrogen tonnes 0.93 0.58 1.48

Animal and vegetable oils tonnes 1.23 0.01 0.19 Noise Management

Petroleum tonnes —— 0.05 0.04

Estun systematically controls noise pollution in accordance with the Environmental Protection Management System. The Equipment Management

5-day biochemical oxygen demand (BOD5) tonnes —— 3.37 4.69

Department maintains and services production equipment to reduce noise generated by machinery. Workshops conduct daily inspections of

Anionic surfactants (LAS) tonnes —— 0.04 0.02 general equipment. When abnormalities are detected they investigate and address the cause immediately; in severe cases they shut down

equipment for repair. For major noise sources such as dust extraction fans air compressors and fire pump systems the Company implements

focused monitoring and control promptly applying sound insulation and noise reduction measures. Each year Estun engages a qualified

Waste Management environmental monitoring agency to measure boundary noise ensuring compliance with the Emission Standard for Industrial Enterprises Noise at

Boundary (GB 12348-2008).Estun strictly complies with regulations including the General Specification for Comprehensive Management of Solid Waste and the National

Hazardous Waste Inventory. The Company has built temporary hazardous waste storage facilities and established the Hazardous Waste

Standardized Inbound Process which defines storage and disposal procedures for each hazardous waste category. Qualified third-party units

handle waste in accordance with the law creating a closed-loop control system from generation and storage to transportation and disposal. The Biodiversity Protection

Company also uses the Jiangsu Provincial Solid Waste Management Information Platform for reporting ensuring that data on waste generation

and disposal remains accurate and traceable. During the reporting period the Company further revised its Environmental Protection Management Estun integrates environmental protection principles into all aspects of its business development. The Company explicitly requires that all new

System clarifying solid waste collection and disposal processes and continuing to promote standardized waste management. construction renovation and expansion projects undergo rigorous environmental impact assessments and comply with local environmental

regulations throughout design construction and operation demonstrating its commitment to a win-win outcome for enterprise development and

ecological protection.Hazardous waste generation General solid waste generation Hazardous waste intensity General solid waste intensity All of the Company's construction projects in Nanjing have completed environmental impact assessments and the "Three Simultaneities"

140.52 tonnes 1312.11tonnes 0.03 0.27 acceptance process for environmental protection facilities (i.e. environmental protection facilities are designed built and operated alongside the main project). Assessments have confirmed that the environmentally sensitive areas surrounding these construction sites do not involve ecological

tonnes/RMB 1 million revenue tonnes/RMB 1 million revenue protection red lines or ecological space control zones including nature reserves water source protection areas wetlands wildlife reserves

species protection areas bird habitats marine protected areas national parks or indigenous peoples' reserves.

69 702025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing Unlock New Quality Productive Forces Drive High-Quality Development to Build a Sustainable Future Together on a New Journey

4 Creating Shared

Value and

Advancing Together on

a New Journey

Contributing to UN SDGs

71 722025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing Unlock New Quality Productive Forces Drive High-Quality Development to Build a Sustainable Future Together on a New Journey

Employee Recruitment

Human Capital Development

Newly recruited employees during the reporting period including

Estun recognizes that outstanding enterprises pursue not only business success but also the important responsibility of fostering individual 421 11 fresh graduates

development and social progress. The Company cultivates an inclusive empowering and safe workplace. Through responsible employment

practices systematic capability-building programs and comprehensive rights protection mechanisms Estun helps employees realize their Newly recruited employees by

personal potential while achieving shared growth and mutual value creation. Newly recruited employees by gender Newly recruited employees by age hierarchical level

0.48%

44.18%

Talent Attraction and Retention 0.48% 96.67% 1.66%

85.04%14.96%

Estun places its talent strategy at the core of corporate development. The Company has developed and implemented key talent management policies 1.19%55.34%

including the Organization Management System the Personnel Management System the Recruitment and Allocation Management System and

the Probation Management System. By proactively planning talent pipelines promoting employee growth through systematic training and offering Male employees Female employees Employees aged 30 Employees aged Senior management Mid-level management

diverse incentives with clear career paths Estun fully activates organizational vitality to build a solid talent foundation for long-term success. and under 31–50 Junior management Frontline employees

Employees aged 51

Employee turnover and above

Talent Recruitment Employee turnover rate by gender Employee turnover rate by age

The Company builds a systematic forward-looking talent pipeline aligned with its development goals

Male employees 22.36% Employees aged 25.14%

and strategy. It conducts in-depth analyses of position requirements particularly for key technical Total employee turnover rate 30 and under

and senior management roles and proactively plans talent deployment. Based on market trends it Employees aged Total number of employees 20.89 Female employees 15.11% 31–50

18.88%

forecasts hiring needs and establishes clear transparent and diversified recruitment policies with % Employees aged

3261 14.89%standardized processes covering every stage from job posting to onboarding. Taking into account 51 and above

local contexts cultures and job characteristics across different locations the Company actively Employee turnover rate by hierarchical level Employee turnover rate by region

attracts suitable talent through multiple channels including campus recruitment industry job fairs

and internal referrals. Additionally Estun has implemented a unified structured interview evaluation Voluntary turnover rate

22.07%20.77%21.51%

system that prioritizes candidates' long-term value and organizational fit providing precise and 10.64% 11.97% 9.24%

efficient talent support for the Company's growth. 14.33 %

Senior Mid-level Junior Frontline Nanjing Non-Nanjing

management management management employees area area

Note: 1. Data on newly recruited employees and employee turnover reflect China operations only.The Company deepens university-industry collaboration by building long-term strategic partnerships with leading

universities in automation computer science mechanical engineering and related fields. Through systematic Employee Development

campus outreach and dedicated presentations the Company focuses on developing a talent pipeline for core

Campus positions. Campus recruitment efforts showcase Estun's history culture business landscape and career development

Recruitment Guided by the philosophy of talent-driven development the Company established the Estun Academy. It has Training satisfaction score

pathways helping graduates understand the Company's prospects and their own growth opportunities. developed and implemented the Training Management System to systematically build a tiered and structured

employee training framework. Leveraging the Estun Academy Online digital learning platform and integrating 91.15

internal instructors with external experts the Company comprehensively enhances employee competencies

and qualities consistently empowering organizational development and talent growth.The Company actively expands diverse recruitment channels posting positions widely on mainstream platforms

such as Zhaopin 51job Boss Zhipin and Liepin. It also participates in industry forums professional communities and

Social technical exhibitions to precisely reach and attract experienced professionals.Recruitment

The Company has established an internal referral reward system to encourage employees to recommend outstanding

talent with rewards granted for successful referrals effectively improving recruitment efficiency and talent-job

Internal alignment.Referrals New employee orientation training Leadership training

73 742025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing Unlock New Quality Productive Forces Drive High-Quality Development to Build a Sustainable Future Together on a New Journey

Employee Training System

Training Program Content 2025 Progress Enhancing Online Training

Leadership Training The Company standardizes the operation of its Estun Academy Online digital learning platform in Total online training attendances

accordance with the Estun Academy Online Operation Management Measures encouraging employees

to make use of spare time for self?directed learning. During the reporting period the Company 29137

The program is divided into four stages: team integration planning for

Transformation Program quick wins influence enhancement and operational alignment assisting 14 attendees

systematically organized its knowledge base redesigned the course catalog based on organizational

for Middle and Junior managers in successfully adapting to their new roles and responsibilities. structure and course categories and categorized online courses to facilitate efficient learning. By the Total online training hours

Management end of 2025 626 training programs had been created. The platform follows an "uploader responsibility"

principle defining course upload specifications and review processes. Additionally the Company 73224.98

The Company in collaboration with external training providers has improved departmental training oversight through project?based management tracking training plan

developed a leadership development program to build a pipeline of implementation in real time to further promote active learning and continuous development among

mid? to senior?level management talent and cultivate a reserve of

20 attendees employees.

senior executives. The program is structured into five stages including

Leadership strengthening theoretical foundations role cognition workshops and

Program diversified practical training.General Competency Training

The program offers comprehensive training covering an introduction to Online training coverage Average online training hours per employee

Estun (company overview exhibition hall tour) corporate culture human Conducted 6 sessions for 405

Training for New Employees resources / finance / administrative systems and processes product new employees hired through

Hired through Social introduction robot operation skills safety knowledge and occupational social recruitment.

97.79%33.64

Recruitment health to help new employees integrate quickly.Professional Competency Training Online training coverage by gender Average online training hours by gender

The program covers product lines such as industrial robots motion

45 attendees passed Male employees 97.51% Male employees 45.91

control and sheet metal automation aiming to build a versatile highly

Super Engineer certification assessments.skilled talent pool. Female employees

Program 98.85% Female employees 35.76

The program features courses custom?developed for sales personnel 97 of 104 attendees passed

covering industrial robot history product features and functions electrical assessments with a pass rate of

control systems mechanical structures and robot operation and 93%. Online training coverage by age Average online training hours by age

AR Robot Application Skills programming to enhance understanding of product features performance

Enhancement Program and application technologies.Employees aged 30 and under 99.02% Employees aged 30 and under 49.62

Employees aged 31–50 97.10% Employees aged 31–50 40.71

The program is divided into three stages: strategic foundation value

All 35 attendees passed

AR Key Account Management breakthrough and ecosystem management helping account managers Employees aged 31–50assessments. 96.30% Employees aged 51 and above 30.32

Capability Enhancement develop capabilities to manage key accounts.Program

Online training coverage by hierarchical level Average online training hours by hierarchical level

The program developed with an external training provider covers language

skills cross?cultural communication and comprehensive international talent

64 attendees

development cultivating high?quality talent with a global perspective and Senior management 100% Senior management 7.05

Business English cross?cultural abilities.Training Mid?level management 98.98% Mid?level management 32.17

Junior management 96.12% Junior management 35.13

626 sessions were conducted

Departments organize online and offline professional knowledge and skills reaching 97.43% of employees Frontline employees 97.76% Frontline employees 46.24

Department?Specific training. with an average of 43.79

Professional Knowledge and training hours per employee.Skills Training Note: Employee training data reflect China operations only.

75 762025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing Unlock New Quality Productive Forces Drive High-Quality Development to Build a Sustainable Future Together on a New Journey

Internal Trainer Development

Competitive Compensation System

The Company has developed the Estun Instructor Management

Fair and Competitive Compensation

Measures establishing a systematic internal trainer management

and incentive framework. By creating its own learning resources

In accordance with the Compensation Management Handbook the Company has established a comprehensive compensation

the Company effectively promotes the accumulation and transfer of framework covering fixed compensation short-term incentives and medium to long-term incentives. Estun adheres to the principle

knowledge and skills across the organization. During the reporting of fair pay ensuring employees receive equitable compensation for their work and equal pay for equal work. Fixed compensation

period the Company successfully conducted 4 sessions of Estun primarily focuses on key skills including work experience education position and market scarcity. Short-term incentives include

Light internal trainer empowerment training and certification on-the-spot rewards special bonuses and annual bonuses closely linked to company departmental and individual performance.adding 40 newly certified courses. Medium to long-term incentives include honorary awards and equity incentives primarily for core employees aiming to align the

interests of shareholders the Company and employees while retaining key talent. For non-sales functions a security-based strategy is

implemented with a higher proportion of fixed income in the compensation structure to ensure alignment with work contributions.Newly certified internal trainers Total internal trainers

Market?Aligned Compensation Levels

40 79 Estun Light internal trainer empowerment training and certification

The Company is committed to maintaining the market competitiveness of its overall employee compensation. To this end it monitors

external salary levels and assesses internal salary adjustment ranges annually ensuring that its compensation levels remain aligned with

market dynamics.Promotion and Incentives

Estun has established a closed-loop talent management system centered on standards assessment and development. Through systematic career

Strengthening Performance Assessment and Incentives

pathways a dynamic performance management mechanism and a competitive incentive framework the Company provides employees with clear

differentiated development paths and comprehensive growth support motivating them to leverage their strengths while ensuring a consistent Optimizing Performance Assessment

stable pipeline of talent for key positions.The Company has established a performance indicator library in accordance with the Organizational Performance Management

Clear Career Development Paths System and the Individual Performance Management System. Focusing on company operations and strategic indicators assessment

indicators are designed around dimensions such as work performance learning and growth and values. Agile performance

Qualification Certification Process management methods are adopted with quarterly monitoring and semi-annual or annual tiered differentiated assessments. For

R&D project personnel project-based assessments are added; for cadres indicators such as strategic initiatives and key tasks are

included. Individual performance results are linked to organizational performance achievement status. During the reporting period

The Company has established a management track (M series) and a professional track (P series). The Position and Rank Management in addition to regular cyclical performance assessments for cadres a new 360-degree assessment focused on integrity breaking

System the Job Series Qualification Standards the Cadre Selection Management System and the Estun Super Engineer Management down silos accountability and efficiency was introduced. Through self-assessment and multi-dimensional feedback from supervisors

Measures clearly define the qualifications required for employees in both tracks. Based on annual strategic goals employee career peers business Financially Material Issue and subordinates the Company promotes comprehensive self-awareness among cadres

development needs and the Company's talent strategy Estun builds and connects employee development paths opening both encourages open communication and accountability and fosters mutual growth of the organization and individuals.horizontal and vertical advancement opportunities. Employees may choose their development path based on their interests strengths

and capabilities. The Company organizes annual qualification certifications Super Engineer certifications and production skill level Strengthening Performance Communication

certifications. Using qualification requirements as a guide it develops targeted training and development programs for various

talent pools. This enhances employee competencies and professional skills forming a systematic empowerment platform and talent The Company has established smooth performance communication channels actively collecting employee feedback and strengthening

development system that guides career development and helps employees realize their personal value. In 2025 212 applications were dialogue between superiors and subordinates on goal setting performance results and improvement coaching ensuring that

compensation incentives accurately reflect employee contributions. The Individual Performance Management System stipulates

submitted and pre-reviewed for qualification certification with 138 passing (65% pass rate). For production skill level certification 698

that employees may appeal performance results to the Group's Human Resources Department within three working days after the

applications were submitted and pre-reviewed with 94 passing (13.5% pass rate). performance review meeting.Improving Incentive Policies

Talent Review

The Company issued the 2025 Company Incentive Implementation Rules providing special incentives for core technical and key

The Company conducts an annual talent review focused on high-performing high-potential core employees. The review uses dual personnel. In 2025 based on departmental nominations and company approval 135 individuals received such incentives. Additionally

dimensions of performance and potential employing the nine-box grid and other tools for talent classification to accurately identify in accordance with the Employee External Professional Title Management Measures the Company supports employees in enhancing

future leaders and technical experts. Based on the results and development needs the Company creates personalized development their professional qualifications. Employees who obtain intermediate or senior professional qualifications from the Human Resources

plans for key talent ensuring that talent growth aligns with business needs. and Social Security Bureau—and whose certificates are used for company project applications—receive corresponding cash rewards

along with related expense reimbursement policies to continuously stimulate employee enthusiasm for learning and innovation.Succession Planning Implementing Equity Incentives

The Company implements a succession planning program for leadership roles systematically strengthening the leadership pipeline To encourage talent retention the Company provides long-term incentives in the form of equity awards to core key employees annually.In 2025 participants in the employee stock ownership plan included the Company's directors (excluding independent directors)

and ensuring organizational vitality. For each key position 1–2 "Ready-Now" successors and multiple potential candidates are identified.supervisors or senior executives other senior management personnel and mid-level management and core employees of the

Their capability development is accelerated through a leadership program for reserve cadres. Company and its subsidiaries with a total of no more than 200 individuals.

77 782025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing Unlock New Quality Productive Forces Drive High-Quality Development to Build a Sustainable Future Together on a New Journey

Employee Rights and Well?being

Estun embraces a corporate culture of people-centered management and respect for talent placing strong emphasis on protecting employee Affected

rights. Through comprehensive labor management systems open communication channels and robust employee care and benefits programs the Issues of Concern Mitigation and Remediation MeasuresGroups

Company cultivates an innovative inclusive equal and respectful workplace building harmonious labor relations.* In the "Anti-Discrimination and Anti-Harassment" chapter of the Employee Handbook the

Company explicitly states that it strictly opposes workplace harassment including but not limited

to physical psychological sexual or verbal harassment or abuse. All employees regardless of

Anti-Discrimination

Labor and Human Rights Management race culture religion color gender age or disability are entitled to equal opportunities and and All employees treatment.Anti-Harassment

* Disciplinary actions for harassment are clearly defined. A Complaints and Reporting section is

Estun strictly complies with the Company Law of the People's Republic of China the Labor Law of the available on the employee forum allowing anonymous reporting of discrimination or harassment

People's Republic of China and other applicable laws and regulations. The Company supports and incidents for investigation.respects the ILO Declaration on Fundamental Principles and Rights at Work the UN Guiding Principles Social insurance coverage rate

on Business and Human Rights the Universal Declaration of Human Rights and other relevant 100 * In the "Attendance Cycle and Working Hours" chapter of the Employee Handbook the %

international frameworks. It strictly prohibits any conduct that infringes upon or violates human rights Company specifies a standard work schedule of five days per week eight hours per day with

flexible working hours available for some positions. In the "Leave Attendance and Offboarding

ensuring that all employees are treated fairly and with dignity. Management" chapter it defines working hour systems and overtime management standards

emphasizing that supervisors must reasonably manage overtime and not abuse their authority to

Labor contract signing rate Working Hours and force others to work.All employees

Human Rights Policy Commitment and Management 100 Leave * The attendance system monitors working hours automatically calculates overtime pay according % to legal standards and pays it in full monthly.* The attendance system automatically reminds employees of their annual leave balance. Annual

The Company has developed and consistently improves policies such as the Personnel Management leave may be carried over to the end of May of the following year facilitating use during the

System and the Employee Handbook and conducts regular training to standardize management Average annual paid leave Spring Festival period. In the "Leave Management" chapter of the Employee Handbook it

across recruitment termination compensation promotion working hours and leave safeguarding stipulates that wages remain unchanged during annual leave.days per employee

employees' legitimate rights and interests. For outsourced production personnel the Company signs

Talent (Labor) Dispatch Agreements with outsourcing providers; for non-production labor dispatch 7 * Prohibit discrimination or termination of employment based on pregnancy maternity leave or

personnel it signs Labor Dispatch Agreements to protect the rights of dispatched workers. breastfeeding. Ensure equal pay and promotion opportunities for female employees.Protection of Female * Provide maternity leave breastfeeding leave social security benefits and health protection.The Company adheres to lawful employment practices. During recruitment and employment it Number of employee discrimination Female Employees employees * Provide special rights and a safe friendly working environment during pregnancy and

treats all employees equally without discrimination based on gender age ethnicity religion or other or human rights violation incidents breastfeeding.* Guarantee the right to return to the same or an equivalent position.characteristics providing equal employment and development opportunities for every employee. The

Company commits not to use or support any form of forced labor. Through standardized employment 0

mechanisms it comprehensively eliminates risks associated with modern slavery or labor practices * In the "Social Media" chapter of the Employee Handbook the Company states that employees

enjoy the legally provided rights to freedom of speech belief and association without fear

including debt bondage prison labor human trafficking deposit requirements confiscation of identity Freedom of of retaliation intimidation or harassment. It trusts and encourages every employee to be an

documents or property restrictions on personal freedom withholding or delaying wages and benefits Association ambassador for spreading company information and values.All employees

forced overtime and restrictions on resignation ensuring that all employment relationships are and Collective * The Company has established a workers’ congress and a trade union organization. It convenes

entered into voluntarily. Bargaining workers’ congresses on a regular basis and invites employee representatives to participate in the

review and decision?making of matters including company policies compensation and benefits

health and safety and social insurance.Human Rights Risk Mitigation and Improvement

* Conduct regular inspections risk assessments and maintain accident reporting and feedback

mechanisms to promptly address safety hazards.The Company maintains a zero-tolerance policy toward any violation of human rights. It regularly conducts human rights due diligence to identify * Provide protective equipment and health checks improving working conditions.and assess major human rights risks developing mitigation and remediation measures for employment-related compliance risks to protect Health and Safety All employees * Promote a safety culture through regular safety and health training and occupational health

employee rights. checks.* Maintain agreements with partner medical institutions to provide annual health checkups and

Affected result interpretations with follow?ups on abnormal findings.Issues of Concern Mitigation and Remediation Measures

Groups

*Note: "All employees" includes regular employees and dispatched workers.* Ensure that employees have the freedom to decide whether to enter into or terminate labor

contracts.* Forecast and develop effective recruitment plans based on business development to hire and

Prohibition of All

retain sufficient staff.Forced Labor employees*

* Strengthen employee communication to ensure all work is voluntary.* Use attendance systems to regularly analyze and audit working hours implementing smart Human Rights Complaints and Grievances

scheduling to arrange shifts and rest based on actual business needs.The Company maintains a zero-tolerance policy for violations of employee rights. It has established the Estun Reporting Management System

* Clearly prohibit the employment of child labor in the

Prohibition of Child Personnel Management System and the

Interns Employee Handbook. creating a complaint and grievance mechanism with designated reporting email addresses open to all employees. The system defines complaint Labor

* Strictly verify the authenticity of applicants' identities during recruitment. handling procedures and whistleblower confidentiality requirements to ensure that issues are addressed promptly and fairly.

79 802025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing Unlock New Quality Productive Forces Drive High-Quality Development to Build a Sustainable Future Together on a New Journey

Benefits and Care

Diversity and Inclusion

Estun is committed to building a comprehensive multi-level employee care system. Beyond statutory and supplementary benefits the Company

has established a dedicated Love Fund conducts regular employee care activities and organizes diverse cultural and sports activities. These Estun believes that mutual respect understanding and open communication unlock the full

efforts focus on employee physical and mental health and work-life balance consistently strengthening employees' sense of belonging happiness potential and innovative capacity of its teams. The Company upholds diversity and inclusion as Ethnic minority employees

and cohesion. core values committed to building a diverse inclusive and open workplace. It provides strong proportion among employees

support and development platforms for every employee harnessing diverse strengths to drive of Chinese nationality

sustainable growth. 1.6 %

Supplementary Benefits

Benefits Package

* Flexible working hours free working

The Company maintains a multi-dimensional benefits lunches health checkups Spring

policy as detailed in the Employee Handbook. The Statutory Benefits Festival and holiday benefits birthday

Handbook outlines various benefits and subsidy standards celebrations employee activities and

Social insurance Diverse Workforce Composition

including social insurance package housing provident care assistance.package housing

fund accident insurance holiday and paid leave benefits * Depending on role additional provident fund statutory subsidies may include transportation

employee activities and care assistance enhancing Number of employees by gender Number of employees by ageholidays and paid leave communication and computer

employee experience and well-being.allowances. Employees aged 51 Employees aged 30

Female employees and above and under

634369927

Employee Care

Male employees Employees aged 31–50

The Company has established the Estun Love Fund governed by the Estun Love Fund Management Measures to provide financial assistance

26271965

to employees facing hardship due to serious illness accidental injury or other difficulties easing immediate burdens on employees and

their families. Since its launch the Fund has conducted 22 fundraising campaigns raising RMB 681400. Cumulative expenditures total RMB

110000 supporting 6 employees in need. The Company also runs seasonal programs such as Summer Cooling and Winter Warming along

with visits to overseas-based employees fostering a sense of collective care and support. Number of employees by educational level Number of employees by region

Employees with Employees with

bachelor's degree master's degree / MBA

Balancing Work and Life or above

1287 Overseas

428

The Company enriches employee life through cultural and sports activities including employee sports day International Women's Day events Chinese employees employees

employee birthday celebrations and craftsman culture month. Employees with

(including employees

associate degree or from Hong Kong 1084

below Macao and Taiwan)

15462177

Number of employees by job function Number of Chinese employees by hierarchical level

Other employees Production employees Senior management

56106242

Administrative Sales employees Mid?level management Frontline employees

International Women's Day event employees

Employee Sports Day 749 103 1924339

Technical employees Junior management

Finance employees

968108

87

Fostering a Diverse and Inclusive Culture

The Company integrates diversity and inclusion into daily operations and management. It attracts outstanding talent from varied backgrounds

through open flexible policies and fair objective standards. The Company ensures fairness and equity in compensation and incentives training

Craftsman Culture Month and development and promotion and selection processes actively building and continuously cultivating a diverse workforce and fostering an

Employee birthday celebration atmosphere of diversity equality and inclusion.

81 822025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing Unlock New Quality Productive Forces Drive High-Quality Development to Build a Sustainable Future Together on a New Journey

Supporting Female Employee Development

Providing Employee Communication Channels Conducting Employee Satisfaction Surveys

In the Employee Handbook and the Compensation System Handbook the Company specifies that eligible female employees are entitled to Online the Company provides channels including the "Me and The Company conducts an annual online anonymous employee

prenatal check-up leave maternity leave breastfeeding leave International Women's Day leave and paid leave for parent-teacher conferences. Estun" module on the EHR system enterprise WeChat email satisfaction survey covering two core dimensions: administrative

Breastfeeding leave may be accumulated flexibly within the month safeguarding women's rights. and phone for employees to voice opinions complaints and satisfaction and satisfaction with the Estun Academy. The administrative

suggestions in real time and receive timely follow?up. Offline survey focuses on daily canteen management work professionalism

Proportion of female employees Proportion of women in Proportion of women in Proportion of women in it holds regular employee meetings and forums to establish employee activities and benefits service awareness and attitude

among new hires in China new technical hires management roles within STEM-related positions ongoing face?to?face communication and feedback platforms. coordination and cooperation and suggestions. The Estun Academy

revenue-generating functions After receiving employee complaints and suggestions the survey covers Estun Academy Online platform management timeliness 14.96 % 8 % 27.67% President's Office Administration Department Human of training responses professionalism of training organization and

7.5% Resources Department and Audit Department jointly handle suggestions. Through long?term tracking and in?depth analysis of

them by breaking down the issues and providing responses survey results the Company comprehensively understands employee

Proportion of female employees in management roles Proportion of female employees in STEM roles ensuring a safe and reliable feedback and appeal process that needs and opinions widely solicits feedback analyzes root causes

effectively encourages employees to speak up. and promptly adjusts management strategies to continuously improve

overall satisfaction.Junior management Operations

IT and information security

Mid-level management

Quality management

Senior management Trade union membership rate Employee suggestions received of which Employee satisfaction scoreR&D and innovation

100 333 113 were adopted 22.22% 69% % and implemented 88.78

3914.10%

4%2%

Occupational Health and Safety

Estun regards workplace safety as the foundation of its operations and growth. The Company strictly complies with national laws and regulations

Note: Data on proportion of female employees reflect China operations only. including the Law of the People's Republic of China on Work Safety the Fire Protection Law of the People's Republic of China and the Law of the

People's Republic of China on the Prevention and Control of Occupational Diseases. Guided by the ISO 45001 Occupational Health and Safety

Open Communication Management System framework and the principle of “safety first prevention-oriented and comprehensive governance” Estun has built and

consistently improves a systematic scientific and efficient management mechanism. These efforts comprehensively enhance employee safety

Estun values and actively listens to employee voices. The Company has established multi-level regular internal communication platforms to

awareness and build a strong defense line for the Company's sustainable development.ensure that employee concerns are promptly heard and addressed. It also encourages every employee to take ownership by offering reasonable

suggestions driving continuous improvement and the Company's healthy development. Safety Management System

Management Structure and Responsibilities

Convening Workers' Congresses

The Group has established a Work Safety Committee with the CEO serving as its director. The Committee oversees the Group's

The Company has implemented a workers' congress system work safety strategy objectives and performance and reviews and decides on significant work safety matters. Estun Automation

in accordance with the Estun Workers' Congress Management Co. Ltd. and Estun Robot Engineering Co. Ltd. have each established their own Work Safety Committees and safety management

Measures. Through regular meetings the system ensures departments implementing a responsibility system for work safety at all levels.employees' rights to information participation and oversight

on important company matters. In 2025 the Company added 17

employee representatives bringing the total to 198 by year?end. Improving Management Systems

During the reporting period the Company held two workers'

The Company has formulated and implemented policies including the Work Safety Responsibility System the Production Safety

congresses where representatives heard reviewed and voted

Accident Management System and the Hazardous Operation Safety Management Regulations. These policies apply to all

on amendments to the Employee Handbook the Compensation

employees as well as outsourced production personnel working on company premises. In 2025 the Company focused on revising

Management Handbook and the Individual Performance

two core policies which were formally issued and implemented after approval by the General Manager: the original Production

Management System. Representatives also completed the

Safety Accident Management System was revised to the EHS Accident Management System further clarifying accident and incident

election of the employee director to the Board.classification criteria reporting procedures investigation report timelines and penalty standards; the original Work Safety Rewards

and Penalties System was revised to the EHS Rewards and Penalties System adding new provisions related to safety management

Workers' Congress rewards and performance deductions.

8384

%

11.9

0

16.5

0%2025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing Unlock New Quality Productive Forces Drive High-Quality Development to Build a Sustainable Future Together on a New Journey

Contractor Safety Management Work safety investment Work-related fatalities (including dispatched workers) Lost workdays due to work-related injuries

The Company defines responsibilities for both parties through contractor safety management agreements and manages contractors

RMB 703.6 million 0 0

based on the nature of their cooperation. Long-term partners—such as security cleaning catering and long-term equipment

maintenance providers—are integrated into the Company's safety management system undergoing rigorous qualification reviews

agreement signing safety training and ongoing supervision. Short-term partners—such as visitors and minor repair suppliers— Work-related injury rate Lost time injury frequency rate (LTIFR) Contractor LTIFR

receive safety briefings and safety permits as needed.

000%

Clarifying Management Objectives

The Company implements health and safety responsibilities across all levels. All departments signed the 2025 Safety Environmental

and Occupational Health Target Responsibility Agreement breaking down safety management targets into departmental objectives.A regular review and evaluation mechanism tracks management effectiveness and target achievement status is directly linked to

management performance. Enhancing Safety Awareness and Capabilities

Occupational Health and Decomposed Indicators Achievement Status Safety Awareness Promotion Safety Capability TrainingSafety Targets

The Company conducted Leader Safety Commitment The Company invited industry experts to conduct

Zero major casualty accidents

activities encouraging company executives production specialized training on the Law of the People's Republic

Zero major fire accidents managers and frontline employees to record safety of China on Work Safety strengthening management's

Zero major or above commitment videos advocating safety practices within legal responsibility and red-line awareness. Instructors

casualties Zero electric shock accidents

All targets achieved their departments and across the Company. from the Red Cross were invited to organize first

Zero large?scale infectious disease outbreaks responder training disseminating emergency rescue

and acute poisoning incidents knowledge.Zero occupational disease No occupational disease cases found in medical Estun's ISO 45001 Occupational Health and

incidents examinations Safety Management System Certificate

Safety Emergency Drills

Safety Risk Prevention and Control The Company conducted comprehensive safety emergency drills covering key aspects such as initial fire suppression

personnel evacuation casualty rescue and hands-on fire extinguisher practice to enhance the ability to respond to

Risk Identification and Hazard Inspection emergencies.The Company organized departments branches and subsidiaries to conduct hazard identification and risk assessment. In accordance

with the Jiangsu Province Catalog of Major and Above Work Safety Risks for Metallurgical and Other Industrial Enterprises (Revised

Edition) several major risks—including rooftop PV power station operation loading and unloading in warehouse receiving areas

and lifting operations in production workshops—were newly identified and placed under tiered controls. Additionally through 12

comprehensive monthly safety inspections conducted during the year a total of 603 hazards were identified. With the exception of a few

requiring procurement of spare parts or pending repairs all hazards have been rectified forming a closed-loop management system that

covers identification assessment control and remediation.Employee Proactive Reporting and Incentives

First responder training Safety emergency drill

The Company encourages employees to report safety risks through channels such as enterprise WeChat and QR codes. The EHS

Management Department follows a structured process: receiving assessing and classifying reports; investigating and identifying

responsible departments; requiring rectification within a specified period; and tracking issues through to closure. The Company strictly

protects whistleblower confidentiality and provides positive incentives. Senior leaders publicly support the program actively fostering

a "safety for everyone" culture. In 2025 employees reported 53 valid hazards all of which were rectified. 40 employees received safety Health and safety training coverage rate Total health and safety training sessions Emergency drills conducted

hazard identification incentives with total bonuses and prizes of approximately RMB 4400 effectively mobilizing employee participation 100% 22 3

in safety risk prevention and control.Strengthening Equipment Risk Management Total attendances in health Average health and safety training with

and safety training hours per employee

The Company implemented a three-month Equipment Intrinsic Safety Special Work Plan systematically identifying 145 equipment 1000attendances

risks across three phases. Rectification plans were developed for each risk with long-term monitoring in place. For special equipment 2561 3.81

technological upgrades were completed for its own forklifts adding driver intelligent access management intelligent seatbelt

management and front and rear pedestrian collision avoidance alerts. Since implementation in August these upgrades have significantly Note: Safety training and emergency drill data reflect China operations only.improved equipment usage safety and effectively prevented production accidents.

85 862025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing Unlock New Quality Productive Forces Drive High-Quality Development to Build a Sustainable Future Together on a New Journey

Protecting Employee Health Strategy and Management Approach

The Company has formulated and implemented the Occupational Health Management System establishing a responsibility system Supported by systems and processes empowered by digital tools and focused on continuous improvement the Company is dedicated to

for occupational disease prevention. Through regular occupational hazard monitoring and assessment it prevents occupational building a transparent reliable and sustainable supply chain. These efforts ensure supply security and efficiency while supporting the Company's

health risks at the source.The Company implements the Labor Protection Equipment Safety Management Regulations and provides long-term stable development.employees with appropriate and effective personal protective equipment. It organizes pre-employment in-service and exit occupational

health examinations for employees exposed to occupational hazards preventing risks before employment and controlling risks during

employment thereby comprehensively safeguarding employee occupational health and safety. Supply Chain Resilience

To enhance supply chain resilience and security Estun has developed the Risk-Based Material Shortage Early Warning Management System.Occupational disease Employees undergoing occupational Occupational health examination Using factors such as supplier geographical distribution and material delivery status the Company identifies assesses manages and monitors

incidence rate health examinations coverage rate supply chain risks including potential supply disruptions price increases ESG risks and unexpected events. Risk levels are assigned and targeted

100 remedial or alternative measures are implemented accordingly building a diversified supply chain system with differentiated procurement 0 157 %% strategies. In 2025 the Company's raw material supply remained stable with no production disruptions due to material shortages.

Certification rate for special Work-related injury insurance Work-related injury insurance

operations personnel contributions coverage rate Risk Type Risk Description Response Measures

100% RMB 2.72 million 100% * Supplier Diversification: The Company has formed a Supply Risk Elimination Group

to regularly review sole?sourced and high?risk materials within the Group develop

Note: Occupational health data reflect China operations only. solutions and track progress weekly to reduce supply risks. For key materials with

no alternative sources due to market monopolies it proactively develops strategic

relationships to secure supplier support.* Inventory Pre?Management: Based on the Material Planning Strategy Management

Risk of supply chain interruption Measures the Company strengthens demand forecasting and dynamically sets safety

or continuity disruption due stock levels and supplier stocking strategies. Factors considered include supplier

to external events such

Supply category preference model material lead time cooperation level and risk level. This

Sustainable Supply Chain as geopolitical changes Disruption Risk ensures efficient orderly material management rapid response to supply needs and international trade policy improved inventory turnover proactively avoiding risks to enhance product market

uncertainty and extreme competitiveness.weather.* Alternative Sourcing: For imported materials (e.g. electronic components) the Company

Estun upholds a procurement philosophy centered on three pillars: ensuring supply security as the baseline building the industrial ecosystem

actively researches domestic alternatives to reduce supply and price risks caused by

for value and fostering high-quality strategic ecosystem partnerships. The Company strictly complies with national laws and regulations changes in international trade policies.including the Bidding Law of the People's Republic of China and its implementing regulations. It is committed to building long-term stable and * Regional Deployment: The Company is establishing overseas production bases in

mutually beneficial relationships with suppliers and partners to jointly develop a responsible and sustainable supply chain. countries such as Poland to optimize global production capacity and strengthen local

service capabilities in different regions.* Material Standardization Management: The Procurement Center and R&D team have

formed a dedicated normalization group to address material standardization issues.Governance They unify main and alternative material codes with procurement shares subsequently

Fluctuations in key raw material allocated based on factors such as supply risk and price.market prices along with cost

The Company has established a Procurement Committee operating under the Procurement Committee Operation Management System. * Long?Term Partnerships: The Company signs long?term framework agreements with Price and capital pressures arising

The Committee is responsible for decisions on key business rules major special or high-risk procurement matters and other procurement high?quality suppliers clearly defining price adjustment mechanisms and force majeure Fluctuation from changes in market demand

clauses.activities with significant impact on the Group. At the execution level the Integrated Supply Chain organization comprises the Supply Chain Risk (e.g. weak overseas demand)

* Financial Risk Assessment: For bulk raw materials (e.g. copper and aluminum) subject

Operations Management Department the Strategic Procurement Department the Planning and Logistics Center and the Manufacturing and the need to fulfill customer

Center. The Strategic Procurement Department's core responsibilities include supplier development and management procurement cost orders.to frequent price fluctuations due to spot market characteristics the Company evaluates

not only suppliers' supply and quality capabilities but also their financial stability.control product line operational support and process optimization. Financial risk assessment serves as a key criterion guiding appropriate procurement

strategies based on the specific circumstances of both sides.The Company has established and continuously improved relevant management systems including the Strategic Supplier Management

Process the Production Material Supplier Management Process the Non-Production Material Supplier Management System the Production

Material Procurement Management Process the Production Material Supplier Performance Management Measures and the Supplier Supply chain performance in

Construction Environment Occupational Health and Safety Agreement. During the reporting period the Company revised several key systems. areas such as environmental * Risk Assessment and Dispute Resolution: The Company extends risk assessment to

all key suppliers as well as non?key suppliers operating in high?ESG?risk industries or

Key updates include: (1) updating supplier performance evaluation indicators by increasing the weight of on-time delivery and customer responsibility labor rights ESG and protection and business ethics regions. For any confirmed material ESG violations it will terminate cooperation.complaints; (2) refining the supplier management process by adding definitions for strategic suppliers material classification and grading and Compliance faces increasing scrutiny from * Strengthening On?Site Audits: The Company conducts on?site supplier audits with

on-site audit timeliness requirements; and (3) optimizing management processes for outsourced processing mold development and strategic Risk investors and customers particular focus on ESG-related risks to avoid supply chain disruptions arising from ESG

suppliers enhancing standardization and efficiency through digital approvals and updated core item lists. creating significant compliance issues.and social responsibility risks.

87 882025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing Unlock New Quality Productive Forces Drive High-Quality Development to Build a Sustainable Future Together on a New Journey

Supplier Management

The Company has built a full lifecycle management system covering supplier onboarding evaluation tiering and exit. Leveraging digital tools and

regular audit mechanisms it systematically enhances supply chain transparency responsiveness and risk resilience. The Company also actively

promotes supplier capability building through targeted empowerment programs committed to developing a sustainable supply chain ecosystem

characterized by collaborative growth and continuous improvement. Tiered Management Elimination and Replacement

* Classify suppliers into four categories (A B C * File a Supplier Elimination Recommendation Form for suppliers rated no higher than

D) based on performance ratings. Consider C for two consecutive months and communicate the elimination plan to relevant

Full Lifecycle Management suppliers rated A for six or more consecutive departments.months for strategic partnerships. Engage * Place suppliers rated D for two consecutive months on the elimination plan through

in normal cooperation with Category B

Supplier Onboarding Performance Evaluation the Procurement Department and initiate elimination activities.suppliers. Apply improvement support or

* Reduce supply share for suppliers on the elimination plan during the three?month

* Evaluate whether to introduce new suppliers based on the Supplier Development Application Form * Conduct monthly supplier elimination measures to Categories C and D

elimination period.and the New Supplier Survey Form. performance evaluations suppliers.* Require suppliers to complete and sign four key Estun agreements: the Quality Agreement the based on quality delivery

* Discontinue procurement for suppliers whose products have market quality issues

and who refuse to resolve them and pursue liability and compensation for losses.General Purchasing Framework Agreement the Confidentiality Agreement and the Supplier technology service and

Commitment Letter. cost following the Supplier

Performance Evaluation and

* Implement enhanced on?site audit timeliness requirements mandating that audits be coordinated

Elimination Management

within five days of supplier development application approval and that audit completion and result

Measures and document the

delivery occur within seven days (with the audit team led by SQE and comprising procurement and

results.technical personnel). Revise the trial production evaluation cycle requiring that trial production

evaluation be completed within one to three months based on material classification after sample

verification passes and that materials be moved to the approved stage only if no major quality or Responsible Procurement

delivery issues arise.Estun adheres to responsible procurement principles. The Company has developed and implemented the Partner Code of Conduct and requires

all suppliers to sign the Supplier Commitment Letter clearly requiring them to consider the direct and indirect social impacts of their business

activities. Suppliers must formally commit to standards covering anti-child labor anti-forced labor safety and health wages and benefits working

hours anti-discrimination fair treatment freedom of association ethical conduct environmental management anti-corruption conflict of interest

and anti-unfair competition with clear liability provisions and remedies for breaches.Supply Chain Audits

In accordance with the Supplier Audit Management Measures the Company regularly conducts new supplier audits mass production supplier

The Company systematically manages hazardous substances and chemicals. It strictly reviews material compositions

process audits and unannounced audits. Based on supplier performance an Annual Supplier Process Audit Plan is developed. On-site audits focus Hazardous and requires suppliers of chemicals materials and components to provide complete compliance documentation

on product development incoming inspection process control customer service and compliance commitments. Audit reports and conclusions Substance

and traceability reports. Green cooperation agreements are also signed with these suppliers clearly defining mutual

are issued with pass criteria requiring scores of no less than 75% for key categories and no less than 60% for general categories. The Company and Chemical

Management environmental responsibilities and obligations thereby minimizing the impact of raw material use on health safety and

requires suppliers to implement corrective actions for identified weaknesses tracks progress and provides system quality and technical guidance

the environment.as needed to ensure timely resolution promoting continuous supplier improvement.Digital Management The Company strictly enforces conflict minerals management in procurement committing not to purchase tantalum

Conflict tin tungsten gold cobalt or their derivatives from conflict-affected and high-risk areas. It ensures supply chain

In procurement the Company uses digital tools to empower supply chain management. The SRM system provides visualized control over Minerals compliance and transparency by requiring suppliers to comply with relevant provisions of the Dodd-Frank Act and

supplier orders and forecasts enabling real-time identification of delivery and capacity bottlenecks. This improves supply chain responsiveness Management disclose the origin of the minerals they use. In 2025 the Company found no evidence of suppliers using conflict

standardizes operating procedures and effectively reduces procurement costs. minerals.Supplier Empowerment

The Company advances a green procurement policy prioritizing suppliers that use renewable energy and practice

To improve supplier quality management the Company organizes specialized technical and management working groups to carry out quality waste minimization. It prioritizes the purchase of green materials and has replaced all metal cleaning agents with

Promoting

improvement initiatives for suppliers whose PPM failure rates do not meet targets or whose quality processes are unstable. By providing technical Green water-based alternatives and all robotic painting processes to water-based paint reducing the environmental impact

support and implementing improvement measures alongside suppliers the Company effectively ensures supply chain product quality while Procurement of procurement activities. Additionally all suppliers must sign the Supplier Commitment Letter which includes

systematically enhancing suppliers' quality management capabilities. environmental protection clauses. A professional EHS team oversees environmental safety and health management

ensuring comprehensive implementation of green procurement.

89 902025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing Unlock New Quality Productive Forces Drive High-Quality Development to Build a Sustainable Future Together on a New Journey

Deepening Industry-Education Integration

Through standardized systems and transparent procurement processes the Company equally protects the legitimate

Equal rights and interests of SME suppliers. In daily cooperation it strictly adheres to framework agreements signed with As a pioneer in intelligent manufacturing Estun has always taken “technology leading industry and education empowering the future” as its

Treatment suppliers ensuring their payment and receivable rights are protected. By requiring all suppliers to sign the Supplier mission. The Company actively collaborates with universities to build platforms for industry-education integration. Through initiatives such as

of SMEs Commitment Letter and continuously promoting a culture of transparent procurement the Company effectively “Engineers on Campus” corporate practice bases and joint training by academic and industry instructors Estun has fostered a diversified “roboticssafeguards suppliers' legal and compliant rights. In 2025 the Company had no overdue payments to SMEs. + education” ecosystem. In doing so it transforms the Company's technological strengths into educational resources and converts universities'

research capabilities into industrial momentum thereby supporting industrial upgrading and economic development.Impact Risk and Opportunity Management Case Industry?Education Integration Technology Service Center Boosts Regional High?Quality Development

To effectively address supply chain challenges the Company has established a supply chain risk management mechanism covering risk In February 2025 Estun officially inaugurated the Intelligent Manufacturing

identification assessment and control. Through internal assessments industry analysis and external advice it systematically identifies analyzes Industry-Education Integration Technology Service Center at the

and evaluates major supply chain risks developing targeted response measures to ensure supply stability. The Company also encourages Chengdu Industry & Trade College's industrial robot training base. The

and standardizes internal reporting of early warning information; any employee may report risks through dedicated channels. Additionally the center's establishment marks a further step in Estun's deep commitment

Company explores digital early warning tools—such as using AI to scan public information for supply chain disruption risks—enhancing the to education. By integrating university and corporate resources the

forward-looking nature of its early warnings. center creates an innovation platform that combines technology R&D

commercialization of outcomes talent development and industrial

services supporting high-quality development of the regional the Intelligent Manufacturing Industry-Education

Indicators and Targets manufacturing industry. Integration Technology Service Center

The Company fully integrates the ESG indicator system into its supply chain management framework to consistently improve related performance.This approach systematically enhances the level and transparency of supply chain management.Case University Partnerships Build Industry?Academia?Research Integration Bases

Indicator Unit 2025 In March 2025 Estun officially launched the Estun Education Ecosystem

Total number of suppliers / 452 and University Plan Co-creation Service Center. Subsequently the

Company signed a strategic cooperation agreement with Nanjing

Tier 1 suppliers / 452 Vocational University of Industry Technology to establish the Co-creation

Number of suppliers by tier

Non?tier 1 suppliers / 0 Service Center. This partnership promotes deep collaboration in

technology R&D talent cultivation and outcome translation. The goal

Chinese suppliers (including suppliers from Hong Kong

/ 445 is to integrate Estun's advanced technology and practical experience

Number of suppliers by region Macao and Taiwan) into university teaching cultivating high-quality skilled talent that meets Signing of the Co-creation Service Center Strategic Cooperation

Agreement with Nanjing University of Industry Technology

Overseas suppliers / 7 industrial development needs and achieving synergy between vocational

education and industrial growth.Suppliers certified under Suppliers certified under Suppliers certified under occupational Supplier integrity

quality management systems environmental management systems health and safety management systems commitment signing rate

372220294100%

Shared Social Development

The 2nd Estun Cup College Students' Robot Competition was recognized as a

provincial-level competition

Total charitable Consumer assistance special Employee volunteer Total employee volunteer and included in the provincial education system's

donations procurement team members service hours 2025 Provincial Competition List for Undergraduate and College

661500 281900 38 130 Students at Regular Higher Education Institutions.RMB RMB

91 922025 Environmental Socialand Governance (ESG) Report Deepening Industry Capabilities to Strengthening Governance to Pursuing Green Development Creating Shared Value and Advancing Unlock New Quality Productive Forces Drive High-Quality Development to Build a Sustainable Future Together on a New Journey

Community Engagement and Charity

Estun actively supports the national rural revitalization strategy and upholds the volunteer spirit of dedication friendship mutual assistance and

progress. The Company has developed and implemented the Corporate and Community Relations Management System and conducts various About This Report

charitable and volunteer activities promoting the sustainable development of both the Company and its communities.This is the fifth Environmental Social and Governance (ESG) report publicly released by Estun Automation Co. Ltd. It aims to inform Financially

Material Issue of the Company's practices and accomplishments in economic social and environmental aspects. Meanwhile the Company also seeks

oversight from Financially Material Issue to enhance its ESG management practices more effectively.Supporting Rural Revitalization

The Company fulfills its social responsibilities through consumer assistance initiatives. It procures high-quality specialty

Reporting Scope Source of Information

agricultural products from rural areas such as apples from Baishui County Shaanxi Province and navel oranges from Ganzhou

City. These efforts help farmers expand sales channels and increase income effectively translating corporate procurement into Organizational Scope: The scope of this report aligns with that of the The operational and management data disclosed in this report are

tangible support for rural revitalization. annual consolidated financial statements of the Company. as of December 31 2025. The data and cases presented in this

Time Range: This report covers the period from January 1 2025 to report are all derived from original operational records or financial

December 31 2025. statements of Estun and its subsidiaries. Unless otherwise specified

Contributing to Public Welfare Reporting Period: This report is an annual report. all monetary amounts mentioned in this report are measured in

RMB. In the event of discrepancies with the financial statements the

The Company is committed to fostering positive financial statements shall prevail.corporate-community relationships and actively Definition of Terms

fulfilling its social responsibilities. During the reporting Preparation Process

period it donated 330 gift packages valued at Abbreviation in the Report Definition of Terms

approximately RMB 8000 to the Guli Subdistrict Develop the preparat ion p lan → Assemble the draf t ing

Estun the Group the

Minors' Welfare Center in Jiangning District Nanjing Company we Estun Automation Co. Ltd. team → Identify Financial ly Material Issue and signif icant

bringing warmth to disadvantaged children in the issues → Determine the reporting framework → Write revise and

community. Additionally the Company donated a CLOOS Carl Cloos Schwei?technik GmbH refine the report → Report review → Report publication → Collect

Rubik's Cube Robot and Five-in-a-Row Robot valued at feedback for continuous improvement.approximately RMB 80000 to the Nanjing Science and TRIO Trio Motion Technology Ltd

Technology Museum making a positive contribution to Estun donates supplies to Minors' Welfare Center Assurance of Accuracy

enhancing public scientific literacy. M.A.i. M.A.I GMBH & CO.KG

The Company assures that there are no false records misleading

statements or significant omissions in the contents of this report

Offering Volunteer Services and is responsible for its truthfulness accuracy and completeness.The Company regulates the management of its volunteer service team through a comprehensive Volunteer Service Team Charter Reporting Principles Report Availability

ensuring the orderly conduct of volunteer activities. During the reporting period the Estun Volunteer Team carefully planned and

executed the Robot Exploration Journey public science education program visiting multiple summer care centers in Jiangning * The GRI Standards by the Global Sustainability Standards Board. This report is available in both Simplified Chinese and English on the

District. Through engaging and lively science sessions the program cultivated a sense of technological curiosity and wonder * The United Nations Sustainable Development Goals (SDGs). official website of the Shenzhen Stock Exchange (http://www.szse.among the children. cn) CNINFO (http://www.cninfo.com.cn) and the official website of * ISO 26000: 2010-Guidance on Social Responsibil ity by the Estun Automation Co. Ltd. (http://www.estun.com). It is also available

International Organization for Standardization. in both Traditional Chinese and English on the website of the Hong

* The national standard Guidance on Social Responsibility Reporting Kong Stock Exchange (http://www.hkexnews.hk). In the event of any

(GB/T36001-2015) by Standardization Administration of China. conflict or discrepancy in interpretation among the three language

* The Shenzhen Stock Exchange Guideline No.17 on Self-Regulation versions the Simplified Chinese version shall prevail.for Listed Companies—Sustainability Reporting (Trial) the Shenzhen

Stock Exchange Guideline No.3 on Self-Regulation for Listed For a hard copy of the report please email zqb@estun.com or

Companies—Preparation of Sustainability Reports (Revised 2026). contact us at 025-52785597.* Environmental Social and Governance Reporting Code by the Hong (To minimize environmental impact we recommend choosing the

Kong Stock Exchange.Estun Volunteer Team conducts "Robot Exploration Journey" public science education program digital version of the report. We appreciate your cooperation!)

93 942025 Environmental Socialand Governance (ESG) Report Key Performance Table

Indicator Unit 2023 2024 2025

Key Performance Table Total exhaust gas emissions 10000 cubic meters 26013.71 20642.28 23379.034

Exhaust gas emissions intensity 10000 cubic meters/RMB 1 million revenue 5.59 5.15 4.78

Environmental Indicators Exhaust gas Non?methane hydrocarbons tonnes 0.35 0.38 0.89Management

Particle matter (PM) tonnes 0.41 0.16 0.27

Indicator Unit 2023 2024 2025 Tin tonnes / 0.14 0.06

Environmental Environmental protection investment million RMB 1.93 1.72 1.98 Nitrogen oxides (NOX) kilograms / 3.55 1.98

Management Environmental pollution incidents / 0 0 0 Hazardous waste generation tonnes 97.44 136.46 140.52

Natural gas cubic meters（m3） 392466.02 396673.24 411416.00 Waste Hazardous waste intensity tonnes/RMB 1 million revenue 0.02 0.03 0.03

Management1 General solid waste generation tonnes 2217 1716.15 1312.11

Gasoline tonnes 18.69 24.27 22.18

General solid waste intensity tonnes/RMB 1 million revenue 0.48 0.42 0.27

Diesel tonnes 26.90 63.18 33.63 Notes: 1. From 2023 to 2024 the statistical scope was limited to operating sites in China; starting from 2025 the statistical scope has been

expanded to include overseas operating sites.Heating oil tonnes / / 36.55

Energy Purchased electricity million kWh 16.17 17.30 16.61 Social Indicators

Management Self?built photovoltaic power Indicator Unit 2023 2024 2025

generation million kWh 1.48 3.45 4.13 R&D investment million RMB 503 503 476

Total comprehensive energy tonnes of standard coal equivalent 2757.85 3204.60 3229.08 R&D R&D investment as a percentage of operating revenue % 10.81 12.55 9.74consumption1 Innovation Number of R&D personnel persons 1201 1032 968

Comprehensive energy consumption tonnes of standard coal R&D personnel as a percentage of total workforce % 31.19 28.89 29.68

intensity 0.59 0.80 0.66equivalent/ RMB 1 million revenue

Total number of suppliers / 499 607 452

Direct GHG emissions (Scope 1) tonnes of CO equivalent 842.00 882.05 1141.76 Supply Chain Chinese suppliers (including Hong Kong 2 Management Macao and Taiwan) / 443 596 445By region

Greenhouse Indirect GHG emissions (Scope 2) tonnes of CO2 equivalent 8721.85 8994.82 8547.69 Overseas suppliers / 56 11 7

Gas

2 Work safety investment million RMB 6.66 5.60 7.04Emissions Total GHG emissions tonnes of CO2 equivalent 9563.85 9876.87 9689.45

Production Major production safety accidents / 0 0 0

tonnes of CO equivalent/

GHG emission intensity 2 2.06 2.46 1.98 Safety

RMB 1 million revenue Work?related fatalities (including dispatched workers) persons 0 0 0

Rate of work?related fatalities (including dispatched workers) % 0 0 0

Water Total water withdrawal tonnes 177681.00 136176.00 158375.64

Resource Total number of employees persons 3851 3572 3261

Management Water withdrawal intensity tonnes/RMB 1 million revenue 38.19 33.97 32.40 Gender Male employees % 80.38 80.40 80.56

1

Total wastewater discharge tonnes / 96461 115694.73 Structure Female employees % 19.62 19.60 19.44

Wastewater discharge intensity tonnes/RMB 1 million revenue / 24.06 23.67 Employees aged 30 and under % 36.02 31.83 28.43

Age Employees aged 31-50 % 54.16 57.61 60.26

Chemical oxygen demand (COD) tonnes 7.20 10.98 20.16 Structure

Employees aged 51 and above % 9.82 10.56 11.31

Ammonia nitrogen tonnes 0.91 1.53 1.91

Employees with associate degree or below % 50.04 48.43 47.41

Suspended solids (SS) tonnes 2.85 9.6 6.62 Academic

Structure Employees with bachelor's degree % 37.70 37.85 39.47

Wastewater Total phosphorus tonnes 0.08 0.19 0.25 Employees with graduate/MBA degree or above % 12.26 13.72 13.12

Management

Total nitrogen tonnes 0.93 0.58 1.48 Technical employees % 31.19 28.89 29.68

Employees

Animal and vegetable oils tonnes 1.23 0.01 0.19 Sales employees % 22.41 23.24 22.97

Professional Finance employees % 2.16 2.32 2.67Petroleum tonnes / 0.05 0.04 Structure Administrative employees % 9.06 10.33 10.40

5-day biochemical oxygen demand

(BOD5) tonnes / 3.37 4.69 Production employees % 33.91 33.90 32.57

Other employees % 1.27 1.32 1.71

Anionic surfactants (LAS) tonnes / 0.04 0.02

Proportion of Chinese female employees in middle and senior

management % 18.91 23.54 15.17

Notes: 1. Total Comprehensive Energy Consumption: Calculated according to the State Administration for Market Regulation and the Standardization

Employee turnover rate % 19 20.18 20.89

Administration's GB/T 2589-2020 General Rules for Calculation of Comprehensive Energy Consumption expressed in units of standard coal. With the stable

operation of the company's photovoltaic power generation project and the improvement of its metering system in 2025 we incorporated the consumption Total online training attendances / 33987 39276 29137

of photovoltaic power into the calculation of total comprehensive energy consumption in accordance with the latest accounting rules and retrospectively Total online training hours hours 81736 113080.26 73224.98

adjusted the comprehensive energy consumption data for 2023 and 2024 to ensure data reliability and consistency. Average online training hours per employee hours 35.9 47.08 33.64

2. GHG Emissions: Exclusively refer to carbon dioxide emissions not including other GHGs such as methane and nitrous oxide. Scope 1 GHG emissions

Community Total charitable donations RMB 2269900 781400 661500

include emissions from the combustion of fossil fuels such as diesel gasoline and natural gas as well as from industrial production processes. The emission Engagement Consumer assistance special procurement RMB 352800 169200 281900

factors for Scope 1 are derived from the guidelines issued by the National Development and Reform Commission: Guidelines for Accounting and Reporting

GHG Emissions for Machinery Manufacturing Enterprises (Trial) and Guidelines for Reporting Environmental Key Performance Indicators. Scope 2 emissions Note: 1. The gender structure data in 2023 is based on operations in China.cover those from outsourced electricity; the emission factors for 2025 power in China are taken from the national average power grid factor published in

the Announcement on the Release of Carbon Dioxide Emission Factors for Electricity in 2023 (Announcement No. 47 of 2025) issued jointly by the Ministry Governance Indicator

of Ecology and Environment and the National Bureau of Statistics. For international operations emission calculations follow Greenhouse gas reporting: Indicator Unit 2023 2024 2025

conversion factors 2024 and Power Sector Carbon Intensity in Germany 2000-2023.Special business ethics and anti?corruption audits times 3 2 3

95 962025 Environmental Socialand Governance (ESG) Report Index Table

Index Table

Hong Kong Stock Exchange

Estun disclosed the information referenced in this index for the period from January 1 2025 to December 31 2025 in accordance with the Reporting Framework Shenzhen Stock Exchange Sustainability Reporting Guidance – Environmental Social and GRI Standards

Shenzhen Stock Exchange – Guidelines for Self-Regulation of Listed Companies No. 17 – Sustainability Reporting (Trial) the Hong Kong Stock Governance Reporting Code

Exchange – Environmental Social and Governance Reporting Code and aligned with the Global Reporting Initiative (GRI) Standards. Pursuing Green Development to Build a Sustainable Future B6 General Disclosure

Environmental Section 19 Section 20 Section 29 Section 33.1 Section A3 General Disclosure

Shenzhen Stock Exchange Sustainability Reporting Hong Kong Stock Exchange

2?27，3?3

Reporting Framework Guidance – Environmental Social and GRI Standards

Management 33.2 A3.1

Governance Reporting Code

A2 General Disclosure

Message from the

/ / 2-22 Section 11.1 Section 11.2 Section 11.3 Section 11.4 A2.1，A2.3

Chairman Section 19 Section 20 Section 21 Section 22.1 Section A3 General Disclosure 2?27，3?3，201?2，

About Estun / / 2?1，2?6，201?1 Addressing Climate 22.2 Section 22.3 Section 23.1 Section 23.2 Section A3.1 302?1，302?3，302?4，

Change 23.3 Section 23.5 Section 24 Section 25.3 Section Climate?related 302?5，305?1，305?2，

Responsibility 2025 / / / 26 Section 27 Section 28 Section 34 Section 35.1 Disclosures(Governance 305-4

Section 35.2 Section 35.3 Strategy Risk Management

Special Focus: Industrial Metrics and Targets)

Embodied Intelligence

– Ushering in a New Section 41 Section 42.2 Section 42.3 Section 42.4 / 203-2 A2 General Disclosure

Era of Human-Machine

Symbiosis Section 34 Section 36.1 Section 36.2 Section 37.2 A2.2，A2.4，A2.5 2?27，3?3，303?1，Resource Management

Section 37.3 A3 General Disclosure 303?3，303?5

Deepening Industry Capabilities to Unlock New Quality Productive Forces A3.1

Section 20 Section 28 Section 34 Section 37.2 A1 General Disclosure 2?27，3?3，303?2，

Creating Industrial Value / 203?1，203?2

Section 41 Section 42.3 Section 42.4 Section 29 Section 30.1 Section 30.2 Section 30.3 Pollution Prevention and A1.1，A1.3，A1.4，A1.5，A1.6 303?4，305?7，306?1，

Section 30.4 Section 30.5 Section 31.1 Section 31.2

Control A3 General Disclosure 306?2，306?3，306?4，

Section 11.1 Section 11.2 Section 11.3 Section 11.4 Section 31.3 Section 37.1 Section 37.2 Section 37.3 A3.1 306-5

R&D Innovation Section 19 Section 41 Section 42.1 Section 42.2 B6.3 2?27，3?3，203?2

Section 42.3 Section 42.4 Section 43.1 A3 General Disclosure

Noise Management Section 29 /

A3.1

Section 11.1 Section 11.2 Section 11.3 Section 11.4

Product Quality and 2?25，2?27，3?3，

Section 19 Section 44 Section 47.1 Section 47.2 B6 General Disclosure

Safety 416?2，417?1 3?3，101?2，101?4，

Section 47.4 A3 General DisclosureBiodiversity Protection Section 29 Section 32.2 101?5，304?1，304?2，

A3.1

Customer Relationship Section 11.1 Section 11.2 Section 11.3 Section 11.4

B6.1，B6.4 2?25，3?3

Management Section 19 Section 44 Section 47.1 Section 47.4 Creating Shared Value and Advancing Together on a New Journey

Strengthening Governance to Drive High-Quality Development B6 General Disclosure 2?7，2?19，2?23，2?27，

B1 General Disclosure

2?9，2?10，2?11，2?12， 2?30，3?3，201?3，B1.1，B1.2

2?17，2?18，2?19，2?20，401?1，401?2，401?3，

Corporate Governance Section 12.2 Section 51 Section 53.1 Section 53.2 Governance Structure B2 General Disclosure

2?21，2?27，3?3， 403?1，403?2，403?3，Human Capital B2.1，B2.2，B2.3

405-1 Section 49 Section 50.1 Section 50.2 Section 50.3 403?4，403?5，403?6，Development B3 General Disclosure

403?7，403?9，403?10，

B3.1，B3.2

Section 12.1 Section 12.3 Section 12.4 Section 12.5 404?1，404?2，405?1，B4 General Disclosure

Section 13 Section 14.1 Section 15.1 Section 15.3 2?12，2?13，2?14，2?16， 406?1，407?1，408?1，

Sustainable Development

Section 17 Section 18.1 Section 18.2 Section 18.3 Governance Structure 2?22，2?24，2?29，3?1， B4.1，B4.2

Management 409?1，412?2

Section 18.4 Section 51 Section 52 Section 53.1 3?2，3?3

Section 53.2 Section 11.1 Section 11.2 Section 11.3 Section11.4

B5 General Disclosure 2?27，3?3，204?1，

Sustainable Supply Chain Section 19 Section 44 Section 45.1 Section45.2

B5.1，B5.2，B5.3，B5.4 408?1，409?1

Section46

Section 11.1 Section 11.2 Section 11.3 Section 11.4 2?27，2?13，2?24，3?3，

Risk and Compliance

Section 12.3 Section 12.4 Section 12.5 Section 19 B6 General Disclosure 207?1，207?2，207?3，

Management

Section 56.1 Section 56.2 417?2，417?3 Shared Social B8 General Disclosure 3?3，203?1，203?2，Section 38 Section 39.2 Section 39.3 Section 40

Development B8.1，B8.2 413-1

Section 11.1 Section 11.2 Section 11.3 Section 11.4 Appendix

Business Ethics and 2?27，3?3，205?2，

Section 19 Section 54 Section 55.1 Section 55.2 B7 General Disclosure

Anti-Corruption 205?3，206?1

Section 55.3 Section 55.4 Reporting PrinciplesAbout This Report / 2?2，2?3

Reporting Boundary

Section 11.1 Section 11.2 Section 11.3 Section 11.4

Information Security Section 19 Section 44 Section 48.1 Section 48.2 B7.1，B7.2，B7.3 2?27，3?3，418?1 Key Performance Table / / 2-4

Section 48.3 Section 48.4

Index Table / / /

97 982025 Environmental Socialand Governance (ESG) Report

Hong Kong Stock Exchange -

Environmental Social and Governance Reporting Code -

Part D: Climate-related Disclosures

Aspect Climate-related Disclosures Index

(a) the governance body(s) (which can include a board Addressing Climate Change - Governance

committee or equivalent body charged with governance) or The Company has incorporated the identification of climate-related

individual(s) responsible for oversight of climate related risks risks and opportunities into its comprehensive risk management

Governance and opportunities. system and conducts regular risk assessments. The Company has

(b) management’s role in the governance processes controls not yet established a mechanism linking executive compensation to

and procedures used to monitor manage and oversee climate change response; it will continue to improve its compensation

climate-related risks and opportunities. policies to promote the achievement of climate-related goals.Climate-related risks and opportunities Addressing Climate Change - Strategy and Management Approach

Based on its current capabilities the Company has conducted a

Business model and value chain qualitative identification and assessment of climate-related risks and

Strategy Strategy and decision-making opportunities along with a financial impact analysis. We plan to carry out a refined identification assessment and analysis of climate-

Financial position financial performance and cash flows related risks and opportunities in 2026 in accordance with standard

requirements and to quantify both current and expected financial

Climate resilience impacts.(a) the processes and related policies it uses to identify assess

prioritise and monitor climate-related risks.(b) the processes the issuer uses to identify assess prioritise

and monitor climate related opportunities (including

information about whether and how the issuer

Risk Management uses cl imate-related scenario analysis to inform its Addressing Climate Change - Impact Risk and Opportunity identification of climate-related Management

opportunities); and

(c) the extent to which and how the processes for identifying

assessing prioritising and monitoring climate-related risks and

opportunities are integrated into and inform the issuer’s overall

risk management process.Addressing Climate Change - Indicators and Targets

Index Table

Regarding the Scope 3 greenhouse gas emissions data the Company

has initiated preparatory work and capability-building efforts

strengthened communication and collaboration with value chain

Greenhouse gas emissions partners and is jointly improving the collection and management of

relevant data. In the future the Company will calculate and disclose its

Scope 3 greenhouse gas emissions data.Regarding the greenhouse gas accounting methodology the Company

continues to apply the same accounting standards as in previous years

to ensure data comparability and consistency.Climate-related transition risks

Due to the current immaturity of existing skills capabilities and

Climate-related physical risks resources the Company is temporarily unable to accurately quantify

the financial impacts of climate-related risks and opportunities.Climate-related opportunities

During the reporting period the Company has not established any

capital expenditures financing or investment projects specifically

Capital deployment dedicated to addressing climate-related risks and opportunities

nor has it applied clear climate labeling classifications to its existing

Metrics and Targets expenditures.Internal carbon prices The Company does not engage in internal carbon pricing so this indicator is not applicable.The Company has not yet established a mechanism linking executive

Remuneration compensation to climate change response so this indicator is not

applicable.Industry-based metrics This is an encouraged disclosure item. This report does not currently disclose industry-specific metrics.Addressing Climate Change - Indicators and Targets

The Company’s greenhouse gas emission targets are set through

internal research with tiered regular monitoring and dynamic

Climate-related targets management and continuous review and supervision of progress toward the targets. These targets have not yet been verified by a third

party nor have industry decarbonization approach been adopted.Since the targets are not net targets they do not involve the use of

carbon credits.Applicability of cross-industry metrics and industry-based The Company has fully referenced cross-industry metrics and

metrics considered their applicability but has not yet taken industry-specific metrics into consideration.

99 PBEstun Automation Co. Ltd.

Address: No. 1888 Jiyin Avenue Jiangning District Nanjing Jiangsu Province

Tel: 025-52785597