Xiamen Jihong Technology Co. Ltd.Environmental Social and Governance

Report 2025

March 2026About This Report 3.Sustainability Management 6.Governance:

Board of Directors Statement 3.1 ESG Governance Stable Operation

Message from the Chairman 3.2 ESG Strategy 6.1 Corporate Governance

3.3 ESG Risk and Opportunity Management

1.About Us 6.2 Risk Management

3.4 ESG Indicators and Targets 6.3 Business Ethics

1.1 Company Profile

4.Environment: Green Future

1.2 Organizational Structure 7.Appendices

4.1 Green Production

1.3 Milestones 7.1 HKEX - Environmental

4.2 Green Office

1.4 Annual ESG Performance Highlights Social and Governance

4.3 Climate Change

1.5 Annual Honors and Awards Reporting Guide Index

4.4 Biodiversity

2.Double Materiality Assessment 7.2 Shenzhen Stock Exchange

5.Social: Giving Back to Society ESG Index

2.1 Identification of Material Issues

5.1 Product Management 目7.3录 Feedback Form2.2 Impact Materiality Assessment 5.2 Supply Chain Management2.3 Financial Materiality Assessment 5.3 Health and Safety2.4 Materiality Assessment Results 5.4 Talent Empowerment

5.5 Public Welfare and CharityThis is the fourth Environmental Social and Governance (ESG) Report issued by Xiamen Jihong

Technology Co. Ltd. Aligned with the principles of objectivity standardization transparency and

comprehensiveness it outlines Jihong Group’s endeavors and accomplishments in fostering

comprehensive coordinated and sustainable development.Reporting Period Reporting Principles

The report covers the period from January 1 2025 to Materiality Principle: The report discloses the process

December 31 2025 while also incorporating relevant of identifying and assessing material ESG issues

information from preceding years. focusing on those that exert significant impacts on the

Company. For detailed information please refer to the

section “Dual Materiality Assessment.”

Report Scope Quantification Principle: Key performance indicators (KPIs) covering environmental and social dimensions

Unless otherwise specified the organizational scope are presented in quantifiable formats. For each

of this report includes Xiamen Jihong Technology Co. quantitative data point the report clearly explains the

Ltd. as well as its branch offices and wholly-owned reference standards calculation methods and

subsidiaries. It is consistent with the consolidated coefficient sources.reporting scope specified in Jihong Group’s annual Principle of Balance: The report maintains an impartial

report. and objective stance comprehensively presenting ESG

performance throughout the reporting period. It fully

covers both positive achievements and negative

References impacts and avoids selective disclosure or omissions

This report extensively referenced the Environmental that may distort readers’ judgment.Social and Governance Reporting Code in Appendix Principle of Consistency: Unless otherwise specified

C2 of the Hong Kong Exchanges and Clearing the data collection methods and statistical calibers in

Market’s Main Board Listing Rules the Shenzhen this report remain consistent with previous reporting

Stock Exchange’s Self-Regulatory Guidelines for years.Listed Companies No.1 - Standardized Operations for

Main Board Listed Companies and Listed Companies Data Description

Self-Regulatory Guidelines No. 17 - Sustainable The financial data and the financial and audit reports

Development Report (Trial); In preparing this report referenced in this report are detailed in the Xiamen

we also consulted the Global Sustainability Standards Jihong Technology Co. Ltd. 2025 Annual Report.Board’s GRI Standards 2021 and the International Other data is primarily sourced from Jihong Group’s

Organization for Standardization’s ISO 26000 - internal statistics. Unless otherwise specified all

Guidance on Social Responsibility. currency va lues presented in th is report are

denominated in the Chinese Renminbi RMB.Addressing Report Availability

To enhance clarity and readability throughout this The electronic version of this report is available for

report “Xiamen Jihong Technology Co. Ltd” is viewing or downloading on Jihong Group’s website

interchangeably referred to as “Jihong Group” “the (http://www.jihong.cn) and the Shenzhen StockCompany” and “we.” Exchange website (http://www.szse.cn).At Jihong Group the Board of Directors as the Company's ultimate governing and decision-making body on ESG matters has delegated full responsibility for ESG

strategy and reporting to the Strategy Committee. The Board of Directors is charged with approving and providing ongoing oversight of key ESG issues and with evaluating

ESG risks to ensure the robustness of the Company's risk control and internal monitoring systems. In addition the Company has established an ESG Decision-Making

Department to drive implementation coordinate cross-functional activities and manage day-to-day ESG operations thereby ensuring effective execution of ESG initiatives.Taking into account the industry profile stage of development business model and development strategy the Company regularly evaluates material ESG issues and

submits the results to the board for review. Issues the board determines to be material with respect to ESG risks and opportunities are incorporated into the Company’s

overall strategy and the effectiveness of related mitigation and management measures is subject to continuous monitoring.The Company also plans to establish targets in key ESG areas—including pollutant emissions energy consumption management water resource consumption

management and carbon emissions. We aim to integrate ESG management performance into daily operational objectives to strengthen ESG governance.This report provides a detailed disclosure t of Jihong Group’s ESG progress and achievements in 2025. It has been reviewed and approved by the Board of Directors.The Board and all Directors confirm that to the best of their knowledge the content of this report is free of any false records misleading statements or material omissions.Each director assumes individual and joint responsibility for ensuring the truthfulness accuracy and completeness of this report.Message from the Chairman

In 2025 the global process of sustainability has continued to accelerate. The deep

integration of the green economy and digital transformation is profoundly reshaping the

global industrial landscape. The Company firmly adheres to its strategic positioning of

green development and dual-engine drive fully integrating ESG principles into corporate

strategy. With technological innovation as the driving force the Company promotes

green transformation to a higher level. Meanwhile guided by a global vision the

Company actively expands into emerging markets continuously enhancing

comprehensive competitiveness and industry leadership in packaging and cross-border

social e-commerce.In terms of green sustainability the Company strengthens environmental

governance and establishes a green production system covering the entire value chain.By further optimizing environmental processes the Company promotes low-carbon

development throughout the full life cycle of packaging products from design and

manufacturing to recycling. Through active implementation of energy conservation and

emission reduction strategies the Company realizes intelligent and refined management

of energy consumption carbon emissions and resource utilization. In 2025 the

Company obtained an additional provincial-level green factory certification further

consolidating its benchmark position in the green development of the industrial chain.In terms of social responsibility the Company continues to adhere to a customer-

centric and quality-based philosophy constantly improving product safety and

environmental standards to fully meet customers’ evolving demand for green products.By deepening ESG collaborative management mechanisms in the supply chain the

Company promotes the formation of a transparent resilient and sustainable business

ecosystem. In talent development the Company is committed to building a diverse and

inclusive development platform optimizing career development channels and enhancing

employees’ sense of belonging and value recognition. In 2025 all production bases have

obtained ISO 9001 Quality Management System certification reflecting the Company’s

rigorous standards and strict requirements in quality management.In terms of corporate governance the Company continuously improves its ESG

governance structure deeply integrating ESG targets into strategic decision-making

and daily operations. The Company has established an efficient governance mechanism

led by the Shareholders’ Meeting the Board of Directors and senior management to

ensure compliant transparent and sustainable operation. Meanwhile the Company has

built a comprehensive risk control system covering supply chain management and data

security. The Company promotes an integrity culture and strengthens compliance

awareness among all employees further consolidating the foundation of corporate

governance.Looking ahead to 2026 the Company will take green innovation as the core

strategic focus. The Company will accelerate the deep integration of intelligent

manufacturing and AI technology into various business sectors driving the dual engines

of green packaging and cross-border social e-commerce into a new stage of high-

quality and coordinated development. The Company will actively expand its global

cooperation network deepen market presence in countries and regions along the Belt

and Road Initiative empower Chinese brands to go global and build a new sustainability

system with global competitiveness. Going forward the Company is ready to work

together with partners from all sectors to jointly create a new blueprint for green

intelligent and inclusive high-quality development.1 About UsXiamen Jihong Technology Co. Ltd.单击此处添加文本内容，简明扼要地阐述您的观点。根 Xiamen Jihong Technology Co. Ltd. (the “Company”)is a leading firm that pursues technological innovation

据需要可酌情增减文字 model innovation and digital intelligence. The Company has

developed a dual-business model encompassing cross-

border social e-commerce and paper-based FMCG

packaging solutions. Through years of focused investment

and market cultivation the Company has achieved

significant scale advantages in its core businesses. Its

paper-based FMCG packaging is the market leader in

China by market share while its cross-border social e-

单击此处添加文本内容，简明扼要地阐述您的观点。根 commerce operations rank among the leading players inChina’s B2C cross-border social e-commerce sector

据需要可酌情增减文字 together forming a sustainable dual-engine growth model.On 27 May 2025 the Company completed an H-Share

IPO and was listed on the Main Board of the Hong Kong

Stock Exchange. This listing achieved several notable firsts:

Jihong became the first mainland company in the

combined sectors of cross-border social e-commerce and

FMCG packaging to achieve A+H dual listing the first

company from Xiamen to secure A+H status and the first

Hong Kong-listed issuer to have its shares included in the

Stock Connect on the day of listing.Organizational Structure 2025 at Jihong Group

Shareholders’

Meeting Corporate Business

Corporate vision culture philosophy

Strategy

Committee Build ten brands with global Focusing on Data-centric technology-

Board of influence. entrepreneurship and forging driven outcome-focused

Directors ahead through difficulties. and all are operators.We have always stuck to

NominationCommittee the principle of “surviving with Running an enterprise is much We strengthen the operatorquality and developing with like rowing a boat against the thinking and embed it into ourcredit” and are dedicated to current; if we let up even operation. We upgrade our

Audit Board building ten brands with global slightly then we risk undoing technologies driven by

Departme Secretary

nt Audit influence to provide high- all of the progress we have business procedures and then

Committee quality products and extremely made. We should remain improve our business

convenient services for global committed to hard work as organizing capability to create

consumers. entrepreneurs and make digitalized and data-centric

headway to maintain our assets which are transformed

General Securities

Remuneration Manager Department vitality and competitiveness. to enhance our reproducing

and capability with big data AI

Assessment Enable partners to achieve Simplicity Perfection and other technologies. Using

Committee

both material and spiritual efficient collaboration goal- data we reinforce the digital

prosperity. oriented effort and operations and innovation

General accountability for results. capabilities of our teams

Manager's

Office To realize employees’ through the circulation and

self-value we strive to We manage to form a accumulation of production

establish a fair and impartial horizontal organizational processing using and

remuneration incentive structure build shoulder-to- reproduction to control quality

management system to shoulder trust and set unified and cost in a strict manner.achieve both material and objectives to remove Thus we achieve high-

spiritual prosperity and estrangement and rift among frequency iteration and rapid

facilitate mutual progress and employees which helps us revolution of our organization

development for individuals work together towards clear which is data-centric

Sustainabi and the Company. and achieve the goal of the technology-driven and

R&D Human

Marketing Operation Procureme Finance Informatio lity company's long-term outcome-focused.Innovation Resources

Center s Center nt Center Center n Center Departme

Center Center sustainable development.ntDecember December July December March

199620032016201720172018

Jihong Group’s predecessor Jihong Group was officially Jihong Group released its Giikin was established to ihong Group upgraded the Jihong Group expanded the

Xiamen Zhengqi was founded and focused on the IPO on the Shenzhen Stock expand our cross-border e- e-commerce management R&D team established a

established specializing in packaging industry building Exchange. commerce business in system v2.0. data analysis team and

graphic design and ten factories across China Southeast Asia which implemented management

advertising planning. to offer comprehensive opened up a new avenue of systems for workflow

marketing and packaging growth for us. product selection financial

design services to leading Jihong Group consecutively settlement order tracking

FMCG companies. entered the markets of Hong and warehousing.Kong Japan Thailand

Malaysia and Singapore.

123456

March May November Early

201920192019201920202020

Jihong Group made Jihong Group formed a Jihong Group launched the Jihong Group formed a Jihong Group initiated a Jihong Group upgraded the

significant efforts to brand operation team. e-commerce management platform e-commerce team. full-scale drive towards workflow management

promote brand strategy and system v3.0. enterprise automation and system V3.0

build corporate culture. intelligence which involved

rolling out a big data system

an intelligent product

selection system and an

automated advertising

system.

7 8 9 10 11 12July November June

202120212021202220222022

Jihong Group tried to Jihong Group established a Jihong Group entered the Jihong Group established Jihong Group rolled out an Jihong Group made

broaden its brand portfolio strategic partnership with Eastern European market. cross-border electric bicycle automated operations significant progress in

by tapping into new markets Huawei Cloud. This and beauty product brands. management system on a achieving our digital strategy

such as lingerie and home partnership enabled it to third-party platform which objectives by implementing

textiles. utilize advanced AI has contributed to the decision support systems

technology and computing exponential growth of orders such as Smart Companion

resources to implement on that platform. Boss Assistant Indicator

intelligent systems for big Monitoring and Talent Map.data analytics ad design

and delivery.

131415161718

January June February September

202220232023202320242024

Jihong Group upgraded the Jihong Group integrated the Jihong Group signed a joint Jihong Group developed and Jihong Group has submitted The current Sheikh of Ras Al

warehousing system and ChatGPT API to empower innovation agreement on the perfected the automated intelligent its application to the Hong Khaimah in the United Arab

achieved fully automated cross-border e-commerce AI large model with Huawei and digital cross-border e- Kong Stock Exchange and Emirates Sheikh Saoud

and intelligent operations. businesses in areas such as Cloud officially launching commerce business management intends to complete an A+H visited the company’s

AI-driven product selection the second phase of system Gikin3.0. On this basis dual listing plan. leadership and both sides

the creation of graphic and cooperation for AIGC-based Jihong Group gradually rolled out engaged in in-depth

video advertising materials deep empowerment of the the e-commerce text vertical model discussions on cooperation

and intelligent ad placement. cross-border e-commerce ChatGiKin-6B the e-commerce channels investment

platform jointly creating the intelligent design and material projects and market

Pangu cross-border e- generation vertical model GiiAI and expansion.commerce large model and the intelligent ad placement

19 20 promoting a deeper level of assistant G-king laying a s2ol2id 23 24

digital transformation. foundation of intelligent systems for

the Company’s long-term

sustainable development in cross-

border e-commerce business.September December May December

2024202420252025

In the same month a Jihong Group issued an Jihong Group was officially Construction of the first

delegation led by the announcement stating our listed on the main board of overseas packaging

Chairman of BMJ Industries intention to co-invest with the Hong Kong Stock production base at Ras Al

- the largest tobacco VENUS TRADING FZCO to Exchange. Khaimah was mostly

production and establish a joint venture AJT completed.manufacturing enterprise in Holding International Limited

the UAE - visited the at the Dubai International

company headquarters and Financial Centre in the UAE.its intelligent packaging This initiative aims to

production base. They highly actively expand overseas

recognized the company’s presence - particularly in

smart manufacturing refined the Middle East and Africa -

operational management and accelerate the

innovative development international layout and

capabilities and steadfast strategic planning of its

commitment to the core cross-border business.philosophy of “greenenvironmentally friendly andsustainable.”

25 26 27 28Governance:

Environment: Green Social: Giving Back to

Enhancing

Future Society

Governance

* 10 factories have been certified under the ISO 14001 * The Company recorded zero product recalls and no * The Company convened four Shareholders’ Meetings

for Environmental Management System. major safety or quality incidents related to products and seven Board of Directors meetings throughout

* The photovoltaic projects at the Anhui factory and and services. the year with 100% attendance by Board members.Xiamen factory are operating stably collectively * All 10 production bases have been certified under ISO * The Company held two earnings briefings responded

achieving carbon reductions equivalent to 2341 9001 for Quality Management System; two to 80 interactive Easy posts and issued 138

tonnes of carbon dioxide. production bases have received BRCGS A+ grade announcements.* The Company obtained green product certification certification; one production base has received * Jihong Group held six anti-corruption training

for express packaging. BRCGS A grade certification; five production bases sessions for employees and senior management. A

* The Company completed carbon verification for ten have undergone FSC certification; and two bases total of 394 participants attended with cumulative

factories and identified key emission risk areas. have obtained FSC trade certification. training hours reaching 23 hours.* The Company spent RMB 136.10 million on R&D * The Company conducted 5-hour anti-corruption

accounting for 2.02% of operating revenue. The training sessions for Board members achieving a

Company employed 602 R&D personnel representing 100% participation rate.

12.66% of the total workforce. * The Company was not involved in any litigation or

* The Company filed 90 new patent applications of administrative penalties related to corruption bribery

which 36 were approved obtained 44 new software or money laundering.copyrights and secured 445 approved patents. * The Company had no litigation or significant

* Zero work-related fatalities occurred with RMB 1.26 administrative penalties arising from unfair

million invested in ensuring production safety; competition practices.* No occupational disease-related incidents were

recorded and employee safety training achieved

100% coverage.

* All ten production bases have obtained ISO 45001

Occupational Health and Safety Management System

certification and undergone internal audits

management reviews and third-party supervision

audits.Selected for the 2025 Listed

Companies Reputation

Awarded the Golden Dawn -

Ranking awarded the title of

ESG Practice Award by

Listed Company with Weekly on Stock

Outstanding Competitiveness

in Overseas Expansion Awarded Top 100 ESG Awarded the 2025 Golden Bull Ranked 34th on the list of

Practices for China Listed

Award for New Consumer 2025 Top 100 Private Service

Companies 2025 by Wind

Benchmark Enterprises of Fujian Province

ESG Rating2 Double Materiality

Assessment

In 2025 the Company carried out a materiality assessment to establish the double

materiality matrix for 2025. This process enables the Company to balance the pursuit of

economic value with environmental and social obligations delivering sustainable value for all

stakeholders.To strengthen ESG management and improve information disclosure the Company conducts materiality assessments to identify ESG issues in

2025 in reference to the Hong Kong Exchanges and Clearing Limited (HKEX)’s Environmental Social and Governance Reporting Code and the

Shenzhen Stock Exchange’s Listed Companies Self-Regulatory Guidelines No. 17 - Sustainable Development Report (Trial).Materiality Assessment Process

Issue identification Screening and Review and

assessment confirmation

The Company reviews the key ESG The Company comprehensively After the assessment process

topics and the concerns of various assesses issues based on their impact methodology and Material Issues

stakeholders benchmarks against materiality and financial materiality to Matrix are reviewed and approved by

domestic and international peers and determine the double materiality the Strategy Committee they will be

identifies key ESG issues. issues that have significant submitted to the Board of Directors

implications for our sustainable for final approval and disclosed in

development. accordance with regulations.

1 2 3The Company always attaches high priority to engagement with stakeholders by establishing a structured stakeholder engagement system and refining response and feedback

mechanisms to ensure timely and effective communication. To scientifically identify material ESG issues and enhance the quality of related management and practices we

conducted stakeholder engagement research which systematically gathered views and recommendations on sustainability from shareholders customers government and

regulators employees partners the media community representatives and other relevant parties. Through a standardized process of impact materiality assessment we

comprehensively evaluated the implications of various issues for the external environment and stakeholders. This has laid a solid foundation for the formulation and implementation

of sustainability strategies while continuously strengthening management and operational performance on material issues.Impact Materiality Assessment Process

Setting metrics Quantitative assessment criteria have been established across multiple metrics—including the scale scope irreversibility and likelihood of potential impacts associated with each issue—with a scoring scale ranging from 1 to 5 points.Stakeholder

Questionnaire surveys are administered to capture key stakeholders’ perceived materiality of environmental social and governance (ESG) issues and to assess the actual impacts of different issues on diverse stakeholder groups.participation

Collecting feedback Input and feedback on a full range of ESG issues are collected from internal and external stakeholders through expert consultations thematic seminars and comprehensive questionnaire surveys.Defining priorities Based on the above qualitative and quantitative analytical outcomes appropriate materiality thresholds are determined and issues are ranked in order of priority.Stakeholder Communication at Jihong Group

Stakeholders Issues of concern Communication forms Stakeholders Issues of concern Communication forms

* Shareholders’ Meeting * Employee satisfaction survey

* Regular reports and announcements * Internal office systems* Corporate governance

Shareholders * * Interim announcements and notices

* Employee Rights and Interests * Internal communication meetings

Risk management

* * Company website Employees * Employee training and development * Employee complaints and feedbackCircular economy * Investor mailbox * Health and safety * Internal and external training activities

* Online and offline investor meetings * Publicity activities of corporate culture

* Employee care activities

* Project procurement

* * WeChat official accountProduct carbon footprint Partners *

* Supplier contracts and agreements

Responsible marketing

* Customer satisfaction survey * * Supplier audit and evaluation* Product responsibility Supply chain management* Product survey feedback * Supplier assistance and cooperation

Customers * Technological innovation * Customer complaint and handling * Other supplier communication activities* Customer satisfaction

* * Online and offline activity promotionResponsible marketing

* * Company website and social media Information security and privacy protection

interaction * Addressing climate change* Product carbon footprint * Exclusive interviews

Media * Energy and resource conservation * Company website and social media

* Waste management interaction

* Pollutant emissions

* * Information disclosureGovernments Corporate governance

* * Daily communication and reporting

* Community activities

Risk management * Supervision and inspections Community and regulators * Community development and investment * Public welfare activities* Business ethics and anti-corruption * Visitor receptions representatives * Pollutant emissions * Company website and social media interactionThe Company conducted financial materiality assessments to systematically evaluate the potential impacts of environmental social and governance (ESG) issues on financial

performance. This assessment analyzes the potential links between ESG issues and the Company’s revenues operating expenses assets liabilities and cash flows. It identifies

key risks and opportunities affecting financial performance and prioritizes their materiality based on the magnitude of their financial impact. The findings provide a robust

foundation for strategic decision-making and resource allocation while strengthening financial resilience and capacity for long-term value creation.Financial Materiality Assessment Process

Financial indicator Suggestion collecting and

correlation verification

Through financial indicator mapping The Company gathers internal and external

management interviews and professional insights through internal

cross?departmental research the Company management discussions departmental

clarifies the impact pathways and correlation surveys stakeholder questionnaires and

mechanisms between each issue and thematic symposiums to verify and calibrate

specific financial indicators — including the comprehensiveness and accuracy of the

revenue expenses assets liabilities and assessment outcomes.cash flows.

12345

Impact identification and Materiality assessment Conclusion and

analysis and grading application

Based on the probability of occurrence and Using a qualitative-led assessment approach Based on the final scoring results we

the magnitude of financial impact associated supported by quantitative analysis the establish a financially material issue list

with risks and opportunities the Company Company conducts a comprehensive scoring clarify the financial impact of each issue

maps out financial transmission pathways of issues on a scale of 1 to 5 points. A and prioritize these issues. The results are

identifies the financial risks and materiality threshold of 3 points or higher is integrated into the Company’s strategic

opportunities inherent in each issue and applied to determine financially material planning and risk management framework to

establishes a list of key issues with issues. guide targeted resource allocation.substantial financial implications.The Company comprehensively assesses relevant issues across the dual metrics of impact materiality and financial materiality taking into account industry characteristics the

Company’s business profile regulation developments and the core concerns of stakeholders. Based on a weighted analysis of the assessment outcomes the Company has

finalized the identification of 19 material issues and developed the 2025 ESG Material Issues Matrix. This provides an evidence-based and systematic foundation for the

formulation and implementation of the Company’s sustainability strategy.JIHONG GROUP 2025 5

ESG MATERIALISSUES MATRIX Very important Information Security and Privacy Protection Product Responsibility Very important

Health and Safety

Customer Satisfaction

4.5 Responsible Marketing

Risk Management Corporate Governance Technological Innovation

Supply Chain Management

4 Product Carbon Footprint

Employee Rights and Interests

Business Ethics and Anti-Corruption

Pollute Emissions

3.5

Addressing Climate Change

3 Waste Management

Issues that have both financial materiality and impact

Issues of impact materiality Employee Training and materiality

Development

2.5 Circular Economy

Energy and Resource Conservation

2

mI

p 1.5

a

tc

M Community Development and 1 EnvironmentalInvestment

ate Issues that have neither impact materiality nor financial Issues of financial materiality Social r 0.5 materiality

aili Not important Very importantt Governancey

0

00.511.522.533.544.55

Financial Materiality3 Sustainability

Management

Jihong Group firmly recognizes sustainability as a critical engine driving long-term stable

growth and creating diversified value. The concept of sustainability has long been deeply

embedded in all dimensions of corporate strategy and daily operations. The Company

continuously enhances its ESG management system rigorously manages ESG-related risks and

opportunities and endeavors to achieve synergistic win-win outcomes among corporate growth

social value and environmental benefits. Through these efforts the Company steadily

strengthens sustainability governance capabilities and practical performance.Upholding the core ESG vision of “Technology for Good Stability for Long-term Growth”

the Company fully embeds the principles of sustainability into strategic planning and day-to-day

The Company establishes a tiered efficient management structure with clear authorities and

operations while establishing a robust strategic implementation framework and well-defined

responsibilities. The Board of Directors serves as the supreme decision-making and oversightexecution roadmap. Guided by the governance principles of “integrating into corporate strategybody for the ESG agenda with full responsibility for reviewing sustainability strategies. Thecollaborating on business development and aligning with global standards” the Company has

Strategy Committee under the Board is mandated to approve and provide ongoing supervision of

developed a comprehensive ESG management system strategic objectives performance

material ESG -related matters. The ESG Decision-making Department is established to drive

mechanisms and information disclosure framework. Sustainability requirements are systematically

coordinate and administer the day-to-day implementation of ESG initiatives.integrated into corporate governance and core business processes ensuring the consistency and

sustainability of ESG management practices.Jihong Group's ESG Management Framework Jihong Group's ESG Governance Principles

Board of Directors Integrating Into Corporate Strateg

* Authorize the Strategy Committee to approve and supervise ESG-related matters. * From a strategic perspective we integrate ESG responsibilities into the corporate

development strategy to achieve unified deployment and coordinated

advancement;

* We establish an ESG key indicator system that aligns with the characteristics of

Strategy Committee the enterprise build a closed-loop management system for corporate ESG

governance and coordinate development in economic social and environmental

aspects.* Develop ESG strategic plans management structures systems strategies and

implementation rules to ensure policy implementation;

* Identify key ESG issues develop relevant guidelines and review ratings; Collaborating On Business Development

* Assess ESG risks and opportunities monitor significant risks and develop response

measures as well as review and supervise the handling and rectification of relevant

issues; * We persist in integrating ESG management concepts into internal operations and

* Review ESG tasks and internal monitoring system and provide recommendations on external business outputs;

their suitability and effectiveness; * We strengthen the vertical integration with various departments and branches to

* Review ESG-related disclosure documents including but not limited to annual ESG ensure the formation of an efficient and powerful ESG work network achieving the

reports; close integration of the Company’s ESG responsibilities and business operations.* Regularly report to the Board of Directors and provide ESG-related training and

materials to ensure ESG governance capabilities.ESG Decision-making Department Aligning With Globa l Standards

* In accordance with ESG international standards national standards regulatory

* Coordinate supervise and manage the overall risks associated with the requirements and other relevant policies and initiatives we advance the

Company’s business operations and quality control; Company’s systematic standard and routine ESG management to align with

* Collaborate with relevant departments to carry out ESG risk prevention and global standards in aspects such as policy systems management systems

management and conduct irregular reviews. process mechanisms action measures and performance management.The Company conducts systematic risk and opportunity assessments for financially material issues closely monitors evolving market trends and formulates and implements

targeted management measures to continuously strengthen the adaptability and responsiveness of ESG strategies. Combined with the industry’s characteristicsand the Company’s

actual development status wehave defined clear phased time horizons forassessing ESG-related risks and opportunities:short-term (by 2030) medium-term (by 2040) and long-

term (by 2050).The Company has established a comprehensive strategy promotion framework and a well-defined implementation roadmap to advance the deep integration of ESG

governance into core business operations creating sustainable long-term value for all stakeholders.ESG Risk/Opportunity Analysis at Jihong Group

Type Field Level Time Overview Measures Financial Impact

Range

1. Data Security Protection： The Company leverages Simple Log Service (SLS) to enable end-to-end data collection storage

desensitization and audit traceability across the full data chain. We identify sensitive data via plug-in modules.This concerns data asset security user trust compliance

2. Network Risk Governance： The Company deploys cloud firewalls Web Application Firewalls (WAF) and Cloud Security Center

governance and the sustainability of digital transformation. The

Information for classified protection covering vulnerability scanning hacking detection and active blocking of compromised hosts.Company will fully embed relevant governance mechanisms

security and 3. Information Security Compliance： Supported by compliance solutions and privacy protection technologies including Alibaba Operational costs increase due to compliance penalties

High Long-term throughout business operations establish a management system

privacy Cloud infrastructure and in conjunction with Security Manager services we strictly ensure compliance of data collection and use. and compensation arising from data breach risks.and long-term action roadmap covering the full data lifecycle and

protection 4. Risk Monitoring and Auditing: Through integrated operation management and log auditing functions of the Cloud Security Center

continuously strengthen assurance capabilities through regular

we establish a mechanism for regular security monitoring and auditing and carry out cybersecurity drills.monitoring and review.

5. Full-Scenario Security Support： Alibaba Cloud Multi-Factor Authentication (MFA) is deployed to comprehensively support

information security objectives.The Company’s products cover fastmoving consumer goods 1. Quality System Improvement： The production base continues to advance ISO 9001 BRCGS and FSC certifications.packaging and cross-border commodities. Noncompliant product 2. Raw Material Control： A procurement review mechanism is established. We prioritize the use of eco-compliant raw materials

Product quality may trigger customer complaints product returns cost and actively promote biodegradable packaging solutions. Revenue decline as a result of weakened market

High Long-term

responsibility escalation brand impairment and customer attrition as well as 3. Full-Chain Quality Inspection Collaboration： End-to-end quality inspection data—from new product launch to incoming material competitiveness caused by substandard product quality.potential platform penalties and compliance risks which will create inspection—serves as the core indicator for supplier performance evaluation. This drives continuous improvement among

sustained adverse impacts. suppliers and fosters a collaborative internal and external quality ecosystem.Customer satisfaction directly drives customer retention and

Risk/ 1. The Company builds a customer satisfaction system and conducts regular questionnaire surveys. Declining customer satisfaction may lead to customer business development. Low satisfaction may result in customer

Customer 2. The Company promotes service standardization and delivers skill training to customer service personnel. attrition market share loss and reduced revenue;

Opportunity High Long-term churn reputational damage and revenue contraction; conversely satisfaction 3. The Company builds a customer feedback closed-loop system to support product and service iteration. conversely improved customer satisfaction helps

strong satisfaction enhances loyalty and builds a sustainable

4. The Company carries out regular customer care initiatives to enhance customer satisfaction. enhance market share.

competitive advantage.Technological innovation serves as the core pillar of the Company’s

dual-engine strategy with a focus on four priority areas: AI 1. The Company maintains annual R&D investment accounting for no less than 2% of total operating revenue.Lagging technological iteration drives up R&D costs;

Technological applications intelligent printing green packaging materials and 2. The Company establishes a talent incentive mechanism strengthens industry-university cooperation to bring in high-caliber AI

High Long-term conversely proactive R&D investment and activities

innovation crossborder ecommerce digitalization. The strategic objectives are professionals and enhances R&D capabilities.contribute to revenue growth.to deepen business penetration expand market coverage and 3. The Company collaborates with leading manufacturers to develop new AI-driven products tailored to specific business scenarios.support intelligent upgrading.

1. Packaging Process Optimization： In line with the principle of standardization recycling reduction and harmlessness the

The Company’s product carbon footprint covers the full lifecycle of Company upgrades incoming inspection promotes recyclable packaging boxes and eco-friendly adhesive tapes and optimizes

packaging products including production raw material product design to reduce material consumption.Product procurement logistics and transportation and waste recycling. 2. Deepen Green Awareness of Supply Chain： The Company regularly communicates environmental information to suppliers Excessive carbon emissions increase supply chain

carbon High Long-term Excessive carbon emissions expose the Company to risks including transforming passive compliance into proactive green cooperation. compliance costs while consumer resistance against

footprint carbon border tariffs supply chain regulations and consumer 3. Energy Conservation and Emission Reduction During Production： The Company promotes energy-saving renovation and process green consumption trends may lead to revenue decline.resistance which may increase compliance costs restrict market optimization and accelerates the application of clean energy such as photovoltaic power generation. The production base in

access and harm corporate reputation. Hohhot invested RMB3.436 million in a 2.0MWp distributed photovoltaic power plant which has been fully completed and

officially put into operation.At Jihong Group the Strategy Committee is responsible for reviewing ESG risk and opportunity assessment findings. To enhance the standardisation and systematic oversight

of ESG risk management the Company fully integrates ESG risks into its existing risk management framework and has established a closed-loop governance mechanism covering

risk identification risk assessment and risk response. Through institutionalised processes regular monitoring and periodic optimisation this mechanism enables dynamic oversight

and long-term governance of ESG risks. It not only effectively mitigates risk exposure but also delivers structured support for the Company to identify and capitalise on

sustainability opportunities boosting resilience and long-term value creation capacity in complex environments.ESG Risk Management Process at Jihong Group

Risk Identificati Risk Assessment Risk Response

* The Company systematically identifies * The Company conducts regular risk * Based on ESG risk assessment outcomes

environmental social and governance risks assessments comprehensively evaluating the Company implements a tiered response

and integrates climate?related ESG risks based on impact magnitude mechanism and adopts multi-dimensional

considerations into risk assessment likelihood of occurrence and severity of governance measures. The Company

processes. We progressively establish and harm. Risks are categorized into high enforces management mechanisms for

regularly update the ESG risk database. medium and low levels through a scoring high-risk issues applies control measures

methodology with risk management to medium-risk issues and conducts

priorities determined accordingly. routine monitoring and optimization for

low-risk issues.* For medium?to?high risk issues that may

trigger emergencies the Company

develops specialized response procedures

and control measures and formulates

contingency plans tailored to risk

characteristics strengthening emergency

response capabilities.* On an annual basis the Company conducts

a systematic review of ESG risk

management practices assesses internal

and external risk trends and refines risk

control measures in line with industry

developments driving the iteration of the

ESG risk management system.The Company institutionalizes the strategic integration and closed-loop management of key ESG issues. The Company establishes short- medium- and long-term targets for

core ESG priorities with clearly defined implementation pathways and accountable parties. Through an annual assessment mechanism the Company consistently monitors

progress conducts gap analysis and refines strategies to ensure the coordinated advancement of ESG governance and business growth and to drive the effective delivery of

sustainability goals.Jihong Group's ESG Indicators and Targets Progress

Pillar

Strategic Pillar Strategic

Sub Items Targets Progress in Targets Sub Items Targets Progress in Targets

ESG ESG Issues

Issues

* Rate of sensitive data identification: Supply Chain Responsibility Awareness: Through

100% effective communication the Company has

* Rate of data encryption/anonymization:

* Deployed Alibaba Cloud SLS logging actively promoted health and environmental

100%

service and completed sensitive data protection concepts in product packaging.* No major data leaks throughout the year To achieve 100% coverage of sample inspection for all

Data Security Protection identification and debugging. Strict sampling inspections have been

* The incidence of general data breaches defective products.* Encrypted/anonymized all data collection Product Supply Chain Responsibility implemented achieving 100% coverage for all

has decreased by 80% or more year-on- To identify and develop at least 2 new sustainable products

storage and transmission. Responsibility and Product Sustainability defective samples.year To upgrade no fewer than 5 products annually to optimize the Three new eco-friendly products were

* Accuracy of log auditing traceability: customer service experience successfully developed.

99% Guided by the customer feedback mechanism

more than 10 products were optimized for quality

* Coverage of network vulnerability improvement.scanning: 100% * Deployed full-level protection products

* Time limit for repairing high-risk such as cloud firewall and WAF.vulnerability: within 24 hours * The coverage of vulnerability scanning The customer satisfaction survey mechanism was

* Rate of web attack interception: no reached 100% and the rate of high-risk To establish an omnichannel satisfaction system: covering the

Network Security Governance Customer Satisfaction launched covering three major touchpoints:

fewer than 99.9% vulnerability repair compliance reached entire pre-sales in-sales and after-sales processes with an Monitoring System consumer habits logistics services and customer

* No major hacking incidents throughout 100%. overall satisfaction rate of at least 96%. service. The overall satisfaction rate stood at 96%+

the year * The rate of web attack interception

* Time limit for handling compromise hosts: remained stable at 99.93%. Customer The Company developed guidelines on Customer

Information within one hour To maintain a service standardization rate to 100%: conduct Satisfaction Service Standardization and Service Policy and conducted customer service customer service training annually with a problem-solving rate Training System training achieving a 100% standardization rate and

Security of at least 95%. a 100% problem-solving rate.* Established a full-scenario risk monitoring

and Privacy * Coverage of risk monitoring: 100% mechanism with a coverage of 100%.* At least two security drills every year The work order system was used and a key issue

Risk Monitoring and Audit * Conducted one security drill to ensure the Customer Feedback Closed- To implement a closed-loop feedback mechanism: achieving a Protection * Emergency response capability improves response mechanism was established with a achievement of our capability improvement loop Mechanism customer complaint handling rate of 100%.by 30% complaint handling rate of 100%.goals by the end of the year.To build an enterprise-level AI middle platform integrating MCP

AI Infrastructure and Phase I was launched and Phase II is 50%

knowledge bases and workflow to lower the threshold for AI

Capacity Building developed and will be launched in 2026 Q2.Technological application and improve business efficiency by 100%.* To apply Alibaba Cloud's full series of * Fully applied Alibaba Cloud's full series of

security products security products. Innovation To integrate one-stop AI tools including image generation The latest image and video generation tool is 60%

Full Scenario Security Support * Coverage of multi-factor authentication * Achieved 100% MFA coverage for all Integration and Application video production and copywriting creation to realize a 100% developed and will be released by the end of

(MFA): 100% employees. of Intelligent Tools improvement in content creation efficiency. February 2026.* Rate of security protection: 100% * Deployed full-scenario security protection.The Company hosted internal carbon footprint

1.To preliminarily explore the carbon footprint of key products.

lessons included low-carbon issues in

Low Carbon Transformation 2.To advocate low-carbon transformation to suppliers.* Coverage of information security training: communication with suppliers and customers and Product and Carbon Footprint 3.To explore energy efficiency and carbon reduction in logistics 100% systematically examined carbon emissions in the Exploring operations.Employee Information Security * To improve the information security Carbon logistics process entering the stage of preliminary 4.To build consensus on green cooperation with customers.Awareness and Behavior management system Ongoing exploration and consensus building.Management * Coverage of risk assessment: 100% Footprint

* No major information security incidents Carbon Management and To complete the Scope 1 and Scope 2 carbon inventory and

* Rate of customer data breach: 0 Emission Reduction establish a comprehensive monitoring system for carbon Ongoing

Planning inventory indicators by 2026.4 Environment:

Green Future

Jihong Group deeply implements the green development philosophy throughout the entire

operational value chain spanning green production green office climate change response and

ecological protection. The Group continuously strengthens green manufacturing capabilities

upholds the principles of energy conservation and emission reduction builds an environmentally

responsible enterprise and delivers solid support for the green transformation of the industry.In terms of green production the Company continuously strengthens environmental management Environmental Facility Management

optimizes resource utilization efficiency maintains strict compliance with emission standards and

The Company has formulated the Operating Procedures for Environmental Facilities which define the

innovates green product design. These efforts promote the harmonious coexistence of operational

responsibilities of all departments and personnel and integrated environmental protection into the

activities and the environment while enhancing green competitiveness.performance appraisal system to ensure clear accountability and effective implementation. The Company

conducts regular inspection maintenance and upkeep of environmental facilities maintains complete

4.1.1 Green Production equipment ledgers and operation records and ensures an equipment integrity rate of 100%. Meanwhile the

Company continues to increase investment in environmental facilities to guarantee their stable and

Jihong Group has established a threedimensional management structure with the environmental

continuous operation further enhance the efficiency of pollutant treatment and achieve systematic

management system as its core the emergency management system as the guarantee environmental

improvements in environmental management performance.protection facility management as the foundation and environmental awareness cultivation as the

support. Through this framework the Group continuously enhances environmental management

efficiency and risk control capabilities. Environmental Awareness Building

The Company is committed to incorporating environmental awareness into daily operations laying a

Environmental Management System solid foundation for sustainability actions and building a related talent pipeline. Each production facility

Law of the People’s actively organizes environmental training covering environmental regulations cleaner production principles Jihong Group complies with relevant laws and regulations such as the

Republic of China on Environmental Protection the Law of the People’s Republic of China on and facility operation skills as core components of regular training. Through a combination of internal

Environmental Impact Assessment the Forest Law of the People’s Republic of China lectures external expert guidance and on-site practical training the Company continuously strengthens the . To reduce the

environmental literacy and professional capabilities of all employees.environmental impact during production the Company has also developed internal policies including

an Environmental Management System. We conduct internal inspections and external audits in line with

the requirements of the ISO 14001 Environmental Management System standard to ensure the effective

operation of our environmental management system. In 2025 all 10 production bases successfully ISO 14001 Environmental

obtained ISO 14001 certification with no environmental violations recorded throughout the year. Among Management System Certification

these the Langfang factory and Hohhot factory were recognized as Provincial-Level Green Factories

while the Anhui facility was awarded Municipal-Level Green Factory status.Emergency Management System

The Company has formulated an Environmental Protection Emergency Plan and established an

environmental emergency response mechanism covering organizational structure responsibility

allocation response procedures and resource deployment to standardize the management and

handling of environmental emergencies. The Company has set up an emergency response leadership

team to coordinate accident assessment and disposal. Through regular emergency drills we

continuously enhance employees’ practical capabilities and our overall environmental risk control

capacity. Meanwhile we strictly adhere to the Classified Administration Catalogue of Environmental

Impact Assessments for Construction Projects and engage qualified professional institutions to

conduct environmental impact assessments implementing environmental risk control at the source.4.1.2 Resource Management Photovoltaic Power Generation System

The Company continuously optimizes resource allocation and utilization efficiency proactively

pursues energy conservation and emission reduction enhances the energy management system

strengthens water resource management and fully implements eco-friendly and sustainability

strategies.Energy Management

The Company strictly complies with applicable laws and regulations including the Law of the

People’s Republic of China on Energy Conservation. Based on actual production and operation we

established the Energy Conservation and Consumption Reduction Management System Energy

Conservation and Consumption Reduction Organizational Management System Energy

Conservation and Emissions Reduction Management System and Energy Conservation

Management System. The Ningxia factory set a target to reduce energy consumption per unit by Energy Consumption at Jihong Group

20%. The Hohhot factory established an energy-saving management team to coordinate and

advance relevant initiatives systematically implement energy-saving technological upgrades optimize Indicator Unit 2025

production processes and improve energy monitoring and recycling.Gasoline ton 34.88

Ningxia Factory:

Diesel ton 47.49

Energy management target: to reduce energy consumption per unit by 20%

·Eliminate high-energy-consuming equipment: We have fully adopted high-efficiency energy-saving Natural Gas cubic meter 2964369.04Energy-saving equipment and completed LED lighting retrofits across workshops warehouses office areas and other

equipment and facilities.technological ·Promote the application of variable frequency technology: Variable frequency drives have been installed Purchased Electricity kWh 57032609.70

upgrade on fans pumps and other equipment to adjust power output based on operational demand and improve energy efficiency.·Optimize production planning: Materials and production schedules are reasonably coordinated to Purchased Heat GJ 36907.28

Production and minimize energy consumption from equipment idling and standby modes.operation ·Implement staggered electricity consumption: During the off-peak season from March to August each

optimization year we adopt single-shift production and arrange night-shift operations to take full advantage of off- Total Energy Consumption tce 11990.82

peak electricity pricing thereby reducing power costs.·Enhance the energy monitoring system: Electricity meters have been installed on key machinery and in

highenergyconsumption zones to enable realtime monitoring and analysis of power consumption data

Energy monitoring supporting the identification of anomalies and energysaving opportunities. Energy Consumption

tce/RMB 1 million of revenue 1.78

and recycling ·Promote waste heat recovery and utilization: Through waste heat recovery units high-temperature Intensity

steam waste heat is reused for heating production and domestic water replacing traditional electric

heating methods.The Company continues to optimize its energy mix actively develop clean energy and improve

overall energy efficiency through process innovation and technological upgrading. Two production

bases located in Xiamen and Anhui have installed photovoltaic power generation systems to

effectively utilize renewable energy. In 2025 Anhui factory generated approximately 2.12 million kWh

of photovoltaic electricity achieving a carbon emission reduction of about 1158 tCO2e (tons of

carbon dioxide equivalent). The Xiamen factory generated approximately 2.29 million kWh of

electricity annually reducing carbon emissions by around 1183 tCO2e. The stable operation of these

photovoltaic projects has lowered the carbon footprint of production operations and steadily

advanced green development initiatives.Through the aforementioned initiatives the Company has achieved phased progress in water resource

Water Resource Management management. Notably the Hohhot factory has been successfully accredited as one of the Second Batch of

The Company strictly complies with applicable laws and regulations including the Water Law of the Water-Saving Enterprises in Hohhot City for 2025. Moving forward the Company will continue to explore

People’s Republic of China. The Company has formulated and refined the Water Conservation innovative water-saving technologies steadfastly advance the continuous improvement of water utilization

Management System and Water Resources Management Measures clearly defining the responsibilities efficiency and contribute to the sustainable development of both the enterprise and the environment.for water resources management. Each factory proactively implements institutional requirements. For Water Use at Jihong Group

instance the Hohhot factory has established a water conservation management leading group and

appointed a water resources administrator for daily monitoring and supervision. It adopts a multi-

pronged approach encompassing management optimization technological upgrading and awareness Indicator Unit 2025

promotion to ensure standardized and efficient water resources management. The Ningxia factory has

continuously advanced water resources recycling. Wastewater that has been treated to meet discharge

standards undergoes further purification for reclaimed water reuse which is then applied to greening

irrigation equipment cleaning and workshop floor washing. These efforts support the factory in Water Consu mption ton 176119.80

achieving its water resources management target of raising the water reuse rate to above 85%.Ningxia Factory: Water Consumption

ton/RMB 1 million of revenue 26.17

Intensity

Water management target: to raise the water reuse rate to above 85%

Water Resource Management Measures

The Company has installed water meters at all key water consumption

points including workshops critical processes office buildings and staff

Optimize water dormitories enabling zone-by-zone and category-by-category accurate

metering and metering of water usage. Through monthly collection analysis and

process monitoring comparison of data across different sites the Company achieves real-time

monitoring of water consumption promptly identifies and addresses

abnormal water usage providing a solid data foundation for refined

management and continuous optimization.The Company has carried out technological upgrades for condensate

Promote condensate recovery systems in facilities including heat exchange stations. Steam

water recovery and condensate generated during production is recovered softened and reused

as non-production water such as domestic water. This initiative not only

waste heat directly reduces freshwater intake but also recovers waste heat from the

utilization condensate delivering the dual benefits of water conservation and energy

savings.The Company is committed to fostering a companywide watersavingculture. The Company organizes an annual campaign “Month of WaterDeepen water- Conservation Promotion” to widely disseminate watersaving knowledge and

saving promotion water management requirements through factory notice boards internal

and training for all messaging platforms and dedicated lectures. Meanwhile watersaving

staff awareness and behavioral standards are included in mandatory prejob

training for new employees ensuring that a strong resource conservation

mindset is established from the outset of employment.4.1.3 Emission Management The Company’s production wastewater is treated through neutralization and sedimentation processes to meet relevant standards and is fully reused for on-site applications including landscaping irrigation

The Company is committed to building a green and low-carbon operation system and has equipment cleaning and workshop floor washing. This approach improves water utilization efficiency and

established a standardized emissions management mechanism covering key wastewater waste gas achieves zero discharge of industrial wastewater. To ensure the long-term stable operation of the sewage

solid waste and noise. Such efforts effectively mitigate the environmental impact of production and treatment system the wastewater management department conducts systematic cleaning and inspects key

operation activities with a steadfast commitment to sustainability. components for wear and tear every six months in accordance with the actual operating conditions of the

equipment.Emission Management Target

To ensure effective emissions management the Company has set clear emissions management Waste Water Emissions

targets to uphold environmental compliance and drive continuous improvement across operations.The core target is to achieve stable and compliant emissions: ensuring that emissions of waste gas

wastewater noise and other pollutants meet applicable national and local environmental standards Indicator Unit 2025

while attaining a 100% safe disposal rate for hazardous waste. To support the delivery of these

targets the Company has developed a detailed environmental monitoring plan under which we

conduct regular monitoring of major pollutants and track environmental performance in real time. In Industrial Wastewater ton 6793.30

addition the Company engages qualified third-party institutions to carry out professional Discharge

environmental assessments. Based on the assessment findings the Company timely formulates and

implements targeted improvement measures continuously enhancing environmental management

capabilities and risk control level. Domestic Sewage ton

Discharge 76341.33

Emission management target: Ensuring that emissions of waste gas wastewater

noise and other pollutants meet applicable national and local environmental

standards while attaining a 100% safe disposal rate for hazardous waste.Waste Water

The Company strictly adheres to the Law of the People’s Republic of China on Water Pollution

Prevention and Control and the Regulation on Urban Drainage and Sewage Treatment and has

established a Production Wastewater Treatment Management System. The Company adopts grid-

based management clarifies the safety management responsibilities of personnel in charge of

sewage treatment stations and integrates such responsibilities into the performance appraisal

system to ensure compliant wastewater treatment and prevent the illegal discharge of untreated

wastewater.The Company is equipped with comprehensive wastewater treatment facilities which adopt

biochemical treatment filtration adsorption and other processes to treat both production wastewater

and domestic sewage ensuring that effluent quality meets discharge or reuse standards.Waste Gas The Company implements classified collection storage and treatment of all types of solid waste

The Company strictly complies with the Law of the People’s Republic of China on Prevention generated during production. General solid waste is sorted and collected before being transferred to

and Control of Atmospheric Pollution and other relevant laws and regulations and has established a professional service providers for standardized disposal. For hazardous waste the Company formulates and

Prevention and Control System for Waste Water Waste Gas Dust and Solid Wastes. The Company submits management plans in accordance with the requirements of environmental authorities. Each

conducts environmental impact assessments and discloses the relevant results to ensure full department is responsible for categorized collection record-keeping and filing with regular transfer to

compliance with emission standards. In addition the Company places emphasis on the effective designated departments for centralized storage in dedicated warehouses ensuring segregated storage and

treatment of exhaust emissions generated in enclosed production spaces. Through standardized regulated transportation.installation of pollution control facilities and adoption of high-efficiency dust removal and filtration The Company appoints dedicated personnel to oversee the full lifecycle of hazardous waste including

technologies we achieve centralized treatment of exhaust gases. In line with the emission storage inventory and transfer and collaborates with qualified professional institutions to ensure compliant

characteristics of different production processes the Company implements differentiated treatment disposal. Meanwhile a complete management ledger is maintained to accurately record the generation

plans to ensure sustained compliance with national standards minimizing the environmental impact storage transfer and disposal of hazardous waste enabling full-process traceability and standardized

of production and operation activities. management.To minimize waste generation at the source the Company continuously advances cleaner production

Waste Gas Treatment for Different Processes initiatives. The Company evaluates and optimizes production processes to eliminate redundant procedures

Type of Waste and material waste. Furthermore while ensuring product quality the Company prioritizes the use of eco-

Process Category Treatment friendly raw materials including renewable pulp water-based environmentally friendly inks and

Gas biodegradable adhesives. The Company strives to achieve the dual objectives of source pollution reduction

Printing Adopt both adsorption and photocatalytic Organic compounds and enhanced resource efficiency driving the transition toward a greener production model.technology to efficiently purify organic compounds

Waste paper Install bag filter for effective collection and Solid Waste Generation

Dust purification ensuring dust emissions meet

packaging standards Waste Types Unit 2025

Offset printing Install a dual treatment device of photocatalytic and Total amount of hazardous ton 148.83

VOCs filter cotton adsorption to ensure stable and Hazardous Waste waste

process compliant exhaust gas treatment Hazardous Waste ton/RMB 1 million of

0.02

Waste Gas Emissions Intensity revenue

Total Amount of Non-

Types of Emissions Unit 2025 Non-Hazardous ton 622.76hazardous Waste

Waste

Nitrogen Oxides ton 1.53 Non-hazardous Waste ton/RMB 1 million of 0.09

Intensity revenue

Sulfur Oxides ton 0.08 Kitchen Waste ton 101.61

Domestic Waste ton 507.04

Particulate Matter ton 0.18 Usage of paper ton 14.12

Solid Waste Noise Management

The Company strictly complies with the Law of the People’s Republic of China on The Company attaches significant importance to noise control throughout production to ensure that

Environmental Protection the Law of the People’s Republic of China on the Prevention and Control noise at the boundary complies with environmental standards. For high-noise equipment including air

of Environmental Pollution by Solid Wastes and other relevant laws and regulations. Based on compressors fans and printing machines the Company has implemented comprehensive noise-reduction

production needs the Company has established a Hazardous Waste Management System. The measures such as installing shock absorbers mufflers and acoustic enclosures. These measures

Company adheres to the fundamental principles of resource utilization reduction and harmless effectively reduce noise generated by equipment during operation enabling the Company to fulfill

treatment in waste management setting clear waste management targets to ensure the compliant environmental responsibilities.handling of all solid wastes.4.1.4 Green Products

Jihong Group is committed to the research and development of eco-friendly packaging materials and has earned green product certification for express packaging. The

Company actively works to reduce plastic use and minimize material consumption providing high-value sustainable solutions to customers.Green Product Highlight Cases

An automated By implementing the optimization initiative to reduce the basis weight of outer linerboard and inner

conveying device and linerboard from 200g to 170g the Company expects to lower the raw paper cost per square meter by

method for producing approximately 3%–5%. While maintaining equivalent product strength and performance the initiative

has achieved product lightweighting helping to reduce the consumption of natural fiber resources such

multi-wall high- as wood pulp. Meanwhile the adoption of eco-friendly modified starch adhesive delivers extremely low

strength corrugated VOC emissions. These measures not only facilitate the transformation of the corrugated packaging

cardboard with V- industry toward high-performance lightweight and green development but also elevate the overall

shaped flute technological level of the sector.Against the backdrop of massive consumption in logistics packaging the Company has launched a

patented green packaging box. At its core the product embodies a whole-life-cycle green philosophy:

raw materials are biodegradable and renewable capable of complete decomposition within

Cardboard packaging approximately six months under composting conditions; production adheres to environmental compliance

standards and employs energy-saving and water-saving processes; and resource consumption is

box reduced through lightweight design. The materials used are safe and non-toxic with environmentally

friendly water-based inks ensuring both human health and environmental protection. This product fully

meets national green standards and the Company has initiated green product certification to lead the

industry toward an efficient circular and low-carbon future.Use of Packaging Materials at Jihong Group

Indicator Unit 2025

Use of packaging

ton 12456.97

materials

Intensity of use of ton/RMB 1 million of

1.85

packaging materials revenue Express Packaging Green Product Certification CertificateThe Company deeply integrates the concept of green office into operation management and promotes energy conservation emission reduction and efficient resource

utilization through institutional norms technological upgrades and cultural guidance.Green Office Practice

Dimension Approach Description. The Company implements a zone-based responsibility system for electricity management clarifying energy-saving behavioral norms such as “lights offDivision and supervision of zone-and equipment powered off when not in use.” Administrative departments conduct daily inspections to eliminate energy waste from prolonged lighting and

based electricity responsibility

idle standby equipment.Energy Efficiency Lighting system energy-saving Traditional lighting fixtures are replaced with LED energy-saving lamps with workshop lighting controlled by motion sensors or light sensors. renovation Voice-activated switches are installed in public areas supported by a lighting strategy that prioritizes zoned control and maximizes the use of natural light.Air conditioner cooling is set no lower than 26°C in summer and heating no higher than 20°C in winter with the air conditioning turned off 30 minutes

Energy consumption control over

before the end of work.air conditioner and equipment

Office equipment is managed centrally and powered off during non-working hours with air conditioner turned off 30 minutes before the end of work.The Company fully promotes electronic approval online meetings and document-sharing systems to reduce paper consumption.Paperless office

Printing is set to double-sided by default and the reuse of waste paper is encouraged.Resource Saving Water saving management and Water-saving valve cores are installed with strengthened daily inspections to prevent water leakage and dripping. facility optimization The reuse of leftover water from pantry areas for watering green plants is promoted.Standardized household waste Classified storage areas are established to implement solid waste sorting management.treatment Energy-saving reminders are posted in dining areas with behavioral guidance reinforced through assessment mechanisms.Energy-saving and water-saving signs are displayed throughout office areas. Employees are encouraged to use reusable water bottles and shopping bags

Environmental awareness building

fostering green and low-carbon daily habits.Green Culture

Green office environment The Company installs indoor greenery provides ergonomic seating and deploys air purifiers to enhance employee health and workplace comfort creating

improvement an eco-friendly and healthy office environment.4.3.1 Governance

The Company actively aligns with the national “dual carbon” goals integrates climate change response deeply into the ESG governance framework and establishes a three-tiered governance structure comprising the

Board of Directors the Strategy Committee and the ESG Decision-Making Department. The Company evaluates the potential impacts of climate-related risks—including extreme weather events policy and regulatory

changes and market transitions—on business operations and develops and implements targeted adaptation and mitigation strategies.The company has incorporated environmental indicators into the management

performance appraisal system to ensure the effective implementation of climate change targets.Climate Change Governance Structure at Jihong Group

Board of Directors * Review sustainability strategies and goals related to climate as the highest decision-making body for addressing climate change and regularly receive reports on ESG-related work.Strategy Committee * Fulfill supervision responsibilities for climate goals risk assessments and disclosure documents.* Listen to reports from the ESG Decision-Making Department on climate change issues and regularly report to the Board of Directors.ESG Decision-Making

* Responsible for promotion cross-departmental coordination and specific implementation of climate affairs.Department

4.3.2 Strategy1

The Company has fully mainstreamed climate change action into its long-term development plan while formulating and implementing the Action Plan for Carbon Peaking and Carbon Neutrality of Jihong along with

a carbon reduction roadmap. The Company identifies climate-related risks based on actual production and operations and develops targeted response measures. Meanwhile the Company proactively captures climate-

related opportunities and explores sustainable packaging solutions within the paper-based FMCG packaging business. Through strategic adjustments the Company strives to achieve a win-win between business growth

and sustainable development continuously enhancing market competitiveness. In 2025 the Company promoted the use of clean energy alternatives especially PV generation projects by investing RMB3.436 million in

distributed photovoltaic projects.Climate Risk Identification and Response

Risk Type Risk Description Countermeasures

Against the backdrop of a growing industry consensus on ·Set science-based carbon targets: Develop clear short-term and long-term emission

Low-carbon Policy low?carbon transition and increasingly stringent carbon emission reduction plans and a phased implementation roadmap to ensure targets are quantifiable

Requirements quota allocation the Company is confronted with sustained measurable and traceable.pressure on carbon-related costs. ·Accelerate lowcarbon technology application: Proactively introduce energysaving equipment

and renewable energy solutions to reduce carbon emission intensity in production and

Stricter regulations have significantly raised compliance costs operations at the source.Policy Risks Tightening Regulatory Transition requiring systematic carbon verification and proactive elimination of ·Engage flexibly in carbon trading mechanisms: Rationalize the use of carbon trading

Requirements high-energy-consuming and outdated production facilities. systems and adjust emission quotas through market-based approaches to support the Risks achievement of emission reduction goals.·Establish a systematic management system: Implement a normalized carbon emission

Environmental issues at upstream suppliers may lead to production monitoring reporting and verification mechanism continuously evaluate and optimize

disruptions which could impair the stable supply of raw materials

Litigation Risk Response emission reduction measures and promote closed-loop management for low-carbon

and timely delivery of finished products potentially resulting in legal operations.disputes.

1.The compan y is temporar ily unable t o o btain the releva nt inf ormation a t reas on able cost or effo rt so t he c ompany a pplies t he r easonable i nform ation waiv er claus e in the C lim ate Disclo sure Implem entation

Guidelines of th e Hong Ko ng Stock Exchange. We plan to conduct scenario analysis in the coming years.Climate Risk Identification and Response

Risk Type Risk Description Countermeasures

Cost of Upgrading

Equipment upgrading and retrofitting to enhance energy efficiency will Establish an energy management system and reduce overall energy consumption by introducing high-efficiency energy-saving equipment deploying

Low-Carbon Emission

inevitably increase shortterm capital expenditure and operating costs. intelligent energy control platforms and continuously optimizing production processes.Technologies

·Drive green product innovation: Develop and launch ecofriendly product lines with lowcarbon attributes to precisely respond to market demand for

Heightened consumer awareness of low-carbon products presents risks of sustainable consumption.customer churn and declining market share if traditional product offerings and ·Build a sustainable brand image: Systematically communicate environmental practices and values to enhance the brand’s reputation and appeal in

Changing Behaviors marketing strategies fail to keep pace. sustainability.and Preferences of Downstream customers are integrating low-carbon requirements into their ·Disclose product carbon footprint: Proactively measure and disclose product carbon footprint information to build consumer trust through data

Customers procurement criteria while upstream suppliers face the risk of order losses or transparency.Technology elevated cooperation barriers if they lack green products or a clear carbon-

and Market neutral development roadmap. ·Obtain established green certifications: Actively acquire recognized domestic and international environmental labels and certifications to provide credible

Risks green endorsement for products and strengthen market competitiveness.·Conduct supply chain climate vulnerability analysis: Assess the exposure and sensitivity of upstream links to climate change risks and develop graded

response strategies accordingly.Transition ·Implement diversified supplier base layout: Strategically expand the list and geographical distribution of qualified suppliers for key materials to reduce Key raw materials are under the dual pressure of supply contraction and quality

Rising Raw Material over-reliance on a single source.Risks volatility which may directly drive up production costs reduce operational Costs ·Invest in supplier climate resilience: Support key suppliers in enhancing operational resilience to climate impacts through technology sharing capacity

efficiency and destabilize the quality of finished products.building or financial support.·Establish key material buffer inventory strategy: Establish a dynamic safety stock mechanism based on risk levels for identified high-risk raw materials to

buffer short-term supply disruptions.·Incorporate climate goals into core strategies: Develop a climate action roadmap deeply integrated with business operations to ensure emission reduction

targets align with long-term development strategy.·Establish a normalized climate disclosure mechanism: Regularly publish verified climate action and performance reports remain open to public scrutiny

Escalating climaterelated demands from stakeholders if met with inadequate or

Reputational and strengthen stakeholder trust.Negative Publicity delayed responses could expose the Company to reputational damage eroded

Risks ·Lead or deeply participate in industry climate initiatives: Join or initiate industry low-carbon alliances to jointly shape standards share best practices and

stakeholder trust and heightened compliance risks.enhance voice and influence in the low-carbon transition.·Establish two-way communication channels for stakeholders: Regularly conduct systematic dialogues on climate issues proactively respond to concerns

from all parties and translate external expectations into continuous input for strategy optimization.Increase in Frequency ·Systematically assess physical risks: Conduct risk assessments for extreme weather and climate events identify critical impacts on operating assets and

and Intensity of supply chains and develop hierarchical emergency plans.Extreme weather events may directly damage critical production facilities

Extreme Weather ·Enhance the resilience of critical infrastructure: Complete disaster-resistant reinforcement and adaptive retrofit for core facilities such as facilities

Physical Acute Risks storage assets and operational equipment leading to asset losses business Events such as warehouses and data centers to improve defense capabilities against climate disasters including floods and storms.interruptions and risks to employee safety.Typhoons Storms ·Build company-wide climate emergency response capabilities: Comprehensively enhance employees’ awareness of extreme weather prevention

Risks Floods and Droughts emergency response skills and safety assurance through regular training and simulation drills laying a solid foundation for operational risk prevention.Climate Change and Rising energy consumption across production facilities and office spaces has

Chronic Establish a comprehensive climate change emergency plan and adopt financial instruments such as insurance for risk transfer aiming to ensure business

Rise in Average directly pushed up energy expenses. Concurrently adverse environmental or

Risks continuity and minimize potential financial losses.Temperature working conditions may contribute to a decline in overall productivity.4.3.3 Risk Management

To effectively address climate change the Company has established a sound climate risk

management system which systematically identifies and assesses both physical and transition risks

and develops targeted response measures. We have formulated dedicated emergency response plans

for flood prevention typhoon protection and periods of severe pollution with the aim of minimizing

physical risks and ensuring business continuity.

4.3.4 Indicators and Targets2

The Company regularly discloses greenhouse gas (GHG) emissions data to ensure transparency

and comparability. To date the Company has completed carbon verification for all ten factories

providing a solid data foundation for advancing carbon reduction targets identifying emission hotspots

and pinpointing risk concentrations. We set a target to reduce GHG emissions intensity by 5% in 2025

compared to 2024 and we have achieved this target on schedule.The Company reduces its carbon

emissions through proactive emission reduction measures and has not yet implemented internal carbon

pricing for management purposes.GHG Emissions

Indicator Unit 2025

Scope 1 GHG emissions tCO?e 6754.41

Scope 2 GHG emissions tCO?e 34321.30

Scope 1 + Scope 2 GHG emissions3 tCO?e 41075.71

GHG emissions intensity tCO?e/RMB 1 million of revenue 6.10

2.Regarding climate-related financial impacts cross-sectoral indicators and Scope 3 greenhouse gas

emissions the underlying data collection is still in progress and the supporting information is

incomplete. In accordance with the reasonable information exemption clause in the Hong Kong Stock

Exchange’s Implementation Guidelines on Climate-related Financial Disclosures the Company does

not disclose cross-sectoral indicators and Scope 3 GHG data in this report.

3.GHG accounting is presented in terms of carbon dioxide equivalent (CO2e) in accordance with the

Announcement on the Issuance of Carbon Dioxide Emission Factors for Electricity in 2023 issued by

the Ministry of Ecology and Environment of the People's Republic of China and the IPCC 2006 Revised

Guide to National GHG Inventories 2019 issued by the Intergovernmental Panel on Climate Change

(IPCC).To effectively fulfill the responsibility of biodiversity conservation Jihong Group complies with the Environmental Protection Law of the People’s

Republic of China the Forest Law of the People’s Republic of China the Law of the People’s Republic of China on the Protection of Wildlife and other

relevant laws and regulations which standardize biodiversity protection processes.Prior to project construction the Company strictly implements the environmental impact assessment system and follows the risk management

process of identification mitigation transfer acceptance and control. Through scientific assessment the Company proactively avoids and minimizes

potential impacts on biodiversity. In parallel the Company has established a dynamic optimization mechanism to continuously improve factory

management policies and conservation measures based on assessment outcomes driving biodiversity conservation efforts toward a more systematic and

refined approach.Biodiversity Protection Management Process

·Raw Material Procurement Stage: Assess potential biodiversity risks linked to sourcing endangered or protected raw materials.Risk ·Production Process Stage: Evaluate how energy consumption and pollutant emissions during manufacturing affect local ecosystems and biodiversity.Identification ·Transportation Stage: Analyze the environmental impact of fuel consumption and exhaust emissions as well as how transportation activities disrupt roadside ecosystems.·Waste Disposal Stage: Identify risks related to improper disposal of solid waste and wastewater which can harm soil water bodies and air biodiversity.·Optimizing Raw Material Procurement: Source materials from sustainable suppliers avoiding those linked to endangered or protected species. Work closely with suppliers to

promote eco-friendly procurement practices.·Improving Production Processes: Adopt energy-efficient technologies and environmentally friendly equipment to reduce energy consumption and pollutant emissions.Risk Mitigation ·Green Transportation Management: Optimize transport routes to improve efficiency and reduce fuel use. Encourage the transition to new energy vehicles to lower

transportation-related environmental impact.·Enhancing Waste Management: Establish and improve solid waste and wastewater treatment facilities to ensure compliant discharge. Promote waste classification recycling

and resource recovery to reduce environmental strain.·Insurance Strategy: Purchase environmental liability insurance to cover potential compensation costs if biodiversity damage occurs due to environmental pollution.Risk Transfer ·Partnerships and Agreements: Establish clear environmental responsibility agreements with suppliers customers and business partners to reinforce biodiversity protection

across the supply chain.·Financial Reserves: Set aside environmental risk reserves to cover potential costs related to biodiversity damage.Risk Acceptance ·Adjusting Business Strategies: Modify business strategies as needed to mitigate the impact of risks on business performance.·Developing Environmental Incident Emergency Plans: Implement rapid response protocols for environmental incidents. Conduct regular emergency drills to ensure employees are

prepared to handle biodiversity-related emergencies effectively.·Establishing an Internal Audit System: Conduct regular environmental audits to evaluate the effectiveness of risk management efforts. Use audit findings to refine management

Risk Control policies and operational procedures for continuous improvement.·Monitoring and Evaluation Mechanism: Continuously assess production and operational activities to identify potential biodiversity risks early. Implement an environmental

monitoring system to track wastewater waste gas and solid waste emissions in real-time and through scheduled evaluations.5 Social:

Giving Back to Society

In pursuing sustainable development the social dimension has long been a fundamental

cornerstone for the Company to build trust and create shared value with all stakeholders. The

commitment to social responsibility is reflected not only in product innovation and service

optimization but also in every aspect of supply chain collaboration employee development health

and safety management and community prosperity. The Company strives to build a sustainable

future together with all sectors of society.Responsible product management represents not only a source of corporate competitiveness but Quality and Safety Policies and Goals at Jihong Group

also a profound commitment to society. Jihong Group is dedicated to providing safe reliable and

sustainable products and services through a full life cycle quality management system a customer- Guiding Documents: Documents providing overall

centric service mechanism stringent information security safeguards continuous technological Quality Plan Leadership information about the organization’s QMS to internal

innovation and R&D and systematic intellectual property protection. In doing so we create long-term or external parties

value for our customers and contribute to social progress through technological strength.

5.1.1 Quality Management Implementation Documents: Documents used to Procedural Documents Management control processes

Quality Management System Third-Level Documents: Work

Operational Documents: Documents specifying work

Jihong Group strictly complies with the Product Quality Law of the People's Republic of China Instructions Inspection Procedures Execution instructions for task execution

and other relevant laws and regulations. Based on its operational needs the Company has established and Standards

a quality management system and formulated over 30 internal management policies and procedures

including the Quality Risk Assessment and Control Procedures the Glass and Fragile Items Control

Measures and the Product Recall and Simulated Recall Control Procedures which define clear Verification Documents：Documents serving as On-Site

standards and specifications for various quality inspections continuously improving product quality. Quality Records evidence that products meet requirements and that Activities

To continuously enhance the product quality management system the Company has formulated the system operates effectively

quality and safety policies and goals and established a quality management structure to fully ensure

product quality and safety. Meanwhile stringent controls are implemented across all critical stages of

the product lifecycle ensuring that product quality complies with relevant regulatory and systematic

standards and consistently meets customer requirements. In 2025 the Company recorded zero

product recalls and no major safety or quality incidents related to products and services. Jihong Group’s Quality Management Structure

Quality Quality

Quality Control

Control Control Process Inspector

Department

Manager Supervisor

System Shipment Inspector

Specialist

Incoming

Quality Control

InspectorQuality Management Certification Quality Management Measures

As of the end of the reporting period all ten production bases of Jihong Group have obtained To comprehensively enhance the efficiency and effectiveness of quality management the

ISO 9001 Quality Management System certification establishing a systematic and standardized Company is advancing the digital transformation of its quality management system. By integrating

comprehensive management guarantee and laying a solid foundation for the continuous ERP4 and MES5 systems we have established a full closed-loop management chain covering business

improvement of product quality. operations and production execution realizing full transparency of the production process and refined

quality traceability. Against this foundation the Company has continued to implement the one-code-

per-box whole-process labeling management system enabling precise traceability and efficient

control from raw material procurement to finished product delivery. Such practices continuously

10 production bases have obtained the ISO 9001 Quality elevate the sophistication of quality management and deliver more reliable product quality assurance

to customers.Management System certification

One-Code-Per-Box Labeling Closed-Loop Management Process

2 production bases have received BRCGS A+ grade * Assigning unique serial numbers to each label to

certification and 1 production base has received BRCGS Label Serial accurately control printing volumes at the source

A grade certification Number laying a traceable foundation for source data

management.

5 production bases have completed FSC certification * Determine the application quantity based on the plan.* Conducting first-piece verification of label printing;

Label Printing * Printing labels according to the planned quantity;

* Handing over the printed labels and record the

details in the Label Printing Application Record Form.

2 bases completed FSC trade certification * Conducting first-piece verification again during

machine production and send it to the designated

Label WeChat group for supervision.Application * Planning label usage per production batch during

machine operation ensuring a step-by-step closed-

Jihong Group’s Quality Management Certificates loop process.* At the end of each shift the machine operator team

Label leader and QC personnel jointly verify the quantity of

each label type to ensure that total consumption

Verification matches the quantity received thereby achieving full

closed-loop management.

4.ERP （Enterprise Resource Planning）

5.MES （Manufacturing Execution System）The Company has established a cross-border product quality management system covering the full cycle of sourcing warehousing and logistics which systematically safeguards product

quality and customer experience for the e-commerce business. In the sourcing stage the Company focuses on product quality market adaptability and consumer demand and implements strict

control over product selection criteria. In the warehousing stage refined warehouse management and environmental control are adopted to ensure safe storage and stable quality of goods. In the

logistics stage strict performance supervision is imposed on logistics carriers to guarantee product integrity throughout the transportation process.Quality Management Measures for Cross-Border Social E-Commerce Business

Sourcing Warehousing Logistics

* Inbound Inspection: Follow strict receiving procedures conduct unpacking inspections and

accept goods only if they meet company quality standards. * Supplier Requirements: Logistics suppliers must provide high-quality air and land

* Product Selection: Selectors choose products and input details. * In-inventory storage： Follow proper storage principles—heavy items at the bottom light transportation routes and meet established standards for handling customer complaints.* Review Mechanism: Product selection team leaders review categories to ensure they meet items on top; large items at the bottom small items on top—to prevent damage. * Shipment Management: The logistics department oversees supplier management while the

market demand and quality standards. * Quality Inspection: Conduct daily weekly and monthly quality and quantity checks and customer service team handles logistics coordination ensuring compliance with

maintain strict inventory supervision. transportation management procedures.* Smart Applications: Develop a warehouse management app for intelligent inventory control.Through centralized management of calibration and inspection coupled with lean optimization of internal inspection processes the Company has established a sustainable cost-saving mechanism within quality

control procedures. This has delivered tangible results in cost reduction and efficiency improvement effectively enhancing the economic efficiency of quality management.Cost Reduction and Efficiency Improvement Measures at Jihong Group

Unify external calibration to achieve We have promoted three facilities to establish centralized calibration cooperation with external instrument calibration institutions and following implementation the overall calibration cost of each facility has been significantly

cost reduction by scale reduced.Integrate external inspection to reduce

We have successfully negotiated with external testing organizations to consolidate the testing projects of the three facilities into a unified submission for inspection and this measure has been fully implemented.testing costs

Optimize internal sampling to reduce The sample retention system and destructive sampling procedures at the three facilities have been revised. By scientifically adjusting the frequency quantity and sampling ratio of sample retention cost savings have been

resource consumption realized while ensuring the effectiveness of quality monitoring.On September 16 2025 Xiaogan Factory and On November 6 2025 at the McDonald's Global Supplier Quality Conference in Indonesia Xiaogan Factory and

On July 18 2025 at the McDonald's Supplier Quality Forum Xiaogan Factory won the "Class-A

Langfang Factory were both selected as the "Class-A Langfang Factory respectively won the first and second prizes of the "Food Safety Quality Culture Tour" and the

Quality Medal."

Quality Award" for H1 2025. Company won the Excellent Team Award for Food Safety Culture.Quality

Manag

ement

AwardsQuality Culture Building

To build a sound quality management system the Company continuously promotes a strong quality culture. Through Monthly Quality Meetings and Weekly Quality Review Meetings the Company systematically

reviews and plans quality objectives and performance. In addition the Company organized management personnel from all production facilities to complete BRCGS6 7.0 certification training and carried out selection and

recognition activities to enhance quality awareness and professional competence among all employees. These initiatives strengthen employees’ motivation and sense of honor in participating in quality improvement and

facilitate the integration of quality culture into daily operations and practices.Case: Monthly Quality Meeting Case: BRCGS 7.0 Standar d Sp ecialized Training

To continuously enhance product quality and customer satisfaction the Company organizes monthly quality meetings across

The Company has arranged unified specialized training on the BRCGS 7.0 standard for all management personnel at food packaging

three FCP factories. These meetings bring together management and key machine operators from each facility to jointly review

factories. A total of 42 employees participated all of whom passed the assessment and obtained internal auditor certification. This

quality performance against the previous month’s targets analyze typical quality issues and formulate improvement and

demonstrates that the Company has established a professional full-coverage internal quality audit team.preventive measures. Through in-depth discussion the meetings strengthen team-wide quality awareness promote the effective

implementation of quality control mechanisms in daily operations and drive the continuous optimization of product quality.Case: Quality Awarding Conference

To further strengthen quality awareness among all employees the Company regularly recognizes and publicizes outstanding performance

by collectives and individuals in quality management. By setting benchmarks and commending advanced examples the Company motivates all

Activities at employees to learn from excellence embed high standards and strict requirements into every aspect of daily operations and jointly

Monthly Quality Meetings

strengthen the foundation of quality culture.Case: Weekly Quality Review Meetings

The Quality Department holds weekly quality review meetings to focus on quality issues identified in the previous week. At

each meeting the responsible department leads machine operator teams in discussion develops detailed improvement plans

and assigns supervisors to follow up and report progress. Regular weekly reviews enable timely rectification and closed-loop Printing Quality Excellence Unit Post-Printing Quality Excellence

management of quality issues support ongoing refinement of production processes and further elevate product quality and Quality Awarding Conference Award Unit Award

customer satisfaction.Quality Awarding

Conference GMP Excellence Unit Award Bag-Making Quality Excellence Unit Award Monthly "Quality Star" AwardWeekly Quality Review Meetings

6.BRCGS：Brand Reputation through Compliance Global Standards5.1.2 Customer Service

Jihong Group adheres to a customer-centric approach focusing on enhancing user experience. The Company is committed to delivering a high-quality service experience covering the entire pre-sales sales and

after-sales process. To ensure standardized and efficient services the Company has formulated internal management documents including the Customer Service Process Management Procedures and the Customer

Maintenance Management System and established a communication and management mechanism covering the entire customer lifecycle. The Company strives to accurately respond to customer demands continuously

optimize service quality and improve customer satisfaction.Customer Complaint Handling

Jihong Group consistently regards customer feedback as a vital source of value creation. The Group has formulated the Customer Complaint Handling Operation Process (For Sales Segment) to clarify

responsibilities and standards for each procedure and established a systematic hierarchical and cross-departmental collaborative customer complaint management system. With the goal of rapid response fair handling

and thorough improvement the system drives internal process optimization to reduce the customer complaint rate at the source and enhance customer satisfaction.The Company has established a robust customer complaint handling process deeply integrated with multiple business processes ensuring full traceability of issues and clear assignment of accountability. Corrective

actions are effectively embedded into relevant operational procedures forming closed-loop management. To allocate resources rationally and respond promptly to major concerns the Company has implemented a four-

level customer complaint rating system (Levels A–D) with differentiated response times and processing requirements for different levels to ensure priority handling of key issues.Customer Complaint Handling Process at Jihong Group

Receive Customer Complaints Assign a Department to Follow Up Handle Customer Complaints

* When there is a customer complaint the Company promptly communicates * The Company analyses causes and responsibilities as soon as possible after * The company communicates with and coordinates with customers to avoid

with customers and handles complaints follows up on internal issue handling receiving customer complaint information. the risk of returns.and responds to the customer. * The Company provides professional investigation reports and feedback on * The Company arranges personnel for rework follow-up or selection at the

corrective measures to customers in collaboration with the relevant customer's site.responsible departments. * The Company initiates the standardized return process if necessary.In 2025 the Company further optimized the customer complaint handling process and strengthened systematic training for relevant personnel. We intensified root-cause analysis of customer complaints promoting

internal improvement by identifying the underlying causes. A customer complaint rate analysis dashboard has been developed to visualize and analyze complaint data from multiple dimensions monitor trends dynamically

and accurately pinpoint high-frequency and fundamental problems. This ensures scientific and forward-looking decision-making in quality management and customer service reducing customer complaints at the source.In 2025 the Company received 35 customer complaints with a 100% resolution rate.Case：Professional Competence Training for Brand Customer Service

On November 21 2025 the Company organized a special training session entitled Order Types and Platform Differentiated Service Processes. The training was designed for all

customer service staff aiming to systematically explain and consolidate standardized scenario-based service processes and response strategies applicable to different order types and

the differentiated characteristics of various e-commerce platforms. Through this training the customer service team further understood service standards and key communication

points in diverse business scenarios strengthened their professional capabilities in handling complex orders and platform-specific issues and effectively reduced the customer

complaint rate. Training on the SiteProduct Recall Mechanism

The Company strictly follows key quality management documents including the Product Recall Procedure the Corrective and Preventive Measures Management Procedure the Quality Non-Conformance

Management System and the Quality Assessment Management System. The Company clarifies the standardized product recall process conducts recalls and rectifications for non-conforming products and continuously

improves the overall quality management level. Under the leadership of the General Manager the Company has established a cross-departmental Product Recall Task Force composed of heads of relevant departments to

support and implement product recall activities. In this way a complete closed-loop management mechanism is formed covering recall execution rectification and accountability implementation.Product Recall Mechanism

Sales Department Management Team General Manager Quality Control

Received customer Review and approve Organize investigation

complaint requiring timely analyze Department

product recall and formulate corrective Conduct product recall

measures

Improve Service Quality

Jihong Group continuously optimizes its end-to-end customer service experience through the ShopPlus website platform and intelligent marketing tools and has established a systematic service guarantee

mechanism. The Company has formulated the Giikin Customer Operations After-Sales Service Policy to clarify and standardize the return and exchange process safeguarding customer rights and interests. In response

to order rejections the Company has established a daily follow-up and analysis mechanism to conduct in-depth research on the causes of rejection. On this basis targeted improvement measures are developed to drive

continuous optimization of service processes and product experience effectively enhancing customer satisfaction and willingness to repurchase.Negotiation Based on

Understanding Customer Return and

Standard Return and

Customer Needs Exchange Reminder

Exchange Procedures

Return and Exchange ProcessIn 2025 the Company systematically upgraded the customer service experience by expanding service dimensions and optimizing communication mechanisms. The

Company provides customers with professional market research and customized solutions carries out targeted process and technology training and establishes an efficient

R&D and sampling channel. Relying on the Official WeChat Account the Company achieves efficient convenient real-time communication and rapid response. These integrated

services and technical support have significantly improved the quality and responsiveness of customer service as well as overall customer satisfaction.User Experience Enhancement Measures for Paper-Based FMCG Packaging Solutions Business

Project Type Specific Measures

Packaging Creative Design The Company provides customers with full-process packaging innovation services. Based on in-depth research into the beverage market we design innovative and practical solutions through creative screening and user testing and

Services ultimately deliver physical samples.Customer Training Materials The Company offers professional insight training services for customers in the packaging industry. Drawing on in-depth research into product characteristics packaging and transportation as well as domestic and international market

Services trends for yogurt packaging we combine insights with customers’ product portfolios to deliver systematic analysis. This supports businesses in accurately positioning their needs and developing more competitive packaging solutions.Introduction of Rapid The Company has introduced rapid sampling equipment significantly shortening the sampling cycle efficiently optimizing printing effects and providing accurate parameter support. These measures have greatly improved the efficiency of

Prototyping Equipment packaging services.Customer Satisfaction Survey

The Company always places customer satisfaction at the core of its operations. Through the strict implementation of the Customer Maintenance Management System the

Company carries out systematic and regular customer follow-ups and satisfaction surveys. The Company not only fully collects customer feedback but also focuses on in-

depth root-cause analysis of issues and formulates targeted and actionable improvement plans accordingly to promote closed-loop implementation so as to enhance service

quality and customer experience.In 2025 the Company conducted a customer satisfaction survey achieving a customer satisfaction rate of 95.90%.Customer Satisfaction Survey Measures

The Company has established a systematic customer feedback mechanism to continuously optimize the customer shopping experience. The Company carries out daily satisfaction surveys focusing on product quality

Cross-border Social E-commerce Sector packaging experience logistics efficiency and delivery services systematically collecting genuine customer feedback across the entire service process. Through in-depth analysis of feedback data the Company

accurately identifies service weaknesses promptly takes improvement measures and promotes closed-loop problem resolution thereby enhancing customer satisfaction and earning wide recognition from customers.The Company strictly implements the Customer Maintenance Management System and regularly conducts multi-dimensional customer follow-ups and satisfaction surveys. The survey covers key indicators including

Paper-based FMCG Packaging S olutions overall impression service quality product quality innovation capability technical support delivery performance and price competitiveness so as to comprehensively evaluate customer satisfaction with our cooperation. In

response to the shortcomings identified in the surveys we conduct root-cause analysis and actively listen to customer improvement suggestions. On this basis we formulate and implement targeted improvement plans to

Sector continuously consolidate and deepen cooperative relationships with customers.5.1.3 Information SecurityJihong Group fully embeds security concepts into the operating system adhering to the “security and prevention first balancing management and technologies and takingcomprehensive measures to prevent risks” approach. The Company has systematically established a comprehensive protection system covering networks data and applications.The Company continues to optimize our systems and processes strengthen technical support and enhance security awareness among all employees. The Company is

committed to building a safe reliable and sustainable digital operating environment for customers partners and the Company itself establishing solid security for the high-

quality development.Information Security Management System Information Security Management Mechanism

The Company strictly complies with the Regulations of the People’s Republic of China on To establish systematic and forward-looking information security defense the Company has

Protecting the Safety of Computer Information Systems the Basic Requirements for Classified implemented an information security risk management mechanism covering risk identification risk

Protection of Information System Security the Information system security management assessment and risk response. This has enhanced information security protection capabilities and

requirements and other relevant laws and regulations. To strengthen its network and data provided a solid guarantee for stable business operations and the security of data assets.security framework the Company has developed a set of internal policies including the Personal

Information Protection Policy the Cybersecurity Management Policy the Public Cloud Security Information Security Risk Management Mechanism

Management Policy the Customer Information Confidentiality Management Policy and the

Network and Data Security Incident Management and Emergency Response Plan. These policies

comprehensively promote the effective implementation of information security management.Jihong Group positions information security as a strategic priority for development and is

committed to building a scientific comprehensive and efficient information security governance Risk Identification: Utilize advanced risk identification tools

system. The Company has set up a multi-level management structure led by the Information and methods to systematically identify internal and external

Security Committee with coordinated operations among the Information Security Management

Team Information Security Technology Team and Information Security Audit Team. With clear potential information security threats ensuring full coverage of

and closely linked responsibilities the teams form a closed-loop process covering strategy risk assessment.formulation technical implementation and independent supervision. This ensures the systematic

implementation and stable operation of information security measures providing a solid Risk Assessment: Apply scientific assessment models to

guarantee for business operations and customer data security. Risk Management conduct qualitative and quantitative analysis of identified risks

to accurately assess the likelihood and potential impact of risk

Information Security Management Structure at Jihong Group Mechanism occurrence and achieve classified risk management.Board of Directors and * When formulating the overall strategy of the company systematically incorporate Risk Respons: Develop and implement differentiated response

Executive Management information security and network security management requirements. strategies based on risk assessments including risk avoidance

transfer mitigation and acceptance to ensure rapid and

* Implement the Board of Directors’ decisions on information security. orderly response to risk events.Information Security * Coordinate information security affairs among departments.Committee * Regularly report information security progress and achievem.ents to the Board of

DirectorsThrough a series of measures including strengthened access control enhanced data encryption and backup requirements regular information security monitoring and

auditing standardized emergency response procedures and comprehensive virus prevention the Company has effectively consolidated information security defense and fully

safeguarded the security of data and information systems.Information Security Management Measures

* Identity Authentication: The Company fully implements a multi-factor authentication mechanism integrating passwords and biometric features (e.g. fingerprints and facial recognition) to verify the authenticity and legitimacy of user identities and prevent

Access Control unauthorized access.* Access Management: In strict accordance with the principle of least privilege the Company assigns system and data access rights to employees based on their roles and business needs via OA approval processes. Sharing business system accounts and

proxy software is strictly prohibited to prevent unauthorized operations.* Data Encryption: The Company applies high-strength encryption to the storage and transmission of sensitive and core business data supported by a complete key management system. Encryption tools are used during data transmission to ensure the

Data Encryption and confidentiality and integrity of data throughout its lifecycle.Backup * Data Backup and Recovery: A systematic data backup strategy is established to perform regular full and incremental backups with backup data stored in remote sites. Detailed data recovery plans are developed to enable rapid and complete recovery of business data in the event of unexpected incidents.* Prevention Stage: The Company identifies risk scenarios and summarizes high-risk behaviors implements mandatory protection measures and visualizes them via verification methods to block virus intrusion at the source.* Monitoring Stage: Real-time virus behavior monitoring tools are fully deployed including enhanced ransomware protection communication tool lock-screen shortcuts and regular full-disk scanning mechanisms to effectively cut off virus transmission

Virus Protection channels.* Outbreak Stage: Within 5 minutes of a virus outbreak emergency isolation is conducted via network disconnection and device control. Further measures include in-depth virus scanning full-disk formatting of infected terminals and system reinstallation.* Long-term Protection: The Company enhances overall virus control capabilities through enterprise-level measures such as terminal control phishing testing and network isolation. Long-term dedicated protection is enforced for key departments

including finance and human resources. Employee capabilities are strengthened through the development of personal security protection guidelines.Security Monitoring * Security Monitoring: An integrated security monitoring platform is deployed to conduct 24/7 real-time monitoring and intelligent analysis of networks systems and user behaviors enabling rapid detection alerting and response to security incidents.* Security Audit: The Company regularly carries out specialized information security audits to comprehensively inspect the implementation of security policies system compliance and the effectiveness of management measures driving continuous

and Auditing optimization of the security management system.* Emergency Organization: An information security emergency response team is established with clear roles and responsibilities for each member to ensure orderly command and efficient coordination during emergencies.Emergency * Emergency Plan: Emergency response plans covering various types of security incidents are formulated specifying disposal processes communication mechanisms and recovery procedures. Drills and plan revisions are conducted regularly to maintain

practicality and effectiveness.Response * Emergency Response: Upon occurrence of an incident the emergency team immediately activates the response plan to control impacts restore business operations and complete incident reporting root cause analysis and corrective actions achieving

closed-loop management.Case: Information Security Attack-and-defense Drill

In 2025 against the backdrop of accelerated digital transformation the Company successfully conducted three rounds of information security

attack-and-defense drills on the Alibaba Cloud platform focusing on three core scenarios: external penetration internal control failure and

emerging threats. By simulating external hacker penetration attacks on core business systems internal network infections caused by improper

employee operations as well as DDoS attacks and supply chain risks targeting cloud platforms the Company implemented a series of practical

response measures. These drills effectively strengthened the overall emergency response capabilities of all employees. A total of 56 system

vulnerabilities were rectified the emergency response time was shortened by 50% and the rate of employees recognizing phishing emails

increased to over 85%. The Company has comprehensively optimized its technical protection system employee security awareness and

management mechanisms which have significantly enhanced overall information security defense capabilities.Information Security Defense DrillInformation Security Management Training

The Company attaches great importance to building an information security culture and has formulated an annual information security training plan. A systematic and highly

targeted training curriculum has been designed based on the business needs of employees in different positions and at various levels aiming to comprehensively improve the

information security awareness and capabilities of all employees. We conduct regular training and simulation exercises. Through the Cloud Academy platform the Company

organizes new employees to complete security courses such as the Office Security Protection Guide via Giikin Academy followed by online assessments. The Company

promotes security knowledge in a systematic manner and incorporates real case studies which effectively enhance employees’ prevention awareness and practical response

capabilities.Information Security Training

Identification of Information Security Through scenario analysis the Company effectively identifies five major information security risks including viruses and Trojans information leaks social engineering

Risks fraud targeted attacks and threats from wireless and mobile terminals so as to enhance risk prevention awareness among all employees.Prevention of Phishing Emails Focusing on common disguising methods identification techniques and standardized handling procedures for phishing emails the Company strengthens employees’ risk awareness through interactive teaching.Virus Prevention and Removal The Company deeply analyzes virus transmission routes identification prevention and recovery strategies and combines scenario-based testing to consolidate practical capabilities.Secure Use and Protection of Office The Company emphasizes the importance of standardized usage systematically explains protection configurations prevention techniques personal information

Computers protection and security incident response and strengthens the terminal security defense line.To foster a strong safety culture across the organization the Company has adopted a variety of initiatives including launching safety awards and organizing safety

knowledge competitions to boost engagement among all employees and embed safety awareness into daily operations and team activities.Safety Culture Building

Safety Star Award The Company has established the “Safety Star” award to recognize employees with outstanding safety awareness setting a benchmark for the whole team.Experience Sharing Platform An experience-sharing platform has been built to encourage employees to actively exchange safety protection skills and promote mutual improvement across the team.Safety Knowledge Competition Safety knowledge competitions are organized to stimulate employees’ enthusiasm for learning safety-related knowledge.Promotion Poster on Safety The Company creates safety promotion posters and displays them in office areas to continuously remind employees to prioritize safety in daily work.5.1.4 Innovation and R&D

Jihong Group regards technological innovation as the core engine of development and continuously deepens the application and empowerment of technology in digital operations. The Company has established

internal management systems including the Innovation Management System and strictly follows the New Product Design and Development Management Procedure. The Company has comprehensively deployed cutting-

edge fields such as cross-border social e-commerce and intelligent systems and built differentiated competitive advantages through technological capabilities. In 2025 the Company spent RMB 136.10 million on R&D

accounting for 2.02% of operating revenue. The Company employed 602 R&D personnel representing 12.66% of the total workforce. We are committed to building an integrated service ecosystem continuously meeting

diverse customer needs with end-to-end response capabilities and promoting the continuous business structure upgrading.Innovation and R&D Strategy

With “data-centric and technology-driven” as a strategic focus and based on the dual-engine-driven business model of the packaging business and cross-border e-commerce the Company has achieved a

strategic upgrade from “technology empowerment” to “intelligent ecosystem”. Focusing on core technologies including artificial intelligence big data and cloud computing the Company has systematically built nine key

technology systems covering intelligent video processing intelligent image generation intelligent marketing risk control detection and other fields forming end-to-end digital operation capabilities covering the front

middle and back ends of the business.In 2025 the Company further increased R&D investment and achieved breakthroughs in AI middleware multimodal large model applications intelligent systems and other fields. The accuracy of video multimodal

search reached more than 90% the availability of image translation exceeded 95% and the accuracy of knowledge base Q&A exceeded 95%. At present relevant technologies have been widely applied in content

generation advertising order fulfillment warehousing and logistics reducing operating costs improving business efficiency and continuously optimizing the end-to-end user experience.Intelligent E-commerce

Driven by data and artificial intelligence the Company fully empowers

marketing and operational links to support digital transformation andsustainable growth. The Company continues to deepen the “GoodsDiscovering People” business model using AI algorithms to conduct in-depth

analysis of overseas markets accurately build user profiles and develop

differentiated strategies based on a value hierarchy system to precisely reach

target users through multiple channels. Meanwhile the Company has ·Big Data Analysis for Product Selection

established a complete performance data collection and evaluation mechanism

realizing full-process data-driven and intelligent optimization from insight ·Ad Page Creation

outreach and conversion to iteration so as to promote the high-quality ·Targeted Advertising Placement

development of the cross-border e-commerce business.·Customer Places an Order

·Warehouse Shipment

·International Logistics Distribution

·Order CompletionJihong Group's Cross-Border E-Commerce “Matching Goods to TargetCustomers” Business ProcessJihong Group deeply integrates the social media ecosystem with online In 2025 Jihong Group continued to enhance the development of its e-shopping scenarios establishing an agile operation model of “matching commerce system by upgrading and optimizing its platform cockpit dashboard thegoods to target customers”. The Group has built systematic competitive Star Ring Nexus Pro expert collaboration system and the Amazon intelligent AI

advantages in key areas including marketing accuracy operational operating system. The Group is committed to improving business efficiency and

intelligence and supply chain agility. This model not only reshapes the logic competitiveness through technological empowerment achieving the integration of

of e-commerce operations but also establishes differentiated barriers for efficiency enhancement and resource conservation.the Company’s sustainable growth.Jihong Group’s Intelligent Model Updates

Cross-Border E-Commerce Sales Model at Jihong Group

* Real-time inventory monitoring and intelligent alerts reduce storage energy consumption and

potential waste from unsold stock. Enhanced information collaboration efficiency minimizes

Goods the carbon footprint associated with organizational communication.Platform Cockpit * Consistency in the consumer experience is ensured with rapid responses to service issues.* Utilize an AI-powered product Dashboard Operational personnel are liberated from repetitive tasks allowing them to focus on higher-

selection platform to conduct precise value strategic work.* End-to-end visual monitoring of operational processes strengthens internal controls and risk

product selection through big data. alert mechanisms supporting compliant operations and fully traceable decision-making.Discovering

* Leverage social networks such as

Meta Google and TikTok as

marketing channels. * The Company precisely matches products and sample recommendations which cuts down on inefficient logistics transportation and packaging waste. Automated workflows further reduce

* Implement targeted marketing based energy consumption in digital operations.on big data algorithms. Star Ring Nexus Pro * We respect individual differences among experts clarify collaboration terms and protect

System creators’ rights and interests. By automating routine work we free up operational manpower

People and enhance their sense of work value and creativity.* Programmatic execution mitigates operational risks ensuring account security and business

* Accumulate a massive user base continuity which drives the standardization and transparency of all collaboration processes.through the integration of mobile

internet and social networks.* Apply user-centric product selection

strategies leveraging intelligent * AI-generated content and imagery enable a “zero physical shoot” model reducing sample

analysis of user profiles to precisely logistics and photography-related energy consumption. Data-driven decision-making

match product tags. minimizes ineffective inventory and resource misallocation.Amazon Intelligent AI * The barrier to entry for small and medium-sized sellers in the global market is lowered.Operating System Operations teams are freed from tedious administrative tasks to focus on core competencies in service and innovation.* Content compliance and image authenticity are enforced to strengthen consumer trust.Automated processes enhance overall operational stability and auditability.Smart Warehousing

Jihong Group actively builds an intelligent integrated warehousing system with intelligent scheduling and data collaboration as its core. Through comprehensive digital

transformation and continuous empowerment of traditional warehousing operations the system optimizes the efficiency of core links including warehousing operations inventory

management logistics sorting and distribution tracking. This achieves end-to-end supply chain visibility and controllability improves the stability and timeliness of order

fulfillment and significantly enhances the shopping experience and satisfaction of end consumers.

1 * The implementation of the digital stocking model can significantly increase warehouse turnover rates. It can reduce inventory backlog and Inventory Stocking Model ensure a smooth transition of products from the warehouse to the market which significantly enhances the efficiency and agility of the

supply chain.* By using event tracking on our online store we can collect user behavior data to better understand user needs and preferences. This

2 Digital Store allows us to improve our store’s user interface and shopping experience.* By analyzing user behavior data our digital store can recommend products that are tailored to individual user preferences. This helps users

easily discover products they like and receive a better shopping experience.* Our self-developed warehouse management system implements a “one product one code” management policy for all inventory items. The

system allocates each item to its designated storage location and updates the inventory records in real-time.

3 Warehouse Management * The system is equipped with intelligent matching and product distribution capabilities to quickly prepare and deliver orders while reducing

System the risk of shipping errors.* The system can automatically intercept abnormal orders and relevant personnel will take swift action to ensure the problem is resolved in

a timely manner.

4 * Our picking process is automated and intelligent. Our warehouse system automatically generates the optimal picking path product location Intelligent Picking System and product information upon receiving an order and sends the data to the picker’s PDA device. This system has made the goods-picking

process much more convenient and efficient.

5 Automatic Weighing System * Our intelligent weight and size measurement system can rapidly and accurately assess the weight and size of packages and provide precise logistics data to logistics and warehouse management teams.

6 Unpacking and Packing * We use an automatic packing device to streamline our order processing and improve the quality efficiency and cost-effectiveness of our Device packaging.

Integrated Smart Housing System at Jihong GroupIn 2025 the Company closely aligned efforts with the goals of intelligence and lean management in warehousing and logistics continuing to drive system optimization and

model innovation.Intelligent Warehousing Updates at Jihong Group

* By integrating electronic scales with cameras the system enables real-time product photography upon goods receipt and automatic weight collection for

Launching Intelligent Small Goods individual items improving the basic product database.Receiving System * By incorporating volumetric data recorded in the system the system provides the operations team with a reliable and accurate basis for cost estimation

supporting refined cost control.Implementing the PAK Package and * Compared with the original delivery model this model reduces the average logistics cost per unit by RMB 4–8 achieving substantial cost savings.* The system automatically identifies eligible orders based on preset conditional rules and labels them accordingly. Following assisted manual verification it

Correspondence Delivery Mode supports “one-click order replacement” streamlining operational processes.Reforming Warehouse Piecework * Differentiated piece-rate standards are established based on job characteristics with dynamic rules implemented for new products and seasonal items. The

system supports monthly adjustments to historical rules to improve adaptability.Performance System * Performance data visualization enables optimized personnel allocation and enhances the overall shipping efficiency of the warehouse.Innovative Packaging

The Company takes innovation as its core driving force and continuously promotes the value-oriented and systematic upgrading of the packaging business. With graphic

design solution optimization and marketing planning as the core pillars the Company deeply integrates into the fast-moving consumer goods (FMCG) market accurately

responding to and leading consumers’ daily needs. For world-renowned FMCG customers the Company provides customized packaging solutions covering a full range of

categories and multiple scenarios including color box packaging eco-friendly food packaging color cartons eco-friendly tote bags and bundled packaging.By establishing a one-stop supply chain service system covering planning design production and sales support the Company is committed to providing customers with

comprehensive packaging solutions that integrate market foresight and brand performance empowering brands to achieve value enhancement and sustainable growth.One-Stop Packaging Services at Jihong Group

Marketing Design/Plan Transportation

Manufacturing Sales

Planning Optimization and DistributionInnovative CollaborationIn 2025 the Company won the Second Prize in the “China Competition of The Company has always adhered to the core values of “responsibility innovationCreative Design Packaging” for outstanding creativity and professional and achievement”. The Company actively integrates internal and external scientific

expertise in packaging design. This award not only recognizes the Company’s research resources establishes in-depth collaborative partnerships with teams

design and innovation capabil it ies but also reflects its professional universities industry associations and stakeholders across the industrial chain and

achievements in continuously pursuing the integration of aesthetics jointly builds an open and innovative technology ecosystem. Through continuous efforts

functionality and market value in packaging solutions. in advancing technological exchanges resource sharing and joint R&D the Company is

committed to gathering multi-party expertise to jointly shape a blueprint for

sustainability within the industry.In terms of industry-university-research cooperation the Company has further

deepened strategic collaboration with universities. The Company has successively

established industry-university-research cooperation bases with several institutions

including Anhui University the School of Fine Arts at Ningxia Normal University and the

Beijing Institute of Graphic Communication focusing on joint technological

breakthroughs and the cultivation of high-end talents. These efforts also inject sustained

impetus into industrial innovation.Case: Beijing Institute of Graphic

Communication and Hohhot Jihong Printing

and Packaging Co. Ltd. Jointly Establish an

Internship and Practical Teaching Base

On July 29 2025 Zhang Xin Secretary of the Party Committee of Beijing

Institute of Graphic Communication and Chen Dan Vice President visited

Hohhot Jihong Printing and Packaging Co. Ltd. They held in-depth discussions

with Lin Guoliang General Manager of Hohhot Jihong and other

representatives on student internship base building joint talent cultivation

industry-university-research collaborative innovation and other key topics.Both parties agreed to jointly establish an internship and practical teachingbase and planned to set up the “Inner Mongolia Printing and PackagingResearch Center”. Through the “government-industry-university” Coordination

mechanism the two sides would advance research on printing technologies

and the transformation of scientific and technological achievements. This

cooperation would further deepen collaboration in talent development

technological research and industrial upgrading and jointly promote the digital

and intelligent transformation and sustainable development of the printing

industry.Certificate and Works for Second Prize in the China Competition of Creative Packaging Design

University-Enterprise Cooperation ConferenceIn addition relying on its long-term technological and practical experience in packaging and printing the Company actively participates in the development of industry

standards and promotes industrial standardization innovation and upgrading with professional expertise. In 2025 the Company participated in the formulation of several

industry standards including Assessment Requirements for Quality Grading and Forerunner—Bundle Packaging and Graphic Technology—Process Control for the Production

of Half-tone Colour Separations Proofs and Production Prints—Part 6: Flexographic Printing. Based on practical experience and technical insights the Company provided

important references to ensure the scientificity and applicability of the standards supporting the industry’s continued development toward greater standardization and

efficiency.Innovation Achievements Technology Ethics

Innovation Achievements 2025 at Jihong Group In the e-commerce business sector the Company attaches great

importance to ethical issues arising from the application of artificial

Giikin (Zhengzhou) Digital Technology Co. Ltd. won 2025 Data Element X

Competition (Henan Division/Section) on September 8 2025. The project was intelligence (AI) technology. Guided by the core principles of people-

Research and Application of Intelligent Product Selection and Intelligent oriented safe and controllable fair and just transparent and explainable

Recommendation System in the category of commercial circulation

the Company has formulated a series of internal management systems

including the Code of Ethics for AI Applications Data Security and

Privacy Protection Management Measures and Algorithm Fairness

Review Process. These systems ensure that AI systems meet

requirements in terms of fairness and non-discrimination transparency

and explainability data security and privacy protection controllability

and reliability as well as cross-cultural awareness and social

responsibility.To ensure the effective implementation of these principles the

Company has established a Technology Ethics (Review) Committee

which is responsible for formulating supervising and enforcing the

Group’s technology ethics policies. The Committee conducts

independent and professional ethical reviews of high-risk AI projects to

ensure that they comply with ethical principles throughout their entire

lifecycle from project initiation R&D and deployment to

decommissioning. The Company adopts a zero-tolerance attitude

The Company received the Advanced Intelligent Factory On August 8 2025 as The Company received the R&D

award from the Department of Industry and Information announced by the Department Investment Award from the Huanggang toward any violation of technology ethics and has established clear

Technology of Inner Mongolia Autonomous Region in of Science and Technology of Science and Technology Bureau in accountability and disciplinary mechanisms.May 2025 Hubei Province the Company September 2025

was awarded the title of

Advanced Technology Service

Enterprise in Hubei Province5.1.5 Intellectual Property Protection

Jihong Group strictly complies with the Copyright Law of the People’s Republic of China and the Patent Law of the People’s Republic of China establishing policies such

as the High-Tech Enterprise Management System the Reward System for the Application of R&D Results and th e Managemen t System fo r High-Tec h Projects These policies

form a comprehensive intellectual property protection framework and an innovation incentive mechanism ensuring the application of R&D achievements. In 2024 the Company

filed 90 new patent applications of which 36 were approved and obtained 44 new software copyrights. As of the end of 2025t he C ompany h as s ecured 4 45 a pproved p atents.To build a sound intellectual property management system the Company has systematically established a full-process management and prevention mechanism from two

dimensions: internal protection and external risk prevention.Intellectual Property Management System at Jihong Group

Internal Intellectual Property Protection External Infringement Risk Prevention

The Company clearly defines its intellectual property protection scope to include patents trademarks

To avoid infringement on third-party intellectual property rights the Company continuously strengthens employees’

copyrights design schemes product samples and production processes. All employees are required to

awareness of intellectual property protection through internal training and clarifies the responsibilities and

strictly abide by relevant laws regulations and internal policies when using corporate resources and

consequences of infringement. In the process of business cooperation the Company strengthens the review and

technologies to prevent information leak. Meanwhile the Company standardizes the management of

management of suppliers and partners to ensure that their business activities comply with intellectual property

employees’ R&D achievements patent applications trademark registrations and other related activities

laws and regulations. In addition the Company has established an intellectual property dispute handling

ensuring that the Company’s intellectual property is systematically protected and used in compliance

mechanism to promptly identify and respond to relevant disputes and safeguard its legitimate rights and interests.with regulations.In 2025 the Company introduced the Science and Technology Innovation Space (Professional Edition) – Science and Technology Innovation Space System Service V1.0 and

adopted big data technology to establish a full-cycle intellectual property infringement prevention system covering the pre?R&D in?R&D and post?R&D stages. As of the end of

the reporting period there were no infringements on third?party intellectual property rights in the Company. The overall prevention system has been operating effectively

providing a reliable safeguard for sustainable innovation.Jihong Group’s Intellectual Property Infringement Prevention System

Pre? R&D The Company conducts patent retrievals through the system and relies on massive innovation data to identify infringement risks.In? R&D The Company monitors competitors’ patent dynamics and provides intelligent warnings of potential technological barriers.The Company establishes a mechanism of retrieval evaluation and adjustment where the Legal Department and R&D Department collaborate to conduct patent analysis and

Closed Loop Process optimize technical solutions in order to avoid infringement risks at the source.Jihong Group places great emphasis on sustainable supply chain development implementing a stranded supplier lifecycle management through policies such as the

Supplier Management Procedures Procurement Management Procedures Centralized Procurement Management Measures and Sunshine Integrity Action Cooperation

Agreement. The Company integrates ESG requirements into its supplier management system conducting regular ESG risk assessments communication and training to

coordinate supply chain development and enhance sustainability.

5.2.1 Supplier Admission and Evaluation

The Company has established a complete supplier management process focusing on key areas including supplier admission assessment of cooperation routine

management and withdrawal mechanisms so as to standardize full-cycle supplier management from introduction to collaboration. The relevant procedures cover supplier

qualification review cooperation supervision and performance evaluation ensuring systematic and effective implementation of supplier management.Supplier Lifecycle Management Process

* During the supplier admission stage the Company conducts sustainability-oriented due diligence with a focus on evaluating suppliers’ legal and compliant business

Qualified Admission operations.* Through face-to-face communication on-site inspections and verification the Company identifies potential supplier risks in the areas of environment labor and

compliance and controls admission standards at the source.* The Company regularly carries out supplier performance evaluations and implements full lifecycle management covering product quality service cost and delivery.Assessment Over Collaboration Assessments are conducted semi-annually with optimization suggestions provided.and Daily Management * Based on assessment results suppliers are classified into five grades: A+ A B C and D and graded management is applied. A+ suppliers (top performers) are given

priority for cooperation while D suppliers (below the threshold) are disqualified from contract performance so as to optimize supply chain quality.* For suppliers failing to meet assessment standards the Company issues corrective and preventive action reports and requires rectification within a specified timeframe.Withdrawal If rectification still fails to meet requirements after three consecutive procurement cycles the Company implements elimination measures suspends purchasing cancels

their supplier qualification and terminates subsequent cooperation.Number of Suppliers in 2025

Chinese Mainland 57103

Hong Kong Macau Taiwan Regions of China & Overseas 15.2.2 Supply Chain ESG Management

Jihong Group integrates environmental and social responsibility requirements into the entire supply chain management process focusing on key aspects including supplier

admission cooperation evaluation and performance management to continuously identify and control environmental and social risks across the supply chain. In supplier

selection and cooperation the Company not only focuses on product quality and supply capacity but also comprehensively reviews suppliers’ performance in compliance

management environmental protection and labor rights protection. The Company prefers to establish partnerships with suppliers that possess a sound ESG management

foundation and stable performance.During supplier cooperation the Company sets differentiated risk identification and management requirements based on the business scale and category characteristics of

individual suppliers with a focus on environmental protection labor rights protection and quality compliance as core priority areas. Meanwhile the Company establishes clear

requirements for suppliers in environmental governance occupational health and safety compliance management anti-corruption and other related fields.Supplier ESG Management Requirements

Suppliers must provide ISO 14001 Environmental Management System Certification. Preference is given to suppliers demonstrating strong environmental management practices and using

Environmental Protection eco-friendly materials and energy-efficient production processes to reduce their impact on the environment.and Quality Control Suppliers must provide ISO 9001 Quality Management System Certification and implement strict quality process control measures to ensure compliance with quality requirements and

minimize resource waste caused by quality defects.Suppliers must obtain ISO 45001 Occupational Health and Safety Management System Certification and undergo assessments on worker safety measures. Preference is given to those

Health and Safety with strong occupational health and safety management.Chemical suppliers must provide a Hazardous Chemicals Business License Environmental and Safety Assessment Report Chemical Safety Data Sheets and Compliance Declarations to

ensure that their production and business activities comply with safety and environmental requirements.Compliance Management Suppliers must sign the Sunshine Integrity Action Commitment Letter clearly requiring them to comply with cooperation agreements.Suppliers must adhere to fundamental laws and regulations explicitly prohibiting corruption and bribery in contracts. Compliance risks are prevented in the supply chain through

and Anti-Corruption standardized procurement processes and supervision mechanisms.5.2.3 Supplier Communication

Jihong Group has established a regular communication mechanism with suppliers committed to maintaining long-term and stable cooperative relations. The Company

maintains continuous communication with suppliers on product quality management safety management environmental management compliance and integrity requirements

helping them fully understand and implement the Group’s relevant management requirements and sustainability philosophy.Meanwhile the Company regularly provides targeted communication and guidance to suppliers. Through ongoing communication and interaction the Group deepens mutual

trust and collaboration with suppliers improves business synergy efficiency and promotes the sustainable development of the entire value chain.Case: Conducting Technical Exchanges on New Environmentally

Friendly Materials with Bohui Paper

Communication Meeting on New Technology

In 2025 the Company participated in a new technology exchange meeting organized by Bohui

Paper with a focus on its newly launched EPP zero-plastic paper cup. This product can replace

traditional coating materials which enhance environmental performance and reduce carbon

emissions. Through communication the Company gained a deeper understanding of the

performance and application scenarios of such eco-friendly materials. On this basis the Company

promoted sampling testing and explored practical applications and customer-side promotion

providing support for green material application and business expansion.

5.2.4 Equal treatment of SMEs

Jihong Group upholds the principles of fairness impartiality and transparency in procurement activities throughout supply chain cooperation and places strong emphasis on

building stable and sustainable partnerships with SME suppliers. In respect of performance and payment management the Company strictly abides by agreements timely fulfills

payment obligations under agreed payment terms and arrangements and effectively safeguards the legitimate rights and interests of suppliers.During the reporting period the Company had no overdue or outstanding payments to SME suppliers and all procurement payments were settled in full compliance withcontract terms.Jihong Group attaches great importance to the occupational health and safety of employees. The Company integrates the management philosophy of “people-orientedsafety-first prevention-focused and comprehensive management” into the entire production and operation process and continuously implements an occupational health and

safety management system. The Company focuses on key areas including workplace safety management occupational health risk control employee safety training and

emergency response management. The Company systematically advances regulatory compliance and on-site implementation strengthens health and safety management for

employees contractors and other relevant parties and is committed to providing a safe healthy and stable working environment for all staff.

5.3.1 Work Safety

Jihong Group strictly abides by applicable laws and regulations including the Work Safety Law of the People’s Republic of China. The Company maintains and enforces a

series of internal safety management systems such as the Work Safety Management System Comprehensive Emergency Response Plan for Workplace Safety Accidents

Safety Risk Classification and Control Hidden Danger Investigation and Management System and Fire Safety Management System. These systems clarify safety

responsibilities at all levels and promote full implementation of safety obligations through responsibility breakdown and process-based supervision.Jihong Group Work Safety Performance in 2025：

Number of work-related fatalities: 0 people; Work-related fatality rate: 0%;

Lost workdays due to work-related injuries: 1567 days; Investment in work safety measures: RMB 1.26 million.

2025 Work Safety Daily Management Measures at Jihong Group

Risk Control The Company advances hazard identification and classified risk control conducts systematic assessments of production processes equipment working environments and employee behaviors and implements differentiated risk control measures.The Company further strengthens safety oversight over production areas storage areas and equipment mitigating safety risks through routine inspections and targeted

On-Site Safety Control improvement campaigns. For the raw paper warehouse finished goods warehouse and key production equipment the Company has established clear standards for material

stacking safety passageways and equipment protection. Regular inspections and maintenance are carried out continuously with identified issues rectified in a timely manner.The Company provides tiered and categorized occupational safety training tailored to the characteristics and risk profiles of positions ensuring safety requirements are

Safety Training and Emergency implemented in frontline operations. All newly recruited employees must complete three-level safety training covering factory-level workshop-level and team-level instruction

Management for Personnel ensuring they fully understand hazards and operational standards prior to taking up their posts. The Company strictly enforces certification requirements for employees engaged

in special operations.Based on production characteristics and potential risk scenarios the Company optimizes the emergency management framework. The Company validates the operability of

Emergency Drill emergency plans and the responsiveness of personnel through regular drills. Drills focus on high-risk scenarios including fire safety mechanical injuries and gas leaks enabling

employees to master emergency response procedures and enhance coordination and efficiency in incident handling.Case Study: Jinan Factory Launches Fire Safety Training

and Emergency Evacuation Drill

Case Study: Ningxia Factory Identifies Safety Risk Points

On November 24 2025 Jinan Factory organized fire safety training and a full-site emergency

and Compiles the Hazard Identification and Risk evacuation drill for all departments and employees aiming to strengthen fire prevention awareness and

on-site emergency response capabilities. The training adopted a format of theoretical instruction case

Assessment List 2025 study and interactive Q&A covering core content such as identification of fire causes and common

In 2025 in conjunction with process adjustments involving new tape applicators and paper hazards (such as electrical faults illegal hot work improper management of flammable materials) fire

straighteners the Ningxia Factory carried out a reassessment of safety risks across the entire safety laws and regulations fire prevention responsibilities the proper use of fire extinguishers fire

production facility. Through this work the factory formulated the Hazard Identification and Risk hydrants and automatic alarm systems key points for initial fire suppression and practical escape skills

Assessment List 2025. A total of 674 risk points were identified and subjected to four-level risk (including covering the mouth and nose with wet towel low-posture movement and emergency exit

management: red orange yellow and blue. No major risks were identified in this round. identification). Targeted layered questioning was implemented to identify knowledge gaps in real time

reinforcing the corporate safety philosophy of “Everyone Knows Safety Emergency Response”.Case Study: Month of Workplace Safety Campaign at On the same morning the factory conducted an emergency evacuation drill simulating a production

workshop fire. The on-site emergency plan was activated promptly with each emergency response team

Shaanxi Factory fulfilling its assigned duties to guide employees in orderly evacuation and complete centralized

In June 2025 Shaanxi Factory launched a series of Month of Workplace Safety activities under the headcounts. During the drill emergency broadcasting evacuation routes and firefighting facilities

theme “Everyone Knows Safety Emergency Response—Identifying Hidden Hazards Around Us.” Focused operated normally and overall evacuation efficiency improved year-on-year. Post-drill the factory

on production warehousing logistics and other key sectors the campaign included safety awareness conducted a thorough review of identified issues and formulated targeted improvement measures

training hazard identification and rectification emergency evacuation and fire drills with 126 employees focusing on standardizing evacuation procedures and optimizing safety signage to further enhance

participating. emergency management capabilities.The factory clarified safety responsibilities via a kick-off meeting delivered training on safety

awareness and proper use of personal protective equipment systematically reviewed and updated

hazard and risk registers and carried out full inspections of water electricity gas and fire protection

facilities across the site. All identified hazards were rectified timely. Emergency evacuation firefighting

and environmental incident response drills were also conducted to further strengthen employees’

emergency response capacity and drive the effective implementation of on-site safety management.Fire Safety Training Evacuation Drill

Shaanxi Factory Held Special Meeting on Workplace Safety to Deploy Activities5.3.2 Occupational Health and Safety

Jihong Group strictly complies with relevant laws and regulations including the Law of the People’s Republic of China on Prevention and Control of Occupational

Diseases. The Group continuously advances the development of its occupational health and safety management system and rigorously implements the internally formulated

Occupational Hygiene Management System. As of the end of the reporting period all 10 of the Group’s production bases have obtained ISO 45001 Occupational Health and

Safety Management System certification. Through regular internal audits management reviews and third-party supervision audits the effectiveness of system operation is

systematically evaluated driving continuous improvement.Centered on safeguarding employee health the Company conducts statutory occupational health examinations including targeted physical checks for employees exposed

to occupational hazards. The Company also fully covers employees with work-related injury insurance and work safety liability insurance to protect their legitimate rights and

interests. During the reporting period in 2025 the Company recorded no occupational disease incidents and employee safety training achieved 100% coverage.JIHONG GROUP’S EMPLOYEE

OCCUPATIONAL

HEALTH OVERVIEW IN 2025

Number of Employees in Total investment in work-

Occupational Disease Risk related injury insurance

Positions ￥ 780000

People: 678 Number of Employees Occupational Health and Safety

Participating in Occupational Investment Amount

Health Check-ups ￥ 480000

People: 896 Number of Employees

Diagnosed with Occupational

Diseases

People: 0Jihong Group has established a comprehensive talent management framework encompassing talent acquisition rights protection and capability development. By

upholding compliance and fairness in employment and recruitment optimizing salary and benefits communication mechanisms and employee care and implementing

institutionalized talent training systems the Company delivers sustained human capital support for stable operations and business growth.

5.4.1 Diversity Equality and Inclusion

The Company adheres to legal employment practices safeguarding employees’ legitimate rights and interests. Fairness is enforced across recruitment hiring

remuneration performance appraisal promotion and career development—with strict prohibition of discrimination based on gender age ethnicity origin marital and family

status religious beliefs or disability (factors unrelated to job requirements). This ensures equal development opportunities and equal pay for equal work fostering an open

and inclusive workplace culture.To mitigate child labour and forced labour risks the Company integrates compliance reviews into recruitment and onboarding with rigorous identity and qualification

verification. Aligned with the Law of the People’s Republic of China on the Protection of Minors and the Provisions on the Prohibition of Using Child Labor the Company’s

Corporate Social Responsibility (CSR) Management Manual stipulates that the Company and all subsidiaries shall strictly verify employee identity information during the

recruitment process and explicitly prohibits hiring minors and all forms of forced labour. Suspected violations trigger immediate investigations and disciplinary actions against

accountable directors and personnel. No child labour or forced labour incidents were recorded in 2025.To meet business development and talent pool development needs the Company adopts multi-channel recruitment with publicly disclosed vacancies ensuring transparent

and equitable application opportunities. In 2025 recruitment channels included online platforms headhunting and campus recruitment (via campus talks and internship-to-

permanent) resulting in 654 new hires: 77% social recruits 12% internal referrals and 8% campus graduates.Complementing recruitment the Company advances industry-university cooperation and targeted training. Initiatives such as the “Hongling Project” and “Hongyu Plan”

cultivate grassroots skilled talents and reserve management and professional personnel. At select bases partnerships with vocational colleges include lectures site visits and

tailored on-the-job training to align talent development with business needs.Recruitment Channels at Jihong Group

Campus Recruitment Social Recruitment Headhunting Recruitment

* Establish strategic partnerships with major universities and colleges * Recruit through leading domestic job portals professional talent * Work with headhunting firms and talent agencies to recruit mid-to-

identify outstanding fresh graduates in advance and reserve talents websites and regional recruitment platforms bringing in external senior-level professionals ensuring high-quality hires and

through campus talks internships and other methods. talent with diverse industry experience and perspectives. recruitment efficiency.The Company has long regarded employee diversity as a key strategy for sustainability. Through a systematic talent management mechanism the Company prioritizes

employment opportunities for diverse groups continuously advances inclusive employment practices and fosters an inclusive open and diverse talent ecosystem.Highlight to Enhance Employee Diversity

Jihong Group is committed to constructing a diverse talent structure and optimizing employee career development channels to improve employee career

Building a Diverse Inclusive Talent Pool pathways. Through a multi-level career growth system the Company provides equitable opportunities for employees of varied backgrounds and capabilities

enabling talents to realize their full potential.Advancing Youthfulness Strategy and Cross- In 2025 the Company successfully completed the renewal of the board of directors appointing Mr. Lu Tashan (born in 1998) as Executive Director and

border Talent Initiative Secretary of the Board. This appointment of a Generation Z senior executive underscores the deepening of the youthfulness strategy.Implementing Special Employment Plans for In response to national policies Jihong includes employment of people with disabilities in annual talent targets. In 2025 the Company recruited 32

employees with disabilities offering tailored job positions and humanistic care support. This practice not only helps fulfill corporate social responsibility but

Vulnerable Groups also advances inclusive social development.Case: Overseas Business Talent Recruitment Program 2025

To support the overseas business expansion strategy the Company launched an overseas business talent recruitment program targeting overseas production bases in the United Arab Emirates Oman and other

locations. The program focuses on introducing midtosenior professionals and technical specialists for key positions including production management quality management and functional support. Selected candidates

have completed systematic training at domestic factories. The first batch of personnel will be deployed overseas in phases starting from 2026 to support the stable production and operation of overseas bases.Case: Cooperation Between Xiaogan Jihong and Wuhan Vocational College of Information and Communication

Xiaogan Jihong has established an industry-university partnership with Wuhan Vocational College of Information and Communication. Through campus talks company visits and customized training programs the

Company has guided students majoring in intelligent manufacturing to participate in the Hongling Engineering Training Program. In 2025 a total of 21 students had officially joined the Company providing a stable talent

pipeline of skilled professionals for intelligent manufacturing operations.Employment in 2025 at Jihong Group

Category Unit Data Category Unit Data

Total Number of Employees People 4757

Employee Turnover Rate % 17.43

Male People 2387

Number of Employees

by Gender

Female People 2370

Male % 16.77

30 and below People ?2113 Employee

Turnover Rate by

Gender

31-40 People 1629

Number of Employees Female % 18.08

by Age

41-50 People 747

51 and above People 268 30 and below % 20.17

General Staff People 4338

Number of Employees 31-40 % 16.47

Middle Manager People 346

by Titles Employee

Turnover Rate by

Senior Manager People 73 Age

41-50%11.21

Chinese Mainland People 4752

Number of Employees

by Region

Outside the Chinese Mainland People 5 51 and above % 17.30

Below Junior College People 1906

Chinese Mainland % 17.43

Junior College People 979

Number of Employees Employee

by Education Turnover Rate

Undergraduate People 1770 by Region Outside the

%0

Chinese Mainland

Graduate Above People 1025.4.2 Employee Rights Protection

The Company adheres to the principles of lawful and compliant employment and upholds the

core guidelines of “compliance fairness motivation competitiveness and resilience”. The Company Case Study: Holiday Benefits

continuously optimizes its salary and benefits system and strengthens the protection of employees’

legitimate rights and interests. Meanwhile the Company actively promotes fairness and a strong The Company prepares holiday benefits and gifts for each

sense of belonging among employees through effective communication and care fostering a stable employee during major festivals such as the Spring Festival and

harmonious and positive working environment. Mid-Autumn Festival.The Company attaches great importance to employees’ needs and establishes a stable and

harmonious workplace through institutionalized communication and feedback mechanisms. In 2025

the Company formulated the Employee Management Measures which stipulate that employees who

object to position adjustments may submit a written appeal to their department supervisor. The

department management team shall review the validity of the objection and issue a final decision

accordingly. In addition the Company published an announcement on its office platform to solicit

opinions on the transparency of human resources policies clarifying official feedback channels to

widely collect employees’ views and suggestions.In terms of compensation and benefits the Company has established a comprehensive salary

and incentive framework. In 2025 the Company maintained its structured salary system comprising

basic salary position-based salary performance salary commission overtime pay and various

bonuses and allowances. The Company also integrated long-term incentives such as annual

dividends and equity incentives forming a complete short- medium? and long?term incentive

mechanism. The Company has implemented a standardized salary calculation and payment process

to ensure that employees receive their remuneration on time and in full. The Company also makes

statutory contributions to social insurance and the housing provident fund for all employees fully

safeguarding their statutory rights and benefits. Distributes Holiday Benefits to Employees

To enhance employees’ sense of gain and belonging the Company continues to provide

diversified welfare programs and care initiatives. In 2025 the Company carefully organized a seriesof employee activities centered on the theme of “empowering growth enhancing solidarity andbuilding warmth together” covering public welfare practices team building ideological guidance

and other dimensions. Through participation in these activities employees can deeply experience

the care and further strengthen their sense of belonging and happiness.5.4.3 Employee Training and Development

Jihong Group attaches great importance to the long-term development and upskilling of employees and regards employee growth as a fundamental pillar of sustainability.The Company has established a systematic talent development framework centered on job competency and organizational development needs covering talent cultivation

career progression and employee training. Through clear career development paths and tiered training arrangements the Company supports employees in enhancing their

professional capabilities and achieving career growth and promotes the alignment of individual development with corporate strategic objectives.Talent Development and Promotion

The Company has put in place internal management systems including the Employee Career Development Management System and the Talent Development Management

System and conducts regular talent assessments to build a personnel mechanism where “the capable rise the mediocre step aside and the incomplete leave.” The Company

has also systematically optimized the full-cycle management of training development and promotion. On this basis the Company has built a talent development pathway

underpinned by a dual-track rank system establishing parallel promotion channels for management roles and professional specialists. The Company has standardized the rank

adjustment procedure strengthened the application of performance appraisal and talent assessment results in promotion decisions and formed a comprehensive evaluation

system with performance capability and values at its core.Talent Development Plans 2025 at Jihong Group

Jihong Group Management Talent Jihong Group Strategic Talent Cultivation

Giikin Management Trainee Program

Development Plan Project “Hongyu Program”

* The Giikin Management Trainee Program is designed * The Company identifies high-potential employees * The program covers four stages: selection

to cultivate versatile talents with expertise in both through talent assessments and evaluations development appointment and retention. In the

business and management. Over 12 months trainees preparing them for key leadership roles. Development selection stage the focus is on identifying high-

go through rotational assignments structured training efforts include hands-on project assignments potential highly committed and highly qualified

and performance evaluations to build their skills and mentorship programs and leadership courses talents. The development stage is based on a work-

adaptability. Trainees rotate through roles such as equipping employees with the skills needed for study approach combining on-the-job training

Business Assistant Optimization Specialist and management positions. Qualified individuals are classroom learning and mentorship to set clear

Product Selection Specialist gaining hands-on promoted through direct appointments or internal growth objectives and provides dual career paths in

experience through company on-boarding business selection processes ensuring a strong pipeline of both technical and managerial roles. The retention

rotations and competitive placement exercises. The capable leaders. This program helps build a talent stage offers performance bonuses salary

program is supported by mentors-hip regular pool for roles such as Vice Presidents department adjustments and promotion incentives to support the

evaluations and quarterly reviews ensuring heads in production PMC quality and equipment long-term development and stability of core talent.continuous development. At the end of the program management as well as frontline team leaders

trainees are placed in roles that match their skills and supporting both employee career growth.interests helping them grow while contributing to the

Company’s success.Training Programs at Jihong Group

Employee Training Job Training Skilled Worker Vocational Academic

In terms of employee training the Company has established internal Apprentice Qualification Training Qualification Training

systems including the Training Management System to standardize training Training

procedures and requirements and has built a hierarchical and categorized The Company conducts job In 2025 the Company launched In February 2025 three To support employees’ long-term

training system covering new employees incumbent employees and training (including pre- short-term talent training employees participated in career development and enhance employment safety operation programs with monthly the intermediate vocational the overall talent quality Jihong

management personnel. training and quality assessments of participants qualification training and Group has established an

management training and conducted from March to examination for Fire Academic Qualification

The Company systematically carries out various training activities in skilled workers apprentice December. A total of 7 multi?skilled Protection Facility Operators Improvement Program for key

accordance with the annual training plan including job skill enhancement training. workers and 2 skilled workers were and successfully obtained positions across subsidiaries. Fully trained. the corresponding funded by the Company the

management capability development and specialized thematic training to qualification certificates. program provides systematic

support for employees to pursue

continuously meet the development needs of different employee groups. In higher academic degrees.

2025 the total annual training expenditure of Jihong Group was RMB 100000.

Category Unit Data

Total Training Hours for all Employees hour(s) 36733

Average Training Hours for all Employees hour(s) 7.40

Average Training Hours Male hour(s) 6.82 Job Training at Jihong Skilled Worker Apprentice Academic Qualification

for all Employees by Group Training at Jihong Group

Training at Jihong Group

Gender Female hour(s) 8.12

General Staff hour(s) 7.25

Average Training Hours Case: Employee Skills Competition

for all Employees by Middle Manager hour(s) 11.10 In October 2025 the Company organized an employee skills competition with multiple events designed based on the practical

Titles needs of frontline positions. The competition covered color matching skills for the Offset Printing Department forklift operation

Senior Manager hour(s) 3.39 for the Storage and Transportation Department fire safety drills for the Production Department quality skills contests knowledge

quizzes and PS publishing skills contests for the Technical Quality Department. The event helped employees enhance their

professional capabilities and safe operation standards. The Company prepared prizes for participants and on-site observers

Percentage of Male % 100 which effectively boosted employee engagement and teamwork atmosphere.Employees Trained by

Gender Female % 100

General Staff % 100

Percentage of

Employees Trained by Middle Manager % 100

Titles

Senior Manager % 100 Employee Skills Competition

Employee Training Status in 2025 at Jihong GroupJihong Group actively fulfills corporate social responsibility by integrating philanthropy into business development employee engagement and community development. The

Company has maintained consistent participation in social welfare and rural revitalization initiatives through diversified channels. By leveraging resource advantages and

operational capabilities the Company encourages employees to engage in public welfare through volunteer services and charitable activities with a focus on supporting

vulnerable groups and the needs of communities. This enables the Company’s development to better benefit society at large.In 2025 employees participated in volunteer activities for a total of 180 person-times contributing 33 hours of service with public welfare projects receiving an

investment of RMB 2819100. Meanwhile the Company invested RMB 70000 in rural revitalization projects benefiting 11000 people.Case: Public Welfare Activity on Arbor Day– "Planting Trees to Protect Forest Together"

On March 12 2025 the Company celebrated the 47th National Arbor Day

by organizing a public welfare tree planting activity themed public welfare

practice and team collaboration in partnership with the authorities of Shifo

Town. Employees traveled to a suburban public welfare tree planting base to

participate in the event.At the site employees worked together

in teams to complete the whole planting

process orderly including shoveling soil

fixing saplings watering and maintenance. In

total more than 200saplings were planted.The activity also included a special session

of the Exclusive Sapling Sponsor. Employees

were able to hang customized nameplates

on the sponsored saplings and commit to

regular maintenance and care in the future.Public Welfare Activity on Arbor Day6 Governance:

Stable Operation

Jihong Group firmly adheres to the principles of compliant operation and transparent

information disclosure and deeply implements a sustainability-focused development philosophy.The Company optimizes corporate governance structure strengthens risk management system

upholds ethical and compliant business conduct and steadily improves the systematization

robustness and effectiveness of governance practices laying a solid foundation for the long-

term and healthy development of the enterprise.Jihong Group views sound corporate governance as a core engine for steady growth. Guided by the philosophy of lean governance the Company further refines governance

mechanisms enhances the board professionalism and diversity improves the scientificity and foresight of strategic decision-making effectively protects the rights and

interests of shareholders and promotes sustainable high-quality and sound development.

6.1.1 Board of Directors Structure

Jihong Group fully complies with applicable laws and regulations including the Company Law of the People’s Republic of China the Securities Law of the People’s

Republic of China the Code of Corporate Governance for Listed Companies the Rules Governing the Listing of Stocks on Shenzhen Stock Exchange the Rules Governing

the Listing of Securities on the Stock Exchange of Hong Kong Limited as well as other regulatory requirements of listed jurisdictions. The Company conducts operations in

accordance with internal governance instruments such as the Articles of Association the Rules of Procedure for Shareholders’ Meetings and the Rules of Procedure for the

Board of Directors. Based on actual operation the Company has established a corporate governance and decision-making system centered on the Shareholders' Meeting the

Board of Directors and the senior management. Director elections and appointments follow a fair and transparent process ensuring a governance system that is efficient

compliant and stable while safeguarding the interests of both the Company and its shareholders. The Board of Directors has established four special committees: the Strategy

Committee the Audit Committee the Nomination Committee and the Remuneration and Assessment Committee. Each special committee reports to the Board of Directors

conducts research and reviews on major governance matters puts forward professional opinions and recommendations and supervises the implementation of relevant

resolutions thereby improving the efficiency and quality of the Board’s decision-making. As of the reporting period the Company’s Board of Directors consisted of 9 members

including 4 independent directors and 5 non-independent directors (including 1 employee representative director) with independent directors accounting for 44% of the Board.Governance Structure

* The Shareholders’ Meeting as the highest governing body is responsible for deciding business strategies and investment plans. It has the authority to appoint and

dismiss directors and supervisors and make key company decisions.Shareholders' Meeting * The Company follows strict procedures for convening conducting and voting in Shareholders’ Meetings. A structured communication strategy is in place to encourage

participation ensuring that all shareholders including minority shareholders have equal standing and legal rights.* In 2025 the Company held four Shareholders’ Meetings.* The Board of Directors as the permanent body is responsible for setting business plans and investment strategies convening Shareholders’ Meetings and executing

Board of Directors their resolutions. The Board is directly accountable to the Shareholders’ Meeting.* In 2025 the Company held 7 Board of Directors meetings with a 100% attendance rate among board members.Senior Management * Senior Management as the executive branch of the Board of Directors is fully responsible for daily operations and management under the Board’s leadership.6.1.2 Diversity of the Board of Directors 6.1.3 Investors Communication Mechanism

Jihong Group emphasizes the diversity and professionalism of the Board of Jihong Group is guided by investor needs and adheres to the principles of

Directors. In the selection of directors the Company comprehensively considers openness and transparency in information disclosure maintaining a clear and

multiple factors including gender age professional competence industry efficient communication mechanism with investors. The Company introduces

experience and educational background. This ensures that Board members possess management philosophy corporate culture and business performance through

solid professional qualifications extensive industry experience and complementary shareholders’ meetings earnings briefings and other channels. To effectively protect

knowledge structures covering key fields such as finance law and corporate investor and shareholder legitimate interests the Company continuously improves

management thereby ensuring informed and effective decision-making. Meanwhile shareholder return mechanisms fostering a balanced relationship between the

to maintain the stability and initiative of the Board the Company has established a Company and its shareholders while strongly supporting sustainable development.performance-based remuneration and incentive system which effectively motivates

directors and senior management to perform their duties diligently. As of the end of

the reporting period Jihong Group’s Board includes 2 female directors.Composition of the 6th Board of Directors7 Investor Communication

Committee Appointment Status The Company maintains close communication

with investors through diversified channels

including information announcements the

investor relations interactive platform Shareholder Returns

Positions Name Gender Age Remuneration performance briefings investor hotline calls

The Company continuously improves the

Strategy Audit Nomination and shareholder return mechanism. When

Committee Committee Committee Assessment designated email the official website and

Committee WeChat official account committed to formulating policies the Company fully

establishing and sustaining long-term stable solicits opinions from shareholders and

and trust-based investor relations. During the independent directors with particular

reporting period the Company held two attention to the reasonable demands of

ZHUANG Hao Female 57 C earnings briefings responded to 80 interactive minority shareholders. In respect of profit

ZHANG Heping Male 57 M M Easy posts and issued 138 announcements.distribution the Company prioritizes cash

Non- dividends and maintains the continuity

Independent ZHUANG Shu Male 55 M and stability of its dividend policy striving

Directors LU Tashan Male 28 to achieve an effective balance between

protecting the equity interests of all

BAI Xueting Female 47 shareholders and promoting the long-

term development of the Company.ZHANG Guoqing Male 50 C M

Independent DENG Yihai Male 62 M C

Directors

CAI Qinghui Male 52 M C

XUE Yongheng Male 65 M M

7.C: Chairman of board committees M: Members of board committeesJihong Group continuously optimizes risk management mechanisms and clarifies risk management responsibilities at all levels. The Company proactively promotes risk

identification assessment and mitigation and steadily improves the effectiveness of risk management. Meanwhile the Company strengthens risk awareness training across all

employees providing solid support for the stable and sustainable development of various business operations.

6.2.1 Risk Governance

Adhering to the risk management principles of “knowable controllable and bearable” Jihong Group has formulated and implemented a Comprehensive Risk Management

System which systematically standardizes risk control requirements embedded in various business processes and implements specialized management for major risks. The

Company has established a risk management organizational structure consisting of the Board of Directors the Audit Committee and the Audit and Financial Management

Center. With clear division of responsibilities and effective collaboration all departments ensure the implementation of risk control measures and guarantee the orderly conduct

of comprehensive risk management activities.Risk Management Framework and Responsibilities at Jihong Group

Board of Directors Audit Committee Audit Department

Oversees overall risk management and Audit Committee as a specialized committee Reports regularly to the Audit Committee monitoring internal

business operations. under the Board providing guidance and control systems to ensure that they are properly established

supervision for risk management activities. and effectively implemented.To further strengthen internal management and risk prevention the Company has carried out special audits of subsidiary factories in accordance with the internal audit

system and will strictly implement corresponding incentives and accountability mechanisms based on audit results. In September 2025 the Company conducted an operations

management audit of Ningxia Factory. The audit results showed that the factory achieved excellent operational performance and the Company granted performance bonus

points as an incentive.6.2.2 Risk Identification and Response 6.2.3 Risk Awareness and Culture

The Company continuously optimizes risk management processes and The Company places emphasis on enhancing

regularly conducts risk identification assessment and response activities to the risk awareness and control capabilities of all

establish a dynamically updated risk database. In 2025 the Company personnel. To address practical management

identified key risk points embedded in production and operational activities requirements the Company regularly organizes

covering major business processes including procurement management training sessions and awareness programs on

production management and sales management as well as core areas such contract approval seal usage and information

as logistics and asset management. Tiered and classified control measures system operations ensuring employees fully

have been implemented to effectively enhance risk control capabilities. comprehend and adhere to internal risk

Meanwhile risk management has been integrated into the internal control management policies minimizing the likelihood of

audit system. The Company performs regular internal control self- risk violations in daily operations.assessments and engages third-party institutions to conduct internal control

audits. During the reporting period no significant or material risk events were

identified in risk management and internal control activities.Risk Management Process and Measures

Risk Risk Risk Case: Comics on "Risk Control Talks"

Identification Assessment Response

* * In 2025 the Company launched a series of comic Each department Establish a risk * Select appropriate

collects initial internal assessment team to risk response promotions on a regular basis including Risk Control Talks

and external data define risk strategies such as and Tips on Avoiding Pitfalls. The series covers key risk

related to potential management risk avoidance management scenarios including contract management

risks and risk philosophy and risk acceptance reduction

management. tolerance. or transfer based on customer complaints and procurement practices. Through

* Systematically collect * Identify and record the risk analysis such engaging formats the Company effectively strengthens

and identify risk categories and severity results and causes. employees’ risk control awareness and enhances their

information via multiple of risks from * Establish a dynamic

methods including environmental factors mechanism for capacity to respond to risks.document review processes strategic monitoring reviewing

questionnaires decision-making and preventing risks

interviews and information and to track risk control

historical event internal Company progress and share it

analysis. elements. with relevant

* Establish a risk departments.assessment index

system and standards.* Analyze the risks and Comics on "Risk Control Talks"

assess the potential

losses they may incur.Jihong Group steadfastly adheres to core corporate values of “responsibility innovation and achievement” and upholds the fundamental principle that “credibility and integritylay the foundation for growth.” The Company continuously improves its business ethics and compliance management system vigorously promotes an integrity-driven corporate

culture establishes and improves complaint channels and maintains a zero-tolerance attitude toward corruption and unfair competition. The Company is committed to fostering a

clean and upright business environment providing a solid guarantee for high-quality development.

6.3.1 Business Ethics Governance

Jihong Group consistently prioritizes integrity and compliance within the corporate governance framework. The Company strictly abides by applicable laws and regulations

including the Company Law of the People’s Republic of China the Anti-Monopoly Law of the People’s Republic of China the Criminal Law of the People’s Republic of China

the Anti-Unfair Competition Law of the People’s Republic of China and the Anti-Money Laundering Law of the People’s Republic of China. The Company has formulated

internal management systems such as the Conflict of Interest Management System the Anti-Business Bribery Anti-Fraud and Reporting Management System and the Gift

Management Measures. These systems explicitly prohibit commercial bribery embezzlement fraud unfair competition and other illegal or non-compliant acts and unswervingly

adhere to lawful and compliant operation.In 2025 the Company officially issued the Anti-Unfair Competition Management System. The Company consistently applies anti-unfair competition principles throughout

operations as reflected in various agreements signed with external parties including a Confidentiality Agreement in cooperation Non-infringement Commitment with

customers and Transparent Agreement with suppliers. These measures promote fair competition oppose and prevent unfair competition practices and respect the legitimate

rights and interests of all parties.Business Ethics Management System at Jihong Group

Management Company and

Board of Directors Audit Committee Audit Department

Team Subsidiaries

Responsible for overseeing As the leading body for the Responsible for establishing The Audit Department serves Responsible for the

management in establishing a Company’s integrity initiatives it improving and effectively as the permanent body for anti- implementation of internal controls

company-wide culture of integrity guides and supervises the implementing internal controls bribery and anti-fraud efforts related to anti-bribery and anti-

and developing robust internal Company’s anti-bribery and anti- related to anti-bribery and anti- responsible for conducting fraud and for cooperating in the

control systems to combat fraud efforts. fraud to mitigate the risk of supervision and investigations investigation and evidence

commercial bribery and fraud. bribery and fraudulent activities. In related to these matters. collection of bribery and fraud

the event of a bribery incident it incidents.formulates and implements

appropriate and effective remedial

measures subject to oversight by

the Board of Directors and its

Audit Committee.6.3.2 Business Ethics Training

To enhance the risk controls against corruption unfair competition and other Jihong Group continues to promote anti-corruption education and training and

violations Jihong Group has reinforced its integrity management measures. When strengthens the development and implementation of a corporate culture of integrity

appointing or promoting candidates for key positions the Company conducts with a focus on improving the business ethics and anti-corruption awareness of all

thorough integrity evaluations and enforces a strict anti-bribery commitment employees. The Company regularly organizes specialized training for senior

system. Candidates are required to sign the Honest Operation and Compliance management and directors on topics including the Code of Conduct for Management

Management Commitment Letter with compliance performance integrated into Personnel and the Gift Management Measures so as to guard against potential

their evaluations. Based on business ethics risk assessments the Company also misconduct and ensure integrity and compliance in corporate governance. For all

conducts regular audits combining daily monitoring with targeted reviews. During employees the Company expands the coverage of integrity promotion through posters

the reporting period the Company identified no business ethics-related risk continuously conveying the importance of an integrity culture.factors such as bribery extortion fraud or money laundering that materially

impacted compliance. Case Study: Awareness Training on Open Procurement with Integrity

In 2025 the Company held the integrity awareness training on Open

Business Ethics Audit Measures at Jihong Group Procurement with Integrity. The program covered regulatory requirements

whistle-blowing mechanisms integrity initiatives and procurement-related

risks. This training further strengthened the procurement compliance and

risk management system improved supervision and reporting mechanisms

Internal Employee promoted the integration of an integrity culture into operations and

Suppliers

Management supported sustainable and high-quality development. The training was delivered to all members of the Procurement Centre and newly recruited

procurement staff at the Suzhou factory with a total of 8 participants.When establishing cooperative During onboarding procedures the After the training the Procurement Centre carried out cascaded secondary

relationships with suppliers and Human Resources Department briefs training for procurement personnel across subsidiaries which effectively

customers the Company typically new hires on integrity and compliance improved employees’ risk management capabilities.formalizes a shared commitment to requirements. Upon full understanding

upholding business ethics through and agreement to comply new

written agreements while informing employees sign the Honest Operation Case Study: Integrity Campaign for Mid-Autumn Festival and National

them of specific complaint channels. and Compliance Management Day

During routine audits supplier Ahead of the Mid-Autumn Festival and National Day holiday in 2025 the Company launched a Commitment Letter. special compliance and integrity campaign focused on regulated festival gift-giving and accepting

management is incorporated into the The Company stresses the Code of practices. Training materials on gift-giving and accepting policies and compliance requirements

audit scope. Key points include but are Conduct for Management Personnel at were uniformly issued to department heads and managers of all subsidiaries. All responsible

not limited to whether both parties persons were required to complete self-study within the specified period and conduct internal regular meetings requiring managers to training sessions for their respective teams. The Company also distributed compliance publicity

have reached a consensus on jointly strictly adhere to relevant business posters to further strengthen integrity reminders.maintaining business ethics and ethics regulations.whether any breaches of business In day-to-day operations the Audit

ethics have occurred during the Department disseminates business As of the end of the reporting period Jihong Group held six anti-corruption training sessions for

cooperation period. ethics awareness materials employees and senior management covering business ethics standards reporting mechanisms and

emphasising an integrity culture and reward and punishment regulations. A total of 394 participants attended with cumulative training hours

institutional policies to all employees. reaching 23 hours. For members of the Board of Directors the Company provided five hours of anti-

corruption training achieving 100% coverage of all directors.6.3.3 Reporting Management

Jihong Group strictly abides by the regulations of national disciplinary inspection and supervision authorities and improves the Anti-Business Bribery Anti-Fraud and

Reporting Management System. The Company optimizes complaint acceptance processes and mechanisms to ensure that complaints and reports are handled in a timely and

effective manner. The Company has established diversified and easily accessible reporting channels encouraging internal employees and external stakeholders such as

business partners to report fraud or suspected violations via telephone email written correspondence or face-to-face meetings. Upon receipt of a report the Audit

Department launches an investigation in strict accordance with prescribed procedures ensuring objectivity and impartiality throughout the process.To protect the legitimate rights and interests of whistleblowers the Company’s internal management systems explicitly include protection provisions that prohibit any form

of discrimination or retaliation including unfair dismissal harassment or unreasonable disciplinary action. Without the consent of the whistleblower the Company will not

disclose their identity or the content of the report ensuring effective protection during the investigation. Meanwhile the Company resolutely prohibits false or malicious

reporting. If such conduct is verified corresponding measures will be taken against the whistleblower in accordance with regulations so as to fully safeguard the integrity of the

reporting system and maintain the effectiveness of reporting channels. In 2025 the Company had no litigation or administrative penalty cases involving unfair competition

embezzlement bribery or money laundering.Reporting Channels at Jihong Group

* Reporting Hotline: 18150353249

* Reporting Email: shenji@jihong.cn

* Reporting Address：Audit Department Jihong Group No.9 Putou Rd. Dongfu Industry Park Ⅱ Haicang District

Xiamen City Fujian Province7 AppendicesEnvironmental

General Disclosure &

Indicator Description Chapter References

KPI Aspect A2: Use of Resources

Aspec t A 1 : Em i ss i ons

4.1.2 Resource

General Disclosure Policies on the efficient use of resources including energy water and other raw materials.Management

4.1.1

I n f o r m a t i o n o n : ( a ) t h e p o l i c i e s ; a n d ( b )

E n v i r o nm e n t a l

c om p l i a n c e w i t h r e l e v a n t l a w s a n d r e g u l a t i o n s ? Direct and/or indirect energy consumption by type (e.g. electricity gas or oil) in total (kWh 4.1.2 Resource M a n a g em e n t A2.1

G e n e r a l t h a t h a v e a s i g n i f i c a n t i m p a c t o n t h e i s s u e r in ’000s) and intensity (e.g. per unit of production volume per facility). Management

4 . 1 . 2 R e s o u r c e

D i s c l o s u r e r e l a t i n g t o a i r e m i s s i o n s d i s c h a r g e s i n t o w a t e r

M a n a g em e n t

a n d l a n d a n d g e n e r a t i o n o f h a z a r d o u s a n d n o n -

4 . 1 . 3 Em i s s i o n

h a z a r d o u s w a s t e .M a n a g em e n t

? 4.1.2 Resource A2.2 Water consumption in total and intensity (e.g. per unit of production volume per facility).Management

4.1.2 Resource

T h e t y p e s o f e m i s s i o n s a n d r e s p e c t i v e 4 . 1 . 3 Em i s s i o n A2.3? Description of energy use efficiency target(s) set and steps taken to achieve them.A 1 . 1 Management

em i s s i o n s d a t a . ? Ma n a g em e n t KPI

? Description of whether there is any issue in sourcing water that is fit for purpose water 4.1.2 Resource D i r e c t ( S c o p e 1 ) a n d e n e r g y i n d i r e c t ( S c o p e 2 ) A2.4 efficiency target(s) set and steps taken to achieve them. Management

g r e e n h o u s e g a s e m i s s i o n s ( i n t o n n e s ) a n d 4 . 3 . 4 I n d i c a t o r s

A 1 . 2

w h e r e a p p r o p r i a t e i n t e n s i t y ( e . g . p e r u n i t o f a n d T a r g e t s

p r o d u c t i o n v o l um e p e r f a c i l i t y ) . ?

? Total packaging material used for finished products (in tonnes) and if applicable with 4.1.4 Green A2.5

reference to per unit produced. Products

T o t a l h a z a r d o u s w a s t e p r o d u c e d ( i n t o n n e s ) a n d

4 . 1 . 3 Em i s s i o n

A 1 . 3 w h e r e a p p r o p r i a t e i n t e n s i t y ( e . g . p e r u n i t o f

M a n a g em e n t

p r o d u c t i o n v o l um e p e r f a c i l i t y ) . ?

K

P Aspect A3: The Environment and Natural Resources

I

T o t a l n o n - h a z a r d o u s w a s t e p r o d u c e d ( i n t o n n e s )

4 . 1 . 3 Em i s s i o n

A 1 . 4 a n d w h e r e a p p r o p r i a t e i n t e n s i t y ( e . g . p e r u n i t 4.1.1

M a n a g em e n t General Policies on minimising the issuer’s significant impacts on the environment and natural

o f p r o d u c t i o n v o l um e p e r f a c i l i t y ) . ? Environmental

Disclosure resources. ?

Management

D e s c r i p t i o n o f e m i s s i o n t a r g e t ( s ) s e t a n d s t e p s 4 . 1 . 3 Em i s s i o n

A 1 . 5

t a k e n t o a c h i e v e t h em . M a n a g em e n t

K 4.1.1

Description of the significant impacts of activities on the environment and natural

P A3.1? Environmental

D e s c r i p t i o n o f h o w h a z a r d o u s a n d n o n - I resources and the actions taken to manage them.?

h a z a r d o u s w a s t e s a r e h a n d l e d a n d a 4 . 1 . 3 Em i s s i o n Management

A 1 . 6

d e s c r i p t i o n o f r e d u c t i o n t a r g e t ( s ) s e t a n d s t e p s M a n a g em e n t

t a k e n t o a c h i e v e t h em .Aspec t B6 : P roduc t Respons ib i l i t y ?

5.1.1 Quality Management

Information on:(a) the policies; and(b) compliance with relevant laws and regulations 5.1.2 Customer Service

Social that have a significant impact on the issuer relating to health and safety advertising General Disclosure labelling and privacy matters relating to products and services provided and methods

of redress. 5.1.3 Information Security

Gene ra l 5.1.4 Innovation and R&D

Chap te r

D i sc l osu re & I nd i ca to r Desc r i p t i on ? Percentage of total products sold or shipped subject to recalls for safety and health Refe r ences B6.1 ? 5.1.1 Quality ManagementKP I reasons.? Number of products and service related complaints received and how they are dealt B6.2 5.1.2 Customer Service

with.Aspec t B4 : Labou r S t anda rds KPI ? Description of practices relating to observing and protecting intellectual property 5.1.5 Intellectual Property B6.3

rights. Protection

Information on:(a) the policies; and(b) compliance with relevant laws

5.4.1 Diversity Equality and B6.4? Description of quality assurance process and recall procedures. 5.1.1 Quality Management

General Disclosure and regulations that have a significant impact on the issuer relating to

Inclusion

preventing child and forced labour.? Description of consumer data protection and privacy policies and how they are B6.5 5.1.3 Information Security

? Description of measures to review employment practices to avoid child 5.4.1 Diversity Equality and

implemented and monitored.B4.1

and forced labour. ? Inclusion

KPI

5.4.1 Diversity Equality and Aspect B7: Anti-corruption ?

B4.2? Description of steps taken to eliminate such practices when discovered.Inclusion

Information on:(a) the policies; and(b) compliance with relevant laws and regulations

6.3.1 Business Ethics

General Disclosure that have a significant impact on the issuer relating to bribery extortion fraud and

Aspec t B5 : Supp l y Cha in Management Governancemoney laundering.

5.2.2 Supply Chain ESG

General Disclosure Policies on managing environmental and social risks of the supply chain. ? Number of concluded legal cases regarding corrupt practices brought against the Management B7.1 6.3.3 Reporting Managementissuer or its employees during the reporting period and the outcomes of the cases. ?

? 5.2.1 Supplier Admission and B5.1 Number of suppliers by geographical region.Evaluation

? Description of preventive measures and whistle-blowing procedures and how they KPI B7.2 6.3.3 Reporting Management

5.2.1 Supplier Admission and are implemented and monitored. ?

Description of practices relating to engaging suppliers number of Evaluation

B5.2? suppliers where the practices are being implemented and how they are

? 6.3.2 Business Ethics implemented and monitored. B7.3 Description of anti-corruption training provided to directors and staff.5.2.2 Supply Chain ESG Training

Management

5.2.1 Supplier Admission and Aspect B8: Community Investment

KPI Evaluation

? Description of practices used to identify environmental and social risks B5.3

along the supply chain and how they are implemented and monitored. Policies on community engagement to understand the needs of the communities

5.2.2 Supply Chain ESG 5.5 Public Welfare and General Disclosure where the issuer operates and to ensure its activities take into consideration the

Management Charitycommunities’ interests.

5.2.1 Supplier Admission and

? Focus areas of contribution (e.g. education environmental concerns labour needs 5.5 Public Welfare and B8.1

Description of practices used to promote environmentally preferable Evaluation health culture sport). ? Charity

B5.4? products and services when selecting suppliers and how they are KPI

implemented and monitored. 5.2.2 Supply Chain ESG

? 5.5 Public Welfare and Management B8.2 3.5 Social Welfare CharityCorresponding Corresponding

Dimensions Index Topics Corresponding Chapter Dimensions Index Topics Corresponding Clauses

Clauses Chapter

5.2.1 Supplier

Admission and

4.3.1 Governance Evaluation

Addressing Climate 4.3.2 Strategy

1 Article 21-28 13 Supply Chain Security Article 45 5.2.2 Supply Chain

Change 4.3.3 Risk Management ESG Management

4.3.4 Indicators and Targets 5.2.3 Supplier

Communication

5.2.4 Equal treatment

2 Pollute Emissions Article 30 4.1.3 Emission Management 14 Fair Treatment of SMEs Article 46 of SMEs

3 Waste Management Article 31 4.1.3 Emission Management 5.1.1 Quality Product and Service Safety

Society 15 Article 47 Management

& Quality

5.1.2 Customer Service

Environmen Ecosystem and

4 Article 32 4.4 Biodiversity Data Security and Customer 5.1.3 Information

t Biodiversity Protection 16 Article 48

Privacy Protection Security

5.4.1 Diversity Equality

Environmental and Inclusion

5 Article 33 4.1.1 Environmental Management

Compliance Management 5.4.2 Employee Rights

17 Employees Article 50 Protection

6 Energy Utilization Article 35 4.1.2 Resource Management 5.4.3 Employee

Training and

Water Resource Development

7 Article 36 4.1.2 Resource Management

Management 2.1 Identification of

Material Issues

18 Due Diligence Article 52

2.2 Impact Materiality

8 Circular Economy Article 37 4.1.2 Resource Management Assessment

9 Rural Revitalization Article 39 5.5 Public Welfare and Charity 2.1 Identification of

Material Issues

19 Stakeholder Communication Article 53

10 Social Contribution Article 40 5.5 Public Welfare and Charity 2.2 Impact Materiality

Society Sustainabili AssessmentInnovation-Driven

11 Article 42 5.1.4 Innovation and R&D ty 6.3.1 Business Ethics

Development Governance Governance

12 Technology Ethics Article 43 5.1.4 Innovation and R&D Anti-Bribery and Anti- 6.3.2 Business Ethics

20 Article 55

Corruption Training

6.3.3 Reporting

Management

6.3.1 Business Ethics

Governance

6.3.2 Business Ethics

21 Anti-Unfair Competition Article 56

Training

6.3.3 Reporting

ManagementDear Readers

Greetings! Thank you for taking the time to read the 2025 Xiamen Jihong Technology Co. Ltd. Environmental Social and Governance (ESG) Report. We highly value your

feedback and look forward to hearing your thoughts on our ESG management practices and reporting. Your opinions and suggestions serve as a crucial foundation for us to

continuously improve our ESG management and implementation. We look forward to your response!

1.Which stakeholder category does your organization belong to within Jihong Group

□ Shareholders and Investors □ Employees □ Suppliers □ Customers □ Government and Regulators □ Community □Partners □ Industry Associations/NGOs □

Other (Please specify):_____________

2. How would you rate this report overall

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3. How would you rate the clarity accuracy and completeness of the information and data disclosed in this report

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4. How well do you think this report reflects the Company’s fulfillment of its economic responsibilities

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5. How well do you think this report reflects the Company’s fulfillment of its environmental responsibilities

□ Good □ Fairly Good □ Average □ Poor

6. How well do you think this report reflects the Company’s fulfillment of its social responsibilities

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7. Do you find the information provided in this report to be readable and comprehensible

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8. What content would you like to see included in future reports that has not been disclosed in this one

9. Do you have any opinions or suggestions regarding the Company’s environmental social and governance efforts or the preparation of this reportXiamen Jihong Technology Co. Ltd.

Environmental Social and Governance

Report 2025

March 2026