2025 SUSTAINABILITY REPORT
Develop technologies for the betterment of human beings;
Protect the environment for a greener earth.关于本报告
l Sustainability Management l Environmental Stewardship & Green Production
CONTENTS 11 Sustainability Management Structure 54 Environmental Sustainability
13 Identification and Analysis of Material Issues 55 Global Warming Mitigation
21 Stakeholder Communication 65 Biodiversity Management
3 About This Report 68 Energy Management
71 Water Resources Management
4 About Avary Holding
75 Cleaner Production
7 Message from the Chairman
79 Environmental Services and Promotion
8 ESG Key Performance
9 Major Honors & Recognitions l Integrity Management for l Empowering Employees &
Long-term Steady Growth Nurturing a Happy Workplace
119 Appendix
23 Corporate Governance 81 Diversity & Equality
26 Integrity Operation 91 Talent Attraction and Retention
28 Operational Risk Management 98 Talent Development and Empowerment
31 Compliant Operation 103 Occupational Health and Safety (OHS)
31 Information and Communication Security
l Innovation Empowers l Giving Back to Society Staying True
Quality Assures to Our Founding Mission
35 Innovation and R&D 111 Care and Assistance
39 Responsible Supply Chain 117 Public Welfare Activities and Donations
45 Product Responsibility 117 Rural Vitalization
51 Customer Service 118 Participation in Organizations / Associations
2About This About Avary Major Honors &
Integrity Management Environmental
Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
About This Report
Report Introduction Data Sources
This is the 7th sustainability report of Avary Holding (Shenzhen) Co. Limited (Stock Code: The financial data included in this report is excerpted from the Company’s audited 2025
002938). Based on objectivity standardization transparency and comprehensiveness it Annual Report; in the event of any discrepancies the Annual Report shall prevail. Other
discloses the Company’s practices and performance in governance products environment data is sourced from relevant internal statistical reports administrative documents and
and social aspects in 2025. other materials.Report Scope Reliability Statement
This report covers Avary Holding (Shenzhen) Co. Limited and its subsidiaries. Unless Approved by the Board on March 30 2026. The Board supervises content and warrantsotherwise stated the scope is consistent with the annual report. See appendix “Boundary of authenticity accuracy and completeness with no false or misleading statements.Sustainability Information Collection”.Report Access
Reporting Period
This report is available in electronic format. You can access the electronic version of this
January 1 - December 31 2025. Some historical data are included for comparability and report at the following website: https://www.avaryholding.com/development.aspxtype=43
completeness.Feedback
Preparation Basis
If you have any comments suggestions or questions regarding this report please feel free
Prepared in accordance with the Self-Regulatory Guidelines No. 17 for Companies Listed on to contact us using the information below:
Shenzhen Stock Exchange—Sustainability Report (For Trial Implementation) (hereinafter Address: 27th Floor Tower A Avary Times Building No.2038 Haixiu Rd Bao’an
referred to as the Guidance) with reference to GRI Standards 2021 TCFD and UN SDGs. Shenzhen
Tel: 0755-33810388
Email: a-h-m@avaryholding.com
3Integrity Management
About This About Avary Environmental Message from ESG Key Major Honors & Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
About Avary Holding
Avary Holding (Shenzhen) Co. Limited (“the Company”) was founded on April 29 1999 and listed on
the Shenzhen Stock Exchange on September 18 2018 under the stock short name “Avary Holding”
l 历Ch年ar营t o收f A趋nn势ual Revenue Trends
with stock code 002938.The Company is a large integrated manufacturer covering R&D design fabrication sales and services
of various PCBs. The Company provides full-range PCB products and end-to-end customized solutions
across the whole industrial chain to premium customers in line with bespoke specifications of
downstream end products. The Company tops China’s PCB industry rankings released by CPCA year
after year. Per Prismark’s 2018 - 2026 global ranking by revenue the Company has remained the
world’s largest PCB manufacturer for nine consecutive years from 2017 to 2025.Corporate Culture Core Business
Avary Holding’s corporate culture consists of five core philosophies: upholding upright conduct
advocating diligence cultivating accountability promoting unity and resource sharing and Smartphones
Servers Wearable Devices
rewarding contributors accordingly. The Company takes employees as its foundational asset. To
achieve outstanding performance and sustainable development the Company prioritizes employees’ Storage Devices
Tablets
integrity and self-worth inspires proactive accountability guides staff to live out corporate values
and deliver positive impacts on families and communities. Converters
Laptop Computers
Mission Develop technologies for the betterment of human beings; Protect the environment for a greener earth.MR Devices Automobiles
Business vision Develop PCB and other related industries to become a leader in
AI Glasses
the industry.Satellites & Receivers
VR Devices
Core values Integrity responsibility innovation excellence and profitability.Display Screens Routers Base Stations
4
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025Integrity Management
About This About Avary Environmental Message from ESG Key Major Honors & Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Report Holding the Chairman Performance Recognitions
for Long-term Steady Stewardship & Green
Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Development History
*2005*2017
Huahong Electronics (Taiwan) * Fukui Precision
was renamed Hong Sheng Components * 2020
Technology (Shenzhen) Co. * 2013 * Shenzhen Phase 2
* 2006 Ltd. was Industrial Park completed * 2025Ranked No.1 in China and
Shareholding restructured; renamed Avary * Pengsheng (Thailand) No.2 worldwide among and put into operation； * 2024
Hong Sheng Technology Holding Phase 1 Industrial Park PCB manufacturers * Construction of Huai’an Kaohsiung
Holdings established in (Shenzhen) Co. Phase 3 Industrial Park entered trial production* 2014 Industrial Park
Cayman Islands Shenzhen Limited launched * Ground-breaking for Constructed Huai’an completed
Industrial Park developed. * To become the Phase 2 Industrial Park * 2021
Pengsheng (Thailand)
construction
world’s largest Phase 2 Industrial Park
Kaohsiung Industrial Park
PCB company
planned
*1999*2007
Constructed Huai’an Phase 1
Huahong Electronics * 2018 * 2023
Comprehensive Industrial Park * 2016
(Taiwan) established Avary Holding * Avary Times Building
and Qinhuangdao Industrial Park Equity restructuring consolidated
Fukui Precision was listed on the officially inaugurated;
* 2011 PCB businesses into Fukui Components Shenzhen Stock * Ground-breaking for
Hong Sheng Technology Precision Components (Shenzhen) (Shenzhen) Co. Ltd. Exchange Pengsheng (Thailand
Co. Ltd.in Fuyong Shenzhen Holdings renamed to Zhen Ding * 2019 Industrial Park)
Technology Holdings listed in Constructed India
Taiwan on December 26 2011 Industrial Park
5Integrity Management
About This About Avary Environmental Message from ESG Key Major Honors & Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Report Holding Recognitions
for Long-term Steady Stewardship & Green
the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Global Layout
l Birthplace of the Company Manufacturing Bases Service Hubs
Beijing
United
States
Taiyuan Korea
1999–2007: Fuyong Shenzhen Zhengzhou Japan
Wuhan
Chengdu
Shanghai
Kunshan
Chennai India Chongqin Qinhuangdao
Longhua/ Chinese Mainland
Guanlan
HongKong
Qinhuangdao
Vietnam Industrial Park
Shenzhen Chinese Huai’an Chinese
Prachin buri Thailand Mainland TaiwanChina Mainland
Shenzhen Phase 1 Shenzhen Phase 2 Kaohsiung Huai’an Phase 1 Huai’an Phase 2 Huai’an Phase 3
Industrial Park Industrial Park Industrial Park Industrial Park Industrial Park Industrial Park
Operation Center Manufacturing Bases R&D Center Service Hubs
Taoyuan Shenzhen Shenzhen Phase 1 Industrial Park Shenzhen Phase 2 Industrial Park Huai’an Phase 1 Industrial Park Shenzhen Beijing Shanghai Kunshan Shenzhen Huai’an Wuhan Zhengzhou Chengdu Taiyuan
Huai’an
Huai’an Phase 2 Industrial Park Huai’an Phase 3 Industrial Park Qinhuangdao Industrial Park Qinhuangdao Longhua Guanlan Qinhuangdao
Kaohsiung
Kaohsiung Industrial Park Taiwan
Region Chennai Industrial Park India
Taiwan
China Japan
South Vietnam United Korea States Thailand India 6About This About Avary Message from ESG Key Major Honors &
Integrity Management Environmental
Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Message from the Chairman
Build a solid foundation through digital intelligence forge ahead toward a sustainable future.In 2025 the global economic landscape saw profound adjustments. The electronic In corporate governance we adhere to the bottom line of integrity and
information industry underwent pivotal changes amid the tides of surging AI compliance continuously improve the corporate governance system
computing power supply chain restructuring and green transition. As one of the strengthen the performance efficiency of professional committees and
world’s leading PCB manufacturers we have always upheld long-termism coped with ensure all decisions are scientific and compliant. Meanwhile we improved
uncertainties with strategic perseverance made steady strides in global layout smart internal control and risk early-warning mechanisms covering the whole
manufacturing ESG and other fields and honored our solemn commitments to all chain of R&D production supply chain and finance to build a solid
stakeholders through high-quality development and sustainable practices. defense against operational risks and erected a bridge of trust with
Faced with the trend of diversified global supply chains we accelerated the shareholders regulators and partners from all walks of life through
deployment of global production capacity. In 2025 the Company accelerated transparent and efficient governance practices.construction at bases in Thailand Kaohsiung of Taiwan Region and Huai’an. On the environmental front we anchor the dual carbon goals implement
Centering on high-end tracks including AI servers automotive electronics and optical the “Avary Seven Green” philosophy and empower green production with
communications we achieved efficient coordination of global production capacity via smart manufacturing. The Company actively promotes the implementation
proximity to customers and rapid response and built a secure efficient and resilient of energy-saving and carbon-reduction technologies. By upgrading energy-
capacity supply system. saving production line equipment and optimizing energy dispatching
The AI wave is profoundly reshaping the boundaries of the manufacturing sector. We systems we effectively cut energy consumption and carbon emissions per
have designated smart manufacturing as our core strategy and built the Company’s unit output value. In circular economy we deepen resource recycling and
solidest competitive moat with digital and intelligent technologies. In top-level design build closed-loop recovery systems for electronic waste water resources
we established a digital infrastructure benchmarked against semiconductor industry and others to comprehensively boost resource utilization efficiency. At the
standards bringing our system integration and dynamic optimization capabilities up to same time the Company increases R&D investment in low-carbon
the level of wafer fabs which provides solid guarantees for the consistency and technologies explores innovative applications of green materials and low-
stability of high-end manufacturing. carbon processes in PCB production facilitates the low-carbon
In terms of value creation we consistently leverage digital intelligence technologies to transformation of the industry via technological innovation and promotes
boost production quality cut costs lift efficiency and reduce carbon emissions turning harmonious coexistence between production operation and the ecological
smart factories into the Company’s core competitiveness. The Company has fully environment.deployed a full-process quality management system. Relying on big data we realize Upholding the philosophy of “People-Oriented & Win-Win Collaboration”
proactive anomaly identification and advance early warning transforming quality we keep optimizing employee compensation incentive and welfare
management from passive troubleshooting to active prevention so as to speed up systems. We attach great importance to employees’ career growth and
product yield ramp-up and lower trial-and-error costs. physical & mental well-being and strive to build a diverse and inclusive
The Company is not only a core supplier of AI hardware but also an in-depth workplace. The Company prioritizes talent development by establishing
Chairman of Avary Holding
practitioner of AI technologies. Facing market opportunities brought by upgraded AI systematic training and career advancement pathways strengthening
computing power we have formulated a clear digital transformation roadmap to fully industry-university cooperation to cultivate specialized professionals for Looking ahead AI transformation and sustainable development will
convert our traditional manufacturing advantages into an AI-driven digital moat. By the PCB sector. In terms of supply chain responsibility we drive upstream remain the mainstream trends. Seizing opportunities amid profound
deeply applying AI technologies in core links such as high-end product R&D and downstream partners to jointly cut carbon emissions and operate in industrial changes we will take smart manufacturing as the driving
intelligent process optimization and supply chain collaboration we continuously compliance with rules so as to advance the sustainable development of the force global layout as the foundation and ESG as the core guideline.strengthen risk resistance and lead high-quality industrial development through whole industrial chain. Besides we actively engage in public welfare Leveraging technology and shouldering social responsibilities we
technological innovation. initiatives focusing on education assistance and rural revitalization to give will forge ahead to build a new ecosystem for the PCB industry and
back to society. pursue high-quality industrial development.
7Integrity Management
About This About Avary Major Honors & Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
ESG Key Performance
The company integrates its ESG systems and works with employees and the industry chain to support the UN SDGs.Governance Product
100 % A 2.459 billion 7881
Board Attendance Rate Information Disclosure Rating R&D Investment Number of R&D
Employees
0028011647
Material Illegal Incidents Material Integrity Incidents Cumulative Patent Applications Cumulative Granted Patents
0 69910 hours 100 % 100 %
Material Cybersecurity Total Cybersecurity Annual Supplier Audit Responsible Mineral
Incidents Training Hours Completion Rate Sourcing Compliance Rate
44616 hours 3 sessions 100 % 93.4
Risk Management Risk Management Master External Quality System Average Customer
Training Hours Lectures Held Audit Pass Rate Satisfaction Score
8Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
ESG Key Performance (Continued)
Environment Social
257391Thousands 314358 Thousands 47573 89 %
Annual Environmental Annual Operating Cost for Waste Gas Total Number of Employees Overall Employee
Investment Waste Water and Solid Waste Treatment Satisfaction Rate
730 kt 1.282 billion kWh 97.9 % 27745
Annual Carbon Renewable Power Consumption Key Talent Retention Rate Total Employee Training
Emission Reduction Courses Launched
17.9 MWh 47 kt 4280 Thousands 186
PV Installed Capacity Annual Water Conservation Volume Public Welfare Activities & Donations Number of Impoverished
Students Sponsored
10.77 million tons 50.4 % 4827 sessions 869993
Annual Reused Water Volume Wastewater Reuse Rate “Six-Care” Activities “Six-Care” Participation
Person-times
94 % 13 Consecutive Years 98 sessions 19317
Waste Resource Recovery Rate Waste Resource Recovery Rate Exceeding 90% “Six-Assist” Activities “Six-Assist” Participation
Person-times 9About This About Avary Message from ESG Key Major Honors &
Integrity Management Environmental
Sustainability Innovation Empowers Empowering Employees Giving Back to Society
for Long-term Steady
Report Holding Stewardship & Green the Chairman Performance Recognitions Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Major Honors & Recognitions
SZSE CNI ESG Sino-Securities Index Information Wind
AAA Rating Service (Shanghai) Co. Ltd. AA Rating
AAA Rating
Morningstar SynTao Green Finance CSI ESG CCXGFI
Low Risk Rating A Rating A Rating AA- Rating
S&P CSA Score: 79; Included in 2026 Excellent Sustainable Top 20 in Greater Bay Area for “Value 100” List Outstanding ESG Value
S&P Global Sustainability Yearbook Development Practice Case Corporate Governance & Green Easy Board Communication Award
CAPCO Governance Panorama Net
Note: The above only shows a selection of our ratings and awards
10Sustainability ManagementThe Company takes “Advance technology for humanity’swell-being; Elevate environmental protection to build a betterplanet” as its corporate mission. Based on this foundation it
fulfills commitments to sustainable operation and delivers
lasting value for the economy society and the environment.The Company carries out sustainability practices in
accordance with the following four principles:
* Implement sound corporate
governance
* Advance sustainable environmental
management
* Uphold social welfare
responsibilities
* Strengthen sustainability
information disclosureAbout This About Avary Message from ESG Key Major Honors &
Integrity Management Environmental
Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Sustainability Management Structure
The Company established the ESG Development Committee in 2022 to further elevate its management capabilities in environmental social and governance (ESG) matters improve the ESG management
system and boost overall ESG governance capacity. The Committee is responsible for organizing convening and chairing ESG Development Committee meetings. Through regular and ad-hoc sessions
the Board of Directors reviews proposals submitted by the ESG Development Committee including sustainability strategies sustainability targets and performance implementation plans and
improvement initiatives. Detailed job responsibilities for all tiers of the sustainability committee are available in the Implementation Rules for the ESG Development Committee of Avary Holding
published on the Company’s official website.? Organizational Framework ? Sustainability Management StrategyThe ESG Executive Committee has been set up under the ESG Development Committee. Adhering to the principles of “strengthening corporate governance fostering sustainableIts members consist of top leaders from each business segment. This setup strengthens environmental performance fulfilling social welfare obligations and enhancing sustainability Integrityoverall coordination process oversight assessment and implementation of ESG initiatives information disclosure” the Company drives sustainability management across four pillars:
enabling efficient delivery of the Company’s sustainability objectives. Governance Product Environment and Social. Full details are set out in the Company’s
Code of Sustainable Operation Practices.Board of Safeguard Drive Innovative ResponsibilityLead in Workplace Safety R&D Innovation
Directors Excellence Quality Win-win
Build Supply Chain
1 Core Digital DevelopmentFortress Responsibility Innovation
ESG Enhance Employees
Development 5 Aspects Risk
Committee Resilience
Create
Investors Sincere
Suppliers
Circular
12 Guidelines Sustainability Value
ESG IntegrityNurturing
Executive =EPS+ESG Commitment Excelle
Committee Integrity Excellence nce Enhance
-led Regulatory Responsibility Water Excellence
Governa Integrity Authorities Ecosystem Customers Efficiency
nce
Environmental
Society
Corporate Protection & Corporate Climate and Green Product EcologicalGovernance
Working Group Working Group
Energy Culture
Conservation Working Group Benefit Stakeholders
Working Group Benefit Focus on Talent Human-centric StakeholderCultivation
Value Integration s
12About This About Avary Major Honors &
Integrity Management Environmental
Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Report Holding the Chairman Performance Recognitions
for Long-term Steady Stewardship & Green
Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Material Topic Identification and Analysis
In accordance with global sustainability standards and frameworks including SZSE Guidelines Responsible Business Alliance (RBA) rules S&P Global Corporate Sustainability Assessment (CSA)
requirements as well as the characteristics of its industry and business operations the Company conducts identification and analysis of material sustainability topics.Material Topic Analysis Process
Steps 1. Collect & organize sustainability-related topics 2. Materiality assessment of topics 3. Confirm material topics 4. Review and approval
Base on：
* Company development Distributed Discussions with
strategy and industrial stakeholder Interviews with external experts
characteristics questionnaires 920 relevant internal Reviewed and examined
* Customer ESG requirements valid questionnaires departments by the ESG Development
recovered Committee
* Stakeholder concern Internal verification
questionnaire results of completeness
* SZSE Guidelines
* International disclosure Financial
standards: GRI RBA SDGs materiality Impact materiality
* Assessment institutions: CDP Likelihood of Impact Prioritize topics based
S&P CSA MSCI occurrence magnitude on assessment results
develop topics covering Approval by the Board
Governance Environment Impact magnitude Impact scope of Director
Social and Product; compile a
list of 21 topics in total Likelihood of Confirm Material
occurrence Topics
Handling cost
13
Key ActivitiesAbout This About Avary Message from ESG Key Major Honors &
Integrity Management Environmental
Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Report Holding Recognitions
for Long-term Steady Stewardship & Green
the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
2025 Sustainability Material Topic Assessment Results
90 Aspects Material Topics Corresponding SZSE Guidance
Sustainable Supply Chain Management Resource & Circularity Topics
Air Pollution Management
80 Green Product and Innovation Management Chemical Safety Management Information and Data Security and Customer Privacy
Communication Security Protection
Employee Salary and Benefits
70 Information and Communication Security Product Quality
Operational Risk Management -
Diversity Equity and Inclusion
Contribution to the Society Operational Risk Management
60 Water Resource Management Anti-commercial Bribery and Anti-
Climate and Energy Occupational Health & Safety Integrity Operation corruption
Human Rights Protection Talent Attraction and Retention
50 Talent Training and Development Integrity Operation Compliance Management -
40 Sustainable Supply Chain
Customer Privacy and Relationship Management Management Supply Chain Security
30
Compliance Management Green Product and Innovation Management Innovation-driven
20
Biodiversity
Chemical Safety Management -
10
Product Quality Safety and Quality Products and Services
0 Customer Privacy and Data Security and Customer Privacy
8 9 10 11 12 13 14 15 16 17 18 Relationship Management Protection
Resource & Circularity Energy Usage / Circular Economy
Financial Materiality to the Company
Water Resource Management Usage of Water Resources
Impact Materiality Financial Materiality Climate and Energy Climate Change Tackling / Energy Financial & Impact Materiality Topics Topics Topics Usage
Air Pollution Management Pollutant Discharge
1. Resource & Circularity 8. Operational Risk
Biodiversity Ecosystem and Biodiversity Protection
2. Sustainable Supply Chain Management
Management 9. Occupational Health & Diversity Equity and Inclusion
3. Green Product and Safety
15. Human Rights Protection Occupational Health & Safety
Innovation Management 10. Water Resource Management 19. Customer Privacy and
16. Employee Salary and Benefits
11. Talent Attraction and Talent Attraction and Retention4. Chemical Safety Management Relationship Management
17. Air Pollution Management Employees
5. Product Quality Retention 20. Compliance Management Talent Training and
18. Contribution to the Society Development
6. Information and 12. Climate and Energy
Communication Security 13. Integrity Operation Human Rights Protection
7. Diversity Equity and 14. Talent Training and Employee Salary and Benefits
Inclusion Development
Contribution to the Society Contribution to the Society
14
Governance Product Environment Social
Materiality of Impacts on Economy Society and
EnvironmentAbout This About Avary Message from ESG Key Major Honors &
Integrity Management Environmental
Sustainability Innovation Empowers Empowering Employees Giving Back to Society
for Long-term Steady
Report Holding Stewardship & Green the Chairman Performance Recognitions Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Material Topic Impact Boundary
Affected Value Chain Entities Impact Aspect Impact Scope
Aspects Material Topics GRI Disclosures Avary
Holding Customers Suppliers
Communiti
es Environment Social
Own Products / Supply
Operations Services Chain
Integrity Operation GRI 205: Anti-CorruptionGRI 206: Anti-competitive Behavior ? ? ? ? ? ? ? ? ?
Governance Operational Risk Management Identified Under GRI 3 (Custom Topic) ? ? ? ? ? ? ? ? ?
Information and
Communication Security GRI 418: Customer Privacy ? ? ? ? ? ? ?
Green Product and Innovation
Management Identified Under GRI 3 (Custom Topic) ? ? ? ? ? ? ? ?
Product Quality Identified Under GRI 3 (Custom Topic) ? ? ? ? ? ? ?
Product Sustainable Supply Chain GRI 308:Supplier Environmental
Management Assessment ? ? ? ? ? ? ? ? ?GRI 414: Supplier Social Assessment
Chemical Safety Management Identified Under GRI 3 (Custom Topic) ? ? ? ? ? ? ?
Resource & Circularity GRI 301: Materials;GRI 306: Waste ? ? ? ? ?
Environment Water Resource Management GRI 303: Water and Effluents ? ? ? ? ?
Climate and Energy GRI 302: EnergyGRI 305: Emissions ? ? ? ? ? ? ? ?
Occupational Health & Safety GRI 403 Occupational Health and Safety ? ? ? ? ?
Talent Attraction and GRI 401: Employment
Retention GRI 402: Labor / Management ? ? ? ? ?Relations
Social Talent Training and
Development GRI 404: Training and Education ? ? ? ? ?
GRI 405: Diversity and Equal
Opportunity
Diversity Equity and Inclusion GRI 406: Non-discrimination ? ? ? ? ? ? ?
GRI 407: Freedom of Association and
Collective Bargaining
Note：Information and Communication Security encompass Customer Privacy and Relationship Management Green Product and Innovation Management encompass Intelligent Property Management Climate and Energy encompass
Greenhouse Gas Emissions and Air Pollution. 15Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
for Long-term Steady
Report Holding Recognitions Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Material Topic Management Targets & Performance – Governance Dimension
Grievance &
Material Topict Impact & Consequence Commitment 2025 Targets 2025 Performance Short-term Targets Medium-term Targets Long-term Targets (2026–2027) (2028–2030) (2031~) Action Plan Reporting Channel
* Zero reported * Zero reported whistleblowing cases
The Company provides whistleblowing from authorities * Zero whistleblowing
training on ethics compliance Prior to business cases from * 100% completion of integrity training cases notified by * Zero whistleblowing * Zero whistleblowing * Publish key integrity rules and
anti-corruption policies and cooperation the authorities * 1.80 million views on broadcast authorities cases notified by cases notified by procedures on Company and
procedures in line with the Company assesses * 100% completion platform * 100% completion of authorities authorities internal portals for anytime access
code of ethical operation to counterparts’ legality of integrity * 522 supplier exchange sessions * 100% completion of * 100% completion of * Boost suppliers’ understanding
Integrity secure governance compliance and integrity records training * 95% Sunshine Policy coverage
integrity training
* 1.80 million integrity training integrity training and recognition of integrity
Operation and prevent corruption. and signs contracts to * 1.75 million views * Awards: National Outstanding exposures on * 1.82 million exposures * 1.85 million exposures principles
Violations of laws or ethical bind partners to on broadcast Integrity Entrepreneur AAA Credit broadcast platform on broadcast platform on broadcast platform * Include integrity training in
principles will harm comply with our platform Enterprise 2024 National Model * 350 supplier * 400 supplier exchange * 450 supplier exchange employee performance appraisal
stakeholder interests and ethical operation * 330 supplier Enterprise for Integrity Operation exchange sessions sessions sessions * Formulate professional SOPs to
damage corporate brand policies. exchange sessions (issued by China Enterprise Reform * 95% Sunshine Policy * 95% Sunshine Policy ensure effective whistleblowing
reputation. * 92% Sunshine and Development Research Society)
* 95% Sunshine Policy
coverage coverage coverage and incentive systems
Policy coverage * Passed the first surveillance audit of ISO 37301
* Reduce medium- * Fully grasp all risk
The Company establishes a risk items to 3 out
risk management framework * Maintain 5 of 14 major risk * Reduce medium-risk * Maintain 3 medium-
categories via
for early identification medium-risk items factors * Maintain 5 medium-risk items among items to 3 out of 14 risk items among 14
identification
* Relevant staff 14 major risk factors major risk factors major risk factors assessment control accurate measurement among 14 major monitoring and Submit
effective monitoring and risk factors complete 5600 * Rolling overall risk self-assessment * Relevant staff * Relevant staff communication; * Maintain 5 medium-risk items
Operational Risk grievances via rigorous control amid internal * Rolling overall hours of risk maintained; financial losses capped complete 5800 complete 6000 hours among 14 major risk factors
Management and external changes to sustain risk self- management within 3% hours of risk of risk management
Sustain daily rolling * Maintain rolling overall risk self- the Company’s
stable business performance. assessment training * Total 44616 hours of risk management training training
management with assessment financial losses public email:
Inadequate response and maintained * Rolling overall management training; first Risk * Maintain rolling * Rolling overall risk
PDCA cycles capped at 3% avary@avaryho
follow-up for operational risks financial losses risk self- Management Master Lectures held 3 overall risk self- self-assessment
* Continuously mitigate lding.com
may trigger operational losses capped within 3% assessment times a year assessment financial maintained; financial
risk probability and
amid crises. maintained; losses capped at 3% losses capped at 3%.impact implement
financial losses robust risk management
capped within 3% measures
* Launched unified identity * Integrate SOC with AI * Fully implement ISO 27001 Increased reliance on networks
raises risks of malicious Advance information authentication platform
for proactive alerting standard; launch equipment self-
cyberattacks system security management * Built security operation center for alert * Deploy abnormal
consolidated reporting * Build intelligent audit via Information Security
breakdown and service via coordinated * Deploy unified analysis and incident response network traffic
and joint defense with cybersecurity operation Committee to comply with SEMI
disruption. Automated administrative and identity * Deployed website traffic cleaning to detection
external threat center to unify security E187 (OS support network
manufacturing and control technical measures authentication filter and block perimeter traffic * Strengthen endpoint
intelligence centers information governance security endpoint protection
Information and
systems operate in complex optimize security team mechanism * Introduced third-party enterprise risk security defense
* Upgrade network * Establish supplier security monitoring)
Communication environments bringing functions obtain * Deploy website assessment to enhance external service * Roll out enhanced
threat detection & cybersecurity * Enhance endpoint protection with
international traffic cleaning security perimeter application response and OA / OT management new endpoint management Security tougher information security compliance and enterprise risk * Unified upgrade of web applications security protection endpoint protection framework for supply software for PC and software asset challenges. The Company must mechanisms chain safety governance
mitigate data leakage risks certifications assessment to HTTPS for encrypted data * Upgrade intrusion safeguard client data services transmission enhancing data prevention and * Develop and deploy * Deploy zero-trust * Deploy WAF for perimeter protect confidential
information retain client trust and boost international transmission security detection
security governance network monitoring and application security reinforce
order volume. * Established digital cybersecurity audit frameworks management authentication and input validation and strengthen cybersecurity. platform * Adopt cloud security * Upgrade IPS to improve detection posture management rate of emerging cyber threats
16About This About Avary Message from ESG Key Major Honors &
Integrity Management Environmental
Sustainability Innovation Empowers Empowering Employees Giving Back to Society
for Long-term Steady
Report Holding Stewardship & Green the Chairman Performance Recognitions Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Material Topic Management Targets & Performance – Product Dimension
Short-term Targets Medium-term Targets Long-term Grievance & Material Topict Impact & Consequence Commitment 2025 Targets 2025 Performance (2026–2027) (2028–2030) Targets (2031~) Action Plan Reporting Channel
Focus on technological
innovation and quality. Drive growth via innovation; develop green smart * Completed 62 high-Consolidate innovation * 50 new high- * Build OneAvary framework to develop
platforms promote industry- manufacturing and
* Accumulate 50 tech projects tech projects innovative technologies
university-research intellectual property
new high-tech * 165 simulation projects * 50 new high-tech * 50 new high-tech
projects (target: 65) projects annually projects annually annually * Launch shared innovation platform to
Submit
Product and portfolios build high- grievances via
Innovation collaboration and cultivate efficiency low-carbon * Simulation projects * 9 new green * 10% growth in * 10% growth in
* 10% growth in connect the Company customers and
R&D talent to sustain core up 10% technology patent simulation projects simulation projects simulation suppliers for resource sharing and tripartite
the Company’s
public email:
Management competitiveness and long-term production systems advance technological breakthroughs * Green technology applications (140 * 10% growth in green * 10% growth in green
projects cooperation avary@avaryhol
growth. Adapt to future pursue sustainable patent filings up cumulative); 2 newly tech patent filings tech patent filings
* 10% growth in * Roll out process innovation initiatives to ding.com
product trends and boost development and carbon 10% granted patents in 2025
green tech upgrade efficiency of processes
market competitiveness of PCB (86 cumulative) patent filings technologies materials and equipment
products. neutrality.The Company prioritizes * Set review benchmarks and segmented
quality with the strategy satisfaction targets for quality
Quality First Make AVARY a * Average (environmental compliance included)
Benchmark of High Quality Establish quality policy and * Average customer * Average customer customer delivery engineering capability service and and policy Quality-oriented targets obtain third-party satisfaction score: * Average customer * Average customer satisfaction cost; continuously rectify underperformance Submit feedback
Product Quality Customer-centric Full Staff product certifications meet 93.5
satisfaction score: 93.4
* 97.6% satisfaction rate satisfaction score: 93.5 satisfaction score: 94.0 score: 95.0 * Prioritize improvement on customer via customer Participation Innovation- customer specifications and * 97.0% satisfaction * 98.0% satisfaction rate * 98.5% satisfaction rate * 99.0% complaints and suggestions until full email or official
driven Continuous safety compliance standards rate (score ≥80 as (score ≥80 as satisfied threshold) (score ≥80 as satisfied) (score ≥80 as satisfied) satisfaction satisfaction websiteImprovement Win-win Future for product development. satisfied threshold) rate (score ≥80 * Benchmark competitors’ strengths to
to deliver high-quality goods as satisfied) optimize satisfaction performance
and strengthen competitive * Adopt digital satisfaction survey system for
edges. real-time feedback monitoring
Adhere to the Company’s * Select green supply chain partners and host
Improving suppliers’ green Seven Green Principles. seminars to lift industry environmental
performance elevates corporate Source high-quality eco- performance
social responsibility influence. friendly raw materials with * Audited 235 suppliers * Audited 275 suppliers * Audited 280 suppliers * Audited 285 suppliers
* Audited 290
suppliers * Conduct on-site audits on high-risk suppliers
Submit feedback
Sustainable Supply Lack of relevant management supplier support; explore * 100% conflict-free * 100% conflict-free * 100% conflict-free * 100% conflict-free per audit procedures to ensure full
via supplier /
Chain Management will fail global and client alternative materials or minerals across minerals across supply minerals in supply minerals in supply
* 100% conflict- compliance customer email
standards damage brand imager educe consumption; supply chain chain chain chain
free minerals
in supply chain * Draw up annual supplier training plans and
or official
cause customer churn and cooperate with suppliers and conduct education & training courses website
financial losses. track emerging technical * Perform OECD-aligned conflict mineral due
trends. diligence for suppliers
* 100% products comply
Protect the Company’s assets * 100% of products with EU RoHS
and employee lives prevent compliant with IEC62474 EU REACH* 100% of products * 100% of products Proper control lowers sudden incidents and enable environmental EU POPs California compliant with compliant with Submit environmental and health risks Proposition 65 and environmental environmental 100% of products grievances via
Chemical Safety from chemical exposure; robust rapid effective emergency regulations and other applicable laws regulations and client regulations and client compliant with Verify environmental compliance of supplier
Management safety management lifts response. All sites conduct client requirements environmental materials and conduct internal testing &
the Company’s
operational efficiency and drills for chemical spills * Phase out ODS;
& customer specs requirements requirements
* Procurement of ODC * Phase out ODS full * Phase out ODS full regulations and monitoring per EPI12
public email:
market competitiveness. under the prevention & self- full Freon phase- refrigerant (Freon) has Freon phase-out by Freon phase-out by client requirements
avary@avaryhol
rescue principle based on out by 2028 ding.com
actual production conditions. been banned by the 2028 2028end of the reporting
period
17Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
for Long-term Steady
Report Holding Stewardship & Green the Chairman Performance Recognitions Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Material Topic Management Targets & Performance – Environment Dimension
Material Topict Impact & Commitment 2025 Targets 2025 Performance Short-term Targets Medium-term Targets Long-term Targets
Grievance &
Consequence (2026–2027) (2028–2030) (2031~) Action Plan Reporting Channel
The Company follows the Manage waste under * Establish an environmental expert
3R principles for waste reduction recycling and team to develop innovative
management to optimize harmless treatment to recycling technologies and lift
raw material consumption minimize hazards. resource recovery efficiency
Waste & Circular cut waste at source and Optimize design Maintain waste recycling Waste recycling rate Maintain waste recycling Maintain waste recycling Maintain waste recycling * Launch full-lifecycle waste
Recycling boost recycling rates. PCB procurement and rate above 90% (compliant management covering source sorting manufacturing generates production with green with UL2799) reached 94% rate above 90% rate above 90% rate above 90% disposal record-keeping and
hazardous industrial waste; innovation green sourcing tracking
inadequate control will and green manufacturing * Conduct annual regular audits of
severely harm the to maximize raw material general and hazardous waste
environment. efficiency. processors
* Roll out multiple wastewater reuse
* Wastewater reuse rate and process water-saving initiatives Submit
Technical innovation can ≥50% * Wastewater reuse rate: * Wastewater reuse rate * Wastewater reuse rate * Wastewater reuse rate * Participate in CDP Water Security grievances via
lift wastewater reuse rates Boost wastewater * Plant-wide water reuse 50.4% ≥50% ≥50% ≥50% questionnaire to strengthen water the Company’s
Water Resource water efficiency and recycling and reclaimed rate ≥41% * Plant-wide water reuse * Plant-wide water reuse * Plant-wide water reuse * Plant-wide water reuse stewardship public email: a-
Management operational resilience. water adoption to ease * Discharged wastewater rate: 42.3% rate ≥41% rate ≥41% rate ≥41% * On-site professional water quality h-PCB production consumes water demand pressure. quality surpasses * Discharged wastewater * Discharged wastewater * Discharged wastewater * Discharged wastewater labs at each site’s wastewater m@avaryholdimassive water; poor regulatory benchmarks quality surpasses quality surpasses quality surpasses quality surpasses treatment plant for daily testing ng.com
management strains local (Compliant with AWS regulatory benchmarks regulatory benchmarks regulatory benchmarks regulatory benchmarks * Install online water quality & flow
water supplies. framework) monitors at wastewater discharge
outlets of major production plants
* Conduct annual GHG inventory to
Efforts aligned with 1.5℃ Build a Model Production * Cut Scope 1 & 2 GHG * Scope 1 & 2 GHG verify carbon emissions of invested
pathway and net-zero Base complying with New emission intensity by emission intensity * Cut Scope 1 & 2 GHG emission intensity by over subsidiaries
transition unlock business Eco-Friendly PCB over 40% (2013 reduced by 80% (2013 40% (2013 baseline) * Steadily advance * Expand solar PV installation Climate Action opportunities strengthen Standards striving to be a baseline) baseline) * Renewable energy proportion ≥15% toward the 2050 net- capacity and explore additional
climate risk governance sustainability promoter * Renewable energy * Procured 1.282 billion * Achieve 32% carbon reduction via renewables by zero goal renewable energy opportunities
and adaptive resilience. and benchmark. share ≥15% kWh of renewable 2030 target an ambitious 52% reduction * Adopt internal carbon pricing for power decision-making and benefit
evaluation of energy-saving projects
18Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Material Topic Management Targets & Performance – Social Dimension
Impact & Short-term Targets Medium-term Targets Long-term Targets Grievance & Material Topict Consequence Commitment 2025 Targets 2025 Performance (2026–2027) (2028–2030) (2031~) Action Plan Reporting Channel
* Comply with applicable
Operations may cause occupational health & safety Submit
occupational injuries laws to prevent work-related
* Fatality rate from * Fatality rate from * Fatality rate from * Fatality rate from * Fatality rate from * Arrange pre-job on-the-job and post- grievances via
Occupational Health illnesses or safety injuries and occupational
occupational injuries: occupational
0 injuries: 0.0082 occupational injuries: 0 occupational injuries: 0 occupational injuries: 0
separation occupational physical
examinations for staff in high-risk the Company’s
& Safety incidents harming staff diseases * Fatality rate from * Fatality rate from * Fatality rate from * Fatality rate from * Fatality rate from public email: a-
health and disrupting * Set quantified OHS targets occupational diseases: occupational occupational diseases: occupational diseases: occupational diseases:
positions
* Deliver regular occupational safety h-
operation and productivity. and formal management 0 0. 0systems to pursue zero 0 diseases: 0 and health training
m@avaryholdin
g.com
incidents
* Integrate industry-academia- * Launch industry-university
research resources to build a cooperation programs to build talent
PCB industry platform for pipeline and support student
Labor shortages may delay talent recruitment and development
Talent Attraction and or disrupt supply chains cultivation to support * Key talent retention * Key talent * Key talent retention * Key talent retention * Key talent retention * Offer profit sharing bonuses stock
Retention and negatively impact operational goals rate: 96% retention rate: rate: 97% rate: 97%. rate: 98% incentives and group medical
business operations. * Leverage sound corporate 97.9% insurance for key talents and their
culture and competitive families
remuneration & benefits to * Provide comprehensive training
attract and retain key staff courses to upgrade employee capabilities
Employee
* Identify and develop high- service center
Proactive self-learning and potential employees deploy * Customize personal learning plans suggestion
on-the-job training drive diversified learning resources * Average annual and support flexible learning options boxes digital
Talent Training and business growth; employee and self-learning systems for * Average annual training hours per * Average annual * Average annual * Average annual * Promote Dingsheng E-learning grievance
Development development positively on-demand study anytime training hours per training hours per training hours per training hours per platform design role-based mailbox care
correlates with corporate * Boost organizational learning employee ≥62 hours
employee: 92.5
hours employee ≥62 hours employee ≥65 hours employee ≥75 hours development programs to boost hotline
expansion. capacity and individual learning efficiency and self-study employee growth to build a learning awareness relations.enterprise
Foster an inclusive equitable
Diverse cultures fuel workplace; value female
innovation and employees and minority groups * Allocate resources to empower
Diversity Equity and competitiveness break respect personal aspirations * Female employee * Female employee * Female employee ratio * Female employee ratio * Female employee ratio diverse talent amid global expansion
Inclusion geographical barriers recruit diverse talent support ratio>30% ratio: 34% >31% >31% >32% * Roll out exclusive events and benefits
accelerate globalization long-term retention and for female staff including childcare
and lift corporate strength. empower staff to create value for subsidies for multiple children
the company and society
19Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Material Topic and Corporate Risk Management
Aspect Material Topic Risk Factor Risk Level Mitigation Measures
Integrity Operation Damage to brand image and loss of customers & orders due to integrity violations. Low Formulate integrity policies and regulations; prohibit acceptance of improper benefits and dishonest / illegal conducts.Governance Operational Risk Management Impacts on operation from internal & external changes: price Low Identify external risks & opportunities via PESTLE analysis; assess internal strengths & weaknesses with VRIO framework for volatility technological iteration macroeconomic shifts. SWOT analysis.Information and Malicious cyberattacks against the internal network environment resulting in collapse or disruption of automated production & control Low Optimize cybersecurity organization; deploy primary & backup data centers; conduct annual ISO 27001 recertification to comply Communication Security systems or leakage of confidential data. with international standards and protect client data.Green Product and Innovation Failure to follow market trends and deliver customer-demanded
Management products. Low Monitor market shifts; review monthly progress of new clients products and R&D to track and align technology roadmap.Product Quality Non-compliance of products materials manufacturing and packaging Implement source control in-process monitoring and MRB review; audit factory quality systems strengthen staff training material with quality standards. Low planning and equipment maintenance.Product Sustainable Supply Chain Supply chain imbalance from geopolitical and business environment Track market trends; regularly audit suppliers’ capacity locations and geopolitical risks; prepare alternatives (supplier switching
Management changes. Medium / Low logistics rerouting); increase local procurement ratio.Chemical Safety Management Higher exposure risks to environment & health from poor chemical Low Prioritize non-toxic / low-toxic alternatives; risk assessment for irreplaceable toxic chemicals; strict SOPs for loading storage handling; fines and reputational damage from regulatory breaches. usage and disposal; supplier qualification checks; filing & approval for precursor chemicals.Resource & Circularity Severe environmental harm from improper hazardous waste disposal. Medium / Low Classify label and store waste per regulations; entrust licensed vendors for recycling & harmless disposal; install full monitoring at waste storage areas.Environment Water Resource Management Increased water stress from ineffective water governance. Low Deploy software to forecast regional water supply; build backup water sources and emergency tanks for minimum 24-hour production; prepare water transport backup plans; boost wastewater & reclaimed water reuse.Climate and Energy Rising operating costs from insufficient resilience to extreme weather Medium / Low Set carbon emission and renewable energy reduction targets; collaborate with suppliers on energy-saving and decarbonization and long-term climate changes. projects.Occupational Health & Safety Operational losses from work injuries fire explosion chemical spills Low Establish safety management body safety policies and regulatory compliance; conduct risk assessment & hazard rectification; set and other hazards. up OHS management team to secure safe workplace.Talent Training and Business setbacks caused by stagnant employee growth (employee Low Launch Dingsheng E-learning online platform; provide diversified learning channels to boost efficiency and self-learning
Social Development development correlates positively with corporate growth). awareness.Talent Attraction and Poor recruitment and retention due to uncompetitive compensation & Low Enhance care for key talents and spouses; offer profit sharing bonuses equity incentives and group medical insurance; provide Retention benefits. physical check-ups for regular employees with ≥1 year tenure.Diversity Equity and Failed labor management or inadequate human rights implementation Medium / Low Set up SER (Social & Environmental Responsibility) Committee to improve employee welfare; comply with RBA Code of Inclusion at workplace. Conduct and ILO core conventions; regular human rights due diligence to safeguard staff rights.
20Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
for Long-term Steady
Report Holding the Chairman Performance Recognitions
Stewardship & Green
Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Stakeholder Engagement
Via regular meetings of the ESG Development Committee Avary Holding identifies stakeholders with close business ties and material economic environmental and social impacts on the Company.Concerns raised by each stakeholder group are integrated into corporate operational decisions to achieve win-win collaboration with all stakeholders.Stakeholder Concerns Communication Channels & Frequency
Stakeholder Regulatory Authorities Shareholders Suppliers Customers Employees Local Communities
* Integrity operation
* Integrity operation * Integrity operation * Green product and innovation * Chemical safety management
* Integrity operation * Operational risk management * Information and communication management * Occupational health & safety * Resource & circularity
* Operational risk management * Green product and innovation security * Product quality * Talent attraction and retention * Water resource management
Key Concerns * Resource & circularity management * Sustainable supply chain management * Information and communication * Talent training and development * Diversity equity and inclusion
* Regulatory compliance * Customer privacy and relationship * Diversity equity and inclusion security * Human rights protection
management * Air pollution management* Social engagement * Customer privacy and relationship * Customer privacy and relationship * Employee salary and benefits
* Talent attraction and retention management management * Social engagement
* Climate and energy
* Regular disclosure reports (regular) * Occupational hazard testing (annually)* Compliance training (ad-hoc) * Fire evacuation drill (semi-annually) * Energy & environmental protection Ad-hoc corporate announcements (ad- Customer satisfaction survey (annual) month (annually)
* Governance assessment (annually) * *hoc)
* Information disclosure (regular / ad- * Sunshine policy promotion (quarterly) *
Customer communication (ad-hoc / * Safety proficiency assessment * Environmental promotion events (ad-
* Monthly revenue release (monthly) real-time) (quarterly) hoc)hoc)
Communicati * Supply chain seminar (annually)Annual general meeting (regular) Quality improvement proposals * Occupational physical examination Routine ambient water monitoring
* Independent ambient water * * ** Supplier training (ad-hoc) (monthly)
on Channels monitoring around sites (quarterly) * Extraordinary general meeting (ad-hoc) (annual) around sites (regular)* Supplier reporting channel (real-time)
* Release of environmental data & * Earnings briefing (regular) *
ESG disclosure (regular) * Safety promotion activities (ad-hoc) * Website mailbox (real-time)
& Frequency * Employee training (ad-hoc)
audit results on official website * Supplier exchange events (ad-hoc)* Institutional investor meetings (ad-hoc) * ESG dialogue (real-time) * Charity events (ad-hoc)
(real-time) * Supplier audit (annually)
* Reply via investor interaction platform * Customer visits (ad-hoc)
* Access to Dingsheng E-learning (real-
time) * Donations via Avary Charity
* Forums seminars & industry events (real-time) * Product seminars (ad-hoc) Foundation (ad-hoc)
(ad-hoc) * Suggestion boxes (real-time)
* Investor hotline (real-time) * “Six Assists” activities (bimonthly)* “Six love” activities (bimonthly)
* 1 general shareholder meeting
* 6 earnings briefings * 275 suppliers audited * 98 fire evacuation drills * 290000 participations in energy &
* 25 total training hours for directors environmental month
supervisors and management on * Hundreds of investor site visits * 100% suppliers signed commitment covering ethics human rights and * Customer satisfaction score: 93.4
* 181916 participations in safety
Phase compliance * 68 broker strategy conferences proficiency tests * RMB 4.28 million spent on charity
attended environment * 156767 engineering innovation & * 27745 courses available on Dingsheng activities & donations
Achievements * A-level disclosure rating for six * Green supply chain seminar with 669 improvement projectsconsecutive years * Over 20 reverse roadshows for E-learning * 98 “Six Assists” Community Support
(Current FY) attendees from 252 suppliers * Certified ISO 37301:2021 charity events with 19317 participants* 77 total disclosure announcements institutions * 522 supplier exchange sessions Compliance Management System
* Average annual training hours per
issued * 100% reply rate on investor employee: 92.5 * 1305 volunteer contributors totaling
interaction platform * 95% Sunshine Policy coverage * 4827 “Six love” activities 4388 service hours
* Over 1000 investor hotline inquiries
21This chapter addresses the double materiality topics:
* Integrity Operation * Operational Risk Management * Information and Communication Security
The Company has established a standardized robust governance and decision-making system with clear division of
responsibilities. The Board of Directors and specialized committees play core roles in major decision-making operation
management supervision and checks and balances to ensure compliant operation and sustainable development.A Strategy & Risk Management Committee is set up to research long-term development strategies advise on major investment
Governance decisions and coordinate the development of risk management systems delivering professional support for strategy execution
and risk control. An Integrity Management Task Force conducts regular integrity and compliance initiatives to consolidate
bottom lines of clean operation and internal control compliance. A Information Security Committee holds periodic meetings to
formulate review and optimize cybersecurity management targets policies and procedures safeguarding corporate
information and data security.The Company adheres to the overall business strategy of “stabilizing growth adjusting structure controlling risks and boostinginnovation”. Based on steady operation the Company continuously optimizes business mix and product portfolio to drive
steady growth in revenue and profits. Structural upgrading is realized by focusing on high-end products optimizing product
Strategy mix and strengthening core competitiveness. The Company bolsters risk management and internal control systems strictly
abides by compliance and operational safety bottom lines to sustain long-term stable operation. Driven by technological
innovation and R&D investment the Company keeps upgrading products manufacturing processes and smart manufacturing
strengthens core technological moat and sustainability capacity and delivers high-quality sustainable and stable development.Indicator 2025 Performance
Integrity management training coverage rate 100%
Anti-corruption and integrity training coverage rate for
Indicator and management 100%
Performance Risk management training completion rate 100%
Major cybersecurity incidents 0
Major illegal and non-compliance cases received 0
Note: For details please refer to Material Topic Management Targets & Performance – Governance D2i2mension
Sustainable Governance & StrategiesMajor Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Corporate Governance Board Operations
Upholding the philosophy of sustainable development the Company deeply integrates ESG targets
into its governance framework and builds a decision-making system with clear responsibilities and As the highest governing body the Board of Directors exercises core decision-making power in formulating reviewing and
effective checks and balances. The Company rigorously complies with laws regulations and updating corporate mission development strategies and sustainable development targets. Board members are nominated by the
regulatory documents to standardize business operations and continuously improve governance Nomination Committee reviewed by the Board and approved by the General Meeting of Shareholders. The Board consists of 9
structure. The General Meeting of Shareholders Board of Directors and each specialized committee directors including 3 independent directors. Mr. Shen Qingfang serves as Chairman responsible for convening board meetings
fulfill core functions in major decision-making operational management supervision and balance and supervising the implementation of board resolutions. The Board operates in strict accordance with the Articles of Association
ensuring compliant and stable business performance. For economic value created and government and Rules of Procedure for the Board of Directors holding no fewer than 4 meetings each year. During the reporting period the
subsidies please refer to Section 10 Financial Statements of the Company’s 2025 Annual Report. Board reviewed and approved key documents including the 2024 Board of Directors Work Report 2024 Sustainability Report and
2024 Annual Report. The top management leader is the Chief Executive Officer who also serves as General Manager in charge of
business expansion and policy execution across the Company.Governance Structure
Diversified & Professional Board Composition
The Board of Directors has set up Strategy & Risk Management committee Audit committee
Remuneration & Evaluation committee Nomination committee and ESG Development committee. There are currently 2 female directors on the Board. Adhering to the recruitment principles of diversity and professionalism for
By reinforcing diversified professional expertise and full-range supervision mechanisms the Board of board members the Nomination Committee comprehensively evaluates candidates by gender nationality professional
Directors ensures scientific decision-making and adheres to long-term value development. background and other criteria during nomination. Professionals specializing in corporate governance electronics industry law
finance and other fields are prioritized as director candidates. This continuously elevates corporate governance standards and
* Organization Chart & Board Profiles delivers professional valuable decision-making support for industrial expansion and strategic planning.General Meeting of Age group Expertise Professional Background
Shareholders Name Gender Position Over 50 Under 50 Industry Legal/Finance Industry Legal/Finance
Strategy & Risk Management
Committee Shen Qingfang Male Chairman √ √ √ √ √
You Zhehong Male Director √ √ √
Audit Committee Board of Directors Huang
Chongxing Male Director √ √ √
Lin Yihong Male Director √ √ √
Remuneration & Evaluation
Committee Ke Chengen Male Director √ √ √
Chief Executive Officer Miao Chunna Female Employee Representative Director √ √ √
Nomination Committee
Digital Transformation Zhang Milin Female Independent Director √ √ √
Committee Zhang Jianjun Male Independent Director √ √ √
ESG Development Committee Senior Management Wei Xuezhe Male Independent Director √ √ √
23About This About Avary Message from ESG Key Major Honors &
Integrity Management Environmental
Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Board Performance and Remuneration Director Training
In 2025 the Board of Directors and all specialized committees performed duties diligently and in full compliance Against the backdrop of deepened capital market reforms and upgraded regulatory policies the Company arranges targeted
with laws and regulations. They continuously optimized corporate governance systems strengthened internal training sessions hosted by the China Association for Public Companies and regulatory authorities covering corporate
control and risk management and ensured standardized operation and sustainable growth of the Company. During governance and sustainable development aiming to improve the Board’s capacity for scientific decision-making and
the reporting period the Board convened 9 meetings; the Independent Directors Committee held 3 meetings; the standardized duty performance. Such training helps directors grasp the latest legal requirements and industry trends and
Audit Committee held 6 meetings; the Remuneration & Evaluation Committee held 2 meetings; the Strategy & reinforce awareness of compliant operation and sustainable development. In 2025 directors accumulated a total of 25
Risk Management Committee held 6 meetings; the Nomination Committee held 2 meetings. For full details of training hours.Board operations please refer to the 2025 Board Work Report and Section 4 Corporate Governance of the 2025
Annual Report.Training Topic Training Hours (Per Person)
To improve the long-term incentive and restraint system and closely align the interests of core management Analysis of Material Sustainable Development Topics & ESG Data 5
technical backbones with those of the Company and shareholders the Company has formulated a special Management
performance remuneration management system for management and core technical staff. Combining profit linkage Public Company Public Opinion Management 5
tiered decision-making and performance appraisal the system realizes long-term incentive alignment between
management and shareholder value stabilizes core talent teams and boosts drivers for sustainable development. Study on Securities Laws Regulations and Rules 6
Details on directors’ remuneration can be found under Remuneration of Directors Supervisors and Senior
Management in Section 4 Corporate Governance of the 2025 Annual Report. Study on Typical Non-compliance Cases of Listed Companies 9
Protection of Shareholders’ Rights and Interests * 2025 Dividend Proposal
The Company attaches great importance to shareholder returns. Since its IPO in 2018 cumulative Based on distributable profits of the parent company the Company proposes to distribute a cash dividend of
dividends totaled RMB 9.7 billion as of 2024. RMB 10.00 (tax inclusive) for every 10 shares to all shareholders. The calculation base is the total share
* Annual Dividend Distribution Since Listing capital of 2318051016 shares as of December 31 2025 minus certain restricted shares under the 2021 and
2024 Restricted Stock Incentive Plans to be repurchased and cancelled. No bonus shares will be issued and
25 80% no capital reserve will be converted into share capital.
2064%60%
1542%40%41%35%32%
1035%
40%
520%
00%
2018201920202021202220232024
Cash Dividend Amount (RMB
现0.1金 Bi分llio红n) 金额（亿元） D分iv红iden率d Payout Ratio
24About This About Avary Message from ESG Key Major Honors &
Integrity Management Environmental
Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Investor Relations Management Tax Governance
The Company has formulated the Measures for Investor Relations Management to establish a multi-tiered and regular The Company strictly abides by tax laws regulations and policies in all operating regions establishes and fully
mechanism for investor communication and value communication. The Company maintains efficient and sound implements internal tax management systems and adheres to tax governance principles of tax payment in accordance
interactions with the capital market through multiple channels including the Shenzhen Stock Exchange’s investor with law compliant operation and controllable risks.interaction platform investor hotline performance briefings investor open days on-site due diligence factory tours The Company has set up a clear tax management structure. The Chief Financial Officer bears ultimate responsibility
and broker strategy conferences. for tax management. The Chief Accountant oversees daily tax administration and a competent experienced tax team is
During communications the Company objectively and comprehensively briefs investors on operating results deployed to fulfill tax liabilities. Tax risk management has been integrated into the Enterprise Risk Management (ERM)
development strategies technology layout and risk management. The Company carefully collects investors’ reasonable system. The Company keeps refining mechanisms for tax risk identification assessment and control to safeguard tax
opinions and suggestions and promptly feeds them back to management. This deepens the capital market’s compliance and operational security.understanding and recognition of the Company’s long-term value and fosters a stable mutually trustworthy and win- For detailed tax payment data and relevant accounting treatments please refer to the 2025 Annual Report. Full details
win relationship between the Company shareholders and investors. of tax risk management are available in the Risk Management chapter of this report.Information Disclosure
In strict compliance with the Company Law of the People’s Republic of China Securities Law of the People’s Republic ▓ Corporate Commitments
of China Stock Listing Rules of the Shenzhen Stock Exchange Guidelines for the Standard Operation of Companies
Listed on the Shenzhen Stock Exchange and other applicable laws regulations and regulatory requirements the 1. File tax returns and pay taxes in a timely manner in compliance with local tax laws of all operating jurisdictions.Company adheres to the principles of truthfulness accuracy completeness timeliness and fairness in information 2. Conduct tax risk assessment and evaluate tax impacts when making material corporate decisions or facing revisions
disclosure. The Company faithfully fulfills disclosure obligations to ensure all investors obtain corporate information to local tax legislation.simultaneously and equally. 3. Comply with applicable laws and rules for tax disclosure.The Company continuously optimizes internal control procedures for information disclosure strengthens review and 4. Do not utilize tax havens or implement tax arrangements for tax avoidance purposes.quality control and improves disclosure standardization and transparency. Beyond mandatory disclosures the 5. Build a relationship of mutual trust and respect with tax authorities communicate and clarify tax matters timely and
Company discloses monthly operating revenue data to help investors track business performance timely and accurately. maintain harmonious interactions.High-standard information disclosure underpins the Company’s long-term stable development. 6. Support government tax incentives designed to boost corporate innovation and economic growth.Information Disclosure Rating for
Six Consecutive Years
A Grade Effective Tax Rate Analysis
The Company’s primary operations are based in Chinese Total Coprorate Income Tax Paid in 2025
Participation in Broker Strategy mainland where the statutory corporate income tax rate RMB 0.57 Billion
Conferences stands at 25%. The effective tax rate for 2025 was 13%
68 Sessions mainly attributable to the preferential 15% tax rate for 13% 87%
Reply Rate on Interaction Easy high-tech enterprises and additional tax deductions for
Proportion of Proportion of Chinese
Platform R&D expenses. Other Regions
100 % Mainland
25Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Integrity Operation ▓ Reported Cases & Material Violations Received by Regulators During the Reporting Period
Since its establishment the Company has adhered to the core principle of integrity in operation and formulated a full set of
policies and rules governing integrity management. Acceptance of improper benefits and any acts violating integrity principles Scope Case Count
or laws are strictly prohibited. The Company closely tracks updates to external regulatory standards and regularly reviews Corruption and Bribery 0
revises and optimizes internal policies based on internal supervision outcomes to guarantee effective implementation of integrity Discrimination and Harassment 0
management measures. Customer Data Breach 0
▓ Relevant Integrity Management Policies： Conflict of Interest 0
Money Laundering and Insider Trading 0
* Code of Corporate Governance * Administration Rules for Registration of Persons with * Code of Integrity Operation
Practices Access to Inside Information * Operational Procedures and Behavioral Training & Promotion
* Code of Sustainable Development * Operational Procedures for Preventing Insider Guidelines for Integrity Operation During the reporting period multi-level training centered on integrity was rolled out across
Practices Trading * Supplier Code of Conduct onboarding quality control technical skill upgrading and management talent development. Special
seminars covering integrity regulations ethical codes internal information management internal
* Code of Ethical Conduct * Measures for Anti-Corruption and Malpractice
controls material information and insider trading were also arranged. Total training hours exceeded
Rectification
152000 with over 0.099 million participant attendances. Educational content was continuously
displayed on lightboxes in staff living quarters reaching an estimated annual viewership of over 1.8
Responsible Unit for Integrity Promotion million person-times.The Company has set up an Integrity Management Task Force jointly formed by the Chairman’s Office Human Resources Employee behavioral standards are stipulated in the Operational Procedures and Behavioral
Legal Affairs and other core departments. The task force submits annual reports to the Board of Directors summarizing progress Guidelines for Integrity Operation and Employee Handbook covering corporate business ethics
and outcomes of integrity initiatives. Auditors conduct routine supervision of implementation. Any irregularities or reported regulatory compliance and workplace conduct to guide daily work for all staff. Employment contracts
complaints are addressed promptly with resolution results and improvement plans reported to the Board afterwards. contain binding ethical clauses for both employer and employee addressing intellectual property
Implementation & Enforcement ownership indemnification against infringement confidentiality external communication protocols
data security integrity and self-discipline non-compete obligations and conflict-of-interest recusal.Key integrity policies rules and operational procedures are published on the Company’s website for unrestricted review and This framework ensures all employees fully understand and abide by professional ethical standards.oversight by internal staff and external stakeholders. Standard commercial contracts with business partners include clauses
requiring counterparties to comply with the Company’s integrity policies. All Board members and senior management have
signed written undertakings to fully uphold integrity requirements. Communication on Anti-Corruption and Anti-Competition Policies
▓ Performance During the Reporting Period & Procedures
* All relevant employees completed training on integrity anti-corruption and confidentiality with a 100% pass rate in
During the reporting period 9 senior executives completed anti-corruption training achieving a 100%
assessments.coverage rate. Around 1208 key suppliers signed integrity commitment documents representing a
* Major suppliers received briefings on the Company’s transparent business policy and signed commitment letters.coverage rate of approximately 95%. In 2025 no material corruption risks were identified and there
* No material illegal incidents occurred.were no legal lawsuits involving unfair competition antitrust or monopolistic acts at home and abroad.
26Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
for Long-term Steady
Report Holding Stewardship & Green the Chairman Performance Recognitions Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Counterparty Assessment Reporting Channels Incentive and Disciplinary Mechanisms
Prior to establishing business ties with agents suppliers customers and other trading partners the Company conducts The Company implements systems for reporting rewards disciplinary actions and appeals for violations
rigorous legitimacy vetting to avoid cooperation with entities with poor integrity records. Adhering to a transparent policy of integrity policies. Internal and external reporting channels are available at all global operating sites
of fairness integrity honest cooperation and mutual benefit the Company communicates this principle clearly to all including suggestion boxes dedicated email and an online reporting portal encouraging internal and
partners. A list of strictly prohibited practices is posted on the official website to demonstrate the Company’s firm stance external parties to report illegal and unethical conduct. Clear disciplinary measures are defined; violations
and determination on integrity operation. by relevant personnel are disclosed timely via internal platforms and public information channels and an
appeal system safeguards the rights of involved parties.Conflict of Interest Prevention
▓ Corporate Reporting Channels
The Code of Ethical Conduct stipulates that all employees shall conduct business objectively and efficiently and are
prohibited from seeking improper gains by taking advantage of their positions. The Code of Integrity Operation and the Email: avary@avaryholding.com
Operational Procedures and Behavioral Guidelines for Integrity Operation set out detailed recusal rules for stakeholders Online Reporting Portal: http://www.avaryholding.com.cn/contact.aspx
with conflicts of interest concerning Board proposals. Directors shall proactively disclose potential conflicts to the Board
while senior management may report promptly via the compliance channel.Investigation Procedures and Protection Measures
Risk Control and Audit
The Company has formulated standard operating procedures for reports. Complete records are retained for
The Company has established comprehensive risk control procedures and internal control systems with project managers case acceptance investigation processes outcomes and supporting documents. For verified reported
responsible for implementation and monitoring. Based on integrity risk assessments internal auditors formulate audit violations relevant departments are required to review and upgrade internal controls and workflows to
plans covering auditees scope items and frequency then verify compliance with prevention measures. Audit findings are prevent recurrence of similar issues.notified to senior management and the dedicated integrity team and full audit reports are submitted to the Audit
Committee. An integrity risk assessment mechanism collects information via interviews emails and other channels to Specialized staff and departments in charge of report handling shall immediately notify management upon
regularly identify high-risk issues. Combined with internal audits targeted prevention plans against unethical conduct are discovering serious violations or circumstances that may cause substantial losses to the Company. A strict
formulated. confidentiality framework is in place to allow anonymous reporting; written commitments protect the
reporter’s identity and report details ensuring reporters will not face unfair treatment for submitting reports.No material integrity violations occurred during the reporting period. For details please refer to the 2025
Integrity Implementation Performance Report.
27Integrity Management
About This About Avary Environmental Message from ESG Key Major Honors & Sustainability Innovation Empowers Empowering Employees Giving Back to Society
for Long-term Steady
Report Holding Stewardship & Green the Chairman Performance Recognitions Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Operational Risk Management Risk Management Organization and Responsibilities
Responsibilities
Risk Management Policy
* Approve risk management policies procedures and framework
Board of Directors * Align operational strategic direction with risk management.To prevent and mitigate operational risks and sustain long-term stable business
growth the Company established the Strategy & Risk Management Committee.The Committee researches and puts forward proposals on long-term （Reports to the Board） * Propose and review the Company’s risk management policies
development strategies and major investment decisions drives enterprise-wide procedures and framework
risk management and prevents and addresses business risks. * Study and confirm risk management priorities and risk grading
standards
Strategy & Risk Management Committee * Review risk management implementation and put forward improvement
Per the risk management policy 4 core risk categories are defined: operational suggestions
risk strategic risk financial risk and incident hazard risk. Based on internal and * Compile risk management and risk assessment reports and submit to the
external environment analysis action plans are rolled out for 14 key risk Board.（Sets Guidelines）
factors. Full-spectrum oversight is achieved through risk identification
assessment control and monitoring with ongoing iterative management
* Support and supervise risk management activities across departments
adopting the PDCA (Plan-Do-Check-Act) cycle. Risk Management Implementation Team * Assist the Board in advancing risk management and upgrading
corporate governance.The Company regularly conducts in-depth analysis on potential operational
shocks and challenges and closely monitors shifts in global geopolitics and
economies to guard against latent corporate threats. According to the Global
* Deliver timely and accurate risk information communication
Risks Report released by the World Economic Forum on January 15 2025
* Ensure effective implementation of internal risk rules within respective
shifts in global political and economic landscapes rank among the top ten Operating Units units
emerging risks over the past two years posing severe hurdles to corporate * Adjust risk categories in response to external changes and propose
sustainability. Key concerns include escalating armed conflicts widening countermeasures.social polarization growing inequality and rising involuntary migration.Furthermore misinformation and disinformation can sway public sentiment
and create adverse impacts for listed firms. Such risk signals remind the * Draft and submit the Company’s risk management policies
Company to navigate global volatility with heightened prudence. Risk Management Working Group * Support all units in carrying out daily risk management tasks
* Consolidate implementation results and report to the Risk Management
Implementation Team.
28Integrity Management
About This About Avary Message from ESG Key Major Honors &
Environmental
Sustainability Innovation Empowers Empowering Employees Giving Back to Society
for Long-term Steady
Report Holding the Chairman Performance Recognitions
Stewardship & Green
Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Risk Management Process
The Company conducts risk management via risk identification risk assessment risk control risk monitoring and communication to fully grasp all risk areas. For the 2025 risk management implementation plans and mitigation
Leveraging the PDCA (Plan Do Check Act) cycle the Company continuously optimizes and tracks risk factors to reduce the probability and impact of risks and measures please refer to the document 2025 Risk Management
deploys appropriate actions for robust risk management. In line with sustainable development principles the Company references shifts in global geopolitics and Implementation Status under the Sustainable Development section of
emerging risks highlighted by the World Economic Forum to assess medium- and long-term operational shocks and challenges. Potential risks are identified early the corporate website.with targeted oversight measures for proactive prevention and response.II. Risk Assessment: Risk assessment is carried out in accordance
R i s k R i s k R i s k R i s k M o n i t o r i n g
I d e n t i f i c a t i o n A s s e s s m e n t C o n t r o l a n d C o m m u n i c a t i o n with the Operating Procedures for Risk and Opportunity
010203
Internal and External 04 Management. Each functional department identifies potential risk FMEA Risk Risk Control Risk Monitoring
Environmental Analysis Assessment Plan Report factors via Failure Mode and Effects Analysis (FMEA) or SWOT
analysis or self-developed identification and evaluation criteria.I. Risk Identification: Internal and external environmental analysis and risk identification are carried out covering operational environmental social and Departments classify risk items and risk levels to implement
governance dimensions. In accordance with the risk management policy four core risk categories are defined: operational strategic financial and incident hazard. corresponding controls. Three indicators including severity
Action plans are formulated for 14 major risk factors. Iterative management consisting of identification assessment control monitoring and communication occurrence and detection difficulty are calculated to quantify the
enables full oversight of all risks. Risk items by category are listed below: likelihood and impact of risks serving as benchmarks for prioritizing
▓ Risk Items of the Four Core Categories risk control and response plans.
1. Market Risk: Risks stemming from shifting market trends fluctuating product demand volatile raw material prices and performance defaults
by customers and supply chain partners. III. Risk Control: Business units implement iterative PDCA risk
2. Geopolitical Regional Risk: Assessment of operational impacts caused by political and economic fluctuations in regions hosting the
Company’s production bases. control for daily operational risks. For major cross-department or 。
3. Cybersecurity Risk: Deployment administration and maintenance of cybersecurity hardware and software plus staff training and awareness cross-site crises cross-team risk assessments are launched led by the
initiatives.
4. Supply Chain Risk: Oversight and mitigation of supply chain disruptions triggered by domestic and global geopolitics and environmental convener of the Risk Management Implementation Team or an
Operational shifts. assigned representative. Teams formulate preventive strategies
Risks 5. Quality Process Risk: Prevention and inspection of operational defects covering products materials manufacturing and packaging quality
control. emergency response workflows and recovery plans for crisis
6. Industrial Safety Risk: Management and inspection of workplace hazards including work injuries fire explosion chemical spills and other incidents.
forms of environmental pollution.
7. Human Resource Risk: Review of labor administration working conditions and employee welfare matters.
After assessing and consolidating risks each functional department
8. Intellectual Property Risk: IP risks and countermeasures alongside management of impacts from updates to domestic and international laws
and policies. monitors its business risks and rolls out appropriate solutions. All
9. Strategic Risk: Operational impacts arising from corporate development roadmap product pricing and technology positioning and supply risks and countermeasures are submitted to the Risk Management
Strategic chain operations.Risks 10. Business Integrity Risk: Compliance oversight covering laws & regulations environmental and social accountability protection of corporate Working Group for review and follow-up tracking.data and assets and prevention of bribery money laundering and unfair competition.
11. Investment Risk: Evaluation of internal and external environments for all investments plus performance review and investment portfolio
Financial governance.Risks 12. Financial & Tax Regulatory Risk: Monitoring and management of profit impacts from regional fiscal / tax policy adjustments and global
financial market volatility.Incident 13. Natural Disaster Risk: Preparedness and response capacity for typhoons heavy rain earthquakes lightning strikes fire explosions
Hazard pandemics (e.g. avian influenza) heatwaves and extreme high temperatures.Risks 14. Environmental Risk: Impacts from long-term ecological changes carbon neutrality requirements and climate transition risks. 29Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
for Long-term Steady
Report Holding the Chairman Performance Recognitions
Stewardship & Green
Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
IV. Risk Monitoring: The Company conducts regular iterative reviews covering 14 major risk categories ▓ 2025 Corporate Risk Matrix
with full documentation of implementation outcomes to verify the effectiveness of risk management
frameworks and control activities. Severity
Operational Risks
Extremely Strategic Risks
2025 Risk Management Training Implementation High Financial Risks
Incident Harzard Risks
To foster a robust risk management culture the Company hosts annual internal and external risk High Overall Operational Risks
management training open to all staff including Board members. Training completion and risk management Verified financial loss below 3%
performance are factored into annual performance reviews for supervisors and employees. The initiative Overall Strategic Risks
Verified financial loss below 3%
embeds risk awareness into daily operations and routines to boost full-scale implementation. Total risk Medium
management training hours reached 44616 in 2025. Overall Financial RisksVerified financial loss below 3%
24
Overall Incident Hazard Risks
▓ 2025 Training Hours by Risk Management Personnel Verified financial loss below 3%
Unit: Person Training Training Training Training
Immediate Corrective Actions
0–25 hours 26-50 hours 51-100 hours Over 100 hours Low Submit Improvement Plans
Independent Set Indicators for Monitoring
Directors 3 - - - Sustain Iterative Supervision
Responsible Staff 5 20 14 1
74
Low Medium High Extremely Incident Rate
2025 Risk Management Performance Outcomes High
Note: The risk matrix is plotted based on severity and occurrence
The Company self-assessed its overall risk level as low for 2025. Moderate and low-level risks mostly relate
to natural disasters and global geopolitical shifts which business units continuously identify and mitigate via Medium and Long-Term Emerging Risk Tracking
ongoing iterative controls to enhance resilience. Privacy protection and operational stress tests were newly To implement sustainable development concepts and fulfill
added this year expanding audit items from 76 to 80. Each operational unit identifies and evaluates risks responsibilities as a global corporate citizen the Company
under its management system and results are plotted into a risk matrix. Four tiers of responses are deployed: comprehensively reviews potential operational risks and
immediate corrective actions submit improvement plans set indicators for monitoring and sustain iterative challenges in line with emerging risk categories outlined in the
oversight. World Economic Forum’s Global Risks Report. Three core risks
are prioritized for medium and long-term tracking: shifts in labor
force structure fluctuations in global geopolitical and economic
Analysis shows most audited risks remained under iterative monitoring in 2025. To quantify financial conditions and spread of misinformation and disinformation. For
exposure potential financial losses for each risk factor were estimated based on prior-year revenue. Potential relevant control mechanisms and implementation results please
financial impacts across the four core risk categories were kept within the Company’s targeted tolerance refer to the document 2025 Emerging Risk Implementation Status ▲ Invited external risk management experts to provide professional
range during the reporting period. on the Company’s official website. training for the Company’s risk management personnel
30Integrity Management
About This About Avary Environmental Message from ESG Key Major Honors & Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Compliant Operation Information and Communication Security
In line with customer security requirements and the international standard ISO/IEC 27001:2022 the Company rolled out an information and
Compliance Status and Implementation communication security management policy. Annual recertification audits by external certification bodies are successfully passed each year
alongside routine internal security audits to sustain stable operation of the ISMS. A secure reliable IT operating environment is maintained to
Since its establishment the Company has continuously upgraded its legal support system fully protect corporate electronic data systems hardware and networks ensuring non-repudiation verifiability and accountability for all
and compliance management framework. The Company closely tracks policy adjustments information assets.and legal revisions in all operating regions to guarantee full adherence to local laws and
regulations. As of the disclosure date of this report no material illegal incidents have
occurred. During the reporting period there were no legal lawsuits involving unfair Information Security Policy Organization and Objectives
competition antitrust or monopolistic acts at home or abroad. The Company has
formulated the Code of Business Ethical Conduct committing to fair transaction and Based on the three core CIA security principles — Confidentiality Integrity Availability the Company formulated the Information Security
competition standards and takes zero material violations as its long-term compliance Management Policy and built a systematic security governance framework with multi-layered controls. This framework aligns operations with
objective. The Shenzhen site obtained the ISO 37301:2021 Compliance Management legal requirements and effectively defends against malicious internal / external attacks and accidental security risks.System Certification in 2024. The Company will further optimize the compliance system
and fulfill legal compliance obligations going forward. l Core Principles（CIA）
Confidentiality Integrity Availability
Privacy and Personal Data Protection
To prevent unauthorized access or To guarantee information remains To enable authorized users to access
disclosure of information through strict accurate complete and unaltered during information and assets timely and
The Company attaches great importance to privacy and personal data protection and has
access permission control storage transmission and processing reliably upon demand
issued the Privacy and Personal Data Protection Policy to build a structured management
system with clear responsibilities at all levels. It strictly complies with internal privacy
l Governance Framework and Control Measures
rules and applicable laws to safeguard personal information of employees customers
A systematic information security management framework is built upon CIA principles with multi-layered controls to ensure regulatory
suppliers and visitors against leakage and misuse. Sites in Chinese Mainland undergo
compliance and effective mitigation of internal and external threats
biennial audits by independent third parties for privacy control effectiveness. Throughout
the reporting period collected personal data was only utilized for predefined authorized l Key Implementation Actions
purposes. Systematic reviews and improvements are implemented to strengthen privacy
protection continuously. Regular training programs cover new hire briefings on privacy Continuous Full-Range Dynamic Emergency Security Roles and
statements and refresher sessions for existing staff to raise awareness. A total of 40296 Optimization & Access Control Monitoring & Response & Responsibilities
attendances were recorded with 20148 training hours achieving a 100% passing rate Risk Resilience Defense Containment
Enhance technical protection
after training. Conduct regular system Deploy real-time network Implement tiered notification and
Clarify departmental
and access governance to
assessments and process threat monitoring with early emergency response protocols to accountabilities roll out security
block unauthorized access and
upgrades to strengthen risk warning and proactive defense limit the impact of sudden management for third-party
safeguard assets
resistance capacity strategies security incidents partners and build a multi-level
protection barrier
31About This About Avary Message from ESG Key Major Honors &
Integrity Management Environmental
Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Report Holding the Chairman Performance Recognitions
for Long-term Steady Stewardship & Green
Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
The Company has established an Information Technology Department. Aligned with the Group’s long-term To effectively protect the trade secrets of the Company and its customers the Company has established a classified data
development goals and digital transformation strategy the department leverages diverse IT systems and platforms management system and continuously optimized controls for product and customer communication data. A top-security
collaborates with external professional consultants and interconnects various business systems. The Company zone is designated for confidential customer information with stringent access controls over networks equipment andsteadily delivers the development vision of “digitalized operations platform-based data intelligent platforms and personnel delivering end-to-end protection centered on three core information security management objectives.practical intelligent applications” delivers high-quality technical support for operation management and decision-
making across all Group entities and helps the Group improve quality boost efficiency cut costs and reduce ▓ Core Information Security Management Objectives
inventory.To ensure effective execution of information security policies an independent dedicated Information Security * Security Management of * Employee Information * Network and Anti-Virus
Department is set up separately from the IT Department with the Chief Information Security Officer (CISO) IT Equipment Security Training Management
acting as the top supervisor for overall information and communication security. The department consists of four
full-time teams: Information Security Management Team Information Security Operation Team Information
Security Technology Team and Information Security Audit Team for daily operations. Meanwhile an Information Advancement of Information Security Protection
Security Governance Promotion Team is formed with representatives assigned from each department to
disseminate policies and drive implementation sustaining stable business continuity.Security Management of Information and Communication Equipment
To further centralize information security governance the Company formally founded the Information Security
Committee in 2021. The CISO oversees security management work with management executives serving as The Company enforces strict controls on portable IT devices carried by personnel entering computer rooms production
committee members. Quarterly meetings are held to review formulate and evaluate information security targets lines and restricted areas and conducts routine monitoring and access governance for networks computers operating
policies and standard operating procedures. systems and applications across all departments. The Business Continuity Operating Procedures have been formulated
The Board of Directors oversees the Strategy & Risk Management Committee which supervises and guides the for classified system management forming a robust business continuity framework to sustain uninterrupted operations.formulation of information security strategies and objectives. Centered on sustainable operation the Company
continuously builds a secure and trusted IT environment protects data systems hardware and networks and
Backup and restoration drills are held semi-annually to enable rapid system recovery amid emergencies or disasters and
stabilizes overall Group operations.minimize loss. In 2025 a total of 23 redundancy drills were completed including 8 primary equipment failover tests
and 15 data backup restoration tests at sites in Shenzhen Huai’an Qinhuangdao and other locations. Networks are
▓ Structure of the Information Security Management Committee
segmented into multiple security zones by function and risk level with differentiated access permissions and security
Chairman policies. Granular access controls block unauthorized entry and mitigate overall network threats.Information Security Committee Network and Anti-Virus Management
Chief Information Security Officer To defend against cyberattacks and monitor real-time security posture the Company deploys firewalls intrusion
prevention systems email security filters and anti-malware solutions for round-the-clock oversight of group-wide
networks and systems. In 2025 over 10817 cyberattacks were blocked and 71779 malicious emails intercepted per
Information Information Information Information month on average successfully preventing operational losses from malicious activity.Security Security Operation Security Security Audit
Management Team Team Technology Team Team
32Integrity Management
About This About Avary Major Honors & Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
for Long-term Steady
Report Holding Recognitions Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
A staged deployment protocol is applied for system development: full validation in test environments precedes production ▓ Case Study: Monthly Information Security Column in The Dingsheng Times for
rollout to reduce post-launch risks. Strict software license compliance is enforced to avoid legal liabilities. Third-party Security Knowledge Promotion
professional tools power regular vulnerability scanning with iterative remediation. External specialists conduct penetration
testing and social engineering drills to boost security resilience and lessen operational disruption from risks.IT & Communication Security Training
Total information security training reached 69910 training hours with 352850 attendances in 2025. The Company
prioritizes security awareness building: dedicated courses are hosted on the knowledge management platform as mandatory
training for new hires; quarterly training materials are distributed company-wide social engineering simulations are held
regularly and security knowledge is shared via the corporate newsletter. The employee handbook outlines clear rewards and
disciplinary rules for IT security violations. Severe misconduct such as unauthorized device use unapproved software
installation and unauthorized access to others’ computers may result in termination.Information Security Incident Reporting Protocol
Upon discovery of an IT security incident employees report to the IT Department in accordance with the Information
Security Incident Handling Procedures. The Company follows standardized steps for identification classification risk
grading and resolution to deliver fast effective responses. From 2022 to 2025 the Company fully complied with applicable
IT security regulations with zero security incidents and zero customer complaints related to privacy infringement or lost
customer data.Information Security Incident Performance
in the Past Four Years 2022 2023 2024 2025
Total IT / Cybersecurity Violations 0 0 0 0
Incidents Involving Customer Personal Data
Breach 0 0 0 0
Total Customers Affected by Security
Incidents 0 0 0 0
Total Fines for IT / Cybersecurity Violations 0 0 0 0
33This chapter addresses the double materiality topics:
* Green Product and Innovation Management * Product Quality
* Sustainable Supply Chain Management * Chemical Safety Management
Product-related matters are managed by the Green Product Working Group under the ESG Development Committee
together with the Equipment & Material Technical Committee and Central Quality Assurance Department. These entities
ensure full-lifecycle compliance delivery of green development targets and product quality that meets customer expectations.The Green Product Working Group advances green product strategies eco-friendly material adoption and hazardous
Governance substance control to align products with international environmental regulations and sustainability requirements. The
Central Quality Assurance Department oversees quality management system development quality standard formulation in-
process inspection and customer quality support. The Company establishes end-to-end quality control mechanisms to
steadily boost product reliability and customer satisfaction.Guided by the R&D core philosophy of “leading industrial technology and exceeding customer expectations” the Company
builds a product development system featuring technological superiority reliable quality low carbon and environmental
friendliness. For R&D innovation the Company carries out short- medium- and long-term technological breakthroughs and
intellectual property deployment supporting carbon neutrality through technical advancement and green transformation.Strategy
Adhering to the tenets of quality-first customer-centricity full-staff participation and innovation-driven development the
Company delivers steady quality improvements via preventive management compliance accountability and technological
empowerment. In supply chain management the Company collaborates with high-quality strategic suppliers to optimize
QCDS performance and strengthen ESG coordination advancing sustainable development alongside value chain partners.Indicator 2025 Performance
Annual Supplier Audit Completion Rate 100%
Green Supply Chain Program Implementation Rate 100%
Indicators and 100% conflict-free supply chain minerals Achieved
Performance Average Customer Satisfaction Score 93.4
Major Safety Incidents Caused by Chemical Exposure 0 34
Products Complying with Environmental Laws Regulations and
Customer Requirements 100%
Note: For details please refer to Material Topic Management Targets & Performance – Product Dimension
Sustainable Governance & StrategiesMajor Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Report Holding the Chairman Performance Recognitions
for Long-term Steady Stewardship & Green
Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Innovation and R&D Core R&D EcosystemThe Company regards technological R&D as the core driving force for long-term growth. It engages in design and engineering verification at the The Company consistently takes “leading industrial development and exceedingearly stage of customer product development and continuously upgrades its overall R&D system and technical capabilities. The Company customer expectations” as the cornerstone of technical R&D. Dedicated R&D centers
believes technological innovation and superior quality underpin corporate value creation. By integrating innovative technology platforms are established to advance cutting-edge technology research targeting three R&D
deepening industry-university-research partnerships and nurturing professional PCB R&D talent the Company consolidates core competitiveness goals: meeting customer demands exceeding customer expectations and
and long-term growth potential. In 2025 R&D investment reached RMB 2.459 billion accounting for 6.28% of annual operating revenue. The spearheading industry technologies. Regular review meetings evaluate short medium
R&D workforce totaled 7881 employees representing 16.57% of the total headcount. and long-term R&D milestones and performance. The Company iteratively optimizes
product technology platforms to deliver diversified solutions fosters industrial chain
R&D and Innovation Resource Input 2022 2023 2024 2025 collaboration expands partnerships and pursues shared growth and long-term win-
R&D Expense (RMB Billion) 1.672 1.957 2.324 2.459 win results.R&D Expense as % of Revenue 0.462 0.610 0.661 0.628 ● Three Pillars of R&D Strategy
R&D Staff (Persons) 5414 6022 7035 7881
Short-term Long-term
R&D Staff as % of Total Employees 15.32 14.41 16.31 16.57
Medium-term
Meet Customer Exceed Spearheading
Demands Customer Industry
The Company focuses R&D priorities on new products processes technologies materials and equipment refining its R&D layout continuously. Expectations Technologies
The Company deepens coordination with strategic partners to build a tightly integrated R&D ecosystem for joint development of core
technologies and win-win outcomes for all parties. Under the One Avary framework the innovative technologies developed by the
Company are listed below.Meanwhile the Company actively deploys simulation analysis platforms to lift overall R&D efficiency and deliver high-performance low-carbon
Items Achievement Cases
integrated solutions to customers. For intellectual property management the Company pursues systematic patent and core technology deployment
over the long run to protect innovative achievements and low-carbon technologies. Moving forward the Company will co-develop green products Development of Multi-layer FPC for Millimeter-Wave RF Communication Modules
with novel application values and functional features alongside customers fully catering to diversified market and client demands. Development of Fine-Pitch FPC for Next-Generation
Camera Modules
Development of Next-Generation High-Flexibility High-
Frequency Transmission FPC
Technology Development of Ultra-Thin Next-Generation FPC
Protection Development Outputs Technology
* New Processes * New Materials
* New Equipment * New Technologies Simulation Technology Development of High-Shielding Automotive FPC
* New Platforms Patents Specialized Platforms Development
Technologies Development of High-Reliability Small-Pad HDI Process
Green Products Low Carbon
……
Low-Carbon & Carbon
Reduction Patent Patents for Substrate Lightweighting Metal Recycling and ONE AVARY
Portfolio other eco-technologies
35Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
for Long-term Steady
Report Holding Stewardship & Green the Chairman Performance Recognitions Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Shared Innovative Technology Platform servers optical communication and emerging sectors meeting high-quality high-performance
manufacturing demands across industries. The one-stop model shortens prototype cycles cuts development
The Company further upgrades its one-stop service model covering end-to-end links: customer demand alignment supply
and capital costs lifts clients’ market competitiveness and speeds end-product launch. Tailored to distinct
chain collaboration product R&D stack-up design optimization simulation testing and reliability verification. The
product specifications and performance requirements the Company advances advanced material
Company boosts platform competitiveness by integrating internal and external R&D resources to expand the scope and
development technical simulation structural design production manufacturing and process performance
depth of technical development delivering efficient stable technical support to clients.testing. Simulation optimizes R&D workflows to compress lead times and lower trial expenses delivering
● Full-Spectrum Resource Integration to Build Proprietary Core Technology & Industry customized differentiated product solutions that help clients secure unique market edges.Leadership
The Company anchors its technology roadmap on five pillars: new products new technologies new
Tripartite Collaboration:
Company Customers & Design Simulation & Industry-University- Technology & Product Development processes new materials and new equipment. The Company introduces and develops cutting-edge global
Suppliers Solution Validation Research Partnerships materials technologies and equipment paired with strengths in digital transformation smart manufacturing
* Customer Service * Product Design * Principle Formulation * Advanced Technology Development and global supply chain management to boost yield production efficiency and economies of scale. By the
Liaison * Simulation & Test * Talent Cultivation * Product Innovation Competitiveness end of 2025 over 156767 engineering improvement projects had been completed: 92002 new process
* Resource Verification * Patent Deployment * Development of Generic Technologies
upgrades 16070 new technology rollouts 38964 new material adoptions and 9731 new equipment
Integration for Key Components
deployments.For internal resources digital design and simulation streamline product development workflows forming a full-lifecycle ● Engineering Innovation & Improvement Projects (Units)
technical support system from demand analysis schematic design product optimization to mass production backup.
146470156767
Combined with proprietary precision processes and rigorous reliability standards the Company delivers competitive
innovative core technical solutions. R&D teams target diverse applications: 5G / 6G new energy vehicles AI servers VR 73082 57478
headsets robotics optical communication and low-earth-orbit satellites. Teams co-develop technology roadmaps with
customers to analyze product trends and strengthen core technical capabilities steadily.
2022202320242025
For external resources the Company builds long-term industry-university-research ties with universities and research ● 2025 Annual Engineering Innovation & Improvement Projects
institutes. In 2025 11 joint R&D projects were launched. Integrating theoretical research with industrial practice nurtures
Category Breakdown of Improvement Projects Total Quantity
professional technical talent accelerates commercialization of advanced technologies and elevates overall R&D strength
and innovation momentum. New Processes 4809 human factor optimizations 85520 quality upgrades 92002
391 process revamps 1282 production lead time reductions
New Technologies368 manpower reduction initiatives 15702 environmental 16070
Full-Spectrum Technical Solutions improvement projects
New Materials 13659 cost-cutting projects 25305 safety enhancement measures 38964
The Company integrates core PCB capabilities across R&D design manufacturing and sales to provide full-range PCB
New Equipment 5875 efficiency boosts 3856 equipment upgrades 9731
products and technical services and co-plans next-generation product roadmaps with customers.Its diversified PCB
portfolio serves consumer electronics communication automotive
36About This About Avary Message from ESG Key Major Honors &
Integrity Management Environmental
Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Smart Factory & Manufacturing (1) End-to-End Quality Management System (QMS)
As a global leader in the printed circuit board industry the Company not only consolidates its scale and
supply chain advantages but also sets a benchmark for high-quality industrial development through deep Quality
integration of precision manufacturing and digital technologies. Intelligent manufacturing is defined as its Management System
long-term core strategy leveraging digital transformation to drive sustainable profitable growth and build Machine Defect
solid core competitive moats. Yield Monitoring Yield Early Defect Analysis Stratification Distribution Warning Analysis Mapping
DOE
Top-Level Strategy: Benchmarking Semiconductor Standards to Build EDA IIOT(Microservices (Design of Experiments for Self-developed algorithm rules and （Vidas） Individual Process Optimization) verification tools
Digital Infrastructure Architecture)
The Company recognizes data as a core asset for future manufacturing. It advances digital construction in A full-scale QMS is deployed under the yield-first principle to enable full digital traceability throughout production. Big data
line with semiconductor-grade standards to comprehensively elevate manufacturing capabilities and models proactively identify abnormal parameters and issue advance alerts shifting quality management from reactive
competitiveness. troubleshooting to proactive prevention. Simulation of optimal production conditions cuts trial costs and accelerates yield
Benchmark Certification: The Company has ramp-up for new products.obtained Level 4 CMMM (Intelligent
Manufacturing Capability Maturity Model) (2) Smart Production & Predictive Maintenance
certification. Its capabilities in data-driven
A full-scope data collection network is built via IIoT equipment connectivity tightly integrated with EES / EMS equipment
operation system integration and dynamic
engineering management EAP equipment automation and MES manufacturing execution systems. Advanced Process Control
optimization match those of semiconductor fabs
(APC) benchmarked against semiconductor fabs conducts
delivering outstanding performance in system real-time statistical analysis of process parameters to
integration and real-time dynamic optimization. mitigate quality risks; SPC statistical process control
Standardized Fundamental Framework: All production lines across the Company fully adopt the SECS and data analysis further stabilize manufacturing processes./ GEM semiconductor communication protocol to realize inter-device connectivity and high-standard Predictive Health Management (PHM) is applied to core
unification. This enables rapid response to demands for high-end products such as AI servers greatly equipment to assess real-time operational conditions shifting
improves efficiency of technology migration and production line replication and ensures consistency and maintenance modes from breakdown
stability in high-precision manufacturing. repair and scheduled servicing to
predictive upkeep minimizing downtime
Value Creation: Translate Smart Factory Advantages into Tangible
losses and lifting equipment utilization rates.Profitability
The Company boosts production quality cuts costs raises efficiency and reduces carbon emissions via AI optical inspection is rolled out across all industrial parks to boost inspection efficiency cut labor reliance and reduce
digitalization and intelligent transformation converting technical strengths into operational performance missed defects. AI intelligent video surveillance is deployed for round-the-clock smart site security monitoring which
and sustainable development capacity. automatically identifies violations and anomalies enables rapid response and safeguards personnel and asset safety.
37Integrity Management
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Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
(3) Automation & Automated Material Handling System (AMHS) Patent Management
Complex systems are split via standardized and modular designs paired with automated transportation and intelligent
dispatching systems. This lowers labor dependence eliminates human errors ensures consistency and reliability in The Company vigorously develops proprietary intellectual property rights and allocates resources for strategic
mass production of high-end products raises overall operational efficiency and profitability and supports low-carbon patent planning to upgrade patent quality. Four core patent management strategies have been formulated:
green manufacturing. Accumulation Focus Innovation and Value Enhancement.● Patent Management Strategies
(4) Smart Factory Assessment & Continuous Improvement
Accumulation Focus
Amid trends of PCB heterogeneous integration and rapid process iteration the Company advances digital Build up IP rights for core Evaluate and screen patents by
technologies analytical value
transformation in full depth. As stated by the Chairman the level of digital and intelligent development shapes the
Company’s future growth. Benchmarking the semiconductor industrial chain a smart factory maturity evaluation Innovation Value Enhancement
Link with technology Improve quality lift efficiency and boost
system is established to form a closed-loop workflow: department self-assessment factory preliminary review on-site innovation services operational performance
re-audit and review-driven optimization. Evaluations cover four dimensions: workforce technology resources and
manufacturing forming a unified One Avary intelligent manufacturing management framework. Systematic ● Patent Management Initiatives
assessments pinpoint pain points across sites; expert exchanges experience sharing and benchmark replication lift
capability evenly across the whole enterprise. * Establish dedicated professional teams * Deploy patent management IT systems
* Develop patent certification and brand reputation * Prioritize core technology fields
The Company adheres to the PDCA continuous improvement cycle deepens industry-university-research * File high-quality patent portfolios * Fully implement standardized management systems
collaboration and supply chain synergy internalizes intelligent manufacturing and AI as core organizational strengths
and solidifies its leading global position in the PCB sector.● Patent Achievement
As of December 312025 the company has filed a total of 2801 patent applications and obtained 1647
Future Outlook: Build an AI-powered Digital Moat patents of which 90% are invention patents.
2026 Smart
2024-2025 Digital 2024-2026 Building Empowerment/Expansion: 2027+ Intelligent Total Patent Applications Total number of patents granted
Foundation: 100% Data Quality Hub: QMS Total IE Academy & AI Agent Collaboration: Multi-Agent
Coverage & Cloud Quality Management Implementation Infusing Collaboration & Self- 2642 2801 2361 1647 Integration Platform the Company with AI Evolving Factory 2032 1453 DNA 1726 1266 1099
1409
1194896700791
Against PCB upgrade opportunities driven by AI computing power the Company has formulated a clear development
roadmap to convert traditional manufacturing strengths into sustainable digital barriers. It is not merely a supplier of
AI hardware but also an in-depth adopter of AI technologies. A defined digital transformation roadmap strengthens
20192020202120222023202420252019202020212022202320242025
resilience amid volatile global supply chains and delivers long-term stable investment value amid the AI boom.
38Integrity Management
About This About Avary Environmental Message from ESG Key Major Honors & Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Responsible Supply Chain Upholding the Seven Green Principles the Company selects
high-quality eco-friendly raw materials meeting quality
The “Avary PCB Business Platform” serves as a growth ecosystem for Avary suppliers professional institutions and other strategic partners to progress and share
requirements with supplier support. Key precious metals
achievements together. The Company believes business is not a zero-sum game but a pursuit of mutual prosperity with partners. The Company aims to co-develop
deployed include gold palladium and tin covered in materials
innovate and research core technologies (new products technologies equipment materials and processes) alongside partners with shared benefits. Meanwhile high-
such as potassium gold cyanide palladium solution copper
quality PCBs are widely applied in end-customer products to benefit consumers and society at large.powder / ball / foil solder paste / balls especially copper foil
inside FCCL and CCL. The entire PCB industry is exploring
alternatives or consumption reduction for rare metals. Avary
Core Technologies Holding maintains close communication with suppliers to
International Brand Manufacturers track technical trends yet no viable metal substitutes exist in
* New Products
Collaborative * New Technologies In-house System Assembly the short term due to quality constraints and current industrial
Innovation * New Equipment* New Materials World-Famous technology limits. To protect the planet diversify supply
* New Processes Electronics Manufacturing Service Providers Brand Customers sources and secure stable material supply Avary Holding
ODM / OEM System Assembly collaborates with suppliers and customers to expand recycled
Strategic Equipment Partners metal adoption. Recycled solder paste has been implemented
Avary’s Manufacturing Technologies Professional Research Institutes with recycled tin accounting for 86% of total tin usage. All
Strategic Raw Material Suppliers potassium gold cyanide suppliers hold third-party recycled
material certifications (ISO 14021 UL 2809 or SCS Global
Green Procurement Services). In 2025 96% of the Company’s potassium gold
cyanide was recycled (Note: recycled potassium gold cyanide
The Company has a total of 1711 suppliers categorized into five major groups: raw materials equipment construction logistics and information technology. Raw
sourced from external procurement and in-house recovery).material suppliers account for the largest quantity reaching 524 in 2025 including flexible copper clad laminate (FCCL) rigid copper clad laminate (CCL) prepreg
(PP) potassium gold cyanide and others.Through partnerships with customers and suppliers recycled
Proportion of Procurement Value and Consumption Volume of Key Raw Materials in 2025 copper powder and copper balls achieved 100% utilization in
5.9 Consumption of Key 2025. For copper foil three top-tier suppliers (expanded from
4.6 Materials Unit 2021 2022 2023 2024 2025
3.6 Flexible Copper Clad only the largest supplier) can deliver foil made entirely of
3.8 Laminate (FCCL) Flexible Copper Clad
Rigid Copper Clad Laminate (FCCL) m2 5366018 4696145 4689041 5303386 7179852 recycled copper bringing annual recycled copper foil usage to
Laminate (CCL)
Rigid Copper Clad 100%; all newly introduced copper foil materials will adopt Prepreg (PP)
Laminate (CCL) m2 5049415 4899453 3824603 5173961 5571555 recycled copper hereafter.Gold Salt
Prepreg (PP) m2 12889371 12635456 11132062 13105657 19768838
Others
82.1 Potassium Gold
Cyanide Kg 1371 1077 849 1123 1259
Note: Consumption volume estimated based on procurement quantity
39Integrity Management
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Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
For CCL containing copper foil collaboration launched in 2024 lifted recycled content to 86% in 2025. FCCL (including Responsible Supply Chain Management
rolled copper foil) began recycled foil trials in 2023 rolled out for partial production in 2024 and reached a 15% recycled
ratio in 2025; the Company will keep partnering with stakeholders to raise this share further. Steel sheet accessories raised
Avary Holding has long adhered to a procurement strategy focused on acquiring technology talent
recycled material proportion to 41% in 2025 with 80% recycled content per SUS stiffeners. Beyond recycled metals
market access and sustainable fair pricing developing high-performance competitive suppliers. Regular
packaging trays are recovered and reused hitting an 8% recycling rate in 2025 with a 15% recycling target set for 2027.audits coaching and performance tracking continuously lift supplier standards for quality cost delivery
Recycled Material Consumption and Targets During the Reporting Period and service to achieve mutual benefits. Key supplier management KPIs are outlined below.
2025 2026 Target
Recycled Material Unit 2025 2025 2026 2030
Total Consumption Recycled Ratio (%) Recycled Ratio (%) Annual Supplier Management KPI Items Target Actual Target Target
Solder Paste kg 32563 86 95 Annual Supplier Audit Completion Rate (%) 100 100 100 100
Potassium Gold Cyanide kg 1259 96 100 Supplier Performance Review Completion Rate 100 100 100 100
Copper Balls kg 1387215 100 100 (%)
Green Supply Chain Program Rollout Rate (Note)
Copper Powder kg 4431595 100 100 (%) 100 100 100 100
Copper Sulfate kg 533325 83 100
Note: The 100% completion rate for the Green Supply Chain Program applies to manufacturers
Copper Foil kg 6485552 100 100 located in Mainland China.FCCL（Copper Foil Base） m2 7140500 15 15
CCL（Copper Foil Base） m2 5827723 86 90
A mature supply chain management system and dedicated supplier management department oversee
SUS Stiffeners kg 267206 41 40
supplier quality delivery technical support and pricing via the Supplier Management Operating System.Tray pcs 71416579 8 15
Supporting documents include Supplier Social Responsibility Management Procedures and Conflict
Aluminum kg 350344 0 0
1320 0 0 Minerals Specification. In-house procurement teams receive regular training on integrity anti-Nickel kg
Titanium kg 4401 0 0 corruption and supply chain ESG extending Avary Holding’s sustainability standards across the value
Lithium kg 0 0 0 chain with binding supplier commitments to comply with environmental labor and global CSR
Cobalt kg 0 0 0 regulations. Production suppliers are mandated to submit Supplier Commitment Letters or sign the
Special Terms and Conditions of Purchase Order aligned with RBA standards. The Supplier Code of
During the reporting period the Company promoted carbon reduction and renewable energy adoption among suppliers Conduct covers ethics (integrity no improper gains) human rights (child labor ban free employment
conducting surveys on carbon emissions and green energy usage covering 138 suppliers. Green procurement governance choice) and environment (biodiversity deforestation prohibition land protection) plus terms allowing
applies to equipment suppliers: vendors are required to implement ESG management energy consumption is a key equipment immediate contract termination for severe CSR violations with major environmental / social harm.selection criterion and suppliers must integrate energy-saving water-saving and emission-reduction designs at the early 100% of production suppliers signed the code in 2025 with zero human rights disputes such as child
specification stage. For risk control excluding a handful of monopolized single-source raw materials and equipment the labor or forced labor recorded that year.Company maintains at least 2 suppliers or production sites for each material to guarantee supply stability.
40Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
To fulfill planetary environmental stewardship and lift eco-performance across the industrial value chain ● Mandatory Supplier Requirements
Avary Holding hosted green supply chain workshops in 2025 with 669 attendances from 252 suppliers.Dedicated green initiatives support suppliers in upgrading factory environmental controls obtaining ISO
? Fully comply with environmental laws and RBA (formerly EICC) Code of Conduct;
certifications and launching water / electricity conservation waste reduction and carbon abatement projects
? Conduct thorough internal environmental reviews and accept Avary Holding supervision (including on-site
to boost overall environmental performance and collective sustainability impact.assessments);
? Implement supply chain environmental controls required by Avary Holding and brand customers per IPE
Supplier Selection CITI and CATI protocols;
? Suppliers and sub-suppliers (chemicals wastewater / solid waste treatment logistics raw materials) must
To secure stable material supply meeting quality environmental delivery technical and cost criteria and register IPE enterprise accounts monitor compliance records and promptly remediate and disclose
help suppliers strengthen their internal management systems Avary Holding implements a comprehensive regulatory non-conformities;
supplier governance framework. Competitive vendors are selected against seven core principles via material
? Mainland suppliers contributing over 80% of procurement spend and their sub-suppliers must annually
assessments professional audit evaluation and coaching. Onboarding follows standardized risk assessment: disclose PRTR data on IPE conduct GHG accounting set emission reduction targets and report progress
questionnaires self-assessments and on-site remote or document-based audits. Only suppliers that meet regularly.standards or complete corrective actions sign commitment agreements to become approved vendors. All new
suppliers onboarded in 2025 followed this full selection framework.Audit & Coaching for Supplier Quality Hazardous Substances and Social
Responsibility
● Supplier Selection Principles
To guarantee suppliers manage environmental protection labor health & safety and comply with CSR client and legal
* Streamlining Principle: Optimize supplier count and develop competitive vendors obligations with continuous improvement commitments on-site audits target high-risk vendors annually based on
* Resource Sharing Principle: Cross-site sharing of qualified supplier resources material risk tiers and annual performance scores under the Supplier Audit Procedures. In 2025 203 suppliers (52.6% of
active vendors) underwent quality and hazardous substance audits: 66.0% (134 suppliers) fully passed 34.0% (69
* Transparent Evaluation Principle: Open assessment covering cost quality collaboration and
suppliers) passed conditionally. Suppliers resolved all 1720 identified non-conformities with a 100% closure rate; major
technical capability gaps included undocumented on-site operations incomplete product traceability and poor foreign object control. All
* Exclusion Principle: Reject suppliers with a record of severe losses or adverse impacts corrective actions were completed within deadlines.* Merit Selection Principle: Analyze material markets to prioritize high-competitiveness partners
* Second Sourcing Principle: Maintain alternative suppliers for all materials Seventy-two suppliers received on-site Social & Environmental Responsibility (SER) audits in 2025 against five RBA
* Impartiality Principle: Partner with low-risk vendors for management systems labor EHS and pillars: labor health & safety environment ethics and management systems covering 18.7% of trading suppliers. Forty-
six received Green ratings and 26 Yellow ratings. 428 SER non-conformities were fully remediated (100% completion
business ethics
rate) with the lowest-scoring categories being occupational health & safety and working hours. Suppliers submitted
formal corrective action plans and received ongoing coaching to meet Avary Holding downstream customer and legal
Note: Priority is given to suppliers with third-party ISO 9001 ISO 14001 ISO 45001 and QC 080000
certifications standards.
41Integrity Management
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Report Holding Recognitions
for Long-term Steady Stewardship & Green
the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
No suppliers received Red ratings or faced contract termination due to failed corrective actions in ● Audit Process
2025.
Note: Audit counts tally individual factory sites; scope covers 386 raw material suppliers (excluding electronic components and * Planning * Preparation * Execution * Report &
customer-specified parts). No high-risk suppliers were flagged in the 2025 SER risk screening. Corrective Action
1. Total audit score cap = 200: Green (>180 fully passed); Yellow (160＜Score≤180 conditionally passed); Red (≤160 failed). * Confirm audit * Supplier self-assessment * On-site factory * Issue audit report
2. Violations of the eight zero-tolerance clauses in Avary Holding’s Supplier CSR Code automatically result in a Red (failure rating).
requirements and document collection audit * Track remediation of
3. Ratings are recorded based on initial audit findings.
* Form audit team * Arrange audit schedule non-conformities
4. High-risk supplier criteria (any single trigger applies): A. SER incidents (including media exposure) in the prior 12 months or
unresolved SER incidents within three years; B. Pending or revoked approved supplier status due to SER breaches; C. Confirmed use of
conflict minerals originating from the DRC and adjacent nations; D. Failure to remediate SER audit gaps within required timelines; E. Global attention to corporate environmental protection has intensified expanding from individual
Red SER rating in the prior fiscal year. enterprises to the entire supply chain. Companies must not only fulfill their own environmental
responsibilities but also responsibly manage the environmental footprint of their supply chains to mitigate
Beyond the 72 targeted annual SER audits in 2025 Avary Holding supports key suppliers with GHG inventory environmental risks.assessments and ISO system implementation coaching to lift vendor green performance and amplify collective CSR
impact. Beyond hazardous substance control for products the Company enforces requirements for supplier
management systems covering labor ethics health & safety and environment in alignment with the RBA
Supplier audit results during the reporting period Code of Conduct and SA8000 with eight zero-tolerance violations defined.
20222023202420252026
Supplier Audits ● Eight Zero-Tolerance Items of the Company
Target Actual Target Actual Target Actual Target Actual Target
1. Employment of child labor;
Total Quality & Hazardous
Substance Audits 130 132 145 179 180 170 180 203 08 2. Use of forced labor prison labor use of prisons as suppliers or subcontractors restriction of freedom of
Fully Passed Ratio / 43.2% / 99.4% / 75.9% / 66.0% / movement and withholding of identity documents;
3. Imminent health and safety hazards endangering employee life or causing severe injury (including
Conditionally Passed Ratio / 55.3% / / / 22.3% / 34.0% /
violence verbal abuse corporal punishment sexual harassment unlawful body searches opposite-
Failed Ratio / 1.5% / 0.6% / 1.8% / / / gender searches etc.);
Total SER Audits 40 47 40 39 40 53 55 72 72 4. Retaliation against employees who provide truthful information to auditors;
5. Providing false information to Avary Holding;
Fully Passed Ratio / 38.3% / 71.8% / 45.3% / 63.9% / 6. Environmental issues posing immediate severe harm to society;
Conditionally Passed Ratio / 59.6% / 28.2% / 54.7% / 36.1% / 7. Media crises and severe mass incidents are prohibited including unnatural deaths (suicide homicide
falls sudden death etc.) collective labor disputes or strikes group fights mass poisoning and other
Failed Ratio / 2.1% / / / 0 / / /
mass casualty events;
Total Audited Supplier Count 170 179 185 218 225 223 235 275 280 8. Failure to provide a safe and healthy workplace and implement effective measures to prevent potential
Health&Safety accidents and work-related illnesses such as mass infection from communicable disease
outbreaks.
42About This About Avary Message from ESG Key Major Honors &
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Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Supplier Training
● Avary Holding Conflict Minerals Governance Framework
To boost suppliers’ ESG implementation capacity the Company rolls out annual training plans covering the
Supplier Code of Social Responsibility environmental policies and standard quality tools at the start of each
* Commit to responsible mineral sourcing; all smelters shall be RMI (Responsible Minerals
year. In 2025 six training sessions were held with 932 attendances from 351 suppliers.Policy Initiative)(Note) -compliantor or customer-approved;
Supplier Training Record During Reporting Period * Conduct supply chain due diligence in line with OECD Due Diligence Guidance;
* Refrain from direct or indirect procurement of conflict minerals that fund non-state armed groups;
Training
Category Training Content * No blanket ban on sourcing compliant minerals from the DRC and neighboring countries;
* Suppliers shall impose identical conflict minerals requirements on their upstream vendors.Quality Customer CSR requirements supplier change management supplier performance scoring criteria
Supply chain environmental & carbon management via tools such as IPE Blue Map; Continuously upgrade supply chains per legal and customer rules to achieve a conflict-mineral-free supply
Green Supply mandatory corporate environmental disclosure – pollutant discharge and accounting
Chain Targets
chain.reporting; carbon data accounting disclosure and target setting; case studies of corporate * 100% completion rate of supplier conflict-mineral-free commitment letters;
environmental regulatory records in 2025 * 100% supplier response rate to conflict mineral surveys;
Grievance & Reporting Mechanism * 100% of raw materials and products sourced from compliant smelters and refiners.The Company advocates “fairness integrity self-discipline honest cooperation to build a clean procurement * Prioritize suppliers offering full traceability for materials potentially containing conflict minerals. Deployecosystem” and prohibits any acts violating core supplier management principles. All approved suppliers sign CMRT (Conflict Minerals Reporting Template) and EMRT (Extended Minerals Reporting Template) for
commitment letters including integrity clauses. Requirements are reinforced periodically via emails and baseline surveys; AMRT (Additional Minerals Reporting Template) covers rare earths nickel rare metals
supplier conferences. A dedicated reporting channel allows anonymous or identified submissions of bribery Implementation zinc aluminum etc. Regular supplier assessments sustain policy adherence;
solicitation and other code-of-conduct violations to avary@avaryholding.com. * Cross-check against customer rules and RMI’s approved smelter list; suppliers must submit corrective
action plans for non-compliant smelters;
* Mandate suppliers to cascade identical conflict minerals controls to their sub-suppliers;
Conflict Minerals Management * Deliver training to internal staff and suppliers to raise conflict minerals awareness;
* Require suppliers to sign conflict-mineral-free declaration forms.Conflict minerals are minerals sourced from the Democratic Republic of the Congo (DRC) and adjacent
conflict-affected regions whose extraction and trade may fund armed conflict or human rights abuses. To Note: RMI stands for Responsible Minerals Initiative
ensure compliant raw material sourcing and sustainable supply chains the Company has rolled out full
conflict minerals policies targets and controls integrating conflict minerals into formal supplier governance.In 2025 64 non-compliant smelters failing RMI RMAP standards and customer specifications were phased
out. Ongoing monitoring ensures full compliance with legal and customer requirements.
43Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
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Growth Production Workplace Founding Mission
Conflict Minerals Management Workflow ● Avary Holding RCOI Procedures
The Company’s management system follows the five-tier framework of the OECD Due Diligence Guidance for
● Conduct supplier surveys via CMRT to ● Suppliers sign commitment letters
Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. The due diligence process identify smelter origins of 3TG minerals affirming compliance with Avary Holding’s
identifies assesses addresses and mitigates supply chain risks. Custom conflict minerals audit checklists support conflict minerals policy and full accurate
on-site and document-based supplier coaching to build OECD-aligned internal controls. disclosure of smelter information
In 2025 the supply chain utilized 203 smelters all validated conflict-free and listed on the latest approved smelter
● Avary Holding Conflict Minerals Management System
roster delivering compliant materials. Surveys extend beyond 3TG (tantalum tin tungsten gold): EMRT covers
Reasonable cobalt and mica and AMRT covers other metals with full smelter origin disclosure shared with customers. 42
Conflict Minerals Country-of- Due Independent Public suppliers procured cobalt from 39 verified smelters; no suppliers sourced mica graphite or lithium in 2025.Governance Origin Inquiry Third-Party Diligence Verification Disclosure(RCOI)
Due DiligenceThe system adheres strictly to global standards requiring all mineral inputs to be sourced from RMI (Responsible The OECD “Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Minerals Initiative)-certified or customer-approved compliant smelters for traceable legal origins. Conflict Risk Areas” forms the backbone of Avary Holding’s due diligence framework. Responses from RCOI surveys are
minerals policies are published online for suppliers who are obligated to adopt matching internal policies and pass cross-verified against suppliers’ internal due diligence records to confirm smelter and refiner compliance and
requirements down to sub-suppliers. Avary Holding encourages suppliers to audit their own chains and source reliability across the chain.from smelters validated via RMAP (Responsible Minerals Assurance Process) or equivalent independent schemes
guaranteeing conflict-free feedstock for Avary Holding’s production. Independent Third-Party Verification & Public Disclosure
Responsible mineral sourcing and supply chain due diligence continue to expand. In 2025 CMRT (Conflict Avary Holding commissions annual independent third-party audits to validate conflict mineral declarations and due
Minerals Reporting Template) / EMRT (Extended Minerals Reporting Template) surveys were issued to 261 diligence workflows.suppliers and AMRT (Additional Minerals Reporting Template) surveys to 94 suppliers achieving a 100%
response rate for all. 2023 2024 2025
Indicators
Target Actual Target Actual Target Actual
Reasonable Country-of-Origin Inquiry (RCOI) Supplier Conflict-Free Commitment Sign-off Rate (%) 100 100 100 100 100 100
Supplier Survey Response Rate for Conflict Minerals (%) 100 100 100 100 100 100
Annual RCOI is performed to trace the origin of 3TG metals in EMS products and exclude conflict-region sources Compliant Smelter & Refiner Utilization Rate for Raw
Materials & Products (%) 100 100 100 100 100 100covering the steps below:
44About This About Avary Message from ESG Key Major Honors &
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Growth Production Workplace Founding Mission
● Status of Compliant Smelter & Refiner Product Responsibility
Utilization by Suppliers in 2025
Material Corporate High-Quality Development Philosophy & System Certifications
金Gold
Type 4 60
17 0 锡Tin
钴Cobalt Quality underpins the Company’s value reputation and fundamental survival. Since establishment the Company has obtained multiple system certifications
25 77 钨Tungsten including ISO 9001 IATF 16949 ISO 14001 ISO 45001 IECQ QC 080000 ISO 50001 TL 9000 and ISO 13485 alongside product safety certifications such as UL
203 钽Tantalum and CQC. Product quality remains the top priority with the goal of making AVARY synonymous with premium quality. The official quality policy is “Quality-云Mic母a Oriented Customer-Centric Full Staff Participation Innovation-Driven Continuous Improvement Win-Win Future”. This mindset is embedded across all tiers via
铜Copper internal notices quality campaigns and promotional posters.
39 镍Nickel
锂Lithium ● Avary High-Quality Development Framework
35
石Gra墨phite
Quality Strategy Make quality our priority make Avary synonymous with high quality.Smelter Geographic Quality is our bedrock. Customers come first. Everyone plays a part. Innovation fuels our drive. We never stop
Location Quality Guideline improving. Together we build a future where everyone wins.
113
15 A亚sia洲 Quality Policy Five No Principles: No design no procurement no inflow no manufacturing no output (defective products).
E欧uro洲pe
22
N北ort美h A洲merica Quality Goal Three Zeroes：Zero complaint zero rework zero defect.
203
S南out美h A洲merica
119 * Customer centricity is our priority earning the * In response to new platforms we keep pace with the times and
33 A非fric洲a trust of our clients. work together to build a robust quality defense.
O大cea洋nia洲 * We regularly conduct quality reviews engage in * Our goals are: no major customer complaints no repetition of
Quality Culture self-criticism and strive for continuous mistakes doing it right the first time and reducing defects by
improvement. half.* We hold a deep respect for quality treading * Quality is the foundation of value and dignity and it is the
● List of Compliant Smelters & Refiners Utilized in carefully as if on thin ice. lifeline upon which the survival of the company depends.Supply Chain in 2025
The Company collaborates with the Responsible Minerals Initiative Quality Assurance Framework
(RMI) to trace mineral origins across the supply chain. All smelters
and refiners disclosed on the list are actively utilized within Avary Quality forms the foundation of corporate value and survival. Upholding quality-first principles the Company has built a full-spectrum quality assurance system
Holding’s supply chain. For the most up-to-date roster of approved spanning supply chain management through after-sales service to guarantee product quality and lift customer satisfaction.smelters please refer to the official RMI website.
45Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Report Holding the Chairman Performance Recognitions
for Long-term Steady Stewardship & Green
Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
● Corporate Quality Assurance Framework Diagram
The Five No Principles governs all production factors (man machine material method environment). The
CAPDCA cycle drives ongoing improvement toward zero complaints zero rework and zero defects. Fully
Quality Assurance Architecture equipped physical and chemical laboratories verify incoming materials and finished goods against legal and
customer standards. Select labs at Shenzhen Huai’an and Qinhuangdao sites hold CNAS national
PM / R&D Design Pilot Run Mass Production accreditation enabling in-house reliability physical chemical and failure analysis testing.Product Feasibility Product & Process Product & Pilot Run & Mass Mass Production &
Planning Assessment Design & Process Production Continuous ImprovementDevelopment Validation Handover
Quality Management
Customer Specification Review (Customer Document Management)
Supplier Management Incoming Material Management
The quality management system centers on customer feedback and market intelligence integrating
Process Quality SPC Non-conforming Product Product Traceability
Management Management stakeholder demands and regulatory requirements into actionable quality KPIs and control standards. R&D
and operations adopt standards stricter than industry averages under the quality-first ethos. Cross-department
Mass Production Engineering Change
Reliability Testing MSA Instrument Calibration FA training and incentives engage every employee as a quality checkpoint. Consistent delivery of premium
products and services exceeding customer expectations boosts satisfaction and brand reputation supported by
Ok2ship / Shipment Report a self-perpetuating continuous improvement cycle that underpins sustainable high-quality growth.Product Realization Process
Green Products
To standardize product development and meet customer specifications and safety compliance requirements
product realization is split into 6 gated phases. As PCBs evolve toward multi-functionality ultra-thin profiles and eco-friendly construction Avary Holding
captures market opportunities via green design. Recyclable materials and low-impact manufacturing
processes are prioritized to develop modular functional PCBs with fast response and high sensitivity. These
No Design No Procurement No Inflow No Manufacturing No designs replace discrete conventional components conserve resources reduce full-device obsolescence from
Output (defective product) component failure extend product lifespans and enhance end-user experience.* DR3 Product & Process Validation
* DR0 Product Planning Phase Phase
* DR1 Feasibility Assessment Phase * DR4 Pilot Run & Mass Production
* DR2 Product & Process Design and Handover Phase
Development Phase * DR5 Mass Production & Continuous
Improvement Phase
46
Customer Quality Management
Customer
Customer
Product
DevelopmentAbout This About Avary Message from ESG Key Major Honors &
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Sustainability Innovation Empowers Empowering Employees Giving Back to Society
for Long-term Steady
Report Holding Stewardship & Green the Chairman Performance Recognitions Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Chemical Safety Management
Key applicable regulations include EU RoHS REACH EU POPs IEC 62474 US TSCA California Proposition 65
Full Lifecycle Chemical Management China RoHS and China Blue Sky VOC rules plus bespoke customer environmental specifications. The Company
actively monitors global local and customer requirements integrating them into the external document management
Management
Stage Control Item Details system for real-time compliance adjustment and risk mitigation.Hazardous
Substance Compliance with RoHS REACH EU POPs IEC 62474 TSCA Proposition 65
Identification China RoHS China Blue Sky Campaign Unit: Documents Newly Added Revised
Hazardous Internal procedure EPI12 for product & material environmental substance control;
Substance IECQ QC 080000 certification; centralized “Green Product Management Platform” 2025 Hazardous Substance Regulatory Compliance
Governance for compliance data Assessments 8 48
Chemical Phase-
Out ODS elimination roadmapFront-End 2025 Hazardous Substance Customer Requirement 21 79
Source Control Compliance Assessments
Design Stage New product development follows 4R principles (Reduce、Reuse、Recycle、Recovery) and EPI12-compliant eco-materials per customer specs Per applicable requirements internal procedure EPI12 governs environmental substance control for products and raw
materials.Chemical Preference for renewable low-carbon chemicals and eco-alternatives to phase out
Procurement & high-risk high-pollutant varieties; suppliers submit compliance documentation;
Incoming materials tiered high / medium / low risk with sampling testing; hazard identification
l Scope of EPI12 for product & material environmental substance control
and tiered risk assessment via supplier SDS documents
All chemicals clearly labeled. The Measures for the Management of Hazardous Restricted Substances in Products
Production & Chemical Operations SG-3B0-220EFH specifies instruments required for process
195
Usage compliance testing at high-risk workstations shall undergo cross-contamination
Monitored via supplier test reports and material declaration forms
In-Process validation tests for hazardous substances; process upgrades cut chemical consumption;
Chemical leak-proof pallets for storage / transport; full PPE provision for staff
Controls
Chemical Safety Emergency protocol SG-3B0-013 regular safety training occupational health 52 Reportable & Future Restricted Substances in Products
Operation checkups quarterly safety assessments workplace chemical concentration monitoring Declarations required for intentional addition or threshold exceedance
Testing & Material &
Verification Finished Goods Specialized compliance testing equipment; batch traceability for chemical usage;
Management Inspection transparent safety data disclosure to customers 40 Process Restricted Substances
End-of-Life Chemical Waste Focus on cleaning degreasing and release agentsChemical Waste Management Waste recycling resource recovery and compliant disposal of spent chemicalsControl
22 Process Reportable & Future Restricted Substances
Front-End Source Control Covers process chemicals excluding cleaners degreasers and release agents
The electronics industry evolves rapidly alongside rising consumer environmental awareness driving stringent Non-compliant materials are replaced promptly. Where technical constraints apply industry benchmarks are reviewed
hazardous substance regulations globally. Customers enforce stricter green procurement standards to protect and feasible solutions proposed to customers.ecosystems boost circular resource use and strengthen product market competitiveness.
47Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
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Growth Production Workplace Founding Mission
2025 Hazardous Substance Management Overview 2025 Controlled Substance Overview
Control Quantity
Category of Items Typical Examples
Control Quantity of
Category Items Typical Examples
RoHS 2.0 Benzene
Added ozong chemicals
Chlorine and its compounds Toluene Added PFAS heavy
(ODCs)
Bromine and its compounds Ethylbenzene metals xylene isomers
Arsenic and its compounds Xylene
Beryllium and its compounds Ethanolamine
309 Added 17 items Antimony and its compounds n-Hexane
including
Asbestos and its compounds n-Heptane items cyclododecane N-
REACH Annex XVII Dichloromethane Added 13 items including
Azo dyes aromatic amines and aniline derivatives Carbon Tetrachloride plasticizers endocrine ethylpyrrolidone N-
Short-chain medium-chain and long-chain disruptors flame retardants (hydroxymethyl)
chlorinated paraffins Trichloroethylene photoinitiators UV stabilizers acrylamide trioctyl
Organotin compounds 40 (restrictions Tetrachloroethylene isopropyl triphenyl phosphate Restricted Substances in Products trimellitate indium
for certain Reportable & Future Restricted Substances in ProductsPerchlorates Cyclohexane Process Restricted Substances compounds
Restricted Perfluorinated organics including PFOA PFOS Process substances Cyclohexanone Process Reportable & Future Restricted Substances methoxychlorSubstances in 195 and PFCA Restricted apply only to
Products Polycyclic Aromatic Hydrocarbons (PAHs) Substances cleaners Methanol
degreasers and
Radioactive substances release agents) N-Methylpyrrolidone (NMP)
Musk compounds n-Propyl Bromide (nPB) Chemical Phase-Out Program
Persistent Organic Pollutants (POPs) Ozone Depleting Substances (ODCs)
Ozone Depleting Substances (ODCs) Brominated Organic Solvents The Company continuously updates environmental controls in line with global green trends
Five TSCA-listed substances Chlorinated Organic Solvents regulations and customer specs. In 2024 an ODS elimination plan was launched aligned
PFAS Fluorinated Greenhouse Gases with the Montreal Protocol and Domestic ODS Regulations. Purchase of ODS refrigerants
Cyclododecane Phthalates
N-Ethylpyrrolidone Bis (chloromethyl) Ether (Freon) was fully banned by end-2025. Ice storage machines will be phased out by end-
N-(Hydroxymethyl) acrylamide Tricresyl Phosphate 2026 with full refrigerant replacement and equipment upgrade completed by end-2027.Trioctyl Trimellitate 2-Methoxyethanol Fluorinated greenhouse gas reduction runs in parallel to deliver on ozone protection and
Indium and its compounds 2-Ethoxyethanol climate commitments as core environmental responsibilities.Methoxychlor and related substances Volatile Organic Compounds (VOCs)
RoHS-exempt parts and assemblies Formaldehyde
Critical and strategic raw materials Hydrogen Fluoride Product Design & Procurement Controls
California Proposition 65 chemical list Ethylbenzene
Reportable & Process
Plasticizers Per- and Polyfluoroalkyl Substances Future Reportable All Avary sites have held IECQ QC 080000 hazardous substance process management (PFAS)
Restricted 52 Endocrine-disrupting chemicals & Future 22 certification since 2008. Core targets include steady hazardous substance reduction and
Substances in
Products Flame retardants
Restricted
Substances 100% regulatory / customer compliance for all materials and goods. A dedicated green
Photoinitiators product team establishes documented standardized workflows aligned with IECQ QC
UV stabilizers 080000 and customer specs.Isopropylated Triphenyl Phosphate
48About This About Avary Message from ESG Key Major Honors &
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Sustainability Innovation Empowers Empowering Employees Giving Back to Society
for Long-term Steady
Report Holding Stewardship & Green the Chairman Performance Recognitions Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
The Green Product Management Platform centralizes compliance data enforced alongside the Five No Chemicals are classified into 9 hazard categories per GHS standards with a centralized MSDS database and special
Principles for strict hazardous substance oversight. controls (e.g. segregated storage for potassium cyanide). Process chemistries are color-coded by type: red for acid blue for
alkali yellow for strong oxidizer white for neutral for visual error prevention. QR codes on each tank display internal part
New product development adheres to the 4R principle (Reduce Reuse Recycle Recovery) and customer number name spec batch and expiry date to eliminate mis-dosing.requirements with all eco-materials validated against EPI12 standards.Specialized testing equipment verifies no cross-contamination at high-risk production stations. Full PPE recurring safety
End-to-end lifecycle compliance rules apply to all materials and components. Pre-procurement vendor training and periodic workplace chemical concentration monitoring plus occupational health checkups protect frontline
assessments require full environmental documentation to verify conformance to regulatory customer and staff. Robust waste gas wastewater and solid waste treatment facilities maintain compliant emissions alongside chemical
internal standards with full health and environmental impact evaluations. Incoming materials are tiered high / recycling initiatives. Chemical Incident Emergency Response SOP SG-3B0-013 addresses spills and fires supported by
medium / low risk based on composition and historical performance with scheduled hazardous substance leak-proof storage pallets regular emergency drills and quarterly fire response training for rapid incident mitigation.sampling tests per risk tier.Testing & Verification Management
Internal and supplier self-audits are triggered by updated regulations or customer specs to sustain raw
material compliance. Tracked compliance KPIs for materials and finished goods met all 2025 targets. Laboratories house premium compliance equipment: XRF ICP GC-MS UV-VIS IC and other analytical tools for
scheduled testing of raw materials components and finished goods. All 2025 test results satisfied regulatory customer and
In-Process Chemical Controls EPI12 requirements.Full batch traceability logs all chemical inputs with transparent environmental safety data shared openly with customers.A closed-loop chemical management system covers requisition storage transport usage dispensing and
waste handling from incoming receipt to finished goods warehousing fully governed by SG-3B0-220EFH. 100% of revenue-generating products complied with EU RoHS IEC 62474 REACH EU POPs California Proposition 65
Every chemical container carries clear labeling with operational and safety guidelines. and all other applicable global standards in the reporting period; zero revenue stemmed from goods containing reportable
EU POPs substances.Renewable low-carbon chemicals and eco-substitutes are prioritized to phase out high-risk high-pollutant
chemistries. Examples include recycled-copper RC copper plating additives and non-flammable cleaners
replacing alcohol in fire-prone zones. Process optimization cuts chemical consumption: Qinhuangdao
upgraded MSAP ENIG to greener OSP; concentrated plating solutions mechanical defoaming and controlled
draining reduce defoamer and caustic neutralizer consumption.
49Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
End-of-Life Chemical Waste Control Continuous Improvement of Chemical
Safety Governance
Chemical waste management: The Company adheres to the principles of “waste reduction classification safe storage and legal removal”. Core procedures involve
identifying and separating hazardous and general wastes establishing dedicated sealed and labeled storage areas implementing limited issuance and registration The Company tracks regulatory updates via official
prohibiting mixed storage and engaging qualified disposal contractors for treatment and regulatory filing. Waste identification and classification: Waste properties are environmental portals government releases testing bodies
judged based on Safety Data Sheets (SDS). Hazardous wastes (toxic flammable corrosive etc.) are segregated from general wastes. Empty chemical containers shall be and customer communications with ongoing dialogue
managed as hazardous waste. Container requirements: Sealed resistant and leak-proof containers shall be used with clear safety labels affixed. Dedicated storage zone: A across customers suppliers and industry peers. Internal
dedicated waste staging area is equipped with ventilation spill containment bunds and fire-fighting equipment. Compatibility control: Incompatible hazardous chemicals procedures and staff training are updated routinely to sustain
(e.g. acids and alkalis) are strictly separated to prevent chemical reactions. Personnel management & training: Dedicated staff are assigned to record waste types and full environmental compliance.volumes in detail. Employees must wear appropriate PPE and receive training on emergency spill response. Legal removal & disposal: Licensed hazardous waste
operators are contracted for waste transportation and final treatment. Contractors’ qualifications and treatment capacity are verified prior to signing disposal agreements.Waste transfer manifests (official removal records) are completed and properly archived.Continuous Improvement
To achieve the quality targets of zero customer complaints zero rework and zero defects the Company formulates tiered quality targets by product category each year. Daily weekly and monthly meetings are held for tracking and review. Root
cause analysis and improvement countermeasures are implemented for underperforming items and dedicated teams are set up to drive improvements on major issues. In 2025 the Company achieved a 100% pass rate in external quality system
audits. The Company consistently rolls out various improvement activities and holds achievement presentation conferences. Incentive schemes encourage active employee participation strengthen cross-department collaboration steadily
improve staff’s problem-solving capabilities and innovation awareness and boost the standards of green product development and environmental management.● Case Studies of Internal Quality Control Circle (QCC) Activities ● Awards from External Quality Improvement Competitions
QCC activities cover a wide range of themes including quality enhancement (e.g. Voice of Business defect reduction) lead time
management cost control environmental protection and safety improvement.● Key Performance Highlights in 2025
Over 280 Over 700 Over 300 Over RMB 81 million
QCC teams team activities standardized countermeasurest tangible economic benefits
▲ Shenzhen Quality Circle Campaign ▲ Hebei Provincial Quality
- Excellent Enterprise in Quality Control Management
Circle Management – Grand Prize Achievement
50Integrity Management
About This About Avary Environmental Message from ESG Key Major Honors & Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Customer Service capture market trends and new product opportunities.“Exceeding customer expectations” is one of the Company’s long-term strategic goals. Centered on premium customized
manufacturing services the Company continuously upgrades equipment and technical capabilities and deeply engages in Leveraging a global multi-site manufacturing network the Company delivers flexible and efficient
customers’ early-stage product R&D and design to consolidate customer trust. The Company attaches great importance to customized manufacturing services under the integrated One Avary service platform fulfilling customers’
customer satisfaction and confidential information protection. The Company enhances core competitiveness by consistently one-stop procurement needs and deepening long-term strategic partnerships.improving product quality and service value striving to become a long-term trusted strategic partner for customers. Inquiries
regarding quality (including hazardous substance management) and engineering technology can be submitted via the official Product Labelling
website. The Company manufactures printed circuit boards in strict accordance with customers’ supplied materials
components and design documents complying with production control and quality management system
Customer Service Team standards. Upon shipment supporting documents including material names composition data environmental
The Company values customer feedback highly and has established a dedicated cross-functional customer service team. Customer test reports (complying with RoHS HF REACH and other regulations) and safety compliance certificates are
demands are received via telephone email and multiple communication channels to guarantee timely response and confirmation. provided together with goods. Standardized outer packaging labels facilitate customer identification and
traceability. In 2025 100% of products were labelled based on actual test results and customer specifications
The Company targets customers precisely based on core product application sectors and provides localized professional services and all raw materials supplied complied with EU RoHS directives.for domestic and overseas regions. The Customer Quality Assurance (CQA) department acts as a dedicated channel for customer
complaints responsible for complaint acceptance internal and external coordination and feedback. The Company collaborates Customer Satisfaction
with relevant departments under the 8D problem-solving process to respond to and resolve customer quality concerns efficiently.The Company has established a regular customer satisfaction management mechanism. At least one customer
● Standard Customer Service Process satisfaction survey is conducted annually to systematically monitor and evaluate customer feedback covering
product quality (including environmental compliance) delivery performance engineering capacity service
Long- and cost. Root cause analysis is carried out for unsatisfactory items with corrective and preventive actions Customer Problem Short- Root term Effectivenfeedback term ess Process
Result
reporting implemented to continuously optimize services and operations for higher customer satisfaction.submissio verificatio corrective cause preventiv verificatio standardiz
n n
to
actions analysis e ationsolutions n customer
● Survey Coverage & Process
Premium Customized Manufacturing Services
The Company mainly serves world-renowned electronics brands and leading global EMS manufacturers delivering one-stop
Product quality Delivery
services ranging from rapid design and prototype development to high-volume mass production. This helps customers shorten (including environmental performa Identify gaps and
product launch cycles seize market opportunities and realize an operation model focused on Time to Market Time to Volume compliance) nce launch improvements
Analyze survey data
Time to Money and expanded market share. Engineering Service Cost Distribute and collect questionnaires
capacity
Define survey scope
To ensure products meet customer requirements the Company collaborates with customers on joint development from the early
product design phase. The Company continuously strengthens its technical platforms and R&D capabilities to accurately 51About This About Avary Major Honors &
Integrity Management Environmental
Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
for Long-term Steady
Report Holding Stewardship & Green the Chairman Performance Recognitions Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Initiatives to Boost Customer Satisfaction
● Four dimensions for continuous customer satisfaction improvement Customer Satisfaction Survey Results
Establish review benchmarks
The average customer satisfaction score in the 2025 Satisfied Customer Ratio
Set customer satisfaction targets categorized by survey indicators (product quality including (Benchmark: Score ≥ 80)
environmental compliance delivery performance engineering capacity service and cost) and survey reached 93.4. Targeted improvements have been 98.0%
conduct ongoing reviews to address unmet targets implemented to address weak points and deepen
customer relationships. The average satisfaction score
Targeted review and improvement 97.6%target for 2026 is set at 93.5 based on actual operational
Prioritize review and optimization of items with negative feedback and customer suggestions conditions. 97.0%
until customer requirements are fully satisfied
The 2025 target proportion of satisfied customers
Benchmark against competitors
(defined as a score of 80 or above) was 97.0% while
Analyze competitors’ strengths and adopt best practices to drive satisfaction enhancement
the actual achievement hit 97.6%. To further lift overall
customer satisfaction the target for 2026 is set at 98.0%.Digital systematic management
Develop an electronic customer satisfaction survey system with a dedicated appeal mechanism to 2025 2025 2026
monitor real-time feedback and support satisfaction improvement Target Actual Target
● Quality Event Case
Corporate Quality Achievement Sharing Conference
In November 2025 the Company held the Quality Achievement Sharing Conference attended by over 300
supervisors from all departments QA and manufacturing divisions.During the conference the head of the Corporate Quality Assurance Division delivered a keynote speech onquality requirements for the new era: “Intelligent Quality Control Quality Leading the Future AIEmpowerment to Usher in a New Quality Era”. The list of outstanding teams and individuals for the 2025
quality campaign was announced followed by closing remarks from each business unit leader.The conference serves as a platform for employees to share improvement outcomes and exchange experience.Outstanding performers are recognized to strengthen company-wide quality awareness and foster a robust
corporate quality culture.
52This chapter addresses the double materiality topics. Resource & Circularity. Water Resource
Management. Climate and Energy.The Company establishes the ESG Development Committee which is directly subordinate to the Board of
Directors as the highest decision-making and governance body for environmental management comprehensively
spearheading the Company’s environmental issue management through a top-down approach. The core mandates
of the Committee encompass formulating environmental management policies and targets supervising the
execution of environmental initiatives tracking and reviewing operational efficacy and driving continuous
Governance optimization and improvement.Under the ESG Development Committee the Environmental Protection & Energy
Conservation Working Group is established to assume the concrete executive functions of environmental
management. The Task Force is responsible for formulating specialized environmental management work plans
periodically compiling and analyzing environmental performance data and submitting relevant achievements and
operational status reports to the ESG Development Committee for review and deliberation thereby forming a
comprehensive seamless and high-efficiency environmental governance and management matrix.Upholding the Life-Cycle Green Management Philosophy the Company anchors its core strategic pillars acrossseven key dimensions: “Green Innovation Green Procurement Green Production Green Logistics Green ServicesGreen Reclamation and Green Living.” Through these pillars the Company constructs an all-inclusive green
development ecosystem spanning R&D supply chain manufacturing logistics services circular utilization and
employee livelihoods.By strategically synthesizing top-down blueprints with full-workforce participation the
Company systematically and deeply integrates green principles across all operational pipelines - including product
Strategy R&D and design supply chain management manufacturing processes logistics and distribution customer services and resource recycling and reuse. Furthermore the Company actively guides all employees to practice green and
low-carbon behaviors across diverse scenarios such as manufacturing operations and office daily life. The Company
comprehensively deploys critical initiatives focused on energy conservation consumption reduction pollution
reduction and carbon mitigation resource conservation efficiency elevation and waste valorization. Through this
systematic full-chain and workforce-wide green development modality the Company continuously reinforces its
green manufacturing capabilities and low-carbon operational proficiency driving the Company’s green high-
efficiency evolution.Indicator 2025 Performance
Wastewater Recycling Rate 50.4%
Indicator and
Facility-Wide Water Reclamation Rate 42.3%
Performance Waste Valorization and Material Recycling Ratio 94%
Annual Carbon Emission Reductions 730Kilotons
Note: For granular details please refer to the Material Topic Management Targets & Performance – Environment Dimension
Sustainable Management Governance and StrategyIntegrity Management
About This About Avary Environmental Message from ESG Key Major Honors & Sustainability Innovation Empowers Empowering Employees Giving Back to Society
for Long-term Steady
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Growth Production Workplace Founding Mission
Environmental Sustainability On the manufacturing front the Company executes rigorous source-reduction measures including water conservation and chemical reagent optimization. Through granular precision management the deployment of cutting-edge green technologies the
Environmental Protection Policy definition of strict departmental accountability and the institutionalization of environmental KPIs the Company significantly minimizes its environmental footprint achieving synchronized energy-efficiency gains and closed-loop green circularity.As a global leader in the printed circuit board (PCB) industry the Company profoundly recognizes Concurrently the Company attaches strategic importance to the impacts of climate change on corporate business resilience
proactively deploying carbon reduction actions and expanding the scope of its mitigation initiatives to secure its long-term
the strategic challenges that climate change poses to corporate operations as well as the paramount
greenhouse gas reduction targets.importance of green development to overall sustainability. Since the inception of its dedicated
Environmental Protection and Energy Conservation Department in 2007 the Company has ▓ “Avary Seven Greens”
consistently focused on the strategic planning and rigorous management of environmental and
energy initiatives. The Company remains unswervingly committed to elevating energy and resource
utilization efficiency minimizing carbon emissions and waste streams and introducing pioneering To steadily attain its long-term greenhouse gas reduction targets the
Company aggressively deploys robust decarbonization levers
energy-saving technologies to accelerate the enterprise’s transformation toward green excellence. Green Green including the development of utility-scale solar photovoltaic (PV)The Company’s ultimate objective is to establish a “Demonstration Production Base for New Existence Innovation installations and the procurement of market-based green electricity.Environmental PCB Standards” positioning itself as a premier promoter and industry benchmark for
1) The Company drives its major upstream suppliers to conduct
environmental sustainability. For granular details please refer to the charter: Avary Environmental rigorous Greenhouse Gas (GHG) Inventory Accounting and provides
Policies and Commitments. hands-on consultancy to facilitate their establishment of ISO
international standard management systems. This systematically
Green Actions Green deepens upstream green supply chain management and expands the
▓ Corporate Environmental Policy Statement on Recycle Chain of Supply Company’s green ripple effect across the electronics industry eco-system.
2) The Company actively participates in the prestigious CDP evaluation
Prevent pollution continuously mitigate waste and deliver for both “Climate Change” and “Water Security.” This enables the
environmentally-compatible products. Company to benchmark carbon and water stewardship best practices against world-class peers while transparently communicating its
Conserve energy safeguard the planet and pragmatically green development philosophy and environmental performance to
operate a green enterprise. Green Green global capital markets. (Note: The Company’s detailed climate
Service Production change and water resource management disclosures have been seamlessly consolidated into the aggregate CDP reporting boundary
Corporate Green Culture of its indirect holding parent Company Zhen Ding Technology).Green 3) The Company officially adopts and incorporates the governance
In 2008 the Chairman of the Board Mr. Shen Qingfang pioneered the forward-looking philosophy Logistics architecture and risk-response management matrix of the Task Force
of the “Avary Seven Greens”. This strategic framework comprises seven core pillars: Green on Climate-related Financial Disclosures (TCFD) into its core
operational risk control system.Services Green Production Green Living Green Supply Chain Green Innovation Green 4) The Company conducts highly rigorous evaluations and stress-
Reclamation and Green Logistics. Through the “Avary Seven Greens” matrix the Company testing of its medium-and-long-term carbon reduction pathways by
comprehensively guides its workforce across all operational and behavioral dimensions - from direct reference to the scientific methodologies of the Science Based
shop-floor manufacturing to daily habits - to meticulously scrutinize and analyze methodologies for Targets initiative (SBTi).energy conservation consumption reduction pollution mitigation and efficiency enhancement
thereby systematically advancing green workflows. All of the Company’s primary industrial parks have successfully passed and maintained third-party certifications and audits for
international environmental management systems. For granular details please refer to the charter: Overview of Certified
By optimizing the classic PDCA cycle into a refined CAPDCA management loop and leveraging Management Systems.cross-functional collective intelligence the Company deeply integrates these green principles into
daily workflows and production routines. This continuously cultivates instinctive green habits Environmental Financial Investments
among employees constructing a highly unique corporate green culture. The professional
engineering teams from the Environmental Protection and Energy Conservation Department The Company is permanently dedicated to the R&D pilot testing and commercialization of advanced environmental technologies
collaborate seamlessly with all business units to spearhead this Green Vision Blueprint designed for energy conservation chemical reagent optimization zero-liquid discharge / emission mitigation and the enhancement
implementing comprehensive optimization measures for energy conservation water stewardship of water resource reclamation rates to minimize the ecological footprint of corporate operations and drive industrial sustainable
and waste lifecycle management across the three critical stages: source-rectification process- evolution. In 2025 the Company’s environmental financial ledger is disclosed as follows: Environmental Capital Expenditure
control and end-of-pipe mitigation. (CapEx) reached RMB 257.391 million while Environmental Operational Expenditure (OpEx) stood at RMB 314.358 million.
54About This About Avary Message from ESG Key Major Honors &
Integrity Management Environmental
Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
▓ Environmental Financial Ledger in 2025 (RMB million) Global Warming Mitigation
Project Cost Climate change stands as one of the most critical environmental challenges facing global society. The historic Paris Agreement
established a global mandate to hold the increase in the global average temperature to well below 2℃above pre-industrial levels
Direct Environmental Impact Mitigation Investment:This encapsulates all capital and to pursue efforts to limit the temperature increase to 1.5℃.mobilized for pollution prevention and control resource consumption optimization and RMB 213.283
the specialized processing treatment and recycling of hazardous and non-hazardous million The Company is unswervingly committed to constructing a robust corporate climate risk management mechanism and systemic
industrial waste streams. adaptive resilience proactively mitigating climate-related risks while strategic unlocking emerging green opportunities.Climate-Related Policies and Targets
Indirect Environmental Impact Mitigation Investment / Environmental Management
Overheads: This comprises expenditure allocated for environmental education and In active response to the global 1.5℃ temperature control initiative and by seamlessly synthesizing localized regulatory mandates
intensive training ISO environmental management system (EMS) certifications RMB 40.792 with the corporate sustainable growth strategy the Company has formulated a rigorous Climate Change Management Strategy and
comprehensive environmental monitoring protocols the procurement of eco- million clear Green Development Targets. We aggressively accelerate greenhouse gas (GHG) reduction workflows and reference standards
compatible products dedicated environmental task force and organizational operations such as the Science Based Targets initiative (SBTi) to evaluate diverse decarbonization pathways aiming for 100% renewable
and targeted green R&D initiatives. energy procurement and the absolute realization of our 2050 Net-Zero Emissions Commitment.Climate Change Adaptation Investment RMB 3.316 Management Core Strategy Strategic Targetsmillion
Execute rigorous ISO 14064-1 Greenhouse Gas Achieve a 32% carbon reduction via green energy by 2030 while actively challenging a
Environmental Operational Expenditure / OpEx RMB 314.358 million inventory accounting across Scope 1 Scope 2 and
52% reduction target aggressively progressing toward the 2050 Net-Zero horizon.
Scope 3 backed by independent third-party
verification. Continuously scale low-carbon manufacturing to secure the 2026 green emission target:
Aggregate Environmental Capital & Operational Expenditure RMB 571.749 reducing Scope 1 and Scope 2 GHG emission intensity by 40% or more per unit of million Continuously accelerating and scaling up diverse revenue (utilizing 2013 as the historical baseline year).engineering initiatives focused on structural energy Clean Energy Procurement: Transition directly to clean and renewable energy; the
Environmental Regulatory Compliance Driving Low- conservation and carbon mitigation.Carbon Green Company has successfully secured 1.282 billion kWh of green electricity in 2025.Manufacturing Actively participate in the CDP and S&P Global
Corporate Sustainability Assessment (CSA) Propel existing project efficiencies and introduce pioneering energy-saving technologies
The Company rigorously enforces regulatory compliance collecting and treating all industrial waste disclosures. (including total-heat recovery chillers maglev blowers permanent magnet motors air
emissions (wastewater exhaust gas and solid waste) in strict accordance with statutory frameworks while compressor waste heat recovery systems line-integrated energy-saving air knives
systematically curbing environmental pollution through manufacturing process optimization. The Executing a holistic decarbonization strategy
chemical recycling and motor harmonic testing optimization).Company has institutionalized a real-time regulatory intelligence mechanism to monitor government through a multi-faceted approach seamlessly
integrating energy conservation green energy Continuously accelerate green upgrades and circular economy closed-loops (such as the
statutes and policy dynamics periodically evaluating the operational compliance posture of each industrial deployment and advanced energy storage systems. Gold Circularity and Copper Circularity frameworks) to transition toward an excellent
park. In 2025 all corporate industrial parks achieved 100% compliance with all applicable environmental green enterprise.mandates.Execute rigorous ISO 14064-1 Greenhouse Gas Achieve a 32% carbon reduction via green energy by 2030 while actively challenging a
inventory accounting across Scope 1 Scope 2 and 52% reduction target aggressively progressing toward the 2050 Net-Zero horizon.To deepen regulatory literacy across the workforce executives from the Environmental Protection Scope 3 backed by independent third-party
Department and the Human Resources Department conduct regular mandatory environmental education verification. Continuously scale low-carbon manufacturing to secure the 2026 green emission target:
reducing Scope 1 and Scope 2 GHG emission intensity by 40% or more per unit of and energy-conservation technical briefings for operational personnel. The curriculum encompasses revenue (utilizing 2013 as the historical baseline year).comprehensive reviews of environmental statutes statutory declaration workflows and auditing Continuously accelerating and scaling up diverse engineering initiatives focused on structural energy
methodologies. This reinforces internal environmental management governance sharpens employees’ Driving Low- conservation and carbon mitigation. Clean Energy Procurement: Transition directly to clean and renewable energy; the
green competencies and guarantees that the Company’s environmental metrics stably exceed regulatory Carbon Green Company has successfully secured 1.282 billion kWh of green electricity in 2025.baselines. Manufacturing Actively participate in the CDP and S&P Global
Corporate Sustainability Assessment (CSA) Propel existing project efficiencies and introduce pioneering energy-saving technologies
disclosures. (including total-heat recovery chillers maglev blowers permanent magnet motors air
Furthermore the Company continuously introduces high-efficiency infrastructure and cutting-edge compressor waste heat recovery systems line-integrated energy-saving air knives
technologies to step up wastewater reclamation rates minimize total waste yields and continuously Executing a holistic decarbonization strategy chemical recycling and motor harmonic testing optimization).optimize manufacturing processes aggressively driving the “Avary Seven Greens” framework to secure its through a multi-faceted approach seamlessly
Continuously accelerate green upgrades and circular economy closed-loops (such as the
position as an industry benchmark. integrating energy conservation green energy deployment and advanced energy storage systems. Gold Circularity and Copper Circularity frameworks) to transition toward an excellent green enterprise.
55Major Honors & Integrity Management About This About Avary Message from ESG Key Sustainability Innovation Empowers Environmental Empowering Employees Giving Back to Society
Report Holding the Chairman Performance Recognitions
for Long-term Steady
Management Quality Assures Stewardship & Green & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Climate Change Adaptation Management ▓ Climate Change Laurels and ESG Rating Benchmarks
The Board of Directors maintains ultimate oversight of climate-related risks and opportunities. It explicitly mandates the ESG Development Committee to centrally orchestrate
organizational personnel for the supervision of climate risk management. The Board-level ESG Development Committee is held accountable for reviewing and deliberating the
The Board of Directors implementation status of climate change initiatives. On an annual basis the Committee designates specific project directors to report directly to the Board regarding the strategic orientation and operational trajectory of climate change issues the continuous monitoring of climate risk events the auditing of energy-conservation and carbon-mitigation
Governance targets alongside corresponding annual fiscal budgets and the evaluation of execution outcomes. Furthermore the Committee is empowered to deliberate and pass resolutions
on major environmental capital investment projects such as certified green buildings.Framework
The Chairman of the Board The Chairman of the Board serves as the Convener of the ESG Development Committee and holds absolute executive accountability as the Highest Officer in Charge of
Corporate Climate Action Index (CATI) Ranking: Ranked No. 7
Climate Risk Management. across the global IT / ICT industry sector
Green Supply Chain CITI Index Ranking: Ranked No. 6 across
Development Committee The Committee designates and empowers the Corporate Governance Working Group and the Environmental Protection & Energy Conservation Working Group as the the global IT / ICT industry sector
Corporate Governance specialized administrative units responsible for climate risk management. These task forces are collectively mandated to systematically evaluate and manage climate-related
Working Group risks and opportunities analyze emerging international climate trends deeply investigate stakeholder expectations and strategically blueprint climate-related adaptation policies and execution programs. The Environmental Protection & Energy Conservation Working Group periodically reports to the Chairman of the Board to review the operational
Environmental Protection & status of management programs conducting deep-dive discussions to drive strategic executive decisions. Concurrently the Environmental Protection and Energy Conservation A Level
Energy Conservation Working Task Force convenes the specialized “Seven Greens Meeting” on a quarterly basis. This cross-functional assembly is structurally responsible for propelling energy-saving
Group initiatives across all industrial parks and conducting rigorous auditing reviews of departmental KPI completions thereby minimizing greenhouse gas emissions and actively B Level mitigating global climate change.Operational Decarbonization Timeline CDP Climate Change 2024 2025
Disclosure Rating:
2008202020222024
* Pioneered the signature “Avary Seven Greens”
corporate philosophy and constructed a dedicated * * Climate-Related IncentivesInitiated the formal adoption and integration Advanced green power allocation to secure 978 million
platform to systematically execute environmental of the Task Force on Climate-related * Successfully procured and verified 36 kWh of green electricity.conservation and energy-efficiency initiatives. Financial Disclosures (TCFD) risk-response million kWh of green electricity. * Continuously scaled up the deployment of rooftop solar The Company has systematically integrated critical
* Initiated the corporate Greenhouse Gas (GHG) architecture. arrays pushing the cumulative solar PV capacity to 5.07
accounting program under the ISO 14064-1 standard MW. environmental and climate-related key performance
successfully achieving a 100% verification and
certification rate across designated boundaries. indicators (KPIs) into its performance appraisal
architecture to reinforce managerial accountability and
* Achieved a record renewable energy procurement operationalize its low-carbon transition; specifically a
* The Shenzhen Industrial Park officially integrated into the * Scaled green electricity procurement to 0.76 landmark of 1.282 billion kWh of green electricity.Shenzhen Carbon Emissions Trading (ETS) Pilot Program. * Officially signed on to and endorsed the billion kWh * Executed an aggressive infrastructure expansion designated portion of the variable compensation for
* Deployed and fully operationalized the centralized international TCFD Supporter Initiative * Expanded on-site utility-scale solar photovoltaic program hyper-scaling cumulative solar PV
Corporate Energy Management Platform to track real-time publicly aligning corporate strategy with global (PV) generation infrastructure to a cumulative generation capacity to 17.9 MW. senior executives is directly linked to corporate
resource loads. climate disclosure mandates. capacity of 4.4 MW. * Officially initiated the structural adoption and
* Successfully achieved third-party certification under the integration of the Task Force on Nature-related environmental performance encompassing metrics such
ISO 50001 Energy Management System standard. Financial Disclosures (TNFD) framework expanding
corporate risk governance to encompass ecological as total volume of reclaimed water and consumption rates
2013 2021 2023 2025 and biodiversity materiality. of green electricity while environmental and energy
management professionals are evaluated based on their
specific spheres of responsibility with performance
Core Materiality Briefing: Environmental Stewardship Report to the ESG Development Committee assessments tied directly to the attainment of
environmental targets and the lifting of energy efficiency
* Stakeholder Engagement * Strategic planning for medium-and-long-term climate change adaptation pathways systematically thereby systematically driving medium-to-long-term
* Strategic Alignment with United Nations Sustainable Development Goals: reinforcing systemic climate risk assessment capabilities and physical hazard defense infrastructure.Report - Strategic disclosure of the Company’s comprehensive Water Resource Management Policies facility-wide Forward- * Continuously expanding the scope and installed capacity of on-site solar PV projects unswervingly
climate action and continuous environmental
reclamation metrics and granular contributions toward international sustainable water security milestones. committed to aggressively driving up the proportional consumption of zero-carbon green electricity.ing - Systematic tracking of the Corporate Waste Valorization Policies non-hazardous and hazardous industrial Looking
performance optimization. Furthermore the Company
* Sustaining the aggressive introduction of advanced energy-saving technologies and high-efficiency
waste recycling efficiencies and the actualized metrics of material loops. Green manufacturing equipment to unlock incremental carbon mitigation performance and maximize actively encourages all employees to contribute to Period - Climate change strategies and the management policies performance and sustainability goals for industrial energy efficiency.greenhouse gas emissions. * Accelerating resource conservation and industrial circularity through the R&D of source-reduction environmental and operational improvements through a
Perfor * Recommendations on Joining International Initiatives Development methodologies absolute realization of a 100% recycling and reclamation rate for precious metals
* Performance of Renewable Energy Utilization and Solar Projects & Horizon and systematic lifecycle scalability evaluations.formalized proposal system that solicits grassroots
mance * Green Honors and Accolades Received * Maintaining a strict regulatory target of securing a facility-wide wastewater recycling rate suggestions for energy conservation carbon mitigation
* Energy-Conservation and Carbon-Mitigation Plans for the Green Supply Chain Planning exceeding 50% ensuring the Company permanently retains its leadership position as an industry
* Promotion of Green Philosophies and Active Engagement in Advanced Environmental Organizations benchmark. and efficiency elevation rewarding verified outcomes or
Associations and Alliances * Enhancing green supply chain governance by continuously executing rigorous ESG risk
* Sharing and Recommendations of Climate Change Strategies Mapping Transition and Physical Risks assessments across upstream supplier cohorts accelerating collaborative environmental projects exceptional proposals with financial bonuses and
alongside Corresponding Countermeasures and driving the transition toward a highly responsible resilient value chain. corporate commendations to fully support the Company’s
net-zero and sustainable transformation objectives.
56Integrity Management
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for Long-term Steady
Report Holding Stewardship & Green the Chairman Performance Recognitions Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Strategy Impact Severity Definition and Application
In alignment with the Task Force on Climate-related Financial Disclosures (TCFD) framework the Company categorizes the
projected horizons for climate-related risks and opportunities into short medium and long terms mapping their subsequent Negative Impact Assessment
impacts on organizational operations strategy and financial planning:
* Short-Term (1-2 Years): Focuses on immediate operational adaptations and policy alignments serving as the launchpad for To evaluate the potential adverse effects brought about by climate risks the Company’s impact severity
major strategic realignments or pilot programs. scoring matrix encompasses five core dimensions: Financial Operational Human Resources
Regulatory Compliance and Reputation. It utilizes a five-tier rating scale calibrated from severe impact
* Medium-Term (3-5 Years): Acts as the critical implementation phase that paves the way for long-term strategic decisions.to minor impact sequentially categorized as: High Medium-High Medium Medium-Low and Low.* Long-Term (6+ Years): Serves as the designated horizon for capturing interim milestones on the pathway toward the “2050Net-Zero Emissions” commitment.Financial：Graded according to financial loss ratios such as the percentage of monthly revenue affected or
To assess potential financial and operational impacts under divergent climate futures the Company utilizes the SSP1-2.6and the overall annual financial impact percentage.SSP2-8.5 scenarios developed by the Intergovernmental Panel on Climate Change (IPCC) for physical risk scenarios alongside Operationa：Graded by the number of consecutive days core operations are disrupted and the
Nationally Determined Contributions (NDCs) scenarios for transition risk scenario analysis. subsequent reduction magnitude in production capacity.Human Resources：Graded based on workplace fatalities employee absenteeism ratios and
Material Climate Risk and Opportunity Identification urgent medical intervention or healthcare requirements.Regulatory Compliance: Graded by the severity of regulatory fines government-mandated work stoppages
Referencing the specialized climate risk taxonomies outlined in the 2017 Recommendations of the Task Force on Climate- statutory non-compliance violations and formal corrective action / improvement requirements.related Financial Disclosures published by the Financial Stability Board (FSB) the Company evaluates its exposure across
current regulations emerging regulations technology compliance markets reputation and acute / chronic physical risks. Reputation: Graded by the extent of negative media coverage the volume of customer complaints and the overall degradation of brand image.Through this process the Company systematically identifies material risks and opportunities impacting both its direct
operations and the upstream / downstream value chain. To facilitate long-term tracking and guarantee the efficacy of climate
governance these climate change risks have been seamlessly integrated into the Company’s preexisting enterprise risk Positive Impact Assessment
management (ERM) framework.To evaluate the beneficial effects brought about by climate opportunities the impact severity scoring
Risk Likelihood Matrix: Definition and Application matrix similarly utilizes a five-tier rating scale calibrated from substantial impact to minor impact
sequentially categorized as: High Medium-High Medium Medium-Low and Low.The Company determines the probability of climate events using a five-tier rating scale calibrated across three core
determinants: Policy / Regulatory Progress Stakeholder Demands and Event Frequency. Financial：Graded according to financial gain ratios such as the percentage of revenue increase market share expansion or operational cost reduction.* High: Policies are officially promulgated and actively enforced; clear explicit mandates have been issued by the majority of
stakeholders; event frequency is high. Operation：Graded by the enhancement of operational efficiency scaling of production capacity or the
systematic structural reinforcement of supply chain resilience.* Medium-High: Policies are officially promulgated but have not yet been fully enforced; clear explicit demands have been
made by primary stakeholders; event frequency is moderately high. Human Resources：Graded based on the elevation of workforce competencies enhanced capability to
* Medium: Policies do not yet directly impact the Group but impacts are anticipated upon future scope expansion; inquiries attract top-tier talent or the systemic improvement of the workplace environment.have been made by primary stakeholders while explicit demands have been issued by non-primary stakeholders; event
Regulatory Compliance：Graded by the acquisition of regulatory incentives subsidies or policy bonuses
frequency is moderate. resulting from early alignment with new standards alongside the direct reduction of compliance costs.* Medium-Low: Relevant policies are still in the drafting or formulation stage; preliminary inquiries have been raised only by
non-primary stakeholders; event frequency is occasional with isolated probability. Reputation: Graded by the amplification of corporate brand value the elevation of social responsibility image and the measurable increase in positive media coverage.* Low: No relevant policies exist or are under development; no demands or inquiries have been registered by any stakeholders;
event baseline probability is low.
57Integrity Management
About This About Avary Environmental Message from ESG Key Major Honors & Sustainability Innovation Empowers Empowering Employees Giving Back to Society
for Long-term Steady
Report Holding Recognitions Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Climate Risk Matrix
High Renewable Energy Regulations
Medium-
High GHG Regulations
Impact Energy Conservation (Power Rationing) * Water Resource Regulations * Extreme Cold Events * Upstream Supply Chain Poor Adaptation Capability
Severity Medium Regulations * Energy Conservation Regulations * Downstream Low-Carbon Eco-Friendly Product * Low-Carbon Technology Investment Risks * Heavy Rainfall / Flooding Demands
Medium-
Low Extreme High Temperatures / Drought Upstream Raw Material Disruption or Rising Costs
Low Investment - ESG Ratings Performance
Low Medium-Low Medium Medium-High High
Likelihood
Climate Opportunity Matrix
* Diversified Business Operations
High * Participation in Carbon Emissions Trading
Markets
* Adoption of More Efficient
Medium- Production and Distribution Processes * Resource Substitutability and Diversity
Impact High
* R&D and Innovation of New * Recycling and Reclamation Cycles
Severity Products / Services
Medium Securing Insured New Industries or New Sites Adoption of New Technologies
Utilization of Low-Emission
Energy
Medium- Responding to Shifts in Consumer Participation in Renewable Energy Initiatives &
Low Preferences Energy Efficiency Optimization
Low
Low Medium-Low Medium Medium-High High
Likelihood
58Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
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Growth Production Workplace Founding Mission
Climate-Related Risk Descriptions & Response Strategies
Category Topics Identified Risk Issue Operational Impact Time Horizon Likelihood
Impact
Severity Risk Management
Strict national policies and regional mandates at manufacturing nodes are
continuously ratcheting up mandatory renewable energy consumption quotas
and tightening facility equipment energy-efficiency thresholds. Increased * Proactively optimize and adjust the energy structure and partner with
Renewable Energy Operational Costs
Regulations To remain fully compliant the Company must retire legacy manufacturing Increased Short-Term
power supply companies to sign long-term cooperation agreements in
High advance to guarantee the supply of renewable energy.equipment prematurely and navigate mandatory purchasing frameworks for Expenditures Medium-High * Research renewable energy development projects and initiate
zero-carbon power. Facing potential utility-scale renewable supply crunches cooperation negotiations ahead of schedule.and subsequent surging market tariffs this risk threatens to drive up corporate
operational expenditures (OpEx) and capital expenditures (CapEx).The Shenzhen facility is a regulated enterprise under the Shenzhen Carbon
Emissions Trading Pilot Market subject to mandatory carbon accounting * Continuously conduct ISO 14064 greenhouse gas verifications to
verifications and emissions trading with defined carbon intensity caps based maintain compliance certifications and formulate reasonable carbon
Greenhouse Gas (GHG) on emissions per unit of industrial value added. Increased
Regulations Expenditures Medium-Term High Medium-High
management targets.* Study regulatory and market trends and collaborate with international
If future carbon emissions exceed the freely allocated allowances the organizations to develop advanced carbon management schemes.Policy & Company must purchase carbon credits on the open market which may * Actively participate in the carbon emissions trading market.Regulatory increase operating costs and escalate expenditures.Transition Risks * Implement water conservation measures including wastewater
reclamation workshop water reuse and process-engineering water-
Water Resource There are currently no statutory laws or regulations governing water Increased operating
Regulations withdrawal water supply water consumption or water recycling. Competent costs and
saving initiatives.authorities currently use an encouragement-based approach leaving operational
Long-Term Medium Medium * Adopt advanced management systems such as the Clean Water Program
enterprises to manage water voluntarily. disruptions. (CWP) and the Alliance for Water Stewardship (AWS) standard.* Monitor water consumption metrics and conduct regular reviews to
eliminate waste and continuously improve water utilization efficiency.* Implement power-saving measures including production equipment
energy conservation and automated water and power shut-offs during
There are currently no electricity conservation or power rationing regulations Increased operating idle periods.Energy Conservation applied to the Company’s industry sector. However the Company may face costs and * Deploy advanced energy-efficient machinery such as permanent magnet
(Power Rationing) power shortages and restricted production hours in the future such as operational Long-Term Medium-Low Medium synchronous motors (PMSM) and magnetic levitation chillers.Regulations mandated electricity restrictions during peak hours for operations with low disruptions. * Promote an energy management platform to monitor equipment
output value per unit of energy consumption. utilization rates and automatically analyze the rationality of energy consumption.* Track electricity consumption metrics and conduct periodic reviews to
continuously improve energy use efficiency.Driven by extreme weather events and shifting market supply-and-demand
Upstream Raw Material dynamics shortages in upstream chemical raw materials can lead to raw Increased operating
Supply Chain Disruption material price hikes and transport standstills causing delays in raw material costs and reduced Long-Term High Medium-Low
shipments and subsequent downstream production. revenue. * Establish a second source to avoid single-vendor supply risks ensure
smooth supply flows and enhance bargaining power and service levels.Market To combat global climate change the upstream supply chain has scaled up * Provide real-time market price trends and the financial impact of raw
investments in energy conservation and carbon reduction which increases material price hikes to enable the sales team to propose price increases
Upstream Raw Material supply chain operational costs and raises product selling prices. Concurrently Increased operating to customers.Cost Escalation global investments in green energy development and regulatory mandates for costs. Medium-Term High Medium-Low
new energy vehicles have driven up copper demand significantly leading to a
supply-demand imbalance and a sharp rise in copper prices.
59Integrity Management
About This About Avary Major Honors & Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Climate-Related Risk Descriptions & Response Strategies (Continued)
Category Topics Identified Risk Issue Operational Time Impact Horizon Likelihood
Impact
Severit Risk Management
Downstream – Product environmental regulations are becoming increasingly * Evaluate newly added or amended laws and regulations in accordance with ST-2B0-006 and promptly rectify non-compliant
Low-Carbon stringent (e.g. RoHS 2.0 REACH California Proposition 65) and items.and Eco- specific customers require eco-friendly materials that exceed Increased Short- * Strictly adhere to the “Five Don’ts” principle of hazardous substance management to prevent any hazardous substances from
Friendly statutory standards (e.g. halogen-free materials). This requires the operating Term High Medium entering or leaving the facilities.Product Company to invest higher costs to manage the risk of hazardous costs * Enhance the Company’s hazardous substance testing capabilities by increasing testing items or inspection frequencies.Demands substances exceeding limits or to meet customer expectations. * Introduce green circular manufacturing technologies and scale up the utilization of recycled materials.* Develop low-carbon green products by integrating low-carbon and circular economy philosophies into R&D frameworks.Market * Enhance ESG initiatives across key dimensions including goals and strategies execution impacts benefits and sustainability
Investment – The Company is currently included in major indices such as the CSI 300. Failure to continuously improve ESG performance may Increased Short- performance outcomes and industry leadership.ESG Ratings harm corporate reputation which could subsequently impact financing Term High Low * Improve the quality of report disclosures by maximizing completeness credibility and communication efficacy.Performance financing capabilities. difficulties * Strengthen external disclosure channels through multimedia design interactive features robust stakeholder communication and feedback systems dedicated sustainability sections on corporate websites and digital report accessibility.To adapt to climate change transition trends the Company
continuously promotes the R&D and deployment of low-carbon
manufacturing processes automation and related new technologies.However these technology investments typically involve high
capital expenditures and technical uncertainties; R&D outcomes Increased * Build an innovative technology-sharing platform to provide a one-stop service encompassing customer requirement Technology may face risks such as insufficient technology readiness lower- operating Long- matchmaking supplier synergy and collaboration product technology R&D structural stack-up design optimization Investment than-expected cost-efficiency or uncertain market acceptance. costs and Term Medium Medium simulation testing and reliability verification.Risk Against the backdrop of accelerated climate transition if the potential * Strengthen risk assessment mechanisms during the technology R&D stage to identify potential failure points early and
progress or application efficacy of these technologies fails to align asset losses. mitigate capital investment risks.with market and customer demands it could impact customer
orders and revenue performance increase operating costs and put
pressure on the Company’s long-term competitiveness.Extreme high temperatures may cause personnel heatstroke food * Monitor meteorological observatory forecasts to issue timely alerts to all departments and supervise their emergency
poisoning or equipment anomalies and carry a risk of raw Increased preparedness work.Extreme High material spontaneous combustion. operating * Utilize air conditioning for cooling reduce high-temperature working hours and stock sunstroke prevention and cooling
Temperatures / Sustained high temperatures lead to drought issues which may costs and Long- Medium- Medium medicines at health stations.Drought leave production processes daily living and fire-fighting water operational Term Low -Low * Direct the equipment department to increase the frequency of facility spot checks and maintenance while implementing
systems unable to meet demand subsequently impacting disruptions effective equipment cooling measures.manufacturing operations. * Execute drought response protocols verify water storage levels in fire-fighting and domestic water reservoirs ensure adequate water reserves and strengthen water conservation awareness campaigns.* Monitor meteorological observatory forecasts to issue timely alerts to all departments and supervise their emergency
Increased preparedness work.Physical Extreme severe cold may cause personnel frostbite food shortages operating * Utilize air conditioning for heating reduce low-temperature working hours and stock adequate anti-frostbite medicines at
Risk Extreme or equipment anomalies and risks freezing or bursting fire-fighting costs and Long- Medium- Medium health stations.Severe Cold systems and other fuel transport pipelines. operational Term High * Direct the dormitory management department to prepare winter bedding to accommodate the needs of employees stranded and
disruptions unable to return home.* Direct the mechanical and electrical department to implement effective insulation and winterization measures for machinery
equipment and pipelines.* Forward typhoon warnings from the municipal meteorological observatory ahead of heavy rainfall. Upon receiving rainstorm
Flooding disasters affect employee attendance and wastewater Increased alerts all relevant departments must immediately execute rainstorm and gale preparedness measures at the earliest notice.Heavy treatment systems. They can also cause disruptions in water and operating
Rainfall and power supplies logistics and transportation or break down the costs and Long- Medium-
* Activate emergency response mechanisms: the mechanical and electrical department prepares drainage pumps and conducts
Term High Medium comprehensive system inspections; the environmental engineering department checks sewage pipes for blockages; and all Flooding supply chain thereby leading to production stoppages reduced operational departments inspect drainage outlets for obstructions contacting government authorities for assistance if necessary.output and resource losses. disruptions * Equip each industrial park with flood prevention facilities including drainage stations flood gates drainage pumps and
entrance flood barriers.
60Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Climate-Related Opportunities & Response Strategies
Category Topics Identified Opportunity Operational Impact Time Horizon Likelihood Impact Severity Opportunity Capture Measures
As climate change accelerates the rapid growth of green
industries chips and related PCB products can be applied to
green sectors such as renewable energy electric vehicles (EVs) Developing PCBs for emerging * Maintain a highly diversified printed circuit board (PCB) Manufacturing Diversified smart manufacturing and the Internet of Things (IoT). sectors like renewable energy product portfolio to fulfill manufacturing requirements across OperationsTec Operations Leveraging its technical R&D advantages across diversified electric vehicles and 5G IoT can Long-Term High High multiple sectors including telecommunications consumer hnical R&D product lines the Company will actively expand into these new generate additional business electronics automotive servers low Earth orbit (LEO)
markets that align with climate transition demands thereby revenue. satellites robotics and low-altitude economy industries.enhancing product added value and scaling up business revenue.As carbon markets mature and expand globally the Company
can capitalize on its carbon trading experience gained from the Strong carbon reduction
Shenzhen industrial park to monetize carbon credits and secure performance can generate carbon * Actively engage in carbon trading markets and participate in
Manufacturing Participation in government carbon-reduction incentives. Looking ahead as credits enabling participation in carbon emissions trading schemes.Operations Carbon Trading carbon trading regulations tighten in markets such as Taiwan and carbon trading or eligibility for Medium-Term High High * Closely track carbon market policy developments across all Markets India it will unlock further opportunities to develop and trade government rewards thereby plant locations branch offices and client regions to
carbon-reduction financial products helping the Company creating additional business dynamically adjust strategies.generate stable medium-term financial returns. revenue.Faced with supply chain disruption risks triggered by climate
change a diversified supplier strategy provides alternative
sourcing options for raw materials and energy strengthening Disperses raw material and * Establish a diversified supplier matrix and adaptive alternative
Upstream Resource Substitution overall supply chain resilience. This strategy not only mitigates energy procurement risks Medium- energy strategies.Supply and Diversity the risk of supply chain breakage caused by climate disasters but reducing the impact of raw Long-Term High High * Strengthen supply chain risk assessment mechanisms and
also enables the Company to respond more flexibly to market material shortages or severe price emergency response protocols.fluctuations enhancing stable production capabilities and cost- volatility on profit margins.control efficiencies.* Achieve UL 2799 Zero Waste to Landfill Platinum Validation.Cost Reduction: * Recycle and reuse packaging trays to reduce material resource
* Enhances resource utilization consumption. (The recycling rate for packaging trays reached
efficiency and decreases waste 8% in 2025).Implementing the recycling and reuse of raw materials reduces disposal expenses. * Deploy pure water and RO water recycling systems and
Manufacturing Recycling and Reuse raw material procurement volumes and waste disposal costs * Revenue Generation: Helps Medium- implement water reuse schemes for rinsing after the acid Operations enhances resource utilization efficiency and subsequently lowers secure recognition from green Long-Term High High washing processes.overall operating costs. customers and brands opening up * Introduce smart centralized control systems to monitor the
new business opportunities and water quality and operational status of wastewater and
order pipelines which increases reclaimed water facilities.potential business revenue. * Ensure that selected suppliers obtain third-party certifications
for the use of recycled materials (e.g. ISO 14021 or UL 2809).
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Growth Production Workplace Founding Mission
Climate-Related Opportunities & Response Strategies (Continued)
Category Topics Identified Opportunity Operational Impact Time Horizon Likelihood
Impact
Severity Opportunity Capture Measures
* Replace traditional manufacturing paradigms with smart factory architectures enabling real-time
monitoring of operations across all plant locations to effectively curb the waste of energy raw materials
and chemicals while elevating manufacturing quality.* Deploy IE4+ and Grade 1 energy-efficient motors in newly constructed facilities achieving over 10% in
Cost Reduction
Faced with energy and cost pressures driven by climate energy savings compared to IE3 motors with an estimated annual carbon reduction of approximately
Adopting * Lowers energy
change investing in highly efficient energy-saving 12371 tonnes.More consumption and carbon
equipment and optimizing manufacturing processes to * Utilize water-source heat pumps to harvest waste heat from air compressors and chillers substituting steam
Efficient emissions per unit of
Manufacturing enhance energy utilization efficiency and curb carbon Long- Medium- Medium- heating typically required for production water intake and AHU (Air Handling Unit) reheating; this
Operations Production product.emissions has become crucial. Moving forward increasingly Term High High thermal recovery minimizes boiler natural gas consumption and cuts carbon emissions by an estimated
and * Minimizes carbon fees and
stringent low-carbon targets will propel the transition toward 10167 tonnes annually.Distribution manufacturing overheads
smart factories and process automation further sharpening * Optimize FFU (Fan Filter Units) configurations to achieve an annual carbon reduction of 416 tonnes.Processes thereby boosting product
the product’s competitive edge and Driving down unit costs. * Implement dual thermal harvesting modes at the Qinhuangdao Industrial Park - using water-source heat
gross margins.pumps across manufacturing plants and air-source heat pumps in living quarters - to concentrate waste heat
from air compressors chillers and ambient air reducing natural gas usage by 1566000 m3 per year and
cutting annual carbon emissions by approximately 4012 tonnes.* Scale up the deployment of smart factories and accelerate manufacturing process automation upgrades.The climate transition is accelerating market demand for Revenue Generation
low-carbon high-efficiency product technologies. * Expands market presence
* Develop next-generation thermal-sensitive board-level material technologies.Capitalizing on its robust R&D and innovation capabilities increases strategic
R&D and * Advance product development for embedded-dissipation LiDAR (Laser Imaging Detection and Ranging)
the Company actively develops products and services collaborations and drives
Manufacturing Innovation systems.Operations tailored to clients’ green transition requirements. Through potential business revenue Short- Medium- Medium-
Technical of New * Build a strategic patent portfolio focused on substrate lightweighting and metal recovery technologies.technological innovation the Company satisfies diversified growth momentum. Term High High
R&D Products & * Initiate product development from a green design perspective - prioritizing recyclable materials alongside
market needs and stringent environmental standards * Enhances the Company’s
Services clean eco-friendly manufacturing processes and technologies to develop a new generation of functional
sharpening its competitive edge expanding strategic technological leadership
modular printed circuit boards featuring rapid response times and high sensitivity.partnership opportunities and boosting its market position and strengthens customer
and short-term revenue growth momentum. stickiness.
62Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
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Growth Production Workplace Founding Mission
Climate Risk Scenarios & Quantitative Analysis Financial Impact Assessment
To further evaluate the impact of climate change the Company conducted a climate scenario analysis in 2025 focusing on Based on the climate scenario modeling the Company’s capital expenditures allocated to water-related issues
the most material physical and transition risks. This analysis quantified the potential financial impacts of climate risks in 2025 accounted for approximately 0.03% of its annual revenue. Looking forward to mid-century (2050) the
enabling the Company to integrate climate considerations into its future strategic decision-making. potential financial losses stemming from operational disruptions caused by heavy rainfall events are projected
to account for 0.11% of 2025 revenue under both the SSP1-2.6 and SSP5-8.5 scenarios.Physical Risk Scenario Analysis Flood Prevention Countermeasures and Planning Across Industrial Parks
The Company designated water resource issues as the primary evaluation target for its physical risk scenario analysis. The Company has successfully developed and executed site-specific climate physical risk adaptation plans and
Recognizing that extreme weather events driven by climate change will disrupt business operations with increasing resilience measures across all existing business operations. Furthermore to ensure 100% risk mitigation
frequency the Company selected “Heavy Rainfall and Flooding” events - currently assessed as having the most severe coverage for new operations all newly planned projects and facilities are required to integrate physical climate
impact - to quantify the potential financial impacts of physical risks under plausible future warming scenarios. The risk assessments and preventive adaptation engineering during their initial design and construction phases.insights derived from this scenario analysis empower the Company to proactively fortify its future operations and strategic
planning.Risk Analysis Results by Campus
l 2050 Water-Related Impact Assessment Assumptions Scenario Simulation Shenzhen Huai’an Taiwan India Thailand Qinhuangdao
Industrial Industrial Industrial Industrial Industrial
Common Assumptions Industrial ParkPark Park Park Park Park
Under 2℃ Warming
Extreme Weather Event Scenario Assumptions Extreme Event Impact Assumptions Sea Level Rise Low Low Low Low Low Low
4.7m
1.The Company selected two scenarios SSP1-2.6 and Under 4℃
SSP5-8.5 to analyze the potential scale of financial WarmingSea Level Low Low Low Low Low LowFinancial impacts are assessed using historical flooding
impact under a worst-case pathway (SSP5-8.5) versus a Rise 8.9mevents that caused industrial park closures over the past
pathway where global warming aligns with the Paris decade. Losses from operational disruptions are projected Although sea-level rise assessments indicate a relatively low level of physical risk across the Company’s
Agreement targets (SSP1-2.6). using 2025 revenue as the baseline:
2.Utilizing the CMIP6 climate models from the IPCC production campuses management maintains a proactive stance toward climate adaptation by deploying robust (1) Shenzhen Park: Experienced 2 flooding events causing
WGI Interactive Atlas platform the Company projected preventive infrastructure - such as dedicated drainage and flood-relief stations automated floodgates high-half-day closures over the past decade. Under SSP1-2.6 the
the frequency of extreme weather events by mid-century projected frequency by 2050 is 1.08 times per decade; under capacity drainage pumps and reinforced entrance flood barriers - to mitigate localized flooding vulnerabilities
(2050) based on the average rate of change in future rainy SSP5-8.5 it is projected at 1.11 times per decade. from extreme torrential rain or seawater intrusion and shield operations from unexpected cost spikes.
days under the selected scenarios. (2) Qinhuangdao Park: Experienced 1 flooding event causing Furthermore forward-looking climate scenario modeling has been applied specifically to assess water resource
2050 (Mid- a half-day closure over the past decade. Under SSP1-2.6 the
Projected Scenario projected frequency by 2050 is 1.08 times per decade; under risks under various future pathways; comprehensive details on these methodology matrices can be found in the Century)
SSP5-8.5 it is projected at 1.11 times per decade. “Water Resource Management” chapter of this report. Even though current physical impact simulations indicate
Average Rate of Change in SSP1-2.6 8% (3) Huai’an Park: Has experienced no flooding-induced that factory and building structures remain completely free from water logging risks under extreme conditions
Rainy Days (Baseline Period: operational closures over the past decade. the Company has pre-emptively constructed targeted flood mitigation infrastructure along the lowest elevation
5-Day Precipitation Indexes) SSP5-8.5 11%
roadways within its campuses to guarantee absolute operational safety.
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Flood Prevention Countermeasures and Planning Across Campuses Common Assumptions
Carbon Pricing Scenario Settings
Risk Mitigation NDCs Scenario Carbon Pricing:
* Taiwan Region: Based on the initial planning of the competent authorities the carbon fee is expected to gradually increase from
Industrial
Park Entrance Basement the originally set RMB300 to between RMB1200 and RMB1800 per metric ton by 2030.Floodwalls Drainage Pumps Flood Sandbags Waterproof Operational Management Measures * Mainland China: References a carbon price of approximately RMB 234 per metric ton of CO2equivalent (tCO2e) in the Shenzhen Barriers Floodgates carbon market alongside recent transaction records of approximately RMB 405 per tCO2e for China Certified Emission
* Conduct routine inspections of rooftop Reductions (CCER).Shenzhen √ √ √ √ √ and underground stormwater drainage Industrial Park Net Zero Scenario Carbon Pricing：infrastructure.* Monitor weather forecasts closely and
Huai’an open stormwater discharge valves Evaluated using the“Net Zero 2050” Taiwan Mainland √ √ √ √ √ Project UnitIndustrial Park immediately upon heavy rainfall alerts. scenario from the Network of Central Banks Region China
* Track river water levels inspect for
Qinhuangdao blockages and promptly report to
and Supervisors for Greening the Financial NDCs Scenario Carbon Pricing RMB / tCO2e 267–400 51–90
√ √ √ √ √ government authorities for assistance System (NGFS) utilizing the average Industrial Park
when needed. carbon prices projected by the GCAM and
Low Risk Low Risk * Connect drainage pumps to emergency Net Zero Scenario Carbon Pricing RMB / tCO2e 908 957REMIND-MAgPIEassessment models.Existing Existing power supplies and perform periodic
Taiwan stormwater stormwater functional testing. In the event of Note: 1.In the Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report (AR6) released in 2021
Industrial Park drainage drainage √ √ √ intense rainfall that restricts gravity the international climate change research community integrated the results of multiple research teams to propose
(Kaohsiung) infrastructure infrastructure drainage close the stormwater the “Shared Socioeconomic Pathways” (SSP) climate scenarios. SSP5-8.5 is a high radiative forcing pathway and is sufficient to is sufficient discharge valves and activate the the only scenario that can produce a radiative forcing of 8.5 W/m2 by 2100; SSP1-2.6 is a low radiative forcing
handle peak to handle pumps to actively discharge rainwater pathway and its multi-model simulation results show that the global average temperature rise will be controlled
volumes. peak volumes. outside the campus perimeter. below 2℃ by 2100.Transition Risk Scenario Analysis
2.Capital expenditures related to water resources cannot be entirely attributed to greenhouse gas categories;
therefore factors such as pollution prevention and control water-saving cost savings and flood control water
For its transition risk scenario analysis the Company selected carbon pricing mechanisms as its core evaluation objective pressure were simultaneously incorporated into the statistics.specifically examining the potential financial exposures from Mainland China’s Carbon Emissions Trading Scheme (ETS)
and Taiwan’s Carbon Fee System - including carbon expenditures and the costs of purchasing Green Electricity Certificates Common Assumptions
(GECs) - across two distinct pathways: the current climate trajectory and a 1.5℃ global warming scenario aligned with the Company Emission Scale by 2030 Company Renewable Energy Utilization
Paris Agreement.Evaluated based on the projected electricity Anchored to the actual self-generated and self-consumed renewable
2030 Greenhouse Gas Financial Impact Assessment Assumptions consumption scale for Mainland China and the energy from the 2025 fiscal year as a baseline conservatively
Taiwan region by 2030. assuming no further capacity expansion by 2030.Regional Assumption Company Green Electricity Certificate
Green Electricity Certificate Cost Assumptions
(GEC) Procurement Scenario
Taiwan Region Mainland China Due to the supply and demand uncertainties in the 2030 market
1. Carbon Fee Impact Scope Assumption: It is assumed that 1. Carbon Price Impact Scope Assumption: It is assumed that evaluating the future average price of GECs in Mainland China is
Taiwan’s carbon pricing will be levied in full based on carbon pricing in Mainland China will be levied in full Aligned with the Company’s 2030 target of challenging. For the Taiwan region GEC pricing references the
emissions and evaluated against the contracted power capacity based on emissions with a target of achieving a 30% achieving a 52% carbon reduction through premium cost of RMB 4.63/kWh from the RE10X10 Corporate
of the Kaohsiung Campus with a target of achieving a 30% carbon reduction through green energy by 2030 and a green energy. It is assumed that if self- Green Power Initiative 2023 Annual Report alongside Taipower’s
carbon reduction through green energy by 2030 and a stretch stretch goal of 52%. generated renewable energy falls short the published 2024 Small-Scale Green Power Sales Q&A floor price of
goal of 52%. 2. Grid Emission Factor Variation Assumption: Considering Company will implement a strategy to procure approximately RMB 5–6/kWh. For Mainland China GEC pricing
2. Grid Emission Factor Variation Assumption: Considering changes in the grid emission factor the assessment adopts Mainland China Green Electricity Certificates references the average listed trading prices on the China Green
changes in the grid emission factor it is assumed that the 2030 the 2030 provincial grid emission factor estimates derived to bridge the gap. Electricity Certificate Subscription Platform.assessment will adopt the 2025 electricity emission coefficient from the Research on Carbon Dioxide Emission Factors of Taiwan Region GEC Price 1029–1333 RMB / certificate
target of 0.388 kgCO2e/kWh. China’s Regional Power Grids (2023). Mainland China GEC Price 15–25 RMB / certificate 64About This About Avary Message from ESG Key Major Honors &
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Financial Impact Assessment Risk Assessment Methodology and Boundaries
In 2025 the Company allocated approximately 0.66% of its revenue to carbon management energy conservation and The Company utilized the World Wide Fund for Nature (WWF) Biodiversity Risk Filter (BRF) tool to conduct
environmental protection equipment to address climate change; looking ahead to 2030 climate scenario analysis indicates its biodiversity risk assessments incorporating the Potentially Disappeared Fraction of species (PDF) as a core
auxiliary indicator to comprehensively quantify the biodiversity dependencies and impacts of its operational
that potential operational financial impacts from carbon pricing mechanisms will account for 0.06% to 0.15% of 2025
locations and critical suppliers.revenue under the Nationally Determined Contributions (NDCs) scenario and rise to 0.83% to 2.98% under the Net Zero
scenario. This initial annual assessment covers direct operations adjacent areas and major suppliers across 30 core
production sites in 6 countries and regions including Taiwan Mainland China India Japan South Korea and
Biodiversity Management Malaysia. Downstream waste disposal and recycling services were also integrated into the assessment boundary
focusing on identifying the potential impacts of these operational processes on soil water bodies ecosystems
Responding to the intensifying global focus on natural issues and fulfilling its commitment to biodiversity and ecological
and biodiversity to achieve closed-loop management of nature-related risks across the product life cycle.conservation the Company formally adopted the Taskforce on Nature-related Financial Disclosures (TNFD)management
framework in 2025. This step systematically strengthens the overarching management of nature-related risks and The BRF analysis covers 33 dependency and impact indicators across physical and reputational risks leading to
opportunities. Leveraged on the mature Taskforce on Climate-related Financial Disclosures (TCFD) framework the identification of 5 key nature-related risks: physical risks including water resources air quality conditions
established in 2020 the Company effectively integrated existing data reporting flows and governance structures to landslides/mudslides and extreme heat alongside reputational risks concerning impacts on protected
areas/reserves. By mapping impact severity against the likelihood of occurrence the Company categorized
achieve synergy between TNFD and TCFD implementations ensuring standardized and efficient progression of nature-
water resource risk as moderate and the remaining four risks as low-moderate subsequently formulating
related risk assessments and disclosures. differentiated mitigation strategies for each tier to continuously minimize its negative environmental footprint
Governance Structure and Responsibilities and drive a benign symbiosis between ecological benefits and business growth.The Company actively promotes the deep integration of nature-related topics into its existing climate risk governance Locate Evaluate Assess Prepare
framework. It defines the core responsibilities of the Board of Directors the Chairman and the ESG Development
Locate the interface Evaluate Assess material Prepare to respond
Committee in managing and overseeing nature-related risks and opportunities. Concurrently the division of rights and with nature: dependencies and risks and and report: Reported
responsibilities across relevant departments and personnel is clearly defined establishing a well-structured and highly Identified areas of impacts: Analyzed opportunities: the analysis results of
interdependence with results across the 33 Identified the material nature-
collaborative governance ecosystem that provides a solid organizational foundation for managing nature-related issues. natural ecosystems dependency and materiality of risks related topics
Nature-Related Risks and Impacts using the BRF tool by impact indicators to corporate formulated responsive aggregating data from based on severity operations management
To accurately identify the dependencies and impacts of corporate operations and the supply chain on the natural direct operations and and the number of analyzed their strategies and
critical suppliers affected sites to projected financial mitigation measures
environment the Company completely adopted the LEAP methodology (Locate Evaluate Assess Prepare) recommended including geographic screen and prioritize implications and and established
by the TNFD. Covering direct operations surrounding areas and upstream core supply chains the Company coordinates industry material nature- pinpointed specific disclosure
classifications and related risks. corresponding metrics and targets.systematically analyzed actual and potential nature-related impacts to lock onto key areas of focus and formulate targeted business scales. latent opportunities.action plans aligning business growth with sustainable nature management.
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Risk Identification Results and Analysis
Risk Type Risk Item Risk Definition Risk Level Potential Impact Materiality Analysis
Water availability refers to the accessibility of freshwater * Direct Operations: The printed circuit board (PCB) industry relies heavily on water resources during manufacturing.resources which can significantly impact an enterprise through Recognizing this the Company’s major campuses in Mainland China undergo annual water resource risk identification and
Water scarcity directly compromises production efficiency
production or supply chain disruptions increased operational costs assessment to guarantee proper water management. Conversely the India facility utilizes dry manufacturing processes
Water threatening to cause operational downtime or decreased
and growth constraints. It is generally calculated based on the Medium resulting in a low baseline water demand and minimal risk exposure.Resources capacity which in turn elevates water procurement costs and
volume of available surface water and groundwater within a
reduces overall Company revenue. * Supply Chain: Should the supply chain suffer from water shortages it could trigger disruptions in component manufacturing
specific region. Key indicators include water depletion baseline or auxiliary services. A small number of South Korean suppliers exhibit a high dependence on water; the Company will
water stress blue water scarcity and groundwater levels. continue to oversee and mitigate this vulnerability through standardized supplier audits.The emission of air pollutants is bound by local regulatory
This indicator is based on PM2.5? concentration levels and reflects standards and non-compliance can lead to regulatory fines. * Direct Operations: Manufacturing processes have the potential to elevate the concentration of particulate matter (PM2.5) in
whether the ambient air quality is healthy and sustainable for Furthermore prolonged operations in environments with the atmosphere. To manage this the Company regularly monitors and tracks the emissions of various air pollutants each year.Air Quality
humans and ecosystems. Over the long term chronic exposure to Low poor air quality can negatively affect employee health. The Currently the discharge volumes at all factory sites remain well below local regulatory limits.Status
PM2.5? concentrations that exceed average baseline levels is a Company must also consistently inspect maintain or * Supply Chain: The Company systematically tracks and verifies the compliance status of each supplier to ensure that no
strong predictor of increased mortality rates. upgrade air pollution control equipment to remain fully relevant environmental infractions or air quality violations occur across the supply network.Physical Risk compliant.Landslides present significant risks to human life and economic Taiwan and Japan are located within active seismic zones * Direct Operations: According to the hazard potential layers on Taiwan’s official disaster prevention information network
activities. Due to human interventions - such as land-use changes where earthquakes frequently trigger mudslides or landslides. the Company’s operational sites are not designated within mudslide-susceptible impact zones. Additionally the Company
Landslides / land degradation and infrastructure expansion - landslides have If suppliers fail to maintain stable deliveries due to
Low has implemented a Business Continuity Plan (BCP) and the majority of its operational locations have obtained relevant ISO
Mudslides become increasingly prevalent. Furthermore extreme precipitation mudslide-induced disasters the Company’s production certifications to mitigate and respond to potential business disruption risks.driven by climate change intensifies landslide risks threatening activities could be disrupted or procurement costs could
the sustainable development of vulnerable regions. increase due to the need to source alternative suppliers. * Supply Chain: In recent years no suppliers have experienced operational disruptions caused by mudslides or landslides.Extreme heat has pronounced impacts on human health and Adapting to extreme heat causes cooling systems to operate * Direct Operations: Currently the Company’s manufacturing facilities utilize central air conditioning to dynamically adjust
directly correlates with economic activities and industries such as under heavy loads which drives up energy consumption and indoor temperatures and the factory buildings incorporate thermal insulation designs. Consequently employees working
the built environment. Under the influence of climate change the may result in additional capital expenditures. Regarding indoors and production equipment are relatively unaffected by high temperatures. Furthermore the Company commissions a
Extreme Heat Low
frequency and intensity of abnormal weather events and extreme employee health prolonged high-temperature environments third party annually to conduct occupational hazard assessments which explicitly include high-temperature testing.temperatures have risen sharply a phenomenon that will only be can elevate the risk of occupational hazards subsequently * Supply Chain: In recent years no suppliers have experienced hazard incidents triggered by extreme heat. The Company will
exacerbated as global temperatures continue to climb. leading to increased personnel expenses. continue to track whether any supply chain cost increases arise from high-temperature adaptation measures.Corporate operational activities can bring negative impacts
Protected areas and reserves have long been recognized as the * Direct Operations: All production sites are located within designated industrial parks and do not overlap with any global or
to surrounding protected areas or reserves which not only
Protected cornerstone of biodiversity conservation playing a vital role in national biodiversity conservation areas. Additionally the Company has established a “Biodiversity Policy” and a “NoReputational damages the ecological environment but also compromisesAreas / achieving global biodiversity and sustainable development goals. Medium-Low Deforestation Commitment” which apply to all operational locations and require mutual compliance from suppliers.Risk the Company’s reputation. Furthermore any violations of
Reserves If a Company’s operational locations highly overlap with
local regulations could result in regulatory fines and legal * Supply Chain: Suppliers in the Taiwan and Japan regions have no records of operating near protected areas or causing
protected areas its reputational risk will be severely impacted.expenses. negative impacts through their production activities.
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Management Approach Risk Type Risk Item Metrics and Targets Response / Mitigation Measures
* When executing land-use modifications (such as factory construction or land layout adjustments) ecological impact
* Maintain a wastewater reuse rate
assessments must be conducted and mitigation measures implemented to achieve net-zero loss of the ecological * Upgrade manufacturing process equipment to enhance
of over 50%.environment. Water Resources water conservation at the source.* Maintain an overall plant-wide
* When conducting operations within critical biodiversity areas proactive avoidance mitigation and compensation * Maintain standing emergency water storage plans.water recycling rate of over 41%.measures must be deployed to minimize environmental impacts.* During the procurement or self-construction of renewable energy infrastructure biodiversity due diligence must be * Utilize environmentally friendly raw materials. Ensure air pollutant emissions * Introduce advanced equipment to reduce air pollution
performed alongside consistent monitoring and restoration efforts to reduce ecological shocks. Air Quality Status consistently test below local emissions.* The Company actively collaborates with suppliers and stakeholders to collectively uphold biodiversity forest regulatory limits. * Conduct regular testing and continuously monitor
Physical Risk emissions data.conservation and broader ecological protection.
Metrics and Targets Landslides / * Ensure the proper continuous operation of disaster Mudslides Not Applicable prevention facilities.The Company monitors and evaluates key metrics and targets concerning nature-related dependencies impacts risks and * Conduct regular disaster response and evacuation drills.opportunities in a transparent and measurable manner fully integrating them with existing corporate environmental goals * By 2025: Achieve a 15% or greater reduction in carbon
and management systems. Based on the five key risks identified in the aforementioned assessment the Company has emissions through green energy. * Deploy energy-efficient equipment across facilities.Install self-built solar power systems and procure exter
mapped out relevant responses to its established environmental metrics and targets. Performance oversight and Extreme Heat * By 2030: Achieve a 30% carbon
*
responsibility delegation are managed by the Corporate Governance and ESG Development Committee to guarantee reduction via green energy with
* nal green power.an aspirational target of 52%. * Integrate Green Building Certification standards into
effective risk management. * By 2050: Achieve Net-Zero future factory construction plans.Furthermore the Company publicly discloses the implementation progress of its annual targets each year enabling emissions.stakeholders to understand its progress and active commitment toward nature-related issue management. For biodiversity * Formulate and enforce a dedicated Biodiversity Policy.conservation the Company has introduced dedicated biodiversity protection policies and commitments while partnering * Mandate compliance across the entire supply chain.Reputational Protected Areas / * Require comprehensive Environmental Impact
with government agencies to restore local native species and trees. Risk Reserves Not Applicable Assessments (EIAs) for all land-use modifications.* Conduct training and awareness campaigns on natural
▓ Management Achievements ecosystems for suppliers
* January 2022: Partnered with the Taiwan Forestry and Nature Conservation Agency on a collaborative project to
▓ Strategic Target Management
remove invasive Leucaena leucocephala (river tamarind) and restore native plant species.* December 2022: Completed the removal of invasive plants and planted approximately 30000 native trees which is Long-Term Targets (2030)
projected to sequester 600 metric tons of carbon emissions. * Deepen environmental protection partnerships and systematically audit the inventory
* July 2023: Formally published the corporate Biodiversity and No Deforestation Commitment. and populations of restored flora and fauna species.* March 2024: Utilized recycled water at the India facility to plant and irrigate 370 trees. * Ensure water resource security and actively address and eliminate the negative
* September 2024: Signed a collaborative project with Chung Hua University to promote local economic development Medium-Term Target (2025) impacts of pollution on biodiversity.through ecological initiatives. Drive and implement nature- * Inventory the positive impacts of managing air pollution and waste emissions and
* October 2024: Formally launched the TNFD Biodiversity Assessment Program. and biodiversity-related risk rigorously execute corresponding environmental solutions.* May 2025: Planted 637 new native trees and shrubs through the Chung Hua University partnership continuing to drive assessments and establish
local economic and ecological synergy. robust corporate response
* To Date: All environmental impact assessment (EIA) reports comprehensively include ecological impact analyses. All Ultimate Goal (2050)
mitigation measures.Company industrial parks comply fully with local greening requirements and the Company has successfully achieved the Advance toward achieving a Net Positive Impact (NPI) on the
environment and ecosystems remaining fully dedicated to the
Alliance for Water Stewardship (AWS) Platinum Certification.long-term protection and preservation of global biodiversity.
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Energy Management During the reporting period the Company continued to scale up its installed solar capacity and planned the phased construction of
energy storage facilities to optimize peak-load management. Total comprehensive energy consumption (including self-generated
Since 2013 the Company has implemented the ISO 50001 Energy Management System at its self-consumed solar energy) reached 6797263 GJ resulting in an energy intensity of 173.16 GJ per RMB 10000 of revenue.Shenzhen campus systematically executing energy monitoring reviews and continuous Purchased electricity (including green electricity) accounted for 84% of the total mix while renewable energy utilization accounted
improvements to accurately identify high energy-consuming processes. Guided by the core for 68%. Within the purchased green electricity solar power contributed 626094 MWh and wind power contributed 656175 MWh.principles of energy conservation emission reduction greening and recycling the Company Additionally the Company’s completed distributed rooftop photovoltaic (PV) projects generated 6237 MWh annually. In total the
deploys economically viable energy-saving solutions to continuously enhance energy cumulative use of green electricity throughout the year reduced carbon emissions by approximately 689946 metric tons.Looking
performance while ensuring production energy demands are met.To support these initiatives the ahead the Company will continuously expand its PV installations promote energy-saving and consumption-reducing manufacturing
Company built a digital energy management platform. By leveraging multi-protocol processes develop low-carbon products actively broaden partnerships in renewable energy and refine its clean energy infrastructure.communication and data transmission the platform achieves computerized visualized and The Company has set a definitive energy-saving target: by 2028 the total energy savings will increase by more than 2.6% compared
intelligent energy management. It monitors electricity consumption in real time across the to 2025 baseline levels taking concrete actions toward achieving carbon neutrality.industrial parks buildings sub-systems and critical machinery triggering automatic alerts for
anomalies to ensure rapid response and resolution.Currently 100% of the Company’s major ▓ 2025 Corporate Energy Consumption Performance
manufacturing facilities have fully established operational and certified ISO 50001 Energy Energy Intensity
Management Systems. Furthermore in 2025 the Company organized energy efficiency Category Energy Source Unit Consumption (GJ / Million CNY) Energy Mix Share (%)
management training sessions with 14306 attendee participations successfully strengthening Megawatt hour (MWh) 290059
energy-saving awareness across the workforce and steadily driving the realization of its carbon Purchased Grid Electricity 26.67 15.36%Gigajoules (GJ) 1044213
neutrality goals. Liter(L) 144885
Gasoline 0.12 0.07%
Gigajoules (GJ) 4509
▓ Corporate Energy Management System Certifications
Liter(L) 417539
Diesel 0.38 0.22%
Non-Renewable Energy Gigajoules (GJ) 14959
m3 10476844
Natural Gas 10.17 5.86%
Gigajoules (GJ) 398120
Metric Tons 203123
Purchased Steam 14.37 8.27%
Gigajoules (GJ) 562418
Purchased Thermal Energy Gigajoules (GJ) 134424 3.43 1.98%
Megawatt hour (MWh) 6237
On-site Solar PV (Self-consumed) 0.57 0.33%
Gigajoules (GJ) 22452
Renewable Energy
Megawatt hour (MWh) 1282269
Purchased Off-site Green Power 117.92 67.91%
Gigajoules (GJ) 4616168
Total Gigajoules (GJ) 6797263 173.63 100%
Energy Consumption Analysis
▓ Five-Year Energy Consumption Profile (Unit: Gigajoules GJ)
Driven by factory expansion production capacity growth and the integration of newly acquired
legal entities the Company’s total energy consumption increased by 14% year-over-year (YoY) 5929461 67972635499539 5618438 5357151
compared to 2024. During the same period procurement of off-site renewable electricity reached
1282269 MWh representing a 31% YoY increase. The energy mix across all subsidiaries remains
predominantly reliant on purchased electricity followed by natural gas. It also includes purchased
steam purchased thermal energy (for winter heating) self-generated solar power and gasoline and 2021 2022 2023 2024 2025
diesel consumed by corporate fleets and onsite cargo vehicles.
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▓ Five-Year Energy Intensity Profile (Unit: GJ / RMB Million ) ▓ Corporate Greenhouse Gas (GHG) Emissions
Item Unit 2021 2022 2023 2024 2025
166166167168174
139145
Scope 1 tCO2e 34553 65921 61387 80551 80556
134131
120 Scope 2 (Market-based) tCO2e 914040 871354 326614 254367 211143
Scope 2 (Location-based) tCO2e 901143
Scope 3 tCO2e 21441 24057 19863 19919 30816
32 35 36 29 28 Total Scope 1 & Scope 2 tCO2e 948593 937275 388001 334918 291699
Total Emissions tCO2e 970034 961332 407864 354837 322515
Scope 1 & Scope 2 Emissions Intensity tCO2e per RMB 10000 2021 2022 2023 2024 2025 Revenue 0.28 0.26 0.12 0.10 0.07
Target Carbon Density Reduction Rate
非No电n-E力lec使trici用ty E密ne集rgy度 电Ele力ctric使ity用 Co密nsu集mp度tion 总T能ota源l Co密mp集reh度ensive Energy Intensity (Scope 1 & 2) % 30 30 33 40 40
Intensity Intensity Baseline Year:2013
Note：Energy Intensity Conversion Formulas and Heating Value Sources Actual Carbon Density Reduction Rate
(Scope 1 & 2) % 40 45 74 80 84
1.Energy Intensity = Heating Value × Energy Consumption ÷ Revenue.
2.Electricity: 3600 KJ/kWh; Gasoline: 43070 KJ/kg; Diesel: 42652 KJ/kg; Natural Gas: 38931 Note: 1.Verification Approach: The greenhouse gas verification approach is
903 based on operational control. Official GHG verification certificates for each KJ/m3; Purchased Steam: Huai'an Campus at 2768.86 KJ/kg. legal entity can be viewed on the Company’s official website under:
3.The 2025 energy consumption data reporting boundary includes the following newly added legal 4307 “Sustainability - Environmental Friendliness - Energy Saving & CarbonReduction.”
entity/site: Pengocean Thailand. 2.Emission Factors: Calculations are performed according to the latest
4.This disclosure retroactively traces past data to integrate renewable energy consumption. 2025 Scope 3 standards announced by local governments (Electricity Grid Emission Factors:
Greenhouse Gas South China: 0.4042 kg CO2/kWh North China: 0.6361 kg CO2/kWh East 15305 China: 0.550 kg CO2/kWh).Greenhouse Gas (GHG) Emissions Emissions (Metric 3.Gases Included: The calculation includes seven types of gases: carbon
Tons CO2e) 8272 dioxide methane nitrous oxide hydrofluorocarbons perfluorocarbons sulfur
During the reporting period the total Scope 1 and Scope 2 greenhouse gas emissions across the hexafluoride and nitrogen trifluoride. The Global Warming Potential (GWP)
Company’s major production sites reached 291699 metric tons of CO2e. The emissions intensity 376 rates used are sourced from the IPCC Sixth Assessment Report data.4.Baseline Year: The year 2013 is used as the baseline year for environmental
stood at 0.07 metric tons of CO2e per RMB 10000 of revenue representing an 84% reduction 1151 502 data comparison because the hardware infrastructure construction was
compared to the 2013 baseline. relatively complete. Baseline Year 2013 Data: Scope 1 emissions: 35282
Looking ahead the Company will continue to expand its solar power infrastructure develop metric tons of CO2e; Scope 2 emissions: 593025 metric tons of CO2e; Scope 3 C类ate别gor1y 1购: Pu买rch商ased品 Go或ods服 an务d Services emissions: 4486 metric tons of CO2e; Scope 1 & 2 emissions intensity: 0.47
renewable energy projects procure green electricity and deploy energy storage solutions to further C类ate别gor3y 3燃: Fu料el- 与and能 Ene源rgy相-Re关late活d A动ctivities metric tons of CO2e/ RMB 10000.drive down carbon emissions. Currently the Company has expanded its Scope 3 GHG inventory to C类ate别gor4y 4上: Up游stre运am输 Tra及nsp配orta送tion and Distribution 5.Emissions Intensity: Emissions Intensity = (Scope 1 Carbon Emissions +
cover seven major categories: purchased goods and services fuel- and energy-related activities C类ate别gor5y 5营: W运aste活 Ge动ner中ated产 in 生Ope的rati废ons物 Scope 2 Carbon Emissions) ÷ Corporate Consolidated Revenue.C类ate别gor6y 6商: Bu务sin差ess 旅Travel 6.The carbon emissions intensity reduction target for 2026 is set at 40% (based upstream transportation and distribution downstream transportation and distribution waste generated
C类ate别gor7y 7员: Em工plo通yee勤 Commuting on the 2013 carbon emissions intensity baseline of 0.47 metric tons of
in operations business travel and employee commuting. The Company plans to complete the C类ate别gor9y 9下: Do游wn运stre输am 及Tra配nsp送ortation and Distribution CO2e/RMB 10000).inventory and disclosure of all Scope 3 greenhouse gas emission categories within the next two years.
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Energy Saving and Carbon Reduction Carbon Management and
During the reporting period the Company achieved a total annual carbon reduction of 729611 metric tons equivalent to a 70% reduction Internal Carbon Pricing
in original total carbon emissions demonstrating significant results across all carbon reduction initiatives. Specifically a reduction of
35653 metric tons of carbon was achieved through process energy-saving modifications and the introduction of advanced energy-efficient To scientifically manage climate-related risks
seize low-carbon development opportunities and
equipment. Thermal energy recovery contributed to a reduction of 4012 metric tons of carbon. The installed capacity of self-built solar
drive deep decarbonization across all operational
power facilities reached 5.07 MW generating 6237 MWh of electricity and reducing carbon emissions by approximately 3340 metric processes the Company has established an
tons. In 2025 the solar PV capacity built at Avary (HongQisheng) reached 11.18 MW and the Kaohsiung Campus reached 1.65 MW with Internal Carbon Pricing (ICP) mechanism to
an estimated annual power generation of 11555 MWh. Additionally the procurement of renewable energy certificates (RECs) resulted in internalize the external environmental costs ofa carbon reduction of 686606 metric tons.In terms of building the energy-saving management system the Company utilized its “Seven greenhouse gas emissions. This mechanismGreen Platforms” to conduct specialized Company-wide energy-saving management training strengthening employee awareness. Energy- covers the Company’s Scope 1 and Scope 2
saving officers at each campus regularly conducted routine self-inspections and formulated specialized energy-saving audit plans in greenhouse gas emissions embedding them into
accordance with the Company’s environmental protection and energy-saving management operational procedures systematically driving the operational decision-making and investmentthe implementation of energy-saving and carbon-reduction initiatives. The Company continuously deepened the application of its “Seven evaluation processes of all business units in theGreen” energy-saving methodologies. During the planning and design phases of new production lines and factory constructions priority form of a shadow carbon price. Given that the
was given to configuring mature and advanced energy-saving equipment and facilities achieving an energy efficiency improvement of Company’s major production bases are located in
over 10% compared to legacy factory designs. Mainland China and the Shenzhen Campus is
included in the carbon trading pilot program the
▓ Key Corporate Energy-Saving Projects Company has set its 2025 internal shadow carbon
price at RMB 44.4 per metric ton of carbon
Project Key Project Description Energy-Saving Performance dioxide equivalent (tCO2e) benchmarked against
*New factories utilize premium IE4+ and Grade 1 efficiency motors delivering over 10% the Shenzhen carbon market price.energy savings compared to IE3 motors reducing carbon emissions by approx. 12371 In practical application the Company integrates
metric tons annually. the internal carbon pricing mechanism into the
Utility & Facility *Water-source heat pumps capture waste heat from air compressors and chillers to replace Carbon Reduction:
Efficiency steam heating for incoming process water and AHU (Air Handling Unit) reheating. This 35653 metric tons / year evaluation process for energy-saving carbon-
thermal recovery cuts natural gas use in boilers reducing carbon emissions by approx. reduction and low-carbon investment projects.
10167 metric tons annually. By quantifying carbon reduction benefits in
*FFU (Fan Filter Unit) optimization reduces carbon emissions by 2416 metric tons. monetary terms the mechanism incorporates them
Thermal Energy *The Qinhuangdao Campus utilizes rooftop water-source heat pumps at factory buildings into project cost-benefit analyses and return on
Recovery and air-source heat pumps at living quarters to reclaim waste heat from air compressors 4012 metric tons / yearchillers and ambient air reducing natural gas consumption by 1566000 m3 annually. investment (ROI) evaluation systems. This
Solar PV Generation *Huai’an Campus I: Installed capacity of 2.1 MW mechanism effectively drives energy efficiency
(Active) *Huai’an Campus II: Installed capacity of 2.4 MW
Carbon Reduction:
improvements and guides low-carbon investment
*Shenzhen Campus: Installed capacity of 0.57 MW 3340 metric tons / year strategies supporting the formulation of the
Solar PV Generation *Qinhuangdao Avary (HongQisheng): Installed capacity of 11.18 MW Company’s climate-related policies and the
(Pending Activation) * Kaohsiung STSP (Nanke): Installed capacity of 1.65 MW
Carbon Reduction: achievement of carbon reduction targets.Procurement of Purchase and consume renewable energy electricity to minimize greenhouse gas emissions. 686606 metric tons / year Concurrently it serves as a core parameter for RECs scenario analysis helping the Company
Note:1.The emission factors used to calculate the carbon reduction performance for natural gas savings are sourced from the IPCC proactively prepare for potential carbon pricing
Sixth Assessment Report data. policies and related regulatory risks.
2.Facility Energy-Saving Performance Carbon Reduction = Electricity Savings × Electricity Carbon Emission Factor.
3.Calculations are based on the latest standards announced by local governments (Electricity Grid Emission Factors: South China:
0.4042 kg CO2/kWh North China:0.6361kg CO2/kWh East China: 0.550 kg CO2/kWh). 70Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
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Water Resources Management World Resources Institute (WRI) Water Resource Assessment Tool
In response to the challenges of frequent extreme weather events driven by climate change and the The Company utilizes the World Resources Institute (WRI) Aqueduct Water Risk Atlas assessment tool to simulate and analyze the
continuously rising risks associated with water resources strengthening end-to-end water water stress conditions of each campus under baseline and extreme scenarios with the assessment results fully integrated into the
management and recycling technology innovation has become a core priority for the Company’s operational resilience strategy framework.robust operations. In 2025 the Company’s production campuses comprehensively advanced The Company’s Qinhuangdao Campus is located in a northern coastal region where the overall regional water stress is relatively high.specialized process water-saving initiatives accurately identifying high water-consuming stages However the campus is adjacent to a water-supply river and is supported by three major backup water supply points ensuring
with a primary focus on pickling tanks scrubbing towers pure water systems and high water- sufficient water supply security. According to the AWS watershed assessment the Qinhuangdao Campus is designated as a low water
consumption process equipment. Through source control process optimization and end-to-end stress area. Since entering operation in 2008 the campus has never experienced a water shortage and over 90% of its water
water usage supervision the Company routinely reviewed the efficiency of recycled and pure water consumption is sourced from surface water (river water) resulting in an extremely low dependency on municipal tap water.utilization to continuously lower its water usage levels and operational water risks. Relying on ▓ WRI Baseline Water Resource Status by Campus
technological innovation the Company continuously improved its wastewater recycling rate and Shenzhen Industrial Qinhuangdao Industrial
water resource utilization efficiency. In the same year the Company conducted specialized AWS Assessment Category Park Huai’an Industrial Park Park
(Alliance for Water Stewardship) sustainable water management training for all staff with a
Baseline Water Stress Low Low High
cumulative total of 270 employees participating during the year comprehensively enhancing the
team’s ability to identify water risks and apply industry best practices. Water Depletion Low Low Medium
The Company has established a goal-oriented water resources management system. Through its
“Seven Green Platforms” the annual water recycling rate targets are broken down level by level to ▓ WRI 2030 Water Resource Projections Under the Worst-Case Scenario (SSP3-RCP8.5)
each department implementing a closed-loop management mechanism consisting of monthly
Assessment Category Shenzhen Industrial Huai’an Industrial Park Qinhuangdao Industrial
reviews quarterly evaluations and annual summaries to dynamically track target achievement and Park Park
formulate optimization plans. In 2025 the Company’s wastewater recycling rate reached 50.4%. Water Stress High High Extremely High
Water Resource Risk Identification and Mitigation Water Supply 100-300cm 100-300cm 3-10cm
Water Resource Risk Assessment * Note: Baseline Water Stress Description: Baseline water stress measures the ratio of total water withdrawals to available renewable
surface and groundwater supplies. Water withdrawals include domestic industrial irrigation and livestock consumptive and non-
World Wildlife Fund (WWF) Water Risk Filter / AWS Evaluation Tool consumptive uses. Available renewable water supplies account for the impacts of upstream consumptive water users and large dams
on downstream water availability. Higher values indicate more intense competition among users.The Company has established a routine water resource risk assessment mechanism conducting * Water Depletion Description: Baseline water depletion measures the ratio of total water consumption to available renewable water
annual AWS system audits certifications and comprehensive water resource risk inspections supplies. Total water consumption includes domestic industrial irrigation and livestock water use. Available renewable water
supplies account for the impacts of upstream consumptive water users and large dams on downstream water availability. Higher
across its major production campuses. Utilizing the World Wildlife Fund (WWF) Water Risk Filter values indicate a greater impact on local water supplies and reduced water availability for downstream users. Water depletion is
tool to analyze watershed water resource risks the assessment results indicate that all of the similar to water stress but instead of looking at total withdrawals (consumptive plus non-consumptive) it calculates baseline water
depletion using only consumptive water withdrawals.Company’s campuses are located in low water resource risk areas and have not experienced any * Simulated Scenario: The extreme scenario (SSP3-RCP8.5) represents a fragmented world with uneven economic development
shocks related to water scarcity. Concurrently the Company conducted water resource issue higher population growth lower GDP growth and lower urbanization rates - all of which could affect water consumption. Global
carbon emissions steadily rise with carbon dioxide concentrations reaching approximately 1370 ppm by 2100 which corresponds
questionnaires targeting core stakeholders - including suppliers customers governments to global average temperatures increasing by 2.6–4.8°C compared to 1986–2005 levels.shareholders neighboring enterprises community residents and employees - and compiled * Water Stress Description: Water stress is an indicator of competition for water resources informally defined as the ratio of human
societal demand for water divided by the available water.specialized reports combined with background data on the watersheds of each campus to accurately * Water Supply Description: This indicator represents the total volume of blue water (renewable surface water). Higher values
evaluate risks and clarify directions for management optimization. indicate more abundant water supplies. 71Integrity Management
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Water Resource Risk Mitigation Current Status of Water Resource Utilization
The Company has built its water resource risk mitigation system around three core pillars: water conservation recycling and supply security. We
comprehensively scale up wastewater recycling and improve its utilization efficiency implement water-saving retrofits in production workshops and The primary water sources for the Company’s main production bases include
establish product-specific water usage KPIs paired with regular performance evaluations. By implementing the AWS (Alliance for Water Stewardship) municipal water supplies and surface water. In 2025 the total annual water withdrawal
international sustainable water management standard we have strengthened water conservation controls and ensured compliant wastewater discharge. was 14.70 million metric tons total water consumption was 4.09 million metric tons
Furthermore the Company actively participates in local watershed ecological protection to promote the sustainable use of regional water resources and and the water usage intensity was 3.76 metric tons per RMB 10000. The water supply
advances a diversified layout of water sources while constructing emergency water storage facilities to guarantee production and operational water needs across all campuses remains fully guaranteed. Concurrently the Company’s
under extreme conditions. supporting backup water tanks can sustain continuous production and operations for
over 20 hours ensuring a stable and reliable emergency water supply capacity.For the Qinhuangdao Campus efforts are focused on executing source-level water conservation and end-of-pipe recycling enhancement projects. Over the
past two years the campus wastewater recycling rate has stabilized at 50% leading the industry. Additionally over 90% of the campus’s water is sourced
from river water significantly reducing its dependency on municipal tap water. In the next 3 to 5 years the campus will comprehensively promote the ▓ Company Water Resource Utilization (Unit: 10000 Tons)
application of reclaimed water to further relieve regional water stress.▓ Water Supply and Risk Management by Campus 1470
Daily Water Backup Current
Campus Source Supply or Water Tank Backup Reservoir Capacity Capacity Duration Risk Management Measures
12341237
1162
[10000 m3/d] [m3] [hrs]
10171061
* Supplied by dual reservoir water sources and a dual municipal water plant pipeline network ensuring long-term supply stability.Shenzhen 16 8000 30.3 * On-site backup water storage exceeds 30 hours to respond to temporary emergencies. 869
921885
*Internal wastewater recycling rates can be raised to reduce fresh water consumption. 798 855 811
* Water can be processed via the reclaimed water system for production use (requires expansion space) + water truck deployment. 711 676
* PP cotton filtration has been added to the water supply inlet of the Huai’an Campus I municipal water tanks. 553
Ⅰ 20 4000 20 * Filtered water and softened water at Huai’an Campus I are not supplied directly to production lines. In case of high municipal 436 451 427 453
water turbidity the replacement frequency of the RO security filter PP cartridges can be increased in addition to increasing 365 368 409 352
backwash frequency. 307
Huai’an * Huai’an Campus II features four municipal water tanks that can alternately switch between inlet and outlet workflows (e.g. 245
Ⅱ 20 12000 48 Tank 1 takes in water in the morning and discharges in the afternoon while Tank 2 discharges in the morning and takes in water
in the afternoon). This increases the settling time of municipal water to lower turbidity (capable of treating 6000 metric tons of
water per day).* To address excessively high turbidity in filtered water backwash frequency can be increased or PP cotton filter cartridges can
Ⅲ 10 16000 28 be added at either the manufacturing end or the supply end to reduce turbidity (capable of treating an additional 300 metric tons
of water per day). 2021 2022 2023 2024 2025
M市uni政cipal供 Wat水er S地urfac表e W水ater 总Tota取l Wa水ter 量 废Was水tewa排ter D放isch量arge W耗ater水 Con量sum*ption
* Equipped with two raw water tanks that function as normal storage tanks during regular operations and can be used for Supply Withdrawal
10 emergency PAC (polyaluminum chloride) chemical coagulation and sedimentation when incoming water turbidity spikes during
floods.Qinhuangdao 12000 20.2 * Utilizes an Ultrafiltration (UF) system to treat high-turbidity raw water during the rainy season. Note: * Water Consumption Formula: Water Consumption = Total Water
* Cleaning frequency can be increased and inlet flux lowered without affecting the output water quality.* Emergency capacity for treating exceptionally high-concentration raw water: 7000 metric tons/day. Withdrawal ? Wastewater Discharge.* Most industrial water is sourced from raw water (river water) reducing dependency on municipal tap water and easing water * The water withdrawal and wastewater discharge types listed above are
191 supply pressure. entirely freshwater (Total Dissolved Solids ≤1000 mg/L).
* Enhances water conservation at the source while increasing the water recycling rate at the end-of-pipe system. * In addition to municipal and surface water Avary (Pengding) also utilizes
rainwater. However its usage volume is extremely low and no flow meters are
installed; therefore this data is neither tracked nor presented.
10 * Water Intensity Formula: Water Intensity = Annual Water Withdrawal
Kaohsiung 6352 101 * The rainwater harvesting tank is deployed for backup water storage (1630 m3) adding 1 day of reserve capacity. (Metric Tons) ÷ Annual Avary Consolidated Revenue (RMB 10000).* Municipal water trucks can transport water from the Nanhua (Tainan) and Mudan (Pingtung) reservoirs as an emergency
1526 (Reservoir response. * For wastewater discharge data the figures for the Shenzhen and Huai'an
Capacity) regions exclude domestic wastewater discharge.
72Integrity Management
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▓ Company Water Intensity (Unit: 10000 Tons / RMB 10000) Water Conservation Initiatives
In 2025 the Company’s production campuses actively implemented process water-saving initiatives
6..4 achieving a cumulative annual water savings of 467640 metric tons.
Decrease 41.3%
3.76 Key Initiatives Details Performance
Water reduction and
conservation retrofits for Reducing overflow volume or lowering water usage
low-risk production lines grades on low-risk production lines.
89255 metric tons
20132025
Pure water and RO water Introducing Reverse Osmosis (RO) concentrate
Note: Water Intensity Formula: Water Intensity = Annual Water Withdrawal (Metric Tons) ÷ Company Annual Consolidated recovery systems recovery systems to minimize wastewater discharge. 136497metric tons
Revenue (RMB 10000).Utilizing circulation pumps to transfer the overflow
Water Recycling and Reduction Post-pickling water reuse from post-pickling rinsing tanks back into pre-pickling rinsing tanks substituting the need for fresh 11910 metric tons
overflow water replenishment.The Company adheres to the principle of prioritizing water conservation and circular utilization. We actively introduce high-
performance water recycling equipment to reuse treated wastewater across production processes environmental cleaning
landscape irrigation and other scenarios based on water quality requirements. The wastewater recycling standards at all campuses Water Stewardship Management and Disclosure
outperform local regulatory requirements. In 2025 the Company’s recycled water volume reached 10.77 million metric tons
achieving a wastewater recycling rate of 50.4%. Water intensity decreased by 41.3%compared to the 2013 baseline year. The The Company’s water resource management achievements have received prestigious international
Company has set clear water-saving targets: to reduce water intensity to 3.72 metric tons / RMB 10000 by 2026 and to 3.68 recognition. In 2025 the Company was awarded an “A” rating in the CDP Water Security
metric tons / RMB 10000 by 2030. Questionnaire maintaining its industry-leading position. In 2019 the Shenzhen Campus became the
first in the industry to achieve the AWS (Alliance for Water Stewardship) Platinum certification. As of
2025 all of the Company’s production campuses in Mainland China have obtained and successfully
▓ Company Recycled & Reused Water Volume and Water Recycling Rate Status maintained this AWS Platinum certification.The Company remains committed to transparent environmental disclosures. Each campus
52.2 independently conducts one soil inspection and two groundwater tests annually. The results of these 1500 50.5 50.5 54.4 50.4 60 evaluations are disclosed to the public proactively welcoming social supervision.
42.246.641.643.942.3
1000 40 ▓ Company CDP Water Security Score & AWS Certification Status
50020
10019608059661084
00
2021 2022 2023 2024 2025 A A
A- * The Shenzhen Campus was the very first
Recycled & Reused Water Wastewater Facility-Wide Water facility within the industry to be awarded 回Vo收lum再e（利10用00水0 T量ons(）万吨) 废Rec水ycl回ing用 Rat率e (%(%) ) 全Re厂cyc水ling回 Ra用te (率%)(%) the prestigious AWS Platinum Certification
Note: Wastewater Recycling Rate Formula: Wastewater Recycling Rate = Recycled & Reused Water Volume ÷ (Recycled & * As of 2025 all production campuses have
Reused Water Volume + Total Wastewater Discharge) × 100%. successfully achieved and continuously
Facility-Wide Water Recycling Rate Formula: Facility-Wide Water Recycling Rate = Recycled & Reused Water Volume ÷ 2023 2024 2025 maintained the AWS Platinum Certification
(Recycled & Reused Water Volume + Total Water Withdrawal) × 100%.The volume of recycled & reused water excludes the internal circulating water within cooling towers.
73About This About Avary Message from ESG Key Major Honors &
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Wastewater Discharge Management 2025 Wastewater Quality Performance by Campus
Region Key Water Quality Unit 2025 Status Regulatory Avary Target Target Achievement Applicable Water Quality
The Company implements a comprehensive wastewater management Metrics Standard Regulation
strategy centered on circular reuse and multi-purpose water cascading. pH - 7.3 6~9 6~9
Based on production processes and specific pollutant characteristics Outperformed Emission Standard of Water
wastewater is meticulously segregated into over 20 distinct categories Shenzhen COD mg/L 74.6 160 100 regulatory & target Pollutants for Electroplating (DB
for separate collection. This setup is supported by 10 major classes of defaults 44/1597-2015)
specialized treatment systems utilizing multi-stage treatment Copper (Cu) mg/L 0.16 1 0.6
processes and an intelligent central control system enabling 24-hour pH - 7.8 6~9 6~9
real-time monitoring of treatment facility operations and water Outperformed Emission Standard of Water
quality status. QinhuangdaoCOD mg/L 238 400 300 regulatory & target Pollutants for Electronic Industry
defaults (GB 39371-2020) Integrated
A professional laboratory has been established within the wastewater Copper（Cu） mg/L 0.8 2 1.5 Wastewater Discharge Standard
treatment plant of each campus to conduct daily water quality testing. pH - 7.5~7.8 6~9 6~9
Automated online monitoring equipment is installed at the Outperformed Emission Standard of Water
wastewater discharge outlets of the primary manufacturing facilities. Huai’an COD mg/L 102~221 500 400 regulatory & target Pollutants for Electronic Industry
This data is linked 24/7 with local environmental protection bureaus defaults (GB 39371-2020)
to guarantee a 100% compliant discharge rate ensuring that Copper (Cu) mg/L 0.19~0.40 2 1.5
discharged water quality consistently outperforms both national and
local regulatory standards. pH - 7.2 5~10 6~9 Outperformed Sewerage Acceptance and Fee
Kaohsiung COD mg/L 12.2 450 120 regulatory & target Standards of Tainan & Kaohsiung Science Park Southern Taiwan
▓ Company Wastewater Online Monitoring Infrastructure defaultsCopper (Cu) mg/L 0.03 0.7 0.5 Science Park
pH - 6.5 5.5~9 5.5~9Outperformed 《Standards for SewageIndia COD mg/L 44.1 150 100 regulatory & target Treatment Plants orderdefaults no.1069/2018》
Copper (Cu) mg/L 0.01 - -
pH - 6~9 6~9 5.5~9
Outperformed Standards for Wastewater
Thailand COD mg/L 30~150 750 300 regulatory & target Discharging from Factories
defaults Entering the Central Wastewater
Copper (Cu) mg/L 0.1~1.7 2 1.9 Treatment System
▓ Surrounding Water Quality Monitoring Points at the Shenzhen Campus
The Company regularly conducts independent monitoring of the water
Monitoring Point quality within a one-kilometer radius of its production facilities.Furthermore the Shenzhen Campus collaborates closely with the local
government to tackle key technical challenges in municipal wastewater
Maozhou River
Shenzhen Park treatment. While continuously driving its own green performance metrics Once wastewater is treated to compliance standards it is routed into Songfu Avenue
the local municipal wastewater treatment facilities for final the Company provides professional engineering-focused solutions for Regularly monitor the
processing. It is then discharged in a fully compliant manner into the ambient water quality in regional water ecosystem remediation actively executing its corporate
Maozhou River (Shenzhen) Qing’an River (Huai’an) and Tang Songlu Road surrounding areas social responsibility.River (Qinhuangdao) imposing zero negative impact on the local
watershed ecosystems.
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Cleaner Production The Company has established a routine monitoring mechanism conducting regular independent testing and hiring external professional agencies annually to continuously track pollutant emission data ensuring that exhaust gas emissions are fully
compliant and far superior to national regulatory standards. During the reporting period the Company’s emission concentrations
Cleaner Production Initiatives and Certifications were below 10% of the concentrations stipulated by regulations.Manufacturing Source
The Company strictly complies with national and industry environmental laws and standards. In Control End-of-Pipe Treatment Monitoring & Verification
accordance with the Cleaner Production Specifications for the Printed Circuit Board Manufacturing
Industry we have established a comprehensive full-process manufacturing management system. By
co-advancing source control alongside end-of-pipe treatment cleaner production practices have been * Use-of Clean Raw Materials * Exhaust-Gas Scrubbing-Towers * Regular Independent
fully integrated across our operations.Since 2010 the Company has proactively initiated cleaner * Enclosed-Capture for * Dust-Collectors. Testing
production audits. Through the execution of numerous optimization initiatives we have successfully Stationary Sources * Activated-CarbonAdsorption
achieved operational benefits - including reduced material consumption and lowered manufacturing
costs - while simultaneously strengthening our core green competitiveness. * Process Optimization * Continuous-Innovatione
2025 Cleaner Production Audit Status 2025 Key Atmospheric Pollutant Emissions
Shenzhen Qinhuangdao Huai’an Status Pollutant Name Emissions Volume (ton) Air Pollutant Emission Intensity*Campus (kg/RMB million)Region Region Region
Nitrogen Oxides (NOx) 17.39 0.44
Cleaner Production Audit √ √ √ Sulfur Dioxide (SO2) 0.13 0.0034
Note: Cleaner production audits are conducted in accordance with the Measures for Cleaner Production Audits enforced in Volatile Organic Compounds (VOCs) 29.12 0.71
Mainland China. This framework is not applicable to the Kaohsiung (Taiwan) Thailand and India regions.▓ Particulate Matter (PM) 14.38 0.37 2025 Key Sustainability Performance Metrics
Note: * Air Pollutant Emission Intensity = Pollutant Emissions Volume (kg) ÷ Annual Company Consolidated Revenue (RMB Million).* Due to production capacity expansion at the Huai’an Campus in 2025 the consumption of raw materials relating to Nitrogen Oxides (NOx) and
Volatile Organic Compounds (VOCs) increased resulting in fluctuations in corresponding emission volumes.* Volatile Organic Compounds (VOCs) emissions variations were also influenced by the introduction and commissioning of new production
50.4% 94 1.282 6237 capacities at the newly added Avary Thailand (Pengsheng) Campus.% Billion kWh MWh * All the above emission volumes strictly comply with relevant environmental regulations laws and Environmental Impact Assessment (EIA)
Wastewater Waste Recycling & Procured Green Solar Photovoltaic standards.Recycling Rate Resource Recovery Rate Electricity Generation
▓ Historical Key Atmospheric Pollutant Emissions Status(Unit: ton)
Air Pollution Prevention and Control 37.24
29.12
The atmospheric pollutants generated during the Company’s production processes primarily include
Nitrogen Oxides (NOx) Sulfur Dioxide (SO2) Particulate Matter (PM) and Volatile Organic 17 12.8 13.58 16.48 13.43 15.99 16.95 17.39 14.38
Compounds (VOCs) among others. To continuously reduce pollutant emissions the Company 5.73 8.15 9.08 10.04
optimizes management and control right from the manufacturing source prioritizing the substitution 0.16 0.12 0.06 0.33 0.13
of highly volatile raw and auxiliary materials with clean materials and utilizing enclosed process
technologies to achieve complete collection from stationary pollution sources. Meanwhile advanced 2021 2022 2023 2024 2025
treatment equipment such as exhaust gas scrubbing towers dust collectors activated carbon
adsorption and zeolite rotors have been introduced effectively reducing the total emissions of N氮itro氧gen 化Oxid物es S二ulfur氧 Dio化xide硫 挥Vola发tile 性Orga有nic 机物 悬Pa浮rticu微late M粒atter (PM)
atmospheric pollutants. (NOx) (SO2) Compounds (VOCs)
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Air Emissions Key Metrics & Target Achievement Status
Industrial Park Key Atmospheric Metrics Unit 2025 Status Regulatory Standard Company Target Target Achievement
VOCs mg/m3 1.28 80 64
Particulate Matter (PM) mg/m3 7.04 120 96
Shenzhen Outperformed Regulatory Targets
NOx (Boiler) mg/m3 10.80 150 120
SO2(? Boiler) mg/m3 0.00 50 40
VOCs mg/m3 1.94 50 40
Particulate Matter (PM) mg/m3 2.40 120 96
Qinghuangdao NO Outperformed Regulatory argetsx
(Boiler) mg/m3 16.19 50 25
SO2 (Boiler) mg/m3 1.06 10 8
VOCs mg/m3 1.71 60 48
Particulate Matter (PM) mg/m3 2.72 20 16
Huai’an Campus I NO Outperformed Regulatory Targetsx
(Boiler) mg/m3 16.34 50 40
SO2?(Boiler) mg/m3 0.00 35 28
VOCs mg/m3 3.11 60 48
Particulate Matter (PM) mg/m3 2.34 20 16
Huai’an Campus II NO Outperformed Regulatory Targetsx
(Boiler) mg/m3 3.54 50 40
SO2?(Boiler) mg/m3 0.00 35 28
VOCs mg/m3 1.52 60 48
Particulate Matter (PM) mg/m3 2.33 20 16
Huai’an Campus III NO Outperformed Regulatory Targetsx
(Boiler) mg/m3 15.83 50 40
SO2(? Boiler) mg/m3 0.00 35 28
VOCs mg/m3 8.86 100 80
Particulate Matter (PM) mg/m3 33.51 75 60
India Industrial Park NOx Outperformed Regulatory Targets
(Boiler) mg/m3 263.01 710 568
SO2(? Boiler) mg/m3 6.86 / 28
Kaohsiung Industrial Park
Pengsheng (Thailand) VOCs mg/m3 5 / 60 Outperformed Regulatory Targets
Industrial Park VOCs mg/m3 0.12 30 30 Outperformed Regulatory Targets
Note: The parameters listed above constitute core regulatory monitoring metrics. 76Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
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Waste Management Strategy and Process Waste Management Performance
The Company’s waste management strictly follows the three-pronged strategy of reduction resource recovery In 2025 the Company completed 100% full-coverage audits of 8 general waste disposers and 36 hazardous wasteand harmless disposal. Grounded in the philosophy of “Green Innovation Green Procurement and Green disposers. The Company classifies its waste into two categories: general waste and hazardous waste which are furtherProduction” we optimize material utilization across three critical stages - product design raw material divided into resourceable waste and non-resourceable waste based on their recycling attributes.During the reporting
procurement and manufacturing processes - to minimize waste directly at the source. period the Company’s total waste volume increased by 14.3% compared to 2024. The total volume of general waste was
39559 tons and the total volume of hazardous waste was 53724 tons. The hazardous waste intensity was 13.7 kg/RMB
At the resource utilization level the Company has constructed a four-level recovery system: prioritizing direct 10000 representing a 17.5% increase compared to 2024. This growth was primarily driven by the increase in production
on-site reuse and reclamation treatment reuse within the factories; and externally prioritizing recovery and capacity across various campuses and the inclusion of the new Avary Thailand (Pengsheng) campus. Despite the volume
utilization by the original raw material manufacturers followed by entrusting professional agencies with increase the Company achieved a waste resource recovery rate of 94% maintaining its target of a recovery rate above
reprocessing and reuse thereby maximizing the recycling and utilization rate of resources. For non- 90% for the 13th consecutive year.resourceable waste that cannot be recycled qualified professional institutions are uniformly entrusted to
implement harmless disposal methods such as waste-to-energy incineration and thermal energy recovery. The Company advances its resource recovery management in accordance with the UL 2799 Zero Waste to
Landfillstandard. Relying on its waste management system for real-time collection and data tracking the Company
To strengthen technical support and compliance management the Company has established a specialized precisely manages waste streams such as spent etching solutions micro-etching solutions (copper-containing waste
organization of environmental experts to research and develop innovative resource recovery technologies liquids) and waste liquids containing nickel gold palladium and silver achieving on-site recovery and reuse within the
enhancing waste recovery value while reducing generation volumes and environmental impacts. Every year on- factories. Currently all major production campuses have successfully obtained the UL 2799 Platinum Certification.site audits are conducted for waste treatment service providers at each campus to ensure full-process
compliance in disposal. Through an information management system and GPS satellite positioning technology In terms of technological innovation in resource recovery the Company achieved a technical breakthrough through its
end-to-end collaborative management and control are achieved covering on-site storage transport circulation copper recovery project: by utilizing on-site processes copper carbonate waste is successfully converted into copper
and terminal disposal of waste. Meanwhile the Company regularly conducts specialized training on waste oxide and directly reused in production recovering 1019 tons of copper annually and reducing carbon emissions by
classification management with cumulative participation in waste education and training reaching 203 person- approximately 3943 tons. Simultaneously a waste acid recovery project is being planned; once completed it will be
times in 2025. capable of recovering 1500 tons of nitric acid per year effectively lowering procurement costs and enhancing production
efficiency.In the field of cross-industry collaborative carbon reduction the Company innovatively utilized waste alkali
generated from peer industries’ production for resource recovery and regeneration using it to replace purchased fresh
liquid caustic soda for acidic wastewater treatment. Against the backdrop of a lack of explicit regulatory guidelines in
▓ Avary Holding Waste Management Process China the project was legally implemented following reviews by national and local eco-environmental regulatory authorities and expert panels becoming the first compliant waste alkali reuse demonstration project in Mainland China.Following the implementation of the project it can replace 3600 tons of purchased fresh liquid caustic soda annually and
reduce greenhouse gas emissions by 1066 tons of carbon dioxide equivalent per year. By virtue of this innovative
practice the Company was honored with the “Zero-Waste Supply Chain” Award by the China National Resources
Recycling Association and obtained a Scientific and Technological Achievement Evaluation Certificate.▲“Zero-Waste Supply Chain” Award & Scientific and Technological
Achievement Evaluation Certificate
77About This About Avary Message from ESG Key Major Honors &
Integrity Management Environmental
Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Report Holding Recognitions
for Long-term Steady Stewardship & Green
the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
2025 Waste Removal and On-site Reuse Status
Primary Category Secondary Category Waste Classification Removal / Reuse Volume (Tons) Proportion (%) Resource Disposal (Tons) Proportion (%) Non-resource Disposal (Tons)
Other Resource Types 4397 11.0 4397 -
Other Metals 9896 25.0 9896 -
Other Non-resource Types 4751 12.0 - 4751
Waste Wood 2193 5.5 2193 -
General Waste
Waste Paper 8943 22.6 8943 -
Waste Plastics 9275 23.6 9275 -
Precious Metals 104 0.3 104 -
Industrial Waste Removal
Volume Subtotal 39559 100 34808 87.99 4750
Scrap Boards & Offcuts 3999 7.5 3999 -
Other Resource Types 2780 5.8 2780 -
Other Non-resource Types 6384 11.9 - -
Hazardous Waste
Waste Liquids 20831 38.2 20831 6384
Metals 19730 36.6 19730 -
Subtotal 53724 100 47340 88.12 -
Total 93283 50 82148 11135
On-site Reuse & Reduction / Various Waste Liquids 92800 50 92800 -
Total Waste Removal & Reuse Total 186083 100 174948 94.02 11135
Note:1.The waste generation weight only accounts for the actual weight cleared and transported out of the campus as waste excluding volumes recycled and reused directly within the factory campus.
2.he product recycling percentage is calculated based on the circular reuse share of scrap boards and offcuts = Volume of scrap boards and offcuts sold ÷ Removal volume.
3.Because the Company does not manufacture end-consumer products product lifecycle management focuses primarily on the recovery and reuse of scrap boards and offcuts. The recycling vendors process these materials by crushing the
boards to recover metals such as gold and copper and then turning the remaining pulverized materials into construction material fillers. In 2025 the total removal volume of scrap boards and offcuts was 3999 tons achieving a recycling and
reuse proportion of 100%.
4.Various waste liquids reused and reduced within the factories include: spent etching solutions micro-etching solutions (copper-containing waste liquids) nickel-containing waste liquids gold-containing waste liquids palladium-containing
waste liquids and silver-containing waste liquids among others.
5. “Other non-resource types” include incineration-bound waste (industrial waste and non-recyclable domestic/municipal waste).
78About This About Avary Message from ESG Key Major Honors &
Integrity Management Environmental
Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
2025 Waste Treatment and Disposal Status
Category Waste Recovery Method On-site (Tons) Off-site (Tons) Total Volume (Tons) Proportion (%) Note:
* Waste recycled and reused on-site
Recyclable Waste Treatment Status does not leave the factory grounds
Reuse for original purpose 70
and incurs no commercial
- 70 0.20% transaction fees; therefore precise
General Waste On-site reuse & reduction 3 4
measurement devices are not
-80
8 34808 99.80% utilized for these streams and on-
Subtotal 70 34808 34878 100% site recovery/reuse weights are estimated values.Reuse for original purpose 2 - 36
236 0.17% * The estimated total weight of
reused general waste is calculated
Hazardous Waste On-site reuse & reduction 92800 47340 140140 99.83% based on the actual quantity of
items reused within respective
Subtotal 92800 47577 140377 100% classifications multiplied by a
Non-recyclable Waste Treatment Status predefined unit weight estimate.* The estimated weight of reused
Incineration (Energy Recovery) 0 4751 4751 100% hazardous waste (such as spent
acid recovery) is calculated based
General Waste Landfill 0 0 0 0 on the generation volume and the
Subtotal 0 4751 4751 100% corresponding reduction in fresh raw material input.Incineration (Energy Recovery) 0 6384 6384 100% * The off-site treatment weight for
general waste includes the
Hazardous Waste Landfill 0 0 0 0 recycling and recycling-disposal
Subtotal 0 6384 6384 100% weights of kitchen waste.Environmental Services and Promotion
Green Buildings & Energy Saving Low-Carbon Transportation
The Company comprehensively promotes energy-saving and carbon-reduction Transportation is a critical link in the Company’s advancement of green logistics.actions reducing full-lifecycle energy consumption and environmental impacts by Placing a high priority on commuting safety the Company operates scheduled
building green-certified buildings and manufacturing plants. As the core carrier of electric shuttle bus services at designated stops across high-density employee areas.R&D collaboration in the PCB industry chain the Company’s headquarters Concurrently a monthly evaluation mechanism for material cargo loading and
Shenzhen Avary Times Building was awarded the National 3-Star Green Building consolidation rates has been established to continuously optimize freight dispatching
Design Label (the first in Bao’an District Shenzhen) and simultaneously obtained and reduce greenhouse gas emissions during transport. In 2025 through material
LEED Platinum Certification. Shenzhen Campus I Qinhuangdao Hongqisheng consolidation optimization and the promotion of green electric commuting the
Huai’an Campus I and Huai’an Campus II have all passed the Green Factory Company saved a cumulative 1691 kiloliters of fuel reducing carbon emissions by
Certification by the National Ministry of Industry and Information Technology. approximately 5614 metric tons. Moving forward the Company will continuously
Furthermore all newly built campuses of the Company are planned and constructed enhance cargo loading efficiency enrich green travel options for employees and
in strict accordance with green factory and green building standards. optimize commuting service plans.▲ Avary Times Building Obtained LEED
Platinum Certification
79This chapter addresses the double materiality topics
* Occupational Health and Safety (OHS) * Talent Development
* Talent Attraction and Retention * Diversity Equity and Inclusion (DEI)
Under the Company’s ESG Development Committee the Corporate Culture Sub-group spearheads the
integration of corporate culture employee communication and care initiatives driving diversity equity and
inclusion (DEI) humanistic care and the cultivation of a positive workplace atmosphere. The Human
Governance Resources Department centrally oversees human rights management talent development and the remuneration and benefits system. It formulates and implements frameworks spanning labor rights protection
talent cultivation and incentive and benefits schemes to safeguard the legitimate rights and career
advancement of employees. Concurrently the Safety Committees across our industrial parks are dedicated to
occupational health and safety (OHS) management enforcing safety regulatory systems conducting hazard
identification and risk assessments and overseeing safety training and emergency management.Guided by our core values of “Integrity Responsibility Innovation Excellence and Benevolence” the
Company remains committed to meritocracy openness and inclusiveness guaranteeing equal employment
opportunities and free choice of occupation for all employees. Centering on the full lifecycle of talent selection
cultivation utilization and retention the Company has engineered a comprehensive all-dimensional training
Strategy framework incorporating school-enterprise collaborations general education professional skills managerial
competencies and talent development to continuously elevate employees’ comprehensive competencies.Furthermore the Company fully implements a robust performance management system that integrates
Management by Objectives (MBO) multi-dimensional assessments team performance evaluations and agile
reviews. This is accompanied by ongoing optimizations to remuneration benefits and OHS mechanisms
thereby firmly safeguarding employee rights empowering talent growth and ensuring workplace safety.Indicator 2025 Performance
Retention Rate of Key Talent 97.9%
Overall Employee Satisfaction 89%
Total Number of Training Courses Delivered 27745 Courses
Indicator and “Six Loves” (Liu Ai) Employee Care Activities 4827
Performance “Six Assists” (Liu Zhu) Employee Assistance Initiatives 98
Public Welfare Activities and Charitable Donations RMB 4.28 million
80
Note: For further details please refer to the Material Topic Management Targets & Performance – Social Dimension.Sustainable Management
Governance and StrategyMajor Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Diversity & Equality Human Rights Management
The Company strictly abides by relevant laws and regulations including the In strict accordance with the RBA Code of Conduct for the Responsible
Labor Law the Labor Contract Law the Social Insurance Law and the Business Alliance and internationally recognized principles of labor and Assess Human Rights Risks and Communicate with Stakeholders
Provisions on the Prohibition of Using Child Labor of Mainland China as human rights the Company with the professional assistance of BSR Potential Impacts Disclose human rights management
well as the Labor Standards Act of the Taiwan region. Standardized and Assess human rights risks and information on the company (Business for Social Responsibility) has conducted internal human potential impacts using RBA SAQ website.unified human resource management systems have been established across rights assessments to refine relevant internal management policies. and RBA VAP.our operational sites in Taiwan Shenzhen Huai’an Qinhuangdao India Focusing on key human rights material topics - such as labor rights
and Thailand fully guaranteeing fair and reasonable working conditions equal pay for equal work child labor discrimination and harassment Identify Potential Human Human Monitor and Track Actions
alongside a safe and healthy work environment for all employees. Active in forced labor human trafficking freedom of association a safe and Rights Risk Issues Rights Due and Effectiveness
Identify human rights risks Continuously monitor relevant
practicing mainstream international human rights and labor standards the healthy working environment and corporate culture construction - the Diligence and impact levels during Process actions and their effectiveness.Company adheres to the Universal Declaration of Human Rights the United Company continuously optimizes its risk mitigation and remediation operational activities.Nations Global Compact (UNGC) the United Nations Guiding Principles on mechanisms through awareness advocacy and normalized risk
Business and Human Rights (UNGPs) and the Responsible Business assessments effectively safeguarding the labor and human rights of our Continuous Improvement
Establish Improvement Goals
Alliance (RBA) Code of Conduct. We firmly uphold the core labor workforce. In 2025 no major disputes or material incidents occurred Implement relevant mitigation and Based on the survey results improvement measures in
principles established by the International Labour Organization (ILO) Core regarding human rights including child labor non-compliant use of establish improvement plans for accordance with the improvement
issues where risks are more likely
Labour Conventions including freedom of association and the effective juvenile workers discrimination and harassment forced labor human plan.to be exposed.recognition of the right to collective bargaining the elimination of forced trafficking or freedom of association.labor the abolition of child labor and the elimination of discrimination in
respect of employment and occupation. Concurrently we benchmark our Utilizing the CAPDCA (Check-Act-Plan-Do-Check-Act) cyclical quality management approach the Company conducts periodic human rights due diligence.governance practices against the Tripartite Declaration of Principles The scope of units undergoing human rights impact assessments includes all subsidiaries achieving a 100% coverage rate of our operational activities thereby
concerning Multinational Enterprises and Social Policy. To systematically comprehensively evaluating human rights risks and potential impacts.safeguard the fundamental rights of our employees the Company has
enacted the Avary Holding Human Rights Policy Statement. For supply
chain human rights management we have instituted the Supplier Social Frequency Human Rights Risk Identification Results
Responsibility Management Operations Measures driving suppliers
contractors and other partners to jointly uphold human rights protection
requirements. Furthermore the Company has established a normalized * Working Hours Management
compliance management mechanism to proactively track periodically
collect and assess labor and social security regulations from competent
authorities across various jurisdictions as well as customer code * Occupational Health Safety and
requirements continuously validating the legitimacy suitability and Environment (OHSE)
effectiveness of our compliance management. The Company mandates that * Non-discrimination Diversity and * Anti-harassmentInclusion * Equal Wages and Benefits
all operational regions strictly execute local labor and employment-related * Freely Chosen Employment * Forced Labor and Human
laws comprehensively safeguarding the legitimate rights and interests of all Trafficking Avoidance
stakeholders including employees and partners while building a robust * Child Labor and Juvenile Workers
mechanism for human rights risk identification monitoring and full- Protection * Data Privacy and Security
* Personal Freedom and Security
lifecycle management. In daily operations and workplace management the * Freedom of Association and Grievance * Air Pollution and Noise Control
Company consistently upholds the core philosophy of inclusivity Mechanisms
accountability and sustainability standardizing workplace practices and
continuously advancing the steady elevation of our labor and human rights Low Medium High Impact
management. 81
High Medium LowMajor Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Report Holding the Chairman Performance Recognitions
for Long-term Steady Stewardship & Green
Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Based on the results of the human rights risk identification the Company has identified 12 topics as material human rights issues: Working Hours Management Occupational Health Safety and Environment (OHSE) Anti-harassment Equal
Wages and Benefits Forced Labor and Human Trafficking Avoidance Non-discrimination Diversity and Inclusion Freely Chosen Employment Data Privacy and Security Personal Freedom and Security Air Pollution and Noise Control
Child Labor and Juvenile Workers Protection and Freedom of Association and Grievance Mechanisms. The Company here clarifies the assessment mechanisms and the respective mitigation and remediation measures for each topic.◆ Assessment Mechanisms for Material Human Rights Issues
Stakeholders Material Human Rights Issues Impact Assessment Mechanisms Actual Operational Status
Occupational Health Safety and Environment (OHSE)
* RBA recertification audits are conducted regularly every two years.* Customers conduct annual audits across CSR management systems and quality categories to ensure stable
* Working Hours Management * RBA SAQ (Self-Assessment Questionnaire)
operations.* Anti-harassment * RBA VAP (Validated Assessment Program) * Annual employee satisfaction surveys are deployed to capture employees’ voices timely and drive continuous
* Equal Wages and Benefits * Customer Audits
improvements.Employees * Forced Labor and Human Trafficking Avoidance * OHSAS 18001/45001 * Diversified communication channels are established to capture grass-roots employees’ needs listen to their
* Non-discrimination Diversity and Inclusion * Employee Satisfaction Surveys
insights and safeguard their rights.* Freely Chosen Employment * Statutory and Regulatory Assessment & * Employee human rights protection practices are updated dynamically in line with local regulations to ensure
* Personal Freedom and Security Compliance
compliance.* Freedom of Association and Grievance Mechanisms * Zero use of child labor or non-compliant juvenile workers.* Child Labor and Juvenile Workers Protection
Occupational Health Safety and Environment (OHSE)
* Annual SER (Social and Environmental Responsibility) risk assessments are conducted for active suppliers.* Supplier Risk Assessment Questionnaire
Tiered and classified management is applied based on the risk levels (High/Medium/Low) with high-risk
Suppliers * RBA SAQ
* Working Hours Management suppliers integrated into the annual audit pipeline.Contractor? * RBA VAP
* Freely Chosen Employment * In 2025 72 suppliers were audited resulting in 46 “Green” and 26 “Yellow” ratings.* On-site Audits
* Equal Wages and Benefits * In 2025 no transactions were suspended due to suppliers failing to remediate “Red” audit results.* An Information Security Committee has been established to conduct regular cybersecurity audits and hazard
* Information Security Audits identification.Customers Data Privacy and Security
* ISO 27001 Certification Audits * Internal and external audits for the ISO 27001 Information Security Management System are conducted
annually.Community Air Pollution and Noise Control Industrial Park Monitoring Internal and third-party monitoring of air emissions are conducted annually to ensure full regulatory compliance.Upon identifying any human rights risks potential impacts or violations the Company proactively implements corresponding mitigation or remediation measures. By conducting rigorous human rights due diligence the Company is
equipped to comprehensively assess and identify latent human rights risks impacts and non-compliance events as well as to evaluate the effectiveness of human rights initiatives. This feeds into the iterative review of our human rights
policies management regulations and procedures ensuring the continuous optimization of our human rights protection framework.
82Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
◆ Mitigation and Remediation Measures for Material Human Rights Issues
Stakeholders Material Human Rights Issues Mitigation Measures Remediation Measures
1. Implement the ISO 45001 Occupational Health and Safety Management System across all industrial parks and 1. Formulate and institutionalize the Measures for Reporting Investigation and Handling of
establish Avary Holding’s OHSE policies and frameworks in strict accordance with RBA standards and relevant Occupational Injuries.occupational health laws and regulations. 2. Conduct periodic emergency drills and systematically review and evaluate drill outcomes.Occupational Health Safety 2. Deliver multi-channel safety training initiatives. 3. Provide employees with appropriate personal protective equipment (PPE) that fully complies with
and Environment (OHSE) 3. Convene monthly Safety Committee meetings to review workplace safety anomalies across the Company; each regulatory mandates.manufacturing plant conducts monthly cause analyses and discusses corrective actions regarding anomalies that 4. Strengthen advocacy and standard operating procedures (SOPs) for PPE (personal protective
occurred during the month. equipment) compliance and enforce on-site supervisory inspections of employee PPE usage.
4. Periodically monitor and test occupational hazard factors in the workplace. 5. Provide regular occupational health examinations for employees in hazard-exposed positions.
The Company adheres to fundamental human rights principles - including the Universal Declaration of Human
Rights the United Nations Global Compact the United Nations Guiding Principles on Business and Human Rights
and the RBA Code of Conduct - as well as local laws and regulations across our global operational sites. We 1. Promulgate the Avary Holding Human Rights Policy Statement.periodically review the implementation of our human rights policies to ensure robust enforcement. 2. Regularly review and revise management measures on an ad-hoc basis annually to continuously
1. [Working Hours Management]Strictly control working hour frameworks and enforcement in accordance with optimize institutional systems and workflows.
the Working Hours and Employee Overtime Management Measures and RBA mandates. 3. Conduct annual internal and external audits including customer audits and RBA VAP audits driving
2. [Anti-harassment] Enact the Measures for the Prevention and Management of Sexual Harassment and optimization and corrective actions based on audit findings.
Discrimination to eradicate sexual harassment. Implement regular training and assessments across all 4. Leverage the “Applicant Recruitment Verification Protocol” and deploy facial recognition via the HR
organizational levels annually supplemented by monthly on-site random audits and telephonic interviews. smart system during card-swiping to verify identity completely eradicating child labor.
3. [Equal Wages and Benefits] Maintain a compensation and benefits framework that ensures external 5. Utilize early-warning automated systems to provide timely alerts preventing employee overtime and * Working Hours competitiveness and internal equity. Beyond regular monthly salary payments the Company offers variable enforcing strict working hour monitoring.Management incentive pay based on actual operational performance including year-end performance bonuses continuous 6. Ensure employee wage payments fully comply with all applicable remuneration laws including * Anti-harassment
* Equal Wages and Benefits service bonuses employee profit-sharing innovation and R&D rewards and proposal improvement bonuses.minimum wage and overtime compensation mandates.
7. Maintain global compensation competitiveness by coordinating the annual planning and review of
* Forced Labor and Human The Company also provides comprehensive statutory benefits.Trafficking Avoidance 4. [Forced Labor and Human Trafficking Avoidance] Establish the Humane Treatment Operational Measures
compensation policies across all industrial parks in response to macroeconomic changes. Leverage
SOP. Deliver annual training prohibiting forced labor and human trafficking for recruitment personnel and salary benchmarking reports provided by professional consultancies to gauge local market wage levels * Non-discrimination
Diversity and Inclusion general employees. Integrate working hour early-warning features within the attendance system to review and
and formulate timely salary adjustments. Grant paid annual leave in accordance with statutory
regulate daily working hours. Conduct annual training and assessments across all levels coupled with monthly regulations regularly track leave utilization via the HR system and prompt employees to take timely * Freely Chosen
Employment on-site random audits and telephonic interviews.leave to prevent excessive accumulation promoting physical and mental well-being and work-life
balance.* Personal Freedom and 5. [Non-discrimination Diversity and Inclusion] Respect diversity and inclusion strictly uphold equal treatment
Security and dedicate efforts to fostering equal employment opportunities. We prohibit differential treatment based on
8. Champion diversity and inclusion with a focus on female empowerment respecting employees’
nationality race ethnicity skin color age gender gender identity physical or mental disability pregnancy personal aspirations and welcoming more women into the workforce. Provide dedicated care for * Freedom of Association marital status religion political stance or union affiliation. Enact the Special Group Protection Operational employees during pregnancy maternity leave and lactation. Introduce nutritional meal plans for and Grievance
Mechanisms Measures to ensure non-discriminatory and fair treatment for female workers safeguarding their human rights
pregnant mothers and issue “Pregnancy Care Certificates” to offer personalized support. Lactation
health and welfare. rooms are equipped across production facilities in all industrial parks; lactating employees are entitled * Child Labor and Juvenile 6. [Freely Chosen Employment] Enact the Humane Treatment Operational Measures SOP to ensure that all to leave work 1 hour early daily to balance career and family. Offer cash incentives and subsidies for Workers Protection employment is strictly voluntary. multi-child births. Provide 1 additional day of fully-paid newborn care leave beyond statutory
7. [Personal Freedom and Security] Enact the Humane Treatment Operational Measures and Employee Safety maternity leave. Present a corporate care gift package to female employees upon their return to work
Management Operational Measures strictly prohibiting restrictions on freedom of movement to safeguard post-childbirth.employee security. 9. Institutionalize the Employee Handbook explicitly safeguarding Company-wide protocols regarding
8. [Freedom of Association and Grievance Mechanisms] Enact the Measures for Managing the Right to freedom of association and collective bargaining rights with daily operations managed in strict
Freedom of Association and Collective Bargaining and build diversified communication channels to safeguard accordance with relevant laws.employee rights. 10. Establish diversified communication channels through which employees can lodge grievances at any
9. [Child Labor and Juvenile Workers Protection] Enact the Identity Verification Measures for New Employee time. Conduct timely investigations and remediate situations based on feedback. In 2025 zero (0)
Recruitment to categorize incoming personnel eliminate child labor and safeguard the rights and interests of grievances were reported regarding harassment or discrimination.juvenile workers.
83
EmployeesIntegrity Management
About This About Avary Message from ESG Key Major Honors &
Environmental
Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Report Holding the Chairman Performance Recognitions
for Long-term Steady Stewardship & Green
Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
◆ Mitigation and Remediation Measures for Material Human Rights Issues (Continued)
Stakeholders Material Human Rights Issues Mitigation Measures Remediation Measures
1. Establish the Supplier Social Responsibility Management Operations Measures to identify suppliers’ risk
Occupational Health and profiles conduct audits and implement controls accordingly thereby mitigating suppliers’ SER (Social
Safety (OHS) and Environmental Responsibility) risks.
1. Conduct annual supplier audits and rigorously track the progress of corrective actions.
2. Sign the Safety and Health Commitment Letter with suppliers to formally communicate the Company’s 2. Provide relevant education and training sessions for suppliers.
occupational health management mandates.Suppliers &
Contractors
* Working Hours 1. Implement ad-hoc spot-check audits and conduct RBA SAQ evaluations for suppliers.Management 1. Conduct annual supplier audits to proactively avert human rights risks across the supply chain. 2. Mandate that suppliers execute corrective actions targeting human rights risks and continuously track their
* Freely Chosen 2. Leverage supplier education and training to advocate for the significance of labor rights and instruct on remediation progress.Employment practical enforcement methods thereby reducing human rights risks preemptively. 3. Require suppliers to provide compensatory remedies - such as “counseling” or “policy revisions” - for
* Equal Wages and Benefits employees whose human rights and interests have been compromised.
1. Conduct annual information security audits and internal reviews to ensure that information systems and
1. Abide by applicable personal data protection laws and regulations across all operational regions ensuring network environments comply with security enforcement standards; strictly execute information security
compliance by employees and third parties while jointly dedicating efforts to safeguarding personal data policies and customer privacy protection measures to prevent any leakage of corporate trade secrets and
security to protect the rights of customers and other data subjects. customer data.Customers Data Privacy and Security 2. Formulate the Information Security Management Policy as the governance baseline to protect the security 2. If investigations confirm that employees or suppliers are involved in incidents violating privacy and of information assets related to customers business counterparties and corporate operations. personal data protection policies or applicable privacy laws the Company will immediately review and
3. Enhance regulatory awareness among employees and suppliers interacting with customers through optimize management measures. Concurrently we will communicate with the affected customers and
targeted advocacy and operational compliance guidelines on privacy personal data protection and evaluate case-by-case compensatory remedies.information security management. 3. Impose disciplinary actions on personnel involved in non-compliant behaviors in accordance with
applicable disciplinary codes.
1. [Air Pollution] Drive atmospheric pollution reduction and prevention through a three-pronged approach
1. [Air Pollution] Minimize air pollutant emissions by installing exhaust gas scrubbers dust collectors spanning the manufacturing prevention and monitoring phases. At the manufacturing phase deploy clean
activated carbon adsorption systems and introducing innovative technologies. Concurrently conduct raw materials enclosed source collection systems and process optimizations to minimize pollutant
Air Pollution and Noise regular self-directed and external third-party testing annually and continuously track monitoring data for generation. At the prevention phase leverage scrubbers dust collectors activated carbon adsorption and Community Control various pollutants to ensure that all exhaust emissions comply with regulations or remain far below continuously develop/introduce other end-of-pipe pollutant treatment technologies. Finally at the emission control thresholds. monitoring phase retain external third parties for periodic testing to guarantee compliant atmospheric
2. [Noise] Conduct boundary noise monitoring across manufacturing sites in accordance with local laws and pollutant emissions.
regulations at each industrial park location. 2. [Noise] Identify distinct noise sources and execute targeted engineering enhancements such as installing
soundproofing facilities to achieve noise reduction.To safeguard the fundamental labor rights and ensure a safe working environment for our workforce the Company established the Social and Environmental Responsibility (SER) Committee in 2017. The Committee is tasked with governing
fields including labor health and safety environment ethics and management systems. It explicitly defines the Committee’s mandates alongside the powers and responsibilities of its members formulates relevant policies and performance
targets oversees implementation roadmaps and conducts periodic evaluations and reviews.To thoroughly execute electronics industry codes of conduct and ensure internal mechanisms align with the latest Responsible Business Alliance (RBA) Code of Conduct the Company officially became an RBA member on May 24 2021.Annually the Company submits the Self-Assessment Questionnaire (SAQ) via the official RBA Online platform to identify and mitigate latent risks. Furthermore every two years the Company undergoes the RBA Validated Assessment
Program (VAP) conducted by customer-commissioned third-party institutions leveraging an external audit perspective to further uncover opportunities for sustainable optimization and continuous improvement.
84Integrity Management
About This About Avary Message from ESG Key Major Honors &
Environmental
Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
◆ SAQ and VAP Risk Assessment Results Across Industrial Parks Human Rights Advocacy and Training
Category Shenzhen Qinhuangdao Huai’an
Huai’an
Industrial Park Industrial Park Industrial Park I Industrial Park II
India Industrial
Park To effectively manage human rights risks foster a compliant respectful and safe working environment and tangibly & III
safeguard employee rights and occupational health and safety (OHS) the Company systematically deploys human rights
2025 SAQ Score 72.1 72.6 72.1 72.1 68.3 advocacy and education programs rooted in its corporate social responsibility philosophy. These programs achieve
comprehensive coverage of all employees through diversified channels including online and offline courses official
announcements grievance channel posters the “Ding+” APP and specialized meetings. In 2025 the Company’s cumulative
Risk Assessment Medium Risk Medium Risk Medium Risk Medium Risk Medium Risk
training hours for human rights protection exceeded 700000 hours achieving a 100% employee participation rate. Moving
forward the Company will continue to deepen relevant educational initiatives to steadily elevate human rights awareness
2024/2025 VAP 2025: 2025: 2024: 2024:
Score 166.1 181.5 175.4 169.2 (Note) across the entire workforce.Recognition Level Silver Silver Silver Silver /
◆ Human Rights Training Programs and Key Achievements
Note: 1. In 2025 the India Campus did not conduct a VAP audit as there was no such customer requirement; hence only the
SAQ assessment was performed.
2. VAP Recognition Criteria: A full score of 200 points qualifies for the Platinum Recognition Level requiring the closure * Execute Compliance Advocacy and Human Rights Education: Training modules encompass the prohibition of
of all non-conformances (NCs) implemented by the operating site based on customer requests; a score ≥180 qualifies forced labor prohibition of human trafficking prohibition of child labor equal pay for equal work anti-
for the Gold Recognition Level requiring the closure of all Priority and Major NCs; a score ≥ 160 qualifies for the discrimination anti-harassment working hours management compensation and benefits freedom of
Silver Recognition Level requiring the closure of all Priority NCs. association humane treatment communication and grievance channels occupational safety and management
3. The overall decline in SAQ scores was driven by adjustments to the SAQ scoring criteria. Training systems.
Framework &
Building upon RBA third-party evaluations the Company proactively joined the international non- * Promote Grievance Channels and Applications: Assist employees in addressing work and life grievances Deliverables
profit organization BSR in 2021 as an official member introducing objective third-party practitioners building a harmonious working environment characterized by openness mutual respect and streamlined
to carry out internal human rights due diligence assessments. By benchmarking against advanced communication.* Provide a Robust Occupational Safety Training System: Tailor initiatives to distinct operational scenarios and
international practices the Company effectively identifies latent social responsibility risks optimizes position requirements deploying safety onboarding for new hires fire drills first-aider training and in-service
risk response and remediation mechanisms and comprehensively safeguards employees’ labor human safety training.rights and legitimate interests.◆ Human Rights Risk Assessment Statistics
Annual * Employed 208 persons with disabilities globally including 197 across campuses in Mainland China.Proportion of Human Performance & * Conducted 8 internal reviews and 30 external audits; risk assessments indicated a low-risk profile.Category Rights Risk Assessments
Proportion of Risks Proportion of Identified Achievements
Completed over the Past Identified within the Risks with Mitigation
* Achieved a global training volume of 514034 person-times accumulating a total of 745645 training hours.Three Years Assessed Scope Measures Implemented
Own Operations 100% 100% 100%
Contractors and Tier-1
Suppliers 100% 100% 100%
Joint Ventures Not Applicable (N/A) Not Applicable (N/A) Not Applicable (N/A)
85Integrity Management
About This About Avary Environmental Message from ESG Key Major Honors & Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Report Holding Recognitions
for Long-term Steady Stewardship & Green
the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Employee Structure ◆ Employee Distribution by Age Education Job Level Nationality and Region
The Company firmly believes that talent is the core driver of corporate Male Female Total & Proportiondevelopment. Adhering to our core values of “Integrity Responsibility Category Group Headcount % Headcount % Total %Innovation Excellence and Benevolence” we champion meritocracy
≤ 30 years old 14208 45.27 6124 37.84 20332 42.74
openness and inclusiveness to attract global talent while guaranteeing
equal employment opportunities and free choice of occupation for all 31-50 years old 16903 53.85 9977 61.64 26880 56.50Age
employees. Centering on the full lifecycle of talent selection cultivation ≥ 51 years old 276 0.88 85 0.53 361 0.76
utilization and retention the Company provides an all-dimensional and Total 31387 100 16186 100 47573 100
diversified training ecosystem spanning school-enterprise collaborations Master’s & Doctorate 308 0.98 234 1.45 542 1.14
general education professional skills managerial competencies and Bachelor’s 6074 19.35 2574 15.90 8648 18.18
career development. This framework continuously enhances employees’ Education Junior College 10426 33.22 4144 25.60 14570 30.63
comprehensive competencies empowering our workforce to grow in High School & Below 14579 46.45 9234 57.05 23813 50.06
tandem with the Company. As of the end of 2025 the Company’s regular Total 31387 100 16186 100 47573 100
workforce comprised 31055 males and 15886 females representing a net
Senior Management 10 0.03 3 0.02 13 0.03
year-over-year increase of 3811 employees. Our non-regular (contracted)
Non-Senior Management 3750 11.95 712 4.40 4462 9.38
workforce included 332 males and 300 females with 100% of the entire
workforce employed on a full-time basis. During the year the Company Entry-level Engineers 4348 13.85 1758 10.86 6106 12.84Job Level
actively employed 208 persons with disabilities. Workers who are not Entry-level Technicians 19993 63.70 12209 75.43 32202 67.69
employees tracked by the Company primarily consist of construction Other Engineers 3286 10.47 1504 9.29 4790 10.07
contractors non-routine engineering contractors (such as equipment Total 31387 100 16186 100 47573 100
maintenance and modification projects) and routine contracted service Mainland China 29920 95.33 15073 93.12 44993 94.58
personnel (such as security cleaning catering and landscaping) whose China Taiwan 668 2.13 290 1.79 958 2.01
scopes of work are planned and executed based on specific project India 280 0.89 270 1.67 550 1.16
requirements. In 2025 the total hours worked by workers who are not Thailand 223 0.71 247 1.53 470 0.99
employees were equivalent to approximately 6970 person-years.Myanmar 240 0.76 184 1.14 424 0.89
Note: The number of workers who are not employees is estimated in person-years
based on the total hours worked (calculated at 250 working days in 2025 8 hours Nationality Philippines 32 0.10 82 0.51 114 0.24
per day). Vietnam 5 0.02 28 0.17 33 0.07
Attaching great importance to diversity and inclusion (D&I) the Company Indonesia 7 0.02 3 0.02 10 0.02
consistently focuses on female empowerment respects employees’ self- Cambodia 7 0.02 3 0.02 10 0.02
actualization and proactively attracts and retains female talent Others 5 0.02 6 0.04 11 0.02
encouraging them to create value for both the enterprise and society. Total 31387 100 16186 100 47573 100
Influenced by the technical characteristics of our manufacturing processes
Mainland China 30054 95.75 15174 93.75 45228 95.07
production line personnel are predominantly male; however in functional China
roles such as finance human resources sales and quality assurance (QA) Taiwan 339 1.08 265 1.64 604 1.27
female employees account for 57.6% of the workforce. Globally female India 315 1.00 273 1.69 588 1.24Work Region
employees accounted for 34.0% of the total workforce representing a Thailand 672 2.14 461 2.85 1133 2.38
year-over-year increase of 2091 females compared to 2024. This Overseas Regions 7 0.02 13 0.08 20 0.04
demonstrates the Company’s ongoing commitment to providing fair Total 31387 100 16186 100 47573 100
competition and advancement opportunities for both genders. Note: Others include Malaysia Japan South Korea North Korea and New Zealand.
86Integrity Management
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Growth Production Workplace Founding Mission
Employees with Disabilities and Ethnic Minorities ◆ Proportion of New Hires by Region Gender and Age Group
Gender Age Group Mainland China Taiwan China India Thailand Others Overseas Total
Since 2017 the Company has year-on-year expanded the recruitment of employees with disabilities and Sites
ethnic minorities to continuously enhance workforce diversity. As of the end of 2025 the Company ≤ 30 years old 46.29% 18.81% 37.81% 32.71% 0.00% 45.48%
employed 208 staff members with disabilities and 5018 ethnic minority employees (including 4987 in
Mainland China and 31 in the Taiwan region). The employment rate of employees with disabilities fully Male 31-50 years old 28.37% 31.95% 1.71% 16.24% 0.00% 27.59%
complies with regulatory requirements in the jurisdictions where our industrial parks operate. ≥ 51 years old 0.01% 4.16% 0.00% 0.22% 0.00% 0.06%
≤ 30 years old 14.33% 20.79% 54.02% 35.37% 100.00% 15.71%
Gender Age Group Employees with Disabilities % of Total Workforce
Ethnic Minority
Employees % of Total Workforce
Female 31-50 years old 10.99% 21.88% 6.46% 15.35% 0.00% 11.12%
≤ 30 years old 26 0.2 1585 11.89
Male 31-50 years old 129 0.8 0.5 1820 10.9
≥ 51 years old 0.01% 2.41% 0.00% 0.11% 0.00% 0.04%
10.74
≥ 51 years old 5 1.8 7 2.37
≤ 30 years old 7 688 ◆ Turnover Rate and Voluntary Turnover Rate by Job Category0.1 11.85
Female 31-50 years old 40 0.4 0.3 911 9.39 9.9 Category Turnover Rate Voluntary Turnover Rate
≥ 51 years old 1 1.2 7 6.54
Entry-level 0.45% 0.45%
Note: Percentages are calculated based on the respective legal entities to which the employees with disabilities and ethnic minority
employees belong. Mid-level 0.38% 0.38%
Management
Senior-level 0.36% 0.36%
New Hires and Employee Turnover
Total 0.43% 0.43%
Non-Management 6.35% 6.35%
When recruiting the Company strictly follows the Avary Holding Human Rights Policy Statement to foster
an equal employment environment. We pledge to eliminate any form of discrimination against applicants Total Turnover Rate 5.79% 5.79%
based on nationality race ethnicity skin color age gender gender identity disability pregnancy marital
status religion political orientation or labor union affiliation. To ensure an objective and impartial Notes: 1.Total Turnover Rate = Monthly average number of separations / Monthly average headcount at the end of the period.recruitment evaluation the Company has fully introduced scientific assessment tools such as “Logic Tests” 2.Voluntary Turnover Rate refers to separations initiated by employees based on their own volition rather than mandatory terminations by
and “CPAS (Career Personality Assessment System) Tests” for professional and executive positions to the Company.accurately gauge candidate alignment.During the hiring process Human Resources specialists first
communicate with candidates regarding their fundamental background and personal traits followed by in- ◆ Historical Turnover Rates
depth interviews conducted by direct line managers focusing on professional competencies and work
Historical Turnover Rates
experience. All applicants undergo a unified and equitable selection pipeline. Guided by our core talent Over the Past Three Years 2022 2023 2024 2025
selection philosophy of “Three Hearts” - Responsibility Ambition and Initiative - the Company
comprehensively weighs objective criteria such as work experience educational background and Total Turnover Rate 6.6% 7.2% 7.6% 5.8%
professional skills while placing equal emphasis on candidates’ diligence and collaborative spirit striving
to build a harmonious efficient and outstanding team. Voluntary Turnover Rate 6.6% 7.2% 7.5% 5.8%
87Integrity Management
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Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
◆ Employee Turnover Rates by Gender and Age Group Over the Past Two Years ◆ Diversity Metrics by Percentage of Governance Body Members and Workforce
Category Group 2024 2025 Metric Unit 2022 2023 2024 2025
Male 8.7% 6.5%
Proportion of Junior Female Managers % 13.10 13.40 15.30 15.50
Gender Female 5.5% 4.4%
Proportion of Junior & Mid-level
Total 7.6% 5.8% Female Managers % 13.60 13.90 15.50 17.80
≤ 30 years old 9.9% 8.2%
Proportion of Senior Female Managers % 22.20 27.30 23.10 23.10
31-50 years old 5.9% 4.0%
Age Proportion of Female Managers in
≥ 51 years old 0.9% 0.9% Revenue-Generating Functions (Note 2) % 12.60 12.90 13.80 14.20
Total 7.6% 5.8%
Proportion of Females in IT Workforce % 24.60 22.20 19.40 17.50
◆ Percentage of Management Roles by Region/Nationality Proportion of Females in STEM-
Related Functions (Note 3) % 35.40 33.00 33.70 33.60
Management Non-Management Total
Total Workforce Heatcount 35344 41786 43130 47573
Category Group
Headcount % of Headcount % of Non- Headcount % of Total Management Management Workforce Female Managers Heatcount 472 485 662 715
Mainland
China 4267 95.35% 40726 94.50% 44993 94.58%
China Male Managers Heatcount 2997 2992 3595 3760
Taiwan 199 4.45% 759 1.76% 958 2.01%
Proportion of Female Managers % 13.60 13.90 15.60 16.00
India 7 0.16% 543 1.26% 550 1.16%
Thailand 0 0.00% 470 1.09% 470 0.99% Proportion of Male Managers % 86.40 86.10 84.40 84.00
Myanmar 0 0.00% 424 0.98% 424 0.89% Female Employees Heatcount 12555 13443 14095 16186
Nationality
Philippines 0 0.00% 114 0.26% 114 0.24%
Male Employees Heatcount 22789 24866 25314 31387
Vietnam 0 0.00% 33 0.08% 33 0.07%
Proportion of Female Employees % 36 35 36 34
Indonesia 0 0.00% 10 0.02% 10 0.02%
Proportion of Male Employees % 64 65 64 66
Cambodia 0 0.00% 10 0.02% 10 0.02%
Others 2 0.04% 9 0.02% 11 0.02% Note: 1. Junior managers refer to Section Chiefs (Ke-level) and Team Leaders (Zu-level); senior managers refer to Division
Directors (Chu-level) and above.
2. Revenue-generating functions exclude departments such as Human Resources Corporate Commercial Division
Total 4475 100% 43098 100% 47573 100% Headquarters Mansion IT Smart Manufacturing Legal Affairs Supply Chain and Finance.
3. STEM-related functions refer to operational units associated with Science Technology Engineering and Mathematics
Note: Other nationalities include Malaysia Japan South Korea North Korea and New Zealand. disciplines.
88Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Report Holding the Chairman Performance Recognitions
for Long-term Steady Stewardship & Green
Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Communication and Employee Care
Effectiveness of Communication
Communication and Grievance Channels
The Company firmly believes that the sustained achievement of corporate operational milestones relies on the long-
The Company consistently attaches great importance to employee feedback and their legitimate rights and interests. term dedication and value contribution of all employees and that harmonious and stable labor relations serve as the
We advocate for equality and autonomous participation in corporate management encouraging employees to voice cornerstone for forging consensus and moving forward in alignment. Centering on employee well-being and
opinions and recommendations regarding operations and to lodge grievances against non-compliant matters in mutually beneficial outcomes our management frameworks and policies prioritize safeguarding employee rights
accordance with laws and regulations. In 2025 to further hear from the grassroots workforce and precisely and curating a premium corporate environment steering both labor and management to forge ahead toward our
understand employee needs the Company comprehensively optimized and upgraded existing communication corporate sustainability targets. To this end the Company has institutionalized a comprehensive internal control
channels - including employee service hotlines suggestion mailboxes physical suggestion boxes and Employee framework and management standards transparently articulating employee duties and legitimate rights and
Service Centers - and rolled out diversified promotions across online offline and multimedia channels.Online hardcoding these guidelines into the Employee Handbook. This content is not only thoroughly disseminated during
channels leverage internal communication platforms such as “Ding+” “Avary E-Academy” the “Ding Ding Da onboarding but is also systematically integrated into our digital human resources platform for convenient referenceMing” WeChat Mini-Program and official corporate website announcements. Offline channels encompass new-hire effectively guaranteeing employees’ right to know and safeguarding their legal interests to foster stable transparent
onboarding briefings corporate social responsibility (CSR) promotional cards bulletin boards and posters displayed and trust-based industrial relations.across living quarters production workshops cafeterias and dormitories. Multimedia channels utilize LED screens
in living quarters public display screens in workshops and dormitories and campus broadcasting systems.The
Company enforces strict confidentiality protocols regarding whistleblowers and aggrieved parties with grievance Notification of Employee Rights and Operations
dossiers managed exclusively by designated personnel. We ensure timely acceptance rapid processing and time-
bound responses to tangibly elevate employee satisfaction. Supplementing proactive employee feedback the The Company utilizes diversified channels to promptly communicate corporate operations and dynamic
Company hosts routine employee symposiums professional and executive-level (Shih-level) officer symposiums developments to our workforce. Offline engagement is driven via departmental symposiums weekly meetings bi-
Elite Management Trainee Program (Jing-Gan-Ban) sessions and young cadre symposiums executing a total of 168 weekly alignments monthly reviews and ad-hoc expert lectures on industry trends. Online notifications are pushed
sessions throughout 2025.。 through internal corporate emails “Ding+” and the “Avary E-Academy” APP ensuring that all employees obtaincritical corporate announcements firsthand and stay synchronized with the Company’s strategic roadmaps.Embracing an employee-centric philosophy aimed at mutual labor-management wins all of our management systems
are oriented toward safeguarding employee rights and fostering an excellent workplace environment driving shared
growth between the workforce and the enterprise. The Company has established a rigorous internal control and Activity for Employee Other Communication and Shenzhen Huai’an Qinhuangda Taiwan India Thailand Overseas Total
regulatory framework that clearly defines employee responsibilities and entitlements. These operational codes are Campus Campus o Campus Campus Campus CampusNotifications Sites
integrated into the Employee Handbook communicated during new-hire onboarding and concurrently uploaded to Employee Symposiums
our electronic HR platform for anytime access thereby safeguarding the legitimate rights of our workforce. (Sessions) 15 13 18 11 10 4 0 71
Volume of Input Timely Responses 2025 Email Announcements Employee Communication Channels and Response Metrics (Postings) 500 544 656 255 178 191 174 2498(Cases) (Cases)
Employee Service Center Face-to-face consultation & issue resolution 123 123
2025 Expert Lectures (Sessions) 32(Aggregate)
Chairman’s Mailbox 3 3
Employee Suggestion Box Labor Union Mailbox 16 16 Unobstructed Communication Channels
E-Grievance Mailbox 7 7
The Company places the highest priority on employee feedback and rights advocating for the equitable
Corporate Website 0 0 participation of employees in corporate governance and encouraging workers to contribute constructive insights into
Integrity Reporting Hotlines
Professional Ethics Zone 0 0 corporate management while maintaining an open path to appeal unreasonable matters. The Company has
Proactive care and timely fulfillment of employee needs constructed diversified unobstructed grievance pipelines including the HR department executive-authorized Employee Relations Officers through specialized officers 3303 3303 personnel Party and Youth League committees the Labor Union grievance hotlines and physical suggestion boxes
Employee Care Hotline Work and life feedback tracking 61 61 supporting both real-name and anonymous submissions. Each industrial park is equipped with specialized
89Integrity Management
About This About Avary Major Honors & Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
for Long-term Steady
Report Holding Stewardship & Green the Chairman Performance Recognitions Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
windows and hotlines for employee feedback and complaints alongside the Chairman’s Mailbox Labor Union Structured and Compliant Union Operations
Mailbox Party and Youth League Mailboxes and dedicated e-mail accounts all managed by assigned
professionals and promoted via online offline and multimedia formats. The Company actively supports employees in participating in lawful community and social organizations in accordance
with the law. We strictly guarantee employees’ right to freedom of association and prohibit any form of obstruction or
To institutionalize employee participation in corporate governance the Company provides advance notice interference. Concurrently the Company refrains from influencing the independent operations of labor unions and
regarding significant operational changes in full compliance with the statutory regulations of each operational associated organizations through methods such as financial dependency or provisioning funding support.location ensuring employees are comprehensively informed. Furthermore pursuant to the Management Measures
for the Right to Freedom of Association and Collective Bargaining we execute collective contracts and specialized ◆ To tangibly safeguard employees’ freedom of association and collective bargaining rights
collective agreements in accordance with relevant labor laws clearly outlining dispute-resolution and opinion- the Company has deployed the following measures:
handling mechanisms. The Employee Consultation and Complaint Management Operations Measures mandate that
all consultations and complaint files must be recorded in meticulous detail following the 5W1H principle aiming * Defend and Guarantee Freedom of Association: Formulate and enforce the Management Measures for the Right to
for immediate resolution and feedback as a baseline rule. For complex matters that cannot be closed immediately Freedom of Association and Collective Bargaining to champion employees’ legitimate rights and interests.the targeted processing timeline must be explicitly communicated to the employee (generally not exceeding 7 days * Legal Person Status and Equal Consultation: Labor unions across all industrial parks have obtained legal person status as
with a maximum limit of 14 days except for cases involving statutory violations or requiring coordination with social organizations in accordance with the law. They engage in equal consultation with the Company execute collective
external authorities). The Company systematically targets instant responses and on-the-spot notifications to ensure contracts and complete official filings with local Human Resources and Social Security authorities.that two-way communication remains highly efficient and transparent.. * Digitalized Union Integration: Launched the “Ding Ding Da Ming” WeChat Mini-Program empowering employees to
voluntarily apply for union membership and participate in union activities online.。
The Company regularly convenes quarterly Employee Representative Symposiums to drive thorough dialogue
surrounding the working environment living infrastructure and welfare logistics. Based on the insights gathered
we continuously optimize and upgrade campus facilities forging a mutually trustworthy harmonious and The labor unions at each campus democratically elect their respective Labor Union Committees Financial Review
enduring relationship between labor and management. Committees and Female Workers Committees through General Assemblies of Member Representatives firmly
Labor Union Operations and Support establishing the General Assembly of Member Representatives as the supreme authority of the union. Anchored in the mission of serving employees and fueling high-quality corporate development the unions perform their statutory
mandates in accordance with the law.Employee Welfare Committees and Labor Unions
The Company has established Employee Welfare Committees across our Taiwan and India campuses to roll out * Protection: Represent and safeguard the legitimate rights and interests of
diversified welfare activities while fully safeguarding employee rights and interests. The proportion of employees employees.covered by collective bargaining agreements reaches 100% at both the Taiwan and India campuses. The Taiwan Fundamental * Participation: Participate in the democratic management of the enterprise
campus convenes labor-management meetings quarterly in accordance with the law while the India campus hosts Mandates of the and exercise democratic oversight.statutory labor-management councils annually between January and March. These platforms drive two-way Labor Union * Development: Guide employees to participate in corporate building
communication and coordination regarding corporate operational policies and future strategic roadmaps thereby accelerating the realization of production and operational milestones.building solid consensus. Furthermore the Company has institutionalized the Employee Consultation and * Education: Strengthen employee education and continuously elevate
Complaint Management Operations Measures enabling workers to submit recommendations and feedback to the workforce competencies.HR department and senior executives via diversified channels - such as suggestion boxes and digital platforms - to
guarantee smooth and efficient communication. * Center core initiatives on safeguarding employees’ legitimate rights and
Strategic Framework interests.Across our Mainland China campuses Labor Unions have been established to tangibly defend employees’ of Labor Union Work * Secure a win-win trajectory where employee rights are robustly protected
legitimate rights and interests while providing robust welfare security. Operating on the principles of equality and and corporate development is dynamically powered.voluntariness all employees - irrespective of ethnicity race gender occupation religious belief or educational * Drive corporate sustainability defend employees’ vital interests and
background - are entitled to apply for union membership based on their own volition. Currently 100% of the promote social harmony and stability.workforce across our Mainland China campuses is covered by collective bargaining agreements.
90Integrity Management
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Growth Production Workplace Founding Mission
◆ Collaborative Achievements of the Labor Union and Corporate
Culture Department (2025) Talent Attraction and Retention
Program Key Deliverables & Achievements Industry-Academia Collaboration
All-Member Care & Achieved a participation rate of over 96% in universal welfare Talent constitutes the bedrock of the Company’s core competitiveness. To this end the Company has long driven deep industry-academia
Incentives initiatives. collaborations fully integrating high-quality university resources to empower young scholars to immerse themselves in academic research
and technological innovation. In 2025 the Company completed 11 collaborative R&D technology projects partnering with a network of 23
Key Talent Care & Deployed a large-scale “Role Model Recognition” campaign
universities.Incentives honoring 470 exemplary individuals and 60 advanced collectives across all campuses. * Elite Talent Reserve Fellowship Designed to support young scholars in deep academic research and technological innovation. From
2015 to 2025 this initiative sponsored 36 outstanding students with cumulative fellowships distributed totaling RMB 2.59 million.
“Six Cares” Initiatives Executed 4827 event sessions reaching a total of 869993 person-times.* LINK Industry-Academia Cultivation Scholarship In 2025 the Company collaborated with the Economic Development Bureau of the
Taoyuan City Government to establish the Taoyuan LINK Industry-Academia Cultivation Platform Scholarship. This initiative aims to assist
local students in smoothly completing their education while securing a seamless transition from graduation to employment. The scholarship
ESG Culture: 12938 person-times
program was expanded to universities in southern regions this year admitting a total of 19 students across two cohorts.* Joint University Research Centers (1) May 2025: The Company joined forces with scientific research institutions - including the PurpleQuality Culture: 9199 person-times Mountain Laboratories and Southeast University - to launch a 3-year technology bottleneck breakthrough under the “Jiangsu Provincial KeyR&D Program - 6G Integrated Communication and Sensing (ISAC) Chip and Module.” This project aims to accelerate industrial upgrading
and continuously fortify the Company’s innovation capabilities in high-end communication fields. (2) July 2025: The Company entered intoCulture & Awareness Health Culture: 90274 person-times a three-year cooperation blueprint with Yanshan University to co-create the ”Hebei Provincial Postdoctoral Innovation Base.” By integrating Advocacy
premium resources and driving high-level intellectual exchange this initiative introduces top-tier industry talent constructing a talent moat
and accumulating strong innovative momentum for the Company’s long-term development. (3) October 2025: The Company teamed up with
Digital Transformation Culture: 39718 person-times the Shenzhen Research Institute of Huazhong University of Science and Technology to co-establish a “Shenzhen Key Laboratory.” The lab
will spearhead a 3-year research breakthrough targeting polymer optical waveguide substrate technology fully leveraging the synergy
between “fundamental research and industrial transformation.” The laboratory has been officially accredited by the Science Technology and
Innovation Bureau of Shenzhen Municipality.Integrity & Anti-Corruption Culture: 42224 person-times
* Bi-directional Industry-Academia Knowledge Exchange In 2025 the Company invited 6 academic experts to conduct 27 specialized
seminars benefiting 3203 employees and bridging academic theory with industrial practice. Concurrently the Company dispatched
Awards & Honors Secured 49 external institutional awards and honors for the Human
Recognition Resources Division. outstanding corporate experts to 8 universities to deliver 28 practical insight-sharing sessions benefiting 1083 students and building a robust
two-way knowledge bridge between industry and academia.External Engagement Partnered with government bodies social institutions and vendors to drive diversified networking; executed 4 event sessions with * International Industry-Academia Partnerships In 2025 the Company executed Memorandums of Understanding (MoUs) with Activities 144 participants in total. Prachinburi Technical College the Asian Institute of Technology (AIT) and Chiang Rai Rajabhat University in Thailand establishing long-
term stable collaborative mechanisms. The partnerships focus on three core strategic directions: talent cultivation technical collaboration
Executed 98 event sessions reaching a total of 19317 person- and industry-academia synergy. Through internship pipelines scholarship backing and joint R&D models these initiatives cultivate local “Six Assistances” Initiatives times. engineering and managerial talent accelerate key technologies in AI smart manufacturing and green materials and build a highly resilient
sustainable ecosystem for the PCB and semiconductor industries.
91About This About Avary Message from ESG Key Major Honors &
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Sustainability Innovation Empowers Empowering Employees Giving Back to Society
for Long-term Steady
Report Holding Recognitions Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Through diversified educational assistance and comprehensive industry-academia ◆ Ratio of the Lowest Entry-Level Wage of Employees to the Local Minimum Wage
collaborations the Company deepens campus-enterprise connections enhances the practical
capabilities of young talent and actively practices corporate social responsibility (CSR). This Region Taiwan China Campus Mainland China Campus India Campus Thailand
shapes a stellar brand image for public welfare and solidifies a firm social foundation for the Campus
sustainable development of the enterprise. Gender Taoyuan Kaohsiung Shenzhen Qinhuangdao Huai’an Chennai Prachinburi
Male（%） 100 100 100 100 100 100 100
Remuneration and Compensation Female（%） 100 100 100 100 100 100 100
The Company has structured a remuneration management system that balances external market
competitiveness with internal equity and rationality. Paired with a diversified welfare and Note: The minimum wage standards are derived from local statutory regulations. The lowest entry-level wage presented above represents
benefits security framework this system comprehensively satisfies employee development the base salary of the Company’s entry-level employees excluding any incentives allowances or subsidies.needs enhances their sense of belonging and cohesion and efficiently attracts and retains
outstanding talent. Concurrently the Company continuously refines its compensation strategies ◆ Gender Pay Gap Metrics
to fortify its competitive edge in the market. Remuneration Category Male Female
Remuneration Policy Annual Salary of Management Personnel 1 0.97
Aligning with our operational milestones and business performance the Company formulates a Annual Salary of Non-Management Personnel 1 0.93
competitive total compensation package based on a comprehensive evaluation of employee job Mean Gender Pay Gap 1 0.92
responsibilities professional skills and work performance. The remuneration architecture
comprises base salary allowances and incentive-based variable compensation - including Median Gender Pay Gap 1 0.90
annual performance bonuses continuous service bonuses employee profit-sharing innovation Mean Bonus Gap 1 0.95
& R&D awards and proposal improvement incentives - effectively stimulating employee
motivation and stabilizing core talent.。 Median Bonus Gap 1 1.13Note: The calculation scope encompasses a total of 40046 employees who remained active as full-time entry-level technicians entry-level engineers and certain
The initial salary for new hires is determined by their educational background work experience non-senior management personnel as of December 31 2025 representing 84.18% of the total workforce. The calculation is based on their total annual
and professional competencies. The Company strictly adheres to the principle of equal pay for remuneration over the 12 months of the year including monthly base salaries various bonuses and profit-sharing distributions.equal work. Employee salariesremuneration and benefits are completely shielded from
discrimination based on gender age nationality race ethnicitygender identity religion
marital status disability or political orientation. Furthermore the Company periodically Linking Remuneration with Performance Management
monitors the gender pay gap to guarantee remuneration equity.Performance management serves as a critical lever for driving individual organizational and corporate performance enhancement
The Human Resources department acts on the external economic climate local minimum wage and value creation. The Company has fully implemented a robust performance evaluation framework adopting diversified appraisal
standards and salary benchmarking reports provided by professional advisory institutions to models such as Management by Objectives (MBO) multi-dimensional assessments team performance evaluations and agile
orchestrate the planning and review of compensation policies across all campuses. By reviews conducting performance appraisals twice a year. Through these appraisals employees obtain real-time feedback from their
dynamically formulating salary adjustment blueprints the department ensures that direct line managers while receiving multi-faceted constructive feedback from cross-departmental supervisors and peers. The
compensation levels tightly align with regional market benchmarks. The Company strictly evaluation dimensions encompass individual historical work deliverables alongside future development goals for both the individual
complies with labor statutes to guarantee that employees’ basic wages are never lower than and the team. The appraisal results serve as a fundamental baseline for employee promotions salary advancements and incentive
local minimum wage standards and meticulously calculates and disburses overtime pay in payouts. Concurrently the Company customizes targeted development plans for employees to continuously optimize overall
accordance with the law. Concurrently the Company implements merit-based salary organizational performance. For employees and business units with room for performance improvement managers provide
adjustments and allowances tailored to employees’ tenure and job performance tangibly immediate feedback and focused coaching helping them optimize workflows strengthen project deliverables and empower
safeguarding the legal rights and livelihood demands of our workforce. employees to maximize their full potential in their respective roles.
92About This About Avary Message from ESG Key Major Honors &
Integrity Management Environmental
Sustainability Innovation Empowers Empowering Employees Giving Back to Society
for Long-term Steady
Report Holding Stewardship & Green the Chairman Performance Recognitions Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Executive Remuneration and Incentives Linked to ◆ The “EPS + ESG” Dual-Driven Evaluation and Incentive Mechanism
ESG Performance
Variable Compensation Weight Appraisal Components
The Company has established a routine performance evaluation mechanism
Corporate Financial
complemented by a clear and standardized system for rewards and disciplinary Metrics 70% Net Profit After Tax (NPAT) Earnings Per Share (EPS) and Return on Equity (ROE)
actions. The Company has formulated the Measures for Disbursing Continuous
Service Incentive Bonuses which explicitly define the eligible recipients Governance (G): Non-use of conflict minerals; proportion of recycled materials utilized etc.disbursement ratios required years of service and clawback mechanisms ESG Performance Metrics 30% Environmental (E): Total volume of recycled water; total consumption of green electricity etc.thereby effectively securing the retention of core talent and stimulating
employees’ commitment to long-term service. Concurrently the Company has Social (S): Human rights training coverage rate; annual training hours per capita etc.launched key talent development programs reinforcing the alignment between
the CEO and the senior management team’s compensation and corporate
operational performance through regular senior executive strategic sessions and Incentive-Based Variable Compensation
annual grand business review conferences while continuously refining talent
selection and promotion frameworks. The General Manager and exceptionally Every single employee possesses unique significance and value to the Company. Inspiring employee potential and empowering them to become a pivotal
performing Vice General Managers within the Company are also integrated into force in operational development is the original intent behind the Companys design of incentive-based variable compensation. In planning this incentive
the Board of Directors’ succession planning pipeline. framework the Company strictly adheres to the dual principles of “Real-time Adjustment” and “High-efficiency Productivity” cultivating an empowering
communication culture that drives organizational flexibility optimization and dynamic alignment ultimately achieving the shared goals of mutual growth
The performance evaluation mechanisms remuneration policies regulatory and synergistic development between employees and the Company.standards disbursement criteria and compensation structures for senior
executives - including the Chairman and the General Manager - are formulated The intrinsic value of a remuneration policy should not be confined merely to the architectural design of fixed and variable compensation; rather it lies in
under the independent oversight of the Remuneration Committee. The establishing a fair mechanism that fosters mutual trust between employees and managers which represents the catalyst for boosting employee morale and
Company has systematically integrated ESG sustainability philosophies into its reinforcing organizational identity. To this end the Company formulates fair and transparent remuneration policies and conducts periodic reviews and
compensation management framework driving the senior management team to optimizations. While highlighting the value of professional expertise these policies guide employees to fully immerse themselves in their work continuously
tangibly assume managerial accountability and obligations for practicing construct a relationship of trust between employees and managers and drive employee interests to remain tightly synchronized with corporate interests.corporate sustainable development.The Company incorporates ESG performance as a core appraisal component of Diversified Employee Benefits
senior executives’ variable compensation for the current year. Through a well-
defined performance-reward mechanism the Company achieves a deep Insurance Framework
alignment between corporate interests and executive compensation forging a
shared target for corporate sustainability. Embracing a people-centric philosophy the Company constructs a comprehensive and diversified benefits security framework for employees across different
regions in accordance with local labor laws. In the Taiwan region in addition to statutory health insurance labor insurance and individual labor pension
In the event that an executive commits statutory or regulatory infractions schemes mandated by the Labor Standards Act the Company provides group insurance coverage encompassing term life insurance accidental death &
violates professional ethics or engages in malpractice or dereliction of duty - or dismemberment (AD&D) insurance inpatient medical insurance cancer medical insurance accidental injury medical insurance and occupational injury
if misconduct triggers operational risks resulting in economic losses or insurance. Employees’ dependents are also eligible to enroll at their own expense through corporate discounted rates.reputational damage to the Company - the Company upon approval by the
Board of Directors reserves the right to adjust the disbursement ratio of their For employees in Mainland China the Company legally contributes to five statutory social insurances - pension medical work injury maternity and
remuneration and incentives or claw back previously distributed incentive unemployment insurance - alongside the Housing Provident Fund. Concurrently the Company organizes annual comprehensive health check-ups for
bonuses. In 2025 the Company did not retain external independent employees. In 2025 the completion rate of employee health check-ups reached 100%.remuneration consultants.
93Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Maternity Measures and Welfare
Insurance Contribution Metrics by Campus (Unit: RMB Yuan)
Insurance
Category
Mainland China Taiwan China India Thailand Total To support employees in balancing career development with family care and to champion healthy births and sound child-rearing the
Company has established multiple maternity welfare schemes that exceed statutory requirements. We actively respond to population
Statutory 731488505 37524285 733056 1213642 769745847 policies and assist in mitigating macroeconomic demographic challenges.Insurance
Group Insurance 5628588 3143892 84642 0 8857122 Subsidies and branches in Mainland China operate strictly in accordance with local regulations where female employees enjoy a
Dependent minimum of 158 days of maternity leave male employees receive 15 days of paternity leave and both parents are entitled to 10 days of
Insurance? 594782.50 187880 0 0 782663 parental leave annually until their child reaches 3 years of age. Subsidiaries in the Taiwan region provide 8 weeks of statutory maternity
leave (for primary caregivers) alongside 7 days of pregnancy check-up leave and paternity leave (for non-primary caregivers).Concurrently the Company assists employees in applying for statutory labor insurance subsidies to safeguard their rights during parental
Incentive and Reward Systems leave.* Traditional Festival Benefits The Company distributes holiday welfare gifts during Regarding parental leave without pay (unpaid childcare leave) the Company strictly complies with regional policies and supports
traditional festivals such as the Spring Festival Dragon Boat Festival and Mid-Autumn employees in flexibly requesting early or deferred reinstatement. To reinforce fertility support the Company has rolled out the following
Festival. This transmits humanistic care fosters a warm and inclusive corporate culture exclusive benefits.and effectively enhances employees’ sense of belonging and happiness. ◆ To encourage childbirth and improve the quality of care the Company offers the following benefits
* Children’s Scholarships The Company provides tuition assistance grants for employees’ * Multi-Child Childcare Subsidies: The Company provides child-rearing subsidies disbursed over a 5-year duration. The cumulative subsidy amounts to
children each semester. Tiered subsidies are allocated based on educational levels ranging RMB 100000 for the third child RMB 200000 for the fourth child and RMB 400000 for the fifth child. In 2025 a total of 24 employees applied for
from primary school to postgraduate studies tangibly reducing family education this subsidy including 23 for a third child and 1 for a fourth child; among the applicants 16 were male and 8 were female employees.expenditures. This transmits long-term care and support for employees’ family * Working Parents’ Support Station: Integrated a platform that consolidates welfare and health insights for corporate parents.development curating a premium workplace environment characterized by secure * On-site Nursing Infrastructure: Equipped all industrial parks with comfortable lactation rooms and provided resources regarding corporate-affiliated
employment and collaborative growth. childcare services and associated institutions.* Maternity Rituals (Mainland China): Campuses in Mainland China provide maternity cash gifts and host wellness activities tailored to comforting new
mothers.* Long-Service Recognition Continuously valuing and affirming employees’ long-term
contributions the Company hosts annual “Role Model Employee” and “Exemplary In 2025 the Company recorded a global total of 972 newborns among its workforce with 947 newborns born to employees in MainlandEmployee” selection campaigns. These initiatives specifically honor veteran long-service China campuses accounting for 97% of the total.employees who have reached milestones of 10 15 20 or more years of service by
presenting them with honorary medals and conducting public commendations.Childcare and Maternal Welfare
* Continuous Service Bonuses The Company has institutionalized a continuous service
bonus scheme to encourage long-term stable tenure and continuous value creation To safeguard female employees’ career trajectories elevate their retention willingness and support women in realizing personal value the
validating employees’ enduring contributions and companionship. Concurrently a merit- Company has introduced a suite of exclusive protection and care initiatives.based seniority allowance has been integrated into the framework to further incentivize
long-service employees reinforcing talent stability and organizational development. * Dedicated Infrastructure Lactation rooms are meticulously set up across all industrial parks and production facilities to accommodate
the physiological needs of pregnant and breastfeeding female employees.* Annual Bonuses Based on a combination of overall annual corporate financial ?* Institutional Framework Protection The Company implements flexible working hours during the breastfeeding period granting a 1-
performance individual job performance and role contributions the Company disburses hour flexible commuting buffer daily. For pregnant employees who have reached their 7th month of pregnancy the Shenzhen and Huai’an
annual bonuses. This motivates employees to continuously elevate performance campuses arrange a minimum of 1 hour of paid rest during working hours daily with full salary coverage. Beyond statutory maternity
strengthens team cohesion and belonging and boosts talent retention rates. leave an additional 1 day of fully-paid newborn care leave is provided.
94Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
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Growth Production Workplace Founding Mission
* Care Gifts and Celebrations Female employees returning to work post-maternity receive newborn care gift packs and dual-employee couples Employee Equity Incentive Plans
receive wedding blessing gifts upon marriage.The Company firmly believes that when outstanding talent holds corporate stock
* ? Attentive Mobility and Feedback Services The Company launched a dedicated “Maternal Care Shuttle Bus” to optimize commuting for over the long term it strengthens the alignment of interests between employees
breastfeeding employees provides prenatal nutritional meals and issues “Maternity Care Passes”. Furthermore a dedicated female employee and shareholders. Since its initial public offering (IPO) the Company has
grievance and request response mechanism has been established ensuring that every incoming call and correspondence is meticulously recorded actively implemented employee equity incentive plans to establish and mature
and resolved with a 100% response rate. The Company also periodically executes the Special Collective Contract for the Protection of Female long-term incentive and restraint mechanisms. This deeply binds personal
Employees’Rights and Interests to comprehensively anchor women’s legal entitlements. employee growth with the sustainable development of the Company driving the
co-creation of long-term value.* ?Enrichment and Wellness Initiatives The Company hosts competency-building courses such as flower arranging cosmetics handicrafts and
health preservation. It organizes maternal care education workshops parent-child interaction events and weekly cultural and sports activities
Incentive Vehicle Program Description
including yoga dance and aerobics. Regular screenings for cervical and breast cancer (“Two Cancers” screenings) alongside social networking
events for single employees are systematically arranged to care for the holistic physical and mental well-being of female employees. To cultivate a long-term corporate incentive mechanism and attract
2021 Restricted and retain top-tier talent under the prerequisite of fully safeguarding
Stock Incentive Plan shareholder interests the Company formulated the 2021 Restricted
Parental Leave and Reinstatement Metrics Stock Incentive Plan granting restricted stocks to more than 200
eligible incentive targets in total.To support employees in personally caring for their infants and to safeguard their rights upon returning to work a total of 1194 employees applied for To further reinforce the rewards framework the Company extended
parental leave (including unpaid childcare leave in Taiwan) during the reporting period.Among them 1081 employees successfully returned to work 2024 Restricted its long-term incentive strategy by formulating the 2024 Restricted Stock Incentive Plan Stock Incentive Plan granting restricted stocks to more than 300
achieving a reinstatement rate of 90.5%. Of the 1086 employees who returned to work in 2024 868 remained active on the payroll as of the end of eligible incentive targets in total.
2025 yielding a retention rate of 79.9%.
To encourage core talent to establish long-term roots within the
Statistical Metric Unit Male Female “312” Cash Incentive organization this policy selectively rewards key executives and senior
Policy engineers who demonstrate high performance and long-term service commitment by providing an additional 12 months’ worth of salary as
Employees Entitled to/Applying for Parental Leave in 2025 (A) Persons 643 551 a cash bonus distributed over a three-year cycle.Employees Reinstated Post-Parental Leave in 2025 (B) Persons 641 440 To incentivize high-potential executives and engineers and cultivate
“308” Cash Incentive talent who are eager to grow in tandem with the enterprise this policy
Employees Reinstated Post-Parental Leave in 2024 (C) Persons 724 362 Policy grants an additional 8 months’ worth of salary as a cash bonus incentive over a three-year cycle.Employees Retained for at Least One Year Post-Reinstatement from 2024
Leave (D) Persons 640 228
Reinstatement Rate (B/A) % 99.7 79.9 Other Employee Welfare and Benefits
Total % 90.5 The Company strictly adheres to relevant labor laws and regulations across all
operational jurisdictions thoroughly executing statutory leave frameworks -
Retention Rate (D/C) % 88.4 63.0 including official public holidays paid annual leave marriage leave
compassionate leave pregnancy check-up leave maternity leave paternity leave
Total % 79.9 and parental leave. We contribute in full to statutory social security architectures
including pension medical work injury maternity and unemployment
Notes： 1. Employees Entitled to/Applying for Parental Leave in 2025 (A): Identified as employees who took maternity leave of over 56 days or paternity leave of one day or more between insurance alongside comprehensive commercial insurance corporate annuities
January 1 2025 and December 31 2025.
2. Employees Reinstated Post-Parental Leave in 2025 (B): Identified as employees who took maternity leave of over 56 days or paternity leave of one day or more and successfully and the Housing Provident Fund thereby perfecting retirement security and
returned to work between January 1 2025 and December 31 2025. social safety nets.Furthermore pursuant to statutory frameworks such as the
3. Employees Reinstated Post-Parental Leave in 2024 (C): Identified as employees who took maternity leave of over 56 days or paternity leave of one day or more and successfully Employee Welfare Fund Act the Regulations on the Organization of Employee
returned to work between January 1 2024 and December 31 2024.
4. Employees Retained for at Least One Year Post-Reinstatement from 2024 Leave (D): Calculates the number of employees returning from parental leave within 2024 who Welfare Committees and the Measures for the Establishment of Employee
remained continuously employed for at least one full year following their reinstatement. Welfare Societies the Company has institutionalized an Employee 95Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Welfare Committee. We systematically appropriate employee welfare funds according to Addressing the essential living needs of our workforce the Company drives the “Employee Happiness Project” by continuously perfecting
regulations to operate employee commissaries corporate cafeterias barbershops libraries sports and fitness infrastructure. Facilities are fully equipped with indoor basketball courts badminton courts ping-pong tables spinning
health centers and leisure facilities. This is supplemented by a diversified suite of benefits - bikes and treadmills. This is supplemented by events such as basketball leagues fun sports galas health check-in challenges and tug-of-
including educational scholarships for employees’ children traditional festival gifts meal war competitions successfully advocating a healthy lifestyle and strengthening employees’ physical fitness.allowances and psychological counseling services - to continuously elevate the overall
quality of life for our workforce.The Company has constructed multi-dimensional communication channels - including care symposiums suggestion mailboxes rights-
◆ Comprehensive Employee Benefits and Care protection hotlines and online portals - maturing our rights defense and workforce service frameworks. We implement touchpoint initiatives
such as birthday celebrations wedding blessings and welcoming lactation rooms curating exclusive protections for female employees
across prenatal maternity breastfeeding and menopausal stages. Concurrently regular medical check-ups and health seminars are
Traditional Festival Bonuses Group Insurance Children’s organized alongside fitness aerobics cardio workouts and yoga courses to popularize a culture of wellness.(Three Major Festivals) Scholarships
Long-Service Recognition
The Company continuously operates signature union welfare brands such as “Summer Coolness Disbursal” and “Mutual Love and Care”
delivering comforting care during traditional festivities including the Spring Festival Dragon Boat Festival and Mid-Autumn Festival. We
have also opened a streamlined EAP psychological demand channel and invited expert lecturers to deliver modules on health preservation
Annual Year-End Galas Leisure & Recreational physical fitness mental health and stress relief meticulously safeguarding our employees’ mental and physical state.Diversified
(Weiya) Welfare Facilities
Exemplary Employee Matrix Emergency Relief & In 2025 the Company’s external fitness services and holistic wellness courses recorded a cumulative participation of over 95000 person-
Awards Critical Assistance
times while universal welfare and care activities served a total of 590000 person-times. Through this all-dimensional matrix of care and
security the Company assists employees in harmonizing work personal life and social relationships continuously driving improvements in
Meal Subsidies
Promotion Announcements & employee satisfaction sense of belonging happiness and pride to co-create a harmonious and stable industrial relationship.Psychological Counseling
Celebrations (EAP)
Employee Health Check-ups
◆ Key Highlights of Employee Engagement Case Studies
Holistic Physical and Mental Health Care
Centering on the “Zhen Ai Tong Xing” (Journey of Love) Employee Assistance Program
(EAP) the Company provides a systematic long-term psychological support framework for
our workforce. Through a diversified service portfolio - including professional
psychological counseling one-on-one coaching stress management emotional regulation ▲ Traditional Chinese Medicine (TCM) ▲ Intangible Cultural Heritage (ICH) ▲ Artistic Flower Arranging Workshops
interpersonal communication and self-esteem enhancement - the Company empowers Health & Wellness Salon Courses Handicraft Workshops
employees to strike a harmonious balance between work and life thereby elevating
workplace happiness. In 2025 the Companys dedicated EAP platform “Zhen Ai Yi Zhan”
(Love Harbor) delivered services reaching a total of 14039 person-times.Focusing on mental well-being and team cohesion the Company routinely hosts cultural
and sports initiatives such as singing bowl healing sessions mental wisdom empowerment
workshops heartwarming DIY crafts and badminton tournaments. These activities enrich
employees’ leisure time accelerate interpersonal integration and cultivate a proactive and
healthy corporate culture. ▲ Distribution of Custom Down ▲ Corporate E-Sports Tournaments and ▲ Employee Birthday Celebrations and
Jackets to Employees Exchanges Parties
96Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
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Growth Production Workplace Founding Mission
Talent Retention
◆ Pension Contribution Percentages across Mainland China Campuses
The Company builds robust development platforms to cultivate collective
talent synergy. To stabilize our key talent pipeline the Company Shenzhen
continuously refines its incentive and care infrastructure deploying multi- Remuneration & Pension Category Qinhuangdao Huai’an India ThailandShenzhen (Non-
dimensional mechanisms such as profit-sharing performance bonuses and Local Resident) (Local Resident)
equity incentives. Concurrently commercial group insurance coverage Corporate Contribution Percentage (%) 16 17 16 16 12 3
(with premiums subsidized by the Company) is provisioned to key talent
and their dependents. All regular employees with a tenure of one year or Proportion of Personnel Covered by Retirement
Benefits (%) 100 100 100 100 100 100
more are entitled to comprehensive health screening services. In 2025 the
Company achieved a key talent retention rate of 97.9%.Note: Key Talent Retention Rate = (Total number of active employees on ◆ Pension Appropriations and Framework at the Taiwan Campus
payroll as of December 31 2025 who held a professional rank of Shih-
4/Grade 4 or above with consecutive annual performance ratings of "A" or Region Retirement Plan Type Pension Appropriation as a % of Salary Employee Participation Rate in the Plan
above for two years prior to December 31 2024) ÷ (Total number of Old Retirement Scheme: Corporate Pension Trust Employer: 2%; Employee: 0% 0.026%
employees who held a professional rank of Shih-4/Grade 4 or above with AccountTaiwan Campus
New Retirement Scheme: Individual Pension
consecutive annual performance ratings of "A" [inclusive] or above for Account Employer: 6%; Employee: 0%–6% 99.974%
two years prior to December 31 2024).Retirement Schemes and Systems Support Programs for Senior and Middle-Aged Employees
To empower middle-aged and senior employees to better adapt to changing workflows and realize sustainable career progression the Company has structured a
The Company’s Taiwan campus has formulated structured retirement dedicated Senior Workforce Support Program extending diversified resources to our veteran workforce.measures in strict accordance with the Labor Standards Act and the Labor
Pension Act. Operating under a Defined Contribution (DC) scheme the
Company contributes 6% of an employee’s monthly wage into their Support Initiative 2025 Executed Outcomes & Deliverables
individual pension account while employees may voluntarily contribute an Nutritional Wellness
Meals Provided 14750 portions of customized healthy and nutritional meals to ensure balanced dietary nutrition for middle-aged and senior employeesadditional 0% to 6%. Employees are entitled to claim their retirement
pensions upon reaching the statutory retirement age. Subsidiaries in Provided customized VIP medical examinations for middle-aged and senior employees
Mainland China strictly contribute to statutory pension insurances in
compliance with national regulations with pensions pooled and managed Health Examination Supplemented by robust medical subsidy insurance: covering critical illnesses accidental medical expenses and inpatient allowances
by local authorities.Provisioned premium high-end medical insurance architectures: featuring healthcare “green channels” (expedited medical access) emergency
For retiring personnel the Company conducts pre-retirement visits and medical transportation and direct medical expense reimbursement pipelines
symposiums assists with retirement protocolsand hosts farewell Traditional Chinese Hosted 2 specialized Traditional Chinese Medicine (TCM) health preservation seminars with 1527 participants successfully completing the training
Medicine (TCM) Seminars via a hybrid online-and-offline format
gatherings accompanied by commemorative gifts. Furthermore for eligible
retired employees who demonstrate a mutual willingness to continue On-site Wellness Centers To mitigate operational and occupational fatigue the Company operates an on-site Health Center and a TCM Physical Therapy Pavilion providing employees with stress-relieving massage therapy and reflexology (foot therapy) services
working the Company opens rehiring and post-retirement employment
pathways empowering them to continuously engage in professional and Career Transformation Provided future-oriented professional development tracks - encompassing industry trend analysis senior & middle management leadership modules Training AI-series courses top-tier digital transformation planning and performance management - achieving an average of 95 training hours per capita
social spheres. Through this perfected framework of retirement security
Workplace Environment To mitigate the impact of age-related visual degradation high-definition computer monitors are provided to middle-aged and senior executives
and humanistic care the Company comprehensively safeguards our Optimization paired with dedicated IT service support to calibrate optimal screen resolutions
employees’ retired life.
97Integrity Management
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Environmental
Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Talent Development and ◆ Annual Training Hours Matrix by Diverse Category
Empowerment Demographic Category Total Annual Training Hours (Hours) Headcount (Persons)
Average Annual Training Hours
(Hours/Person)
By Gender
Male 2919587 31387 91.4
Tightly aligning with market trends strategic roadmaps and departmental
functional variations the Company places core talent competencies at the center Female 1479558 16186 93
and organizational culture as the bedrock. We focus on future-ready talent Total 4399145 47573 92.5
cultivation and overseas business empowerment to fully anchor strategic execution
and sustainable operations. The Company has constructed a hierarchical and By Employee Rank
categorized talent development framework customizing growth blueprints based Management Positions 529415 4475 118.4
on employee ranks and professional fields. By integrating premium internal and
external resources we systematically cultivate diverse categories of talent critical Non-Management Positions 3869731 43098 89.8
to corporate operations and development. Leveraging core capabilities in Total 4399145 47573 92.5
framework planning resource introduction and talent diagnostics the Company
forges a high-value talent supply chaintranslating training outcomes into practical By Age Group
efficacy to comprehensively elevate workforce knowledge skills and corporate Aged 30 and Under 1773631 20332 87
core competitiveness.Aged 31–50 2594809 26880 96.7
Aged 51 and Over 30705 361 85.5
Career Progression Total 4399145 47573 92.5
To adapt to global environmental shifts satisfy operational and customer demands
and practice corporate social responsibility the Company continuously optimizes
its talent cultivation mechanisms. We design exclusive training modules tailored to Advancing Employee Career Development
different job ranks and professional tracks efficiently integrating internal
resources to precisely cultivate composite talent who support organizational
operations and the long-term development of the Company. Through systematic professional services customized solutions and all-dimensional resource support the Company anticipates and resolves
organizational and individual challenges that impact employee productivity. This empowers employees to immerse themselves in their roles with a
healthy mind and body ultimately securing a win-win trajectory for both the enterprise and the workforce.Talent Cultivation Programs
For core managerial talent at the division and department levels the Company ◆ Employee Career Nurturing Flowchart
introduces external expert consultants to customize role-matching and career
development solutions through deep interviews and 360-degree comprehensive 1
competency assessments. Concurrently diversified learning initiatives are 3 5
deployed across all workforce echelons.Strategic focus is placed on nurturing core Needs Plan Service Training & Feedback & Evaluation &
talent pipelines - including key talent young cadres and elite cadet classes (Elite Assessment Formulation Provision Education Adjustment Improvement
Class) - by deepening professional competency building introducing cutting-edge
technologies and launching specialized cultivation tracks in fields such as digital 2 4 6
transformation data analytics smart manufacturing and quality excellence.In 2025 the average training hours completed by the entire workforce (including Through the aforementioned six-step closed-loop lifecycle management the Company solidly advances its employee career development initiatives.contract employees) reached 92.5 hourswith the total annual training investment We support workforce growth from an all-dimensional perspective effectively boosting employee satisfaction and operational efficiency thereby
exceeding RMB 3.4473 million. propelling the steady and sustainable development of the enterprise.
98Integrity Management
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for Long-term Steady
Report Holding Stewardship & Green the Chairman Performance Recognitions Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
◆ 2025 Employee Engagement and Satisfaction Survey Results ◆ Employee Career Development List
Employee Level Engagement Rate (%)Engagement Rate (%) Strategic Direction Core Objective Responsible Unit Action Plan
Gene经ral理 Em级pl以oye上es主管 课级以上主管 81 88 Safeguarding
Health physical and mental Employee Relations & Education Training Departments Health Management & Health Promotion Initiativeswellness
Engineers and Team Leaders 86 92
Facilitating
Section-Level Managers & Above 88 93 Work continuous career Employee Relations Education Training Needs Assessment → Plan Formulation → Service Provision → Training &
progression Departments & Line Managers Education → Feedback & Adjustment → Evaluation & Improvement
Department Manager-Level & Above 94 94
Life Elevating overall Labor Union & Corporate Culture “Six Loves” Theme-Month Initiatives (Love Yourself Love Family Love
Total Workforce 83 89 quality of life Department Colleagues Love the Company Love Life and Love the Earth)
Note: In 2025 the Company conducted an internal employee engagement survey. A total of 47812 employees
participated in the survey representing a comprehensive coverage rate of 99.6%.◆ 2025 Employee Symposiums and Grievance Resolution List
General Employees Professional Staff (Shi-Level) Elite Cadets (Elite Class) Young Cadres
Campus Subtotal Subtotal Raised Sessions / Solved
Sessions Raised Solved Sessions Raised Solved Sessions Raised Solved Sessions Raised Solved
Shenzhen 10 38 38 5 11 11 35 56 56 1 0 0 51 105
Huai’an 8 50 50 5 17 17 38 99 99 1 0 0 52 166
Qinhuangdao 12 76 76 6 7 7 21 77 77 1 0 0 40 160
Taiwan 6 32 32 5 45 45 NA NA NA NA NA NA 11 77
India 10 216 216 NA NA NA NA NA NA 10 216
Merged with Employee Sessions
Thailand 4 35 35 NA NA NA NA NA NA 4 35
Subtotal 50 447 447 21 80 80 94 232 232 3 0 0 168 759
Notes: The Taiwan India and Thailand campuses do not currently have "Elite Cadet" or "Young Cadre" echelons; hence the corresponding data fields are presented as "NA".
99Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
for Long-term Steady
Report Holding the Chairman Performance Recognitions
Stewardship & Green
Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Talent Cultivation Framework Online Cultivation Programs
To optimize learning efficacy the Company breaks away from traditional lecturing modalities pioneering a Four-
Offline Cultivation Programs Dimensional Blended Learning Architecture
To precisely align with the professional development trajectories of employees across various levels the Company has Online Learning
engineered a hierarchical targeted and precision-matched talent cultivation framework. Leveraging multi-dimensional Leverages digital learning platforms to deliver flexible curriculums. By utilizing big data to accurately analyze
learning gaps the platform algorithmically pushes personalized learning pathways to employees.learning environments coupled with continuous practical exposure in core operational functions we forge future
enterprise leaders who possess both strategic vision and robust execution capabilities.Offline Interaction
The pedagogical architecture stands on a bedrock of Ten Core Competencies (such as Strategic Decision-making Facilitates cross-hierarchical dialogues through interactive seminars and digital transformation workshops sparking
innovative and synergistic business solutions.Performance Management and Quality Excellence). It dynamically calibrates and optimizes curriculum modules by
synchronizing them with organizational hierarchies specific job roles and operational practicalities ultimately Case Studies
achieving a deep integration between talent capabilities and corporate sustainable development strategies. Dissects domestic and international corporate transformation cases (such as Net-Zero Carbon Strategies and Supply
Chain Human Rights Management) guiding participants to reflect on and optimize their own business practices.◆ Corporate Training Framework
Action Learning
“Long Teng” Class - Focusing on “Macro “Meng Hu” Class - Reinforcing “Cross- Drives participants to formulate and output actionable ESG improvement proposals. Outstanding projects areDecision-Making & Industry Influence” Functional Integration & Operational evaluated by senior executives and fully deployed across operations achieving a seamless integration of learning andDriving Force” practical application.Tailored for senior executives this program centers Grounded in the pivotal role of mid-level
on core modules such as sustainable strategic layout managers as the bridge between strategy and “Dingsheng e-Academy” - Propelling Autonomous Learning via an E-
cross-border team collaboration and boardroom execution this program utilizes situational
communication. Through high-level workshops and simulations and coaching leadership to sharpen Learning Platform
benchmarking corporate visits the program resource integration capabilities. Paired with a
broadens executives’ global horizons. Furthermore 360-degree feedback mechanism it precisely The Company has officially launched the “Dingsheng e-Academy” online learning platform seamlessly
participants are required to spearhead ESG-related diagnoses managerial blind spots empowering
initiatives deeply embedding sustainability participants to transform into team leaders who integrating online offline and hybrid training modalities to encourage asynchronous micro-learning among
philosophies into core business operations and balance operational efficiency with humanistic employees. By utilizing assessment-driven learning strategies the platform successfully strengthens training
executive decision-making. care. efficiency and fosters autonomous learning habits.The platform actively supports employee knowledge-sharing and self-curated course uploads. In 2025 the
“Jie Bao” Class - Anchoring “Project platform hosted 5304 internally developed courses achieving an active employee learning rate of 93.4%. TheExecution & Frontline Leadership” Personal Leadership Growth Class Company’s corporate training team publishes quarterly training outcome reports leveraging academic data indices
and performance highlights to back management refinements and continuously iterate our talent development
Offering practical curriculums focused on highly Engineered for non-managerial key talent this frameworks.efficient communication and strategic execution this initiative introduces international-standard self- Total Training Average Total Digital Courseware
program leverages the “Shadow Program” to allow management and potential-activation blueprints. Total Courses Total Course Total Training
Offered Hours Person-Times Hours Training Hours Courseware Learning participants to immersively absorb the management Focusing on effective learning and emotional Completed per Capita Assets Efficacy Rate
expertise of veteran executives. Learning outcomes intelligence management it utilizes facilitated
are rigorously validated via continuous improvement learning methodologies to dissolve departmental 27745 303545 9106073 4399145 92.5 8054 82.70%
proposal competitions accelerating the transition of silos and solidify the essential qualities of future
specialized professional talent into frontline managers. leaders. Total Financial Investment in
Training (RMB/yuan) 3447268
100Integrity Management
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Growth Production Workplace Founding Mission
Coaching and Mentorship Mechanisms Performance Evaluation and Review Mechanisms
The coaching and mentorship mechanism serves as the core framework for reinforcing the leadership pipeline and inheriting organizational The Company has established a performance-oriented evaluation mechanism to identify
expertise. The Company implements differentiated counseling based on organizational hierarchies and synergizes internal and external resources outstanding talent maximize human capital potential and ensure optimal role-matching.to construct a sustainable leadership ecosystem. Concurrently the Company continuously refines its employee development ecosystem by
executing rigorous performance and career development management. Through Management
by Objectives (MBO) and the solid execution of work plans we guarantee the effective
Hierarchical Counseling Internal Coach New Hire Onboarding Facilitator Action Training attainment of organizational targets and continuously elevate corporate operational
Empowerment Mentorship performance.Timely incentives and recognition are granted to high-performing employees
while customized counseling and role optimization are provisioned to those whose performance
For Division-level executives the The Company trains and Dedicated mentors are assigned In 2025 the Company rolled outCompany deploys a hybrid empowers senior Division and to newly onboarded professional its inaugural “Facilitator Action requires improvement. The Human Resources Department establishes comprehensive employeeapproach combining external Department-level executives to staff (Shi-level) and new hires. A Training Camp.” The curriculum performance profiles which serve as a critical foundation for talent reviews leadership pipeline
consultant coaching with internal become certified internal coaches 6-month structured mentorship imparts advanced facilitation building and the selection of high-potential reserve cadres.coach cultivation. High-level sharpening their skills in program is executed techniques consensus-building
leadership coaching is facilitation feedback and encompassing cultural integration methodologies and over 20
spearheaded by consultants employee motivation thereby technical skill guidance and practical tools. By nurturing a In terms of performance management practices the Company conducts performance appraisalspossessing international forging a “leaders developing professional networking. Upon facilitation mindset this program on a regular basis leveraging the appraisal outcomes as crucial metrics for distributing bonusesexperience. Through one-on-one leaders” closed loop. successfully passing the propels cross-functional adjusting salaries allocating profit-sharing dividends and determining career promotions.counseling situational performance appraisal mentors collaboration upgrades meeting Following the conclusion of the Annual Business Review and Budgetary Conference Division-
simulations and competency are granted dedicated incentive cultures and enhances
assessments we expand their rewards. organizational resilience. level executives conduct one-on-one sessions with department or functional heads to reach a
strategic horizons and change- mutual consensus on individual goals and Key Performance Indicators (KPIs). Subsequently
management capabilities. department or functional heads communicate with their respective team members individually
to co-define personal KPIs ensuring that corporate strategic objectives are efficiently
transmitted and executed from the top down.Constructing an AI Education and Training System
Annual Business Review & Budgetary Conference
Formulate corporate strategy and objectives
Artificial intelligence is a pivotal driving force for cultivating New Quality Productive Forces and spearheading industrial transformation.Centering on digital transformation and technological innovation the Company has launched a series of AI-related courses - including Top-Level
Planning for Digital Transformation: Integrated Supply Chain Project Top-Level Planning Project for Smart Campuses Bi-Weekly Symposium: Departmental & Individual KPI Planning Sessions
Technology and AI Data Analytics and Finding Digital Companions: Digital Transformation in Practice - accelerating the strategic reserve of AI Establish departmental and individual objectives and performance metrics
talent. In 2025 these programs achieved a cumulative training volume of 2575 person-times with total training hours reaching 23976 hours.Personal KPI Setting at the Start of the Fiscal Year
Periodic Review
International Talent Cultivation
Performance Evaluation & Promotion Appraisal
To adapt to our global footprint and overseas factory construction strategies the Company systematically cultivates internationalized talent. We
regularly dispatch employees for hands-on operational training overseas and continuously carry out multi-language training. Specifically TOEIC
English training and proficiency testing are conducted for managers and engineers. Furthermore Thai language training was introduced in 2023;
in 2025 alone 17 employees were trained bringing the cumulative total to 67 proficient individuals thoroughly guaranteeing communication Functional
Performance Bonuses Job/Position Promotions & Development &
efficiency across our Thailand manufacturing facilities. Multi-language training robustly underpins globalized operations and marks a critical Salary Adjustments Training Program
milestone in the Company’s internationalization strategy.
101Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Report Holding the Chairman Performance Recognitions
for Long-term Steady Stewardship & Green
Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Performance Evaluation System ◆ Employee Evaluation Methodologies and Operational Practices
Upholding the core principles of objectivity equity Evaluation Methodology Target Audience Frequency Operational Execution & Practices
and fairness the Company regularly conducts At the end of each year corporate strategies and high-level goals are established during the Annual Review and Budgetary Conference.employee performance evaluations encompassing
Management by Objectives (MBO) multi- Heads of various business units decompose and configure unit-level KPI targets based on corporate strategies.dimensional assessments and team performance Management by Professional Semi- Unit heads conduct one-on-one sessions with department or functional managers to output mutually agreed-upon personal goals and key KPIs.evaluations. Serving as a critical annual Objectives (MBO) Staff (Shi-level) annually
Department or functional managers concurrently hold one-on-one (sessions) with subordinates to co-define personal KPIs.communication mechanism performance reviews
facilitate two-way dialogues between managers and Performance attainment is reviewed after six months/one year and managers at all levels sequentially evaluate the performance of their subordinates within the department.employees to clarify job role priorities career Multi-Dimensional Management Annually Following an initial employee self-evaluation individuals simultaneously undergo multi-source evaluations conducted by their direct supervisors
growth expectations development trajectories and Assessment Positions and heads of the departments they serve.operational goals ensuring that individual Team Performance All Operating Annually Business Units (BUs) are evaluated based on their annual revenue and profitability performance metrics whereas supporting/peripheral units are
performance seamlessly aligns with overall Evaluation Units evaluated via a cross-functional peer review system.Upon completing formal evaluations managers must conduct face-to-face performance reviews with employees coaching them to formulate
organizational objectives Agile Dialogue Total Workforce Continuous Personal Performance Improvement Plans (covering job rotation training counseling etc.) to drive mutual progress. Managers can also leverage
the Dingsheng e-Academy online learning platform to track employees’ learning roadmaps in real time.Upon the completion of performance evaluations
adhering to the philosophy of matching talent with
suitable roles to maximize human capital potential ◆ Internal Training Course Lifecycle Flowchart
the Company constructs a dual-dimensional
employee growth architecture rooted in learning
Annual Training Annual Needs Survey Education & Submitted for
Monthly Deployment of Efficacy
development and talent progression. This Needs Survey Education & Trainee Active Questionnaire Executive Training Plan Training Plan Education & Participation Evaluation &
framework supports both managerial and technical Launched Completed ApprovalFormulated Drafted Training Review
professional staff in achieving diversified career
paths based on their unique traits and competencies
provisioning matched training curriculums for each ◆ Workforce Participation in Regular Performance and Career Development Reviews
stage of employee growth. To continuously Taiwan Shenzhen Qinhuangdao Huai’an India Thailand Other Overseas
enhance managerial efficacy the Company Category Total
Male Female Male Female Male Female Male Female Male Female Male Female Male Female
introduces targeted curriculums tailored to different
managerial echelons encouraging autonomous Number of Management Positions Receiving Regular Performance
and Career Development Reviews 164 27 1073 266 1025 195 1447 225 7 0 0 0 0 0 4429
learning to foster co-growth between employees
and the enterprise. Total Headcount of Management Positions 169 27 1078 266 1027 195 1475 227 7 0 0 0 1 0 4472
Percentage of Management Positions (%) 97% 100% 100% 100% 100% 100% 98% 99% 100% 0 0 0 0 0 99%
In 2025 a total of 46063 employees underwent
regular performance and career development Number of Non-Management Positions Receiving Regular
Performance and Career Development Reviews 458 326 8281 4173 7792 4497 9714 5539 108 31 368 338 4 5 41634reviews. This includes 975 employees in the
Taiwan campus 44227 in Mainland China Total Headcount of Non-Management Positions 551 375 8440 4234 7857 4524 10043 5626 273 270 462 430 4 12 43101
campuses 146 in the India campus 706 in the Percentage of Non-Management Positions (%) 83% 87% 98% 99% 99% 99% 97% 98% 40% 11% 80% 79% 100% 42% 97%
Thailand campus and 9 in other overseas locations Total Headcount Receiving Regular Performance and Career
achieving an overall workforce coverage rate of Development Reviews 622 353 9354 4439 8817 4692 11161 5764 115 31 368 338 4 5 46063
97%. This robustly demonstrates the Company’s Total Workforce 720 402 9518 4500 8884 4719 11518 5853 280 270 462 430 5 12 47573
high level of commitment to talent cultivation and
Overall Percentage (%) 86% 88% 98% 99% 99% 99% 97% 98% 41% 11% 80% 79% 80% 42% 97%
development.
102Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Occupational Health and Safety (OHS) Occupational Safety and Health Committees
Occupational Health and Safety Policies and Management In fiscal year 2025 the Safety Committees across the Company’s various campuses comprised a total of 316
members among whom 249 were employee representatives accounting for 78.80% of the total roster. The Safety
The Company strictly abides by relevant laws regulations customer guidelines and the core tenets of sustainable Committee serves as a pivotal platform for consolidating safety consensus and driving all-employee participation
operations to formulate and execute occupational health and safety commitments and policies that align precisely with with senior executives from all business units personally attending. The meeting agendas span the advocacy of
our actual operational realities. These policies have been publicly disclosed on our official corporate website; for safety regulations review of EHS incidents and the cross-sharing of management insights aimed at optimizing
granular details please refer to the “Avary Holding Occupational Health and Safety Policy” section. EHS management mechanisms and accelerating collaborative enhancement across all campuses. The committee’s
constituent units cover production manufacturing divisions as well as all relevant functional departments.Occupational Health and Safety Management Systems (OHSMS) Employees consult and participate via factory EHS representatives or designated safety officers while contractors
participate through the Company’s responsible management leads who transmit committee mandates and feed
To provision a safe and healthy working environment for both employees and contractor personnel and to back on-site safety requirements.continuously elevate our occupational health and safety performance the Company’s primary manufacturing
campuses in Mainland China as well as overseas facilities have all successfully obtained the ISO 45001:2018 The Safety Committee convenes on a monthly basis to deliberate on key agendas including: safety standard
Occupational Health and Safety Management Systems external certification. This coverage encompasses all workers formulation hazard audit and analysis safety initiative advancement promotion of new regulations and technical
operational activities and workplaces across our global operating locations ensuring that the management of both standards emergency drill performance safety cultural campaigns continuous improvement safety proposals
internal employees and third-party contractors strictly complies with statutory codes and regulatory mandates. review of work injury/accident case studies contractor safety management and the solid execution of new-hire
training.The Company rigidly observes Article 4 of the Law of the People’s Republic of China on the Prevention and Control
of Occupational Diseases which mandates that employers must create a working environment and conditions for Beyond the corporate-level Safety Committee to enforce localized autonomous management each individual
laborers that conform to national occupational health standards and sanitary requirements and take effective measures factory area convenes a factory safety meeting at least once a month - chaired by the Factory Director or an
to guarantee that laborers receive occupational health protection. Concurrently the Company adheres to Article 11 of authorized proxy - to conduct root-cause hazard analysis and disseminate critical safety updates.the Provisions on the Administration of Occupational Health in the Workplace requiring that employers with
occupational disease hazards must formulate prevention and control plans implement programs and establish robust
occupational health management systems and standard operating procedures (SOPs). Occupational Safety Risk Assessment
The Environmental Health and Safety (EHS) departments across all campuses are staffed with full-time dedicated ◆ Four-Step Occupational Safety Risk Assessment Lifecycle
professionals who plan and propel campus-wide safety and sanitation management operations. All relevant personnel
possess valid professional certificates to operate and the EHS departments report directly to the top administrative
executives of their respective campuses.The Company’s safety management paradigm has systematically progressed from institutionalization and Hazard
Identification & Comprehensive Risk Risk Control Education &
proceduralization toward full scale digital systemization. We have engineered an all-in-one integrated safety Analysis Assessment Implementation Training
management platform that seamlessly covers vendor management occupational health tracking certificate/licensemanagement safety responsibility pacts safety training EHS incidents and safety KPIs. Take the “Certificate andPrior to undertaking any new business ventures EHS professional teams conduct proactive hazard identificationLicense Management Module” as an example: the system enforces full-lifecycle closed-loop control over all safety-
and analysis utilizing qualitative or quantitative evaluation methodologies to complete a comprehensive risk
related qualifications. The “Occupational Health Management Module” dynamically monitors personnel transfers
assessment. For new operations that satisfy corporate risk-tolerance thresholds matched rules standard operating
across hazardous posts and automatically triggers system restrictions to prohibit individuals with occupational
procedures and emergency response plans are systematically drafted. During the planning and architectural design
contraindications from entering contraindicated operational positions. By linking safety management nodes through
phase of new facilities EHS teams intervene ahead of schedule to execute architectural fire safety design reviews
automated systems and digitized workflows the Company forms a robust closed-loop management mechanism and
contractor management plans inspections of high-risk
enforces all-employee safety performance appraisals and oversight.
103Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
equipment/zones protective equipment assessments emergency gear data sourcing and personnel This center is responsible for the centralized monitoring disposition and notification of abnormal information across all industrial
recruitment and training strategies. Construction projects strictly execute the “Three Simultaneities” campuses achieving optimal resource integration and rapid emergency response under a strict 24/7 dual-person shift system.(Three Co-existences) Principle - mandating that safety facilities and occupational disease protective
facilities must be designed constructed and put into operational production and use simultaneously Furthermore Micro Fire Stations have been established across all campuses fully equipped with professional apparatus such as
with the main project body. Furthermore during the feasibility study stage independent third-party fire-fighting gear detection instruments emergency response facilities fire suits chemical protective suits emergency carts and
institutions are commissioned to perform pre-assessments for both general safety and occupational Self-Contained Breathing Apparatus (SCBA). Concurrently the Company has formulated a comprehensive fire emergency
disease hazards. response plan with clearly defined evacuation routes. The production floors are strategically provisioned with specialized
emergency rescue equipment including eyewash stations emergency medical kits Diphoterine (a specialized chemical rinsing
To effectively prevent occupational hazards the Company has institutionalized a safety evaluation solution) and Automated External Defibrillators (AEDs). We regularly conduct hands-on training sessions on emergency facility
framework regularly retaining qualified independent third-party agencies to conduct risk identification operation AED utilization and Cardiopulmonary Resuscitation (CPR) to elevate employees’ capabilities for self-rescue and
across our workplaces. We pinpoint risk spots based on operational flows and implement hierarchical mutual aid.risk control continuously refining risk mitigation measures. Internally a comprehensive risk
identification process is launched at least once a year. For unacceptable risks engineering controls are Strengthening Hazard Identification and Safety Awareness
prioritized to eliminate or mitigate risks minimizing the occurrence of occupational injuries. The
Company has also established safety evaluation protocols for equipment procurement; new machinery
and equipment undergo rigorous safety assessments and verification before procurement during
installation and prior to official commissioning neutralizing or lowering equipment-associated safety
risks at the source.Organize cross-departmental joint audits to Formulate specialized inspection initiatives Leverage diversified training and
For irregular or unscheduled high-risk operations the undertaking unit must submit a formal permit-to- identify potential hazards and risks from targeting past EHS incidents propelling communication channels to persistently
work application prior to operation. EHS personnel will verify the compliance of the workplace multi-dimensional perspectives. The audit comprehensive cross-campus screenings to reinforce safety awareness and occupational results are reported directly to the Safety strictly eliminate the recurrence of similar health cognition among all employees.environment and protective measures on-site; work may only commence upon formal approval. Committee to drive continuous optimization incidents.Throughout the operational process full-time supervision or periodic patrol inspections are enforced of our inspection protocols.according to the assigned risk control tier. Employees reserve the right to report any plant structures Prevention Remediation Continuity
production lines or equipment that fail to meet safety production mandates or present critical hazards to
their supervisors. In the event of an emergency that gravely threatens personal safety employees have
the explicit right to cease operations and immediately report the situation to senior management for
urgent disposition. ◆ Occupational Health Training Case Studies
Safety Hazard Audits and Remediation
To promptly detect and efficiently mitigate safety hazards the Company continuously enhances its
inspection methodologies driving a strategic paradigm shift from supervisory oversight to autonomous
self-management. Our comprehensive audit scope covers critical areas - including fire lanes and
emergency exits non-compliant operations equipment safety guarding electrical facilities working
environments occupational hygiene the proper use of Personal Protective Equipment (PPE) fire-
fighting infrastructure employee safety training and construction safety - while managing all identified
deficiencies through a rigorous tiered framework where simple hazards are remediated immediately on-
site phase-by-phase risks are corrected within specified timeframes and high-difficulty or high-impact
hazards are met with the legal suspension of production to enforce mandatory rectification.▲ Inviting hospital physicians to conduct specialized ▲ Distributing illustrated occupational disease
occupational health training for employees prevention booklets to the workforce
To reinforce fire safety management the Company has established a centralized EHS Control Center.
104Integrity Management
About This About Avary Environmental Message from ESG Key Major Honors & Sustainability Innovation Empowers Empowering Employees Giving Back to Society
for Long-term Steady
Report Holding Recognitions Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Occupational Safety Incident Management ◆ Incident Investigation and Disposition Lifecycle
The Company has instituted the Operational Specifications for EHS Incident Management
explicitly defining the protocols for incident notification emergency disposition and investigation
procedures. This guarantees that relevant units can respond rapidly and report promptly in Incident Investigation & Education &
accordance with the Emergency Incident Notification Flowchart upon the occurrence of any incident. Notification Disposition Training
Following an incident the responsible unit must conduct a rigorous root-cause review formulate
short-term and long-term corrective actions based on tiered categories and execute horizontal
deployment across all industrial campuses to prevent similar incidents from recurring.* Notify Campus EHS * Responsible unit convenes an * Safety Committee advocacy
* Activate Emergency incident review conference and dissemination
Incident Classification and Tiered Reporting Framework Response Plan * Simultaneous screening and * Standardized education and
remediation executed across all training deployment
factories
Near-Miss Incidents
On-site personnel must immediately report to the floor supervisor. The floor supervisor
then notifies the EHS Control Center and the Section Chief of the respective unit followed
by step-by-step escalation to the direct executive. The EHS Control Center dispatches EHS Emergency Notification Procedure for Workplace Safety Incidents
personnel for on-site verification and formally notifies the Section Chief of the EHS
Department.Minor and General Accidents
Building upon the Near-Miss notification chain the reporting scope escalates to include Emergency Contact Numbers
the Director of the EHS Department. Central Control Center (internal line) Notify immediately Incident discoverer notifies Emergency
Central Control Center Response Team
(mobile)
Notify immediately
General Fires/Explosions Severe and Major Accidents Notify the Customs Affairs Department Notify immediatelyCentral Control Center On-site supervisor
Building upon the previous escalation chains notifications are immediately forwarded to immediately upon occurrence of damage to the involved materials and equipment Notify immediately
the Campus Administrative Executive the Business Division Executive and the Chairman Notify immediately
Safety Personnel
of the Board. (preliminary confirmation) Notify all relevant
supervisors via group Area section-level supervisor
Notify immediately channel
Incident Investigation and Disposition Lifecycle Safety Department/Division Supervisor Notify immediately(confirm severity level)
Notify immediately Area division-level supervisor
The Company implements full-lifecycle closed-loop management for all occupational safety
Park Administration Executive
incidents. Upon the occurrence of an EHS incident the affected unit must immediately report to the Safety Department Executive Head Notify immediately
EHS Control Center via telephone verbal communication or email. Designated EHS personnel are Notify immediately; Plant/Department-level head – alert
immediately
responsible for official logging and filing. The filed record must explicitly note the reporter’s Notify immediately Escalate as severity dictates review instructed by CCO
department name and contact details to serve as the benchmark for subsequent investigation and Chief Commercial Officer (CCO) Notify immediatelyChief Operating Officer (COO) Report to government regulatory bodies
clarification while tiered notifications are launched based on the preliminary incident Notify immediately Business Unit (BU) Head & COO
classification.To foster a proactive safety culture the Company grants awards and commendations Chief of Staff Upon approval
Central Control Center
to meritorious individuals who actively discover effectively mitigate or truthfully report safety Company Spokesperson A material event
(Preliminary
Notify that significantly affects the Notify all relevant confirmation) Notify immediately
hazards. Concurrently the Company strictly protects the confidentiality of whistleblower immediately（Confirm the situation） company's operations and supervisors via group development channel
information ensuring that no reporter suffers any form of retaliation or disciplinary action for Chairman
making a legitimate good-faith safety report.
105Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Analysis of Work-Related Injury Incidents Workplace Health and Safety Promotion
Chemical Management and Occupational Health Services
Insufficient Safety Non-Compliant
Awareness: 7 incidents Operations: 8 incidents To safeguard employee health the Company prioritizes the substitution of highly toxic and extremely hazardous chemicals with
accounting for 47% accounting for 53% non-toxic or low-toxicity alternatives. In scenarios where no viable substitution exists a rigorous risk level assessment must be
executed prior to the introduction and use of the chemical. Operators handling hazardous chemicals must strictly abide by safety
operating procedures skillfully master emergency response and self-rescue/mutual-aid methodologies properly select wear and
maintain Personal Protective Equipment (PPE) and cooperate in implementing engineering controls. For foreign/expatriate
employees the Company translates chemical hazard information into their respective native languages to ensure that they fully
comprehend operational risks.The Company has engineered an end-to-end lifecycle control mechanism spanning chemical loading/unloading
receiving/dispatching storage usage and disposal. Based on the distinct categories and properties of hazardous chemicals
Contractor On-Site Construction Workflow matched safety infrastructure - including ventilation sun-shielding temperature regulation fireproofing fire extinguishing
explosion-proofing moisture-proofing lightning protection anti-static anti-seepage and protective containment dikes - is
The Company has formulated the Contractor Safety Management Operational Measures which configured across storage facilities and operational workplaces. For on-site usage minor chemical quantities are handled via
comprehensively standardize the safety management mandates and protective measures for small-bottle dispensing operations whereas large-scale chemicals are automatically dosed through the chemical delivery system.contractors across three distinct phases: pre-construction during construction and post-construction. Chemical chemical waste liquids and empty drums are reclaimed and disposed of in full compliance by specialized licensed
external agencies.Contractor On-Site Briefing Routine
& Inspections Pre- Retention and To guard against abrupt safety accidents the Company has formulated the Operational Measures for Chemical Accident Submits
Construction Tool/Equipment During and Post-
Filing of the
Construction Emergency Response and the Emergency Incident Notification Flowchart. The EHS department enforces full-process supervision
Application Inspection for Construction via
Personnel Safety Checklist Permit and management across hazardous chemical warehousing usage and waste collection. This spans the safe storage of hazardous
chemicals and waste safety training and qualification licensing for operators emergency response for major chemical incidents
and comprehensive safety evaluations. Integrating actual production conditions each industrial campus regularly conducts
Prior to the commencement of construction contractors must sign the Safety and Sanitation emergency drills for scenarios such as chemical leaks. The EHS division designs specialized emergency response training
Commitment Letter to guarantee that all operational activities conform to occupational health and blueprints to fully elevate emergency response and mitigation capabilities.safety standards. They must also complete internal employee safety training and special
equipment operators must possess valid professional qualification certificates to work. The Regarding hazardous chemical workstations the Company publicly discloses the relevant Safety Data Sheets (SDS) to employees
Company uniformly deploys safety training and examinations for contractors’ safety officers guiding them to recognize safety labels comprehend technical instructions and master the physical characteristics health hazardsconstruction workers and the heads and service staff of resident vendor partners. Upon passing and reactivity of the chemicals they handle. Annually the Company organizes a targeted “Hazardous Chemical Operatorthe examination a Safety Training Certificate with a 1-year validity period is issued and Qualification” training program for personnel working with hazardous chemicals to ensure strict certified-to-work compliance.retraining as well as re-assessment are strictly required upon expiration.In terms of upstream chemical containment the Company implements a strict hierarchical risk management framework focused on
In 2025 the Company recorded 13859 person-times of contractor personnel successfully passing source control - enforcing rigorous full-lifecycle monitoring and complete traceability for high-risk chemicals standardizing
safety training to obtain certification and 2756 person-times of safety officers obtaining storage and usage alongside regular testing for medium-risk chemicals and rigidly executing withdrawal registration logs and
certificates. 100% of contractor personnel entering the Company’s industrial campuses for routine patrol inspections for low-risk chemicals - thereby explicitly defining concrete requirements across all operational phases
construction operations successfully obtained Safety Training Certificates. to omnidirectionally safeguard our workforce; moreover in strict accordance with occupational health regulations the Company
106Integrity Management
About This About Avary Environmental Message from ESG Key Major Honors & Sustainability Innovation Empowers Empowering Employees Giving Back to Society
for Long-term Steady
Report Holding Recognitions Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
commissioned qualified independent third-party institutions in 2025 to conduct its annual testing on All training programs are strictly scheduled within standard working hours with post-training follow-up evaluations
workplaces containing occupational hazards mapping both physical and chemical factors to precisely grasp risk deployed to guarantee that training efficacy is solidly institutionalized.magnitudes and systematically deploy targeted measures.To comprehensively elevate employee safety literacy and emergency disposition execution the Company conducts
The EHS department of each campus files the annual environmental hazard factors testing results with the quarterly “Essential Safety Knowledge and Skills Competency Assessments” utilizing a comprehensive examination
competent regulatory authorities for the record. Concurrently these results are publicized on the Occupational matrix that spans a Generalist Category covering fire electrical hazardous chemical traffic seasonal specialized and
Health Notice Boards to protect employees’ right to environmental information disclosure. workshop-level safety; a Manufacturing Category focused on production and manufacturing safety standards; and an
Equipment/Electromechanical Category dedicated to mechanical and electrical equipment safety protocols.Category Specific Hazardous Factors Applicable Workstations/Posts
Physical Factors Noise High Temperature X-Ray etc. Cutting Rooms Lamination Presses etc. Annually the Company hosts themed cultural campaigns during “Safety Month” in June and “Fire Safety Month” in
November. Through diversified and engaging formats - such as safety knowledge quizzes with prizes competitive trivia
Chemical Acid Mist Ammonia Water Methanol Nitrogen Etching Lines Electroplating Lines Cutting Rooms
Substances Oxides Dust etc. Dust Collection Plant Rooms etc. contests hands-on emergency gear trials and safety-themed comic/poster competitions - we reinforce employees’
safety cognitive recognition in a vivid and interactive manner.The Company retains medical institutions with valid occupational health qualifications to conduct
comprehensive pre-employment on-the-job and post-employment (termination) occupational health
examinations for all workers assigned to hazardous posts customizing the clinical check-up items based on the Government Recognitions and Honors Received by Campuses in
specific hazard factors of each role. For any abnormalities surfaced in the medical results the Company
continuously tracks improvement and implements protective measures - such as job role adjustments - as Occupational Safety
circumstances dictate.Campus Awards Recognitions and Institutional Honors
Employee Education and Training 1st Place Overall (Team): 2025 Fire-fighting Masters PK Tournament & Micro Fire Station Skills Competition
Building upon statutory safety training curriculums the Company has engineered a multi-channel continuous 1st Place (Individual Sprint - Fire Hose Deployment): 2025 Fire-fighting Masters PK Tournament Qinhuangdao
and matrixed safety communication ecosystem. This includes introducing a dedicated EHS column in our Qinhuangdao Economic and Technological Development Zone
internal publication The Dingsheng Times; looping safety education videos across campus televisions and Campus 1st Place (Individual Sprint - Fire Turnout Gear Donning): 2025 Fire-fighting Masters PK Tournament
digital advertising displays; broadcasting safety insights via campus radio networks; and pushing real-time Qinhuangdao Economic and Technological Development Zonesafety briefs through our WeChat Mini-Program ”Ding Ding Da Ming” and the Dingsheng e-Academy mobile
application omnidirectionally augmenting employee safety awareness. Concurrently employees who Advanced Unit for Remote Fire Monitoring Operations (2025): Awarded to Hongqisheng
demonstrate outstanding performance in fire safety safety cultural campaigns and fire drills are officially
commended and rewarded. Guangdong Provincial Work Safety Standardization Level-2 Certification: Awarded to Avary Second Campus
The Company implements the “Golden Seed” Program for Tier-A Personnel wherein outstanding employees Shenzhen Industrial
Park National Healthy Enterprise Status
recommended by their respective departments undergo professional training curated by factory EHS teams.This empowers them with robust environmental risk identification fire-fighting equipment operation and Second Prize: Bao’an District Knowledge Competition on the Law on the Prevention and Control of Occupational
emergency rescue and disposition capabilities transforming them into foundational on-site safety Diseases
leaders.Concurrently each industrial campus deploys targeted training covering emergency response fire- Technical and Theoretical Guidance Consultant for Fire Rescue in Modern Electroplating Industrial Plants: The
fighting drills safety scaling for newly introduced equipment and regulatory professional certification training Maritime Brigade of the Huai’an Fire and Rescue Detachment officially appointed the Director of the Huai’an EHS
(such as certified electricians and pressure vessel operation licenses). Hands-on practical training is Huai’an Industrial Department to this consultative role
meticulously conducted for emergency apparatus - including fire extinguishers fire hydrants and emergency Park
response carts - to sharpen employees’ tactical operational readiness. The Company has formulated stringent External Part-Time Mentor for Specialized Operational and Theoretical Research Taskforce: The Huai’an Fire and
emergency rescue blueprints for fire scenarios evacuation procedures and confined space operations initiating Rescue Detachment officially appointed the Director of the Huai’an EHS Department to this research group.regular drills to reinforce mutual aid and self-rescue competencies. 107Integrity Management
About This About Avary Major Honors & Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
for Long-term Steady
Report Holding the Chairman Performance Recognitions
Stewardship & Green
Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
EHS Management Initiatives and Achievements Management Principles and Performance Evaluation Benchmarks
Summary of Occupational Health & Target 2025 Actual Performance 2025 Target Achieved
EHS Initiatives Key Operational Activities Key Achievements Safety Material Issues (Yes or No)
2026 Target
in 2025 EHS Incident Number of Fire
Prevention Incidents: 0 0 Yes 0
Number of
Fire Drills & Occupational Health
Emergency Conduct campus-wide fire and emergency
Successfully executed 98 factory-level fire evacuation drills
throughout the year robustly enhancing employees’ Management
Occupational Disease 0 Yes 0
Response evacuation drills on a semi-annual basis.Cases: 0
emergency readiness and crisis disposition capabilities.Note: The statistic for “Number of Fire Incidents” strictly refers to fire emergencies that required the intervention of external emergency forces (i.e.local fire brigades).Commission qualified third-party Testing benchmarks identified physical hazard factors
professional institutions to conduct annual primarily as: noise high temperature and X-rays; chemical 2025 Work-Related Injury and Illness Performance Metrics
testing for occupational hazards (once a year).hazard factors primarily as: acid mist ammonia water Workplace methanol nitrogen oxides and dust.Environment All Non-Employee Workers Whose Work
Monitoring Key Performance Indicators (KPIs) Internal Employees and/or Workplace is Controlled by the
Execute internal noise testing on a quarterly For any localized metrics falling short of statutory codes Organization (Contractors)
basis. stringent engineering and administrative controls are deployed to protect worker safety. Number of fatalities as a result of work-related injury 1 0
Employee Health Deploy comprehensive pre-employment on-
Rate of fatalities as a result of work-related injury 0.0082 0
Examinations the-job and post-employment (termination)
Completed a total of 21052 person-times of medical
occupational health check-ups. examinations throughout the year. Number of high-consequence work-related injuries (excluding fatalities) 0 0
EHS Control Center Rate of high-consequence work-related injuries
Grievance Line “Ding Ding Da Ming” WeChat Mini-Program (excluding fatalities)
00
Employees who encounter unfair treatment in Grievance ModuleGrievance Number of recordable work-related injuries 15 0
Mechanisms the workplace can feed back opinions through formal corporate channels. Employee Feedback & Suggestion Window
Rate of recordable work-related injuries (LTIFR) 0.12 0
Chairman / Labor Union / Party Committee Mailboxes
Total hours worked 122673211 13940696
Infectious Disease Refine and optimize management workflows
Engineered an institutional emergency framework for Mechanical Injuries Chemical
and contingency protocols for infectious infectious diseases actively disseminated health knowledge
Primary types of work-related injury Burns Mechanical Injuries
Prevention disease control. and established robust safety inventory reserves for protective materials. Number of casualties caused by fire incidents 0 0Host mandatory quarterly “Essential Safety Total employee participation reached 181916 person-times Ratio of casualties to total employee headcount 0.02‰ 0Knowledge and Skills Competency for the year with both the participation rate and passing rateEmployee Safety Assessments.” reaching 100%. Number of fatalities as a result of work-related ill 0 0
Training & health
Awareness
Promotion Host themed cultural campaigns during Rate of fatalities as a result of work-related ill health 0 0
“Safety Month” (June) and “Fire Safety Successfully rolled out 22 specialized safety campaigns acrossMonth” (November). global industrial campuses. Number of recordable cases of work-related ill health 0 0
Lost Time Injury Frequency Rate (LTIFR) per 54.31 0
Contractor Safety Mandate that all contractor personnel must Completed safety onboarding and qualification certification 1000000 hours worked
Training obtain a valid Safety Training Certificate for 13859 person-times of construction workers and 2756 annually. person-times of safety officers upon plant entry. Lost Time Injury Frequency Rate (LTIFR) per
200000 hours worked 10.86 0
108Integrity Management
About This About Avary Message from ESG Key Major Honors &
Environmental
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Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Historical Lost Time Injury Rates
Key Performance Indicators (KPIs) 2022 2023 2024 2025
Employees: Historical Lost Work Day Rate per 200000 Hours Worked 2.16 2.7 2.6 10.86
Employees: Historical Disabling Injury Severity Rate per 1000000 Hours Worked 10.81 13.52 13.02 54.31
All Non-Employee Workers Whose Work and/or Workplace is Controlled by the Organization (Contractors): Historical Lost Work Day
Rate per 200000 Hours Worked 0 0 0 0
All Non-Employee Workers Whose Work and/or Workplace is Controlled by the Organization (Contractors): Historical Disabling Injury
Severity Rate per 1000000 Hours Worked 0 0 0 0
Employees: Lost Time Injury Frequency Rate (LTIFR) 0.29 0.23 0.26 0.12
All Non-Employee Workers Whose Work and/or Workplace is Controlled by the Organization (Contractors): Lost Time Injury
Frequency Rate (LTIFR) 0 0 0 0
Note: The formulas and definitions of the relevant indicators are as follows
* Lost Work Day Rate (LWD) per 200000 Hours Worked = Total lost work days due to occupational injury divided by total hours worked multiplied by 200000
* Disabling Injury Severity Rate (SR) per 1000000 Hours Worked = Total lost work days due to occupational injury divided by total hours worked multiplied by 1000000
* Rate of Fatalities as a Result of Work-Related Injury = Number of fatalities due to occupational injury divided by total hours worked multiplied by 1000000
* Rate of Recordable Work-Related Injuries (Lost Time Injury Frequency Rate LTIFR) = Number of recordable work-related injuries (lost time injuries) divided by total hours worked (total working hours within the accounting period) multiplied by 1000000
* Rate of Fatalities as a Result of Work-Related Ill Health = Number of fatalities due to occupational diseases divided by total hours worked multiplied by 1000000
◆ EHS Activities and Case Studies
▲ On-site View of EHS and Fire Evacuation Drills ▲ Fire Safety Knowledge Advocacy and Dissemination ▲ Red Cross Certified First Responder Training
109Giving Back to Society Staying True to Our Founding Mission
The Company consistently believes that beyond value creation the existence of an enterprise carries a much more profound purpose. While pursuing profitable growth and organizational
expansion during its development an enterprise must fully fulfill its social responsibilities. The Company is deeply cognizant of the critical importance of co-existence and mutual
prosperity among the enterprise individuals the environment and society. We firmly hold that our core value of altruism serves as the foundational cornerstone for the sustainable
operations of our enterprise.About This About Avary Message from ESG Key Major Honors &
Integrity Management Environmental
Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Care and Assistance Furthermore the Company provides long-term financial assistance to underprivileged college students with
excellent academic and moral standing helping them complete their four-year university education. We
The Company closely aligns its operations with the United Nations Sustainable Development Goals (SDGs). Upholding regularly conduct caring interactions to track their academic progress and personal growth. From 2019 to 2025
our core value of “Co-existence with the Earth” we consistently drive social innovation and take concrete actions to co- this initiative cumulatively covered 14 universities and 2 key target regions (Ziyang County in Shaanxi
build a sustainable home. To achieve social common good the Company amplifies its positive impact to drive the Province and the Liangshan Greater Mountain Region in Sichuan Province) sponsoring 585 underprivileged
remediation of social issues while elevating employees’ sustainability awareness.The Company has established an ESG students. In 2025 186 newly sponsored students were added safeguarding the dreams of youth through
Development Committee to universally formulate and execute policies and standards related to social engagement. This continuous investment.ensures that all subsidiaries across the Group maintain an aligned direction and clear principles regarding external public
affairs and policy engagement while collaboratively supporting social organizations with shared philosophies.Under the
Committee a dedicated team of ESG Domain Experts is tasked with landing social engagement policies and standards ◆ Historical Statistics of College Students Sponsored by the Company (Unit: Persons)
across various operational sites assessing risks and opportunities within public affairs and planning as well as driving
annual action plans. Each industrial campus has established a corresponding internal execution organization with clearly
defined structures and responsibilities to implement targets and execution tasks in accordance with Group policies. Sponsored Institutions 2022 2023 2024 2025
Shenzhen University 19 36 18 -
Guangdong University of
Supporting Cultural Development Technology 15 28 14 -
Dongguan University of 12 20 10 -
In 2025 the Company invested a total of RMB 1676775 to support three key initiatives: digital transformation Technology
environmental protection advocacy and health culture. Each industrial campus focused on local cultural development Yanshan University 18 35 18 -
externally sponsoring regional basketball tournaments and environmental advocacy campaigns hosted by China
Environment News. Internally campuses published The Dingsheng Times newspaper to deploy corporate culture Hebei University of Technology 15 30 15 -
communications health culture promotion and academic education advancement initiatives.During the Reporting Period Hebei Normal University of 14 27 14 -
the Company cumulatively invested RMB 1236751 in these internal initiatives. The Company places key emphasis on Science & Technology
promoting health and environmental protection cultures while concurrently hosting athletic tournaments to enrich cultural Huaiyin Institute of Technology 17 41 25 -
connotations and elevate comprehensive employee participation leveraging corporate power to drive the development of
the cultural sector and fulfill corporate social responsibility. Huaiyin Normal University 15 24 9 -
Nanjing Institute of Technology 13 23 10 -
Talent Grants and Educational Nurturing Relevant Institutions in Ziyang County Shaanxi Province 138 153 151 128
Liangshan Mountain Region
Sichuan Province 10 39 49 58
The Company leverages a dual-track model combining charitable educational grants with industry-academia collaboration
to advance educational equity and nurture young talents. Through sponsorship support and industry-academia partnerships Total 286 456 333 186
we provide students with premium learning resources and practical opportunities narrowing the gap in educational
resources enhancing youth professional competence and comprehensive literacy and grooming talent reserves for the
sustainable development of both the enterprise and society to construct a mutually beneficial and win-win talent nurturing
ecosystem. Community Philanthropy Activities
Charitable Educational Grants Environmental Protection & Energy Saving Month Campaign
The Company has for many years sustained targeted assistance for primary schools in impoverished mountainous regions The Company has hosted the Environmental Protection & Energy Saving Month campaign for 18 consecutive
by upgrading educational facilities hosting back-to-school symposia distributing back-to-school gift packs and New Year yearssince 2007. Annually during the period from April 22 (World Earth Day) to June 5 (World Environment
consolation materials donating desks chairs books and winter-warming supplies and establishing “Love Book Corners.” Day) the Company collaborates with local government units primary and secondary schools and
Concurrently we roll out interactive activities such as traffic safety courses and “Green Campus Tours” to broaden environmental organizations across various campuses. Together we synchronously host over 209
students’ horizons through edutainment. Volunteers regularly visit the homes of underprivileged students to monitor their edutainment-based green promotion activities. Participants include Company employees the general public
growth environments and inspire them to pursue education. As of 2025 the Company has cumulatively aided 36 primary government entities school organizations and environmental groups. In 2025 the total participation in the
schools benefiting approximately 28000 primary school students. Company’s Environmental Protection & Energy Saving Month campaign reached 290000 person-times.
111About This About Avary Message from ESG Key Major Honors &
Integrity Management Environmental
Sustainability Innovation Empowers Empowering Employees Giving Back to Society
for Long-term Steady
Report Holding the Chairman Performance Recognitions
Stewardship & Green
Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
◆ Photo Highlights of the Environmental Protection & Energy Saving Month
▲ Shenzhen Campus: Collaborated with the Yanluo ▲ Qinhuangdao Campus: School-Enterprise ▲ Huai’an Campus: “Beautiful China Tour” ▲ Shenzhen Campus: “Green Campus Tour”
Environmental Protection Station to launch the Joint Initiative – Environmental Protection Oath. Joint Government-Enterprise Initiative. Initiative.Exhibition Hall Visit Initiative.Environmental Advocacy and Education Campaigns
Campaign Matrix Environmental Protection & Energy Saving Month Campaign Period Annually from April 22 (World Earth Day) to June 5 (World Environment Day)
Environmental Video Screenings Environmental Photography Competition Interactive Green Mini-Games Waste Classification Skills Challenge Jiangsu Carbon Inclusion (Carbon Reduction Check-In)Leveraging concrete narrative formats Capturing and uncovering environmental Utilizing interactive games - such as Hosting a themed competition titled “Waste is Popularizing the vital importance of low-carbonOn-Site to rapidly break through cognitive value within daily scenarios via the pollution source ring-toss and waste Simply a Resource in the Wrong Place” to living and carbon footprint reduction mobilizing
(Internal) barriers allowing employees to camera lens successfully transforming classification challenges - to engage identify and reclaim resources such as paper Avary personnel to participate and elevatingInitiatives intuitively understand the direct the “passive reception of green employees and broaden their environmental metal and plastics cultivating an collective consciousness to co-create a green homecorrelation between environmental knowledge”into the “active execution of knowledge. organizational mindset that views waste as an and build a sustainable planetary ecosystem.protection and their personal lives. environmental actions”. “asset” rather than a “burden.”
School-Enterprise Initiatives “Beautiful China Tour” Joint Government- ETDZ Government-Enterprise Collaborative Enterprise Initiatives Experience Sharing World Environment Day Advocacy Exhibition
* Shenzhen Campus: Partnered with the Yanluo Environmental Protection Huai’an Campus: Partnered with the Qinhuangdao Campus: Co-hosted a To effectively raise residents’ ecological and
Station to conduct a guided tour of the Maozhou River Exhibition Hall. Huai’an Ecology and Environment Bureau government-enterprise collaborative environmental consciousness the Qinhuangdao
Campaign * Shenzhen Campus: Synchronously rolled out the “Green Campus Tour” to orchestrate the World Environment Day experience-sharing symposium with the Campus co-hosted the “World Environment DayFramework initiative in partnership with Shenzhen Bao’an Huayu Chinese-English “Public View on Environmental Protection” Qinhuangdao Solid Waste Management Advocacy Exhibition” with the Qinhuangdao
Primary School. initiative the “Six Shared Journeys” themed Center and the Economic and Technological Ecology and Environment Bureau. High-level
* Huai’an Campus: Collaborated with Shanyanghu Primary School to host a campaign and an environmental Development Zone (ETDZ) Branch of the dignitaries - including the Deputy Director-General
Off-Site themed essay competition titled "Cherish the Earth: Harmonious Co- photography contest. Concurrently the Ecology and Environment Bureau inviting of the Provincial Department of Ecology and
(External) existence Between Humans and Nature. campus collaborated with the Economic and over 20 regional enterprises to our facilities Environment the Deputy Director of the Municipal
Initiatives * Qinhuangdao Campus: Jointly deployed the “Green Commotion on Campus” Technological Development Zone Ecology for benchmarking and study tours. Specialists People’s Congress the Vice Mayor the Vice
campaign alongside the Economic and Technological Development Zone and Environment Bureau and 34 regional from the Municipal Solid Waste Center Chairman of the Municipal CPPCC and the
Branch of the Ecology and Environment Bureau and the Third Primary enterprises to deploy green advocacy delivered a seminar on standardized hazardous Director-General of the Municipal Ecology and
School of the Development Zone. campaigns strongly promoting the waste management followed by a tour of our Environment Bureau - attended the event and highly
Company’s environmental philosophies W02 hazardous waste warehouse. This commended the Company’s environmental
actively mobilizing enterprises third-party exchange established a benign mutual- governance. The Company was officially honored
technical service agencies residents and assistance mechanism to accelerate green with the title of "Representative Guardian of the Port
students and vastly expanding our green corporate development. City."
circle of influence.
112Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Employee Health Initiatives Community Communication and Integration
Centering its focus on the physical and mental well-being of its workforce the Company has rolled out a The Company leverages structured two-way communication channels to enhance mutual understanding elevate residents’ sense
diversified spectrum of activities and seminars - including singing bowl healing sessions badminton of well-being and boost the development quality of local neighborhoods directly echoing UN SDG 12 (Responsible
tournaments mental empowerment workshops and heartwarming DIY sessions. These initiatives aim to elevate Consumption and Production). While aggressively championing sustainable production and consumption the Company
employees’ mindfulness catalyze team communication and foster an organizational sense of belonging and proactively listens to community aspirations and deploys precision philanthropy to unlock a win-win co-creation matrix for both
happiness. In 2025 cumulative participation in external fitness services and physical mental and spiritual the enterprise and local communities.wellness courses exceeded 95000 person-times.Volunteer Services The Company has engineered a dual-layered multi-dimensional community environmental and care ecosystem. The First Layer is led by the Environmental Protection & Energy Saving Department. Utilizing the flagship “Environmental Protection & EnergySaving Month” as a primary carrier this layer penetrates deep into surrounding communities and schools to conduct green
The Company’s volunteer initiatives are strategically deployed around a “Six-Assistance” framework which advocacy seminars interactive trivia contests and immersive experiential activities. This ensures that green philosophies are
encapsulates: assistance for the elderly (“Zhu Lao”) assistance for the vulnerable (“Zhu Ruo”) assistance for rooted early in children’s hearts and organically relayed back to families to elevate broader community environmental
the disabled (“Zhu Can”) assistance for education (“Zhu Xue”) assistance for civilized transit (Zhu Xing”) consciousness.and assistance for environmental cleanliness (“Zhu Jie”). By extending deep care to solitary elderly individuals
persons with disabilities and marginalized groups while concurrently pioneering civic action and ecological The Second Layer is executed by the Corporate Culture Department of the Human Resources Division. This layer effectively
protection the Company effectively amplifies public service efficacy and exemplifies robust corporate operationalizes environmental philosophies into daily community practices. Focusing heavily on high-concern community issuescitizenship. In 2025 the Company recorded 1305 person-times of volunteer participation contributing a such as traffic environment health and quality of life and seamlessly fusing them with the Company’s signature “Seven-Greencumulative total of 4388 service hours. Culture” (Green Innovation Green Procurement Green Production Green Logistics Green Service Green Regeneration and
Green Life) it designates the period from April 22 (World Earth Day) to June 5 (World Environment Day) as the annual
“My One-Acre Paddy Field” Eco-Conservation Program Environmental Protection & Energy Saving Month to continuously roll out green advocacy and localized practical campaigns.In 2025 the Company’s community engagement initiatives achieved 100% comprehensive coverage across all global operations
Steadfast in its commitment to environmental conservation and sustainable operational philosophies the including the Shenzhen Campus Huai’an Campus Qinhuangdao Campus Kaohsiung Campus (Taiwan) Thailand Campus and
Company takes concrete actions to protect ecosystems and establish a benchmark for green enterprises. The India Campus.Company’s Rice Adoption Program has entered its 9th consecutive year cumulatively supporting an eco-
friendly paddy acreage of over 12 hectares and collaborating with local farmers to harvest approximately ◆ Summary of “Ding Yi” Community Philanthropy and Engagement Activities
29000 kilograms of natural unhulled rice.The adopted fields exclusively implement non-toxic natural farming
Addressing Community Empowering methodologies to safeguard soil and water resources while preserving ecological health. In 2025 the project Residents as Institutionalizing Healthy Living Elevating Quality of Life
sustained its deep collaboration with local rice farmers in Daxi and successfully expanded into the Baihe region Grievances Key Actors
of Tainan entering into strict contract farming (“Qi Zuo”) relationships with smallholders in southern regions to Category
integrate north-south resources in support of localized eco-friendly cultivation.Through the “My One-Acre Philanthropic Localized Community Digital Health Wellness & “Six-Assistance” VolunteerPaddy Field” Volunteer Day activities the Company invites employees and their families to experience farming & Caring Environmental Square Dance Live-Streaming Community
firsthand delivering on our promise of localized agricultural support and social common good. Concurrently a Campaigns Clean-Ups Events Courses
Sports Activities Philanthropy Labor
portion of the rice harvest is systematically donated to underprivileged organizations delivering tangible Deployed The Huai’an ShenzhenA cumulative Retained * Organized an Anchoring social Total internal
philanthropic warmth to society. visitation and and Qinhuangdao total of 3 professional organizational philanthropy on our volunteer
consolation Campuses respectively specialized lecturers to deploy rope-skipping core “Six-Assistance”m obilization
Interactive “Walk & Tree-Planting” Mechanism initiatives for collaborated with local sessions were targeted women’s competition framework thematic reached 1305 elderly residentsp rimary schools to executed health and engaging over social welfare person-times
extending care launch themed engaging over knowledge 460 employees. activities were rolled during the year
To foster a healthy workplace and execute environmental stewardship the Company pioneered an innovative Person- and material campaigns including 490 person- seminars * Orchestrated a out month by contributing amechanism that translates walking steps into tree-planting credits. Employees can adopt and sponsor trees by Times & warmth to over “Cherish the Earth: times of synchronously fun sports gala month.Successfully cumulativeSessions 590 senior Harmonious Co- participants broadcasted online drawing 36 executed 98 4388 hoursof accumulating wellness credits with the Love Tree Association of Kaohsiung Taiwan taking charge of citizens. existence Between via the official competitive specialized sessions public service.subsequent professional planting and nurturing operations. In 2025 a total of 479 employees enthusiastically Humans and Nature” WeChat account teams and over throughout the year
participated in the initiative registering a staggering cumulative total of 300161436 steps achieving a carbon “Green Campus Tour” platform attracting 520 person-times with 19317 person-reduction of 42622.9 kilograms and successfully planting 27 trees - realizing a dual-win paradigm for and “Green a total of 1241 of enthusiastic times of activeemployee fitness and ecological restoration. Commotion on person-times of participation. participation.Campus.” engagement
113About This About Avary Message from ESG Key Major Honors &
Integrity Management Environmental
Sustainability Innovation Empowers Empowering Employees Giving Back to Society
for Long-term Steady
Report Holding Recognitions Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Community Engagement and Participation To deepen a dynamic two-way interaction with communities surrounding our
industrial campuses the Company not only independently hosts community care
initiatives but also proactively participates in sports tournaments organized by local
labor unions. These include the “Union Cup” Basketball Tournament in the YanluoSince its inception the Company has steadfastly adhered to its core operating principles of “Integrity Responsibility Innovation Excellence and Subdistrict of Shenzhen the Huai’an ETDZ General Labor Union BasketballAltruism.” We expand our boundaries of corporate responsibility utilizing a concentric circle model - progressing from a foundation of robust Tournament and the “Avary Cup” Youth BA Basketball League co-hosted by the
relationships with our employees and customers and gradually extending outward to encompass the stewardship of society and the environment. The Qinhuangdao Campus the Communist Youth League Municipal Committee and the
Company firmly believes that sustainable corporate operation must never come at the expense of any stakeholder society or the environment; only Municipal General Labor Union. Concurrently the Company takes the initiative to
through holistic societal prosperity can an enterprise unlock long-term resilient growth. participate in themed campaigns for World Earth Day and World Environment Day
hosted by various development zones and ecology and environment authorities
In 2025 the Company conducted a structured social engagement materiality assessment spanning multiple dimensions including community joining hands to execute environmental stewardship.interaction vulnerable group care infrastructure support and indirect economic impacts. Moving forward we strategically focused our resources on
the fields of civilized transit (“Zhu Xing”) environmental cleanliness (“Zhu Jie”) and educational support (“Zhu Xue”) while concurrently Anchored by formal community impact assessments and localized requirements the
maintaining robust assistance for the elderly the vulnerable and the disabled to co-build a harmonious and symbiotic neighborhood partnership Company coordinates the deployment of community development projects across allecosystem. industrial campuses. Driven by our corporate mission - “Develop technology to benefitmankind; refine environmental protection to make the Earth a better place” - we build
Since 2016 the Company has systematically advanced its ESG practices on a comprehensive scale popularizing the philosophy of sustainable spontaneous interactive and mutually beneficial partnerships with stakeholders to
operation by implementing internal initiatives - such as used-battery recycling Environmental Protection & Energy Saving Month plastic-reduction collaboratively advance sustainable development.and low-carbon campaigns and water-conservation education - while concurrently engaging external stakeholders through green low-carbon lifestyle
advocacy including distributing reusable eco-shopping bags delivering specialized marine conservation curriculums across school campuses and
seamlessly integrating fitness walks and marathons with charitable giving desertification control philanthropy and the donation of running shoes and
umbrellas thereby successfully mobilizing broader societal attention toward carbon reduction and sustainable development.The “Avary Six Loves” Cultural Framework
◆ Community Engagement Case Studies
The Company anchors its year-round employee care initiatives on the overarching
theme of the “Six Loves” - namely “Love Yourself Love Your Family Love YourColleagues Love the Company Love Life and Love the Earth” - guiding employees
to radiate goodwill from the inside out and practice social responsibility. Leveraging
communication channels such as The Dingsheng Times monthly publication and the
Voice of Ding Yue campus radio network the Company continuously reinforces
cultural dissemination and emotional cohesion elevating employees’ sense of
belonging and organizational identity.In 2025 the Company successfully rolled out a cumulative total of 4827 sessions of
“Six Loves” activities drawing 869993 person-times of participation. This represents
a substantial year-over-year increase of 320473 person-times with the growth
primarily concentrated across employee benefits and wellness care projects.The Company strategically coordinates its internal “Six Loves” and external “SixAchievements/Assistance” frameworks through designated “Theme Months.” This
▲ Qinhuangdao Campus: Co-hosted a regional basketball ▲ Huai’an Campus: Collaborated with the local approach successfully solidifies internal corporate cohesion while attracting like-
league with the local government featuring dedicated on- government to jointly host the Huai’an Economic and minded stakeholders to co-participate in public welfare continuously sculpting a
site ESG propaganda and exhibition panels. Technological Development Zone (ETDZ) Employee responsible corporate image. By ensuring that philanthropy is internalized in the mind
Badminton Tournament. and externalized in action the Company continues to foster an organizational culture
directed toward goodness and love.
114Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
for Long-term Steady
Report Holding the Chairman Performance Recognitions
Stewardship & Green
Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
◆ Highlights of the “Six Loves” Campaigns
Love Yourself Love Your Family Love Your Colleagues
Encouraging employees to cherish Fostering a heartwarming and harmonious Deepening professional camaraderie
themselves and focus on personal well- “Avary Family” atmosphere to elevate recognizing employee contributions and
being. In 2025 the Company hosted 19 employees’ happiness index and catalyzing inter-departmental
sessions of specialized health and wellness organizational belonging. In 2025 the communication. In 2025 the Companylectures for female employees the “Avary Company hosted 10 sessions of emergency organized 2360 sessions of activities -Cup” Tug-of-War Competition and fitness rescue knowledge classrooms and family including the Honor of Kings E-Sports
walking initiatives drawing 5061 person- open days engaging 805 person-times of Tournament - drawing a massive 497598
times of active participation. participants. person-times of engagement.Love the Company Love Life Love the Earth
Constructing a professional stage for Meeting the multi-dimensional needs of Taking concrete actions to promote a green
employees to realize their self-worth. In employees and steering them toward corporate culture and fulfill our ecological
2025 the Company rolled out 292 sessions healthy lifestyles. In 2025 the Company preservation mission. In 2025 the
of campaigns including corporate fun held 2118 sessions of activities such as Company hosted 28 sessions of green
sports galas and corporate culture organizational rope-skipping competitions campaigns - including online trivia quizzes
knowledge competitions pulling in attracting 148708 person-times of on the “Seven-Green Culture” and
212448 person-times of participation. engagement. environmental study tours - engaging 5373
person-times of participants.
115Integrity Management
About This About Avary Environmental Message from ESG Key Major Honors & Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Report Holding Recognitions
for Long-term Steady Stewardship & Green
the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
The “Avary Six Assistance” Philanthropic Framework
As inspired by the lyrics of the corporate anthem Let the World See: “We strive for perfection and peak glory to let the world see; people-centricity comes first integrity is paramount chasing excellence and leading the way all the journey.”
Guided by this corporate spirit of people-centricity integrity and excellence the Company strategically zeroes in on six major philanthropic pillars: assistance for the elderly (“Zhu Lao”) assistance for the vulnerable (“Zhu Ruo”) assistance
for the disabled (“Zhu Can”) assistance for education (“Zhu Xue”) assistance for civilized transit (“Zhu Xing”) and assistance for environmental cleanliness (“Zhu Jie”). The Company systematically mobilizes volunteer teams to practice
public welfare and materialize our core mission of “benefiting mankind.” In 2025 the “Six Assistance” framework recorded 98 cumulative sessions mobilizing 19317 participants and 1305 unique volunteers to contribute 4388 hours of
public service. Through these steadfast actions the Company safeguards the environment empowers society and co-creates a beautiful future.◆ Highlights of the “Six Assistance” Campaigns
Assistance for the Elderly Assistance for the Assistance for the Vulnerable Disabled
Extending deep care to solitary Providing financial aid to Proactively providing employment
elderly individuals and orphanages and extending opportunities for persons with
delivering heartfelt volunteer solidary care to municipal physical or mental challenges. In
services to senior homes. In sanitation workers. In 2025 the 2025 the Company rolled out 6
2025 the Company hosted 7 Company successfully deployed 7 sessions of specialized support
sessions of elder-care sessions of vulnerable-group care initiatives - including role-model
initiatives - including nursing initiatives - including condolence experience-sharing symposia
home consolation visits and visits to disabled children’s targeted material donations to
community square dance rehabilitation centers and comprehensive service centers for
tournaments - engaging 1780 sanitation worker appreciation persons with disabilities and home
person-times of participants. drives - engaging 1049 person- visits to families of disabled children
times of participants. - engaging 248 person-times of
participants.Assistance for Education Assistance for Civilized
Assistance for
Transit Environmental Cleanliness
Upgrading local teaching Disseminating traffic safety Demonstrating and advocating for
environments and sponsoring insights and guiding the the rigorous maintenance of
underprivileged university public to rigidly abide by environmental sanitation
students. In 2025 the Company transportation codes. In 2025 surrounding our industrial
orchestrated 7 sessions of the Company hosted 4 campuses. In 2025 the Company
educational support initiatives - sessions of transit-assistance executed 67 sessions of
including bringing Intangible campaigns including the environmental cleanliness andCultural Heritage (ICH) flagship “10000 Steps integrity-advocacy initiativescurriculums to schools home Covenant” charity walk including specialized clean-
visitations to underprivileged engaging 6008 person-times governance education courses and
families and specialized ICH of participants. integrity knowledge quizzes
calligraphy study tours - drawing 9989 person-times of
benefiting 243 individuals. active participation.
116Integrity Management
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Stewardship & Green
Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
Public Welfare Activities and Donations Rural Vitalization
The Company actively supports vulnerable groups within communities aiming to improve public well-being and help optimize the business Under the guidance of the national strategy to comprehensively promote rural vitalization and accelerate
environment. Concurrently these initiatives enhance employees’ sense of belonging pride and loyalty while providing them with a the modernization of agriculture and rural areas the Company in conjunction with the Avary Charity
platform for personal growth and development. The Company implements diverse forms of community support and care. Key initiatives Foundation actively responded to the national call to support rural vitalization with practical actions.include providing cash and material donations and conducting comfort and assistance activities for the elderly underprivileged and disabled During the reporting period the Company officially signed a Meizhou pomelo procurement agreement
to improve community life. Furthermore the Company organizes employee volunteer services to offer daily care hardship relief and with Songkou Town Meizhou City - the targeted assistance region of the Shenzhen Taiwan Affairs
educational support to senior citizens underprivileged families and schools. We also host public campaigns on environmental protection Office. A total of 17600 boxes of Meizhou Songkou pomelos (amounting to over 70000 pieces) were
traffic safety and health literacy to raise awareness among residents. purchased. The Qinhuangdao Campus collaborated with the Qinhuangdao Municipal Committee of the
The Company continuously invests funds materials equipment and technical management experience to promote community co- Communist Youth League to purchase 33700 boxes of Qinglong apples precisely helping local fruit
construction co-governance and shared benefits. Through concrete actions the Company fulfills its social responsibilities enhances its farmers achieve stable income growth and further stimulating the intrinsic development drive of the rural
brand image and drives long-term stable corporate development. area. In addition the Company cooperated with the Ankang Federation of Returned Overseas Chinese
and local water plants to purchase over 210000 bottles of Ziyang selenium-rich water bolstering the
Public Welfare Activities and Funding by the Company and Avary Charity Foundation in 2025 local economy. In the future the Company and the Avary Charity Foundation will continue to empower
Category Public Welfare Project Content Amount (RMB) rural vitalization through industrial support infrastructure improvement and various other dimensions.“Zhen Hui Nong” Project Purchased over 210000 bottles of Ziyang selenium-rich water 17600 boxes of Meizhou pomelos and 33700 boxes of Qinglong apples. 2500000
◆ Case Studies of Rural Vitalization Activities
Rural
Vitalization Poverty Alleviation Donation to Donated poverty alleviation funds to Yong’an Town Du’an County Guangxi
Yong’an Town Du’an County to improve local road infrastructure benefiting an estimated 114 households 100000
Guangxi (621 people).“Deep Concerns for Mountainous Areas* Giving Books to Support Education” Donated books to three schools - Songkou Town Central Primary School
Charity Donation to Rural Schools in Songnan Central Primary School and Songnan Middle School in Meizhou City 105000
Meizhou - to improve library facilities benefiting over 2000 teachers and students.“Navigating Youth * Creating the Actively built a communication bridge for youth from both sides of the TaiwanFuture” Taiwan University Student Strait to promote exchange and integration; a total of 17 Taiwanese university 246553
Talent Exchange Program students participated.“Lighting up Starlight * Building ▲ “Zhen Hui Nong” Project: ▲ Coordinated by the Labor Union applesDreams for the Future” Huai’an Facilitated exchanges between PCB industry experts and talents from both sides Educational 55615 Procurement of Qinglong apples were delivered to Company employees
Educational Philanthropy Project of the Taiwan Strait to jointly promote development.Philanthropy““Lighting up Starlight * Building Funded the Huai’an Economic and Technological Development Zone toDreams for the Future” Huai’an improve local basic educational infrastructure (Continuous project for 5 years 200000
Educational Philanthropy Project 2024–2028).Annual Educational Philanthropy for Conducted continuous home visits and provided educational financial aid to
Underprivileged University Students underprivileged students in Ziyang Shaanxi and Daliang Mountain Sichuan. 838741
Home Visits for Underprivileged Presented corporate culture souvenirs (drawstring backpacks 3-fold umbrellas
University Students and notebook/pen gift sets) to underprivileged students during home visits to 10800showcase corporate culture.Community
Philanthropy “Six Assistances” Initiative Conducted “Six Assistances” charitable activities across society. 223474 ▲“Zhen Hui Nong” Project: ▲ Coordinated by the Labor Union pomelos
Procurement of Meizhou pomelos were delivered to Company employees
Total 4280184
117Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
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Growth Production Workplace Founding Mission
Participation in Organizations / Associations
The Company actively implements energy conservation and emission reduction actions strictly aligning with the Paris Agreement targets to limit global warming to 1.5°C and achieve net-zero
emissions by 2050. To drive low-carbon operations throughout all processes we foster a top-down climate governance and energy-saving ecosystem internally by encouraging full employee
participation in carbon reduction efforts. Externally we actively engage with climate-related industry organizations deepen industry exchanges and closely track global trends and best practices in net-
zero emissions to advance our sustainable development goals.Meanwhile through international and local industry associations non-profit organizations and other diverse platforms the Company continues to deepen its practices and advocacy in fields such as
sustainable development technological innovation environmental protection human rights protection and responsible supply chains driving collective progress across the industry. In 2025 the
Company’s external investment in relevant organizations and associations totaled approximately RMB 600000.Company Participation in Major Organizations and Associations
Name of Association / Non-Profit Organization Position Held 2025 Total Investment (Unit: RMB)
China Printed Circuit Association (CPCA) Member
Guangdong Printed Circuit Association (GPCA) Standing Director
Shenzhen Printed Circuit Association (SPCA) Standing Director
China Association for Public Companies Director
Shenzhen Association for Public Companies Vice Chairman of the Board of Supervisors
Shenzhen Corporate Governance Research Association Member
Responsible Business Alliance (RBA) Member
Association Connecting Electronics Industries (IPC) Member 600000
Shenzhen Bao’an Environmental Protection Industry Association Director
Guangdong Enterprise Federation Member
Task Force on Climate-Related Financial Disclosures (TCFD) Supporter
Institute of Public & Environmental Affairs (IPE) Supporter
China Environment News Supporter
Alliance for Water Stewardship (AWS) Supporter
CDP (formerly Carbon Disclosure Project) Member
118Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
for Long-term Steady
Report Holding the Chairman Performance Recognitions
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Appendix
Boundary of Sustainable Information Collection
Sustainability-related information disclosed in this report covers Avary Holding and all its subsidiaries with all indicators calculated within a scope accounting for 99.88% of consolidated revenue.●Fully Disclosed ?Partially Disclosed --Not Disclosed
Chapter Corresponding Topic Shenzhen Industrial Huai’an Industrial Qinhuangdao Taiwan Industrial India Industrial Thailand Industrial Park Park Industrial Park Park Park Park
Sustainability Management Sustainability Impact Assessment ● ● ● ● ● ●
Information and Communication Security ● ● ● ● ● ●
Integrity Management for Long-term Operational Risk Management ● ● ● ● ● ●
Steady Growth Compliance Management ● ● ● ● ● ●
Integrity Operation ● ● ● ● ● ●
Green Product and Innovation Management ● ● ● ● ● ●
Sustainable Supply Chain Management ● ● ● ● ● ●
Innovation Empowers Quality
Assures Product Quality ● ● ● ● ● ●
Customer Privacy and Relationship Management ● ● ● ● ● ●
Chemical Safety Management ● ● ● ● ● ●
Climate and Energy ● ● ● ● ● ●
Water Resource Management ● ● ● ● ● ●
Environmental Stewardship & Green
Production Air Pollution Management ● ● ● ● ● ●
Resource & Circularity ● ● ● ● ● ●
Biodiversity ● ● ● ● ● ●
Occupational Health & Safety (OHS) ● ● ● ● ● ●
Talent Development ● ● ● ● ● ●
Empowering Employees & Nurturing Employee Salary and Benefits ● ● ● ● ● ●
a Happy Workplace Talent Attraction and Retention ● ● ● ● ● ●
Diversity Equity and Inclusion (DEI) ● ● ● ● ● ●
Human Rights Protection ● ● ● ● ● ●
Giving Back to Society Staying True
to Our Founding Mission Social Engagement ● ● ● ● ● ●
Note: All indicators in this report cover entities accounting for 99.88% of consolidated revenue. The figure does not reach 100% because Huayang Technology an acquired subsidiary was consolidated into financial statements in December
2025. Its sustainability data and information will be incorporated into the 2026 Sustainability Report.
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Key Performance Indicators – Environment
1. Annual Environmental Investment & Operating Expenses (Unit: RMB 100 million)
Item Unit 2021 2022 2023 2024 2025
Environmental Investment RMB 100 million 1.24 0.79 4.58 0.85 2.57
Environmental Operating Expenses RMB 100 million 2.75 2.74 2.03 2.59 3.14
2. Energy Consumption in the Past Five Years
Category Energy Unit 2021 2022 2023 2024 2025
Purchased Electricity MWh 1233729 1043374 402115 372172 290059
Gasoline L 100538 101498 116482 157493 144885
Diesel Oil L 114463 69242 53940 366815 417539
Non-renewable Energy
Natural Gas m3 12480525 10531453 13305970 9912053 10476844
Purchased Steam Metric Ton 141398 152052 186706 189224 203123
Purchased Heat GJ 164851 422703 116599 123627 134424
Solar Power Generation MWh 2370 3952 4076 5903 6237
Renewable Energy
Purchased Renewable Electricity MWh / 163419 759963 978437 1282269
Total - GJ 5499539 5618438 5357151 5925884 6797263
3. Energy Intensity over the Past Five Years
Category Energy Unit 2021 2022 2023 2024 2025
Purchased Electricity 133.30 103.70 45.00 38.13 26.67
Electricity Solar-generated Electricity 0.30 0.40 0.50 0.61 0.57
Purchased Renewable Electricity / 16 85 100 117.92
Subtotal Electricity
Intensity 133.6 120.1 130.5 138.98 145.16
Gasoline 0.10 0.10 0.1 0.14 0.12
Diesel Oil Gigajoules (GJ) per RMB Million 0.12 0.08 0.09 0.37 0.38
Non-electric Energy Natural Gas 15 11 16 11 10
Purchased Steam 12 12 16 15 14
Purchased Heat 5.00 12.00 4.00 3.50 3.43
Subtotal Non-electric Energy IntensitySubtotal Non-electric Energy
Intensity 32.20 35.20 36.20 29.66 27.93
Total Energy Intensity 166 155 167 168.64 174
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4. Greenhouse Gas Emissions
Indicator Unit 2021 2022 2023 2024 2025
Scope 1 tCO2e 34553 65921 61387 80551 80556
Scope 2 tCO2e 914040 871354 326614 254367 211143
Scope 3 tCO2e 21441 24057 19863 19919 30816
Total Scope 1 & 2 Emissions tCO2e 948593 937275 388001 334918 291699
Total Greenhouse Gas Emissions tCO2e 970034 961332 407864 354837 322515
Scope 1 & 2 Emission Intensity tCO2e per RMB 10000 0.28 0.26 0.12 0.10 0.07
Target Percentage Reduction of Scope 1 & 2
Carbon Intensity (Base Year: 2013) % 30 30 33 40 40
Actual Percentage Reduction of Scope 1 & 2
Carbon Intensity (Base Year: 2013) % 40 45 74 80 84
5. Water Resource Consumption Status
Indicator Unit 2021 2022 2023 2024 2025
Municipal Water Supply Thousand Metric 7980 7110 5530 8105 10172
Surface Water Thousand Metric 4360 4510 3680 4265 4531
Total Water Intake Thousand Metric 12340 11620 9210 12370 14704
Wastewater Discharge Volume Thousand Metric 8690 8550 6760 8854 10611
Water Consumption* Thousand Metric 3650 3070 2450 3516 4093
Water Intensity Tons per RMB 10000 Revenue 3.70 3.20 2.90 3.50 3.76
Note： 1. Greenhouse gas (GHG) verification adopts the operational control approach. GHG verification certificates of all legal entities are available on the corporate website under the path: Sustainability - Eco-friendly Environment -
Energy Conservation & Carbon Reduction via link: https://www.avaryholding.com/development.aspxtype=40&tag=3.
2. The 2025 GHG inventory boundary expands to include additional legal entities / sites: India and Kaohsiung.
3. Emission factors are calculated in accordance with the latest standards issued by local governments. Grid emission factors: South China 0.404 kg CO2/kWh North China 0.636 kg CO2/kWh East China 0.550 kg CO2/kWh Taiwan
0.474 kg CO2/kWh India 0.727 kg CO2/kWh.
4. Seven types of greenhouse gases are covered in calculation: carbon dioxide methane nitrous oxide hydrofluorocarbons perfluorocarbons sulfur hexafluoride and nitrogen trifluoride. Global Warming Potential (GWP) values
are sourced from the IPCC Sixth Assessment Report.
5. 2013 is selected as the base year for environmental data comparison due to relatively complete infrastructure construction. 2013 base year data: Scope 1 emissions 35282 tCO2e; Scope 2 emissions 593025 tCO2e; Scope 3
emissions 4486 tCO2e; Scope 1 & 2 emission intensity 0.47 tCO2e per RMB 10000 revenue.
6. Emission Intensity = Total Scope 1 & 2 GHG Emissions ÷ Consolidated Revenue of the Company.
7. The 2025 carbon intensity reduction target is set at 40% benchmarked against the 2013 carbon intensity of 0.47 tCO2e per RMB 10000 revenue.
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6. Corporate Water Reuse Performance in the Past Five Years
Indicator Unit 2021 2022 2023 2024 2025
Recycled & Reused Water Volume 10000 Metric Tons 1001 960 805 966 1077
Wastewater Reuse Rate % 50.50 50.50 54.40 52.20 50.40
Plant-wide Water Reuse Rate % 42.20 41.60 46.60 43.90 42.30
7. Emissions of Major Air Pollutants
Indicator Unit 2021 2022 2023 2024 2025
Nitrogen Oxides (NOx) Ton 17 8.15 10.4 13.43 17.39
Sulfur Dioxide (SO2) Ton 0.16 0.12 0.06 0.33 0.13
Volatile Organic Compounds (VOCs) Ton 5.73 9.08 37.24 15.99 29.12
Suspended Particulate Matter (SPM) Ton 12.80 13.58 16.48 16.95 14.38
8. Annual Statistics of Collected & Disposed Waste
Indicator Unit 2021 2022 2023 2024 2025
Total Waste Disposal Volume Ton 81791 73843 59656 81622 93283
Classified by Waste Type
General Waste Ton 29214 28778 22381 35907 39559
Hazardous Waste Ton 52577 45065 37275 45715 53724
Classified by Recycling Attribute
Resource Recovery Rate % 92.00 93.00 95.00 92.70 94.00
Hazardous Waste Intensity
Hazardous Waste Intensity kg per RMB 10000 Revenue 15.80 12.40 11.6 13.00 13.70
Note： 1. All waste is collected and disposed of by qualified licensed waste treatment contractors.
2. Hazardous Waste Intensity = Total Hazardous Waste Volume ÷ Consolidated Revenue of the Company.
3. Resource Recovery Rate = Total Collected Recyclable Waste ÷ Total Waste Disposal Volume. The rate is equivalent to waste recycling rate and excludes waste incinerated for energy recovery.
4. The Qinhuangdao Huai’an and Shenzhen sites reuse various liquid waste on-site for waste reduction and resource recovery to cut the generation of acidic waste liquid. In line with UL2799 standards the 2024 resource recovery
rate incorporates 57457 metric tons of on-site reused and reduced liquid waste from the three sites to fully reflect internal waste management performance. 2024 Resource Recovery Rate = (Total On-site Recycled Waste + Total
Collected Recyclable Waste) ÷ (Total On-site Recycled Waste + Total Waste Disposal Volume).
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Key Performance Indicators – Social
1. Social Welfare & Philanthropy
Item Unit 2021 2022 2023 2024 2025
Investment in Rural Revitalization RMB - - 100000 900000 2600000
Number of Public Welfare Activities (Six Assistance) Event 94 227 90 68 98
Participants in Public Welfare Activities (Six Assistance) Person-time 27583 142409 14007 18935 19317
Corporate Volunteer Hours Hour 1903 2410 1028 1264 4388
Public Welfare Donations (Cash & In-kind) RMB 3148262 5237458 3393692 4912237 4280184
Notes: The amount of public welfare activities and donations includes investments in rural revitalization and donations from Avary Public Welfare Foundation.
2. R&D and Patents
Indicator Unit 2021 2022 2023 2024 2025
R&D Expenditure RMB 100 Million 15.72 16.72 19.57 23.24 24.59
R&D Expense Ratio to Revenue % 4.72 4.62 6.1 6.61 6.28
R&D Personnel Person 5170 5414 6022 7035 7881
Share of R&D Personnel in Total Employees % 13.13 15.32 14.41 16.31 16.57
Cumulative Patent Applications Item 1726 2032 2361 2642 2801
Cumulative Granted Patents Item 896 1099 1266 1453 1647
3. Data Security and Customer Privacy Protection
Indicator Unit 2021 2022 2023 2024 2025
Total Cybersecurity Incidents Case 0 0 0 0 0
Incidents Involving Customer Personal Data Breach Case 0 0 0 0 0
Total Affected Customers - 0 0 0 0 0
Total Fines Related to Cybersecurity Violations RMB 10000 0 0 0 0 0
Data Security Incidents Case 0 0 0 0 0
Financial Losses from Data Security Incidents RMB 10000 0 0 0 0 0
Financial Losses from Customer Privacy Breaches RMB 10000 0 0 0 0 0
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4. Equal Treatment to Small and Medium-sized Enterprises
Indicator Unit 2021 2022 2023 2024 2025
Balance of Accounts Payable (Including Notes Payable) at End of Reporting
Period RMB 10000 468597.52 398388.38 484831.11 507944.85 566160.23
Proportion of Accounts Payable (Including Notes Payable) to Total Assets at End
of Reporting Period % 13.18 10.27 11.47 11.40 11.61
Amount of Overdue Payments at End of Reporting Period RMB 10000 0 0 0 0 0
Amount of Overdue Payments Owed to Small and Medium-sized Enterprises
(SMEs) at End of Reporting Period RMB 10000 0 0 0 0 0
Note: The Company had no overdue payments during the reporting period.
5. Workplace
Item Unit 2021 2022 2023 2024 2025
Percentage of Female Junior Supervisors % 13.50 13.10 13.40 15.30 15.50
Percentage of Female Mid & Junior Supervisors % 16.60 13.60 13.90 15.50 17.80
Percentage of Female Senior Management % 22.20 22.20 27.30 23.10 23.10
Percentage of Female Supervisors in Production & Revenue-related Departments
(Note) % 13.20 12.60 12.90 13.80 14.20
Female Percentage of IT Staff % 23.00 24.60 22.20 19.40 17.50
Female Percentage of STEM-related Departments % 33.10 35.40 33.00 33.70 33.60
Total Number of Employees Person 39387 35344 41786 43130 47573
Number of Female Supervisors Person 566 472 485 662 715
Number of Male Supervisors Person 3365 2997 2992 3595 3760
Percentage of Female Supervisors % 14.00 13.60 13.90 15.60 16.00
Percentage of Male Supervisors % 86.00 86.40 86.10 84.40 84.00
Number of Female Employees Person 13318 12555 13443 14095 16186
Number of Male Employees Person 26069 22789 24866 25314 31387
Percentage of Female Employees % 34.00 36.00 35.00 36.00 34.00
Percentage of Male Employees % 66.00 64.00 65.00 64.00 66.00
Expense on Employees’ Occupational Injury Insurance RMB 10000 1047.43 1528.06 1460.79 1807.05 2 0 3 1 . 2 4
Expense on Workplace Safety Liability Insurance for Employees RMB 10000 7.48 6.79 6.26 5.53 7.42
Coverage Rate of Occupational Injury Insurance % 100 100 100 100 100
Coverage Rate of Workplace Safety Liability Insurance % 100 100 100 100 100
Total Employee Training Person-times Person-time - - 4301943 7852249 9106073
Total Expense on Employee Training RMB 10000 - - 176.68 645.99 344.73
Employee Training Coverage Rate % - - 100 100 100
Note： 1. 1.Junior supervisors refer to section and group-level supervisors; senior management denotes division-level supervisors and above.
2. 2.Production and revenue-related departments exclude Human Resources General Business Office Headquarters Information Technology Intelligent Manufacturing Legal Affairs Supply Chain Finance and other departments.
3. 3.STEM-related departments refer to units relevant to science technology engineering and mathematics disciplines.
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Key Performance Indicators – Governance
1. Operating Performance
Item Unit 2021 2022 2023 2024 2025
Total Operating Revenue RMB Million 33171.50 36040.18 31828.08 34865.85 39147.01
Operating Costs RMB Million 26523.36 27521.27 25223.94 27843.63 30730.41
Operating Profit RMB Million 3648.09 4918.61 3041.43 3120.50 4292.77
Total Profit RMB Million 3816.89 5619.66 3571.31 4044.46 4283.77
Net Profit RMB Million 3316.01 5011.54 3286.79 3619.05 3713.30
Basic Earnings Per Share RMB per share 1.43 2.16 1.42 1.56 1.61
Total Cash Dividends RMB Million 1160.58 1624.31 1154.55 2318.05 (Note)
Dividend Payout Ratio % 35.00 32.00 35.00 64.00 (Note)
Note: Details of dividends for 2025 are available in the Shareholders’ Rights Protection section.
2. Anti-commercial Bribery and Anti-corruption
Indicator Unit 2021 2022 2023 2024 2025
Total number of directors covered by anti-commercial bribery and anti-corruption training Person - - 4 4 4
Percentage of directors covered by anti-commercial bribery and anti-corruption training % - - 57 57 57
Total number of management personnel covered by anti-commercial bribery and anti-corruption training Person - - 13 13 13
Percentage of management personnel covered by anti-commercial bribery and anti-corruption training % - - 100 100 100
Total number of employees covered by anti-commercial bribery and anti-corruption training Person 39387 35344 41786 43130 47573
Percentage of employees covered by anti-commercial bribery and anti-corruption training % 100 100 100 100 100
Amount involved in lawsuits or major administrative penalties arising from the Company's unfair
competition acts during the reporting period RMB Million 0 0 0 0 0
3. Supplier Management and Product Quality Improvement
Indicator Unit 2021 2022 2023 2024 2025
Annual Supplier Audit Completion Rate % 100 100 100 100 100
Supplier Performance Review Completion Rate % 100 100 100 100 100
Green Supply Chain Program Rollout Rate(Note) % 100 100 100 100 100
Engineering Innovation & Improvement Projects Item 16072 73082 57478 146470 156767
Average Customer Satisfaction Score Point 87.36 93.18 93.01 92.3 93.4
Note: The 100% completion rate for the Green Supply Chain Program applies to manufacturers located in Mainland China. 125About This About Avary Message from ESG Key Major Honors &
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List of Management System Certification Verification
Kaohsiung Shenzhen Huai’an Qinhuangdao Prachinburi Prachinburi
Certification & Verification by Plant (Region / Legal Entity)
Avary Holding Avary Holding Hong Heng Sheng Qing Ding Hong Qi Sheng Avary Holding Peng Sheng
Quality Management System (ISO 9001:2015) √ √ √ √ √ √ √
Environmental Management System (ISO 14001:2015) √ √ √ √ √ √ √
Greenhouse Gas Inventory (ISO 14064-1:2018) √ √ √ √ √ √ -
Energy Management System (ISO 50001:2018) - √ √ √ √ - -
Hazardous Substance Process Management System (IECQ QC 080000:2017) √ √ √ √ √ - √
Automotive Quality Management System（IATF 16949:2016） - √ √ √ √ - -
Telecommunications Quality Management System (TL 9000-H R6.3 / R5.7) - - - - √ - -
Information Security Management System (ISO / IEC 27001:2022) √ √ √ √ √ - -
Occupational Health and Safety Management System (ISO 45001:2018) √ √ √ √ √ √ √
Business Continuity Management System (ISO 22301:2019) - √ √ √ √ - -
Product Carbon Footprint Inventory (ISO 14067:2018) - √ √ √ √ - -
RBA Validated Audit Process (VAP) - √ √ √ √ - -
Alliance for Water Stewardship (AWS) Standard - Platinum Platinum Platinum Platinum Certification Certification Certification Certification - -
UL 2799 Zero Waste to Landfill - Platinum Platinum Platinum Platinum Certification Certification Certification Certification - -
Risk Management System (ISO 31000:2018) √ √ √ √ √ √ √
Compliance Management System (ISO 37301:2021) - √ - - - - -
Medical Devices Quality Management System (ISO 13485:2016) √ - - - - - -
Note：1.The Company’s Kaohsiung industry part launched trial production in the second half of 2024 and has obtained certifications including Quality Management System (ISO 9001:2015) Environmental Management System (ISO
14001:2015) Greenhouse Gas Inventory (ISO 14064-1:2018) and Occupational Health and Safety Management System (ISO 45001:2018). It plans to continue advancing other certification and verification activities in the next three years.
2.The Thailand site plans to carry out verification and certification work for Automotive Quality Management System (IATF 16949:2016) Telecommunications Quality Management System (TL 9000-H R6.3 / R5.7) Business Continuity
Management System (ISO 22301:2019) etc. during 2026–2027.
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Benchmark Index for Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability
Report (For Trial Implementation)
Dimension Topic Corresponding Clauses Corresponding Chapters
Climate change tackling Article 21-28 Global Warming Mitigation
Pollutant discharge Article 30 Water Resource Management
Waste disposal Article 31 Cleaner Production
Ecosystem and biodiversity protection Article 32 Biodiversity Management
Environment
Environmental compliance management Article 33 Environmental Sustainability
Energy usage Article 35 Energy Management
Usage of water resources Article 36 Water Resource Management
Circular economy Article 37 Appendix (Key Performance Indicators – Environment)
Rural revitalization Article 39 Rural Revitalization
Contributions to the society Article 40 Public Welfare Activities and Donations
Innovation-driven Article 42 Innovation and R&D
Ethics of science and technology Article 43 Innovation and R&D
Social Supply chain security Article 45 Responsible Supply Chain
Equal treatment to small and medium-sized
enterprises Article 46 Appendix (Key Performance Indicators – Social)
Safety and quality of products and services Article 47 Product Stewardship
Data security and customer privacy
protection Article 48 Privacy & Personal Information Protection / Information & Communication Security
Employees Article 50 Diversity & Equality / Talent Attraction & Retention / Talent Development & Empowerment / Employee Health & Safety / Care & Assistance
Due diligence Article 52 Integrity Operation / Operational Risk Management
Governance for Communications with stakeholders Article 53 Stakeholder Engagement
Sustainable Development Anti-commercial bribery and anti-
corruption Article 55 Integrity Operation / Operational Risk Management
Anti- unfair competition Article 56 Integrity Operation / Operational Risk Management
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GRI Content Index
Avary Holding has reported information referenced in this GRI Content Index in accordance with the GRI Standard & Disclosure Item Corresponding Chapter / Supplementary / Omission Instructions for Use GRI Standards for the reporting period from January 1 2025 to December 31 2025 Notes
GRI 1 Used GRI 1: Foundation 2021 Rules on Integrity Operation
Applicable GRI Sector
Standards No sector standards adopted
Information Security Policy Organization and
Objectives
2-23 Policy commitments
Corresponding Chapter / Supplementary / Omission 2-24 Embedding policy commitments Conflict Minerals ManagementGRI Standard & Disclosure Item Notes Environmental Protection Policies
GRI 2: General Disclosures 2021 Climate-related Policies and Targets
2-1 Organizational details About Avary Holding Diversity & Equality
2-2 Entities included in the organization’s
sustainability reporting Boundary of Sustainable Information Collection Material Topic Management Targets & Performance
2-3 Reporting period frequency and contact About This Report 2-25 Processes to remediate negative impacts
ESG Key Performance Stakeholder Engagement
2-4 Restatements of information
Appendix: Key Performance Data
2-26 Mechanisms for seeking advice and raising concerns Reporting Channels Incentive and Disciplinary 2-5 External assurance - Mechanisms
2-6 Activities value chain and other business relationships About Avary Holding
2-27 Compliance with laws and regulations Compliant Operation
Employee Structure
2-7 Employees
Key Performance Indicators – Social 2-28 Membership associations Participation in Organizations / Associations
2-8 Workers who are not employees Employee Structure
2-9 Governance structure and composition Board Operations 2-29 Approach to stakeholder engagement Stakeholder Engagement
2-10 Nomination and selection of the highest governance body Board Operations
2-30 Collective bargaining agreements Labor Union Operation and Support
2-12 Role of the highest governance body in overseeing impact GRI 3: Material Topics 2021
management Board Operations
3-1 Process to determine material topics Material Topics Analysis
2-13 Delegation of responsibility for managing impacts Sustainability Management Structure
3-2 List of material topics Material Topics and Boundaries
2-14 Role of the highest governance body in sustainability reporting Sustainability Management Structure GRI 201: Economic Performance 2016
2-15 Conflicts of interest Conflict of Interest Prevention
2-16 Communication of critical concerns Board Operations 201-1 Direct economic value generated and distributed ESG Key Performance
2-17 Collective knowledge of the highest governance body Board Operations
201-2 Financial implications and other risks and Climate Change Mitigation & Adaptation
2-18 Evaluation of the performance of the highest governance body Board Operations opportunities due to climate change Management
2-19 Remuneration policies Remuneration
2-20 Process to determine remuneration Remuneration 201-3 Defined benefit plan obligations and other retirement
plans Employee Remuneration and Benefits
2-21 Annual total compensation ratio Note: Restricted by confidentiality requirements
2-22 Statement on sustainable development strategy Message from the Chairman 201-4 Financial assistance received from government Corporate Governance
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GRI Content Index (Continued)
GRI Standard & Disclosure Item Corresponding Chapter / Supplementary / Omission Notes GRI Standard & Disclosure Item
Corresponding Chapter / Supplementary / Omission
Notes
GRI 202: Market Presence 2016 GRI 302: Energy 2016
202-1 Ratios of standard entry level wage by gender compared to
local minimum wage Remuneration Material Topic Management Targets &
GRI 203: Indirect Economic Impacts 2016 3-3Management of material topics
Performance – Environment Dimension
Public Welfare Activities and Donations Global Warming Mitigation
203-1 Infrastructure investments and services supported
Rural Revitalization 302-1 Energy consumption within the organization Global Warming Mitigation
Public Welfare Activities and Donations
203-2 Significant indirect economic impacts 302-2 Energy consumption outside of the organization Global Warming Mitigation
Rural Revitalization 302-3 Energy intensity Global Warming Mitigation
GRI 205: Anti-corruption 2016 302-4 Reduction of energy consumption Global Warming Mitigation
Integrity Operation 302-5 Reductions in energy requirements of products and Global Warming Mitigation
3-3Management of material topics Material Topic Management Targets & services
Performance – Governance Dimension GRI 303: Water and Effluents 2018
205-1 Operations assessed for risks Material Topic Management Targets &
related to corruption Integrity Operation 3-3Management of material topics Performance – Environment Dimension
205-2 Communication and training about anti-corruption policies Integrity Operation Water Resource Managementand procedures
303-1 Interactions with water as a shared resource Water Resource Management
205-3 Confirmed incidents of corruption and actions taken Integrity Operation
GRI 206: Anti-competitive Behavior 2016 303-2 Management of water discharge-related impacts Water Resource Management
Material Topic Management Targets & 303-3 Water withdrawal Water Resource Management
Performance – Governance Dimension
3-3Management of material topics 303-4 Water discharge Water Resource Management
303-5 Water consumption Water Resource Management
Integrity Operation / Compliant Operation GRI 305: Emissions 2016
206-1 Legal actions for anti-competitive Material Topic Management Targets &
behavior anti-trust and monopoly practices Integrity Operation / Compliant Operation Performance – Environment Dimension
GRI 207: Tax 2019 3-3Management of material topics
207-1 Approach to tax Tax Governance Global Warming Mitigation
Cleaner Production
207-2 Tax governance control and risk management Tax Governance 305-1 Direct (Scope 1) GHG emissions Global Warming Mitigation
207-3 Stakeholder engagement and management of tax-related Tax Governance 305-2 Energy indirect (Scope 2) GHG emissions Global Warming Mitigationconcerns
The Company complies with local 305-3 Other indirect (Scope 3) GHG emissions Global Warming Mitigation
207-4 Country-by-country reporting requirements of each operating location and
submits tax information to local tax authorities 305-4 GHG emissions intensity Global Warming Mitigation
GRI 301: Materials 2016 305-5 Reduction of GHG emissions Global Warming Mitigation
3-3Management of material topics Responsible Supply Chain
301-1 Materials used by weight or volume Responsible Supply Chain 305-6 Emissions of ozone-depleting substances (ODS) Cleaner Production
301-2 Recycled input materials used Responsible Supply Chain
301-3 Reclaimed products and their packaging materials Responsible Supply Chain 305-7 Nitrogen oxides (NOX) sulfur oxides (SOX) and other significant air emissions Cleaner Production
129About This About Avary Message from ESG Key Major Honors &
Integrity Management Environmental
Sustainability Innovation Empowers Empowering Employees Giving Back to Society
for Long-term Steady
Report Holding Stewardship & Green the Chairman Performance Recognitions Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
GRI Content Index (Continued)
GRI Standard & Disclosure Item Corresponding Chapter / Supplementary / Omission GRI Standard & Disclosure Item Corresponding Chapter / Supplementary / Omission Notes Notes
GRI 306: Waste 2020
403-5 Worker training on occupational health and safety Employee Health & Safety
Material Topic Management Targets & Performance
– Environment Dimension 403-6 Promotion of worker health Employee Health & Safety
3-3Management of material topics
Waste Management 403-7 Prevention and mitigation of occupational health and
Cleaner Production safety impacts directly linked by business relationships Employee Health & Safety
306-1 Waste generation and significant waste-related impacts Waste Management 403-8 Workers covered by an occupational health and safety
management system Employee Health & Safety
306-2 Management of significant waste-related impacts Waste Management
403-9 Work-related injuries Employee Health & Safety
306-3 Waste generated Waste Management 403-10 Work-related ill health Employee Health & Safety
306-4 Waste diverted from disposal Waste Management GRI 404: Training and Education 2016
306-5 Waste directed to disposal Waste Management Material Topic Management Targets & Performance
GRI 308: Supplier Environmental Assessment 2016 – Social Dimension
3-3Management of material topics Responsible Supply Chain 3-3Management of material topics
308-1 New suppliers that were screened Talent Development & Empowerment
using environmental criteria Responsible Supply Chain
308-2 Negative environmental impacts in the supply chain and Responsible Supply Chain 404-1 Average hours of training per employee per year Talent Development & Empowermentactions taken
GRI 401: Employment 2016 404-2 Programs for upgrading employee skills and transition
Material Topic Management Targets & Performance assistance programs Talent Development & Empowerment
3-3Management of material topics – Social Dimension
Talent Attraction & Retention 404-3 Percentage of employees receiving regular performance
and career development reviews Talent Development & Empowerment
401-1 New employee hires and employee turnover Diversified Employee Benefits
GRI 405: Diversity and Equal Opportunity 2016
401-2 Benefits provided to full-time employees that are not Diversified Employee Benefits Material Topic Management Targets & Performance provided to temporary or part-time employees 3-3Management of material topics – Social Dimension
401-3 Parental leave Diversified Employee Benefits Diversity & Equality
GRI 402: Labor/Management Relations 2016 405-1 Diversity of governance bodies and employees Diversity & Equality
Material Topic Management Targets & Performance 405-2 Ratio of basic salary and remuneration of women to
3-3Management of material topics – Social Dimension men Talent Attraction & Retention
Talent Attraction GRI 406: Non-discrimination 2016
GRI 403: Occupational Health and Safety 2018 Material Topic Management Targets & Performance
Material Topic Management Targets & Performance 3-3Management of material topics – Social Dimension
3-3Management of material topics – Social Dimension Diversity & Equality
Employee Health & Safety
406-1 Incidents of discrimination and corrective actions taken Diversity & Equality
403-1 Occupational health and safety management system Employee Health & Safety
GRI 407: Freedom of Association and Collective Bargaining 2016
403-2 Hazard identification risk assessment and incident Employee Health & Safety Material Topic Management Targets & Performance investigation 3-3Management of material topics – Social Dimension
403-3 Occupational health services Employee Health & Safety Labor Union Operation and Support
403-4 Worker participation consultation and communication Employee Health & Safety 407-1 Operations and suppliers in which the right to freedom on occupational health and safety of association and collective bargaining may be at risk Labor Union Operation and Support
130Major Honors & Integrity Management About This About Avary Environmental Message from ESG Key Sustainability Innovation Empowers Empowering Employees Giving Back to Society
Recognitions for Long-term Steady Report Holding Stewardship & Green the Chairman Performance Management Quality Assures & Nurturing a Happy Staying True to Our Appendix
Growth Production Workplace Founding Mission
GRI Content Index (Continued) Key Operating Sites
GRI Standard & Disclosure Item Corresponding Chapter / Supplementary / Omission
Mainland China Subsidiaries
Notes
GRI 408: Child Labor 2016 Address: No.8 Avary Road Huai’an Economic &
Diversity & Equality Kuishing Technology (Shenzhen) Co.Technological Development Zone Huai’an City Jiangsu
408-1 Operations and suppliers at significant risk for
incidents of child labor Ltd.Province P.R.China
Responsible Supply Chain
GRI 409: Forced or Compulsory Labor 2016 Tel: (86)517-8351-6888
Diversity & Equality
409-1 Operations and suppliers at significant risk for Address: No.18 Tengfei Road Economic & Technological
incidents of forced or compulsory labor Responsible Supply Chain Hong Heng Sheng Electronical Development Zone Qinhuangdao City Hebei Province
Technology (Huaian) Co. Ltd. P.R.China
GRI 413: Local Communities 2016
Tel: (86)335-5308-888
413-1 Operations with local community engagement impact
assessments and development programs Community Communication & Inclusion Address: No.8 Avary Road Huai’an Economic &
Qing Ding Precision Electronics Technological Development Zone Huai’an City Jiangsu
(Huai’an) Co. Ltd. Province P.R.China
413-2 Operations with significant actual and potential
negative impacts on local communities Community Communication & Inclusion Tel: (86)517-8351-6888
GRI 414: Supplier Social Assessment 2016 Address: No.18 Tengfei Road Economic & Technological
414-1 New suppliers that were screened Responsible Supply Chain Management Hong Qi Sheng Precision Electronics Development Zone Qinhuangdao City Hebei Province using social criteria (Qinhuangdao) Co. Ltd P.R.China
414-2 Negative social impacts in the supply chain and actions
taken Responsible Supply Chain Management Tel: (86)335-5308-888
GRI 416: Customer Health and Safety 2016 Taiwan Subsidiary
Address: 8F No.8 Baoqiang Road Xindian District New
416-1 Assessment of the health and safety impacts of product
and service categories Product Stewardship Avary Technology Corporation Taipei City Taiwan China
Tel: (886)2-2912-6999
GRI 417: Marketing and Labeling 2016
India Subsidiary
417-1 Requirements for product and service information and
labeling Product Stewardship Address: No. 28 Padur Road Kuthambakkam Village
GRI 418: Customer Privacy 2016 Avary Technology (India) Private
Poonamalle Taluk Thiruvallur District Tamil Nadu 600124
Limited India
Material Topic Management Targets & Performance – Tel: (91)9176-999-602
Social Dimension
3-3 Management of material topics Thailand Subsidiary
Privacy & Personal Information Protection /
Information & Communication Security Address: 288 Moo 5 Nonsi Sub-district Kabin Buri District
Peng Sheng Technology (Thailand) Co. Prachin Buri Province 25110 Thailand
418-1 Substantiated complaints concerning breaches of Privacy & Personal Information Protection / Ltd.
customer privacy and losses of customer data Information & Communication Security Tel: (66)37-607-888
131AVARY HOLDING ( SHENZHEN ) CO.LIMITED
Address: 27th Floor Tower A Avary Times Building No.2038
Haixiu Rd Bao’an Shenzhen
Tel: 0755-3381 0388
Fax: 0755-3381 8102
Website: www.avaryholding.com
Email: a-h-m@avaryholding.com
Develop technologies for the betterment of human beings;
Protect the environment for a greener earth.
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