Report Preparation Notes

Introduction of this Report certain disclosures appropriately reference data

from previous years or includes forward-looking descriptions.This report is the third Environmental Social and The preparation of this Report covers Changhong Meiling and

Governance (ESG) Report (hereinafter the "ESG Report" its subsidiaries. Unless otherwise specified the statistical scope

or the "Report") released by Changhong Meiling Co. Ltd. aligns with the annual report.Prepared in accordance with the principles of objectivity

standardization transparency and comprehensiveness Data Description

this Report provides a detailed disclosure of the Company's

practices and performance in environmental social and The data used in this Report is sourced from the Company's

governance aspects for the year 2025. operational raw data publicly available government data annual

financial data internal statistical reports and other relevant

Preparation Basis sources. Financial data in this Report is denominated in RMB. In

case of any discrepancies with the financial report the financial

Self-Regulatory Guidelines No. 17 for Companies Listed on report shall prevail.Shenzhen Stock Exchange — Sustainability Report (Trial)

issued by the Shenzhen Stock Exchange (hereinafter referred

to as the " Guidelines") Definitions

Self-Regulatory Guidance No. 3 for Companies Listed on Terms to be defined Definition

Shenzhen Stock Exchange — Preparation of Sustainability

Changhong Meiling

Report issued by the Shenzhen Stock Exchange Changhong Meiling Co. Ltd.the Company we

China Corporate Sustainability Reporting Guide (CASS-ESG Changhong Air Sichuan Changhong Air Conditioner Co.

6.0) issued by the China Enterprise Reform and Development Conditioner Ltd.

Society and Zeren Yun Research Institute Zhongshan Changhong Zhongshan Changhong Electric Co. Ltd.Zhongke Meiling Cryogenic Technology Co.Sustainability Reporting Standards (GRI Standards 2021) Zhongke Meiling Ltd.issued by the Global Reporting Initiative (GRI) Changmei Living Hefei Changhong Meiling Life Appliances

United Nations 2030 Sustainable Development Goals (SDGs) Appliances Co. Ltd.Jiangxi Meiling Jiangxi Meiling Electric Appliance Co. Ltd.Sustainability Accounting Standards Board Standards (SASB Mianyang Meiling Mianyang Meiling Refrigeration Co. Ltd.Standards) Hefei Industrial Hefei Changhong Industry Co. Ltd.International Financial Reporting Sustainability Disclosure Changhong Meiling Ridian Technology Co. Ridian Technology

Standards No. 1 — General Requirements for Disclosure of Ltd.Sustainability-related Financial Information (IFRS S1) and Sichuan Hongmei Intelligent Technology Hongmei Intelligent

International Financial Reporting Sustainability Disclosure Co. Ltd.Standards No. 2 — Climate-related Disclosures (IFRS S2)

issued by the International Sustainability Standards Board

(ISSB)

Report Access and Feedback

Guiding Opinions on Central Enterprises' Fulfillment of

High-Standard Social Responsibility in the New Era issued This Report is published in electronic format and can be

by the State-owned Assets Supervision and Administration accessed and downloaded from the Shenzhen Stock Exchange

Commission of the State Council website (www.szse.cn) or the Juchao Information website

(www.cninfo.com.cn). If you have any comments or suggestions

Report Scope regarding this Report or the Company's social responsibility

performance please email us at info@meiling.com or call 0551-

The reporting period of this Report is from January 1 2025 62219021.to December 31 2025 (referred to as the "Reporting Period").To enhance the comparability and forward-looking nature

01Contents

Report Preparation Notes 01

01 Ensuring Compliance 03 Driving Green and Low- Embracing Chairman's Message 04 Cultivating Responsible Carbon Development Responsibility Business Protecting Our Ecosystem 04 Connecting Better Lives

Board of Directors'ESG 06

Statement

Improvement of Company Governance 18 Combat with Climate Change 40 Building a Responsible Value Chain 62

About Changhong Meiling 07

Building a Robust Risk Control Defense Line 20 Environmental Compliance Management 47 Leading Industry Development 65

Corporate Profile 07

Ensuring Information Transparency 22 Resource Recycling 51 Empowering Employee Growth 67

Corporate Culture 07

Adhering to Business Ethics 24 Green Production and Operations 57 Dedicated to Giving Back to Society 75

Corporate Development Course 08

Meiling 2025 Milestones 09

ESG Management 10

Sustainability Strategy 10

Sustainability Governance 11

Materiality Assessment 14

Advancing Smart

Due Diligence and Stakeholder 15

Communication 02 Manufacturing Renewing Better Services

Stimulating Innovation Vitality 28

Accelerating Intelligent Transformation 32

Future Prospects 76 Pursuing Excellence in Quality 34

Building Service Excellence 36

Appendix 78

02 03Ensuring Compliance Advancing Smart Driving Green and Low-Carbon Embracing Responsibility

Chairman's Board of Directors' ESG About Changhong ESG Cultivating Responsible Manufacturing Renewing Development Protecting Our Connecting Future

Message Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

Chairman's Message

2025 was a crucial year for bringing the 14th Five-Year Plan to a successful conclusion and a pivotal year for Changhong During the year we We consistently regarded green development as one of our core strategies and remained

Meiling to accelerate its leapfrog development and achieve new breakthroughs. In the face of a rapidly changing market remained committed to committed to reducing the environmental impact of our products and operations across the full

our mission and advanced

environment we remained firmly committed to high-quality development. Focusing on four key dimensions—compliant lifecycle. We strictly complied with environmental regulations and continuously strengthened green development in a

solid and orderly manner. pollution prevention and control. Following a development path centered on energy conservation governance intelligent transformation low-carbon development and social responsibility—we advanced our ESG

resource efficiency and circularity we integrated green development concepts throughout the

strategy in a coordinated manner steadily fulfilled our ESG responsibilities and continued to create diversified value entire lifecycle covering raw material procurement product design manufacturing packaging and

delivering solid results amid challenges and forging ahead with strong momentum. logistics and product recycling. We continued to promote the green upgrading of our products

and injected strong momentum into the Company's low-carbon transformation through concrete

actions to protect the environment.During the year we We consistently regarded compliant operations as the lifeline of the Company's

maintained strong development. On this basis we further improved our corporate governance structure

governance discipline and refined the operating mechanisms of the shareholders' meeting the Board of Directors

continuously improved

governance effectiveness. and management clarified the boundaries of powers and responsibilities at each level During the year we We attached great importance to supply chain development and worked closely with our partners

and enhanced the scientific rigor standardization and efficiency of decision-making. actively fulfilled our to practice responsible procurement and build a green secure and sustainable supply chain.We also strengthened our internal control compliance and risk management systems responsibilities and We adhered to a people-oriented philosophy by protecting employees' rights and interests andreinforced the “three lines of defense" for risk prevention and control and upheld continued to create valuefor stakeholders. providing broad platforms for their growth and development. We also actively fulfilled our social

business ethics. We also continued to improve investor relations management ensured responsibilities by supporting rural revitalization and participating in public welfare initiatives

compliant and transparent information disclosure and effectively safeguarded investor demonstrating corporate care through concrete actions. In doing so we generated social value

interests. while creating economic value and contributed to building a better society.During the year we We remained committed to enabling product renewal through technological

pursued excellence breakthroughs. The Meiling M Fresh Ultra 501S refrigerator pioneered a new industry With solid development Looking ahead Changhong Meiling will remain firmly committed to high-quality development

and sustained strong paradigm with its all-scenario freshness-preservation technology while the Blue Oxygen momentum and with product innovation as the core driver digital transformation as the underpinning and talent

innovation momentum.Garment-Care Washer made its global debut setting a new benchmark for the industry. a keen awareness development as the foundation. We will continue to deepen green technology innovation and

of the significantGuided by our user-centered philosophy we comprehensively advanced the “Quality responsibilities we advance low-carbon practices across the entire value chain. By leveraging strong technologicalImprovement Year" initiative accelerated the digital transformation of marketing bear we are embarking capabilities to drive the industry toward higher-end smarter and greener development fulfilling

and advanced the full online mobile and data-driven transformation of our business on a new journey with our ESG commitments through pragmatic actions rewarding shareholders' trust with solid

operations. Through stronger innovation capabilities and a steadfast commitment to renewed determination. performance and responding to social expectations with a strong sense of responsibility we will

quality we continued to enhance users' experience of better living. strive to write a new chapter of sustainable development for Changhong Meiling in advancing

Chinese modernization.

04 05Ensuring Compliance Advancing Smart Driving Green and Low-Carbon Embracing Responsibility

Chairman's Board of Directors' About Changhong ESG Cultivating Responsible Manufacturing Renewing Development Protecting Our Connecting Future

Message ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

About Changhong Meiling

Corporate Profile

Founded in 1983 and headquartered in Hefei Anhui China Changhong Meiling became the first listed company in Anhui Province

when its A-share stock was listed on the Shenzhen Stock Exchange (hereinafter the "SZSE") in 1993 (Stock Code: 000521.SZ). In 1996 its

B-share stock was also listed on the SZSE (Stock Code: 200521.SZ) making it Anhui Province's first dual-listed company (A- and B-shares)

Board of and earning recognition that same year as one of the Shenzhen Stock Exchange's top ten high-performing listed companies.As a national benchmark enterprise for technological innovation the Company has consistently strengthened its core competitiveness

Directors'ESG through technology and product innovation. The Company has achieved continuous breakthroughs across multiple domains including intelligent and simulation technologies; freshness preservation odor purification and ultra-low temperature refrigeration;

Statement energy-saving and air-cooling solutions; thin-wall and ultra-thin design; as well as washing performance and fabric care. The Company's achievements have been recognized with numerous national honors such as being designated a "National Green Factory"

and a "National Technology Innovation Demonstration Enterprise." It has also been named a "Leading Enterprise in Quality in China's

Home Appliance Industry" and a "National Demonstration Enterprise for Industry-Academia-Research Collaboration Innovation" while

The Board of Directors is the highest decision-making body its "Smart Refrigerator Intelligent Manufacturing" initiative was selected as a national pilot demonstration project.for the Company's ESG matters responsible for integrating

ESG considerations into the Company's management

policies and operational decision-making processes. The

Board places significant emphasis on ESG initiatives and has

established an ESG Management Committee chaired by the Corporate Culture

Chairman of the Board. The ESG Management Committee is

responsible for studying and formulating the Company's ESG

strategic plans and objectives establishing the management Corporate Spirit Core Values Corporate Mission

system evaluating and reviewing the Company's ESG-related

strategies risks and implementation performance and Hard Work Pioneering Perseverance and Excellence User-Centricity Let Better Days Come

reviewing the ESG Report prior to its submission to the Board

for approval.Changhong Meiling highly values the expectations of Code of Conduct

stakeholders regarding ESG matters. Taking into account

industry characteristics and key issues arising from the

Company's operations the Company conducts stakeholder Accountability Initiative Innovation and Cooperation

engagement surveys assesses prioritizes and screens ESG

topics and timely adjusts and determines its material ESG

topics.Brand Proposition

Beautiful China Fresh Meiling

06Ensuring Compliance Advancing Smart Driving Green and Low-Carbon Embracing Responsibility

Chairman's Board of Directors' About Changhong ESG Cultivating Responsible Manufacturing Renewing Development Protecting Our Connecting Future

Message ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

Corporate Development Course Meiling 2025 Milestones

1983 1993 1996 1997 2002 April 2025 The Company was successfully selected for the

first batch of China's Consumer Premium Brands

announced by the Ministr y of Industr y and

Establishment Successful listing of Successful listing of Award of "China Joint investment with the Information Technology of the People's Republic

of the Company A-shares in Shenzhen B-shares in Shenzhen Well-Known Technical Institute of Physics of China.Trademark" and Chemistry CAS to

establish Zhongke Meiling The Company globally launched the new AI

refrigerator product Frozen Fresh 505 introducing

the concept of "freshness defined by technology

rather than environment." This launch marked

2015 2011 2009 2005 a technological breakthrough that subverted

traditional preservation logic empowering AI to

redefine freshness standards.Acquisition of Investment in a Acquisition of Strategic restructuring with A subsidiary Mianyang Changhong Smart Home

2016 Changhong Ridian production base in Changhong Air Sichuan Changhong Electric Appliance Co. Ltd. was established to invest in Launch of the "Zhihuijia Pakistan for refrigerator Conditioner Co. Ltd. and construct a washing machine project with

Ecosystem" and project development and Zhongshan an annual single-shift production capacity of one

investment in a Indonesia Changhong million units.manufacturing base

2017 June 2025 The Six Sigma Green Belt project of Changhong M-Fresh Refrigerator Air Conditioner was recognized as a "Professional-

recognized with two level Achievement" in China's national quality

world records appraisal.

2018 Investment of RMB 400 July 2025 Changhong Meiling officially launched the

million in construction industry-disruptive product – the M-Fresh Ultra

of the Meiling Hefei 502F Refrigerator applying "rose-grade freshness

Washing Machine preservation" technology to reshape industry

Intelligent Industrial Park standards.The Shanshuijian EA Series new products of

2019 2020 2022 2023 2024 Changhong Air Conditioner were off icially

launched creating an indoor "micro-climate"

close to natural mountain-and-water conditions

Launch of the Establishment of Successful listing Release of the Launch of the "Blue Oxygen and delivering an integrated air solution featuring

industry's first fully- a subsidiary for of Zhongke Meiling new brand Hand-Wash Like" washing "constant temperature humidity oxygen

thin refrigerator home appliances on the Beijing proposition: machine and the first Zhihuijia cleanliness and quietness" thereby advancing

Stock Exchange "Beautiful China AI large model air conditioners from standalone temperature-

Fresh Meiling" control devices to comprehensive air environment

management platforms.The Hand-Wash Like · White Whale drum washing

machine was officially launched. Its "Hand-Wash

Like" redefines industry cleanliness standards

establishing another milestone in the field of fabric

care and opening a new chapter for Changhong

Meiling's washing appliance division.December 2025 The Company held a new freezer product launch

event themed "The Power Combination Peak

Debut" unveiling two new freezer products:

"Inverter Energy-Saving King" and "Inverter Frost-

Free King."

08 09Ensuring Compliance Advancing Smart Driving Green and Low-Carbon Embracing Responsibility

Chairman's Board of Directors' About Changhong ESG Cultivating Responsible Manufacturing Renewing Development Protecting Our Connecting Future

Message ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

ESG Management Sustainability Governance

In response to sustainable development trends and in compliance with national laws regulations and governance requirements Governance Structure

for listed companies Changhong Meiling formulated a clear sustainability strategy. This involved systematically enhancing The Company has established a "three-tier linkage mechanism" for sustainability governance composed of the Board of

its ESG management system conducting a materiality assessment and deeply integrating ESG principles into its corporate Directors the ESG Management Committee and the ESG Working Group. Within this structure the Board of Directors serves as

governance. the highest responsibility body. The ESG Management Committee formed by key members of the Board acts as the overarching

leadership body for ESG initiatives. Under the ESG Management Committee the ESG Working Group is responsible for the daily

execution of the Committee's affairs implementation of resolutions and advancement of related tasks. This ensures the effective

Sustainability Strategy implementation of strategic plans and management requirements set by the ESG Management Committee. This tiered and specialized ESG governance framework provides solid organizational support for achieving sustainability goals.Guided by its vision and mission of "Meiling Let Better Days Come" and anchored in its core positioning of "Smart Enjoyment of Tier Organizational Name Scope of Responsibilities

a Green Future" Changhong Meiling has formulated a medium-to-long-term ESG strategy. This strategy centers on our roles as

a "Green Lifestyle Advocate Technology Innovation Driver and Compliant Governance Practitioner." This strategy is built upon

six strategic pillars supported by five key enablers: organization systems capabilities culture and finance. It comprehensively Review and approve the Company's ESG strategic plans and objectives

integrates green transition with intelligent transformation demonstrating the Company's ambition to lead the industry in governance structure and key policies.sustainable development. Decision- Board of Review and approve the Company's ESG Report and disclosure of material

Making Tier Directors ESG governance information.Review and approve major ESG matters and response plans for significant

Changhong Meiling ESG-related risks.Smart Enjoyment of a Green Future

Strategic

Planning Smart technology enabler · Green lifestyle advocate · Harmonious society co-creator Study and formulate the Company's ESG strategic plans and objectives and

establish the ESG management system.Strategic Excellent Intelligent Quality Collaborative Management

ESG A ssess and review ESG-related strategies r isks and implementation

Pillar Climate Action Green productsGovernance Manufacturing Consumption Level Management Progress performance.Committee

Review the Company's ESG Report and other ESG-related matters.Continuously Achieving carbon peak Take “ Full Lifecycle Accelerate the Adhere to customer- Work together withoptimizing the in our own operations Green Management” development of new centric product suppliers employees Handle other matters authorized by the Board of Directors and matters

governance and before 2030 and carbon as the core principle quality productive operations and user- communities and

Strategic required under applicable laws and regulations.operational system neutrality before 2060 and develop a portfolio forces and advance centric brand building other stakeholders

Objectives to empower the of low-carbon and transformation providing consumers to jointly promote

Company's high-quality environmentally toward intelligent with differentiated sustainable

development friendly products manufacturing value-added products development

compliant with national

standards Promote the standardized and institutionalized implementation of ESG

initiatives and fulfill relevant approval procedures.Efficient Governance Dual Carbon Initiative Green Product Iteration Technological Product Experience Responsible supply

System Low-Carbon Industrial Product Energy innovation chain

Implement ESG matters across the Company strengthen interdepartmental

Implement Service UpgradeCompliance Parks Efficiency Rate Product innovation coordination and communication and advance execution of ESG-related -ation Brand Communication Employee rights and Management System interests Execution ESG Working Path Clean energy Product Quality Control Service innovation matters.Risk control Public Welfare Body Group

Initiatives Organize preparation and external disclosure of ESG-related reports and

implement the requirements of the ESG Management Committee.Monitor risks and issues arising in day-to-day ESG management provide

Organizational Institutional Capability Cultural feedback and recommendations and support future development planning.Safeguard Financial Safeguards

Mechanisms Safeguards Safeguards Safeguards Safeguards

Changhong Meiling Sustainability Strategy

10 11Ensuring Compliance Advancing Smart Driving Green and Low-Carbon Embracing Responsibility

Chairman's Board of Directors' About Changhong ESG Cultivating Responsible Manufacturing Renewing Development Protecting Our Connecting Future

Message ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

Institutional Mechanism Risk Management

The Company has established and continuously improved internal systems for sustainability management information

reporting and oversight and performance assessment. It has formulated and issued Implementation Rules of the Board ESG The Company has established a comprehensive sustainability risk management system a normalized risk reporting mechanism

Management Committee which clarify the authority workflow and decision-making mechanisms of the ESG Management and differentiated risk response strategies to ensure transparent risk information and timely decision-making.Committee. The ESG Management Committee convenes dedicated meetings on a regular basis. Review results are submitted in a

timely manner to the Board of Directors and the ESG Working Group to guide follow-up implementation. An internal mechanism

shall be established to monitor and supervise the management of ESG-related matters. The primary responsibilities of the ESG

Management Committee are defined to oversee and guide the effective implementation of the Company's ESG initiatives. The A closed-loop management mechanism of "risk identification – remediation – tracking

performance of senior executives in advancing ESG work shall be incorporated into the comprehensive performance appraisal and early warning – remediation verification" has been established. The Company has

system for management. This includes formulating the Company's ESG strategic plan establishing the ESG management system also set up a Compliance and Risk Control Committee to conduct comprehensive risk

reviewing the Company's ESG management performance and fulfilling key performance indicators (KPIs) for specific ESG topics identification and assessment.such as talent development environmental management safe production occupational health scientific and technological

innovation and the management of major liability accidents.Risk Management

System

Capability Enhancement

The Company actively organizes internal ESG training programs and participates in external industry ESG training activities to

enhance ESG expertise and overall professional competence among relevant personnel. This has fostered a broad consensus A reporting mechanism for major risk matters has been established. Continuous

centered on ESG principles to drive the Company's high-quality development laying a solid foundation for the deepening and oversight of the progress of major risk incidents is maintained through a monthly

continuous improvement of its ESG initiatives. reporting system which is integrated into the performance assessment framework.Risk Reporting

and Supervision

Risks arising from changes in the external business environment: Identified risk matters

are tracked monthly developments are closely monitored and proactive and prudent

preventive measures are adopted.Risks related to incremental business: Comprehensive contingency plans and response

strategies are formulated with phased implementation schedules and execution requirements

clearly defined. Compliance and Risk Control Departments convene regular meetings to solicit

views from functional management departments and risk decision-making bodies.Risks related to existing business: Major risks are assessed and response proposals are

Risk Response developed with clear objectives for risk resolution organizational leadership management

Strategies and processes resource support and specific response measures.Measures

The Company has established sustainability objectives and a quantitative indicator

system. For the frame work design implementation pathways and phased

achievements of relevant targets and indicators please refer to the respective chapters

on material topics in this Report.Indicators and

Targets

Changhong Meiling Participates in ESG Training Changhong Meiling Awarded the Top 100 of

the 3rd Guoxin Cup * ESG Golden Bull Award

12 13Ensuring Compliance Advancing Smart Driving Green and Low-Carbon Embracing Responsibility

Chairman's Board of Directors' About Changhong ESG Cultivating Responsible Manufacturing Renewing Development Protecting Our Connecting Future

Message ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

Materiality Assessment Due Diligence and Stakeholder Communication

In accordance with the requirements of Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange — Sustainability The Company conducted on-site due diligence with stakeholders including heads of departments and key employees Company

Report (Trial) Self-Regulatory Guidance No. 3 for Companies Listed on Shenzhen Stock Exchange — Preparation of Sustainability Report suppliers and shareholders. Background research was carried out on the sustainability context of the regions where the Company

issued by the Shenzhen Stock Exchange and Reference Indicator System for ESG Special Reports of Central Enterprises Controlled Listed operates industry characteristics and the full product lifecycle. The Company conducted in-depth analysis of local policy guidance

Companies issued by the General Office of the State-owned Assets Supervision and Administration Commission of the State Council the documents industry standards and regulatory requirements topic lists and weighting methodologies adopted by internationally

Company conducted its materiality assessment by taking into account industry characteristics actual operating conditions and its business recognized ESG rating agencies and ESG reports of peer companies with a focus on key factors that may affect ESG topic selection as

model. The Company also incorporated its strategic development priorities and the key concerns of both internal and external stakeholders well as associated risks and opportunities. Through online questionnaires the Company collected views from internal stakeholders

and adopted a dual materiality assessment framework. Based on this process a total of 21 material topics related to Environmental Social regarding financial materiality and from external stakeholders regarding impact materiality in order to ensure the comprehensiveness

and Governance (ESG) were identified. and accuracy of ESG topic identification.Changhong Meiling Dual Materiality Matrix

Stakeholder Expectations and Demands Communication and Response

Innovation-Driven development

Strengthening pollution Risk & internal control Risk screening

prevention and control Supply chain Product and service safety and Government

management quality Anti-fraud measures Complaint mechanism

Compliance

management Energy utilization

Combat with Service quality Ensure service standardsProtecting the rights and interests

climate change of employees Employee training and Customerdevelopment Protect customer rights and interests Improve service quality

Utilization of water Green products

resources Circular economy

Occupational health and safety Improving compensation and benefits

Information security and privacy protection systemsCompensation and benefits protection

Anti-unfair competition

Environmental

Social responsibility compliance Business ethics and anti-corruption

Optimizing career development

management Corporate government

Promotion mechanisms

Employee pathways

Ecosystem and biodiversity Governance related to Employee growth and development

sustainability Enriching diversified employee training

Employee caring

Employee care initiatives and cultural

Impact Significance activities

Changhong Meiling 2025 Dual Material Topics List Implementing assistance programs

Rural revitalization

Community Actively participating in charitable

Innovation-Driven development Business ethics and anti- Governance related to Supporting public welfare initiatives activities

High Low Financial corruption sustainability

Financial Supply chain management Materiality

and Impact Product and service safety and High Impact Information security and Corporate governmentprivacy protection

Materiality quality Materiality Green products Performance of contracts and

Circular economy Operational complianceTopics Energy utilization Topics agreements in accordance with law

Occupational health and

Protecting the rights and interests of Partners Compliance with business ethicssafety Transparent and fair business principles

employees

Utilization of water Supply chain management

Employee training and development resources Full lifecycle management of suppliers

High Accurate information disclosure Sufficient information disclosureCombat with climate change

Financial Low Financial Environmental compliance Social responsibility

Materiality Strengthening pollution prevention and Impact management Investors Communication with investors Diversified communication channels

Low Impact and control Materiality Ecosystem and

Materiality Topics Anti-unfair competition biodiversity Enhanced ESG performance Elevate ESG management capabilityCompliance management

Topics

1415

Financial SignificanceEnsuring

Compliance

Cultivating Responsible

Business

Changhong Meiling strictly complies with applicable laws regulations and

listed company governance requirements and continuously improves its

corporate governance framework while strengthening tax compliance and

risk management. Guided by the principles of integrity and fairness the

Company fosters a sound market environment and creates long-term value for

shareholders through high-quality development.

16 17Ensuring Compliance Advancing Smart Driving Green and Low-Carbon Embracing Responsibility

Chairman's Board of Directors' About Changhong ESG Cultivating Responsible Manufacturing Renewing Development Protecting Our Connecting Future

Message ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

Improvement of Company Governance Board of Board of Shareholders Directors Management

The Company has established a governance system centered on the General Meeting of Shareholders Board of Directors and

Management in accordance with relevant laws and regulations such as the Company Law of the People's Republic of China the

Securities Law of the People's Republic of China the Code of Corporate Governance for Listed Companies the Shenzhen Stock

Exchange Listing Rules and internal regulations including the Company's Articles of Association the Independent Director System

and the Board of Directors Rules of Procedure. To strengthen governance effectiveness the Company has formulated a detailed

delegation-of-authority manual and implemented differentiated authorization management for subsidiaries with clearly defined

approval procedures and authority limits enabling scientific rational and efficient subsidiary management. At the same time the

Company has established and continuously refined a scientific fair and transparent performance evaluation system and incentive-

restraint mechanism for directors and senior management. We continuously enhance the governance framework improve the level

of standardized operations and strengthen policy enforcement to ensure the General Meeting of Shareholders the Board of Directors

and the Management perform their respective duties effectively maintain checks and balances and enable sound decision-making

thereby safeguarding the Company's high-quality development.The Company promotes the development of board diversity policies the selection and appointment of Company directors strictly

prioritize compliance as the premise professionalism as the core and role suitability as the guiding principle. Multiple factors are

comprehensively considered including basic qualifications professional competence ethical standards structural compliance and Organizational Structure Chart

industry experience actively building a diverse complementary balanced and inclusive Board team. Establish a scientific evaluation

mechanism to conduct regular assessments of Board members ensure that they devote sufficient time and energy to the Company's

affairs and guarantee the effectiveness of their performance of duties.In 2025 the size and composition of the Board fully complied with applicable laws regulations and the Articles of Association. The

Board maintained a standardized governance structure and diversified composition effectively safeguarding scientific decision-

making and governance effectiveness. Board of Board of

Shareholders ManagementDirectors

Number of Independent Percentage of Independent

Directors Directors on the Board

The General Meeting of The Board of Directors is accountable to the The Management acts

3 33.33% Shareholders is the Company's General Meeting of Shareholders and serves as the executive body

highest authority and is as the Company's decision-making body. It is of the Company and is

Number of Company responsible for reviewing and responsible for implementing resolutions of the responsible for carrying out

Directors Number of Female Proportion of female approving major corporate General Meeting of Shareholders formulating day-to-day operational and

Directors directors

9 matters. business plans and investment proposals managerial affairs.3 22.22 among other duties.%

Number of Female Senior Percentage of Female Senior Organizational Name Total Number Female Members Breakdown

Management Personnel Management Personnel

2 28.57 Board of Directors 9 2 3 Independent Directors 6 Non-Independent Directors%

ESG Management Committee 6 2 1 Independent Directors 5 Non-Independent Directors

Audit Committee 5 1 3 Independent Directors 2 Non-Independent Directors

Strategy Committee 7 1 1 Independent Directors 6 Non-Independent Directors

Remuneration and Assessment

4 1 3 Independent Directors 1 Non-Independent Directors

Committee

Nomination Committee 5 1 3 Independent Directors 2 Non-Independent Directors

1819

ESG Management Committee

Remuneration and

Assessment Committee

Nomination Committee

Audit Committee

Strategy CommitteeEnsuring Compliance Advancing Smart Driving Green and Low-Carbon Embracing Responsibility

Chairman's Board of Directors' About Changhong ESG Cultivating Responsible Manufacturing Renewing Development Protecting Our Connecting Future

Message ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

Building a Robust Risk Control Defense Line Types of Risk and Risk and Opportunity Impact Impact Opportunity Description Severity Timeframe Mitigation Measures

Changhong Meiling consistently adheres to integrity-based operations and maintains compliance as a core business principle. Compliance Strengthen awareness of discipline and rules.concepts are integrated into all aspects of operations and management through continuous improvement of compliance operating Unethical behavior by company Continuously enhance the integrity and risk employees may lead to a decline prevention awareness of management and

mechanisms stronger compliance risk prevention enhanced compliance review procedures and deeper development of compliance Staff Integrity Risk in consumer recognition of the Medium Long-term staff through measures such as signing Integrity

culture thereby promoting high-quality corporate development through efficient compliance management. Company brand. Undertakings and conducting integrity education

and training.Compliance Management

Governance Related to Compliance Operations Management of Impacts Risks and Opportunities Related to Compliance Operation

The Company has established a comprehensive compliance management system including the Basic Compliance and Risk Control The Company has established an integrated compliance risk control and internal control management system that is risk-oriented

Management System the Measures for Compliance Review Management the Detailed Rules for Compliance and Risk Control Work compliance-focused and internal control-driven. This system features scientifically designed management bodies with clearly defined

the Standards for the Internal Control System the Measures for the Management of Compliance and Risk Control Administrators and responsibilities and appropriately allocated personnel. Based on three risk levels—low medium and high—a "three lines of defense"

the Measures for Investigating Liability for Non-compliant Business Operations and Investments. These systems form an institutional framework for compliance and risk control management has been constructed comprising business departments the Compliance and

framework covering key areas such as investment operations risk control and human resources ensuring that compliance requirements Risk Control Department the Audit and Supervision Department and decision-making bodies. Compliance review is embedded into

are embedded throughout all operational processes. operational management processes as a mandatory procedure for critical business activities including the formulation of core policies

The Company has established a Compliance and Risk Control Committee composed primarily of senior executives and management decision-making on significant matters

members. Under this structure a Compliance Leadership Group serves as the decision-making core primarily responsible for reviewing execution of major contracts operation of key

and deploying strategic plans and objectives for compliance and risk control work and coordinating solutions for key and difficult issues projects large-value procurement and sales

in the compliance management domain. A Compliance Committee Office is set up as the executive center focusing on the day-to-day and management of substantial funds. The

management of compliance and risk control to ensure the precise implementation of all compliance requirements and the continuous Company conducts compliance training and

optimization of the compliance management organizational system. Annually the Company conducts comprehensive risk identification awareness programs requires all employees

across strategic financial compliance market operational and legal domains. Using a risk assessment model risks are categorized to sign compliance commitment letters and

into three levels—low medium and high—resulting in a risk identification list that clarifies responsible persons and units for risk events. continuously strengthens the legal mindset

Regular reviews are organized. compliance awareness and legal/compliance

execution capabilities of both staff and

Strategy Related to Compliant Operations compliance personnel effectively advancing

compliance initiatives.To ensure sustainable compliant operations risk management is treated as a primary task. The goal is to establish a closed-loop risk

management mechanism of "risk identification – remediation – tracking and early warning – remediation verification" build a risk The Company held the 2025 Internal Auditor Training for the Management System

management system encompassing risk identification assessment monitoring and response and implement a regular risk reporting

mechanism to ensure transparent risk information and timely decision-making.Indicators and Targets Related to Compliance Operation

Types of Risk and Risk and Opportunity Impact Impact

Opportunity Description Severity Timeframe Mitigation Measures

In 2025 the Company completed all target tasks related to compliance governance. No major litigation arbitration or other risk events

Changes in domestic and

international laws and regulations Closely monitor changes in relevant policies occurred during the reporting period and no violations or penalties were recorded with no fines incurred.Policy and

(e.g. Anti-Monopoly Law) may Medium Medium to and regulations and implement preventive risk

Regulatory Risk lead to increased compliance Long Term measures in advance. 2025 the Company

costs.Formulate relevant reputation management

Market Reputation Non-compliant incidents may and response policies clarify incident handling

lead to customer loss and stock High Short term procedures and division of responsibilities and

Risk price decline. swiftly mitigate the adverse impact of negative

publicity on the Company. Total Number of Standardized Total Duration of Total Number of Participants

Brand Value A positive corporate image Improve compliance credibility with reference Governance & Compliance Standardized Governance & in Standardized Governance contributes to enhanced brand Medium Long-term

Opportunity to ISO 37301 and other recognized standards. Training Sessions Compliance Training & Compliance Trainingvalue.International business operations Continuously monitor customs tax and export 11Times 15Hour 2024Person

face risks from policy changes control policy developments in trade partner

Overseas Market in foreign customs compliance countries establish a "penetrative" early-warning

Policy and taxation export controls etc. Medium to mechanism and formulate differentiated policy potentially leading to surging Medium Long Term response plans for key markets; leverage a

Compliance Risk Over the next 3-5 years the Company will continue to focus on the objectives of "Stable Operations Compliant Management Asset export costs supply chain diversified supply system and accelerate the

restructuring and restricted regionalization of supply chain layout to reduce Security and Strategic Realization." It commits to adhering to laws regulations industry supervisory requirements and internal rules

market access. reliance on any single market. and systems aiming to achieve zero occurrences of major operational risk events.

20 21Ensuring Compliance Advancing Smart Driving Green and Low-Carbon Embracing Responsibility

Chairman's Board of Directors' About Changhong ESG Cultivating Responsible Manufacturing Renewing Development Protecting Our Connecting Future

Message ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

Internal Control Investor Relations Management

In accordance with the Basic Standards for Enterprise Internal Control and relevant governmental policy directives the Company has

formulated various internal control systems including the Basic Compliance and Risk Control Management System the Measures for The Company has established policies including the Investor Relations Management Policy the Reception and Promotion Work Policy

Compliance Review Management the Standards for the Internal Control System and the Risk Management Policy. These documents and the Brand Crisis Early Warning Management Regulations diligently carrying out all aspects of investor relations management. We

define internal control governance bodies division of responsibilities management principles operational requirements and procedural engage with investors through various channels such as the Shenzhen Stock Exchange's "Interactive Easy" platform hotline email

arrangements. The Company's internal control system consists of the Board of Directors (providing guidance and evaluating internal control institutional research meetings brokerage strategy conferences reverse roadshows and earnings briefings. We actively listen to

effectiveness) the Compliance and Risk Control Department (the primary responsible department) the Audit Department (the department investors' opinions and suggestions to deepen communication. The Company strengthens public sentiment management through

organizing internal control evaluations) and various functional departments (departments responsible for implementing and executing internal

controls). Internal control audits are conducted at both internal and external levels encompassing comprehensive audits and inspections proactive monitoring real-time handling and post-event follow-up providing appropriate responses promptly to guide positive

across areas such as production and warehousing procurement and payments sales and receivables research and development and discourse and effectively prevent and properly manage reputational risks.capital and investment. For key domains—including tender-based procurement financial management personnel management service

management and safety management—as well as for high-risk business activities specific operational policies or specialized guidelines have

been established to strengthen internal control. A contract review mechanism has been implemented supported by a contract management 2025 the Company

system to effectively monitor the signing and fulfillment of contracts and prevent disputes or inadequate performance. Monthly screening for

significant risks is conducted with remediation measures formulated and advanced monthly for identified risk issues. The Company places

high importance on the development of financial internal controls establishing a system centered on accounting control and management

control. The Internal Audit Management System has been formulated to provide an institutional foundation for internal audit work ensuring the Number of Investor Inquiries Responded to Earnings Briefings Held Investor Reception Sessions

effective execution of the Company's internal control procedures. Tax management policies such as the Measures for Value-Added Tax Invoice via the "Interactive Easy" Platform

Management and the Measures for the Management of Pre-Tax Deduction Vouchers for Corporate Income Tax have been established promoting 1 times 20 times

the digital transformation of tax management to mitigate tax-related risks. 191 times

The Company earnestly fulfills its tax obligations declares tax information in a timely and accurate manner conducts tax declaration and tax

payment in an orderly manner and voluntarily accepts tax inspections. For many years the Company's tax credit rating has been rated as Class

A by the tax authorities. Investor Hotline Calls Answered Institutional Investor Visits Received

674 times 106 person-times

Ensuring Information Transparency

Changhong Meiling has established and refined mechanisms to protect investors' rights and interests. We proactively build communication

bridges with investors respond promptly to their concerns and communicate the Company's value. Our compliant information disclosure

practices enhance investors' understanding and recognition of the Company. We continuously improve investor relations management to build

and maintain a positive image in the capital markets. Enhancing Information Disclosure

Protection of Investors' Rights and Interests The Company complies with the relevant requirements of Shenzhen Stock Exchange Stock Listing Rules and the Self-Regulatory

The Company maintains a complete business system and independent operational capabilities. It operates independently from its actual Guidelines No. 1 for Companies Listed on Shenzhen Stock Exchange —Standard Operation of Main Board Listed Companies issued by

controller and controlling shareholders in terms of business operations personnel assets Organizational structure and finance. The Shenzhen Stock Exchange. It has formulated information disclosure-related policies including the Information Disclosure Management

Company implements a continuous stable and transparent profit distribution policy. While balancing the Company's long-term interests and Policy and the Financial Reporting Management Provisions continuously strengthening information disclosure management and

sustainable development it emphasizes providing reasonable returns to investors. In accordance with the Company's Articles of Association fulfilling disclosure obligations for major events to ensure that information disclosure is truthful accurate complete timely fair and

and the Shareholder Return Plan for the Next Three Years (2024-2026) profit distribution is conducted under the premise that the Company's effective. In addition on the basis of ensuring compliant information disclosure the Company appropriately increased voluntary

profitability and cash flow support normal operations and long-term development thereby safeguarding investors' rights and interests. In any

single fiscal year the total cash dividends to be distributed (including any interim cash dividends) shall be no less than 15% of the distributable information disclosure to improve the reference value and utility of its disclosed information. Adhering to regulations including the

profits of the listed company's parent entity for that year but shall not exceed the lower of the distributable profits presented in the parent Inside Information Confidentiality Policy and the Registration Management System for Persons with Access to Insider Information

company financial statements and the consolidated financial statements. of Listed Companies the Company

Based on confidence in the Company's development prospects and recognition of its value during the reporting period the Company standardizes internal procedures

implemented a share repurchase to enhance investor returns and market confidence. A repurchase plan was formulated and executed for A-share for report ing t ransmitt ing and

repurchase with a total repurchase amount ranging from RMB 150 million (inclusive) to RMB 300 million (inclusive). The repurchased shares are confidentiality procedures for major

intended for implementing equity incentive plans aiming to strengthen investor confidence improve shareholder returns further improve the i n fo r m at i o n st r i ct l y co n t ro l l e d

Company's long-term incentive mechanism and promote the Company's sustained stable and healthy development. the scope of informed persons

and effectively prevented risks of

2024 Annual Profit Distribution Amount Percentage of Net Profit Attributable to Shareholders of the Listed information leakage. In 2025 the

Company Distributed Company cumulatively disclosed

RMB 339.8748 million 9 3 a n n o u n ce m e n ts a n d re l ate d 48.60% documents. No incidents of insider

information leakage or violations

of information disclosure occurred

Number of Shares Repurchased During the Percentage of Repurchased Shares to Total Share Capital During the during the reporting period effectively

Reporting Period Reporting Period safeguarding the legitimate rights

12487901 shares 1.2125% and interests of the Company and its stakeholders. The Company held the 2025 Confidentiality Work Conference

22 23Ensuring Compliance Advancing Smart Driving Green and Low-Carbon Embracing Responsibility

Chairman's Board of Directors' About Changhong ESG Cultivating Responsible Manufacturing Renewing Development Protecting Our Connecting Future

Message ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

Adhering to Business Ethics Whistleblower Protection

Changhong Meiling has formulated the Measures for Petition and Reporting

Changhong Meiling has established an integrated management system of compliance risk control and internal control under a rule-of- Management which clearly stipulate reporting channels reporting

law framework and conducts supervision and inspections of potential violations and irregularities on an irregular basis. The Company methods and whistleblower protection measures. Multiple public Mobile OA Communication QQ

consistently maintains a zero-tolerance stance towards illegal activities disciplinary violations and any conduct not in good faith. reporting channels have been established including a reporting hotline Group

disciplinary inspection email and reporting mailbox. Whistleblowers may 539027***

Anti-Corruption Management submit complaints or reports anonymously fundamentally preventing the disclosure of whistleblower information. All reporting channel terminals Reporting Hotline

The Company attaches great importance to the prevention and control of risks related to commercial bribery corruption fraud and are directly managed by the Company's disciplinary inspection office 0551-62219043

integrity compliance. It has formulated systems including the Management Provisions on Anti-Corruption Anti-Bribery and Anti-Fraud thereby reducing the risk of information leakage.the Contract Management System and the Trademark Management System embedding integrity requirements into core processes For individuals making real-name reports and providing valid evidence Reporting Email

such as procurement and bidding supplier admission and channel development authorization. The Company has established the Company adopts strict confidentiality measures and strictly prohibits

a leadership group for anti-commercial bribery and anti-corruption/fraud management with senior management serving as the chmljiwei@meiling.comany form of suppression or retaliation. Personnel responsible for violating

core decision-making body for specialized management. At the same time the Compliance and Risk Control Department has been confidentiality requirements will be subject to strict and severe disciplinary

designated as the department responsible for daily implementation and advancement of related work tracking rectification progress action. In addition the Company has established a whistleblower reward

and effectiveness throughout the process to ensure closed-loop risk prevention and control management. The Company organized mechanism under which effective whistleblowers are commended and

management personnel and employees in key positions to sign the Integrity Undertakings conducted one-on-one integrity interviews rewarded in order to encourage employee participation and jointly

with newly appointed management personnel and employees in key positions and provided thematic training on anti-corruption safeguard the Company's integrity image.laws and regulations for management personnel and employees in important positions. In addition the Company organized warning

education activities including the study of typical corruption cases and visits to integrity warning education bases in order to foster a

sound environment for integrity compliance. The Company also carried out accountability assessments in strict accordance with the

Special Rectification Plan for Integrity Work and the Implementation Measures for Accountability for Illegal Operation and Investment

promptly addressing loopholes in operational management. Furthermore integrity clauses were incorporated into anti-corruption Anti-unfair Competition

management policies procurement contracts and distributor agreements or separate integrity cooperation agreements were

signed with business partners clearly specifying integrity obligations breach liabilities and reporting channels thereby continuously The Company strictly complies with the Anti-Monopoly Law of the People's Republic of China the Anti-Unfair Competition Law of

improving the Company's operational and management standards. the People's Republic of China the Foreign Trade Law of the People's Republic of China as well as applicable laws and regulations

governing overseas business operations. It has formulated institutional documents including the Legal Affairs Management System

In 2025 a total of 3367 employees participated in anti-commercial bribery and anti-corruption training representing 74% of all and the Management System for the Protection of Trade Secrets and establish a Market Order Management Committee in charge

employees. Neither the Company nor its employees were involved in any corruption bribery or fraud cases concluded by or under of anti-monopoly and fair competition compliance to prevent unfair competition practices such as false advertising monopolistic

trial in court. No employees were dismissed or subject to disciplinary action due to corruption and no contracts with business partners conduct and infringement of trade secrets thereby establishing an honest and fair competition mechanism and fostering a fair market

were terminated or not renewed as a result of corruption-related incidents. environment. The Company actively responded to the 2025 China Fair Competition Policy Publicity Week organizing special training

sessions on anti-monopoly law anti-unfair competition law and trade secret protection. These sessions focused on topics including

antitrust filing and review of business operator concentration emerging anti-monopoly risk points anti-monopoly investigations

and anti-monopoly civil litigation. In addition the Company established a full-process anti-monopoly and fair competition

r i s k m a n a g e m e n t m e c h a n i s m

systematically standardizing anti-

m o n o p o l y a n d fa i r co m p et i t i o n

r i s k co n t ro l . B a s e d o n i n d u st r y

characteristics and business models

the Company identified potential

compliance r isk points rejected

clauses violating fair competition

p r i n c i p l e s a n d o p p o s e d p r i c e

monopoly provisions. In 2025 the

Company did not experience any

litigation or major administrative

p e n a l t i e s a r i s i n g f r o m u n f a i r

competition practices.The Company organized special training sessions on anti-monopoly law and anti-unfair

The Company organized a visit to an Integrity Warning Education Base competition law

24 25Advancing

Smart Manufacturing

Renewing Better

Services

Changhong Meiling adheres to fundamental principles while pursuing

innovation guided by the orientation of "pursuing innovation advancing

intelligence and improving quality." The Company integrates technological

innovation throughout the entire development process continuously tackling

core technological bottlenecks; deepens the upgrading of intelligent and digital

manufacturing empowering production efficiency and process improvement

through smart manufacturing; strictly controls product quality to consolidate

the foundation for development with high-quality products; and upgrades its

customer service system to enhance user experience through considerate full-

process services thereby creating a new corporate benchmark for China's home

appliance industry.

26 27Ensuring Compliance Advancing Smart Driving Green and Low-Carbon Embracing Responsibility

Chairman's Board of Directors' About Changhong ESG Cultivating Responsible Manufacturing Renewing Development Protecting Our Connecting Future

Message ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

Stimulating Innovation Vitality Management of Impacts Risks and Opportunities Related to Innovation-Driven

Changhong Meiling regards technological innovation as a core strategy and concentrates on integrating scientific and technological Changhong Meiling consistently adheres to an innovation-driven development strategy and has established and continuously

innovation resources. The Company continuously improves R&D innovation incentive measures from multiple dimensions including improved a risk identification assessment and response mechanism in the field of innovation. The Company has embedded

system construction platform support and talent assurance while promoting the efficient transformation and application of opportunity assessment and risk management related to innovation-driven development throughout its overall internal control and

innovation achievements strengthening full-chain intellectual property protection improving the technology ethics governance risk management system ensuring that its strategic planning and operational decision-making can effectively seize opportunities

system and comprehensively driving technological and product innovation upgrades to consolidate the scientific and technological arising from industry transformation properly address various risks brought by technological iteration and market competition and

foundation for high-quality development. safeguard stable operation and sustainable development.Governance Related to Innovation-Driven Innovation System Layout

The Company continuously strengthens the construction of its R&D innovation system by establishing an innovation model of

The Company attaches great importance to and continuously strengthens its R&D innovation system by establishing a technological "talent + platform + mechanism." It actively attracts and cultivates innovative talent builds innovation platforms optimizes incentive

R&D structure composed of the User and Product Development Center Innovation Design Center and Testing and Experimental mechanisms consolidates the four foundational pillars: team technology platform and product. The Company deepens industry-

Center. The senior management shall be responsible for research and development and innovation management and leverage a dual- university-research cooperation promotes collaborative R&D across the industrial chain and advances the IPD process to accelerate

driven model of "independent R&D + collaborative innovation" the Company conducts innovation research across multiple fields and the transformation of technological innovation into practical products. In 2025 the Company possessed 3 national-level 9 provincial/

continuously expands the boundaries of technological application. ministerial-level and 6 municipal-level scientific research and technology service platforms.The Company has established and improved an internal management system for technological innovation and implemented

innovation management regulations including the Product Design and Development Control Procedure the Technical Innovation

Project Management Provisions the Product Development Project Management Measures the Enterprise Technical Standardization

Management Provisions and the Annual Incentive Plan for Standards and Norms.Strategy Related to Innovation-Driven

The Company consistently adheres to a market-oriented approach focusing on the development and application of high and new

technologies and new products with research into new materials new processes and technologies with independent intellectual

property rights as key priorities. It has established a new pattern of technological research and product development featuring

"developing one generation reserving one generation and commercializing one generation" continuously strengthening capabilities

in AI technology inverter technology simulation technology freshness preservation technology refrigeration technology and new Technical Research on "Heat Transfer Characteristics of Sealing Components and Performance Technical Research on "Impact Mechanism

material technology to enhance core competitiveness. Enhancement of Anti-Condensation Tubes": Established a CFD heat transfer simulation model of Refrigerator Temperature Fluctuations

on Food Quality and Flavor": Established

a d ete ct i o n m et h o d fo r v o l at i l e f l a v o r

Types of Risk and

Opportunity Risk and Opportunity Description

Impact Impact compounds in food

Severity Timeframe Mitigation Measures

R&D in smart home appliances and energy-

saving technologies requires substantial Shortens product development cycles;

capital investment and market acceptance High Medium fully utilizes academic resources such

can vary creating potential risks of term as universities to address technical

unsuccessful market promotion. challenges;reduce trial-and-error costs.Market risks

As consumer demand for high-end

and personalized products continues Comprehensively implement the

to increase a mismatch between R&D Medium Medium Integrated Product Development (IPD)

direction and market demand may lead to term process to establish a business and

inventory accumulation. customer-oriented R&D workflow.Insufficient patent protection for core

technologies may result in technology High Short term Establish a patent early warning system to proactively avoid infringement risks.Intellectual leakage.property risk International patent barriers (e.g. EU Medium Plan ahead by establishing overseas R&D energy efficiency standards) may restrict Medium centers to accelerate the localization

the global expansion of technologies. term process for technology and production.Driven by the national "Dual Carbon" goals

demand for high-energy-efficiency and Accelerate R&D in low-energy-

Market low-emission products continues to grow. Medium to consumption and environmentally

opportunities High-energy-efficiency and low-energy- Medium Long Term friendly products to strengthen core

consumption products have become core competitiveness.growth drivers. Changmei Living Appliances further deepened strategic cooperation with higher education institutions

28 29Ensuring Compliance Advancing Smart Driving Green and Low-Carbon Embracing Responsibility

Chairman's Board of Directors' About Changhong ESG Cultivating Responsible Manufacturing Renewing Development Protecting Our Connecting Future

Message ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

Innovation Achievements Intellectual Property Protection

Application Honors and Awards

Changhong Meiling has established intellectual property management

T h e h u m a n - s e n s i n g

Leveraging its strong industrial technology systems including the Special Trademark Authorization Management a i r c o n d i t i o n e r j o i n t l y

f o u n d a t i o n a n d p r o f e s s i o n a l e x p e r t i s e developed by Changhong Provisions the Detailed Rules for Trademark Management System

Changhong Meiling continuously promotes the Air Conditioner and higher Implementation the Trademark Management System and the

industrialization of scientific and technological e d u c a t i o n i n s t i t u t i o n s Project Management Measures clearly defining requirements for the

achievements in line with its actual development received certification from creation application protection and management of intellectual

needs and technology application directions China Household Electric property at every stage and controlling product infringement risks

creating diversified value for users and injecting A p p l i a n c e s R e s e a r c h from the project source. The Company encourages active employee

innovative momentum into the high-quality Institute. innovation provides timely patent incentives for generated patents

development of the industry. actively promotes patent transformation and product application

and encourages intellectual property creation to maximize intellectual

property value. During the reporting period the Company did not Changhong Meiling Intellectual Property

experience any infringement litigation.Innovation achievements Management System Certification

The Company innovatively The Company upgraded The Company launched Science and Technology Ethics Governance

applied Changhong Meiling's and launched air an intelligent full-scenario

AI self-optimization technology conditioner series including vaccine solution and Changhong Meiling strictly adheres to technology ethics principles and continuously improves its science and technology ethics

and globally launched the new "Living & Dining Room Pro" successfully delivered governance system. The Company standardizes science and technology ethics risk management throughout the full process of R&D

AI refrigerator product "Frozen and "Super Energy Saving the fully air-cooled low- production and sales regularly carries out science and technology ethics safety education and specialized training and continuously

Fresh 505." Pro" continuously pushing temperature storage unit deepens employees' awareness and understanding of AI ethics. During the reporting period the Company did not record any violations

the boundaries of product with frost-free defrosting of science and technology ethics.performance. technology.Refrigerator and Freezer

Products Air Conditioner Products Biomedical Sector Indicators and Targets Related to Innovation-Driven

In 2025 the Company recorded

Washing Machine Kitchen Appliances and Small R&D investment of

Products Household Appliances 3776 1705 224

The Company launched the The Company developed core RMB 96753.67million valid patents invention patents applied in software copyrights

"Hand-Wash Like · White technology for multi-chamber core business operations

Whale" drum washing direct-injection high-firepower

machine redefining gas stoves which has been

industry cleanliness successfully applied in five end The statistical scope for "valid patents" "invention patents applied in core business operations" and "software copyrights" covers Changhong

standards. products. Meiling Hongmei Intelligent Jiangxi Meiling Mianyang Meiling Ridian Technology Changmei Living Appliances Changhong Air Conditioner

Zhongke Meiling and Zhongshan Changhong.Indicator 2025 Targets Reporting Period Progress During the Reporting Period

R&D investment R&D expense ratio: 3.0% Short term Completed

The Company established overall targets to shorten R&D cycles and improve R&D efficiency. For A+ and A-class products the product

development cycle was shortened by 26% while ensuring that innovation investment precisely matches market demand improving

returns on innovation investment. At the same time through full life-cycle quality management the Company enhanced product

durability and customer satisfaction reducing resource waste caused by quality issues. The Company also controlled the total

number of refrigerator and freezer SKUs focusing on core products reducing redundant models optimizing supply chain efficiency

lowering environmental and management costs associated with production and inventory and continuously strengthening core

Changhong Meiling Frozen Fresh 505 Refrigerator "Hand-Wash Like · White Whale" Drum Washing Machine competitiveness.

30 31Ensuring Compliance Advancing Smart Driving Green and Low-Carbon Embracing Responsibility

Chairman's Board of Directors' About Changhong ESG Cultivating Responsible Manufacturing Renewing Development Protecting Our Connecting Future

Message ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

Accelerating Intelligent Transformation

Guided by its "data strategy" Changhong Meiling focuses on the goals of "comprehensive digitalization" and "comprehensive intelligence"

deepening the establishment of intelligent digital management systems and advancing digital infrastructure implementation. The Company

promotes the deep integration and innovative application of next-generation information technology with manufacturing driving digital

transformation and data business restructuring.Digital Operational Management

Changhong Meiling has deeply applied next-generation information technologies

such as AI and big data. Based on the stable operation of systems including ERP

SCP WMS and PLM and supported by the Doris data warehouse and BI platform

the Company has established a unified big-data intelligent decision-making service

platform. This platform enables: real-time monitoring of key indicators such as

accounts receivable and cash flow; intelligent early warning of operational risks;

formation of a "data-driven" financial governance model covering the full value

chain supporting precise decision-making and continuous cost reduction. The

Company has also achieved: automatic generation of core operational reports on Changhong Meiling obtained the DCMM (Data Changhong Meiling Refrigerator Intelligent Manufacturing Production Changmei Living Appliances "AI Healthy Kitchen" Intelligent Ecosystem

a T+1 basis; near real-time updating of key indicators; and panoramic operational Management Capability Maturity Model) Steady Level Line

insight capabilities. (Level 3) Certification

Digital Transformation Development

In response to the characteristics and challenges of the home appliance

industry Changhong Meiling adheres to an operational philosophy of Honors and Awards

innovation-driven development internal-external integration industrial

collaboration marketing specialization and digital specialization.Centered on users the Company advances along three paths: digital Two Changhong Meil ing cases were

support for business operations; digital value creation; and digital-driven recognized by China A ssociation for

innovation. This enables digitalization of core business processes digital Mechatronics Technology and Application

empowerment of business and products and effective implementation as Typical AI Application Scenarios.of the Company's digital transformation strategy. In 2025 the Company

was recognized as a provincial benchmark enterprise for integrated

development of advanced manufacturing and modern service industries;

the project "Promoting Smart Supply Chain Transformation and

Upgrading Based on 5G + Industrial Internet Technology" was selected for

the 2025 Typical Cases of Manufacturing Digital Transformation. Changhong Air Conditioner Intelligent Control Center

Digital Digital Digital Digital Supply

marketing R&D Manufactur- Chain

ing

Using an intelligent transaction platform as the hub the Based on the IPD (Integrated Product Development) Through deep application of the MES system and industrial Based on the industrial internet platform the Company

Company launched the unified business portal "Xinhongye project management system the Company promoted the big data platform the Company promoted deployment upgraded and promoted the ISRM intelligent supply

APP" and upgraded the user-side smart home application launch of a new product trial production control system of the DQS digital quality management system and the chain management platform building a unified data

further deepening the "C+3 customer order model." AI tools forming an integrated digital R&D and manufacturing carbon asset full life-cycle management platform. This hub. Through continuous optimization of procurement

are systematically applied for scenario-based marketing system with: IPD as the framework; a collaborative forms a digital transformation matrix covering production inventory and logistics decisions using data models

and user acquisition building a digital marketing system. platform as the linkage mechanism; trial production and operations quality control and carbon asset management. the Company established a digital supply chain system

asset management systems as support. covering the entire process.

32 33Ensuring Compliance Advancing Smart Driving Green and Low-Carbon Embracing Responsibility

Chairman's Board of Directors' About Changhong ESG Cultivating Responsible Manufacturing Renewing Development Protecting Our Connecting Future

Message ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

Pursuing Excellence in Quality Management of Impacts Risks and Opportunities Related to Product and Service Safety and Quality

Under the theme of "Quality as the Foundation Users as the Priority" Changhong Meiling fully implements its corporate value of "user- The Company strictly complies with national laws and regulations including the Regulations on Supervision and Administration of

centered" development comprehensively advancing the "Year of Quality Improvement" initiative. Through a sound quality governance Industrial Product Manufacturers' Implementation of Primary Responsibility for Quality Safety. It has formulated internal systems

framework strict internal control standards and full-process quality monitoring the Company is committed to providing customers including the Quality Work Guidelines the Quality Management System the Quality Supervision and Management Standards and the

with safe reliable and high-quality products and services. Comprehensive Quality Risk Management and Control Measures. These systems clarify quality objectives management principles and

supervision mechanisms and implement quality control throughout the entire product life cycle including design manufacturing

sales and other stages. The Company has formulated and decomposed annual quality targets tracking and ensuring their effective

Product Quality Assurance fulfillment on a monthly basis. It has implemented a quality risk management system covering emergency response and closed-loop

rectification to strengthen quality risk prevention. The Company formulated the Procedure for Inspection and Testing to standardize

Governance Related to Product and Service Safety and Quality the processes of product quality inspection and testing. A high-standard quality control system spanning the entire value chain has

been formed with testing capabilities accredited by CNAS the Ministry of Industry and Information Technology Laboratories and

The Company has established a Quality Committee chaired by the President as the highest decision-making body for quality recognized against standards such as CSA BV and ERP. The Company has also built a quality knowledge base deepened its Quality

management responsible for overall quality planning and major decision-making. The Quality Assurance Department as the Month activities and enhanced the professional skills of quality management personnel thereby systematically elevating the overall

execution body is responsible for supervision of system operation and risk control while each business division and subsidiary quality management capability.assumes primary quality responsibility forming a closed-loop quality management mechanism from decision-making to execution.Strategy Related to Product and Service Safety and Quality

The Company has established a "dual-loop driven" model to deepen implementation of its quality strategy. In the internal loop

of system management adhering to the quality policy of "customer first company-wide quality participation source control and

continuous improvement" the Company uses "system management" and "closed-loop resolution" as dual drivers. During product

design and development tools such as FMEA (Failure Mode and Effects Analysis) are introduced to achieve full life-cycle product

management. In the external loop of market environment management the Company adopts advanced standards and continuously

promotes innovation and improvement to ensure product quality and process stability. A policy early-warning mechanism has been

established under which the Standards Committee regularly identifies global energy-efficiency regulations across countries and

regions. Through the PLM (Product Lifecycle Management) system rapid iteration of product parameters is achieved to ensure market

competitiveness.Annual Quality Month activities organized by Zhongke Meiling Changhong Meiling Quality Salon – Quality Improvement Special

Sharing Session

Types of Risk and Impact Impact

Opportunity Risk and Opportunity Description Severity Timeframe Mitigation Measures

Failure in government supervision The Company strengthens policy

Policy and and inspection may result in tracking and research promptly Honors and Awards

Regulatory Factors reputational damage and financial High Short term obtains and analyzes latest regulatory

losses at the corporate level. requirements and ensures product compliance. Changhong Meiling was recognized by the China

The Company uses intelligent digital Association for Quality Inspection as the "2025

technologies to realize automated National ‘Quality Month' Quality Integrity Initiative Insufficient quality inspection during

Operational Risks production may lead to quality High Medium to inspection of key production processes

Enterprise"

incidents or customer complaints. Long Term and has established a digital after-sales platform to respond promptly to Changhong Meiling was recognized by the China

customer quality concerns. Association for Quality Inspection as the "National

Product and Service Quality Integrity Commitment

Government subsidies for trade- The Company develops new high- Enterprise"Policy and in replacement of household Medium to efficiency low-carbon environmentally Regulatory appliances encourage consumer High Long Term friendly products aligned with consumer ISO 9001 Quality Management System CertificationOpportunities demand. preferences to capture policy incentives and expand market share.High-quality products and excellent The Company continuously provides Indicators and Targets Related to Product and Service Safety and Quality

Brand Value services are converted into long-term customer loyalty enhancing brand Medium Long-term high-quality products and services Opportunity while strengthening brand promotion In 2025 the Company achieved: 100% product ex-factory qualification rate; CQC certification across the entire product portfolio; value and increasing corporate to improve brand influence. full completion of product- and service-related target tasks; no major accidents involving product and service safety and quality returns. have occurred. There have been no administrative penalties financial losses or major reputational damage incidents.

34 35Ensuring Compliance Advancing Smart Driving Green and Low-Carbon Embracing Responsibility

Chairman's Board of Directors' About Changhong ESG Cultivating Responsible Manufacturing Renewing Development Protecting Our Connecting Future

Message ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

Product Recall Management Responsible Marketing

The Company has established a product recall system and incorporated recall management into its major quality issue control framework. The Company strictly complies with legal requirements including the Advertising Law of the People's Republic of China and the Anti-

According to the internal Regulations on Quality Issue Handling once a major quality incident occurs the Company immediately initiates Unfair Competition Law of the People's Republic of China. It has formulated the Price Management Measures and established a Pricing

emergency response and recall procedures formulates dedicated action plans and rapidly implements corrective measures to protect Committee to conduct unified supervision and control over product pricing and channel pricing preventing price disorder and unfair

consumer rights and interests. In 2025 product quality remained stable and no product recall events occurred. competition. The Company has also established a strict review mechanism to ensure compliance examination of media publicity and

promotional information. Regular training and communication on responsible marketing are carried out and the Company actively

Product Accessibility Enhancement participates in special compliance training and self-inspection programs for emerging business formats organized by regulatory authorities. In addition the Company strictly implements a customer visit system maintaining regular and effective communication

The Company accurately responds to consumers' growing demands for enhanced interaction experience and personalized with distribution channels and end customers to ensure that all marketing activities are conducted on the basis of truthfulness

functionality by integrating accessibility requirements throughout the entire process of product planning design manufacturing accuracy and respect for consumers. The Company strictly prohibits dissemination of misleading information regarding competing

products and avoids any exaggerated claims concerning environmental or social benefits.and service. Continuous improvements include: optimization of product operation interfaces and functional settings; simplification

of control logic; enhancement of human–machine interaction interfaces; improved readability and comprehensibility of product

instructions. These measures lower usage barriers for users of different age groups and varying levels of product experience improving

suitability for elderly users first-time purchasers and family users. Service Experience Enhancement

Changhong Meiling Builds Smart Living Scenarios for Elderly- and Child-Friendly Use The Company has established a multi-dimensional and normalized customer satisfaction survey system covering end users

distributors and service providers. Through scientific data collection and analysis the Company identifies service shortcomings

For Elderly Users For Maternal and Infant Users and potential customer needs and continuously improves services based on real feedback thereby enhancing overall customer

satisfaction. In 2025 overall satisfaction of end users reached 97.95%; overall distributor satisfaction reached 98.06%; overall service

Based on intelligent products across refrigerators air conditioners The Company has developed a "Triple Assurance" service provider satisfaction reached 98.49%.and washing machines the Company designed a "three-capability suite for maternal and infants encompassing "Worry-Free

integrated care service" featuring conversational interaction Play Effortless Control and Safe & Restful Sleep." Parents

reminder functions and emergency alarm functions. Elderly users can remotely monitor their children via mobile devices and Data Security and Customer Privacy Protection

can operate appliances through voice commands. Home appliance utilize cross-category smart controls—such as soothing a

systems can provide scheduled reminders for daily activities. In crying child through connected appliances or operating the The Company strictly adheres to the information security management principles of "appropriate security focused protection integration of

emergency situations such as falls users can simply say "help me

call the police" enabling remote notification to family members air conditioner via voice commands that require no vocal

technology and management and zoning by area" and "prevention first graded accountability" systematically planning . It has established

response—to prevent startling sleeping infants and mitigate the Information Security and Confidentiality Committee and the Information Security and Confidentiality Office responsible for and activation of monitoring functions thereby providing

safety risks from accidental contact. formulating the overall information security policies and strategic planning. The Company strictly complies with the Cybersecurity Law enhanced safety protection. of the People's Republic of China the Data Security Law of the People's Republic of China and other relevant laws and regulations

and has developed information security management systems including the Information Security and Confidentiality Management

Regulations the Computer Equipment Management Regulations and the Key Business Information Systems and Master Data

Management Regulations. The Company has planned and constructed network security protection systems including the industrial

Building Service Excellence internet security architecture network and information security platforms local cross-platform application-level disaster recovery systems and offsite disaster recovery systems for core data. Desktop terminal data security protection systems and cloud desktop

Changhong Meiling always adheres to a "user-centered" service philosophy and establishes a strategic orientation "focused on management controls have been deployed. Comprehensive technical measures such as encryption identity authentication and

access authorization are applied to ensure the security and availability of classified information throughout its full lifecycle. Employee

customer experience." Through standardized digitalized and human-oriented services the Company deeply integrates responsible training and confidentiality management are reinforced through confidentiality agreements and cybersecurity responsibility

marketing excellent customer experience and data security governance safeguarding consumer rights and continuously agreements enhancing employee security awareness and ensuring the safe and stable operation of information systems. In 2025 the

strengthening brand reputation. Company proactively completed the classification and grading management of industrial internet enterprise cybersecurity as required

by the Ministry of Industry and Information Technology and passed the MLPS 2.0 (Multi-Level Protection Scheme 2.0) assessment

Customer Service Management ensuring that the security management system meets the highest national standards.The Company strictly complies with national laws and regulations such as the Law of the People's Republic of China on the Protection of The Company strictly observes the principles of "lawful legitimate and necessary" and "least privilege" in constructing a rigorous

Consumer Rights and Interests and the Product Quality Law of the People's Republic of China. It has revised and issued core institutional customer privacy protection management system in accordance with the Personal Information Protection Law of the People's Republic

policies including the Quality Management Measures for Refrigeration and Washing Services and established a standardized documentation of China. The Company has improved its management mechanism by formulating systems including the Cybersecurity Management

system including the On-site Service Operation Standards and the Spare Parts Management Guidelines. Through Service Outsourcing Measures and the Notice on Regulating the Use of Confidentiality Markings for China Region Documents. It has incorporated

Agreements signed with service providers containing strict quality clauses the Company ensures consistent internal and external service requirements for data security and privacy protection into the performance appraisal system of relevant positions and regularly

standards. The Company has established specialized departments such as sales to be responsible for customer management. A nationwide conducts data privacy and security training. Multiple technical measures such as data encryption access control and regular auditing

grid-based service network enables digital tracking and management of service nodes standardizes service procedures and facilitates full- have been adopted to implement full life-cycle data management in an all-round way and the Company has conducted audit and

scenario customer access through internet platforms. management over the entire process of critical data protection including prior during and subsequent stages so as to prevent data

abuse or exposure during authorized access to sensitive data. Strict non-disclosure agreements have been signed with third parties

The Company has established a full-process after-sales service management system covering rapid response through closed-loop including suppliers and other business partners to ensure information security throughout its full life cycle. A three-tier emergency

improvement. Based on the Customer Complaint Management Measures a unified complaint collection and hierarchical processing response mechanism for customer privacy incidents has been established defining responsibilities and handling procedures at all

platform has been built forming a standardized process of "response → assessment → resolution → improvement." The Company has also levels. In the event of any information leakage risk emergency procedures are immediately activated and accountability is strictly

launched the ISRM intelligent customer service system powered by large-model AI and a localized knowledge base significantly improving enforced to ensure timely containment of any loss. In 2025 the Company strictly executed full-process controls and no incidents of

service efficiency and customer experience. In 2025 the after-sales service complaint resolution rate reached 100%. customer privacy information leakage occurred throughout the year.

36 37Driving Green and

Low-Carbon

Development

Protecting Our Ecosystem

Changhong Meiling remains committed to green development and actively

fulfills its corporate ecological responsibilities. The Company focuses on four

key areas: climate change response environmental compliance management

resource circularity and green production operations. Through continuous

optimization of environmental practices across the entire operational chain

Changhong Meiling promotes the harmonious coexistence of corporate

development and ecological protection. By taking practical actions the

Company fulfills its sustainability mission and safeguards a healthy ecological

environment.

38 39Ensuring Compliance Advancing Smart Driving Green and Low-Carbon Embracing Responsibility

Chairman's Board of Directors' About Changhong ESG Cultivating Responsible Manufacturing Renewing Development Protecting Our Connecting Future

Message ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

Detailed Climate Governance Responsibilities

Dual Carbon Formulates the Company's dual-carbon targets and implementation plans. Provides guidance

Management and resources to support the Working Group's progress. Supervises and evaluates the

Committee advancement of dual-carbon initiatives and makes decisions on critical matters.Develops assessment plans for dual-carbon projects and establishes corresponding incentive

Combat with Climate Change and penalty mechanisms. Coordinates carbon emission management across departments Dual Carbon

Working Group sets departmental reduction targets and plans promotes the implementation of carbon

reduction projects and the adoption of carbon reduction technologies. Reports regularly to

Changhong Meiling attaches great importance to climate change response and has established a systematic all-dimensional climate the Management Committee on project progress.response framework. The Company coordinates the implementation of dual-carbon initiatives continuously enhances climate risk

management and low-carbon development capabilities and steadily advances its transition toward a green and low-carbon operating Oversees the full lifecycle management of dual-carbon projects including planning schedule

model. Dual Carbon control and quality management. Organizes coordination among relevant departments.Management Office Assists in supervising the progress of dual carbon work evaluates project implementation

effectiveness and reports regularly to the Management Committee.Climate-Related Governance

Company Strictly implement assigned responsibilities and execute dual carbon projects at the

Changhong Meiling has established a climate governance structure centered on the Dual Carbon Management Committee. The Departments operational level.Committee is chaired by the Company President the Dual Carbon Working Group is responsible for project evaluation and incentive

mechanisms and each Company department is responsible for the implementation of dual carbon projects. This ensures that carbon

reduction measures are embedded at all levels of operations and continuously enhances the Company's dual carbon governance

capacity.Climate-Related Strategy

Dual Carbon Management Committee Climate Scenario Analysis and Adaptation Assessment

The Company refers to the climate scenario models in the Intergovernmental Panel on Climate Change Sixth Assessment Report (AR6)

and in combination with changes in the external ecological economic and social operating environment selected the SSP5-8.5 and

Dual Carbon Working Group

SSP1-2.6 pathways to conduct climate scenario analysis. A standardized process has been established covering: determining the scope

Dual Carbon Management Office of climate-related scenario analysis; selecting climate-related scenarios; identifying variables used in scenario analysis; determining

analytical methodologies; conducting climate-related scenario analysis. Through this process the Company identifies potential

Company Departments Daily Management and Promotion business risks and opportunities formulates climate response strategies and ensures that operations remain aligned with the global

of Dual Carbon Projects climate transition.Research on Low-Carbon Basic

Scenario Reference Temperature Range Description

Technologies

A fossil fuel-driven rapid development pathway

relying on traditional energy expansion to

High-Emission IPCC Shared Socioeconomic >4° C above pre-

support high economic growth with ineffective

Scenario Pathway SSP5-8.5 industrial levels

climate governance resulting in a high-emission

scenario with significant warming.A sustainable green development pathway

achieving a low-carbon future by controlling

Low-Emission IPCC Shared Socioeconomic <2° C above pre-

temperature rise within 2° C through inclusive

Scenario Pathway SSP1-2.6 industrial levels

growth clean energy transition and global deep

cooperation.Changhong Meiling Climate Governance Structure

4041

Logistics and Transportation

Marketing Department

Supply Chain

Production Department

R&D DepartmentEnsuring Compliance Advancing Smart Driving Green and Low-Carbon Embracing Responsibility

Chairman's Board of Directors' About Changhong ESG Cultivating Responsible Manufacturing Renewing Development Protecting Our Connecting Future

Address ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

Climate-related Risks and Opportunities

Risk Type Risks Risk Description Financial Impact Impact Timeframe Impact Severity Mitigation Measures

Extreme weather events such as typhoons and heavy rainfall may Increased infrastructure repair costs; Plan production and transportation based on

Risk of rising extreme weather severity damage infrastructure at multiple production bases causing production production downtime and logistics disruptions Short to medium Medium weather early warnings develop emergency

stoppages and logistics interruptions affecting operational continuity. directly reduce revenue. term response plans and conduct drills.Continuous global temperature rise may affect outdoor production Increased energy consumption during Implement heat stress prevention and cooling

Physical risks Risk of rising average temperature operations and increase the difficulty of adapting operations to production raising overall operational costs. Long-term Low measures and avoid outdoor operations during environmental conditions. periods of extreme heat.High water-risk levels at key production bases; prolonged drought may Costs increase due to backup water source Promote water-saving measures replace

Persistent drought risk cause water shortages for production directly affecting production construction and water-saving retrofits; Medium term Medium equipment with water-efficient alternatives

stability. unstable production affects revenue. and establish emergency water storage tanks to secure water supply for production.Policy and legal risks for overseas products Overseas carbon tariffs and carbon footprint regulations may increase Increased compliance costs related to carbon Medium to Long

Monitor carbon-related regulations expand

compliance difficulty for international operations. tariffs and carbon footprint. Term Medium carbon footprint certification and advance the development of high-energy-efficiency products.Mandatory regulatory requirements for existing Pose compliance challenges to the Company's existing product portfolio Significant increases in high-efficiency Increase investment in high-energy-efficiency

products and services compelling a comprehensive upgrade and transformation of both technology R&D and production line retrofit Medium term High technology R&D and production line upgrades products and production lines. costs. and apply for policy subsidies and tax incentives.Uncertainty in low-carbon technology transition; failed R&D or delayed Increased costs for R&D decommissioning old Medium to Long Conduct preliminary technology research to Low-carbon technology R&D risk implementation may cause loss of product competitiveness. equipment and deploying new equipment. Term High optimize R&D pathways and increase applications for low-carbon technology patents.Transfor-

mation risks Changes in consumer behavior Rising demand if not met in a timely manner may cause products to fall Mismatch with market demand may directly Medium to Long

Adjust the product and service portfolio to align

out of market preference. impact revenue. Term High with customer preferences and meet demand for green consumption.Higher procurement costs for low-carbon

Risks associated with low-carbon raw materials Requirements for low-carbon materials increase supply chain selection materials compared to conventional materials Medium to Long

Optimize the supply chain enter into long-term

and adaptation difficulty. raising production costs and reducing profit Term Medium procurement agreements and explore low-cost

margins. low-carbon alternative materials.Establish stakeholder communication

Reputational risks raised by stakeholders Underperformance in addressing expectations may trigger negative Potential revenue decline brand value loss Short Medium external evaluation harming brand image. and higher financing costs. and Long Term Medium

mechanisms improve the quality of ESG

disclosure and strengthen green branding and

communication.Opportunity Type Opportunity Opportunity description Financial Impact Impact Impact Timeframe Severity Mitigation Measures

Driven by global climate transition needs the Company can

Technological Opportunities for breakthroughs in core low- develop key core low-carbon and environmentally friendly Enhance the premium pricing capacity of low carbon products

Increase investment in low-carbon

innovation Medium to Long technology R&D establish dedicated

opportunities carbon home appliance technologies

technologies such as heat pump technology break through driving sales growth of high value-added products and High

industry technical bottlenecks and build differentiated competitive improving the Company's profitability. Term R&D teams and strengthen patent

advantages. deployment.In line with China's dual carbon policy orientation and global Optimize the green home appliance

Market expansion Opportunities for scenario-based deployment climate governance trends launch one-stop green home Explore new business avenues such as

opportunities of green home appliances appliance solutions for diverse scenarios including household and government-enterprise procurement and overseas low

Medium to Long Medium product portfolio develop scenario-

carbon markets fostering new revenue growth drivers. Term based solutions and strengthen the commercial settings. promotion of the green brand.Note: Short term refers to within one year (inclusive) after the end of the Company's sustainability reporting period; medium term refers to one to

five years (inclusive) after the end of the Company's sustainability reporting period; and long term refers to more than five years after the end of the

Company's sustainability reporting period.

42 43Ensuring Compliance Advancing Smart Driving Green and Low-Carbon Embracing Responsibility

Chairman's Board of Directors' About Changhong ESG Cultivating Responsible Manufacturing Renewing Development Protecting Our Connecting Future

Message ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

Climate-Related Impact Risk and Opportunity Management Target Information

Changhong Meiling has established a systematic and science-based process for managing climate-related impacts risks and opportunities together

with a decarbonization pathway to ensure that the Company's strategic planning and production and operations are effectively aligned with climate Scope 1 and Scope 2

change enabling it to respond proactively to challenges and capture development opportunities.Mainly includes natural gas purchased electricity and purchased steam

Management Process Scope covered Direct emissions from diesel wastewater treatment fire extinguishing agents and air-conditioning

* Background analysis of Review the Company's business activities business linkages and external development refrigerants are minor and not included in calculations

the subject matter environment to identify stakeholders affected by climate change and their relevant concerns. For Scope 2 emissions the market-based method is applied

Conduct analysis based on the dual climate scenarios of SSP5-8.5 and SSP1-2.6 to identify Applicable Entity Scope Includes refrigerator freezer washing machine produced at the Hefei base as well as those from * Identification of risks

and opportunities climate-related impacts risks and opportunities under different scenarios and assess the gap

Mianyang Meiling and Jiangxi Meiling.between climate-related targets and the current state of operations. Target Type Quantitative target\Intensity target

Base Year 6.176 tCO e per RMB million of output value

* Risk assessment and Carry out a comprehensive assessment of identified climate-related risks and rank them by level

2

prioritization of impact. Target Year 5.106 tCO2e per RMB million of output value representing a 17.32% reduction in greenhouse gas emissions per RMB million of output value

* Formulation of response Relevant responsible departments carry out targeted risk management formulate dedicated Reduction Target as % of Base 100%

measures response plans and submit them to the dual carbon management committee for review. Year (%)

Reduction Target as % of

Current Year (%) 100%

* Dynamic monitoring The dual carbon management committee regularly monitors the performance of key risk indicators

and management and reports major climate-related risk matters to the Board of Directors on an annual basis. GHG emissions per million yuan of output value stood at 5.106 tCO2e representing a year-on-year Current Period Emissions

decrease of 17.32%

* Information disclosure Regularly disclose externally the identification of climate-related risks and opportunities and the

and reporting implementation of full-process management.Target Method

Decarbonization Pathway

Not yet verified by an independent third party. The Company

Independent Third-Party Verification intends to consider verification through Science Based Targets

* Product * Production and * Carbon management * Green energy * Supply chain system initiative (SBTi) or other third-party organizations.technology manufacturing and control system

Continue to advance Implement energy-saving Build an enterprise- Steadily advance the Work with upstream and

R&D and innovation retrofits of production level intelligent carbon scaled application downstream supply chain

How the Target Is Achieved Refer to climate-related impacts risks and opportunities in energy-saving equipment to reduce emissions management of purchased green partners to carry out management/carbon reduction pathway.technologies consumption and improve platform and implement electricity deploy joint R&D on low-carbon

promote the iterative efficiency deepen the lean a product lifecycle carbon photovoltaic power materials and low-carbon

development of low- production model to enhance footprint accounting generation systems to technologies promote

carbon materials end-to-end operational platform to enable carbon achieve self-supply of the implementation and

and comprehensively efficiency and establish and data to be monitored green electricity and application of low-carbon For intensity targets provide a description of

the method used to calculate carbon intensity Per RMB million of output valueexpand the use of improve a refined energy measured and managed. increase the proportion technological achievements

low-carbon and management system covering of green energy in and build a low-carbon

environmentally all stages of production. production. development ecosystem

friendly packaging. across the supply chain. For Scope 3 targets provide a description of

the method used to calculate Scope 3 emissions No Scope 3 emission targets have been established to

Climate-Related Indicators and Targets covered by the target date

Changhong Meiling has set carbon emission targets to achieve carbon peak for its own operations by 2030 and carbon neutrality for its own

operations by 2060. To ensure the achievement of these long-term goals the Company has also established detailed annual interim emission

targets regularly reviews and tracks progress on climate goals reduces carbon emission intensity year by year and steadily advances emission

reduction plans through measures such as energy-saving equipment retrofits optimized production processes development of low-carbon

products promotion of clean energy and participation in green electricity trading.In 2025 the Company implemented decarbonization measures across multiple dimensions. From product design to supply chain from

production lines to office operations energy-saving and carbon-reduction projects were comprehensively deployed. Particularly in equipment

upgrades the Company achieved notable results: the successful deployment of new energy-efficient equipment including air-source

temperature control machines variable-frequency screw pumps and variable-frequency motors significantly reduced energy consumption

during production and achieved dual breakthroughs in energy saving and carbon reduction. These solid practices not only optimized resource

utilization efficiency through technological innovation but also further strengthened the Company's foundation for green development

effectively advancing its transition toward a green and low-carbon operating model.

44 45Ensuring Compliance Advancing Smart Driving Green and Low-Carbon Embracing Responsibility

Chairman's Board of Directors' About Changhong ESG Cultivating Responsible Manufacturing Renewing Development Protecting Our Connecting Future

Message ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

Annual Greenhouse Gas Emissions Environmental Compliance Management

+27.43% -13.63% -13.17% Guided by green development Changhong Meiling adheres to environmental compliance standards establishing a systematic full-

63196.63 process environmental compliance management system. The Company strengthens risk prevention and pollution control capabilities

62486.27 continuously improves the standardization and refinement of environmental management and actively fulfills its corporate

905.21 53966.44 54871.65 environmental responsibilities.

710.36

Environment Management System

Upholding the principles of green development Changhong Meiling strictly complies with the Environmental Protection Law of the

People's Republic of China the Cleaner Production Promotion Law of the People's Republic of China and other relevant laws and

regulations. The Company has established a three-tier environmental management

system with the Board of Directors as the decision-making tier the Environmental

2024 2025 2024 2025 2024 2025 Management Committee as the management tier and the Environmental Protection

Department and environmental officers in each production unit as the execution tier.Direct GHG emissions (Scope 1) Indirect GHG emissions (Scope 2) Total carbon emissions The Company has also developed management systems including the Environmental

tCO e tCO2e tCO e2 2 Management Manual Environmental Compliance Evaluation Control Procedure and

Internal Environmental Reporting and Disclosure System continuously enhancing

environmental management and ensuring that institutional frameworks and operational

-17.32% guidance cover all aspects of operations. In 2025 the Company's total environmental Note 1: Data cover Changhong Meiling headquarters Mianyang Meiling and Jiangxi Meiling. protection investment amounted to RMB 10.3209 million. The Company and its seven

Note 2: The year-on-year increase in direct GHG emissions (Scope 1) is due to approximately manufacturing subsidiaries have all obtained ISO 14001 Environmental Management

6.18 5.11 a 31% increase in washing machine production and the impact of in-house component System certification. No major environmental incidents regulatory violations or

recycling resulting in higher natural gas consumption. environmental crimes (criminally punishable) occurred during the reporting period. Environmental Management System

Note 3: Greenhouse gases primarily include Scope 1 and Scope 2 emissions i.e. natural Certification

gas purchased electricity and purchased steam. (Direct emissions from diesel wastewater

treatment fire extinguishing agents and air-conditioning refrigerants are minor and not Environmental Risk Assessment and Response

included in calculations.)

Note 4: In 2025 Hefei facilities procured 41 million kWh of green electricity accounting for Changhong Meiling strictly complies with the Emergency Response Law of the People's Republic of China and the National Emergency

2024 2025 approximately 36.80% of total electricity consumption in Hefei base. Response Plan for Environmental Emergencies establishing an emergency management system centered on the “one plan with threesupporting mechanisms" approach. According to internal environmental incident classification standards the Company has set up an

Total Carbon emissions per RMB million Note 5: The 2025 emission factors adopted are 0.5568 kgCO2e/kWh for electricity 110 Emergency Command Headquarters for Environmental Emergencies led by the Company President. Specialized emergency teams are

of output value kgCO2e/GT for steam and 1.8222 kgCO2e/m3 for natural gas. deployed for on-site response emergency monitoring logistics support and information dissemination. The Company has prepared

tCO e/RMB million output value comprehensive plans including the Comprehensive Emergency Response Plan for Environmental Emergencies and established 2

preventive measures covering hazard identification and inspection emergency facility readiness and emergency drills ensuring timely

and effective response throughout the entire process.Environmental Risk Assessment Management Process

Risk and Risk Risk and

Opportunity Assessment Opportunity

Identific and Control Identific

-ation -ationEnvironmental risks and A quantitative “Environmental Risk The “Resilient Supply Chain" Greenopportunities are systematically Map" is used to assess risks from three Partner Program is implemented

identified through multiple dimensions: probability impact and incorporating environmental compliance

channels including regulatory control effectiveness. High-risk points and carbon footprint performance into

scanning lifecycle assessment such as chemical storage facilities are supplier admission and rating criteria.on-site inspections supply subject to enhanced controls including The program coordinates with upstream

chain audits and stakeholder dual-lock and dual-person protocols partners to address environmental risks

interviews. real-time monitoring and regular and identify opportunities for green

emergency drills. innovation.Green Electricity Certificate Transaction Vouchers

46 47Ensuring Compliance Advancing Smart Driving Green and Low-Carbon Embracing Responsibility

Chairman's Board of Directors' About Changhong ESG Cultivating Responsible Manufacturing Renewing Development Protecting Our Connecting Future

Message ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

Environmental Protection Training Types of Risk and Risk and Opportunity Description Impact Impact Opportunity Severity Timeframe Mitigation Measures

Changhong Meiling conducts tiered environmental protection training. Environmental management personnel receive in-depth

interpretations of the latest environmental laws and regulations while frontline employees participate in practical training on the Excessive noise emissions from

Noise Control production equipment may lead to Short to Install sound insulation on production“Position-Specific Environmental Protection Code." The Company also organizes environmental awareness activities such as Risks complaints from surrounding residents High medium equipment workshop doors and windows term and other high-noise sources.“World Environment Day (June 5)" and “Open Day events" inviting employees' family members to visit factory environmental and environmental regulatory penalties.facilities create environmental-themed artwork and participate in the “Green Ideas" initiative to collect employee suggestionsthereby enhancing environmental awareness. In 2025 Changhong Meiling conducted tiered training: management personnel Implementing high-standard pollution

Opportunities prevention measures enhances the Strictly implementing pollution prevention andreceived in-depth briefings on the latest regulations and frontline employees participated in practical training on the “Position- in Pollution Company's green development image Medium Medium to control policies completing environmental Long Term facility upgrades and establishing an industrySpecific Environmental Protection Code." More than 3000 people participated in training sessions throughout the year. Through Prevention helps secure policy incentives and

improves market recognition. benchmark for environmental protection.their involvement in training employees not only contributed ideas for waste reduction classification and other green initiatives

but also achieved an 85% participation rate in 2025 significantly boosting environmental awareness across the workforce.Impacts Risks and Opportunity Management Related to Pollution Prevention and Control

Strengthening Pollution Prevention and Control

The Company defines environmental risk levels and corresponding management processes accurately identifying potential environmental

risks and opportunities. Additionally scenario analysis is applied to evaluate the uncertainty of environmental pollution risks assisting the

Governance Related to Pollution Prevention and Control Company in responding to potential future environmental changes and enhancing overall risk management capability.The Company has established an Environmental Management Committee chaired by the President with the responsible Vice Optimized Management Process

Presidents and relevant department heads as members. A dedicated Environmental Protection Officei s established under the

Committee with comprehensive authority to oversee guide and evaluate all daily environmental protection activities as well as the The Company conducts full-process identification assessment prioritization monitoring and management of pollutant emissions impacts

management of pollution emissions including wastewater waste gas solid waste noise and other pollutants. The Company strictly risks and opportunities. Each year multiple methods are used to systematically identify emissions of wastewater exhaust gas solid waste

complies with the Environmental Protection Law of the People's Republic of China the Air Pollution Prevention and Control Law of (including hazardous waste) and noise across all operational stages. Potential environmental risks and green development opportunities are

the People's Republic of China the Water Pollution Prevention and Control Law of the People's Republic of China and other relevant simultaneously evaluated. A combination of quantitative and qualitative analyses is used for multi-dimensional prioritization with the graded

environmental laws regulations and rules. Core pollution prevention systems including the Environmental Protection Management control list dynamically updated. For key emission sources and risk points continuous monitoring mechanisms are established to enforce

System and Pollutant Emission Control Procedure have been established to create a standardized environmental management environmental management requirements and ensure effective system operation.framework. A three-tier reporting system (“Workshop–Department–Company") is implemented requiring any abnormalenvironmental data to be reported directly to the Environmental Management Committee within one hour. Environmental protection

indicators are incorporated into the quarterly safety and environmental performance assessments. Environmental Risk Grading and Flowchart Illustration

Enterprise Basic Situation Survey and Analysis

Strategy Related to Pollution Prevention and Control

Q<1

The Company prepared Risk Assessment Reports for Environmental Emergencies and applies process analysis statistical methods Calculate the ratio (Q) of the quantity of air (or water) risk

and surveys to monitor and analyze environmental pollution factors providing a solid scientific basis for the Company's green and substances to their critical threshold

sustainable development strategies. Q ≥ 1

Types of Risk and

Opportunity Risk and Opportunity Description

Impact Impact

Severity Timeframe Mitigation Measures Production process and Ratio of air (or water) Sensitivity of receptors

level of risk control for risk substance quantity t o a t m o s p h e r i c ( o r

Failure to regularly clean wastewater Conduct regular wastewater cleaning clearly define procedures for handling anomalies at wastewater atmospheric (or Water) to its critical threshold water) environmental Wastewater systems improper facility operation Medium treatment plants establish chemical dosing records environment (M) (Q) risk (E)Management incorrect chemical dosing or untimely High

Risks water quality monitoring may result in term and verification systems and implement timely

non-compliant wastewater discharge. water quality monitoring and comparative checks according to schedule and regulatory requirements.Non-compliance in kitchen exhaust

treatment facility malfunctions or Perform routine maintenance of air treatment Risk level for sudden atmospheric (or water) environmental incidentExhaust Gas

Management insufficient maintenance and improperly facilities conduct exhaust system inspections

Risks sealed waste paint or adhesive

High Short term and implement source-level emission reduction

containers may cause exhaust gas to and control measures.exceed standards.Store general solid waste outdoors in enclosed Enterprise's risk level for sudden environmental incidents

Improper storage or disposal insufficient areas as required provide employee training on

staff training or use of unqualified waste management engage certified disposal

Solid Waste hazardous waste disposal contractors may Short to contractors and implement waste reduction and

Management cause pollution incidents. High medium control plans.Risks Chemical containers may be returned to term The production department shall centrally collect General Significant Major

suppliers for recycling thereby reducing the recyclable materials (chemical containers) and the

volume of hazardous waste disposal. procurement department shall arrange for their Environmental Risk Environmental Risk Environmental Risk

periodic return to suppliers for recycling.

48 49Ensuring Compliance Advancing Smart Driving Green and Low-Carbon Embracing Responsibility

Chairman's Board of Directors' About Changhong ESG Cultivating Responsible Manufacturing Renewing Development Protecting Our Connecting Future

Message ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

Waste Water Management Types of Waste Main Waste Items Treatments / Disposal Methods

The Company's wastewater mainly includes production and domestic wastewater and adopts a rain-sewage separation system.After treatment key parameters—suspended solids chemical oxygen demand (COD) ammonia nitrogen petroleum substances

biochemical oxygen demand (BOD) and pH—meet discharge standards. The Company has upgraded certain aged pipelines within General Waste Waste cardboard scrap copper

the industrial park to enhance network reliability and optimized the operation of the comprehensive wastewater treatment station to Sorted and delivered to qualified recycling vendors(Recyclable) scrap metal

continuously improve wastewater treatment efficiency.Exhaust Gas Management

The Company's exhaust gas primarily originate from organized and unorganized volatile organic compounds (VOCs) in production

processes boiler combustion exhaust and crushed particulate matter among other sources. During the reporting period the General Waste Domestic waste protective Sent to qualified vendors for incineration; hazardous

Company established its own monitoring plan defining monitoring requirements and commissioning qualified external agencies (Non-Recycl equipment components are decomposed into harmless

to test organized emissions. All monitored air pollutants met regulatory emission standards. Additionally the Company upgraded -able) substances

organic exhaust treatment facilities for washing machines optimized treatment processes to improve removal efficiency strengthened

unorganized emissions control including implementing air recovery and treatment in relevant areas. Some forklifts meeting China

National Stage II standards were retired and fuel-powered forklifts were replaced with electric forklifts enhancing end-of-pipe exhaust

control and reducing tailpipe pollution. Specialized training on exhaust gas management was conducted for personnel covering Spent activated carbon used

equipment operation maintenance safety and environmental regulations to enhance professional capabilities. oily rags waste mineral oil

Hazardous Sent to qualified disposal vendors for landfill or

empty paint cans waste filter

Waste incineration

Noise Control cotton used black material

barrels etc.The Company prioritizes noise management and implements multiple measures to reduce noise pollution. Noise-reducing enclosures

are installed on major noise-generating equipment such as air compressors fans and pumps. Noise-reduction green belts are planted

along factory walls and around sensitive areas. In addition the Company adjusts the timing of certain high-noise operations and

strengthens transport vehicle noise management. During the reporting period factory boundary noise (day/night) complied with the Indicators and Targets Related to Pollution Prevention and Control

Emission Standard for Industrial Enterprises' Environmental Noise at the Boundary.In 2025 Changhong Meiling fully achieved the government-mandated annual total pollutant control targets for COD ammonia

Waste Management nitrogen and VOCs. Emission concentrations from all pollution sources remained consistently better than national and local discharge

The Company strictly complies with the Law of the People's Republic of China on the Prevention and Control of Environmental standards. Factory boundary noise compliance rates reached 100% and monitored noise levels at sensitive points met functional

Pollution by Solid Waste and the National Catalogue of Hazardous Wastes implementing classification and management of general area requirements. The lawful disposal rate of hazardous waste and general industrial solid waste reached 100% successfully fulfilling

and hazardous waste generated during operations. Dedicated storage areas are designated for solid waste with clear labeling in the annual compliance target for solid waste management. No major environmental pollution incidents mass incidents related to

place. Regular reporting ledger maintenance and standardized transfer procedures are conducted in accordance with regulatory environmental issues environmental penalties complaints or illegal dumping events occurred throughout the year.requirements. New sludge drying machines have been installed to reduce sludge generation. Hazardous waste management follows From 2026 to 2028the Company plans to benchmark against stricter international and domestic standards or state-of-the-art

internal regulations including the Solid Waste Classification and Disposal Management Regulations and Hazardous Waste Emergency feasible technologies. Specific measures include consolidating multiple exhaust stacks in certain areas and adopting zeolite rotary

Response Plan through which the Company develops specialized plans maintains management ledgers and implements clear wheel technology to further improve exhaust gas purification. Promoting sludge drying technology will serve as a key focus with a

temporary storage signage. Digital tools are utilized to enable real-time full-process monitoring. Emergency disposal procedures are gradual reduction in sludge generation as the core measure to achieve the "zero landfill" waste management goal and reduce waste

formulated to prevent leakage risks. Additionally the Company cooperates with third-party institutions that hold appropriate disposal generation.qualifications which perform periodic on-site collection and standardized disposal.Resource Recycling

Upholding the concept of circular development Changhong Meiling continues to focus on efficient resource utilization and circular value

creation. The Company integrates green and low-carbon principles throughout resource management processes practicing energy saving

emission reduction and symbiotic circularity. This demonstrates its commitment and responsibility toward sustainable development.Strengthening Energy Utilization

Governance Related to Energy Utilization

The Company has established an Energy Management Leading Group under which the Office for Energy Saving and Emission

Reduction operates. Key personnel from each department and workshop participate to ensure multi-level control. Energy-related

laws industry standards and local regulations are regularly collected and updated. The Energy Management Regulations are compiled

and revised as needed. Annual energy compliance evaluations and performance assessments are conducted with clear focus on

The Company has installed new adhesive-dispensing machine A newly purchased sludge drying machine has been deployed to controlling major energy-consuming equipment improving energy data collection and analysis and implementing energy-saving

environmental protection facilities upgrading from uncontrolled gas reduce sludge volume process upgrades. In 2025 the Company obtained Energy Management System certification.emissions to collected and treated emissions

50 51Ensuring Compliance Advancing Smart Driving Green and Low-Carbon Embracing Responsibility

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Message ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

Strategies Related to Energy Utilization Use Clean Energy

The Company continuously optimizes its energy structure and actively introduces renewable energy. The types of clean energy utilizedThe Company follows the energy management philosophy of “empowerment stimulating internal potential maximizing efficiency mainly include rooftop photovoltaic systems and purchased green electricity. Distributed rooftop photovoltaic power stations wereand continuous cost reduction." Comprehensive and feasible energy management plans and implementation measures are installed on the roofs of multiple buildings in office and residential areas adopting a “self-consumption with surplus electricity feddeveloped. Each business unit is encouraged to fully leverage policy-based incentives and reform benefits exploring energy-saving into the grid" approach. At the same time green electricity is procured on a large scale with a significant proportion of total electricity

potential through management optimization process improvements and technological upgrades to continuously improve energy consumption supplied by green energy advancing practical green and low-carbon development. In 2025 the distributed rooftop

efficiency. PV systems at Changhong Meiling generated 680000 kWh effectively supplementing the industrial park's electricity demand. The

company purchased a total of 47970200 kWh of green electricity.Types of Risk and

Opportunity Risk and Opportunity Description

Impact Impact

Severity Timeframe Mitigation Measures Note 1: Annual generation data for the distributed rooftop PV systems are calculated for Changhong Meiling headquarters.Tighter energy and carbon emission The Company mitigates these risks Note 2: The statistical scope of the total green electricity purchased covers Changhong Meiling Hefei Industrial Hongmei Intelligent Jiangxi Meiling

Policy and policies may result in compliance risks Medium Medium to by strengthening research on energy Mianyang Meiling Changmei Living Appliances Ridian Technology Zhongke Meiling Zhongshan Changhong and Changhong Air Conditioner.Regulatory Risk production restrictions and increased Long Term management policies and optimizing its

costs. energy mix in advance.Energy-Saving Retrofit

Low energy management efficiency Regularly maintain and upgrade

aging equipment and energy price Medium to equipment and introduce intelligent Changhong Meiling conducts in-depth analyses of energy consumption characteristics across the entire production and manufacturing Operational Risks volatility may increase operational High Long Term energy management systems to reduce process. Energy-saving retrofits are implemented through optimization of production processes and improvements in equipment

costs. energy consumption. operating efficiency effectively reducing energy consumption during production.Policy and Government-issued energy-saving Monitor government energy-related

Regulatory subsidies tax incentives and green High Medium to tax reduction and subsidy policies and Zhongshan Changhong Energy-Saving Technical Retrofit Performance

Opportunities finance support policies facilitate the Long Term leverage green financial instruments to Company's low-carbon transition. lower financing costs.Department Category Reduction Ratio of Standard Unit Consumption in Jan–Feb 2026 Compared to Jan–Feb 2025

Optimize the energy structure and

Opportunities reduce costs through externally Medium to All costs for externally supplied energy

Two Key Energy- Electricity 4.34%

from Externally purchased centralized energy and High Long Term must be fully accounted for to ensure a

Consuming

Supplied Energy expand revenue opportunities by balanced energy consumption budget. Equipment Types Natural gas 15.67%

leveraging externally supplied energy.Electricity 7.18%

The transition to green energy can The Company strengthens green Pray Coating

Brand Value enhance the Company's social image branding regularly discloses Natural gas 0.40%

Opportunity strengthen investor confidence and Medium Long-term sustainability reports and enhances

support sustainable development. corporate reputation.Impact Risk and Opportunity Management Related to Energy Utilization

Changhong Meiling attaches great importance to managing energy-related impacts risks and opportunities. The Company conducts

detailed analyses of specific energy-consuming processes operations and equipment to identify risks and potential energy-saving

opportunities. Key energy-intensive equipment and their energy efficiency factors are reviewed. Opportunities for energy performance

improvement are determined based on technical feasibility economic feasibility and potential adverse impacts (safety quality

environment). Corresponding control measures and targets are developed with continuous monitoring of implementation and

effectiveness.Energy Performance Improvement

The Company systematically identifies and manages risks and opportunities in the field of energy management. Specific energy-

consuming processes and equipment are analyzed to identify risks and energy-saving opportunities. Key energy-intensive equipment

and energy efficiency factors are reviewed. Multidimensional analyses are used to determine performance improvement opportunities

control measures and targets are established and implementation results are tracked to optimize energy management.Energy Usage Monitoring

The Company's production and operations primarily consume purchased electricity gasoline diesel natural gas steam and The Company has obtained ISO 50001:2018 Energy The Company's manufacturing plants commissioned air-source mold

renewable energy. During the reporting period the Company monitored similar energy-consuming equipment calculated Management System certification temperature units to replace traditional models achieving electricity savings

relevant parameters and plotted energy consumption curves. Through benchmarking analysis efficiency gaps were identified and

corresponding improvement measures determined.

52 53Ensuring Compliance Advancing Smart Driving Green and Low-Carbon Embracing Responsibility

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Message ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

Changhong Meiling Energy-Saving Technical Retrofit Projects Indicators and Targets Related to Energy Utilization

In 2025 the Company saved RMB 3.129 million in energy costs achieving its energy management-related performance targets.Goal Reporting period Progress During the Reporting Period

In 2025 the energy cost per unit decreased by 10%

Short term Achieved

compared with the previous year.In 2025 the total energy cost decreased by 10% compared

Short term Achieved

with the previous year.Acquisition of variable frequency air Injection molding machine energy-saving A d o p t i o n o f e n h a n ce d va c u u m

compressors resulting in significant project: the original ceramic heating i n s u l a t i o n a n d b l a c k c e r a m i c Note 1: The above energy management improvement targets primarily apply to the production and manufacturing systems Quality Assurance

energy savings and effective reduction method was replaced with infrared h ea t e r s w i t h p l a t e - p e n e t ra t i n g Department and Administration Department.of energy waste. heating saving approximately 40% of the l ight waves effectively reducing

heating energy with a monthly energy cost energy consumption and improving

reduction of RMB 77455 year-on-year. From 2025 to 2027 the Company's energy management plan aims to achieve cumulative energy cost savings of RMB 9 million. To equipment operating efficiency. ensure the realization of this target the Company plans to develop annual energy management plans establish a comprehensive

energy management platform regularly monitor the progress of energy-saving targets carry out energy-saving promotion activities

and enhance energy-saving awareness across all employees.Zhongshan Changhong Energy-Saving Technical Retrofit Projects

Utilization of Water Resources Definition

Changhong Meiling places great emphasis on water resources management.The Company strengthens efficient water use through regular inspection and

maintenance of water facilities comprehensive deployment of water-savingequipment posting of water conservation signage and targeted inspections of “High water-risk level" generallypipelines to detect “leaks overflows and drips". The Company also applies the refers to a relatively high level ofWorld Resources Institute's water risk assessment tools to model water-related risks risk identified in flood and drought

identifying regions such as Hefei Mianyang and Jingdezhen as areas classified with disaster prevention or water-related

a high water-risk level. In response the Company implements targeted measures hazard assessments arising from

including the construction of emergency water storage tanks and enhanced water threats such as rainfall river overflow

conservation awareness campaigns effectively mitigating water resource pressure dam failure or flash floods.and continuously improving water management capabilities.Developing a Circular Economy

Helium Inspection Line 1 (internal) Helium Inspection Line 2 (external) Changhong Meiling actively responds to the national circular economy development plan strictly complies with relevant circular

economy laws and regulations and establishes key objectives including energy saving and emission reduction as well as increasing

the proportion of recyclable and renewable materials in products. The Company prioritizes the use of environmentally friendly

recycled materials and promotes lightweight product packaging;

optimizes stamping molds to improve sheet metal utilization;

and crushes waste cabinet plastics for reuse in sheet production

advancing waste reduction and resource recovery. The Companyalso actively participates in the national “trade-in" program forhousehold appliances recycling used appliances to practice the

circular economy and accelerate the development of a green

circular industry. In 2025 through circular packaging and source

reduction Changhong Meiling achieved packaging material

procurement cost savings of approximately RMB 0.5 million.Recycling and selling scrap metal plastic and cardboard generated

resource recovery revenue of approximately RMB 9.8 million.Replacement of the old D7 steam line with the new D5 Replacement of the old D7 steam line with the new D7 Changhong Air Conditioner participated in the “Trade-In for Newsteam line on Line 6 steam line on Line 8 Appliances" initiative

Packaging material procurement savings and resource recovery revenue are reported on the basis of Changhong Meiling headquarters.

54 55Ensuring Compliance Advancing Smart Driving Green and Low-Carbon Embracing Responsibility

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Message ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

Case Changhong Meiling's Ongoing Promotion of Packaging Material长 C虹irc空u调la参ri与ty" 以旧换新 " 活动 Green Production and Operations

In 2025 the Company adhered to standardized container use aiming to reduce employee handling time and minimize Changhong Meiling remains committed to green development integrating environmental protection principles throughout its entire

natural resource consumption. By encouraging suppliers to replace cardboard boxes with Euro-standard containers or production and operational chain. The Company actively advances green practices fulfills its ecological responsibilities and promotes

returnable carts for all materials the Company gradually achieved a cardboard-free manufacturing process realizing a fully sustainable development.recyclable packaging system.Advancing Green Products

During the reporting period Changhong Air Conditioner's suppliers switched to green packaging and implemented packaging

recycling covering 800000 compressor units and 450000 motor units cumulatively reducing waste by approximately 390 Changhong Meiling follows industry trends of green high-efficiency and energy-saving products placing sustainable development

tons significantly decreasing the generation of solid packaging waste. as a core guiding principle. Adopting a prevention-first approach the Company integrates environmental protection concepts across

the full product lifecycle—including raw material procurement product design manufacturing packaging and logistics and product

recycling—continuously advancing the green upgrading of its products.Raw Material Procurement Green Design

Priority is given to recyclable and renewable Continuously develop high-eff iciency low-energ y-

raw materials all of which comply with consumption products to improve energy efficiency ratios.WEEE RoHS and other relevant regulatory Promote standardization of core components simplifying the

certifications. variety and quantity of parts.Bio-based materials are applied at scale Complete the environmental upgrade of air-conditioning

incorporating degradable and environmentally refrigerants replacing the ozone-depleting R22 with

friendly components such as straw and environmentally friendly R290 propane thereby reducing

bamboo/wood powder effectively reducing greenhouse gas emissions at the source and supporting

plastic consumption. both ozone layer protection and carbon reduction targets

Previously used non-reusable packaging Currently used reusable packaging demonstrating responsibility in green manufacturing.Product Manufacturing Product Packaging

Advance the upgrading and retrofitting of Develop and promote low-carbon environmentally friendly

production line equipment eliminate high- packaging materials to gradually replace non-recyclable

energy-consuming and non-compliant packaging;

devices and implement technological

upgrades on outdated equipment. Reduce Optimize user manuals by providing simplified paper

the consumption of scarce resources such as instructions alongside electronic guides to reduce paper

copper aluminum and tin while improving usage;

the level of clean production.Supplier's previously used non-reusable packaging Fully implement green packaging concepts moving toward Supplier's currently used reusable packaging

Optimize production processes and develop cardboard-free packaging with Euro-standard containers

new surface decoration technologies to achieving a material switching rate of 76% in 2025.replace traditional spraying improving

material recyclability.Product Recycling Production Line Upgrades

Incorporate principles of disassembly In the freezer production park air-source mold temperature

repairability and reusability at the design units replaced traditional temperature control units

stage to enh ance s eco ndar y pro duct achieving a 20% reduction in electricity consumption.utilization.In the refrigerator production park remote-controlled

Standardize material labeling to reduce automatic valves were used to precisely control steam usage

complexity in recycling at the product end- time resulting in a 19.4% year-on-year reduction in steam

of-life stage. consumption in 2025.

56 57Ensuring Compliance Advancing Smart Driving Green and Low-Carbon Embracing Responsibility

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Message ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

Establishing Green

Factories Honors and Awards Owing to its outstanding contributions

in green technology R&D intelligent

Changhong Meiling strictly adheres to national manufactur ing and sustainable

green factor y evaluation standards and d e v e l o p m e n t C h a n g h o n g A i rconstruction requirements systematically Conditioner was awarded the “Greenadvancing the creation of green factories Pioneer Enterprise" title at the “Greenacross all subsidiaries. In 2018 the Company Certification Driving High-Qualitywas successfully approved as a“ National-Level Enterprise Development Conference"Green Factory" establishing a fully integrated hosted by the Zhonghuan United

green framework to strengthen the foundation Certification Center.Changhong Meiling applied Euro-standard container packaging throughout its operations fully implementing green packaging practices. for sustainable development. In 2025 the

Green Manufacturing Grading Cultivation List

recognized Changhong Air Conditioner as a“Provincial-Level Green Factory."Case Changhong Living & Dining Room Pro Shared Air Conditioner Receives Energy-Saving Carbon-Reduction and Environmental Promoting Green Office Practices

Product Certification

Changhong Meiling actively incorporates environmental protection

In May 2025 the Changhong Living & Dining Room Pro Shared Air Conditioner concepts into daily operations focusing on energy and resource

was recognized for its excellent energy-saving performance and low-carbon management in office and residential areas. The Company has

environmental features successfully established a systematic energy management mechanismbeing listed in the “2024 Energy-Saving developed annual energy management plans formed dedicatedCarbon-Reduction and Environmental task forces appointed part-time energy managers with clearly

T e c h n o l o g y P r o d u c t C a t a l o g " defined responsibilities. Through precise electricity-saving

published at the Chinese Association measures comprehensive water conservation initiatives promotion

of Refrigeration Member Conference. of low-carbon office operations and resource efficiency practices The Company has conducted environmental awareness campaigns

The air conditioner employs refrigerant the Company advocates waste sorting and aims to create a green

flow adaptive adjustment technology and low-carbon office and living environment.themed “Lucid Waters and Lush Mountains are Invaluable Assets"to optimize energy use. Its APF value

reaches 5.20 representing a 23.81%

improvement over the Level 1 energy

efficiency standard of 4.2 positioning

Split-type air conditioners and cabinet units produced it as an industry-leading cabinet air Certificate of "2024 China Association

by Changhong Air Conditioner have obtained China conditioner. of Refrigeration Energy-Saving Carbon

Green Building Product certification Reduction and Environmental Protection

Products"

Changhong Air Conditioner implemented integrated structural optimization in the packaging system of its split-type

cabinet products. By applying structural simulation analysis and topology optimization technologies the original

packaging cushioning system was systematically redesigned promoting lightweight reduced and recyclable packaging

materials.The Company carries out campaigns promoting the conservation of Waste sorting bins have been provided in office and residential

paper water and electricity areas to facilitate proper disposal

Protecting Biodiversity

Changhong Meiling and its subsidiaries actively respond to international initiatives including the United Nations Convention on

Biological Diversity and the 2030 Agenda for Sustainable Development. The Company strictly complies with domestic regulations

specifically the China National Biodiversity Conservation Strategy and Action Plan (2023–2030). It conducts in-depth assessments of

the potential impacts of its business activities on biodiversity and the ecological environment and further clarifies environmental

protection responsibilities pollution prevention and control measures and the identification and remediation of environmental

Original Packaging of Split-type Cabinet Units Improved Packaging of Split-type Cabinet Units hazards across the full lifecycle—from product design and development procurement of raw and auxiliary materials and production

processes to product sales.

58 59Embracing

Responsibility

Connecting Better

Lives

Changhong Meiling has established a standardized transparent and securely

controlled sustainable supply chain system fosters a people-centered

workplace environment and actively fulfills its social responsibilities. Through

comprehensive responsible practices the Company is committed to promoting

harmonious coexistence among the enterprise its partners employees and

society.

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Message ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

Building a Responsible Value Chain

Governance Related to Supply Chain Management

The Company has developed a tiered cross-functional matrix organizational structure and has established a dedicated procurement

department responsible for supply chain management clearly defining the scope of responsibilities for each level and team. This

structure covers the entire process of supplier development procurement execution contract fulfillment and ESG management.Changhong Meiling strictly complies with the Regulations on Ensuring Payment of Funds to Small and Medium Enterprises and the

Anti-Unfair Competition Law of the People's Republic of China among other relevant laws. Core systems including the Supplier

Management Basic System and Supplier Risk Management Standard are in place. A dual audit mechanism for supplier qualifications

and capabilities ensures attention to product quality and delivery capacity. Through systematic supplier onboarding evaluation Management of Impacts Risks and Opportunity Related to Supply Chain Management

empowerment and performance assessment ESG requirements are deeply integrated into supplier management promoting

sustainable collaboration along the industrial chain. The Company has established a systematic mechanism for supply chain risk identification risk assessment and risk response. Clear

evaluation and assessment standards are defined for supplier selection auditing appraisal and performance evaluation processes.Strategy Related to Supply Chain Management Suppliers in the database are managed through tiered and differentiated approaches ensuring the continuous stability of the supply

chain.The Company adheres to the principle of "full-chain collaboration end-to-end control and deep ESG integration." Supply chain

management is strengthened by optimizing resource allocation establishing digital platforms to reduce information barriers with

suppliers and leveraging internal advantages to foster harmonious stable and healthy supply chain development.Developed the Material and Service Supplier Management Regulations and Production Material Supplier

Types of Risk and Impact Impact

Risk and Opportunity Description Mitigation Measures Onboarding Management Measures establishing quantitative indicators across five dimensions:

Opportunity Severity Timeframe compliance and qualifications production capacity quality and technical capabilities environmental

Conduct policy research pre-identify performance and social responsibility forming a multi-dimensional assessment standard.Policy and Suppliers failing to meet environmental new suppliers and sign environmental

Regulatory Risk policy requirements may increase the cost of Medium Medium term compliance agreements with core

New suppliers are in principle subject to 100% on-site audits with third-party verification applied to

sourcing new suppliers. suppliers to ensure raw materials meet Supplier ensure compliance and to mitigate the risk of "paper qualifications."

relevant standards. Onboarding

Suppliers are categorized by strategic importance and risk level into strategic core and qualified tiers

Raw material price fluctuations and higher Optimize supply chain management sign with differentiated allocation of cooperation resources and audit frequency.costs for low-carbon materials may increase Medium Medium to long-term procurement agreements with

production costs. Long Term material suppliers and explore low-cost

alternative materials.Supply chain disruptions caused by force Prioritize local suppliers and develop a Developed Production Material Supplier Audit Management Measures and Production Material Supplier

Operational Risks majeure events such as natural disasters (e.g. diversified supplier network avoiding raw Performance Evaluation Management Measures establishing mechanisms for routine assessment

earthquakes floods) or geopolitical conflicts High Medium term materials from conflict or controversial dynamic spot checks and event-triggered audits.may result in higher production costs. regions.An ESG-based assessment framework is applied incorporating environmental (E) social (S) and

Inefficient information flow across the supply

Medium to Promote supply chain digitalization to governance (G) indicators including environmental certifications and labor rights protection.chain may result in inventory accumulation High

Long Term enable real-time information sharing Supplier delivery delays or quality issues. between the Company and its suppliers. Assessment Quarterly ESG dynamic assessments are conducted. Suppliers failing the assessment trigger a

remediation warning process. Suppliers rated non-compliant for the quarter are required to suspend

The application of technologies such as IoT

Technological Continuously optimizes and upgrades supply and rectify within a defined period and those failing annual performance evaluation are removed

innovation AI and blockchain can optimize supply chain Medium to Medium the SAP and ISRM Smart Supply Chain from the supply base.management improving transparency and

opportunities Long Term Collaboration Platforms to enhance

response speed. supply chain management efficiency.Increasing awareness of environmental

Green Transition protection among consumers and Adhere to green procurement policies and Medium to Developed the Supplier Incentive and Exit Regulations specifying trigger conditions such as suppliers

Opportunities Mediumregulators creates opportunities for green Long Term prioritize suppliers with environmental

certifications. inactive for 24 consecutive months high-risk evaluation or poor audit ratings.transformation.Establishing close collaboration with A standardized exit process provides a 1–3 month rectification period; if corrective measures fail the exit

Brand Value A collaborative supply chain platform is

Supplier

upstream and downstream partners can Exit process is initiated concurrently with a backup supplier switch plan to ensure uninterrupted supply.Opportunity enhance supply chain efficiency and Medium Long-term established to share demand forecasts

and production plans.strengthen brand competitiveness. In 2025 the Company completed the exit of 23 suppliers.

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Message ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

Implemented the Material and Service Supplier Management Regulations to establish a three- Indicators and Targets Related to Supply Chain Management

dimensional ESG quantitative evaluation system enabling precise grading and differentiated

management. Guided by the Company's carbon peak by 2030 and carbon neutrality by 2060 strategies Changhong Meiling has established a

full-chain sustainable supply chain management system. In accordance with applicable laws and regulations national standards

Developed a tiered and categorized ESG audit process with "annual supervisory spot audits + annual the relevant Guidelines and based on the Company's actual circumstances specific objectives have been set for supply chain

full-cycle audits" helping suppliers improve ESG management practices. management issues and the implementation of these objectives is continuously monitored.Supplier ESG

Management In 2025 Changhong Meiling conducted on-site supervisory spot audits for 10 suppliers and surveyed 285 During the reporting period the Company achieved its supply chain management-related performance targets.active suppliers in writing regarding ESG management. Certifications among suppliers include ISO 14001

(153 suppliers) ISO 45001 (101 suppliers) and SA8000 (5 suppliers). Reporting Progress During the

Category Goal

Period Reporting Period

In 2025 10 suppliers underwent on-site ESG supervisory audits

Short term Achieved

with 100% completion of document-based reviews.The Company signs Corporate Social Responsibility Agreements with suppliers and provides onboarding Supplier ESG

training for supplier employees entering Changhong Meiling facilities covering the Environmental (E) Management In 2030 50 suppliers underwent on-site ESG supervisory audits Medium to Ongoing follow-up

Social (S) and Governance (G) dimensions establishing a routine communication mechanism. with 100% completion of document-based reviews. Long Term

Diverse supplier training is conducted through a combination of "annual supervisory audits + on-site Localized The number of locally sourced suppliers increased by over 10% Short term Achieved

quality and technical guidance." Approximately 10% of suppliers are trained each year. In 2025 17 procurement year-on-year.Supplier suppliers received training.Communication

and Training The Company has implemented a smart supply chain platform (ISRM system) enabling real-time

sharing of order status production progress inventory levels and quality inspection data with suppliers Leading Industry Development

reducing delivery delays caused by information asymmetry.Changhong Meiling upholds an open cooperative and win-win philosophy viewing industry collaboration as a key driver for both

corporate and sectoral development. The Company actively engages in industry-academia-research (IAR) cooperation participates in

industry exchanges and collaborations treats small and medium-sized enterprises (SMEs) equally and works together with SMEs to

achieve mutual progress.Industry-university-research Cooperation

Changhong Meiling regards collaborative innovation with universities and research institutions as a core driver of high-quality

enterprise development. The Company has established deep partnerships with leading domestic universities forming joint university-

enterprise innovation teams and conducting targeted technological R&D. This approach converts cutting-edge academic research into

enterprise productivity continuously fueling innovation for industry advancement and corporate growth.Distributor Summit hosted

by Zhongke Meiling

2025 Annual Marketing Division

Procurement Manager Training

Conference conducted by the

Company

Higher education institutions in Anhui Province visited Changhong Meiling to conduct enterprise visits and promote industry-academia-research

(IAR) collaboration

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Industry Development Collaboration Empowering Employee Growth

With a cooperative and win-win approach Changhong Meiling actively participates in industry exchanges and collaborations

integrating proactively into the broader industrial ecosystem. By attending industry summits and engaging in sector collaborations the The Company prioritizes talent development places high importance on employee rights protection and continuously enhances

Company strengthens linkages across stakeholders shares technological achievements and explores development pathways. These employee engagement and sense of belonging. By providing a safe and supportive workplace environment and upholding safe

efforts contribute to coordinated upgrading of the home appliance industry fostering symbiotic growth and mutual benefit. production principles the Company ensures the occupational health and safety of all employees.Protecting the Rights and Interests of Employees

Governance Related to Employee Rights Protection

Changhong Meiling is committed to respecting and caring for every employee. The Company strictly complies with relevant national

laws and regulations including the Labor Law of the People's Republic of China the Labor Contract Law of the People's Republic of

China and the Employment Promotion Law of the People's Republic of China. Internal management systems such as the Recruitment

Management System the Corporate Social Responsibility HR Management System and the Employment Information Disclosure

Implementation Rules have been established and continuously refined to safeguard employees' fundamental rights.Strategy Related to Employee Rights Protection

The Company adheres to a recruitment principle of "people-oriented fair and just and job-role matching" and upholds a

Showcasing high-precision products at the RCEP Exhibition Exhibiting products at the IFA Expo in Germany compensation philosophy of "reflecting job value and performance-driven." Changhong Meiling has established a comprehensive

closed-loop system for managing the impacts risks and opportunities related to employee rights. Through systematic scanning

and identification of internal and external strategic factors an initial list of employee-related topics is formed. These topics are then

assessed and prioritized into high medium and low categories with corresponding response strategies and action plans developed.Leading and lagging indicators are set to monitor progress continuously and periodic management reports review implementation

forming a "plan–do–check–act" continuous improvement cycle. This ensures that challenges and opportunities related to employees

are converted into sustainable competitive advantages for the Company.Types of Risk and Impact Impact

Risk and Opportunity Description Mitigation Measures

Opportunity Severity Timeframe

Employee dissatisfaction Establish a performance-driven flexible

with compensation or work compensation system and a regular

Medium Short term

environment may trigger labor communication platform to respond

disputes. promptly to employee concerns.Failure to legally execute labor

Other Risks contracts or fully compensate Strict compliance with laws and

overtime work may result in labor regulations establishment of a full-process

Co-hosting the "AI Family Day" event with XPeng Motors Successfully holding the strategic cooperation meeting on home inspection penalties or collective High Short term employment compliance management

appliances with Wuhan Industry & Trade labor disputes severely damaging system and proactive mitigation of labor-

compliance credibility and related risks to prevent escalation.corporate reputation.Equal Treatment for Small and Medium Enterprises A fair and attractive compensation Develop a combination of variable pay and

and benefits system can stabilize long-term incentive mechanisms offering

Medium

Changhong Meiling strictly complies with the Regulations on Ensuring Payment of Funds to Small and Medium Enterprises and other the core workforce and significantly High personalized and flexible benefit packages term

relevant rules. The Company requires suppliers to prohibit child labor and forced labor ensure timely and full wage payments and enhance employee engagement and linked closely to skills development and Other

avoid arrears to SMEs. Contractual payment terms with SMEs are consistent with those for other enterprises without discrimination productivity. career progression.Opportunities

based on company size and debts are repaid as per contractual agreements. For selected high-quality SMEs the Company provides A strong employer brand can Reduces recruitment costs improves

support such as optimized payment terms and financing recommendations helping SMEs enhance their risk resilience and fostering help attract top talent building a the quality of hired talent strengthens High Long-term

a collaborative supply chain ecosystem involving large medium and small enterprises. As of the reporting period there were no more capable and value-creating team competitiveness and enhances

overdue payments to SMEs. workforce. overall corporate reputation.

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Management of Impacts Risks and Opportunity Related to Employee Rights Protection Performance Feedback and Appeals

The Company publicly discloses performance evaluation rules and results for each department in a timely manner and provides multi-

Diverse Recruitment level feedback channels. If employees have objections to their performance evaluations they may submit written feedback to the

Human Resources Department within the prescribed timeframe. Departments are required to address and respond to appeals within

Changhong Meiling actively conducts both social recruitment and campus recruitment leveraging online and offline channels to attract high- the stipulated period and if necessary convene ad hoc review meetings for resolution. Accountability mechanisms are established

quality talent. Flexible employment positions are also provided. The Company strictly adheres to the Employment Information Disclosure in accordance with the compensation and performance system rules to audit performance assessments incentive allocation and

Implementation Rules ensuring fairness impartiality and transparency across three dimensions: recruitment information interview process and compensation outcomes.hiring outcomes. In 2025 Changhong Meiling recruited a total of 233 new employees through social recruitment including 177 male and 56 female

employees.Deepening the Development of the Industrial Workforce

Compliant Employment

To ensure the development and protection of the rights and interests of its employees the Company has earnestly advanced workforce

In accordance with the recruitment management system the Company provides equal employment opportunities and fair employment construction in accordance with the deployment requirements for industrial reform focusing on skills development career progression

conditions strictly prohibiting employment discrimination. Equal employment and equal pay for equal work are enforced preventing any protection of labor and economic rights and interests platforms for employees to contribute and achieve and workforce expansion.discrimination based on nationality race religion ethnicity gender age disability or marital/childbearing status. A three-tier review mechanism Emphasis is placed on the Company's leading role in establishing an employee development system characterized by sound institutional

is established to prevent the use of child labor and any forms of forced labor are strictly prohibited. Changhong Meiling respects employees from implementation improved competence and guaranteed rights and interests with the aim of cultivating a knowledge-based skilled

diverse cultural ethnic and religious backgrounds fostering an inclusive and diverse workplace environment. During the reporting period no and innovative workforce to support the high-quality advancement of industrial reform. In accordance with the law the Company

incidents of child labor forced labor harassment bullying or intimidation were identified. has established mechanisms for labor dispute mediation and labor protection supervision conducts legal education seminars and

systematically enhances employees' ability to safeguard their rights and the level of occupational health protection. Furthermore

the Company systematically organizes a series of "Diverse and Multi-Skill" competitions promotes "Five Small" innovations and team

building and fosters the spirit of craftsmanship through employee innovation studios. It strictly implements the workers' congress

Remuneration and Benefits system deepens the disclosure of factory affairs standardizes labor contracts and collective negotiation and builds harmonious and

stable labor relations laying a solid foundation for both industrial reform and workforce development.The Company strictly complies with relevant national laws and regulations and has formulated internal compensation systems including

the Compensation Management Measures and Performance Assessment Management Measures to regulate compensation management

distribution and payment enhancing both internal fairness and external competitiveness. Compensation is dynamically adjusted based on job

value evaluation merit-based salary adjustments and technical points systems to ensure alignment with market standards and employee needs.Employee benefits include social insurance and housing fund regular health check-ups employee care programs (gym access holiday benefits

departmental team-building activities) and various allowances (communication allowance high-temperature allowance meal allowance etc.).For dispatched labor employees are enrolled in social insurance and enjoy the same benefits such as health check-ups and holiday allowances.The Company has formulated the Measures for the Administration of Employee Benefits and the Measures for the Administration of Employee

Leave. Employees are entitled to paid annual leave maternity leave parental leave childbirth leave care leave and other entitlements.Democratic Management

Changhong Meiling strictly complies with the Trade Union Law of the People's Republic of China and the Labor Law of the People's Republic The Company conducted university roadshow recruitment activities On-site Presentation of the Company's Westward Expansion Plan

of China establishing a democratic management system centered on the Workers' Congress. The Company has established democratic

management systems including the Workers' Congress Work System and the Notice on Standardizing the Hearing and Resolution of

Employee Opinions by Management at All Levels to institutionalize governance through trade unions and workers' congresses. These

mechanisms standardize the procedures for convening the Workers' Congress ensuring procedural fairness in the exercise of employees'

democratic management rights within the corporate governance structure. Channels for democratic participation are maintained and

made accessible through trade union organizations open management meetings and collective bargaining enabling systematic collection

of employees' opinions and requests. Reasonable suggestions are implemented creating an environment for equitable dialogue and

safeguarding employees' rights to information participation expression and supervision. This ensures that grassroots concerns are fully

recognized and transformed into key drivers for optimizing organizational effectiveness. A dedicated labor relations position is established

to prevent and mediate labor disputes. An employee complaint platform is maintained providing multiple channels from suggestion boxes

trade union representatives functional departments supervisors up to the Chairman of the Company. Collaboration among departments

ensures timely communication negotiation and mediation promoting harmonious labor relations and sustainable enterprise development.Employee Satisfaction Surveys

The Company has established policies including the Employee Handbook and the Implementation Measures for Employee

Satisfaction and Engagement Management to provide channels for surveying employee engagement and satisfaction. Regular surveys

on engagement and satisfaction are conducted to understand employees' genuine perceptions and to enhance the efficiency of

human resource management. In 2025 Changhong Meiling was awarded the Yupao Direct Hiring Star In 2025 the Company was awarded the Liepin Extraordinary Employer

Employer Award Award

68 69Ensuring Compliance Advancing Smart Driving Green and Low-Carbon Embracing Responsibility

Chairman's Board of Directors' About Changhong ESG Cultivating Responsible Manufacturing Renewing Development Protecting Our Connecting Future

Message ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

Indicators and Targets Related to Employee Rights Protection Management of Impacts Risks and Opportunity Related to Employee Training and Development

The Company is committed to establishing an employee rights management system characterized by "compliance assurance fair The Company has established employee training and development management systems including the Talent Development Plan

development health and safety and humanistic care" aiming to achieve full coverage of employee rights protection steadily improve Job Grade Management Measures and Implementation Measures for Professional Skill Level Assessment. It has built six vertical career

employee satisfaction and foster a caring and responsible employment environment. This supports talent retention and team stability. development tracks covering management R&D technical functional marketing and production roles. In addition horizontal career

development tracks have been established to implement a dual-track management model for professional and managerial roles. Each track

Category 2025 Targets Reporting Period Progress During the Reporting Period features multiple promotion tiers to guide employees' career progression and remove barriers to talent development.Turnover rate of Maintain an employee

Short term Achieved (actual: 3.17%)

employees turnover rate below 5% Employee Career Development Channels

The Company actively conducts employee satisfaction surveys using questionnaires focus groups and other methods to gain an in- Vertical Development Channels Horizontal Development Channels

depth understanding of employees' genuine thoughts and demands. The results are analyzed and discussed and any objectively

existing issues are promptly addressed to comprehensively improve employee satisfaction optimize management strategies and Employees in management and professional tracks can choose Horizontal development is divided into cross-

promote mutual growth between the Company and its employees. In 2025 employee satisfaction scored 72.74 and engagement career paths aligned with their personal development plans for track horizontal development and dual-directional

scored 74.85 both showing year-on-year improvement. vertical advancement. development between management and professional

Management-track employees undergo dynamic adjustments tracks.Employee Training and Development through evaluations that combine current incumbents and For cross-track development the Company encourages

candidates' presentations competitive selection democratic employees from various professional tracks to

Governance Related to Employee Training and Development assessments competency evaluations performance scores participate in horizontal positions in line with their

and performance grades. career plans expertise and capabilities.The Company adheres to the principle of "enhancing all employees focusing on key talents" aiming to establish a learning organization and Professional-track employees are evaluated annually through We have established a dual-career development system

systematically build a comprehensive talent development system covering all employees throughout their career lifecycle. By establishing performance assessments technical evaluations and expert that enables lateral mobility between professional

and improving the employee training system implementing tiered and categorized training cooperating with external institutions and appraisals. Results are combined with annual performance and managerial tracks. This allows professional-track

encouraging employees to pursue academic degrees the Company supports employees in enhancing their professional competence and reviews and technical point rankings to determine job grade employees to compete for management positions

skills. Around employee growth a dual career pathway for management and professional expertise has been established ensuring that promotions ensuring a structured vertical growth path. while management-track employees can participate in

employees can access clear promotion ladders and broad development opportunities whether they aspire to be outstanding managers or professional-track evaluations.senior specialists.Strategy Related to Employee Training and Development

The Company has developed a robust training management and career development system to meet employees' professional development

needs and align with the Company's strategic objectives through systematic training plans process and policy guarantees and enriched

resource allocation.Types of Risk and

Opportunity Risk and Opportunity Description

Impact Impact

Severity Timeframe Mitigation Measures

Intensified industry competition Refine the promotion and incentive mechanisms. For key

may lead to the loss of core High Medium employees implement equity incentives and employee

technical personnel. term stock ownership plans to strengthen alignment and deep engagement between employees and the Company. The Company organized new employees to participate in the Xinghuo The Company conducted core team leader training programs

Training Camp

Other Risks

Existing employee skills may not Develop micro-learning modules mapped to critical

match the demands of business positions establishing a three-tier learning system

transformation and technological Medium Medium comprising micro-learning project-based learning and

iteration limiting strategy term in-depth development; implement internal certification

Indicators and Targets Related to Employee Training and Development

implementation and innovation. and qualification assessments and introduce "Skill Allowances" to incentivize priority skill acquisition. Category Goal Reporting Period Progress During the Reporting Period

Transition to green manufacturing In 2025 the total training hours

provides career development Medium to Cultivate employees through the internal training system Short term Achieved

opportunities for professionals skilled Medium Long Term reducing the need for external recruitment. Average training hours amounted to 33 hours

in low-carbon technologies. per employee In 2026 the total training hours

Other Short term Planned for completion in 2026Develop career development roadmaps aligned with amounted to 40 hours

Opportunities Investing in lifelong learning business strategy collaborate with universities and

build future-ready organizational Medium Medium to training institutions to provide course-based training capabilities and strengthen Long Term establish internal knowledge-sharing platforms To ensure the achievement of employee training and development targets in 2026 the Company plans to implement a diversified

human capital barriers. and implement incentive mechanisms for academic training system deliver tiered and categorized training programs adopt a blended online-and-offline learning approach and apply

advancement. training effectiveness evaluation and incentive measures.

70 71Ensuring Compliance Advancing Smart Driving Green and Low-Carbon Embracing Responsibility

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Message ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

Prioritizing Employee Well-being Occupational Health and Safety

Changhong Meiling has established a comprehensive caring and support mechanism conducting regular employee assistance activities. Changhong Meiling consistently places occupational health and production safety at the forefront of its corporate development. The

These include summer heat relief initiatives protection of female employees' rights support for employees facing difficulties and Company comprehensively implements safety production initiatives continuously strengthens the occupational health and safety

commemorative gifts for employees' children entering school demonstrating attentiveness to employees' well-being. The Company management system and ensures employees' occupational health and workplace safety. These efforts foster a safe and harmonious working

organizes diverse cultural and recreational activities strengthens sports and cultural development and enriches employees' extracurricular environment laying a solid foundation for stable operations and high-quality development. In 2025 the Company's safety production

life fostering a respectful supportive and harmonious work environment. These efforts enhance team cohesion and engagement building a control targets were set as follows: zero production safety liability incidents of Category II or above zero production safety liability incidents

virtuous and sustainable ecosystem of "caring for employees improving efficiency promoting development and giving back to employees." with direct economic losses of RMB 300000 or more and zero fire incidents with direct economic losses exceeding RMB 200000. The

In 2025 the Company labor unior continued to strengthen support for employees in difficulty successfully applying for and securing a total of

RMB 488000 in hardship assistance funds from the higher-level labor union distributed to the accounts of 488 employees providing support Company regularly monitors progress against occupational health and safety targets and all annual safety production control targets were

to households under financial stress. fully achieved.The Company strictly complies with the Work Safety Law of the People's Republic of China the

Special Equipment Safety Law of the People's Republic of China the Regulations on Safety Production

Management of Construction Projects and other relevant laws and regulations. Internal management

systems have been formulated and implemented including the Safety Training Management System

Safety Production the Hazard Identification and Safety Risk Classification and Control System and the Stakeholder Safety

Management Management System. A comprehensive safety production framework has been established. The Safety

System Production Committee led by the President serves as the top safety leadership body supported by the

independent Safety and Environmental Protection Department. Subsidiaries and relevant departments

have set up safety leadership teams. Each unit/department has dedicated (or part-time) safety officers

building an enterprise model emphasizing intrinsic safety and scientific development.A systematic mechanism for hazard identification closed-loop remediation and information tracking

has been established. Each unit implements closed-loop hazard management in accordance with the

Company's procedures for hazard registration tracking and closure. Regular inspections and remediation

Preventing Safety are conducted across all operational areas. Focusing on hazard inspection and remediation a graded

Risks hazard tracking risks have been eliminated. Significant safety hazards (A/B level) are subject to company-supervised corrective actions monitored until resolved and formally closed. In 2025 Changhong Meiling

identified a total of 172 hazards including 106 hazardous chemical issues 45 dust explosion issues and 21

basic management issues. By the end of 2025 170 hazards had been rectified achieving a remediation rate

Summer Heat Relief Campaigns Activities for Protecting Female Employees' Rights of 98.84%.A comprehensive system of emergency response plans has been established. Units regularly conduct

fire drills hazardous chemical handling exercises and other on-site incident simulations to assess

preparedness enhance employee safety awareness and strengthen emergency response skills.Safety Emergency The latest Production Safety Accident Emergency Response Plan was filed with the Hefei Economic

Management Development Zone Emergency Management Bureau in December 2024. In 2025 the Company conducted

9 comprehensive drills 52 specialized drills and 82 on-site response exercises with a total participation of

13987 person-times.

Support Initiatives for Employees in Visits and Assistance for Maternal and Infant Care Rooms Employee Reading Rooms

Difficult Circumstances Hospitalized Employees The Company adheres to the principle of "safety first prevention-oriented comprehensive management"

implementing diversified safety culture promotion and education activities. Safety knowledge dissemination

training on safety laws regulations and safety certification and campaigns such as the Ankang Cup Safety

Safety Culture Production Month and Fire Safety Month guide employees to adopt correct safety concepts behavioral habits

Development and working methods to achieve long-term safety production goals. In 2025 the Company organized 16

thematic training sessions for full-time and part-time safety management personnel with approximately 500

participants and 20 fire and security-themed trainings with about 8000 participants.The Company revised the Regulations on Occupational Health and Labor Protection Supervision and

Management strengthening hierarchical control over occupational safety risks. Accredited third-party

institutions were engaged to conduct comprehensive testing of occupational hazard factors including

Occupational noise and chemical concentrations in production areas covering 228 testing points to ensure full coverage.Health Protection In 2025 Changhong Meiling completed 1311 occupational health examinations accurately identifying

44 employees with occupational contraindications who were immediately reassigned according to

established procedures to prevent occupational health risks at the source. No occupational disease cases

were reported throughout the year.The scope of statistics for completed occupational health examinations covers Changhong Meiling headquarters Changhong Air Conditioner

Sports and Cultural Festival Events Changhong Meiling "Open Day" Events and Zhongshan Changhong.

72 73Ensuring Compliance Advancing Smart Driving Green and Low-Carbon Embracing Responsibility

Chairman's Board of Directors' About Changhong ESG Cultivating Responsible Manufacturing Renewing Development Protecting Our Connecting Future

Message ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

2025 Occupational Health Quantitative Targets and Achievement Status Dedicated to Giving Back to Society

Target Category Specific Target Target Value Actual Achievement Key Notes Changhong Meiling upholds a strong sense of corporate citizenship integrating social responsibility deeply into its development Achievement Status strategy. The Company actively advances its social impact across multiple dimensions including rural revitalization community co-

Coverage rate of building and public welfare initiatives demonstrating corporate social value and fulfilling its social responsibilities. In 2025 Mianyang Occupational Health occupational health 100% 100% Achieved Full-cycle coverage including pre-job Examinations on-job and post-job periods Meiling conducted supportive procurement of agricultural and sideline products from regions including Seda and Pingwu in Sichuan examinations Province totaling RMB 106000; Zhongke Meiling established university scholarships with donations of RMB 450000.Occupational Coverage rate of Completed third-party testing at 228

Disease Hazard occupational disease 100% 100% Achieved monitoring points providing data

Testing hazard factor testing support for risk prevention

Covered core emergency scenarios

Emergency drill Number of emergency Not less than 4 4 times Achieved for high-risk positions; significantly drills conducted improved employees' emergency

response capability Promoting rural Building Harmonious Supporting Public Welfare and

revitalization Communities Philanthropy

Number of Achieved 100% hazard rectification

Special Inspections occupational health Not less than 12 12 times Achieved rate ensuring closed-loop hazard Responding proactively to national The Company engages deeply with local The Company commits to social welfare

special inspections management st rateg i e s fo r co m p re h e n s i v e community development uti l iz ing its organizing and participating in activities

rural revitalization the Company resources through financial support and other such as voluntary blood drives book

Incidence rate of Zero occupational leverages industrial assistance and channels to actively participate in community donations and community care visits.Incident Prevention occupational diseases Double Zero diseases zero Achieved Established a full-chain occupational consumer-driven support through cultural events such as the "2025 Lighthouse T h e s e p ro g ra m s exte n d s u p p o r t to and occupational occupational health health protection network

health accidents accidents the "Charity-Based Agricultural Music Night." Employees are encouraged to vulnerable groups including left-behind

Assistance Initiative" promoting participate in volunteer services help maintain children and outdoor laborers shaping

Coverage rate of Significantly improved employees' local economic prosperity and social public order and demonstrate exemplary a positive public image of Changhong Training Coverage occupational health All employees Fully covered Achieved awareness of occupational health progress while injecting corporate civic spirit fully reflecting the Company's Meiling as a socially responsible and training resources into rural development. responsibility as a community co-builder. mission-driven enterprise.The scope of statistics for the 2025 occupational health quantitative targets and achievements covers Changhong Meiling headquarters.Changhong Meiling "Charity-Based Agricultural Assistance Initiative" "2025 Lighthouse Music Night" Community Event

Certified under the Occupational Health Occupational Disease Hazard Testing Occupational Health Examinations

and Safety Management System

Emergency drill for hazardous chemical spill Safety knowledge training Safety knowledge competition "Road Safety Guidance" Volunteer "Co-building the Union Happiness Station" Book Donation

Activity Charity Initiative

74 75Ensuring Compliance Advancing Smart Driving Green and Low-Carbon Embracing Responsibility

Chairman's Board of Directors' About Changhong ESG Cultivating Responsible Manufacturing Renewing Development Protecting Our Connecting Future

Message ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

Future Prospects

In 2026 Changhong Meiling will remain firmly anchored to the goal of high-quality development

accelerating digital transformation and intelligent upgrades deepening green technology

innovation and end-to-end low-carbon practices. Leveraging technological capabilities to drive

industrial advancement toward greener solutions the Company will strengthen talent pipelines

and stakeholder collaboration building a modern enterprise model that is resilient people-

oriented and value-creating. Changhong Meiling is committed to fulfilling its ESG promises and

striving to write a new chapter in the Company's sustainable development journey.

76 77Ensuring Compliance Advancing Smart Driving Green and Low-Carbon Embracing Responsibility

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Message ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

Appendix Dimension Indicator Unit 2025

——Self-generated electricity (PV residual heat wind) Ten thousand kWh 570.29

Total gasoline consumption Ton 10.09

Key Performance Table Diesel consumption Ton 106.68

Natural gas consumption (total) 10000 m3 271.32

Heat consumption million kJ 29937.26

Dimension Indicator Unit 2025

Total comprehensive energy consumption tce 30185.01

Environmental

Investment Total environmental protection investment RMB 10000 1032.09 Proportion of renewable energy in total energy

consumption % 18.24

Direct greenhouse gas emissions (Scope 1) tCO2e 905.21

Total water consumption m3 1335122.04

Greenhouse Gas Indirect greenhouse gas emissions (Scope 2) tCO2e 53966.44

Water saved m3Emissions -34899.17 Total greenhouse gas emissions tCO2e 54871.65 Water Resources

Recycled/reused water m3 493251.63

Total Carbon emissions per RMB million of output value tCO2e/RMB million output value 5.11 Usage

Water consumption per RMB million revenue m3 / RMB million revenue 43.91

Industrial wastewater discharge Ton 544648.59

Proportion of recycled water in total water usage % 36.94

Domestic wastewater discharge Ton 202599.10

Renewable materials consumption Ton 800417.56

Total wastewater discharge Ton 747247.69 Circular Economy

Wastewater Total materials used in production and packaging Ton 959981.98

Discharge Chemical Oxygen Demand (COD) emissions Ton 43.01 Product Quality

Biochemical Oxygen Demand (BOD) emissions Ton 17.18 Management Product ex-factory qualification rate % 100.00

Ammonia nitrogen (NH3-N) emissions Ton 6.07 Number of product and service complaints Item 1690.00

Total phosphorus emissions Ton 0.63 Customer complaint resolution rate % 100.00

Exhaust Gas Emissions Ton 13.68 Complaint response rate % 100.00

Exhaust gas emission intensity t / RMB 10000 revenue 0.0000045 Customer Service

and Rights Average complaint response time Hour 0.5

Waste Gas

Emissions Particulate matter (PM) emissions Ton 0.53 Average complaint resolution time Hour 24

Nitrogen oxides emissions Ton 0.36 Domestic customer satisfaction % 98.92

Volatile organic compounds (VOCs) emissions Ton 12.01 International customer satisfaction % 98.80

Harmful waste generation Ton 653.87 Number of data security / customer privacy training

Waste Disposal Times 44.00 sessions

Harmless waste generation Ton 32569.58

Training coverage of data security / customer privacy

Total energy consumption per RMB million revenue tce / RMB million revenue 0.96 Data Security training sessions % 93

Energy

Consumption Total electricity consumption Ten thousand kWh 19955.33 Average training duration per person of data security / Hour 1.5

——Green electricity purchased Ten thousand kWh 4797.02 customer privacy training sessions

78 79Ensuring Compliance Advancing Smart Driving Green and Low-Carbon Embracing Responsibility

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Message ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

Dimension Indicator Unit 2025 Dimension Indicator Unit 2025

Total number of suppliers at the end of the reporting Total investment in employee training RMB 10000 194.12

period / 1602.00 Development and

Training Total employee training hours Hour 50754.00

Localization rate of suppliers % 44.53

Supplier Employee training coverage rate % 100.00

Management Number of suppliers with sustainability certifications / 698.00

Occupational Employee work injury insurance investment RMB 10000 647.78

Proportion of suppliers with sustainability certifications % 52.28 Health Employee work injury insurance coverage rate % 100.00

Amount of responsible (green) procurement RMB 10000 1162972.81

Rural Revitalization Investment in rural revitalization RMB 10000 253.28

RD investment amount RMB 10000 96753.67

Technology Charitable donation amount RMB 10000 48.50

Innovation Number of RD personnel Person 1633.00

Management Social Welfare Number of volunteer activities Session 20.00

Proportion of R&D personnel % 11.64 Initiative Employee participation in volunteer activities Person-time 1229.00

Number of patent applications filed Item 1073.00

Total hours of voluntary activities Hour 2685.50

Number of invention patents granted Item 219.00

Number of Company Directors Person 9.00

Number of utility model patents granted Item 520.00

Number of Independent Directors Person 3.00

Intellectual

Property Protection Number of design patents granted Item 94.00 Percentage of Independent Directors on the Board % 33.33

Total valid patents during reporting period Item 3776.00

Number of Shareholders' General Meetings Times 4.00

Number of invention patents applied to main business Item 1705.00 Company Overview

N u m b e r o f i t e m s d i s c u s s e d a n d r e v i e w e d a t

Nos. 26.00

Software copyrights Item 224.00 Shareholders' General Meetings

Total employees Person 14028.00 Number of Board Meetings Times 15.00

Number of female employees Person 4113.00 Number of items discussed and reviewed at Board

Meetings Nos. 106.00

Number of production personnel Person 7094.00

Total Number of employees participating in anti-

Number of sales personnel Person 4031.00 commercial bribery and anti-corruption Training Person 3367.00

Integrity Building

Number of technical personnel Person 1985.00 Percentage of employees participating in anti-

%74.00

Number of finance personnel Person 322.00 commercial bribery and anti-corruption Training

Number of administrative personnel Person 596.00 Tota l N u m b e r o f Sta n d a rd i ze d G o v e r n a n ce &

Compliance Training Sessions Times 11.00

Employment and

Composition Labor contract execution rate % 100.00 Standardized Total Durat ion of Standardized Governance &

Hour 15.00

Turnover rate of employees during reporting period % 3.17 Governance Compliance Training

Number of employees with college education Person 10261.00 Total Number of Part ic ipants in Standardized

Governance & Compliance Training Person 2024.00

Number of employees with bachelor's degree Person 3460.00

Number of employees with master's degrees or higher Person 307.00

Proportion of female executives among total executives % 28.57

Number of Female Senior Management Personnel Person 2.00

Social insurance coverage rate % 100.00

80 81Ensuring Compliance Advancing Smart Driving Green and Low-Carbon Embracing Responsibility

Chairman's Board of Directors' About Changhong ESG Cultivating Responsible Manufacturing Renewing Development Protecting Our Connecting Future

Message ESG Statement Meiling Management Business Better Services Ecosystem Better Lives Prospects Appendix

Index of Indicators

Title Subtitle Guidelines

Report Preparation Notes T6

Chairman's Message ／

Board of Directors' ESG Statement T4

About Changhong Meiling ／

Sustainability Strategy T2

Sustainability Governance T12、T14、T15、T16、T17、T18、T19、T51

ESG Management Materiality Assessment T5、T10、T11

Due Diligence and Stakeholder

Communication T9、T52、T53

Improvement of Company

Governance T12、T51

Building a Robust Risk Control

Ensuring ComplianceCultivating Defense Line T51

Responsible Business

Ensuring Information

Transparency T44、T53

Adhering to Business Ethics T54、T55、T56

Stimulating Innovation Vitality T41、T42、T43

Accelerating Intelligent

Advancing Smart Manufacturing Transformation T42

Renewing Better Services

Pursuing Excellence in Quality T47

Building Service Excellence T48

Combat with Climate Change T8、T21、T22、T23、T24、T25、T26、T27、T28

Environmental Compliance

Driving Green and Low-Carbon Management T29、T30、T31、T33

DevelopmentProtecting Our

Ecosystem Resource Recycling T34、T35、T36、T37

Green Production and

Operations T20、T32

Building a Responsible Value

Chain T45

Embracing Responsibility Connecting Leading Industry Development T46

Better Lives Empowering Employee Growth T49、T50

Dedicated to Giving Back to

Society T38、T39、T40

Future Prospects — ／

Appendix － T57

82