2024 Environmental Social and

Governance (ESG) Report

Changhong Meiling Co. Ltd.Dedication Responsibility Co-Creation and Sharing

Company?s Internet Website: www.meiling.com

Tel: 0551-62219021

Offices add：No. 2163 Lianhua Road Economic and Technology Development Zone HefeiContentsCONTENTS Deepening ESG

Governance Capabilities Social Responsibility

Sustainable Development Governance Framework 23 Product and Service Safety and Quality 79

Organizational Structure and Scope of Responsibilities 23 Data Security and Customer Privacy Protection 92

Report Preparation Notes About Changhong Meiling Sustainable Development Mechanism Construction 24 Win-Win Cooperation 95

Introduction 1 ESG Capability Enhancement 25 Innovation-Driven Development 102

Preparation Basis 1 Corporate Profile 7 Sustainable Development Strategy 25 Employees 118

Scope 1 Corporate Culture 7 Sustainable Development Risk Management 26 Social Responsibility 154

Data Description 2 Corporate Development Course 9 Sustainable Development Indicators and Goals 28

Definitions 2 Business Overview 11

Report Access and Feedback 2 Meiling 2024 Milestones 12

Annual Honors 13

Chairman’s Message 3

Board of Directors’ ESG Statement 4 Environment Governance

Climate Change Response 31 Corporate Governance Mechanisms 163

Materiality Assessment Environmental Compliance Management 45 Business Ethics and Anti-Corruption 179

Strengthening Pollution Prevention and Control 47 Anti-Unfair Competition 182

Dual Materiality Analysis 17 Strengthening Energy Management 57

Due Diligence and Stakeholder Engagemen 17 Water Resource Utilization 66

Conclusions of Materiality Analysis 19 Developing the Circular Economy 68

Ecological and Biodiversity 70

ConservationAdvancing Green Manufacturing 71

Performance Table 183

Report Index 188Report Chairman’s About Changhong Deepening ESG

Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index

Report Preparation Notes

IntroductionThis report is the second Environmental Social and Governance (ESG) Report (referred to as the “ESG Data DescriptionReport” or “this Report”) released by Changhong Meiling Co. Ltd. Prepared in accordance with the The data used in this Report is sourced from the Company’s operational raw data publicly available government

principles of objectivity standardization transparency and comprehensiveness this Report provides a detailed data annual financial data internal statistical reports and other relevant sources. Financial data in this Report is

disclosure of the Company’s practices and performance in environmental social and governance aspects for denominated in RMB. In case of any discrepancies with the financial report the financial report shall prevail.the year 2024.Definitions

Preparation Basis

Terms to be defined Definition

Guiding Rules

Changhong Meiling Company

◆ Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange — Sustainability Report The Company Our Company We Changhong Meiling Co. Ltd.(Trial) issued by the Shenzhen Stock Exchange (hereinafter referred to as the “ Guidelines”)

Changhong Air Conditioner Sichuan Changhong Air Conditioner Co. Ltd.◆ Self-Regulatory Guidance No. 3 for Companies Listed on Shenzhen Stock Exchange — Preparation of

Sustainability Report issued by the Shenzhen Stock Exchange Zhongshan Changhong Zhongshan Changhong Electric Co. Ltd.Reference Rules Jiangxi Meiling Jiangxi Meiling Electric Appliance Co. Ltd.◆ Guiding Opinions on the Fulfillment of Social Responsibility by Central Enterprises issued by the State-owned Mianyang Meiling Mianyang Meiling Refrigeration Co. Ltd.Assets Supervision and Administration Commission of the State Council

◆ China Corporate Sustainability Reporting Guide (CASS-ESG 6.0) by the Chinese Academy of Social Sciences Ridian Technology Changhong Meiling Ridian Technology Co. Ltd.◆ Sustainability Reporting Standards (GRI Standards 2021) by the Global Reporting Initiative (GRI) Zhongke Meiling Zhongke Meiling Cryogenic Technology Co. Ltd.◆ United Nations Sustainable Development Goals 2030 (SDGs)

Changmei Life Appliances Hefei Changhong Meiling Life Appliances Co. Ltd.◆ Sustainability Accounting Standards Board (SASB) Standards

◆ International Financial Reporting Sustainability Disclosure Standards (IFRS) S1—General Requirements for Hefei Industry Hefei Changhong Industry Co. Ltd.Disclosure of Sustainability-related Financial Information and IFRS S2—Climate-related Disclosures by the

Hongmei Intelligent Sichuan Hongmei Intelligent Technology Co. Ltd

International Sustainability Standards Board (ISSB)

Scope Report Access and Feedback

The reporting period of this Report is from January 1 2024 to December 31 2024 (referred to as the This Report is published in electronic format and can be accessed and downloaded from the

“Reporting Period”). To enhance the comparability and forward-looking nature of this Report some Shenzhen Stock Exchange website (http://www.szse.cn) or the Cninfo website (http://www.cninfo.content appropriately references previous years or includes forward-looking descriptions. The preparation of com.cn). If you have any comments or suggestions regarding this Report or the Company’s social

this Report covers Changhong Meiling and its subsidiaries. Unless otherwise specified the statistical scope

responsibility performance please email us at info@meiling.com or call 0551-62219021.aligns with the annual report.

1 2Report Chairman’s About Changhong Deepening ESG

Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index

Chairman’s As time marches forward a new chapter begins. class energy-efficient refrigerators reduced we steadfastly fulfill our responsibilities as a

Message The year 2024 marks a critical juncture in achieving energy consumption by 30%. The application of state-owned enterprise contributing to rural the goals outlined in the 14th Five-Year Plan a “Blue Oxygen Residue Removal Technology” revitalization with the “Meiling Strength”. Board of Directors’

year of perseverance where opportunities and in our products reduces detergent usage and

challenges coexist. Anchored firmly in the primary minimizes environmental pollution. The use of Laying a Solid Foundation for Development ESG Statement

task of high-quality development we adhere to bio-based materials and eco-friendly packaging t h r o u g h C o r p o ra t e G o v e r n a n ce F o r g i n gthe business philosophy of “value orientation further demonstrates the practical impact of Sustainable Competitiveness with SystematicThe Board of Directors of Changhong Meilingand comprehensive efficiency improvement” our “Green Intelligent Manufacturing Chain”. Thinking

serves as the highest decision-making body

steadfastly advancing digital and intelligent From sustainable material substitution at the We always regard compliance governance as

for the Company’s ESG matters responsible

transformation. We actively explore pathways for raw material stage to resource recycling in the cornerstone of sustainable development.for integrating ESG considerations into

ESG to empower business growth intensify efforts production we are shaping the green DNA of the In 2024 we strengthened the construction

corporate governance and operationalin technological innovation and foster green home appliance industry through technological and standardized operation of the “Threedecision-making processes. The Board placesproduction thereby contributing to the formation innovation. Committees” improved the ESG management

significant emphasis on ESG initiatives. In

and development of new productive forces. framework enhanced internal control systems

February 2024 the Company established

Deeply embedding the concept of sustainable Demonstrating Corporate Warmth through mitigated risks focused on enhancing corporate

the ESG Management Committee chaired

development into our strategic core we have Social Responsibility Building a Development value prioritized shareholder returns managed

by the Chairman of the Board to study and

delivered a high-quality development report Community with a People-Centric Philosophy investor relations effectively and improved the

formulate the Company’s ESG strategic plans

card across three dimensions: environmental Employees are the Company’s most valuable quality of information disclosure.and objectives build a management system

responsibility social value creation and corporate asset. We always prioritize the realization and Those who plan wisely go far and those who act

evaluate and review ESG strategies risks and

governance innovation. protection of the interests of all employees decisively succeed. The year 2025 will not only

implementation and audit the ESG report

s a feg u a rd i n g t h e i r r i g h ts a n d p ro m ot i n g mark the conclusion of the 14th Five-Year Plan but

before submitting it to the Board for approval.Writing a Green Chapter amidst Clear Waters and their value realization and comprehensive also the strategic planning phase for the 15th Five-

C h a n g h o n g M e i l i n g h i g h l y va l u e s t h e

Verdant Mountains Empowering Eco-Friendly development. In 2024 Changhong Meiling’s Year Plan. The Company will remain relentless in

expectations of stakeholders regarding ESG

Manufacturing with Technology employee turnover rate was controlled at 2.98% its pursuit of excellence deepening sustainable

matters. Each year the Company conducts

T h e C o m pa n y re m a i n s u n wa v e r i n g i n i ts and the proportion of female managers increased operational capabilities advancing digital

stakeholder engagement activities tailored

commitment to the “3060” dual-carbon to 16.98%. On the supply chain front we have and intelligent transformation and promoting

to industry characteristics and operational

strategy building a green management system established a robust supplier management green technological innovation. We will lead the

priorities to assess prioritize and filter ESG

that covers the entire product lifecycle. During system paying close attention to suppliers’ industry in green and low-carbon development

issues ensuring timely adjustments and

the reporting period we actively explored and sustainability performance and proactively through technological innovation build a high-

identification of material ESG topics. The mostestablished “five major carbon reduction conducting training activities to build a value quality enterprise development echelon andrecent stakeholder engagement activity waspathways” improving energy efficiency. As ecosystem of shared responsibility. For consumers strive to elevate Changhong Meiling’s high-

conducted in January 2025 and the Board has

a result our total annual carbon emissions we uphold the “zero-distance” service promise quality development to new heights. With

reviewed and confirmed the findings.decreased by 7.88% and carbon emissions per safeguarding millions of households—with over outstanding performance we will create greater

million yuan of output value dropped sharply by 10000 service outlets and 20000 engineers value for the Company and continue to fulfill our

13.89%. Driven by technological innovation we nationwide providing 24-hour response achieving corporate social responsibilities in the practice of

launched the world’s first inverter commercial a comprehensive customer satisfaction rate of sustainable development.kitchen refrigerator which can save up to over 96%. We continuously bring healthier and

45% in energy consumption. Our super-first- more scientific lifestyles to our users. Additionally

3 4About Changhong Meiling

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Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index

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 (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 the first company in Anhui Province to have both A-shares

and B-shares. In the same year it was recognized as one of the SZSE’s top

ten high-performing listed companies. Over the past 40 years ChanghongMeiling has consistently adhered to the principle of “Independent InnovationChinese Creation” leveraging cutting-edge technology innovative products

and fresh services to provide better life solutions for millions of households

worldwide.Corporate Culture

Core Values

Dedication Responsibility

Co-Creation and Sharing

Mission

Let Better Days Come

Spirit

Hard Work Pioneering Perseverance

and Excellence

Code of Conduct

A c c o u n t a b i l i t y A m b i t i o n

Innovation and Collaboration

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Corporate

Development

Course 1993 2005 2011

The Company’s A-shares were successfully 1997 Sichuan Changhong Electric Co. Ltd. and the Companylisted on the Shenzhen Stock Exchange The Company established a production The Company was awarded the title of “China underwent a strategic restructuring marking themaking it the first listed company in Anhui base in Pakistan for refrigerator projects Well-Known Trademark”. beginning of the “Black-and-White Alliance”.Province. expanding into the South Asian market.

19831996200220092015The Company was officially established transitioning The Company’s B-shares were successfully listed on the The Company in collaboration with the Technical T h e C o m p a n y a c q u i r e d “ C h a n g h o n g A i r T h e C o m p a n y a c q u i r e dfrom Hefei Second Light Industry Machinery Factory Shenzhen Stock Exchange making it the first company in Institute of Physics and Chemistry of the Chinese Conditioner” and “Zhongshan Changhong” Changhong Ridian entering

(the predecessor of Meiling) to the production of Anhui Province to have both A-shares and B-shares. In the Academy of Sciences established Zhongke Meiling entering the air conditioner sector and laying the t h e s m a l l h o m e a p p l i a n ce

household refrigerators embarking on a 40-year same year it was recognized as one of the SZSE’s top becoming one of the earliest high-tech enterprises in foundation for further growth. industry thereby completing

journey in professional refrigeration. ten high-performing listed companies. China to focus on ultra-low temperature storage in the its comprehensive white goods

biomedical field. industrial layout.

20242023202220202019201820172016

T h e C o m p a n y g l o b a l l y D u r i n g t h e a n n i v e r s a r y Zhongke Meiling successfully The Company established The Company launched the The Company invested 400 The Company introduced T h e C o m p a n y l a u n c h e d t h e

launched the “Blue Oxygen celebration Meiling unveiled listed on the Beijing Stock a s u b s i d i a r y fo r h o m e industr y’s first fully-thin mil l ion yuan to bui ld the t h e M - Fr e s h r e f r i g e ra t o r “Zhihuijia Ecosystem” initiative. InHand-Washing” washing its new brand proposition: Exchange setting a record for appliances accelerating refrigerator ushering in the Meiling Hefei Washing Machine equipped with water molecule the same year its subsidiary Zhongkemachine. In September it “ B e a u t i f u l C h i n a F r e s h the fastest listing and approval the development of its era of ultra-thin refrigerators. Intelligent Industrial Park with activation and preservation M e i l i n g wa s l i ste d o n t h e N e wreleased its first Zhihuijia AI Meiling”. proces s in th e h istor y of major kitchen appliances an annual production capacity technolog y winning two Third Board officially entering the

model shaping the future of the exchange taking only and small home appliance of 2 million units. world records and sparking a biomedical industry. The Company

intelligent living. 111 days from application businesses. preservation revolution in the also invested in the construction of

acceptance to listing. industry. an Indonesian manufacturing base.

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Business Overview Meiling 2024 Milestones

Changhong Meiling is a leading domestic white household appliance manufacturer and service provider. Over

more than 40 years of development the Company has evolved from a single refrigerator product line to a

diversified portfolio that includes refrigerators (and freezers) air conditioners washing machines major kitchen The Company launched the new M-Fresh refrigerator in the

appliances small home appliances and biomedical low-temperature storage equipment. Currently the company industry featuring an upgraded long-lasting fresh-keeping

operates domestic manufacturing bases in Hefei Mianyang Jingdezhen and Zhongshan along with an overseas 2024 technology. It also took the lead in responding to the national

manufacturing base in Indonesia. The "Meiling" brand has been listed as one of China's most valuable brands. March trade-in initiative by launching a large-scale public welfare

The Company remains committed to “Independent Innovation Intelligent Manufacturing in China” steadfastly promotion campaign titled “Trade-In Meiling Fresh Action”

focusing on the home appliance industry and meticulously building its core competitiveness through technological across the country.and product innovation. With a cutting-edge R&D team and advanced technological expertise Changhong Meiling

has achieved breakthroughs in various fields including inverter technology smart technology fresh-keeping thin-

wall design odor removal energy-saving air cooling deep freezing simulation ultra-thin design washing and

fabric care. The Company boasts a national-level enterprise technology center a national-level industrial designcenter a national-level postdoctoral research station a 5G industrial internet innovation application laboratory The Company globally debuted the “Blue Oxygen Hand-2024and the first RoHS public testing center in Anhui Province. It also established the Anhui Province Green Energy- Washing” washing machine filling a technological gap in the

saving Refrigerator Engineering Technology Research Center the Anhui Province Energy Conservation and Fresh- April sector.keeping Green Refrigerator Engineering Research Center and the Anhui Intelligent Home Appliance Manufacturing

Innovation Center. Through continuous innovation the Company has launched a series of industry-leading

products including the M-Fresh refrigerator with the best fresh-keeping performance the industry’s first fully

dust-free fresh air conditioner the “Blue Oxygen Hand-Washing” drum washing machine with the least post-

The Company participated in the Internationale Funkausstellung

rinse residue the industry’s first smart tea bar machine and ultra-low temperature medical refrigerators capable 2024 Berlin (IFA) showcasing AI-powered home appliances and

of reaching -180° C. These products consistently bring fresher lifestyles to consumers. September unveiling its Zhihujia AI model to the global audience for the first

time.The Company launched the Blue Oxygen Laundry Care Machine

2024

November establishing a third pillar in the washing machine industry. It also introduced the world’s first inverter commercial kitchen

refrigerator.

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Annual Honors

Award Name Awarding Authority Photos of certificates/awards Award Name Awarding Authority Photos of certificates/awards

Anhui ProvincialAnhui Province’s “ThreeFirst Batch of China’s Ministry of Industry Department of Products” Demonstration

Famous Consumer and Information Industry and Enterprise in Consumer

Products Lists Technology Information Goods Industry

Technology

Anhui

Administration for

Ministry of Industry

Innovative Application Case of Top 100 List of Anhui Market Regulation

and Information

Industrial Internet Platform Province’s Invention Anhui Provincial

Technology Patents (2024) Department

of Science and

Technology etc.Ministry of IndustryNational 5G Factory Directory and Information “National Stable and China AssociationTechnology Qualified Product in Quality for QualityInspection” Title Inspection

AAA-Level Outstanding

Enterprise in the Upgraded China Industrial

Integration of Informatization Control Systems China Household Annual Technological

and Industrialization Cyber Emergency Electric Appliance Innovation Achievement

Management System Response Team Research Institute

(2023-2024)

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Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index

Award Name Awarding Authority Photos of certificates/awards Award Name Awarding Authority Photos of certificates/awards

China Household Electric

Top 10 Refrigerator Brands in

Appliance Research

the Industry (2023-2024)

Institute Changhong Air ConditionerHonored as “ExcellentChinese Association ofBrand” and “LeadingRefrigerationBrand” in the Heat Pump

Industry

China Household Electric

Annual Innovative Brand

Appliance Research

(2023-2024)

Institute

Top 10 Industrial Designers in Anhui Industrial Design

Anhui Province Industry Alliance

National Household

Innovative Design Brand Electric Appliance Industry

Information Center

Top 10 Innovative Listed Anhui Innovation and

Companies in Anhui Province Development Research

(2024) Institute

“Ultra Energy-Saving” Air

Conditioner Series Awarded Chinese Association of

Top 50 Leading Enterprises“2023 Energy-Saving and Refrigerationin China’s Industrial Digital e-works Digital EnterpriseEco-Friendly Product” Honor

Transformation (2nd Session Network

2024)

15 16Report Chairman’s About Changhong Deepening ESG

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Materiality Assessment

Dual Materiality Analysis

Stakeholders Expectations & demands Responses & actions

During the preparation of this Report the Company followed the Self-Regulatory Guidelines No. 17 for Companies

Listed on Shenzhen Stock Exchange No. 17—Sustainability Report (Trial) issued by the Shenzhen Stock Exchange

(hereinafter referred to as the “Guidelines”) and the Self-Regulatory Guidance No. 3 for Companies Listed on

? Internal control of risks ? Risk investigation and assessment

Shenzhen Stock Exchange—Sustainability Report Preparation while referencing the Reference Indicator System

Government ? Anti-corruption & anti-fraud ? Complaint handling mechanism

for ESG Report of Listed Companies Controlled by Centrally-administrated SOEs issued by the State-owned Assets

Supervision and Administration Commission of the State Council. In addition to the topics outlined in these rules

the Company identified other material issues based on industry characteristics operational realities and business

models resulting in a total of 21 potential ESG-related topics. ? Service quality ? Ensure service standards

In the materiality assessment process the Company adopted a dual materiality framework: on one hand evaluating

the potential impact of each topic on the economy society and the environment (i.e. impact materiality) and Customers

? Protection of customer rights ? Enhance service quality

on the other hand assessing the risks and opportunities each topic may bring to corporate value creation (i.e.financial materiality). To further enhance the scientific rigor of the assessment the Company incorporated strategic

development direction and the key concerns of internal and external stakeholders into the framework forming a ? Compensation & benefits ? Improve salary & benefits system

triple materiality assessment system that includes strategic alignment. ? Promotion mechanism ? Optimize career development paths

Due Diligence and Stakeholder Engagement Employees

? Employee growth & development ? Diverse training programs

? Employee care ? Employee welfare & cultural activities

To ensure the comprehensiveness and accuracy of ESG topic identification the Company conducted on-site due

diligence and background research. The research involved interviews with department heads key employees

suppliers and shareholders as well as studies on the sustainability context of the Company’s operational regions

industry characteristics and product lifecycles. Special attention was given to key factors influencing ESG topic ? Rural revitalization ? Ensure service standards

selection and their associated risks and opportunities. The research included an in-depth analysis of global and

Community ? Support for public welfare ? Enhance service quality

regional sustainability trends policy and regulatory developments and local sustainability challenges such as

local guidance documents industry standards and regulatory requirements ESG rating agencies’ latest topic lists

and weightings for the durable consumer goods industry and recent ESG report themes of peer companies.The Company collected stakeholder opinions through online questionnaires gathering financial materiality ? Compliant operations ? Accurate information disclosure

insights from internal stakeholders and impact materiality insights from external stakeholders ultimately forming ? Compliance with business ethics ? Investor communication

a materiality list and conducting an importance assessment. Internal stakeholders included mid-to-senior Partners ? Supply chain management ? ESG performance improvement

management department heads and subsidiary leaders with in-depth knowledge of the Company’s financial

performance. External stakeholders included employees consumers clients suppliers partners government

agencies media the public and industry associations.After testing the feasibility of the online questionnaire the Company ? Accurate information disclosure ? Adequate disclosure of information

invited stakeholders to participate through relevant departments. ? Investor communication ? Diverse communication channels

Investors ? ESG performance improvement ? Enhance ESG practices

A total of responses were collected employees and from senior management.

168410

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Conclusions of Materiality Analysis

In 2024 based on the Guidelines stakeholder feedback and the Company’s actual circumstances we revisited the

Matrix of Material Issues completeness and appropriateness of the topics adding and removing certain topics. Deleted topics were merged

into other topics as indicators for disclosure. Additionally we adjusted the names of some topics to better align

Innovation-Driven Development

with the Guidelines’ naming requirements and disclosed them in the Report.Product and Service

Pollution Prevention and Control Energy Utilization Safety and Quality

Supply Chain Management

Compliance Management

Employee Rights Protection

Climate Change Mitigation “Carbon Emissions”

Employee Training and Development Deleted “Employee Compensation and Benefits”

Green Products “Customer Service”

Water Resource Utilization Circular Economy Topic “Diversity and Equal Opportunity”

Occupational Health and Safety

Anti-Unfair Competition “Intellectual Property Management”

Information Security and Privacy Protection

Social Responsibility Corporate Governance Business Ethics and Anti-Corruption

Environmental Compliance

Management Sustainability-Related GovernanceEcosystems and Biodiversity

“Employee Rights Protection”

“Information Security and Privacy Protection”

“Circular Economy”

impact materiality Added “Sustainability-Related Governance”

Changhong Meiling 2024 Dual Materiality Topics List Topics “Environmental Compliance Management”

“Anti-Unfair Competition”

High Financial and Impact Materiality Topics “Ecosystems and Biodiversity”

● Innovation-Driven Development ● Supply Chain Management ● Product and Service Safety and Quality

● Energy Utilization ● Employee Rights Protection ● Employee Training and Development

High Financial Materiality Low Impact Materiality Topics

● Climate Change Mitigation ● Pollution Prevention and Control ● Compliance Management “Waste Emissions” adjusted to “Pollution Prevention and Control”

“Water Resource Management” adjusted to “Water Resource Utilization”

Low Financial Materiality High Impact Materiality Topics “Energy Management” adjusted to “Energy Utilization”

Business Ethics and Anti-Corruption Information Security and Privacy Protection Circular Modified “Employee Health and Safety” adjusted to “Occupational Health and Safety”● ● ●

Topics “Product Quality and Safety” adjusted to “Product and Service Safety and Quality”Economy ● Occupational Health and Safety ● Water Resource Utilization ● Sustainability-Related “Product Innovation” adjusted to “Innovation-Driven Development”

Governance ● Corporate Governance ● Green Products “Anti-Corruption and Bribery” adjusted to “Business Ethics and Anti-Corruption”

“Corporate Governance” adjusted to “Company Governance”

Low Financial and Impact Materiality Topics “Compliance Operations” adjusted to “Compliance Management”

● Environmental Compliance Management ● Anti-Unfair Competition ● Social Responsibility ● Ecosystems

and Biodiversity

1920

financial materialityESG

Deepening ESG Governance

Capabilities

Sustainable development has become a core issue of global concern with governments

businesses and the public collaborating to drive its realization. Changhong Meiling actively

responds to this trend by systematically improving its ESG management system in accordance with

national laws regulations and corporate governance standards deeply integrating ESG principles

into its governance practices. 03Report Chairman’s About Changhong Deepening ESG

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Sustainable Development Governance Framework Sustainable Development Mechanism Construction

To ensure the deep integration and efficient coordination of ESG strategies with the Company’s operations and

development the Company established a “three-tier linkage” sustainable development governance framework

during the reporting period comprehensively enhancing the systematic nature and execution of ESG management. Mechanism Specific Actions

This framework designates the Board of Directors as the highest responsible body with core members of the

Board forming the ESG Management Committee as the overarching leadership body for ESG initiatives. The ESG

Management Committee is supported by an ESG Working Group which is responsible for the daily execution During the reporting period the Company officially issued the Implementation Rules for

of committee affairs implementation of resolutions and advancement of related tasks ensuring the effective the Board ESG Management Committee serving as the core guiding document for ESG

implementation of the ESG Management Committee’s strategic deployments and management requirements. Internal initiatives and providing a solid foundation for the standardization of the ESG governance

Through hierarchical and professional ESG management operations the Company has laid a solid organizational Policies system. These rules clarify the responsibilities workflows and decision-making

foundation for achieving sustainable development goals. mechanisms of the ESG Management Committee further optimizing the Company’s

ESG governance framework and enhancing ESG strategic planning and institutional

Organizational Structure and Scope of Responsibilities development.◆ Review and approve the Company’s ESG strategic plans

Decision- objectives governance framework and key policies.Board of Directors ◆ Review and approve the Company’s ESG report and the The ESG Management Committee regularly organizes specialized meetings with outcomes Making

Tier disclosure of significant ESG governance information. Information promptly submitted to the Board of Directors as key references for strategic decision-

◆ Review and approve major ESG matters and risk response plans Reporting making and feedback to the ESG Working Group to guide subsequent task execution.related to ESG. Mechanism To ensure the continuity and effectiveness of ESG governance the ESG Management

Committee holds at least one formal meeting annually.◆ Research and formulate the Company’s ESG strategic plans

objectives and management system.◆ Evaluate and review the Company’s ESG strategies risks and

Management Management

Tier Committee

implementation. Established internal mechanisms to monitor and oversee ESG-related matters with

◆ Review the Company’s ESG report.◆ Handle other matters authorized by the Board of Directors and the ESG Management Committee primarily responsible for guiding the effective Supervision

other issues stipulated by relevant laws and regulations. Mechanism implementation of environmental protection social responsibility and governance

standardization.Promote the standardization and institutionalization of ESG

◆

initiatives and fulfill relevant approval procedures.◆ I m p l e m e n t t h e C o m pa n y ’ s E S G m atte r s st re n g t h e n

coordination and communication across departments and Incorporated key performance indicators (KPIs) for ESG topics such as talent cultivation

advance the execution of ESG-related tasks. environmental management workplace safety occupational health technological

Execution ESG Working Group ◆ Prepare ESG-related reports fulfill the requirements of the ESG Evaluation innovation and major responsibility accident management into the comprehensive Tier Management Committee collect and compile indicators and Mechanism

information from various departments and subsidiaries and performance evaluation system for senior management. This includes assessing their

disclose the ESG report. responsibilities in promoting ESG initiatives such as researching and formulating

◆ Monitor future ESG development trends stay informed about ESG strategic plans objectives and management systems as well as evaluating the

ESG-related laws and regulations ensure ESG development Company’s ESG strategies risks and implementation performance.aligns with strategic plans address risks and issues in daily

management report suggestions and opinions etc.

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ESG Capability Enhancement Changhong Meiling: Empowering a Green Future

To further deepen the sustainable development strategy enhance the professional skills and comprehensive Strategic Enabler of Smart Technology · Advocate of Green Lifestyles · Co-Builder of a Harmonious Society

capabilities of relevant personnel and comprehensively promote the practice and innovation of ESG initiatives Planning

the Company conducted the 2023 ESG Report Summary and Rating Special Training during the reporting period. Strategic Excellence in Climate Action Green Smart Quality-Driven Progress Focus Areas Governance Products Manufacturing Consumption Together

This training systematically outlined the key improvement points and best practices for ESG work laying a solid

foundation for the in-depth development and continuous enhancement of the Company’s ESG initiatives. Continuously Achieve carbon Develop low- Accelerate the Commit to Collaborate optimize the carbon products development of new customer-centric with suppliers

Strategic governance peak in own

Additionally the training strengthened employees’ understanding of ESG concepts fostering a broad consensus and operational operations by

compliant with quality productive product operations employees the local

Objectives system to enable 2030 and carbon national standards forces and the and user-focused community and other

the Company’s neutrality by 2060 centered on "full- transformation branding delivering stakeholders to jointly

across the Company to lead with ESG principles and drive high-quality development. This has injected strong high-quality lifecycle green toward smart unique value to promote sustainable development management manufacturing consumers development

momentum into the Company’s long-term development in the ESG field.High-Efficiency Driven by Dual- Green Product

Governance System

Implementation Carbon Goal Upgrading

Technological Product Experience Responsibility supply

Compliance Low-Carbon Industrial Product Energy Innovation Optimization chain

Pathways Management System Parks Efficiency Rate Product Innovation Service Upgrading Employee Rights

Risk Control Clean Energy Product Quality Service Innovation Brand Communication charitable causes

Framework Utilization Control

Support Organizational Institutional Capability Cultural Financial

Mechanisms Support Support Building Alignment Resourcing

Sustainable Development Risk Management

Guided by clear risk management objectives the Company has established a comprehensive risk management

system covering risk identification assessment monitoring and response. It has also established a routine risk

2023 ESG Report Summary and Rating Training Special Meeting on ESG Work Deployment

management reporting mechanism to ensure transparency and timely decision-making.Sustainable Development Strategy Risk Management System

Changhong Meiling is unwavering in its commitment to high-quality sustainable development actively responding The core objective of the Company’s risk management is to build a closed-loop management mechanism

to the national 14th Five-Year Plan and subsequent development strategies. The Company is deeply implementing encompassing “risk identification—remediation—tracking and early warning—remediation verification”. By

the “Carbon Peak and Carbon Neutrality” goals driving the green future of intelligent manufacturing. It implementing differentiated and precise management strategies the Company strengthens the supervision and

proactively fulfills corporate social responsibilities focusing on employee rights consumer rights community execution of the entire risk control process. This mechanism aims to comprehensively identify potential risks

development and public welfare promoting social harmony and prosperity. The Company has established a well- take targeted remediation measures in a timely manner and ensure continuous improvement and effective

structured governance system improving a clear and effective corporate governance structure to ensure efficient implementation of risk management through dynamic tracking and early warning systems ultimately achieving

and compliant corporate governance. systematic refined and efficient risk management.Looking ahead Changhong Meiling adheres to its vision and mission of “Meiling Let Better Days Come” firmly In terms of management mechanisms the Company has established a Compliance and Risk Control Committee led

pursuing its sustainable development strategy. The Company is fully committed to upgrading manufacturing by senior management and the executive team to oversee risk management and internal control. The Committee

and transforming services creating environmentally friendly and low-carbon consumer electronics through strictly adheres to the Risk Management System focusing on key business areas such as procurement sales

technological and model innovation driving the green development of the entire industry and striving to create finance and engineering and defines risk management red lines to ensure the integrity and effectiveness of the

value for all stakeholders. internal control system. Annually the Company conducts comprehensive risk identification and assessment in

With “Smart Green Future” as its core positioning Changhong Meiling has formulated a medium- and long- strategic financial compliance market operational and legal areas using scientific risk assessment models toterm ESG strategic plan covering six strategic areas centered on being a “Green Lifestyle Advocate Technological categorize risks into high medium and low levels and forms a detailed risk identification list. Based on this theInnovation Driver and Compliance Governance Practitioner”. The strategy is supported by organizational Company assigns responsibility for risk events to specific individuals and units conducts regular reviews and

institutional capability cultural and financial safeguards fully integrating green transformation and intelligent remediation and ensures the effective implementation of risk prevention and mitigation measures continuously

upgrading demonstrating the Company’s confidence in leading the industry’s sustainable development. improving risk management capabilities.

25 26Report Chairman’s About Changhong Deepening ESG

Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index

Risk Reporting and Supervision The Company has established a routine risk identification and assessment mechanism conducting regular risk

investigations and creating detailed risk ledgers based on risk levels to ensure that a comprehensive and systematic

The Company has established a robust reporting mechanism for significant risk events to ensure that relevant units risk assessment is conducted at least once a year. For identified risks the Company organizes the formulation of

and departments can respond promptly and take effective measures in the event of major risks or sudden crises. corresponding control measures or contingency plans assigns responsibility to specific entities and individuals

After an incident occurs the responsible personnel must immediately report to the Compliance and Risk Control and regularly tracks the implementation of these measures to ensure effective execution of risk management.lead department the Chief Compliance Officer (responsible leader) and higher-level units to ensure the timeliness Additionally the Company maintains a ledger for significant risks with the risk management department organizing

and accuracy of information transmission. Additionally the Company continuously monitors the progress relevant professional departments to guide and supervise the rectification work of responsible units regularly

of significant risk events through a monthly reporting mechanism incorporating them into the performance tracking progress to achieve closed-loop risk management.evaluation system to regularly track the advancement and completion of these events ensuring closed-loop

management and effective implementation of risk management.Sustainable Development Indicators and Goals

Risk Response Strategies and Measures We strictly adhere to domestic and international laws regulations industry standards and regulatory

The Company has developed differentiated response strategies for various types of risks to ensure the precision and guidelines and in light of the enterprise’s strategic positioning and business characteristics systematically

effectiveness of risk management. The Company conducts monthly risk assessments formulates corresponding setting sustainable development goals and quantitative indicator systems that cover environmental social and

response measures based on risk levels and establishes comprehensive risk contingency plans and response governance (ESG) dimensions ensuring operability measurability and strategic alignment. For the framework

strategies. design implementation pathways and phased achievements of these goals and indicators please refer to the

chapters on material topics in this Report.Risk Scope Management Measures

Track identified risk events monthly closely monitor developments

Changes in External

Operational Environment and take proactive and prudent preventive measures.Establish comprehensive risk contingency plans and response

st rateg i e s d e f i n e p h a s e d p ro g re s s a n d i m p l e m e n tat i o n

Incremental Business Risks requirements and hold regular meetings with the Risk Control

Compliance department to solicit input from relevant management

and decision-making layers.Assess major risks develop risk response proposals and clarify

Existing Business Risks risk resolution objectives organizational leadership management

processes resource allocation and specific response measures.

27 28Environment

Changhong Meiling fully recognizes the importance of ecological and environmental protection

and actively fulfills its corporate social responsibility. By focusing on climate change optimizing

its energy structures and establishing a green production system the Company has continuously

reduced the environmental impact of its operations and explored new pathways for the

coordinated development of business operations and ecological environment. 04Report Chairman’s About Changhong Deepening ESG

Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index

Climate Change Response

Dual Carbon Dual Carbon Dual Carbon

Four-Element Framework for Climate Change Response Management Committee Working Group Management Office

Responsible for setting the Responsible for overseeing Responsible for overseeing dual

Climate-Related Governance C o m p a n y ’ s d u a l c a r b o n carbon emission management carbon project management

targets and implementation across departments; breaking including planning progress

The Company has established its Dual Carbon Management Committee to support China’s dual carbon plans; guiding the Working down indicators to set carbon control and quality assurance;

goals (peaking carbon emissions by 2030 and reaching carbon neutrality by 2060) drive green and low-carbon Group in advancing various reduction targets and plans for facilitating interdepartmental

development and enhance corporate social responsibility and environmental awareness. The committee is led by initiatives and providing it with departments; implementing co l l a b o ra t i o n ; a s s i st i n g i n

the Company’s president while dual carbon projects are implemented by various departments. The committee management and resource carbon reduction projects and monitoring project execution

holds regular and ad-hoc meetings to develop overall action plans coordinate carbon reduction efforts across s u p p o r t ; a n d o v e r s e e i n g promoting relevant technologies; and evaluating outcomes; and

departments. These departments also organize regular meetings to identify and assess actual or potential risks and and evaluating progress and and regularly reporting progress reporting regularly to the Dual

opportunities in reducing carbon emissions. The Dual Carbon Working Group formulates project evaluation plans making key decisions. to the Dual Carbon Management Carbon Management Committee.refines supporting reward and penalty mechanisms and assesses departmental performance quarterly based on Committee.project implementation progress. Additionally we invite third-party organizations to verify and calculate carbon

emissions data to continuously enhance the professional skills and capabilities of relevant personnel.Climate-related Strategy

Dual Carbon

Management Committee Climate-Related Scenario Analysis and Adaptability

Assessment

General process of climate-related scenario analysis

Dual Carbon Working Group

Dual Carbon

Management Office Step 1 Step 2 Step 3 Step 4 Step 5

Departments * R o u t i n e m a n a ge m e n t

and promotion of dual-

carbon projects Define the range of Choose climate- Determine Identify scenario Conduct climate-

the climate-related related scenarios variables for analysis methods related scenario

* Research on basic low- scenario analysis scenario analysis analysis

carbon technology

With reference to the climate scenario models in the Sixth Assessment Report (AR6) of the United Nations

Intergovernmental Panel on Climate Change (IPCC) we selected two pathways SSP5-8.5 and SSP1-2.6

for climate scenario analysis of the changes in the external environment of the Company’s operations

*Implementation of dual carbon projects including ecological economic and social factors. We identified various risks and opportunities that may

affect our business under these scenarios. In addition we developed a climate change response strategy to

ensure that our operational strategy is adapted to the global climate transition.

3132

Logistics and

Transportation

Marketing

Supply Chain

Production

R&DReport Chairman’s About Changhong Deepening ESG

Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index

Scenario Scenario reference Temperature increase Scenario description

This scenario is generally characterized by high emissions pronounced developmental inequalities and heavy reliance

High- More than 4° C (relative to pre- on fossil fuels. Under this scenario physical risks are relatively high while transition risks are relatively low; governments

emission Shared Socioeconomic Pathway SSP5-8.5 by the IPCC

scenario industrial levels) do not implement climate policies; and energy demand and greenhouse gas emissions continue to rise leading to

persistent global surface temperature increases and an escalating frequency of extreme climate events.This scenario integrates a sustainable socio-economic development pathway with a low radiative forcing scenario. It isoften described as a future pathway characterized by “the coordinated development of the green transition and climateLow- Below 2° C (relative to pre-emission Shared Socioeconomic Pathway SSP1-2.6 by the IPCC actions”. Under this scenario transition risks are relatively high while physical risks are relatively low. This scenario

scenario industrial levels) aims to achieve the long-term targets of the Paris Agreement (limiting global temperature rise to well below 2° C and

pursue efforts to limit the increase to 1.5° C).Climate-Related Risks and Opportunities

Type Climate-related risk Risk description Opportunity description Financial impact Impact level Impact duration Mitigation measures

Short-term

Increased maintenance and repair Plan production and logistics in

The Company and its major subsidiaries Strengthen resilience against costs for warehouses and other advance based on early warnings

located in areas such as Hefei City extreme weather and natural infrastructure from meteorological agencies

More severe extreme Mianyang City Jingdezhen City and disasters Short- to Damage to facilities and equipment minimizing negative impacts of

weather Zhongshan City may be susceptible to

Medium

Enhance risk management for and risks of factory shutdowns and medium-term extreme weather

extreme weather events such as typhoons climate crises and business Develop emergency response

supply chain

extreme rainfall and flooding. disruptions lead to continuity plans for natural disasters and reduced output and revenue

conduct regular emergency drills

Long-term

Physical risks

(SSP 5-8.5) 情 In 2024 the average temperature in Anhui I m p l e m e n t h e a t m i t i g a t i o n

景 Province reached 17.4 ° C 1.2 ° C above Potential increase in operational Rising average measures to protect employees

the historical average with six regional costs (due to higher energy Low Long-term

temperatures Avoid outdoor operations during

heatwave events marking the warmest consumption)

Strengthen resilience against peak heat hours

year on record

extreme weather and natural

According to the World Resources Institute disasters

Optimize production processes

(WRI) Aqueduct Water Risk Atlas the Enhance risk management for

Potential water shortages affect adopt water-efficient equipment

Company’s major production bases climate crises and business

production stability and revenue a n d i m p l e m e n t wate r s a v i n g

Risk of prolonged are in high-risk areas (Among them the continuity Medium- to

Increased operational costs from Medium measures

droughts facilities in Mianyang City are classified as long-term

securing alternative or backup water E s t a b l i s h e m e r g e n c y w a t e r

facing “extremely high” physical water

sources r e s e r v e s t o e n s u r e s t a b l e

risk scoring between 4 and 5 on the risk

production

scale)

33 34Report Chairman’s About Changhong Deepening ESG

Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index

Type Climate-related risk Risk description Opportunity description Financial impact Impact level Impact duration Mitigation measures

Policy and legal

Emerging markets in the Middle

East Afr ica Latin America I n c r e a s i n g o p e r a t i o n a l a n d

a n d S o u t h ea st A s i a h a v e a compliance costs due to the EU C l o s e l y m o n i to r c h a n ge s i n

The Company’s exported products may

l a r ge p o p u l at i o n ba s e a n d carbon tariffs and the ongoing carbon i n te r n at i o n a l a n d d o m e st i c

Policy and legal risks face carbon tariffs carbon footprint Medium- to

rising demand for essential reduction efforts in the international Medium e n v i ro n m e n ta l a n d ca r b o n -

for exported products regulation requirements and other long-term

home appliances (such as air community related laws regulations and

policy restrictions

conditioners and refrigerators) Expanding product sales leading to policies and ensure compliance

due to frequent heatwaves and sales growth w i t h o v e r s e a s b u s i n e s s

consumption upgrades requirements

Expand factor y and product

carbon footprint certifications

Significant investment required track carbon tariff policies and

fo r d e v e l o p i n g h i g h - e f f i c i e n c y requirements assess export costs

Mandatory Countries are pursuing their carbon H i g h e r e n e r g y e f f i c i e n c y

t e c h n o l o g i e s ( e . g . i n v e r t e r and adjust business planning

requirements and n e u t ra l i t y g o a l s a t a f a s t e r ra t e standards raise entry barriers

c o m p r e s s o r s a n d h e a t p u m p promptly

regulation for existing potentially leading to stricter energy forcing smaller firms out due to

technology) or upgrading production Continuously promote R&D on

Transition products and services efficiency standards for appliances such cost pressure or technological High Medium-term high-efficiency products and

risks (SSP lines (e.g. upgrading of as refrigerators and air conditioners (e.g. constraints whi le industr y

1-2.6) Potential to secure government develop low-energy-consumption energy efficiency China’s new national standards and l e a d e r s g a i n m a r ke t s h a r e

subsidies or tax incentives to increase product lines

standards) the EU’s ErP Directive). through R&D and the scale effect

non-operating income or reduce

taxes

Technology risks

W h i l e t h e C o m p a n y co n t i n u e s t o Conduct early-stage research

invest in R&D to launch innovative and and comprehensively assess the

Increased R&D investment

competitive low-carbon products there return-on-investment cycle and

C o s t s f r o m d e p l o y i n g n e w

are uncertainties in the technology Master low-carbon technologies feasibility

technologies and processes

Developing new transition and there may be a risk of to develop more efficient lower- C o n t i n u o u s l y r e f i n e t h e

Write-off and premature replacement Medium- to

products through failure emission products and expand High technological paths of R&D and

of existing outdated equipment long-term

R&D and innovation If the Company fails to identify and apply market share in the low-carbon innovation transformation

Efforts for greater competitiveness

low-carbon technologies promptly sector A c t i v e l y a p p l y l o w - c a r b o n

and responding to shifts in consumer

competitors may pioneer energy-saving innovation capabilities increase

preferences lead to increased revenue

and environmentally friendly products patent applications and increase

squeezing our market share the number and types of patents

35 36Report Chairman’s About Changhong Deepening ESG

Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index

Type Climate-related risk Risk description Opportunity description Financial impact Impact level Impact duration Mitigation measures

Market risks

In 2024 over 37 million consumers in

Market uncertainties create potential

China participated in home appliance

market risks such as shifting consumer

t ra d e - i n p r o g ra m s w i t h st r o n g

demand influenced by the Chinese

preference for green products. Among A d j u st p r o d u c t a n d s e r v i ce o f f e r i n g s

government’s subsidies for high-

the eight main appliance categories dynamically to align with market trends

Changing consumer performance environmentally-friendly Medium- to

p r o d u c t s w i t h g r a d e - 1 e n e r g y Revenue fluctuations High Analyze consumer preferences and develop

behavior and healthy appliances. If the Company long-term

efficiency accounted for 90% of total targeted strategies to cater to consumer

fails to adapt it may not be able to

sales. Data shows that around 60% of demand

meet consumer needs promptly or

consumers prefer green and energy-

may fall behind its peers in the market

efficient appliances with a focus on

competition.their energy efficiency

Optimize supply chain management and

Transition establish long-term procurement agreements Low-carbon raw materials (e.g. eco- Expand the range of raw material

risks (SSP with low-carbon material suppliersRising raw material friendly refrigerants and renewable opt ions contr ibut ing to carbon Higher production costs and Medium- to

1-2.6) Medium Explore cost-effective alternative materials

costs p l a st i c s ) a re m o re ex p e n s i ve t h a n reduction efforts across the supply reduced profits long-term

and collaborate with suppliers on low-carbon

traditional materials chain

material R&D

Adjust product pricing

Reputation risks

Establish a regularized stakeholder

T h e C o m p a n y ’ s p e r f o r m a n ce

Failure to meet stakeholder communication mechanism

in addressing climate change is

expectations may cause the Enhance the quality of information

increasingly being widely scrutinized

Increased Company to be challenged disclosure and disclose the Company’s

by regulators investors rating Proactively communicate with

stakeholder leading to a drop in revenue Short- to progress in addressing climate change

agencies suppl iers the publ ic stakeholders to establish a strong Medium

concerns or A potential decline in the long-term and the achievement of its targets

and other relevant parties. Failure green and low-carbon brand image

negative feedback brand’s market value through annual ESG reports

t o c o m m u n i c a t e t i m e l y w i t h

Potential higher investment Strengthen environmental protection

stakeholders may lead to negative

and financing costs publicity and enhance the Company’s

feedback

credibility in environmental protection

Note Short-term: Within (and including) 1 year after the end of the reporting period of the Company’s sustainability information

Medium term: 1-5 years (including 5 years) after the end of the reporting period of the Company’s sustainability information

Long-term: More than 5 years after the end of the reporting period of the Company’s sustainability information

37 38Report Chairman’s About Changhong Deepening ESG

Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index

Impact of Climate-Related Risks and Opportunities Climate-Related Indicators and Targets

on Strategies and Decision-Making

In response to climate-related risks and opportunities Changhong Meiling has strategically adjusted its

Climate-Related Targets and Annual Progress

financial planning resource allocation and business deployment to systematically establish a low-carbon

transition framework.Changhong Meiling has actively responded to the national strategic “Dual Carbon” goal and set clearly

its “3060” carbon emission goal committing to achieve carbon peak by 2030 and carbon neutrality

Optimize high- Phase out or renovate energy- and water-intensive product lines and by 2060. To ensure the achievement of this long-term goal the Company has also set detailed annual

carbon business continuously optimize high-carbon processes while enhancing energy cost

control. emission targets to reduce carbon emission intensity year by year and has steadily pushed forward

the emission reduction plan through energy-saving equipment renovation optimization of production

processes development of low-carbon products promotion of clean energy participation in green power

Pursue innovation- Increase capital expenditure and R&D investment focus on green trading and other measures.driven development technology research and clean energy application and drive low-carbon

business upgrades.Promote collaboration Deepen ESG collaboration with big clients suppliers and industry

Peak carbon emissions in our operations by 2030

and win-win results organizations to jointly develop a green supply chain ecosystem enhancing

supply chain resilience against demand fluctuations.Overall goal

and achieve carbon neutrality in our operations by 2060

Consider future mergers acquisitions or divestitures and optimize asset

Restructure

portfolios and regional distribution continuously improving climate

strategic assets

adaptability.Management of Climate-Related Impacts Risks and Opportunities

The Company emphasizes the management of climate-related impacts risks and opportunities and has

established and improved systematic and scientific processes and methods to ensure that its strategies and

operations can effectively respond to the challenges and opportunities posed by climate change.Understand the Company’s Conduct climate scenario analysis under Incorporate and Each department implements risk The ESG Management Committee Regularly disclose the

Climate-Related Impact activities business the two paths of SSP 5-8.5 and SSP prioritize the identified management and response initiatives regularly reviews key risk indicators identification and management of

Risk and Opportunity relationships external 1-2.6 to identify their impacts risks and climate-related risks in a targeted manner formulates its risk and reports annually to the Board of

Management Process risks and opportunities environment affected opportunities; and assess the gaps between response plan and then submit it to the Directors on critical climate-related

stakeholders etc. climate-related targets and the status quo ESG Management Committee for review risks

Analyze the target background Identify the risk list Prioritize risks Formulate response measures Monitor management Climate-related reporting

39 40Report Chairman’s About Changhong Deepening ESG

Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index

Climate-Related Targets and Annual Progress

Annual Greenhouse Gas (GHG) Emissions

Target information

Direct emissions

from diesel sewage

Mainly include natural For Scope 2

treatment fire Type 2023 2024 Change

Scope 1 and gas purchased emissions a market-

Scope coverage extinguishing agents

Scope 2 electricity and based approach is

and air conditioning

purchased steam employed Direct GHG emissions (Scope 1) (tCO2e) 1002.97 710.36 Down by 29.17%

refrigerants are minimal

and not included

Entities covered Indirect GHG emissions (Scope 2) (tCO2e) 67602.91 62486.27 Down by 7.57%

Changhong Meiling Mianyang Meiling and Jiangxi Meiling

by the target

Type of target Quantitative target Intensity target Total carbon emissions (tCO2e) 68605.88 63196.63 Down by 7.88%

Base year emissions:

Base year 2023 Total carbon emissions per million yuan

Greenhouse gas emissions per million yuan of output value: 7.172 tCO e 7.172 6.176 Down by 13.89%2 of output value

Projected emissions for A 5% decrease in greenhouse gas emissions per

Target year 2024 million yuan of output value compared to the

the target year Note 1: The data covers Changhong Meiling Mianyang Meiling and Jiangxi Meilingbase year

2: Greenhouse gas emissions primarily include Scope 1 and Scope 2 sources namely natural gas 2.purchased

Emission reduction target electricity and purchased steam (Diesel sewage treatment fire extinguishing agents and air conditioning

compared to the base 100% refrigerants are excluded due to their minimal contribution to direct emissions.)

year (%) 3: In 2024 Changhong Meiling procured 20.37 million kWh of green electricity for its Hefei operations accounting for

approximately 19% of its total electricity consumption in the region

Greenhouse gas emissions per million yuan of

E m i s s i o n r e d u c t i o n 4: The 2024 emission factors used are as follows: electricity: 0.5568 kgCO2e/kWh; steam: 110 kgCO2e/GT; and natural

The current year’s output value: 6.176 tCO2e and a 13.89% decrease target compared to the 100% gas: 1.8222 kgCO2e/m3

emissions: in greenhouse gas emissions per

current year (%) million yuan

of output value

Target methodology

Has it been independently Not yet independently verified by a third party; considering verification through third-

verified by a third party party organizations such as the Science Based Targets initiative

Description of how the

May refer to (I) Climate Change Response 2. Greenhouse Gas Emission Reduction Practices

target will be achieved

For intensity targets

provide a description

Per million yuan of output value

of the method used to

calculate carbon intensity

For Scope 3 targets

provide a description

of the method used to No Scope 3 emission targets have been established yet

calculate the covered

emissions

41 42Report Chairman’s About Changhong Deepening ESG

Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index

Greenhouse Gas Verification GHG Emissions Reduction Practices

In August 2024 Changhong Meiling engaged an external third-party organization to verify its carbon During the reporting period all departments within the Company made collaborated efforts to promote

emissions for the refrigerator and washing machine industrial parks. The verification statement confirmed

that the total greenhouse gas emissions within the organizational and temporal boundaries comply with carbon reduction and submitted a total of 98carbon reduction projects covering key perspectives such as

ISO 14064:2018 requirements. manufacturing product design supply chain and office operation. These projects are designed to systematically

reduce carbon emission intensity through technological innovation process optimization and efficient use of

Organizational Activities and facilities under the control of Changhong Meiling Co. resources so as to promote the Company’s green transition and sustainable development goal.boundary Ltd.’s refrigerator and washing machine industrial parks

87 implemented carbon reduction projects

Method for defining

organizational Operational control 41

boundary

27

Temporal boundary Between January 1 2023 and December 31 2023

15

Reporting Category 1 (Direct GHG emissions and removals) and Category 2 1 1 2

boundary (Indirect GHG emissions from externally sourced energy)

Manufacturing Products Suppliers Office operations Recyclers Logistics and

and users transportation

Verification criteria ISO 14064-1:2018 ISO 14064-3:2019 etc.energy-saving technology innovation; development of low-

carbon materials; and low-carbon and environmentally-

friendly packaging

e q u i p m e n t r e n o v a t i o n f o r Product cooperative development

energy saving and consumption technology of low-carbon materials

reduction; lean production for and technologies

improved efficiency; and energy

management Supply

Manufacturing chain

system

five major carbon

reduction paths

Carbon Green

the carbon emission control control energy

system purchased green power; p l a t f o r m ; a n d c a r b o n and photovoltaic power

Greenhouse Gas Emissions Verification Organization Statement f o o t p r i n t a c c o u n t i n g generation system

platform

43 44Report Chairman’s About Changhong Deepening ESG

Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index

Environmental Compliance Management Environmental Emergency Management

With significant emphasis on the prevention and response to environmental emergencies the Company strictly

Environmental Management System complies with the Emergency Response Law of the People’s Republic of China the National Environmental

Emergency Response Plan the Measures for the Emergency Administration of Environmental Contingencies and

Changhong Meiling upholds the green development Key performance in 2024 the Provisional Measures for the Filing and Management of Environmental Emergency Response Plans in Enterprises

philosophy and strictly complies with the Environmental and Public Institutions (for Trail Implementation) among other relevant laws and regulations. During the reporting

Protection Law of the People’s Republic of China the Law period the Company successfully passed the Changhong Meiling Co. Ltd. Environmental Emergency Response

of the People’s Republic of China on the Promotion of The total environmental protection investment

during the reporting period amounted to Plan further clarifying the emergency rescue procedures and response measures in the event of environmental

Cleaner Production the Law of People’s Republic of China 1723.74 contingencies.on Environmental Impact Appraisal and other relevant 10000 yuan

laws and regulations. The Company has formulated policies Changhong Meiling’s environmental emergency response plan system

such as the Environmental Protection Responsibility System representing a increase compared to the

and the Environmental Operation Control Procedure to previous year Comprehensive emergency response plan On-site disposal plan for chemical leaks

continuously enhance environmental and occupational 133 for environmental contingencies%

health management. These efforts are made to ensure On-site disposal plan for abnormal

that institutional frameworks and operational guidelines discharge of waste gases or wastewater On-site disposal plan for hazardous waste loss

are effectively implemented at ever y stage. During In 2024 the Company recorded neither major

environmental violations nor non-compliance

the year the Company and seven of its manufacturing On-site disposal plan for fires and explosions associated with environmental eventsincidents.subsidiaries successfully obtained ISO 14001 Environmental

Management System certification. For hazardous targets and potential risks we implement targeted preventive measures based on possible accident

pathways ensuring accident prevention. At the same time we conduct enhanced supervision and regular

inspections to ensure that preventive measures are effectively and effectively implemented.Environmental Risk Assessment and Response

Incident type Preventive measures

Emergency Management Framework

Corrosion-resistant and leak-proof flooring leak alarms containment

Chemical leaks

To effectively prevent and respond to environmental emergencies Changhong Meiling has established an bunds spill trays and personal protective equipment (PPE)

Environmental Emergency Response Command Department based on its internal environmental incident

Hazardous waste loss Diversion ditches and liquid collection pools

classification standards. The department oversees four specialized emergency response teams to ensure timely and

effective responses.Abnormal waste gas emissions Consumable parts (e.g. activated carbon)

Environmental Emergency Response

Command Department Abnormal wastewater discharge Consumable parts (e.g. emergency pumps)

Fire and explosion-related Fire hydrants fire extinguishers accident containment pools etc.incidents

The Company and its subsidiaries actively conduct training and drills for on-site emergency response to various

incidents such as fires and hazardous chemicals to test the employees’ capability to respond to emergencies

On-Site Response Team Comprehensive Emergency Logistics and raise their safety awareness. During the reporting period the Company had neither major environmental Coordination Team Monitoring Team Support Team

emergencies nor case of being administratively penalized by relevant departments such as ecological environment

bodies or being held criminally liable for environmental emergencies.

45 46Report Chairman’s About Changhong Deepening ESG

Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index

Strengthening Pollution Prevention and Control

Risk factor Description of risks and Impact Impact opportunities level duration Mitigation measures

Four-Element Framework for Pollution

Prevention and Control Failures to maintain and clean

Governance Related to Pollution Prevention and Control Perform quarterly maintenance on kitchen fume treatment facilities

High Short-term waste gas treatment facilities as

as required result in excessive

With great importance on pollution prevention and control Changhong Meiling strictly complies with the requiredemissions

Environmental Protection Law of the People’s Republic of China the Atmospheric Pollution Prevention and

Control Law of the People’s Republic of China the Water Pollution Prevention and Control Law the Law of the Malfunctions of the production

People’s Republic of China on Prevention and Control of Environmental Pollution by Solid Waste and the Law of exhaust system may lead to Waste gas Conduct inspections of exhaust

unsmooth emissions or failure High Short-term

the People’s Republic of China on the Prevention and Control of Noise Pollution among other laws and regulations. control facilities at specific locations to synchronize exhaust emission

Internally the Company has established the Environmental Operation Control Procedures to regulate the discharge

facilities with production processes

of waste gases wastewater noise and waste materials aiming to minimize environmental impact.To enhance the management efficiency of environmental operation control the Company has established an Minimize waste generation at the

“Environmental Operation Control” ARCI Responsibility Matrix which clearly defines the responsibilities roles Failures to properly seal waste paint source in dealing with uncontrolled High Short-term

and outcomes at the certain stage for each department involved. The participating departments include the Safety and adhesive containers emissions and the resulting

Environmental Protection and Security Department the Equipment Technology Institute of the Engineering environmental pollution

Academy the Manufacturing Department the Supply Chain Management Department the Administration

General solid waste and trash

Department and other relevant entities. The Safety Environmental Protection and Security Department as the Short- to Ensure properly covered storage for

bins stored outdoors during rainy High

supervisory and management body for environmental operation control assumes the core coordinating role to medium-term outdoor solid waste and trash binsweather cause diffuse pollution

ensure that all functional units are efficiently coordinated in the environmental operation control management

process. Additionally it is responsible for monitoring and evaluating the performance of each functional unit Inadequate waste management

ensuring that all environmental control factors are effectively managed to achieve the Company’s overall training leads to employees’ Conduct training sessions on waste

Medium Medium-term

environmental management goals. insufficient understanding of waste management for employees

Pollution Prevention and Control Strategy disposal requirements

Identification of Risks and Opportunities and Response Measures Engage certified waste disposal

Description of risks and Impact Unqualified hazardous waste agencies for legal hazardous waste Risk factor opportunities Impact level duration Mitigation measures Waste disposal service providers lead to High Medium-term transfers and obtain a transfer

Failures to clean septic tanks and oil management illegal transfers receipt and the data logging on the

separators promptly lead to blocked hazardous waste transfer platform

High Short-term Regular cleaning

drainage systems and untreated

wastewater discharge Hazardous waste reduction and Short- to Develop and implement waste

control measures help keep annual High

Malfunctions of sewage treatment medium-term reduction and control plansdisposal volumes below 100 tons

stations prevent sewage from Establish sewage control guidelines

reaching the emergency treatment specifying response requirements Implement a centralized collection

High Short-term

Wastewater pool and the sewage is treated and for sewage treatment station system for recyclable materials Chemical containers can be returned

management discharged after the malfunction malfunctions Short- to (chemical containers) and to suppliers for reuse reducing Medium

was resolved medium-term procurement arrangements for

hazardous disposed waste volumes

cyclical return to suppliers for

Chemical ratios in sewage treatment Maintain chemical ratio records and

recycling

do not meet the standard leading to High Short-term assign personnel to review chemical

substandard discharge ratios daily Implement noise insulation

Regular water quality testing and Short- to Conduct monitoring and comparison Noise Noise emissions from equipment Short- to measures keep workshop doors High

online monitoring of facilities for High medium- as per regulatory requirements and control exceed regulatory limits medium-term and windows closed and provide

traceability and comparison term scheduled timelines employees with earplugs

47 48Report Chairman’s About Changhong Deepening ESG

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Risk Adaptability Assessment Impact Risk and Opportunity Management Related to

Pollution Prevention and Control

We assessed the uncertainty of environmental pollution risks through scenario analysis. By simulating

different scenarios we helped identify potential risks formulate response strategies and improve Changhong Meiling adheres to the core principles of life cycle analysis and pollution prevention and has developed

overall risk management capabilities. Through scenario analysis the Company are in a better position the Environmental Emergency Risk Assessment Report. Through process flow analysis statistical analysis methods

to formulate more flexible strategies to respond to possible environmental changes in the future while and questionnaires the Company conducted a comprehensive and in-depth evaluation of its environmental

avoiding significant losses caused by environmental events and reducing decision-making risks. factors. Through continuous monitoring and analysis the Company accurately identified potential environmental

risks and opportunities providing a solid and science-based foundation for its green and sustainable development

strategies.Substance/ In terms of process management the Company calculated the ratio of the quantity of substances at risk of

Event type Pollutant of Incident Release Primary cause Secondary Hazard Emergency environmental emergencies produced used stored and released by the Company to their threshold quantity (Q) environmental location pathway cause consequence supply

risks the production process and environmental risk control level (M) and the sensitivity of environmental risk receptors

(E). Based on these analyses the Company assessed the risk levels of water and atmospheric environmental

Potential

Malfunctions Failure to impact on emergencies classifying them into three categories: general environmental risk greater environmental risk and

Particulate

Waste gas or improper promptly ambient significant environmental risk.Abnormal matters non- Emissions

treatment operation address atmospheric Consumable

waste gas methane exceed the

facilities of waste gas emissions quality parts

emissions hydrocarbons limits treatment exceeding within and Survey and analysis of the

(NMHCs) etc.facilities the limits around the Company’s basic situation

plant

Malfunctions Failure to Increased Q ＜ 1 Calculate the ratio (Q) of the quantity of

Abnormal or improper promptly pressure on COD Sewage Discharge air or water-related hazardous substances

operation of address downstream Consumable to their threshold quantity

wastewater ammonia treatment exceeds

wastewater discharge sewage parts

discharge nitrogen etc. stations the limits treatment exceeding treatment Q ≥ 1

facilities the limits plants Control level of The ratio (Q) of the quantity The sensitivity of

production process of air or water-related air or water-related

Laboratory Failure to and air or water-related hazardous substances to environmental risk environmental risks (M) receptors (E)

waste liquids respond their threshold quantity

oil-water Leakage of promptly

mixtures Damaged hazardous may result Diversion

Hazardous Hazardous waste black packaging waste in hazardous ditches Risk level of air or water-related environmental emergencies

waste

waste materials Leakage or improper into the waste being and liquid

storage

leakage waste white handling by stormwater discharged collection area

materials personnel drainage outside the pools The Company’s environmental emergency risk level

waste paint system plant via the

and waste stormwater

machine oil system

General Greater Significant

environmental risk environmental risk environmental risk

Note“Initial causes” include: work safety accidents abnormal working conditions power outages gas outages extreme

weather natural disasters abnormal operation of pollution treatment facilities; “Secondary causes” include: failure or Environmental risk classification flow diagram

abnormal operation of environmental risk prevention and control facilities problems with corrosion and seepage control and

communication failures.

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Indicators and Targets Related to Pollution Prevention and Control Wastewater type Key pollutant Treatment/Disposal method

In accordance with laws and regulations national standards and the requirements of the Guidelines and based on

Wastewater generated during production is

our own actual situation we have set relevant targets on the issues of pollutant discharge and waste management

first treated in the ceramic waste collection

and continuously tracked the implementation of the targets. p o o l b e fo re e n te r i n g t h e wa ste wate r

During the reporting period we accomplished the pollution prevention and control related sustainable treatment station. The treatment station

development targets. Industrial wastewater

Suspensions COD

ammonia nitrogen etc. ensures compliance with the Integrated

Wastewater Discharge Standard before

Indicator Target Timeframe Progress during the dischargereporting period Various methods including water recycling

Ensure that annual wastewater discharge meets the a re e m p l oye d to e l i m i n ate i n d u st r i a l

local wastewater treatment plant’s acceptance wastewater

standards with daily average concentrations of COD

Wastewater ≤ 380 mg/L NH -N ≤ 35 mg/L and TP ≤ 5 mg/L.Put wastewater into a pre-treatment pool for

Conduct four wastewater tests per year implement Short-term Achieved Domestic wastewater Suspensions COD centralized treatment and then discharge it management routine rain-sewage diversion management and carry ammonia nitrogen etc. into the municipal sewage system

out regular water quality tests; and complete at least Conduct regular cleaning of septic tanks

one traceability test and at least 12 comparative tests kitchen range hoods and grease traps

and 12 rainwater tests annually.Ensure annual waste gas emissions comply with

the Integrated Emission Standards for Air Pollutants Wastewater treatment facilities and operations

(GB16297-1996) Level II standards: concentration The Company regularly calibrates and adjusts the operational parameters of wastewater treatment

Waste gas ≤ 120 mg/m3 and emission rate ≤ 10 kg/h. VOC equipment based on water quality variations and equipment performance ensuring stable and efficient

emissions comply with the Emission Control

emissions Short-term Achieved

Standards for Volatile Organic Compounds from wastewater treatment.control Industrial Enterprises (DB12/524-2014): concentration Online monitoring devices have been installed at key discharge points of wastewater treatment facilities

≤ 50 mg/m3 and emission rate ≤ 1.5 kg/h. to monitor water quality parameters in real time.Conduct regular emissions testing twice per year In addition to online monitoring the Company conducts regular sampling and laboratory testing to

ensuring standard NMHCs remain below 60 mg/m3. ensure the accuracy and reliability of data monitoring.Ensure that factory boundary noise levels meet

Emission Standards for Industrial Enterprise Noise at

Boundary (GB12348-2008) Category 3 standards: 65 Wastewater Discharge Indicators 2024

Noise control Short-term Achieved

dB(A) for daytime and 55 dB(A) for nighttime.

Conduct quarterly noise tests and at least one self- Industrial wastewater Domestic wastewater Total wastewater discharge

monitoring test per month. discharge volume discharge volume volume

Submit monthly reports in accordance with official 763511.73 Tons 312195.12 Tons 1075706.85 Tons

Waste system requirements. Short-

Achieved

management Strictly enforce regulations on hazardous and solid term

waste collection storage and transfers. Wastewater discharge volume Chemical oxygen demand Biochemical oxygen demand

per million revenue(RMB) (COD) discharge (BOD) discharge

Wastewater Management 37.61 Tons per million 113.42 Tons 18.49 Tons

revenue(RMB)

The Company’s wastewater primarily originates from production processes and domestic use. To effectively

reduce wastewater discharges the Company has taken active measures to implement the rainwater-sewage

注 1. The above-mentioned data includes that from Changhong Meiling Hongmei Intelligent Jiangxi Meiling Mianyang Meiling

diversion system. After treatment the five types of biochemical oxygen demand indicators namely suspensions Changmei Home Appliances Ridian Technology Zhongke Meiling Zhongshan Changhong and Changhong Air Conditioner.chemical oxygen demand (COD) ammonia nitrogen petroleum pH value should meet the emission standards 2. The wastewater discharge volume exceeds water consumption due to multiple heavy rainstorms in Hefei Province in 2024

making the wastewater treatment compliance rate 100%. which led to sewage backflow into the industrial park causing anomalies in discharge data.

51 52Report Chairman’s About Changhong Deepening ESG

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Waste Gas Treatment

Waste gas treatment equipment security

The Company’s waste gases mainly come from various organized and unorganized VOCs emitted during the The Company regularly inspects and maintains the environmentally-

production and manufacturing process organic waste gases from boiler combustion and particles from crushing friendly waste gas treatment facilities and equipment to ensure their

etc. During the reporting period the Company formulated its monitoring plan specifying the monitoring items smooth operation and prevent the waste gases from being directly

methods and frequency and commissioned qualified external institutions to test the organized waste gases. discharged without treatment due to equipment failure or leakage.According to the monitoring results the emission pollutants all met the emission standards.Type of waste gases Key pollutant Treatment/Disposal method

Waste gases from foaming dispensing spraying rust

prevention thermoforming soft foam and extrusion

processes undergo secondary activated carbon adsorption

before discharge Specialized management training for waste gases

Crushing dust is collected by bag filters before discharge

Spraying dust is recycled by the powder recovery system of To further strengthen the philosophy of green production and standardize the management of waste gas emissions

the equipment and reused the Company has conducted professional training for operators managers and technicians related to waste gas

Curing waste gases are discharged after water spraying mist treatment which included the operation skills of waste gas treatment equipment maintenance methods safety

removal and activated carbon adsorption precautions and environmental protection laws and regulations.Thermal cleaning furnace waste gases are discharged after

secondary activated carbon adsorption treatment

N M H C s p a r t i c u l a t e Acid mist from the laboratory center is treated by lye spray Waste gas treatment process renovation

Waste gases from matters acrylonitrile tower and then discharged

processes styrene etc. Organic waste gases from the laboratory center are treated

To further reduce greenhouse gas emissions

by secondary activated carbon adsorption and then and achieve ultra-low emissions of atmospheric

discharged pollutants Changhong Air Conditioner has

Welding fume and laser cutting waste gases are treated by upgraded and renovated major waste gas

cartridge dust collectors and then discharged treatment processes including upgrading the

Waste gases from hazardous waste storage rooms are wave soldering waste gas treatment process

discharged after secondary activated carbon adsorption from “dry filtration + UV photodissociation” totreatment “three-stage filtration + UV photodissociationWave soldering and three-proofing+ secondary activated carbon adsorption”; and coating waste gas treatment facilitiesThe upgrading and substitution of inks coatings and

cleaning agents in the Company’s air-conditioning industry upgrading the three-proofing coating waste gasare comprehensively promoted with low VOC content as the treatment process from “dry filtration + activatedstandard reducing VOC emissions from the source carbon adsorption” to “three-stage filtration+ secondary activated carbon adsorption”.Meanwhile an online monitoring system has

Waste gases from Collect waste gases in a sealed system and treat them with been introduced to monitor the operation of the

hazardous waste NMHCs a secondary activated carbon adsorption device before Online monitoring interface of waste gas treatment facilitiesfacilities in real time to ensure stable and reliable

storage room discharge operation.

53 54Report Chairman’s About Changhong Deepening ESG

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Waste Gas-Related Indicators 2024

Its environmental performance was assessed at the C-class enterprise level while its

Total waste gas emissions Waste gas emission intensity Particulate matter (PM) emissions subsidiary Zhongke Meiling achieved a B-class rating. Additionally the Company maintained

6.08 Tons 0.0002 Tons per million 0.47 Tons a 100% compliance rate for standardized solid waste disposal.

revenue(RMB)

Nitrogen oxide (NOx) emissions Volatile organic compound (VOC) emissions

0.27 0.67 Waste management programTons Tons

Solid waste management 1. Conduct monthly filing in Anhui Province’s solid waste system as required

2. Ensure solid implementation of three preventive measures for solid waste namely

Note The above-mentioned data includes emissions from Changhong Meiling Jiangxi Meiling Mianyang Meilingand Zhongke Meiling. “anti-leakage anti-loss anti-dissemination”

3.Strictly implement the solid waste collection storage transfer management

Noise Pollution Control regulations

The Company takes noise management seriously and has implemented targeted measures to minimize Hazardous waste management

environmental pollution caused by noise. During the reporting period third-party pollutant monitoring was 1. Conduct monthly reporting in Anhui Province’s solid waste system as

required

conducted by Changhong Meiling Changhong Air Conditioner and Ridian Technology. The results confirmed that 2. Develop the year’s hazardous waste management and transfer plans

all noise emission indicators met the required standards. 3.Strictly implement the solid waste collection storage transfer management

regulations

01 Effectively block noise transmission 03 Equip personnel working in high-noise Wastes generated in the Company’s operation include general waste and hazardous waste. For the management paths by installing noise barriers environments with personal protective of solid waste the Company has clearly designated particular places for placement and set up clear markings

noise walls sound-absorbing cotton Noise equipment such as earplugs. At the regularly filed the general solid waste generated in the park established a solid waste disposal ledger and ensured

and other soundproofing facilities. prevention same time conduct regular hearing

and control tests and health monitoring for staff so standardized transfers.measures that noise-induced health problems can In terms of hazardous waste the Company has formulated a detailed hazardous waste management plan based on

be detected and dealt with in a timely the Hazardous Waste Management Plan established a hazardous waste management ledger applied digital means

manner. for real-time monitoring of hazardous waste and prepared and refined the emergency disposal plan minimizing

leakage risks. The Company has also cooperated with qualified professional third-party organizations to collect and

02 Implement vibration isolation measures for noise 04 treat hazardous waste on a regular basis.Monitor the noise level in the caused by vibration such as using elastic connecting park to ensure that it meets

components (eg. springs or rubber pads) between the standard

machinery equipment and foundations to prevent Type of waste Major waste Treatment/Disposal method

vibration energy from being transmitted to other

structures thereby reducing the spread of noise.General waste (recyclable) Waste cartons waste Sort waste and commission qualified

copper and waste metal entities for recycling

C o m m i s s i o n q u a l i f i e d e n t i t i e s fo r

Waste Management General waste Domestic garbage and incineration treatment to decompose

(non-recyclable) labor protection products harmful waste materials into harmless

Changhong Meiling has continuously established and improved waste treatment and disposal control measures substances

clarified waste management requirements measures and management objectives and ensured orderly

Commission qualified entities for

implementation of waste management initiatives. During the reporting period the Company was not classified as a Hazardous waste Hazardous waste landfill and incineration treatment

key entity under environmental supervision.

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Identification of Risks and Opportunities and Mitigation Measures

Indicators Related to Waste Disposal 2024

Risk factor Description of risks and Impact opportunities level Impact duration Mitigation measures

Hazardous waste generation Hazardous waste generation per million revenue(RMB)

671.75 0.02 Stricter energy consumption Strengthen policy research and Tons Tons per million revenue(RMB) restrictions and policies may Medium- to Low proactively promote process

lead to production restrictions long-term

Policy and modificationsor penalties

Non-hazardous waste generation Non-hazardous waste generation per million revenue(RMB) regulatory

31712.26 Tons 1.11 risksTons per million revenue(RMB) Tightening carbon emission Medium- Optimize energy structures to reduce

policies will increase carbon Medium

term carbon emission intensity

costs

Note The above-mentioned data includes that from Changhong Meiling Hongmei Intelligent Jiangxi Meiling Mianyang Meiling Introduce intelligent energy

Changmei Home Appliances Ridian Technology Zhongke Meiling Zhongshan Changhong and Changhong Air Conditioner. Inefficient energy Medium- management systems to improve

management will lead to High

term efficiency and reduce energy

Strengthening Energy Management higher costs consumption

Operational

Four-Element Framework for Energy Management risks/ Equipment aging will lead to Medium- to Maintain and upgrade equipment

High

Governance Related to Energy Management opportunities reduced efficiency long-term regularly to ensure efficient operation

To further enhance energy management deepen energy conservation and emission reduction efforts raise Fluctuations in energy prices Medium- to Sign long-term energy supply contracts to

corporate awareness of energy efficiency and optimize energy utilization the Company has established a Lowwill result in rising costs long-term secure costs

comprehensive energy management system and formulated and issued the Energy Management Regulations

which clearly defines responsibilities and implementation pathways for energy conservation and emission Monitor and respond to government

reduction. These include design controls for energy-efficient process renovations management of key energy- policies on tax cuts tariff reductions or

consuming equipment and facilities energy data collection analysis and continuous improvement. Additionally reforms in the energy category such as Government subsidies and tax

Policy and hydroelectricity natural gas and steam

the Company has set up an Energy Management Team responsible for overseeing and managing overall energy incentives for energy-saving regulatory Medium- to and promote the implementation of

consumption setting and breaking down annual energy control targets and incorporating energy and resource technology renovations as Highopportunities long-term government energy-saving award and

well as green finance support

efficiency into performance assessments. subsidy projects and seek policy supportfor low-carbon transition

Utilize green finance tools to lower

Strategies Related to Energy Management financing costsprojects and seek policy

supportThe Company adheres to the principle of “empowering mechanisms stimulating internal potential expandingrevenue sources and reducing costs continuously” in its energy control strategy. Externally business units are Green transition will enhance

Strengthen green branding initiatives

encouraged to leverage policies and resources to actively seek government subsidies and reform incentives through Brand value corporate image and boost

Medium Long-term regularly disclose sustainability reports

various channels and lower operational costs. Internally the Company works to enhance cross-departmental opportunities investor confidence in and enhance corporate reputation

collaboration extensively explore energy-saving potential from multiple perspectives such as management sustainable development

optimization process modifications and technological upgrades and formulate practical science-based integrated

energy control plans and implementation measures. To incentivize participation the Company has established an External External energy supply can All external energy supply costs must be

empowerment and incentive mechanism to foster innovation and actively engage employees to innovate in energy energy supply expand business scope High Short-term collected to ensure a balance between

management. These efforts aim to continuously improve energy efficiency effectively control energy expenses and opportunities increasing corporate revenue energy consumption and expenditure

support the Company’s green and sustainable development goal.

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Impact Risk and Opportunity Management Related to Energy Management

Energy Management Measures

Changhong Meiling places a high premium on the impact risk and opportunity management related to energy

management. For specific energy-consuming processes procedures and equipment we conduct in-depth Energy Consumption

consumption analyses of major energy sources to identify potential risks and energy-saving opportunities and

systematically examine energy-consuming equipment and their efficiency-influencing factors. We have determined The main energy sources used in the Company’s production and operation are purchased electricity gasoline

the intensity of energy performance improvement opportunities based on three aspects: technical feasibility diesel natural gas steam and renewable energy.economic feasibility and adverse effects (safety quality and the environment). Meanwhile we have established To better promote various energy saving and emission reduction initiatives the Company has taken measures to

corresponding control measures plans and targets and kept monitoring operational control measures and optimize the energy structure and vigorously introduce renewable energy such as building distributed rooftop

effectiveness. photovoltaic power stations and actively purchasing green power.During the reporting period we implemented energy consumption monitoring for energy-intensive equipment

on a shift daily and monthly basis specifically analyzing characteristic parameters such as the start-up rate the Case

qualified product rate and the energy consumption per unit of output. We drew energy consumption curves for

key equipment and conducted benchmark management by comparing operational characteristic parameters Distributed photovoltaic power generation project

among similar types of equipment through analogy or normalization analysis identifying performance gaps and

To actively promote the green transition the Company has developed distributed photovoltaic (PV) power

improvement strategies.generation projects tailored to its actual scenarios. Changhong Meiling has installed distributed rooftop

Indicators and Targets Related to Energy Management PV power stations on nine of its buildings while its subsidiary Ridian Technology has installed 0.71934

In alignment with legal and regulatory requirements national standards and the Guidelines as well as our megawatts of PV panels. These projects operate under aoperational realities we have set specific targets for energy management topics and continuously tracked their “self-generation for self-consumption with surplus powerimplementation. fed into the grid” model ensuring that the generated

During the reporting period we successfully achieved our energy management targets. electricity first meets internal demand while any excess is

integrated into the national grid. This initiative has yielded

Indicator Target Timeframe Progress during reporting period significant social and environmental benefits.Reduce energy cost per unit by 10% In 2024 the Company’s total photovoltaic power Short-term Achieved

Energy compared to the previous year generation reached 4367800kWh. PV power stations

management Reduce total energy cost by 10%

compared to the previous year Short-term Achieved Case

Note The above-mentioned energy management improvement targets are mainly applicable to the production and manufacturing

systems the Quality Assurance Department and Administration Department. Green power utilization

The Company actively explores the market-

oriented trading of green power. During the

reporting period it purchased more than

20000 green power certificates and consumed

38917200 kWh of green power.

The Company has obtained IS0 50001:2018

energy management system certification.

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Energy Consumption Energy-Saving InitiativesOf which: total amount of The Company’s photovoltaic In response to the national Energy Conservation Publicity Week’s slogan “Green Transition and EnergyTotal amount of electricity used purchased green power generation Conservation Initiative” the Company formulated its 2024 Energy Control Plan and established a dedicated

190.089 Million kWh 38.9172 Million kWh 4.3678 Million kWh energy management task force. Internally it has implemented a comprehensive energy conservation and emission

reduction strategy ensuring regular progress tracking and supervision. The Company has continuously upgraded

its production processes and equipment to enhance energy efficiency while promoting and practicing green office

initiatives embedding energy-saving efforts into daily operations to collectively drive energy conservation and

Total gasoline consumption Total diesel consumption Total natural gas consumption

consumption reduction targets.

16.48 Tons 143.20 Tons 2.7410 Million cubic

meters

Thermal power Liquefied petroleum Percentage of renewable

(steam) consumption gas consumption energy consumption As of the end of the reporting period

37140 13.06 22.77 Changhong Meiling and its subsidiaries Million kilojoules Tons %

had obtained 84 energy conservation and

environmental protection certificates.Total integrated energy Total energy consumption

consumption per million yuan of revenue

29164.20 Tons of 1.02 Tons of standard coal per

standard coal million revenue(RMB)

Note The above-mentioned data includes that from Changhong Meiling Hefei Industrial Hongmei Intelligent Jiangxi Meiling

Mianyang Meiling Changmei Home Appliances Ridian Technology Zhongke Meiling Zhongshan Changhong and Energy-Saving Upgrades

Changhong Air Conditioner.The Company has conducted an in-depth analysis of energy consumption in its production and

Digital Energy Management manufacturing process and reduced energy consumption by optimizing production processes and

improving equipment efficiency.To enhance its energy management system the Company has actively advanced digital energy management by

developing and continuously optimizing the “Meiling Energy Management Platform”. This platform integrates

an electricity demand management system and a key energy consumption online monitoring system enabling

precise measurement automatic data collection and real-time monitoring of critical energy-consuming Case

equipment. Covering major energy sources such

as water electricity steam and natural gas the During the reporting period the Company upgraded its extrusion line by replacing the 120mm screw

platform has been applied to daily energy statistics with the 130mm screw resulting in a 20% increase in production capacity and a 5% reduction in energy

analysis monitoring and early warning providing consumption. Additionally the aluminum casting heating rings were replaced with energy-efficient heating

data support for optimizing energy consumption rings leading to an accumulated energy savings of 20 kWh per ton.structures and implementing energy-saving

technological upgrades effectively improving

energy efficiency.

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Case Green Office Initiatives

The Company installed electric remote switch The Company has implemented a series of green office measures in response to environmental protection

valves to control steam heating ensuring that initiatives. These efforts aim to reduce resource consumption lower office-related carbon emissions and

steam heating time is kept within an effective promote environmental sustainability.range to prevent energy waste caused by

early activation. After the upgrade the system

Power and water management in office areas

achieved an annual savings of 200 tons of

Before improvemen After improvement Install energy control responsibility signs prioritize the use of natural light and steam.eliminate unnecessary electricity usage. Replace hallway lights in office areas with

sound-activated lighting.Upgrade air conditioning circuits in living quarters with dedicated control lines

Case and under centralized management. Set air conditioning temperatures based on

environmental conditions to ensure energy efficiency while maintaining employee

During the reporting period Changhong Air comfort.Conditioner upgraded a vacuum suction Adjust streetlight operating schedules based on day and night duration and replace

cup system for the complete machine. By certain streetlights with solar-powered alternatives.redesigning the suction cup structure the Encourage the use of energy-saving devices and appliances place water conservation

project significantly reduced compressed reminders near faucets and enhance regular inspections to identify and fix leaks in

air consumption during operation leading office areas preventing water waste.to a 50% decrease in compressed air usage Upgrade pipelines to minimize water waste.per unit. Before improvement After improvement

Office supplies management

Case Advocate paperless office initiatives to reduce the consumption of paper and printing

materials by reducing paper documents and encouraging electronic communication

via emails and internal office systems. During the reporting period the Company

To re d u ce h e l i u m co n s u m pt i o n a n d m i n i m i ze t h e reduced paper consumption by 3705700 sheets compared to 2023 a 47% year-on-

consumption of scarce gases Changhong Air Conditioner year decrease.added two helium purification systems in its helium leak Place paper-saving reminders in restrooms of office areas.detection process. These systems helped recover over 80% of

helium significantly improving the recycling efficiency of this

limited natural resource. Advocating green lifestyles

Install waste sorting bins to promote sustainable waste management.Set up new energy vehicle (NEV) charging stations to encourage eco-friendly

commuting among employees.The helium purification system

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Water Resource Utilization

Energy Conservation Promotion

Changhong Meiling strictly complies with the Water Law of the People’s Republic of China the National Water

The Company actively organizes a series of energy conservation promotional activities during the Energy Saving Action Plan and other relevant laws and regulations. The Company has formulated a series of policies

Conservation Week including poster campaigns specialized inspections and training sessions. Leveraging including the Water Resource Management System the Water Saving Management Measures and the Basic Water

digital screens online media platforms and other communication channels the Company has effectively Saving Regulations which define the objectives principles measures and responsibilities for water resource

disseminated energy-saving philosophies fostered a strong energy conservation culture and raised management. In 2023 in accordance with the Evaluating Guide for Water-Saving Enterprises (GB/T 119-2018) the

employee awareness driving high-quality and sustainable corporate development. Company was recognized as an “Anhui Province Water-Saving Enterprise” as it met the relevant standard.Water Resource

The Company places great emphasis on water resCoourncse ummanpagteiomnent requiring all departments to regularly inspect

and maintain water supply pipelines faucets and other water facilities to prevent leakage and waste. To further

optimize water usage the Company has implemented water-saving equipment and appliances across its facilities.Water conservation reminders are prominently displayed at water consumption locations and routine inspections

and maintenance are conducted to detect and repair leaks. These measures ensure the efficient use of water

resources and contribute to the Company’s sustainable development goal.Key performance in 2024

Water consumption per

Total water consumption Total water savings million yuan of revenue

823326.48 Cubic 10819.00 Cubic 28.79 Cubic meters

meters meters per million

revenue(RMB)

Total amount of recycled water Cubic meters

434271.13 Cubic 52.75 %

meters

Note The above-mentioned data includes that from Changhong Meiling Hongmei Intelligent Jiangxi Meiling Mianyang Meiling

Poster campaign Hefei Industry Ridian Technology Zhongke Meiling Zhongshan Changhong and Changhong Air Conditioner.Case

Implementation of Water Saving Measures

Jiangxi Meiling has established an Energy Saving and Emission Reduction Task Force led by the General

Manager with department heads serving as deputy leaders and unit heads as team members. This task

force designates personnel to record regular meter readings at all water consumption locations performs

in-depth analyses of water consumption intensity and inspects the integrity of water-consuming equipment

to prevent leaks and waste. During the reporting period Jiangxi Meiling implemented a series of effective

water conservation measures consuming 19100 cubic meters of recycled water and reducing water

consumption intensity to 0.6 cubic meters per 10000 yuan of revenue. These efforts have significantly

Energy conservation training and promotion improved water efficiency and laid a solid foundation for the Company’s green and sustainable

development.

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Water Risk Assessment Developing the Circular Economy

Changhong Meiling actively supports China’s 14th Five-Year Plan for Circular Economy Development and strictly

During the reporting period we employed the World Resources Institute (WRI) Water Risk Assessment Tool to complies with laws and regulations such as the Energy Conservation Law of the People’s Republic of China

model water availability scenarios for Changhong Meiling and its subsidiaries. The results indicated that Hefei City and the Circular Economy Promotion Law of the People’s Republic of China. The Company adopts a refined

Mianyang City and Jingdezhen City face high water risk levels. To proactively mitigate such potential risks we have management model setting multiple circular economy targets including energy saving and emission reduction

adopted a comprehensive approach including creating emergency water storage facilities recycling and reusing increasing the proportion of recyclable and renewable materials in products and more. Through various energy-

water resources implementing water-efficient equipment and enhancing water saving promotional campaigns saving initiatives the Company has reduced energy consumption and prevented and minimized waste generation.continuously strengthening our water resource management capabilities. We have prioritized the use of recyclable and renewable materials and continuously promoted lightweight

packaging to enhance resource efficiency. Additionally we have actively advocate and implement “trade-in”

Water risk assessment results programs reducing the energy consumption impact of long-term product usage. By recycling discarded appliances

we contribute to the realization of a circular economy.类别 Hefei City Mianyang City Zhongshan City Jingdezhen City

2024 Key Performance

Physical risks to

water resources Very high (4-5) Very high (4-5) Medium-low (1-2) High (3-4) Total material consumption in

production and packaging Consumption of renewable materials

Water stress Very high (>80%) Very high (>80%) Low (<10%) Medium-high (20-40%) 1171101.81 Tons 807487.36 Tons

Drought risk Medium-high (0.6-0.8) Medium (0.4-0.6) Medium (0.4-0.6) Medium (0.4-0.6)

Note The above-mentioned data includes that from Changhong MeilingMianyang Meiling Zhongke Meiling Zhongshan

Groundwater Medium-low Changhong and Changhong Air Conditioner.level decline (0-2cm/year) Not significant Not significant Not significant

Case

“Trade-In” programs

Hefei City Changhong Air Conditioner has proactively Mianyang City responded to the Action Plan for Large-Scale

Equipment Upgrades and Consumer Goods

Trade-Ins and the Measures to Support Large-

Jingdezhen Scale Equipment Upgrades and Consumer

Goods Trade-Ins . It has actively promoted

trade-in initiatives by organizing a total of

1759 promotional events during the reporting Events and posters in the garden community

period. All collected old air conditioners were

dismantled and properly reused by Kuaiyitian

a subsidiary of Changhong Group ensuring

Zhongshan City

that the “trade-in” initiative is accompaniedby an effective “old appliance recyclingprocess”. The efforts have contributed to the

expansion of the circular economy industry

The overall water risk in the locations of Changhong Meiling and its subsidiaries by providing a stable supply of more raw “Home Expo Trade-Ins” live streaming event

materials for the recycling sector.

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Case

Ecological and Biodiversity Conservation

Packaging material recycling

Changhong Meiling and its subsidiaries actively respond to international initiatives and agreements including

Changhong Meiling focuses on improving the workshop

environment enhancing production eff iciency the United Nations Convention on Biological Diversity and the 2030 Agenda for Sustainable Development. The

meeting high-end product manufacturing standards Company also follows domestic regulations such as the China Biodiversity Conservation Strategy and Action Plan

and increasing resource recycling rates. We work to (2023–2030) conducting in-depth analyses of the potential impact of its business activities on biodiversity and

promote the standardization of packaging containers the ecological environment. The Company advocates for integrating biodiversity conservation into all aspects of

to reduce employees’ operation time and minimize daily operations and actively participates in initiatives such as soil erosion prevention and ecological restoration to

natural resource consumption. By replacing traditional minimize negative environmental impacts at the source. Through practical actions the Company strives to advance

cardboard boxes with EU standard containers or turnover ecological restoration efforts.carts for all supplier materials we are gradually realizing Comparison of original non-reusable packaging (left)

a cardboard box-free manufacturing process enabling and current reusable packaging (right) Case

recyclable and reusable packaging solutions.Changhong Air Conditioner adheres to the principles of lightweight reduction and recyclability when selecting Changhong Air Conditioner’s contribution to ecological and biodiversity conservation

packaging materials. While ensuring product quality it continuously improves packaging material utilization and

recycling rate thereby reducing production costs and conserving natural resources. Changhong Air Conditioner takes ecological and biodiversity conservation seriously. In 2024 the company

Additionally the company encourages suppliers to adopt recyclable packaging materials. By the end of the revised and issued key environmental management policies including the Environmental Protection

reporting period over 95% of front-end suppliers used recyclable packaging and more than 80% of local suppliers Responsibility Management Measures and the Pollution Prevention Management Measures. Additionally

reused packaging materials significantly reducing both procurement costs and packaging material consumption. it conducted a systematic risk assessment across the entire product lifecycle and studied the surrounding

ecosystem flora and fauna. According to a compliance analysis against relevant ecological protection laws and

regulations Changhong Air Conditioner and its subsidiaries are not located within ecological protection red line

In 2024 Changhong Air Conditioner zones and their operational areas align with local environmental impact assessment plans. There are neither

prompted motor suppliers to choose nature reserves nor protected wetlands in the vicinity. The environmental impact of the manufacturing process

green recycled plastic packaging is controllable and does not pose a significant threat to ecology or biodiversity.drastically reducing packaging

waste.Comparison of original non-reusable packaging (left)

and current reusable packaging (right)

To practice the green and sustainable development

philosophy and reduce the amount of solid waste generated

during the product life cycle Changhong Air Conditioner

is actively exploring lightweight solutions for product

manuals. The company has introduced an innovative

hybrid model that combines a simplified printed guide

with a digital user manual gradually replacing traditional

paper-based manuals. By 2024 the company had fully

transitioned to digital manuals leading to a projected

paper consumption reduction of over 70%. The effort has

Comparison of original manual (left) and not only effectively reduced the consumption of resources

electronic manual (right) for commercial but also further fulfilled the company’s commitment to

central air conditioners sustainable development.

69 70Report Chairman’s About Changhong Deepening ESG

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Advancing Green Manufacturing

Case

Developing Green Products

Changhong Meiling closely follows industry trends in green efficient and energy-saving technologies firmly Production line upgrades

upholding sustainability as a clear and guiding principle. The Company adopts a preventive approach integrating During the reporting period Changhong Meiling actively responded to the call for carbon reduction and

environmental protection concepts throughout the entire product lifecycle—from raw material procurement energy conservation by upgrading its production lines. The application of variable frequency screw pumps in

product design manufacturing and packaging to product recycling—to continuously drive the green transition of plastic vacuum forming machines led to a 60% reduction in pump energy consumption while an upgraded

its products. heating system lowered heating energy consumption by 40% significantly contributing to energy savings

and emissions reduction while ensuring production quality. Additionally new extrusion equipment improved

The Company prioritizes the use of recyclable and renewable materials which are production efficiency by 15% achieving a 10% reduction in energy consumption and lowering carbon

Raw in line with regulations such as Waste Electrical and Electronic Equipment Directive emissions thereby promoting efficient and sustainable manufacturing.material (WEEE) and Restriction of Hazardous Substances Directive (RoHS). On the intelligent transformation front the Company introduced

procurement Apply bio-based materials in bulk integrating a certain proportion of straw bamboo

industrial robots to replace manual labor in tasks such as gluing casing

flour and other biodegradables into raw materials to reduce plastic usage. handling core component transfer and automatic edge trimming—

processes that are repetitive and pose safety risks. Following the

upgrade the production line’s average efficiency increased by 17.5%

Enhance energy efficiency: Continuous R&D efforts focus on developing high- while the defect rate decreased by 6% on average.efficiency and low-energy-consuming products.Standardized design: Core components are standardized across product lines

Product reducing the variety and quantity of parts.design Eco-friendly refrigerants: Replace R22 refrigerants (including fluorocarbon

compounds that harm the ozone layer) with R290 (propane) the most

environmentally friendly alternative.Green equipment upgrades: Upgrade production lines and outdated equipment to

Product improve efficiency eliminate high-energy-consuming and non-compliant devices

while reducing the consumption of scarce resources such as copper aluminum

manufacturing and tin to enhance the Company’s clean production. In alignment with green manufacturing requirements Changhong Air Conditioner accelerated the

Process innovation: Develop new surface decoration techniques to replace industrialization of air conditioning evaporators smaller-diameter condensers and new materials. The

traditional coating processes improving material recyclability. company invested approximately RMB 70 million in upgrading green production equipment including the

installation of advanced environmentally-friendly and energy-efficient manufacturing systems and technical

Develop low-carbon and eco-friendly packaging materials to replace non- upgrading of outdated equipment for complete machines and electronic control production lines. Over

Product recyclable packaging. 100 high-energy-consuming and non-compliant sets of

packaging Adopt a simplified paper guide and an electronic version for user manuals to equipment were phased out.reduce paper consumption. During the reporting period Changhong Air Conditioner

replaced traditional wave soldering machines with two

nitrogen wave soldering machines which reduced solder

Incorporate the concepts of being detachable repairable and reusable in product

Product dross waste by 40-50% per machine effectively addressing design to improve the secondary utilization rate of the products and mark the

recycling the high waste generation issue in conventional soldering materials well to reduce the difficulty in the recycling and disposal of the products

processes.at the disposal stage. The nitrogen wave soldering machine

71 72Report Chairman’s About Changhong Deepening ESG

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Case

Green products

The Company continuously drives technological innovation in high-efficiency products advancing the

To further reduce metal resource upgrade of green products. Changhong Conditioner has independently developed a super grade-1 energy

c o n s u m p t i o n t h e c o m p a n y efficiency cabinet air conditioner series which leverages the composite condensing heat exchange

established two fully automated technology and dynamic refrigerant flow matching technology. These innovations enable rapid cooling and

smaller-diameter demonstration lines heating while significantly improving heat exchange efficiency and boosting the energy efficiency ratio. Under

for the two products resulting in an standard usage conditions this series achieves an annual performance factor (APF) of 5.0. Compared to a

annual copper resource savings of grade-1 energy efficiency product of the same capacity (APF 4.20) it can save over 300 kWh annually further

17.15 tons and significantly cutting enhancing energy conservation and reducing household electricity consumption.

down raw material consumption.Case

Eco-friendly packaging materials

Changhong Meiling has actively pursued research and development Changhong Conditioner’s super grade-1 energy efficiency cabinet air conditioner series

in green and sustainable packaging materials focusing on reducing

non-recyclable materials optimizing packaging structures and

adopting lightweight designs to minimize material usage. Key

initiatives include developing paper-based packaging to achieve

100% recyclability of packaging materials introducing expanded Using the super high-efficiency compressor centrifugal fan ultra-

polypropylene (EPP) foam packaging bases to realize a 10% low thermal conductivity VIP technology and multi-component

reduction in packaging weight replacing non-recyclable expandable ultra-low thermal conductivity foaming system the Company

polystyrene (EPS) foam in refrigerator interior protective components has developed a super grade-1 energy-efficient refrigerator

entirely with eco-friendly expandable polyethylene (EPE) paper- that consumes 30% less energy than its grade-1 counterparts.based composite protection or EPP foam protection. Compared to previous models this refrigerator series can reduce

greenhouse gas emissions by 528 kg CO e over a 10-year lifecycle.

73 74Report Chairman’s About Changhong Deepening ESG

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Low-carbon product certification Building Green Factories

During the reporting period we actively promoted the establishment of a full-lifecycle carbon emission As a front-runner in prioritizing energy saving in green development within the home appliance industry

management system. We engaged third-party certification organizations to conduct carbon footprint Changhong Meiling was certified as a “National Green Factory” in 2018. The Company has recognized green

assessments for three refrigerator models and three washing machine models in accordance with the ISO development as the basic corporate strategy and continuously promoted the building of green factories across its

14067 product carbon footprint quantification standard. By constructing a full-lifecycle assessment model subsidiaries in line with relevant evaluation standards.

covering the manufacturing distribution usage and end-of-life stages we accurately quantified greenhouse

gas emissions at each phase. The successful certification of these products not only provides data support Case

for further low-carbon product improvements but also marks substantial progress in the development of the

Company’s green product portfolio laying a solid foundation for future environmentally-friendly product To further enhance the green rating of its factory buildings Changhong Air Conditioner having already met

innovations. the standards of the Green Building Evaluation Standard (GB/T 50378) and the Green Industrial Building

Evaluation Standard (GB/T 50878) in its original design replaced over 400 conventional 150W LED work

lamps with 100W high-efficiency industrial LED lamps the most cutting-edge solutions in the industry.This upgrade maintains optimal factory illumination while significantly improving energy efficiency and

extending the lifespan of the lighting system resulting in an annual electricity savings of approximately

120000 kWh.

Refrigerator (MRF-252W) Carbon Refrigerator (MRF-424W) Carbon Refrigerator (MRF-431W) Carbon

Footprint Certification Footprint Certification Footprint Certification

F r o n t - L o a d i n g W a s h i n g F r o n t - L o a d i n g W a s h i n g F r o n t - L o a d i n g W a s h i n g

M a c h i n e s ( M G 8 0 - 1 4 5 8 6 B 2 ) Machines (MG100-14596B2H) Machines (MG120-14658D2H)

Carbon Footprint Certification Carbon Footprint Certification Carbon Footprint Certification

75 76Social Responsibility

Changhong Meiling actively fulfills its social responsibilities. The company consistently adheres to the

quality philosophy of "the enterprise's life depends on its products and the soul of the product lies in

its quality". Through a stable supplier cooperation system the company provides comprehensive and

personalized solutions to customers ensuring the quality of its products and services. The company

continuously explores new technologies and develops new products accelerating the development of new

quality productive forces. In terms of talent team building the company values the development and well-

being of its employees creating a safe and comfortable working environment improving company benefits

and incentive mechanisms and stimulating employees' creativity and work enthusiasm. Additionally we

actively respond to the rural revitalization strategy participate in social welfare activities and contribute 05

Meiling's strength to the sustainable development of society.Report Chairman’s About Changhong Deepening ESG

Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index

Product and Service Safety and Quality Risk and Opportunity Identification and Mitigation Measures

Four-Element Framework for Product and Service Risk Factor Risk/Opportunity Description Impact Impact Mitigation Measures

Safety and Quality Issues Level Duration

Governance Related to Product and Service Safety and Quality Upgrades in domestic and Strengthen policy tracking and research

international energy efficiency

Medium to promptly obtain and analyze the latest

To enhance the quality level of the company's products and improve the quality supervision system the company standards and safety regulations High

Long Term domestic and international standards to

has established a three-tier quality management structure. may render existing products non- ensure product compliance

Policy and compliant with new requirements

Regulatory

Through the General Quality Management Principles and the Risk Stricter customer service-related

Implementation Plan for Quality Supervision and Evaluation of the policies may require increased Clarify compliance standards for all after-Medium to

Joint-Stock Company the strategic positioning and responsibility resources for compliance Medium sales service processes and regularly update Long Term

boundaries of quality management are clarified. A quality supervision management potentially raising them based on the latest regulations

and evaluation mechanism covering the entire industry chain has been operational costs

established forming a quality management framework with Meiling's

Substandard raw materials or Regularly evaluate suppliers phase out

characteristics leading the development of quality work.components provided by suppliers low-performing ones and introduce high-

T op-Level High Short TermBased on the characteristics of the product lines the company may affect overall product quality alternatives to ensure the quality of

Design implements a four-level classification management (Level 1 to Level performance and safety raw material supply

Hierarchical 4) for business units/subsidiaries. Differentiated quality goals risk

Control thresholds and audit supervision are set to achieve a grid-based Utilize advanced technologies such as AI to Lack of strict quality inspections in

supervision that is "comprehensive horizontally and thorough achieve 100% automated inspection of key production may lead to inconsistent High Short Term

production processes significantly reducing

Closed-Loop Mechanism vertically". Operational product quality or safety hazards quality risks

Through mechanisms such as quarterly quality review meetings Risk

and cross-departmental joint meetings the company promotes the Establish a digital after-sales platform

implementation of quality improvement measures ensuring the leveraging the nationwide technical service

dynamic optimization of the internal control system. Inadequate after-sales service network to implement a timely response

systems may result in delayed Medium to mechanism of "online diagnosis—local

Medium

handling of customer complaints Long Term dispatch".damaging brand reputation Regularly conduct customer satisfaction

surveys and adjust internal management

Strategy Related to Product and Service Safety and Quality mechanisms based on feedback

Changhong Meiling has established a "Dual-Loop Drive" model to deepen the implementation of its quality Research and develop high-efficiency low-Government implements subsidies

carbon and environmentally friendly new

strategy. In terms of the "inner loop" system management the company adheres to the quality policy of "customer Policy and for home appliance purchases and Medium to

Regulatory High products quickly understand consumer

first total quality source control and continuous improvement". Driven by the dual loops of "system management Opportunity trade-in programs to encourage Long Term preferences and seize a larger market share

and closed-loop resolution" tools such as FMEA (Failure Mode and Effects Analysis) are introduced during the consumption under this policy incentive

design and development phase to achieve full lifecycle product management. In terms of the "outer loop" market

environment the company insists on adopting advanced standards continuously innovating and improving High-quality products and services Maintain high-quality products and services

effectively ensuring product quality and process stability. A policy early warning system has been established and Brand Value can foster long-term customer loyalty organize customer activities increase brand Medium Long Term

the standardization committee regularly identifies energy efficiency regulations in countries/regions worldwide. Opportunity enhance brand value and increase promotion and enhance the company's

corporate revenue influence

Through the PLM（Product Lifecycle Management） system rapid iteration of product parameters is achieved

ensuring the market competitiveness of the products.

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Management of Impacts Risks and Opportunities Related to Product

and Service Safety and Quality Indicators and Goals Related to Product and Service Safety and Quality

Changhong Meiling has formulated the Comprehensive Quality Risk Control Measures established a risk

In accordance with laws and regulations national standards The Guidelines requirements and the company's

management organizational structure and clarified the quality risk control process. The company conducts

actual conditions we have set relevant goals for product and service-related issues and continuously track the

comprehensive quality risk control activities to enhance overall quality risk management capabilities by

progress of these goals.standardizing risk identification feedback release and improvement. This approach helps prevent major quality

During the reporting period we achieved the tasks and objectives related to products and services.risks reduce quality-related losses and minimize market impact to the greatest extent.The company has built a three-tier prevention and control system of "identification traceability and elimination"

Target Time Frame Progress During Reporting Period

covering the entire process from product design raw material procurement production and manufacturing

logistics and transportation to compliance certification. This system ensures the identification traceability and Product

QualityQuality Zero major quality incidents Short Term No major quality incidents occurred

elimination of risk sources.Product Quality 100% compliance with energy Short Term All product lines passed CQC

The Comprehensive Quality Risk Control Measures have been established along with efficiency standards certification

a risk management organizational structure and a clear quality risk control process. Customer Service Comprehensive customer satisfaction Medium to Long rate above 90% Term Completed

Comprehensive quality risk control activities are carried out to enhance overall quality

risk management capabilities by standardizing risk identification feedback release and

improvement. This helps prevent major quality risks control quality-related losses and Product Quality Management

minimize market impact to the greatest extent.The company adheres to the quality philosophy of "the enterprise's life depends on its products and the soul of the

product lies in its quality". By maintaining high standards and strict requirements the company controls product

quality continuously improves and innovates enhances core competitiveness and increases customer satisfaction

Risk

Identification and loyalty.The company and its subsidiaries have obtained ISO9001 quality management system certification and CNAS

accreditation gaining authoritative recognition for their management and technical capabilities. This provides

The company has implemented strong technical support for product development production and quality control.a "180-Day Review" mechanism

covering all stages including Closed-Loop Emergency

product design raw material Control Response

procurement production and A digital after-sales platform has

manufacturing logistics and been established leveraging the

transportation and compliance nationwide technical ser vice

certification standards. Through network to achie ve a t imely

w e e k l y r i s k i d e n t i f i c at i o n response mechanism of "online

and monthly summaries the diagnosis—local dispatch". The

company dynamically monitors service appointment rate within

changes in risk sources and 2 hours reaches 98.27% and the

ensures the actual closed-loop service completion rate within 24

improvement of risk sources. hours achieves 100%.

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Product Quality Assurance Case

Guided by the quality policy of "customer first total quality source control and continuous improvement"

the company strengthens the awareness of upstream processes serving downstream processes encourages During the 2024 Quality Month the company deepened employees' understanding and awareness of

all employees to actively participate in quality work and enhances their sense of responsibility and quality quality through activities such as quality pledges specialized training and knowledge competitions.consciousness. In daily operations the company strictly implements this policy continuously advances quality This strengthened the foundation of quality management and further enhanced the overall quality

improvement measures optimizes production processes and steadily improves product quality year by year. consciousness of the company's employees.During the reporting period the company's product qualification rate reached 98.98%.Product Quality Testing

To ensure that the quality of components semi-finished products and finished products meets the company's

quality standards during incoming inspection in-process inspection and final inspection the company has

established the Inspection and Testing Control Procedures to standardize product quality inspection and

testing processes.In terms of testing capabilities the company's laboratory has been continuously certified by CNAS for 16 years.From a performance perspective the laboratory has comprehensive testing capabilities including refrigeration

performance safety performance EMC noise RoHS freshness preservation simulation voice laboratory and Product Quality Incidents

physical strength meeting the testing requirements of international regional and national standards such as

BV and SGS. In terms of equipment measurement the company has established six measurement standards The company has formulated the Market Issue Handling Regulations which defines quality incidents

across four categories: length thermology mechanics and electricity. It actively conducts internal self- specifies information flow management after incidents occur and outlines response time requirements.inspection and calibration to ensure the timeliness and effectiveness of measurement and testing. In 2024 the company did not experience any major quality-related incidents involving products or services.Product Quality Training Product Recall Management

The company places great emphasis on building a high-quality talent In accordance with the Interim Provisions on the Recall of Consumer Products and other relevant laws and Key Performance in 2024

pool through training and various activities creating an excellent administrative regulations the company has specifically established the Refrigerator and Cabinet Product Recall

talent platform. The company has established a Six Sigma certification the company organized Management Regulations. These regulations clarify the trigger conditions implementation processes and division

incentive mechanism to fully motivate employees and encourage approximately 40company- of responsibilities for product recalls ensuring that recall actions can be swiftly and effectively initiated when

them to enhance their professional skills. It organizes "Quality Month" wide and departmental-level product safety hazards are identified thereby minimizing potential harm to consumers. For quality issues in

activities and hosts quality group achievement competitions providing quality management training products exported to overseas markets the company has formulated the Export Market Quality Issue Handling

employees with a stage to showcase their talents and exchange sessions. Regulations to ensure the rapid and effective resolution of any defects that may affect consumer health and safety

experiences. These efforts continuously improve the company's quality safeguarding customer interests. During the reporting period the company did not experience any recall incidents.management level and capabilities.Customer Service and Rights

Case

In September 2024 the company held the Changhong Responsible Marketing

Meiling 2024 Quality Group Achievement Competition where The company strictly adheres to laws and regulations such as the Advertising Law of the People's Republic of

various QC groups shared their experiences and exchanged China the Anti-Unfair Competition Law of the People's Republic of China and the E-Commerce Law of the People's

results. The achievements from this competition won second Republic of China ensuring that marketing activities are executed effectively and in compliance. The company

prize in the provincial QC competition and first prize in the rigorously controls the messaging across information output channels such as television print media portals and

municipal QC competition. streaming platforms ensuring that external promotional information is accurate legal and truthful.

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Product Compliance Promotion Customer Relationship Management

The company has established relevant management regulations to standardize sustainable promotion With the goal of creating a better life through service the company advocates for deeply understanding user needs

and responsible marketing. It commits to ensuring clear marketing narratives respecting consumer rights and responding promptly making "customer satisfaction" the core objective of its service efforts. From pre-sales

opposing unfair competition avoiding the provision of false information about competitors and refraining in-sales to after-sales the company has fully implemented a "zero-distance" service model successively launching

from exaggerating environmental and social benefits. The company strictly reviews the use of advertising service channels such as the official website corporate WeChat Weibo Quick Customer Service and a nationwide

language in product sales across all business departments to prevent consumer misunderstandings unified customer service hotline as well as internet access points like e-commerce platforms JD.com and Taobao.of advertisements packaging names or descriptions. This standardizes brand promotion and avoids This ensures seamless round-the-clock multi-scenario connectivity with users.inappropriate outputs that could lead to negative social impacts or legal risks for the brand. To quickly respond to service demands the company has introduced a service commitment of "not delaying a

single minute" leveraging its nationwide technical service network to provide timely professional maintenance

Responsible Marketing Training services for a full range of smart home appliances including refrigerators freezers and washing machines. This

achieves a one-stop service model of "access-resolution-follow-up". The company standardizes the appearance

The company regularly conducts training on responsible marketing for business departments and behavior and language of on-site service personnel utilizing "person order time" slice-based refined management

all marketing employees. Additionally the company actively participates in the "Live E-commerce and Moment of Truth (MOT) management for key service links thereby enhancing service efficiency and quality.Administrative Compliance Guidance Training" organized by the Hefei Administration for Market Regulation In response to evolving user needs the company has launched an "integrated delivery installation service and

to ensure that marketing behaviors align with the principles of responsible marketing. collection" service improving user experience and satisfaction.Additionally the company regularly conducts customer visits ensuring smooth coordination during major retail

Enhancing Product Accessibility promotions and periodic visits to top customers.The company is customer-centric precisely responding to consumers' Handling of Customer Feedback

evolving demands for interactive experiences and personalized needs. The company has established systems such as the Customer Complaint Management Measures the Export Market

It is committed to creating convenient and high-quality product services Quality Issue Handling Regulations and the Product Quality Accountability Management Regulations. These

through technological innovation continuously enhancing product systems comprehensively manage customer complaints through classification methods division of management

accessibility. Leveraging the Zhihuijia model the company has introduced responsibilities identification standards handling processes control assessments and analysis and improvement

distributed interactive experiences and developed AI-powered home building a rigorous and efficient customer complaint management system.appliances building an interconnected intelligent and convenient home To promptly respond to service demands the company has set up branches in provincial capital cities across the

ecosystem.country collaborating with over 6000 authorized service providers and more than 10000 service outlets

Smart Care for the Elderly covering cities counties towns and villages. With over 20000 star-certified service engineers the company

Through voice interaction technology the company has implemented a "three-in-one" provides 7×24-hour service response. Engineers offer on-site services within 24 hours for urban areas and 48

functionality of "chatting reminders and alarms". Elderly users can operate home appliances hours for suburban areas after appointment scheduling. Meanwhile the company has established comprehensive

via voice commands and the system can provide timed reminders for medication or daily mechanisms for handling user service demands information management follow-up assessments complaint

tasks. In emergencies saying "help me call the police" can remotely notify family members management and maintenance parts management ensuring the smooth delivery of nationwide home appliance

and activate monitoring. technical services.Scenario-Based Solutions for Mothers and Infants Online Channel

Offline Channel

The company has developed the "Play with Peace of Mind Control with Ease Sleep with Consumers can provide feedback

Assurance" ("Three Assurances") scenarios. These include remotely monitoring children's through multiple channels such as Hei Feedback For businesses with physical stores

activities via smartphones cross-category control of home appliances to soothe crying Mao Complaints the 12315 platform Channels customers can directly visit the store to

children (e.g. remotely playing cartoons) and voice-controlled air conditioning functions that and the 4008 after-sales hotline. report issues to staff who will resolve

avoid disturbing sleeping infants. the problem on-site or transfer it to the

relevant department.

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Receive Promptly receive customer complaints through multiple channels and Domestic Customer Satisfaction Survey

Complaints record key details of the feedback;

In 2024 the Domestic Marketing Division conducted satisfaction surveys among users and distributors

Classify and

Assess Classify issues based on complaint content and assess their severity; and mainly designed the questionnaire based on product performance and functionality corporate image

product pricing sales and service. The specific results are as follows:

Assign Tasks Assign tasks to the responsible department or designated personnel based on the classification;

Change from

Investigate The responsible department quickly investigates collects relevant Survey Target Survey Dimension Satisfaction Rate Previous Year

and Verify evidence and verifies the situation;

Develop Domestic Comprehensive increase 0.63

Solutions Formulate targeted solutions based on the verification results; Customers Satisfaction 96.82% percentage

points

Communicate Inform the customer of the investigation results and proposed

Feedback solutions and seek their input;

Implement Execute the agreed-upon solution promptly with full tracking to

Solutions ensure proper handling;

Follow-Up Conduct follow-up within three working days after resolution to confirm customer satisfaction. Overseas Customer Satisfaction Survey

In 2024 the International Marketing Division conducted a customer satisfaction survey targeting overseas

Customer Complaint Handling in 2024 customers. The survey covered all business units in key overseas markets including international large-

scale manufacturers with their own brands customers with large chain supermarkets and hypermarkets

Number of complaints related Customer complaint Customer complaint and retail-oriented clients primarily consisting of wholesalers and traders of various sizes. The survey

to products and services resolution rate response rate focused on eight aspects including order execution product functionality appearance delivery timelines

851 100 100 % and service quality. The specific results are as follows:%

Average response time for Average resolution time

customer complaints for customer complaints Change from

0.5 24 Survey Target Survey Dimension Valid Feedback Satisfaction Rate Previous Year hours Within hours

Overseas Comprehensive 80 increase 1.30

Customers Satisfaction responses 98.80% percentage

Customer Satisfaction Surveys points

The company regularly conducts satisfaction surveys targeting distributors service providers and users. The

survey content covers product performance and functionality corporate image product pricing sales and service

among other aspects.

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Complaint Handling ProcessReport Chairman’s About Changhong Deepening ESG

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Product Knowledge Promotion Customer Training

Product Knowledge Dissemination Air Conditioning Product Training

In 2024 the company's home air conditioning division conducted product knowledge training competitive

Adhering to the principle of "user experience first" the company has established an active service system product comparison training and sales skills training for a total of 1041 core customers across national

covering the entire product line of refrigerators freezers and washing machines. Through exhibitions basic channels JD specialty stores and retail cloud platforms. Throughout the year a total of 12365

distribution of promotional materials and inviting customers and industry-leading media to visit the training sessions were held covering over 50000 participants.company (factory) customers can witness the production process and quality control procedures helping

them gain a deeper understanding of product information.JD Appliance & Changhong Meiling Co-Branded Store Factory Tour

Additionally the company utilizes online platforms such as WeChat Official Accounts Xiaohongshu

Douyin and live streaming rooms to provide real-time answers to customer inquiries making it easier

for customers to understand product details. By hosting new product launch events such as the "Meiling

Frozen Fresh Full Lineup Refrigerator Launch Conference" and the "Meiling Five-Door Refrigerator Launch 2024 Home Air Conditioning Training

Conference" customers can experience product performance and advantages firsthand. In 2024 the central air conditioning division conducted 29 empowerment training sessions for its overseas

distributor teams covering corporate culture product knowledge and sales skills reaching over 3000

participants.Meiling Frozen Fresh Full Lineup Refrigerator Meiling Five-Door Refrigerator Launch Conference

Launch Conference 2024 Central Air Conditioning Training

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Data Security and Customer Privacy Protection

Refrigerator and Washing Machine Product Training

Information Security

For refrigerator and washing machine products Changhong Meiling's Refrigerator and Washing Machine

Center conducted on-site training services across all national channels. These sessions covered basic Information Security Management System

channel customers (e.g. Lingpao customers O2O JD specialty stores Tmall) key channel (KT) customers

and customers in lower-tier markets. A total of 145673 training sessions were held throughout the year Changhong Meiling follows the principles of "combining human and technical defenses focusing on core asset

reaching over 200000 participants. security prevention-first and security compliance". The overarching policy for information security management

is "prevention-first hierarchical responsibility scientific management and ensuring security". The company

strictly complies with laws and regulations such as the Cybersecurity Law and Cybersecurity Level Protection

2.0. It has established relevant management systems including the Information Security and Confidentiality

Management Regulations Computer Equipment Management Regulations Security Training Management System

Key Business Information Systems and Master Data Management Regulations and Confidential Position Personnel

Confidentiality Management Rules. These systems standardize the closed-loop management process for handling

information security incidents including organization and functions classification and grading reporting handling

summarization and accountability.The company has established an Information Security and Confidentiality Committee and an Information Security

and Confidentiality Office. The Committee is responsible for formulating the overall information security policies

for the company and its subsidiaries and clarifying the strategic goals for information security development. The

Office is responsible for information security planning organizing information security operation and maintenance

and emergency response support.To ensure the security of internal data interactions the company conducts audit management for the protection

of critical data before during and after processes meeting information security protection requirements and

safeguarding the confidentiality integrity and security of corporate sensitive information. For any violations of the

company's information security and confidentiality regulations that result in significant impacts or losses to the

company or individuals investigations assessments and handling will be carried out in accordance with relevant

regulations. During the reporting period the company did not experience any data security breaches.Information Security Management Platform

The company has built a "zero-trust" industrial internet cybersecurity architecture system with the cybersecurity

situational awareness platform at its core. It has established an integrated "cloud-network-end" cybersecurity

protection platform and an industrial control security protection platform based on a "white environment"

mechanism. This achieves the isolation of two networks (office network and industrial control network) and the

visualization of the cybersecurity posture across three networks (office network industrial control network and 5G

SA private network). Centered on the three elements of "assets threats and vulnerabilities" the platform enables

mechanisms such as rapid localization of security incidents early warning of unknown risks and traceability of risk

events.On the data side the company has constructed a data security protection platform. By employing control

measures such as encryption identity authentication and authorization it ensures the confidentiality integrity

and availability of sensitive corporate information. This protects sensitive data throughout its lifecycle including

2024 Refrigerator and Washing Machine Product Training

editing storage access and transmission while enabling rapid traceability of data security incidents risk analysis

and event monitoring.

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Information Security Safeguards

Protecting Customer Privacy

Use professional firewalls for network boundary protection. Customer Privacy Protection Management System

Network Deploy professional EDR (Endpoint Detection and Response) protection platforms

Security on terminals. The company has established key systems such as the Cybersecurity and User Privacy Protection Management

Management Manage employee internet usage through specialized hardware devices. Measures User Information Security Management Measures and Service Information System Data Security

Use strong encryption software to manage important data and files.Management Measures. These systems improve the customer privacy protection management mechanism and

employ multiple technical measures including data encryption access control and regular audits to ensure

the integrity and confidentiality of information. In the event of an information leak the company will take strict

All network devices and application servers must implement strong password accountability and act promptly to mitigate losses. During the reporting period the company did not experience

Password policies. any customer information leakage incidents.Management Relevant files and software data must be encrypted using appropriate software.Implement unified identity authentication and control across the network.Customer Privacy Protection Measures

When employees require ERP access the applicant must complete an ERP role

menu permission request form which is approved by their supervisor before When collaborating with customers contractors and other relevant parties the company ERP signs confidentiality agreements and related clauses. It requires these parties to

Permission being submitted to the ERP administrator for authorization.Every six months the company organizes a review of ERP permissions across Confidentiality maintain the confidentiality of company information and prohibits them from disclosing

Management all business departments to ensure their rationality. The system administrator Agreements customer information to third parties without written consent. Violations may result in

adjusts permissions in the system based on the review results. liability for infringement compensation; if a leak causes economic losses to the company

the responsible party bears full liability for compensation.Information Security Management Measures

The company has issued the Notice on Standardizing the Use of Confidentiality Labels for

Confidential Documents in China. It strictly adheres to the "classification and labeling" requirements

The company conducts monthly information security briefings releasing basic Document for trade secrets classifying grading and labeling all information assets within the

Information Labeling information security safeguards cutting-edge security incidents and compliance Management department. Any electronic documents emails paper documents or drawings without Security risk warnings. It also holds irregular information security training sessions to proper labeling are prohibited from being circulated in any form.Training enhance employees' awareness and capabilities strengthening the company's

information security management and protection.Based on employees' job roles and permissions the company manages and transmits

The company provides information security and confidentiality training to relevant Preventing customer privacy information by department/employee ensuring that information

personnel and requires them to sign Confidentiality Agreement and Cybersecurity Cross-

Department does not cross or disperse between departments. Customer information is isolated Confidentiality Responsibility Statement. It classifies and grades the confidentiality levels of by department and responsibility to prevent disorderly flow of information between

Agreements relevant file information (including user information) specifies confidentiality Data Sharing departments.periods and access scopes and defines access controls and transmission security

measures for related files.When transmitting important customer information internally the company uses

Security The company regularly conducts system registration evaluation security testing Anonymization anonymization to effectively prevent employees with authorized access to sensitive data

Testing and and attack-defense drills for core business systems. It also performs regular from unintentionally misusing or exposing it.Drills recovery drills for business systems to ensure their security and stability.

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Risk and Opportunity Identification and Mitigation Measures

Risk Factor Risk/Opportunity Description Impact Impact Level Duration Mitigation Measures

Stricter domestic and Strengthen policy research and

international environmental proactively identify new suppliers.Policy and regulations and new energy Medium Medium Sign environmental agreements Regulatory Risk efficiency standards in China Term with core suppliers to ensure the

may increase operational costs raw materials they provide comply

if new suppliers are sought with relevant standards

Fluctuations in raw material Optimize supply chain management

prices and the higher costs of and sign long-term procurement

low-carbon materials (e.g. Medium agreements with material suppliers.

2024 Key Performance eco-friendly refrigerants Medium to Long Explore low-cost alternative

renewable plastics) compared Term materials and collaborate with

Number of data security and privacy-related trainings Average training duration per person of data to traditional materials may suppliers to reduce procurement

security and privacy-related trainings increase production costs costs

24 Times 2 Hours Supply chain disruptions due to natural disasters Prioritize local suppliers and avoid

Operational (e.g. earthquakes floods) sourcing raw materials from conflict/

Coverage rate of data security and privacy training Risk or geopolitical conflicts may High Medium disputed regions. affect raw material supply Term Establish a diversified supplier

89 % and production schedules network to avoid over-reliance on a

potentially increasing single supplier or region

production costs

Note Statistics cover Changhong Meiling Hongmei IntelligentJiangxi Meiling Mianyang MeilingRidian Technology Changmei

Living Appliances Changhong Air Conditioning and Zhongke MeilingZhongshan Changhong. Inefficient information flow Medium Promote supply chain digitization to across supply chain segments High to Long achieve real-time information sharing

Win-Win Cooperation may lead to inventory buildup between the company and its supply delivery delays or quality issues Term chain

Four-Element Framework for Supply Chain The application of technologies

Management Issues Technological such as IoT AI and blockchain Medium Continuously optimize and improve

Governance Related to Supply Chain Management Innovation

can optimize supply chain the SAP and ISRM Smart Supply Chain

Opportunity management improving

Medium to Long Collaboration Platform to enhance

transparency and response Term supply chain management efficiency

The company places great emphasis on the sustainability of its supply chain. To strengthen supply chain risk speed

management capabilities it has formulated and issued the Supplier Management Measures and Supplier Risk Growing consumer and

Management Standards ensuring that all aspects of the supply chain are standardized secure and risk-controlled. Green regulatory focus on Medium Adhere to green procurement

Additionally the company has established the SAP and ISRM Smart Supply Chain Collaboration Platform which Transformation environmental protection Medium to Long policies and prioritize suppliers with

Opportunity presents opportunities for green Term environmental certifications

integrates procurement production and sales information with supplier systems. This enables real-time tracking transformation

of raw material inventory production progress and transportation status achieving systematic and standardized

management of the supplier lifecycle and ensuring the continuous and stable development of the supply chain. Building close collaborations

Brand Value with upstream and downstream Establish a supply chain collaboration

Strategy Related to Supply Chain Management Opportunity enterprises can enhance supply Medium

Long platform to share demand forecasts

chain efficiency and strengthen Term and production plans

brand competitiveness

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Management of Impacts Risks and Opportunities

Related to Supply Chain Management

The company has built a scientific and comprehensive supplier system establishing clear evaluation criteria for Suppliers are required to create a fair just and harmonious working environment Labor

supplier selection review assessment and evaluation. It implements differentiated management of suppliers in safeguarding employees' legal rights including reasonable compensation equal Relations employment opportunities and ample career development space ensuring every

its database. To ensure the continuity and stability of the supply chain the company has established mechanisms employee can work efficiently with respect and care.for supply chain risk identification risk assessment and risk response. By leveraging digital platforms to reduce

information barriers with suppliers and enhancing communication and collaboration with partners the company

fully utilizes its strengths to promote harmonious stable and healthy supply chain development.Employee Suppliers are urged to prioritize employees' life and health establish a sound safety

Indicators and Goals Related to Supply Chain Management Health management system equip necessary safety protection facilities and conduct regular

and Safety safety training and emergency drills to eliminate safety hazards at the source and build a

Based on laws and regulations national standards the Guidelines requirements and the company's actual strong safety defense line for employees.conditions we have set relevant goals for supply chain management issues and continuously track their progress.During the reporting period we achieved the tasks and objectives related to supply chain management.Suppliers are encouraged to actively practice the concept of green development adopt

Category Target Time Frame Progress During Environmental eco-friendly materials and processes in production and operations reduce energy

100% signing rate of the Supplier Social Responsibility Protection consumption and pollutant emissions and participate in ecological protection initiatives

Supplier ESG Agreement Short Term Completed to minimize negative impacts on the external environment.Management Over 20% of suppliers certified by ISO14001 environmental

management system Short Term Completed

Localized

Procurement Local supplier ratio exceeding 30% Short Term Completed Suppliers are required to adhere to the principles of honesty trustworthiness integrity Business and self-discipline in their business activities resolutely resist bad behaviors such as

Ethics

Supplier Management commercial bribery and unfair competition and maintain a fair and orderly market

order.Changhong Meiling has established a comprehensive supplier management system formulating the Supplier

Evaluation Management Standards to standardize strict supplier access and evaluation processes. The company

regularly conducts audits and assessments to continuously improve supplier capabilities and qualifications.We prioritize collaborating with suppliers that are reliable in quality reputable environmentally friendly and 2024 Key Performance

scientifically managed. Annually we evaluate suppliers based on product quality new product collaboration

and business cooperation compiling a list of qualified suppliers. The company implements a tiered management Total number of suppliers at Number of suppliers with

mechanism based on supplier performance evaluation results and regulates suppliers' breach of contract and the end of the reporting period Localization rate of suppliers sustainability certifications

dishonest behaviors through the establishment of a Supplier Blacklist thereby continuously strengthening supplier

management. 2106 Suppliers 36.45 % 850 Suppliers

The company comprehensively considers multiple dimensions of indicators to accurately classify suppliers into four

levels (strategic suppliers preferred suppliers general suppliers and suppliers to be excluded) implementing a Proportion of suppliers Amount of responsible (green)

differentiated management mechanism. with sustainability certifications procurement

Supplier ESG Management 40.36 % 1236667.8310000 RMB

In the era of sustainable development we are committed to building a sustainable supply chain to lay a solid

foundation for the company's long-term development and social responsibility. Changhong Meiling pays attention Note 1：The above data includes Changhong Meiling Hefei Industrial Hongmei Intelligent Jiangxi Meiling Mianyang Meiling

Changmei Living Appliances Ridian Technology Zhongke Meiling Zhongshan Changhong and Changhong Air Conditioning.to suppliers' ESG performance and has formulated the Supplier Social Responsibility Agreement. From a lifecycle

2：Green procurement includes expenditures on materials with RoHS certification and recyclable materials.

perspective the agreement sets requirements for suppliers in multiple key areas of sustainable development.

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Supplier Training

Risk Mitigation

The company places great emphasis on enhancing

supplier capabilities and is committed to collaborative

development with suppliers. To help suppliers improve Supply Chain Supplier diversification strategy:

The company actively expands its supplier network. When a supplier is

their awareness of quality control and sustainable Stability Risk

unable to deliver due to natural disasters strikes or raw material shortages

development the company organized supplier training Changhong Meiling can quickly source required components from other

activities during the reporting period with a total of 276 suppliers to avoid production halts.participants and a cumulative training duration of 859

hours. Supply Chain Risk early warning mechanism:

Delivery Risk Changhong Meiling has established the SAP and ISRM smart supply chain

Supply Chain Security collaboration platform which integrates procurement production and sales

data from internal departments with supplier information systems. This

Supply Chain Risk Management enables real-time monitoring of raw material inventory production progress

and transportation status. Additionally the company has set up risk warning

indicators. When the inventory level of a key raw material falls below a

Risk Identification certain percentage of the safety stock or when a supplier's delivery delay rate

reaches a certain threshold the system automatically issues a warning.Based on the principles of prudence and comprehensiveness the company has defined four major risk

categories among which commercial risks and quality/technical risks are mandatory identification items.To respond to the call for green transformation and mitigate risks posed by stricter domestic and international

environmental regulations and new energy efficiency standards in China the company requires suppliers to provide

materials that comply with environmental directives such as RoHS REACH WEEE and green packaging as well as

Commercial Quality/ Credit risks Quality the environmental regulations of target market countries and regions.Risks Technical Risks and integrity management

risks system risks and

PCN risks Conflict-Free Minerals

Changhong Meiling consistently prioritizes the issue of conflict mines in its supply chain management striving

to build a conflict-free supply chain. The company requires suppliers to understand and establish a "Conflict

Minerals Policy" ensuring that the metals contained in the materials they provide such as tantalum tin tungsten

Risk Assessment and gold are not sourced from armed conflicts or illegal mining. The company has assembled a professional and

experienced audit team that in accordance with international standards and industry norms employs advanced

In the risk assessment process the company has testing technologies and scientific review processes to conduct comprehensive audits of suppliers' raw material

established specialized compliance evaluation high procurement channels traceability information management and internal control mechanisms.level

standards for identified risk items. By comprehensively medium

considering the potential loss and probability of level Industry Chain Collaboration and Cooperation

occurrence supplier risk items are classified into high low level Changhong Meiling leverages its comprehensive advantages to engage in specialized collaborations technical

medium and low levels to achieve more efficient risk support and resource sharing with suppliers and partners jointly promoting the green transformation and

management and control. sustainable development of the industrial chain.

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Case Innovation-Driven Development

Changhong Meiling's strategic partner visited the Innovation Hall and delved into the frontlines of washing Four-Element Framework for Innovation-Driven

machine manufacturing to gain insights into Meiling's industrial layout technological innovations and Issues

production operations. Following discussions during a symposium the strategic partnership between the two Governance Related to Innovation-Driven Development

parties was further elevated. In the future Changhong Meiling will continue to deepen its collaboration with

strategic partner empowering industry development and enhancing user life experiences. The company attaches great importance to and continuously strengthens the construction of its R&D innovation

system. It has established a technical R&D architecture consisting of two institutes (Research Institute and Advanced

Research Institute) and three centers (Testing and Experiment Center User and Product Development Center

and Innovation Design Center). Utilizing a dual-drive model of "independent R&D + collaborative innovation"

the company conducts innovative research across multiple fields continuously expanding the boundaries

of technological applications. In terms of internal system development the company has implemented over

20 innovation management regulations including the Product Design and Development Control Procedures

Technological Innovation Project Management Regulations Product Development Project Management Measures

Enterprise Technical Standardization Management Regulations Company Technical Expert Management Measures

Meiling R&D Points System Management Measures Technological Innovation Project Assessment Measures

Product Development Project Assessment Measures Annual Intellectual Property Special Assessment Plan Annual

Standards and Specifications Incentive Plan and Enterprise Technical Standardization Management Regulations.During the reporting period 8 of these regulations were updated and revised.Strategy Related to Innovation-Driven Development

Case Changhong Meiling consistently adheres to a market-oriented approach focusing on the development and

application of high-tech and new products. The company emphasizes research on new materials and processes

as well as the acquisition of proprietary intellectual property rights achieving a new pattern of "pre-researching

During the reporting period Changmei Living Appliances one generation reserving one generation and applying one generation" in technological research and product

officially joined the China Electrical Equipment Industry development. This has enabled the company to build its core technologies. In the future the company will continue

Association contributing Meiling's strength to the to advance in areas such as AI technology inverter technology simulation technology freshness preservation

development of the electrical equipment industry. technology refrigeration technology and new material technology.AI inverter simulation freshness refrigeration new material

Equal Treatment of Small and Medium technology technology technology preservation technology technology

Enterprises (SMEs) technology

Changhong Meiling applies the same payment terms to SMEs as it does to other enterprises never discriminating

based on company size. The company adheres to contractual agreements and repays debts on time. As of the end

of the reporting period there were no instances of overdue payments to SMEs.

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Risk and Opportunity Identification and Mitigation Measures

Impact Impact Indicators and Goals Related to Innovation-Driven DevelopmentRisk Factor Risk/Opportunity Description Level Duration Mitigation Measures

In accordance with laws and regulations national standards the Guidelines requirements and the company's

Developing smart home

appliances and energy- actual conditions we have set relevant goals for innovation-driven development and continuously track their

saving technologies Adopt a "small steps fast progress.requires significant capital running" model to shorten During the reporting period we achieved the tasks and objectives related to innovation-driven development.investment but market product development cycles.acceptance and the High Medium Collaborate with universities to Target Time Frame Progress During Reporting Periodcommercialization cycle of Term leverage academic resources

technologies are uncertain. address technical pain points Innovation-Driven Technology commercialization Completed (actual technology

The consumer education cost reduce R&D cycles and lower Development rate of 60% Short Term commercialization rate: 75%)

Market Risk for smart home appliances is trial-and-error costshigh posing a risk of market

promotion failure

Technological Innovation Management

Increasing consumer

demand for high-end and Fully implement the IPD (Integrated Product Changhong Meiling consistently prioritizes technological innovation as the primary task of its development strategy. personalized products

may lead to inventory Medium Medium Development) process to By focusing on technological and product innovation the company builds its core competitiveness solidifying

buildup if R&D directions Term establish a business- and the four cornerstones of "team technology platform and product". Leveraging its cutting-edge R&D team and

are misaligned with market customer-oriented R&D workflow advanced technological expertise the company continuously optimizes its technological innovation management needs creating a new pattern of coordinated development across multiple product categories including refrigerators

Insufficient patent protection Establish a patent early warning (and freezers) air conditioners washing machines major and small kitchen appliances and biomedical low-

for core technologies may High Short system to proactively avoid temperature storage equipment.Term

Intellectual lead to technology leakage infringement risks During the reporting period the company further strengthened its R&D investment continuously improved the

Property- International patent barriers Accelerate the localization of development of scientific projects the formulation and revision of technical standards and the construction of

Related Risks (e.g. EU energy efficiency Medium Medium technology and production

technological platforms. The R&D investment reached 801.4122 million yuan accounting for 2.80% of total revenue

standards) may restrict Term by establishing overseas R&D representing a 14.10% year-on-year increase compared to 2023.technology exports centers in advance

The dual-carbon goals drive

demand for high-efficiency Medium Accelerate the development of The R&D investment amounted accounting for representing a year-on-year increase ofMarket low-emission products low-energy environmentally

Opportunities making energy-efficient Medium to Long-term friendly products to strengthen 801.4122 million yuan 2.80 of total revenue 14.10 compared to 2023technologies and low-energy core competitiveness

products core growth areas

Management of Impacts Risks and Opportunities Related to

Innovation-Driven Development Innovation Management System

Changhong Meiling places great emphasis on managing the impacts risks and opportunities associated with The company attaches great importance to and continuously strengthens the construction of its R&D innovation

innovation-driven development. The company has established and improved systematic and scientific processes system. By vigorously promoting technological innovation the company enhances the creativity collaboration and

and methods to ensure that its strategies and operations can effectively address the challenges and opportunities systematic nature of its R&D system effectively improving the management efficiency of its innovation and R&D

brought by innovation-driven initiatives. These management processes are integrated into the company's overall efforts.risk management framework. For specific details please refer to Section III "Corporate ESG Governance (Sustainable

Development Risk Management)".

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Centered around its five major business segments—refrigerators and freezers air conditioners washing Technological Innovation Initiatives

machines major and small kitchen appliances and biomedical equipment—the company possesses a

number of national provincial and municipal-level scientific research and technical service platforms.These include: Efficient R&D Process

National-level platforms: 3 in total such as the National Enterprise Technology Center National

Industrial Design Center and National Postdoctoral Research Station. To more effectively drive R&D innovation the company has introduced and fully implemented the

Provincial and ministerial-level platforms: 9 in total including the Anhui Provincial Green and Integrated Product Development (IPD) process. This process is business- and customer-oriented managing

Energy-Efficient Refrigerator Engineering Technology Research Center Anhui Provincial Energy- the R&D workflow with a focus on cross-departmental and cross-system collaboration. It promotes close

Saving and Freshness-Preserving Green Refrigerator Engineering Research Center Anhui Provincial cooperation among R&D production and sales departments ensuring that technological innovations can

Intelligent Home Appliance Manufacturing Innovation Center and the Industrial (Refrigerator and be quickly transformed into actual products and brought to market.Freezer) Product Quality Control and Technical Evaluation Laboratory recognized by the Ministry of

Industry and Information Technology.IPMT (Integrated Portfolio Management Team)

Municipal-level platforms: 6 in total such as the Mianyang Enterprise Technology Center and the

Mianyang Air Conditioner Product Simulation and Lean Design Innovation Center.Business & Customer-Centric Decision Making

SPT (Strategic Planning Team) Market Planning Process

To continuously stimulate innovation attract and retain R&D personnel and effectively incentivize Product Development Process

their potential the company has implemented an R&D points-based management system. This system PDT (Product Development Team) Technology Development Process

breaks away from the "equal distribution" principle and establishes a points calculation rule based on

multiple dimensions including project level advancement of technical completion indicators technical TOT (Technology Development Team)

Tools & Enablers

Project Management Training & IPD Maturity

application value quality improvement and cost reduction. This quantifies the work of R&D personnel

rewarding more for more work and promoting merit-based advancement.In 2024 the R&D team across the the total workforce representing a year-on-year

company and its subsidiaries totaled of accounting for increase of

1781 individuals 16.90 % of the total 6.84 %

workforce

Percentage of R&D personnel received promotions and Industry-University-Research Collaboration

salary increases based on their R&D points ranking

70 The company actively engages in "Industry-University-Research Collaboration" maintaining close % partnerships with universities research institutions and other third-party platforms. Externally the

company continues to promote industrial cooperation. Relying on its provincial-level key enterprise

The company's central laboratory has obtained CNAS research institute the company has jointly established postdoctoral mobile workstations with academic

certification and its performance testing laboratory and institutions attracting high-level talent and continuously strengthening its technological innovation

noise laboratory have been recognized by international capabilities.organizations such as CSA (Canada) Bureau Veritas During the reporting period the company maintained long-term and close collaborations with universities

(France) LEC (UK) BRANDT (France) Electrolux GE and such as China Agricultural University as well as research institutions including the China Household

Electrical Appliances Research Institute Through various forms of technical cooperation and academic

OMNI. This further enhances the credibility of Meiling's

exchanges the company has solidified its theoretical foundation and continuously elevated its level of

laboratory testing capabilities and provides strong support

technological innovation.for the company's product exports.

2024 Hefei Postdoctoral Work Training Conference

105106

Cross-

Functional

Team

Innovation R&D Platform Innovation Incentive MechanismReport Chairman’s About Changhong Deepening ESG

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Case

Collaborative Achievements

Zhongke Meiling's innovatively developed centrifuge products have been adopted by prestigious

During the reporting period Changhong Meiling collaborated with Zhejiang institutions such as Tsinghua University and the Northeast Institute of Geography and Agroecology

University Hefei University of Technology and China Agricultural University on a Chinese Academy of Sciences. These products provide practical support for researchers in centrifugal

total of 4 scientific and technological projects of which 2 were completed and 2 theory studies and through Changhong Meiling's cutting-edge technology better serve research in

are ongoing. life sciences biological sciences and other advanced scientific fields ultimately contributing to the

In collaboration with Hefei University of Technology the company researched advancement of China's foundational science and technology.household refrigerator food preservation technology for portioned cooked meals

winning the First Prize of Science and Technology Progress Award of China Light

Industry Council. As part of this project the company led the formulation and

release of 2 group standards and published 2 academic papers.In collaboration with China Agricultural University the company researched the

flavor components and influencing mechanisms of fresh meat leading to the

formulation and release of 1 group standard.Case

Changmei Living Appliances through its collaboration with the Zhongke Meiling has established a deep collaboration with Fudan University in Shanghai launching a

China University of Geosciences (Wuhan) successfully developed a new scientific research scholarship program. The company will invest a total of 500000 RMB to support

basic medical research at Fudan University fostering academic research and providing strong support for

strontium-rich mineralized filter. Utilizing advanced mineralization

the growth of scientific talent in higher education.technology this filter effectively removes pollutants from water while

releasing trace elements such as strontium selenium and zinc which

are beneficial to human health. This innovation significantly enhances

the quality and health value of drinking water products.On-site Exchange for the Collaborative

Project with Zhejiang University: "Research

on Storage Characteristics and Health Factor

Regulation Technology of Aquatic Products"

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Industry Exchange Case

Industry collaboration and exchange serve as a crucial foundation for driving business development During the reporting period Changmei Living Appliances successfully participated in drafting the group

and technological innovation. Changhong Meiling actively organizes and participates in domestic and standard Technical Specification for Instant Water Heaters. This once again highlights Changhong

international industry innovation and technology exchanges engaging with peers with an open mindset Meiling's leading position in the water appliance sector and demonstrates the company's important role

to share best practices and industry trends. In 2024 the company continued to host and participate in in promoting industry technological innovation and standardization efforts.industry innovation and technology exchange events including China Refrigerator Industry Development

Conference China Household Appliance Technology Conference China Appliance Science & Technology

Conference IFA Berlin (Internationale Funkausstellung Berlin) the Appliance & Electronics World Expo

(AWE) in Shanghai and the Annual Conference of Anhui Provincial Association of Refrigeration. These

efforts have yielded significant results in strengthening industry technical exchanges and learning.Case

2024 Annual Conference and Sci-tech Exchange Third Meeting of the First Council of the Anhui T h ro u g h s c i e n t i f i c re s ea rc h ex p l o rat i o n a n d i n d u st r y

Conference of Anhui Provincial Association of Industrial Culture Association

Refrigeration collaboration Changmei Living Appliances successfully

participated in drafting the group standard Technical Specification

for Performance Testing and Characterization Methods of Range

Hoods.Category Led Drafting Participated in Drafting Total

2024 Refrigerator Industry Development 2024 China Household Electrical Appliances National Standards 16 35 51

Conference Conference

Industry Standards 6 9 15

Group Standards 7 16 23

Total 29 60 89

The company has participated in the formulation and revision of industry standards and group standards multiple

times contributing to the overall development level of the industry and the improvement of product quality.Summary of the Company's Participation in Drafting National Industry and Group Standards

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With a user-centric approach the company focuses on addressing user pain

In December 2024 Changhong Meiling as a member of the drafting working group participated in the

points. Following the product strategy of "AI + Wind Sensation Airflow and

National Household Electrical Appliances Standardization Technical Committee Secretariat's meeting in Air Conditioning Control" it upgraded its exclusive 360° dust-free and dual-wing wall-mounted

Hangzhou Zhejiang Province. The meeting focused on drafting two national standards: Specifications for Products units as well as the Panda Lazy cabinet units and introduced the "Super

User Experience Design Evaluation of Household and Similar Electrical Appliances and Design Specifications Energy-Saving" series of cabinet units. These efforts embody Changhong Air

for User Experience Laboratories of Household Electrical Appliances. Conditioning's brand philosophy of "Precision Engineering Comfort in Every

Degree".The company focuses on its core product lines guided by market demand

Major and Small and strengthens its R&D capabilities to optimize product structures. In the

Kitchen Appliances small appliance category the company continued to excel in core segments

launching products such as the N10 Fresh Water Series Tea Maker and the

second-generation Honeycomb Energy-Efficient Gas Water Heater.Adhering to the brand philosophy of "using products as the primary medium

Micro-Electro-Mechanical Systems (MEMS) to deliver core value to users" the company focuses on the life sciences sector.Technology: Launch Meeting for the Development Biomedical Equipment Based on user scenario needs it continuously advances product innovation

of Two National Standards and quality upgrades providing professional full-scenario solutions. This effort

has shaped a safe and stable brand image further enhancing the company's

Achievements in Technological Innovation influence.Innovative R&D Achievements

Based on its industrial technological expertise and professional advantages Changhong Meiling has

systematically organized its technological achievements according to the company's actual needs and Changhong Meiling's "Blue Oxygen Hand-Washing" Series Drum Washing

application directions. The company continuously promotes the industrialization of these achievements Machine combines the triple-force hand-washing-like technology with

providing productivity for its development creating value for users and injecting strong momentum into the blue oxygen residue removal technology reducing detergent usage

the industry's progress. while thoroughly cleaning and removing residues thereby minimizing

environmental pollution.Business Segment Industrialization Achievements

By accurately capturing market trends and consumer preferences the company has

Refrigerator (and focused on product upgrades centered around "freshness slimness narrowness

Freezer) Products and embedded design". In 2024 the company further strengthened its product

competitiveness solidifying its product identity with the "Meiling Fresh" "Meiling

In October 2024 the company launched the world's first air-

Slim" "Meiling Narrow" and "Meiling Embedded Design" series.cooled inverter kitchen refrigerator (Meiling Inverter Energy-

The company has deeply understood user needs rapidly enhanced its core Saving King). In the commercial kitchen refrigerator sector

Washing Machine technological capabilities and optimized its product portfolio. Building on its hand- Meiling pioneered inverter technology achieving energy

Products

washing-like drum series the company pioneered the "Blue Oxygen Residue Removal savings of over 45% leading the industry by a significant

Technology" and launched the "Blue Oxygen Hand-Washing" series. For pulsator margin.washing machines the company expanded its "Hercules" series lineup creating

distinctive products with strong brand identity.

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In 2024 Changhong Air Conditioning conducted key research on refrigerant flow control focusing on refrigerant R&D Innovation Honors

flow matching control expansion valve opening control and air conditioning performance matching tests. This The company's consistent and stable output of R&D achievements has been widely recognized by

led to the development of a patent portfolio for energy-saving air conditioning technologies based on adaptive government departments industry associations and the market earning numerous qualifications and

refrigerant flow regulation. Without increasing product costs the company significantly improved product energy honors.efficiency and applied these advancements to the "Super Energy-Saving" series products Q7V/EV. The results were

remarkable: the energy efficiency ratio of the 72Q7V/EV model exceeded the national standard by 19.05% while the

51Q7V/EV model exceeded it by 17.33% delivering an enhanced energy-saving experience for users. Award-Winning Service/Technology Name of Honor Award/Honor

2023 First Prize

Key Technologies and

of Science and

Equipment Innovation for

Technology

Quality Control in Cold Chain

Progress Award

Logistics of Pre-Made Meat

of China Light

Dishes

Industry Council

Meiling BCD-507WQ6S Meiling 2024 German Red

BCD-511WQ6F Dot Award

In 2024 Changhong Air Conditioning independently developed and launched the Q7A air conditioner. As the

industry's first fully dust-free fresh-air conditioner it leverages 5A fresh air technology to once again lead industry

development trends ushering in the era of "dust-free fresh air" for fresh-air conditioners.BCD-560WPBX Large Freezer

Air-Cooled Refrigerator BCD- Provincial-Level

507WPU9CDZX Constant New Product

Temperature Micro-Freezing Award

Fresh Freezer

113 114Report Chairman’s About Changhong Deepening ESG

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Award-Winning Service/

Technology Name of Honor Award/Honor

Award-Winning Service/

Technology Name of Honor Award/Honor

Frozen Fresh French Five-

Door Refrigerator BCD- Numerical Simulation Software Excellence Award at

510WP9BDZ Cloud- Development and Application the First Mianyang

Based Automatic Fault 20th China Household for Vibration and Noise in Data Application

Diagnosis Technology for Appliances Innovation Inverter Air Conditioner Innovation

Refrigerators Drum Washing Award Compressor Pipelines Competition

Machine LRS1AH100D AI

Adaptive Cloud Freshness

Preservation Technology

Development and Third Prize at the

Industrialization of Air 2024 "Data Factor

2024 Anhui Provincial Conditioning Software Systems x" Competition

Refrigerator (Open State) Exterior Design Patent Based on Digital Simulation Sichuan Division

Technology

Silver Award Finals

Intellectual Property Protection

Ministry of Industry

Development and and Information Intellectual Property System Construction

Industrialization of Air Technology's 2024

Conditioning Software "Digital Three The company places great emphasis on intellectual property (IP) management. In accordance with relevant

Systems Based on Digital Products" Application laws and regulations such as the Patent Law of the People's Republic of China the Trademark Law of the

Simulation Technology Scenario Typical Case People's Republic of China and the Copyright Law of the People's Republic of China the company has

List continuously improved its internal systems including the Trademark Management Regulations Detailed

Rules for the Implementation of Trademark Management Regulations Special Authorization Regulations

for Trademarks Patent and Technical Know-How Management Regulations Patent and R&D Collaboration

Chinese Association Management Regulations Intellectual Property Management Regulations and Intellectual Property

of Refrigeration's Protection Management Measures. These systems standardize the creation utilization protection and

"2023 Energy-Saving management of intellectual property ensuring that IP work is deeply integrated into the entire product R&D

and Eco-Friendly process.Super Energy-Saving Series Product Award" and Additionally the company has continuously refined its IP management and incentive mechanisms actively

Air Conditioners "Smart Energy-Saving building a digital IP management system (IPS system). This system enables full lifecycle management of

Pioneer" Honor at intellectual property unifying the application agency and response submission processes online with

the Air Conditioning complete process support and logging. This has further improved the efficiency of IP management and

Industry Development advanced IP management toward standardization and scientific rigor.Conference During the reporting period the company did not encounter any IP infringement litigation cases.

115 116Report Chairman’s About Changhong Deepening ESG

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Key perfomance in 2024 As of December 31 2024

Number of Invention Patents Number of Software

Number of Valid Patents Applied to Core Business Copyrights

3933 Patents 981 Patents 98 Copyrights

Statistical Scope: Changhong Meiling Hongmei Intelligent Jiangxi Meiling Mianyang Meiling Ridian Technology Changmei

Living Appliances Changhong Air Conditioning Zhongke Meiling Zhongshan Changhong.Governance of Scientific and Technological Ethics

IPS System Intellectual Property Management Changhong Meiling adheres to the Guidelines on Strengthening the Governance of Scientific and Technological

System Certification Ethics continuously improving its scientific and technological ethics system enhancing governance capabilities

and effectively preventing and controlling ethical risks. For AI applications in refrigerator big data research the

company actively conducts safety education and training continuously strengthening its understanding of AI ethics.Intellectual Property Protection Measures During the reporting period the company did not encounter any violations of scientific and technological ethics.Case

Risk Prevention and Infringement Response IP Application and Registration

In the development of AI-enabled air conditioning products the company consistently upholds a high sense

Before initiating business activities the company The company protects technological achievements of responsibility and strictly follows scientific and technological ethics principles. To provide high-quality

conducts IP infringement risk analysis identification generated during R&D through proactive patent services while protecting user privacy the company only collects and analyzes data related to the operation

and risk warnings for patents trademarks and applications. Product designs or patent applications of air conditioning products ensuring that the application of AI technology fully complies with relevant laws

promotional language ensuring that IP risks are are carefully crafted to avoid existing patented regulations and social ethical standards.controllable and managed effectively throughout the technologies preventing patent disputes and

business process. infringement.During product development R&D personnel (RD) and Employees

IP managers (IP) collaborate to conduct patent mining IP Awareness Training Four-Element Framework for Employee-Related Issues

and layout based on market demand establishing

a technical intelligence risk database and marking

To enhance employees' ability to manage IP risks Governance Related to Employees

patent technology guidelines.the company participates in IP protection lectures

The company has established a linkage mechanism Talent is the cornerstone of corporate development. The company places high importance on employees' rights and

organized by provincial municipal and industry

with internal departments and external organizations well-being establishing a robust employee management system valuing employee contributions standardizing

associations and conducts internal IP-related

for trademark registration patent applications

training sessions. employment practices and promoting value co-creation and benefit-sharing between the company and its

infringement risk analysis infringement risk avoidance

During the reporting period the company organized employees.and IP rights protection.During the reporting period Changhong Meiling 3 IP training sessions Strategy Related to Employees

in collaboration with external anti-counterfeiting with a total of 100

participants. Changhong Meiling has built a comprehensive training management system implementing systematic training agencies obtained over 400000 RMB in compensation

from cases involving trademark infringement and the plans process safeguards and resource allocation to meet employees' career development needs and the

production and sale of counterfeit products. company's strategic goals. The company focuses on core talent and adheres to a compensation philosophy of

"reflecting position value and performance orientation" establishing a compensation management system aligned

with the company's strategic and operational objectives.

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Risk and Opportunity Identification and Mitigation Measures

Indicators and Goals Related to Employees

Risk Factor Risk/Opportunity Description Impact Impact Level Duration Mitigation Measures

Based on laws and regulations national standards the Guidelines requirements and the company's actual

Establish a performance-oriented

flexible compensation mechanism conditions we have set relevant goals for employee-related issues and continuously track their progress.In labor-intensive production Create a regular communication During the reporting period we achieved the following employee-related objectives:

models employee platform hold periodic meetings

dissatisfaction with salaries Medium Short Term and respond promptly to employee concerns through a complaint mailbox

and working conditions may Reduce labor intensity and Target Time Frame Progress During Reporting Period

lead to labor conflicts dependency through smart

Other Risks manufacturing equipment such as Employee Female manager ratio exceeding 10% Short Term Completed

automated production lines Recruitment

Employee

Improve promotion and incentive Turnover Employee turnover rate below 5% Short Term Completed (actual turnover rate: 2.98%)

Intensified industry mechanisms. For core employees

competition may lead to Medium

High implement equity incentives or

the loss of core technical Term employee stock ownership plans Employee Employment

personnel to deepen their commitment to the

company

Compliant Employment

The carbon neutrality

policy drives enterprises Changhong Meiling strictly complies with laws and regulations establishing internal employment management

toward green manufacturing

transformation creating Develop employees through internal systems such as the Recruitment Management Regulations Social Responsibility Personnel Management

Other Medium to

demand for professionals Medium training systems to reduce the cost Regulations and Meiling Employment Information Disclosure Standards. These systems ensure a compliant and

Opportunities Long Term

skilled in low-carbon of external recruitment lawful recruitment and employment process fulfilling the company's responsibilities as a corporate citizen.technologies and providing Following the recruitment principles that put people first prioritize fairness equity and matching the right person

employees with career to the right job the company conducts recruitment activities in accordance with internal processes such as the

advancement opportunities

Recruitment Management Regulations. It employs various recruitment methods including social recruitment

campus recruitment and headhunting to attract top talent. The company emphasizes openness fairness and

transparency in its recruitment process establishing a fair democratic competitive and merit-based talent

Management of Impacts Risks and Opportunities Related to Employees selection mechanism to build a high-quality workforce.The company has formulated talent development management systems including the Meiling Talent Team Building

Plan Job Grade Management Measures Company Technical Expert Management Measures and Meiling Vocational

Skill Level Certification Implementation Measures. It has established vertical development channels across six

categories: management R&D technology

funct ion market in g an d pro duct io n . management production matching prioritize

Additionally the company has created put people the right fairness person to

horizontal career development pathways the Meiling Talent Team Building Plan first equity

implementing a dual-channel management Job Grade Management Measures

the right job

R&D Company Technical Expert Management marketing

model for professional and managerial roles.Measures and Meiling Vocational Skill Level

Each channel has multiple promotion levels Certification Implementation Measures

guiding employees' career development and

breaking the "glass ceiling" for talent growth. technology function

119 120Report Chairman’s About Changhong Deepening ESG

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Employee Employment and Composition

Changhong Meiling's Recruitment Process

The Human Resources Department receives recruitment requests

Develop Recruitment Plan and formulates a hiring plan Total Number of Employees

Recruitment information is released through multiple channels 14655 Person

Publish Recruitment Information both internal and external

Ensure fairness and transparency in the recruitment process

Candidate Screening through interviews written tests background checks public

and Interviews announcements and medical examinations

Number of Production Staff Number of Sales Staff Number of Technical Staff

Employee selection information process details and results

Public Announcement of are disclosed without omission through designated channels to

Hiring Information ensure transparency in recruitment outcomes 7410 Person 4458 Person 1911 Person

After the public announcement onboarding procedures are

Approval and Onboarding completed. All recruitment-related documents and records are

assigned to dedicated personnel for safekeeping and regular

archiving to ensure effective record management Number of Employees with Number of Financial Staff Number of Administrative Staff High School Education or Below

292 人 584 Person 9096 Person

The company strictly prohibits the use of child labor and forced labor safeguarding employees' basic rights in

recruitment treatment and promotion. In 2024 the company did not encounter any incidents involving child labor

forced labor harassment bullying or intimidation.Number of Employees Number of Employees Number of Employees with

with College Education with Bachelor's Degrees Master's Degrees or Higher

Prohibition of Child Labor and

Management of Underage Workers Prohibition of Forced Labor

2282 Person 3054 Person 223 Person

When recruiting the hiring entity must rigorously All employees hired by the company must be

check the identification documents of applicants employed on a voluntary basis. Any form of

Number of Female Proportion of Employees Proportion of Female

and confirm their accuracy before registering forced labor is strictly prohibited and deceptive Employees with Disabilities Executives Among Total Executives

them for employment. practices to lure employees to work in the factory

If a minor under the age of 16 is discovered any are not allowed. The company prohibits the 6835 Person 0.5 % 23.53 %

company personnel must immediately report to employment of prison labor.the relevant departments and take appropriate If the company uses violence threats or illegal

remedial measures. means to restrict personal freedom to force

For underage workers aged 16 or above but workers to labor employees may report to Number of Female Senior Social Insurance

Managers Coverage Rate

under 18 the company continuously monitors local public security authorities. If acts such

their health conditions to ensure their physical as humiliation corporal punishment illegal 4 Person 100 %

and mental well-being. searches or detention constitute a crime

the company will investigate and hold the

responsible parties accountable.

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Diverse Workplace

Changhong Meiling consistently adheres to a diverse equal and fair employment policy prohibiting all forms

of discrimination based on nationality gender age ethnicity disability or other factors. We respect employees

from diverse cultural backgrounds and religious beliefs striving to create an inclusive and diverse workplace Changhong Air Conditioning and its subsidiaries based on their production and operational

atmosphere. characteristics use labor dispatch and part-time employment to address peak-season labor

shortages. A total of approximately 2018 flexible workers were recruited.Prohibition of Discrimination Prohibition of Discrimination

and Exploitation and Exploitation

The company does not allow managers to T h e co m pa n y st r i ct l y p ro h i b i ts p h y s i ca l

engage in any coercive threatening humiliating punishment and verbal abuse of employees as Labor Dispute Resolution

or exploitative behavior toward employees well as sexual harassment and wage deductions

Changhong Meiling strictly complies with relevant laws and regulations such as the Labor Contract Law of

including gestures language or physical contact. as punishment. Violators will be warned or

E m p l o y e e s m a y f i l e c o m p l a i n t s a b o u t dismissed depending on the severity of the the People's Republic of China and the Labor Law of the People's Republic of China. By formulating internal

discrimination in writing or verbally. The offense. personnel management systems including the Human Resource Management Procedures and Labor Contract

company's management will assign investigators The company prohibits employees from making Implementation Management Measures and establishing an employee complaint platform the company fully

to address the complaints and provide a verbal sexually suggestive humiliating or otherwise safeguards employees' rights and provides channels for employee grievances. Additionally the company has

or written response to the complainant within 15 inappropriate comments or actions toward others designated specialized positions for labor relations responsible for effectively preventing and mediating labor

days. in the workplace. disputes resolving them at the earliest stage.During recruitment the company shall not inquire

about female applicants' pregnancy status or

require female applicants to take pregnancy tests

or set it as a precondition for employment. Direct Negotiation Between the Parties Concerned:

In the event of a labor dispute the involved parties should first attempt to resolve the issue

through equal and fair negotiation. If no agreement is reached the parties may apply for

mediation through a labor dispute mediation organization.Third-Party Mediation:

The company's labor union serves as the labor dispute mediation organization responsible

Creating Flexible Positions for receiving and mediating internal labor disputes. Mediation must be conducted by a

third party with no vested interest in the dispute. Individuals who may compromise the

In active response to national policies and calls to strengthen flexible employment and protect the rights of fairness of the mediation process are not permitted to participate.workers in new employment forms Changhong Meiling has established comprehensive employment management

standards for flexible positions. These standards ensure that employees' rights in terms of compensation benefits Mediation Outcome:

and career development are fully protected. The company has also set up effective communication channels and If a mediation agreement is reached both parties are expected to voluntarily fulfill the

feedback mechanisms allowing employees to report issues promptly. The company will then implement targeted terms. If no agreement is reached either or both parties may file for labor arbitration with

improvements and remedial measures. the competent labor dispute arbitration committee.

123124

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Employee Compensation and Benefits Employee Satisfaction

Compensation and Benefits

The company actively conducts employee satisfaction surveys through questionnaires forums and other methods

Changhong Meiling strictly complies with relevant national laws regulations and policy requirements. The to gain in-depth insights into employees' genuine thoughts and demands. Based on the survey results the company

company has established internal compensation systems including the Compensation Management Measures analyzes and discusses the findings promptly addressing existing issues to comprehensively improve employee

Performance Evaluation Management Measures and Employee Benefits Management Measures to regulate satisfaction. Management strategies are adjusted and optimized to achieve mutual growth for both the company

compensation management distribution and payment. These measures enhance the internal fairness and external and its employees.competitiveness of the company's compensation structure. The company has developed a compensation structure

In 2024 Changhong Meiling in accordance with the

tailored to various positions primarily consisting of base salary special rewards and performance incentives. The overall satisfaction score was 72.4

Employee Satisfaction and Engagement Management

In addition the company provides corresponding benefits and allowances in accordance with national laws and the overall engagement score was

and regulations. Furthermore the company dynamically adjusts compensation through job value evaluations Implementation Measures conducted a questionnaire 72.6 both representing a 2% year-on-

performance-based salary adjustments and technical points systems ensuring that employees' compensation survey through a third-party agency to understand year increase.levels meet market standards and their personal needs. employees' true thoughts and demands.Compensation and Benefits Structure

Democratic Communication

Base Salary + Variable Pay (Performance Bonuses R&D Project Awards Patent Changhong Meiling places high importance on employees' democratic rights. The company has established

Compensation Awards Sales Commissions etc.) democratic management systems including the Workers' Congress Work Regulations and the Notice on Regulating

Structure the Listening and Resolution of Grassroots Employee Opinions by Managers at All Levels. These systems ensure

smooth channels for democratic participation collect employee

opinions and demands through multiple avenues implement

Five Social Insurances and Housing Fund Regular Health Checkups Employee Employee Suggestion Boxrational suggestions and build a diversified feedback mechanism.Care (Gym Holiday Benefits Team Building etc.) Allowances (Communication The company fosters an equal dialogue space ensuring that

Benefits Internal OA SystemAllowance High-Temperature Subsidy Meal Allowance etc.) grassroots demands are fully valued and transformed into key

Structure Employee

drivers for optimizing organizational efficiency. Every employee's Appeal Union Representatives

Performance Appeals voice is heard and rational suggestions are actively implemented. Channels

The company has established democratic management Relevant Functional

The company has clearly defined the performance appeal process ensuring the fairness and accuracy of mechanisms such as labor unions and workers' congresses Departments

performance evaluations through three aspects: performance result disclosure performance feedback and standardizing the procedures for convening workers' congresses to Supervisors up to the Company

performance audits. ensure procedural justice in employees' democratic management Chairman

Performance Result Disclosure rights and corporate governance structures.Each department must disclose its evaluation criteria and results. Employees who disagree with

01 their performance evaluations may submit written feedback to the Human Resources Department During the reporting period Changhong within the specified time frame.

Meiling and its subsidiaries held workers'

Performance Feedback congresses during which agreements were

The company has established multi-level feedback channels. Appeals must be processed and signed on collective wage negotiations

02 responded to within the stipulated time and temporary review meetings may be convened if collective contracts special collective necessary for adjudication.

contracts for the protection of female

Performance Audits employees' rights and special collective

The Human Resources Department in accordance with the compensation and performance contracts for labor safety and health. Workers' Congress

03 system and rules may audit performance evaluations incentive distributions and compensation outcomes. An accountability mechanism has also been established.

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Employee Physical and Mental Health

Case

Case

In 2024 Changhong Meiling received a total of 248 rationalization suggestions implemented 248

improvement measures and achieved economic benefits of 19.098 million yuan. Psychological Counseling Courses to Prioritize

Employee Mental Health

Changhong Meiling has launched a series of courses titled

"Mental Health—Mindfulness and Stress Relief" to guide

employees in focusing on their physical and mental well-

Employee Care and Support being. These courses teach employees how to manage

stress effectively utilize internal resources more efficiently

Changhong Meiling is deeply committed to the well-being of its employees striving to create a warm and caring and enhance their confidence and happiness. Over 300

corporate environment. The company organizes various activities to alleviate work-related stress offering diverse employees participated in these courses both online and

support and care initiatives to enhance the quality of life for its employees thereby boosting their sense of offline.happiness and belonging.Changhong Air Conditioning has developed an annual

Employee Support mental health plan inviting psychology experts to conduct

professional courses. The company has organized a series

The company's labor union continuously of lectures on "Production Line Safety Psychology" and

arranged monthly one-on-one professional psychological

monitors the family situations of employees

counseling sessions for employees. Throughout the year 84

facing difficulties. During the reporting

employees participated accumulating over 4000 minutes of

period the company distributed a total of

therapeutic time. Psychology Enthusiast Team Learning

320000 RMB in financial aid benefiting 488

employees in need helping them overcome Case

challenges with the company's support. for Employees in Need Spring Festival Care Campaign

Collaborating with Medical Institutions to Care for

Employee Health

Case Changhong Meiling has invited a team of traditional Chinese

medicine (TCM) practitioners to provide on-site consultations

Family Care and Educational Support allowing employees to access professional and detailed

To support employees in their children's education Zhongshan medical services during their work breaks. Employees can gain

Changhong has implemented an educational assistance a deeper understanding of their health conditions and receive

personalized TCM treatment advice and wellness guidance.program helping employees resolve issues related to their Changhong Air Conditioning has partnered

children's school enrollment. Additionally the company has with medical institutions to provide on-

organized diverse activities such as swimming classes family site medical services within the company's

outings and factory tours under the "Employee Children premises. These services include consultations

Summer Camp" program. Furthermore the company provides acupuncture massage emergency care and

financial aid to employees whose children are entering health training ensuring the well-being of

university demonstrating its support and encouragement for "Employee Children Summer Camp" Activities nearly 6000 employees in the industrial park.employee family education. On-site Medical Services

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Care for Special Groups

The company actively cares for and supports special groups such as employees facing difficulties and female

employees showing concern for their work and personal lives and making them feel the warmth and care from the

company.Case

Football Match Spring Festival "Paper-cutting" Activity

The company organizes irregular visits to special groups

understanding the needs of disabled employees in their

work and daily lives and assisting them in resolving issues.Special Group Care Campaign

Case

To meet the nutritional and privacy needs of nursing

mothers Zhongke Meiling's cafeteria offers special meals

for pregnant and nursing employees. Additionally the Dance Competition Various Club Activities

company has established nursing rooms to provide private

and comfortable spaces for nursing mothers.During the reporting period Zhongke Meiling was honored

with the "Women Workers' Home Nursing Room" award by

the Anhui Provincial Trade Union.Balancing Work and Life

Changhong Meiling's 2nd Gratitude Multi-skill Knowledge Competition

The company actively organizes a variety of cultural and sports activities to enrich employees' leisure time and Festival Featuring Fresh Food Market

foster better communication among them. Deepening Employee-Family Connections

To help employees' families gain a deeper understanding of the Company its culture and their

Case loved ones' work environment and responsibilities we launched the Meiling OpenDay initiative.This program invites family members to participate in corporate tours professional presentations

knowledge quizzes craft workshops and other interactive activities fostering a warm bridge

between families and the enterprise.Department Team-building Activity Employee Interest Class

OPEN DAY Meiling OPEN DAY Fun Sports Day

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Employee Training and Development Throughout the year various departments conducted a total of 3307 online and offline training sessions at both

departmental and corporate levels. The training coverage reached 100% of employees and the average training

Employee Training and Continuing Education hours per employee have steadily increased for three consecutive years.Training Management System

Employee Training Data

The company has established a three-tier training management system at the corporate business unit and

departmental levels. Starting from identifying training needs the company conducts detailed assessments Total Investment in Employee training Average Training Hours

to develop targeted training plans and courses. These plans are effectively implemented supported by Employee Training coverage reached per Employee

standardized processes and optimized resource allocation ensuring the effectiveness of the training

programs. 314 10000 RMB 100 % 24 Hours

Employee Knowledge/Skill Requirements Strategic Goal Alignment

Career Development Needs

Targeted Training Content and Diverse Training Methods

Training Needs

Effectiveness Training Plan Employee Category Training Methods Main Training ContentEvaluation

Program New Employees - Corporate Culture Safety Quality Operational

Implementation Face-to-face Hands-on TrainingOperators Processes etc.New Employees - Online Meiling Management Corporate Culture Strategy System Processes

Training College Graduates Academy Face-to-face Job Rotation Safety Products Job-specific Knowledge

Operations Management Systems etc.Internal Part-Time Trainers

External Training Consultants Online Meiling Academy and Cultural Behavior Standards Professional

Training Policy Professional Staff

Knowledge Resource Library Face-

to-face Internal Training and Knowledge Process and System Training Internal

Process & Resource Meiling Academy Curriculum Sharing Experience Sharing etc.Trainer Management Knowledge Asset Repository

System Policies Allocation

Team Leaders and Line Online Meiling Manufacturing

Cultural Behavior Standards Safety Team

Learning Mechanisms Training Budget Academy Internal Training and Management Lean Management Product

Facilities & Resources Supervisors Sharing Management Smart Manufacturing New-generation Employee Management etc.Changhong Meiling's Training Management System Online Meiling Academy Cultural Behavior Standards Professional

Core Key Personnel Professional Lectures External Knowledge Industry Trends Cross-system

Development Industry Forums Professional Courses Skill Gap Training etc.Based on job learning roadmaps the company systematically organizes annual course development External Training Online Meiling Innovative Thinking Professional Skill

for various job sequences through experience extraction and external knowledge integration. This has Reserve Talent Pool Academy Professional Lectures Enhancement Management Courses Industry

Elite Lecture Hall Job Rotation etc. Development etc.gradually formed a comprehensive Meiling professional course system. In 2024 the company launched

a micro-course development plan organizing departments to review courses across 16 job sequences Innovative Thinking Management Courses DDI

Middle Management

resulting in the development of 302 micro-courses. External Training visits Online

Leadership Crucial Conversations Industry

Chaos University CEIBS Study Development etc.Tours Executive Lecture Hall etc.Senior Management Integrated Innovation Corporate Practice Audiobooks Senior Executive Forums etc.

131 132Report Chairman’s About Changhong Deepening ESG

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Case Case

Elite Lecture Hall Internal Experience Sharing Supervisor-level Training Enhancing Management Skills

To fully leverage the knowledge and experience of the company's core talent Changhong Meiling launched To improve the leadership and management efficiency

the "Elite Lecture Hall" training program. This initiative taps into the professional expertise of mid-to- of young managers the company organized a

senior managers and experts enabling the rapid dissemination of elite knowledge and experience to other specialized training session titled "Dancing with the

employees thereby creating high-level professional training sessions. New Generation—Positive Communication Based on

Employee Differences and Contexts" for supervisors

and reserve management personnel.Case

Reserve Management Training Broadening Horizons

Case

To further deepen the understanding

Professional Team Training Enhancing Professional Skills of lean management principles and

i m p ro v e m a n a ge m e n t e f f i c i e n c y

The company organized an internal training t h e c o m p a n y o r g a n i z e d r e s e r v e

session titled Internal Training on Application management personnel to visit and

and Troubleshooting of Yaskawa Robots in which train at NIO's advanced manufacturing

equipment operators participated to enhance their base. This allowed them to observe

professional skills building a reserve of talent for lean management practices firsthand

the professional team. a n d b r o a d e n t h e i r m a n a g e m e n t

perspectives.

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Case Case

Management Training Enhancing Leadership Skills Team Leader Training Enhancing Team Management Skills

To help managers better understand the impact of generational differences on the company and industry

To f u r t h e r s t r e n g t h e n t e a m

the company conducted a "Generational Leadership" training program for management personnel. This

management skills and enhance

training provided a systematic methodology and practical tools to empower managers to more effectively

t e a m co h e s i o n t h e co m p a n y

unlock the potential and vitality of the new generation.officially launched a core team

leader training program in June

2024. This program effectively

improved the leadership capabilities

of team leaders providing solid

grassroots management support

for the company's sustainable

development.Case Case

New Generation Training Accelerating Workplace Transformation Professional Training Multi-channel Development

In July 2024 the company organized To further help employees explore self-driven multi-channel career development the company organized

campus recruits to participate in the a specialized training session titled "Anchoring the Future Self-driven Multi-channel Development" for

"Spark Training Camp" conducted core professional employees across various departments.b y t h e C h a n g h o n g G r o u p . T h i s

init iative helped new graduates

quickly understand the company

integrate into the corporate culture

enhance their sense of belonging and

transition from a student mindset to a

professional one.

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Ensuring Training Effectiveness Training Incentive Mechanism

To ensure the effectiveness of training the company continuously improves the quality and efficacy of

training through multi-level training evaluations credit-based incentives and the optimization of training

teams and platforms. E v a l u a t e a n d r e c o g n i z e I n ce n t i v i z e t ra i n e e s

"Outstanding Trainees" based Outstanding Awards &

Trainee who achieve rankings

The company consistently evaluates the effectiveness of various key training on in-class performance and RecognitionSelection i n i n t e r n a l /e xt e r n a l

Four-Level Training programs. Based on employee feedback and evaluation results the company

assessment results competitions

Evaluation Model adjusts training content and methods in a timely manner. The evaluation results are

also shared with relevant business departments as a basis for future training plans

and needs. Select candidates for talent

pool through comprehensive

Talent Pool Development- Assign developmental

Level of evaluation (performance Admission based challenging positions to

Training Method Requirements l ea r n i n g a c h i e ve m e n ts Promotion high-potential employees

Evaluation p o t e n t i a l ) a n d p r o v i d e

specialized development

Level 1 On-site Training Trainees evaluate the "satisfaction" with trainers training Evaluation—Feedback courses and training organization management

Level 2 Learning Outcome Assess trainees' learning outcomes after training through Evaluation—Results exams or practical operations Training managers are both planners and implementers of training programs. The

Enhancing the

company provides specialized training for training managers according to plan

Level 3 Behavioral Change Evaluate whether trainees' behavior or work performance Capabilities of Evaluation—Behavior has improved as expected within 3–6 months after training improving their management operational and resource-building capabilities thereby Training Managers enhancing the overall quality and effectiveness of the company's training efforts.Level 4 Economic Impact

Conduct a comprehensive evaluation based on annual

Evaluation—Effectiveness performance results and departmental performance outcomes The company continuously optimizes the Meiling Academy management system by

Optimization evaluating revising and integrating existing course materials standardizing the course

of the Meiling review process continuously developing and validating question banks optimizing the

The company has established a credit-based training system effectively integrating it Academy Platform online credit application system and increasing the development of micro-courses.Training Incentive with employees' actual work and performance. Training credits serve as a method to These efforts promote online learning and knowledge sharing among employees

Mechanism motivate and drive employee learning linking internal evaluations and future career creating a knowledge platform with Meiling's unique characteristics.development thereby enhancing employees' initiative and enthusiasm for learning.Building a Strong Trainer Team

Trainers are the core of the training system. The company has built a high-level internal trainer

team expanding the pool of internal trainers to include mid-to-senior managers and top-performing

employees. The company has improved the internal trainer management system and enhanced the

teaching capabilities of internal trainers. Regular internal trainer team-building projects are conducted

systematically improving the quality and effectiveness of internal trainers' courses through TTT (Train

the Trainer) camps and certification programs. Currently the company has a team of approximately 160

certified part-time internal trainers.Credit Calculation Mechanism

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Employee Continuing Education Dual Career Development Pathways

Cross-Track

Professional Track Development Management Track

To continuously improve employees' educational Chief Executive/Director

qualifications the company encourages employees ★ ★ ★

Senior/

to pursue on-the-job education. Each year over Department Authoritative

Expert ★ Head

40 employees obtain bachelor's degrees or higher. ★ ★

Senior Senior

The company provides rewards to employees upon Manager ★ ★ ★ Economist

obtaining their degree certificates continuously Manager/

encouraging them to enhance their educational Expert ★ ★ ★

qualifications. Supervisor ★ ★ ★

Specialist ★ ★ ★

Employee Promotion and Development

Assistant ★ ★ ★

Employee Career Development Pathways Lateral Development Path

Career Development Planning and Evaluation

Employees in management and professional roles can choose either management

or professional development pathways based on their personal career plans Changhong Meiling provides employees with various career development opportunities at the corporate

enabling vertical career progression. For management roles the company level including professional and management pathways dual career channels qualification assessments

Vertical conducts dynamic adjustments to the management team through competitive reserve talent pools and learning roadmaps. The company conducts comprehensive analysis and

Development job-presentation and PK among incumbent managers and candidates combined balancing based on employees' interests hobbies abilities and characteristics helping them determine

with democratic evaluations capability assessments performance scores and

Pathways their optimal career goals according to their career inclinations.performance grades. For professional roles employees are evaluated annually

based on performance technical expertise and expert assessments combined

with annual performance results and technical credit rankings to organize Employee Promotion

employee promotions and ensure orderly vertical career growth.The company conducts annual performance evaluations for employees in the talent pool. Based on work

achievements learning progress innovation proposals and evaluation rankings combined with feedback

from evaluators the company determines promotions retention or removal from the talent pool. Each

Horizontal development includes cross-sequence horizontal development year approximately 15 employees are promoted from the talent pool making it a primary channel for the

pathways and dual-directional development pathways between management selection and cultivation of company leaders.and professional roles. For cross-sequence horizontal development the company

Horizontal encourages employees from various professional sequences to participate in cross- Talent Promotion Mechanism

Development sequence job competitions based on their career plans expertise and capabilities.Pathways Additionally the company has established dual-directional development pathways Talent Pool Promotion Promotions are based on annual reserve talent readiness evaluation

between management and professional roles allowing professional employees results and performance

to compete for management roles and management employees to participate in Rank promotions are based on annual performance evaluations and

professional role evaluations. Annual Rank Promotion capability growth

139140

Vertical Promotion Path

Vertical Promotion PathReport Chairman’s About Changhong Deepening ESG

Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index

Occupational Health and Safety Occupational Health The company organizes pre-employment on-the-job post-employment and

emergency occupational health examinations as well as regular employee

Occupational Health Examinations health checkups to ensure employees' physical health and safety.Occupational The company proactively monitors occupational hazards identifying potential

Occupational Health Management System Hazard Monitoring risks in a timely manner to ensure a safe working environment.Changhong Meiling strictly adheres to the requirements of laws and regulations such as the Occupational

The company defines training content at the corporate workshop and team

Disease Prevention and Control Law of the People's Republic of China. The company has established Occupational Health levels ensuring comprehensive training for employees in basic occupational

occupational health management systems including the Occupational Health and Labor Protection Training health knowledge occupational health management and job-specific

Supervision Regulations Occupational Health and Safety Operation Control Procedures Occupational operations.Health and Labor Protective Equipment Management Regulations and Occupational Hazard Warning and

Notification System. These systems standardize occupational health processes continuously improving Based on job requirements the company provides labor protective equipments

Labor Protection against various hazards such as noise-proof rooms for noisy equipment cooling

the company's occupational health management level and providing solid protection for employees' Facilities facilities for high-temperature workstations and personal protective equipment

health. By the end of the reporting period the company and its six subsidiaries had obtained occupational like earplugs protective clothing and gloves. These facilities are regularly

health and safety management system certifications. maintained to ensure proper functionality.Occupational The company conducts occupational health awareness campaigns such

Occupational Health Management Process Health Awareness as Occupational Disease Prevention and Control Law Awareness Week to

Occupational Campaigns continuously improve employees' awareness of occupational health risks.Hazard Occupational Occupational

Notification Hazard Reporting Hazard Monitoring

On-site Occupational Hazard Monitoring

Occupational Occupational Occupational I n J u l y 2 0 2 4 C h a n g h o n g A i r C o n d i t i o n i n g

Hazard Hazard Control Health Education

Classification Measures and Training conducted on-site occupational hazard monitoring

across the factory premises testing 561 points. No

points exceeded safety standards and the results

Occupational Hazard Prevention and Control were publicly displayed on-site.To comprehensively safeguard employees' health and safety

Changhong Meiling has developed an occupational disease prevention

and control plan clearly defining the specific responsibilities and During the reporting period

the implementation rate of the

measures for the company and its subsidiaries in occupational disease

occupational disease prevention On-site Occupational Hazard Monitoring

prevention and control. All units are required to strictly implement the and control plan reached

plan to ensure the orderly execution of occupational disease prevention

and control work. During the reporting period the implementation rate 100 %

of the occupational disease prevention and control plan reached 100%.Occupational Hazard Prevention and Control Measures

Occupational The company has established the Occupational Hazard Warning and

Hazard Notification Notification System to warn employees of potential occupational hazards in the

workplace raising their awareness of occupational risks.On-site Display of Occupational Hazard Monitoring Results

141 142Report Chairman’s About Changhong Deepening ESG

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Work Safety

Occupational Health Examinations Work Safety Management System

To e n s u r e e m p l o y e e s ' h e a l t h a n d p r e v e n t

Changhong Meiling consistently adheres to the safety management philosophy of "Safety First Prevention

occupational diseases in advance Changhong

as Priority Comprehensive Management" and the core belief that "Safety is the Mountain Safety is Life".Air Conditioning organized occupational health

In strict compliance with laws and regulations such as the Work Safety Law of the People's Republic of

examinations for its employees. The results showed

China the company has formulated and revised 14 internal regulations including the Safety Training

no cases of occupational diseases or suspected

Management System Hazard Identification and Safety Risk Classification Control System Related Party

occupational diseases. The company informed

Safety Management System Hazardous Work Management System and Hazardous Chemical Safety

employees of their examination results and

Management Regulations. These measures strengthen the corporate responsibility system for work safety

coordinated job transfers for those with occupational

improve the dual-control prevention mechanism for risk classification and hazard investigation and

contraindications.management and actively promote the development of a "Meiling-style" safety culture. The company

continues to advance the construction of "Work Safety Standardization" aiming to create an intrinsically

safe and scientifically developed enterprise.The company has established a Safety (Occupational Health) Committee to define key safety priorities

Occupational Health Awareness Campaigns implement safety responsibilities and build a safe and healthy working environment. The concept of work

To continuously improve employees' awareness of occupational health the company organized a series safety is integrated into every aspect of the company's and its subsidiaries' operations to implement safety

of awareness campaigns under the theme "Prioritize Prevention Protect Occupational Health". During the production work. By the end of 2024 Changhong Meiling and its seven subsidiaries had obtained work

reporting period the company conducted 56 themed lectures 26 warning education sessions distributed safety standardization certification.

223 copies of promotional materials mobilized 38 campaign personnel and reached an audience of 5010

employees.Safety Prevention Comprehensive

First as Priority Management

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Indicator 2024 Work Safety Inspections and Hazard Investigations during the Reporting Period

Safety inspection reports Total government inspections issues identified

Investment in Employee Work Injury Insurance Employee Work Injury Insurance Coverage Rate issued throughout the year throughout the year

390 10000 RMB 100 % 53 times 8 times 42 issues

fully rectified

Work Safety Goals

During the reporting period Changhong Meiling set work safety goals clearly defining the categories of Hazard Investigations

safety incidents. Subsidiaries followed Changhong Meiling's lead in establishing their own work safety

goals to ensure the precision and effectiveness of safety management across the company. In 2024 all of Class A hazards were registered Class B hazards resolved under rectification

Changhong Meiling's work safety goals were successfully achieved. at the corporate level were registered

8844

2024 Target 2024 Achievement

Class C and Class D hazards which A total of 387 issues including 35 related

Class II and above work safety liability incidents 0 0 pose lower safety risks are managed by were identified to hazardous chemicals

individual units.Class III work safety liability incidents control target ≤ 2 incidents 0 all of which were resolved

Work safety liability incidents causing direct

economic losses of 300000 RMB or more 0 0

Occupational diseases (including acute Case

occupational poisoning 0 0

Pre-Holiday Safety Inspection Campaign

Work Safety Measures

Before the holidays to eliminate safety hazards and ensure a smooth post-holiday resumption of work the

In accordance with the Work Safety Inspection and Accident Hazard Investigation and Management company's president and the head of the Safety Committee led a comprehensive safety inspection. Key

Regulations and combined with the identification criteria of significant hazards the company implements hazards such as hazardous chemicals and confined spaces were thoroughly inspected.a dual-control prevention mechanism for safety risk classification and hazard investigation and

management. This includes mechanisms for in-depth hazard identification closed-loop rectification and

hazard information tracking. The company conducts regular and systematic hazard investigations and

rectifications focusing on hazard identification and rectification. A hierarchical tracking management

mechanism is established to monitor and rectify major safety hazards (Class A/B) ensuring that work

safety remains under control.For work safety inspections and hazard investigations the company adopts a hierarchical control principle

conducting inspections investigations and rectifications at various levels including operators grassroots

teams functional departments production units and the company as a whole in accordance with the

frequency specified in the Work Safety Inspection and Accident Hazard Investigation and Management

Regulations.

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Case

Safety and Fire Safety Review

In October 2024 to enhance the company's work safety management capabilities identify potential risks

and promptly address safety hazards Changhong Meiling's expert team conducted safety and fire safety

inspections at its subsidiary Zhongshan Changhong. The inspection focused on safety management

documents on-site risk identification and hazard investigation with particular attention to equipment

and electrical systems safety management system documents hazardous chemical storage and usage

areas and fire safety facilities.Confined Space Rescue Drill Electric Shock Rescue Drill

Response to Safety Incidents

To standardize the reporting and investigation of work safety incidents and to prevent and reduce such

incidents the company has established the Regulations on the Supervision and Management of Work Safety

Incident Reporting and Investigation. These regulations define the classification of incident levels the

division of responsibilities among departments and personnel incident reporting procedures and content

on-site incident protection investigation and analysis processes work injury reporting and labor capacity

assessments. Based on the results of investigations the company holds responsible units and individuals

accountable and proposes improvement measures to enhance overall work safety standards. In 2024 the Factory-level Fire Emergency Evacuation Drill

company experienced no safety incidents.The company has developed a

comprehensive emergency response During the reporting period with over

system including general emergency the company organized emergency

plans specialized plans and on- 37 drills 5000 participants

site response plans for various

scenarios. Regular training and

mutual rescue

drills are conducted for fire safety conducted self-rescue training sessions involving

hazardous chemicals and other

incident scenarios to test emergency 36 sessions 155 employees

response capabilities and improve

employees' safety awareness. Emergency Awareness Training—Summer Heatstroke Prevention and Response

147 148Report Chairman’s About Changhong Deepening ESG

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Hazardous Chemical Management Safety Culture Development

In accordance with laws and regulations such as the Regulations on the Safety Management of Hazardous

Chemicals the company has established the Hazardous Chemical Safety Management Regulations to The company promotes a diverse range of safety culture awareness and education activities fostering a

standardize the entire process of chemical procurement equipment and facility management usage culture that values safety pays attention to safety and actively participates in safety management. This

and storage. Additionally the company conducts regular training and assessments for relevant personnel guides employees to develop correct safety concepts behaviors and work practices achieving the long-

and organizes hazardous chemical emergency drills every six months to continuously improve the term goal of enterprise work safety.management of hazardous chemicals.Safety Culture Development during the Reporting Period:

Comprehensive Management Measures for Hazardous Chemicals

Chemical Procurement Supplier Chemical Risk Safety The company organized 116 lectures with 3152 participants; conducted 306 Qualification Review Assessment Education and activities such as "Workplace Safety Discussions" pre-shift meetings and case

Awareness

C h e m i c a l p r o c u r e m e n t The company reviews the The company assesses the Campaigns studies involving 3585 participants.strictly follows the company's qualifications of chemical p o t e n t i a l s a f e t y r i s k s o f

procurement process to ensure s u p p l i e r s t o e n s u r e t h e y new chemicals identifying

compliance with national laws possess legal permits for the p h y s i c a l c h e m i c a l a n d 23 employees participated in the "Employee Work Safety Zone" specialized

regulations and standards production operation and environmental hazards in learning on the national platform; 1927 persons participated in quiz

reducing the risk of chemical transportation of hazardous advance and implementing "ANKANG Cup" Competitions competitions; 164 employees completed the "ANKANG Cup" mock exams. The

incidents at the source. chemicals. corresponding preventive company organized 6 "ANKANG Cup" competitions; released 20 videos for the

measures. online "Escape Drill Training Camp".Work Safety Risk Prevention and Control

Safety

The company systematically identifies safety risks quantifies risk levels using assessment tools and Consultation The company held 16 on-site events for the "Safety Consultation Day" with

effectively reduces work safety risks through hierarchical control mechanisms risk communication and Promotion 848 participants and conducted 11 online webcasts attracting 1976 viewers.measures and the distribution of protective equipment.Safety Risk The company's safety risk classification and control are based on the standards

Identification GB 13861 (Classification and Codes of Hazards and Harmful Factors in Production

and Assessment Processes) and GB 6441 (Classification Standards for Work-Related Injuries and Other Safety

Activities T h e c o m p a n y o r g a n i z e d 1 3

Fatalities). The LEC (Likelihood Exposure and Consequence) method is used to promotional activities targeting

quantify risk levels and targeted measures are implemented accordingly. employees and their families with

Based on different risk levels control responsibilities are divided into three tiers: 1061 participants; 1874 employees

Safety Risk department heads company responsible executives and company top executives. participated in the Liangongbao

Hierarchical Each tier has clearly defined responsibilities and duties to enhance accountability. online knowledge competition.Control The company conducts an annual identification of hazardous and harmful factors

from May to June. After risk assessment control requirements are proposed from both

engineering and management perspectives to comprehensively reduce safety risks.Safety Risk Safety risk notification signs are posted in hazardous chemical areas and workers are Online webcasts on the "Safety Consultation Day"

Notification and provided with appropriate personal labor protective equipment to improve workplace

Protection

safety levels.

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Case Case

Liangongbao Online Knowledge Competition Work Safety Month Activities

To enhance overall safety awareness promote safety knowledge improve emergency response capabilities

In June 2024 the company and its subsidiaries organized a variety of activities for the Work Safety Month.and create a safety culture atmosphere the company organized the Liangongbao online knowledge

These included safety lectures viewing safety education videos safety knowledge tests and emergency

competition. With attractive rewards the competition significantly boosted employee participation and

skills competitions all of which consolidated and deepened the concept of safety development among all

further strengthened their safety awareness.employees.

2024 Liangongbao Online Knowledge Competition Participation

Manufacturing Plant 1 47122points Safety Production Month Kickoff Meeting Safety Month Lecture858people

Manufacturing Plant 2 95235points

658people

Manufacturing Plant 3 91639points658people

Other departments 7182points

91people score

Number of persons Safety Knowledge Quiz

Emergency Skills Competition

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Digital Construction Social Responsibility

Facing the complex and ever-changing landscape of work safety Changhong Meiling introduced the Rural revitalization

EHS Work Safety Information Management Platform. Built on the foundation of risk classification and

In 2024 Changhong Meiling remained steadfast in fully implementing the decisions and plans made by the CPC

control and hidden hazard identification and management the platform leverages the advantages of 5G

Central Committee and the State Council regarding rural revitalization. The company actively responded to the

technology to meticulously develop three key application scenarios:

call to promote rural revitalization and contributed to the development of rural areas. Changhong Meiling adopted

1.5G + Safety and Environmental Data Collection which enables efficient and accurate collection of safety

a "purchase-to-support" approach injecting strong momentum into the revitalization of rural industries. The

and environmental data.company also focused on special groups within rural revitalization providing targeted assistance and conveying its

2.5G + Redcap Pilot which explores new communication models for work safety.

commitment to rural revitalization both internally and externally demonstrating the responsibility of a state-owned

3.5G + Risk Area Control which provides real-time and dynamic monitoring of key areas.

enterprise.The EHS Work Safety Information Management Platform not only achieves precise control and intelligent

identification of major hazards but also comprehensively covers the entire process management of special

Case

operations and safety education and training for all employees. Through this platform Changhong Meiling

has successfully established a closed-loop management system that includes rapid perception real-time To actively respond to the rural revitalization strategy and help fruit farmers expand sales channels

monitoring early warning dynamic optimization intelligent decision-making coordinated response increase income and improve their livelihoods the company purchased 20 tons of high-quality kiwifruit

system evaluation and global collaboration. This system effectively eliminates safety hazards at the from rural areas.source building a solid defense line for employee occupational health and safety and creating a stable

and secure environment for the company's high-quality development. Case

During the reporting period the EHS Work Safety Information Management Platform integrated 4

wastewater monitoring points 2 exhaust gas monitoring points and conducted intelligent analysis In April 2024 the company launched a care initiative for left-behind children donating a "Blue Oxygen

and alarm monitoring for 6 key risk areas. Additionally 285 high-definition surveillance cameras were Hand-Washing" washing machine to a school in Chengkan Huangshan. This initiative aimed to reduce

deployed comprehensively covering critical operational areas and providing a strong guarantee for the the children's daily burdens improve rural education and living conditions and contribute to rural

company's work safety. revitalization.EHS 安全生产信息管理平台

EHS Work Safety Information Management Platform

153 154Report Chairman’s About Changhong Deepening ESG

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Bearing social responsibilities

Product Lifecycle Management (PLM) Knowledge Base Management

Digital Transformation

Task-driven product design with full Online Standard Library

The "14th Five-Year Plan" has outlined a new development blueprint making digital transformation and lifecycle management; Visualized project & Knowledge Base

progress monitoring

upgrading an inevitable choice for the era guiding enterprises and industries toward a new journey of high-quality

development. Changhong Meiling actively responded to the national call to accelerate informatization construction

driving the company's digital transformation. Under the leadership of the Digital Transformation Governance

Committee the company focused on three pathways: digital support for business digital value creation and

digital-driven innovation continuously building and optimizing new capabilities across six dimensions.Digital Marketing intelligent

Changhong Meiling continued to promote the application of the "C+3" customer order system model R&D

increasing the proportion of "C+3" orders and the direct-to-customer delivery rate. The company also

advanced the transformation of its e-commerce business collaborated with Changhong headquarters to

upgrade the warehousing system improved inventory turnover and enhanced market share.Forecast Order Procurement Production Logistics

“M+1” / “M+2”

Sales Forecast Long-Lead Material

Customer/Sales Unit Rolling Plan

Order Placement Multi-System Integration Standardized Management Online Collaborative Design

Order Aggregation A chieve ERP collaboration Build efficient visualized T op-Down Online Collaborative

S&OP Review Production Planning and close manufacturing business process libraries Design

Short-Lead Material

Procurement i n t e r a c t i o n f l o w (preferred parts modules Effective 3D Model Collaborative

Material Kitting Production Execution Logistics Shipment through process-driven p ro d u ct te m p l ate s ) w i t h Design

methodology to enable n o r m a l i z e d a n d h i g h l y

C-1 Cycle C Cycle C+1 Cycle C+2 Cycle C+3 Cycle business synergy standardized management

Forecast is defined as Customer/Sales Unit P r o c u r e m e n t a n d P r o d u c t O f f l i n e Logistics Shipment is

parallel preparation for O r d e r P l a c e m e n t Material Kitting are P r o d u c t i o n i s defined as the fourth

C+3 mode operation i s d e f i n e d a s t h e defined as the second defined as the third node of C+3 mode

corresponding to C-1 starting point of C+3 node of C+3 mode node of C+3 mode corresponding to C+3 Digital Manufacturing

Cycle mode corresponding corresponding to C+1 corresponding to C+2 Cycle

to C Cycle Cycle Cycle Through the integrated innovation and application of next-generation information technologies in

manufacturing Changhong Meiling built a 5G fully connected smart factory based on digital networked

and intelligent manufacturing and service systems. The company continued to advance the digital

Digital R&D transformation of its manufacturing operations and value chain systems. By replicating and promoting

Changhong Meiling deepened the application of its PLM-based intelligent R&D platform improving the MES (Manufacturing Execution System) the company achieved full-process visual control of orders. It

efficiency of processes such as parts release and BOM （Bill of Materials）release to meet the demand also implemented systems such as EHS and EMS (Energy Management System) constructing a unified

for small-batch multi-variety customized production in overseas markets. The company also explored IoT platform to enable real-time online monitoring of environmental safety and energy metrics. This

application scenarios for 3D simulation technologies in assembly ergonomics and thermal load analysis. improved energy efficiency created a green and low-carbon industrial park and reduced the likelihood of

safety and environmental incidents.

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Digital Supply Chain

Key Achievements

Through the ISRM-based smart supply chain interaction platform Changhong Meiling provided supplier

resource services to users and suppliers enhancing the quality of service among "users enterprises

and suppliers". To address the needs of procurement supply chain safety speed efficiency and cost

optimization the company leveraged new industrial internet technologies to empower the digital

transparent refined and accurate delivery capabilities of the industrial internet platform achieving a

26.3% improvement in inventory turnover.

"5G Factory" Certification 3A Certification for Integration of National 3-Star Certification for Digital

Informatization and Industrialization Transformation Maturity (First Batch)

Community Engagement

Changhong Meiling places great importance on building a civilized community with local residents. The company

has established smooth communication mechanisms with local communities actively addressing the needs of

community stakeholders and integrating into community governance and activities. This has enhanced public

satisfaction and happiness showcasing the exemplary role of a state-owned enterprise.Case

To raise awareness and prevention of occupational

disease hazards among employees and the public

Changhong Meiling's labor union collaborated with Hefei

Third People's Hospital Jinxiu Community Health Service

Center and Jinxiu Community Management Committee

to organize a training session on occupational health

monitoring and management.Case

Information Security

Changhong Meiling actively participated in the "Firefly

Changhong Meiling further advanced the construction of its network and information security platform Plan—Caring for the Happy Growth of Two-Child Families"

establishing a situational awareness platform and an industrial control network and information security a micro-public welfare initiative launched by the Jinxiu

system. Additionally the company comprehensively promoted the pilot implementation of desktop Community Party Branch. The initiative advocates for

terminal data security protection systems and cloud desktop systems reducing the risk of sensitive data attention to two-child families and promotes the healthy

leakage. It also achieved off-site disaster recovery for core data ensuring data security and availability. growth of children.

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Case Social Contribution

Leveraging its strengths as a national-level intelligent manufacturing demonstration enterprise Changhong Meiling earnestly fulfills its corporate responsibilities by supporting public welfare and charitable

Changhong Meiling conducted 26 study tours hosting student groups from over 20 primary and secondary causes encouraging employees to participate in volunteer services and philanthropy and actively giving back

schools in Hefei. The company brought hands-on labor practice classes to the production frontlines to society. The company promotes social regeneration and sustainable development achieving a common

offering innovative and engaging courses such as fun experiment classes creative labor classes and brand development of employee growth corporate vision and societal prosperity.history classes. These efforts deepened students' understanding of the concept of "Made in China".Key perfomance in 2024

Amount of Charitable Number of Employee Participation Total Hours of

Donations Volunteer Activities in Volunteer Activities Volunteer Activities

192 10000 RMB 7 Sessions 969 Person-times 2404 Hours

Case

In response to the flood disaster in Shexian County

Huangshan Changhong Meiling proactively assumed

social responsibility by rushing to the disaster area

Case with essential supplies such as food and water. The

company also provided free home appliance repair

To celebrate the 75th anniversary of the founding of the People's Republic of China the company actively services contributing to the recovery of the affected

participated in a thematic performance event organized by the Hefei Economic and Technological residents' lives.Development Zone. Employees were encouraged to showcase their talents forming a choir to contribute

to the event. Case

To support the high-quality development of public

health ser vices Zhongke Meiling donated an

automated vaccination workstation to the Linhu

Community Health Service Center in Hefei Economic

and Technological Development Zone through the

Hefei Red Cross Society. The workstation integrates

storage and vaccination ensures zero errors in

automatic vaccine dispensing enables traceability of

Thematic Performance and Singing Competition Changhong Meiling "Old Boys" Band vaccination information and improves the efficiency

and accuracy of vaccine management.

159 160Governance

Changhong Meiling strictly adheres to laws regulations and the management requirements of

listed companies continuously improving its corporate governance mechanisms strengthening

tax compliance and risk management. The Company fosters a favorable market environment

through integrity and fairness creating high-value returns for shareholders through high-quality

development. 06Report Chairman’s About Changhong Deepening ESG

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Corporate Governance Mechanisms Shareholders’ General Meeting

Governance Strategies and Processes The Shareholders’ General Meeting is the Company’s highest authority responsible for reviewing and

Robust corporate governance is a critical foundation for the Company’s sustainable development. In accordance approving major matters. The Company strictly complies with laws regulations the Articles of Association

with the Company Law of the People’s Republic of China the Securities Law of the People’s Republic of China and the Rules of Procedure for the Shareholders’ General Meeting to standardize the convening

the Corporate Governance Guidelines for Listed Companies the Listing Rules of the Shenzhen Stock Exchange conducting and voting procedures of the Shareholders’ General Meeting. In addition to in-person

the Self- Regulatory Guidelines No. 1 for Companies Listed on Shenzhen Stock Exchange — Standardized meetings the Company provides secure economical and convenient online voting methods to facilitate

Operation of the Listed Companies on Main Board and other relevant laws regulations and internal policies shareholder participation in corporate governance. Furthermore the Company implements separate voting

such as the Articles of Association Guidelines the Company has established a governance system centered on the counts for proposals submitted to the Shareholders’ General Meeting by minority investors promptly

Shareholders’ General Meeting the Board of Directors the Board of Supervisors and the Management Team. The disclosing the results to effectively protect their rights and ensure that all shareholders especially minority

Board of Directors has established specialized committees including the Strategy Committee Audit Committee shareholders can fully exercise their rights.Nomination Committee Compensation and Assessment Committee and ESG Management Committee as well as

an Independent Directors’ Special Meeting. The Company continuously improves its governance mechanisms Board of Directors

enhances standardized operations strengthens the execution of its systems and ensures that the Shareholders’

General Meeting Board of Directors Board of Supervisors and Management Team each fulfill their roles effectively

maintaining checks and balances and enabling scientific decision-making to safeguard the Company’s high- Directors and the Board of Directors

quality development. The Board of Directors is accountable to the Shareholders’ General Meeting and serves as the

The Company has developed a detailed delegation manual to manage its subsidiaries setting clear approval Company’s decision-making body responsible for implementing resolutions of the Shareholders’

procedures and authority to achieve scientific reasonable and efficient management. The Company appoints General Meeting and formulating business plans and investment proposals. The Company strictly adheres

directors supervisors and senior executives to subsidiaries to represent the Company in fulfilling their duties. to the Articles of Association and the Rules of Procedure for the Board of Directors in convening and

Functional departments of the Company maintain contact with their counterparts in subsidiaries to provide conducting Board meetings ensuring that deliberations voting and information disclosures comply

with relevant laws and regulations. All directors diligently fulfill their duties actively attending Board and

guidance and supervision on daily operations. Policies and procedures for performance targets budget control Shareholders’ General Meetings and exercising their powers in accordance with the law. The specialized

authorization and approval evaluation and audit supervision are established to effectively control subsidiaries’ committees under the Board of Directors operating in accordance with their implementation rules

business activities and financial matters. leverage their professional expertise to discuss decide supervise and evaluate major Company matters

playing a crucial role in enabling scientific decision-making and improving the efficiency and quality of

Organizational Structure and Functions Board decisions.During the reporting period the Company’s 2024 First Extraordinary Shareholders’ General Meeting

Governance System Centered on the Shareholders" General Meeting Board of approved proposals related to the Board’s reelection and the Board successfully completed its reelection

Directors Board of Supervisors and Management Team" in compliance with legal and regulatory requirements. In 2024 the Board of Directors held 15 meetings

all conducted in strict accordance with relevant laws regulations and the Articles of Association with all

The Company’s organizational structure resolutions being legally valid.General Meeting Strategy Committee

is rational and operates effectively with of Shareholders

a governance system centered on the Effectiveness of the Board of Directors

Shareholders’ General Meeting Board Board of Supervisors Audit Committee We continuously optimize the Board’s structure encouraging directors to express diverse perspectives

of Directors Board of Supervisors and and opinions based on their professional backgrounds to enhance the scientific and rational nature

Management Team. This governance Board of of Board decisions. We have established a scientific evaluation mechanism to regularly assess Board

Directors Nomination Committeesystem maintains checks and balances members ensuring they dedicate sufficient time and effort to Company affairs and fulfill their duties

with clear responsibilities and effective effectively. Digital tools such as online meetings are introduced to improve meeting efficiency and

Compensation & Evaluation decision-making transparency. We leverage the expertise of professionals including auditors to provide operations forming a comprehensive

Committee professional opinions and decision-making support for the Board effectively enhancing decision-making

co h e s i v e a n d e f f i c i e n t co r p o rate efficiency and corporate governance standards. Board members are actively encouraged to participate

governance and management structure. Executive

Management Team ESG Management in training organized by regulatory authorities to improve their professional capabilities in corporate

Committee governance sustainable development industry trends and risk management.Organizational Structure Chart

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Attendance at Meetings

Directors are required to actively attend all meetings of the Board of Directors and the Number of Directors Number of Independent Directors Proportion of Independent Directors

Shareholders’ General Meeting. Directors must not request leave for Board meetings. If

01 unable to attend a Shareholders’ General Meeting in person a director must delegate another

director to attend on their behalf and provide reasons if necessary. Additionally directors must 9 3 33.3 %

diligently review all proposals and express their opinions on relevant matters.Decision-Making and Voting Number of Female Proportion of Female Number of Female Directors

Directors must carefully review all proposals submitted to the Board of Directors actively

02 Directors Directors Supervisors and Senior Executivesparticipate in discussions and make independent voting decisions based on their personal

judgment. 2 22.2 % 4

Independent Directors

Independent directors strictly adhere to the requirements of the independent director system.

03 Proportion of Female Directors Supervisors and Senior ExecutivesThey conduct on-site inspections spend no fewer than 15 days on-site listen to management

reports and review the implementation of Board resolutions. 23.53%

Confidentiality Obligations

Directors must strictly maintain the confidentiality of the Company’s trade secrets

04 financial information and other confidential information. They must not disclose or use such

information for personal gain without authorization and must sign a confidentiality agreement

as an insider. Board of Supervisors

The Board of Supervisors is the Company’s supervisory body responsible for overseeing the Company’s

Independent Directors and Diversity financial and operational conditions as well as the performance of directors and senior executives.The Board of Supervisors consists of 3 supervisors including 1 employee representative. Shareholder

The Company has established and improved an independent director system creating favorable representatives are elected or replaced by the Shareholders’ General Meeting while employee

conditions for independent directors to fulfill their duties and fully leverage their positive role in strategic representatives are elected by the Employee Representative Assembly. In 2024 the 32nd meeting of the

decision-making risk control and corporate governance. In accordance with the Administrative Measures 10th Board of Supervisors approved an adjustment to optimize the Company’s supervisory system

for Independent Directors of Listed Companies and other relevant laws and regulations as well as the reducing the number of supervisors from 5 to 3. The Company’s 2024 First Extraordinary Shareholders’

Company’s Independent Director System the proportion of independent directors on the Board must General Meeting passed proposals related to the adjustment and reelection of the Board of Supervisors

not be less than one-third including at least one accounting professional. Independent directors adhere to which was successfully completed in compliance with relevant laws regulations and internal policies.laws regulations and the Company’s policies upholding the principles of independence prudence and The Board of Supervisors strictly follows the Articles of Association and the Rules of Procedure for the

diligence. They actively participate in corporate governance through various means and diligently perform Board of Supervisors to convene and conduct meetings. The voting and information disclosure procedures

their supervisory responsibilities. Additionally the Company has established an Independent Directors’ comply with relevant regulations. During the reporting period all supervisors diligently and faithfully

Special Meeting to review and provide opinions on related-party transactions cash dividends and major fulfilled their duties in accordance with the Rules of Procedure for the Board of Supervisors. By attending

matters effectively exercising checks and balances mitigating operational risks and safeguarding the Shareholders’ General Meetings and Board meetings they supervised the Board’s decision-making

interests of the Company and all shareholders. processes resolutions and the Company’s lawful operations from the perspective of safeguarding the

The Company is committed to building a diverse Board of Directors actively promoting policies for Board Company’s and shareholders’ legitimate rights and interests. They reviewed periodic reports prepared

member diversity. The Nomination Committee considers diversity indicators such as candidates’ work by the Board and provided written review opinions effectively supervising major matters related-party

experience educational background cultural diversity gender and age when selecting candidates transactions financial conditions and the legality and compliance of directors the President and other

ensuring that their qualifications align with the Company’s strategic development. A diverse Board senior executives’ performance and provided independent opinions to maximize the protection of the

with varied professional expertise and personal potential contributes to the Company’s high-quality Company’s and shareholders’ legitimate rights and interests.development. All Board appointments are based on merit with the benefits of diversity objectively In 2024 the Board of Supervisors held 10 meetings to review the Company’s major matters and related

assessed during the selection process. decision-making processes providing relevant opinions and suggestions based on the proposals and its

The 11th Board of Directors includes members with diverse backgrounds in marketing technology supervisory responsibilities. All meeting resolutions were legally valid.finance management and more. Directors collaborate sincerely complement each other’s strengths

and inject new vitality into the Company’s sustainable development with an open and innovative spirit.

165166

Evaluation Mechanism of

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Management Team Investor Relations

The Management Team is the Company’s executive body responsible for executing specific matters The Company is committed to establishing and improving investor protection mechanisms actively building

related to the Company’s operations and management. The Company has one President and three Vice communication bridges promptly responding to investor concerns and conveying the Company’s value. It

Presidents. The Nomination Committee is responsible for proposing the appointment or dismissal of enhances investors’ understanding and recognition of the Company continuously improves investor relations

senior executives to the Board of Directors which makes the final decision. management and fosters a positive capital market image.Institutional System Construction

Shareholders’ General Meetings Meetings of the Board

of Directors and Meetings of the Board of Supervisors The Company has formulated the Investor Relations Management System the Reception and Promotion

Number of Items Work System and the Brand Crisis Early Warning Management Regulations among others. In accordance

Number of Items Discussed and Number of Discussed and

Number of Shareholders’ with relevant requirements the Company diligently carries out investor relations management tasks Reviewed at Shareholders’ Meetings of the Reviewed by the

General Meetings General Meetings Board of Directors Board of Directors deepens communication with investors and enhances their understanding and trust in the Company.

4 34 15 103 Management Strategies

Number of Topics

Number of Meetings of the Reviewed by the Board of Number of Times a Particular Topic was The Company engages with investors through the Shenzhen Stock Exchange’s “Hudongyi” platform

Board of Supervisors Supervisors Not Approved at the Above Meetings hotlines email institutional research broker strategy meetings reverse roadshows and earnings

10 41 0 briefings fully listening to investors’ opinions and suggestions.

The Company has established a two-way communication mechanism actively

Meeting

Information Disclosure engaging with shareholders and investors through Shareholders’ General Meetings Communication on-site research meetings earnings briefings and online investor receptions.The Company complies with the Rules Governing the Listing of Shares on Shenzhen Stock Exchange and the Self- Research The Company organizes research activities conference calls site visits and other

Regulatory Guidelines No. 1 for Companies Listed on the Shenzhen Stock Exchange — Standardized Operation of the Receptions events to help investors understand the Company’s operations.Listed Companies on Main Board actively fulfilling its information disclosure obligations. The Company strengthens

Through official WeChat video channels and other platforms the Company uses

information disclosure management ensures the disclosure of major events and oversees compliance by relevant visual infographics and short videos to promptly and comprehensively present the

disclosure obligors to guarantee the truthfulness accuracy completeness timeliness fairness and effectiveness Media latest developments to investors leveraging diverse media channels to expand

Communication

of information disclosure. Additionally while ensuring compliance the Company moderately increases voluntary information coverage and influence. Additionally the Company enhances the

investor relations section of its official website continuously publishing updates for

disclosures to enhance the reference value and practicality of its information disclosures. investors’ quick access.The Company has established the Information Disclosure Management System and the Financial Report

The Company promptly addresses questions raised by investors on the “Hudongyi”

Management Regulations to lay a solid foundation for compliant information disclosure ensuring equal access Online

Interaction platform confirming information with relevant business units as needed to ensure

to information for all investors. Furthermore in accordance with the Insider Information Confidentiality System timely responses.and the Insider Information Registrant Management System for Listed Companies the Company standardizes the

Phone Fax The Company provides dedicated investor contact lines fax numbers and email

internal reporting transmission and confidentiality procedures for significant information controls the scope of and Email addresses ensuring availability during working hours and arranging personnel to

insiders and prevents the risk of leaks. provide timely feedback to investors.Strategy The Company actively participates in large-scale listed company exchange events

2023 Information Disclosure Meetings organized by brokers engaging with investors to strengthen its brand image in the

Periodic Reports Disclosed Interim Announcements Disclosed Exchange Rating capital market.

4 76 B Reverse By visiting investors in person the Company introduces its business operations Roadshows enhancing investors’ understanding of the Company.

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Management Measures and Results

Identification of the Actual Controller

The Company’s public opinion monitoring covers traditional media as well as new media platforms such

as East Money Stock Bar and Xueqiu.com. From pre-monitoring to in-process handling and post-tracking The Company’s actual controller is the Mianyang State-owned Assets Supervision and Administration

the Company effectively manages negative incidents. When faced with negative investor comments the Commission and its controlling shareholder is Sichuan Changhong Electric Co. Ltd. The Company has a

Company responds appropriately in a timely manner and simultaneously releases positive content to guide complete business system and independent operating capabilities maintaining independence in business

public opinion. In cases of malicious or false reports the Company promptly contacts the media and authors personnel assets organization and finance from the actual controller and controlling shareholder.for positive and effective communication to minimize negative impacts. In 2024 the Company experienced

no significant public opinion incidents.The Company implements a continuous stable and transparent profit distribution policy balancing long- Business

term interests and sustainable development while prioritizing reasonable returns for investors. The 2023 The Company has independent and complete business operations and autonomous management

Annual Shareholders’ General Meeting approved the shareholder return plan for the next three years capabilities. It has dedicated departments for procurement production technology sales and

(2024–2026) stipulating that the Company will distribute profits annually from 2024 to 2026 provided human resources managing its business independently. Its operational personnel are independent

that profits and cash flow meet normal operations and long-term development needs. The Company may 01 of the controlling shareholder and its subsidiaries.also conduct interim cash dividends or stock dividends based on profitability and capital requirements

with cash dividends being the preferred form of profit distribution. The total cash dividends (including

interim dividends) distributed in a single year shall be no less than 15% of the distributable profits of the Personnel

listed parent company for that year but shall not exceed the lower of the distributable profits in the parent The Company’s personnel labor and salary systems are fully independent. The President Vice

company’s financial statements and consolidated financial statements. Presidents Chief Financial Officer and Board Secretary all work for the Company and receive

compensation from the Company. They do not hold any administrative positions or receive

remuneration from the actual controller controlling shareholder or their subsidiaries except as

02 directors or supervisors.

Proportion of Net Profit Attributable to

Amount of 2023 Annual Profit Distribution Listed Company Shareholders Assets

30897.71 41.70 The Company possesses independent production and operation facilities and a complete 10000 RMB %

asset structure separate from the actual controller and controlling shareholder. This includes

independent production procurement sales auxiliary production systems and supporting

03 facilities as well as assets such as land use rights and property ownership.

IR Interactive Responses Earnings Briefings Investor Receptions

126 1 54 OrganizationThe Company has established organizational structures fully independent of the actual controller

and controlling shareholder. The Shareholders’ General Meeting Board of Directors Board of

Supervisors and internal organizations operate independently with no interference in business

04 decisions by the actual controller or controlling shareholder beyond the authority of the

Shareholders’ General Meeting.Investor Hotline Calls Received Institutional Investor Receptions

560 757 Finance

The Company has an independent financial management department an independent

Investor Research Activities 05 accounting system and financial management policies. It maintains independent bank accounts and tax filings.

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Compensation Management for Directors Supervisors and Senior Executives Internal Financial Control

The Company has established and improved scientific fair and transparent performance evaluation standards The Company places great emphasis on internal financial control building a financial control system centered

on accounting control and management control. Specifically the Company has established comprehensive

and incentive and constraint mechanisms for directors supervisors and senior executives. The performance of

accounting policies to standardize accounting processes ensuring the truthfulness accuracy and completeness

directors supervisors and senior executives is evaluated daily by the Human Resources Department and assessed

of financial information. It has compiled an authorization and delegation manual to clarify the responsibilities and

annually by the Compensation and Evaluation Committee. The remuneration rewards and penalties of the

authorities of personnel at all levels achieving clear accountability and mutual checks and balances. The Company

President Board Secretary and other senior executives are determined by the Board of Directors. In accordance has improved financial operation guidelines to standardize business processes and reduce operational risks. An

with the Management Measures for Independent Directors of Listed Companies and the Articles of Association and effective internal audit mechanism has been established to promptly identify and rectify issues through financial

considering industry practices and the Company’s actual conditions the 2024 First Extraordinary Shareholders’ audits with audit results serving as a critical basis for improving financial management. By continuously refining

General Meeting approved the standards for independent directors’ allowances to better leverage their its financial internal control systems the Company has effectively enhanced its financial management capabilities

supervisory and decision-making roles. providing strong support for operational decision-making.In line with financial management requirements the Company has established eight major financial management

Internal Control cycles through the “Three Modernizations of Management” approach: sales and receivables procurement and

payables production inventory research and development fixed assets funds and accounting and taxation. For

Overall Internal Control each of these cycles the Company has formulated specific policies and management measures.In accordance with the Basic Norms for Enterprise Internal Control and relevant government directives and in 01 sales and receivables 03 production 05 research and development 07 funds

line with the Company’s strategic planning and operational objectives the Company has formulated the Basic

System of Compliance Risk Control Management and the Measures for the Administration of Compliance Review

among other policies. These documents define the organizational structure division of responsibilities basic

principles management requirements and procedures for internal control. Additionally the Company monitors Eight major financial management cycles

changes in laws regulations and regulatory policies promptly reviewing and improving its rules and regulations

to convert external compliance requirements into internal policies. In 2024 the Company formulated or revised

over 70 internal control-related systems including the Corporate Strategic Planning Management System and the

Enterprise Technical Standards Document Management Regulations. 02 procurement 04 inventory 06 fixed assets funds 08 accounting and and payables taxation

For key areas such as procurement financial management personnel management service management and

safety management as well as high-risk businesses the Company has established specific operational policies

or specialized guidelines to strengthen internal control. During the reporting period the Company completed

walkthrough tests for internal control with no non-conformities identified.

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Internal Audit Management

Tax Incentive Related-Party

The Company attaches great importance to internal audit work establishing the Internal Audit Management System Invoice Management RisksApplication Risks Transaction Risks

to provide institutional safeguards. The Audit Department with the support of the Audit Committee maintains a

Organize in-depth training for F o l l o w t h e a r m ’ s l e n g t h E s t a b l i s h s t r i c t i n v o i c e

high degree of independence enabling objective and impartial audit activities. The department diligently fulfills tax personnel and relevant p r i n c i p l e fo r re l ate d - pa r t y m a n a g e m e n t s y s t e m s ;

its responsibilities centered on supervision and service. In accordance with regulations policies and industry b u s i n e s s d e p a r t m e n t s t o transaction pricing; promptly strengthen training on invoice-

standards the Audit Department conducts risk-oriented audits of all business units and departments ensuring the accurately grasp the conditions and fully submit related-party r e l a t e d r e g u l a t i o n s a n d

effective execution of internal control procedures. and application processes for tax transaction declarations to tax operational requirements for

incentives; classify and properly authorities including details of financial and business personnel

store supporting documents as related enterprises transaction

Number of Audit Projects for the Year required by tax authorities types and amounts

266

The Company has implemented a series of measures to strengthen tax management. It conducts regular tax-

Tax Management specific inspections and issues detailed reports to ensure timely identification and correction of tax issues. Through

organized learning sharing and discussions the Company has built an internal tax knowledge base continuously

The Company regards tax management as a lifeline for its development consistently prioritizing it and taking

enhancing the compliance awareness and tax management capabilities of relevant personnel. Additionally the

practical measures to continuously improve tax management capabilities. The Company has formulated tax

Company actively promotes the digital transformation of tax management improving settlement efficiency through

management systems such as the Value-Added Tax Invoice Management Measures and the Enterprise Income Tax

fully digital electronic invoices and achieving paperless invoicing safeguarding the Company’s sustained and

Deduction Voucher Management Measures updating them in response to the latest business realities processes

healthy development.and tax policy changes to enhance tax compliance and reduce tax risks.Based on tax-related policies regulations and the Company’s overall financial and risk control requirements we

regularly identify and manage tax governance risks. A comprehensive tax risk assessment and control mechanism

has been established following the PDCA (Plan-Do-Check-Act) cycle covering tax policy changes business-tax The Company actively fulfills its tax obligations promptly and accurately declares tax information

differences tax risk lists and tax information management effectively preventing and mitigating tax risks. and conducts tax filings and payments in an orderly manner. It voluntarily accepts tax inspections

and its tax credit rating has consistently been classified as A by tax authorities for many years.Do Check

Compliance Management

The Company consistently adheres to ethical business practices upholds compliance as a bottom line and

the PDCA integrates compliance principles into all aspects of its operations and management. The Company continuously

Plan cycle improves its compliance operation mechanisms strengthens the foundation for compliance risk prevention and Act control enhances compliance reviews and advances the development of a compliance culture. Additionally the

Company actively builds a compliance management organizational structure that aligns with its development

effectively identifies and manages compliance risks and systematically advances the construction of its compliance

management system driving high-quality development through efficient compliance management.

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Four-Element Framework for Compliance Management Topics

Risk Factor Risk/Opportunity Description Impact Impact Level Duration Mitigation MeasuresGovernance Related to Compliance Management

The Company has formulated compliance management systems including the Basic System of Compliance Continuously monitor customs

Risk Control Management the Measures for the Administration of Compliance Review the Compliance and tax and foreign exchange

control policies in client

Risk Control Work Guidelines the Internal Control System Standards the Compliance and Risk Control Import/export of goods item countries establish early warning

Administrator Management Measures and the Implementation Measures for Accountability in Irregular transfers and personnel

employment may be mechanisms and promptly report

Business Operations and Investments. These systems provide a solid institutional foundation for compliance prohibited or restricted due to to the Company any policy changes

management. In terms of the compliance system the Company has established a multi-level governance Export Control that may affect transactions so

and Economic anti-subsidy antitrust anti- as to adjust business strategiesstructure encompassing the “Shareholders’ General Meeting/Board of Directors/Party Committee— Sanction Risks dumping policies or changes Medium to in international environments Medium Long Term proactively. StrengthenCompany Leadership—Chief Compliance Officer—Board Office and Compliance and Risk Control in Overseas and policies impacting international market research toDepartment—Functional Departments—Business Execution Units” clarifying the division of responsibilities Business overseas operations may stay informed of market trends and competitive dynamics. Enhance

and authorities for compliance management. be subject to economic

sanctions leading to impacts corporate credibility through social

on overseas operations. responsibility audits stabilize

Strategy Related to Compliance Management funding channels and strengthen relationships with core clients to

improve risk response capabilities.To ensure continuous compliance in its operations Changhong Meiling prioritizes risk managementaiming to establish a closed-loop risk management mechanism of “risk identification—remediation—Some non-complianttracking and early warning—remediation verification”. The Company has built a risk management personnel may abuse Strengthen awareness of discipline

system covering risk identification assessment monitoring and response and established a routine risk their power for personal and rules strictly follow systems

management reporting mechanism to ensure transparency and timely decision-making. gain using their positions and procedures. Fulfill dual

Integrity to benefit themselves responsibilities integrating

Risk and Opportunity Identification and Response Measures Risks among relatives or specific Medium Long Term Party conduct and integrity with

Personnel relationships engaging in business operations. Enhance improper behaviors such as integrity awareness among cadres

Risk Factor Risk/Opportunity Description Impact Impact Level Duration Mitigation Measures

unauthorized consumption and employees through integrity

and mutual banqueting commitment agreements and

tarnishing the Company’s integrity training.Policy and Changes in domestic and

Regulatory international laws and Medium Medium to

Monitor changes in relevant policies image.regulations (e.g. antitrust laws) Long Term and regulations and implement Risks may increase compliance costs preventive measures in advance

Non-compliance incidents may Develop emergency response

Market lead to negative public opinion measures for compliance incidents

and Public affecting business operations High Short Term clarify event handling procedures

Opinion Risks such as customer loss and stock and responsibilities and minimize

price declines adverse impacts promptly

Brand Value A good corporate image can

Improve the credibility of corporate

Opportunities more easily gain consumer trust Medium Long Term

compliance management by

thereby enhancing brand value referencing standards such as ISO 37301

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Management of Compliance-Related Impacts Risks and Opportunities

Compliance Review Flowchart (Major

Changhong Meiling has established an integrated compliance and risk management system that is risk- Projects Large-Scale Procurement and Compliance Review Flowchart (Core

Policies Major Decisions)

oriented compliance-focused and internal control-driven. Based on operational objectives risk levels Sales Significant Funds etc.)

and resource allocation the Company scientifically sets up management structures clarifies managementresponsibilities and reasonably allocates management personnel. The Company has built a “three linesof defense” for compliance and risk management consisting of business departments the Board Office

and Risk Control Compliance Department the Audit and Supervision Department and decision-making

bodies ensuring that risk control compliance and internal control management are fully implemented in

terms of “structure responsibilities and positions”.Compliance-Related Indicators and Goals

In accordance with laws regulations national standards the Guidelines and its actual conditions the

Company has set relevant goals for compliance governance and continuously tracks their execution.During the reporting period the Company completed its compliance governance-related objectives.Compliance Training

Category Target Time Frame Progress During Reporting Period

Compliance

Zero major compliance violations Short Term Completed The Company actively conducts compliance training and awareness campaigns continuously strengthening

Violation

employees’ and compliance personnel’s legal mindset compliance awareness and legal compliance

Risk Conduct a comprehensive risk

Investigation investigation at least once annually Short Term Completed capabilities effectively advancing compliance efforts.In 2024 the Company conducted over 10 training sessions on integrity contract management and compliance

management with compliance management personnel and related staff participating.Compliance Review Process

The Company embeds compliance reviews into its operational management processes making them a mandatory

Total Number of Governance

procedure for core policy formulation major decision-making important contract signing major project and Compliance Training Sessions

operations large-scale procurement and sales and significant fund management. 5

Business units conduct compliance self-checks evaluations and assessments of submitted matters based on laws

regulations regulatory requirements and internal policies forming preliminary conclusions before submitting Total Number of Governance

them for administrative approval. Depending on the category of the submitted matter the administrative approval and Compliance Training Sessions

process involves selecting the relevant functional department for compliance review. Functional departments 10

complete compliance reviews according to their responsibilities and division of labor. The relevant business and

functional leaders as well as senior management review the submitted matters after compliance reviews. For Total Number of Participants in

Governance and Compliance Training

core policies and major decisions the Board Office and Risk Control Compliance Department conduct a secondary Compliance and Risk Control Practical Compliance and

review and the Chief Compliance Officer provides comments. Matters requiring review by the Party Committee 150 Roadshow Training Risk Control Management

Board of Directors or Shareholders’ General Meeting undergo comprehensive deliberation and decision-making

through the appropriate procedures.

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Business Ethics and Anti-Corruption Case

Changhong Meiling strictly complies with the Company Law of the People’s Republic of China the Basic Norms

for Enterprise Internal Control and other laws and regulations. The Company and its subsidiaries have established During the reporting period Changhong Air Conditioner added integrity culture promotion boards and

the Anti-Corruption Anti-Bribery and Anti-Fraud Management Regulations and the Eight-point Provisions of installed integrity culture signage in multiple roads and areas of the industrial park enhancing the integrity

Changhong Meiling Co. Ltd. clarifying a compliance risk control and internal control anti-corruption compliance culture atmosphere.management system within the legal framework. Additionally the Company irregularly supervises and inspects

for illegal and non-compliant behaviors maintaining a “zero tolerance” stance towards violations of laws

regulations and ethical principles.Compliance

Risk Internal

Control Control

Integrity Culture Signage

Anti-Corruption Management

To effectively prevent corruption the Company requires cadres and 2024 Key Performance

key employees to sign the Integrity Commitment Agreement and

During the reporting period neither the Company nor its employees were involved in

conducts one-on-one integrity talks with newly appointed cadres

corruption bribery or fraud cases concluded or under trial in court;and key personnel. The Company also implements the “SunshineNo employees were dismissed or disciplined due to corruption;Procurement” initiative requiring participating employees to sign

No business partner contracts were terminated or not renewed due to corruption.integrity agreements effectively building a company-wide integrity

and risk control defense line ensuring the implementation of anti-

corruption systems and safeguarding the Company’s integrity-

driven development. Integrity Education Pocket Guide

Whistleblower Protection

To protect the privacy of whistleblowers Changhong Meiling has formulated the Measures for the Administration of

Complaint Reporting which clearly define reporting channels methods and whistleblower protection measures.To further strengthen employees’ anti-corruption awareness the Company conducted The Company has established multiple public reporting channels including a whistleblower hotline a disciplinary

multiple anti-corruption training sessions for management and key personnel during the inspection commission email and a whistleblower mailbox. Whistleblowers can submit complaints and reports

reporting period organized case studies of typical corruption cases and visited integrity anonymously fundamentally eliminating the risk of information leakage. All reporting channels are directly

education bases achieving a 100% participation rate among management. managed by the Company’s Party Disciplinary Inspection Commission Office to minimize the risk of whistleblower

information exposure.

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For whistleblowers providing real-name reports and valid evidence the Company implements strict confidentiality Anti-Unfair Competition

measures prohibiting any form of suppression or retaliation. Individuals who violate confidentiality regulations will

be severely punished. Additionally the Company has established a whistleblower reward mechanism recognizing The Company strictly complies with the Anti-Monopoly Law of the People’s Republic of China the Anti-Unfair

and rewarding effective whistleblowers to encourage employee participation and jointly uphold the Company’s Competition Law of the People’s Republic of China the Foreign Trade Law of the People’s Republic of China

integrity. and relevant laws and regulations for overseas operations. It has formulated the Market Order Management

Measures and established the Market Order Management Committee to actively build a fair and ethical competition

mechanism striving to create a fair market environment. The Company firmly opposes the use of unfair means to

Mobile OA Communication QQ Group: 539027439 restrict or eliminate market competition ensuring the healthy and orderly development of the market.Whistleblower Hotline: 0551-62219043 To systematically regulate anti-monopoly and fair competition risk control the Company has established a full-

Whistleblower Email: jianghong.tan@changhong.com li.liu@meiling.com process control mechanism. In the risk monitoring phase the Company tracks updates to laws and regulations in

real time studies typical administrative law enforcement cases and identifies potential compliance risks based on

industry characteristics. During the contract signing stage the Company rejects clauses that violate fair competition

and opposes price monopoly clauses.

2024 Key Performance

2024 Key Performance

During the reporting period the Company did not incur any penalties for violations

of the Anti-Monopoly Law of the People’s Republic of China or the Anti-Unfair

Number of Anti-Corruption and Anti-Bribery Training Sessions Competition Law of the People’s Republic of China.

34

Case

Total Duration of Anti-Commercial Total Number of Employees Participating in Anti-

Bribery and Anti-Corruption Training Commercial Bribery and Anti-Corruption Training

1212068

Total Number of Directors Participating Percentage of Directors Participating in Anti- The Company actively responded to the 2024 China

in Anti-Commercial Bribery and Anti- Commercial Bribery and Anti-Corruption Fair Competition Policy Publicity Week by promoting

Corruption Training Training fair competition awareness among employees

9 100 % through platforms such as the official WeChat

account driving the optimization and high-quality

To t a l N u m b e r o f M a n a g e m e n t P e r c e n t a g e o f M a n a g e m e n t development of the market environment.Participating in Anti-Commercial Participating in Anti-Commercial

Bribery and Anti-Corruption Training Bribery and Anti-Corruption Training

541100%

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Performance Table

Indicator Unit 2024 Data Indicator Unit 2024 Data

Direct GHG emissions (Scope 1) tCO2e 710.36 Total gasoline consumption ton 16.48

Indirect GHG emissions (Scope 2) tCO2e 62486.27 Total diesel consumption ton 143.20

Total carbon emissions tCO2e 63196.63 Total natural gas consumption Million cubic meters 274.10

"Total carbon emissions per million yuan tCO2e/million revenue(RMB) 6.18 Thermal power (steam) consumption Million kilojoules 37140.00 of output value"

The total environmental protection investment RMB10000 1723.74 Liquefied petroleum gas consumption ton 13.06

Industrial wastewater discharge volume ton 763511.73 Percentage of renewable energy consumption % 22.77

Domestic wastewater discharge volume ton 312195.12 Total integrated energy consumption Tons of standard 29164.20

Total wastewater discharge volume ton 1075706.85 Total energy consumption per million yuan of Tons of standard coal per revenue million revenue(RMB) 1.02

Wastewater discharge volume per million

revenue(RMB) t/million revenue(RMB) 37.61 Total water consumption Cubic meters 823326.48

Chemical oxygen demand (COD) discharge ton 113.42 Total water savings Cubic meters 10819.00

Biochemical oxygen demand (BOD) discharge ton 18.49 Water consumption per million yuan of revenue Cubic meters per million revenue(RMB) 28.79

Total waste gas emissions ton 6.08 Total amount of recycled water Cubic meters 434271.13

Waste gas emission intensity t/million revenue(RMB) 0.0002 Ratio of recycled water to total water consumption % 52.75

Particulate matter (PM) emissions ton 0.47 Total material consumption in production and packaging ton 1171101.81

Nitrogen oxide (NOx) emissions ton 0.27 Consumption of renewable materials ton 807487.36

Volatile organic compound (VOC) emissions ton 0.67 The company's product qualification rate % 98.98

Hazardous waste generation ton 671.75 Number of complaints related to products and services case 851

Hazardous waste generation per million

revenue(RMB) t/million revenue(RMB) 0.02 Customer complaint resolution rate % 100.00

Non-hazardous waste generation ton 31712.26 Customer complaint response rate % 100.00

Non-hazardous waste generation per million

revenue(RMB) t/million revenue(RMB) 1.11 Average response time for customer complaints Hour 0.50

Total amount of electricity used Million kWh 190.0890 Average resolution time for customer complaints Hour Within 24 hours

Of which: total amount of purchased green power Million kWh 38.9172 Domestic Customers Comprehensive Satisfaction % 96.82

The Company’s photovoltaic generation Million kWh 4.3678 Overseas Customers Comprehensive Satisfaction % 98.80

183184

Environmental performance Social performance

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Indicator Unit 2024 Data Indicator Unit 2024 Data

Number of data security and privacy-related trainings Time 24 Number of Employees with Master's Degrees or Higher Person 223

Average training duration per person of data security and Number of Female Employees Person 6835

privacy-related trainings Hour 2

Coverage rate of data security and privacy training % 89.00 Proportion of Employees with Disabilities % 0.50

Total number of suppliers at the end of the reporting Supplier 2106 Proportion of Female Executives Among Total Executives % 23.53 period

Localization rate of suppliers % 36.45 Number of Female Senior Managers Person 4

Number of suppliers with sustainability certifications Supplier 850 Social Insurance Coverage Rate % 100

Proportion of suppliers with sustainability certifications % 40.36 Total Investment in Employee Training 10000 RMB 314.00

Amount of responsible (green) procurement 10000 RMB 1236667.83 Average Training Hours per Employee Hour 24

The R&D investment amounted 10000 RMB 80141.22 Employee Training Coverage Rate % 100

The R&D investment amounted to operating revenue % 2.80 Investment in Employee Work Injury Insurance 10000 RMB 390.00

Number of R&D personnel Person 1781 Employee Work Injury Insurance Coverage Rate % 100

The proportion of R&D team members to the total number % 16.90 Amount of Charitable Donations 10000 RMB 192.00 of employees

Number of Valid Patents Patent 3933 Number of Volunteer Activities Session 7

Number of Invention Patents Applied to Core Business Patent 981 Employee Participation in Volunteer Activities Person 969

Number of Software Copyrights Copyright 98 Total Hours of Volunteer Activities Hour 2404

Total Number of Employees Person 14655 Number of Directors Person 9

Number of Production Staff Person 7410 Number of Independent Directors Person 3

Number of Sales Staff Person 4458 Proportion of Independent Directors % 33.33

Number of Technical Staff Person 1911 Number of Female Directors Person 2

Number of Financial Staff Person 292 Proportion of Female Directors % 22.20

Number of Female Directors Supervisors and Senior

Number of Administrative Staff Person 584 Executives Person 4

Number of Employees with High School Education or Proportion of Female Directors Supervisors and Senior

Below Person 9096 Executives

%25.53

Number of Employees with College Education Person 2282 Number of Shareholders’ General Meetings Time 4

Number of Employees with Bachelor's Degrees Person 3054

185186

Social performance Governance performance

Social ResponsibilityReport Chairman’s About Changhong Deepening ESG

Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index

Report Index

Indicator Unit 2024 Data

Number of Items Discussed and Reviewed at Shareholders’ Contents the Guidelines

General Meetings Case 34 Report Preparation Notes T6

Number of Meetings of the Board of Directors Time 15 Chairman’s Message \

Number of Items Discussed and Reviewed by the Board of Directors Case 103 About Changhong Meiling \

Number of Meetings of the Board of Supervisors Time 10 Materiality Assessment T5、T11、T52

Deepening ESG Governance Capabilities T12、T14、T15、T16、T17

Number of Topics Reviewed by the Board of Supervisors Case 41

Environment

N umber of Times a Particular Topic was Not Approved at the Above

Meetings Time 0

Climate Change Response T8、T16、T17、T18、T22、T23、T24、T25、T26、T27、T28

Amount of 2023 Annual Profit Distribution 10000 RMB 3097.71

Environmental Compliance Management T33

Proportion of Net Profit Attributable to Listed Company

Shareholders % 41.70 Strengthening Pollution Prevention and Control T30、T31

IR Interactive Responses Time 126 Strengthening Energy Management T35

Earnings Briefings Time 1 Water Resource Utilization T36

Investor Receptions Time 54 Developing the Circular Economy T37

Ecological and Biodiversity Conservation T32

Investor Hotline Calls Received Time Approximately560

Advancing Green Manufacturing T20

Institutional Investor Receptions Person 757 Social Responsibility

Number of Audit Projects for the Year Case 266 Product and Service Safety and Quality T47

Total Number of Governance and Compliance Training Sessions Session 5 Data Security and Customer Privacy Protection T48

Win-Win Cooperation T45、T46

Total Duration of Governance and Compliance Training Hour 10

Innovation-Driven Development T42、T43

Total Number of Participants in Governance

and Compliance Training Person 150 Employees T50

Number of Anti-Corruption and Anti-Bribery Training Sessions Session 34 Social Responsibility T39、T40

Total Duration of Anti-Commercial Bribery

and Anti-Corruption Training Hour 121 Governance

Total Number of Employees Participating in Anti-Commercial

Bribery and Anti-Corruption Training Person 2068

Corporate Governance Mechanisms T9、T53

Total Number of Directors Participating in Anti-Commercial Bribery Business Ethics and Anti-Corruption T55

and Anti-Corruption Training Person 9 Anti-Unfair Competition T56

Percentage of Directors Participating in Anti-Commercial Bribery

and Anti-Corruption Training % 100 Appendix

Total Number of Management Participating in Anti-Commercial

Bribery and Anti-Corruption Training Person 541 Performance Table \

Percentage of Management Participating in Anti-Commercial Report Index T57

Bribery and Anti-Corruption Training % 100

187188

Governance performance