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 01Report Chairman’s About Changhong Deepening ESG 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 7 8Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 9 10Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 11 12Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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) 13 14Report Chairman’s About Changhong Deepening ESG 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 Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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 17 18Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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 Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 23 24Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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 Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 49 50Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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 Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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 Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 55 56Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 57 58Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 59 60Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 61 62Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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 63 64Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 65 66Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 67 68Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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 Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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 Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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 Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 79 80Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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%. 81 82Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 83 84Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 85 86Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 8788 Complaint Handling ProcessReport Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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 89 90Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 91 92Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 93 94Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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 95 96Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 97 98Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 99 100Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 101 102Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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)". 103 104Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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 Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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" 107 108Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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 109 110Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 111 112Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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 Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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 Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 117 118Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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 Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 121 122Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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 Labor Dispute Resolution MechanismReport Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 125 126Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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 127 128Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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 129 130Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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 Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 133 134Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 135 136Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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 137 138Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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 Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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 143 144Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 145 146Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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 Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 149 150Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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 151 152Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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 Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 155 156Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 157 158Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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 Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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 163 164Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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 the Board of DirectorsReport Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 167 168Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 169 170Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 171 172Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 173 174Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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 175 176Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 177 178Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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. 179 180Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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% 181 182Report Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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 Environmental performanceReport Chairman’s About Changhong Deepening ESG Preparation Notes Message Meiling Materiality Assessment Governance Capabilities Environment Social Responsibility Governance Performance Table Report Index 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