2024

SUSTAINABILITY RE2PO0RT24

XUZHOU HANDLER SPEC可IAL VE持HICLE续 CO. 发LTD. 展报告

徐 州 海 伦 哲 专 用 车 辆 股 份 有 限 公 司Contents

Foreword

About This Report 01

Message from the Chairman 02

About Handler 04

010203

Appendices Environmental Social Governance

Embracing Green Principles to Uniting Stakeholders for Collective Upholding Prudent Operations to

ESG Performance Overview 58

Protect Ecosystems Progress Safeguard Enterprise Development

Content Index 61

Suggestions and Feedback 62 Rural Revitalization and Social Contributions 30 Corporate Governance 50Climate Change Response 12

Innovation-Driven Development and Technology Ethics 31 Sustainable Development Governance Mechanisms 53

Environmental Compliance Management 18

Supply Chain Management 38 Business Conduct 54

Pollution Prevention and Ecological Protection 20

Product Liability 39 Compliance and Risk Management 57

Resource Utilization Optimization 24

Data Security and Privacy Protection 42

Employee Rights and Interests Protection 43About This Report

Introduction Preparation Basis

The Report marks the inaugural sustainability disclosure by Xuzhou Handler Special Vehicle Co. Ltd. (hereinafter referred to as Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange— Sustainability Report (For Trial Implementation) issued

“Handler” “the Company” or “we”) to the public. Prepared in accordance with the principles of objectivity standardization transparen- by the Shenzhen Stock Exchange

cy and comprehensiveness it highlights Handler’s sustainable development practices and performance throughout the year 2024. Self-Regulatory Guidelines No. 3 for Companies Listed on Shenzhen Stock Exchange—Preparation of Sustainability Reports issued by the

Shenzhen Stock Exchange

Reporting Scope Sustainability Reporting Standards (GRI Standards 2021) issued by the Global Sustainability Standards Board (GSSB)United Nations 2030 Sustainable Development Goals (SDGs)

Time frame: The Report covers the period from January 1 2024 to December 31 2024 (hereinafter referred to as “the Reporting Period”).To enhance the comparability and completeness of the Report selected content may include retrospective data from previous years or Data Sources

forward-looking statements.Organizational scope: The Report focuses on Xuzhou Handler Special Vehicle Co. Ltd. including its subsidiaries. Unless explicitly stated The data presented in the Report is derived from Handler’s internal records official documents and audited financial statements with

otherwise the scope of the Report aligns with that of the Company’s 2024 Annual Report. certain financial figures extracted from the Company’s 2024 Annual Report. Unless otherwise specified all monetary amounts in the

Report are denominated in RMB.Release Cycle Report Access

The Report is published on an annual basis coinciding with the fiscal year.In support of our commitment to low-carbon environmental protection and sustainable development the Report is available for online

viewing and download in electronic format on the Shenzhen Stock Exchange website (www.szse.cn) and the Company’s official website

(www.xzhlz.com).Contact Information

Xuzhou Handler Special Vehicle Co. Ltd.Address: No. 19 Baoliansi Road Xuzhou Economic and Technological Development Zone Jiangsu Province China

Postal code: 221004

Email: hlzzqb@xzhlz.com

0102 XUZHOU HANDLER SPECIAL VEHICLE CO. LTD. FOREWORD ENVIRONMENTAL SOCIAL GOVERNANCE APPENDICES 03

Message from the Chairman

Handler Demonstrates a Proactive Approach to Responsibility

Empowering Partners for Shared Success.In 2024 the Company focused on rural public safety and infrastructure resilience construction in 69 cities and towns across 25 provinces nation-“ wide supporting the implementation of the rural revitalization strategy. With respect to our products and services we are committed to innova-tion-driven development continuously cultivating intellectual property assets and achieving significant breakthroughs in high-end coreDear friends technology research. Furthermore we are dedicated to optimizing customer service quality and I am pleased to report that annual customer

satisfaction reached a record high of 99.09%. Above all Handler prioritizes the well-being of its employees. Through a multi-faceted employee

On behalf of the Board of Directors of Handler I extend my welfare system a dual-track “management and professional” development pathway and a dual-engine training model incorporating “academicsincere gratitude for your unwavering care and support. advancement + skill certification” we foster a positive synergy between employee growth and enterprise development. In the realm of occupa-

tional health and safety Handler has achieved ISO 45001 certification and established a robust safety management system. We are committed

Against a backdrop of escalating global climate change and to continuously improving employee health protection and reinforcing our frontline defenses for work safety.an accelerating transition towards low-carbon economies

sustainable development has emerged as a core imperative

for high-quality economic growth. As a listed company

dedicated to specialized high-end intelligent equipment Handler Remains Focused on Strengthening Governancemanufacturing Handler remained steadfast in its “technolo- to Guarantee Integrity and Compliance.gy-driven differentiation” strategy throughout 2024. By

leveraging innovation to drive green transformation we are

committed to delivering more efficient low-carbon In 2024 Handler continued to strengthen its corporate governance framework and further optimize its governance structure to ensure scientific

intelligent equipment solutions to our global clientele. and efficient decision-making. We place significant emphasis on safeguarding shareholders' rights and investor returns. This year we canceled

Integrating sustainability into every facet of our operations 31.88 million repurchased shares and distributed a cash dividend of RMB34.59 million for 2023 allowing our investors to share in the dividends

we strive to foster a modern industrial ecosystem in harmo- of our success. Furthermore we are embedding sustainability at the heart of our governance developing a “Four-Dimensional Synergy”

ny with nature. approach to sustainable practices designed to fortify Handler’s competitive edge. With regard to business ethics Handler standardizes business

conduct through a comprehensive set of measures including commitment signing risk control inspections and training. We continuously

reinforce employees' business ethics awareness and ensure adherence to the principles of integrity and compliance in all business activities. We

also actively engage and collaborate with partners to promote a fair and transparent business environment and jointly maintain a healthy

industry order.Handler Champions Green Manufacturing Upgrades Looking ahead Handler will harness “New Quality Productive Forces” as the engine deepening its strategic initiatives in Specialized Equipment

Highlighting its Commitment to Environmental Friendliness. Innovation New Energy Transition Intelligent Transformation and Global Expansion. This will facilitate a profound integration of ESG strategy

with business growth. We remain steadfast in our commitment to advancing green operations and strengthening our social responsibility

In 2024 Handler achieved product carbon footprint certification for its “GKS28 Aerial Work Platform” and actively pursued the development of initiatives underpinned by transparent and efficient governance mechanisms. These concerted efforts will safeguard sustainable development

green products such as compressed air foam fire trucks and liquid nitrogen fire trucks. These efforts underscore our commitment to technolog- and create shared value for all stakeholders.ical innovation and application within the green and low-carbon sector. Furthermore we implemented initiatives such as the paint-to-powder

project and promoted circulating water reuse in product debugging areas continuously reducing emissions and optimizing resource conserva-

tion and recycling. In the face of climate change Handler is dedicated to mitigating its carbon footprint through enhanced energy management

and the implementation of energy-saving measures. We are also actively identifying and addressing climate-related risks and opportunities to Xuzhou Handler Special Vehicle Co. Ltd.effectively manage our exposure. Looking ahead we will continue to explore and refine our climate-adaptive product portfolio and enhance our Chairman

resilience to climate impacts. Ding Bo04 XUZHOU HANDLER SPECIAL VEHICLE CO. LTD. FOREWORD ENVIRONMENTAL SOCIAL GOVERNANCE APPENDICES 05

About Handler

Company Profile

Founded in 2005 Handler secured specialized vehicle production qualification from the National Development and Reform Commis- Shanghai Grumman International Fire Equipment Co. Ltd. a wholly-owned subsidiary boasts a century-long legacy as the birthplace

sion (NDRC) in 2006. In 2011 the Company made history by listing on the ChiNext Board of Shenzhen Stock Exchange (Stock Code: of China's fire truck industry. It has pioneered countless industry-first innovations including China's first fire truck first fire pump first

300201) becoming China's first listed company in the mobile elevating work platform (MEWP) sector. In late 2012 Handler successful- fire extinguishing agent and first portable pump engine. As a key player in China’s fire truck industry Shanghai Grumman offers a

ly acquired Shanghai Grumman International Fire Equipment Co. Ltd. Today Handler is a leading provider of specialized vehicles and comprehensive portfolio encompassing tank-type special-type aerial-lift and firefighting robotic solutions. Adhering to a

robotic solutions encompassing research and development (R&D) manufacturing sales and service. Our product range includes “military-first civil-military integration” strategy Shanghai Grumman’s military equipment demonstrates strong market competitive-

mobile elevating work platforms (MEWPs) emergency power generation vehicles emergency drainage vehicles fire trucks and ness.specialized vehicles for military applications.The Company's emergency power generation vehicles bypass live-line operation vehicles fire trucks firefighting robots and

Handler is honored to be recognized as a National High-Tech Enterprise a National Intellectual Property Demonstration Enterprise a decontamination vehicles have been instrumental in ensuring power security at major events such as the Shanghai Cooperation

National Quality Benchmark Enterprise a Jiangsu Provincial Innovative Leading Enterprise and a Jiangsu Provincial Specialized and Organization Summit National Day Military Parade G20 Summit Winter Olympics World University Games Asian Games and Asian

Sophisticated Enterprise. We remain steadfast in our commitment to a “technology-driven differentiation” strategy guided by the Winter Games. They have also played a critical role in emergency rescue efforts following the Zhengzhou Flood on July 20 (2021)principle of “transforming traditional industries through advanced technology and driving corporate growth through technological Sichuan Power Supply Assurance Operations (2022) the Tianjin Port Explosion on August 12 (2015) the Xiangshui Chemical Plantinnovation”. Our business model founded on “R&D innovation as the cornerstone differentiated design and customization as the Explosion on March 12 (2019) and the Shigatse Dingri County 6.8-Magnitude Earthquake (2025).core flexible manufacturing as the support and refined services as the guarantee” enables us to blend independent innovation withthe integration of cutting-edge global technologies fostering substantial growth in recent years. Driven by a business model that prioritizes “R&D innovation as the cornerstone differentiated design and customization as the coreflexible manufacturing as the support and refined services as the guarantee” and guided by a “technology-driven differentiation”

Handler plays a leading principal or participating role in drafting national or industry standards for aerial work vehicles aerial work strategy the Company pursues development through innovation and efficiency through technology. With a talented R&D team and

platforms power supply vehicles power distribution vehicles and fire trucks. The Company consistently leads the industry in advanced research laboratories the Company is dedicated to overcoming key core technologies promoting the localization of

lightweight design aerial work intelligent features and insulated live-line operation for aerial work vehicles securing a dominant high-end core components accelerating high-level scientific and technological self-reliance and securing a leading position in the

position in the mid-to-high-end market. Handler has achieved import substitution for insulated vehicles as the sole enterprise in the industrial and value chains. The Company focuses on developing specialized robots intelligent monitoring and command systems

industry to realize domestic production of insulated booms. Furthermore Handler has become a leading provider of power emergen- and intelligent operation support systems for a wide range of applications including flood control and drainage anti-explosion and

cy support vehicle systems in China offering the most comprehensive product range complete functionality and integrated solutions. firefighting emergency power supply and fire rescue contributing to society and benefiting the people through technological innova-The emergency drainage and rescue vehicles developed by the Company were successfully recognized as “Typical Cases for Applica- tion. Moreover the Company actively participates in emergency response efforts by repeatedly dispatching service personnel andtion and Promotion of Safety and Emergency Equipment in 2024” by the Ministry of Industry and Information Technology (MIIT). maintaining a dedicated emergency rescue team demonstrating a strong commitment to social responsibility.Handler has garnered numerous accolades including two National Science and Technology Progress Second Prizes one China Patent

Excellence Award five provincial and ministerial science and technology progress awards and three sets of First-of-its-Kind Major

Technical Equipment in Jiangsu Province. The “Handler” brand is recognized as a Jiangsu Provincial Famous Brand.06 XUZHOU HANDLER SPECIAL VEHICLE CO. LTD. FOREWORD ENVIRONMENTAL SOCIAL GOVERNANCE APPENDICES 07

Corporate Culture

Our Spirit

Integrity Innovation Faster and Stronger!

Our Values

We adhere to the business philosophy of "custom-

er's success as our mission".Our Vision We advocate the style of "honest man and earnest Our Development

work".Take the lead in professional achievements and Strategy

"Honesty trust and mutual respect" are the

honestly create social well-being.foundation for all our activities. We remain at the forefront of global technological

We are committed to the intelligent equipment

"Crisis awareness innovative spirit teamwork advancements leading domestic industry trends

manufacturing to strive to be industry expert and

good at authorization and commitment" are the through innovation. We are committed to deliver-

pioneer. We are engaged in all activities in good

backbones for our career success. ing premium products and services that empower

faith to be the creator of social well-being."Value embodiment" and "harmony" are the our customers to achieve success and satisfaction.Our Mission

pillars for our success. We actively expand our presence in both domestic

and international markets specializing in provid-

To make aerial work safer more comfortable and "Customer success" is the goal of our struggle.ing cutting-edge specialized vehicle solutions. By

swifter.leveraging advanced technologies to transform

To make emergency rescues safer smarter and

traditional industries we drive sector-wide prog-

more efficient.ress through continuous technical progress.We are dedicated to cultivating an exemplary

workplace promoting employee growth and

fostering a corporate culture rooted in trust

respect and harmony.Customer

Success

Value Demonstration Harmony & Happiness

Honesty Trust Mutual Respect

Our Shared Values

Commitment Fulfillment

Effective Delegation

Team Collaboration

Innovation Spirit

Crisis Awareness08 XUZHOU HANDLER SPECIAL VEHICLE CO. LTD. FOREWORD ENVIRONMENTAL SOCIAL GOVERNANCE APPENDICES 09

Annual Honors and Awards

XUZHOU HANDLER SPECIAL VEHICLE CO. LTD. SHANGHAI GRUMMAN INTERNATIONAL FIRE EQUIPMENT CO. LTD.Included in the“2024 List of Typical Cases for Application and Included in the 2024 (First Batch) Shanghai Champion of a Single Product of the ShanghaiPromotion of Safety and Emergency Equipment” Jiangsu Provincial Specialized and Sophisticated SME Innovative Product Recommendation Catalog Manufacturing Industry of 2024

Jiangsu Provincial Department of Industry

General Office of the Ministry of Industry and Shanghai Municipal Commission of Shanghai Municipal Commission of

and Information Technology

Information Technology of the People's Republic of China Economy and Informatization Economy and Informatization

2024 Songjiang District Service-Oriented Certificate of Demonstration Enterprise for

Jiangsu Provincial May 1 Labor Award AAA Credit-Rated Enterprise

Seed Enterprise Patent Work in Shanghai

Jiangsu Provincial Trade Union Council Jiangsu Global Credit Rating Co. Ltd.Shanghai Songjiang District Economy Commission Shanghai Intellectual Property OfficeElected as Vice Chairman Unit of the China 2024 Certificate of “Philanthropic Enterprise inSpecialized and Sophisticated SMESafety Industry Association Agricultural Assistance”

Shanghai Municipal Commission of Economy and Informatization

China Safety Industry Association Shanghai Songjiang District Civilian Volunteers Public

Service Development Center10 XUZHOU HANDLER SPECIAL VEHICLE CO. LTD. FOREWORD ENVIRONMENTAL SOCIAL GOVERNANCE APPENDICES 11

Environmental

Embracing Green Principles

to Protect Ecosystems

Climate Change Response 12

Environmental Compliance Management 18

Pollution Prevention and Ecological Protection 20

Resource Utilization Optimization 24

SDGs addressed in this chapter12 XUZHOU HANDLER SPECIAL VEHICLE CO. LTD. FOREWORD ENVIRONMENTAL SOCIAL GOVERNANCE APPENDICES 13

Climate Change Response Type Climate-related risk description Financial impact Countermeasure

Policy and legal risks

Handler is proactively aligning with China’s “Dual Carbon” targets (achieving carbon peaking and carbon neutrality) embedding this commit- Closely monitor evolving policies

ment deeply within its corporate development strategy to drive concrete progress towards these goals. Recognizing the multifaceted impacts Amid recent energy conservation emis- and regulations related to the

of climate change on its assets supply chain trade and logistics operations the Company diligently assesses associated risks and opportuni- sions reduction and carbon emission trad- “Dual Carbon” targets compre-

ties. This forward-thinking approach informs the development of robust mitigation and adaptation strategies ensuring operational resilience ing regulations stricter carbon compliance hensively implement our carbon

and enabling sustainable development in a complex and evolving world. oversight on corporate facilities could man- Direct cost escalation reduction action plan accelerate

date the purchase of carbon emission research and development in

allowances triggering operational cost low-carbon technologies and

Climate Risks and Opportunities escalation. proactively our position within the

green and low-carbon sectors.Market risks

Handler closely monitors climate-related impacts continuously enhancing its capacity to assess and mitigate risks. The Company guides its

subsidiaries in developing tailored strategies to bolster climate resilience and ensure business continuity. Strengthen monitoring of evolv-Climate change trends may impact product

ing carbon footprint regulations.market access leading to shifts in custom-

Implement product carbon footprint

er purchas ing preferences and new

management and certification

requirements such as stringent carbon

Type Climate-related risk description Financial impact Countermeasure Direct cost escalation programs and develop zero-carbon footprint compliance. Failure to meet

demonstration projects.Acute risks market demand for green and low-carbon Direct revenue decline Intensify lean management-driv-

products could diminish competitiveness

en efficiency enhancement initia-

The increasing frequency and intensity of and sales. Additionally volatility in raw tives to achieve substantial and

extreme weather events such as typhoons material and energy prices may escalate effective improvements in opera-

and floods pose a significant threat to our operational costs. tional profitability.facilities equipment and infrastructure

potentially resulting in asset damage data Technological risks

Transition

loss and heightened safety risks for Indirect cost escalation Establish a robust emergency risks Amid the continuous advancement of ener-

employees. These disruptions can lead to management system. gy-saving equipment and technologies

equipment malfunctions service interrup- Direct revenue decline Refine contingency plans and traditional high-energy-consuming equip- Develop energy-sav ing and

tions and major operational breakdowns Fixed asset value depreci- conduct regular drills to enhance

ation ment faces an inevitable upgrade-and-re- carbon-reduction technologies thereby impacting business continuity and crisis response capabilities. placement trend. Consequently the Com- to advance clean energy equip-

causing direct or indirect financial losses. pany may incur increased capital expendi- ment.Physical Furthermore extreme heatwaves may tures due to the introduction of new ener- Indirect cost escalation Accelerate energy structure

risks induce electricity supply shortages disrupt- gy-efficient devices adoption of ener- transformation by implementing

ing energy-intensive operations and gy-saving and emission-reduction technol- energy efficiency retrofits and

leading to revenue declines. ogies or optimization of process systems. driving green industrial transi-

Additionally R&D expenditures on innova- tion.Chronic risks tive new energy products and alternative

technologies are also projected to rise.Upgrade energy-efficient equip-

Rising temperatures may escalate demand ment optimize cooling technolo- Reputational risks

for refrigeration equipment and amplify

Direct/Indirect cost gies and adopt digital manage- Pr ior i t i ze ESG in i t iat ives to

maintenance costs driving up operational escalation ment for systemic energy and strengthen our brand as a leader

expenditures. Water scarcity could heighten

Direct revenue decline carbon reduction.As stakeholders increasingly expect compa-

in sustainable development.expenditures through alternative water Promote water-saving initiatives nies to proactively address climate change Proactively engage stakeholders

procurement inflating business expenses. and implement integrated water and enhance disclosure transparency in

line with “Dual Carbon” targets and carbon Indirect cost escalation

identify and update material ESG

management. issues and integrate these prior-

neutrality policies insufficient progress in Direct revenue decline ities into our corporate strategy.emission reduction efforts may lead to

Ensure timely transparent and

reputational damage due to unmet envi-

equitable information disclosure

ronmental responsibility expectations.in compliance with all applicable

laws and regulations.Handler’s Climate Opportunity Identification and Response Framework14 XUZHOU HANDLER SPECIAL VEHICLE CO. LTD. FOREWORD ENVIRONMENTAL SOCIAL GOVERNANCE APPENDICES 15

Type Climate-related opportunity description Financial impact Countermeasure Green Actions and Initiatives

Upgrade energy-efficient equip-

ment and implement ener - Product Carbon Footprint Certification

gy-saving technological retrofit

Improving energy efficiency contributes to

Resource In response to the pressing global challenges of climate change and resource scarcity carbon footprint certification has emerged as a crucial

reducing operational costs in the produc- Direct cost decline

projects to enhance energy

efficiency efficiency. metric for assessing corporate green performance. It not only enables businesses to optimize their industrial chains and establish environ-

tion process for enterprises.Optimize management systems mentally sound logistics and supply chain systems but also fosters the growth of low-carbon industries and economies thereby enhancing

while promoting high-efficiency their competitiveness in the international marketplace. Aligned with China’ s carbon peaking and carbon neutrality strategies the Company

resource utilization. achieved carbon footprint certification for its “GKS28 Aerial Work Platform” during the Reporting Period. This accomplishment quantifies and

provides transparency into the product’s carbon footprint data significantly bolstering its environmental credentials.Promote the application of solar

Increasing the proportion of clean energy

energy and other clean energy

can reduce energy consumption costs;

Direct cost decline sources to drive the advance-optimizing production processes and Green Technologies

Energy ment and adoption of c lean

upgrading equipment can reduce green-

substitution Direct revenue technologies. The Company champions technological innovation as its core driver integrating green development principles into every facet of R&D and

house gas emissions thereby reducing escalation Adopt innovative production product design. Through pioneering green technologies and products we strive to create lasting value for society.sensitivity to changes in carbon emission

processes and new equipment

costs.to reduce energy consumption.Against the backdrop of the low-carbon

economic transition the growing consum-

Promote the green and low-car- Rooftop distributed photovoltaic

er preference for low-carbon products is

bon development of the transpor-

d r i v i n g d e m a n d g r o w t h f o r g r e e n Rooftop distributed photovoltaic (PV) systems convert solar energy boasting a total installed capacity of

tation industry and actively devel-

Market low-emission alternatives thereby unlock- Direct revenue

directly into electricity and are typically installed on building roof-

op new energy-powered vehicles.ing revenue growth potential for compa- escalation tops. These decentralized power generation systems offer several and products 3.88 MWStrengthen and expand strategic

nies offering vehicles with eco-friendly advantages including lower power output minimal pollution and

emerging industries in the green

attributes. Additionally developing new significant environmental benefits.and low-carbon sector. As of the end of the Reporting Period the Company had installed These systems generated approximatelyenergy products may qualify businesses for

government incentives and rewards. PV panels on its joint workshops and finishing facilities boasting a

total installed capacity of 3.88 MW. These systems generated 1000000 kWh

approximately 1000000 kWh of solar power during the year. of solar power during the year

Handler’s Climate Opportunity Identification and Response Framework

Rooftop Distributed Photovoltaic Handler’s Online Power Monitoring Platform – PV

Generation Monitoring16 XUZHOU HANDLER SPECIAL VEHICLE CO. LTD. FOREWORD ENVIRONMENTAL SOCIAL GOVERNANCE APPENDICES 17

Powder electrostatic spraying process

The Company's coating line utilizes a domestically leading powder electrostatic spraying technology which offers

critical advantages: Zero volatile organic compound (VOC) emissions eliminating atmospheric organic waste pollu- Case Liquid nitrogen fire truck

tion; No water consumption as a process material avoiding secondary solid waste treatment – conserving non-renew-

able water while preventing waste reprocessing; 100% recyclable powder materials reducing raw material waste and Developed in collaboration with Sinopec Institute of Safety Engineering Shanghai Grumman's liquid nitrogen fire truck utilizes

lowering production costs through closed-loop resource utilization. cutting-edge liquid nitrogen-foam mixed foaming technology positioning it as a global leader in firefighting innovation. Com-

pared to conventional foam fire trucks the liquid nitrogen fire trucks achieve more than double the firefighting efficiency while

In 2024 reducing foam concentrate consumption by over 40% (formulated as 6% foam concentrate + 94% water).the Company used an average of totaling effectively replacing approximately

1.4 tons of powder coating per month 17 tons for the year 51 tons of traditional paint

Green Products

Case 3RTS10&S12 face mask base material thermoplastic reformulation

The Company actively develops green products optimizing environmental performance throughout their lifecycle through innovative technol-

ogy R&D. This provides a green impetus for sustainable industry development.Handler transitioned from a thermosetting Sheet Molding Compound (SMC) front mask assembly to a thermoplastic PA66

mask moving from a non-recyclable thermoset material to a recyclable thermoplastic. This reformulation further reduced

waste generation during component production increasing the product’ s recyclability rate from 74% to 79% and achieving

compliance with the recyclability standard (> 75%).Case Aerial tethered UAV fire truck

In firefighting technology innovation the use of compressed air foam

system (CAFS) by aerial tethered UAV fire truck represents a significant

advancement in fire suppression media. Equipped with a highly inte-

grated and intelligent CAFS these fire trucks developed by Shanghai

Grumman enable rapid response and can be deployed in under 5 min-

utes. Compared to traditional methods they boost firefighting efficien-

cy by 3-5 times and reduce water consumption by over 50%.Shanghai Grumman’s Aerial Tethered UAV Fire Truck Testing

3RTS10 & S12 Face Mask Base Material Thermoplastic Reformulation

Case Compressed air foam fire truck

Indicators Unit 2024

Shanghai Grumman's compressed air foam fire truck utilizes an intelligent control system to monitor flow and pressure param-

eters in real time precisely regulating the foam-to-air mixture ratio. This technology achieves a 75% reduction in water usage Carbon emissions tCO?e 113

compared to conventional systems. Furthermore the system significantly enhances firefighting efficiency and reduces theconsumption of foam concentrate. When equipped with a multi-agent fire suppression system the fire truck can achieve “wa- Carbon emission intensity tCO?e/RMB million revenue 0.071terless firefighting” through the optimal mixing of dry powder and high-pressure nitrogen.Handler’s Carbon Emission Profile18 XUZHOU HANDLER SPECIAL VEHICLE CO. LTD. FOREWORD ENVIRONMENTAL SOCIAL GOVERNANCE APPENDICES 19

Environmental Compliance Management Environmental Risk Identification and Management

The Company places a high priority on environmental risk identification and management standardizing procedures for the identification

evaluation and control of environmental risks through the Environmental Factor Identification Evaluation and Control Procedures. Integrating

Environmental compliance management is a cornerstone of Handler's green development philosophy. Handler is committed to national envi- environmental risk assessments into all phases of project construction and operations and considering both our operational conditions and

ronmental policies strictly adhering to environmental protection laws regulations and related requirements. We continually improve our the characteristics of the surrounding environment we systematically identify environmental factors associated with our activities (e.g. waste-

environmental management system to ensure the effective implementation of safety and environmental protection policies. The Company water discharge energy consumption). This ensures adherence to environmental regulations and enables the development of preventative

proactively manages environmental risks at the source continuously enhances its environmental management capabilities and scientifically measures to mitigate environmental risks.coordinates environmental protection efforts across its operations. We are dedicated to fulfilling our environmental responsibilities.Environmental Governance Environmental Investments

Performance Highlights

Environmental Management Structure Substantial environmental funding is essential for the Company to effec-

tively implement its environmental initiatives. In recent years the Company

Handler's Integrated Management Department undertakes the core responsibilities of environmental management ensuring that production During the Reporting Period has actively undertaken several key environmental projects necessitating

lines rigorously adhere to the Company's environmental policies and regulations. This structure clarifies and standardizes environmental the Company’s total investment in environmental substantial capital investment to facilitate the successful construction of

protection responsibilities at all levels ensuring the efficient promotion and orderly implementation of environmental management work. environmental facilities procurement and installation of advanced equip-protection amounted to RMB

ment and R&D of related technologies. The progressive completion of

1534100 these high-investment projects has not only substantially enhanced our Environmental Management System environmental capabilities through improved infrastructure but has also

established a solid foundation for ongoing environmental operations.Handler strictly complies with laws and regulations such as the Environmental Protection Law of the People's Republic of China and the Law of the

People's Republic of China on Environmental Impact Assessment ensuring that all business activities and production processes fully meet local

environmental regulations and industry standards. We are steadfast in fulfilling our corporate environmental responsibilities. The Company Environmental Training

has formulated and implemented a series of management documents including the Environmental Factor Identification Evaluation and Control

Procedures and the Environmental and Occupational Health and Safety Performance Monitoring Control Procedures which specify detailed environ-

mental protection requirements and standards. These emphasize pollution control at the source promoting cleaner production and full-pro- Handler prioritizes enhancing employees’ environmental awareness and practical skills and continuously conducts systematic environmental

cess pollution control. In addition the Company has established an environmental protection target accountability system and regularly training to reinforce their theoretical knowledge build professional competence in environmental protection and integrate environmental

conducts environmental supervision and assessments to ensure the effective implementation and continuous improvement of environmental awareness into the corporate culture.measures.During the Reporting Period the Company sponsored designated personnel to participate in over ten environmental knowledge training

sessions organized by local governments. In addition we conducted two internal environmental training sessions for 60 participants covering

Environmental Management System Certification departments and teams involved in hazardous waste generation such as the Painting Workshop and FRP Workshop with each session lasting

eight hours. Through this training employees improve their ability to effectively minimize hazardous waste generation in their daily work and

Handler is committed to advancing the certification of its environmental management implement appropriate handling procedures.system to ensure compliance and efficient operation guaranteeing that business activi-

ties meet relevant environmental standards. As of the end of the Reporting Period the

Company has obtained the ISO 14001 Environmental Management System Certification.Handler’s ISO 14001 Environmental

Management System Certification

The Company is actively promoting the creation of a “Green Factory” as a key initiative to

implement its sustainability strategy. To this end we have developed a comprehensive

and systematic green factory training plan to enhance all employees’ understanding and

practical capabilities regarding green manufacturing concepts. Training programs

include in-depth interpretations of green development policies familiarizing employees

with national and local guidelines regulations and incentives in this area. This training

lays a robust foundation for the construction of our Green Factory and supports the

Company’s steady progress toward sustainable development.Handler’s “Green Factory” Creation Training

Environmental Protection Training20 XUZHOU HANDLER SPECIAL VEHICLE CO. LTD. FOREWORD ENVIRONMENTAL SOCIAL GOVERNANCE APPENDICES 21

Pollution Prevention and

Ecological Protection

Case Paint-to-powder Conversion Emission Reduction Project

Handler views the management of pollutant emissions as a critical responsibility upholding a philosophy of ecological protection and adhering To reduce VOC emissions the Company actively promotes process design optimization aiming for both reduction and substitu-

strictly to national laws regulations and emission standards to rigorously control exhaust gases wastewater and waste. The Company continu- tion of traditional materials. In component painting powder coatings have replaced traditional paints with a powder recycling

ously optimizes its pollution prevention and management mechanisms promotes comprehensive governance of waste gas wastewater and rate exceeding 90%. This significantly reduces VOC emissions and minimizes hazardous waste generation.solid waste enhances environmental protection measures and strives to achieve green production and sustainable development.Waste Gas Emission Reduction

Handler strictly adheres to laws and regulations such as the Atmospheric Pollution Prevention and Control Law of the People's Republic of China the

Integrated Emission Standard of Air Pollutants (GB16297-1996) and the Standard for Fugitive Emission of Volatile Organic Compounds (GB37822-2019).The Company has also formulated internal management systems such as the Atmospheric Pollution Management Regulations which define

requirements for pollution prevention equipment management VOC governance and pollutant monitoring.Before Improvement After Improvement

Waste Gas Detection System

Handler actively collaborates with third-party online emission monitoring service

providers to ensure the proper and effective daily testing of exhaust gas emissions

and to maintain the stable operation of online monitoring equipment. This ensures

that emission data complies with all regulatory standards.Handler Continuous Emission Monitoring System Case Electrophoretic Coating Conversion Project for Cargo Compartment Skin Panels

Waste Gas Emission Reduction Measures (CEMS) for Atmospheric Pollutants

The primary air pollutants generated during the Company’s production processes include sulfur dioxide (SO?) nitrogen oxides (NOx) volatile Handler has upgraded the coating process for cargo compartment skin panels transitioning from a traditional spray-painting

organic compounds (VOCs) and particulate matter (smoke and dust). The Company continuously strengthens its waste gas treatment efforts method to electrophoretic coating. The original process involved degreasing oil removal and epoxy primer spraying which

to reduce emissions from production operations. By deploying standardized waste gas collection and treatment equipment implementing generated significant VOC emissions and paint waste. Now the Company utilizes pre-coated electrophoretically treated

comprehensive monitoring plans and adopting advanced emission control technologies we achieve comprehensive control over waste gas substrates significantly reducing the need for epoxy primer spraying and eliminating degreasing and polishing of bare metal

emissions and enhance overall treatment efficiency. sheets thereby resulting in a substantial decrease in VOC emissions.Before Improvement After Improvement

Painting Workshop Equipped with Centralized Welding Fume

VOCs Collection and Treatment Systems Collection and Treatment Equipment22 XUZHOU HANDLER SPECIAL VEHICLE CO. LTD. FOREWORD ENVIRONMENTAL SOCIAL GOVERNANCE APPENDICES 23

Indicators Unit 2024

Waste Management

Nitrogen oxides (NOx) Ton 0.58 The Company strictly adheres to laws and regulations such as the Law of the People’s Republic of China on the Prevention and Control of Environmen-

tal Pollution by Solid Waste and the Standard for Pollution Control on Hazardous Waste Storage (GB 18597-2023). Furthermore we have established

Sulfur dioxide (SO ) Ton 0.144 the Waste Classification Management Regulations to implement classified management of solid waste and standardize disposal procedures. The 2

Company establishes a target management system through institutional development source reduction classified storage resource recycling

Particulate matter Ton 0.324 environmentally sound disposal and public awareness campaigns to promote the implementation of improvement measures.Volatile organic compounds (VOCs) Ton 0.237

Recyclable solid waste Non-recyclable solid waste

Handler's Waste Gas Emission Profile Non-recyclable foam plastics kitchen waste

Scrap iron scrapped parts manufacturing waste etc. construction waste

Wastewater Treatment

The Engineering and Manufacturing Department is respon- The Engineering and Manufacturing Department is respon-

sible for collecting sorting and stockpiling scrap materials. sible for collection and transportation to designated waste

The Company strictly complies with laws and regulations such as the Water Pollution Prevention and Control Law of the People’s Republic of China These materials are periodically processed through mar- storage areas while the General Management Department

and the Integrated Wastewater Discharge Standard (GB8978-1996). Furthermore we have established the Wastewater Treatment Management ket-rate recycling partnerships with qualified contractors. coordinates with municipal sanitation authorities for envi-

Regulations to standardize the design of drainage and sewage facilities wastewater treatment equipment and wastewater discharge methods. ronmentally sound disposal.The Company’s wastewater primarily originates from domestic sewage generated within the facility with primary pollutants including chemical Hazardous waste

oxygen demand (COD) ammonia nitrogen (NH3-N) suspended solids (SS) and oil and grease.The waste-generating department is responsible for the collection classification

packaging labeling and proper documentation of hazardous waste. All materials

Waste paint buckets putty contain-

must be transported to the hazardous waste storage facility and registered in the

Drainage System Management ers waste putty paint sludge spent

waste management ledger. Both the waste-generating department and the Envi-

activated carbon paint-contaminat-

Handler adopts an eco-friendly principle in its plant drainage system design implementing a segregated storm sewer separation system. ronmental Health and Safety (EHS) Division shall maintain detailed operational ed waste waste mineral oil waste

Rainwater is directly discharged into the municipal storm drainage system through dedicated pipelines preventing mixing with sewage to records in compliance with hazardous waste management regulations. The EHS emulsion waste resin mixtures

reduce wastewater treatment plant (WWTP) loading and promoting rainwater recycling. In domestic wastewater management canteen effluent Division oversees the coordination with qualified disposal contractors to ensure

undergoes pre-treatment in an oil-water separator to remove oil and grease and suspended solids before being discharged into septic tanks environmentally sound treatment of hazardous waste.along with other domestic wastewater for biological treatment. Septic tanks utilize anaerobic microorganisms to decompose organic matter

effectively reducing pollutant concentrations. Finally the treated and compliant wastewater is conveyed to specialized wastewater treatment Handler’s Waste Classification and Management Measures Overview

plants for centralized processing. This drainage and wastewater treatment model ensures compliant effluent discharge effectively mitigating

adverse environmental impacts.Indicators Unit 2024

Indicators Unit 2024 Total hazardous waste generated Ton 119.42

Wastewater indicators Total hazardous waste disposed Ton 121.40

Total wastewater discharge Ton 11500 Hazardous waste discharge intensity Ton/RMB million revenue 0.075

Biochemical indicators for sewage Total non-hazardous waste generated Ton 976.70

Ammonia nitrogen Ton 0.18 Total non-hazardous waste disposed Ton 976.70

Chemical oxygen demand (COD) Ton 2.22 Non-hazardous waste discharge intensity Ton/RMB million revenue 0.614

Biochemical oxygen demand (BOD) Ton 1.1 Handler’s Waste Generation and Disposal Profile

Total phosphorus (TP) Ton 0.024 Ecological Protection

Suspended solids (SS) Ton 0.367

Handler recognizes ecological conservation as a core tenet of corporate sustainability. Through innovative practices and enhanced manage-

ment we are committed to implementing biodiversity protection measures promoting the conservation of biological diversity fostering the

Handler’s Biochemical Indicators for Wastewater and Sewage integration of green manufacturing and ecological protection and achieving harmonious coexistence between economic growth and the

natural environment.24 XUZHOU HANDLER SPECIAL VEHICLE CO. LTD. FOREWORD ENVIRONMENTAL SOCIAL GOVERNANCE APPENDICES 25

Resource Utilization Optimization Indicators Unit 2024

Gasoline Ton 17.25

Handler consistently implements the principles of resource optimization and the circular economy in its daily operations. By enhancing resource

Diesel Ton 224.40

utilization efficiency continuously improving energy and water management and actively exploring process innovation technological advance-

ments and management upgrades the Company strives to maximize resource efficiency minimize waste and enhance overall resource Natural gas Standard cubic meter 386934

productivity.Purchased electricity MWh 4035.59

Energy Management Total energy consumption tce 1105.14

Energy consumption intensity tce/RMB million revenue 0.694

Handler strictly adheres to laws and regulations such as the Energy Conservation Law of the People's Republic of China and the Measures for the

Administration of Energy Conservation of Major Energy-Consuming Entities. The Company has established and implemented the Rational Energy Use

Management System while consistently following the principle of integrating conservation with efficiency continuously strengthening its energy Handler’s Energy Consumption Profile

management framework and adopting multiple energy-saving measures to enhance resource efficiency.Water Management

Workshop lighting improvement Handler strictly complies with laws and regulations such as the Water Law of the People's Republic of China rationally allocates water resources

The installation of high-transmittance skylight systems on workshop rooftops optimizes natural daylight and optimizes water usage structures. The Company has formulated and implemented the Water Conservation Management System to strength-

utilization effectively reducing daytime artificial lighting energy consumption. en water management actively promote wastewater recycling treatment and reuse reduce water pollution and waste and effectively improve

Annual electricity savings: approximately 10000 kWh water resource utilization efficiency.Upholding the management philosophy of “water conservation rational use and efficient utilization” the Company adheres to the principles

of resource conservation and recycling. All water-related testing facilities are designed and constructed with a focus on circular reuse. Addition-

ally the Company actively carries out water conservation awareness campaigns to enhance employees’ water-saving awareness and eliminate

Air compressor retrofit water waste.The adoption of variable-frequency air compressors to replace existing fixed-frequency units enhances

compressed air supply efficiency while reducing overall electricity consumption.Monthly electricity savings: approximately 6000 kWh yearly electricity savings: 72000 kWh

Pneumatic pipeline inspection

Through production line inspection and rectification of identified leakage points compressed air

supply loss caused by leaks has been minimized thereby reducing the energy consumption of the air

compression system.Annual electricity savings: approximately 3000 kWh

Intelligent energy management

The Company will launch the construction of an Intelligent Energy Management Platform (IEMP) to monitor and

record real-time consumption data of water electricity and gas. By aggregating operational data the system

will generate comparative performance reports to identify optimization opportunities. Furthermore variable

frequency logic control (VFLC) mechanisms will be implemented to reduce energy consumption costs.The platform is expected to be completed in 2025 with projected annual energy savings reaching 10000 kWh.Handler’s Energy Optimization Management Measures26 XUZHOU HANDLER SPECIAL VEHICLE CO. LTD. FOREWORD ENVIRONMENTAL SOCIAL GOVERNANCE APPENDICES 27

Recycling

Handler rigorously implements circular economy principles across its operations including material management manufacturing packaging

and transportation. The Company's primary raw materials include steel aluminum electrical components and hydraulic parts. Production

Case Implementing reuse of recycled water in product testing areas processes encompass cutting bending welding and machining. Throughout the production process raw materials do not undergo chemical

changes. Consequently with the exception of a limited number of components like plastics and sliders the vast majority of parts can be recycled

Handler has established specialized facilities including drainage vehicle test pools and rain simulation test benches in its product after reaching the end of their initial use. Furthermore the Company has developed the Guidelines for Product Disassembly Recycling and Reuse

testing zones. The water utilized during the commissioning process is filtered through the circulating water reservoir for reuse to standardize material recycling practices.with periodic make-up water replenishment to the reservoir. In 2024 a total of 396 van trucks were subjected to 30-minute water

spray tests per testing requirements. Based on pump flow rate calculations the average water consumption per vehicle was 67.5

cubic meters resulting in a theoretical annual water usage of 16730 tons. Accounting for a 10% loss rate the annual water

savings amount to approximately 15093 tons.Case Recycling process for tooling

Brackets used as carriers for transporting Type-A outriggers

are widely used both internally and externally. To ensure the

safe transport of Type-A outriggers the Company has

implemented a closed-loop tooling recycling process. Products

are stored and transported through the use of material codes

and QR codes which are delivered directly to assembly sites

upon arrival. After components are unloaded the shelves are

re-stacked collected and reused for subsequent deliveries.This approach not only avoids the waste of stacking space but

Rain Simulation Test Bench Drainage Vehicle Water Pump Testing Bench also improves the efficiency of material turnover.Recycling of Brackets in Production Processes

Indicators Unit 2024

Water consumption Ton 45683

Circulating water consumption Ton 16730

Case Recycling of aerial work vehicle superstructures

Water consumption intensity Ton/RMB million revenue 28.71

Handler’s aerial work vehicle superstructures are stored and

Annual water conservation rate % 9.58

transported on reusable shelves. Upon arrival the goods are

directly delivered to the workshop. After disassembling the

superstructures the racks are returned for reuse in

subsequent deliveries effectively reducing tooling fabrication

costs.Recycling of Aerial Work Vehicle Superstructures28 XUZHOU HANDLER SPECIAL VEHICLE CO. LTD. FOREWORD ENVIRONMENTAL SOCIAL GOVERNANCE APPENDICES 29

Social

Uniting Stakeholders for

Collective Progress

Rural Revitalization and Social Contributions 30

Innovation-Driven Development and Technology Ethics 31

Supply Chain Management 38

Product Liability 39

Data Security and Privacy Protection 42

Employee Rights and Interests Protection 43

SDGs addressed in this chapter30 XUZHOU HANDLER SPECIAL VEHICLE CO. LTD. FOREWORD ENVIRONMENTAL SOCIAL GOVERNANCE APPENDICES 31

Rural Revitalization and Innovation-Driven Development

Social Contributions and Technology Ethics

Handler actively aligns with laws such as the Law of the People's Republic of China on the Promotion of Revitalization of Rural Areas and the Law of Handler continues to prioritize innovation as the core engine for high-quality development adhering to a “technology-driven differentiation”

the People's Republic of China on Donations for Public Welfare fulfilling its social responsibilities as a listed company in the rural revitalization strategy and deeply integrating technology ethics into research and development product iteration and industrial upgrading. By fostering

strategy through targeted emergency equipment donations and a nationwide emergency service network. In 2024 the Company's rural new quality productive forces through innovative momentum the Company drives the sustainable development of the industry with a strong

revitalization efforts reached 69 grassroots areas across 25 provinces and municipalities with a focus on strengthening rural public safety and sense of responsibility. In 2024 the Company achieved significant breakthroughs in high-end core technology research by deepening indus-

infrastructure resilience. try-academia-research collaboration strengthening its intellectual property (IP) portfolio and optimizing talent development mechanisms.Furthermore we integrated ethical considerations such as safety reliability and social value throughout the entire value chain from

Targeted Donation Mechanism research and development to production and service delivery ensuring an organic alignment between technological innovation and societal

benefits.To address the shortage of fire equipment in remote regions the Company established a closed-loop mechanism of “Needs Identification -Targeted Donation - Efficacy Verification” specifically addressing gaps in rural emergency equipment. Innovation-Driven Development

In July 2024 Shanghai Grumman a subsidiary of Handler donated a PM180 foam fire truck valued at RMB1.1 million to the Leibo County Fire As a national high-tech enterprise Handler actively implements national industrial and economic policies with a clear development strategy.and Rescue Brigade in Sichuan Province. This donation enhanced local emergency firefighting capabilities safeguarded lives and property The Company adheres to a business model that prioritizes “R&D innovation as the cornerstone differentiated design and customization asand significantly strengthened the county’s fire emergency response capacity. the core flexible manufacturing as the support and refined services as the guarantee” focusing on the development of specialized high-end

intelligent equipment manufacturing. Driven by both solidifying its domestic market position and expanding its international presence we are

Nationwide Emergency Service Network deeply committed to the intelligent equipment manufacturing sectors of special vehicles specialized robots and the military industry.The Company has established a service network integrating preventive maintenance and emergency response capabilities. Its emergency Special Vehicle Sector

power generation vehicles bypass operation vehicles and other specialized products have been widely deployed in numerous emergency Product portfolio offers diverse structural types comprehensive categories and high-alti-

incidents and preventive power supply operations participating in various emergency rescue missions. tude operational capabilities

A state-designated enterprise specializing in the R&D production and sales of fire trucks

In 2024 the Company achieved the following: and other special-purpose vehicles

Preventive maintenance

Specialized Robotics Sector

Completed achieving A pioneer in specialized robotics development in China leveraging core technologies and a

621 100 Handler distinct first-mover advantage power %

equipment inspections across 6 provinces coverage of key support areas

including Gansu and Jiangxi

Emergency response Military Industry Sector

All products are maintained at industry-leading standards within China

Executed

127 specialized power protection missions Handler focuses on three core business areas to build a differentiated innovation ecosystem.

including Emergency drainage equipment support for flood relief efforts with The Company strictly adheres to laws and regulations such as the Law of the People's Republic of China on Scientific and Technological Progress

the Guilin Power Supply Company (Guangxi Province); Emergency power vehi- and the "technology-driven differentiation" development strategy. We have achieved certification for our R&D management system in accor-

cle support for flood drainage in Tuanzhou Township Huarong County (Hunan dance with DB32/T2771-2015 Enterprise R & D Management System Requirements. Besides we have also established design and development

Province); Power vehicle support for peak load reduction in Chongqing Munici- control procedures to improve the full-chain innovative management system from basic research to application development and commer-

pality; On-site emergency power generation vehicle support for disaster relief cialization of achievements. The Company has implemented a multi-dimensional collaborative management mechanism covering technology

during Super Typhoon Yagi in Hainan Province. R&D product design and customer service. By emphasizing both technological innovation and ethical constraints we enhance product core

competitiveness and industry leadership while ensuring compliance and a commitment to social value in all R&D activities.32 XUZHOU HANDLER SPECIAL VEHICLE CO. LTD. FOREWORD ENVIRONMENTAL SOCIAL GOVERNANCE APPENDICES 33

R&D MODEL

Handler's emergency drainage vehicle recognized by MIIT as a case for application and promotion

Case

of safety and emergency equipment

R&D-driven innovation as the foundation Differentiated design and customization as the core

Handler has developed a series of emergency drainage and rescue equipment solutions

significantly increasing drainage capacity from 500 cubic meters per hour to 6000 cubic meters

per hour. This innovation provides comprehensive solutions for emergency flood control in a

Management Innovation Product Innovation Differentiated Design Customized Development variety of urban environments including roads underpass tunnels and underground spaces.Notably Handler's emergency drainage vehicle was featured in the “2024 Typical Cases forApplication and Promotion of Safety and Emergency Equipment” published by the Ministry of

Industry and Information Technology (MIIT).Opera-

Organiza- Opera- Control Manufac- Integrat-

tional Structural Organi- Strategic Demand

tional tional Tech- turing Thematic Customer ed

Mecha- Technology zational Safe- Explora-

Structure Workflow nology Processes Research Response Customi-

nisms Support guards tion zation

Performance Highlights

Handler’s R&D Model

During the Reporting Period

the Company’s R&D expenditure totaled RMB representing

64870200 4.08 % of its operating revenue

As of the end of the Reporting Period

the Company employed representing

120 R&D personnel 15.06 % of its total workforce

This included research-grade senior engineers and

Handler’s Certification of Compliance with DB32/T2771-2015 Handler was re-verified as a Jiangsu Provincial 64 mid-to-senior engineers 9 33 senior engineers

Enterprise R & D Management System Requirements Specialized and Sophisticated SME in 2024

5 leaders 5 1 Xuzhou

for Jiangsu Provincial “333 Project” discipline Xuzhou Municipal Outstanding Talents Municipal Distinguished Expert

Case Handler’s first 64-meter ultra-high aerial work vehicle redefined domestic ultra-aerial equipment benchmarks 1 Jiangsu Provincial First-Batch 1 member of the National Standardization

Industry Professor Committee for Aerial Work Platforms

At the bauma CHINA 2024 Handler launched China’s first 64-meter ultra-high aerial work vehicle integrating intelligent technol- and

ogies such as obstacle crossing environmental recognition and intelligent memory. It is the domestic product with the highest

technical content and a comprehensive suite of features filling a significant gap in the domestic market for ultra-aerial work 2 members of the Fire Protection Special Committee of the National Standardization Committee

equipment. This product not only improves the operational accuracy of equipment but also adapts to aerial environments under

challenging conditions providing customers with safe and efficient work tools. It promotes industry advancement through The R&D team's expertise spans a wide range of disciplines including vehicle engineering automotive technology construction

intelligence and efficiency while fulfilling social responsibilities for safety emergency response and sustainable development. machinery mechanical design and manufacturing hydraulic transmission and control automation computer science information

engineering materials science and engineering mechanics. This comprehensive and complementary knowledge base enables the

development of complex mission-critical projects with world-leading technological capabilities in the industry.34 XUZHOU HANDLER SPECIAL VEHICLE CO. LTD. FOREWORD ENVIRONMENTAL SOCIAL GOVERNANCE APPENDICES 35

Techno-Ethical Collaborative Governance Intellectual Property Management

ree-De”: A Th imensi

Handler has established an innovative decision-making system guided by a ultur onC a- ll Su Handler has established a dedicated IP strategy integrating intellectual property into its risk management framework. Through systematic a pp

“technology-driven differentiation” strategy deeply embedding the api

t o

C rt identification evaluation and corresponding control measures—supported by comprehensive and rigorous IP analytics—it mitigates prior-art

principle of “doing and forbearing wisely”. By adhering to technology ethics risks and prevents infringement liabilities.in R&D product iteration and industrial upgrading we harness innovation Strategic

to cultivate new quality productive forces and demonstrate industry leader- Guidance Top-Level The Company has the Intellectual Property Management System (IPMS) certification establishing a forward-looking efficient and mature R&D

ship through responsible practices for sustainable development. Design mechanism with a comprehensive innovation system. This has become a core driver for high-quality development. As a leading or primary

participant in drafting national and industry standards for aerial work platforms and vehicles we consistently pioneer advancements in

Through an innovation-driven and techno-ethical collaborative governance Process Governance lightweight design extended reach intelligent systems and insulated live-line working technologies.Dynamic Controlmechanism centered on “strategic guidance process governance and valuetransformation” and supported by “talent capital and culture” Handler has

achieved breakthroughs in core high-end technology R&D and import Value Transformation Our IP achievements are outstanding with patent filings and grants reaching record highs:

substitution. Additionally the Company integrates ethical consider- Industrial Empowerment

ations—including safety reliability and social value—throughout the entire

R&D production and service value chain ensuring that innovation aligns Handler’s Innovation-Driven and Techno-Ethical

with ethical principles of security and societal benefit. Collaborative Governance Mechanism

Strategic guidance (top-level design) Value transformation (industrial empowerment)

Establishing an innovation decision-making system Adhering to a product development strategy of

under the “technology-led differentiation” strategy customer extension and technology extension we

fostering an industry-academia-research collaborative establish an agile innovation model where market

ecosystem strengthening IP portfolio management demand feeds back into R&D. By co-building joint labs

and optimizing talent recruitment and development with key clients to deeply analyze pain points in sectors Handler’s Invention Patent Certificates (Selected)

mechanisms. This consolidates R&D foundations such as power and emergency response we continu-

achieves breakthroughs in intelligent and digital ously expand our product portfolio through proactive

technologies advances domestic substitution of market exploration. This enables us to deliver innova- Performance Highlights

high-end core components and elevates product tive integrated solutions that maximize customer

differentiation industry leadership and societal value. satisfaction while driving the advancement of

emergency response industries.As of the end of the Reporting Period

the Company has been awarded and

2 National Science and Technology 5 Provincial/Ministerial Science and

Progress Awards (Second Class) Technology Progress Awards

Process governance (dynamic control) Support system

with an active IP portfolio comprising:

Deepening product and technological innovation with Implementing a three-dimensional framework of

a market demand orientation precisely identifying talent-capital-culture synergy. We recruit and cultivate 333 valid patents (126 inventions 191 utility models 16 designs)

differentiated needs in sectors such as leasing and top technical talent while retaining them to establish a

power through industry-specific research initiatives talent pipeline strengthen financial support through

and enabling rapid market response via an integrated policies such as additional tax deductions for R&D

“R&D-Transformation-Application” innovation system. expenses and foster a culture of responsibility via

initiatives such as Quality Month and ethics training 40 7

programs. This establishes a sustainable development registered software copyrights PCT-authorized international patents

paradigm for strategic emerging industries.“Talent-ste

m

Sy36 XUZHOU HANDLER SPECIAL VEHICLE CO. LTD. FOREWORD ENVIRONMENTAL SOCIAL GOVERNANCE APPENDICES 37

Sharing Development Experience

Handler actively engages in industry associations to advocate for sector development while sharing its experience and achievements at major

Case Establishing a tiered IP training system to strengthen innovation protection capabilities industry events to foster collective progress. Key participation in 2024 included:

In 2024 the Company developed a tiered intellectual property training system delivering specialized IP programs for R&D

marketing and other key functions. With over 80 participants trained the initiative significantly enhanced the IP competency of

core employees. This system has effectively reinforced the implementation of the Company's technology-driven differentiation

strategy while substantially strengthening innovation protection capabilities. 2024.4

Wuhan International Emergency Safety Expo

Collaborative Advancement with Industry Partners

The Company is committed to fostering an open and synergistic industrial ecosystem. By actively engaging in industry affairs standard system

development and technological paradigm evolution we have institutionalized corporate practices into baseline frameworks for sustainable

industry development driving consensus on responsibility and coordinated actions across the value chain.

2024.12

In recent years the Company has accelerated its strategic presence in the emergency response sector. In December 2024 the China Safety The Third Member Congress of the China Safety Industry

Industry Association convened its 3rd Member Congress in Xuzhou City Jiangsu Province where Handler was elected as a Vice Chairman Unit Association and High-Quality Development Seminar on

of the newly appointed leadership.

2024.6 Safety and Emergency Industry

Standardizing Industry Practices Guangzhou International Emergency Safety Expo

Through active participation in drafting national industry and consortium standards and technical specifications the Company shares its

expertise to establish industry benchmarks and drive technological advancement.

2024.11

2024.11 The Fourth Session of the Fourth Member Congress of

the Decoration and Aerial Work Machinery Branch of

bauma CHINA (Shanghai)

China Construction Machinery Association (CCMA) and

the 2024 Annual Conference

Handler participated in the revision of the Mobile Elevating Handler participated in drafting the Mobile Elevating Work

Work Platforms—Design Calculations Safety Requirements and Platforms—Operator's Controls—Actuation Displacement

Test Methods (GB/T 25849-2024) Location and Method of Operation (GB/T 43601-2024)38 XUZHOU HANDLER SPECIAL VEHICLE CO. LTD. FOREWORD ENVIRONMENTAL SOCIAL GOVERNANCE APPENDICES 39

Supply Chain Management Product Liability

Handler strategically prioritizes supply chain management as a cornerstone of corporate development recognizing that a high-performing In the aerial work vehicle sector Handler has pioneered a unique business model grounded in "R&D innovation as the cornerstone differentiat-

supply chain is fundamental to its sustainable growth. Guided by a win-win philosophy we maintain equitable partnerships with suppliers of all ed design and customization as the core flexible manufacturing as the support and refined services as the guarantee". Committed to the

scales with particular emphasis on empowering SMEs. Our approach focuses on: Establishing long-term stable collaborations streamlining intelligent equipment manufacturing sector the Company has established itself as an industry expert and strives to lead as a pioneer in the field.procurement processes through digital transformation implementing rigorous supplier evaluation and management systems and ensuring The Company upholds integrity in all operations positioning itself as an architect of societal well-being. While pursuing professional excellence

reliable and efficient raw material supply. Handler actively conducts technical exchanges and collaborates with suppliers. Through initiatives we remain dedicated to generating social value through ethical business practices achieving sustainable synergy between corporate growth

such as organizing Supplier Annual Conferences the Company empowers suppliers to enhance production capabilities collaboratively building and societal advancement.a more competitive supply chain system to provide a solid foundation for the enterprise’s high-quality development.In 2024 the Company leveraged external expertise to vigorously advance supply chain management consulting. By addressing gaps in market- Product Quality Management

ing plan accuracy improvement optimizing planning computation models enhancing production BOM precision resolving component quality

issues promptly strengthening supplier on-time delivery assessments and improving supplier management capabilities we systematically The Company strictly complies with the Product Quality Law of the People's Republic of China and other relevant laws regulations and provisions.revised internal supply chain processes. This initiative focused on proactively identifying and resolving upstream challenges implementing Upholding the quality policy of “Service—Timely and Effective Pursuit—Customer Satisfaction” we continuously improve our quality manage-

design finalization cycle time improvement safety stock management and vendor-managed inventory (VMI). Additionally we intensified ment system and mechanisms based on the Quality Management Systems (GB/T 19001-2016) and the Implementation Rules for Compulsory

performance evaluations for suppliers and procurement personnel achieving significant progress in assembly complete kit rates. Product Certification – Motor Vehicles (CNCA-C11-01:2020). This comprehensive framework covers all stages including raw material procure-

ment production control responsible sales and R&D and after-sales service establishing a company-wide all-encompassing and end-to-end

quality management model. Through this systematic approach we consistently enhance product and service quality.Quality Implemen-

tation

Objectives Product Delivery Satisfaction Target Standards Customer Complaint Resolution Rate

98%100%

Customer Service Satisfaction Rate Target Customer Service Satisfaction Rate

98%≥98%

Handler’s Quality Management Objectives and Implementation Standards40 XUZHOU HANDLER SPECIAL VEHICLE CO. LTD. FOREWORD ENVIRONMENTAL SOCIAL GOVERNANCE APPENDICES 41

Quality Management System Customer Rights and Services

Since its inception the Company has introduced quality management system standards. By rigorously adhering to third-party certified system Handler regards customer rights protection and service innovation as core drivers of sustainable development. Upholding the business philoso-

standards the Company has refined its quality management organizational structure and established the Quality Management System Control phy of “Committed to Customer Success” the Company adheres to a product development strategy centered on “customer and technologyProcedures. We continuously enhance our end-to-end quality management system covering R&D production and service. By defining measur- extension”. This approach ensures products and services closely align with customer needs while continuously upgrading intelligent service

able quality benchmarks for design manufacturing and inspection Handler achieves full-process quality control from raw material procure- capabilities to create additional value and cultivate new market opportunities. We strive to balance economic prosperity social progress and

ment to after-sales service consistently maintaining industry-leading product pass rates. environmental stewardship to foster harmonious and sustainable growth.

2024 Quality Enhancement Initiatives

To safeguard customer equity the Company strictly adheres to legal and ethical business practices establishing a long-term strategic partner-

In 2024 the Company innovatively established a tripartite mechanism – integrating digital empowerment lean operations and specialized ship ecosystem with suppliers and customers. Leveraging a flexible model of “Customized Production + Predictive Mass Production” we ensure

initiatives – within its annual quality management enhancement efforts. This framework has transformed quality management practices personalized delivery while enhancing resource utilization efficiency achieving industry-leading reductions in customer lead times. Additionally

shifting from reactive responses to proactive prevention and evolving from localized optimization to system-wide enhancement. It has not only the Company integrates social responsibility into service practices conducting regular customer training and safety supervision to ensure

significantly improved product reliability and customer satisfaction but also cultivated a quality-centric sustainable competitive advantage for products comply with national safety standards throughout their life cycles. Intelligent monitoring technologies are employed to mitigate

the enterprise. equipment operation and maintenance risks ensuring the harmonious advancement of customer rights protection and sustainable develop-

ment goals.Digital Empowerment Lean Operations Specialized Initiatives After-sales Services

The Company has proactively established a “15-minute response + 5-hour onsite arrival” itinerant after-sales service mechanism. Leveraging a

Upgrade the ERP system and Deepen the application of lean I m p l e m e n t t a r g e t e d q u a l i t y nationwide technical service network and digital coordination platform we provide customers with sustained technical support and fault

implement the MOM project to management principles establish enhancement programs for key resolution beyond standard warranty periods delivering on the commitment of “zero-distance service 24/7 protection”.enhance the integration of IT and incentive programs to recognize products using the insulated vehi-

industrial processes in manufac- and reward employee-driven quali- c le pro ject as a model . Form Under the direct management of the Technical Service Center the Company operates eight dedicated service centers in Xuzhou Shijiazhuang

turing thereby advancing smart ty improvements and foster a cross-departmental quality task Guangzhou Xi'an Nanjing Nanchang Quanzhou and Kunming complemented by 12 mobile service stations. This multi-tiered service network

manufacturing capabilities. company-wide cul ture where forces to strengthen full-lifecycle of 20 strategically located nodes ensures nationwide coverage with a guaranteed 5-hour onsite arrival window for after-sales service.“every employee champions quali- quality control spanning fromty”. product design to after-sales

service. Headquarters Service

Hotline WeChat Video

Experts Specialists

15-MINUTE 5-HOUR

Handler’s 2024 Quality Management Enhancement Mechanism RESPONSE

Handler Service Emergency

ONSITE ARRIVAL

operation Service Technical Center

Official Account

2025 Quality Enhancement Directions Video Resources

Stations

The Company firmly adheres to its three-year strategic development plan continuously implementing the “technology-driven differentiation” Handler’s “15-Minute Response + 5-Hour Onsite Arrival” Proactive Itinerant After-Sales Service Mechanism

strategy. With technological innovation as the engine and targeted quality enhancement initiatives as the focal point it integrates strategic

objectives with problem-solving approaches. By systematically advancing five key areas—technological innovation market expansion quality Responsible Marketing

upgrading intelligent operations and service optimization—the Company consistently enhances product competitiveness and value creation

capabilities injecting robust impetus into sustainable development. The Company has established a comprehensive responsible marketing management system that spans the entire marketing process. This

system ensures the compliance and transparency of all marketing activities through a framework of institutional controls process management

Specialized

Smart Operations Enhance and technology empowerment in strict accordance with laws and regulations such as the Advertising Law of the People’s Republic of China and the Increase R&D Strategic Market Quality

investment Positioning Enhancement Transformation service value Anti-Unfair Competition Law of the People’s Republic of China and other relevant regulatory requirements.Program

Policy Constraints Process Governance Technology Empowerment

The Company's policies and proce- Implement a Three-Tier Review and Leverage AI platforms to automatically

Concentrate on break- Deepen key market Focus on resolving Conduct supply chain Strengthened After- dures strictly prohibit false advertising Approval Process: Idea Generation – detect and flag non-compliant terms

throughs in core tech- expansion and busi- c r i t i ca l i ssues and management consul- market Services and exaggerated claims and fraudulent Copywriting – Release. (e.g. superlatives like “best” “first” ornologies and bolster- ness structure optimi- improving van prod- tations and drive the Business Model Inno- bidding activities. Establ ish standardized customer exaggerated claims such as “100%ing R&D capabilities. zation. uct quality. implementat ion of vation. All product features and data must be profile management and contract effective” ). Implement trigger mecha-

smart manufacturing substantiated by official test reports information access protocols. n isms for immediate removal of

projects. from accredited authorities. c o n t e n t c o n t a i n i n g p r o h i b i t e d

keywords ensuring real-time compli-

ance.Handler’s 2025 Quality Enhancement Directions

Handler’s Responsible Marketing Management42 XUZHOU HANDLER SPECIAL VEHICLE CO. LTD. FOREWORD ENVIRONMENTAL SOCIAL GOVERNANCE APPENDICES 43

Customer Satisfaction Enhancement Employee Rights and Interests Protection

The Company adheres to the “Customer-First” service concept continuously improving service response speed and quality through three key

initiatives: building a nationwide service network strengthening professional team construction and promoting digital service transformation.A high-caliber talent pool serves as the cornerstone for Handler to sustain rapid growth and maintain its core competitiveness. Handler strictly

Service network Service capability Service digital complies with labor and social security laws and regulations including the Labor Law of the People's Republic of China the Labor Contract Law of

development enhancement transformation the People's Republic of China and the Social Insurance Law of the People’s Republic of China. Guided by a people-centric philosophy the Company

advocates the style of "honest man and earnest work". We are dedicated to upholding employee rights and interests promoting equitable

The Company has optimized its nation- The Company has innovatively imple- The Company has developed a smart employment practices and ensuring transparent career advancement opportunities for all employees fostering a fair environment for profes-

wide network of agents and mainte- mented a “One-on-One Mentorship” APP offering features such as real-time sional development. Furthermore we actively support employee well-being through a variety of initiatives designed to enhance job satisfaction

nance hubs launching industry-wide training program complemented by a parts inventory inquiry self-diagnosis and promote a harmonious balance between corporate objectives and individual aspirations ultimately maximizing both employee and organi-

service outreach campaigns such as technician skill certification system and and automated troubleshooting lead- zational value.“Service Tour for the Leasing Industry”. regular technical workshops to culti- ing to significant improvements in

By offering value-added services like vate a high-caliber service team. service efficiency and customer experi-

complimentary filter replacements and ence. Employee Rights and Interests and Well-being

wear-and-tear parts customer experi-

ence has been significantly enhanced. Handler prioritizes the protection of employee rights and interests by maintaining lawful and compliant employment practices and standardized

labor policies. The Company champions equal employment opportunities cultivating a diverse workforce and fostering a work environment free

from discrimination retaliation harassment and any form of abuse. Handler strictly prohibits child labor and rejects all forms of forced or

compulsory labor. The Company diligently implements regulations concerning maternity and lactation leave safeguarding the rights of female

Performance Highlights

employees during pregnancy and the postpartum period.In 2024 The Company consistently optimizes its workforce composition to ensure a balanced representation of gender age and educational

background thereby cultivating a truly diverse and inclusive workplace. As of the end of the Reporting Period the Company employed a total of

the Company’s service satisfaction rate reached 797 individuals.

99.09 % hitting a record high and fully demonstrating the outstanding efficacy of its service system.

12%15%16%

Data Security and Privacy Protection Employee Employee Structure Structure

by Gender by Age

Under 30

Handler is committed to upholding data security and privacy and strictly adheres to laws and regulations such as the Cybersecurity Law of the 88% Male 69% 30-50

People's Republic of China the Personal Information Protection Law of the People's Republic of China and the Data Security Law of the People's Female Above 50

Republic of China as well as other relevant regulatory requirements. In alignment with its information security management system the Com-

pany has established institutional frameworks that govern the entire data lifecycle. These frameworks standardize operational criteria and

procedures for critical stages including data collection storage transmission and destruction. Furthermore the Company employs technical

safeguards such as data masking and encrypted transmission to comprehensively implement a robust protection system ensuring informa-

tion security data integrity and privacy.

2.63%12.05%3.76%47.05%29.49%

Performance Highlights

14.81% Employee Employee

Professional Production staff Educational

Composition Sales staff Attainment Master's degree or higher

In 2024 Structure Structure

Technical staff Bachelor's degree

the Company experienced and 23.46% 37.39% 29.36%Administrative staff Junior college

0 Finance staff Other data security incidents 0 customer privacy breaches.44 XUZHOU HANDLER SPECIAL VEHICLE CO. LTD. FOREWORD ENVIRONMENTAL SOCIAL GOVERNANCE APPENDICES 45

Employee Rights and Interests Protection In August 2023 while formulating its three-year strategic development plan Handler launched a new restricted stock incentive plan granting

20.8 million restricted shares to 80 eligible participants. On September 20 2024 Handler’s Sixth Board of Directors and Sixth Board of Supervi-

In 2024 Handler continued to strengthen team and talent development establishing robust mechanisms for talent cultivation recruitment and sors convened their respective fifth meetings to review and approve the Proposal on the Fulfillment of Conditions for the First Vesting Period of the

internal mobility. The Company has implemented a competitive total rewards system that balances short-term incentives with long-term value Initial Grant of the 2023 Restricted Stock Incentive Plan. The vesting registration was completed on October 16 2024 granting a total of 6.656

creation complemented by a performance management and incentive framework designed to continuously optimize its human capital. million shares to 80 employees. Furthermore on August 13 2024 Handler granted 4.16 million Type II restricted shares to 23 eligible

participants at an issue price of RMB1.93 per share. By implementing equity incentive plans Handler enhances its long-term incentive mecha-

nisms attracting and retaining top talent fully engaging its workforce and enabling employees to share in the benefits of the Company's

Compensation Management Framework

Performance Management System sustainable growth. This effectively aligns the interests of shareholders the Company and core team members focusing all stakeholders on the

Ensure fair and competitive compensation

Align performance with compensation through long-term success of Handler and the achievement of its strategic and operational objectives.through value assessment and market bench- Foster an goal setting and feedback mechanisms.marking. employee rights

protection

mechanism Employee Benefits Guarantee

that balances

Position Value Evaluation equity Incentive mechanism Handler is dedicated to providing a diverse and comprehensive employee benefits program that addresses the economic material and and incentives

Activate organizational vitality through differ- health-related needs of its workforce. Handler’s well-structured benefits program not only enhances employee satisfaction and organizational Develop scientific position grading and salary

entiated incentive programs. performance but also fosters long-term sustainable human capital thereby underscoring its role as a socially responsible corporate leader.curves using the IPE4 tools.Legal Rights Quality of Life Humanistic Care

Handler’s Employee Rights and Interests Protection System Protection Dimension Assurance Dimension Dimension

Establish statutory social security Address employee housing Establish an Employee Health

system (Six Insurances and Two needs through innovative solu- Management Program with

Funds). tions including interest-free annual physical exams union

Compensation management system home loans and housing subsi- activities and holiday allowanc-

dies. es.The Company employs a “Value Assessment – Compensation Benchmarking – Dynamic Adjustment” approach to

Comprehensive Support System

ensure employees receive fair competitive and performance-based compensation.

(Catering & Transportation)

Handler’s Employee Benefits System

Position value evaluation

The Company utilizes the innovative IPE4 methodology combined with regression analysis to construct a scientific

job architecture and compensation structure. This ensures internal equity across diverse roles including manage-

ment technology production and sales while maintaining external competitiveness through regular industry

compensation surveys.Performance management system and incentive mechanismHandler has established a robust full-cycle performance management system based on “Goal Setting – ProcessManagement – Performance Feedback”. This system promotes a high-performance culture by deeply integrating

departmental and individual performance indicators within a structured management framework. The framework

incorporates an annual cycle of objective setting mid-year progress reviews and comprehensive year-end evalua-

tions enabling a clear and direct linkage between performance outcomes and compensation adjustments. This

system underscores Handler's commitment to recognizing the value of employee contributions and effectively

fosters organizational vitality through differentiated incentives providing a strong foundation for sustainable

development.46 XUZHOU HANDLER SPECIAL VEHICLE CO. LTD. FOREWORD ENVIRONMENTAL SOCIAL GOVERNANCE APPENDICES 47

Employee Development and Training Safety Management System

Demonstrating its commitment to international best practices Handler achieved alignment with international standards as early as 2009. The

Handler recognizes employee development and growth as essential to its long-term success. The Company offers equitable and diverse Company maintains effective operation of its ISO 45001 Occupational Health and Safety Management System certification. A multi-tiered safety

development opportunities and targeted training programs enhancing the “management and professional” dual-career path system. A management structure is in place closely aligned with annual work safety objectives. Safety responsibility agreements are signed at each

structured talent cultivation and succession management framework safeguards employee career development rights while adhering to management level clearly defining responsibilities and accountability. Furthermore the Company has optimized its full-cycle safety manage-

principles of fairness and sustainability. Handler promotes employee competitiveness and strengthens its talent pipeline through a dual-track ment system in accordance with the Work Safety Management System.approach of “academic advancement + skills certification”. This systematic approach to talent development ensures a positive synergy between

individual growth and organizational advancement providing a solid foundation for sustainable development.Strategic Embedding safety accountability from strategic decision-making to frontline execution with continuous manage-

Prioritization ment system optimization

Case Encouraging employee skill enhancement to strengthen organizational talent reserves

Innovatively integrate Heinrich's Law and the 'Four No-Overlook' Principle to strengthen root-cause governance.Enhance

Handler places a high value on employee personal growth and career advancement. To meet the diverse learning needs of its Establish a full-cycle safety management closed-loop system (Prevention - Response - Improvement) including: Management

employees Handler actively encourages participation in academic improvement programs skill enhancement training and Systems near-miss incident traceability and analysis mechanisms dynamic hazard control and accountability clarification

professional certification initiatives with the goal of building a high-quality and professional workforce. mechanisms five-dimensional inspection protocol regularized safety training mechanisms.Each year Handler provides a number of fully-funded postgraduate training opportunities offering valuable learning opportuni-

ties for employees seeking to further their education. In addition the Company provides strong support for employees who

independently pursue academic or skills-based training in their professional fields. Upon successful completion of studies and Implement

certification employees are eligible for reimbursement of 50% of their tuition fees. risk-tiered Dynamic hazard identification assessment and monitoring

management

Occupational Health and Safety Individual Achieve vertical penetration and horizontal collaboration of safety responsibilities through cmprehensive safety

Safety responsibility checklists Risk-tiered control mechanisms

Account-

Handler prioritizes work safety above all else. In strict compliance with applicable laws and regulations including the Work Safety Law of the ability Enforce a multi-level safety accountability system with signed safety responsibility agreements at all levels.People’s Republic of China the Law of the People's Republic of China on the Prevention and Control of Occupational Diseases and the Measures for the

Administration of Contingency Plans for Work Safety Accidents. the Company implements robust internal management procedures such as the

Work Safety Management System and the Environmental and Occupational Health and Safety Performance Monitoring and Control Procedures. This

commitment ensures a globally aligned and standardized safety and occupational health management system. Through the systematic Continuous

allocation of responsibilities implementation of science-based risk prevention and control measures and the promotion of a company-wide Improvement Through Five-dimensional Inspection Mechanism

safety culture Handler strives to enhance the precision and effectiveness of its workplace safety management aiming to provide a safe and Cyclical Multi-level Safety Training & Organization-wide Safety Culture Development

healthy working environment for all employees and to establish a benchmark for safety management within the industry. Enhancement

Handler’s Safety Management System

Occupational Health Practices

Handler consistently prioritizes employee occupational health management. In strict accordance with the Law of the People’s Republic of China on

the Prevention and Control of Occupational Diseases and other relevant regulations the Company integrates occupational health risk identification

into its safety management processes. The Company has established a comprehensive occupational health management system that includes

various safety training programs and hazard identification initiatives. Additionally we also organize diverse health education seminars and

targeted medical check-ups while continuously optimizing workplace environments and working conditions to safeguard the overall health

safety and well-being of our employees.48 XUZHOU HANDLER SPECIAL VEHICLE CO. LTD. FOREWORD ENVIRONMENTAL SOCIAL GOVERNANCE APPENDICES 49

Governance

Upholding Prudent Operations

to Safeguard Enterprise

Development

Corporate Governance 50

Sustainable Development Governance Mechanisms 53

Business Conduct 54

Compliance and Risk Management 57

SDGs addressed in this chapter50 XUZHOU HANDLER SPECIAL VEHICLE CO. LTD. FOREWORD ENVIRONMENTAL SOCIAL GOVERNANCE APPENDICES 51

Corporate Governance Remuneration Governance for Directors Supervisors and Senior Management

Handler maintains a Board Remuneration and Appraisal Committee (comprising three directors) governed by the Implementation Rules of the

Board Remuneration and Appraisal Committee. This structure establishes a robust and equitable framework for evaluating and compensating the

Handler is committed to sound corporate governance principles adhering strictly to all relevant laws and regulations. The Company has directors supervisors and senior management.established a well-defined “Three Committees and One Tier” governance structure (Shareholders’ Meeting Board of Directors Supervisory

Board and Senior Management) ensuring efficient and effective governance mechanisms. Furthermore the Company prioritizes transparent In April 2024 Handler’s commitment to standardized compensation practices was further demonstrated through the review and approval of the

information disclosure and proactive engagement with investors protecting shareholder rights and building a robust foundation for sustain- Proposal on the 2024 Remuneration Plan for Directors the Proposal on the 2024 Remuneration Plan for Supervisors and the Proposal on the 2024

able growth. Remuneration Plan for Senior Management. Directors: Compensation is determined based on a combination of industry benchmarks regional

economic performance and specific company performance. Supervisors: Compensation is based on position years of service and performance

Governance System assessment outcomes. Senior Management: Compensation includes a base salary annual performance bonuses and performance-based

incentives tied to specific responsibility agreements.Handler operates in full compliance with the Company Law of the People's Republic of China the Securities Law of the People's Republic of China andthe Code of Corporate Governance for Listed Companies. The Company’s governance framework centered on the “Three Committees and One Remuneration Decision-Making Processes and Determination Basis for Directors Supervisors and Senior Management:Tier” structure is formalized through the Articles of Association of Xuzhou Handler Special Vehicle Co. Ltd. and related internal regulations.Remuneration Decision-making Remuneration Determination

Through effective collaboration among the Shareholders’ Meeting Board of Directors Supervisory Board and senior management Handler procedures for Directors Basis for Directors Supervisors

has established a governance system characterized by clear delineation of responsibilities mutual checks and balances and robust accountabil- Supervisors and Senior Management and Senior Management

ity. To further enhance governance effectiveness the Company has established three special committees under the Board of Directors: the The compensation of directors and supervisors is decided by Remuneration is determined based on the Company's

Strategy Committee the Remuneration and Appraisal Committee and the Audit Committee. These committees provide multi-faceted support the General Meeting of Shareholders. profitability as well as the division of responsibilities and

for key decision-making processes strengthening the scientific rigor foresight and strategic alignment of board decisions. The compensation of senior management is decided by the performance of directors supervisors and senior manage-

Board of Directors. ment. Performance indicators are evaluated by the

Performance Highlights Remuneration and Appraisal Committee.During the Reporting Period Protection of Shareholder Rights and Interests

Handler held the following meetings: Annual General Meeting and Handler places a high priority on protecting shareholder rights and interests. In strict compliance with laws and regulations including the

Company Law of the People’s Republic of China and the Securities Law of the People's Republic of China as well as the provisions outlined in the

3 Shareholders’ Meetings 1 2 Extraordinary General Meetings Articles of Association Handler promotes standardized operations safeguards the Company’s overall interests and protects the legitimate rights

and interests of all shareholders with particular attention to minority shareholders.To strengthen shareholder rights and interests Handler’s Articles of Association include specific clauses on shareholders' right to information.

11 3 The Company also facilitates minority shareholder participation in corporate governance through online voting at shareholder meetings. These

Board of Directors Meetings Remuneration and Appraisal Committee Meetings institutional arrangements not only guarantee democratic and transparent decision-making but also enhance the influence of minority

shareholders on major corporate decisions.

7 and Information Disclosure

Audit Committee Meetings 11 Supervisory Board Meetings

Handler adheres to the Company Law of the People’s Republic of China the Securities Law of the People's Republic of China the Work Guidelines for

the Investor Relations Management of Listed Companies the Measures for the Administration of Information Disclosure by Listed Companies and the

Rules Governing the Listing of Stocks on ChiNext of the Shenzhen Stock Exchange. Consistent with these regulations and the Company's specific

Board of Directors Composition circumstances Handler has established the Information Disclosure Management System the Internal Reporting System for Major Information and

the Registration and Management System for Insiders of Inside Information. These systems are designed to standardize information disclosure

Handler’s Board of Directors strictly adheres to the principles of meritocracy diversity and inclusion in the director selection process. Director practices enhance the management of information disclosure and protect investors’ right to know and other legitimate rights and interests.candidates are rigorously selected based on the Company's strategic objectives and practical operational needs. The Company comprehensively

assesses candidates’ age educational background professional expertise and industry experience to ensure a diverse board composition that The Chairman of the Company has ultimate responsibility for information disclosure. The Secretary of the Board of Directors as the primary

aligns with business requirements broadens decision-making perspectives and enhances board effectiveness and executive capabilities. person in charge of information disclosure manages all related affairs. The Company’s Securities Department under the direct leadership of

the Secretary of the Board of Directors handles the daily management of information disclosure. Key components of Handler’s information

The Board of Directors consists of 9 members (including 3 female directors) with 3 independent directors. Board members include professionals disclosure include regular reports (Annual Report Interim Report and Quarterly Report) and ad hoc announcements (e.g. Resolutions of the

with expertise in finance law and corporate management possessing the knowledge skills and qualities necessary to effectively perform their Board of Directors Resolutions of the Supervisory Board Resolutions of Shareholders' Meetings and Significant Event Notices).duties and provide strategic oversight.In 2024 Handler made a total of 179 disclosures ensuring that all information disclosures throughout the year were legal compliant and free

from any false records misleading statements or material omissions.52 XUZHOU HANDLER SPECIAL VEHICLE CO. LTD. FOREWORD ENVIRONMENTAL SOCIAL GOVERNANCE APPENDICES 53

Investor Relations Sustainable Development

Handler is committed to maintaining strong investor relations by adhering to all relevant laws regulations and the provisions outlined in its

Articles of Association. The Company has established the Investor Relations Management System to standardize and enhance these activities. The Governance Mechanisms

Company’s investor relations are structured with the Secretary of the Board of Directors overseeing investor relations management. The

Securities Department functions as the operational unit responsible for the daily management of investor interactions. Guided by a strong commitment to sustainable development Handler integrates these principles into its core corporate strategy and business

operations. The Company aims to create long-term sustainable value for all stakeholders by deepening its ESG management practices and

In addition Handler has established diversified communication channels with investors. Through a multi-level and comprehensive communica- contributing to high-quality sustainable economic and social development.tion system the Company ensures timely and transparent two-way communication regarding critical information including development

strategy business results and R&D advancements.Sustainability Strategy Implementation

Performance Highlights

Handler is dedicated to implementing national strategic objectives by deeply embedding

sustainable development principles into all facets of its corporate governance and operations.During the Reporting Period Taking a dual domestic and international perspective Handler leverages scientific and Differentiated Digital-

Intelligent

technological innovation as its primary driver supported by advanced manufacturing capabil- Competition Transition

ities and guided by a commitment to green development. This approach enables the Compa-

Handler addressed hosted and conducted

ny to build a dynamic management system that fosters the coordinated advancement of ESG

102 6 2 factors. By integrating stakeholder needs with the evolving requirements for new quality Green Human- inquiries through the EasyIR platform investor exchange meetings online performance briefings Centricproductive forces Handler is building a sustainable development ecosystem that generates Development Development

both economic benefits and social value.The Company has established a “Four-Dimensional Synergy” sustainable development

practice system implementing corporate sustainable development from four aspects: Handler’s Four-Dimensional Synergy Framework

Interactive differentiated competition digital-intelligent transition human-centric development and for Sustainable Development Practices

Legal Disclosure Channels Communication Platforms Proactive Engagement Mechanisms green development to enhance its core competitiveness.Timely release of significant infor- Integration of offline events such Active participation in industry

Differentiated competition Digital-intelligent transition

mation through regular reports as shareholder meet ings and events such as brokerage strategy

and ad-hoc announcements. investor exchanges and online meetings to proactively communi- Handler is committed to a sustainability strategy centered Handler actively pursues sustainable development by

channels including performance cate the Company's value proposi- on “technology-driven differentiation”. The Company leveraging the Fourth Industrial Revolution and accelerat-

briefings the EasyIR platform and tion. actively shapes industry standards by leading significantly ing its transition to intelligent digitally-driven manufactur-

direct telephone consultations. contributing to or participating in the drafting of national ing processes. The Company enhances efficiency through

and industry standards for products such as aerial work production line upgrades and intelligent transformation of

vehicles aerial work platforms power supply vehicles key flexible production processes accelerates the develop-

Handler’s Diversified Investor Communication Channels distribution vehicles and fire trucks. ment of smart manufacturing and promotes a service-ori-

ented manufacturing model through digital and intelligent

technologies.Human-centric development Green development

By continuously refining its organizational structure Handler explores innovative green development pathways

enhancing incentive mechanisms and investing in talent developing products such as aerial tethered UAV fire trucks

cultivation and team building Handler supports its innova- that reduce water consumption by over 50% mobile energy

tive trajectory. storage vehicles with peak-shaving and valley-filling

capabilities streetlight maintenance vehicles equipped

with solar panels and is advancing the development of

low-energy alternatives such as hydrogen-powered

generators.54 XUZHOU HANDLER SPECIAL VEHICLE CO. LTD. FOREWORD ENVIRONMENTAL SOCIAL GOVERNANCE APPENDICES 55

Business Conduct Anti-Corruption Oversight and Inspections

Handler conducts regular internal anti-corruption inspections strengthens daily oversight through various means and

Handler is dedicated to strengthening its business ethics management system placing integrity and compliance at the heart of its operational utilizes a closed-loop management mechanism of “inspection - rectification - accountability”. For violations the Compa-

principles. The Company promotes a fair and competitive market by rigorously regulating business conduct through robust anti-bribery and ny applies a tiered approach using measures such as interviews education rectification and accountability based on

anti-corruption mechanisms. Upholding accessible reporting channels we firmly oppose all unethical practices and are committed to fostering the severity of the circumstances.a trustworthy transparent and sustainable business environment.Anti-Corruption and Integrity Building

Handler strictly adheres to a comprehensive suite of laws and regulations including the Criminal Law of the People’s Republic of China the Compa- Supplier Integrity Management

ny Law of the People's Republic of China the Oversight Law of the People’s Republic of China the Law of the People's Republic of China on Administrative

The Company firmly monitors the entire process of supplier corruption requiring suppliers to sign integrity commit-

Discipline for Public Officials and the Regulations on Integrity in Professional Conduct for Leaders of State-Owned Enterprises. The Company has

ment letters and incorporating these into their performance evaluations. A blacklist system for non-compliant suppliers

established a multi-dimensional collaborative oversight system to enhance anti-corruption management. By establishing cross-departmental

has been established along with hierarchical disciplinary measures to uphold a fair and competitive market environ-

collaboration mechanisms Handler effectively consolidates oversight resources creating a closed-loop supervision system encompassing

ment and ensure the healthy and stable operation of the supply chain.pre-emptive prevention in-process control and post-event accountability thereby continuously improving the effectiveness of compliance

management.Handler’s anti-corruption practices include signing Enterprise Cooperation Integrity Agreements with relevant parties and securing Employee

Integrity Commitment Letters from 205 employees. These agreements encompass senior executives marketing and sales personnel after-sales

service staff procurement directors and personnel R&D directors and designers finance directors and deputy directors general management Anti-Unfair Competition

directors and deputy directors/office directors and equipment safety officers and information technology personnel.Handler consistently adheres to laws and regulations including the Anti-Unfair Competition Law of the People’s Republic of China and the Anti-Mo-

nopoly Law of the People's Republic of China to regulate its business activities and employee conduct. The Company firmly opposes unfair compe-

tition practices such as false advertising and trade secret infringement striving to maintain a fair just and transparent market competition

Anti-Corruption Risk Management environment.Handler maintains a zero-tolerance stance against corruption implementing dedicated integrity risk prevention

According to internal policies Handler requires all employees to uphold the principles of integrity and legality in all business activities. In market-

initiatives in key operational areas such as procurement and marketing. The Company operates a robust procurement

ing the Company adheres to the fundamental principles of integrity and transparency strictly guaranteeing the authenticity and accuracy of all

bidding management system empowering all employees and bidders to monitor the bidding and implementation

marketing information while prohibiting the dissemination of any false or misleading information. Employees are clearly instructed to obtain

processes. Any irregularities discovered can be directly reported to the General Manager. The Audit Department is

business opportunities through fair and legal competition with strict prohibitions against winning business through improper means such as

responsible for preparing special reports and addressing any abnormal issues arising during the bidding process.offering undue benefits. Furthermore Handler prohibits employees from exchanging competitively sensitive information such as product

prices and costs with competitors illegally obtaining competitors' confidential information or maliciously spreading false information about

competitors or other products and services to ensure the fairness and impartiality of market competition.Integrity Education and Training

Handler views integrity education as a cornerstone of its anti-corruption efforts providing a comprehensive anti-cor-

ruption training program that covers all employees with an emphasis on key positions. Through systematic and

ongoing training the Company cultivates a strong ethical foundation equipping all employees to resist corruption.During the Reporting Period

Handler conducted reaching

2 integrity training sessions 205 participants56 XUZHOU HANDLER SPECIAL VEHICLE CO. LTD. FOREWORD ENVIRONMENTAL SOCIAL GOVERNANCE APPENDICES 57

Reporting Mechanism Compliance and Risk Management

In order to maintain the Company's good business order and the legitimate rights and interests of employees Handler continuously optimizes

the management process for whistleblowing acceptance and investigation ensuring that all types of violations can be promptly and effectively

Handler places a high priority on compliance and risk management establishing a comprehensive compliance management system to

addressed.strengthen its compliance culture and enhance employee awareness. Furthermore the Company rigorously adheres to relevant regulations

refining its risk management and internal control systems by establishing multi-layered safeguards for precise risk mitigation. By optimizing

In practice the Company ensures that reported issues are promptly escalated to relevant departments through clearly defined accountability at

internal control processes we ensure sustainable corporate development.all levels. Investigations are conducted with impartiality and objectivity to ensure the accuracy and authority of the findings. Furthermore

Handler places high importance on whistleblower protection strictly keeping whistleblowing information confidential and safeguarding

whistleblowers’ legitimate rights and interests fostering an honest and upright corporate environment. Compliant Operations

Handler prioritizes compliance management by establishing a comprehensive multi-tiered compliance management system designed for the

Reporting Channels accurate identification timely alerting and effective mitigation of compliance risks thereby fundamentally preventing the occurrence of various

compliance breaches. Building upon existing structures the Company continuously optimizes and strengthens compliance through enhanced

Handler has established a comprehensive communication and complaint mechanism allowing employees to submit opinions and suggestions

mechanisms for review reporting corrective action whistleblowing and accountability. These improvements ensure effective policy enforce-

to department leaders and supervisors in charge. Additionally a parallel supervision mechanism is in place enabling employees to report

ment and comprehensive compliance integration across all business operations. Personnel in high-risk roles and critical functions are required

personal opinions suggestions and complaints to the General Management Department and Audit Department in accordance with relevant

to sign mandatory compliance pledges reinforcing accountability and clarifying responsibility boundaries thereby promoting the establish-

regulations.ment of a long-term compliance management mechanism.To ensure unimpeded and convenient reporting channels Handler provides multiple avenues including dedicated email addresses hotlines

Recognizing that a compliance culture is pivotal for sustainable corporate development Handler places a high priority on employee compliance

secure drop boxes and face-to-face consultations to safeguard whistleblowers and facilitate secure and efficient disclosure of concerns.training offering diversified training programs to enhance employee awareness and professional competence. The Company actively promotes

Dedicated personnel are assigned to receive and handle whistleblowing information regularly summarizing and forming work records and

and practices a compliance philosophy involving all employees fostering a culture of proactive and self-driven compliance embedding compli-

conducting timely analysis research and disposal to ensure efficient resolution of whistleblowing matters.ance values deeply within the organization and establishing a solid cultural foundation for high-quality corporate growth.Whistleblower Protection

To effectively safeguard whistleblowers' legitimate rights and interests and create a conducive supervision environment Handler actively

improves its whistleblower protection mechanism. The Company prioritizes the confidentiality of whistleblower information implementing

stringent measures to protect reporters' identities and the information they provide. Access to this information is strictly limited to authorized Case Shanghai Grumman Employees’ Compliance Training

personnel to prevent leakage or dissemination. During the handling of whistleblowing matters all involved staff and other relevant personnel

are required to strictly follow the work procedures properly keep whistleblowing materials and are strictly prohibited from disclosing the During the Reporting Period Shanghai Grumman conducted 12 compliance training sessions covering 172 participants with a

identities of whistleblowers and the content of whistleblowing matters to the reported parties and other irrelevant personnel. total duration of 20 training hours. The training program included the dissemination of the Risk Assessment Guidelines for

Equipment Procurement Contract Performance and Quality Management System and Qualification Supervision Requirements for

Furthermore Handler explicitly prohibits any form of retaliation against whistleblowers categorizing such acts as severe violations of corporate Equipment Manufacturers as well as legal education and training including the prevention of enterprise secret risks and the

policy. For acts of retaliation causing adverse consequences Handler will initiate accountability investigations in accordance with laws and Government Procurement Law.regulations imposing disciplinary sanctions commensurate with the severity of the offense thereby safeguarding whistleblowers' legitimate

rights and ensuring the integrity effectiveness and fairness of the reporting mechanism.Risk Management

Handler attaches great importance to risk management and actively constructs a robust risk management and internal control system. Through

multi-tiered safeguards with full-process penetration the Company implements precision risk mitigation to maintain risks within acceptable

thresholds thereby ensuring sustainable corporate development.Handler prioritizes enhancing internal controls. During the Reporting Period the Audit Department finalized the Internal Control Manual which

clarifies and standardizes internal control standards and operating procedures. Furthermore the Company continuously conducted audit work

completing over 30 audit projects covering key areas such as sales procurement and production at headquarters subsidiaries and affiliated

companies. We continuously tracked and inspected the rectification of issues raised in audit reports continuously optimizing existing internal

control management processes and strengthening the control of risk points. Moreover we implemented systematic internal control evalua-

tions to comprehensively assess the design and operational effectiveness of controls mitigating compliance risks and enhancing oversight in

critical areas.58 XUZHOU HANDLER SPECIAL VEHICLE CO. LTD. FOREWORD ENVIRONMENTAL SOCIAL GOVERNANCE APPENDICES 59

Appendices Indicators Unit 2024

Environmental performance

ESG Performance Overview Suspended solids (SS) emissions Ton 0.367

Total hazardous waste generated Ton 119.42

Total hazardous waste disposed Ton 121.40

Indicators Unit 2024

Hazardous waste discharge intensity Ton/RMB million revenue 0.075

Economic performance

Total non-hazardous waste generated Ton 976.70

Operating revenue RMB100 million 15.91

Net profit attributable to the shareholders of Total non-hazardous waste disposed Ton 976.70

the listed company RMB100 million 2.24

Non-hazardous waste discharge intensity Ton/RMB million revenue 0.614

Basic earnings per share RMB/share 0.23

Water consumption Ton 45683

Total assets RMB100 million 25.81

Circulating water consumption Ton 16730

Weighted average return % 15.59

Water consumption intensity Ton/RMB million revenue 28.71

Total Taxes Paid RMB100 million 1.06

Annual water conservation rate % 9.58

Environmental performance

Total environmental protection investment RMB10000 153.41

Total GHG emissions tCO?e 113

Number of environmental training sessions Sessions 2

Gasoline Ton 17.25

Number of environmental training participants Persons 60

Diesel Ton 224.40

Environmental training hours Hours 8

Natural gas Standard cubic meter 386934

Employee performance

Purchased electricity MWh 4035.59

Number of employees Persons 797

Total energy consumption tce 1105.14

Male Persons 698

Energy consumption intensity tce/RMB million revenue 0.694 Number of employees

by gender

Female Persons 99

Nitrogen oxides (NOx) emissions Ton 0.58

Aged under 30 Persons 124

Sulfur dioxide (SO2) emissions Ton 0.144

Number of Aged 30–50 Persons 550

Particulate matter (PM) emissions Ton 0.324 employees by age

Aged over 50 Persons 123

Volatile organic compounds (VOCs) emissions Ton 0.237

Production staff Persons 375

Total wastewater discharge Ton 11500

Sales staff Persons 187

Ammonia nitrogen emissions Ton 0.18 Number of

employees by Technical staff Persons 118

Chemical oxygen demand (COD) emissions Ton 2.22 professional

composition

Finance staff Persons 21

Biochemical oxygen demand (BOD) emissions Ton 1.1

Administrative staff Persons 96

Total phosphorus (TP) emissions Ton 0.02460 XUZHOU HANDLER SPECIAL VEHICLE CO. LTD. FOREWORD ENVIRONMENTAL SOCIAL GOVERNANCE APPENDICES 61

Content Index

Indicators Unit 2024

Employee performance

The Issue Index of the Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange— Sustainability Report (For Trial Implemen-

M a s t e r ' s d e gree or higher Persons 30 tation) issued by the Shenzhen Stock Exchange

Number of B achelor's degree Persons 235 Dimension No. Issue Chapter/Section

employees by

educational

background Junior college

Persons 234 1 Climate Change Response Climate Change Response

Others Persons 298 2 Pollutant Emissions Pollution Prevention and Ecological Protection

Proportion of females in management % 5 3 Waste Disposal Pollution Prevention and Ecological Protection

Employee turnover % 7.18 4 Ecosystem and Biodiversity Protection Pollution Prevention and Ecological Protection

Environment

Total training hours of employees Hours 16291 5 Environmental Compliance Management Environmental Compliance Management

Total number of employees trained Persons 661 6 Energy Utilization Resource Utilization Optimization

Average training hours per trained employee Hours/person 24 7 Water Resource Utilization Resource Utilization Optimization

Number of occupational health and safety training sessions Sessions 5 8 Circular Economy Resource Utilization Optimization

Number of emergency drills Time 4 9 Rural Revitalization Rural Revitalization and Social Contributions

Number of work-related fatalities1 Persons 0 10 Social Contribution Rural Revitalization and Social Contributions

Governance performance 11 Innovation-driven Development Innovation-Driven Development and Technology Ethics

Number of Board members Persons 9 12 Ethics in technology Innovation-Driven Development and Technology Ethics

Number of independent directors Persons 3 Social 13 Supply Chain Security Supply Chain Management

Number of female directors Persons 3 14 Equal Treatment of SMEs Supply Chain Management

Integrity education training sessions Sessions 2 15 Product and Service Safety and Quality Product Liability

Number of integrity education training participants Persons 205 16 Data Security and Customer Privacy Protection Data Security and Privacy Protection

17 Employees Employee Rights and Interests Protection

18 Due Diligence /

Sustainable 19 Stakeholders Engagement Corporate Governance

Development

Governance 20 Anti-commercial Bribery and Anti-corruption Business Conduct

21 Anti-Unfair Competition Business Conduct

1 Statistical scope: work safety accidents62 XUZHOU HANDLER SPECIAL VEHICLE CO. LTD. FOREWORD ENVIRONMENTAL SOCIAL GOVERNANCE APPENDICES 63

Suggestions and Feedback

Thank you for reading Handler’s 2024 Sustainable Development Report. To provide more valuable insights for you and other stakeholders as

well as to enhance Handler’s ESG management capabilities and standards we sincerely welcome your comments and suggestions on this

Report. Please provide your feedback through the following channels:

Xuzhou Handler Special Vehicle Co. Ltd.Address: No. 19 Baoliansi Road Xuzhou Economic and Technological Postal code: 221004

Development Zone Jiangsu Province China

Email: hlzzqb@xzhlz.com

1. Which of the following stakeholder groups apply to you

Governmental and regulatory agencies Shareholders and investors Customers Employees

Suppliers and other partners The public (media or communities) Industry association or business organization

Charity organizations Others

2. Do you think this Report adequately present Handler’s sustainability performance

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3. Do you think this Report adequately addresses the expectations and requirements of Handler’s stakeholders

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4. Do you think the quantitative information disclosed in this Report is objective truthful and effective

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5. Do you think this Report is clear and easy-to-read

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6. Do you think the layout design of this Report helps you understand relevant information

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7. What aspects of Handler’s ESG management and sustainability disclosure you think require further improvement or refinement