2024
Sustainability Report
Sunwoda Electronic Co. Ltd.About This Report
Report Description This report is the fifth ESG report issued by Sunwoda Electronic Co. Ltd. (hereinafter referred to as
"Sunwoda" "the Company" or "the Group") to all stakeholders.The reporting period is from January 1 2024 to December 31 2024 (hereinafter referred to as
"this year" or "the reporting period"). Some data may extend beyond the above period (subject to
specific date annotations) to enhance the report's completeness.Scope and The scope of this report is consistent with the consolidated financial statements of Sunwoda
Boundary of Report Electronic Co. Ltd. (stock code: 300207).Report The financial data in this report is sourced from the Company's audited financial reports. Other
Data Description data comes from the Group's internal documents and summarized statistical information. Unless
otherwise specified all currency types and amounts mentioned in this report are denominated in
Renminbi (RMB).There are no false records misleading statements or major omissions in this Report. The
Company holds joint and several liabilities for the authenticity correctness and completeness of
this Report.The Report is available in both Chinese and English. For slight discrepancies between the
Chinese and the English versions the Chinese version shall prevail.Basis of Preparation This report is developed in accordance with the Self-Regulatory Guidelines No. 17 for Companies
Listed on Shenzhen Stock Exchange--Sustainability Report (For Trial Implementation) published
by the Shenzhen Stock Exchange (hereinafter referred to as the "Shenzhen Stock Exchange
Guidelines"). Meanwhile this report also references authoritative standards and guidelines such
as the Sustainability Reporting Standards by Global Reporting Initiative (GRI Standard 2021)
the United Nations Sustainable Development Goals (SDGs) the "Ten Principles" of the United
Nations Global Compact (UNGC) and IFRS Sustainability Disclosure Standards of the International
Sustainability Standards Board (ISSB) as well as key issue indicators from mainstream ESG ratings
in China and internationally.Process Based on ESG practices this Report advanced by the process of "Project Initiation & Approval -
of Preparation Material Collection - Preparation & Revision - Management Review - Board Review - Disclosure".Frequent communications were made with stakeholders during the project initiation and
approval and the preparation and revision stages to study and demonstrate the framework
structure and content of the Report.Access of Report The electronic version of this Report can be view or download from the official website of
Sunwoda Electronic Co. Ltd. (https://www.sunwoda.com/).The Company will keep improving and enhancing the disclosure level and the ESG management
capability in the future. Any questions or suggestions on this report please contact the Company
freely:
Sunwoda Electronic Co. Ltd.Address: No. 2 Yihe Road Shilong Community Shiyan Sub-district Bao'an District Shenzhen
Guangdong Province China
Tel.: 86-0755-29516888
Fax: 86-0755-29516999CONTENTS
LIFECYCLE
Innovation-driven Full Lifecycle Green Solutions 29
Circular Sustainability Pioneer R&D Innovation 39
01
ECOLOGY Addressing Climate Change 47
Environmentally Friendly Practicing Green Production 52
Green Manufacturing Fostering a Low-Carbon Culture 61
Conserving Biodiversity 62
02
Ensuring Stable Operations 65
ACCOUNTABILITY Building an Intelligent Enterprise 72
Excellence in Governance Safeguarding Product Quality and Safety 76
Pursuing Perfection
03
Message from the Chairman 01
Cultivating a Vibrant Workplace 85
About Sunwoda 03 PARTNERSHIP
Creating Customer Value 107
Annual Topic 13 People-Oriented
Shared Prosperity Establishing Responsible Supply Chain 110Sustainability Management 17 Promoting Industry Development 117
Appendix 129 04 Constructing a Beautiful Home 119Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Message from the Chairman
In the passed 2024 faced with complex situations such as the slowing Policy-Driven Insights: We actively practice a circular economy based on fully meeting
economic growth and the changing international trade pattern Leading to High-Quality Development customer's needs by deeply integrating green design concepts into
Sunwoda guided by the vision of "To become a respected world- our product development system. We continuously increase R&D
class new energy enterprise" and with the mission of "Innovation Against the backdrop of the comprehensive implementation of the investment in green clean technologies and establish a comprehensive
drives the progress of new energy world" has deeply engaged in globalization development strategy Sunwoda remains committed lifecycle environmental management covering "raw materials -
the lithium battery field so as to provide greener faster and more to a deep understanding of policy trends and regards "Integrity" production - use - recycling". We also continuously improve the digital
efficient integrated new energy solutions for the society. In the past as the lifeline for the Company's steady and long-term progress platform for battery passports and actively layout battery recycling
year Sunwoda has achieved a breakthrough performance despite and "Innovation" as the primary driving force for leading corporate committing to achieving green management of products throughout
challenging market conditions achieving operating revenue of RMB transformation. Sunwoda bases its operations on integrity always their entire lifecycle. In 2024 we achieved deep collaboration with our
56.021 billion and a net profit attributable to shareholders of listed adhering to global laws regulations and business ethics while supplier partners across multiple dimensions such as strategy goals
companies of RMB 1.468 billion with a year-on-year increase of integrating quality safety consumer rights and social responsibility systems resources and digitalization jointly promoting the green
36.43%. into the core of its development. With a forward-looking vision we transformation and sustainable development of the supply chain.
break boundaries. Through technological iteration model upgrades
As a world-leading conpany in the lithium battery industry Sunwoda and ecological reconstruction we drive industry value leaps. Sunwoda
defines the standard of success not merely in terms of short-term is continuously exploring the forefront of new energy technologies Social Responsibility:
financial returns but on the foundation of harmonious coexistence of focusing on the research and development of innovative technologies Collaborative Journey to Wellbeing
environment society and governance capabilities. ESG practices have such as solid-state batteries and sodium-ion batteries and
become a crucial driving force for the Company's strategic upgrade contributing key strength to the progress of the new energy industry. Sunwoda is firmly committed to advancing excellence in corporate
guiding Sunwoda towards a more sustainable and responsible Moreover we regard digitalization as one of the group's four strategic social responsibilities working together with stakeholders to create
development path. modernization pillars. We adhere to the digital strategy guiding a better future. We prioritize the wellness and health of "people"
principle of "customer-centric and business-oriented" by vigorously adhering to a people-oriented approach and considering the growth
carrying out digital construction work to support the maximization of and development of employees as the cornerstone of corporate
business value and the comprehensive layout of digital transformation management. The Company promotes responsible supply chain
thus promoting the enterprise towards a new journey of high-quality management and collaborates with partners from all sectors of society
Strategic Guidance: development. to empower each other and jointly carry out sustainable cutting-edge
Advancing Towards a Sustainable Future practices. Additionally as a company that practices social responsibility
Sunwoda is deeply engaged in public welfare and widely carries
In the new round of human social development and transformation Customer-Centric Approach: out charitable actions. We are focusing on key impact areas such as
the concept of sustainable development serves as the core engine Building a Full-Chain Low-Carbon Ecosystem vulnerable population support educational advancement medical
for shaping the blueprint for change. The Company has announced assistance and disaster relief to drive social development as well as
the sustainability management strategy "LEAP toward a Sustainable In response to customer's requirement in carbon reduction Sunwoda providing comprehensive support for high-quality rural development
Future" . This strategy integrates ESG management into the Company's strictly follows the "carbon peaking and carbon neutrality" strategy through educational ecological cultural and healthcare interventions
operations through focusing on four dimensions - Lifecycle Ecology and the Science Based Targets initiative (SBTi) commitment to limit demonstrating our commitment to social responsibility.Chairman of the Board Wang Wei Accountability and Partnership - to continuously advance sustainable temperature rise to 1.5°C. We set corporate "dual carbon" goals and
development and improve ESG management system to lay a strong actively explore emission reduction pathways to systematically respond Where there is a will there is a way. The new energy industry
foundation for the Company's long-term growth. Additionally Sunwoda to climate change. Furthermore we practice clean production and undertakes the critical assignment of sustainable development for
enhanced the ESG governance by upgrading the Board Strategic strive to minimize environmental impact at every stage. In 2024 we human civilization and sustainable development is a strategic choice
Committee to the Strategy and Sustainable Development Committee. promoted comprehensive low-carbon production and operations and for Sunwoda. We sincerely hope to collaborate with every ecological
This change further clarifies responsibilities and ensures effective completed a total of 215 energy-saving management and technical partner to create a more prosperous beautiful and harmonious future
implementation and oversight of ESG principles from the strategic transformation projects achieving annual electricity savings of 66.748 contributing to the grand blueprint for building a community with a
to the operational level fully driving the achievement of sustainable million kWh. Additionally four subsidiaries have achieved PAS 2060 shared future for mankind!
development goals. carbon neutrality certification for their industrial parks.
01 02Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
About Sunwoda Electronic Co. Ltd. was founded in 1997 and listed on the Shenzhen Stock Exchange in 2011 (stock Benefiting from its innovative R&D endeavors Sunwoda has emerged as a top performer in the code: 300207). In 2022 It successfully issued GDRs and was listed on the Swiss Stock Exchange (hereinafter global new energy industry. The company is widely recognized by the government industry and Headquarters
Sunwoda referred to as the "SIX Swiss Exchange") making it a global leader in the lithium-ion battery industry. customers. It has not only won the Shenzhen Mayor's Quality Award the Guangdong Provincial Bao'an District in Government Quality Award the First Prize of Guangdong Science and Technology Progress Award With its mission of "driving the global advancement of new energy with innovation" Sunwoda is deeply Shenzhen
and the First Prize of China Industry-University-Research Cooperation Innovation Achievement Award
cultivating the lithium battery field and is dedicated to providing society with more green rapid and efficient
but has also been recognized as a National Technology Innovation Demonstration Enterprise and a
integrated new energy solutions. The company has established five major business segments: consumer
"Digital Leading" Enterprise by the Ministry of Industry and Information Technology. Its lithium-ion
Company product power technology energy technology smart hardware and ecological innovation of industry. 2 R&D centersbattery modules for smartphones have been designated as the national "Single Champion Product
Profile With a vision of "based in Shenzhen and serving the world" Sunwoda has built multiple production bases in in Manufacturing". SEVB has been recognized as Provincial and Municipal Champion Enterprise in various provinces across China including Guangdong Jiangsu Zhejiang Shandong Jiangxi Sichuan and Specialized Manufacturing. Additionally it has consistently ranked high in various lists such as China's 17production bases
Hubei as well as in countries like India Vietnam Hungary Morocco and Thailand with overseas marketing Top 500 Private Enterprises (No. 258) and the Global Top 500 New Energy Enterprises (No. 17). It has
agencies in the United States France Germany Israel South Korea and Japan. also been rated as a global Tier 1 EV battery manufacturer by the international agency Benchmark overseas marketing
Guided by the vision of “becoming a respected world-class new energy enterprise” Sunwoda actively and listed in BloombergNEF’s rankings of Global Tier 1 Energy Storage Manufacturers and Bankable agencies
embraces national strategic opportunities and adheres to prudent operations continuous innovation and Energy Storage System Providers. The company has also received honors from customers such as
7
open cooperation. The Company reinforces strategic leadership and accelerates the pace of globalization Xiaomi vivo Li Auto and Nissan.digitalization intelligence and green development. After nearly thirty years of rigorous development Looking to the future Sunwoda aims to be a "pioneer" in the new energy sector by leveraging its
Sunwoda has not only established profound technological foundations in the lithium battery field with the professional services and innovative technologies to facilitate the global energy revolution and
industry-leading manufacturing process but also has diversified its business portfolio. The Company has contribute to a green Earth!
become a hidden champion in the 3C consumer battery sector ranked among the top ten globally in installed
capacity of power batteries among the top ten Chinese companies in global energy storage cell shipments
and among the global top five in energy storage system (DC side) shipments.India Seoul in South Korea
Vietnam Tokyo in Japan
Hungary Sichuan
Morocco Shandong
Thailand Hubei
Silicon Valley in USA Jiangsu
Los Angeles in USA Zhejiang
Paris in France Jiangxi
Hamburg in Germany Guangdong
Tel Aviv in Israel Shenzhen and Huizou
Bao'an District in Shenzhen
Headquarters R&D centers production bases overseas marketing agencies
03 04Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Corporate Culture Financial Performance
Mission Vision
Innovation drives the progress of new To become a respected world-class new
energy world energy enterprise N? et?profit?attributable?to?Operating revenue shareholders of the listed Tax amount
company
560.2114.6812.85
RMB 100 million RMB 100 million RMB 100 million
Core Values
Customer Success Self Criticism Honesty
First Passionate Endeavor Team Work
Company History
After nearly thirty years of rigorous development Sunwoda has developed into a leading enterprise in the global lithium-ion battery field.Sunwoda started the R&D Sunwoda started the Sunwoda established Sunwoda's power Nanjing production Sunwoda was listed on the Swiss Stock Sunwoda's energy storage battery business
Sunwoda was of power battery BMS intelligent hardware energy storage business battery cells went base commenced mass Exchange entering an essential phase achieved significant growth ranking among
established. modules and PACK. business. subsidiary . into production. operations . of globalization strategy. China's top 10 enterprises in global shipments.
19972008201220162018202020222024
2000201120142017201920212023
Sunwoda commenced volume Sunwoda was listed Sunwoda consumer-grade Sunwoda's first overseas Sunwoda entered official Sunwoda's power battery business accelerated Sunwoda's first European
supply to global key customers. on the GEM board of lithium-ion battery cells base was established in cooperation with global premium expansion with two multi-billion RMB projects factory established in
Shenzhen Stock Exchange. achieved mass production. India. automotive OEMs . launched in Jiangxi and Shandong . Hungary.
05 06Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Business Units
Consumer Product Power Technology Energy Technology Smart Hardware Ecological Innovation of Industry
Comsumer product is Sunwoda's traditional Sunwoda began its power battery Sunwoda Energy is a wholly owned With advancements in key technologies Intelligent Manufacturing: Independently
core business. The Company actively increases business in 2008 with products covering subsidiary of Sunwoda specializing in and increased policy support the develop intelligent manufacturing production
R&D efforts strengthens quality management battery cells modules BMS and PACK. integrated lithium battery energy storage development of products in areas such lines innovatively apply Industry 4.0 and
and integrates new technologies such as The Company is dedicated to providing and application technology. It focuses on as smart homes smart offices smart industrial Internet technologies and build
fast charging and dual battery cell solutions competitive and scene-specific power five major business areas: power energy wearables and smart security systems a benchmark factory integrating intelligent
into designs for various brand smartphones. battery solutions and energy storage storage industrial and commercial energy is significantly enhancing the intelligent manufacturing industrial Internet and green
Currently Sunwoda has achieved deep cells for the new energy industry. Relying storage household energy storage experience of people's lives. Leveraging manufacturing.cooperation with leading global mobile on six core competitive advantages— network energy and smart energy. Based a professional R&D and engineering
terminal manufacturers forming a large advanced technology exquisite smart on customer needs and pain points manufacturing team a top domestic Industrial Internet: Focus on the lithium
stable customer base. Sunwoda's shipment manufacturing unparalleled quality in segmented markets the Company acoustic laboratory and a dedicated dust- battery and new energy industries and build
volume of smartphone lithium batteries PACK reliable delivery open cooperation provides innovative and competitive green free automated assembly workshop a platform foundation intelligent supply
consolidates global leadership position . The and nearly three decades of experience energy products and solutions. It aims Sunwoda provides clients with intelligent chain collaboration platform dual-carbon
laptop lithium battery business of the Company serving large clients—Sunwoda has to become an industry leader in energy hardware product solutions including management platform and battery passport
serves leading global brand manufacturers won recognition from numerous storage products and solutions investment clean appliances electric toothbrushes platform with distinct industry characteristics.and has gained recognition from numerous renowned clients both domestically and and operation and channel and brand and electronic pens. It offers a full- Third-Party Testing Services: Specialize in
high-quality customers both domestically internationally enabling its bulk supply to influence. process solution from product design to the lithium battery and its upstream and
and internationally. Furthermore Sunwoda is world-class automotive companies. manufacturing and delivery. downstream fields providing comprehensive
actively expanding its 3C lithiumion battery cell technical services such as testing and
business to increase battery cell self-supply analysis inspection and certification standard
rates thereby reducing supply risks caused by technology research collaborative innovation
technical barriers and enhancing profitability. in R&D technology and high-quality integrated
solutions.
07 08Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Highlighted Performance
Long-term Sustainable Management Caring for Employees and Promoting Joint Development
Released and optimized sustainability and Participants in the Sustainable Supply Internal sustainability Selected GBA Battery Total number of employees: Percentage of female employees: Investment in workplace safety:
ESG-related process and policy documents: Chain Development Conference: culture activities held: Passport pilot projects:
12 100+ 6 2 54292 30.66% RMB 3647.96 ten thousand
Number of occupational Major safety accidents causing Occupational health examination coverage rate
disease cases: injuries and fatalities: for frontline employees:
Harmonious Green Ecology
Consistent implementation of carbon Parks?certified?for?PAS2060? Representative products with ISO 14067 Energy-saving 0 0 100%
verification?carbon?quota?trading?and? carbon neutrality: Product Carbon Footprint declarations improvement projects
compliance: completed in 2024: completed:
11consecutive years 4 10 215
Collaborating with Partners for Mutual Success
Annual electricity savings Installed photovoltaic Distributed photovoltaic power Proportion of green
achieved: capacity: generation: electricity usage: Total number of suppliers who signed Number of suppliers covered by Percentage?of?verified?use?of?
the Supplier Code of Conduct: conflict?minerals?due?diligence:? qualified?smelters:?
6674.8 ten thousand kWh 94.10 MW 94800 MWh 29.71% 3266 1117 100%
Strong R&D Capability
Comprehensive Social Care and Support
R&D investment: R&D team members: Cumulative domestic Patents related to clean
patent applications: technologies:
Expenditure of Sunwoda Charity Foundation: Investment in rural revitalization:
RMB 3.33 billion 8389 7265 5812
RMB 592.08 ten thousand RMB 241.90 ten thousand
High-Quality Products and Services Robust Internal Governance
Number of product recalls due to Amount involved in major safety and quality Customer satisfaction rate: Employee coverage rate of Number of operational sites that passed ISO Number of participants who
quality issue: liability incidents related to products and services: integrity training: 27001 Information Security Management System passed the information security
surveillance audit: examination:
0 issue 0 RMB 92.89% 100% 13 7669
09 10Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Annual honors and awards
Responsibility Management Digital and Intelligent Empowerment
Ranked 3rd in China Top 36 in "Data 2nd Prize in the 7th
2024 Fortune China Forbes China 2024 Corporate Social Typical Application Element ×" Competition National Industrial
ESG Impact List Annual ESG Inspired Responsibility Cases of AI-Powered Zhejiang Sub-Contest Internet Data Innovation Case Studies Leaderboard 2023 New Industrialization (Jinhua Area) Application Competition
Fortune China Forbes China Southern Weekly Ministry of Industry and National Data China Academy of Information and
Information Technology Administration Communications Technology
Excellent Practices 3rd Prize in the Intelligent
for Corporate Green Member of Siemens Manufacturing Category of
Excellence Application
the Innovative Applications Award in Lenovo and Low-Carbon China Zero-Carbon
Development 2024 Pioneer Initiative Track The 3rd Pazhou
AIGC Empowered
Quality Management 2024 AILE Award - Best Algorithm Competition
China Enterprise Directors Siemens China (South China Area) Innovation Competition
AI Practice Application
Association Chinese Association for Lenovo Organizing Committee of World
Artificial?Intelligence Industrial Development Forum
R&D Innovation
1st Prize in China 1st Prize in China
Electricity Science and Industry-University- Human Resources
Fortune China Top Technology Award - Research Collaboration
50 Tech Companies Technology Progress Innovation Achievement
Award Award Top 10 Cases of
Fortune China Chinese Society for China Industry-University- Title of Guangdong Government-School- Most?Influential?
Electrical Engineering Research Institute Craftsman Academy Enterprise Cooperation in Employers 2025
Collaboration Association Bao'an District
Guangdong Human Resources and Social Haitou
Federation of Trade Security Administration of
Product Quality Unions Shenzhen Bao'an District
1st-Class Achievement Outstanding
Award for Campus Human Resource
Excellence-Level Intelligent Manufacturing in Innovation China's Top 100 Best Publication Employers 2024 Recruitment Best Management Award Smart Factory Demonstration Factory Competition Practices 2024
Ministry of Industry and Ministry of Industry and Guangdong Zhaopin Zhaopin 51job
Information Technology Information Technology Association for Quality
Capital Market Honors Rating approval
Popular Listed Best Internal Sci-Tech Innovation
Company Award Governance Listed Best Practice ESG BBB B AA Company Rating
Hithink TMTpost Securities Daily MSCI ESG CDP Wind
11 12Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Annual Topic: LEAP toward a Sustainable Future
In recent years amidst multiple challenges such as cyclical fluctuations in the industry and intensified internal Deeply understanding policy trends
competition within the domestic lithium battery sector Sunwoda has formulated a strategic framework
centered on four key pillars: globalization digitalization intelligentization and green development. The With a focus on global sustainable development goals and regulations Sunwoda integrates its unique sustainability culture and practices aiming
Company has firmly pursued the path of sustainable development and proactively launched a series of to lead the industry toward a new era of sustainable development and showcase China’s ESG strength to the world. In the process of globalization
initiatives gradually building globally competitive capabilities in sustainability. Sunwoda adheres to international regulatory frameworks such as the EU Batteries and Waste Batteries Regulation as the minimum compliance
The Company established standard. The Company conducts in-depth analysis of regulatory requirements and internally released the Action Guidelines on the EU Batteries and
the Strategy and Sustainable Establishing a comprehensive sustainable strategy system Waste Batteries Regulation demonstrating a high level of compliance and forward-looking awareness. At the same time the Company maintains a
Development Committee under Sunwoda has established the “LEAP toward a Sustainable Future” strategy outlining a strategic blueprint deep understanding of both domestic and international sustainability requirements effectively responding to regulatory changes and market risks.the Board of Directors and built a for the Company’s globalization and sustainable development based on four pillars: Lifecycle Ecology Guided by policies Sunwoda continuously strengthens its internal capabilities for sustainable development. In alignment with the national dual-
four-tier sustainable management Accountability and Partnerships. Meanwhile a four-tier sustainable management structure has been carbon policy the Company released its “dual-carbon” goals in 2022 and has since actively promoted green manufacturing models establishing
structure. established covering decision-making management operation and execution with the Strategy and “near-zero carbon parks” and “carbon-neutral parks” to achieve effective carbon emission management in production and operations. The
Sustainable Development Committee under the Board of Directors ensuring the effective implementation of the Company has conducted an in-depth understanding of the requirements under the EU Batteries and Waste Batteries Regulation and developed the
The Company defined a total of strategy. Additionally the Company has restructured and integrated the Group’s sustainable development work “Sunwoda Digital Battery Passport Platform” to comprehensively collect and record battery lifecycle data effectively addressing technical barriers
12 sustainable development model and organizational framework with a focus on strategy and system management. Senior executives for exports to Europe. At the same time the Company actively participates in international organizations and initiatives such as the United Nations
strategic objectives including oversee sustainability-related performance while sustainability task agreements are signed with various Global Compact (UNGC) adheres to international sustainability standards and continuously improves its own sustainability development system.“100% compliance functional departments and business units. LEAP serves as the framework for managing sustainability-relatedwith the EU Batteries and Waste topics.Batteries Regulation Battery
Passport requirements for EV
batteries exported to the EU 12 18
LMT batteries and industrial The documents and systems related to The Company followed the LEAP strategy to Sunwoda was selected for the Sunwoda jointly released a green Sunwoda engaged in-depthbatteries over 2KWh.” sustainable development and ESG have been conduct comprehensive topic management Global Battery Alliance (GBA) 2024 outbound solution for ecosystem dialogues with the Catena-X
released and optimized. covering critical internal topics. Battery Passport Pilot Project for co-creation — Sunwoda Battery delegation to jointly envision
the first time becoming one of Passport Platform – Siemens a new blueprint for digital
Sunwoda releases its sustainable development strategy the companies with 2 projects Carbon Footprint Collaboration development in the battery Case selected. Edition — with Siemens at the 7th industry.China International Import Expo.To actively respond to the global sustainable development agenda and advance the company's green transition Sunwoda held the "LEAP
toward a Sustainable Future" Sustainability Strategy Launch Event at its Guangming Campus in Shenzhen.The event was witnessed by
Sunwoda's founder Mr. Wang Mingwang together with the core management team. Mr. Liang Rui Vice President and Chief Sustainability
Officer of Sunwoda served as the host of the event.In his opening speech Mr. Wang Mingwang emphasized that the official release of Sunwoda's Sustainable Development Strategy marks a
significant milestone in the company's sustainability journey. It signifies a shift from passive compliance to proactive leadership in the field
of sustainable development. Mr. Wang called on all employees to take this strategic blueprint as a guiding framework and to further refine
and implement detailed action plans across all functions.Looking ahead the company will stay aligned with the LEAP strategy leveraging
technological innovation as a driving force and embracing responsibility as a cornerstone. Together with employees customers partners and Sunwoda released the Sunwoda held a roundtable Sunwoda actively promotedsociety at large Sunwoda will advance toward a sustainable future characterized by harmony between humanity and nature. Action Guidelines on the EU dialogue on “Sustainable the development of China’sBatteries and Waste Batteries Development of the Full Value of first group standardRegulation and issued 8 Power Batteries” inviting 5 on battery full-lifecycle
editions of its regular ESG partners from the value chain to traceability data requirements.policy briefing. discuss the impact of the EU Battery
and Waste Battery Regulations.
13 14Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Fully satisfying customer needs Outstandingly fulfilling social responsibilities
Sunwoda adheres to a dual-engine approach driven by technological innovation and business model advancement with customer demands as As a leader in the new energy industry Sunwoda deeply integrates social responsibility into the core of its business strategy constructing a
the core driving force. The Company carries out forward-looking research and development planning and continuously enhances its global market sustainable development ecosystem for the new energy supply chain through the enhancement of internal and external capabilities and the
performance. outward practice of responsibility. The Company is committed to becoming a respected corporate model.In terms of sustainable development Sunwoda has established a full lifecycle environmental management system promotes green technology Internally Sunwoda prioritizes employee development and continuously fosters a sustainable cultural influence by organizing multiple sustainability-
innovations such as ultra-fast charging solid-state batteries and silicon-carbon anodes and develops multiple low-carbon products to support the related cultural initiatives to enhance the responsibility capabilities of all employees. Externally in response to the Rural Revitalization Strategy
zero-carbon transition. The Company actively focuses on the application of recycled materials in the battery industry and continuously reduces the Sunwoda focuses its efforts on education improvement cultural heritage and ecological governance offering support to areas such as Hexi She
carbon footprint of its products. Ethnic Township in Heyuan and Yong’an Town in Du’an Guangxi exemplifying the corporate mission of responsibility in the new era.In addition Sunwoda targets key ESG topics and collaborates with value chain partners to jointly address challenges such as climate change and As a member of the United Nations Global Compact Sunwoda actively engages in international dialogues fulfilling its sustainability commitments
labor rights while seizing sustainable development opportunities in the new energy industry. through action. The Company transforms its green manufacturing experiences into replicable solutions driving green transformation in countries
along the Belt and Road through tangible collaborations such as technology standards output and the co-construction of low-carbon industrial
parks continuously promoting China’s green manufacturing image.Sunwoda provided integrated Sunwoda constructed smart
Sunwoda responded1 00% solutions including comprehensive service stations integratingto customer sustainability- energy storage “PV-storage- photovoltaic power generationrelated requirements. charging-testing”systems and distributed energy storage Sunwoda was invited to participate in over 2 0 authoritative domestic and international conferences and forums including COP29
zero-carbon park services. electric vehicle charging and UNGC and WEF.battery testing services.Sunwoda provided nearly 2 0 2 job opportunities for persons with disabilities and was recognized as a provincial and
municipal employment base for people with disabilities.Sunwoda advanced its employee equity incentive plan with 8 6 % of core staff covered by equity incentives.Sunwoda developed silicon-carbon Sunwoda achieved the industr- Sunwoda advanced battery
anode battery technology with a first application of liquid-cooling recycling through its global
silicon content of 10% and an energy technology in mobile energy recycling network addressing Sunwoda launched its first management trainee program to comprehensively accelerate the growth of outstanding young talents and
density of up to storage vehicle systems. full lifecycle management needs cultivate a new generation of “Sunwoda-style” managers.
773 Wh/L across the value chain.
Sunwoda recorded annual charitable donations of RMB 5 . 9 2 0 8 million benefiting a total of 2 5 0 0 0 0 individuals.Sunwoda conducted1 2 sustainability-related training sessions and organized 6 internal sustainability culture events engaging over
1000 participants.
Sunwoda deployed a carbon footprint accounting platform and an ESG data management platform to
empower sustainability management through digital capabilities. Sunwoda received1 7 honors related to sustainable development.
15 16Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Sustainability Management Sustainability Management Structure
Upholding the tenets of "Deeply understanding policy trends Fully satisfying customer needs and Outstandingly fulfilling social To deepen the implementation of its sustainable development strategy Sunwoda continuously optimizes its sustainability management structure
responsibilities"Sunwoda has formulated a sustainability development strategy themed "LEAP toward a Sustainable Future" . This strategy integrates ensuring a close integration of ESG practices with management and business activities to drive the Company's sustainable performance.sustainability management into the Company's operations through four objectives - Lifecycle Ecology Accountability and Partnership to advance
The sustainability management structure of Sunwoda is led by the Board of Directors with a Strategic Committee underneath. In 2024 the Board of
sustainable development and strengthen sustainability management to lay a strong foundation for the Company's long-term growth.Directors' Strategic Committee of Sunwoda was renamed the Strategy and Sustainable Development Committee further clarifying its responsibilities
for ESG implementation from strategy to execution. Under this committee a Sustainable Development Management Committee was established to
further improve the sustainability management system. It serves as a permanent body that oversees Sunwoda's ESG resolution implementation ESG
Sustainable Development Strategy risks identification as well as ESG strategies goals and plans preparation and implementation. The Company also appointed a Chief Sustainability Officer and set up an ESG Management Department under the Sustainable Development Management Committee to ensure standardized
sustainable development advancing Sunwoda's high-quality development and enhancing its international image and market competitiveness in
sustainability.Board of Directors
LEAP toward a Sustainable Future Decision-making
Strategic Vision Level Strategy and Sustainable Development Committee
Supervision Reporting
Deeply understanding Fully satisfying Outstandingly fulfilling Management Sustainable Development Management Committee
Guiding Principles policy trends customer needs social responsibilities
Level
Guidance Reporting
Operational ESG Management Department
Level Overall planning and
Lifecycle Ecology Accountability Partnership implementationExecution Sustainability Department/Strategic Goals Specialized Project Team Group of Business UnitsLevel
Business Environmental Resource Product Battery Consumer Power
Ethics Management Management Recycling Passport product technology
* Battery passport * Operational * Information * Satisfaction of key Customer Sustainable Information Conflict? Intellectual Energy Smart
Service Procurement Disclosure Minerals Property Rights technology hardware
carbon reduction disclosure stakeholders
* Green Products Employee Employee
* Renewable * Business conducts * Sustainable Training & Occupational Supplier Rights & Risk & Ecological Innovation of Industry
* Battery Recycling Development Health & Safety Management Benefits Complianceenergy * Quality and safety procurement Community Climate Change Information
* Environmental * Community Philanthropy & Rural
Biodiversity
Response Conservation Security & Privacy Revitalization (Renewable Energy) Protection
compliance impact
Strategic Path
Provide management tools and empowerment
Sunwoda establishes its sustainability management system in line with relevant system standards such as ISSB SA 8000 RBA Code of Conduct
ISO IWA 48 ISO 14001 ISO 45001 etc. combined with the actual management of the Company. It formulates the Social Responsibility Management
Manual and Sustainable Development Management Manual which clearly define its sustainable development strategic planning management
SDGs systems coordination mechanisms performance evaluation frameworks and practical approaches to environmental social and governance issues.Following the PDCA (Plan-Do-Check-Act) methodology Sunwoda standardizes responsibilities at each level within its sustainability management
framework effectively managing and tracking all sustainability initiatives objectives and actions across the organization.Simultaneously Sunwoda cascades its sustainable development strategy throughout all relevant functional departments and business units linking
Value chain Digitalization Intelligentization Innovation and R&D it to executive performance metrics in a top-down approach that drives sustainable development strategy implementation and manages associated
Key competencies empowerment risks. Heads of business units and functional departments sign sustainable development commitment agreements establishing key performance
indicators and targets based on their specific operational contexts. Guided by the Group's overarching sustainable development strategy Sunwoda
has established a series of ambitious goals spanning multiple dimensions including greenhouse gas emissions reduction battery recycling and
battery passport initiatives providing robust support for the efficient advancement of corporate sustainable development efforts.
17 18Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Communication with Stakeholders
Sunwoda attends to the impact of its operations on various stakeholders. By actively identifying stakeholders sorting out their core concerns
clarifying communication methods and keeping abreast of their demands and expectations the Company continuously improves its sustainable
development performance. Through practical actions the Company actively creates economic social and environmental value for various
stakeholders such as governments consumers employees customers shareholders and industry partners thus continuously contributing to
sustainable development.Stakeholder
Category
Government and regulators Shareholders and investors Customers Employees Supplier Partners Public and community
Key Issues Robust governance Robust governance High-quality products and Talent management and R&D and innovation R&D and innovation R&D and innovation
of Concern services developmentAnti-corruption and business Anti-corruption and business Responsible supply chain High-quality products and High-quality products and
ethics ethics Responsible supply chain Occupational Health and management services services
management Safety
Information Security and R&D and innovation Information Security and Industry cooperation Rural revitalization and social
Privacy Protection Addressing climate change Product quality and safety Privacy Protection contribution
Industry cooperation Industry cooperation and
Addressing climate change Resource management and Anti-corruption and business Occupational Health and development Addressing climate change
Addressing climate change circular economy ethics Safety
Environmental compliance Resource management and
management Cleantech opportunities Information Security and Industry cooperation circular economy
Privacy Protection
Cleantech opportunities
Communication Institutional investigation General Meeting of Customer service and feedback Internal communication Supplier evaluation and audit Industry associations Charitable donations
Channels Shareholders channels platformPolicy implementation Supplier exchanges and Advocacy organizations Exchanges and visits
Regular / temporary Customer satisfaction survey Trade unions and workers' training
Relevant websites announcements Investor congresses Forums and events Community and public welfare
relations websites Symposiums and visits Supplier conferences activitiesMeetings Employee assessment and Exchanges and visits
Social media interaction Volunteer services
Official correspondence and Performance briefing Email promotion
information disclosure phone and research Employee training
Interactive platform
Roadshows
Main Response The Company adheres to the The Company regularly The Company continuously The Company strengthens the The Company improves the The Company actively carries The Company conducts public
Methods business code of conduct publishes sustainable improves customer satisfaction protection of employees' basic supplier access and supervision out partnerships with various welfare projects in collaboration
continuously optimizes internal development reports financial actively responds to rights and interests establishes mechanism establishes a social sectors jointly promotes with various parties through
control and compliance reports and other information complaints and suggestions internal communication mutually beneficial value chain industry innovation and charitable foundations
management pays taxes in holds shareholder meetings ensures product quality channels and platforms for partnership with high standards sustainable development supporting rural revitalization
full provides employment in a timely manner reports on promotes product innovation employees builds a systematic of supplier management through participation in projects in education
opportunities improves work progress and protects emphasizes information career advancement path and and an efficient procurement standard policy formulation healthcare and other fields
environmental management investors' rights and interests. security and privacy protection training activities for employees system actively holds supplier strategic cooperation projects and actively engaging in
discloses information in a and provides customers with and carries out a variety of conferences conducts on-site and hosts expert research volunteer services to assist
timely manner cooperates with high-quality products and team-building and employee audits and works together to visits. community development.inspections and supervision services. care activities. In addition create a sustainable supply
through regular reports and occupational health and chain.announcements and advocates safety management is being
for green and environmentally continuously enhanced to ensure
friendly concepts. the physical and mental well-
being of employees.
19 20Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Double Materiality Assessment Assessment Results
To effectively identify understand and respond to the concerns of stakeholders regarding the Company's sustainable development practices Based on the Guidelines and referring to Sunwoda's sustainability context and business realities combined with stakeholder feedback the
Sunwoda regularly conducts a comprehensive materiality assessment of sustainability issues. In 2024 through policy analysis extensive research Company identified and updated 18 sustainability-related topics in 2024: 7 environmental 7 social and 4 governance. The Company also identifies
with internal and external stakeholders and other methods Sunwoda carried out the identification and analysis of ESG material issues providing a and analyzes the existing and potential impacts risks and opportunities related to sustainability issues (Detailed information is available in the
reference basis for the Company to systematically advance its ESG work and disclose relevant information. Based on the judgment criteria for impact Appendix: Analysis of Sustainable Development Issues and Their Impacts Risks and Opportunities).materiality and financial materiality as outlined in the Shenzhen Stock Exchange's Guidelines and referring to international authoritative guidelines
such as ISSB and GRI Sunwoda conducted stakeholder surveys on the material issues and carried out a double materiality assessment. Based on the combined assessment of impact and financial materiality the Company identified 10 issues as both financially and impact material.The following results were comprehensively assessed by the internal finance department of the Company the ESG Management Department
and other relevant departments as well as external industry experts based on insights from the Company the industry and both domestic and
Understand the Company's activities and Develop an issue international perspectives. These results were ultimately reviewed and approved by Sunwoda's CFO the Sustainable Development Management
business relationships 1 2 inventory Committee and the Board of Directors. All issues identified as financially material to the Company have been disclosed in the relevant chapters of Interpret domestic and international Identify and screen relevant sustainability this report in accordance with the four elements of "Governance—Strategy—Risk Management—Metrics and Targets" to comprehensively present
sustainability standards the Company's issues in conjunction with the reality Sunwoda's management and action initiatives on key ESG issues.business operations and value chain and of the Company and stakeholder
industry conditions to understand the communication and analyze the
sustainability context in which the Company existing and potential impacts risks and
operates. opportunities related to sustainability
Assessment issues. Energy management and utilization R&D and Innovation
Process
Assess and confirm issue materiality Review and report Addressing Climate Change
Evaluate and rank the impact and Highlight the issues of higher materiality
Clean Technology High-quality products
financial materiality of issues based on the during the reporting period after review Opportunities and services
Company's situation industry development and confirmation by the Board of Responsible Supply
trends and authoritative domestic and Directors. Chain Management Talent development and
management
international studies forming a double
materiality matrix and defining the 3 4 Industry cooperation Occupational Health and SafetyEnvironmental Stable Governanceboundaries of material issues. Compliance Management
Anti-corruption and Emissions and waste Resource Management and
business ethics management Circular Economy
Assessment Method Rural revitalization and social Information Security and Privacy contribution Protection
The double materiality assessment was conducted through various methods such as questionnaire surveys interviews and expert evaluations. Intellectual Property Protection
During the reporting period Sunwoda conducted assessments through online questionnaire surveys and in-depth interviews engaging with
internal management customers suppliers government agencies industry associations and other stakeholders. More than 800 online survey
questionnaires were collected and 15 in-depth interviews were conducted with senior executives and heads of major departments. This assessment
gathered a comprehensive understanding of internal and external evaluations of the significance of ESG topics and an extensive analysis was Biodiversity conservation
performed by referencing opinions from internal and external ESG experts.Impact materiality Financial materiality
A comprehensive assessment is conducted The Company comprehensively evaluates the likelihood Financial materiality high
by integrating positive and negative of impact and the degree of financial impact over short- Environment Social Governance
impacts actual and potential impacts and term medium-term and long-term time horizons.evaluating from multiple dimensions such It assesses the influence of relevant issues on the
as impact scale scope likelihood and Company's business model operations and financial
irremediability which assesses whether indicators across multiple dimensions including
the performance of the Company's resource availability and relational dependency.sustainability-related topics will have
significant impacts on the environment Note: The Company defines its time horizons as short-term
economy and society. (up to and including 1 year) medium-term (from 1 to 5 years
inclusive) and long-term (beyond 5 years).
2122
high
Impact materialitySunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Actions
The Company actively participates in industry exchanges to promote the Partnerships for
Sustainable Development Impact standardization and technological advancement within the industry. the GoalsThe Company engages in active cooperation with global partners including
the United Nations Global Compact (UNGC) and the Global Battery Alliance
(GBA) to work together for mutual benefits and support the achievement of
Sunwoda's Sustainable Development Strategy sustainable development goals.The Company implements anti-corruption practices in all business activities Peace Justice
Actions from internal management to external cooperation and prohibits any form of and Strong corruption bribery abuse of power favoritism and malpractice. Institutions
The Company promotes a clean and honest corporate culture continues to
No Poverty The Company actively responds to national and local strategic deepen the integrity awareness of all employees via all kinds of activities
deployment for rural revitalization by carrying out the "Caring Canteen" and creates a sound working atmosphere.project and the "Cultivation and Reading Garden" project in Hongyuan
Village Houmen Town focusing on the development of vulnerable It is prohibited to employ child labor and forced labor. The Company
groups and contributing to rural revitalization. implements management of critical minerals and supply chain labor.With Investment in R&D resources the Company develops environmentally Life on Land
Good Health and The Company values the protection of employees' health with a 100% friendly products and production processes aiming to reduce environmental
Well-being rate of occupational health check-ups for employees. impact.By implementing assistance programs such as the "Sunshine Guardian The Company prioritizes biodiversity conservation by establishing a
Program" "Tongxin Garden: Children's Care Space Project" and comprehensive site selection assessment system. Our operations both
"Sunshine Guardian Plan" the Company supports sick children care domestic and overseas have demonstrated no negative impact on
family assistance and medical aid. biodiversity strictly adhering to ecological protection redlines.Quality Education The Company established the "Sunwoda Future Scholarship" - the The Company released the "Carbon Peak and Carbon Neutrality" goals and
"Dreams Set Sail" to support the development of education. Climate Actionjoined the Science Based Targets initiative (SBTi).The company prioritizes talent cultivation and development by The Company was certified by ISO 14064 and carries out greenhouse gas
establishing a comprehensive training system. This includes inventory and carbon verification every year.management trainee programs degree advancement initiatives and
professional skill certification schemes to foster employee growth. Sunwoda has maintained high-quality carbon verification processes and carbon allowance trading in the Shenzhen carbon market for 11 consecutive
years achieving a 100% compliance rate.Gender Equality The Company advocates equal employment and prohibits limits on 4 subsidiaries were certified by PAS 2060 for carbon neutrality.female employees' legitimate rights and interests in labor contracts
or employment contracts or discrimination against female employees Low-carbon projects have been carried out in the supply chain.in salary adjustments or job promotions. The proportion of female The Company promotes employees' awareness of low-carbon practices and
employees accounts for 30.66%. understanding of the significance of "carbon peak and carbon neutrality" work.Clean Water and The Company follows the PDCA principle to promote water
Sunwoda has established a recycled materials subsidiary to advance Responsible
conservation carry out water conservation projects and implement battery recycling completing the closed-loop battery industry chain. Sanitation Consumption and
water resource conservation management through methods such as The Company has built a digital battery passport platform and established Production
wastewater recovery from pure water machines concentrated water a high-quality management model for the entire product lifecycle.recycling and the installation of water-saving devices and automatic The sustainable management of natural resources and hazardous
sensor water-saving devices. chemicals has been strengthened to reduce pollutant emissions.Sunwoda Boluo Park has achieved the goal of zero industrial The Company organized and held sustainable development activities.wastewater discharge by building its own industrial wastewater
treatment station and reusing reclaimed water. Sunwoda provides green mobility and integrated energy storage solutions Sustainable Cities
to society. Through innovative applications such as "PV-storage-charging- and Communities
Affordable?and? The Company expands the layout of photovoltaic power generation inspection" smart stations shared energy storage projects and mobile
Clean Energy aiming to achieve 100% renewable energy usage by 2050. energy storage vehicles the company contributes to sustainable urban
Clean technology innovation has been positioned as one of the core development.strategies to promote power technology and energy technology 100% compliance in pollutant disposal throughout the year with no
research and development. environmental accidents.Decent Work and Complying with applicable local labor standards the Company provides Adhering to the principle of "fairness and justice" the Company prohibits Reduced
Economic Growth employment opportunities especially prioritizing local hiring.any discrimination based on race color religious belief gender age and Inequalities
place of origin.The company adheres to lawful employment practices and has issued the
Regulations on Child Labor Rescue Minor Workers and Female Employee 5841 ethnic minority employees and 56 disabled employees have been
Protection explicitly prohibiting child labor and forced labor to safeguard employed.employee rights.Investment in R&D amounts to RMB 3.33 billion.Committed to building a multi-level all-round talent pipeline system the Industry
Company has established a comprehensive performance evaluation system and The Company establishes a diverse and open R&D model building efficient Innovation and
provides employees with clear career development paths. and stable partnerships with upstream and downstream partners research Infrastructure
institutions etc. so as to create a good collaborative innovation ecosystem
A people-oriented approach has been adopted to focus on employees' physical and solidly advance research projects.and mental health and work-life balance.
23 24Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Initiative Global
Participation Advocacy
Sunwoda actively engages in both domestic and international sustainable development initiatives. The Company has joined The 29th United Nations Climate
key external organizations and frameworks including the United Nations Global Compact (UNGC) Global Battery Alliance (GBA) Change Conference (COP29)
Science Based Targets initiative (SBTi) ISSB International Sustainability Disclosure Standards Early Adopter Partner and the At the 29th United Nations Climate Change
China ESG Alliance. Through these commitments Sunwoda contributes its distinctive strengths to advancing global sustainable Conference (COP29) Sunwoda was invited
development. to collaborate with supply chain partners in
exploring green solutions.United Nations Global Compact
"Caring for Climate" Initiative
Sunwoda was invited to attend and speak at the
12th annual high-level meeting of the United
Nations Global Compact (UNGC) "Caring for
Climate".UN Global Compact SDG Ambition
Accelerator
Sunwoda participated in the UN Global Compact
SDG Ambition Accelerator to promote the
establishment of ambitious corporate goals and
build sustainable development resilience.
2024 Asia-Pacific Carbon Summit
and World Low-Carbon Cities Forum
S unwoda shared its sustainability best practices
at the 2024 Asia-Pacific Carbon Summit and World
Low-Carbon Cities Forum contributing expertise in
Standards green technology integration and circular economy 2024 models to advance climate-smart urbanization.Developmet
In 2024 Sunwoda participated in or reviewed 9 Global Battery Alliance (GBA)
national industry local and group standards Sunwoda joined the Global Battery Alliance (GBA)
Sunwoda actively participates in the formulation
related to sustainable development as well as 1 to participate in the global battery passport
of sustainable development standards driving
white paper. pilot project and promote the full life cycle
the standardization of ESG practices within the
management of batteries.industry chain. The Company offers scientific
approaches for the sustainable development
of the industry and demonstrates professional 9item 1item
leadership in green transformation particularly
in areas such as product carbon footprint and
low-carbon development.
252601
LIFECYCLE
Innovation-driven
Circular Sustainability
As one of the world's leading battery manufacturers Sunwoda deeply
integrates green design concepts into its product development system
responding to the global demands for sustainable products operations and
production. It continuously enhances the construction of the battery passport
digital platform actively engages in battery recycling and practices the circu-
lar economy. Throughout the early mid and late stages of the product lifecy-
cle Sunwoda actively provides society with green solutions comprehensively
promoting the "Four Transformation" development strategy (globalization
digitalization intelligentization and green development) and contributing to
global sustainable development.Key ESG Topics in this Chapter:
Resource management and circular economy
Cleantech opportunities
R&D and innovation
Intellectual Property Protection
Response to SDGs:Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Full Lifecycle Green Solutions
Sunwoda always adheres to the corporate mission of "Innovation drives the progress of new energy world" and takes clean technology innovation as 6C Flash
one of the core strategies committed to offering customers green solutions throughout the entire lifecycle of its products. Charging Battery 3.0 Sunwoda is dedicated to developing its Flash Charging Battery a power battery solution that
Product Series combines extended range capability ultra-fast charging for efficient energy replenishment
enhanced safety features exceptional durability and superior value retention. Leveraging
Early Stage Sunwoda's proprietary flash-charging high-conductivity network material technology enhanced-safety nickel-rich cathodes and advanced high-conductivity electrolytes this battery effectively
Green Design and Technology tackles common challenges in new energy vehicles related to driving range charging speed and safety performance. The 6C Flash Charging Battery 3.0 product series from Sunwoda includes the
LFP Xinxingchi battery and the 6C NCM Xinxingyao battery. The former offers a peak 6C average fast-
Continuously improving product energy efficiency and reducing energy consumption per unit output are key actions for Sunwoda to achieve the charging capability of over 4.5C while the latter has an ultra-fast-charging performance that can
goals of "carbon peak and carbon neutrality" and implement sustainable operations. To this end the Company has deeply integrated green low- charge from 10% to 80% SOC in just 10 minutes significantly reducing charging time for new energy
carbon technology and sustainable development design concepts from the very beginning of product design. vehicles and enhancing convenience.In 2024 Sunwoda continuously increased its investment in scientific research and development in the field of green clean technology. The Company
has established environmental management requirements covering the entire lifecycle from "raw materials - production - use - recycling" deeply
embedding the concept of green design into the product development system and striving to achieve green management throughout the Next-Generation Xinyue
product lifecycle. During the research and development stages of product design and process design the Company integrates regulatory control 625Ah Ultra-Large The "Xinyue" is an energy storage battery cell specially designed for the TWh era with a cell capacity
requirements and external customer needs by embedding directions for green design including increased proportion of recyclable materials Energy Storage Battery of up to 625Ah and an energy density exceeding 430Wh/L representing an 8.8% improvement over
improved energy efficiency and enhanced proportion of reusable materials after disassembly while setting targets for key indicators. Cells the 314Ah cell. Through continuous breakthroughs in "lithium" technology "Xinyue" battery cells
In addition Sunwoda has positioned itself at the cutting edge of green technology innovation pursuing visionary and breakthrough advancements can achieve a cycle life of 15000 cycles flexible "zero degradation" for 3-5 years a service life of 25in green low-carbon technologies such as solid-state battery technology and silicon-carbon anode battery technology. Through the development of years and a total lifecycle cost reduction of over 13%. "Xinyue” technology significantly enhances
various eco-friendly low-carbon products the Company is actively driving the evolution of product lifecycle toward enhanced sustainability greater space utilization and increases energy density by 5%.efficiency and reduced environmental impact.Green Technology
Mid Stage
Solid-State
Battery Technology Sunwoda is accelerating the development of multiple generations of solid-state batteries. To
date the Company has successfully completed the development of its first-generation semi-solid- Green Solutions
state batteries initiated pilot production testing for second-generation semi-solid-state battery
prototypes and achieved laboratory validation for its advanced third-generation all-solid-state Beyond product services centered on 3C batteries and power batteries Sunwoda continues to explore customized multi-domain green low-carbon
batteries. Compared to traditional liquid batteries solid-state batteries offer higher energy density solutions. Through comprehensive energy storage integrated "PV-storage-charging-testing" services and zero-carbon parks the Company meets
and enhanced safety. This innovation is expected to enable further reductions in battery size and various application scenario needs of customers and supports the green and low-carbon transformation of various industrial chains and regions.weight consequently enhancing the driving range and energy efficiency of new energy vehicles.This technological progression plays a crucial role in the Company's strategy to support deep
decarbonization across the transportation industry. Battery Passport Digital Platform
With the successive issuance of relevant domestic and international regulations and policies such as the EU Batteries and Waste Batteries Regulation
Silicon-Carbon and the Action Plan for Establishing a Comprehensive New Energy Vehicle Power Battery Recycling and Utilization System the new energy battery
Anode Battery Technology Sunwoda's silicon-carbon anode battery technology can be applied to consumer batteries. This industry is facing unprecedented challenges and opportunities.silicon-carbon anode battery with a silicon content of 10% has a measured energy density of up to
773Wh/L. As a leading global battery manufacturer Sunwoda actively responds to policy initiatives and demonstrates outstanding leadership and innovative
practices in battery passports. The Company actively builds a digital platform for battery passports leveraging its industry advantages to promote
Green Products platform construction. By integrating digital technologies such as blockchain the Internet of Things and artificial intelligence it achieves end-to-end
monitoring and data management for the industry chain.Collaborating
The detachable dry cell battery equipped with a built-in high-voltage lithium-ion polymer battery is In 2024 Sunwoda successfully took the lead in establishing China's digital platform for battery passports providing strong technical support for the with Customers to
Develop Detachable designed for easy disassembly reducing safety risks such as deformation leakage and fire during
battery lifecycle management. Currently the digital platform for battery passports has launched pilot operations for certain products. In addition
battery removal by non-professionals. Sunwoda collaborates with North American customers to to the statistical management of product names types and due diligence the platform can also conduct traceability management for key raw Dry Cell Batteries
develop detachable dry shell batteries to facilitate safe and convenient removal and replacement materials such as positive and negative electrode materials and electrolytes. By combining authoritative carbon footprint accounting standards from
of batteries during maintenance thus effectively reducing battery damage and scrapping due to both domestic and international sources it enables the precise tracing of product carbon footprints and emissions. This provides a digital solution
improper maintenance. to the challenges of traceability and regulation in the new energy battery industry contributing significantly to the sustainable development of the
global battery industry.
29 30Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Sunwoda Launches Battery Passport Platform Case In addition Sunwoda is spearheading the development of China's first group standard for battery life cycle traceability management data
requirements. The Company has engaged in in-depth exchanges with industry peers at multiple international seminars to jointly explore the
international cooperation and development path of battery passport technical standards. In 2024 Sunwoda vigorously promoted the application
On November 6 2024 at the 7th China International Import Expo
of battery passports through various means including hosting practical training for battery passport generation and participating in international
(CIIE) Sunwoda advanced the industry's "Battery Passport" project and
exhibitions and forums to enhance the transparency of the global battery value chain.collaborated with Siemens to release "Sunwoda Battery Passport Platform
- Simens SiTANJI Joint Solutions " an eco-creation green overseas solution.This platform realizes full-lifecycle value chain management of battery Sunwoda Diligently Promotes Battery Passports Case
sales covering carbon footprint accounting traceability transparency
and international certification. The development of this solution and
value-added service aims to support global new energy enterprises in In July 2024 at the EU Battery Passport Standards and Supply Chain Data Technology Seminar hosted by the Industrial and Information
steadily advancing their green low-carbon transformation and achieving Technology Bureau of Bao'an District Shenzhen and the Bao'an District Enterprise Service Center PTL collaborated with Catena-X the China
sustainable international expansion. Industrial Association of Power Sources and other organizations to discuss the technical standards for full-life-cycle data management
of new energy batteries under the EU New Battery Law and international cooperation promoting the sustainable development of battery
passport technology and global energy transition.Moreover Sunwoda has successfully held practical trainings for battery passport generation issuing battery passports to 12 vehicle
Sunwoda Selected for the Global Battery Alliance 2024 Battery Passport Pilot Case manufacturing enterprises new energy battery production enterprises and upstream and downstream companies in the industry chain
thereby enhancing the battery full life cycle management capabilities of the value chain.Sunwoda actively engages in global initiatives to foster sustainable and responsible green battery supply chains worldwide. Following its
official membership in the Global Battery Alliance (GBA) in 2023 the company has been actively participating in GBA's Battery Passport Pilot
Program.Two battery passport projects co-developed by Sunwoda with leading Chinese automakers have been jointly selected as Top 10 Pilot Projects
in GBA's "2024 Battery Passport" initiative. Recognized for their outstanding performance in carbon footprint accounting supply chain
traceability and information disclosure this achievement marks international endorsement of Sunwoda's efforts to advance transparency and
sustainability across the battery value chain.The Global Battery Alliance (GBA) is the first global
battery association established by the World Economic
Forum (WEF). It actively engages in battery passports
traceability systems and
ESG-related actions
aiming to create a
sustainable responsible
and fair global battery
industry chain by 2030.Sunwoda Joins CATARC ADC Battery ID Task Force Case Advanced Energy Storage Solutions
During the reporting period Sunwoda participated in the 2024 China The 2024 Government Work Report first proposed developing new energy storage and accelerating the construction of a new energy system.Battery ID Research Task Force organized by Automotive Data of China "Developing new energy storage" as a "new driving force" for China's economic development has gained widespread recognition providing a policy
Co. Ltd (CATARC ADC) actively contributing to the development of the basis for the application development of "energy storage +".China Battery ID Platform. In December 2024 the task force released
the first batch of pilot achievements with the company's pilot project In the energy storage field Sunwoda has over twenty years of profound technical accumulation and precise strategic planning. It focuses on five core
being selected as one of the Top 10 National Pilot Projects. This business segments: power energy storage industrial and commercial energy storage residential energy storage network energy and smart energy.milestone release represents China's inaugural battery ID achievements The Company has successfully offered established solutions for over thirty diverse scenarios backed by a comprehensive portfolio of successful
establishing new benchmarks for both domestic and global battery implementations. During the reporting period the Company vigorously created multi-scenario mobile energy storage solutions and implemented
industries. It marks a groundbreaking step in the digital transformation comprehensive energy storage projects which not only met the diversified energy needs of economic and social development but also propelled the
of China's battery sector embodying strategic advancements in lifecycle achievement of "carbon peak and carbon neutrality" goals.traceability and circular economy practices.
31 32Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Shared Energy Storage Project in Zaozhuang High-tech Zone Shandong Case Green Travel Solutions
With outstanding technological innovation capabilities Sunwoda continues to launch innovative technologies and products improving product
Sunwoda Smart Energy signed a cooperation agreement for a 400 MW/800
performance to meet the stringent requirements of long-distance travel and high-load transportation. It significantly enhances the vehicle's range
MWh shared energy storage project with Zaozhuang High-tech Zone
and lifespan injecting strong momentum into the development of green travel tools and promoting the progress of the new energy vehicle industry.Shandong. The project will be constructed in three phases with the first
Meanwhile?the?Company?is?developing?an?integrated?"photovoltaic?storage，and?testing"?solution?which?combines?photovoltaic?power?generation?phase planned to start construction in the fourth quarter of the year and
energy storage systems and charging facilities to support zero-carbon transportation business. This solution effectively integrates energy resources
expected to be connected to the grid and reach production capacity by
improves energy utilization efficiency and provides green and convenient charging services for electric vehicles promoting the transportation
May 2025. The project will create an efficient energy use environment
industry's transition to carbon reduction and sustainability.for Zaozhuang City helping it to become a model city for low-carbon
development as soon as possible.Shenzhen Sunwoda Photovoltaic-Storage-Charging-Testing Integrated Smart Station Case
10-meter Integrated Mobile Energy Storage Vehicle Case The project is located in the Sunwoda R&D Base Industrial Park in Guangming District Shenzhen covering a total area of approximately 350
square meters. It functions as an integrated energy station combining photovoltaic power generation distributed energy storage electric
vehicle charging and battery testing services. After the project is completed the annual power generation is expected to be approximately
Sunwoda has developed multi-scenario mobile energy storage solutions. In 2024 the new "Xinjiyuan" mobile energy storage vehicle was 35600 kilowatt-hours saving 14.24 tons of standard coal each year and reducing emissions by 32.04 tons. This project has contributed to the
launched. As the first liquid-cooled 10-meter mobile energy storage vehicle with the world's largest capacity in the industry so far "Xinjiyuan" construction of Shenzhen "Supercharging City" in Guangming District. A tripartite product form is built with flexible deployment to adapt to
represents a bold innovation by Sunwoda in the energy storage field bringing a new path for the development of new mobile energy storage. more application scenarios and deliver greater ecological value.It is also the first time that liquid cooling technology has been applied to mobile energy storage vehicle systems in the industry resulting in
enhanced safety and reliability.Additionally the operating temperature range of the "Xinjiyuan" mobile energy storage vehicle is -30°C to 55°C adapting to various climates Zaozhuang Photovoltaic-Storage-Charging (Swapping)-Testing Smart Station Project Case
and scenarios. Based on various uninterrupted power supply needs it can be applied to power supply for non-stop operations in the power
grid emergency rescue power supply major event power assurance peak period highway services road rescue and temporary construction
power supply providing timely and stable power assurance. Sunwoda Smart Energy has reached a joint venture cooperation agreement with Zaozhuang High-tech Investment Group Co. Ltd. focusing
on the Photovoltaic-Storage-Charging (Swapping)-Testing Smart Station Project. The goal is to build a green low-carbon circular economic
system in Zaozhuang City and empower the development of urban new energy infrastructure. The project is expected to complete the
construction of no less than 20 photovoltaic-storage-charging-testing smart stations throughout the year all adopting Sunwoda Smart
Sunwoda Noah x2.0 Liquid-Cooled Energy Storage System Empowers Grid Flexibility Energy's new integrated solutions for photovoltaic power generation energy storage charging and testing. These solutions incorporate Case Sunwoda's flexible liquid cooling supercharging technology energy storage technology and intelligent testing technology providing
convenient supporting services to alleviate the energy replenishment anxiety of new energy vehicle owners in Zaozhuang City.In June 2024 the "Jinhua Wuyi 200MW/400MWh Grid-side Energy Storage Project" the largest grid-side independent energy storage project in
Zhejiang Province was successfully commissioned in a single phase marking the implementation of the first batch of large-capacity energy
storage projects in China. This project fully adopts Sunwoda's new Noah x2.0 liquid-cooled energy storage technology. Through this product Nanjing Park Photovoltaic-Storage-Charging Microgrid System
the energy storage system will be able to accept grid dispatching. The grid's capacity to integrate renewable energy can effectively alleviate Case
the intermittency and uncertainty from renewable energy such as wind and solar thereby enhancing the grid's flexibility and resilience. This
achievement lays a solid foundation for building a more stable and sustainable energy ecosystem. Sunwoda has established an integrated energy project in the second phase of the Nanjing Park factory combining photovoltaic power
generation distributed energy storage liquid-cooled supercharging and battery testing services into one system. The PV-Storage-Charging
Microgrid System effectively addresses the issue of insufficient distribution capacity through photovoltaic + energy storage peak shaving and
valley filling. Additionally the supercharging technology combined with Sunwoda's supercharging batteries enables a quick 10-minute
recharge helping to enhance charging speed reduce range anxiety and meet user charging needs supporting "zero-carbon" travel for park
users. The project is expected to generate approximately 24000 kilowatt-hours of electricity annually reducing carbon emissions by 21.6 tons.
33 34Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Zero Carbon Park Solutions End-of-Life Stage
Sunwoda comprehensively incorporates the concept of carbon neutrality throughout all aspects of park planning investment construction
management and operation. The Company has compiled the Sunwoda Zero-Carbon and Near-Zero-Carbon Park Construction and Operation Green Packaging Logistics and Recycling
Guidelines to standardize the construction and implementation of zero-carbon parks. Sunwoda is committed to driving local low-carbon
transformation and high-quality development through its zero-carbon park solutions. Sunwoda advances resource recycling and comprehensive utilization practicing green and low-carbon concepts in packaging logistics and
In 2024 Sunwoda reached a cooperation agreement with the government of Xinye County Henan Province to jointly develop a zero-carbon recycling. On the one hand the Company actively manages sustainable packaging materials and advocates low-carbon transportation of products;
industry park and promote the construction of energy storage demonstration projects supporting the zero-carbon development of local industrial on the other hand the Company is vigorously laying out a battery recycling network to create an intelligent recycling system for retired batteries
production. Furthermore Sunwoda and its subsidiaries have signed agreements for "Source-Grid-Load-Storage Integration" projects in areas such driving standardized development in the sector while advancing the industry sustainable development and growth in corporate economic benefits.as Pujiang Jinhua Boluo Huizhou Lishui Nanjing Shifang Deyang. These projects promote applications around zero-carbon park scenarios across
multiple regions and industries extending "energy storage +" applications and helping to achieve carbon reduction goals.Green Packaging and Logistics
Sunwoda "Near-Zero-Carbon Smart Park" in Huizhou Case To standardize internal packaging materials management Sunwoda has established a green packaging lifecycle management system
systematically advancing the low-carbon transformation of packaging materials in accordance with internal documents such as the Packaging
In Boluo Huizhou Sunwoda has built one of the region's first near-zero-carbon smart Design Specification. The Company follows the closed-loop management logic of "procurement-production-recycling" continuously optimizing
parks. The park features rooftop distributed photovoltaic systems energy storage power packaging development monitoring packaging materials usage during the production phase promptly identifying and resolving material waste
stations and distributed gas power generation equipment with internal combustion issues and advocating for the recycling and reuse of packaging materials.engine power generation capabilities complemented by a high-efficiency cooling machine In procurement Sunwoda prioritizes FSC (Forest Stewardship Council)-certified eco-friendly packaging materials and requires the EU RoHS Directive/
room utilizing water storage and charging piles. Through a digital platform integrated HF materials environmental certification labels ensuring that materials are non-toxic and harmless from the source. At the same time the Company
management and scheduling of "PV storage and charging" have been achieved reducing has established inventory classification and coding rules for easy identification tracking and statistical analysis by the system with each packaging
the park's overall energy consumption by 10%-20% with green energy accounting for category and specific material having a unique code. In the internal production stage Sunwoda prioritizes the use of PP material turnover boxes for
80% of total energy consumption. This achievement realizes the original research and intersection turnover which can be reused multiple times to minimize the loss of packaging materials.
development goal of "multi-energy complementarity and integrated optimization" creating
the region's first "near-zero-carbon smart park."
Deplasticization Packaging Solution for the Intelligent Hardware Division Case
In 2024 tailored to specific product characteristics the Company's Intelligent Hardware Division innovatively developed a de-plasticization
Sunwoda Lanxi Carbon Neutral Industrial Park packaging solution that substitute plastic components with biodegradable materials like paper-plastic inner trays and corrugated partitions. Case After six standardized tests (drop/vibration/temperature and humidity storage/burst resistance/static pressure/stacking tests) this solution
significantly reduces plastic usage per product while ensuring transportation safety.As the Company's first Carbon Neutral Industrial Park Sunwoda Lanxi Industrial
Park exemplifies its commitment to green development and efforts to achieve
low-carbon and zero-carbon goals. From its initial design Lanxi Industrial In addition Sunwoda actively builds a green smart logistics system prioritizing local procurement to reduce transportation distances and promote
Park has adhered to the concept of a garden-style low-carbon industrial park low-carbon transportation of products. In 2024 the Company independently developed the SLS intelligent logistics system. It achieves optimal
implementing green and low-carbon principles throughout the entire process loading rates in system allocation schemes through technical means resulting in dual breakthroughs in transportation route optimization and
from building materials and operation management to energy utilization and loading efficiency. Regarding the transition to new energy transportation vehicles the Company systematically implements the replacement of
green production lines. Since commencing operations in 2020 the park has conventional vehicles with clean energy alternatives such as electric heavy-duty trucks. In 2024 the Zhejiang production base achieved a significant
continuously optimized digital factory management and intelligent logistics milestone with the official launch of a new energy vehicle fleet on two core transportation routes from Lanxi to Suzhou and Changzhou substantially
construction establishing a green energy system of Source-Grid-Load-Storage reducing carbon emissions compared to traditional diesel vehicles and contributing to value chain decarbonization. In international logistics
Integration. In terms of energy-saving and carbon-reduction technologies a "Mainland-Hong Kong Truck Pooling + Sea-Rail Intermodal Transport" model was implemented with 100% of sea transport on certain routes
the park promotes water recycling rooftop distributed photovoltaic power converted to rail transport at the final delivery stage decreasing carbon emission intensity per unit of cargo.stations energy storage facilities and waste heat recovery among other
aspects. Among them the photovoltaic solar panels installed on the rooftops
of the park buildings can generate up to 6.3 million kilowatt-hours of electricity
annually. The recovery of waste heat from the production process can reduce
carbon emissions by approximately 4678 tons each year. Additionally the Park
introduces external renewable electricity renewable energy certificates and
carbon offsets to complement the energy storage system regulation achieving
100% green electricity coverage in the Park.
On March 26 2024 three wholly-owned subsidiaries within the Lanxi
Industrial Park (Zhejiang Liwinon Energy Technology Co. Ltd. Zhejiang
Sunwoda Electronic Co. Ltd. and Zhejiang Xinwei Electronic Technology Co.Ltd.) obtained PAS 2060 Carbon Neutrality Certification achieving "carbon
neutrality" in 2023.
35 36Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Recycling and Circular Economy At the technical level Sunwoda is replacing manual operations with machine automation to achieve an intelligent and flexible disassembly of end-
of-life power batteries. By innovating intelligent pre-treatment processes disassembly efficiency is improved and costs are reduced. The Company
In recent years driven by the global sustainable development concept policy standards for has developed innovative extraction processes to enhance material recovery rates simplify extraction procedures and lower costs. For example
Battery Production battery recycling have become increasingly stringent in both the international and domestic the Company uses leachate from recycled materials as the raw material to re-prepare precursors thereby avoiding unnecessary separation and
environments. Relevant policies such as the EU Batteries and Waste Batteries Regulation and purification steps. Additionally the Company actively develops cutting-edge battery recycling technologies strengthening the diversified application
the Interim Measures for the Management of Recycling and Utilization of Power Batteries for of both physical and hydro-metallurgical recycling. Through technologies such as vacuum low-temperature drying cathode material repair and
New Energy Vehicles have established higher requirements for the standardization and scaled regeneration and solid-phase extraction techniques it meets market demands for efficiency environmental protection rapid processing and low
development of battery recycling. energy consumption contributing to battery life cycle management.Battery material recycling In response to policy requirements and precisely aligning with market demands Sunwoda
Back into production as has established a material recycling company and strategically deploying battery recycling
feedstock Sunwoda's current battery recycling adopts the "1+N+X+Y" model. The Company actively deploys its recycling sector nationwide to align with the capabilities. The Company provides comprehensive services including lithium battery recycling relevant needs of the industrial chain. Based on advanced technology research and development it has formed a pyramid layout centered on large-
operations and lithium material monitoring meeting customer requirements for battery life scale regeneration factories local physical disassembly plants and recycling points radiating across the national battery industry chain.cycle management. Sunwoda aims to ensure 100% compliance with the recycling requirements
Small-scale of the EU Batteries and Waste Batteries Regulation for all batteries exported to the European
Closed-loop Union including SLI batteries LMT batteries industrial batteries and electric vehicle batteries.System for Lithium With its advanced recycling system and efficient intelligent disassembly technology the material
Battery
recycling company has achieved efficient utilization and recycling of end-of-life batteries.Sunwoda is committed to creating a large-scale ecological circular model strategically centered
on the circular economy model of "mining-production-use-recycling". This model forms a closed-
Battery life monitoring loop process from raw materials to recycling and reuse minimizing resource consumption and
Feedback loop for product environmental pollution. Starting with key metals such as nickel (Ni) cobalt (Co) and lithium
design optimization (Li) the Company employs chemical metallurgy technology to purify and synthesize precursor
materials required for battery anodes and cathodes processes them into electrode materials
and assembles them into standardized cell units. These are integrated into battery PACKs and
systems through modular design to meet end-user application needs. After battery system headquarter and physical dismantling
retirement precious metal components are recovered through physical disassembly and 1 R&D center 5 recycling plants 10 plants 50 recycling points
Battery Recycling chemical extraction technologies regenerated into precursor raw materials and reintegrated
into the production process achieving a closed-loop resource flow. Sunwoda is also committed
to developing a small circular system for lithium battery products forming a closed-loop
recycling industry chain through comprehensive management of battery design production Domestic R&D and Manufacturing Base
sales and recycling processes. This system deeply integrates the circular economy concept with
industrial development through vertical industrial chain collaboration and horizontal ecological
compliance requirements assisting the Company in transitioning from a linear economy to a Testing and R&D Center Manufacturing Base
sustainable circular economy. Jiangxi Physical Processing Base
Mass production achieved
Shandong Physica Base
Recycling Loop Chemical Metallurgy Mass production scheduled
Shandong NCM Wet Process Base
Raw materials Mass production scheduled
Co/Li/Ni Shenzhen Guangming R&D Center
Jiangxi LFP Wet Process Base
Mass production scheduled
Sunwoda Battery
PACK/Systems Lifecycle Ecosystem Precursor
Moreover in the battery recycling field Sunwoda actively participates in drafting multiple industry standards committed to enhancing the
transparency and standardization of the battery recycling industry. Through continuous technological innovation and practical exploration it injects
"Sunwoda vitality" into the sustainable development of the battery recycling industry and contributes "Sunwoda strength" to the future advancement
of green energy.Cell Cathode materials
3738
Battery Sales
Battery DesignSunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Pioneer R&D Innovation
To meet diverse customer needs and to create full-lifecycle green products Sunwoda continuously develops new quality productive forces enhances Three Key Areas of Innovation R&D
R&D capabilities improves innovation abilities and reinforces intellectual property protection. Through these efforts the Company meticulously
designs a series of green products and solutions that lead the industry towards green low-carbon development injecting new vitality into the
market.Comsumer Battery Power Battery
Forging R&D Sunwoda is customer demand-oriented and innovation-driven dedicated to providing Sunwoda continues to enhance the in-house production Sunwoda has launched integrated solutions such as CTP CTB greener faster and more efficient integrated solutions for new energy through its technological supply rate of battery cells in the consumer battery field. and CTC in the research and development of power batteries
Capabilities advantages and resource accumulation contributing to global green and low-carbon The Company has mastered core technologies such as to meet the diverse needs of end customers. The Company
development. fundamental charging and discharging protection and has introduced a "fast charging battery" compatible with
intelligent management of battery parameters through both 800V high voltage and 400V standard voltage systems
The Company possesses robust R&D capabilities with an advanced and comprehensive R&D independent R&D. Its independently developed power achieving mass production and commercial application
framework and management structure that ensures R&D innovation through substantial management system has already been applied to mobile of ultra-fast charging 4C battery products. With proven 5C
investment. In 2024 Sunwoda's investment in research and development reached RMB 3.33 phone batteries and notebook computer batteries. battery mass production and partnerships with leading
billion with R&D investment accounting for 5.94% of main business revenue 91.8% R&D Furthermore the Company has successfully developed automakers the company is positioned to dominate the
investment dedicated to clean technology development. Sunwoda has built an exceptional R&D high-capacity high-voltage mobile phone batteries a new high-power EV market as evidenced by its 6C battery rollout
talent pool. As of the end of the reporting period its R&D team comprised 8389 professionals generation of fast-charging PC batteries and silicon anode maintaining parity with industry-leading standards in lithium
including 134 doctoral and 1541 master's degree holders many of whom are recognized as consumer batteries with 5~10C fast charging capabilities. iron phosphate 4C batteries.high-caliber talents in Shenzhen.Externally the Company cultivates an open innovation ecosystem facilitates technological
exchange and cooperation and partners with various stakeholders to advance the clean energy Energy Techonolgy System
transition. Internally Sunwoda is committed to fostering a culture of innovation inspiring
employee creativity and collectively driving technological innovation and development Sunwoda's energy storage products are continuously upgrading with its leading product portfolio covering grid energy storage
contributing to a sustainable and harmonious future for all. residential energy storage and commercial & industrial energy storage. The Company has mass-produced 314Ah/280Ah batteries
which can ensure a reliable and safe operation of power stations and commercial energy storage facilities for up to 20 years.Additionally the Company is accelerating R&D in energy storage products and has reached comprehensive cooperation with
2022 2023 2024 Suzhou PotisEdge and Tongkun Holding Group in the fields of energy storage cells and distributed photovoltaic energy storage
and charging systems.R&D?investment（RMB?100?million） 27.42 27.11 33.30
R&D personnel No. (Person(s)) 8364 8442 8389
Proportion of R&D personnel (% ) 18.65 17.79 15.45
Optimizing the R&D Framework
Sunwoda has built a complete R&D system for the whole battery industry chain. The company has built five R&D teams for consumer products power
cell research institute and power battery system energy science and technology battery intelligent hardware energy storage research institute
and intelligent manufacturing focusing on the three major fields of consumer batteries power batteries and energy science and technology and
bringing a series of innovative achievements for the industry including “flash charge battery 3.0”.Sunwoda continuously enhances its innovation ecosystem construction and actively carries out innovative research and forward-looking exploration.The Company's innovation ecosystem encompasses the entire value chain from upstream materials to downstream recycling. Sunwoda also
integrates technologies such as green intelligent manufacturing and AI to empower new industrialization achieving energy conservation resource
efficiency productivity enhancement and profitability improvement in R&D across fields such as technological infrastructure industry applications
equipment products and support systems. In core areas such as material systems system structures and green manufacturing the Company
adheres to independent innovation and is committed to developing more competitive products and technologies.
39 40Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Consumer Battery R&D Team Energy Storage R&D Team
Centered on battery research and development for consumer products Centered on lithium-battery energy storage integration and
the team is responsible for the development of batteries and their control application technology the team is responsible for developing energy
systems power management systems and associated software as well as storage product solutions for various applications including grid
batteries for smart terminal products. Through independent research and energy storage industrial and commercial energy storage residential
development the team has mastered core technologies in battery safety energy storage network energy and smart energy. Additionally the
protection and monitoring as well as intelligent management of battery team provides solutions for two business scenarios: the "source-
parameters and holds leading-edge capabilities in the development and grid-load-storage cloud" integrated zero-carbon park and the "PV-
manufacturing of consumer lithium-battery modules within the industry. storage-charging-testing" integrated zero-carbon mobility. The
Its product range includes batteries for mobile phones and digital devices terminal products encompass industry-leading offerings such as
laptop computers power tools portable power banks electric bicycles large-capacity energy storage systems mobile energy storage
electric scooters motorcycles wireless earbuds robotic vacuum cleaners vehicles high/low-voltage stacked residential energy storage all-in-
smartwatches drones speakers and additional portable power banks. Five Major one units high-voltage backup power systems for data centers and
R&D Teams ultra-high-power flexible charging systems.Power Cell and Power Battery System R&D Team Smart Hardware R&D Team
Centered on advanced lithium-battery integration technology the team is Centered on lithium-battery-powered intelligent hardware production
responsible for providing battery PACK solutions for electric vehicles (EVs) technology the team is responsible for the development of production
of various types including HEV BEV EREV and PHEV for new energy vehicle lines for intelligent hardware products such as VR wearable devices
manufacturers. The team focuses on innovations in chemical systems all-in-one VR systems drones electronic pens smart speakers
structural design and ensuring safety throughout the entire lifecycle translation devices self-balancing scooters storytelling robots and
continuously researching and developing new technologies such as 6C/8C cleaning appliances for household use.flash charging silicon-based anodes lithium manganese iron phosphate
(LMFP) sodium-ion batteries solid-state batteries and lithium-metal
batteries. Its products encompass power cells power battery modules
battery management systems (BMS) and power battery systems.Intelligent Manufacturing R&D Team
Centered on lithium-battery production automation technology the
team specializes in the research and development of automated
Sunwoda's Self-developed "AI Intelligent Tuning System" Case production lines and equipment related to battery manufacturing.Their products encompass manufacturing lines for consumer
electronics lithium-battery cells automotive power cells modules
Sunwoda's self-developed "AI Intelligent Tuning System" has been recognized by the Ministry of Industry and Information Technology and and PACKs as well as associated laser welding equipment. The
designated as the national "Outstanding Case of AI Empowering New Industrialization". The system achieves intelligent tuning of production team boasts robust capabilities in full-factory automation design
equipment through data-driven deep learning enhancing the scientific rigor efficiency and reproducibility of the tuning process. This development integration and implementation.innovation demonstrates Sunwoda's substantial expertise and innovative capabilities in the field of artificial intelligence.
41 42Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Fostering an Innovative Ecosystem
Cultivating a Culture of Innovation
Sunwoda continuously strengthens its R&D innovation network. The Company has developed a diversified and open R&D model actively
collaborating with upstream and downstream partners and research institutions while continuously introducing external innovative resources to Sunwoda is dedicated to cultivating a culture of innovation by enhancing R&D momentum and encouraging employees to maximize their
stimulate innovation vitality. In the realm of industry-university-research cooperation Sunwoda has established partnerships with several well- innovative capabilities. The Company has established innovative incentive frameworks such as the Management Regulations on Innovation and
known universities to promote breakthroughs and innovations in related fields. the Management Regulations on the Reward for Technical Innovation to foster a favorable innovative atmosphere. Additionally Sunwoda has
introduced a series of awards including Patent Master Technology Star Improvement Award and Innovation Award to honor individuals and teams
Sunwoda has jointly established a postdoctoral innovation practice base with South China University of who have achieved outstanding accomplishments in their work this year thereby motivating and stimulating employees' innovative enthusiasm and
Technology and was approved by the Human Resources and Social Security Department of Guangdong promoting technological advancement.Province to set up a postdoctoral research workstation in 2013."Creating Boundless New Future" - Sunwoda's Second Innovation Competition
The Company's postdoctoral researchers maintain close ties with universities and research institutions. Case
Since the establishment of the workstation Sunwoda has collaborated with several prestigious domestic
Postdoctoral Research universities including Tsinghua Shenzhen International Graduate School South China University of On November 22 2024 the finals of Sunwoda's Second Innovation
Workstation Technology University of Science and Technology of China and Dalian University of Technology recruiting a Competition themed "Creating Boundless New Future" were held in
total of 85 researchers. Currently 78 postdoctoral researchers have completed their programs while seven the multimedia hall of Longtian School. The competition attracted
remain active. Among them 18 have been recognized as Category C high-level overseas talents in Shenzhen 104 innovative project proposals from various departments
and two as reserve high-level talents in Shenzhen. spanning multiple fields such as battery research and development
intelligent manufacturing material innovation and energy storage
Sunwoda has collaborated with universities to establish several joint laboratories. For example the Sunwoda- applications. The projects - categorized into product innovation
South China University of Technology Joint Laboratory for Advanced Energy Storage Technology mainly equipment innovation and material innovation - facilitated in-depth
focuses on cutting-edge energy storage technologies. Nankai University-Sunwoda Joint Laboratory for sharing and exchanges among subsidiaries.Advanced Battery focuses on core materials and technologies for sodium-ion batteries. Dalian University of
Technology Sunwoda Joint R&D Center concentrates on carbon neutrality innovation technologies among
Intellectual Property Sunwoda attaches great importance to intellectual property protection and has established others.Industry-University- a sound intellectual property management system to safeguard its brand reputation and
Research Cooperation As of the end of the reporting period Sunwoda has undertaken strategic research collaborations with Protection competitive advantage while preventing infringement on others' intellectual property.Platform numerous prestigious domestic universities and research institutions including Songshan Lake Materials The Company has formulated institutional documents such as the Management Regulations on
Laboratory Peking University Tsinghua Shenzhen International Graduate School Beijing Institute of Key Personnel Intellectual Property Risks the Management Regulations on Trademarks and the Management
Technology Sun Yat-sen University South China University of Technology Dalian University of Technology and
Regulations on Patent Acquisition implementing standardized management throughout the
Central South University. These partnerships span multiple technical domains including battery thermal safety Marketing and Project
entire process of intellectual property creation management application and protection. During
technology battery materials and hydrogen energy and other critical areas. Management Personnel
the reporting period Sunwoda revised the Management Regulations on Intellectual Property
Collaborative Project Won the First Prize Training Themes Rights to encourage technological innovation and its application and protection improve patent
Received the China Industry University- in the China Electricity Science and How to Protect Innovation with output quality and cultivate high-value patents.Research Cooperation Innovation Achievement Technology Award - Technology Progress Patents Patent Risk Prevention and The Company regards enhancing patent competitiveness as an important part of its future
Award Case Award Case Response Strategies strategy widely promoting patent awareness to ensure every employee thoroughly understands
the significance of patents to the Company's competitiveness. In 2024 the Company conducted
In March 2024 the 15th China Industry-University-Research The collaborative project "Key Technologies Key Personnel 43 specialized theme training sessions providing training on relevant themes for personnel
Cooperation Innovation Conference was held in Beijing and Equipment for Photovoltaic-Energy R&D Personnel in research and development intellectual property marketing and project management to
recognizing outstanding organizations and individuals Storage Thermal Hazard Protection" enhance their intellectual property literacy and professional capabilities.who made significant contributions to the participated by Sunwoda won the first Training Themes
deep integration of industry university prize in the China Electricity Science and Sunwoda is strengthening its construction of the patent risk prevention system. Regarding Patent Basics Utilization of Patent
and research in 2023. The project titled Technology Award - Technology Progress risk incident response mechanisms and processes the Company has established a rapid Information Patent Risk Investigation
"Key Technologies and Applications Award in 2024. The project led by Shanghai response and efficient emergency mechanism to ensure timely and effective measures in patent and Response High-Value Patent
of Composite Phase Change Materials Jiao Tong University and in partnership with disputes thereby minimizing potential losses. Concurrently the Company has achieved unified Mining and Layout in Technological
for Thermal Safety of Power Battery Sunwoda mainly addresses the thermal management and optimized allocation of internal and external resources ensuring that all Innovation High-Value Patent
Systems" jointly undertaken by Sunwoda hazards induced by the interactive effects resources can be fully utilized in patent risk prevention and control. Sunwoda also actively recruits Training
Guangdong University of Technology during the grid integration process of international expertise to improve its patent risk management and its global intellectual property
and other partners was awarded the photovoltaic-storage systems providing risk response capabilities."First Prize of the 2023 China Industry- safety assurance for the development of the Key Personnel During the reporting period the Company achieved outstanding results in intellectual property.University-Research Cooperation Innovation photovoltaic and energy storage industries. Intellectual Property The number of domestic and international patent applications continued to demonstrate
Achievement Award". Personnel strong growth. By the end of the reporting period the cumulative number of domestic patent
applications reached 7265 and the cumulative number of PCT international patent applications
Training Themes reached 148 with clean technology-related patents amounting to 5812. Furthermore the
The Company also strengthens cooperation with upstream and downstream partners. In 2024 Sunwoda Power Technology Patent Invalidity and Litigation in Company has also made significant achievements in domestic and international trademark
signed the Strategic Cooperation Framework Agreement on Solid-State Batteries with XTC New Energy Materials (Xiamen) the Battery Sector Fundamentals of strategy further consolidating Sunwoda's brand influence and market position with 321
Co. LTD. The agreement is aimed at establishing a deep strategic partnership taking advantage of both parties' market and Patents and Trade Secrets registered trademarks in China 64 international registrations and 8 Madrid System trademarks.technological strengths in their respective fields and promoting the industrialization and implementation of a series of new
43 energy battery materials for solid-state batteries. 4402
ECOLOGY
Environmentally Friendly
Green Manufacturing
Guided by its vision of "becoming a respected world-class new energy enter-
prise" Sunwoda is actively undergoing a green transformation continuously
strengthening its green development efforts and is committed to providing
greener faster and more efficient new energy solutions for society. Sunwoda
proactively responds to climate change practices clean production and contin-
uously promotes energy conservation and emission reduction across its entire
value chain striving to minimize environmental impact at every stage and
contributing to the global transition toward a cleaner more sustainable future.Key ESG Topics in this Chapter:
Addressing climate change
Environmental compliance management
Energy management and utilization
Resource management and circular economy
Emissions and waste management
Biodiversity conservation
Response to SDGs:Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Addressing Climate Change Significant Climate Risks and Opportunities
Sunwoda adhering to its core vision of green development is dedicated to the national goals of "carbon peaking and carbon neutrality". The
Company deeply embodies the development philosophy that "lucid waters and lush mountains are invaluable assets" and integrates climate change Acute Risks
The frequency and severity of extreme or acute weather events caused by climate change—
response into every aspect of corporate operations taking comprehensive measures to proactively explore innovative pathways for sustainable
such?as?hurricanes?extreme?rainfall?and?snowfall?floods?and?high?temperatures—may?threaten?
development.infrastructure?and?fixed?assets?such?as?the?manufacturing?facilities?of?Sunwoda?and?its?
subsidiaries. These events can lead to asset damage and depreciation increased maintenance
costs and insurance expenses supply chain disruptions and workforce constraints.Governance At?a?result?these?factors?could?compromise?the?Company’s?ability?to?fulfill?its?obligations?and?
2024
Sunwoda actively responds to the "carbon peaking and carbon neutrality" strategy and continuously cause?a?series?of?direct?or?indirect?financial?losses.Quarterly meetings of improves the construction of the "dual carbon"(carbon peaking and carbon neutrality) management
sustainable development: framework. A comprehensive "dual carbon" management system has been established based on Physical Risks Chronic Risks
2 the ESG governance framework with a three-tier management structure consisting of the Strategy times Chronic climate risks such as rising average temperatures prolonged droughts and rising sea and Sustainable Development Committee the Sustainable Development Management Committee levels?caused?by?climate?change?may?adversely?affect?the?physical?operations?and?equipment?
Meetings of Sustainable Development and the ESG Management Department. Through this system Sunwoda actively collaborates with lifespan of Sunwoda's production bases located in climate-vulnerable water-stressed and
Management Committee: specialized project teams and sustainability departments/teams across business sector to implement low-altitude areas. These impacts include increased utility costs higher cooling expenses and
climate change management responsibilities. The Company employs a top-down approach to drive
2 accelerated equipment deterioration under high temperatures leading to elevated operating times the achievement of its dual carbon goals. Members of Sunwoda's climate-related governance body costs and potentially undermine the Company's operational stability.
possess specialized expertise in climate policy and sustainable development. The company's Vice
Online?and?Offline?Sustainable? President?and?Chief?Sustainability?Officer?has?participated?in?multiple?international?climate?change?
Development-related Training conferences?and?academic?exchanges?providing?scientific?and?professional?guidance?and?decision- Against the backdrop of increasingly stringent global carbon reduction policies major
sessions: making support for the organization's climate governance initiatives. markets such as Europe North America and East Asia are accelerating their carbon neutrality
commitments. For example the EU Battery and Waste Batteries Regulation and other related
12 times To comprehensively manage climate change-related initiatives Sunwoda has developed internal policies impose stricter requirements on carbon footprint disclosure product recycling and
management frameworks such as the Sunwoda Action Plan for Carbon Peaking and Carbon Neutrality sustainable supply chains. Concurrently China's ongoing promotion of its "carbon peaking
and the Sunwoda Organizational Level Carbon Emission Management Manual based on strict and carbon neutrality" objectives will also impose more stringent regulations and higher
compliance with relevant laws and regulations such as the Energy Law of the People's Republic emission reduction pressures on the battery industry. Consequently companies in this industry
of China and the Environmental Protection Law of the People's Republic of China. These systems may encounter higher compliance costs for carbon emissions. In this evolving landscape
standardize?Sunwoda's?workflows?and?standards?for?climate?change?response?encompassing? Transition Risks Sunwoda's key customers are progressively raising their requirements for green manufacturing
the complete carbon management cycle from planning and implementation to monitoring and capabilities production processes and product carbon footprint disclosure. The Company must
improvement closely aligning with the Company's overarching goals of "carbon peaking and carbon therefore allocate additional resources to meet these compliance requirements and maintain its
neutrality" and enhancing its core competitiveness in the low-carbon economy. Each subsidiary also competitiveness in the green supply chain.actively responds to the Company's directives. For example Zhejiang Liwinon prepared and published
the Greenhouse Gas Emission Reduction Management Regulations in 2024 further providing practical
guidelines for Sunwoda's greenhouse gas management initiatives. Confronting climate change challenges Sunwoda as a key player in the new energy industry
can seize development opportunities by providing green products optimizing low-carbon supply
chains facilitating energy transition and driving technological innovation. These strategies
Strategy include developing lifecycle-based green solutions integrating renewable energy throughout
the?supply?chains?enhancing?energy?efficiency?and?increasing?climate?resilience.?The?Company?
As?a?company?committed?to?corporate?social?responsibility?and?sustainable?development，Sunwonda?firmly?believes?in?its?responsibility?and? continues to drive production process innovation develop next-generation battery technologiescapability to address climate change and achieve the goals of "carbon peak and carbon neutrality". Based on its overall business and sustainable and optimize intelligent battery management systems to further secure its competitive advantage
development?strategies?the?Company?actively?identifies?climate-related?risks?and?opportunities?formulates?climate?action?strategies?and?enhances? Transition Opportunities in the power battery and energy storage markets. In addition Sunwoda should actively enhance
climate resilience. At the same time guided by the Science Based Targets initiative (SBTi) and in conjunction with its own business situation and information transparency regularly disclose progress on climate change-related initiatives and
future development expectations Sunwoda proactively formulates science-based carbon targets and decarbonization pathways demonstrating its maintain communication and collaboration with stakeholders to jointly promote the development
commitment to emission reductions. of a green industrial chain in the future.Responses to Climate Challenges and Opportunities
Aligned with its "carbon peaking and carbon neutrality" goals Sunwoda has enhanced action plans in eight strategic areas: industrial layout energy
structure?energy?conservation?and?emission?reduction?carbon?trading?and?offsets?operational?management?digital?transformation?pollution?
and?carbon?reduction?and?capacity?building.?The?Company?has?identified?30?specific?measures?to?comprehensively?strengthen?its?climate?change?
response capabilities and assist in decarbonization across the value chain.
47 48Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Carbon Emission Management Sunwoda Value Chain Decarbonization Path
To?effectively?advance?its?climate?change?initiatives?Sunwoda?strictly?follows?the?Greenhouse?Gas? ☉ Emission Scope ☉ Emission Reduction Path
the carbon intensity per unit Protocol (GHG Protocol) and the relevant requirements of ISO 14064-1:2018 formulating internal
of industrial added value in management systems such as the Carbon Emissions Management Manual at the Organizational Electrification?of? Reduction of Fossil Fuel Selection of Low-Carbon
its regulated facilities saw Level. The Company regularly conducts greenhouse gas inventory assessments for Scope 1 2 and
Scope 1 Equipment Use Refrigerants and Fire Extinguishers
a year-on-year decrease of 3?across?the?Group?and?its?subsidiaries?and?entrusts?third?parties?for?independent?verification.?The?
practices set a benchmark for carbon management in the industry. In 2024 Sunwoda obtained a
9% total of 21 ISO 14064 declarations covering 100% of its stable operating production bases. Promotion of Energy- Procurement of Green
In addition to enhance the Company's ability to collect and calculate greenhouse gas emissions Scope 2 Saving Technological Electricity and Green
Development of Renewable
Upgrades Power?Certificates Energy Projectsand carbon footprint data Sunwoda organized the "Carbon Footprint Data Collection
a surplus in carbon quotas
Accounting and Application Training" in 2024 with 170 carbon management personnel engaged
8070 in this single training session to further solidify the foundation of the Company's carbon totaling Utilization of Renewable Support for Suppliers' Low- Replacement of New Energy management. Materials carbon Development Transportation Equipment
tons of CO2
At?the?same?time?Sunwoda?actively?fulfills?its?carbon?compliance?obligations.?Since?being? Scope 3
incorporated into the Shenzhen carbon market as a regulated entity Sunwoda has completed Optimization in Transportation Reduction in High-Carbon Transportation
carbon?verification?carbon?quota?trading?and?compliance?work?in?a?high-quality?manner?for?11? Efficiency Ratio
consecutive years. In the most recent compliance cycle the carbon intensity per unit of industrial
added value in its regulated facilities decreased by 9% year-on-year with a surplus of 8070 tons
of CO2 in carbon quotas. Both Sunwoda Electronic Co. Ltd. and Shenzhen Sunwinon Electronic
Co.?Ltd.?successfully?fulfilled?their?annual?carbon?compliance?requirements. Risk Sunwoda actively carries out climate change risk management and progressively incorporates it into the overall?risk?management?system?of?the?Company.?It?identifies?climate?risks?and?opportunities?with?significant?
Management potential?impacts?and?clarifies?their?specific?categories?and?effects?by?thoroughly?analyzing?its?business?
characteristics evaluating internal and external environments and incorporating expert insights. These are
Greenhouse Gas Emission Management Training categorized?and?evaluated?for?their?particular?effects?with?climate?risk?factors?integrated?into?corporate?risk?Case control mechanisms. Dedicated personnel maintain ongoing communication with business units to identify
and preliminarily assess climate-related risks regularly coordinating with the Company's risk management
In September 2024 Sunwoda organized the "Greenhouse Gas Emission Management Training" providing systematic training to relevant
responsible team. For key risks and opportunities Sunwoda comprehensively assesses their impacts on asset
departments on data collection and management considerations for greenhouse gas inventory and auditing and enhancing employees' data
value production and operation product services market layout etc. and then takes proactive measures to
management abilities and analytical awareness. The training also analyzed and illustrated the requirements related to the EU Battery and
improve risk management and capitalize on low-carbon opportunities.Waste Batteries Regulation helping employees further understand the latest industry dynamics.Indicators and As early as 2022 Sunwoda released the Sunwoda Action Plan for Carbon Peaking and Carbon Neutrality and has been progressively enhancing its dual carbon management system. Meanwhile as a member of
Goals the Science Based Targets initiative (SBTi) Sunwoda upholds its corporate vision of becoming "a respected
world-class new energy company" strictly follows the carbon peaking and carbon neutrality declaration
as well as the SBTi commitment to limit global warming to 1.5° C. The Company methodically executes its
operations according to established emission reduction pathways. In 2024 Sunwoda set emission reduction
objectives for Scope 1 Scope 2 and Scope 3 based on the 2023 data and internally cascaded these targets
with direct links to senior executive performance. Concurrently the Company conducts SBTi (bi-) weekly and
monthly meetings to track the progress of emission reduction work ensuring the implementation of various
management measures.Sunwoda's "Carbon Peaking and Clean Energy Transition Support for Social Carbon
Carbon Neutrality" Goals: Goals: Reduction Goals:
* To achieve operational-level * To add 1.38GWp of photovoltaic * By 2030 to help reduce social
carbon peaking by 2029 installed capacity before 2040 transportation carbon emissions
by 6.84 million tons
* To achieve operational-level * To achieve 100% renewable
carbon neutrality by 2050 energy use before 2050 * By 2040 to help reduce social
transportation carbon emissions
by 42.37 million tons
49 50Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
During the reporting period Lanxi Practicing Green Production
Industrial Park and Yichang Industrial
Park passed PAS 2060 carbon neutrality Environmental A robust environmental management system is central to a company's practice of green production. certification collectively obtaining 4 Sunwoda strictly complies with the Environmental Protection Law of the People's Republic of China and
certifications thereby becoming among Management other national laws and regulations and formulates internal environmental management systems such as the?first?industrial?parks?to?achieve?carbon? the Environment Health and Safety Manual the Environmental Pollution Control Management Regulations
neutrality. System and the Environmental Pollution Prevention Management Regulations in line with the relevant requirements
of ISO 14001 ensuring a standardized and orderly conduct of environmental management work. In 2024
Sunwoda's?25?major?subsidiaries?passed?ISO?14001?environmental?management?system?certification?
2023 2024 achieving 100% coverage across all stably operating production facilities. Other newly established or under-2024
Scope 1 Indicator (tons of CO2 equivalent) construction manufacturing facilities are also actively developing environmental management systems in 102959.97 110217.78
ISO?14001?certification? accordance with ISO 14001 requirements.Scope 2 Indicator (tons of CO2 equivalent) 880010.62 872270.66 coverage across mature To comprehensively monitor and evaluate its environmental management performance Sunwoda regularly
production facilities: conducts internal and external environmental audits. The Company has established objectives to ensure that
Scope 3 Indicator (tons of CO2 equivalent) 982970.59 982488.44 100% all production activities at mature operational manufacturing facilities fully comply with local environmental laws?and?regulations?and?obtain?environmental?management?system?certification.?Annually?the?Company?
GHG Emission Intensity (tCO2 e/million revenue) 20.54 17.54 performs an internal environmental audit that encompasses 100% of the production bases in all business
subsidiaries passed sectors to assess the environmental impact of production operations. To ensure the comprehensiveness and
7 provincial-level "Green objectivity of the environmental audits Sunwoda also regularly entrusts third-party organizations for external
Product Carbon Footprint Factory"?certification audits. These include at least one annual sampling audit of the environmental impact for each business
sector and a full-coverage audit across all business sectors every three years.In product carbon footprint management Sunwoda has introduced a digital carbon footprint accounting platform to collect and account for carbon 10 subsidiaries applied to Based on this foundation Sunwoda places great emphasis on the proactive management of environmental footprint data of key products. be designated as clean performance. The Company links the quarterly performance bonuses and year-end bonuses of personnel
production factories at the level of general manager and above to environmental performance allocating a 5%-10% weighting
to environmental performance indicators. Monthly and quarterly performance assessments motivate
Lithium Battery Carbon Footprint Background Database Case Received honors such as employees to implement environmental compliance measures."Zhejiang Provincial Green
Under the guidance and support of the Electronic Information Department of the Ministry of Industry and Information Technology China's Factory" "Huizhou Waste-Free To boost employees' awareness of environmental compliance and management the Company regularly
Lithium?Battery?Carbon?Footprint?Accounting?System?V1.0?has?been?officially?released.?As?a?participating?drafting?enterprise?Sunwoda?deeply? Factory" and "Guangdong organizes trainings for environmental engineers across all parks. These training sessions address
engaged?in?the?research?work?of?this?system.?This?represents?China's?first?carbon?footprint?accounting?system?for?a?specific?industry?subsector? Outstanding Contribution environmental?laws?and?regulations?environmental?factor?identification?system?internal?audits?and?other?
encompassing multiple critical elements including lithium battery carbon footprint calculation methodologies standard frameworks and Enterprise for Carbon Reduction relevant topics. Environmental engineers in each park will subsequently act as internal trainers responsible
background?databases?holding?significant?importance?for?advancing?research?on?lithium?battery?carbon?footprint?accounting?methods?and? and Pollution Control". for educating safety management personnel in each business unit to fully implement the core concepts and
enhancing service capabilities within the industry. operational processes of the environmental management system.Building upon this foundation participating drafting entities have developed the Lithium Battery Carbon Footprint Background Database
V2.0. Through this database enterprises can accurately assess their products' carbon emission levels formulate targeted emission reduction Energy Sunwoda?emphasizes?energy?efficiency?continuously?optimizing?the?energy?management?system?adopting?
measures and improve both the low-carbon performance and market competitiveness of their products. innovative energy-saving technologies and enhancing energy-saving awareness to improve energy
Management utilization?efficiency.Optimizing Energy Sunwoda strictly adheres to the Energy Law of the People's Republic of China the Energy Conservation
Management Law of the People's Republic of China the Renewable Energy Law of the People's Republic of China and other laws and regulations continuously improving its energy management system and implementing
Framework energy management practices company-wide. To systematically carry out energy conservation and carbon
reduction?initiatives?and?effectively?promote?the?Company's?"carbon?peaking?and?carbon?neutrality"?plan?
Sunwoda has established an Energy Conservation Committee chaired by the Chairman. This committee
drives?top-down?energy?efficiency?improvement?in?production?operations?and?oversees?energy-saving?
2024 technological?transformation?projects.?In?2024?Sunwoda?further?refined?the?organizational?structure?of?
its?Energy?Conservation?Office?by?establishing?specialized?teams?for?energy?conservation?management?
system?compliance?and?energy?conservation?technology?to?promote?refined?energy?management?and?
2024 17 empower business units to enhance lean production capabilities. On this basis Sunwoda regularly optimizes
and improves the construction of the energy management system according to the PDCA operation cycle
companies?certified?in?
Carbon?footprint?label?certification?in? principle?implementing?a?continuous?improvement?process?through?goal?planning?effective?procedural?
Obtained ISO 14067 product energy management
the Guangdong-Hong Kong-Macao implementation internal audit checks and systematic enhancements. In 2024 an additional 8 subsidiaries
carbon?footprint?certification:?10 products products systems.Greater Bay Area: 4 under?Sunwoda?passed?ISO?50001?energy?management?system?certification.
51 52Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Energy Management Department
Energy Conservation Committee Energy Management Group Energy Technology Group System Compliance Team
Vice Chairman Medium- and Long-Term Development(2024-2029)
Organization
Energy Management Department Adopt "1" organization "N" supports "N + 1" foundations strategy implementation plan
Business Units and Subsidiaries create energy-saving standardized lean and intelligent operation mode
Energy Conservation devision Energy System Energy ☉ Renewable energy use ☉ Energy-saving assessment system evaluation
Management Compliance Technology ☉ Energy management system ☉ Law?and?regulation?identification
Energy Conservation Executor Group Team Group ☉ Energy digitalization and intelligence ☉ Water-saving system
☉ Energy-saving training and publicity ☉ Supplier green production
Sunwoda proactively improves the construction of energy management systems and comprehensively Supports ☉ Energy-saving digital transformation ☉ Energy management center construction
2024 updates and upgrades the relevant policy documents for energy management. Currently Sunwoda ☉ Facility technology optimization
has formulated 18 energy management policies and procedures including the Energy Management ☉ Personnel technical development☉ Energy-saving excellent case promotion platform
Regulations and Energy Benchmarking and Performance Management Regulations providing
Energy Management System
standardized operational guidelines for the Company's energy management activities.Maturity Assessment:
To?effectively?advance?energy?management?initiatives?and?enhance?the?transparency?of?energy?system?
31 Sunwoda Energy Steward Energy Conservation Expert ISO 50001 Energy Business Units/Subsidiaries operations Sunwoda regularly organizes audits such as energy management system reviews internal Cockpit Platform Review Committee Management System
audits management reviews and external surveillance audits. In 2024 based on the Sunwoda Energy
Management?System?Maturity?Evaluation?Standard?(2024A?Edition)?the?Energy?Conservation?Office? Energy?Efficiency?Project?
conducted documentary and on-site evaluations of energy management practices across the Group's Deployment Platform Energy monitoring Project implementation
parks and business units (subsidiaries). This comprehensive assessment yielded 30 summary reports
outlining?improvement?opportunities?and?identified?339?on-site?improvement?opportunities?with?164? Foundations Technology Assurance Energy?efficiency?
prioritized as key improvement projects for 2025. Framewor management Industrial Benchmarking
At the same time Sunwoda prioritizes the establishment of energy-saving goals adopting a strategic approach that begins with long-term
objectives?to?efficiently?advance?energy?management?initiatives.?The?Company's?energy-saving?management?department?regularly?coordinates?
the?energy?demand?planning?of?each?business?unit?and?formulates?the?Group's?annual?energy-saving?goals?quantifies?energy-saving?gains?and?
ensures the rational allocation of energy resources. In addition Sunwoda incorporates energy management metrics into employee performance Energy Conservation and Efficiency Implementation
evaluations?promoting?efficient?energy?management?through?a?systematic?evaluation-based?energy-saving?management?assessment?framework.?
In 2024 Sunwoda released the Energy Conservation Assessment Management Measures comprehensively upgrading its energy-saving assessment Sunwoda embraces the operational philosophy of "strengthening energy-saving management in manufacturing promoting energy-saving
standards and conducting a comprehensive assessment of employees and teams based on three key metrics (intensity total consumption and technological?transformation?and?using?digital?technologies?to?improve?factory?energy?efficiency".?The?Company?constantly?focuses?on?annual?energy?
energy-saving?amount)?and?five?dimensions?(energy-saving?goals?energy-saving?compliance?management?effectiveness?improvement?initiatives? conservation targets through multiple measures to comprehensively promote the implementation of energy-saving and consumption reduction work
and monitoring practices). Meanwhile based on its energy-saving management assessment framework Sunwoda has established a performance from dimensions such as energy information platform construction equipment upgrades technology optimization and organizational training.contract assessment mechanism that assigns a 5%-10% weighting to energy performance indicators further strengthening the assessment incentive In 2024 Sunwoda implemented an energy monitoring and visualization platform in accordance with ISO 14064 standards achieving real-time
effect. monitoring?verification?tracking?and?feedback?of?energy?consumption?data?providing?precise?data?support?for?energy-saving?and?consumption-
reduction?efforts.?This?centralized?energy?management?system?has?formed?a?hierarchical?structure?with?the?Group?headquarters?as?the?primary?
Medium and Long-Term Strategic Planning Goals for Energy Conservation control center and subsidiaries/business units as sub-control monitoring hubs capable of executing 24-hour data energy monitoring for key energy-
consuming equipment workshops etc. to optimizing energy allocation and reduce unnecessary energy consumption.
2024 2025 2026 2027 2028 2029 To?ensure?the?efficient?advancement?of?energy-saving?and?consumption-reduction?Sunwoda?has?integrated?the?Group's?technical?talent?resources?
Support established an Energy Conservation Project Review Expert Committee and issued the Management Regulations for the Energy Conservation Review
Base Year 4% year-on- 4% year-on- 4% year- 3% year- 3% year- Sunwoda to Expert Committee. This Expert Committee is responsible for providing comprehensive support in project technology evaluation management system year reduction year reduction on-year on-year on-year
achieve carbon construction?and?energy-saving?standard?development?for?various?parks?and?business?units.?This?initiative?aims?to?effectively?identify?evaluate?and?in energy in energy reduction reduction reduction
peak by 2029 implement various energy-saving technological transformation projects in parks and business units ensuring the smooth implementation of projects. intensity intensity in energy in energy in energy On the other hand it strategically optimizes the Company's layout of the energy-saving and emission-reduction framework providing strong support
intensity intensity intensity for?Sunwoda's?sustainable?development?efforts.Building on its systematic energy management system Sunwoda has also established a strategic energy-saving model of "1 Organization N During the reporting period Sunwoda completed improvements on 215 energy saving projects of which 83 energy-saving technical plans were
Supports?N?+1?Foundations"?which?realizes?the?scientific?use?of?data?standardized?operation?of?energy?saving?and?integrated?application?of? formulated?and?132?energy-saving?projects?were?identified?with?an?annual?power?saving?of?66748000?kWh?a?saving?of?8203.3?tons?of?standard?
technology and promotes the company to reduce the energy consumption of production and operation cost in all aspects and to build a customer- coal and a reduction of carbon dioxide emissions of 35817 tons.satisfied?green?and?low-carbon?production?supply?chain.
53 54Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
2024 Goals Completion Status Sunwoda places a high priority on energy saving awareness and actively conducts energy-saving training and activities for employees. The Company
has formulated the Individual Energy Conservation Management Regulations to provide practical direction for environmentally responsible behavior
Energy-saving projects (management + technological transformation) ≥ 260?items 215items and encourage the practices of green concepts. A specialized empowerment training framework on energy-saving systems processes technology
Decreased energy costs RMB 30 million RMB 49.3936 million and compliance is established at the same time with energy-saving awareness training periodically. In 2024 Sunwoda delivered three energy-
saving empowerment training sessions for managerial-level personnel reaching 271 participants across 22 business units. The company regularly
Saved electricity 41.0959 million kWh 66.748 million kWh publishes energy-saving publicity tweets through the enterprise public number recognizes outstanding energy-saving employees and raises the
awareness of energy-saving among employees.Saved standard coal 5050.68 tons 8203.3 tons
Year-on-year reduction in the Group's energy intensity 4% 4.02%
Year-on-year reduction in the Group's energy consumption 6% 11.11%
2024 Key Energy-Saving Technical Transformation Projects Energy Conservation Awareness and Training Lighting Renovation
Replacement of Central Air Conditioning Equipment Hosts the "Green Transformation Energy Efficiency Campaign" Week Case
The?Company?replaced?conventional?equipment?with?high-efficiency?magnetic?bearing?centrifugal?chillers?to?enhance?the?
cooling capacity. Currently the newly installed water-cooled units have a cooling capacity of 1400 tons of refrigeration To?deepen?energy-saving?efforts?Sunwoda?encourages?
which is expected to achieve an annual electricity saving of 2.48 million kWh equivalent to 304 tons of standard coal and all employees to actively participate in energy-saving and
1378 tons of CO2 emissions reduction. emission reduction actions. In June 2024 Sunwoda's Energy
Conservation?Office?organized?the?"Green?Transformation?
Central Air Conditioning Intelligent Control System Renovation Energy?Efficiency?Campaign"?Week?aligning?with?the?
The Company adopts new intelligent control software to replace the outdated central air conditioning system achieving national energy-saving promotion week theme and the
variable frequency operation of the water pumps and smart chiller sequencing which is expected to save 1.6 million kWh of Company's energy-saving management needs. Through
electricity annually equivalent to197 tons of standard coal and 890 tons of CO2 emissions reduction. diverse measures such as poster displays and prize-Equipment winning quizzes employee participation and awareness
optimization Lighting Renovation of?green?actions?were?effectively?enhanced.?This?event?
In?2024?the?Company?upgraded?to?high-performance?LED?lighting?systems?introducing?35387?sets?of?high-efficiency? covered 18 parks and 28 business units/subsidiaries across
lighting?units?achieving?low?energy?consumption?while?ensuring?superior?luminous?efficacy?and?quality.?It?is?expected?to? the Group attracting over 30000 participants.save 3.18 million kWh of electricity annually equivalent to 390 tons of standard coal 1771 tons of CO2 emissions reduction. Transition to Clean Energy
Winter Fresh Air Cooling as Alternative to Air Conditioning
The transition to clean energy is both an inevitable trend and is crucial for enterprises amid the global advocacy for sustainable development and
The Company utilizes economizer mode operation by deactivating air handling unit coil circulation and fully opening active response to climate change. As an industry leader Sunwoda actively responds to the call for clean energy transition and continuously explores
the?outdoor?air?dampers?effectively?reducing?the?air?conditioning?energy?consumption.?Currently?the?Company?has? the comprehensive application of clean energy in the production process.implemented 10 related measures expecting to save 2.5 million kWh of electricity annually equivalent to 307 tons of
standard coal and 1392 tons of CO2 emissions reduction. The Company will gradually increase the proportion of clean green energy such as wind and solar power promoting a low-carbon energy
consumption structure. In 2024 the Company's green electricity usage accounted for 29.71%.1
Reduced Pressure Operation of Chilled Water System
In green electricity trading to ensure a stable supply for the Group's electricity needs while meeting customer demand for green electricity Sunwoda
By increasing the local booster pump the supply pressure of the chilled water to the anode mixing workshop tanks is actively?optimizes?its?electricity?trading?strategy.?Through?precise?market?analysis?and?flexible?trading?methods?the?Company?effectively?mitigates?
reduced from 0.6 MPa to 0.5 MPa eliminating the need for one chilled water circulation pump. It is expected to save 2 price volatility risks supporting its steady progression in clean energy transition.million kWh of electricity annually equivalent to 246 tons of standard coal and 1114 tons of CO2 emissions reduction.Technical Waste Heat Recovery from Air Compressors 2024
Improvement Waste heat recovery units were installed to the air compressor stations to recover waste heat for heating tap water to 75° C
with a recoverable capacity of up to 1070 kilowatts. This reclaimed thermal energy can further be applied to replace part of Total installed capacity of Self-consumed photovoltaic
the?heating?for?dehumidifiers?and?preheating?of?fresh?air?for?ovens?effectively?reducing?energy?consumption?and?meeting? photovoltaic power:2 94.10 MW electricity： 94800 MWh
heating power requirements.Energy Saving through Parallel Operation of Transformers Total purchased green electricity Proportion of green
MWh
The?parallel?operation?of?transformers?effectively?reduces?the?waste?of?energy?caused?by?transformer?no-load?loss.?At? and?green?certificates： 336094 electricity usage: 29.71%
present the company has stopped operation of 10 transformers is expected to save 430000 kWh of electricity saving 53 1Proportion?of?green?electricity?usage=?(Total?purchased?green?electricity?and?green?certificates?+?Self-consumed?photovoltaic?electricity)?/?(Total?external?electricity
tons of standard coal reducing carbon dioxide emissions of 295 tons.procurement + Self-consumed photovoltaic electricity)
2Photovoltaic power installed capacity and photovoltaic power generation encompass both utility-scale photovoltaic systems and distributed photovoltaic
installations.
55 56Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Water Resource Management Pollutant Sunwoda prioritizes pollutant and waste management strictly adhering to relevant laws and regulations on pollution discharge management and continuously improving the emissions of exhaust
gas wastewater and waste. Sunwoda formulated and publicly released the Waste Emission Reduction
Sunwoda maintains continuous oversight of water consumption during the production process and Waste Target of Sunwoda to clarify the emission targets and emission reduction pathways for various
2024 and actively promotes water resource management. Strictly abide by the relevant laws and Management pollutants and wastes for all subsidiaries by 2024 providing guidance for emission reduction work.regulations such as the Water Law of the People's Republic of China and the Water Conservation
Regulations (2024) following the PDCA principle the company formulates internal systems
2 subsidiaries were awarded such as the Management Regulations on Water Conservation and closely monitors water usage the title of "Water-Saving activities in daily operations.
Enterprises". Currently Sunwoda relies exclusively on municipal water supplies for all its water usage mainly
used for employee domestic consumption canteen operation and production processes like Exhaust Gas Emission Wastewater Emission 2024 Waste Emission Target
boilers steam generation HVAC systems process cooling towers and manufacturing mixing Target Target
The amount of general waste generated per unit of production is
processes.?During?the?reporting?period?the?Company?had?no?significant?direct?or?indirect?impact?
on local water resources in its practices from water withdrawal consumption discharge to 100% 100% reduced by 5% compared to the previous year
storage. Compliant Emissions Compliant Emissions The amount of hazardous waste generated per unit of production
is reduced by 5% compared to the previous year
Completed Completed Completed
2024 Water Resource Management Measures and Outcomes
Exhaust Gas Management
Project Specific Measures Outcomes
Sunwoda strictly complies with the Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution and the
The Company recovered and reused EDI-concentrated Comprehensive?Emission?Standards?for?Air?Pollutants（GB?16297-1996）as?well?as?other?laws?regulations?and?industry?standards.?The?Company?
water by returning it to the raw water tank to optimize actively carries out air pollutant control work within its operational scope strictly controls air pollutant emissions during production operations and
Ultrapure Water System efficiency.?The?remaining?wastewater?was?directed?to? 240 their impact on the surrounding environment continuously enhances its environmental competitive advantage and establishes a model for green cubic meters of EDI
Wastewater Recovery the boiler cooling pool and additional water storage development.tanks booster pumps and pipelines were installed to concentrated water recovered monthly.ensure the completeness of the wastewater recovery Following the requirements of the environmental impact assessment documents and the local ecological environment bureau Sunwoda regularly
infrastructure. inspects and maintains the exhaust gas facilities timely replaces activated carbon and ensures gas emission standards. The Company also regularly
engages?qualified?third?parties?for?on-site?testing?and?atmospheric?pollution?emission?testing?reports?issuance?to?ensure?compliance?with?relevant?
standards. In 2024 the results of the third-party testing of Sunwoda's atmospheric pollutants meet the approval of the environmental impact
assessment and statutory emission standards.The Company has installed new RO concentrated
Concentrated Water water collection tanks with dedicated piping to VOC 600 cubic meters of Main Exhaust Gas Treatment Facilities and Methods
Recovery and Utilization emission treatment scrubbers. water saved monthly.Main Exhaust Gas Categories Main Treatment Methods Main Testing Indicators
Paint Spray Emissions Cyclone Tower + Spray Scrubber + Dry Filtration + RTO
Coating Waste Gas Condensation Recovery + Zeolite Rotor Adsorption
Achieved 99.09% water reuse Injection Process Emissions Wet Scrubbing + Activated Carbon Adsorption
41 water circulation pumps have been installed at rate through circulation pump systems
Circulation Pump Shilongzai Park to enhance water resources recycling Dispensing / Coding / Silk Screen
Installation with daily recycled water volume of efficiency. Printing / Pad Printing / Injection Activated Carbon Adsorption Non-methane Total
79878.0 cubic meters. Molding Hydrocarbons
Welding Fumes Bag Filter Collection / Dry Filtration + Activated Carbon Adsorption VOCs Particulate
Matter SO NO
Wet Scrubbing + Dry Filtration + Activated Carbon Adsorption 2 X
Organic Waste Gas H S NH
Concentration + Thermal Desorption and Catalytic Oxidation 2 3
Water-Saving Fixtures Outdated faucets have been replaced with water- Water-saving devices improve water
and Automatic Sensor saving?fixtures?equipped?with?automatic?sensors?to? efficiency?by?2/3 compared to Particulate Matter Gravity Precipitation / Bag Filter Collection / Pulse-Jet Cleaning
Installation effectively?reduce?water?consumption. traditional faucets. Boiler / Thermal Oil Heater Exhaust Low-NOx Combustion
Sewage Treatment Plant Odor Emissions Wet Scrubbing + Biotrickling Filter
57 58Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Exhaust Emission Reduction Measures Main Wastewater Treatment Facilities and Methods
Main Wastewater Categories Main Treatment Methods Main Testing Indicators
Principle of Comprehensive The exhaust collection system is designed comprehensively based on factors such as gas properties
and Classified Collection flow?rate?concentration?generation?amount?and?air?velocity?to?ensure?effective?exhaust?capture.Domestic Sewage A2O?+?Artificial?Wetland
Prioritize Process Equipment with The polluted gases collected by the gas hood are transported through pipelines to the Fenton Oxidation + A3O + MBR pH chemical
Integrated Emission Capture and purification?device?for?treatment?and?then?discharged?after?meeting?standards?ensuring?high? oxygen demand
Advanced Treatment Systems collection?efficiency?and?minimizing?fugitive?emissions. Fenton Oxidation + A2O + Multi-stage Filtration + RO 5-day biochemical
Sand Filtration + Carbon Filtration + Security Filtration + oxygen demand suspended matter
Implement Containment Solid waste (including hazardous waste) containing volatile materials or odors is stored and Industrial Wastewater Ultrafiltration?+?RO total nitrogen total
Strategies for Emission Sources temporarily stored in a closed design and the waste gas is discharged after being collected and Grating + Regulating Tank + Coagulation Sedimentation phosphorus etc.including closed collection treated to meet standards. The waste gas generated by sewage collection and treatment units + AO + MBR + Fenton + Filtration
purification and other (such as anaerobic pools aeration pools sludge pools etc.) is collected in a closed manner and
operational measures discharged?after?effective?treatment?measures. Regulating Tank + Mixed Sedimentation + Fenton Oxidation +
Mixed Sedimentation + A2O + MBR
Zhejiang Winone Coating Waste Gas Treatment Case
To?effectively?reduce?the?emissions?from?spraying?coating?processes?(containing?paint?mist?particles?and?VOCs)?and?associated?waste?gases? Boluo Park Achieves Zero Industrial Wastewater Discharge Case
Sunwoda's subsidiary Zhejiang Winone has introduced self-cleaning anti-clogging RTO treatment and zeolite rotor adsorption technology to
treat the two types of waste gas separately. Through the combination of adsorption treatment and high-temperature oxidation these systems In Sunwoda's Boluo Park a self-built industrial wastewater station and water reclamation facility have been established to provide a
ultimately convert pollutants to water and carbon dioxide. comprehensive industrial wastewater treatment and recycling system. After being processed through the park's industrial wastewater station
the?industrial?wastewater?enters?the?reclaimed?water?facility?for?advanced?purification.?This?treated?wastewater?is?then?utilized?in?the?cooling?
The self-cleaning anti-clogging RTO device has undergone multiple third-party environmental assessments since its implementation. Its tower makeup of air conditioning systems enabling secondary resource utilization and ultimately reaching zero industrial wastewater
emissions consistently meet the current waste gas emission standard requirements with non-methane hydrocarbon concentration generally discharge.below 20 mg/m3 and as low as 5 mg/m3.Waste Sunwoda strictly complies with the Law of the People's Republic of China on the Prevention and Control of Environmental
Wastewater Management Management Pollution by Solid Waste and other national laws as well as the Standards for Pollution Control in the Storage of Hazardous Waste and other industry standards. It has established management systems including the Regulations on
Abiding by the Law of the People's Republic of China on Prevention and Control of Water Pollution and other relevant laws Sunwoda strictly manages the?Management?of?General?Waste?and?Implementation?Rules?for?Solid?Waste?Control?based?on?classification?standards?
the discharge of industrial wastewater and domestic sewage by building sewage treatment facilities and conducting regular monitoring to ensure such?as?the?Classification?and?Codes?Catalogue?for?Solid?Waste?and?the?National?Catalogue?of?Hazardous?Waste?
compliance with the wastewater quality standards. The Company's 3C battery energy storage products and PCB board manufacturing facilities do clarifying?the?requirements?for?waste?classification?collection?storage?transportation?and?disposal?while?continuously?
not generate industrial wastewater discharge. The cell production plants are equipped with dedicated sewage treatment stations achieving 100% promoting?waste?reduction?and?disposal?efforts?practicing?the?concept?of?green?development.collection?of?production?and?domestic?sewage?and?100%?compliance?for?effluent?water?quality.To continuously reduce the environmental impact of waste emissions annual waste reduction targets are set and
The Company's industrial wastewater treatment facilities are operated and managed by professional environmental service providers with daily delegated to various business units and sectors each year with progress tracked to ensure goal achievement.oversight conducted by the subsidiary's safety department to ensure the normal operation of wastewater treatment equipment. In accordance with
the?environmental?impact?assessment?requirements?the?Company?regularly?contracts?qualified?third?parties?for?on-site?testing?and?sewage?testing? For hazardous waste reduction management Sunwoda takes targeted actions through multiple dimensions such
reports with results consistently meeting the standards set by the environmental impact assessment approvals and relevant regulations. as?material?selection?process?optimization?and?employee?training?to?advance?waste?management?efforts?through?
various initiatives. In terms of material selection Sunwoda prioritizes the use of green and environmentally friendly raw
The company's domestic sewage is mainly generated by the employees' life. Living sewage through the plant septic tank grease trap and other materials and auxiliary materials to reduce the generation of hazardous waste. In terms of manufacturing processes
water?treatment?facilities?according?to?the?requirements?of?the?EIA?approval?for?reuse?or?access?to?municipal?sewage?official?website;?part?of?the?living? Sunwoda continuously optimizes production techniques to minimize raw materials and auxiliary materials consumption
sewage?by?the?park?life?sewage?station?qualified?treatment?for?reuse?in?the?area?such?as?for?green?watering?toilet?flushing?water. to reduce waste generation. In addition the company requires relevant personnel to participate in hazardous waste
training to enhance employee safety awareness.Cathode Waste Liquid Recovery Case For general waste management Sunwoda promotes waste reduction and recycling through system development
Sunwoda has classification?control?and?awareness?enhancement.?From?a?procedural?perspective?Sunwoda?continuously?standardize?
In lithium battery cell production NMP (N-Methyl-2-pyrrolidone) cleaning solution is required for equipment maintenance to clean the cathode obtained the on-site?waste?recycling?efforts.?At?the?same?time?the?Company?has?established?an?extended?producer?responsibility?
slurry mixing equipment and material transfer pipelines generating NMP waste liquid known as cathode waste liquid. highest level framework?incorporating?waste-generating?units?into?a?unified?management?for?recycling?and?reuse?emphasizing?the?
Sunwoda collaborates with upstream and downstream industry chain partners to conduct green recovery and reuse of cathode waste liquid of platinum accountability?of?producers?for?proper?waste?handling.?In?addition?Sunwoda?insists?on?strengthening?the?classification?
by?extracting?high-value?clarified?new?NMP?liquid?from?the?cathode?waste?liquid?for?reuse?in?battery?production.?All?discarded?raw?materials?can? certification?for? control?of?general?waste?establishing?a?comprehensive?classification?operation?system?from?production?to?disposal?
be?recycled?and?do?not?enter?the?environment?maximizing?resource?classification?and?recycling?and?also?creating?economic?and?environmental? zero waste to thereby?improving?the?recycling?rate?of?general?waste.?To?effectively?boost?employees'?awareness?of?waste?recycling?
benefits. landfill. Sunwoda organizes awareness campaigns through multiple channels. In 2024 Sunwoda carried out a cross-
departmental?resource?sharing?activity?for?idle?office?furniture?to?improve?the?Company's?waste?utilization?rate.
59 60Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Main Waste Management Methods
Type Main Waste Categories Processing Cycle Treatment
Full-process control is adopted from raw "Green Future Together" Themed Series of Activities Case
and auxiliary materials to hazardous waste
Waste contaminated media (rags generation positions and then to hazardous During Sunwoda's sixth cultural festival the Sustainable
gloves) waste empty containers waste collection storage and transportation Development Center and the Corporate Culture Department jointly
(adhesive bottles empty alcohol barrels) Stored in designated with records in each link and transfer manifests initiated the "Green Future Together" themed series of activities
waste organic solvents (laboratory according to national regulations
Hazardous hazardous waste employing a dual-track approach that includes two online
reagents) waste acids (for experiments)
waste storage with processing The?Company?signed?contracts?with?qualified? interactions?and?three?offline?park?activities?fully?stimulating?
spent mineral oils (for environmental completed within 1-3 hazardous waste disposal facilities with participants' enthusiasm for low-carbon. The activities span
facility maintenance) spent activated months regularly scheduled collection and disposal all domestic parks and bases of Sunwoda with a wide impact
carbon (for exhaust gas facility by?certified?third-party?service?providers? attracting enthusiastic participation of over 1000 employees.replacement) etc. prioritizing?resource?recovery?and?beneficial? In addition to encourage employees to actively practice a low-
reuse where applicable carbon lifestyle Sunwoda has also introduced a low-carbon travel
Household garbage Business contracts have been signed with incentive program allowing employees to have their exclusive
was collected and suppliers for the disposal of general waste "low-carbon planet" and actively use green low-carbon travel
disposed of daily with and household garbage. Professional methods in daily life in line with the operational guidelines to
periodic collection and waster management service providers were accumulate corresponding carbon reduction credits contributing
General
General waste and household garbage recycling of general responsible?for?the?classification?and?treatment? to a green low-carbon home. The online activity ran for 15 days
waste
waste based on of general waste and household garbage. encompassing all Sunwoda Group bases with participation from
Event venue
generation volumes Regular?trainings?on?waste?classification? over one thousand employees.occurring no less than business knowledge were organized for
three times weekly cleaning?staff
Fostering a Low-carbon Culture
Through?the?systematic?implementation?of?green?office?initiatives?Sunwoda?deeply?integrate?sustainable?development?concepts?into?daily?
operations?comprehensively?promoting?environmental?practices?including?energy?conservation?resource?efficiency?and?paperless?office?procedures.?
In daily communication the Company encourages remote conferences to reduce unnecessary business travel. In business document communication
the Company vigorously promotes electronic contracts and invoices and encourages online document signing and online cost settlement in business
transactions thereby reducing paper usage. In meeting scenarios the Company encourages electronic documents to replace traditional paper
meeting?materials?enhancing?office?efficiency?while?effectively?avoiding?paper?waste. Battery recycling experience Cultural Festival Activities
Additionally Sunwoda actively fosters a sustainability-oriented workplace environment by integrating green culture into corporate operations. The
Company continues to promote diverse employee activities themed around green culture including knowledge competitions video contests and
green travel challenges to raise employees' awareness of green low-carbon and environmental protection and encourage practical implementation
of low-carbon principles."Starting from Sunwoda Carbon-Reduced Future" Earth Day Hiking Activity Case
In May 2024 in response to Earth Day and in response to the global theme of "Planet vs. Plastics" Sunwoda's Sustainable Development Center Conserving Biodiversity
Trade Union and Party Committee jointly held the "Starting from Sunwoda Carbon-Reduced Future" hiking activity at Shiyan Lake Wetland
Park?in?Bao'an?District?Shenzhen?attracting?over?200?participants.?In?total?the?Company?successfully?offset?3?tons?of?greenhouse?gas?emissions? Sunwoda?has?always?placed?a?high?priority?on?biodiversity?conservation?and?firmly?observes?ecological?protection?red?lines.?During?site?selection?the?
from the activity through the United Nations Clean Development Mechanism (CDM) voluntary emission reduction project achieving "carbon Company uses a comprehensive site evaluation framework to avoid setting up production bases and operational points in nature reserves or areas
neutrality"?for?the?event?and?obtaining?certification?for?the?carbon-neutral?event. with rich biodiversity outside protected zones. Currently all business units and production bases of Sunwoda are located in established industrial
parks on land designated for industrial and commercial use.Sunwoda?strictly?follows?the?State?Council?General?Office's?Opinions?on?Further?Strengthening?Biodiversity?Protection?and?other?relevant?laws?and?
regulations actively responds to the Ministry of Ecology and Environment's China's Biodiversity Conservation Strategy and Action Plan (2023-2030).The?Company?systematically?reviews?its?production?and?operational?processes?and?identifies?potential?risk?factors?to?minimize?negative?impacts?on?
biodiversity?from?greenhouse?gas?emissions?and?pollutants.?During?the?reporting?period?no?significant?biodiversity?impacts?were?identified?in?any?of?
Sunwoda's production and operation products and services.Photo from the Hiking Event Photo from the Hiking Event
616203
ACCOUNTABILITY
Excellence in Governance
Pursuing Perfection
Sunwoda strictly complies with the laws and regulations of China and other
countries where the Company does business and fully adheres to various
international business standards and practices. The Company achieves efficient
management through top-notch corporate standards. With a product culture
centered on ultimate quality and safety Sunwoda safeguards the health and
safety of its customers. By reshaping the R&D chain production chain and
supply chain with information technology and intelligent systems the Company
is committed to leading the entire industry toward a greener and better future
in renewable energy.Key ESG Topics in this Chapter:
Robust governance
Anti-corruption and business ethics
Information Security and Privacy Protection
High-quality products and services
Response to SDGs:Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Ensuring Stable Operations Directors and Board of Directors
The Company values the construction of the Board of Directors and continuously optimizes its governance structure continuously improves the
Sunwoda strictly adheres to all applicable laws and regulations continuously improving its corporate governance structure with clearly defined operational mechanism of the Board of Directors enhances information communication and supervisory functions and regularly conducts training
responsibilities close interdepartmental coordination and efficient operations. The shareholders' meeting fully safeguards shareholders' rights and exchanges for directors to improve their governance competencies.and interests and deliberates on significant matters. The Board of Directors acts diligently and responsibly with specialized committees to promote Sunwoda emphasizes the diversity independence and effectiveness of the Board of Directors. In 2024 the shareholders' meeting reviewed and
strategy implementation. The Board of Supervisors actively fulfills its oversight duties. There is close collaboration smooth information flow and approved the Proposal for Resignation and Eligible By-election upon Expiration and Supplementary Election of Independent Directors adding one
efficient operations across all levels. female independent director. Currently the Board of Directors consists of seven directors including three independent directors. The seven current
directors of the Company possess extensive expertise and experience in management accounting and law.Sunwoda has established four specialized committees: the Strategy and Sustainable Development Committee the Remuneration and Appraisal
Corporate Governance Committee the Audit Committee and the Nomination Committee. Each specialized committee has at least two independent directors responsible for
related work. Except for the Strategy and Sustainable Development Committee which is chaired by a director the other committees are chaired by
independent directors with the Remuneration and Appraisal Committee being chaired by a female independent director laying a solid foundation
Corporate Governance for evidence-based decision-making of the Board of Directors.Structure
General Meeting of
Shareholders
2024
Board of
Supervisors 11 Time(s) 11Time(s) 7Time(s) 8 Time(s)
Board of Directors Board of Supervisors General Meeting of Shareholders Independent Directors Special Meeting
Board of Directors
10 Time(s) 8 Time(s) 1Time(s) 4 Time(s)
Audit Committee Remuneration and Appraisal Nomination Committee Strategy and Sustainable
Secretary of the Board Committee Development Committee
of Directors
Investor Relations Sunwoda strictly complies with relevant laws and regulations and strengthens communication and interaction with investors and potential investors to enhance investors' understanding
Management and recognition of the Company and improve the corporate governance. The Company has Strategy and Sustainable Nomination Committee established the Management Regulations on Investor Relations and the Information Disclosure
Development Committee Management System to build a comprehensive investor management framework systematically
safeguarding investors' rights and protecting their right to know and participate in significant
matters of the Company.Remuneration and Appraisal Audit Committee Information Disclosure Management
Committee
To ensure compliance with information disclosure Sunwoda has formulated the Management Regulations on Information Disclosure firmly rejects
insider trading and standardizes the external information disclosure process. During the reporting period the Company reviewed and improved
multiple corporate governance-related issues strengthened control measures and enhanced the level and quality of information disclosure
General Manager management effectively protecting the legitimate rights and interests of investors.As of 2024 Sunwoda has maintained an A-level rating for information disclosure from the Shenzhen Stock Exchange for eight consecutive years.Decision-Making Committee Investor Relations Management
To improve the corporate governance structure and standardize investor relations management Sunwoda has developed the Management
Regulations on Investor Relations based on relevant laws and regulations and its own circumstances. The Company adheres to the principles of
Departments "fairness justice and openness" upholding the concept of fully and compliantly disclosing information to ensure that all investors have equal
opportunities. At the same time Sunwoda interacts and communicates with investors through multiple channels and at multiple levels and presents
the Company's actual situation objectively truthfully accurately and completely with an honest trustworthy and efficient attitude so as to improve
investors' understanding and recognition of the Company and effectively safeguard their right to be informed especially small and medium
investors.
65 66Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Key Investor Sunwoda engages with investors through various channels adhering to the principles of full Business Ethics Management
Communication and compliant disclosure equal opportunities for investors honesty and integrity operational
Channels efficiency and interactive communication. Sunwoda maintains an unwavering commitment to business ethics principles and actively supervises the implementation of business ethics
across the Company and among its employees. In 2024 Sunwoda released the Management Regulations on Compliance Red Lines in Key Areas to
systematically elaborate on the formal policies against bribery and corruption. The Company also establishes a comprehensive suite of business
Institutional Investors Small and Medium Investors
2024 ethics policies including the Management Regulations on Business Ethics the Management Regulations on Conflicts of Interest the Management
General Meeting of Regulations on Integrity and Ethical Behaviors the Management Regulations on Anti-Bribery and the Management Regulations on Anti-Fraud.
13 Shareholders Together these policies form an integrated integrity governance framework that spans the entire business value chain and ensure the achievement Time(s) Regular and temporary of objectives for full compliance with the code of business conduct across the Company's operations and throughout its supply chain.
Investors Offline Communication announcements
Sunwoda's integrity and compliance governance architecture is structured across four levels: decision-making management execution and
Performance briefing supervision. The Board of Directors exercises decision-making functions and functional departments led by the General Manager Chief Compliance
76 Officer and Compliance Management Department are mainly responsible for overseeing business ethics and corruption issues. These departments Issue(s) Investor Hotline develop and implement integrity and compliance rules and regulations and cooperate with various business departments to jointly promote
Problem Solved integrity and compliance governance. The Audit Center formulates internal audit plan based on the Company's annual business objectives conducts
Interactive Q&A internal audits on all business modules independently and impartially investigates violations and implements integrity and compliance supervision.At the same time the Audit Committee under the Board of Directors receives quarterly reports from the Audit Center to ensure the enforcement of the
Investor Research requirements of integrity and compliance governance.Roadshows
Integrity and Compliance Governance Framework
Decision-making Level
Risk and Sunwoda always regards risk and compliance management as the cornerstone of sustainable development upholding compliant operations and integrity-based governance. Under the
Compliance leadership of the Audit Committee the Company has established a compliance management Audit Committee
framework with "three lines of defenses" composed of various business departments/
Management subsidiaries functional centers and the Risk Control and Audit Center providing a solid Management Level
organizational guarantee for the effective operation of compliance management.The Audit Committee of the Board of Directors functions as the strategic oversight layer
coordinating both internal and external audits and directly reporting to the Board of Directors
to ensure the independence and authority of internal and external risk and compliance
management. The Risk Control and Audit Center as the oversight and assurance layer monitors Compliance and Other Business Departments Audit Center
the risk status of various business modules in real-time through intelligent audit models and risk Functional Departments(Execution Level) (Supervisory Level)
early-warning platforms. (Management Level)
In terms of governance framework enhancement Sunwoda has supplemented and revised the
Compliance Management Measures by introducing definitions and clear role assignments for Compliance risk Risk monitoring audit &
specialized compliance OWNER clarifying the division of responsibilities in various compliance identification and policy Planning and coordination investigation and compliance
domains and ensuring that compliance accountability is assigned to specific responsible implementation accountability & enforcement
departments and personnel. Under this framework heads of first-level departments serve as
primary compliance officers with their responsibilities formalized through signed compliance
First Line of Defense Second Line of Defense Third Line of Defense
commitment letters. The Company also published the Management Regulations on Compliance
Red Lines in Key Areas establishing prohibitive compliance requirements in 13 areas to ensure a
clear and traceable compliance bottom line for employees. In 2024 Sunwoda signed 11 OWNER
compliance commitment letters and incorporated compliance veto criteria into departmental Sunwoda has issued the Fifteen Integrity Red Lines for Employees which clearly prohibits bribery
performance indicators to avoid violations arising from failure to fulfill due diligence obligations leaking trade secrets and using one's position for personal gain among other fifteen integrity
or inadequate compliance management. violations. These guidelines have been communicated through the official website integrity WeChat
Red Line Management official account internal emails and offline training for all employees.Integrity and Anti-corruption initiatives and business ethics frameworks contribute significantly to Sunwoda's governance and operational efficiency bringing substantial social and economic benefits to the Sunwoda has revised the Regulations on Reward and Punishment adding new penalty standards
Business Ethics Company. In 2024 Sunwoda's anti-corruption management efforts focused on multiple aspects and measures to ensure that every instance of fraud or misconduct can be addressed according
such as policy development investigation protocols mechanism enforcement and integrity to established guidelines. The Company has also drafted the Application Form for Exemption or
culture construction forming a multi-faceted and multi-level fraud prevention and control Penalty Mechanism Mitigation of Penalty to encourage employees to actively cooperate with investigations. Employees
system and providing a solid guarantee for the Company's high-quality development. who demonstrate proactive cooperation may receive lenient or reduced penalties.
67 68Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Furthermore the Company has established a comprehensive integrity management mechanism across three stages - prevention audit monitoring and Fostering a Culture of Integrity
continuous optimization - to ensure that integrity culture development becomes a normalized and systematic practice throughout the organization.Sunwoda strengthens its integrity culture through diverse activities including prison visits
2024 educational base activities and special lectures enhancing employees' self-discipline awareness
Prevention Integrity The Company provided online integrity training for both new and existing employees and and optimizing the integrity culture development thus providing strong support for the
Stage Training encouraged self-directed learning to improve the coverage of integrity training. 45 Company's long-term development. articles were published
through the "Integrity in Sunwoda" and To prevent corruption at its source the Company implemented mandatory integrity training for
"Integrity in Liwinon" WeChat official new employees in 2024.Meanwhile the Company provides regular integrity training through
accounts with readership exceeding diverse multi-level and multi-channel approaches including in-person sessions online video By utilizing big data technology the Company has established an audit data analysis model for courses integrity compliance examinations and specialized training for sensitive and high-risk
real-time monitoring and analysis of data across all business modules improving audit efficiency 100000 positions achieving 100% coverage of all personnel (including both permanent employees and
Big Data and accuracy and promptly detecting investigating and correcting corrupt practices. contracted staff). Even departing employees receive integrity reminders via exit interviews and
Audit The Company utilized data mining and risk analysis to identify potential issues such as abnormal text messages.transactions and violations and provide technical support for specialized audits and fraud
Audit investigations.Monitoring
Stage In September 2024 the Audit Center distributed the Integrity Self-Assessment to all employees
through OA requiring employees to evaluate themselves against the Company's ethical standards
Integrity and integrity regulations.Assessment In September 2024 the Audit Center released the 2024 Sunwoda Integrity Examination for All 9 3701 100%
Employees through the Sunwoda Learning Platform requiring all employees to participate in the members of the Board of management personnel coverage of employees
integrity examination with exam results linked to employee evaluations and promotions. Directors received in-person received in-person anti- who received online and
anti-bribery and anti- bribery and anti-corruption in-person anti-bribery and
corruption training training anti-corruption training
The Company regularly assesses the effectiveness of the management mechanism for business
Feedback and ethics and integrity behavior based on audit results and employee feedback. For identified issues
Improvement and shortcomings the Company has developed specific improvement measures and tracked the
implementation effects such as re-testing of audit issue rectifications.Prison Visit for Early-Warning Education Case
Improvement The Company continuously updates and improves the training content on business ethics and
and integrity behavior based on industry dynamics and the Company's actual situation. Various To vividly show the harms of illegal activities the Company
Optimization Education and activities such as special lectures early-warning education activities integrity examinations and
Training organized over 110 employees from key job positions to visit Phase integrity self-assessments have been adopted to enhance employees' awareness of integrity and Shenzhen Prison for integrity warning education. During the
self-discipline. activity employees gained a profound understanding of
the serious consequences of illegal activities by visiting the
Incentive The Company has established a whistleblower reward mechanism to recognize employees who living areas of inmates listening to case explanations and
Mechanism excel in business ethics and integrity. watching videos of inmates sharing their experiences. This
experience strengthened their awareness of integrity self-
discipline and legal compliance.In supplier management Sunwoda requires suppliers to sign the Basic Principles for Cooperation
with Suppliers at the start of cooperation which explicitly stipulates compliance with integrity
standards and anti-commercial bribery requirements. Sunwoda also conducts legal compliance Visits to Integrity Education Bases in Jinhua and Dongjiang Huizhou Case
and business ethics audits of suppliers based on the Supplier Code of Conduct requiring
suppliers to continuously standardize their internal anti-corruption management procedures. In 2024 Sunwoda organized two special trips for visiting
In addition Sunwoda continuously updates the Sustainable Development Assessment Form for and learning at the integrity education bases allowing
Sunwoda Suppliers in its supplier evaluations incorporating anti-corruption into due diligence employees to receive integrity education through on-site
and assessment considerations. Meanwhile the Company proactively conducts integrity visits. These activities enhanced their awareness of integrity.Zhejiang Liwinon was awarded the interviews with suppliers in routine communications and requires transparent cooperation A total of over 80 participants attended the two special
title of "Outstanding Organization in with suppliers through supplier conferences announcements in the SRM system etc. Sunwoda activities.Clean Governance Initiatives of Private consistently verifies the integrity performance of relevant suppliers during the cooperation
Enterprises in Zhejiang Province for 2024". process. Any supplier involved in corruption or fraudulent activities that harm Sunwoda's interests
will face penalties based on the severity of the violation and contractual provisions. For those with
serious violations suppliers will face penalty such as qualification level downgrades payment of
liquidated damages and termination of cooperation.
1The?statistics?for?management?personnel?who?received?in-person?anti-bribery?and?anti-corruption?training?include?employees?at?the?first-line?
69 management level and above. 70Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Special Lecture on Duty-Related Crimes Case Fair Competition
To comprehensively enhance employees' awareness and prevention capabilities Sunwoda strictly complies with the applicable laws and regulations international treaties regulatory requirements and guidelines related to anti-
regarding duty-related crime risks Sunwoda invited a senior prosecutor from unfair competition and anti-monopoly in all jurisdictions of operation. These include but are not limited to the Anti-Unfair Competition Law of
the People's Procuratorate of Boluo Huizhou to give a special lecture on "Risks the People's Republic of China the Anti-monopoly Law of the People's Republic of China the Provisions on Prohibiting Monopoly Agreements the
and Prevention of Duty-Related Crimes in Enterprises" at the Huizhou Boluo Park. Provisions on Prohibiting Abuse of Dominant Market Positions and the Provisions on Prohibiting Abuse of Intellectual Property to Exclude or Restrict
Using real cases and legal analysis the lecture highlighted the dangers and legal Competition.consequences of job-related crimes enhancing employees' legal awareness and
risk prevention capabilities. This event attracted over 120 employees. The Code of Conduct for Compliance established by Sunwoda's Legal and Compliance Center incorporates compliance requirements related to anti-
unfair competition and antitrust. This ensures that Sunwoda and all employees comply with applicable antitrust and anti-unfair competition laws
and regulations as well as the Company's Management Regulations on Business Ethics during market competition. These measures help prevent
Specialized Integrity Training for Procurement Case monopolistic or unfair competition behaviors improve corporate governance enhance intrinsic value and optimize operating costs.To continuously implement transparent procurement policies the Procurement Center invited the Audit Center colleagues to conduct
specialized integrity training for procurement titled "Building an Integrity Culture Forging a Disciplined Team". To manage delivery risks in the
supply chain the Procurement Center collaborated with the Logistics Center to deliver specialized training on "Critical Customs Compliance
in the Procurement Process". To enhance the effectiveness of integrity education in procurement bidding the Procurement Center produced a Safeguarding Product Quality and Safety
video on "Bid Opening Integrity and Disciplinary Guidelines" which was distributed to all procurement units across the group.Digital In today's era of global digital transformation digitalization has become increasingly important Audit Center Integrity Highlights for enterprise development. Sunwoda regards digitalization as one of the Group's four strategic
Transformation modernization pillars and prioritizes its digital initiatives laying out digital transformation to 8000+ Person(s) 20700+ Person(s) 96.77% drive high-quality development.Integrity Self-Assessment1 Integrity Examination2 Examination Pass Rate
Digital Strategy Planning
40 Item(s) 140 Time(s)
Sunwoda adheres to a "customer-centric and business-oriented" approach in its digital strategy and vigorously carries out digital transformation
Specialized Audits Supplier Integrity Interviews
initiatives. The Company has set six goals focusing on business intelligence data assetization product standardization industrial interconnection
software localization and intelligent security system all aimed at maximizing business value.The Company has utilized AIGC to empower business with a strategic focus on R&D operations. By implementing
Business
AI-enhanced simulation technologies it accelerates R&D processes enhances the maturity of digitalization and
Intelligence
drives digitalization across the enterprise.Whistleblowing Mechanism
Data The Company has established a data governance framework and utilized AI and data-driven approaches to drive Sunwoda has established and implemented the Management Regulations on Whistleblowing
Assetization operations accelerating data assetization.Acceptance and Investigation and the Anti-Fraud Management Regulations among other
Reporting Channels policies to promptly identify illegal and compliance issues ensuring the Company operates in
accordance with applicable laws and regulations. The Company encourages and stimulates
Email: jubao@sunwoda.com
both internal and external personnel to actively report on "adverse environment unethical Product The Company implements product standardization initiatives and enhances product/project management
Phone: 0755-23053561 or conducts" or other illegal and non-compliant behaviors that may occur within the organization. Standardization framework to respond rapidly to evolving business needs.
18126270617 (WeChat Account) Multiple reporting channels both online and offline have been established along with a robust
Website: www.sunwoda.com/ accountability mechanism to detect various corruption issues in a timely manner safeguarding
jubao the Company's compliance and orderly development. Concurrently Sunwoda maintains a Industrial The Company implements end-to-end traceability across the entire battery industry chain and a digital platform for
zero-tolerance policy toward any form of retaliation against whistleblowers. The Company has Interconnection battery passports deepening industry connectivity and transparency.Mailing address: Sunwoda Audit established a Whistleblower Protection Policy that establishes protective measures to safeguard
Center No.2 Yihe Road Shilong
Community Shiyan Sub-district the legal rights and interests of whistleblowers.Bao'an District Shenzhen Software Software localization has been accelerated to break through underlying technologies and achieve risk control in
Localization industrial software.Real-name Reporting: Head of
Sunwoda Audit Center Yihe Road
2 Shilong Community Shiyan
Street Bao'an District Shenzhen Intelligence The Company has established a global safety operation command center and built a data security protection
Security System system and a cloud intelligence computing center ensuring digital security.
1 The?integrity?self-assessment?data?includes?office?staff?only.
71 2 The?integrity?examination?data?and?pass?rate?statistics?encompass?both?production?workers?and?office?staff. 72Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Digital and Intelligent Empowerment
Sunwoda regards intelligent manufacturing technology as a critical driver for product quality upgrades. Through the integration of advanced Industrial Knowledge Management Platform Based on AI Large Models and Knowledge Graphs Case
information technologies and manufacturing technology the Company has achieved automation intelligence and efficiency in the production process.Drawing on over 20 years of experience in the manufacturing industry the Company has developed the "ABCDEFG" seven major intelligent In 2024 Sunwoda established an industrial knowledge management platform based on AI large models and knowledge graphs. This platform
manufacturing technologies and established an advanced manufacturing architecture. With its intelligent manufacturing platform as the integrates intelligent recommendation systems and large model technology enabling rapid analysis of historical data and real-time feedback
core Sunwoda enables deep interaction between multiple platforms and systems successfully creating an ecological platform that integrates efficiently generating process plans that accelerate product development.industrialization and informatization providing solid support for intelligent manufacturing.A B C D E F G
Moreover Sunwoda employs digital intelligence to support the overall operation and maintenance. The Company is building an industrial internet
operating system and promoting smart park projects.AI Big Data Cloud Digital Edge
Radio
Computing Twin Computing Frequency 5GTechnology Promoting Smart Park Projects Case
In 2024 Sunwoda advanced the construction of its smart park projects. The Company has established a 3D visualized digital twin system for
Building on its practical implementation experience Sunwoda has constructed a distinctive digital value chain ecosystem founded on the eight core the parks achieving comprehensive monitoring and management of key functions such as security energy efficiency traffic environment
technologies of "Internet + Internet of Things + Big Data + Cloud Computing + AR/VR + AI + Digital Twin + Blockchain". This system centered on smart assets and facilities. This project supports intelligent refined and efficient management and enhances security monitoring.production chains smart R&D chains and smart supply chains forms a tripartite end-to-end system that helps the Company build world-class
intelligent factories and explore intelligent and advanced solutions for the industry.In 2024 Sunwoda applied digital and intelligent empowerment across multiple business operations. In R&D the Company deployed FMEA (Failure
Mode and Effects Analysis) and integrated digital tools into R&D project management significantly improving R&D efficiency. In the production
process the Company launched an advanced Warehouse Management System (WMS) and at the same time promoted the co-creation and
application of a Manufacturing Execution System (MES) for digital management in processing improving equipment processing precision
production efficiency and product quality. In the supply chain management the Company integrated advanced planning and scheduling concepts
and technologies into supply chain management achieving automation intelligence and collaboration in planning through digital means
improved planning accuracy and execution efficiency.In addition the Company has achieved the integration of business systems and the construction of data models. By integrating over 50 operational
systems and consolidating previously fragmented data across various business segments Sunwoda has developed over 500 data model assets.These data models provide comprehensive and accurate data support for the Company's decision-making enabling data-driven business
operations and management optimization.Leveraging AI and digital tools the Company has built a big data-driven intelligent tuning self-learning system for production equipment as well as
an industrial knowledge management platform based on AI large models and knowledge graphs. These innovations have been implemented in the
lithium-ion battery intelligent manufacturing production line facilitating data-driven predictive maintenance. Through strategic deployment across
operations AI technologies have driven significant improvements in quality and efficiency across the Company's operations.Big Data-Driven Intelligent Tuning Self-Learning System Case
In 2024 Sunwoda introduced a big data-driven intelligent tuning self-learning system for production equipment. During the product
development phase the Company established a monitoring system for equipment parameters and product quality data. This system employs
reinforcement learning algorithms to train intelligent agents capable of autonomous tuning operations. Additionally it ensures coordinated
parameter settings among different workstations equipment and production lines ensuring the efficient and stable operation of the entire
production system.
73 74Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Information Sunwoda attaches great importance to information security management and insists on internalizing external regulations to ensure compliance. The Company has established an Information Security
Security and Cyberattack Prevention by Lanxi Network Shield Operation in 2024Committee which serves as the highest decision-making body for information security and is chaired Case
by the Chairman of the Board. To ensure comprehensive coverage of information security management
Privacy Protection the Company has decentralized the security organizational structure of each business department and In July 2024 Sunwoda detected large-scale scanning and vulnerability exploitation attacks initiated from external sources during routine
subsidiary. This structure clarifies responsibilities at all levels ensuring systematic and effective information security monitoring. The attacks were successfully blocked through real-time monitoring and identification interception by security equipment
security management. In 2024 Sunwoda continuously refined its five-year strategic plan for information and multi-system coordination of perimeter defense devices and perception devices. Follow the incident analysis and remediation were
security setting information security management requirements based on its own business situation conducted to strengthen overall information security capabilities.and operational strategy and optimizing multiple group security management systems to safeguard
information security. Additionally Sunwoda expanded its information security governance framework to
include two additional entities: Sunwoda Vietnam and Zhejiang Xinwei Electronic.The Company has also optimized and adjusted its early warning and response measures for personnel Product Quality and Safety
processes and equipment from the perspectives of data leakage prevention and network threat
mitigation. These improvements achieved comprehensive reinforcement of security policies and formed a
ISO 27001 Information Security comprehensive defense-in-depth architecture to enhance the Group's overall security posture. Furthermore Sunwoda highly values product quality and safety. By establishing quality management systems and processes strengthening hazardous substance
Management System Certification Sunwoda actively supports the information security network development at Sunwoda Vietnam Zhejiang management and promoting a quality-oriented culture the Company enhances its product competitiveness and cultivates a positive corporate
German TISAX Certification Lixin and Winone Pujiang Industrial Park to ensure operational resilience across the Company's expanding social responsibility image.business footprint.Passed Level 4 Assessment of
Network and Information Security In privacy protection Sunwoda continuously follows up on regulatory and customer requirements Sunwoda is dedicated to providing customers with products and services of excellent quality. From raw
Module and improves privacy protection processes privacy notices and other related standards to ensure Quality material procurement and production to finished product inspection strict standards are implemented
comprehensive implementation in related business systems. The Company has formulated the Privacy Management at each link. A comprehensive quality management system has been established to achieve zero
Protection Management Regulations to standardize privacy protection related to data collection storage quality-related product recalls and major production safety incidents. The Group by introducing
use or processing deletion destruction and cross-border storage and provision of personal information in System advanced quality concepts and management tools forming professional teams conducting training
its domestic and overseas operations. audits and optimizing management processes has established a sophisticated quality management
In 2024 Sunwoda successfully passed the ISO27001 information security management system surveillance framework. A Quality Center has been set up as the dedicated management body for product quality
audit with 13 operational sites achieving certification. During the reporting period the Company expanded undertaking the group’s sustainable development goals responsible for the construction operation
its certification scope to four additional subsidiaries: Xinwei Intelligence Superstar PTL and Xinwei and quality-related work of the Company's quality system to ensure its efficient operation and
Electronic further enhancing the information security awareness of all employees and the Company's systematically control quality-related risks. These measures effectively reduce product defect rates and
management capabilities. enhanced product stability and reliability provide high-quality products to customers and establish a
In 2024 Zhejiang Winone strong brand image.Zhejiang Sunwinon and The Company has established a comprehensive product quality management system and regularly
Shenzhen Intelligent
Information Security Defense Strategy revises relevant regulations to align with actual management needs. In accordance with the Quality 2024 Industry obtained ISO 9001 & HSF Manual and the Internal Audit Management Regulations Sunwoda conducts an annual
and QC 080000 system
To better protect information security and safeguard customer privacy Sunwoda actively implements a comprehensive internal audit of the quality management system to promptly identify issues and take
8 certifications.Time(s) comprehensive information security protection system built upon two complementary pillars: security corrective actions. The Company's ISO 9001/IATF 16949 Quality Management System certifications
Information security training awareness cultivation and security device interception. This multi-layered approach integrates awareness
cover 100% of its mature production bases while the IECQ QC 080000 Hazardous Substance Process
with hardware to create a robust information security framework. Management System covers 100% of its mature production bases in the consumer electronics and smart
hardware sectors.
430 On one front the business departments of the Group actively carry out information security training focused Person(s) on software development security and email security. These initiatives employed diverse forms such as
Participant No. email delivery micro-learning videos assessment exams Wechat official account blogs information
security week activities offline training and empowerment activities. This multi-channel approach delivers
information security knowledge and concepts to every employee continuously enhancing information
7669 Person(s) security awareness.
Assessment exam On the technical front Sunwoda effectively intercepted external attacks with advanced security equipment
and an efficient response mechanism when facing external network threats ensuring data security and
business continuity. In 2024 the Company successfully blocked 2 external network attack incidents through
17 Article(s) security equipment. There were no incidents of business system breaches or successful attacks throughout
WeChat blog the year.
21220 Person(s)
Article views
75 76Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Quality Management System Quality Sunwoda has established a comprehensive and mature management system and processes. Through the daily management mechanism of 'three rates' (completeness rate improvement
Management rate and compliance rate) the Company conducts in-depth analysis of various processes.Quality-driven The Company identifies key improvement measures based on pain points in operations and
decision- To achieve intelligent quality control decision-making through the QMS platform Process establishes a dedicated inspection team at the operational level to conduct on-site special
making inspections and standard teach-ins. This enhances employees' compliance with standards and
processes and on-site management capabilities.Quality SPC management Real-time monitoring Sunwoda has independently developed a Quality Management System (QMS) to improve
analysis The Sunwoda Quality Center efficiency and standardize quality management. This system enables the recording statistical Quality data collection and analysis KPI management
team’s project was awarded analysis and traceability of quality data throughout the entire lifecycle facilitating efficient digital
the "Demonstration-level management and providing strong support for future big-data-driven quality alerts.Prize" at the 2024 "China
Quality Supplier quality Incoming material In-process Finished product After-sales Data Quality Innovation and
control / data management quality quality quality system correlation Quality Improvement
collection Achievement Exchange
Series" event. Targeted Quality Management Initiatives* Supplier delivery * Inspection * First article * Outgoing * Customer * OA: Review
report standard inspection complaint results* Quality patrol Sunwoda consistently implements Lean Six Sigma and QCC initiatives to improve product or maintenance ledger
* Supplier inspection * Product hold/ * ERP: Delivery business processes comprehensively achieving significant enhancements in process efficiency
monthly * Incoming quarantine * Customer note / Supplier * Drop-in testing quality customer satisfaction and financial performance.performance inspection return ledger / Customer * Return
* Overdue * Nonconformity
information
inspection * Major quality
* Supplier 8D inspection review incidents * MES: Work
report * Nonconformity orders
* Non- review Six Sigma Training CaseShipping
* Claim records conformance information
review Process records In 2024 Sunwoda conducted Six Sigma training to enhance employees' skills and quality and improve the Company's quality management.
495 employees participated in the Yellow Belt training with a total duration of 84 hours. 371 employees participated in the Green Belt training
* Dispatch: totaling 216 hours. Additionally Sunwoda organized approximately 250 capability-building and coaching sessions strongly supporting
Receiving
information project implementation.Quality Customer complaint 8D analysis
improvement Corrective and preventive actions statistics
Basic Standard Equipment and gauge Inspection data
support management management upload Infrastructure
* Material standard * Equipment and * QC Equipment * Data source:Data
management gauge ledger data interconnection
* Sampling plan * Measurement * IPQC Equipment * Auto fetch: Automatic
configuration?? System Analysis data data acquisition
(MSA)
* Defect code * QA Equipment * Decision rules: Rule
management data maintenance
* Auto alert: Decision
mechanism
2024
0 RMB 0 Time(s)
The amount involved in major safety and quality liability accident Number of product recalls due to
damages related to products and services during the reporting period quality issues
77 78Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
QCC (Quality Control Circle) Activities Case Non-Conforming Product Control
In 2024 Sunwoda deeply implemented QCC activities through three Sunwoda establishes a non-conforming product control process to manage product quality strictly. During the reporting period Sunwoda did not
approaches of project initiation capability-building and coaching experience any product recalls due to product quality issues nor did it face any penalties from regulatory authorities for violations of laws and
and presentation competitions achieving remarkable results. The regulations related to product and service quality and safety.Company submitted a total of 495 projects throughout the year with
494 closed achieving a closing rate of as high as 99%. 114 capability-
building and coaching activities were carried out throughout the year
totaling 403 hours and 3131 participants. Through QCC activities it is
expected to achieve financial benefits of RMB 37.5 million. Non-conforming
Regarding presentation competitions the Company successfully held product control
the 13th and 14th Group QCC Presentation Competitions covering 4 process
sessions for team leaders and engineers and organized 27 internal
presentation competitions within the business units.Hazardous Substance Management
Process 1 01
Sunwoda continuously strengthens hazardous substance control across the entire value chain. The Company has established relevant systems
including the Hazardous Substance Management Regulations the Technical Standards for Environmental Management Substances Process 3 and the HSF Reporting and confirmation 03
Risk Assessment and Management Regulations which provide detailed regulations and guidelines for hazardous substance management in To identify non-conforming Isolation
processes such as raw material procurement new product development production packaging storage and transportation ensuring that product products. If harmful substance To remove from the stocking
quality meets regulatory and customer requirements. During the reporting period the Company revised these documents to better align with actual content non-compliance Process 2 02 area and label for isolation
management needs. is involved expand the
Identification
In material certification Sunwoda actively implements hazardous substance control and conducts risk assessment and review of material hazardous investigation to the supply
substance compliance through the GPCM system.Only after the review is passed can the material be used in the product to ensure the safety of chain To mark the batches of unqualified 04
product hazardous substance control. products and indicate the non-
Process 4
conformity Treatment
To provide temporary
measures and assess
New material introduction Imported material Auxiliary material Non-conforming material Process 5 05 whether risky products
management management management in production treatment have been distributed
Improvement
To provide long-term corrective
measures for the root cause and
During the new material For imported materials Sunwoda reviews the Once materials that do not
conduct a horizontal investigation
introduction phase the Company regularly compliance of hazardous comply with hazardous
the Company reviews conducts sampling substances in product substance control are found
whether new materials inspections to ensure auxiliary materials used during the production the
meet the hazardous compliance. in the production process Company will immediately
substance management and conduct regular stop using the material and
requirements sampling tests during use. quarantine inventory work-
of Sunwoda's in-progress and finished
Technical Standards products. If it involves client-
for Environmental end products Sunwoda will
Management Substances. immediately execute the
Non-conforming materials product recall procedure.are prohibited. For suppliers with non-
compliance environmental
incidents their performance
for the month will be rated as
D. Before the implementation
of relevant improvement
measures the introduction
of new products from such
suppliers is prohibited.
79 80Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Quality and Safety Month Event Successfully Held Case
Fostering a Culture Sunwoda is committed to fostering a comprehensive and in-depth quality-oriented culture and atmosphere through multi-dimensional initiatives. During the reporting period the Group In 2024 Sunwoda held a Quality Month event themed "Strengthening Quality Support and Building a New Corporate High Ground". During
of Quality comprehensively advanced the construction of quality-oriented culture from five major aspects: the Quality Month the Company organized a series of quality-related activities. Among them the online quality knowledge quiz attracted
quality culture promotion multidimensional cultural activities quality specialized training quality 6935 participants an increase of 74% compared to last year. The 6th Quality Competition saw 8357 participants a year-on-year increase of
improvement competitions and quality brand building. The integration of quality concepts and 89%. Additionally Sunwoda promoted and popularized quality-related videos with 35 videos themed with quality science popularization
culture with Sunwoda's business strategy was deepened promoting the Company's quality knowledge transfer tool application topic sharing and cultural promotion as well as 25 outstanding works from the quality-related short
culture construction and supporting the sustainable development of the Company's operations. video contest. On the "Quality Intelligent Charging Station" Sunwoda's senior executives took the lead in studying quality and safety-related
learning materials.Dimension Content 2024 Actions and Performance
The Company designed 120 promotional materials covering various
forms such as online promotions posters and videos. It distributed 28
Creating a strong quality- sets of staircase slogans 30 poster frames and 46 banners to various
Quality culture oriented culture through diverse business units to ensure a company-wide promotion of a quality-
promotion promotional methods oriented culture. Additionally Sunwoda published 20 official WeChat
posts and promotional posters related to quality and safety with over
170000 cumulative views. Quality Knowledge Lecture
Quality Month event Sunwoda successfully held the Quality Month event themed
Multidimensional "Strengthening Quality Support and Building a New Corporate High
cultural Quality Star selection Ground".activities
The Company conducted the "Quality Knowledge Lecture" and
"Quality Knowledge Lecture" other related training sessions with a total of 6 sessions and 1627
Quality "Morning Star Quality Knowledge participants. The Company conducted the "Morning Star Quality
specialized Training Series" Knowledge Training Series" with a total of 3 public classes and a
training cumulative training attendance of 268 people. Quality competition
The 4th Proposal Improvement Rating A total of 572 proposal improvement activities participated in the 4th
Conference Proposal Improvement Rating Conference.Quality
improvement The 2nd Supplier QCC Presentation 27 projects from 20 suppliers participated in the 2nd Supplier QCC
competitions Conference Presentation Conference.Reducing the Charge/Discharge Defect Rate of the D8X Project
2024 Shenzhen Quality Management Battery won the gold award.
Quality brand Team/Quality Trustworthy Team
Experience Exchange Meeting The paper Developing a New Device for Battery Leakage Detection building
to Reduce Labor Costs was awarded the Silver Prize. Quality Month poster Quality Knowledge Lecture
818204
PARTNERSHIP
People-Oriented
Shared Prosperity
Sunwoda prioritizes the wellness and health of "people" adhering to a
people-oriented approach and considering the growth and development of
employees as the cornerstone of corporate management. The Company
promotes responsible supply chain management and collaborates with partners
from all sectors of society to empower each other and jointly carry out sustain-
able cutting-edge practices. Additionally as a corporate citizen committed to
social responsibility Sunwoda is deeply involved in public welfare and widely
carries out charitable actions to create shared value for the whole society.Key ESG Topics in this Chapter:
Talent management and development
Occupational Health and Safety
Responsible supply chain management
Industry cooperation
Rural revitalization and social contribution
Response to SDGs:Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Cultivating a Vibrant Workplace Employees Rights and Sunwoda always prioritizes the protection of employees' rights and interests standardizing management in areas such as recruitment and dismissal compensation
Interests Protection and?benefits?working?hours?and?holidays.?The?Company?has?established?diverse?
democratic?communication?channels?to?listen?to?employees'?voices?and?effectively?
Sunwoda adheres to a "people-oriented" management philosophy and has established a Human Resources Center to continuously strengthen safeguard their legal rights and interests.talent development and management with the goal of achieving industry-leading key stakeholder satisfaction in alignment with the Company's Responsible Employee Framework
vision and mission. The Company adopts the compensation management system and performance management system as leverage to stimulate
employees' value-creation capabilities. The Company uses the competency management system to drive employees' capability enhancement and Sunwoda is committed to building a legal fair and inclusive employment management system strictly adhering to the Labor Law of the People's
career development. A healthy and happy work environment is built through diverse employee engagement activities. Through comprehensive talent Republic of China the Labor Contract Law of the People's Republic of China and other laws and regulations. Sunwoda continuously formulates and
management activities Sunwoda promotes human capital growth and the achievement of its vision and mission. improves its human resource management system and various employment protection mechanisms respecting and safeguarding employees' legal
rights and interests. During the reporting period Sunwoda achieved a 100% labor contract signing rate.Sunwoda consistently maintains ethical hiring practices pledging to comply with the core conventions of the International Labour Organization
Human Resource Management Strategic System while?safeguarding?employees'?labor?and?human?rights.?The?Company?prohibits?the?employment?of?child?labor?forced?labor?human?trafficking?
and slavery. The Company has established regulations for Child Labor Rescue Juvenile Workers and Female Employees Protection with a strict
recruitment review mechanism to ensure the elimination of child labor and underage workers reinforcing employment compliance at the source and
Vision and Mission maintaining zero tolerance for forced labor.In addition Sunwoda has formulated and strictly implemented the Attendance Management Regulations standardizing the overtime approval
Corporate Strategic process and strictly adhering to the national statutory working hours and holiday regulations thereby safeguarding employees' rights to rest and Strategic
Objectives Corporate Values leave. The Company has established the Management Regulations on Reward and Penalty clarifying the rules for employee misconduct related to Culture professional conduct personal behavior attendance and moral conduct standardizing employee behavior and establishing an appropriate and
positive value orientation.Sunwoda is committed to creating an equal diverse and innovative work environment with zero
Corporate Business Objectives Diversity and EqualityOrganizational Structure tolerance for any discrimination striving to build a corporate culture based on honesty mutual trust and and Key Performance inclusiveness. In recruitment compensation training promotion and other aspects the Company strictly
Process In 2024 Sunwoda was honored follows the principles of fairness and justice. Sunwoda resolutely eliminates discrimination or unfair Corporate Strategies and
Organization Work Analysis with the provincial and treatment of employees based on age disability ethnicity gender marital status nationality political Core Business Processes
municipal employment base affiliation?race?religion?or?union?membership.?The?Company?ensures?equal?pay?for?equal?work?effectively?
for people with disabilities safeguarding employees' legal rights and interests and creating a diverse equal and fair workplace.recognition. In protecting the rights and interests of vulnerable and underrepresented groups Sunwoda has established
Workplace welfare?policies?for?employees?with?disabilities?and?offers?targeted?support?activities?during?important?Human Motivation Competency Recruitment
Efficiency Climate and holidays. For female employees the Company carries out various types of care activities to safeguard their Management Management
Improvement Management Deployment rights and interests.Employee Compensation erformance Ability alent By Gender Male Female
Relations Management Management Assessment Development Person(s) 37645 16647
Labor Job Grade Performance Competency Talent
Relations Management Objectives Model Review
Total Talent By Age
Under 30 30-50 years old Over 50
Employee Compensation Performance Qualification Succession Person(s)
2745425976862
Wellbeing Management Evaluation Pipeline
Workforce Incentive Mechanism Feedback and Competency Stability Design Improvement Certification
IDP
By education background Below associate's degree Associate Bachelor Master PhD
Person(s) 32313 9974 9550 2308 147
Cadre Team/Expert Team/Worker Team
By professional discipline Production Technical Adminis- Finan-Personnel SalesHuman Resource Information Management System / Human Resource Control System Person(s) 36856 trative cial
Management 8389 7961 755 331
85 86Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Female Care Initiative Case Sunwoda?offers?a?comprehensive?benefits?system?governed?by?its?Remuneration?and?Benefits?Management?Regulations?and?the?Management?
Regulations on Social Security and Housing Accumulation Funds ensuring the system's fairness and transparency. The Company’s comprehensive
In 2024 Sunwoda's trade union carried out several innovative initiatives to promote the protection of female employees' rights. It collaborated framework?extends?to?all?full-time?employees?and?contract?workers?ensuring?equitable?access?to?high-standard?benefits?that?significantly?improve?
with the Guangming District Federation of Trade Unions to provide free breast and cervical cancer screenings for female employees. Meanwhile employee?satisfaction.?Sunwoda?fully?covers?the?national?statutory?five?social?insurance?and?one?housing?fund?for?full-time?employees?as?well?as?
on?International?Women's?Day?activities?such?as?online?raffles?and?DIY?craft?courses?were?organized?based?on?the?differing?needs?of?female? commercial insurance including accident insurance and life insurance ensuring that employees enjoy stable social security. For special groups such
employees in production lines and functional departments. These services and activities ensured the physical health of female employees as?interns?and?re-employed?retirees?Sunwoda?provides?commercial?insurance?such?as?accident?insurance?and?life?insurance?to?effectively?safeguard?
enriched their work-life experiences and enhanced their sense of happiness and belonging. the legal rights and interests of workers and comprehensively protect employees' health and safety.Statutory Five social insurance Full coverage of pension insurance medical insurance unemployment insurance
Benefits and one housing fund work-related injury insurance maternity insurance and housing provident fund
Statutory holidays Statutory holidays and paid leave in accordance with national regulations
Breast and Cervical Cancer Screenings Handicraft DIY Activities
Sunwoda?also?provides?all?regular?employees?with?diversified?non-salary?benefits?such?as:
Monthly budget Monthly discretionary activity budget allocated to the department
Year-End
Funds for year-end appreciation events or celebrations
Flower Delivery Activities on the Production Line celebration fund
Care for Employees from Vulnerable Groups Case Travel fund Annual travel activity funds for the department
In 2024 Sunwoda continued to support for employees from vulnerable groups. Sunwoda collaborated with the China Disabled Persons'
Federation to donate necessary living items to disabled employees. At the same time the Company arranged psychological counselors to Holiday?benefits Gifts or subsidies for festivals such as Spring Festival and Mid-Autumn Festival
offer?mental?health?counseling?for?employees?with?disabilities.?These?measures?facilitated?better?workplace?integration?and?quality?of?life?
improvements?for?affected?personnel. Commercial
Additional commercial insurance for employees
Through a needs-based assessment framework Sunwoda delivers customized support plans for employees with disabilities. This targeted insurance
approach ensures optimal resource allocation while demonstrating the Company's commitment to precision care for special needs groups.Diverse Multi-faceted allowances structure including night shift allowances accommodation
subsidies allowances catering allowances seniority allowances and more than ten other items
Compensation and Benefits Framework Annual health Annual health check-ups for employees
check-ups
Sunwoda strictly complies with relevant national laws and regulations and
As of the end of the reporting period has?formulated?the?Remuneration?and?Benefit?Management?Regulations.?The? Performance Merit-based incentives for employees demonstrating exceptional contribution
Company?has?established?a?scientific?performance?management?system?combining? rewards
The?coverage?rate?of?the?"five?social?insurance?and?
objective-based management with a dual evaluation mechanism that integrates
one housing fund" for the Company's regular full-time
key performance indicators with core competency capabilities optimizing the Housing and Housing subsidies transportation subsidies etc.employees was 100% compensation management system. In 2024 Sunwoda updated its compensation and commuting support and the coverage rate
benefits?management?policy?enhanced?employee?welfare?standards?strengthened?
of commercial insurance was also 100%. Specialized talent the incentive mechanism and promoted talent retention. Housing for talents government subsidies etc.retention?benefits
Base Variable Long-term In?addition?Sunwoda?continues?to?refine?its?mid-?and?long-term?incentive?mechanisms.?In?2024?
salary pay incentives
Highlighted Performance Sunwoda stepped up the equity incentives. During the reporting period the Company introduced
a Type II restricted shares plan granting 14.5933 million shares to 726 employees. The Company
Performance bonuses commissions The Company's equity incentive
Shares options dividend has completed the stock incentive plan with 981000 shares to 642 employees.Position-based pay project bonuses quarterly bonuses has coverage of core personnel
rights etc.overtime compensation year-end bonuses 86%
8788
Department benefits Personal benefits
Non-statutory
benefitsSunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Democratic Management
Sunwoda attaches great importance to employee satisfaction and dedication. The Company conducts dedication/satisfaction surveys every year
Sunwoda has established and strictly implemented internal governance frameworks such as the Management Regulations on Freedom of to?comprehensively?evaluate?employee?engagement?from?multiple?dimensions?such?as?compensation?and?recognition?leadership?effectiveness?
Association and Collective Bargaining of Sunwoda and the Management System of Sunwoda Workers' Representatives Convention. The Company professional development opportunities and culture alignment providing data support and decision-making basis for continuously optimizing
is committed to strengthening the democratic supervision mechanism and respects every employee's right to freely form and participate in trade human resource management and enhancing employee happiness and satisfaction. In 2024 the survey score reached 4.25 on a 5-point scale. The
unions?and?engage?in?collective?bargaining?effectively?safeguards?employees'?legitimate?rights?and?interests. Company will continue to track engagement and satisfaction performance taking proactive improvement measures to create an increasingly positive
Sunwoda ensures smooth communication between employees and management through Workers' Representatives Convention employee and inclusive workplace environment for employees.dialogue forums employee reception days etc. The Company regularly convenes the Workers' Representative Convention according to established
procedures?with?significant?issues?undergoing?democratic?decision-making?processes?followed?by?public?disclosure.?During?the?reporting?period?
Sunwoda held 120 employee dialogue sessions and 30 employee reception days collecting 300 suggestions from dialogue sessions. To address
these issues the Company prioritized these concerns through systematic categorization and analysis clarifying the nature of the problems and the
responsible departments and following up on their resolution.Collective agreements were formed through processes such as topic collections and discussions coordination between labor and management
convening?the?Workers'?Representatives?Convention?for?deliberation?signing?public?disclosure?and?regulatory?filing.?These?agreements?explicitly? Staff Training and Development
address?issues?closely?related?to?employees'?rights?and?interests?like?employee?compensation?insurance?and?benefits?and?labor?safety?and?health.?
In 2024 the Company initiated the Workers' Representatives Convention where participants signed the updated collective contract. During this period
and in the future if there are adjustments to policies regulations or internal rules Sunwoda would promptly initiate collective bargaining to ensure Talent Acquisition and Retention
the?continued?adaptability?and?effectiveness?of?the?agreement. 2024
Sunwoda adheres to the principles of "equity and procedural fairness" in its employee recruitment
Campus recruitment hired
The First Session of the 2nd Workers' Representative Convention and dismissal processes. The Company employs data-driven workforce planning methodologies Case
905 to?anticipate?talent?requirements?while?continuously?increasing?efforts?to?attract?talent?through?employees diversified?channels?to?effectively?address?future?organizational?capabilities.?Sunwoda's?
In December 2024 Sunwoda held the The First Session of the 2nd Workers' Representatives Convention in order to implement the democratic recruitment channels mainly include social recruitment and campus recruitment. Among them
management mechanism. One of the primary agendas was to sign the collective bargaining agreement and deliberate on multiple issues social recruitment is conducted through various methods such as internal referrals external
related to employees' rights and interests such as reward and punishment management regulations safety reward and punishment Campus recruitment
increase compared to the recruitment platforms targeted recruitment fairs talent markets and outsourcing.management details and the reform plan for Sunwoda employee catering.previous year In addition to align with its global industrial layout Sunwoda actively promotes local talent
strategies in overseas recruitment. In response to the job demands of local industrial parks the
137% Company has equipped a professional local HR team responsible for talent acquisition to better
align with local business needs. For positions that require overseas assignments Sunwoda
Recruitment of people adheres to the principle of "adaptability" by recruiting domestically. Once employees are familiar
with disabilities with the relevant work content they will be arranged for overseas assignments. The Company
provides support for employees' integration into the local environment.
202 job opportunities
Promotion and Assessment
Signing of the collective agreement On-site voting Veteran recruitment sessions Sunwoda prioritizes talent development and is committed to building a multi-level structured
participated succession talent framework. During the reporting period the Company continuously optimized
Sunwoda fully respects and supports all legal forms of group activities organized by employees
2 its comprehensive talent architecture categorizing employees into managerial professional During the reporting period without any interference. The Company embraces a "people-oriented" approach by optimizing sessions technical?and?operational?specialist?categories?establishing?a?unified?and?smooth?career?
communication channels for employees and improving its formal grievance resolution system. progression pathway and clarifying a promotion mechanism oriented towards value creation. By
100% Sunwoda has set up a union hotline at 51880 allowing employees to provide feedback and seek Overseas recruitment establishing a comprehensive evaluation standard that includes ethics performance experience assistance conveniently. The Company has also established a specialized team for employees to sessions participated and competency Sunwoda provides clear promotion guidance for employees. The Company Labor dispute settlement rate facilitate independent third-party grievance resolution when necessary. has standardized the promotion appraisal process and established a three-tiered appraisal
Formal grievance resolution channels 3 mechanism at the company sector and department levels.sessions
100% The Company has also established a comprehensive performance appraisal system covering all
Online channels Team communication Offline channels employees with monthly quarterly and annual assessments. For non-managerial employees Mediation success rate channels a dual-dimensional appraisal model of "self-assessment + supervisor evaluation" is adopted.* Employee wellbeing * Panels * On-site grievance Performance ratings and corresponding multipliers are determined using key metrics including
system * Employee Reception mechanism attendance and work indicators which directly inform variable compensation calculations
within the Company's pay-for-performance framework. At the same time the annual employee
* OA Day * Phone assessment adopts a 360-degree evaluation method comprehensively assessing employee
* Enterprise WeChat * Email performance throughout the year rating performance levels and ensuring that assessment
* Mailbox results are closely linked to employee annual awards promotions performance bonuses and
other development indicators.
89 90Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Promotion and Assessment Learning Platform Development
Talent Development System Additionally Sunwoda deeply implements its digital strategy integrating digitalization into the corporate training system creating a technology-
enabled?data-driven?learning?platform?that?promotes?refined?training?management?and?personalized?learning?paths?thus?providing?strong?support?
To better promote the implementation of the Company's overall development strategy and human resources for employee growth and corporate development.strategy in 2024 Sunwoda optimized and upgraded the employee training and development strategic
Employee training
planning and empowerment system. This enterprise-wide system encompasses all full-time personnel
coverage rate in 2024: Sunwoda Knowledge Management System and Knowledge Sharing Platform Case
levels and features targeted capability-building programs including strategic business acumen critical
100% competency development leadership acceleration technical and functional expertise enhancement and In 2024 Sunwoda piloted the development of a knowledge management system in the R&D field accumulating over 30000 knowledge new employee integration. The framework is supported by optimized processes and resource infrastructure entries and conducting specialized training covering more than 100 participants. The Company simultaneously launched a knowledge-
across diverse operational contexts with particular emphasis on strategic business priorities and high- sharing?platform?at?the?group?level?working?in?conjunction?with?the?knowledge?management?system?to?enhance?the?efficiency?of?knowledge?
potential talent development helping Sunwoda's "strategies" implementation. acquisition sharing application and reuse at Sunwoda.In internal training Sunwoda focuses on supporting strategic implementation business development and
the enhancement of human capital as core objectives. A series of training programs have been developed
for?employees?and?management?at?different?positions?and?levels.?The?talent?empowerment?system?covers?
various?areas?including?new?employee?onboarding?training?technical?proficiency?programs?and?leadership?
advancement?utilizing?blended?online?and?offline?formats?to?ensure?flexibility?and?effectiveness?in?training.?
For external stakeholders Sunwoda provides tailored and professional technical and management training
solutions for clients and partners that closely align with business expansion and customer service strategies
helping external collaborators enhance their capabilities and achieve mutual development.Strategic Digitalization intelligentization internationalization yong workforce Strategy implementation support
scenarios advanced training classes... Focus on key strategic businesses and
leadership talent development Xindong R&D Knowledge Management Empowerment Conference Xinwei R&D Knowledge Management Empowerment Conference
Sunwoda Learning Platform Case
R&D Quality Project Manufacturing Engineering
Core Organizational empowerment oriented …
Capability towards business and positionsIPD R&D Six Project Lean Experience The "Sunwoda Learning Platform" is a learning platform independently developed by Sunwoda primarily addressing key issues such as
Domains Systematical business operational capability innovation Sigma management production inheritance customer compliance verification and information security management through digital training delivery. The third phase of platform enhancement
in equipment development was launched in 2024 adding features such as points management job learning pathways and external training. Through these
upgrades features the Sunwoda Learning Platform provides employees with a clear growth path bridging the gap between theoretical learning and
practical?application?and?helping?enterprises?build?an?efficient?learning?organization?that?fully?supports?business?innovation?and?sustainable?
Based on the Company's integrated development.leadership competency framework
Tiered certification system for capability
Frontline Management Middle management development strengthening middle
Empowerment management capacity
for leaders Management transformation Cultural inheritance
Platform operation Phase III development
team management management discussions case
analysis Position-oriented skill empowerment Exam management Online course learning Solving Five Major Challenges
Examination-driven training to enhance
Technical/Skill development capabil i t ies of both new and exist ing
personnel 171000
+ 30100+ Credit
participants participants application
New employees
1812 pretests 879 courses Group-wide
Cultural value transmission and new talent Governance Learning map
cultivation
Learning development Learning delivery Creating an inclusive environment where Issuance?of?job?qualification?
of External application
In-house training tracking
Process Trainingnewcomers from diverse backgrounds feel at certificates
support Learning assessment Internal trainer management home +
Project management Knowledge management 140 positions 560 H Government Training data
Sunwoda Knowledge Organizational capability enhancement
6827?certificates 17?first-level?departments? subsidy visualization
Resource Case studies Venue and
Learning sharing through digital enablement
executing 721 items review
support repository equipment
Platform platform Improve?organizational?learning?effectiveness
91 92Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Talent Succession Pipeline Sunwoda has established a multi-level training and development plan establishing Trainees Conducted Lanxi Training Integrating Cultural Experience and Professional Learning Case
systematic leadership development pathways that build a robust talent pipeline while
enhancing leadership capabilities throughout the organization.
2024 Over?100?Sunwoda?management?trainees?underwent?a?two-day?intensive?training?at?the?Lanxi?Industrial?Park.?On?the?first?day?participants?
visited the ancient Youbu Town (1000-year history) to experience local morning tea culture and enhance teamwork through six check-in point
224117 tasks. They then toured Liwei and Lixin Industrial Parks to gain in-depth understanding of full business processes. Evening activities included hours a running camp promoting healthy work concepts. On the second day CEO Xiang Haibiao lectured on "Career Planning" systematically
Total training hours explaining career development methods by sharing personal experiences and growth cases. This training combined cultural immersion
Stage Training projects Main tasks operational practice and professional guidance to accelerate trainee development injecting new vitality into the company's talent pipeline.Executive
Executive Strategic leadership philosophy
development
leadership cultivation and advanced
program management studies
Advanced leadership Professional capability
development: from Leadership enhancement
team leader to advancement Business operations
department director program simulation training
Leadership transition: Leadership Leadership succession
from key contributor to transformation planning and development
team leader program Management role transition
enablement
Professional Development of professional
development: from Management competencies and project
team member to key trainee management abilities
contributor program
Foundation Morning Star Graduate Corporate culture
building: from Development Program orientation and
new recruit to Employee onboarding integration for
operational team training new employees
member "Morning Star" Graduate Development Program Case
Sunwoda launched the Morning Star Graduate Development Program which focuses on cultivating professional awareness as the core of
First Management Trainee Program Launched Case general knowledge and skills and professional technical capabilities centered on job requirements for graduates enhancing their professional
qualities and accelerating their transition from academic to corporate environments.The opening ceremony of Sunwoda's "Management Trainee Program (Phase I)" was held at Longtian School of Shenzhen Xin'an Middle School
(Group). This program is a key talent initiative for the company's future development aiming to select outstanding young individuals empower During the reporting period 141 people joined the Program. The Company adopts a four-step training model to foster a "star" by strengthening
their growth through on-the-job practice mentorship and systematic training and entrust them with important responsibilities in the future. professional skills enhancing communication abilities and assisting in discovering and nurturing young talents.Nearly 200 participants including group executives mentors and trainees attended the ceremony. Vice presidents and above were appointed
as mentors and a traditional apprenticeship ceremony was conducted. After speeches by mentor and trainee representatives founder Wang
Mingwang?presented?flags?to?three?trainee?classes?and?expressed?expectations?for?the?trainees.?This?program?marks?a?significant?step?in?
Sunwoda's talent development strategy reserving core strengths for future growth.
93 94Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Gold Team Leader Excellence Initiative Case The "Triple Blue Plan" is applicable not only to the preliminary training of interns from vocational secondary schools technical colleges and
undergraduate?institutions?but?also?to?the?advanced?training?of?technicians?technical?staff?and?assistant?engineers?currently?employed?at?Sunwoda.?
The?Initiative?adopts?a?training?method?that?combines?offline?classroom?instruction?with?action?learning?projects?involving?240?employees? Through strategic partnerships with educational institutions the Company implements early-stage talent development programs that integrate
across 11 business units with 11 practical instructors participating resulting in 107 proposal improvement reports. industry requirements student career trajectories and industrial cluster workforce needs. This approach incorporates industry-relevant resources
into academic environments through collaborative curriculum development dual-instructor systems and joint training facilities enabling deep
engagement from educational institutions enterprises and students to achieve synergistic development outcomes. For example the Lithium
Battery Excellence Engineer Joint Training Program with Dongguan University of Technology features a "Three Co-creation Model" where partners
jointly develop and implement industry-relevant coursework co-supervise graduation projects and collaboratively optimize operational processes
establishing an excellence engineering talent community that pioneers innovative "new craftsman" development methodologies.Developing Educational Materials Adopted as Official Undergraduate Engineering
Curriculum Resources Case
Sunwoda collaborates with multiple vocational/technical and undergraduate institutions to develop teaching materials and practical training
materials?among?which?five?lithium?battery-related?textbooks?including?Introduction?to?Engineering?Thinking?and?Methods?and?Materials?and?
Design of Lithium-Ion Batteries have become standard instructional resources for undergraduate engineering excellence programs.As?a?support?and?expansion?of?the?industry-education?integration?training?model?Sunwoda?offers?educational?
advancement?opportunities?and?external?certification?of?professional?skill?s?for?all?full-time?employees?ensuring?
that all employees have the opportunity to participate thereby aiding in developing and training more high-
Industry-Education Integration Model skilled talents. At the same time the Company provides a variety of support methods through skills competitions
new apprenticeships and other innovative measures to strengthen internal publicity and encourage employees
Sunwoda deeply practices the strategy of integrating industry and education guided by industrial demand and merging educational resources to?participate?in?academic?qualification?improvement?and?external?qualification?certification.with corporate practices. Sunwoda has established a department dedicated to cultivating new craftsmen through practices such as the "Four-Pillar
Model" and the "Triple Blue Plans." This integrates industry and education deeply connecting corporate production standards and technical skill
requirements?with?educational?teaching?processes?forming?a?training?system?characterized?by?unified?standards?resource?sharing?and?a?dual-
mentor model. The Company comprehensively enhances the quality of skilled talent training through joint curriculum design textbook development Educational Advancement Initiative Case
and training base construction providing high-quality job-ready talent support for the development of industrial chain clusters and creating a win-
win new situation for school-enterprise cooperation and skill training. To provide employees with broader career development opportunities and improve their overall talent capabilities Sunwoda partners with
several schools to establish pilot classes for the modern apprenticeship system and carry out educational advancement initiative. The Company
has collaborated with Shenzhen Vocational School of Continuing Education and Training and Guangdong Communication Polytechnic to
establish a dual-system vocational college program. The school-enterprise partnership has jointly built training facilities conducted dual-
Position-Based Standard Setting Standard-Based Curriculum Development instructor training organized company visits and produced 13 integrated industry-education textbooks. Meanwhile the Company has also
partnered with The First Vocational Technical School of Shenzhen to establish a Dream Craftsman Class. As of the end of the reporting period
The Company develops occupational standards The Company collaborates with educational institutions after three years of joint training 21 individuals successfully graduated from the dual-system vocational college program and obtained
based on the technical skills and professional to build integrated industry-education curricula based on nationally recognized credentials with 18 individuals continuing their employment with Sunwoda representing a retention rate of 78%.competencies?required?by?specific?job?positions?or? established occupational standards aligning teaching
job families ensuring standards align with actual standards with occupational standards teaching content
workplace requirements. with industry needs and teaching processes with
production processes.Four-Pillar
Model
Curriculum-Informed Instructor Development Job-Oriented Training Environment Establishment
Guided by high-quality curriculum requirements the According to the technical skills and professional
Company?selects?and?develops?a?group?of?highly?qualified? qualities required by occupational positions (groups)
specialized and capable technical experts and educators the Company has established three types of training
empowering both corporate mentors and school teachers bases as preliminary and transitional stations for
and strengthening its dual-instructor teaching workforce. cultivating new craftsmen solidifying a high-quality
This emphasizes cooperation with educational institutions to and rapid growth platform.build a dual-instructor team through mutual integration.Dream Craftsman Class Dual-System Vocational College Program
95 96Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
The?Company?supports?and?encourages?all?employees?to?participate?in?degree?programs?and?external?qualification?certification?assessments?and?
provides?certifications?of?vocational?skill?level?for?multiple?positions.?For?employees?who?pass?the?certification?the?Company?offers?corresponding? "Revitalization Cup" Battery Manufacturing Professional Skills Competition Case
subsidies and rewards to motivate continuous learning and growth. In 2024 Sunwoda hosted the "Revitalization Cup" Battery
In?2024?Sunwoda?obtained?the?qualification?for?independent?evaluation?of?professional?titles?in?lithium?battery?engineering?at?the?associate?professor? Manufacturing Professional Skills Competition in Jiangxi
level?and?below?in?Shenzhen?and?conducted?the?first?batch?of?independent?evaluation?with?35?individuals?being?awarded?titles.?The?Company? Province providing a platform for employees in the battery
promoted?the?development?of?technical?and?skilled?talents?implementing?"single?evaluation?dual?certificates"?with?17?individuals?obtaining?both? manufacturing industry to showcase their skills and engage
certificates?(professional?title?certificate?and?vocational?skill?qualification?certificate). in learning and communication. This competition has
received widespread attention and positive responses
from all sectors of society with a total of 86 participants.The competition focuses on the intelligent operation
During the reporting period and maintenance of the smart production line for new
energy battery PACK a typical battery manufacturing
process which aims to assess contestants' comprehensive
A total of 1193 abilities related to the network planning design security
employees registered for the protection planning intelligent manufacturing operation
vocational?skill?qualification? and maintenance integration debugging data collection
and monitoring security alarm indicators and threshold
certification?with?1001 systems equipment and production line health assessment
passing including 5 senior production line working environment early warning and
real-time operation monitoring as well as their adaptability
technicians. and professional qualities in practical scenarios. In the end
the contestant from Nanchang Sunwoda emerged as the
champion in the employee group.Independent Evaluation of Professional Titles
Modern Apprenticeship Training Program Case
In 2024 Sunwoda established a new apprenticeship professional skills training program piloting it in two major business departments and
building?a?four-in-one?training?system?of?"online?courses?+?offline?theory?+?practical?operation?+?on-the-job?training"?with?a?total?of?286?people?
completing the training.Comprehensive Competency Evaluation of Battery
Practical Skills Evaluation for Battery Testing Technicians Manufacturing Technicians
Theoretical Knowledge Examination for Maintenance Machinists
97 98Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Employee Wellbeing 3rd Sports Meeting Case
Sunwoda has established a "three-in-one" corporate culture communication system forming a multi-dimensional communication matrix through In 2024 Sunwoda held the 3rd Sports Meeting. The event attracted active participation from employees across various departments. The sports
official?WeChat?accounts?short?video?accounts?and?the?semi-annual?publication?Sunwoda?People.?On?the?cultural?dissemination?front?the?WeChat? meeting?included?track?and?field?events?fun?events?and?team?tug-of-war.?This?meeting?not?only?enhanced?employees'?physical?fitness?but?also?
accounts and video channels deliver weekly high-quality content and monthly themed cultural initiatives to promote corporate culture; while the further promoted collaboration and friendship among teams fostering a spirit of striving for progress.Sunwoda People publication deepens cultural heritage through its "Craftsmanship Legacy" special edition showcasing employee excellence.Additionally the Corporate Culture Department collaborates with multiple business units to create a cultural promotion matrix through 11
communication sub-programs. Throughout the year 213 articles were published generating over 850000 total views and clicks.In developing feedback mechanisms the Company conducted an enterprise-wide corporate culture survey with three assessment dimensions:
"concept recognition" "activity engagement" and "environment satisfaction" collecting 5195 valid responses. By establishing a "request-response-
improvement"?closed-loop?mechanism?employee?suggestions?were?transformed?into?specific?cultural?initiatives?indeed?evolving?corporate?
culture from "one-way delivery" to "bilateral engagement." This approach builds development consensus through active listening and enhances
organizational warmth through continuous improvement.In 2024 Sunwoda comprehensively launched the "Spring Rain Nurtures Hearts" employee care program establishing a multi-dimensional
humanistic care system. Throughout the year the Company meticulously organized 28 distinctive activities across 5 major categories including
the sixth "Cultural Festival" showcasing employee talents the "Innovation Competition" stimulating employee creativity the "Choral Competition"
fostering team resonance company-wide sports events strengthening team cohesion and prestigious annual ceremonies and celebrations.During the reporting period the Company developed 17 specialized care initiatives creating a comprehensive care network covering over 50000
employees?across?all?national?industrial?parks.?Statistics?show?that?total?online?and?offline?participation?in?these?cultural?activities?exceeded?50000?
person-times with all Sunwoda employees jointly participating in and practicing the corporate culture. This created a vibrant environment where
"spring?rain?nurtures?silently?and?care?touches?hearts"?effectively?enhancing?employees'?sense?of?belonging?and?organizational?cohesion.Cultural Performance Case
Sunwoda organized internal and external cultural performance activities involving over 60 employees. Through various forms such as
Catering Supervision Committee Case singing and dancing skits and short plays the corporate culture was integrated into the performances to enrich employees' recognition and
understanding?of?Sunwoda's?philosophy?through?these?diverse?expressions.?The?activity?effectively?enhanced?team?cohesion?and?created?a?
To improve the quality of catering services and ensure that employees can enjoy a healthy delicious and safe dining experience Sunwoda warm and positive working atmosphere.established the Catering Supervision Committee provided professional training for committee members and supervisors dedicated to
comprehensive supervision and optimization of catering services through a series of measures. In 2024 the Catering Supervision Committee
encouraged employees to actively participate in catering supervision and learn more dietary knowledge by conducting activities such as the
"Clean Plate Campaign" and hosting the "3rd Chef Competition" .
3rd Chef Competition Catering Supervision Committee Inspection Visits
99 100Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Occupational Sunwoda builds a comprehensive occupational health and safety management system and regularly conducts safety training and emergency drills. The Company creates a safety culture
"Tongxin Cooperation" Series Projects Case Health and Safety atmosphere while strengthening emergency response protocols and occupational disease
prevention measures ensuring that every employee works and grows in a healthy and safe
Targeting employees' children Sunwoda launched the "Tongxin Cooperation" series projects including brand activities such as environment.the "Sunshine Youth Growth Camp" and the "Sunshine Youth Summer Camp" actively assist remote employees in overcoming
the challenge of childcare during the summer and provide diverse opportunities for science education and communication to
safeguard the healthy growth of teenagers. Improving Management System
* Sunshine Youth Growth Camp Sunwoda strictly adheres to the Law of the People's Republic of China on Prevention and Control of Occupational Diseases the Fire Protection Law
of the People's Republic of China the Work Safety Law of the People's Republic of China and other laws and regulations continuously improving
Sunwoda has held the "Sunshine Youth Growth Camp" for three consecutive sessions inviting employees' children to its occupational health and safety management system. The Company has established a PDCA management process for occupational health and
reunite with their parents at Huizhou Park. During the camp the Company provides a variety of courses for the children safety?continuously?improving?the?quality?and?efficiency?of?its?management?practices.?During?the?reporting?period?25?subsidiaries?obtained?ISO?
including summer homework guidance music dance painting handicrafts and safety education caring for the growth and 45001?Occupational?Health?and?Safety?Management?System?certification.development of the children.Sunwoda accelerates its digital transformation of work safety by launching the EHS digital platform. This platform features automatic information
retrieval and updates and automatic task reminders in the "dual prevention mechanism" "holiday safety control" and "special permits management"
modules.?In?2024?the?Company?constantly?strengthened?smart?management?and?promoted?the?integration?of?safety?and?fire?control?with?AI?video?
monitoring?making?significant?progress?in?timely?eliminating?fire?hazards?and?monitoring?road?safety?and?employee?misconducts.In addition Sunwoda continued to strengthen the occupational health and safety management of suppliers by regularly conducting audits of
suppliers' occupational health and safety management systems. During the audit process if any non-conformities are found with the supplier
Sunwoda?will?promptly?inform?the?supplier?and?confirm?the?issues?identified?in?the?audit?ensuring?that?the?supplier?has?a?clear?understanding?and?
acknowledgment of the non-conformities. At the same time the Company will strictly review the corrective actions submitted by the supplier and
Sunshine Youth Growth Camp provide guidance when necessary to assist the supplier in completing the closed-loop improvement.* Sunshine Youth Summer Camp
Additionally to enrich the summer life of employees' children and enhance employees' sense of belonging and happiness the
Party Committee and the Trade Union of Sunwoda jointly organized the 2024 "Friends with Children" Sunshine Youth Summer
Camp which continued the excitement and fun of previous years introducing new activities such as safety science education The environment where the The?needs?and?expectations?of?staff?
city exploration and caring visits to elderly communities. In the caring visits to the elderly communities children participated Internal and external issues organization operates and other stakeholders
in?a?series?of?interactive?activities?including?delivering?flowers?and?gifts?storytelling?by?elderly?party?members?singing?
revolutionary songs and handcrafts such as fan painting all to provide care and companionship for the elderly. Scope of Occupational Health and Safety Management System
P
Planning
A D
Sunshine Youth Summer Camp
Improvement Leadership and staff Support and
participation Operation
C
Performance
evaluation
Sunshine Youth Summer Camp Expected outcomes of the
occupational health and safety
management system
101 102Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Work Safety Optimizing Emergency Management
Safety Management Structure Sunwoda has established a Work Safety Committee. The Committee is chaired by the Sunwoda has formulated and updated internal regulations such as the Emergency Response and Response Management Regulations the
Chairman with the General Managers of each subsidiary serving as the primary responsible Management Regulations for Fire Emergencies the Emergency Rules for Severe Weather the Emergency Rules for Non-Work Safety Incident and the
persons?for?work?safety.?They?oversee?work?safety?fire?protection?environmental?protection? Rules?for?Firefighting?Equipment?and?Emergency?Supplies?to?ensure?they?meet?actual?management?needs.?The?Company?has?established?a?safety?
Chairman of the Work Safety Committee/Fire
and other related matters. The Work Safety Committee bears ultimate responsibility for the emergency?organization?which?includes?six?functional?groups?such?as?the?command?team?and?communication?team?to?ensure?timely?and?effective?
Safety Committee (Chairman of the Board of
Company's comprehensive safety management system and is responsible for coordinating handling of sudden work safety accidents.Directors)
and?guiding?the?implementation?of?work?safety?efforts?across?the?enterprise.For production safety the Company has developed the Emergency Plan for Work Safety Accidents prepared emergency supplies assigned dedicated
Sunwoda strictly abides by key national policies integrates and optimizes about 50 personnel for management and regularly conducts daily inspections maintenance and updates or scrapping of emergency supplies. Sunwoda has
Executive Vice President documents related to work safety including the Environment Health and Safety Manual established emergency response procedures to ensure the smooth and orderly conduct of emergency response work.the Emergency Response and Response Management Regulations and the Management
Regulations for Fire Emergencies in conjunction with the Work Safety Law of the People's Emergency response procedures
Republic of China and the Company's own situation to strengthen the standardization of
Fire Safety Committee work safety management. Incident occurrenceOn-site emergency
In?terms?of?work?safety?Sunwoda?has?set?an?overall?goal?of?"prevention?first?elimination?of? response
Vice President of the Work Safety Committee/ potential hazards implementation of measures technical safeguards resolute prevention Report to the safety Immediately Activate emergency response
Fire Safety Committee of major and extremely major accidents containment of larger incidents and rigorous department plan (on-site personnel)
prevention of mass incidents." The Company formulates corresponding medium- and long-
term?work?safety?goals?and?plans?every?five?years?based?on?actual?conditions?and?has? Report to department
Primary responsible person for Work Safety/ established an annual work safety goal of zero major production safety accidents. Sunwoda leaders Incident?effectively?controlled?
Fire Safety in subsidiaries Communication teamis?goal-oriented?and?is?committed?to?enhancing?management?efficiency?and?ensuring?work? or not
safety by implementing various measures.No Evacuation and alert
Management Team of subsidiaries The Company links safety performance to performance evaluation. Each month Sunwoda
team
supervises the safety performance of each subsidiary and ties the quarterly and annual Activate internal special/ Rescue and disaster
bonuses of general managers and above to safety performance. Monthly performance comprehensive emergency relief team
assessments and quarterly statistics are conducted in accordance with the requirements plan
During the reporting period of documents such as the Rules on Environmental Health and Safety Performance YesPark security department Medical rescue team
1 Measurement and Assessment the Management Rules on Work Safety Rewards and Investment in work safety requests external support
Penalties Noensuring that work safety goals and responsibilities are implemented at all levels. (119/110/120) Incident?effectively?controlled?
Transfer command or not Logistics support team
RMB 3647.96 ten thousand authority to government Yes
Number of major production safety
Incident control Emergency recovery Lift alert
casualty accidents0 Site clearance
Post-incident
Risk Identification Sunwoda?conducts?a?comprehensive?identification?and?update?of?occupational?health?and?safety?risks?annually?to? handling
and Hazard ensure?the?timeliness?and?effectiveness?of?the?management?system.?When?there?are?changes?in?processes?equipment?
Identification updates or other related changes relevant risk information will be updated in real time to ensure that risk control Work injury declaration
measures are always aligned with actual conditions. Incident investigation
Comprehensive
To?effectively?manage?work?safety?Sunwoda?has?established?a?dual?prevention?mechanism?working?leadership? Implementation of the
2024 group and a hidden danger investigation and management system while regularly organizing comprehensive risk Four No-Exemption Closure Principles
identification?and?assessment?work?organizing?the?establishment?and?implementation?of?dual?prevention?mechanism?
Organized safety for?safety?risk?classification?and?control?and?hidden?danger?investigation?and?management?identifying?the?internal?
inspections risks?of?the?company?and?establishing?the?four-color?chart?of?safety?risks?in?each?area?and?the?post?risk?notification?card.? Fostering a Culture of Work Safety
4189 For?the?identified?risks?the?company?formulates?control?measures?according?to?the?actual?situation?to?reduce?the?safety? Sunwoda builds a work safety education and training system to create an enterprise-wide culture of safety awareness.risks.
Rectified?safety? Sunwoda regards regular safety inspections as a fundamental aspect of safety management has established a Work safety education and training system
hazards monthly safety inspection system conducting comprehensive safety audits of production equipment and operating
procedures each month. In response to the potential production peak during the holiday period the Company will
26745 organize a comprehensive safety inspection before the holiday to identify risks in advance and ensure production safety Three-level work safety Work safety education for Monthly online safety Work safety promotion during the holiday. Additionally the Company also conducts special safety inspections and cross-departmental joint education for new employees returning or training?exam?for?all?staff before and after shifts
inspections?focusing?on?specific?equipment?or?operational?links?to?thoroughly?investigate?potential?issues. employees transferring positions
1 The statistics of investment in work safety does not include Sunwoda Vietnam.
103 104Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Guarding Occupational Health
Sunwoda?provides?employees?with?convenient?access?to?safety?knowledge?through?various?promotional?channels?such?as?official?WeChat?accounts?
short videos and bulletin boards enhancing employees' safety awareness and creating a culture where "everyone talks about safety and everything Sunwoda?places?great?importance?on?the?physical?and?mental?health?of?its?employees.?To?effectively?prevent?and?control?occupational?health?risks?
is for safety". and protect employees' occupational health rights Sunwoda has established a series of regulations including the Regulations for Occupational
Health Management the Regulations for Occupational Health Labor Protection and the Rules for the Control of Labor Protection Supplies to
The Company organizes activities such as Fire Safety Month and Safety Month every year. Incentive mechanisms have been established to stimulate comprehensively promote and implement occupational health protection measures.employees' participation in safety management. An online safety exam is conducted for all employees once a month covering multiple themes
including safety knowledge occupational health and mental health. To improve employee participation Sunwoda incorporates exam completion Regular workplace hazard evaluations in the working environment every year to ensure that the environmental conditions of the workplace meet
rates?into?the?assessment?system?and?sets?up?a?prize-based?incentive?mechanism?effectively?increasing?employee?engagement?with?a?participation? national and industry safety standards thereby safeguarding employees' health and safety at the source. For employees engaged in positions
rate of over 98% in 2024. with occupational disease hazards Sunwoda strictly organizes regular health screenings in accordance with the requirements of the Technical
Specifications?for?Occupational?Health?Surveillance?establishes?comprehensive?health?records?promptly?identifies?and?addresses?potential?health?
In addition the Company actively conducts emergency training and drills to enhance employees' safety and emergency capabilities. In 2024 the issues. The Company also uses an information platform to implement online management of occupational health examinations improving
Company?carried?out?a?series?of?safety?activities?including?annual?fire?drills?Emergency?Response?Team?(ERT)?drills?volunteer?firefighter?training? management?efficiency?and?transparency.vehicle injury emergency drills radiation emergency drills and chemical spill emergency drills.Sunwoda optimizes the usage of personal protective equipment (PPE) and implements strict control over special labor protection products with
the?"Three?Certificates?and?One?Mark"?(Production?License?Certificate?Product?Quality?Certificate?Safety?Assessment?Certificate?and?Safety?Mark).?
For positions with occupational disease hazards the Company clearly requires that the rate of personal protective equipment usage by employees
During the reporting period reaches 100%. By strengthening training and education Sunwoda ensures that employees fully understand the importance of PPE and the correct
wearing methods. The Company also regularly conducts on-site inspections to check employees' PPE wearing status and the usage of labor
Training coverage on risks and protective Emergency drills Total participation of protection products promptly correcting non-compliant behaviors.measures for all operational processes emergency drills
100% 1413 times 53860 person-times
The Company conducted a series of training and activities related to employee occupational health such as the "Occupational Health Promotion
Week" event training on the use of hazardous chemicals safety management training for special equipment radiation safety and protection training
etc. to enhance employees' awareness of occupational health and self-protection capabilities.During the reporting period
Occupational disease health check
rate for front-line employees
100%
Fire Safety Month activities Work Safety Month activities
Occupational disease 0 case
Occupational Health Promotion Week
Emergency Response Team (ERT) drills Radiation emergency drills
Hazardous Chemicals Training
First aid training Safety knowledge competition
105 106Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
The Company places great importance on employee mental health. To proactively identify and assist employees with poor mental health Sunwoda "2485" Response Protocol
launched the "Peace-of-Mind" Program for employees dedicated to maintaining the physical and mental well-being of employees.Emergency Cause analysis
First response measures and countermeasure Long-term solutions and
Peace-of-Mind Program for Employees Case within 2 hours second response formulation and third preventive measures within 5 days
In?2024?the?"Peace-of-Mind"?Program?for?employees?provided?training?for?personnel?in?specific?functional?departments?and?frontline?managers? within 24 hours response within 48 hours
to?help?them?promptly?identify?employees?experiencing?mental?health?concerns?and?offer?timely?care?and?support.?At?the?same?time?the?
Company uses internationally recognized mental health scales to conduct mental health assessments for employees making preliminary
Sunwoda establishes various customer feedback channels including a customer service hotline an online customer service platform and email
judgments about their mental health status and implementing graded and categorized intervention measures. Additionally the Company
feedback. The customer service hotline is available 24/7 ensuring that customers can contact Sunwoda whenever needed. Moreover the information
established mental health consultation meeting rooms on the production line and conducted free mental health clinics thereby enhancing
on?feedback?channels?is?marked?on?Sunwoda's?official?website?and?product?packaging?for?easy?customer?access.employee well-being.To enhance communication with customers and improve service levels Sunwoda regularly conducts customer satisfaction surveys. The Company
adopts two forms of surveys: questionnaires and telephone interviews covering multiple dimensions such as product quality performance
timeliness of delivery and after-sales service. The Company uses statistical software to analyze the survey results and issues a Corrective and
Preventive?Report?based?on?the?findings?assigning?specific?responsible?persons?to?address?customer?issues.Sunwoda has implemented a real-time feedback and tracking improvement mechanism. On one hand customer evaluations are used to improve
services and products with regular summaries and analyses of customer feedback to identify common issues and make improvements to product
design or production processes. On the other hand customer ratings are also considered one of the important indicators for internal assessments.For departments related to customer satisfaction such as sales and after-sales the handling of customer feedback and the improvement of
customer satisfaction are included in the employee performance evaluation system to encourage employees to prioritize customer satisfaction.Peace-of-Mind Program for Employees Free Clinic Activities Sunwoda?values?the?confidentiality?of?customer?information?and?strictly?adheres?to?the?confidentiality?agreements?signed?with?customers.?In?the?
Management Regulations on Business Ethics Sunwoda stipulates that all employees responsible for business must participate in information
confidentiality?training?to?ensure?effective?protection?of?customer?privacy.?To?prevent?information?leakage?between?different?projects?the?Company?
Creating Customer Value has?established?dedicated?information?protection?measures?and?strict?information?isolation.?For?certain?customers?with?specific?needs?the?Company?has?also?specially?equipped?independent?production?areas?to?further?ensure?the?confidentiality?of?customer?data?and?production?processes.Sunwoda?consistently?upholds?the?customer-first?philosophy?and?is?committed?to?providing?high-quality?services?to?meet?customer?needs?and?
enhance?customer?satisfaction.?In?the?field?of?customer?service?Sunwoda?has?built?a?comprehensive?and?multi-tiered?service?system?that?effectively?
safeguards customer rights through responsible marketing management laying a solid foundation for the Company's long-term development.Responsible Sunwoda incorporates responsible marketing into its sustainable development strategy and objectives. The ESG management department regularly inspects and evaluates the Company's
Customer Sunwoda?adheres?to?the?"customer-first"?principle?and?is?committed?to?building?strong?customer? Marketing marketing activities to ensure that marketing practices comply with ESG standards. At the same
Relationship relationships through multiple channels. The Company has established the Customer Complaints time to enhance employees' awareness of responsible marketing the Company regularly holds Handling Procedure and?the?"2485"?response?protocol?which?clarifies?the?responsibilities?and?
Management and responsible marketing training.response?times?for?each?node?in?the?entire?process?to?improve?the?efficiency?of?handling?customer?
Quality Service complaints.Sunwoda regularly organizes employees to participate in marketing skills and compliance training
Quality complaints from customers Cause analysis Marketing Skills to improve their professional quality and sense of responsibility. The training content includes
and Compliance product knowledge marketing skills laws and regulations and professional ethics urging that
Training employees can consciously comply with relevant laws and regulations as well as the Company's
rules and regulations avoiding violations during the marketing process. The training also helps
Customer evaluation Improvement plan employees to accurately and professionally introduce product information to customers.Customer satisfaction No
Customer acceptance
Through case analysis and early-warning education employees can deeply understand the harm
92.89% Case Analysis and and consequences of improper marketing behaviors such as misleading exaggerating and fraud. Yes
Early-Warning At the same time typical cases from the industry are selected for analysis guiding employees
Education to establish correct marketing concepts and enhancing their awareness of compliance and risk
Customer satisfaction Improvements prevention so as to fundamentally eliminate the occurrence of improper marketing behaviors.
107 108Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Establishing Responsible Supply Chain
Procurement Manager Training Program (MTC) Workshops Case
In 2024 Sunwoda Energy Technology collaborated with third parties to conduct MTC workshops. More than 260 participants including On the basis of ensuring that suppliers meet requirements for robust operations sustainable supply stable quality and technological innovation
the President of Sunwoda Energy Technology senior executives at all levels regional and business line leaders and all sales members Sunwoda continuously strengthens responsible supply chain management further emphasizes its capabilities in sustainable development
participated in the training. This training enhanced customer-centric awareness helping to provide accurate marketing solutions. globalization digital transformation and smart manufacturing collaborates with partners to pursue a sustainable future.Supply Chain Resilience
Sunwoda respects the UNGC's Ten Principles. To comply with EU battery regulations and customer requirements the Company has launched the
"Low-Carbon Development in the Supply Chain" initiative integrating the "Carbon Peaking and Carbon Neutrality" requirements into supply chain
management. This initiative aims to create outstanding case studies and develop mature solutions.In accordance with the SA8000 Social Accountability Standard the Responsible Business Alliance (RBA) Code of Conduct and relevant laws
and?regulations?Sunwoda?has?established?and?continuously?optimized?its?sustainable?supply?chain?system.?The?Company?has?refined?supplier?
management processes and developed a series of policies and internal documents including the Sustainable Supply Chain Manual the Supplier
Management Process the Supplier Code of Conduct the Sustainable Supply Chain Operation Mechanism the Guidelines for Sustainable Supply
Chain Policy Implementation and the Supplier Audit Report (Sustainability). These measures aim to better control suppliers' sustainable development
and performance fostering collaborative development across the entire value chain and ensuring the Achievement of Objectives for Managing
Suppliers to Meet the Company's Sustainable Procurement Requirements.To?effectively?implement?the?Group's?sustainable?development?strategy?and?execute?various?initiatives?within?the?sustainable?supply?chain?the?
Group Procurement Center has coordinated across all business segments to establish a specialized organization for supply chain sustainability—the
MTC Marketing Training Supply Chain ESG Subcommittee. This subcommittee coordinates and synchronizes sustainable supply chain development work across all business
units?continuously?promoting?the?efficient?operation?and?refined?development?of?supply?chain?management.?Additionally?Sunwoda?continuously?
optimizes the complaint mechanism for sustainable supply chain development enhancing the transparency of supply chain management.CRM System Marketing Training Case Based on this Sunwoda has built a digital platform for supply chain management (SRM) to implement supplier management performance
management sourcing management contract management and procurement execution. The Company also developed multiple automation
modules online collaboration between the procurement and supplier ends and deep integration with enterprise OA ERP SCCP and other systems
In 2024 Sunwoda launched the CRM system on the Sunwoda Learning Platform providing online marketing training for sales personnel. The
further?improving?operational?efficiency?and?supply?chain?transparency?and?enhancing?Sunwoda's?supply?chain?management?capabilities?and?risk?
training standardized processes related to customer communication visit reports weekly reports and formats contract reviews and order
resistance.reviews and utilized IT tools to regulate the sales behavior of sales personnel reinforcing their sense of responsibility.
2024 Supply Chain Management Measures of Subsidiaries (Selected)
The 3C Liwinon sector has included 23 suppliers The Power Technology sector The Intelligent Hardware
with an emission proportion of over 90% in the has established a supplier ESG sector has issued the Supplier
management scope of the Liwinon Supplier management system according Battery Safety Management
Carbon Reduction Program. These suppliers to the RECD strategy. It uses the Plan for promotion signed the
have signed emission reduction commitment Sunwoda Supplier Sustainable Supplementary Agreement to the
letters pledging to reduce the carbon footprint Development Evaluation Form Quality Assurance Agreement
of products supplied to Lithium Power by 34% for regular supplier reviews and launched a monthly self-
by 2030. Based on these commitments Liwinon invites third-party institutions for inspection action named the
has established audit protocols for annual supplier audits and accepts third- Battery Safety Checklist achieving
verification?and?requires?suppliers?to?develop? party sustainable development a 100% coverage rate for a total
plans for 100% renewable energy utilization for certifications?such?as?RBA?and?RMI? of 16 battery suppliers.products supplied to Liwinon. As of 2023 11 of as appropriate.these suppliers have already completed their
renewable energy transition plans.
109 110Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Concurrently Sunwoda actively engages in supply chain risk management to strengthen supply chain resilience. The Company includes the Supplier Supplier Qualification
Risk Assessment Form in the Supplier Evaluation and Monitoring Management Process and conducts risk assessments based on its needs. The
Company?uses?SRM?system?audits?and?other?methods?for?comprehensive?risk?tracks?and?controls?such?as?supplier?qualifications?delivery?quality? Sunwoda follows the Supplier Development Procedure ?in?the?supplier?qualification?process?focusing?on?ESG-related?qualification?indicators?setting?
material?certifications?pricing?inventory?and?the?impact?of?natural?disasters?aiming?to?minimize?supply?chain?risks?and?ensure?supply?chain?security. baselines?for?primary?categories?and?evaluating?new?suppliers?based?on?these?baselines.?To?effectively?manage?the?social?and?environmental?
impacts of the supply chain the Company requires all new suppliers to sign the Supplier Code of Conduct which covers ESG management systems
Supply chain resilience management integrity?and?business?ethics?ISO?certifications?human?rights?and?environmental?aspects.?Sunwoda?also?stipulates?environmental?management?
requirements for production materials in documents such as the Quality Assurance Agreement and the Supplier Material Environmental Declaration
Commitment Letter. Relevant suppliers are required to sign and adhere to these documents as needed.Contract Material supply sources Management system
Management
system Certified?with?ISO?14001?ISO?45001?ISO?9001?and?other?system?certifications
* Sign supply agreements with * Increase material sources and * System monitoring and early
exclusive suppliers. implement quota allocations. warning for timely response to Business?ethics?anti-discrimination?working?hours?compensation?and?benefits?anti-child?labor?and?forced? ESG risk
Conduct regular supplier capacity purchase plans and timely order labor occupational health and safety environmental protection etc. assessment
surveys and analyze the match delivery along with reports to ensure
between supply and demand. procurement personnel's quick To comply with relevant laws and regulations as well as Sunwoda's customer requirements for environmental management substances such as
confirmation?and?treatment.* Adjust quotas based on supply EU REACH Regulation (EU Regulation No. 1907/2006) EU RoHS Directive (2011/65/EU) China's Administrative Measures on the Control of Pollution
conditions. * Set safety stock in the system based Caused by Electronic Information Products and other legal regulations and customer requirements suppliers are required to fully implement a
on?material?categories?to?offset? hazardous substances management system. The Company has established Technical Standards for Environmental Management Substances
demand?fluctuation?risks. requiring raw material suppliers to hold valid industrial "three wastes"(waster water waster gas solid waster) discharge permits sign contracts
with?qualified?third?parties?for?the?transportation?of?hazardous?waste?and?maintain?detailed?transportation?lists?to?ensure?strict?compliance?with?
regulations on wastewater exhaust gas and hazardous solid waste treatment.Supplier Audit
Supplier Sunwoda has established a series of practical evaluation and management methods for supplier Sunwoda continuously optimizes the supplier audit mechanism and implements graded and categorized supplier management. The Company has management from development to cooperation ensuring compliance with laws regulations and customer
Management established a complete audit process to ensure suppliers comply with and adhere to the Supplier Code of Conduct.requirements. The Company also proactively shares industry knowledge and best practices with suppliers to
promote the sustainable development of the supply chain jointly. Supplier audit process
In 2024 Sunwoda released the supplier evaluation model—the SUCCESS Supplier Evaluation System.In addition to requirements for robust operations sustainable supply stable quality and technological System Audit summary Supplier self- On-site audit
innovation capabilities this system emphasizes new suppliers' capabilities for green and sustainable Audit plan documentation On-site audit and closing assessment onboarding
development global expansion digital transformation and smart manufacturing further strengthening review meeting
supply chain accountability. Sunwoda Suppliers conduct Sunwoda Sunwoda Sunwoda conducts Sunwoda
clarifies?the? self-assessments introduces reviews the on-site inspections summarizes
Second-tier supplier objectives according to the the audit's supplier's quality of production audit?findings?
Overseas expansion overseas management core resources scope schedule audit standards
purpose and management processes proposes
Global Sustainable and technologies control risk and personnel prepare relevant process?clarifies? system equipment and improvement supply network shared
both parties' documents to facilities and suggestions and
international experience expansion supply resilience arrangements materials and get
Digital of the audit ready for the on-
responsibilities ensure they management communicates
Specialized roles and
to ensure an site audit. and builds comply with records to verify the with suppliers
Automation informatization transformation responsibilities proactive quality SUCCESS orderly audit. an audit audit standards implementation of to?confirm?audit?
intelligentization greening and smart Stable management implementable supplier communication and regulatory system documents. results.specialization manufacturing quality design quality digital evaluation mechanism. requirements.manufacturing quality
system
Patent layout R&D investment For?key?qualified?suppliers?Sunwoda?will?track?and?maintain?the?supplier's?ISO?certification?system?and?conduct?annual?audits?as?well?as?on-site?ESG strategy and system carbon Green and
Technological open collaboration and audits based on business needs. For suppliers' non-conformities the Company will notify suppliers of the issues and require improvement plans reduction initiatives responsible sustainable
procurement development innovation technological co-innovation
for?review?and?confirmation.?Sunwoda?will?provide?necessary?guidance?and?assistance?to?suppliers?during?the?rectification?process.?For?suppliers?
Steady meeting customer needs with failing?to?meet?the?standards?after?rectification?the?Company?has?established?exit?mechanism?which?includes?supplier?freezing?category?freezing?
operation technology qualification?cancellation?and?blacklisting.In addition Sunwoda promotes the company's Supplier Code of Conduct and other supply chain ESG management policies to suppliers and
regularly conducts behavioral assessments to track performance. During the reporting period Sunwoda has upgraded the CSR part of the supplier's
annual audit form to sustainable development audit content and the independent CSR audit form to a sustainable development form. The company
Finance business organization risk has added a Supply Chain Sustainable Development Manual to provide operational guidance for supplier sustainable development audits.management
111 112Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Sunwoda Sustainability Audit Items Supplier training
In 2024 Sunwoda revised its audit evaluation criteria in accordance with the Sustainability Management Manual. Among these the on-site
Sunwoda actively carries out sustainability training for suppliers to enhance their capabilities in robust operations digital transformation and clean
sustainability audit report has added 30 audit items across 11 audit areas including child labor and underage labor forced labor freedom of
development. It collaborates with multiple partners to build a sustainable supply chain in the industry.association and communication working hours and wages business ethics chemical safety accommodation and canteens equipment safety and
health environmental protection climate change and circular economy based on the original CSR audit report. These include whether biodiversity is
integrated?into?sustainability?management?for?both?the?Company?and?its?suppliers?certification?of?the?proportion?of?renewable?materials?used?whether? Supply Chain Sustainability Conference Case
the circular economy is incorporated into the Company's sustainability management and supply chain management and whether carbon footprint has
been conducted. Additionally 25 audit items across 9 areas have been revised including forced labor discrimination and discipline working hours and In September 2024 Sunwoda held a Supply Chain Sustainability Conference at its headquarters in Shenzhen. Wang Mingwang the founder
wages?fire?safety?chemical?safety?equipment?safety?and?health?accommodation?and?canteens?environmental?protection?and?management?systems. of Sunwoda and other senior executives along with representatives from more than 10 suppliers attended the event in person. Meanwhile
representatives from over 100 suppliers actively participated in the conference through online platforms to jointly explore sustainable
development in the supply chain.Main content of the Supplier Code of Conduct
At the conference Sunwoda provided an in-depth interpretation of its enterprise sustainable development strategy and supply chain
Category Content Requirements sustainability management initiatives. The Company also expressed its deep commitment to implementing the strategy by developing green
core technologies proactive and ahead-of-time investment layouts and empowering collaborative development across the entire industry
Suppliers?should?fulfill?corporate?social?responsibilities?and?operate? Compliance with regulations business chain. Moreover invited suppliers were encouraged to share their experiences and insights on sustainable supply chain development based on
in compliance with laws and regulations ensuring that all business integrity absence of improper advantages their own development situations.activities adhere to the highest standards of integrity. Whistleblowers information disclosure intellectual property
Legal compliance and can access multiple reporting channels and report through the and other requirements.business ethics Sunwoda?official?website.Suppliers should respect employees' human rights practice good Against forced labor; prohibition of child
employment behavior and treat them with dignity and respect. This labor and underage labor; legal working
section applies to all employees including temporary workers foreign hours;?wages?and?benefits;?prohibition?of?
Human rights and laborers?student?workers?contract?staff?direct?employees?and?any? discrimination harassment and abuse;
labor other types of employees. freedom of association and collective
bargaining rights etc.Suppliers should provide employees with a healthy safe hygienic and Occupational health and safety emergency
decent?working?environment.?Necessary?and?effective?health?and?safety? preparedness work injuries and illnesses
permits should be obtained and adhered to and working conditions industrial hygiene health and safety
Health and safety should meet or exceed regulatory requirements and industry standards. communication etc. Supplier Conference for Consumer Product Sector Case
Sunwoda's?Consumer?Product?Sector?convened?a?supplier?conference?to?build?a?sustainable?supply?chain?by?reaffirming?management?
Possess valid discharge permits standards in supplier evaluation supplier integrity and ESG collaborative promotion.environmental permits and reports; strictly
implement regulations on wastewater During the meeting the Company promoted its transparent procurement policy and established dual integrity reporting channels for both the
exhaust gas and hazardous solid waste Company and executive management reinforcing the construction and training of supply chain integrity. The Company also communicated its
Suppliers should protect the environment and develop environmentally treatment; manage the environment of high- supply chain ESG management policy to suppliers urging them to advance energy conservation emissions reduction renewable energy use
friendly technologies products and businesses to reduce impacts pollution outsourcing process factories; and and recycled materials ratios among other collaborative supply chain ESG initiatives.on climate change water security soil pollution biodiversity primary search the environmental performance of
forests and indigenous communities. They should also continue sub-suppliers and outsourcing factories (e.g.material?reuse?and?recycling?to?fulfill?environmental?responsibilities?
Environment hazardous substances restricted substances
such as protecting natural resources and reducing the carbon footprint exhaust gases and noise pollution prevention
of product life cycles. and resource protection circular economy
biodiversity etc.) through the IPE website.Sunwoda also appoints environmental
specialists to review suppliers' environmental
data?for?material?certification.Suppliers should adopt or establish management systems related to Management systems responsible
Governance and the scope of this Code. procurement etc.supply chain
113 114Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Procurement Sunwoda's measures for responsible minerals procurement in 2024
Sunwoda is dedicated to building a safe compliant and sustainable battery supply chain system. Through systematic responsibility governance
risk control and multi-party collaboration mechanisms the Company comprehensively traces sources for harmful substances in raw materials and In?2024?Sunwoda?refined?its?Management Regulations on Responsible Minerals Procurement clarifying
conflict?minerals?ensuring?transparency?and?traceability?in?the?supply?chain.?Additionally?the?Company?promotes?the?effective?implementation?of? departmental roles in mineral management and detailing due diligence requirements. These regulations
human rights protection and environmental responsibility across the entire chain. include investigations during the new material introduction annual checks and investigation results
Sunwoda has established a responsible minerals management system guided by the Strategy and Sustainable Development Committee and treatment?steering?the?supply?chain?away?from?conflict?minerals.?
supervised?by?the?Sustainable?Development?Management?Committee.?This?system?clearly?defines?the?collaborative?responsibilities?of?various? Management
departments including the Sustainable Development Centre Procurement Center Quality Center and various Business Departments. The Company regulation Sunwoda has established long-term cooperation with most suppliers. At the initial stage of collaboration
strictly adheres to the OECD?Due?Diligence?Guidance?for?Responsible?Supply?Chains?of?Minerals?from?Conflict-Affected?and?High-Risk?Areas and the establishment Sunwoda fully communicates with suppliers and signs the Basic Cooperation Guidelines for Suppliers which
China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters' Chinese Due Diligence Guidelines for Mineral Supply Chain to incorporates the Company's responsible mineral procurement policy and requirements for suppliers including
formulate its Responsible Mineral Procurement Policy ?and?supporting?management?systems.?The?management?requirements?for?conflict?minerals? requiring suppliers to establish their mineral policies and conduct due diligence in the supply chain to ensure
are?integrated?into?the?entire?process?including?supplier?qualification?procurement?contracts?and?performance?evaluation.?Simultaneously?a?supply? the?use?of?qualified?smelters.chain data tracking mechanism has been established to trace the full lifecycle of key materials such as tantalum tin tungsten gold (3TG) cobalt
lithium nickel and natural graphite ensuring that the supply chain for raw materials complies with international standards.Sunwoda?requires?suppliers?to?develop?their?due?diligence?policies?and?management?systems?in?accordance?with?the?five-step?framework?from? Annual due Regular?due?diligence?is?conducted?on?suppliers?twice?a?year.?The?first?is?an?initial?annual?investigation?and?
the OECD?Due?Diligence?Guidance?for?Responsible?Supply?Chains?of?Minerals?from?Conflict-Affected?and?High-Risk?Areas . They must appoint senior diligence the?second?is?a?confirmation?one.?The?scope?of?the?investigation?covers?suppliers?of?metal?materials?metal-
management representatives for due diligence on the sources and supply chains of the aforementioned minerals identify assess and take containing components/modules metal mixtures (such as solder paste) and other materials.appropriate measures to mitigate risks. Suppliers are also required to publicly disclose their annual supply chain due diligence reports. Records
related?to?conflict?mineral?due?diligence?should?be?retained?for?at?least?ten?years.??
For?high-risk?minerals?such?as?3TGs?cobalt?and?mica?suppliers?are?mandated?to?purchase?products?from?smelters?certified?by?the?Responsible? Sunwoda has established an internal transparent and controllable supply chain system to identify the
Business?Alliance?(RBA)?and?audited?by?the?Responsible?Minerals?Initiative?(RMI).?For?uncertified?suppliers?Sunwoda?will?facilitate?their?participation? compliance?of?smelters/refineries.?The?Company?investigates?reasonable?origin?countries?and?consolidates?Data
in the RMI Responsible Minerals Assurance Process (RMAP) enhancing their compliance capabilities through technical guidance and resource all investigation data using optimal data analysis and processing methods to analyze the information and processing
integration. identify?qualified?smelters?smelters?under?audit?and?smelters?in?communication.?In?2024?the?Company?
continued optimizing data processing methods and promoted their use throughout the entire Group.Sunwoda?requires?the?supply?chain?to?encourage?non-compliant?and?non-audited?smelters/refineries?
Investigation
identified?by?the?RBA/RMI?to?actively?participate?in?audit?programs?to?achieve?compliance.?The?company?
result
2024 Investigation Results for Responsible Minerals leverages the collective power of RBA/RMI members to drive positive change and take action against suppliers processing
who?do?not?use?qualified?smelters.During the reporting period Sunwoda released the 2024 Investigation Report for Sunwoda Responsible
Minerals conducting due diligence on a total of 1117 suppliers involving 284 smelters using 3TGs cobalt
and?mica.?No?unqualified?smelters?were?found.?Among?these?278?smelters?(98%)?have?completed?the?audit? Publishing
process and 6 (2%) are currently undergoing audit. annual The?Quality?Center?compiles?Sunwoda's?annual?conflict?minerals?investigation?report?and?releases?it?on?the?
investigation official?website?after?approval.report
115 116Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Promoting Industry Development
Participation in the 19th China International SME Expo Case
Sunwoda actively participates in activities organized by industry associations such as standard policy formulation topic research forums As a designated "Industry Chain Anchor Enterprise" in the lithium battery industry chain of Guangdong Province Sunwoda was invited to
exhibitions and technical cooperation by leveraging its development advantages and experience. In recent years the Company has continuously participate in the 19th China International Small and Medium Enterprises Expo and the strategic cooperation signing ceremony between
enhanced its external communication. In 2024 Sunwoda received over 10 visits from domestic and international high-level leaders contributing leading industrial chain orchestrators and innovative specialized small and medium enterprises. Sunwoda continuously plays a crucial role
to?the?high-quality?development?of?the?industry.?Concurrently?the?Company?continued?to?expand?its?industry?influence?and?global?presence? in?technology?research?and?development?product?manufacturing?and?market?expansion?in?the?new?energy?field?promoting?the?coordinated?
participating in multiple major industry events during the reporting period. development of the industry chain through the integration of upstream and downstream resources.
2024 New Energy Storage Technology Development Forum Case
To promote the exchange of new energy storage technologies Sunwoda held the 2024 New Energy Storage Technology Development Forum
themed "Exploring New Quality Productive Forces and Creating New Development in Energy Storage." The event convened over 200 industry
and enterprise representatives to provide more driving forces for the development of the new energy storage industry and assist Shenzhen in
becoming a global digital energy pioneer city.Participation in the Forum on China-Africa Cooperation Summit Case
In September 2024 Sunwoda participated in the Summit and attended the closed-door meeting on energy themes at the China-Nigeria
Economic?and?Trade?Cooperation?and?Trade?Conference.?The?Company?introduced?energy?storage?solutions?to?the?Nigerian?government?officers?
and enterprises committed to promoting multi-party communication within the industry and providing clean solutions for industrial upgrading
SEVB Invited to Attend the 2024 Shenzhen Global Investment Promotion Conference Case and transformation in more regions.As a representative of global unicorn enterprises SEVB was invited to attend the "2024 Shenzhen Global Investment Promotion Conference
Unicorn Enterprise Cooperation Development Exchange Meeting" co-hosted by the Industry and Information Technology Bureau of Shenzhen
Municipality Service Bureau for Small and Medium-Sized Enterprises of Shenzhen Municipality Shenzhen Science and Technology Innovation
Bureau Nanshan Government and Longhua Government as well as participated in the themed roundtable forum on "How to Create an
Optimal Ecosystems for the Growth of Unicorn Enterprises".Additionally Sunwoda leveraged its technological expertise and industry experience to lead or contribute to multiple standards development
initiatives?in?2024.?These?efforts?encompassed?lithium?battery?green?supply?chain?frameworks?safety?technology?specifications?and?carbon?footprint?
quantification?methodologies.?Sunwoda's?active?participation?in?various?standard?formulations?helps?to?combine?technological?innovation?with?
standardization facilitating the green standardized and professional development of the industry and promoting innovation and progress.
117 118Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Formulation of the Battery Passport Industry Standard Policy Case
In?2024?Sunwoda?participated?in?the?drafting?and?revision?of?the?industry?standard?for?the?first?systematic?specification?of?battery?lifecycle?
traceability management data requirements (i.e. battery passport) in China. The Battery Passport Guidelines after a year-long development
technical?deliberations?and?professional?review?has?been?officially?published.?This?landmark?standard?will?enable?enterprises?to?respond?
more?effectively?to?the?battery?passport?requirements?of?the?EU?battery?regulations?achieve?low-carbon?management?of?new?energy?battery?
lifecycles so as to enhance the international competitiveness of the battery industry.Charitable Insitution Shenzhen Charitable Donation Index - Shenzhen Advanced Unit for
Corporate Philanthropy Leaderboard Voluntary Blood Donation
In?2012?Sunwoda?with?the?approval?of?the?Bureau?of?Civil?Affairs?of?Shenzhen?Municipality?established?the?Shenzhen?Sunwoda?Charity?Foundation?
(hereafter "Sunwoda Foundation") focusing on public welfare services in areas such as vulnerable population support educational advancement
healthcare assistance and disaster relief to support the development and progress of public welfare and charity.Philosophy and Purpose of Sunwoda Charity Foundation
By the end of 2024
the Sunwoda Foundation's
annual public welfare and Philosophy Gratitude Integration Charity Harmony
charity expenditure
1
SEVB led the formulation of the Industry Standard for Electric Vehicle Fast Charging Technology Case RMB 5.9208 million
?Total?beneficiaries? Through small acts of kindness to promote the spirit of charity
In April 2024 SEVB co-hosted the 2024 Electric Vehicle Fast Purpose enhance public awareness and create a harmonious society
Charging Technology Summit with EIDC and took the lead in 25 ten thousand
establishing the Electric Vehicle Fast Charging Alliance. At the
summit the drafting of the Industry Standard for Electric Vehicle
Fast Charging Technology ?was?officially?launched.?SEVB?will?work?
together with representatives from upstream and downstream Charitable Donations
of the new energy vehicle industry chain to participate in the
standard formulation and explore the innovative development of Educational Advancement Initiatives
electric vehicle supercharging technology. The Sunwoda Foundation prioritizes educational public welfare establishing the "Sunwoda Future Scholarship" program aimed at providing learning
support for rural primary and secondary school students and college students majoring in new energy to promote the steady advancement of
education and foster educational equity and progress. In 2024 the Sunwoda Foundation actively carried out various educational assistance activities
supporting education development through charitable canteens teaching excellence funds and school-enterprise cooperation.Constructing a Beautiful Home
Little Sunshine Caring Future Engineer
Sunwoda strategically integrates social resources focusing on key impact areas such as vulnerable population support educational advancement Program Training Program
medical assistance and disaster relief to drive social development. Sunwoda also places great importance on rural revitalization providing
comprehensive support for high-quality rural development through educational ecological cultural and healthcare interventions demonstrating its * Sunwoda funded the construction of charitable canteens and * The Company encourages students majoring in
commitment to social responsibility. other infrastructure for rural schools to improve the school new energy to explore innovation by setting up
Public Welfare Sunwoda?actively?fulfills?its?corporate?social?responsibility?working?hand?in?hand?with?employees? environment; scholarships and grants in universities sponsoring and partners to build a harmonious society. In 2024 Sunwoda together with its subsidiaries and * Teaching excellence funds are set up for rural teachers to promote college student entrepreneurship competitions and
departments promoted public welfare concepts and encouraged employees to engage in and and support the development of education. cultivating?talents?in?the?field.carry out public welfare activities contributing to the construction of a harmonious society.
1Data statistics include all donation amounts disbursed by Sunwoda through Sunwoda Charity Foundation in 2024.
119 120Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Overview of Sunwoda Future Scholarship Program Healthcare Assistance
* Sunwoda New Energy Technology Innovation Scholarship The Sunwoda Foundation has made healthcare assistance one of its core public welfare sectors.South China University By the end of 2024 The Company has created the "Sunwoda Hope Program" which includes the "Sunshine Guardian
of Technology * The 19th "Challenge Cup" Series Competition Support Program of South China
University of Technology - "Sunwoda" Cup Program" and the "Courage Support Program" caring for patients with major diseases through The total number of families family support and medical assistance. By building a comprehensive and multi-level support
helped by the Sunshine system Sunwoda Foundation brings warmth and hope to patients and families. The Sunwoda
* Sunwoda-Huanghai New Energy Technology Innovation Scholarship Guardian Program: 46 Foundation also supports children from disadvantaged families who need hematopoietic stem
cell transplants through the "Sunwoda Children's Transplant Assistance Program" providing
Dalian University of * Sunwoda-Huanghai Teaching Excellence Award Served hospitalized children and support for 7 children.Technology * "Sunwoda-Huanghai" Cup - iCAN Innovation and Entrepreneurship Competition their families1 5353
* Sunwoda-Huanghai Club Support Program
Jinling High School * Sunwoda Teaching Excellence Award
Lishui Campus
Sunshine Guardian Program Courage Support Program
Boluo Secondary * Sunwoda Virtue and Excellence Scholarship
School
* Sunwoda Diligence-Love-Wisdom-Courage Teaching * To provide temporary assistance to families and * To build children's care spaces mobile kitchens etc.Guantian School Excellence Award and Scholarship individuals?facing?significant?illnesses?and?accidents? to provide care and financial support for sick children
alleviating?their?financial?pressures safeguarding their healthy and happy growth
Shanhou Primary School * Sunwoda Teaching Excellence Award and Scholarship
Creating Pediatric Care Spaces in Hospitals Case
No. 1 Middle School of * Sunwoda Future One-on-One Assistance
Tongren Guizhou In 2024 Sunwoda continued to optimize and upgrade the Pediatric Care Space project at People's Hospital of Shiyan Bao'an District and the
Seventh?Affiliated?Hospital?Sun?Yat-sen?University?setting?an?example?for?children's?care?spaces?in?hospitals?through?ongoing?optimization?of?
space operation services. These two care spaces were open for a total of 563 days in 2024 hosting 66 child-centered activities including the
parent-child picture book reading activity themed "Be the Master of Your Emotions" on Reading Day and the DIY activity "Transforming Infusion
Sets into a Brave Fish" enriching the hospitalization experience for sick children. Among them the Pediatric Care Space project at People's
Hospital of Shiyan Bao'an District won the "Outstanding Project" award at the 5th Volunteer Service Project Competition in Bao'an District in
By the end of 2024 2024.the "Sunwoda Future Scholarship" program
Total donated: Teachers and students covered:
RMB 2.56 million 2.1 ten thousand
Parent-child painting activity at People's Hospital of Shiyan Pediatric Care Space at People's Hospital of Shiyan
1
Awarding Institution: Sun Yat-sen In 2024 the Company served hospitalized children and their families covering 5353 visits. Of these 1320 were activity services and 4033 were daily support services.University
Award Name: Yat-sen Education
Contribution Award
121 122Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Sanitation Worker Heat Relief Program Case
Sunwoda Voice Program - Narrative Medicine Capability Enhancement Program Case In August 2024 the Sunwoda Foundation in collaboration with corporate culture department launched the "Charity Night Market - Sunwoda
Spring Rain Action" event raising funds through charity sales and matching donations from foundation members totaling a donation of RMB
The Sunwoda Foundation actively carries out medical training 34382. Together with the Spring Rain Action the Sunwoda Foundation also initiated the "Sunwoda Care Action: 2024 Sanitation Worker Heat
to comprehensively enhance the diagnostic and treatment Relief Program".capabilities?of?pediatric?medical?staff.?In?November?2024?
the Sunwoda Foundation in collaboration with the People's Foundation?staff?visited?various?locations?including?Shilong?Town?and?Yuanzhou?Town?in?Guangdong?the?Development?Zone?in?Lanxi?City?
Hospital of Shiyan launched the "Sunwoda Voice Program Zhejiang and the Development Zone in Lishui District Nanjing and delivered carefully prepared care packages to a total of 500 sanitation
- Narrative Medicine Capability Enhancement" program. workers in the form of "a cooling gift package + a tribute letter = comprehensive care". Through this practical action sincere respect and
This project aims to cultivate empathy and communication gratitude are expressed to the sanitation workers.skills?among?medical?staff?improve?the?quality?of?medical?
services enhance doctor-patient relationships and promote
the development of medical humanities. As of the end of the
reporting period the project has trained and empowered 357
healthcare professional.Delivering Goodness
The Sunwoda Foundation has established the "Sunwoda Love Journey Program." This program is dedicated to supporting rural development through Sanitation Worker Heat Relief Program (Boluo Station)
educational ecological cultural and healthcare revitalization. Additionally it actively develops the "Community Connection Program" that focuses on
sanitation?workers?and?medical?staff?contributing?to?the?construction?of?harmonious?and?inclusive?communities.Conducts Tribute to Healthcare Professionals Case
Sanitation Worker Heat Relief Program (Lanxi Station) Sanitation Worker Heat Relief Program (Shenzhen Station)
In 2024 the Sunwoda Foundation in collaboration with Sunwoda's industrial parks in Boluo Nanjing Lanxi and Nanchang delivered care
packages holiday greetings and blessings to healthcare workers at hospitals surrounding the Sunwoda parks on "National Doctors' Day"
and?"International?Nurses?Day"?to?express?gratitude?for?their?hard?work?and?selfless?dedication.?During?the?event?the?Sunwoda?Foundation? Conducts Heartwarming Spring Festival Visit Activity Case
extended greetings and best wishes to a total of 3109 nursing professionals and over 953 medical practitioners.In 2024 the Sunwoda Foundation carried out its fourth Spring Festival heartwarming visit activity. In Heshan Village Shenli Village and Tuguaxu
Village in Yuanzhou Town of Huizhou City Guangdong Province Sunwoda delivered care packages supplies and New Year blessings to 56
elderly individuals and families in need fostering social inclusion and community support.Sunwoda Caring Action for Healthcare
Professionals in 2024 Nurses Day Sunwoda Caring Action for 2024 National Doctors' Day
123 124Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Disaster Relief 2024 Youth Charity Action - Sunwoda Voluntary Blood Donation Day Case
Sunwoda is committed to advancing to the front lines of disaster response actively participating in disaster relief disaster rescue assistance and
post-disaster?reconstruction?thereby?fulfilling?its?corporate?social?responsibility.?The?Sunwoda?Foundation?has?established?the?"Sunwoda?Ark?Support"? In July 2024 the Sunwoda Foundation launched the "Love Continues Life
public?welfare?project?to?provide?timely?materials?and?funds?to?affected?communities?helping?disaster-stricken?areas?restore?production?and?life?and? - Sunwoda 2024 Youth Charity Action" calling on employees from various
build a more resilient disaster response system. Sunwoda industrial parks to actively respond to the voluntary blood donation
appeals from blood centers and blood stations in various cities contributing
to the voluntary blood donation in China. This event attracted a total of 681
Post-Disaster Reconstruction in Jishishan County: participants among which 222 people participated in blood donation and
Climate Change Response - Community Livelihood Improvement Project Case 176?people?finished?donation?with?a?total?blood?donation?volume?of?59650?
milliliters.After the earthquake in Jishishan County in Linxia Prefecture Gansu Province the Sunwoda Foundation provided immediate assistance and
donated funds for post-disaster reconstruction. In 2024 the Foundation in collaboration with the Gansu Yishan Yishui Center for Environmental
and Social Development promoted the Climate Change Response - Community Livelihood Improvement Project. Through a "Foundation
funding?+?community?contribution"?cooperation?model?200?affected?households?in?Ganhetan?Village?and?Meipo?Village?of?Dahejia?Town?
Jishishan County received solar water heaters helping villagers reduce energy costs and improve their quality of life. "Walking for Love - Sunny Doll Charity Hiking Event" Case
In October 2024 the Sunwoda Foundation led 25 employees to
participate in the "Walking for Love - Sunny Doll Charity Hiking"
event focusing on caring for children with blood tumors and joined
Tencent's Step Donation Campaign. Sunwoda employees actively
supported the cause with their actions raising awareness of blood
tumors and bringing happiness to these children. After the hiking
event the Sunwoda team walked a total of 377145 steps donating a
total of RMB 4868.52 for charity.Rural Revitalization Sunwoda closely follows the national rural revitalization strategy. By continuously making efforts?in?key?areas?such?as?educational?cultural?and?ecological?the?Company?empowers?rural?
development?in?all?aspects.?In?2024?Sunwoda?carried?out?diversified?rural?revitalization?activities?
in places such as Zhangxi She Ethnic Township in Dongyuan County of Heyuan City Yong'an Town
Employee Volunteers in Du'an County of Guangxi and Lingyun County in Baise City of Guangxi to assist in the goal of
Sunwoda strives to cultivate a culture of social engagement by organizing diverse public welfare activities and encouraging employees to actively common prosperity.participate in public service and contribute to society thereby promoting the construction of a harmonious society.Rural Revitalization Honorary Awards for the Sunwoda Foundation
Bronze Award for Red Cotton Cup in 2023
Guangdong Poverty Alleviation and Assistance
2024 Rural Work Leading Group of
Through the Sunwoda the Guangdong Provincial CPC
Sunwoda Volunteer Service Team Sunwoda Volunteer Service Team Foundation Committee
Investment in rural revitalization:
RMB 2.419 million "Charitable Enterprises (Organizations)"
in Maoming City's 2023 "6·30" Rural
Total?beneficiaries:?over? Revitalization Campaign
210000 people Rural Work Leading Group of the Maoming Municipal CPC Committee
Respect for the elderly at the Double Ninth Festival Gained social recognition
125 126Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Educational Revitalization Cultural Revitalization
Sunwoda is committed to empowering rural revitalization through education. The Company has carried out multiple projects for teaching Sunwoda continuously participates in cultural revitalization and promotes the construction of a culturally strong nation. On one hand the Company
infrastructure construction and educational public welfare continuously improving the infrastructure and teaching environment of rural schools and actively advances the construction of cultural infrastructure solidifying the hardware foundation for cultural development. On the other hand
helping students grow up healthily. Sunwoda collaborates with various social entities to actively support and organize diverse cultural activities enhancing cultural soft power and
promoting cultural excellence which is done through a "combination of soft and hard power" approach providing comprehensive support for
cultural revitalization.Charitable Canteen Project Case
Construction Support Project for Maoming Jinzhang Chen Art Museum Case
To?effectively?improve?the?quality?of?life?for?teachers?and?students?and?to?comprehensively?optimize?the?campus?learning?and?living?
environment the Sunwoda Foundation donated a charitable canteen with a total area of 513 square meters to Shantou Primary School in To further enrich the cultural life of the people the Sunwoda Foundation supports the construction of the Maoming Jinzhang Chen Art Museum
Lingmen?Town?effectively?improving?the?dining?conditions?for?766?teachers?and?students. aiming to preserve Lingnan calligraphy and painting art promote the prosperity and development of Chinese painting and carry forward the
excellent traditional Chinese culture.Sunwoda Charitable Canteen Donation Ceremony for Sunwoda Charitable Canteen Project
Rural Campus Football Revitalization Program Case
To further enhance the football skills of rural youth the Sunwoda Foundation fully supports the implementation of the "Sunwoda Rural Campus
Football Revitalization Program" at Lingyun Experimental Primary School in Lingyun County of Baise Guangxi. This Program aims to assist rural
students in participating in the children's football training camp and study tour activities jointly organized by SEVB and VfL Wolfsburg Football
Club donating a batch of football training equipment to the school to inspire children's love for football and support the development of youth
football education in rural areas.Healthcare Revitalization
Sunwoda extends its commitment to healthcare accessibility by bringing medical assistance programs to rural communities providing higher-quality
basic?healthcare?services?and?efficiently?promoting?sustainable?development?of?rural?healthcare?systems.Building Rural Medical Infrastructure Case
To better meet the medical needs of rural residents and address
the shortcomings of medical hardware facilities at the Zhangxi
She Ethnic Township Health Center in Dongyuan County of
Ecological Revitalization Heyuan City the Sunwoda Foundation along with other social
forces donated funds to purchase ambulances and other medical
Ecological revitalization is an important component of rural revitalization. Sunwoda through community ecological garden renovation sewage equipment for the Center. Additionally to promote the well-being
treatment and other public welfare projects meticulously manages the community environment at the rural-urban boundary creating a warm home and happiness of the elderly the Sunwoda Foundation also
for residents and contributing to the sustainable development of rural areas. established a senior service station in Tuguaxu Village to create a
better living environment for rural seniors.Ecological Revitalization in Lingmen Town · Sewage Treatment Project in Shanhou Village Case
To improve the living environment of Shanhou Village the Sunwoda Foundation strongly supported the sewage treatment project in Shanhou
Village Lingmen Town Dianbai District. Through the construction of sewage treatment facilities and laying sewage collection pipelines along
with ecological restoration and environmental protection education this project comprehensively improved the living environment for villagers
and revitalized the ecological vitality of Shanhou Village.
127 128Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Key Performance Table Indirect energy consumption tce - - 198162.46
Combined energy consumption intensity tce/million dollars of revenue - - 4.30Economy
Clean energy use tce - - 94982.53
Indicator Unit 2022 2023 2024 Proportion of clean energy use to total energy % - - 39.47
RMB ten consumption
Revenues 5216226.93 4786222.70 5602063.41
thousand Petroleum tce - - 42174.68
RMB ten
Net?profit?attributable?to?shareholders?of?the?Company 106801.44 107619.83 146824.06 Percentage of natural
thousand gas use % - - 44.40
Earnings per share RMB/share 0.62 0.58 0.79 Clean energy use by Solar energy
4 tce - - 11659.26
energy type
Gearing % 64.68 59.07 63.44 Share of solar energy use % - - 12.28
RMB ten 5
Total tax payments 90600 112300 128488 Others tce - - 41148.59
thousand
Percentage of other uses % - - 43.32
Greenhouse gas Scope I tCO2e 34948.81 102959.97 110217.78
emissions6
Environment Scope II tCO2e 603471.48 880010.62 872270.66
Total GHG emissions (Scope I + Scope II) tCO2e 638420.29 982970.59 982488.44
Indicator Unit 2022 2023 2024 Total water withdrawal 7 Cubic meter 3319597.00 3697300.00 6513024.00
Number of incidents in which penalties were Total displacement Cubic meter 5128696.22
imposed for violating environmental protection Item - - 0
laws and regulations Industrial wastewater discharge 8 Cubic meter 974815.00 362306.00 52472.50
Amount of penalties for major administrative Biochemical Oxygen
penalties imposed by ecological and Demand (BOD) discharge Ton 37.99 14.17 3.29
environmental and other relevant authorities for RMB ten thousand - - 0 in wastewater
environmental incidents during the reporting Chemical Oxygen
period Demand (COD) discharge Ton 123.69 53.07 5.69
Stationary source diesel fuel usage Ton - - 1.01 from wastewater
Ammonia and nitrogen
Gasoline?usage?for?official?vehicles? Liter 192033.15 191512.76 294028.53 (NH3-N) emissions from Ton 3.27 4.89 4.01
Wastewater pollutant wastewater
Diesel?usage?for?official?vehicles1 Liter 7735.97 3773.00 27632.34 discharges9 Discharge of suspended
solids (SS) from Ton 29.39 7.31 5.79
Natural gas usage2 Cubic meter 15679081.00 14178905.76 31710282.33 wastewater
Total phosphorus
Total purchased electricity usage3 MWh 918076.83 929540.59 1355444.37 (TP) discharge from Ton 0.36 0.76 1.36
wastewater
Market-based purchase of green power MWh - - 1520 Total Nitrogen (TN)
Emissions from Ton 3.41 3.22 3.9
Green?power?certificate?procurement?volume MWh - - 334.574 Wastewater
10
Purchased steam usage GJ - - 579568.70 Total emissions Cubic meter - - 4934989756.00
Combined energy consumption tce - - 240658.80
Direct energy consumption tce - - 42496.34 4The statistics on solar clean energy consumption cover both the company's centralized and distributed photovoltaic (PV) self-consumption.
5The?statistics?on?other?clean?energy?consumption?include?the?company's?purchased?green?electricity?certificates.
6Total greenhouse gas emissions include scope 1 and scope 2 greenhouse gas emissions. The calculation of Sunwoda's greenhouse gas emissions refers to the Greenhouse Gas Protocol (GHG Protocol)
and?ISO?14064-1:?2018?related?requirements.?The?2023?data?in?this?report?has?been?adjusted?after?verification?and?the?disclosed?data?is?subject?to?this?updated?version.?The?2022?data?will?not?be?restated.
1During?the?reporting?period?the?Company?remained?committed?to?its?environmentally?sustainable?principles?consistently?implementing?energy?efficiency?initiatives.?The?expanded?scope?of?statistical 7
??coverage?coupled?with?production?capacity?expansion?resulted?in?increased?gasoline?and?diesel?consumption?by?official?vehicles. During the reporting period the company consistently upheld its environmentally sustainable principles and advanced water resource management with water conservation measures. All water intake ?was?sourced?from?municipal?water?supplies.?The?metric?previously?termed?"Water?Usage"?for?2022?and?2023?has?been?rectified?to?"Total?Water?Intake."?Sunwoda's?total?water?intake?increased?due?to?
2During?the?reporting?period?the?company?remained?steadfast?in?its?commitment?to?environmentally?sustainable?principles?continuously?advancing?energy?efficiency?initiatives.?However?Sunwoda? expanded statistical coverage and production capacity growth.
experienced increased natural gas consumption due to adjustments in statistical reporting methodology and the commissioning of new production facilities and equipment under capacity expansion. 8During?the?reporting?period?the?company?continued?to?optimize?industrial?wastewater?discharge?reduction?measures?resulting?in?a?significant?decrease?in?industrial?wastewater?discharge?volume.
3During the reporting period the company maintained its adherence to environmentally sustainable development principles and persistently implemented energy conservation measures. Sunwoda's 9
total purchased electricity consumption rose owing to revised statistical reporting parameters and the operational commencement of new manufacturing complexes and equipment following During?the?reporting?period?the?company?persistently?implemented?clean?production?practices?and?effective?wastewater?treatment?measures?achieving?substantial?reductions?in?BOD?and?COD?emissions.production capacity expansion. The disclosure metric has been updated from "Electricity" to "Total Purchased Electricity Consumption" with historical data remaining unrevised. 10During the reporting period the unit of measurement for historical metrics was adjusted from "ton" to "cubic meter."
129 130Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Society
Emissions of sulfur oxides Indicator Unit
(SOx) from exhaust gases Ton < LOD 0.11 2.75
202220232024
Total number of employees People 44842 47448 54292
Emissions of nitrogen
oxides (NOx) from Ton 7.32 5.59 22.53
exhaust gases Number of employees
Male People 30833 32519 37645
by gender
Emissions of particulate Female People 14009 14929 16647
matter (PM) from exhaust Ton 1.33 6.83 7.34
gases Over 50 years old People 163 695 862
Emissions of volatile Number of employees Exhaust air pollutant 30 to 50 years People 21590 22572 25976
emissions organic compounds
by age
(VOCs) from exhaust Ton 0.78 5.64 18.18 Under 30 People 23089 24181 27454
gases
Non-methane Full-time labor contract People 44641 46531 50287
hydrocarbon (NMHC)
emissions from exhaust Ton 8.38 18.20 16.92 Number of Full-time labor dispatch system People 22 6 55
gases employees by type of
employment Concurrent job People - - 0
Ozone-depleting Kilograms of
substance (ODS) trichloroflu- - - 1.50 Others15 People 179 911 3950 emissions from exhaust oromethane
gases equivalent Production personnel People 28656 31396 36856
Total hazardous waste 11 Ton 1231.86 1619.72 2622.33 Technical personnel People 8364 8442 8389
Incineration with energy
recovery Ton - - 1720.34
Number of employees
by type of function Sales personnel People 498 628 755
Volume of hazardous Incineration without Ton - - 281.51 Financial personne People 270 327 331 waste by disposal energy recovery
method Administrative personnel People- - 41.73 7054 6655 7961 Landfill Ton
12 PhD degree People - - 578.75 107 133 147 Others Ton
Master's degree People
Total non-hazardous waste 13 Ton 2868.61 4482.57 45810.81 1360 2002 2308
Number of employees
Incineration with energy Bachelor's degree People 7467 8338 9550
recovery Ton - - 4013.15
by education level
Junior college degree People 7319 7503 9974
Incineration without Ton
Volume of non- energy recovery - - 10872.95 Below junior college degree People 28589 29472 32313
hazardous waste by
disposal method Landfill Ton - - 1459.95 Mainland China Jobs People 44799 47399 53948
Recycling/reuse Ton 2669.32 3586.06 22242.59 Number of employees
by region16 Hong KongMacao Taiwan People 11 16 26
Others Ton - - 7222.17 Overseas Work People 32 33 318
Total use of packaging materials for
manufactured goods14 Item - - 97150695 Number of minority employees People 10826 5275 5841
11During the reporting period the company consistently adhered to environmentally sustainable principles and advanced waste management and reduction initiatives. The expansion of statistical 15 The geographic breakdown of employee headcount is calculated based on employees' primary work locations.
coverage scope and increased production capacity resulted in a rise in Sunwoda's total hazardous waste volume.
12During the reporting period the company continued to promote comprehensive utilization of hazardous waste progressively increasing recycling volumes. Other disposal methods for hazardous waste 16 During the reporting period changes in statistical methodology resulted in a reduction of senior management headcount. Historical data will not be restated.
??now?incorporate?integrated?recycling?quantities.?Data?shows?significant?variations?compared?to?2023?due?to?methodological?adjustments.
13During the reporting period the company persistently enhanced comprehensive utilization of non-hazardous waste steadily augmenting recycling volumes. Expanded statistical coverage and Senior?management?is?defined?as?personnel?at?General?Manager?level?and?above.
production capacity expansion contributed to an increase in Sunwoda's total non-hazardous waste volume.
14Packaging material statistics encompass 48 types of consumables including PE bags ABS reels EVA boxes adhesive tapes wooden boards and wooden crates.
131 132Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Number of employees with disabilities People - - 56 Number of product recalls for quality reasons Item - 0 0
Number of employees at management level17 People - - 76 Amount involved in major liability accidents damages related to safety and quality of products and services that RMB ten thousand - - 0
Number of employees Male People 4609 4468 52
occurred during the reporting period
at management level Number of data security incidents Item - 0 0
by gender Female People 1079 1142 24
Amount involved in data security incidents RMB ten - - 0
Percentage of female employees at management level % 23.41 20.36 31.58 thousand
Average Employee Satisfaction/Employee Engagement Number of customer privacy breaches Item - - 0
Score Point - - 4.25
Employee Satisfaction Survey Coverage18 % - - 92.07 Amount involved in customer privacy breaches
RMB ten
thousand - - 0
Percentage of employees covered by OHSMS % - - 100 Total number of suppliers 21 Supplier 5218 4020 4309
Percentage of employees % - - 98 Number of suppliers by Mainland China Supplier 4740 3512 3970 covered
Occupational health region
Number of persons trained People - - 408217 Hong Kong Macau Taiwan and safety training measure word and Overseas Supplier 478 508 339
Total duration of training Hour - - 865011 Number of key vendors Supplier - - 2486
Physical examination rate for occupational diseases of
front-line employees % - - 100 Number of non-key suppliers Supplier - - 1823
Number?of?employees?suffering?from?occupational?
diseases People - - 0
Total number of vendors that have signed the vendor
code of conduct Supplier - - 3266
Number of major security incidents Item - - 0 Number of vendor trainings substandard - - 113
Number of employees who died as a result of work-
related injuries People - - 0 Total number of new vendors Supplier - - 977
Employee Workers' Compensation Insurance Coverage % - - 100 Number?of?suppliers?certified?to?the?environmental?
management system Supplier - - 1973
Amount invested in employee workers' compensation RMB ten Number?of?suppliers?with?certified?occupational?health? Supplier - - 1333
insurance thousand - - 133.89 and safety management systems
Number?of?suppliers?with?certified?quality?management?
Workplace safety liability insurance coverage % - - 100 systems
Supplier - - 2411
Amount of rural revitalization inputs RMB ten
RMB ten thousand
- - 241.90
Employee safety liability insurance input amount19 thousand - - 192.09
Number of people reached by rural revitalization People - - 215912
Total hours of training received by employees Hour 26757 290233 224117
Amount spent on public charity RMB ten thousand 686.90 1453.30 592.08
Length of time Male Hour - - 110498.75
employees receive Number of employee volunteering trips People - - 3178
training by gender Female Hour - - 113618.25
Number of hours of volunteer activities Hour 1980 870 1507
Number?of?R&D?staff People 8364 8442 8389
RMB 100 21Amount of R&D investment ?Supplier-related?data?reflects?quantities?as?of?the?reporting?period?end.million 27.42 27.11 33.30
Amount of R&D investment as a percentage of main
business revenue % 5.26 5.66 5.94 Governance
Customer Satisfaction % - - 92.89
Product testing pass rate20 % - - 99.29 Indicator Unit 2022 2023 2024
Number of incidents of litigation or major administrative penalties resulting from
17 During the reporting period changes in statistical methodology resulted in a reduction of senior management headcount. Historical data will not be restated. the company's unfair competition behavior during the reporting period Item - 0 0
Senior?management?is?defined?as?personnel?at?General?Manager?level?and?above.Amount involved in litigation or major administrative penalties due to unfair RMB ten
18 The employee satisfaction survey excludes 3C Lithium Wei and Huizhou New Energy business units. competition by the company during the reporting period thousand - 0 0
19 The work safety liability insurance for 2024 was procured in November 2024 with policy period covering November 2024 to November 2025. The company
annually purchases work safety liability insurance for employees. Internal Disciplinary Measures for Employee Misconduct and Fraud people - - 25
20 Product inspection pass rate is calculated based on post-production quality checks.
133 134Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Report Index
GRI Index GRI standard Disclosures Location
2-23 Embedding policy commitments Sustainability Management Structure
GRI standard Disclosures Location
2-24 Processes to remediate negative impacts Safeguarding Product Quality and Safety
GRI 2: General disclosures 2021
Communication with Stakeholders Ensuring
2-1 Organizational details About?this?Report?Company?Profile 2-25 Mechanisms for seeking advice and raising concerns Stable Operations Cultivating a Vibrant Workplace
2-2 Entities included in the organization's sustainability reporting About?this?Report?Company?Profile 2-26 Compliance with laws and regulations Conserving Biodiversity Ensuring Stable Operations Cultivating a Vibrant Workplace
2-3 Reporting period frequency and contact point About this Report 2-27 Membership associations Addressing Climate Change
2-4 Restatements of information Not involved 2-28 Approach to stakeholder engagement Communication with Stakeholders Investor Relations Management
2-5 External assurance Independent?Verification?Report 2-29 Collective bargaining agreements Integrity and Business Ethics Employees Rights and Interests Protection
2-6 Activities value chain and other business relationships Company?Profile GRI 3: Material Topics 2021
2-7 Employees Cultivating a Vibrant Workplace 3-1 Process to determine material topics Double Materiality Assessment
2-8 Workers who are not employees Employees Rights and Interests Protection 3-2 List of material topics Double Materiality Assessment
2-9 Governance structure and composition Sustainability Management Structure Governance Corporate Governance 3-3 Management of material topics Double Materiality Assessment
2-10 Nomination and selection of the highest governance body Corporate Governance GRI 201: Economic Performance 2016
2-11 Chair of the highest governance body Corporate Governance 201-1 Direct economic value generated and distributed Company?Profile?Key?Performance?Table
2-12 Role of the highest governance body in overseeing thef impacts Corporate Governance 201-2 Financial implications and other risks and opportunities due toclimate change Addressing Climate Change
2-13 Delegation of responsibility for managing impacts Sustainability Management Structure Governance 201-3 Defined?benefit?plan?obligations?and?other?retirement?plans Employees Rights and Interests Protection
2-14 Role of the highest governance body in sustainability reporting Sustainability Management Structure GRI 203: Indirect Economic Impacts
2-15 Conflicts?of?interest Ensuring Stable Operations Company?Profile?Early?Stage:?Green?Design?
Communication with Stakeholders Ensuring 203-1 Infrastructure investments and services supported and Technology Building an Integrity 2-16 Communication of critical concerns Stable Operations Enterprise Constructing a Beautiful Home
2-17 Communication of critical concerns Sustainable Development Strategy Ensuring 203-2 Significant?indirect?economic?impacts Pioneer R&D InnovationStable Operations
2-18 Evaluation of the performance of the highest governance body Sustainability Management Structure GRI 205: Anti-corruption 2016Ensuring Stable Operations
2-19 Remuneration policies Employees Rights and Interests Protection 205-1 Operations assessed for risks related to corruption Integrity and Business Ethics
2-20 Process to determine remuneration Cultivating a Vibrant Workplace 205-2 Communication and training about anti-corruption policies andprocedures Integrity and Business Ethics
2-21 Statement on sustainable development strategy Sustainable Development Strategy 205-3 Confirmed?incidents?of?corruption?and?actions?taken Integrity and Business Ethics
About this Report Sunwoda’s Sustainable GRI 206: Anti-competitive Behavior 2016
2-22 Policy commitments Development Strategy Addressing Climate Change Establishing Responsible Supply
Chain 206-1 Legal actions for anti-competitive behavior anti-trust and monopoly practices Integrity and Business Ethics
135 136Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
GRI standard Disclosures Location GRI standard Disclosures Location
GRI 301: Materials 2016 GRI 306: Waste 2020
301-1 Materials used by weight or volume Key Performance Table 306-1 Waste?generation?and?significant?waste-related?impacts Pollutant and Waste Management
End-of-Life Stage:Green
301-2 Recycled input materials used 306-2 Management?of?significant?waste-related?impacts Pollutant and Waste Management
PackagingLogisticsand Recycling
End-of-Life Stage:Green
301-3 Reclaimed products and their packaging materials 306-3 Waste generated Pollutant and Waste Management
PackagingLogisticsand Recycling
GRI 302: Energy 2016 306-4 Waste diverted from disposal Pollutant and Waste Management
302-1 306-5 Waste directed to disposal Pollutant and Waste ManagementEnergy consumption within the organization Key Performance Table
302-2 Energy consumption outside of the organization Key Performance Table GRI 308: Supplier Environmental Assessment 2016
302-3 308-1 New suppliers that were screened using environmental criteria Supply Chain ResilienceEnergy intensity Key Performance Table
302-4 308-2 Negative environmental impacts in the supply chain and actions taken Supplier ManagementReduction of energy consumption Energy Management
Full Lifecycle Green Solutions Addressing GRI 401: Employment 2016
302-5 Reductions in energy requirements of products and services
Climate Change
401-1 New employee hires and employee turnover Key Performance Table
GRI 303: Water and Effluents 2018
Benefits?provided?to?full-time?employees?that?are?not?provided?totemporary?or?
401-2 Employees Rights and Interests Protection
303-1 Interactions with water as a shared resource Water Resource Management part-time employees
GRI 403：Occupational Health and Safety 2018
303-2 Management of water discharge-related impacts Pollutant and Waste Management
403-1 Occupational health and safety management system Occupational Health and Safety
303-3 Water withdrawal Key Performance Table
403-2 Hazard?identification?risk?assessment?and?incident?investigation Occupational Health and Safety
303-4 Water discharge Key Performance Table
403-3 Occupational health services Occupational Health and Safety
303-5 Water consumption Key Performance Table
Worker participation consultation and communication onoccupational health
403-4 Occupational Health and Safety
GRI 304: Biodiversity 2016 and safety
304-2 403-5 Worker training on occupational health and safety Occupational Health and SafetySignificant?impacts?of?activities?products?and?services?onbiodiversity Conserving Biodiversity
GRI 305: Emissions 2016 403-6 Promotion of worker health Occupational Health and Safety
Prevention and mitigation of occupational health and safetyimpacts directly
Addressing Climate Change Key
305-1 403-7 Occupational Health and SafetyDirect (Scope 1) GHG emissions linked by business relationships
Performance Table
Addressing Climate Change Key 403-8 Workers covered by an occupational health and safetymanagement system Occupational Health and Safety
305-2 Energy indirect (Scope 2) GHG emissions
Performance Table
Addressing Climate Change Key 403-9 Work-related injuries Occupational Health and Safety
305-3 Other indirect (Scope 3) GHG emissions
Performance Table
403-10 Work-related ill health Occupational Health and Safety
Addressing Climate Change Key
305-4 GHG emissions intensity
Performance Table GRI 404: Training and Education 2016
Addressing Climate Change Key
305-5 Reduction of GHG emissions
Performance Table 404-1 Average hours of training per year per employee Key Performance Table
Addressing Climate Change Key
305-6 Emissions of ozone-depleting substances (ODS)
Performance Table 404-2 Programs for upgrading employee skills and transition assistanceprograms Staff?Training?and?Development
Addressing Climate Change Key
305-7 Nitrogen?oxides?(NOx)?sulfur?oxides?(SOx)?and?other?significantair?emissions Percentage of employees receiving regular performance andcareer development
Performance Table 404-3 Staff?Training?and?Developmentreviews
137 138Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Index of Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange-
-Sustainability Report (For Trial Implementation)
GRI standard Disclosures Location
Chapter Guidelines Corresponding Chapter
GRI 405: Diversity and Equal Opportunity 2016
Chapter I General Provisions Articles 1 - 10 About This Report
405-1 Diversity of governance bodies and employees Employees Rights and Interests Protection
Sustainability Management Sustainability
Employees Rights and Interests Protection Chapter II Disclosure of Sustainability Framework Articles 11 - 19
405-2 Ratio of basic salary and remuneration of women to men Impact Dual Materiality Analysis
Key Performance Table
Section 1 Addressing Addressing climate
GRI 406: Non-discrimination (2016) Articles 20 - 28 Addressing Climate ChangeClimate Change change
406-1 Incidents of discrimination and corrective actions taken Employees Rights and Interests Protection Pollutant Emissions Article 30 Pollutant and Waste Management
GRI 407: Freedom of Association and Collective Bargaining 2016 Waste Disposal Article 31 Pollutant and Waste Management
Section 2 Pollution
Operations and suppliers in which the right to freedom of association Employees Rights and Interests Protection
07-1 Prevention and Ecosystem and
and collective bargaining may be at risk Supplier Management Chapter III Ecosystem Protection Biodiversity Article 32 Conserving Biodiversity
Disclosure of Conservation
GRI 408: Child Labor (2016) Environmental Environmental
Information compliance Article 33 Environmental Management System
Operations?and?suppliers?at?significant?risk?for?incidents?of? Employees Rights and Interests Protection
408-1 management
child labor Supplier Management
Energy Utilization Articles 34 - 35 Energy Management
GRI 409: Forced or Compulsory Labor (2016) Section 3 Resource
Water Resource
Utilization and Circular Article 36 Water Resource Management
Operations?and?suppliers?at?significant?risk?for?incidents? Employees Rights and Interests Protection Utilization
409-1 Economy
of forced or compulsory labor Supplier Management End-of-Life Stage: Green Packaging
Circular Economy Article 37
Logistics and Recycling
GRI 413: Local Communities 2016
Operations with local community engagement impact assessments and Section 1 Rural
Rural Revitalization Articles 38-39 Rural Revitalization
413-1 Environmental Management System
development programs Revitalization and
Social Contribution Social Contribution Article 40 Social Welfare
GRI 414: Supplier Social Assessment 2016
414-1 New suppliers that were screened using social criteria Supply Chain Resilience Innovation-Driven Article 42 Pioneer R&D Innovation
414-2 Negative social impacts in the supply chain and actions taken Supplier Management Not applicable (The entity has not engaged Section 2 Innovation- in?scientific?research?in?technology?ethics-
Driven and
GRI 416: Customer Health and Safety 2016 sensitive?fields?such?as?life?sciences?and?Technological Ethics Technology Ethics Article 43 artificial?intelligence?but?has?optimized?
management in terms of data security.
416-1 Assessment of the health and safety impacts of product and service categories Safeguarding Product Quality and Safety Please refer to 3.2.2. Information Security
Incidents of non-compliance concerning the health and safety impacts of Chapter IV and Privacy Protection for more details.)
416-2 Safeguarding Product Quality and Safety
products and services Disclosure of Social Supply Chain Risk
Information Articles 44 - 45 Establishing Responsible Supply Chain
GRI 417: Marketing and Labeling 2016 Management
Equal Treatment of Not applicable (The balance of accounts Safeguarding Product Quality and Safety payable at the end of the reporting period
417-1 Requirements for product and service information and labeling Creating Customer Value Key Performance Small and Medium- Article 46 less than 50% of total assets. Please refer to
Table Sized EnterprisesSection 3 Suppliers the annual report for more details.)
Incidents of non-compliance concerning product and service information and Safeguarding Product Quality and Safety
417-2 and Customers Full Lifecycle Green Solutions Safeguarding
labeling Creating Customer Value Product and Service Article 47 Product Quality and Safety Creating
Safeguarding?Product?Quality?and?Safety，? Safety and Quality
417-3 Incidents of non-compliance concerning marketing communications Customer Value
Creating Customer Value
Data Security and
GRI 418: Customer Privacy 2016 Customer Privacy Article 48 Information Security and Privacy Protection
Protection
Substantiated complaints concerning breaches of customer privacy and losses Creating Customer Value Key Performance
of customer data Table Section 4 Employees Employees Articles 49 - 50 Cultivating a Vibrant Workplace
139 140Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Sustainability Issues
Chapter Guidelines Corresponding Chapter Material Issues Issue Explanation A-share Guidelines Corresponding Chapter
Governance (G)
Corporate Sustainability Management Ensuring
Article 51
Governance Stable Operation Enhance corporate governance structure (including but
not limited to increasing the number of independent
directors and Supervisory Committee members) and
Section 1 improve the diversity of the Board of Directors to reduce Communication with
Sustainability Integrity and Business Ethics Responsible potential governance risks.Due Diligence Article 52 Stakeholders
Governance Procurement Dual Materiality Assessment 1 Robust governance Improve corporate sustainability/ESG governance Accountability
Mechanism structure and standardize the management processes Articles 52 53 55 and 56 of
for sustainable development and ESG-related matters. the Guidelines
Chapter V
Operate legally and compliantly actively monitor
Disclosure of
Communication with evaluate?and?address?potential?risks?such?as?financial?
Sustainability Article 53 Communication with Stakeholders
Stakeholders and?legal?risks?to?an?effective?internal?control.Governance
Information Uphold the correct values and principles and adhere
to standards and norms to prevent corruption risks; Anti-Commercial Bribery and
Anti-Commercial formulate anti-corruption policies and take action Anti-Corruption
Bribery and Anti- Article 54 Integrity and Business Ethics Anti-corruption and against corruption incidents reporting unethical Anti-unfair competition2
Corruption business ethics illegal and dishonest behaviors.Accountability
Due Diligence
Section 2 Business Strengthen the protection of trade secrets and prevent Articles 52 55 and 56 of the
Conducts unfair competition and monopoly to promote and Guidelines
foster a fair market competition environment.Anti-Unfair
Article 56 Integrity and Business Ethics
Competition
Information Security Ensure information security including that of the Data Security and Customer
3 Company clients and employees to protect client Privacy Protection Accountability
and Privacy Protection privacy and use client data responsibly. Article 48 of the Guidelines
Article 57 Index
Chapter VI Supplementary Provisions and Interpretation Value intellectual property protection establish and Innovation-Driven
Intellectual Property improve the Regulations on IP Management and
Article 58 Third-Party?Verification?Report 4 strengthen the application protection and utilization Article 54 of the Guidelines LifecycleProtection of intellectual property to promote technological
innovation and achievement transformation.
141 142Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Material Issues Issue Explanation A-share Guidelines Corresponding Chapter Material Issues Issue Explanation A-share Guidelines
Corresponding
Chapter
Environment (E) Social (S)
Enterprises take proactive measures to address Addressing climate change Increase R&D investment and promote technological
climate change. They can participate in global climate
Addressing climate Articles 21- 28 of the innovation to develop new products technologies
5 governance through carbon emissions reduction
Innovation-Driven
and services with social value thus enhancing core
change energy?efficiency?improvement?and?other?measures?to?
Ecology
Guidelines competitiveness.mitigate the impact on the global climate and address Technology Ethics12 R&D and innovation Lifecycle
the climate change crisis. Focus on the ethical issues in sensitive areas of cutting-
edge technology research and adhere to ethical norms Article 42 and Article 43 of
in?scientific?research?technology?development?and? the Guidelines
Build formal environmental management structures
Environmental Environmental compliance other?scientific?activities.and procedures to ensure that business activities
6 compliance comply with environmental regulatory requirements management Ecology Strictly control product quality and safety to ensure
management and encourage continuous environmental
improvement. Article 33 of the Guidelines compliance with relevant standards and regulations and strengthen quality management systems to Product and Service Safety High-quality products Accountability
13 produce responsible and safe products. and Quality
and services Offer?high-quality?customer?service?value?customer? PartnershipPlan implement inspect and improve the energy Article 47 of the Guidelines
Energy management
7 usage of an organization or system through a series of
Energy Utilization needs and feedback and actively resolve customer
strategies?and?measures?to?achieve?effective?utilization? Ecology issues to enhance customer satisfaction.and utilization Article 35 of the Guidelines
and conservation of energy. Enterprises optimize supply chain management to
ensure stability and sustainability by integrating ESG Supply chain security
Focus on the utilization of water and other resources factors throughout the entire process of supplier access Water Resource Utilization evaluation and management. This continuously Equal Treatment of Small and
Resource management resource conservation and circular management Circular Economy Responsible supply reduces operational risks and creates a responsible Medium-Sized Enterprises8 during production and operation processes. Lifecycle Ecology 14 Partnership
and circular economy Article 36 and Article 37 of chain management supply chain.Value reusable or recyclable materials to reduce Due Diligence
resource consumption and waste generation. the Guidelines Promote responsible mineral management and pledge to?no?use?of?minerals?from?conflict-affected?and?high- Article 45 and Article 52 of
Pollutant Emissions risk?areas?that?involve?armed?conflict?widespread? the Guidelines
violence or other risks harmful to the people.Emissions and waste Control and manage emissions and waste from the Waste Disposal
9 entity during production and operation to reduce Ecology Actively engage in industry exchanges and cooperation
management negative environmental impacts. and treat small or medium-sized enterprises equally Article 30 and Article 31 of Article 40 and Article 46 of 15 Industry cooperation to promote industry development and technological Partnership
the Guidelines progress as well as collaborative and sustainable the Guidelines
development among industry partners.Prioritize biodiversity conservation and take measures Ecosystem and Biodiversity Safeguard the legitimate rights and interests of
Biodiversity
10 to protect the ecological environment and mitigate Conservation Ecology employees through complying with labor regulations
conservation species extinction thereby promoting ecological and providing reasonable working conditions as
balance and sustainable use of natural resources. Article 32 of the Guidelines well?as?compensation?benefits?to?create?a?favorable?
working environment. Advocate for employee diversity
Expand the precise strategic layout investment and and?equality?respect?individual?differences?and? Employees
development of clean and low-carbon technologies Talent management cultural backgrounds of employees and eliminate
Cleantech and clean energy promote the use of clean energy to Article 20 and Article 35 of 16 discrimination and prejudice to establish an inclusive Article 50 of the Guidelines Partnership11 and development
opportunities seize?green?transformation?opportunities?and?offer?
Lifecycle
the Guidelines and open working environment.low-carbon transformation solutions for the value Value employee training and development through
chain. diversified?training?courses?and?career?development?
opportunities to help employees enhance skills and
capabilities to realize the joint development of personal
and enterprise values.Prioritize employee health and safety by continuously
Occupational Health improving the work safety system and providing safety
17 training and protective measures to prevent workplace Partnership
and Safety accidents and occupational diseases and ensure the
physical and mental well-being of employees.Actively involved in rural revitalization public welfare Rural Revitalization
and charitable causes paying attention to vulnerable
Rural revitalization and
18 groups and social issues and establishing good
Social Contribution
social contribution communication and cooperation with communities to
Partnership
provide donations and support various public welfare Article 39 and Article 40 of
activities?thereby?fulfilling?corporate?responsibility. the Guidelines
143 144Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Double Materiality Index Table Issue Four elements Location Corresponding page number
Corresponding Governance Lifecycle-Pioneer R&D Innovation 39Issue Four elements Location page number
Strategy Lifecycle-Pioneer R&D Innovation 39-42
Governance Ecology-Addressing Climate Change 47 R&D and Innovation
ImpactRisk and Opportunity
Lifecycle-Pioneer R&D Innovation 39-44
Strategy Ecology-Addressing Climate Change 47 Management
Addressing Climate
Change ImpactRisk and Opportunity Ecology-Addressing Climate Change 50 Metrics and Targets Lifecycle-Pioneer R&D Innovation 39
Management
Metrics and Targets Ecology-Addressing Climate Change 50-51 Governance Accountability-Quality Management System 76
Governance Ecology-Environmental Management 52 Strategy Accountability-Quality Management System 76High-quality products and
Strategy Ecology-Environmental Management 52 services ImpactRisk and Opportunity
Environmental Compliance Accountability-Quality Management Process 76-82Management
Management ImpactRisk and Opportunity Ecology-Environmental Management 52 Accountability-Quality Management System Safeguarding
Management Metrics and Targets 76-82Product Quality and Safety
Metrics and Targets Ecology-Environmental Management 52 Governance Partnership-Establishing Responsible Supply Chain 110-116
Ecology-Water Resource Management 57
Governance Strategy Partnership-Establishing Responsible Supply Chain 110-116Responsible Supply Chain
Lifecycle-Full Lifecycle Green Solutions 27
Management ImpactRisk and Opportunity
Partnership-Establishing Responsible Supply Chain 110-116
Management
Ecology-Water Resource Management 57
Strategy Metrics and Targets Partnership-Establishing Responsible Supply Chain 110-116
Lifecycle-Full Lifecycle Green Solutions 29-38
Resource Management
and Circular Economy Governance Partnership-Cultivating a Vibrant Workplace 85-101
ImpactRisk and Opportunity Ecology-Water Resource Management 57
Management Lifecycle-Full Lifecycle Green Solutions 29-38 Strategy Partnership-Cultivating a Vibrant Workplace 85-101Talent development and
management ImpactRisk and Opportunity
Ecology-Water Resource Management 57 Partnership-Cultivating a Vibrant Workplace 85-101Management
Metrics and Targets
Lifecycle-Full Lifecycle Green Solutions 29-38 Metrics and Targets Partnership-Cultivating a Vibrant Workplace 85-101
Lifecycle-Full Lifecycle Green Solutions 29-38 Governance Partnership-Cultivating a Vibrant Workplace 102-103
Governance
Lifecycle-Pioneer R&D Innovation 39-44
Strategy Partnership-Cultivating a Vibrant Workplace 102-107
Occupational Health and
Lifecycle-Full Lifecycle Green Solutions 29-38 Safety ImpactRisk and Opportunity
Strategy Partnership-Cultivating a Vibrant Workplace 102-107
Lifecycle-Pioneer R&D Innovation 39-44 Management
Clean Technology
Opportunities Metrics and Targets Partnership-Cultivating a Vibrant Workplace 102-107
ImpactRisk and Opportunity Lifecycle-Full Lifecycle Green Solutions 29-38
Management Lifecycle-Pioneer R&D Innovation 39-44 Governance Accountability-Ensuring Stable Operations 65-72
Strategy Accountability-Ensuring Stable Operations 65-72
Lifecycle-Full Lifecycle Green Solutions 29-38
Metrics and Targets Stable Governance
Lifecycle-Pioneer R&D Innovation 39-44 ImpactRisk and Opportunity Accountability-Ensuring Stable Operations 65-72
Management
Metrics and Targets Accountability-Ensuring Stable Operations 65-72
145 146Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Analysis of Sustainable Development Issues and Their Impacts Risks and Opportunities
Issue Impact Scope Impact Cycle Type Description SDGs Impact Financial Corresponding Materiality Materiality Chapter
Addressing Impact ◆ Enterprises directly alleviate the pressure on the global climate system by reducing carbon emissions and improving * Lifecycle
climate change energy efficiency. They contribute to the mitigation of global warming protect the ecological environment from the * Ecology
impact of extreme weather events assist global climate governance and promote global ecological balance.Risk ◆ Physical risks: Extreme weather can cause shutdowns and production halts decreasing production capacity and consequently reducing
revenue. Long-term climate change leads to rising energy prices and increased operational costs.◆ Policy and legal risks: As enterprises venturing overseas face increasingly stringent laws and regulations related to the environment
carbon emissions and carbon footprints the Company has to invest heavily to mitigate compliance risks or may face related penalties
upon violations.Opport- ◆ Business continuity: Vigorously implementing preventive measures against physical risks such as extreme weather enhances Sunwoda's
unities resilience against risks and ensures the continuity of production and operations.◆ Efficiency improvement and cost saving: Clean technologies and digital transformation will facilitate production and operational
efficiency.◆ Policy incentives: The government provides "dual carbon"-related subsidies or tax incentives enabling the Company to leverage such
policies to advance low-carbon transformation and business growth.◆ Market competitiveness: Developing low-carbon products and green solutions to meet domestic and international market demands
breaking through "green barriers" and exploring new markets.Environmental Impact ◆ The Company should strictly comply with environmental regulations establish and improve environmental management structures * Ecology
compliance and procedures reduce environmental risks and encourage continuous environmental improvement to minimize the negative impacts
management caused by business operations.Risk ◆ Legal?risks:?Failure?to?comply?with?environmental?regulations?or?standards?may?lead?to?serious?legal?consequences?including?fines?
penalties and even potential legal litigation and enforcement risks.◆ Operational risks: Non-compliance may lead to production halts delays or supply chain disruptions thereby affecting overall
operational?efficiency?and?business?outcomes.◆ Reputation?risks:?Being?exposed?as?a?non-compliant?enterprise?may?damage?brand?reputation?affect?relationships?with?customers?
investors and partners and lead to a decline in market share.Opport- ◆ Expanding into international markets: Some countries and regions increasingly demand higher environmental standards for
unities imported products in global trade. By strengthening environmental compliance management Sunwoda can ensure its products meet
international environmental standards facilitating smooth entry into international markets and expanding global business.◆ Driving technological innovation: To meet environmental compliance requirements the Company continuously engages in
technological innovation and transformation.
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Issue Impact Scope Impact Cycle Type Description SDGs Impact Financial Corresponding Materiality Materiality Chapter
Energy Impact ◆ The?Company?should?enhance?energy?management?by?efficiently?utilizing?energy?advocating?for?the?use?of?renewable?energy?sources? * Ecology
management and and reducing reliance on fossil fuels to lower greenhouse gas emissions and promote the green transformation of the energy structure.utilization
Risk ◆ Cost?risks:?Fluctuations?in?energy?prices?may?significantly?impact?the?Company's?operational?costs?especially?for?energy-intensive?
industries.?Failure?to?effectively?manage?energy?efficiency?will?lead?to?increased?costs?and?impact?profitability.Opport- ◆ Cost?reduction?and?efficiency?improvement:?By?optimizing?energy?management?the?Company?can?improve?energy?utilization?efficiency?
unities reduce?energy?consumption?and?lower?costs.?It?can?also?further?improve?the?operational?efficiency?and?reliability?of?the?energy?system?
enhancing Sunwoda's competitiveness.◆ Cooperation?and?investment:?Energy?management?and?utilization?involve?multiple?fields?and?processes?necessitating?extensive?
collaboration between the Company and governments research institutions upstream and downstream enterprises etc. The Company
can?integrate?resources?for?joint?energy?project?development?technological?R&D?and?market?expansion?achieving?mutual?benefits.Resource Impact ◆ The Company should optimize water resource management promote resource recycling reduce resource consumption and waste * Ecology
management and generation?mitigate?environmental?damage?caused?by?resource?extraction?improve?resource?efficiency?and?contribute?to?a?sustainable?
circular economy resource system.Risk ◆ Resource?scarcity?risks:?In?water-scarce?regions?excessive?water?use?or?wastage?may?lead?to?water?shortages?affecting?project?
operations and future development plans. Cost risks: Fluctuations in resource prices and supply chain disruptions may lead to increased
operational?costs?especially?in?projects?reliant?on?substantial?natural?resources.?Ineffective?resource?management?may?expose?the?
Company to high resource acquisition costs.Opport- ◆ Resource optimization and conservation: By implementing advanced resource and environmental management systems the Company
unities can?optimize?resource?usage?boost?production?efficiency?reduce?operating?costs?and?minimize?negative?environmental?impacts.◆ Brand enhancement: As a pioneer in the circular economy demonstrating the Company's commitment to environmental protection and
resource management can enhance corporate image attract eco-conscious investors customers and partners and secure a favorable
position in the green economy transition.Emissions Impact ◆ The Company should strictly control the discharge of sewage exhaust gases and waste optimize the management of "three wastes" * Ecology
and waste reduce the pollution of hazardous substances to the environment and protect water and soil quality maintaining ecological balance
management and creating a healthy living environment for local residents.Risk ◆ Regulatory risks: As local governments have strict regulations and standards on pollutant emissions failure to comply with these
requirements?may?result?in?substantial?fines?or?penalties?and?even?lead?to?supply?chain?disruptions?affecting?the?Company's?operations?
and business expansion.◆ Reputation risks: Excessive pollutant emissions or improper treatment may attract media and public attention damaging the
Company's?brand?image?and?affecting?the?confidence?of?potential?partners?and?investors.◆ Financial risks: Investments in governance and emission reduction technologies may increase operational costs especially under
increasingly?stringent?environmental?protection?requirements.?Moreover?the?long-term?effects?of?pollutant?emissions?may?lead?to?an?
increase in environmental remediation costs.Opport- ◆ Cost?savings?and?efficiency?improvement:?By?optimizing?the?"three?wastes"?management?process?the?Company?can?achieve?resource?
unities recycling thereby reducing raw material procurement costs and waste disposal costs.◆ Market competitiveness enhancement: Companies excelling in emissions and waste management can attract more consumers and
investors?broadening?financing?channels?and?reducing?financing?costs.
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Issue Impact Scope Impact Cycle Type Description SDGs Impact Financial Corresponding Materiality Materiality Chapter
Biodiversity Impact ◆ Measures should be taken to protect biodiversity maintain ecosystem and species diversity and promote harmonious coexistence * Ecology
conservation between humans and nature throughout the entire process from site development to operational production.Risk ◆ Operational risks: Stricter biodiversity protection regulations may lead to more complex approval procedures and higher compliance
costs?thereby?affecting?production?progress?and?profitability.Opport- ◆ Policy support and subsidies: Local governments may introduce support policies and subsidies enabling the Company to reduce costs
unities and?obtain?financial?support?for?biodiversity?protection?projects?and?related?business?development.◆ Market demand and brand value enhancement: With increasing consumer awareness of environmental protection and sustainable
development?companies?with?a?strong?record?of?biodiversity?conservation?win?a?competitive?edge?and?differentiate?themselves?
competitively helping to enhance brand value and market share.Cleantech Impact ◆ The Company should increase investment in clean and low-carbon technologies and reduce product carbon footprints to seize * Lifecycle
opportunities opportunities in green transformation. This would include providing low-carbon solutions for the value chain promoting the
development of a green economy and contributing to societal green transformation. * Ecology
Risk ◆ Economic risks: The introduction and application of clean technologies often require high initial investments such as equipment
procurement?infrastructure?upgrades?and?employee?training.?In?the?short?term?this?may?strain?corporate?finances?especially?when?the?
return on investment is uncertain.◆ Technical risks: The development and implementation of clean technologies rely on rapidly evolving science and technology posing
risks?of?failed?upgrades?or?unmet?expectations?which?may?impact?the?operational?efficiency?and?project?outcomes?of?the?Company.◆ Market?risks:?Market?acceptance?of?clean?technologies?may?be?uncertain?especially?when?traditional?methods?are?more?cost-effective?
posing potential challenges for market promotion and customer acceptance.Opport- ◆ Cost?savings:?In?the?long?run?clean?technologies?can?improve?energy?efficiency?reduce?resource?waste?lower?operational?costs?and?
unities enhance enterprises' overall resource management capabilities.◆ Innovation and market expansion: By developing and applying clean technologies the Company can seize the initiative in the low-
carbon product market explore new business opportunities and establish technological innovation leadership within the industry.◆ Brand and reputation enhancement: Adopting clean technologies can bolster the Company's reputation in sustainable development
attract?more?environmentally?conscious?customers?investors?and?partners?and?enhance?brand?influence.◆ Policy incentives: As governments worldwide vigorously support the application of clean technologies through tax reductions
subsidies?and?green?financing?programs?to?drive?the?transition?of?enterprises?toward?clean?technologies?the?Company?can?leverage?
these policies to drive business growth and sustainable development.
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Issue Impact Scope Impact Cycle Type Description SDGs Impact Financial Corresponding Materiality Materiality Chapter
R&D and Impact ◆ The Company should increase investment in research and development promote technological innovation and develop new products * Lifecycle
innovation and technologies with social value enhancing core competitiveness and ensuring that R&D activities comply with social standards.Risk ◆ Technical risks: Innovation projects may face technical R&D failure or unmet expectations leading to resource waste and investment
losses?affecting?the?Company's?financial?performance?and?innovation?capabilities?and?impacting?other?business?operations.◆ Market risks: Even if technological innovation succeeds new products or services may not gain market recognition or customer
acceptance especially in cases of rapidly changing consumer demands or intense competition.◆ Compliance and intellectual property risks: In a rapidly evolving innovation environment the Company may face intellectual property
disputes or compliance issues particularly when collaborating with international competitors or developing new technologies which
may?affect?corporate?reputation?and?operations.Opport- ◆ Industry leadership: Continuous innovation enables the Company to maintain its technological and market leadership and set industry
unities benchmarks attracting more strategic partners and investors and enhancing its overall competitive advantage.◆ New market development: Innovation helps the Company enter new market sectors and meet growing customer demands especially
in achieving a larger share in emerging markets such as green products smart manufacturing and sustainable development.◆ Resource?efficiency?improvement:?New?technologies?and?processes?driven?by?innovation?can?significantly?improve?resource?utilization?
efficiency?reduce?operating?costs?and?support?the?Company's?sustainable?development?strategy.◆ Policy?support?and?incentives:?As?local?governments?may?provide?policy?benefits?tax?reductions?and?financial?subsidies?for?innovation?
projects the Company can leverage these policy incentives to further accelerate its innovation pace.High-quality Impact ◆ The Company should strictly control quality and safety through comprehensive quality management and customer service systems * Accountability
products and to safeguard the rights and interests of customers and consumers providing them with safe high-quality products and satisfactory
services services.* Partnership
Risk ◆ Quality Issues: Non-compliant products or services may result in customer complaints returns or even legal disputes damaging the
Company's reputation.◆ Safety hazards: Safety hazards in products or services may endanger customer safety resulting in severe legal consequences and
financial?losses.Opport- ◆ Brand enhancement: Consistently providing high-quality and safe products and services helps enhance brand image and attract more
unities customers.◆ Market?expansion:?High-quality?products?and?services?can?open?up?new?markets?meet?the?needs?of?different?customers?and?expand?
business scope.
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Issue Impact Scope Impact Cycle Type Description SDGs Impact Financial Corresponding Materiality Materiality Chapter
Responsible supply Impact ◆ The Company should integrate ESG factors into the entire process of supplier access evaluation and management to optimize * Partnership
chain management supply chain management and ensure its stability and sustainability. This would reduce environmental and social risks promote the
development of supply chain partners and advocate responsible procurement ultimately contributing to a fair and sustainable global
supply chain system.Risk ◆ Disruption?risks:?Supply?chain?disruptions?(such?as?natural?disasters?market?fluctuations?or?supplier?issues)?may?lead?to?material?
shortages?or?cost?increases?affecting?the?Company's?production?schedules?and?operational?stability.◆ Compliance and reputation risks: Non-compliant partners in the supply chain for environmental or social responsibility standards may
expose the Company to compliance issues and reputation risks. For example being found using non-compliant materials or suppliers
will harm the Company's brand image.◆ Cost risks: Supply chain management requires continuous resource investments such as supplier screening and sustainable
procurement?practices?which?may?lead?to?short-term?increases?in?operating?costs?and?impact?financial?performance.◆ Quality?control?risks:?The?complexity?of?the?supply?chain?makes?quality?control?more?difficult.?Product?quality?issues?may?affect?customer?
satisfaction and the Company's reputation and potentially lead to legal disputes.Opport- ◆ Supply chain optimization: By introducing digital management and big data analysis the Company can optimize supply chain
unities processes?improve?efficiency?reduce?costs?ensure?the?sustainability?and?reliability?of?raw?materials?and?enhance?overall?
competitiveness.◆ Collaboration?and?mutual?benefits:?Establishing?strategic?partnerships?with?suppliers?to?promote?sustainable?development?and?
innovative solutions can enhance market competitive advantages.◆ Transparency and compliance: Implementing transparent and traceable supply chain management helps the Company to demonstrate
its commitment to environmental and social responsibility bolstering trust among customers and investors and aligning with
increasingly stringent global sustainability requirements.◆ Risk management: Building a resilient supply chain can enhance the Company's ability to respond to external uncertainties mitigate
the impact of supply disruptions and ensure the continuity and stability of business operations.Industry Impact ◆ The Company should actively participate in industry exchanges and collaborations to promote industry development standards * Partnership
cooperation formulation and technological advancement and facilitate coordinated sustainable development among industry partners collectively
addressing industry challenges and enhancing the overall competitiveness of the industry.Risk ◆ Risks?from?misaligned?cooperation?objectives:?Different?enterprises?may?have?varying?goals?and?interests?in?industry?collaborations?
which?may?lead?to?conflicts?and?disputes?during?the?cooperation?process?potentially?hindering?the?progress?of?collaborative?projects.◆ Cultural?and?management?divergence?risks:?Differences?among?companies?may?result?in?communication?barriers?coordination?
difficulties?and?low?decision-making?efficiency?increasing?management?costs?and?risks?of?the?collaboration.◆ Risks of technology and data breaches: Enterprises may need to share certain technical or patent-related information in collaboration.Inadequate?information?security?management?may?lead?to?data?breaches?causing?significant?losses?to?the?enterprise.Opport- ◆ Corporate innovation promotion: Engaging in industry exchanges and university-industry-research cooperation helps enterprises
unities accelerate the adoption and application of new technologies enhancing its innovative capabilities.◆ Brand image enhancement: Industry events are crucial platforms for enterprises to showcase their strengths and achievements in
sustainable development. Hosting or participating in such events helps enterprises spread advanced ideas and technologies shaping
the image of a sustainable leader.
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Issue Impact Scope Impact Cycle Type Description SDGs Impact Financial Corresponding Materiality Materiality Chapter
Talent Impact ◆ The Company protects employees' legal rights by adhering to relevant laws and regulations and providing a positive work environment * Partnership
management and and career development opportunities so as to unleash employees' potential and creativity and contribute to a harmonious society.development
Risk ◆ Talent?attrition?risks:?Failure?to?offer?competitive?compensation?and?benefits?good?career?development?opportunities?and?a?positive?
work?environment?may?lead?to?talent?loss.?The?loss?of?key?personnel?may?significantly?impact?the?Company's?operations?and?
development. For example the departure of core technical talent may lead to technology leaks and project stagnation while the
resignation?of?senior?executives?could?affect?strategic?decision-making?and?operational?management.Opport- ◆ Corporate innovation: A diverse and multifaceted talent team can boost the Company's productivity and creativity contributing to
unities business growth.◆ Efficiency?improvement:?Reducing?employee?turnover?can?cut?recruitment?and?training?costs?and?help?to?maintain?work?efficiency.?Talent?
reserve: Continuous employee development programs help cultivate internal talent meeting the Company's future development needs
and reducing reliance on external recruitment.◆ Corporate image enhancement: Companies valuing employee development are more likely to attract top talent and establish a strong
employer brand.◆ Employee?motivation:?An?effective?training?system?provides?employees?with?clear?career?development?paths?encourages?internal?
promotions and motivates employees.Occupational Impact ◆ The Company should care for employee health and safety through a comprehensive work safety system to prevent workplace injuries * Partnership
Health and Safety and occupational diseases protect labor resources and ensure the physical and mental well-being of employees.Risk ◆ Injury?accidents?will?lead?to?operational?disruptions?resulting?in?decreased?sales?reimbursement?for?compensation?to?affected?workers?
and litigation costs if the Company is found liable.Opport- ◆ Building a strong employer brand will attract more customers and business opportunities thereby enhancing the Company's market
unities competitiveness?and?profitability.?Improving?employee?performance?and?productivity?will?reduce?employee?absenteeism?and?turnover?
rates?thus?increasing?work?efficiency?and?quality.Rural revitalization Impact ◆ The Company should actively engage in rural revitalization and public welfare to support vulnerable groups promote community * Partnership
and social development and enhance social cohesion facilitating social equity and harmony
contribution
Risk ◆ Economic pressure and increased costs: Rural areas require substantial upfront investment in infrastructure construction environmental
governance and ecological protection. Traditional rural industries also may need transformation and upgrading to align with ESG
standards involving costs related to technological updates equipment renewal and personnel training.◆ Social participation and cooperation challenges: Rural revitalization and social contributions involve multiple stakeholders with
different?interests?and?goals?potentially?leading?to?slow?project?advancement?or?conflicts?and?disputes.?The?cooperation?mechanisms?
between?rural?areas?and?external?enterprises?social?organizations?and?financial?institutions?are?not?yet?perfected.?They?lack?effective?
communication?coordination?and?cooperation?platforms?which?may?impact?the?flow?and?allocation?efficiency?of?social?capital?and?
resources to rural areas.◆ Environmental and ecological protection pressure: The ecological environment of rural areas is relatively fragile. If the relationship
between economic development and ecological protection is not adequately handled during rural revitalization it may cause damage
to the rural ecosystem such as excessive exploitation of natural resources pollution of soil and water sources etc. which not only
violates?ESG?principles?but?also?may?affect?rural?sustainability.Opport- ◆ Policy support and capital guidance: The government highly values the integrated development of rural revitalization and ESG and
unities has?introduced?a?series?of?supportive?policies?such?as?fiscal?subsidies?tax?incentives?and?loan?interest?subsidies?which?can?reduce?
enterprises' operational costs.◆ Industrial upgrading and innovation opportunities: As ESG requirements encourage enterprises to help rural areas develop green
ecological?and?sustainable?characteristic?industries?enterprises?can?leverage?their?technical?financial?and?management?advantages?
to promote the upgrading of rural industries increase their industrial added value and market competitiveness and achieve a virtuous
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Issue Impact Scope Impact Cycle Type Description SDGs Impact Financial Corresponding Materiality Materiality Chapter
Robust Impact ◆ The Company should establish a robust corporate governance structure and a sustainable development/ESG governance structure. This * Accountability
governance will?enhance?the?Company's?scientific?and?transparent?decision-making?ensure?lawful?and?compliant?operations?and?create?long-term?
value for society.Risk ◆ Internal?governance?risks:?An?imperfect?corporate?governance?structure?may?lead?to?lengthy?inefficient?decision-making?processes?
or?decisions?lacking?scientific?basis?and?foresight?which?will?cause?the?Company?to?miss?development?opportunities?or?make?wrong?
investment?decisions?affecting?its?long-term?development.?If?the?management?of?the?Company?lacks?essential?professional?knowledge?
skills?and?experience?or?does?not?profoundly?understand?and?sufficiently?value?ESG?concepts?they?may?fail?to?effectively?lead?and?
drive the Company's ESG practices troubling to cope with the complex and changing market environment and increasingly stringent
regulatory requirements.◆ External compliance risks: Failure to promptly understand and comply with the latest ESG laws and regulations may expose the
Company?to?hazards?such?as?substantial?fines?and?legal?lawsuits?causing?significant?economic?losses?and?reputational?damage.Opport- ◆ Strategic planning opportunities: ESG concepts provide the Company with a more comprehensive and long-term strategic planning
unities perspective encouraging the integration of environmental social and governance factors into decision-making processes.◆ Risk?management?opportunities:?A?sound?governance?structure?and?effective?ESG?management?system?can?help?the?Company?better?
identify assess and respond to various risks. By preventing and controlling risks the Company can reduce potential losses and enhance
operational stability and risk resilience.◆ Innovation development opportunities: Robust governance can create a conducive environment for innovation encouraging innovative
thinking?and?practices?within?the?Company?driving?innovation?in?the?field?of?sustainable?development?and?exploring?new?markets?and?
business areas.Anti-corruption Impact ◆ The?Company?should?uphold?the?correct?values?and?principles?to?formulate?and?strictly?enforce?anti-corruption?policies?effectively? * Accountability
and business preventing corruption risks and preventing unfair competition and monopolistic behaviors thereby contributing to a fair transparent
ethics and favorable market competition and business environment.Risk ◆ Legal?risks:?Unfair?competition?or?corruption?may?lead?to?legal?proceedings?fines?and?disruptions?in?the?Company's?regular?operation.◆ Reputation risks: Exposure to corruption or unfair competition may damage corporate reputation reducing trust from clients and
partners and hindering business development.◆ Financial?risks:?Corruption?may?lead?to?resource?waste?and?financial?losses?affecting?the?financial?health?of?the?Company.Opport- ◆ Corporate reputation and brand value enhancement: The Company should establish a positive image and elevate the brand value
unities and market competitiveness to increase user stickiness encourage long-term stable relationships and enhance user loyalty and
satisfaction promoting sustained business growth.◆ Internal?management?and?operational?efficiency?optimization:?Strengthening?anti-corruption?and?business?ethics?requires?the?Company?
to establish a sound internal management system and governance structure clarifying the responsibilities of various departments and
personnel.?This?helps?improve?the?overall?management?level?and?operational?efficiency?of?the?Company.?Simultaneously?it?also?reduces?
economic losses and additional costs caused by corrupt practices thereby lowering the Company's operational costs.
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Issue Impact Scope Impact Cycle Type Description SDGs Impact Financial Corresponding Materiality Materiality Chapter
Information Impact ◆ The?Company?should?establish?a?robust?information?security?management?system?to?effectively?prevent?information?leakage?risks?and? * Accountability
Security and safeguard?the?security?and?confidentiality?of?information?for?the?Company?customers?employees?and?other?parties.Privacy Protection
Risk ◆ Data leakage risks: Inadequate data security measures may allow sensitive information to leak resulting in customer losses and legal
liabilities.◆ Compliance?risks:?Failure?to?comply?with?data?protection?regulations?may?result?in?penalties?from?regulatory?authorities?affecting?the?
Company's normal operations.Opport- ◆ Corporate reputation and brand value enhancement: Strictly protecting user information security and privacy demonstrates the
unities Company's social responsibility and ethical business practices. It helps build long-term stable relationships and increases user loyalty
and satisfaction thereby expanding market share.◆ Internal?management?and?operational?efficiency?optimization:?Strengthening?information?security?and?privacy?protection?requires?the?
Company to establish a sound internal management system and governance structure which helps improve overall management and
operational?efficiency.?Meanwhile?it?also?reduces?economic?losses?and?additional?costs?caused?by?data?breaches?and?security?incidents?
lowering the Company's operating costs.Intellectual Impact ◆ The Company should establish and improve the regulations on IP management and strengthen the application protection and * Lifecycle
Property Protection utilization?of?intellectual?property?to?effectively?protect?the?Company's?innovation?achievements?and?core?competitiveness?promote?
technological innovation and achievement transformation and drive long-term industry development.Risk ◆ Legal?risks:?As?the?regulations?on?IP?management?vary?significantly?across?different?countries?and?regions?the?Company?may?infringe?on?
others'?intellectual?property?or?fail?to?effectively?protect?their?own?rights?in?cross-border?operations?and?collaborations?leading?to?legal?
disputes?and?financial?losses.◆ Data security risks: In the digital era data security related to intellectual property is prone to losses which may even disrupt the
Company's regular operation.Opport- ◆ Market competitiveness: Protection of intellectual property helps increase product added value and enhances the Company's market
unities competitiveness and has a positive impact on revenue growth.◆ Revenue?sources?expansion:?Intellectual?property?can?be?used?as?corporate?assets?for?financing?licensing?or?transfer?generating?
additional?revenue?sources?for?the?Company?and?improving?its?financial?condition?and?operational?flexibility.
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Independent Verification Statement
Independent Verification Statement Independent Verification Statement
Verification Statement：EIV2 076537 0215 Rev. 00 Verification Statement：EIV2 076537 0215 Rev. 00
To the management and stakeholders of Sunwoda Electronic Co.Ltd. This verification process was conducted by TüV SüD's expert team with extensive experience in the governance
environmental social and other relevant areas and drew the conclusions thereof. The verification conforms to the
TüV SüD Certification and Testing (China) Co. Ltd. (hereinafter referred to as “TüV SüD”) has been engaged by Sunwoda
following standards:
Electronic Co.Ltd. (hereinafter referred to as “Sunwoda” or “the Company”) to perform an independent third-party
? AA1000 Assurance Standard v3 (AA1000AS v3) Type 1 assurance engagement with a moderate level ofverification on 2024 Sustainability Report of Sunwoda Electronic Co.Ltd. (hereinafter referred to as “the Report"). Duringassurance.this verification TüV SüD's verification team strictly abided by the contract signed with Sunwoda and provided
? Sustainability report verification programme operation rule (CCB_EIV_GR_002E Rev02)
verification regarding the Report in accordance with the provisions agreed by both parties and within the authorized
scope stipulated in the contract. In order to perform adequate verification in accordance with the contract and provide reasonable verification for the
conclusions the verification team conducted the following activities:
This Independent Verification Statement is based on the data and information collected by Sunwoda and provided to
? Preliminary investigation of the relevant information before the verification;
TüV SüD. The scope of verification is limited to the given information. Sunwoda shall be held accountable for
? Confirmation of the presence of the topics with high level of materiality and performance in the Report;
authenticity and completeness of the provided data and information (contains assumptions projections and/or historical
? On-site review of all supporting documents data and other information provided by Sunwoda; tracing and
facts).verification of key performance information;
Scope of Verification ? Special interview with the representative of Sunwoda’s management; interviews with the employees related to
collection compilation and reporting of the disclosed information; and
Time frame of this verification:
? Other procedures deemed necessary by the verification team.? The Report contains the data disclosed by Sunwoda during the reporting period from January 1st 2024 to
December 31st 2024 including governance environmental and social information and data methods for
Verification Conclusions
management of material issues actions/measures and the Company's sustainability performance during the
reporting period. According to the verification we believe that the data and information presented in Sunwoda's report are objective
Physical boundary of this verification: factual and reliable without systematic problems and can be used by stakeholders. Meanwhile the content of the
? The on-site verification sampling took place at below listed location: report complies with the relevant requirements of Self-Regulatory Guidelines No. 17 for Companies Listed on ShenzhenNo.2 Yihe Rd Shilong Community Shiyan St Boan District Shenzhen Guangdong China Stock Exchange—Sustainability Report (For Trial Implementation)” (hereinafter referred to as the Guidelines) .Scope of data and information for the verification: The verification team has drawn the following conclusions on this Report:
? The scope of verification is limited to the data and information of Sunwoda and all companies under its
operational control covered by the Report. In accordance with the relevant requirements of Self-Regulatory Guidelines No. 17 for
The following information and data are beyond the scope of this verification: Companies Listed on Shenzhen Stock Exchange—Sustainability Report (For Trial
? Any information and contents beyond the reporting period of this Report; and Implementation) and Self-Regulatory Guidance No. 3 for Companies Listed on Shenzhen
? The data and information of Sunwoda’s suppliers partners and other third parties; and Stock Exchange—Preparation of Sustainability Report Sunwoda has thoroughly identified both
? The financial data and information disclosed in this Report that have been audited by an independent third party internal and external stakeholders of the organization including government and regulatory
Inclusivity
are not verified again herein. bodies shareholders and investors customers employees suppliers partners as well as the
Limitations public and local communities. The Company has established a systematic stakeholder
engagement mechanism to regularly gather and respond to stakeholders’ genuine concerns ? The verification process is conducted in the above scope and places. Sampling and verification are adopted for
thereby continuously enhancing its sustainable development governance and the quality of
the data and information in the Report by TüV SüD and only the stakeholders within the Company are
information disclosure.interviewed; and
? The Company's standpoint opinions forward-looking statements and predictive information as well as the In accordance with Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen
historical data and information before January 1st 2024 are beyond the scope of this verification. Stock Exchange—Sustainability Report (For Trial Implementation) and Self-Regulatory
Guidance No. 3 for Companies Listed on Shenzhen Stock Exchange—Preparation of
Materiality
? TüV SüD's verification conclusions are based on the analysis of the data and information collected by TüV SüD Sustainability Report Sunwoda has established a clear assessment mechanism for
and may not identify all problems and conditions nor constitute a guarantee of the credibility or status of the determining the financial materiality and impact materiality of sustainability topics. For topics
subject of verification. deemed financially material The Company provides systematic disclosures based on the four
Basis for the Verification
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TüV SüD Certification and Testing Tel: +86 21-61410123 TüV SüD Certification and Testing Tel: +86 21-61410123
(China) Co. Ltd. Fax: +86 21-61408600 (China) Co. Ltd. Fax: +86 21-61408600
No.151 Heng Tong Road Web: www.tuvsud.com No.151 Heng Tong Road Web: www.tuvsud.com
Shanghai 200070 Shanghai 200070
163164
ID: CCB_EIV_F_10.03E Version: 2 Effective Date: 08 Feb 2025 Page 2 of 4
ID: CCB_EIV_F_10.03E Version: 2 Effective Date: 08 Feb 2025 Page 1 of 4Sunwoda Electronic Co. Ltd. Message from the Chairman About Sunwoda Annual Topic Sustainability Management Lifecycle Ecology Accountability Partnership Appendix 2024 Sustainability Report
Independent Verification Statement Independent Verification Statement
Verification Statement：EIV2 076537 0215 Rev. 00 Verification Statement：EIV2 076537 0215 Rev. 00
pillars of governance strategy risk management and metrics & targets ensuring that the the verification statement.report content is highly material and decision-usefulness.Sunwoda has comprehensively disclosed its management strategies and performance Signature:
outcomes on material topics of concern to stakeholders. The Company has established a
Responsiveness On Behalf of TüV SüD Certification and Testing (China) Co. Ltd.systematic communication mechanism to effectively address the concerns and expectations
of various stakeholders.Sunwoda has established a Sustainable Development Management Committee as a standing
body under the Board’s Strategy and Sustainable Development Committee to oversee The
Company’s work across environmental social responsibility and corporate governance (ESG) Zhu Wenjun
areas. The committee is responsible for formulating ESG strategies policies and annual work TüV SüD Sustainability Authorized Signatory Officer
plans reviewing and promoting the preparation of the sustainability report and regularly April 10th 2025
evaluating the implementation of related initiatives to ensure that ESG practices are deeply Shanghai China
integrated with The Company’s business operations.Note: In case of any inconsistency or discrepancy the simplified Chinese version "Independent Verification Statement CN" of this
Impact To support daily management and cross-functional coordination Sunwoda has appointed a verification statement shall prevail while the English translation is used for reference only.Chief Sustainable Development Officer and set up an ESG Management Department. The
Company also incorporates sustainable development goals into the performance evaluation
of key management personnel reinforcing the execution loop.This governance mechanism ensures that The Company can identify and respond to issues
with significant impact on governance the environment and society aligning with the “Impact”
principle in the AA1000 AccountAbility Principles (AA1000 AP) and continuously advancing
high-quality sustainable development.Recommendations on Continuous Improvement
? The verification team has communicated improvement recommendations to Sunwoda's management during the
on-site engagement process.Statement on Independence and Verification Capability
TüV SüD is a trusted partner of choice for safety security and sustainability solutions. It specializes in testing
certification auditing and advisory services. Since 1866 the company has remained committed to its purpose of enabling
progress by protecting people the environment and assets from technology-related risks. Today TüV SüD is present in
over 1000 locations worldwide with its headquarters in Munich Germany. Through expert teams represented by more
than 26000 employees it adds value to customers and partners by enabling market access and managing risks. By
anticipating technological developments and facilitating change TüV SüD inspires trust in a physical and digital world to
create a safer and more sustainable future.TüV SüD Certification and Testing (China) Co. Ltd. is one of TüV SüD's global branches and has an expert team whose
members have professional background and rich industrial experiences.TüV SüD and Sunwoda are two entities independent of each other and both TüV SüD and Sunwoda and their branches
or stakeholders have no conflict of interest. No member of the verification team has business relationship with the
Company. The verification is completely neutral. All the data and information in the Report are provided by Sunwoda.TüV SüD has not been involved in preparation and drafting of the Report except for the verification itself and issuance of
Page 3 of 4 Page 4 of 4
TüV SüD Certification and Testing Tel: +86 21-61410123 TüV SüD Certification and Testing Tel: +86 21-61410123
(China) Co. Ltd. Fax: +86 21-61408600 (China) Co. Ltd. Fax: +86 21-61408600
No.151 Heng Tong Road Web: www.tuvsud.com No.151 Heng Tong Road Web: www.tuvsud.com
Shanghai 200070 Shanghai 200070
165166
ID: CCB_EIV_F_10.03E Version: 2 Effective Date: 08 Feb 2025 Page 4 of 4
ID: CCB_EIV_F_10.03E Version: 2 Effective Date: 08 Feb 2025 Page 3 of 4Reader Feedback Form
Dear Reader
Hello!
Thank you for taking the time to read the "Sunwoda 2024 Sustainability Report" amidst your busy schedule. To better meet your needs
provide you with more valuable information and enable Sunwoda to continuously improve its sustainability performance and enhance
its ability to fulfill social responsibilities we sincerely hope that you can offer us your valuable opinions on our report. Your perspectives
and insights are of utmost importance to us.
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We sincerely thank you for your support and assistance to Sunwoda.Sunwoda Electronic Co. Ltd.No. 2 Yihe Road Shilong Community Shiyan Sub-district Bao'an District
Shenzhen Guangdong Province China
:0755-29516888
: sunwoda@sunwoda.com
: www.sunwoda.com
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