CONTENTS

CONTENTS

E0NV1IRONMENT 0SOC2IETY G0OV3ERNANCE

About This Report 01 Ecology Partnership Accountability

Message from the Chairman 03

About the Company 05

Environmentally Friendly People-Oriented Excellence in Governance

Annual Topic 17 Green Manufacturing Shared Prosperity Pursuing Perfection

Sustainability Management 23

Sustainable Development Impact 31

Addressing Climate Change 47 Innovation-Driven Development 83 Ensuring Stable Operations 155

Double Materiality Assessment 35

Cleantech Opportunities 58 Product Quality and Safety 89 Anti-Corruption and Business Ethics 160

Promoting Circular Economy 65 Creating Customer Value 98 Intellectual Property Protection 167

Environmental Compliance Management 70 Building a Happy Workplace 101 Building Digital Ecosystem 169

Energy Management 75 Occupational Health and Safety 124

Appendix 175 Biodiversity Conservation 80 Establishing Responsible Supply Chain 131

Reader Feedback Form 201 Promoting Industry Growth 141

Rural Revitalization and Social Contribution 144About Message from About Annual Sustainability Sustainable Double Materiality

01 This Report the Chairman the Company Topic Management Development Impact Assessment

Ecology Partnership Accountability Appendix 02

About This Report Basis of Preparation

This report is prepared 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) and complies with/references the Environmental Social and Governance Reporting

Guide of Hong Kong Exchanges and Clearing Limited. This report also references the Corporate

Report Description Sustainability Disclosure Standards No. 1—Climate (For Trial Implementation) issued by the

Ministry of Finance. Meanwhile this report references authoritative standards and guidelines

such as the Sustainability Reporting Standards by Global Reporting Initiative (GRI Standards

This report is the sixth sustainability/environmental social and governance (ESG)/corporate 2021) the United Nations Sustainable Development Goals (SDGs) the "Ten Principles" of the

social responsibility report issued by Sunwoda Electronic Co. Ltd. (hereinafter referred to as United Nations Global Compact (UNGC) and the IFRS Sustainability Disclosure Standards of

“Sunwoda” “the Company” or “the Group”) to stakeholders. the International Sustainability Standards Board (ISSB) as well as key issue indicators from

mainstream ESG ratings in China and internationally.The reporting period covers January 1 2025 to December 31 2025 (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.Preparation Process

Based on the Company's sustainability and ESG practices this report was advanced byScope and Boundary of Report the process of “Project Initiation & Approval--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

The scope of this report is consistent with the consolidated financial statements of Sunwoda to study and demonstrate the framework structure and content of the report.Electronic Co. Ltd. (stock code: 300207).Report Access

Report Data Description The electronic version of this report is available for review or download on the official website

of Sunwoda Electronic Co. Ltd. (https://en.sunwoda.com/).The financial data in this report is sourced from the Company's audited financial reports. Other

The Company will continuously improve and enhance report disclosure standards and

data comes from the Group's internal documents and summarized statistical information.sustainable development management. Should you have any questions or suggestions

Unless otherwise specified all currency types and amounts mentioned in this report are

regarding this report please feel free to contact us:

denominated in Renminbi (RMB).Sunwoda Electronic Co. Ltd.The Company holds joint and several liabilities for the authenticity correctness and Address: No. 2 Longyao Road Shilong Community Shiyan Street Bao'an District Shenzhen

completeness of this report. Guangdong Province China

This report is available in both Chinese and English. For slight discrepancies between the Tel: 86-0755-29516888

Chinese and the English versions the Chinese version shall prevail. Fax: 86-0755-29516999About Message from About Annual Sustainability Sustainable Double Materiality

03 This Report the Chairman the Company Topic Management Development Impact Assessment

Ecology Partnership Accountability Appendix 04

Message from the Chairman

Looking back at 2025 as the global energy Govern ing L i fecyc le Management . Sunwoda whistleblower response forging a corporate governance

transformation surges forward the "carbon consistently leverages product lifecycle management paradigm with sincere compliance as its foundation.neutrality" goal has gradually moved from as a cornerstone to seize opportunities in technological Furthermore with the purpose of meeting customers'

strategic vision to industrial practice. As a transformation. By deepening green product design diversified energy needs we precisely address demands

pioneer in the global lithium-ion battery field and low-carbon production practices while coordinately through diverse products and safeguard safety across

Sunwoda adheres to its mission of "Innovation advancing whole-process quality management and all scenarios through multiple protections takingDrives Progress of New Energy World“ and its closed-loop battery recycling the company is committed intrinsic safety of solid-state batteries and other frontiersustainable development vision of "LEAP toward to achieving the deep integration and comprehensive technologies as our core. Customer satisfaction rate

a Sustainable Future" insisting on "Every Battery upgrading of digitalization intelligence and greenization. reached 93.24% with excellent quality and innovation

Carefully Crafted" and operates steadily while In the cleantech field we achieved multiple major strength forging global trust in energy solutions.enhancing quality and efficiency amid a changing breakthroughs in 2025: releasing the polymer solid-state

global landscape promoting the company's cell with energy density reaching 400 Wh/kg; launching the Partnering for Shared Success. Sunwoda gathers

high-quality and sustainable development. In world's first 1800A extreme fast-charging Flash Charging partner strength to jointly shoulder social responsibility

2025 Sunwoda achieved operating revenue of Battery 4.0; and achieving global-first EPD International working with upstream and downstream partners to

RMB 63.246 billion and net profit attributable Environmental Product Declaration certification for the build a responsible sustainable win-win ecosystem. In

to shareholders of the listed company of RMB 314Ah energy storage cell in the battery industry—providing 2025 Sunwoda pioneered a zero-carbon innovation and

1.057 billion taking solid steps in the coordinated the "Sunwoda Solution" for global energy transition. integration model for the value chain by applying the

development of economic benefits and social SUCCESS supplier assessment model and establishing its

responsibility. Nurturing Ecology Together. Sunwoda has elevated first "Energy and Climate Science Laboratory." Meanwhile

climate change response to the core of its strategy we carried out multiple public welfare projects including

with the Board of Directors directly coordinating climate "Overseas Chinese Love Sunwoda Brightness" with total

governance comprehensively reducing carbon emissions annual public welfare investment reaching RMB 10.8539

and building a solid foundation for development through million letting the kindness power of the "Sunwoda Family"

forward-looking planning. We have incorporated clean warm society. We have won high satisfaction and broad

energy transition into top-level design establishing recognition from all stakeholders through responsibility and

green operational low-carbon competitiveness through warmth safeguarding society's future with warm goodwill.large-scale application of wind and photovoltaic power

optimizing energy structure and procuring low-carbon The journey is long and arduous yet perseverance leads

steam. In 2025 the Company's total installed photovoltaic to the destination. Sunwoda is firmly committed to its

capacity reached 153.60 MW. Meanwhile we have built a "Battery+" strategy capitalizing on three key opportunities:

full-chain environmental compliance management system technological transformation green transition and

achieving executive performance linkage and closed-loop industrial integration. By advancing solid-state batteries

supervision mechanisms safeguarding the enterprise's to push performance boundaries strengthening green

green and sustainable development. compet it iveness through ESG management and

leveraging "AI+" integration to bridge data silos across

Upholding Accountability. Sunwoda deeply insights generation grids loads and storage the company is

into domestic and international economic situations and accelerating its comprehensive transformation from a

industry development trends continuously improving product manufacturer to an energy service provider.information disclosure and sustainable management

structures achieving coordinated development of

operational responsibility and sustainable development Sunwoda Electronic Co. Ltd.responsibility. Through three-dimensional efforts of Chairman of the board

institutional closed-loop management special audits

and culture building we have achieved zero-delay Wang WeiAbout Message from About Annual Sustainability Sustainable Double Materiality

05 This Report the Chairman the Company Topic Management Development Impact Assessment

Ecology Partnership Accountability Appendix 06

About the Company Battery R&D and Global Smartphone Global Laptop and Tablet Battery

Manufacturing Experience Battery Shipment1 Shipment2

Nearly 30 years NO.1 NO.2

Company Profile Sunwoda Electronic Co. Ltd. (hereinafter referred to as “Sunwoda”) was founded in

1997 and listed on the Shenzhen Stock Exchange in 2011 (stock code: 300207). In 2022 HEV Lithium Battery Global Energy Storage Battery

it successfully issued GDRs and was listed on the SIX Swiss Exchange becoming a Domestic Shipment3 Shipment4

global leader in the lithium-ion battery industry.Sunwoda is committed to the mission of "innovation driven new energy world NO.1 TOP10

progress" deeply rooted in the field of lithium batteries and committed to providing

society with more green fast and efficient integrated new energy solutions. The

company has established six business segments: consumer batteries power batteries

energy storage batteries energy services intelligent hardware and innovation and

ecology.Global Layout

Headquarter R&D Centers

Germany China (Shenzhen - Baoan) China (Guangdong

France Shenzhen - Huizhou)

Hungary

Manufacturing Bases

Morocco

Japan USA *China Manufacturing Bases

South Korea

Guangdong (Shenzhen Dongguan Huizhou Maoming)

Zhejiang (Jinhua) Jiangxi (Nanchang Ganzhou)

UAE China

(Shenzhen - Baoan) Shandong (Zaozhuang) Sichuan (Deyang) Hubei

(Yichang) Jiangsu (Nanjing)

India

Thailand

Vietnam *Overseas Manufacturing Bases

India (Noida Greater Noida) Vietnam (Bac Ninh

Province) Hungary (Nyíregyháza) Thailand (Chonburi

Province) Morocco (Tangier City)

Global Offices

1 Rankings sourced from China Insights Consultancy. USA France Germany South Korea Japan UAE Australia

2 Rankings sourced from China Insights Consultancy.

Drawing review number: GS (2021) 5449 Australia 3 Rankings sourced from SNE Research.Supervised by the Ministry of Natural Resources 4 Rankings sourced from China Energy Storage Alliance.About Message from About Annual Sustainability Sustainable Double Materiality

07 This Report the Chairman the Company Topic Management Development Impact Assessment

Ecology Partnership Accountability Appendix 08

Guided by the vision of “To become a respected world-class new energy enterprise” Sunwoda actively embraces national

strategic opportunities and adheres to prudent operations continuous innovation and open cooperation. The Company

reinforces strategic leadership and accelerates the pace of globalization digitalization intelligence and green development. Mission

After nearly thirty years of rigorous development Sunwoda has not only established profound technological foundations in

the lithium battery field with the industry-leading manufacturing process but also has diversified its business portfolio. The Innovation drives the progress of new

Company has become a hidden champion in the 3c consumer-grade battery sector ranked among the top ten globally in energy world

installed capacity of power batteries among the top ten in global energy storage battery shipment.Benefiting from innovative R&D endeavors Sunwoda has emerged as a top performer in the global new

energy industry. The Company is widely recognized by the government industry and customers. It has Vision

been designated as a National Enterprise Technology Center a National and Provincial Champion Enterprise Corporate

in Manufacturing and honored as a National Digital Leading Enterprise one of the nation's first batch of To become a respected world-class new

Excellence-Level Smart Factories First Prize of China Industry-University-Research Cooperation Innovation Culture energy enterprise

Achievement First Prize of Guangdong Science and Technology Progress Award Guangdong Provincial

Government Quality Award and Shenzhen Mayor's Quality Award. Sunwoda has been ranked among the

Global Top 500 New Energy Enterprises (No. 11) China's Top 500 Enterprises (No. 439) and China's Top 500

Manufacturing Enterprises (No. 232). It has been rated as a Tier 1 global power battery manufacturer by

international institution Benchmark selected for BloombergNEF's Tier 1 Energy Storage Manufacturers and

Bankable Energy Storage System Providers list and won awards from customers including Xiaomi and vivo. Core Values

Customer achievement self-criticism

integrity passionate struggle teamwork

Looking to the future the Company aims to be a “pioneer” in the new energy sector by leveraging its professional services

and innovative technologies to facilitate the global energy revolution and contribute to a green Earth!

Financial Performance

Operating Revenue Net Profit Attributable to Shareholders of the Listed Tax Amount (RMB 100 million) Company (RMB 100 million) (RMB 100 million)

632.46 10.57 14.14About Message from About Annual Sustainability Sustainable Double Materiality

09 This Report the Chairman the Company Topic Management Development Impact Assessment

Ecology Partnership Accountability Appendix 10

Company History

2024

2012

The first Southeast

1997 Sunwoda started the 2018 Asian power battery

intelligent hardware manufacturing base

Sunwoda was business 2016 Sunwoda's power 2022 has landed in Thailandestablished 2008 Sunwoda established battery cells went into 2020

energy storage production Sunwoda was listed on

Sunwoda started the business subsidiary Nanjing power battery the Swiss Stock Exchange

R&D of power battery manufacturing base entering an essential

BMs modules and commenced mass phase of globalization

PACK production strategy

2023

The first European

2017 power battery 2025manufacturing base has

Sunwoda's 2019 landed in Hungary and

Picked the "Double

first overseas the consumer battery First" in terms 2011

manufacturing 2021 business has also taken of mobile phone First entered global top

2000 Sunwoda was listedon the base was 10 in power battery root in Vietnam batteries (global

established in India HEV lithium battery shipment volume) Sunwoda GEM board of Shenzhen installed capacity business has been and HEV lithium

commenced volume Stock Exchange 2014 recognized by multiple batteries (domestic

supply to global key mainstream car shipment volume)

customers Sunwoda consumer-grade companies and has

lithium-ion battery cells achieved mass supply

achieved mass productionAbout Message from About Annual Sustainability Sustainable Double Materiality

11 This Report the Chairman Topic Management Development Impact Assessment Ecology Partnership Accountability Appendixthe Company 12

Business Units Energy Services

Relying on its technical and resource integration

Consumer-grade Batteries capabilities in the energy field the Company provides

integrated solutions including new energy power

stations zero-carbon parks zero-carbon mobility

As the Company’s traditional core business the zero-carbon mines and green transportation

consumer-grade battery segment covers the full capacity. From energy planning project construction

chain of products including battery cells small to operation management it builds full-lifecycle

power batteries precision structural parts SiP and low-carbon energy service systems for customers

automation solutions. With leading product design facilitating energy structure optimization and green

capabilities large-scale intelligent manufacturing sustainable development.systems strict full-process quality control and

vertically integrated industrial chain advantages the

Company has become a leading supplier in the global

Consumer-grade Battery field establishing long-term

stable cooperative relationships with multiple world-

renowned consumer electronics brands.Smart Hardware

Focusing on smart living scenarios the Company has

Power Batteries deployed diverse categories including smart cleaning

smart personal care smart writing and accessories

and AIoT products. Leveraging technical accumulation

The power battery segment integrates R&D

in batteries and precision manufacturing it creates

production and sales of power battery cells modules

convenient and intelligent hardware products for

BMS and PACK with products covering passenger

users deeply integrating IoT and artificial intelligence

vehicles commercial vehicles construction machinery

technologies committed to enhancing global

new energy ships and other scenarios. Through

consumers' quality of life and experience.customized product portfolios and technical support

it provides safe and efficient power battery solutions

for different application scenarios facilitating low-

carbon transformation in the transportation sector.Ecological Innovation of Industry

Energy Storage Batteries

Breaking through the traditional positioning of single

battery production with improving full-industry-chain

With the purpose of meeting customers' diversified layout as the core driver the Company actively builds

energy needs through research on efficient power and deeply integrates upstream and downstream key

storage and conversion technology digital twins links of the lithium battery industrial chain extending

and cloud collaboration the Company provides full- its business layout to diverse fields including industrial

industry-chain integrated energy storage solutions internet automation equipment third-party testing

from project development sales investment and battery recycling upgrading from a battery

construction to operation promoting global energy supplier to a new energy industry solution provider

structure transformation and supporting low-carbon opening up new growth points for high-quality

sustainable development. enterprise development.About Message from About Annual Sustainability Sustainable Double Materiality

13 This Report the Chairman Topic Management Development Impact Assessment Ecology Partnership Accountability Appendixthe Company 14

Highlighted Performance

● Self-developed Battery Passport Digital Platform officially released.● R&D investment of RMB 43.79 100 million with 10306 R&D

● 12 consecutive years of completing carbon verification carbon quota trading team members.and compliance.● Cumulative domestic patent applications: .Ecology ● Completed 507 3056 energy-saving technical transformation projects and saved

Environmentally

Friendly Green 24126 tonnes of standard coal. ● Product recalls due to quality issues: 0.Manufacturing

● The total installed capacity of photovoltaics is 153.60 megawatts with an ● Amount involved in major safety and quality liability incidents related to products

annual photovoltaic power generation of 182 million kilowatt hours. and services: RMB 0.● 100% pass rate for waste gas wastewater and solid waste testing.● Customer satisfaction rate: 93.24%.● Accumulated 7 factories obtained PAS 2060 declaration and become carbon Partnership

neutral factories. ● Total employees: with female employees accounting for

People-Oriented 63696

Shared Prosperity .● A cumulative total of 10 green factories including 5 national-level green factories. 30.45%

● Invested in workplace safety RMB 6816.2 ten thousand.● Occupational disease cases: 0; major safety production accidents causing

● Rated Grade A in information disclosure assessment by Shenzhen Stock casualties: 0.Exchange for nine consecutive years.Accountability ● Occupational health examination coverage for employees: .● 21 integrity training sessions held throughout the year with 2797 100%

Excellence in participants.Governance Pursuing

Perfection ● Total number of suppliers who signed the Supplier Code of Conduct: 3579.● Organized 18 information security training sessions and examinations

cumulatively covering 85000 person-times. ● Response rate of conflict minerals due diligence for suppliers: 98%.● No information security incidents occurred. ● Total charitable donations of RMB 1085.39 ten thousand.About Message from About Annual Sustainability Sustainable Double Materiality

15 This Report the Chairman Topic Management Development Impact Assessment Ecology Partnership Accountability Appendixthe Company 16

Annual Honors and Awards

● First Prize in the Intelligent Connected New Energy Vehicle Championship 2025 National

Disruptive Technology Innovation Competition

● Fortune China Top 50 Technology Companies

● Guangdong Provincial Single Champion Enterprise in Manufacturing

Sustainability Honors ● Advanced Collective in Guangdong Manufacturing Powerhouse Construction

● Power flash-charging battery certified to Electric Vehicles Traction Battery Safety

R&D Innovation Requirements (GB 38031-2025)

Top Three in Global Power Battery CBN Third Corporate Carbon ● Neutrality Performance List-Green Sunwoda 684Ah and 588Ah energy storage cells awarded "Top 10 Products of the Year" at Enterprise Sustainability Index Supply Chain Award 2025 GGII Golden Globe Awards

● 2025 Ministry of Industry and Information Technology “Digital Leading” Enterprise

Sina Finance Corporate ESG Golden ● One of the nation's first batch of “Excellence-Level Smart Factories”2025 Fortune China ESG Impact List Responsibility Award ● Listed in MIIT 5G Factory Directory and rated as Excellence-Level Smart Factory

● Fully home-grown AI quality control system recognized as one of the Top 10 Classic Casesfor the 2025 “Path to Quality Awards"Digital and

● First Prize in the 2025 Guangdong Province “Data Element X” CompetitionESG Excellent Case by China China. org. cn “2024 ESG Brand IntelligentAssociation for Public Companies Influence Enterprise” ● Empowerment In 2025 the Digital-Physical Integration Dual-Domain Intelligent Analysis Platform project

won the “Machine Learning Pioneer Award” from Lenovo Group

● Wu Wenjun Artificial Intelligence Science and Technology Award

Southern Weekly 2025 Model Annual Green Development Awards and ESG Best Practice Awards from ● Vice President Member Unit of China Intellectual Property SocietyResponsibility Enterprise multiple customers ● "2025-2027 National Intellectual Property Powerhouse Construction Demonstration

Enterprise" by China National Intellectual Property Administration

● Pioneer Unit in Enterprise Compliance Management Construction

Southern Weekly 2024 Outstanding Shenzhen ESG Practice Pioneer ● Top 20 Board Governance of Listed Companies in the Greater Bay Area

Responsibility Enterprise Enterprise Typical Case (First Batch) ● Guangdong Provincial Key Trademark Protection List

● Intellectual Property Procuratorial Service Point of Guangming District People's

Responsibility Procuratorate

Management

● ALB 2025 China Top 15 New Technology Company Legal Teams

Rating Recognition5 ● Chairperson of the Shenzhen Municipal People's Congress Representative Contact Point

for New Energy Industry Development

Human Resources Product Quality

Sunwoda

2025

MSCI ESG Rating Wind ESG Rating CDP Rating ● "Beisen 2025 China Talent Management ● First Prize in China Quality Association QC Team

Excellence Award" Achievement Level Evaluation

Stable Stable maintenance of ● "51job 2025 Outstanding Employer of the Year" ● Lenovo Group Perfect Quality Award & Excellence

Step to AA-level maintenance B-level with SEA steping

of AA-level to A-level ● "Zhaopin China's Best Employer National TOP

Quality Award

100 2025" ● vivo Excellent Quality Award

● "Guangdong Province Advanced Collective in ● Outstanding Supply Guarantee Supplier of Key

Employment and Entrepreneurship" Customers

● Global Strategic Partner Award of Key Customers

5 As of March 31 2026.About Message from About Annual Sustainability Sustainable Double Materiality

17 This Report the Chairman the Company Management Development Impact Assessment Ecology Partnership Accountability AppendixTopic 18

Annual Topic

Deeply Understanding Policy Trends

Battery Passport Against the backdrop of accelerating reconstruction of global green trade rules the Battery Passport has become a key policy tool connecting domestic and international markets and shaping new industrial order. With a strategic

forward-looking perspective Sunwoda systematically tracks and deeply interprets international and domestic policy

trends transforming compliance requirements into development opportunities and laying a solid foundation for

The Battery Passport is becoming the core hallmark of the global power battery industry's shift from building an open trustworthy and sustainable Battery Passport system.scale competition to full lifecycle management data transparency and ecological responsibility Sunwoda closely monitors the evolution of the EU battery regulatory system and has comprehensively analyzed

system competition. As a key tool for addressing new international green trade standards such as the Regulation (EU) 2023/1542 on Batteries and Waste Batteries and its supporting policies. The Company deeply

the Regulation (EU) 2023/1542 on batteries and waste batteries the Battery Passport is not only an recognizes that the mandatory Battery Passport requirements effective from February 2027 represent not only

essential element for compliance and market access but also a strategic fulcrum driving the integration a compliance threshold for market access but also a key driving force for promoting digital integration and green

of the "Five Modernizations" of industry digitalization ecological green development intelligentized upgrading of the industrial chain. To this end Sunwoda actively participates in the formulation of the Digital Product

operations resource circularity and business globalization. Passport - Reference Architecture and Technical Requirements (IEEE P3828) standard which aims to systematically

define the management system functional modules interconnected architecture and security requirements of Digital

Product Passport (DPP) providing the industry with a standardized and interoperable reference framework thereby

Sunwoda deeply recognizes that the Battery Passport is a necessary link and core digital carrier for achieving green realizing information collection and management throughout the full product lifecycle from design and production to

transformation in the battery business. We are committed to endowing every battery pack with a unique digital recycling and effectively promoting coordinated development of digitalization and green development. In building

identity integrating verifying and dynamically managing key information throughout the full lifecycle—from raw specific DPP technical capabilities Sunwoda adopts multiple measures: in accordance with the Battery Passport

material traceability product carbon footprint and performance to recycling—forming a true reliable and tamper- Data—Principles and Options guidelines it proactively establishes data credibility and conformity assessment

mechanisms; relying on Data Sharing Requirements for Electric Vehicle Batteries it refines dynamic data collection

proof "green dossier". This is not only the foundation for achieving green and low-carbon products and meeting EU pathways; referencing the German DIN DKE SPEC 99100 standard it improves data attribute definitions laying a

market green thresholds but also a bond of trust for building a transparent mutually trusting and efficient circular technical foundation for achieving international mutual recognition in the future.ecosystem with value chain partners.Facing continuous strengthening of domestic policies Sunwoda proactively integrates into the national power battery

Facing the new pattern of “dimensional upgrade competition” in the industry Sunwoda has formulated a clear dual- recycling and utilization system layout. Guided by the State Council's Action Plan for Improving the New Energy

track Battery Passport plan: in the short term focusing on building comprehensive compliance capabilities and Vehicle Power Battery Recycling and Utilization System the Company focuses on full lifecycle management of power

systematically addressing the mandatory EU implementation requirements in 2027 to ensure smooth global market batteries striving to connect all aspects of recycling and utilization to achieve full-process traceability; on this basis it

access; in the long term committed to developing the Battery Passport into an open industry service platform strictly follows the Industry Norms for Comprehensive Utilization of Waste Power Batteries from New Energy Vehicles

driving industrial chain data collaboration and value co-creation and leading the industry to achieve the leap from improves internal battery information management systems and enhances standardized processing capabilities for

“Scaled manufacturing” to “intelligent and green manufacturing” and from “product supply” to “sustainable solution waste batteries; meanwhile to implement traceability system construction the Company strictly complies with theprovision”. Interim Measures for the Management of Recycling and Comprehensive Utilization of Waste Power Batteries from

New Energy Vehicles and in accordance with the national standard Coding Regulations of Lithium-Ion Batteries (GB/

T 45565-2025) orderly advances the implementation of unique battery identity codes providing technical support for

achieving precise traceability and efficient recycling.Based on policy guidance Sunwoda adheres to “internal and external cultivation standard leadership”. The Company

released the Action Guidelines on the EU Batteries and Waste Batteries Regulation deeply integrating compliance

requirements into business processes; simultaneously as a core participating unit it contributed to formulating the

group standard T/CIAPS 0049-2025 Battery Passport Guidance helping build a Battery Passport system with both

Chinese characteristics and international compatibility providing normative support for coordinated industrial chain

development.C as e Participation in Formulating the Battery Passport Guidance Group Standard

As a core participating unit Sunwoda participated in the

formulation of the group standard T/CIAPS 0049-2025

Battery Passport Guidance which was officially released

in May 2025. This standard provides enterprises with a

traceability data management framework covering the

full battery lifecycle and systematic information disclosure

guidelines helping promote the industrial chain to achieve

genuine credible and verifiable green compliance and

transparent management. Certificate of Participating Unit in Battery

Passport Guidance Group Standard

Sunwoda Battery Passport Platform Officially LaunchedAbout Message from About Annual Sustainability Sustainable Double Materiality

19 This Report the Chairman the Company Management Development Impact Assessment Ecology Partnership Accountability AppendixTopic 20

Fully Satisfying Customer Demands Battery Passport Core Services

Sunwoda adheres to a customer demand-oriented approach transforming the Battery Passport from a compliance

requirement into a core tool for creating customer value through systematic pain point identification and precise Full Lifecycle A new-generation information system based on cloud service model realizingtechnological innovation. Addressing core pain points such as complex export compliance opaque supply chain data Management full lifecycle data collection management and services for batteries from “rawand complicated carbon footprint accounting the Company launched a special project in 2023 forming a cross- material acquisition production use to recycling and reuse” for the industrial chain.departmental professional team covering legal affairs development and supply chain management to deeply analyze

EU regulatory requirements integrate supply chain data processes and build sustainable Battery Passport business Supply Chain Achieving business data analysis through supply chain traceability (recycled

capabilities assisting customers in addressing global market green thresholds. To accurately identify customer Traceability+Product Carbon materials management restricted substances traceability etc.) product carbon Accounting+Enterprise Due accounting and enterprise due diligence assessment with automatic connection

demands Sunwoda gradually launched Battery Passport pilot projects and established the Battery Passport Business Diligence Assessment to third-party certification.User Problem Feedback and Optimization Requirements Form continuously collecting problems and optimization

suggestions during the pilot process.Terminal Data Collection Matching different battery operation data collection technical solutions according

In October 2025 Sunwoda's self-developed Battery Passport Digital Platform and Status Assessment to customer terminal product types and existing data foundations.was officially released. The platform achieved four major technological

innovations: blockchain joint modeling and confidential data sharing

intelligent collection and verification of battery full lifecycle data terminal Model Development and Data Compliance Model development enables automatic data extraction; compliance monitoring

data collection and status assessment and commercial operation support Evaluation ensures large-scale mass production of passports.for DPP service providers. It constructed six core modules-supply chain Systematically covering

management traceability mapping product carbon footprint due diligence

Adopting domestic and overseas dual-cloud architecture to realize secure

passport management and operations management-systematically 15 Battery Passport aggregation of battery data and global compliant circulation. With the overseas covering 15 major data categories and 78 key indicators. The platform Operation cloud serving as the operation center it provides passport storage passport

provides upstream and downstream battery supply chain partners with major data categories hosting passport backup and passport query services.a full lifecycle data collection software and big data platform from raw

materials to recycling realizing transparent management of battery full

lifecycle data. Integrating blockchain Internet of Things and classified Battery Passport Digital Platform Function Introduction

information security protection technologies the platform ensures data

security during transmission and storage through high-strength data

encryption and achieves trusted and secure data sharing among supply Battery Passport Digital PlatformKey indicators

chain partners through Decentralized Identifier (DID) and certified data

attestation mechanisms. Currently the platform has obtained Data Security

Assessment as well as recognition from relevant international organizations 78 Data Collection from Data Integration from

“Cradle” to “Gate” “Gate” to “Grave” Passport Generation Passport Operation

comprehensively ensuring the security of customer data assets.Through the deep integration of technological innovation and service support Sunwoda's Battery Passport Platform

is providing key support and strong assurance for customers to address global green trade barriers and achieve Battery Basic Battery Usage Passport Passport

sustainable development.To help customers fully master and utilize the Battery Passport tool Sunwoda organized Data Acquisition Data Collection Issuance Operation

a series of empowerment activities in 2025 including four general policy and process training sessions and three ● API docking providing ● Support BMS cloud data ● Integrate basic battery ● Battery Passport

practical training sessions for pilot modules focusing on key topics such as carbon footprint accounting and due carbon footprint due docking and synchronize data and usage data to Storage Backup Query diligence hazardous the data transmitted by BMS generate battery passport and Data Security

diligence effectively enhancing customers' application capabilities. substance SAAS services system on a weekly basis. and compliance check. Cross-border

collecting supplier and The monitoring system

battery business data and operates 24 hours a day

cooperating with third- to record key parameters

party certification. during battery use.Passport Enquiry

Full Life Cycle Data Collection

Supply Product Model Compliance

Chain Carbon Corporate

Cross-Border Services

Due Recycled

Development Monitoring

Traceability Footprint Material Terminal

Map Accounting Diligence Data Acquisition

and Status

Online 3rd Party Certification Evaluation Passport SecurityAbout Message from About Annual Sustainability Sustainable Double Materiality

21 This Report the Chairman the Company Topic Management Development Impact Assessment

Ecology Partnership Accountability Appendix 22

Battery Passport Related Progress

At the level of intelligentized operations and industrial digitalization the platform leverages blockchain and Internet

of Things technologies to achieve tamper-proof and secure sharing of supply chain due diligence data. This not only

November Battery Passport Digital Platform special task force established. strengthens the Company's risk management capabilities on ESG issues such as labor rights and business ethics

2023 fulfilling supply chain responsibilities but also drives optimization of manufacturing and R&D processes throughNovember The Global Battery Alliance (GBA) announced the highly anticipated results for the “2024 data intelligence improving resource utilization efficiency and product reliability. Furthermore as open digital

2024 Battery Passport” pilot projects. Two Battery Passport projects jointly developed by infrastructure the platform can output solutions to upstream and downstream industrial chain partners empowering

Sunwoda and domestic automakers distinguished by their outstanding performance in the entire industry to enhance transparency and compliance levels creating new digital service value and driving

carbon footprint accounting supply chain traceability and information disclosure were overall industrial digital transformation.both selected among the GBA's top ten “2024 Battery Passport” pilot projects making

Sunwoda one of only two enterprises with two projects selected simultaneously. Ultimately all these efforts converge in the practice of business globalization. The Battery Passport is Sunwoda's

“green passport” for entering international markets. By meeting the most stringent regulatory requirements in

November At the 7th China International Import Expo (CIIE) Sunwoda joined hands with deep markets such as the EU it conveys the green transparent and responsible image of Made in China to global

2024 strategic partner Siemens to release the Eco-Creation Green Overseas Expansion customers and consumers. Through technical standard output and international cooperation the Company actively

Solution-Sunwoda Battery Passport Platform-Siemens Carbon Footprint Collaboration participates in global sustainable governance building the Battery Passport as a bridge connecting Chinese intelligent

Edition. This marks the first achievement demonstration since the two parties signed manufacturing with global green demands. This not only safeguards the sustainable development of its own business

a memorandum of cooperation in 2023 and officially launched platform cooperation but also drives the green upgrading of the global automotive industry value chain.in 2024 and is a vivid embodiment of Sunwoda and Siemens' firm commitment and

innovative practice on the path of sustainable development. Looking ahead Sunwoda will continue to deepen the innovative application of Battery Passport technology

strengthening the integration of blockchain and artificial intelligence to enhance data insights. The Company will

adopt a more open posture to promote mutual recognition and application of Battery Passport standards in global

May Sunwoda hosted a roundtable forum themed "Battery Passport Leading the Dimensional markets committed to building it into a trustworthy digital foundation supporting global energy transformation and

2025 Upgrade of Core Competitiveness in the Battery Industry" during the 17th China circular economy contributing Chinese wisdom and Chinese solutions to the global sustainable development.

International Battery Fair (CIBF 2025) bringing together upstream and downstream

enterprises in the battery industrial chain standard institutions and technical experts

Battery Passport Project Receives Authoritative Recognition

to jointly explore the standard construction technical implementation and application Case

prospects of the Battery Passport.In July 2025 the "2025 China Automotive Industry Sustainable Development Practice Cases" selection results

October Sunwoda made its appearance at the 15th China International Battery Industry Expo (IBIE initiated by GoldenBee Think Tank under the guidance of the China Association of Automobile Manufacturers

2025 2025) hosting a "Compliance Operations Value Win-Win Green Overseas Expansion (CAAM) were officially announced. Sunwoda was awarded the "Win-Win Cooperation" honor for its Battery

Assurance" Battery Passport Launch Event at its booth officially releasing the Battery Passport project and was selected for the China Association of Automobile Manufacturers' 2024-2025 China

Passport Digital Platform and systematically introducing its self-developed Battery Automotive Industry Sustainability Report . This achievement marks that Sunwoda's outstanding contributions

Passport Platform and core functions. Additionally Sunwoda held an award ceremony to promoting green low-carbon development and industrial chain collaboration have received authoritative

for authoritative partners and customers of the Battery Passport Platform marking the industry recognition.Battery Passport's transition from conceptual vision to practical application. On October 2025 at the 2025 Carbon Peaking and Carbon Neutrality Forum & Shenzhen National Low-

December Participated in the third phase of the GBA Global Battery Alliance Battery Passport pilot. Carbon City Forum the Shenzhen Municipal Development and Reform Commission officially released the list

2025 of “2025 Shenzhen ESG Pioneer Enterprise Typical Cases”. With its “Full-Life Cycle Green Innovation Solutions”

— particularly the innovative practice of the Battery Passport Digital Platform — Sunwoda became one of the

twelve enterprises selected in the first batch of typical cases of Shenzhen ESG Pioneer Enterprises.Outstandingly Fulfilling Social Responsibilities

The Battery Passport Digital Platform is not only Sunwoda's technical tool for addressing global market access

but also a key carrier for the Company to fulfill its sustainable development commitments and create broad

social and environmental value. By building a transparent trustworthy and traceable battery full lifecycle data

management system Sunwoda deeply integrates its commercial practices with environmental protection supply

chain responsibility and industrial collaboration systematically driving the implementation of its strategy of“industrial digitalization ecological green development intelligentized operations resource circularity and businessglobalization” fulfilling multiple responsibilities to customers the industry and society.In terms of ecological green development and resource circularity the Battery Passport Platform significantly

enhances battery environmental transparency through precise management of raw material traceability hazardous

substance information recycled material proportions and product carbon footprints. This enables Sunwoda to

"Win-Win Cooperation" honor at 2025 China Automotive Industry Sustainable Shenzhen 2025 ESG Practice Pioneer Typical

effectively monitor and reduce environmental impacts throughout the product lifecycle guide the supply chain Development Practice Cases Case (First Batch)

toward lower-carbon circular materials promote the construction of a "cradle to cradle" closed-loop circular economy

model and support global carbon neutrality goals through concrete actions.About Message from About Annual Sustainability Sustainable Double Materiality

23 This Report the Chairman the Company Topic Development Impact Assessment Ecology Partnership Accountability AppendixManagement 24

Sustainability Management Sustainability Management Structure

Sunwoda's sustainability management structure is led by the Board of Directors with a Board-level Strategy and Sustainable

Development Committee established to ensure effective implementation and supervision of sustainable development

principles from the strategic level to the execution level. In 2025 we released the Working Rules of the Board Strategy and

Sustainable Development Strategy Sustainable Development Committee further improving the sustainable development management system and establishing a tiered structure of decision-making level management level and operational and execution level.In March 2025 Sunwoda held the “LEAP toward aSustainable Future” sustainable development strategy

launch event at its Guangming campus in Shenzhen. As a Functions of Each Level in Sustainability Management

significant milestone in Sunwoda's sustainable development

journey th is launch marked the e levat ion of the Level Responsible Party Functions

Company's sustainability efforts from “passive response”

to “proactive leadership”. The event systematically ● The Strategy and Sustainable Development Committee comprises

elaborated on the sustainable development plan centered five directors with the Chairman serving as the chair.on the “LEAP Strategy” which the Company will use as Board of Directors and ● Responsible for the Company's long-term development strategic

a strategic blueprint to comprehensively refine various Decision- Board-level Strategy planning major investment decisions and sustainable development

Making Level and Sustainable

action plans and drive the systematic implementation of direction; formulates the Company's sustainable development Development Committee strategy and management system; and supervises and inspects the

sustainable development goals both within and outside the implementation progress of sustainable development strategies and

organization. objectives.●

Sustainable Assists in managing the implementation of company sustainability-Management

Level Development

related resolutions and identification of ESG risks; assists in

Management Committee advancing the implementation of sustainable development Strategic LEAP toward a Sustainable Future strategies objectives and plans.Vision ● The Company appoints a Chief Sustainability Officer and establishes

an ESG Management Department to coordinate and advance

Operational ESG Management normalized sustainability work.Guiding Profoundly Understanding Fully Satisfying Customer Outstandingly Fulfilling and Execution Department Relevant Functional Departments ● The ESG Management Department organizes relevant functional Principles Policy Trends Demands Social Responsibilities Level and Business Segments departments and business segments and forms professional task

forces as needed to ensure smooth execution and implementation

of sustainability work.Strategic

Goals Lifecycle Ecology Accountability Partnership Sustainability Management Structure Diagram

Decision- Board of Directors

Making

Battery Passport Operational Information Satisfaction of Key Level Strategy and Sustainable Development Committee

Green Products Carbon Reduction Disclosure Stakeholders Supervision ReportingStrategic Renewable Energy Business Conducts Sustainable Management Pathway Battery Recycling Level Sustainable Development Management Committee

Environmental Quality and Safety Procurement Guidance Reporting

Compliance Community Impact Operational ESG Management Department

Level

Coordinated Advancement

Establish Professional Project

Functional Departments Teams Business Units

SDGs Empowerment

Execution

Level

Key Value Chain

Competencies Empowerment Digitalization Intelligentization Innovation and R&D Formed as needed around policies regulations and customer demands; led and participated

in by relevant functional departments; virtual teams.Finance Center

Sustainability Center

Logistics Center

Safety Center

Quality Center

Procurement Center

Audit Center

Human Resources

Center

Sustainable

Procurement

Carbon Neutrality

Battery Passport

Product Recycling

Consumer Batteries

Power Batteries

Energy Storage

Batteries

Energy Services

Smart Hardware

Ecological Innovation

of Industry

… …About Message from About Annual Sustainability Sustainable Double Materiality

25 This Report the Chairman the Company Topic Development Impact Assessment Ecology Partnership Accountability AppendixManagement 26

Sunwoda strictly adheres to international authoritative standards (such as ISSB SA8000 RBA Code of Conduct ISO IWA Sustainable Development Goals

48 ISO 14001 ISO 45001) upholds the systematic management principles centered on “orientation toward strategicdevelopment compliance requirements business needs problem gaps and group-based control” deeply integrates its own

operational practices builds a group-level sustainability management system and continuously penetrates into the actual

operations of various business segments to drive the downward implementation of management mechanisms. The Company

compiled the Sustainable Development Management Manual clearly defining sustainable development strategic planning ● Achieve operational carbon peaking by 2029

management system framework cross-departmental coordination mechanisms performance evaluation and assessment

methods and providing detailed provisions on management pathways and practical requirements for each core sustainability Addressing ● Achieve operational carbon neutrality by 2050

topic. Relying on the PDCA (Plan-Do-Check-Act) methodology the Company clarifies responsibilities at each level within the Climate Change

management system conducting full-cycle management and dynamic tracking of all sustainability topics target setting and ● Contribute to 6.84 million tonnes of CO2 reduction in social transportation by 2030 and

specific actions. 42.37 million tonnes of CO2 by 2040

The Company decomposes and implements its sustainability strategy into all functional departments and business segments

of the Group and integrates relevant objectives into the senior management performance appraisal system forming a

top-down strategic governance mechanism. The heads of all functional departments and business segments sign annual

sustainability task statements to define the target values of key performance indicators (KPIs). Based on the actual

conditions of their respective departments and segments they further refine the implementation plans for these objectives. Cleantech Opportunities ● Add 1.38 GWp of total installed photovoltaic capacity by 2040

Meanwhile the Company assesses core ESG risks that affect its stable development including quality incidents workplace

safety accidents intellectual property rights and information security. Any occurrence of such incidents may directly trigger

a crisis of customer trust and downgrades in capital market ratings resulting in irreversible losses to financing and market

value. In such cases the performance of the responsible persons for the current month will be affected accordingly. This

mechanism covers all performance-related employees of the Company effectively safeguarding the management of its

● Reduce annual per capita water consumption by 5% compared to 2024 actual water

sustainable development. consumption in 2025(regulatory target)

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 Energy consumption per unit of output decreases by 4% year-on-year in 2026-2027 and by

initiatives providing robust support for the efficient advancement of corporate sustainable development efforts. 3% year-on-year in 2028-2029

Energy ● Reduce unit output energy consumption by 4% for each business division and subsidiary

Management company in 2025(main target)(excluding Power segment)

and Utilization

● Reduce unit output comprehensive energy consumption by 6% in 2025(main target)(Power

segment)

● Number of energy-saving projects (management+technical renovation) ≥ 260 in 2025

● Annual energy-saving benefits of RMB 90 million in 2025

● Waste gas emission compliance rate of 100% in 2025

Emissions ● Wastewater discharge compliance rate of 100% in 2025

and Waste

Management ● Reduce general waste generated per unit of production capacity by 5% annually in 2025

● Hazardous waste compliant disposal rate of 100% in 2025

Responsible

●

Supply Chain 100% recycling compliance rate for SL batteries LMT batteries industrial batteries and

Management electric vehicle batteries exported to the EUAbout Message from About Annual Sustainability Sustainable Double Materiality

27 This Report the Chairman the Company Topic Development Impact Assessment Ecology Partnership Accountability AppendixManagement 28

Sustainable Culture Building C as e First Online Carbon Inclusive Cultural Activity

Sunwoda deeply integrates the concept of sustainable development into corporate culture building exploring effective To continuously promote low-carbon lifestyles Sunwoda launched the first online carboninclusive cultural

pathways for concept dissemination and behavioral transformation. Through building a diversified and attractive activity activity in July 2025 attracting over 260 employees to actively participate with cumulative participation

system the Company strives to integrate ESG concepts into organizational management and employees' daily lives. While person-times exceeding 12700 covering nine low-carbon scenarios. Through green travel resource

disseminating green and low-carbon values the Company actively guides employees to shift from conceptual recognition conservation low-carbon office and other daily behaviors all participants accumulated over 255.74

to conscious action gradually fostering an internal cultural atmosphere that pays attention to sustainability and practices million carbon points driving the integration of carboninclusive concepts into employees' work and life.sustainability.The 3rd “Step Forward Together Explore the Carbon-Neutral Journey” Low-Carbon

C as e Charity Walking Event

On World Earth Day in April 2025 the Sunwoda Party Committee together with the Labor UnionSustainability Center and Charity Foundation co-hosted the 3rd “Step Forward Together Explore theCarbon-Neutral Journey” low-carbon charity walking event. The event attracted over 300 employees

to participate on-site with company executives presenting “Health Ambassador” certificates to

participants. For the first time the event utilized a carbon inclusive mini-program to record carbon

reduction actions with participating teams accumulating approximately 200000 carbon points leading First Online Carbon Inclusive Cultural Activity

the new trend of low-carbon lifestyle through digital means. The event simultaneously integrated Party

building and public welfare with teams completing the challenge donating corrective glasses to myopic

students in rural Gansu achieving an organic combination of low-carbon actions and social charity.

2nd “Green Innovation for New Living Carbon Circulation for Long-term Success”

C as e ESG Themed Series ActivitiesIn September 2025 Sunwoda held the 2nd “Green Innovation for New Living Carbon Circulation forLong-term Success” ESG themed series activities. Centered on the “LEAP toward a Sustainable Future”

strategy the activities adopted an online and offline integrated format targeting all Group employees

covering four major parks nationwide with cumulative participation exceeding 1500 people sparking

a surge in sustainable culture learning and practice further strengthening all-staff consensus and

conscious action on sustainable development.

2nd “Green Innovation for New Living Carbon Circulation for Long-term Success” ESG Activity

Looking ahead Sunwoda will continue to deepen sustainable culture building continuously enrich practical carriers innovate

activity formats promote the deep integration of sustainable development concepts with corporate culture. In terms of talent

empowerment actively participating in internal and external training to continuously strengthen the professional talent

Group Photo of Sunwoda “Step Forward Together Explore the Carbon-Neutral Journey” Event pool. During the reporting period a project led by Sunwoda was selected for the 2025-2026 Caixin "ESG30 Young Scholars

Program"; multiple colleagues obtained the "Carbon Emission Administrator" professional title from the Ministry of Human

Resources and Social Security with one member selected for the 2025 Carbon Emission Administrator "Shenzhen Craftsman"

Program; several teams completed the UNGC Young Professional SDG Innovation Accelerator Program.About Message from About Annual Sustainability Sustainable Double Materiality

29 This Report the Chairman the Company Topic Development Impact Assessment Ecology Partnership Accountability AppendixManagement 30

Communication with Stakeholders

This year we have formulated the Stakeholder Management Regulation which clearly defines the end-to-end management Guided by this management framework Sunwoda has established a structured communication system with its key

protocols for the identification analysis communication response and supervision/improvement of stakeholders. The stakeholder groups adhering to the core operational principles of "clarifying communication elements ensuring resource

objective is to establish systematic listening and responsiveness to the needs of all parties through regular two-way transparency and proactively assuming responsibilities". Through diverse communication channels Sunwoda engages in

engagement thereby achieving effective interaction expectation management and value co-creation with both internal and active interaction and adopts substantive efficient response methods to effectively manage and address the expectations

external stakeholders. and feedback of its stakeholders.Stakeholder Government and Shareholders and

Category Regulators Investors Customers Employees Suppliers Partners

Public and

Community

● Robust governance ● Robust governance ● High-quality products and ● Talent management and ● R&D and innovation ● R&D and innovation ● R&D and innovation

● Anti-corruption and ● Anti-corruption and services development ● Responsible supply ● High-quality products ● High-quality products

business ethics business ethics ● Responsible supply chain ● Occupational health and chain management and services and services

● Information security and ● R&D and innovation management safety ● Information security and ● Industry cooperation ● Rural revitalization

Key Issues of privacy protection ● Industry cooperation ● Addressing climate change ● Product quality and safety privacy protection and development and social contribution

Concern ● Addressing climate change ● Addressing climate change ● Resource management and ● Anti-corruption and business ● Occupational health and ● Resource ● Addressing climate

● Environmental compliance circular economy ethics safety management and change

management ● Cleantech opportunities ● Information security and ● Industry cooperation circular economy

privacy protection ● Cleantech

opportunities

● Institutional investigation ● General Meeting of ● Customer service and ● Internal communication ● Supplier evaluation and ● Industry associations ● Charitable donations

● Policy implementation Shareholders feedback channels platform audit ● Forums and events ● Exchanges and visits

● Relevant websites ● Regular/temporary ● Customer satisfaction ● Trade unions and workers' ● Supplier exchanges and ● Exchanges and visits ● Community and public

Communication ● Meetings announcements surveys congresses training welfare activities

Channels ● Official correspondence ● Investor relations websites ● Symposiums and visits ● Employee assessment and ● Supplier conferences ● Volunteer services

and information disclosure ● Performance briefings ● Social media interaction promotion

(email phone and research) ● Employee training

● Interactive platform

● Roadshows

The Company adheres to the Regularly publishes Continuously improves Strengthens the protection of Improves supplier Actively carries out Conducts public welfare

business code of conduct sustainable development customer satisfaction; employees' basic rights and access and supervision partnerships with projects in collaboration

continuously optimizes reports financial reports actively responds to interests; establishes internal mechanisms; establishes various social sectors; with various parties

internal control and and other information; holds complaints and suggestions; employee communication mutually beneficial value jointly promotes through charitable

compliance management shareholder meetings in ensures product quality; channels and systems; builds chain partnerships with industry innovation foundations supporting

pays taxes in full provides a timely manner; reports emphasizes information systematic career advancement high-standard supplier and sustainable rural revitalization

Main Response employment opportunities on work progress; and security and privacy paths and training activities management norms and development through projects in education

Methods improves environmental protects investors' rights and protection; and provides for employees; carries out rich efficient procurement participation in healthcare and other

management discloses interests. customers with high-quality team-building and employee systems; actively carries standard policy fields; actively engages

information in a timely products and services. care activities; conducts on- out supplier audits; and formulation strategic in volunteer services;

manner cooperates with site workplace audits; ensures works together to create a cooperation projects and assists community

inspections and supervision occupational health and safety sustainable supply chain. and dissemination of development.and advocates for green management; and safeguards expert research results.and environmentally friendly employees' physical and mental

concepts. health.About Message from About Annual Sustainability Sustainable Double Materiality

31 This Report the Chairman the Company Topic Management Assessment Ecology Partnership Accountability AppendixDevelopment Impact 32

Sustainable Development Impact SDGs Goals Action

● Sunwoda deploys three major innovation domains focusing on cell material innovation and system

structure optimization promoting the landing of intelligent equipment such as mobile energy storage

vehicles supporting pure battery-powered ship applications and achieving bidirectional empowerment

Sunwoda's Sustainable Development Strategy of technology and scenarios.● Fully implements equal pay for equal work for men and women eliminats gender discrimination

SDGs Goals Action promots equal opportunities for female employees in recruitment promotion and trains supports

female employees in balancing work and life continuously improving women's participation and sense

of gain in the organization helping 21 people with disabilities achieve stable employment through the

● Through the Charity Foundation systematically carried out education medical industrial and community "care + employment" model promoting the implementation of "employment-based care" practices and

assistance projects in multiple locations including Guangdong Gansu and Sichuan with annual rural effectively reducing inequality in opportunities and treatment.revitalization donations exceeding RMB 1.71 million.● Through the "Hundreds Thousands Tens of Thousands Project" public welfare initiative innovating the

"industrial revitalization + community integration + cultural preservation" model organizing extensive ● Sunwoda focuses on rural education and industrial revitalization promotes “PV-storage-charging-testing”

employee participation in public welfare practices and donations extending corporate development green applications. Through the “Community-Friendly Sunwoda Action” covered 13 hospitals 12 schools

achievements to communities and contributing to common prosperity. over 10 communities and 9574 person-times caring for sanitation workers medical staff and special

● Building a comprehensive occupational health and safety management system actively promoting groups promoting community sustainable development and social integration.digital transformation of safety production. Promote emergency training and practical drills to

comprehensively enhance employees' emergency response capabilities with annual safety inspection

hidden danger rectification rate reaching 97.54%. ● Established Sunwoda Recycled Materials Company focusing on lithium battery recycling and material

● Continuously carrying out medical assistance projects such as the “Sunshine Guardian Plan” and regeneration providing partners with full lifecycle battery management services.establishing “Love Mom's Room” in Shenzhen parks providing comprehensive health and well-being ● Released the Battery Passport Platform driving the digitalization green circularity and globalization

support for employees and communities. development of the battery industry.● Comprehensively integrated environmental compliance risks including energy water resources and

● Committed to talent cultivation and education empowerment building systematic training programs emissions into the Company's risk management system promoting coordinated development of

such as the "Elite Plan" "Management Trainee Program" and "Morning Star Program" and launching the economic benefits and environmental protection."Dream Realization Plan" to assist employees in academic advancement.● Completed China's first "Sunwoda Energy and Climate Science Laboratory" for primary and secondary

students responding to the "dual carbon" strategy through innovative education models with ● Released “carbon peaking and carbon neutrality” goals contributing to societal carbon reduction actions.cumulative reception exceeding 1600 person-times transforming corporate technical advantages into ● Obtained ISO 14064 system certification statement conducting annual greenhouse gas inventory and

quality education resources. carbon verification.● Creating a diverse and inclusive workplace environment institutionally guaranteeing equal pay for equal ● For 12 consecutive years high-quality completion of carbon verification and carbon quota trading in the

work for men and women and revising welfare policies to improve flexible support systems covering the Shenzhen carbon market achieving 100% compliance.full maternity cycle. ● Carries out low-carbon culture building promoting deep integration of green development concepts into

● Through five consecutive years of operating “Love Mom's Room” planning and constructing “Workers' work scenarios.Home” and actively participating in disability assistance public welfare and other concrete measures

effectively safeguarding the rights and interests of female employees people with disabilities and other

groups building a full-cycle employee care system. ● Established a comprehensive site selection assessment system; all office premises business premises

and industrial plants are located away from natural protected areas. Also Sunwoda did not establish in

● Improves water use efficiency through measures such as investing in water-saving devices and sensitive areas outside protected areas with extremely rich biodiversity.achieving full coverage of water-saving metering. ● No significant impacts on biodiversity were identified arising from the Company's production and

● Carries out process transformation and optimization of wastewater treatment facilities adopts operation activities products and services.advanced treatment technologies and is committed to achieving the goal of zero industrial wastewater

discharge earnestly fulfilling water environmental protection responsibilities.● Builds a clean and compliant institutional system throughout the entire business process and all

● Aims to achieve 100% renewable energy usage by 2050 expanding photovoltaic power generation management links promoting the Company and supply chain to fully follow high-standard business

layout. conduct codes in business activities.● Deploys solid-state battery and silicon-carbon anode material technologies promotes the construction of

● Establishes and improves clean management mechanisms promoting normalization and systematization

“PV-storage-charging-testing” integrated demonstration scenarios operates 72 charging stations in 2025 of clean culture building and management practices.covering Guangdong Zhejiang Shandong Jiangsu Yunnan and other regions integrating photovoltaics

● Firmly opposes child labor forced labor human trafficking and any form of slavery.energy storage and intelligent charging to improve clean energy utilization efficiency and support green

● Comprehensively promotes the implementation of raw material hazardous substances conflict minerals

transformation of transportation and energy systems. and full-chain human rights and environmental management responsibilities effectively safeguarding

● Each business segment actively launches green products including the global debut of 684Ah&588Ah supply chain sustainability.energy storage cells and “Sunwoda Yunxiao 2.0” aviation power batteries.● Strictly complying with local labor standards establishing a performance evaluation and career

development system covering full-time employees providing clear promotion channels continuously ● Continuously participates in standard formulation topic research and various forums exhibitions and

advancing talent programs such as the "Elite Plan" "Management Trainee Program" and "Morning technical exchange activities organized by industry associations.Star Program" carrying out tiered and categorized training through the "Sunwoda Learning Platform" ● Joined multiple alliances including the United Nations Global Compact (UNGC) and Global Battery

platform and effectively safeguarding employees' sustainable development in a fair safe and dignified Alliance (GBA) continuously practicing green commitments through innovation and responsibility.environment.About Message from About Annual Sustainability Sustainable Double Materiality

33 This Report the Chairman the Company Topic Management Assessment Ecology Partnership Accountability AppendixDevelopment Impact 34

Initiative Participation

Sunwoda proactively integrates into the global sustainable development process actively participates in multiple

international initiatives and has successively joined the United Nations Global Compact (UNGC) Global Battery Alliance GBA (Global Battery Alliance) 2025

(GBA) Global Solar Sustainability Alliance (GSSA) ISSB International Sustainability Disclosure Standards Early Adopter Partner Conference

Program National Blue Carbon Trading Alliance and Supply Chain Sustainability Initiative (SCSI) contributing the "Sunwoda"

strength to sustainable development. The Global Battery Alliance (GBA) 2025 Annual

Conference was held in Brussels Belgium.Sunwoda as a core member and representative

Chinese lithium battery enterprise was invited to

attend sharing Chinese practices and innovative

achievements.United Nations Global Global Battery ISSB International Sustainability Supply Chain ESG

Compact Alliance Disclosure Standards Early Adopter Stewardship Initiative

Partner Program

2025 United Nations Global Compact

(UNGC) Annual Meeting

Global Advocacy At the 2025 United Nations Global Compact

(UNGC) Annual Meeting and 25th Anniversary

Celebration Sunwoda officially received its

UNGC membership certificate and joined the Belt

and Road Initiative Action Platform Sustainable

Transport Expert Working Group becoming one

2025 Sustainable Global Leaders of the first batch of member units.

Conference

Sunwoda was invited to participate in the 2025

Sustainable Global Leaders Conference engaging in

professional dialogue on sustainable development

and jointly exploring new pathways for sustainable

development.All Energy Australia 2025

Sunwoda made a brilliant appearance at All

Energy Australia 2025 focusing on showcasing

World Economic Forum 16th Annual energy storage full-industry-chain solutions

Meeting of the New Champions covering cel ls systems to recycl ing and

(“Summer Davos Forum”) releasing the “Liquid-Cooled Energy Storage 3.0”

Sunwoda as one of the specially invited technical concept for the first time.enterprises shared with the world the carbon

reduction practices of Chinese new energy

enterprises.About Message from About Annual Sustainability Sustainable Double Materiality

35 This Report the Chairman the Company Topic Management Development Impact Ecology Partnership Accountability AppendixAssessment 36

Double Materiality Assessment Double Materiality AssessmentIn 2025 Sunwoda systematically established the ESG management baseline around four major assessment processes: “topicidentification and confirmation collection and investigation analysis and review and response and disclosure. ”

To fully address challenges that may arise from changes in internal and external factors Sunwoda conducts double materialty Sunwoda Double Materiality Topic Assessment Process

special assessments in accordance with the Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock

Exchange--Sustainability Report (For Trial Implementation) and GRI Standards actively identifying sustainable development

issues that have financial materiality and impact materiality to the Company regularly identifying key areas requiring ESG ● Background Inventory: Conduct a comprehensive investigation and

attention and ensuring comprehensive management. inventory of relevant internal and external business activities of the

company identify internal business relationships value chain links the

Topic external objective environment and key affected stakeholders and integrate

Identification and sort out the requirements of stakeholders.Assessment Process and Results and Confirmation ● Developing the Topic Inventory: Update the ESG topic inventory and

disaggregate into secondary topics. On this basis match all secondary topics

Sunwoda focuses on both the potential impact of various issues on the Company’s financial position and the influence with six major value chain segments identify approximately 60 risks and

of its management and performance on the external society and relevant stakeholders. By comprehensively evaluating opportunities and associate them with financial and non-financial indicators.the Company identifies assesses and prioritizes material issues. During the process of issue identification and materiality

assessment the Company actively engages with internal and external stakeholders and takes their opinions into full account ● Confirming the topic list: based on the characteristics of its industry and

before finalizing the materiality matrix. The annual assessment results are reviewed and approved by the Board of Directors. business operations the Company determines whether the above topics

Sunwoda conducts a double materiality assessment on an annual basis and fully integrates the assessment results into its have financial materiality or impact materiality establishing closely related

enterprise risk management. Each issue identified as high in double materiality through the assessment is regarded as a to Sunwoda.key strategic risk and opportunity. These issues are not only aligned with and integrated into the Company’s core risk areas

but their management mechanisms are also treated equally and integrated with the Company’s traditional financial risk

management (see the “Risk Management” or “Opportunity Response” sections in the chapter on Double Materiality Issues for

details). ● Financial materiality investigation: for the screened and confirmed

key topics conducting in-depth research in business scenarios and

quantitative assessment of expected impacts. The Company effectively

associates relevant risks and opportunities with financial indicators to Collection and

determine the final financial materiality level of each topic.Topics with Double Materiality Investigation

● Impact materiality investigation: distributing the Sunwoda 2025

ESG Impact Materiality Topic Survey questionnaire covering core

stakeholders such as customers investors and suppliers assessing

Sunwoda's impacts under ESG topics from three dimensions: impact

scale scope and irreversibility of negative impacts.Impact Materiality Identify whether the topic is

expected to have significant

impacts on the Company's Based on questionnaire survey results and special research discussions

business model business

Identify whether the integrating analyzing and ranking financial materiality and impact

Company's performance Double operations development strategy financial position Analysis and

materiality identifying double materiality topics and forming a double

on the relevant topic Materiality materiality topic matrix.Topics operating results cash flow Reviewhas actual or potential f inancing methods and

significant impacts on costs in the short medium

the economy society and long term.and environment.The Company conducts targeted information disclosure guided by

Financial Materiality analysis results and regularly reviews and optimizes double materiality

topic-related management work.Response and

DisclosureAbout Message from About Annual Sustainability Sustainable Double Materiality

37 This Report the Chairman the Company Topic Management Development Impact Ecology Partnership Accountability AppendixAssessment 38

Double Materiality Issue Risk and Opportunity List6

2025 Key Performance

Environment

During the reporting period the Company conducted the identification of risks and opportunities related

to double materiality topics in accordance with its double materiality topic assessment process. ESG Topics Risk or Opportunity Description Value Chain Time Segments Horizon

Over and Physical Risk: Extreme high temperatures may increase energy

consumption and operating expenditures. In the event of heavy rainfall Upstream Short-term

60 and flooding impacting production bases may trigger equipment risks and 18 key topics 8 double materiality topics were verified repair and production interruption. Hurricanes and floods if damaging Own Medium-Operations termtransportation facilities may affect raw material supply and finished

opportunities were were determined and confirmed through assessment product transportation. Associated financial indicators include supply

Downstream Long-term

chain interruption and cargo damage costs.identified in total

Policy and Regulatory Risk: The EU Batteries Regulation sets higher

requirements for carbon footprint recycled materials and battery

passports which may pose challenges to market access for enterprises Upstream Short-term

that fail to meet standards. Increasingly stringent climate information

Key Topics for Sunwoda in 2025 disclosure regulations may bring cost investments in data management Own Medium-Operations term

1. Addressing Climate and report preparation. Continuous tightening of energy consumption

Change and carbon emission standards may drive corresponding increases in Downstream Long-term

compliance costs for production processes. Associated financial indicators

include environmental tax expenditures.Environment Society Governance Market Risk: Climate change may intensify the occurrence of extreme Upstream Short-term

weather in key mineral resource locations or affect the stable supply

of raw materials thereby bringing fluctuations in procurement costs. Own M edium-Operations term

Associated financial indicators include emergency procurement/

alternative supply premiums. Downstream Long-term

● Addressing Climate Change ● R&D and Innovation ● Intellectual Property Market Opportunity: The growing demand for green and low-carbon Upstream Short-term

solutions in the context of climate change provides new development Own M edium-

● Resource Management and ● High-Quality Products and Protection space for Sunwoda's core business. Associated financial indicators include Operations term

Circular Economy Services ● Information Security and green product sales revenue. Downstream Long-term

● Cleantech Opportunities ● Responsible Supply Chain Privacy Protection Technical Risk: Battery production has extremely high requirements for

● Environmental Compliance Management ● Stable Governance water purity. If water treatment technology stability or recycling efficiency

Upstream Short-term

is insufficient it may impact cell yield and consistency. Insufficient O wn M edium-

Management ● Industry Cooperation ● Anti-Corruption and intelligentization of production lines may lead to high raw material loss Operations term

● Energy Management and ● Occupational Health and Business Ethics rates thereby pushing up production costs. Associated financial indicators Downstream Long-term

include quality loss costs.Utilization Safety

Compliance Risk: Excessive water consumption or non-compliant● Emissions and Waste ● Talent Management and discharge may trigger environmental penalties. Products labeled as “high Upstream Short-termManagement Development Resource carbon emission” or “non-environmentally friendly” may affect the ability Own Medium-

Management to obtain orders from customers with strict environmental requirements. Operations term

● Biodiversity Conservation ● Rural Revitalization and Associated financial indicators include environmental penalty and crisis Downstream Long-term

Social Contribution response costs.

2. Resource Operating Cost Opportunity: By constructing near-zero-carbon parks

Management effectively reducing reliance on external electricity purchase and water

Upstream Short-term

and Circular withdrawal optimizing operating cost. Incorporating water resource O wn M edium-

Economy recycling rate and unit product energy consumption into the management

Operations term

system can sustainably consolidate cost control capabilities. Associated Downstream Long-term

financial indicators include external resource cost savings.Market Risk: As competition in the recycling market intensifies Upstream Short-term

maintaining competitive advantages is crucial for stabilizing market share.Normal fluctuations in valuable metal prices may bring continuous tests Own Medium-Operations term

to the economics of recycling business. Associated financial indicators

include inventory impairment losses caused by metal price fluctuations. Downstream Long-term

Circular

Economy Market Opportunity: Building a full-industry-chain closed loop helps

enhance supply chain resilience. Achieving efficient recovery of valuable Upstream Short-term

metals through advanced recycling technology not only complies with Own M edium-

EU requirements for recycled materials but can also further strengthen Operations term

the Company's environmental responsibility image. Associated financial Downstream Long-term

indicators include recycled material premium income.

6 Due to space limitations non-priority topics are not presented here.About Message from About Annual Sustainability Sustainable Double Materiality

39 This Report the Chairman the Company Topic Management Development Impact Ecology Partnership Accountability AppendixAssessment 40

Environment Society

ESG Topics Risk or Opportunity Description Value Chain Time Segments Horizon ESG Topics Risk or Opportunity Description

Value Chain Time

Segments Horizon

Technology Iteration Risk: Energy storage and battery technology Upstream Short-term Technical Risk: The degree of integration of full lifecycle management

evolve rapidly. The alignment of R&D direction with market demand and Own Medium- concepts during the R&D stage may affect subsequent environmental

Upstream Short-term

the industrialization process may have significant impact on the effective Operations term performance and safety performance of products. Neglecting material O wn M edium-

conversion of early-stage investments. Associated financial indicators expansion mechanisms or thermal runaway warning mechanisms may Operations term

include asset impairment losses due to incorrect technology routes. Downstream Long-term lead to shortened battery cycle life or safety incidents. Associated Downstream Long-term

Product Full financial indicators include end-of-life governance/recall costs.Policy Compliance Risk: Environmental regulations and localized Lifecycle Upstream Short-term

production requirements in overseas markets bring uncertainties and Management

adjustments to domestic industrial policies may also affect short-term Own Medium- Policy and Regulatory Risk: The EU has imposed stringent full lifecycle Upstream Short-termOperations term

3. Cleantech Opportunities demand. Associated financial indicators include revenue reduction caused

requirements on battery carbon footprint recycled material content and

by policy phase-out. Downstream Long-term Battery Passport. Failure to meet these standards may result in loss of

Own Medium-

Operations term

European market access qualifications. Associated financial indicators

include opportunity costs due to market access delays/loss. Downstream Long-term

Market Opportunity: Leveraging self-developed high-performance

products to penetrate high-growth markets such as grid-side and

commercial&industrial energy storage. Through zero-carbon park Upstream Short-term Raw Material Quality and Safety Risk (Fire): Fluctuations or non- Upstream Short-term

integrated solutions carbon reduction experience can be transformed O wn M edium- compliance with specifications in key raw materials may cause internal O wn Medium-

into exportable products and services. Proactive carbon footprint Operations term short circuits and excessive self-discharge in batteries triggering thermal Operations term

management helps obtain better green financing conditions. Associated Downstream Long-term runaway safety crises. Associated financial indicators include scrap losses

financial indicators include incremental revenue from energy storage related to raw material quality. Downstream Long-term

business.Packaging Material Quality and Safety Risk: During battery

Compliance Risk: If the Company's own production and operation transportation if packaging fails to provide effective protection battery Upstream Short-term

activities fail to continuously comply with increasingly stringent Upstream Short-term damage electrolyte leakage or even combustion may occur due to Own Medium-

environmental regulations it may face risks such as administrative O wn Medium- compression puncture or short circuits leading to major transportation Operations term

penalties and production suspension for rectification. Associated financial Operations term safety accidents. Associated financial indicators include return and Downstream Long-term

indicators include environmental administrative fines and emergency Downstream Long-term repackaging costs due to packaging quality issues.expenditures. Product

4. Environmental Compliance Quality and

Management Safety Product Warehouse Quality Risk: Batteries have strict requirements for Optimized Operation Opportunity: Integrating environmental Upstream Short-term

compliance requirements into production line design and technology Upstream Short-term

temperature humidity ventilation and stacking pressure in warehousing

environments. Loss of control over warehousing conditions may cause Own Medium-

upgrades reducing energy and raw material consumption from the O wn Medium-

Operations term irreversible performance degradation or latent spontaneous combustion

Operations term

source can lower operating costs and transform environmental protection

investments into economic benefits. Associated financial indicators 6. High-

hazards. Associated financial indicators include warehousing quality Downstream Long-term

Downstream Long-term losses and impairment provisions.include production capital expenditures. Quality

Products and

Services

Internal Self-Inspection Risk: If inspection sampling frequency

standards and methods fail to comprehensively cover critical process Upstream Short-term

Society parameters and product characteristics systematic quality deviations Own M edium-may not be detected and corrected in time resulting in batch outflow of Operations term

non-conforming products. Associated financial indicators include internal Downstream Long-term

scrap losses of non-conforming products.ESG Topics Risk or Opportunity Description Value Chain Time Segments Horizon

Insufficient Technical Feasibility Risk: If innovative design concepts Upstream Short-term Response Lag Risk: If customer needs fail to receive timely responses Upstream Short-term

do not match existing process capabilities or manufacturing costs exceed through efficient channels customer satisfaction may decline leading to O wn M edium-

economic thresholds it may trigger surges in innovation sunk costs and O wn Medium-Operations term customer churn. Associated financial indicators include out-of-warranty Operations term

loss of market opportunities. Associated financial indicators include sunk compensation caused by delayed after-sales response.Downstream Long-term Downstream Long-termR&D expenditures. Customer

Market Demand Mismatch Risk: New products lacking market insights Upstream Short-term

Service

that fail to consider environmental performance may trigger product O wn Medium- Customer Loyalty Opportunity: Establishing a rapid response and

Upstream Short-term

5. R&D and R&D market resistance or lead to revenue losses for the Company. Associated Operations term closed-loop customer service system enhances long-term cooperation Own Medium-willingness and repurchase rates. Associated financial indicators include Operations termInnovation Innovation financial indicators include revenue losses caused by market resistance. Downstream Long-term customer service cost per unit. Downstream Long-term

Market Opportunity: Sustained high-intensity R&D investment facilitates

forward-looking deployment of new technologies and deepens existing Upstream Short-term

advantages driving the transformation of technological achievements 7. Supply Chain ESG Compliance Risk: If suppliers fail to meet ESG Upstream Short-terminto market value. The strategy of “compliance first joint standard O wn M edium- Responsible Supply Chain regulatory requirements the entire supply chain may face legal penalties Operations termbuilding” provides strong assurance for market access of new products. Supply Chain Management order losses or even market exclusion. Associated financial indicators

Own Medium-

Operations term

Associated financial indicators include incremental revenue generated by Downstream Long-term Management include emergency switching/replacement costs due to supplier ESG Downstream Long-term

forward-looking technology deployment. issues.About Message from About Annual Sustainability Sustainable Double Materiality

41 This Report the Chairman the Company Topic Management Development Impact Ecology Partnership Accountability AppendixAssessment 42

Society Impact Materiality Assessment

ESG Topics Risk or Opportunity Description Value Chain Time Impact Materiality Assessment ProcessSegments Horizon

Supply Chain Disruption Risk: Geopolitical conflicts natural disasters Upstream Short-term

or emergencies may disrupt critical logistics routes causing delays in raw Conducted Assessment to

material delivery inventory backlog or production stoppage. Associated O wn Medium-Operations term Form Final Results

financial indicators include emergency procurement and logistics premium ●

Downstream Long-term Distributed the Sunwoda 2025 ESG Impact costs.Materiality Topic Survey questionnaire

● Based on stakeholder survey results

Information and Data Management Risk: Incomplete supply chain and collected feedback from internal Upstream Short-term conducted weighted calculations

data collection or lack of unified standards may affect the transparency and external core stakeholders including from three dimensions—impact scale

of corporate information disclosure and investor trust. Associated Own Medium-Operations term government and regulators shareholders

financial indicators include potential losses from ESG rating downgrades scope and negative impact—to

due to data deficiencies. Downstream Long-term and investors customers suppliers assess Sunwoda’s impacts under ESG

partners employees and executives. topics forming final impact materiality

Supplier Concentration Risk: If certain core suppliers have concentrated Upstream Short-term results.capacity and lack alternatives supply chain disruptions may occur O wn Medium- Collected Questionnaires From

affecting large-scale production delivery. Associated financial indicators Operations term Internal and External Stakeholders

include delivery default losses caused by supplier interruptions. Downstream Long-term

Supply Chain Optimization Opportunity: Promoting suppliers to Upstream Short-term

improve social responsibility performance contributes to synergistic Own M edium- 2025 Key Performance

efficiency and long-term stability for supply chain. Associated financial Operations term

indicators include reduced provisions for supply chain risk reserves. Downstream Long-term

Compliance Risk: Rising customer environmental awareness drives the Company collected with identifying

higher standards for raw material selection potentially increasing product Upstream Short-term

cost inputs; meanwhile enterprises may also face risks of market share O wn M edium-

loss due to non-compliance or production pollution. Associated financial Operations term 123 questionnaires 118 valid responses 14 topics with impact materiality

Sustainable indicators include procurement premiums for environmentally compliant Downstream Long-term

Raw raw materials.Materials

Market Access Opportunity: Using sustainable raw materials to satisfy Upstream Short-term

overseas market regulatory requirements and avoid market access O wn M edium-

barriers. Associated financial indicators include revenue contribution from Operations term

emerging regulatory markets. Downstream Long-term Financial Materiality Assessment

Financial Materiality Assessment Process

Governance

Value Chain Time Interviews and Preliminary ESG Topics Risk or Opportunity Description Segments Horizon Determination

Financial Indicator

Legal Risk: If core technologies are not promptly protected by patent ● Articulation Conducted interviews

applications they may be infringed upon by competitors. If unintentional Upstream Short-term with core departments

infringement of others' intellectual property occurs during R&D patent Own M edium- to deeply understand ● Department heads

disputes may arise facing compensation or technology suspension risks. Operations term ● Linked identified specific financial impacts participated in

Associated financial indicators include compensation and suspension Downstream Long-term risks and ● The Company’s finance

costs due to lack of patent protection. of risks and opportunities

workshops to jointly Executive

opportunities department key on the Company. Jointly confirm financial Questionnaire

to non-financial business departments materiality results. Confirmation to Form

Intellectual Property and Fairness Risk: In joint R&D projects unclear Upstream Short-term

discussed with relevant

8. Intellectual Property indicators and risk management Final Results

Protection definition of intellectual property ownership usage rights and benefit O wn M edium-

business departments

department jointly

distribution may trigger disputes. Associated financial indicators include Operations term establishing combining industry ●

costs for handling intellectual property disputes. articulation discussed financial

Distributed

Downstream Long-term experience to form Workshops

relationships to thresholds applicable questionnaires preliminary financial

form matching to the Company’s to executives for

Intellectual Property Value Conversion Opportunity: Establishing materiality topic Upstream Short-term final verification

a full lifecycle intellectual property management system forms patent financial actual conditions. determinations.protection barriers for core technologies while achieving IP monetization O wn M edium- indicators.and result

Operations term

through patent licensing and technology transfer. Associated financial confirmation.indicators include revenue brought by patent licensing and conversion. Downstream Long-term Financial Threshold

SettingAbout Message from About Annual Sustainability Sustainable Double Materiality

43 This Report the Chairman the Company Topic Management Development Impact Ecology Partnership Accountability AppendixAssessment 44

2025 Key Performance Double Materiality Assessment Results

Based on questionnaire survey results and special research discussions we integrate analyze and rank financial materiality

we sorted out over and over and impact materiality importance forming a double materiality matrix. A total of 8 double materiality topics were identified.

80 60 We systematically enhance the Company's risk response and management capabilities based on assessment results and in the 2025 ESG Report we disclose and present topics with high financial materiality across four management dimensions: financial indicators non-financial indicators governance strategy risk management and metrics and targets.

Going forward we will continue to sort out the impact of each topic across the full value chain of upstream own operations

conducted and identified and downstream gradually improving management and promoting deeper integration of ESG work with business decision-

15 8 making. Meanwhile we will more proactively respond to stakeholder concerns and continuously enhance long-term value interview surveys with functional topics with financial materiality creation capabilities.

departments and key business segments Double Materiality Topics

Addressing Climate Cleantech Environmental Resource Management

C as e Financial Materiality Assessment Workshop Change Opportunities Compliance Management and Circular Economy

At the end of 2025 Sunwoda conducted a financial materiality assessment workshop. Through presentations R&D and Innovation High-Quality Products and Services Responsible Supply Chain Management

of financial materiality topic assessment results and ESG rating management items of various departments

the Company conducted in-depth communications with department heads on the financial materiality of ESG

materiality topics to the Company providing clear guidance for future work directions.Intellectual Property Protection

Sunwoda 2025 Double Materiality Topic Matrix7

High

● R&D and Innovation ● Resource Management

● Emissions and Waste ● Occupational Health ● High-Quality Products and Circular Economy

Management and Safety and Services ● Environmental

● Energy Management ● Anti-Corruption and ● Addressing Climate Compliance Management

and Utilization Business Ethics Change ● Responsible Supply Chain

● Information Security ● Stable Governance ● Cleantech Opportunities Management

and Privacy Protection ● Intellectual Property

Sunwoda Financial Materiality Assessment Workshop Protection

● Talent Management ● Rural Revitalization

and Development and Social Contribution

● Industry Cooperation ● Biodiversity

Conservation

Low Financial Materiality High

7 The three topics identified as having the highest financial materiality for Sunwoda in 2025 are Addressing Climate Change Resource

Management and Circular Economy and Environmental Compliance Management.Impact MaterialityEnvironment

Ecology

Environmentally Friendly

Green Manufacturing 01

Sunwoda deeply grasps green development trends takes addressing climate change as the strategic

core and regards clean technology innovation as the development engine comprehensively

responding to policy and customer demands for a low-carbon future. The Company systematically

builds a circular economy system integrating sustainable concepts throughout operations through

strict environmental compliance management. Meanwhile the Company incorporates biodiversity

protection into the full project cycle committed to achieving harmonious coexistence between

commercial value and ecological protection and fully fulfilling corporate responsibilities.Key ESG Topics in This Chapter

Addressing Climate Change Resource Management and Circular Economy

Cleantech Opportunities Emissions and Waste Management

Environmental Compliance Management Biodiversity Conservation

Energy Management and Utilization

Response to Sustainable Development Strategic Goals

Lifecycle

Ecology

Response to SDGs GoalsAbout Message from About Annual Sustainability Sustainable Double Materiality

47 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 48

Addressing Climate Change Methods for Identifying Climate Risks and Opportunities at Sunwoda

Internal

External Collaborative Climate Risk

Governance Climate Drivers Discussion and and Opportunity

Diagnosis Identification

Sunwoda’s Board of Directors serves as the highest decision-making body bearing ultimate responsibility for major climate-

related issues. The Strategy and Sustainable Development Committee under the Board is responsible for researching

reviewing and making recommendations on the Company's climate strategy significant climate risks and opportunities

and key management policies. The Sustainable Development Management Committee is responsible for decomposing

climate change objectives and management requirements determined by the Board and specialized committees into specific

business areas and supervising implementation progress. The ESG Management Department collaborates with functional

departments across the Group to form professional project teams addressing climate change implementing and advancing

specific climate change-related management. Meanwhile Sunwoda discusses climate topics annually as one of the

● Based on the IFRS S2 ● Through organizing cross- ● After completing external

sustainable development agenda items incorporating them into Board reporting agendas. framework systematically departmental in-depth climate driver analysis

The Company cascades sustainable development strategic goals to relevant functional departments and business segments research and sorts out interviews and thematic and internal collaborative

incorporating climate-related responsibility objectives into the annual evaluation system and linking them to executive domestic and international discussions systematically discussions the Company

performance assessments. Each functional department and segment refines specific indicator targets based on their climate-related policies gather internal professional comprehensively identified

business characteristics and follows up on target achievement. In 2025 we directly linked key climate indicators such as regulations and regulatory experience and conduct physical risks and transition

"Scope 1 and 2 carbon reduction intensity" to the performance of executives in relevant business divisions. trends; analyze industry low- comprehensive climate risk risks faced by core business

carbon transformation trends and opportunity identification operations while capturing

and market demand changes; for the Company's core key opportunities emerging

and pay attention to potential business segments. During in the low-carbon economic

Strategy risks and changes in supply the identification process transformation such as and demand structure costs combine asset information new markets products and

and compliance requirements emission data and climate services providing basis for

Climate Risk Opportunity Identification and Response upstream and downstream in risk management status to subsequent risk assessment the industrial chain thereby ensure the identification and strategic decision-

forming comprehensive process is scientific making.The Company conducts comprehensive research assessing the severity frequency of occurrence and potential transition insights into the external systematic and evidence-

opportunities of various risks. During the reporting period the Company identified 33 categories of climate-related risks and climate environment. based.opportunities of which 17 have material impacts including 3 material physical risks 3 material transition risks and 11 material

transition opportunities.

2025 Key Performance

The Company identified of which

24 climate-related risks 10 were confirmed to

and opportunities have material impacts

including and

3 material physical risks 3 material transition risks 4 material transition

opportunitiesAbout Message from About Annual Sustainability Sustainable Double Materiality

49 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 50

Sunwoda Climate-Related Risks and Opportunities Inventory8 Important Physical Risk Impact Assessment and Response Strategies

Physical Risks Risk Time Impact on Business Value Chain

Name Horizon Model Impact Dimensions Potential Financial Impact

Climate Risk

Transition Risks Transition Opportunities Response Strategy

Acute Risks Chronic Risks

Important Acute Risks

● Tropical Cyclone* ● Water Scarcity ● Downstream Market (Green Low- ● Resource Efficiency*

●

Extreme Increased investment in post-disaster ● ● Wind Speed Carbon Requirements)* ● Energy Sources*

Precipitation* Trends International Climate Policy* equipment emergency repairs cleanup ● ● Products and Services* and recovery and emergency response

● Extreme Heat* ● Warming Trends ● National Climate Policy* ● Markets* leading to higher operating costs.● Landslide ● Sea Level Rise ● Climate/Environmental Laws ● Logistics interruptions may lead to rising Facing typhoon

● River Flooding ● Humidity Trends Regulations and Litigation Production base transportation costs and increased risks the Company

assets in low- inventory management and temporary carries out disaster

● Emerging Technology Investment Risk Short- lying and coastal Upstream Value allocation expenses. preparedness and

● Industrial Development term areas damaged Chain emergency protection

● Phased shutdowns may lead to delayed

● Upstream Market (Raw Materials) Tropical Medium- by typhoons through early warning Core Operations or reduced order deliveries decreasing

Cyclone term transportation linkage tiered

● Upstream Market (Energy Supply) operating revenue.Long- interrupted leading to Downstream response facility

● Assets and Liabilities term production shutdowns

● Increased capital expenditure for

Value Chain reinforcement and

and posing threats to damaged asset reconstruction and business continuity

● Negative Public Opinion

employee safety. typhoon and rainstorm prevention management

management. measures.● Increased claims related to extreme

Climate Risk Response Strategies disasters leading to rising premiums for property insurance and higher insurance

costs.To scientifically analyze the impact of important climate risks on the Company and fully align with internal management

processes Sunwoda divides the impact periods of climate risks into three phases. Based on comprehensive consideration of The Company ● Rising cooling and temperature reduction establishes a high-

national policies in operating locations company strategic goals and planning industry nature and the nature of climate- demands and increased equipment temperature

related risks we determine the time horizons for climate analysis as follows: Continuous high failures may increase operating costs management

Short- temperatures lead to Upstream Value such as energy and maintenance. mechanism

term increased equipment Chain ● High temperatures triggering power adjusting operation

failure rates and

Extreme Medium- restrictions or production cuts may lead times maintaining

Short-term Medium-term Long-term energy consumption Core OperationsHeat term to reduced product deliveries decreasing temperature control

restricted production

Long- operations and pose Downstream

operating revenue. systems and

2025-2030 2031-2035 2036-2050 term strengthening product health threats to Value Chain ● Upgrades and renovations implemented

outdoor workers. to enhance equipment high-temperature

testing to address

resistance and cooling capacity may push operational and safety

up capital expenditure. challenges brought by

high temperatures.● Equipment damage requires additional

repairs and emergency investment

increasing operating costs. The Company

Continuous heavy ● Reconstruction of damaged assets and establishes an

Short- rainfall or flooding Upstream Value long-term flood management require extreme precipitation

term may lead to asset Chain increased capital expenditure. emergency system

Extreme Medium- damage operational ● Production shutdowns logistics from early warning Core Operations

Precipitation term and transportation interruptions and product and raw linkage facility

Long- interruptions and Downstream material damage lead to delayed protection logistics

term threaten personnel Value Chain deliveries reducing operating revenue. optimization to supply

safety. chain assurance to

● Increased claims related to extreme

disasters leading to rising premiums for address flood risks.property insurance and higher insurance

costs.

8 Items marked with * in the list are climate-related risks and opportunities that have a significant impact on the company.About Message from About Annual Sustainability Sustainable Double Materiality

51 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 52

Important Transition Risk Impact Assessment and Response Strategies Important Transition Opportunity Impact Assessment and Response Strategies

Risk Type Time Impact on Business Value Chain Potential Financial Climate Risk Response Opportunity Time Impact on Business Model Value Chain Potential Financial Impact Climate Opportunity Horizon Model Impact Impact Strategy Type Horizon Impact Layout Strategy

● Increased R&D costs to

● Integrating low-carbon

enhance product green ● Explore low-carbon alternatives technology and sustainable

for high-carbon raw materials

attributes. The Company systematically design into R&D building ● Technology development

advances full lifecycle carbon such as cells promote recycled Short- product and material circular investment and carbon data

Short- Customers' low-carbon ● Increased capital footprint management builds term utilization capabilities can seize platform construction increase

material application and

term requirements such as expenditure from building Upstream Value related operating costs;

technology upgrades to meet

Core Operations a green energy system

global carbon reduction and

Resource Medium- Chain customer low-carbon demands; carbon footprint and rooftop photovoltaics to energy transition opportunities; ●

Medium- deploys battery recycling Efficiency term Process innovation can save accelerate raw material and

Market Risk renewable energy usage Downstream improve green electricity advancing low-carbon supply Core Operations material costs and meeting term and promotes supply chain Long- product carbon footprint

are becoming stricter ratio. chain and green full-process Value Chain multi-market access compliance low-carbon transformation term

accounting and information

Long- management can meet requirements brings stable becoming a key threshold disclosure advance Battery ● Increased operating costs

term to respond to downstream

compliance requirements in revenue growth.for order admission. Passport and digital platform from establishing carbon production logistics export and customers' green admission construction.footprint management other links.requirements.systems and recycling and

circular utilization systems. ● Relying on smart energy

● By increasing the proportion of ● Equipment procurement

business promote the

● Increased operating costs application of wind power

renewable energy and green and energy-saving technical

Domestic “dual carbon” from establishing carbon The Company systematically photovoltaics and other electricity usage help achieve renovation projects increase

regulations are becoming Upstream Value footprint management responds to increasingly Medium-

clean energy in production;

carbon emission targets; reduce capital expenditure;

implement energy-saving

Medium- increasingly strict with systems and recycling and strict domestic “dual carbon” Energy term energy consumption through Chain Core Operations ● Reduce operating costs such as technical renovations for

term enterprises facing higher circular utilization systems. policies and energy efficiency Sources Long- energy-saving renovations; purchased electricity and carbon central air conditioning thermal

Core Operations term achieve real-time monitoring compliance; utilize efficient

Long- compliance requirements ● Increased capital requirements by tracking burners screw granulators and efficient control of energy

Downstream energy management to save term in energy efficiency expenditure from equipment regulatory trends and

etc.; use digital energy

consumption through digital energy materials and other

carbon emissions and Value Chain

management systems to

upgrades and replacements advancing energy-saving energy management systems. costs. accurately identify and reduce

product recycling. and establishing low-carbon technical transformations. high energy consumption.production lines.Policy and Legal ● Consumer-grade Batteries: ● Consumer-grade Batteries:

The Company systematically

Risk Green regulations in Developing intelligent and

● Consumer-grade Batteries: Accelerate efficient low-carbon

Increased operating costs addresses international environmentally friendly Green intelligent products technology application;Europe and America are ●

green trade barriers and products according to scenarios enhance premium pricing ● from policy and regulation Power Batteries: Advance Short- becoming stricter putting enhances product overseas and demands can enhance and competitiveness expand development of new

term forward systematic interpretation and green competitiveness; customer base driving revenue technology routes such as

requirements for carbon Upstream Supply compliance management

competitiveness through

● Power Batteries: New energy and profit growth; solid-state batteries semi-

Medium- Chain system construction. dedicated personnel footprint disclosure and vehicle demand coupled with ● Power Batteries: Rigid demand solid-state batteries and flash-

term regulation tracking

recycling responsibility Short- emerging applications such plus incremental growth in charging batteries;Core Operations ● Increased capital forward-looking low-carbon as electric aircraft and ships Upstream Value Long- term emerging fields improves of battery products and ● Energy Storage Batteries: expenditure from

term technology introduction

creates market space; Chain capacity utilization and order

localization production establishing localized Products and Medium-

Developing multi-scenario

localized strategic layout and Core Operations scale driving revenue growth Services term ● Energy Storage Batteries: storage solutions for policies will also increase factories in new markets. establishing compliant carbon Key technology for alleviating Downstream

and structure optimization; applications in the power

overseas operating costs. Long- intermittency of renewable Value Chain ● Energy Storage Batteries: industry commercial and traceability systems. term energy generation and improving Market demand growth forms industrial sectors residential

grid connection and integration stable orders expanding homes and smart energy

capacity with large market revenue growth points; systems;

potential; ● Recycled Materials: Lithium ● Recycled Materials: Focus

● Recycled Materials: Facing battery recycling solutions on lithium battery recycling

opportunities in lithium battery reduce raw material costs seize and cascade utilization

recycling full lifecycle solutions policy opportunities and open breakthrough the "recycling -

promote efficient resource new profit channels. regeneration - application" full

utilization. chain.● Under global low-carbon

transition multiple countries

have introduced new energy- ● Actively track market dynamics

Short- related industrial and financial Core Operations ● Products entering emerging seize emerging market

term support policies; growth in markets and expanded market opportunities; utilize technology

Markets

Medium- emerging economies in battery

Downstream share will significantly increase and capacity advantages to

term applications transportation

Value Chain operating revenue. expand market share in related

carbon reduction and energy businesses.storage drives increased demand

for various batteries.About Message from About Annual Sustainability Sustainable Double Materiality

53 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 54

Climate Financial Impact Sunwoda's asset and revenue risk exposure assessment results show that tropical cyclones and extreme precipitation are

the main physical risk types bringing higher risks to the enterprise. Among them extreme precipitation poses a high-risk

Sunwoda actively seizes relevant financing opportunities and identifies the scale of climate expenditures. The Company impact on company operations that persists in the long term. As the Company's main production capacity is located in high-

has gradually begun the collection of climate-related financial indicators. In this process we prudently assess the impact of risk areas for heavy rain high-risk exposure related to extreme precipitation remains at high levels in both the short and long

climate risks on the Company. Considering financial impact and capability-related factors so we do not disclose quantitative term with overall high-risk exposure above 90%. The Company needs to continuously guard against potential issues such as

information on climate-related current and expected financial impacts in this reporting period. poor drainage power interruptions and equipment failures caused by heavy rain. Meanwhile high-risk exposure for tropical

cyclones remains at a high level and shows an upward trend. Under the SSP5-8.5 scenario in 2050 high-risk exposure will

show an increase of approximately 5% indicating that the Company's potential sensitivity to this risk is further increasing.Climate Scenario Analysis The Company needs to continuously strengthen related monitoring management and prevention mechanism construction in the long term. In addition the upward trend of medium-high risk asset proportions for extreme heat impacts under the SSP5-

8.5 scenario in the long term is also noteworthy.

Sunwoda fully references national and international climate targets policy commitments of operating locations and

characteristics of the new energy industry to conduct scenario analysis for physical risks transition risks and transition Meanwhile under both SSP2-4.5 and SSP5-8.5 scenarios the Company's high-risk asset and revenue exposure related to

opportunities9. During the scenario selection phase we consider scenario coverage capability and applicability of scenario warming trends expands significantly in the short and long term shifting from low risk to medium-high risk with high-risk

parameters selecting low medium and high temperature rise scenarios respectively to conduct various climate risk scenario exposure rising above 20% in some scenarios. This risk may continuously impact plant environment management equipment

analyses prospectively assessing the Company's business resilience financial risk exposure and adaptability of strategic operational reliability and material storage conditions. The Company needs to plan ahead and gradually strengthen

measures under different climate pathways. adaptation measures building upon existing temperature and humidity monitoring and control by enhancing monitoring

system construction and maintenance and continuously optimizing warehousing and environment management levels.Water scarcity and wind speed trends are secondary risks with relatively minor impact on the Company.Climate Scenario Selection Overview

In addition Sunwoda has conducted an internal analysis of its Value at Risk from Operational Disruption. Taking extreme

Low Temperature Rise Medium Temperature High Temperature Rise precipitation risk as an example the Company's current Value at Risk from Operational Disruption due to extreme

Scenario Rise Scenario Scenario precipitation is -0.017%. Under the SSP5-8.5 scenario for 2050 the projected Value at Risk from Operational Disruption for

extreme precipitation is -0.051%. As the impact across all periods remains within the high-risk threshold this indicates that

the financial impact of extreme precipitation risk on the Company is generally controllable.Scenario Name SSP2-4.5 SSP5-8.5

Physical Risk:

-

IPCC Scenario Projected End-of-

Century Temperature 2.1-3.5℃ ＞ 4℃ Sunwoda Asset and Revenue Physical Risk Exposure Levels

Rise

Baseline 2030 2050

Scenario Name (Net Zero 2050 NZE) (Nationally Determined Risk Category Risk NameContributions NDCs) Risk Level Scenario Risk Level Scenario Risk Level

Transition Risk:

-

NGFS Scenario Projected End-of- SSP2-4.5 - SSP2-4.5 -Tropical Cyclone

Century Temperature 1.4℃ 2.3℃ SSP5-8.5 - SSP5-8.5

Rise

SSP2-4.5 SSP2-4.5

Acute Risk Extreme Heat

Physical Risk Analysis SSP5-8.5 SSP5-8.5

Sunwoda's physical risk scenario analysis is based on Representative Concentration Pathways (RCPs) scenario data SSP2-4.5 SSP2-4.5

simulating climate physical risk10 impacts in IPCC AR5 and AR6 combined with corresponding Shared Socioeconomic Extreme Precipitation SSP5-8.5 SSP5-8.5

Pathways (SSPs) scenarios to assess the physical risks faced by Sunwoda between the short term (2030) and long term

(2050). Considering that under high emission scenarios the frequency and intensity of extreme weather events may increase SSP2-4.5 SSP2-4.5

significantly we selected two medium-high emission scenarios—SSP2-4.5 and SSP5-8.5—to assess specific climate risks Water Scarcity

faced by company assets under various climate scenario risk levels. SSP5-8.5 SSP5-8.5

SSP2-4.5 SSP2-4.5

Chronic Risk Wind Speed Trends

SSP5-8.5 SSP5-8.5

9 Regarding opportunities arising from the transition Sunwoda has conducted scenario analyses based on data from the International Energy

Agency (IEA) to assess the potential market opportunities for each business segment under different scenarios helping the company flexibly

SSP2-4.5 SSP2-4.5

adapt to changes in the energy market. At present we have employed the NZE and STEPS scenarios to quantitatively evaluate opportunities in

Warming Trends

our business segments. However as the specific details of these assessments involve the company’s strategic business planning we have not SSP5-8.5 SSP5-8.5

disclosed the quantitative details of the climate-related opportunity analysis. For qualitative descriptions of climate opportunities please refer to

the " Climate Risk Response Strategies " subsection in this chapter.

10 Due to limitations in the availability of underlying data the analysis of physical risks is focused on baseline short-term and long-term time nodes. High Risk No RiskAbout Message from About Annual Sustainability Sustainable Double Materiality

55 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 56

Transition Risk Analysis Risk Management

In transition risk analysis Sunwoda selected NGFS hypothetical scenarios and their parameters to conduct carbon cost

scenario impact simulations. Specifically we applied the Net Zero Emissions by 2050 Scenario (NZE) with temperature rise

below 1.5°C as the low emission scenario and the Nationally Determined Contributions (NDCs) Scenario aligned with China's Climate Risk Management Structure

current climate policy targets as the medium temperature rise scenario to assess potential transition risks Sunwoda may

face under different transition pathways. The Company has established a clearly tiered and well-defined climate risk management structure based on its ESG

governance framework. The Board of Directors and the Strategy and Sustainable Development Committee serve as the

The transition risk scenario analysis results show that the Company's transition risks are more pronounced under the decision-making level responsible for providing overall guidance and strategic direction for climate risk management; the

NZE scenario with risk levels rising to high risk in the short term and Carbon Value at Risk (CVaR) at each time node Sustainable Development Management Committee is specifically responsible for risk identification review of key matters

exceeding the -0.5% threshold posing greater challenges to cash flow capital allocation and investment returns. Proactive and promoting the implementation of control measures for high-priority risks; the ESG Management Department serves as

arrangements such as completing low-carbon technology reserves and production capacity structure adjustments in advance the execution core assisting the Sustainable Development Committee in identifying assessing prioritizing and continuously

are needed to control risks. Under the NDCs scenario the Company's transition pace is relatively moderate the CVaR during monitoring climate risks and opportunities while driving the implementation of various management measures and response

the baseline period is within -0.015% facing medium-low risks in the short and medium term with CVaR within -0.15%. strategies across business segments. Through this structure the Company can organically integrate climate risk management

However attention still needs to be paid to the cumulative impact of policy tightening and risk management work should be into daily operations and the overall risk management system.addressed gradually.Climate Risk Management Full Process

Overview of Sunwoda Transition Risk Analysis Results

Sunwoda has established a management system and process covering the identification assessment prioritization and

Period and Carbon Value at continuous monitoring of climate-related risks and opportunities and has effectively integrated them into the overall risk 11

Year Key Milestone NGFS Climate Scenario Risk (CVaR) Risk 12 management framework. Major climate-related risks and opportunities receive focused attention under the regular review Level of the Board of Directors and the Strategy and Sustainable Development Committee and are managed synchronously with

other core business risks. Through institutionalized process management the Company can dynamically track changes in

Net Zero Emissions by 2050 Scenario (NZE) risks and opportunities enhance capabilities to respond to climate uncertainties and provide solid support for achieving long-

Short-term: China Carbon Peaking Time term sustainable development and low-carbon strategic goals.

2030 Node

Nationally Determined Contributions Scenario

(NDCs)

Risk Identification Risk Assessment and Risk Management and Risk Emergency Prioritization Monitoring Response Mechanism

Net Zero Emissions by 2050 Scenario (NZE)

Medium-term: China Nationally Determined Contributions (NDCs) Target ● The Company ● Sunwoda evaluates ● For identified risks ● The Company has established 2035 Time Point13 Nationally Determined Contributions Scenario identifies climate risks climate risks from the and opportunities the a full-process response

(NDCs) and opportunities perspectives of impact Company formulates mechanism covering based on the IFRS S2 likelihood and impact control measures identification early warning

framework using a magnitude and climate emergency systems and response and review based

combination of external opportunities from resilience enhancement on multiple emergency plans

Net Zero Emissions by 2050 Scenario (NZE) analysis and internal capability matching and plans for high-risk areas ensuring business continuity.Long-term: Global NetZero Emissions Target discussion. Externally it industry attractiveness and core business. Currently the Company has

2050 Node reviews domestic and completing reasonable For physical risks the established a severe weather

Nationally Determined Contributions Scenario international climate prioritization of risks. Company addresses emergency team led by

(NDCs) policies regulatory On this basis combined extreme weather the Safety Committee with

dynamics and industry with key parameters such as typhoons and specialized sub-teams and

and industrial chain and financial data heavy precipitation by clear responsibilities defined.High Risk Low Risk risks; internally through under different climate transferring risks through In the early warning phase cross-departmental scenarios the Company emergency plans site the Company issues four-

collaboration it identifies conducts financial selection assessments level warnings based on

core business-related quantitative analysis facility reinforcement meteorological assessments

risks and opportunities of climate-related risks emergency supplies and and implements preparatory

by combining across multiple time insurance. For transition work such as facility

management status dimensions from the risks the Company actively reinforcement and material

and asset information. present to the long term tracks policy changes allocation in advance; in the

Ultimately physical risks helping the Company strengthens compliance emergency response phase

transition risks and low- prioritize and manage and product low-carbon various teams carry out

carbon development risk matters that may management; meanwhile rescue and relief operations

11 Carbon Value at Risk (CVaR): Used to estimate the ratio of costs caused by carbon prices to enterprise value for an enterprise within a specific opportunities are clarified generate significant it incorporates transition followed by post-event

time frame. providing support for risk financial impacts. opportunities into strategy review and plan optimization assessment and strategic enhances low-carbon with regular training and

12 The classification standard for carbon at-risk value risk levels is based on the internal financial materiality impact threshold of Sunwoda ensuring decision-making. technology R&D and drills to enhance emergency

consistency with it. improves competitiveness. response capabilities and

13 On September 24 2025 President Xi Jinping delivered a video address at the United Nations Climate Change Summit and announced China's operational resilience.

new round of Nationally Determined Contributions: by 2035 China's economy-wide net greenhouse gas emissions will decrease by 7%-10% from

the peak. For details see: https://www. mee. gov. cn/ywdt/szyw/202509/t20250925_1128072. shtmlAbout Message from About Annual Sustainability Sustainable Double Materiality

57 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 58

Metrics and Targets Cleantech Opportunities

Climate Targets

Guided by the corporate vision of "To become a respected world-class new energy enterprise" Sunwoda actively responds Sunwoda insights into strategic opportunities in the global green development wave establishing clean technology

to global climate change mitigation actions continuously advances green low-carbon manufacturing and sustainable innovation as the core driving force for high-quality enterprise development. The Company focuses on green product design

operations and is committed to facilitating energy structure transformation and economic and social sustainable and manufacturing systematic green solution output fulllifecycle green packaging application and low-carbon logistics

development through efficient and safe battery and energy storage products and solutions. Sunwoda released the Sunwoda system construction building an integrated and forward-looking clean technology development path.Action Plan for Carbon Peaking and Carbon Neutrality in 2022 and has gradually improved its "dual carbon" management

system. In 2024 Sunwoda set Scope 1 2 and 3 emission reduction targets with 2023 as the base year and carried out

internal target decomposition to link them with executive annual performance assessments. During this reporting period

Sunwoda actively benchmarked against industry-leading practices continuously reviewed its carbon reduction targets and Governance

actively researched and improved reduction pathways and implementation plans aligned with its industrial characteristics.The Strategy and Sustainable Development Committee serves as Sunwoda's core governance body bearing the strategic

Sunwoda Climate-Related Targets responsibility for systematically planning and comprehensively leading clean technology opportunities. Through building

clear technology roadmaps resource allocation mechanisms and cross-departmental collaboration processes it ensures the

"Carbon Peaking and Clean Energy Transition Company seizes opportunities in the clean technology wave transforming sustainable development vision into competitive

Carbon Neutrality" Targets Targets Social Carbon Reduction Targets advantage and growth momentum.● Achieve operational carbon ● Add 1.38 GWp of photovoltaic ● Contribute 6.84 million tonnes of carbon Sunwoda continuously improves the management system in the cleantech field formulating key policy documents including

peaking by 2029 capacity by 2040 reduction in social transportation by 2030 the Sunwoda Zero-Carbon and Near-Zero-Carbon Park Construction and Operation Guidelines Smart Energy New Energy

Project Development Management Regulations Charging Station Project Market Development Management Regulations

● Achieve operational carbon ● Achieve 100% renewable energy ● Contribute 42.37 million tonnes of carbon New Industry Project Management Regulations Risk Assessment Management Regulations and Sunwoda Product Carbon

neutrality by 2050 usage by 2050 reduction in social transportation by 2040 Management Regulations advancing the Company's work in the cleantech field. The Company clarifies full-process

management from project identification market development opportunity assessment to construction and operation

continuously responding to customer needs in different application scenarios and actively empowering upstream and

Climate-Related Indicators downstream industrial chain partners and regional economies to achieve high-quality green low-carbon transformation and

sustainable development.Indicator 2025 2024 2023

Direct greenhouse gas emissions

(Scope 1) Unit: tonnes of CO2 127446.67 110217.78 102959.97 Strategy

equivalent

Indirect greenhouse gas emissions

(Scope 2)14 Unit: tonnes of CO 1331789.81 872270.66 880010.62 Sunwoda has formulated a group-wide sustainable development strategy — "LEAP toward a Sustainable Future" — placing 2

equivalent clean technology opportunities at the strategic core of the Company's long-term development. It proactively deploys key

Other indirect greenhouse gas areas such as green products solutions packaging logistics circular recycling and battery passports committed to building

emissions (Scope 3) Unit: tonnes of 288822.5115 / / the core momentum for corporate development through continuous innovation.CO2 equivalent In 2025 focusing on the certain opportunities of global energy structure transformation the Company formulated a

strategy to strengthen energy storage segment investment planning to accelerate global project development layout and

build fulllifecycle service systems through energy storage applications photovoltaic industry layout and upstream and

2025 Key Performance downstream lithium battery layout improving the Company's value chain and core advantages in the energy storage field

injecting “Sunwoda” power into the zero-carbon dream.GHG Emissions Intensity

0.23 tonnes of CO2 equivalent/ten thousand revenue yuan Cleantech Opportunities

Sunwoda takes green products as the starting point and green solutions as the driver forming a full-chain circular ecosystem

covering green packaging efficient logistics and recycling systems seizing development opportunities brought by clean

technology and setting a benchmark example for industry sustainable development.

14 The data is calculated based on the market.

15 The company regularly conducts Scope 3 greenhouse gas inventories for production bases that have been in stable operation or have

been operational for one year or more. This process is independently verified by a third-party agency. Taking into account factors such as

industry characteristics and data availability the disclosure categories for Scope 3 emissions have been adjusted for the current year with no

restatement of data from previous years. For specific disclosure categories please refer to the Key Performance Table.About Message from About Annual Sustainability Sustainable Double Materiality

59 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 60

Green Products Global Debut of 684Ah&588Ah Energy Storage Cells

Sunwoda actively fulfills the “dual carbon” goals deeply embedding green low-carbon technology philosophy and ● 684Ah cell adopts advanced stacking technology innovatively integrating

requirements into its R&D and design of core products. The Company conducts R&D layout in key low-carbon technology “thermo-electric separation” with three-dimensional heat dissipation

fields such as solid-state batteries and silicon-carbon anode materials with related technological achievements already structure optimizing thermal management adapting to multiple container

applied to specific product sequences effectively improving product full lifecycle resource efficiency and environmental solutions reducing costs and operation and maintenance difficulty.performance. Meanwhile we carry out Battery Passport and product carbon footprint certification work ensuring green

●

management throughout the product full lifecycle providing support for sustainable business development. The 588Ah energy storage cell adopts a winding process and low lithium

loss technology with a cycle life of 10000 cycles@70% SOH and an

energy efficiency of 96.5% optimizing the cost per kWh while ensuring

safety.“Sunwoda Bixiao” Polymer Solid-State Cell

● The "Sunwoda Bixiao" polymer solid-state cell has an energy density of New-Generation 48V Intelligent Lithium Battery Series

400Wh/kg a cell capacity of 20Ah and a cycle life of 1200 cycles. It adopts

nano-sized high-entropy anode achieving specific capacity of 2 700mAh/

●

g equivalent to 7.2 times that of graphite anode with first-cycle efficiency Supporting iBase cloud platform SNMP interface GPS and heating film

of 96% and doubled cycle life. The ultra-thin polymer composite electrolyte options this series adapts to differentiated market demands. It delivers

membrane represents the battery's greatest technical breakthrough intelligent battery management solutions with visualized monitoring remote

simultaneously employing super-elastic interface coating to achieve high management and over-the-air firmware upgrades-empowering operators

ionic conductivity strong adhesion high ductility and self-healing. to achieve both low-carbon transformation and commercial value.Flash Charging Battery 4.0 179kWh Commercial&Industrial Energy Storage Outdoor Cabinet

● The world's first 1800A extreme fast-charging battery with a peak charging

● Equipped with Sunwoda's self-developed 280Ah energy storage cell this

rate of up to 15C delivering a 150km driving range with just 1 minute of product achieves 9000 cycles. Through extended cycle life and dynamic

extreme fast charging. Paired with 800-1 000V systems peak charging electricity pricing response it accelerates return on investment for users.power exceeds 1.4MW. It delivers high safety low-temperature resistance

and long service life for ultra-fast charging batteries providing a reliable

guarantee for the full lifecycle performance requirements of new energy

vehicles. 10-Meter-Class 2MWh Liquid-Cooled Integrated Mobile Energy Storage Vehicle -Xinjiyuan 2000

● Xinjiyuan 2000 is equipped with Sunwoda's self-developed 314Ah cells

The Industry's First Large-capacity Ultra-fast Charging Battery Specially Designed for Heavy-duty Trucks with total vehicle capacity reaching 2MWh a 300% increase compared to

traditional mobile energy storage equipment. Compared with traditional

● The product adopts 268Ah large-capacity cells achieving excellent large- diesel generator sets its full lifecycle cost is reduced by 15%-20% power iscurrent carrying capacity through multi-tab current conduction technology increased by 1.3 times and it can achieve energy arbitrage through “valleyand “3+3” hybrid electrode system supporting 3.5C ultra-fast charging storage and peak discharge” mode improving operational returns.rate. Paired with dual-gun parallel ultra-fast charging technology energy

replenishment can be completed in just 15 minutes meeting the actual needs

of heavy-duty trucks for high-frequency energy replenishment and extreme

fast charging. Green Solutions

Sunwoda actively partners with stakeholders worldwide to co-create an intelligent clean and sustainable zero-carbon

ecosystem through three core solutions: advanced energy storage optimization green mobility transformation and zero-

“Sunwoda Yunxiao 2.0” Aviation Power Battery carbon park development.● This battery has an energy density of ≥360Wh/kg adopts innovative "semi- Advanced Energy Storage Solutions

solid-state" battery technology and combines the characteristics of "high

specific energy high power high safety and wide temperature range" Sunwoda focuses on five business directions: power energy storage commercial and industrial energy storage household

making it widely applicable to low-altitude economy scenarios such as urban energy storage network energy and energy services. Its solutions have been successfully deployed across over thirty

air mobility and agricultural and forestry plant protection. application scenarios accumulating profound practical experience. The Company continuously expands the footprint of

mobile energy storage and integrated energy storage projects to fully meet customized demands in global markets.About Message from About Annual Sustainability Sustainable Double Materiality

61 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 62

Sunwoda Showcases Energy Storage Cell Portfolio and System Solutions at Japan New Independent Energy Storage Power Station Project Building Clean Low-

C as e C as eSMART ENERGY WEEK Carbon Energy System

In 2025 Sunwoda presented its comprehensive energy storage cell family and system solutions at In 2025 the Huizhou Xincheng New Energy 200MW/400MWh Independent Energy Storage Power

SMART ENERGY WEEK demonstrating its leading capabilities in product innovation and global market Station New Construction Project officially broke ground at the Intelligent Equipment Industrial

presence. The Company simultaneously launched its new 836kWh liquid-cooled outdoor cabinet Park in Shiwan Town Boluo County. Invested and constructed by Sunwoda's subsidiary the project

featuring Sunwoda's self-developed 314Ah high-capacity cell that balances high energy density plans to build a grid-side electrochemical energy storage power station and 220kV booster station

extended cycle life and intrinsic safety. With total cabinet weight kept under 8 tons the product creating approximately 100 jobs annually upon completion. After commissioning the project will

addresses Japan's space constraints and stringent logistics requirements enabling more convenient enhance regional grid peak shaving and frequency regulation capabilities facilitate renewable energy

transportation and installation. integration and inject green momentum into Boluo's construction of a clean low-carbon energy system

and development of new quality productive forces.Green Mobility Solutions

Through continuous technological innovation Sunwoda effectively supports reliable operation of new energy vehicles under

extended range and highload conditions providing solid assurance for green mobility. Meanwhile the Company actively

builds an integrated “PV-storage-charging-testing” ecosystem organically integrating photovoltaic energy storage charging

and inspection services to improve comprehensive energy utilization efficiency and facilitate the comprehensive evolution of

the transportation sector toward green intelligent and zero-carbon development.Sunwoda has comprehensively deployed commercial vehicle charging and passenger vehicle ultra-fast charging network

construction improving green transportation energy infrastructure. In 2025 Sunwoda's Xinwei Road Ultra-Fast Charging

Station in Guangming District recorded monthly charging volume exceeding 300000 kWh; the Company's 3200 kW heavy-

duty truck charging station in Huangnibao Yuezhou Town Qilin District Qujing City Yunnan Province has commenced

operations capable of providing fast charging services for 10 heavy-duty trucks simultaneously.Sunwoda 836kWh Liquid-Cooled Outdoor Cabinet In addition the Company's stations integrate supporting services such as unmanned car washing and lounges with plans to

connect photovoltaic and energy storage systems to build integrated “PV-storage-charging-testing” demonstration scenarios

comprehensively enhancing user charging experience and station comprehensive value. In 2025 Sunwoda had 72 charging

stations in operation with charging pile business covering Guangdong Zhejiang Shandong Jiangsu Yunnan and other

regions.Obtaining EPD International Environmental Declaration for Energy Storage Cells

C as e Demonstrating Leading Capabilities

In 2025 Sunwoda's 314Ah energy storage cell officially passed EPD International Environmental Product

Declaration certification becoming the world's first battery industry product to achieve this system

certification. This certification marks Sunwoda's achievement of international leading standards in full

lifecycle management of energy storage cells and green low-carbon manufacturing.SEVB Completes EPD International Environmental Declaration for Energy Storage CellsAbout Message from About Annual Sustainability Sustainable Double Materiality

63 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 64

Zero-Carbon Park Solutions Metrics and Targets

Sunwoda provides parks with implementable replicable zero-carbon transformation pathways creating zero-carbon park

solutions to help regions achieve a sustainable future. Sunwoda integrates cleantech opportunities into its long-term strategy establishing a clear quantitative target system and

dynamic tracking management mechanism to ensure efficient conversion of green innovation in R&D manufacturing and full

C as e Dianbai and Yiwu Bases Obtain PAS 2060 Carbon Neutrality Certification product lifecycle enhancing core corporate competitiveness.SEVB actively practices green development concepts and

advances carbon-neutral park construction. The Yichang

production base obtained PAS 2060 carbon neutrality

certification in 2024 becoming SEVB's first “carbon-neutral” Cleantech Opportunity Targets 2025 Progress

park. In 2025 the Dianbai and Yiwu bases also successively

passed PAS 2060 carbon neutrality certification further Conducted Battery Passport pilot work for

expanding the green operations footprint. SEVB achieves Complete 5 battery passport pilotsselected typical products.park carbon neutrality through constructing photovoltaic and

energy storage systems implementing annual energy-saving

technology upgrades and continuously reducing energy use Conducted product carbon footprint declarations Completed carbon footprint declarations for

and carbon emissions while introducing external green power for selected typical products. 7 products.green certificates and carbon credit offset mechanisms. This

achievement marks substantial progress for the Company

in optimizing energy management and advancing green The Dianbai and Yiwu Bases have been awarded

technology innovation. the PAS 2060 Carbon Neutrality Certification

2025 Key Performance

C as e Sunwoda Builds Cooperative Ecosystem to Jointly Expand Zero-Carbon Future

The Company has built a zero-carbon cooperation network covering government entities central state- Total installed photovoltaic capacity reached with annual photovoltaic power generation of

owned energy enterprises local state-owned assets and professional institutions signing nearly 100 project

agreements throughout the year to pursue long-term stable value in zero-carbon business and respond to MW million kWhfluctuations in the zero-carbon market. Among these the Zaozhuang Sunwoda Base “Source-Grid-Load- 153.60 182Storage” Integrated (Phase I) Project was selected as a 2025 Shandong Province First Batch Source-Grid-Load-

Storage Integrated Demonstration Project.Sunwoda newly added with project capacity of

Green Packaging Logistics and Recycling 14 distributed photovoltaic projects 62 MW16

In the fields of green packaging logistics and recycling Sunwoda centers on environmentally friendly materials and

intelligent systems to achieve packaging circular utilization and transportation route optimization driving the supply chain Cleantech R&D Investment Proportion of cleantech R&D to operating revenue

toward a sustainable model of resource conservation and low-carbon efficiency.The Company establishes green admission mechanisms from the procurement source explicitly requiring packaging materials

to possess FSC (Forest Stewardship Council) sustainable certification affix RoHS directive and HF material environmental 4.379 RMB billion 6.92%

directive labels and meet packaging directive and other hazardous substance control regulatory requirements. The Company

has established a classified coding system to achieve full lifecycle traceability management of packaging materials.In production the Company comprehensively promotes recyclable PP turnover boxes to reduce disposable packaging Participated in or reviewed national industry local

consumption and encourages suppliers to use recyclable packaging materials building a green packaging closed loop and group carbon footprint-related standards White papers

throughout the supply chain.In 2025 Sunwoda continued deepening SLS green intelligent logistics construction achieving systematic breakthroughs in

technology management and operations. Building upon existing intelligent logistics systems the Company is collaborating 12 item 1 book

with AI R&D departments to upgrade systems toward intelligent planning and collaborative decision-making achieving

refined full-process management of logistics suppliers and deep collaborative transformation of import-export customs

declaration business through building an online transparent management platform. The Company scaled up China-Hong

Kong consolidated truckload transportation to cut ineffective trips comprehensively promoted sea-rail intermodal transporton export routes to India and innovatively adopted a “domestic full-container consolidated shipping plus European localdistribution” one-stop solution for European exhibition goods reducing carbon footprints across the full transportation chain

through multiple dimensions. 16 Includes non-Sunwoda internal parks.About Message from About Annual Sustainability Sustainable Double Materiality

65 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 66

Promoting Circular Economy Centered on the “1+N+X+Y” industrial synergy model Sunwoda relies on self-developed advanced recycling technology to deploy a three-tier linkage system nationwide: scale regeneration factories as the lead local dismantling centers as

the support and decentralized collection outlets as the touchpoints. This architecture fully integrates regional industrial

Resource management and circular economy are not only critical pathways to achieving carbon neutrality but also core of characteristics and market demands forming a clearly layered extensively covered service network that deeply connects

future corporate competitiveness. The Company is committed to minimizing the environmental footprint of the full battery upstream and downstream of the battery industry chain strongly supporting efficient resource recycling and circular

lifecycle from core material regeneration R&D and resource recycling in production to battery remanufacturing and precise regeneration.recycling of retired batteries building a highly efficient resource closed-loop system and continuously driving the industrial

chain toward green low-carbon and sustainable transformation. Meanwhile the Company ensures long-term circulation “1+N+X+Y” Battery Recycling Model

and sustainable utilization of water resources through water resource protection mechanisms and full-process water quality

control systems.Governance

The energy management teams of Sunwoda's business divisions and subsidiaries are responsible for organizing the

implementation of national laws regulations guidelines and policies related to water conservation researching and

formulating water conservation management systems regulations and standards applicable to the Company and

organizing their implementation. The Company strictly complies with the requirements of laws and regulations including

the Water Law of the People's Republic of China and the Law of the People's Republic of China on Prevention and Control

of Water Pollution and has formulated internal management regulations including the Management Regulations on Water

Conservation covering all operational locations standardizing water use management systems and management standards

for all links.Sunwoda established a recycled materials company focusing on core segments including lithium battery recycling material

testing and value regeneration providing partners with integrated management services spanning the full battery cycle of

design production sales recycling and reuse. The Company's R&D department conducts testing and validation of recycled

materials with additional testing available upon customer request to ensure overall system performance and safety meet

customer standards. In accordance with the Regulation (EU) 2023/1542 on Batteries and Waste Batteries requirements

Sunwoda has formulated internal management regulations including the Comprehensive Management Regulations for

Retired Battery Recycling and Utilization Sample Production Management Process Production Process Management

Process Material Control Management Process and Finished Product Quality Control Process strengthening the Company's

operational compliance and process controllability providing foundational support for recycled materials recovery work. 1 5 10 50

Additionally starting in 2026 the Company will incorporate key indicators such as "material recycling rate" and "cumulative headquarters and R&D regeneration factories physical dismantling collection outlets

battery recycling volume" into the performance evaluation system for executives in relevant business divisions linking them center plants

to performance-based compensation and bonuses.StrategySunwoda re leased the “LEAP toward aSustainable Future” comprehensive sustainable

development strategy integrating water

resource management and circular economy

Recycling Loop Chemical

management requirements into company Metallurgy 2025 Key Performance

operations and product lifecycle committed to Raw Materials

achieving green low-carbon development. Co/Li/Ni

The Company's domestic R&D and manufacturing bases include:

Recycled materials represent a crucial piece PACK/System Precursor

of Sunwoda's “Five Completes” strategy Sunwoda

for whole-industry-chain layout of the large Battery Lifecycle ● Testing and R&D Center: Shenzhen Guangming R&D Center

circular system. The Company will seize the Ecosystem

historic opportunities of the lithium battery Cell Cathode

recycling industry's development to become Materials ● Manufacturing Bases: Jiangxi Physical Base (mass production achieved) Shandong Physical Base (mass

an industry-leading comprehensive solution production in 2026) Jiangxi LEP Wet Process Base (mass production in 2026) Jiangxi Waste Battery

provider for new energy recycl ing. The Remanufacturing Base (planned mass production) Shandong NCM Wet Process Base (under planning)

Company has established the full-linkagec losed loop of “mining-product ion-use-recycling” as its strategic core driving efficient

circulation and regeneration of resources

within the industrial chain.About Message from About Annual Sustainability Sustainable Double Materiality

67 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 68

Risk Management

● Lithium battery recycling products ● Circular utilization products mainly

include battery black mass cover battery swap capacity expansion

Sunwoda embeds environmental compliance risks such as water resources and circular economy into the enterprise battery-grade cobalt sulfate low-speed electric vehicles forklifts

comprehensive risk management system. Relying on a full lifecycle prevention and control mechanism the Company nickel sulfate manganese sulfate sightseeing vehicles as well as outdoor

systematically identifies relevant risks and opportunities dynamically assesses their relevance to sustainable development lithium carbonate iron phosphate power supplies household energy

strategy and ensures robust and long-term management of resource management and circular economy risks. Circular Economy copper aluminum etc. storage and commercial and industrial

Recycling Business energy storage.Water Resource Management

Sunwoda actively advances intelligent and green process innovation leveraging automation to achieve flexible dismantling

Sunwoda deeply recognizes the indispensable value of water resources for maintaining sustainable production and living and intelligent preprocessing of power batteries improving efficiency and reducing costs. The Company optimizes extraction

safeguarding human health and promoting ecosystem stability. The Company closely monitors their profound impact on processes simplifying procedures and reducing energy consumption while improving metal recovery rates. The Company

business continuity and has adopted multiple water conservation measures such as installing first-grade water efficiency continuously expands recycling technology pathways integrating physical and Wet processes and developing frontier

showerheads energy-saving sensor sanitary ware high-pressure drip guns water-saving dishwashers and green irrigation technologies including vacuum low-temperature drying cathode repair and regeneration and solid-phase impurity extraction

facilities in office buildings aiming to efficiently utilize and cherish every drop of water to ensure sustainable use of water achieving efficient low-carbon low-cost full lifecycle battery management.resources. Meanwhile the Company's water-saving meter coverage has reached required standards achieving real-time The Company also actively participates in industry standard formulation deeply engaging in standard-setting work in the

monitoring and precise control of water usage data. battery recycling field demonstrating its important influence in industry norms and technology leadership. In 2025 the

In 2025 all company water sources were municipal water supply mainly used for employee domestic water canteen recycled materials company participated in the formulation of two “cornerstone” national standards for the battery recycling

operation water and in production processes for boilers steam central air conditioning systems process cooling towers and industry: Technical Specification for Evaluation of Recycling and Utilization of Waste Battery Chemicals and Technical

power technology mixing processes. From water withdrawal behavior water consumption process drainage links to storage Guidelines for Directional Recycling of Waste Lithium Battery Chemicals; participated in the compilation of the group

volume changes the Company has not produced significant direct or indirect impacts on water resources. standard Green Supply Chain Management Specifications for Consumer Lithium-ion Battery Industry and also participated in

the formulation of group standards related to battery remanufacturing.C as e Water Resource Conservation Employee Training Sunwoda Tengzhou “Energy Storage+Recycling” Dual Projects Officially Completed C as e Enhancing Recycling Efficiency

In 2025 Sunwoda completed 12 energy management specialized training sessions accompanied In October 2025 the completion ceremony for

by company-wide energy conservation publicity focusing on water resource conservation energy Sunwoda Tengzhou Energy Storage Factory

management and technical renovation awareness guidance achieving dual improvement in water and and Lithium Battery Recycling and Utilization

energy conservation awareness and capabilities for all employees. Project was held. As a core pivot of Sunwoda's

national strategic layout the Tengzhou project

efficiently produces battery black mass and

remanufactured battery products through

recycling and utilizing waste lithium batteries

cells and electrode materials. The project

establishes fully automated highly intelligent

production lines building a complete closedloop of “materials-cells-systems-application-recycling” through process flows including Tengzhou “Energy Storage+Recycling” Dual Projects Completion Ceremony“dismantling pyrolysis crushing and batteryremanufacturing. ”

Accelerating Technology Breakthroughs and Global Layout Providing “Urban Mine”

C as e

Water Resource Training Resource Circulation

In December 2025 the Global Intelligent Machinery and Electronic Products Expo (AIE) was held

simultaneously in Macao and Zhuhai under a “one exhibition two cities” model. Company leadership

Promoting Circular Economy stated in an interview that Sunwoda’s battery recycling business is positioned as “urban mining” development providing not only a sustainable supply independent of primary minerals for resource

security but also achieving targeted resource circulation through strategic cooperation with

With strategic metal resources including nickel cobalt and lithium at the core Sunwoda relies on chemical metallurgy downstream customers. Facing key trends such as the gradual increase in battery decommissioning

processes to purify and synthesize them into battery cathode and anode precursors then through material processing cell volume and the industry shift from “channel dominance” to “technology dominance” Sunwoda will

manufacturing and module integration forms battery systems directly applicable to end-use. After battery retirement the leverage technological breakthroughs and globally adaptable layouts to provide compliant stable and

Company achieves recovery of valuable metals through systematic dismantling and efficient extraction technology and efficient resource circulation solutions for global customers.converts them back into precursor raw materials forming a closed-loop flow system.About Message from About Annual Sustainability Sustainable Double Materiality

69 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 70

Metrics and Targets Environmental Compliance Management

Sunwoda fully integrates the principles of "reduction reuse and resource recovery" into the full lifecycle of product

design production operations and recycling utilization promoting sustainable resource utilization through establishing key Sunwoda treats environmental compliance management as the core engine for enterprise green development systematically

quantitative indicators and phased targets covering dimensions such as "resource utilization efficiency waste recycling integrating core areas of emission management and implementing high-standard environmental control requirements

rate and material regeneration proportion." Meanwhile we continuously improve water resource indicators and target throughout the operational process. The Company continuously implements clean production targets injecting solid

management. momentum into the green transformation of the industrial chain.Governance

Circular Economy Indicators and Targets Sunwoda has established an environmental management structure with clear responsibilities forming a Safety Production

Committee with the President/Chairman as the top manager responsible for implementing environmental management

documents guidelines and policies including but not limited to three-waste (wastewater waste gas solid waste) emission

management and introduction and application improvement of environmental protection technologies. Meanwhile the

Circular Economy Targets 2025 Progress President/Chairman clearly defines the roles responsibilities and authorities of all departments and personnel at all levels in

environmental compliance ensuring effective system operation.

100% recovery of process waste from cell raw Achieved Sunwoda strictly complies with the requirements of laws and regulations including the Environmental Protection Law of the

materials (e. g. lithium) People's Republic of China the Water Pollution Prevention and Control Law of the People's Republic of China the Law of

the People's Republic of China on the Prevention and Control of Atmospheric Pollution and the Law of the People's Republic

of China on the Prevention and Control of Environmental Pollution by Solid Waste. The Company has formulated internal

management regulations covering all operational locations including the Environmental Protection Management System the

2025 Key Performance Environmental Pollution Prevention Management Regulations the Environmental Pollution Control Management Regulations

and Detailed Implementation Rules for Waste Gas Wastewater and Rainwater Control providing guiding documents for the

Company's environmental compliance work.Waste battery aluminum current collector Steel case recovery rate

recovery rate

≥99% Emission Management Requirements and Treatment Methods≥98% Category Policy Documents Brief Description

● Emission Sources: Domestic sewage industrial wastewater

● Major pollutants: pH chemical oxygen demand five-day biochemical oxygen demand suspended solids total

nitrogen total phosphorus etc.Implementation ● Pollution Prevention Facilities: Sewage treatment stations wastewater treatment stations industrial

Rules for Waste Gas wastewater treatment facilities septic tanks grease traps

Water Resource Management Indicators and Targets Wastewater and ● Treatment Methods: Domestic sewage adopts A2O+constructed wetland. Industrial wastewater adopts Fenton

Wastewater Stormwater Control oxidation+A3O+MBR Fenton oxidation+A2O+multi-stage filtration+RO sand filtration+carbon filtration+security

filtration+ultrafiltration+RO bar screen+adjustment tank+coagulation sedimentation+AO+MBR+Fenton+filtr

ation adjustment tank+coagulation sedimentation+Fenton oxidation+coagulation sedimentation+A2O+MBR

Fenton oxidation+A3O+MBR and other methods.

2025 Group Water Resource Management Targets 2025 Target Achievement ● Emission Sources: Spray painting exhaust coating exhaust electrolyte injection exhaust dispensing/spray

coding/screen printing/pad printing/injection molding welding exhaust organic exhaust dust boiler/thermal oil

heater exhaust sewage station odor

●

Implementation Main Pollutants: Non-methane total hydrocarbons VOCs particulate matter SO2 NOX H2S NH3Annual per capita water consumption decreased by 5% compared Achieved ● Rules for Waste Gas Pollution Prevention Facilities: Waste gas treatment facilities activated carbon adsorption devices bag-type

with the actual water consumption in 2024 (regulatory target) Wastewater and dust collectors

●

Waste Gas Stormwater Control Treatment Methods: Including cyclone tower+spray+dry filtration+RTO condensation recovery+rotor adsorption spray+activated carbon adsorption activated carbon adsorption bag dust collection/dry filtration+activated

carbon adsorption spray+dry filtration+activated carbon adsorption concentration+desorption catalytic

combustion gravity dust collection/bag dust collection/pulse dust collection low-nitrogen combustion

2025 Key Performance spray+biological trickling filter etc.

● Main Pollutants: Waste contaminated media (rags gloves) waste empty containers (glue bottles alcohol

empty barrels) waste organic solvents (experimental reagents) waste acids (experimental use) waste mineral

Total Water Withdrawal Total Water Discharge the Environmental oil (environmental facility maintenance) waste activated carbon (exhaust gas facility replacement) etc.Pollution Prevention ● Pollution Prevention Facilities: Hazardous waste storage room

Management ● 6711023.35 2898397.94 Treatment Methods: Sign processing contracts with qualified hazardous waste disposal units regularly Regulations and entrust qualified third parties to transport and dispose with further recycling and comprehensive utilization. cubic metres cubic metres Hazardous the Environmental Through “three-link (temporary storage point-transportation-warehouse)” standardized management actively Pollution Control coordinate with departments to carry out reduction plan promotion and implementation. Meanwhile implement

Waste Management full-process control appoint dedicated personnel to supervise hazardous waste treatment processes. From raw

Regulations and auxiliary materials to hazardous waste generation positions to hazardous waste collection hazardous

waste storage and hazardous waste transfer each link has form records and transfer manifest management

is implemented in accordance with national regulatory requirements.About Message from About Annual Sustainability Sustainable Double Materiality

71 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 72

Category Policy

Waste Gas Management

Documents Brief Description

the Environmental The Company and its subsidiaries purify and treat waste gas in accordance with national relevant technical standards

Pollution Prevention ● Main Pollutants: General waste domestic garbage improve and optimize waste gas control measures strengthen management of various pollutant leakage sources and collect

Management ● Pollution Prevention Facilities: Domestic garbage cleared daily general waste periodically cleared and and treat waste gas from source transmission and end processes throughout the entire process discharging after meeting

Regulations and transferred based on production volume.the Environmental ● Treatment Methods: Sign business contracts with suppliers with professional companies classifying and standards. In accordance with national requirements qualified third-party factories are regularly invited to conduct testing General Pollution Control processing general waste and domestic garbage. Regularly organize waste classification training for employees and obtain qualified testing reports. Meanwhile the Company actively carries out practical emission reduction processes

Waste Management to improve awareness of waste sorting and reduction across the workforce. such as selecting low-VOC materials for raw and auxiliary material substitution.Regulations

Sunwoda continuously improves environmental and safety governance levels through establishing a closed-loop Key Waste Gas Management Work in 2025

management system combining normalized supervision and third-party verification. The Company internally implements

● Canteen rooftop cooking fume discharge ● Carry out waste gas facility ● Increase waste gas treatment facilities

quarterly performance monitoring monthly EHS compliance checks and annual system internal audits for all bases with the

outlets set up sampling ports according renovation to effectively reduce and renovate workshop injection

audit scope covering 100% of production bases across all business segments. Meanwhile the Company introduces external

to “upper three lower six” standards. waste gas emissions. molding waste gas collection systems.third-party audits conducting sampling audits of business segments annually and comprehensive audits covering all business

segments every three years ensuring environmental management compliance. In 2025 Sunwoda has newly added 3

subsidiaries that have passed the ISO 14001 environmental Environmental Management System 32 subsidiaries of Sunwoda

obtained ISO 14001 Environmental Management System certification achieving 100% coverage of stably operating production

and manufacturing bases.The Company has established an assessment mechanism linking environmental performance to executive compensation

deeply integrating environmental performance into the employee performance evaluation system. The Company implements

monthly and quarterly combined performance assessments for general managers and above first-level department heads

and business executives with 5%-10% weighting in their quarterly and annual bonuses directly tied to the achievement

of environmental management targets. This systematically drives continuous improvement of the Company's overall

environmental governance level including wastewater exhaust gas and noise emission compliance hazardous waste

compliant and legal disposal environmental daily inspection hidden danger rectification rate and environmental protection Cooking Fume Discharge Outlet After Waste Gas Equipment Reconstruction Spray Tower Waste Gas Treatment Facility

facility inspection status. Points are deducted by 1 per instance for overdue inspections early inspections or inspection Rectification

results not matching actual conditions.Wastewater Management

Strategy

Sunwoda follows the basic principle of “rainwater and sewage diversion classified treatment” to manage sewage discharge

Sunwoda released the “LEAP toward a Sustainable Future” comprehensive sustainable development strategy systematically mainly divided into production wastewater and domestic sewage. The Company continuously constructs upgrades and

integrating environmental compliance requirements including emission management into company operations and product maintains sewage treatment facilities monitors sewage discharge in realtime and ensures all sewage meets standards

lifecycle committed to achieving green low-carbon development. before discharge. The Company implements rainwater and sewage diversion with all wastewater not directly dischargedMeanwhile we have established the EHS policy of “Comply with regulations and prevent pollution people-oriented and safe externally. After meeting pipe acceptance standards through the park sewage treatment system it is discharged tooperations joint participation and collaborative progress energy conservation and continuous improvement ” committed municipal sewage networks. Meanwhile the Company regularly entrusts qualified third parties to conduct in-factory testing

to building a compliant green low-carbon safe and harmonious efficient and low-consumption modern enterprise. This and issue sewage testing reports with results satisfying EIA approvals discharge permit requirements and legal emission

policy serves as the purpose direction and code of conduct for environmental compliance management and is the formal standards.commitment of the Company's top management to the overall objectives of environmental compliance management and Key Wastewater Management

improvement of EHS performance. Work in 2025

Risk Management

Sunwoda comprehensively considers internal and external factors and stakeholder requirements fully integratingenvironmental compliance risks in core areas including emissions into the Company's overall risk management system. The Sewage station renovation transforming and Adopt the “adjustment-Fenton reaction-Company has established a full lifecycle risk prevention and control mechanism deeply analyzing environmental risks and optimizing the front-end integrated reaction tank p r imary sed imentat ion tank -anox ic

potential opportunities in business development systematically assessing and continuously monitoring their relevance to in the pretreatment equipment room dismantling tank-anaerobic tank-aerobic tank-MBR

sustainable development strategy to ensure robust advancement of environmental compliance risk management. the electrocoagulation system and replacing it membrane-clean water tank+reclaimedwith ferrous sulfate dosing to precipitate large water reuse system” process to achieve zero

Sunwoda implements strict control over emissions of various pollutants including waste gas wastewater and waste. While amounts of suspended solids in raw water external discharge of industrial wastewater.ensuring all emission activities comply with statutory standards and regulatory requirements the Company actively adopts a preventing sludge from entering the subsequent

series of advanced management measures to continuously reduce pollutant emission intensity striving for gradual reduction biochemical system without precipitation and

of emission volumes thereby continuously mitigating potential environmental impacts and contributing to environmental affecting overall water production.protection.About Message from About Annual Sustainability Sustainable Double Materiality

73 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 74

Waste Management Emission Management Indicators and Targets

Sunwoda attaches great importance to every stage from raw material procurement production operations to final product

disposal ensuring that waste input generation and emissions throughout the full process minimize environmental impact. 2025 Group Emission Management Targets 2025 Target Achievement

Company waste is divided into hazardous waste and general waste requiring all subsidiaries to comprehensively inventory

waste types sources and quantities within the enterprise establish detailed waste lists and monitor waste generation Organized waste gas emission compliance rate

transfer and disposal. In terms of hazardous waste reduction management Sunwoda implements precise measures across 100% 100% compliance rate

multiple dimensions including material selection process optimization and employee training systematically advancing Unorganized waste gas emission compliance rate

waste management work. In the material selection phase the Company prioritizes green environmentally friendly raw and Waste Gas 100% compliance rate

auxiliary materials to reduce hazardous waste generation at the source. In terms of process flows Sunwoda continuously 100%

optimizes production processes to minimize the use of raw and auxiliary materials thereby effectively controlling waste

generation. If pollution accidents or other sudden pollution incidents occur during the collection transportation or storage Waste gas emission compliance rate 100% 100% compliance rate

of hazardous waste the Company will implement procedures in accordance with the Emergency Response Management

Regulations. Relevant departments and individuals shall immediately take measures to prevent or mitigate pollution hazards

promptly notify units and residents that may be affected by pollution and report to the environmental protection department Wastewater Wastewater emission compliance rate 100% 100% compliance rate

at the accident location.Meanwhile the Company regularly educates employees on waste and hazardous waste disposal common knowledge Unit capacity general waste generation Reduced by 5%

requiring classified disposal when handling waste in accordance with relevant requirements. In 2025 the Company decreases by 5% annually

conducted over 45 professional training sessions on hazardous waste management covering topics such as waste types Hazardous Waste Compliance Disposal Rate

source reduction classification labeling transfer requirements storage requirements and compliant disposal. These efforts Waste 100% Disposal rate 100%

comprehensively enhanced employees' awareness and practical skills in waste management.Solid waste reduction rate decreases by 2% Reduced by 2%

C as e 2025 Hazardous Waste Leakage Disposal Drill compared to previous yearOn September 4 2025 to thoroughly implement the safety production policy of “Safety First 100% pass rate for waste gas wastewater and solid waste testing. Qualification rate 100%Prevention-Oriented Comprehensive Management” Sunwoda conducted a hazardous waste leakage

emergency drill. The drill covered accident occurrence accident reporting personnel response on-site

disposal of hazardous waste leakage site recovery and emergency treatment simulation for employee

eye injuries aiming to continuously enhance employees' safety and environmental awareness as well as

their ability to respond to emergencies avoiding personal injuries and environmental pollution accidents

caused by accidental hazardous waste leakage. 2025 Key Performance

Industrial Wastewater Discharge Volume Total Waste Gas Emissions

223165.941030510.7917

cubic metres ten thousand cubic metres

Total Hazardous Waste Total Non-hazardous Waste

4664.871877234.20

tonnes tonnes

Emergency Team Wearing Protective Equipment Entering Leakage Site

Metrics and Targets

Sunwoda establishes and improves a full-chain environmental management system continuously strengthening systematic

disclosure and dynamic tracking of emission management indicators and reduction targets ensuring all operational

activities strictly comply with national and local environmental protection regulations committed to achieving coordinated 17 During the year due to the expansion of the Company's production capacity total waste gas emissions increased accordingly.development of economic benefits and environmental protection and driving enterprise green development to higher levels. 18 During the year due to the expansion of the Company's production capacity total hazardous waste increased accordingly.About Message from About Annual Sustainability Sustainable Double Materiality

75 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 76

Energy Management 2025 Key Performance

Cumulative total of newly added bringing the cumulative total to

Sunwoda strictly complies with the requirements of laws and regulations including the Energy Law of the People's Republic

of China and the Energy Conservation Law of the People's Republic of China and has formulated internal management National Green Factories Municipal Green Factories

regulations including the Energy Management Manual covering all operational locations promoting the construction and 5 2 10 Green Factories19

improvement of the energy management system and enhancing its own energy management level. The Company has

established a systematic energy-saving and carbon reduction management mechanism forming an Energy Conservation

Committee directly led by the Chairman to coordinate and deploy energy efficiency improvement work across the Company.At the beginning of each year the Company conducts systematic review and adaptive updates of relevant systems or Energy Management Targets

organizational arrangements based on actual changes in business divisions and subsidiary structures and staffing. In 2025

the Company established an Expert Review Committee composed of senior experts from various internal fields to provide Based on global layout and business growth needs Sunwoda establishes scientific and forward-looking energy management

evaluation and technical support for energy-saving projects at each base. Additionally the Company regularly organizes targets driving the energy structure toward green low-carbon transformation through systematic planning and full-chain

energy management audit work to continuously identify opportunities for energy use improvement. In 2025 the Group collaboration.launched an energy management system maturity assessment project identifying 284 energy-saving potential points on-

site of which 113 have been established as key implementation projects for 2026.During the reporting period the Company newly added 4 branch companies passing ISO 50001 Energy Management System

certification bringing the total to 19 stably operating production bases with ISO 50001 certification and completed energy Medium and Long-term Strategic Energy Conservation Planning Targets

management system maturity evaluations for 32 units.Furthermore Sunwoda advances the “new three transformations” concept of energy management standardization energymanagement leanization and energy management intelligentization establishing the “1 organization N supports N+1 2024 2025 2026 2027 2028 2029foundation” energy conservation strategic model. The model takes a unified digital platform as the foundation driving

standardized execution of energy conservation work scientific analysis of energy consumption data and systematic

integration of energy-saving technologies through core organizational drive and multi-system collaboration optimizing Base Year Energy Energy Energy Energy Unit output energy

production energy consumption and operating cost structure. consumption per consumption per consumption per consumption per consumption decreases

unit of output unit of output unit of output unit of output

“1 Organization N Supports N+1 Foundation” Energy Conservation Strategic Model by 3% year-on-decreased by 4% decreased by 4% decreased by 4% decreased by 3% year achieving Group

year-on-year year-on-year year-on-year year-on-year carbon peak by 2029

Energy Management Department

Energy Management Team Energy Technology Team System Compliance Team

Organization

Medium and Long-term Strategy (2024-2029) 2025 Group Energy Management Targets 2025 Target Achievement

Adopt the “1” organization “N” supports “N+1” foundation strategic

implementation plan creating standardized lean and intelligent energy Unit output energy consumption of each business division

conservation operation models and subsidiary decreases by 4% (main target)(3C Decreased by 4.04% compared with 2024

segment Winone Precision Technology segment etc.)

● Renewable energy use ● Supplier green production ● Personnel technical

● Energy Management System ● Energy conservation digital development Unit output comprehensive energy consumption

● Energy digitalization and intelligence transformation Decreased by 7.45% compared with 2024

● Energy conservation training and publicity ● Facility technology optimization decreases by 6% (main target)(Power segment)

Supports ● Energy conservation assessment system ● Energy conservation best

evaluation practice promotion platform

Laws and regulations identification Energy management center Number of energy conservation projects ● ● 507 energy-saving technical transformation

● Water conservation system construction (management+technical renovation) (Powe ≥260 projects completed.Energy-saving benefits achieved: RMB

Sunwoda Energy Energy Conservation Energy Conservation ISO 50001 Energy Energy conservation Annual energy-saving benefits: RMB 90 millionSteward Cockpit Expert Review Technology Research Management project promotion 111.21 millionPlatform Committee Institute System platform

Foundation

Energy monitoring Project Technical assurance Energy conservation implementation management Industry benchmark 19 Includes national provincial and municipal green factories.About Message from About Annual Sustainability Sustainable Double Materiality

77 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 78

Energy Digitalization Management Air compressor waste

Air compression system heat recovery for high- Heat transfer oil variable

Sunwoda establishes an energy conservation and emission reduction path focused on key energy consumption and emission pressure reduction project temperature aging frequency project

links. This path takes improving energy use efficiency and optimizing energy structure as pillars through technological workshop

innovation and deepened carbon footprint management practice implementing multiple initiatives including heat systemical

recovery phasing out high-energy-consuming equipment expanding renewable energy application constructing photovoltaic

power generation projects and optimizing administrative processes effectively achieving refined energy management. In

●●●

2025 the Company's “Shenzhen 100-Megawatt Multi-Energy Coupling Virtual Power Plant Project” was selected as a national Optimizing parks with excessive Recovering waste heat from Based on production

second-batch green low-carbon demonstration project. air compressor supply pressure. air compressor operation requirements and boiler

Each production workshop and delivering it to the high- operating conditions changing

adjusted pressure reducing temperature aging workshop the heat standby circulation

Sunwoda Energy OS Energy Digitalization Platform valves to lower supply pressure reducing energy consumption fixed -frequency oil pump to

to the minimum allowable of dehumidifiers and electric variable frequency operation.The Company has constructed and operates a digital system covering the full process of energy and value for production. Savings heating systems. Savings of Savings of RMB 1.443

resource use-the Sunwoda energy OS Energy Digitalization Platform. This platform has achieved real-time of RMB 914900 electricity RMB 948400 electricity million electricity consumption

operation monitoring of key energy-consuming systems including photovoltaics energy storage charging consumption reduced by consumption reduced by reduced by 2.7468 million

piles air compression and refrigeration and comprehensively integrates statistics and analysis functions 1.307 million kWh CO2 1.432 million kWh CO2 kWh CO2 emissions reduced

for multi-category energy consumption data including electricity water cooling heat and gas forming a

emissions reduced by 693.49 emissions reduced by by tCO e.unified energy and environmental data management foundation. Furthermore the platform can directly 759.82 1457.45 2

track and manage key ESG indicators such as energy consumption water consumption and green power tCO2e. tCO2e.usage and through deep integration of equipment-level operation data scientifically calculates indirect

energy consumption and emission factors related to the “three wastes” during production processes thereby

providing data insights for precise control and continuous optimization of environmental performance. High-efficiency lighting Coating machine oven 10kV air compressor

fixtures introduced to heating “sleep mode” replacement energy-

Energy Conservation Technical Renovation brand library energy saving improvement saving improvement

The Group has established a special review committee composed of internal senior experts to provide full-process

professional support from technical assessment to implementation for energy conservation improvement projects at each ● High-efficiency lighting ● The coating equipment oven ● Introduced 10kV Tier 1 energy

production base. fixtures were introduced to the enters sleep mode (fan and efficiency centrifugal air

Construction Center’s brand heating off) during production compressors to replace 5

Key Energy Conservation Technical Renovation Projects in 2025 library to achieve design-based downtime with preset Tier 3 energy efficiency 380V

energy savings from the source heating start time to ensure screw compressors reducing

Energy-saving Dehumidifier temperature avoiding increased energy temperature compliance annual electrical losses by optimization of electrode 5%

cutting and recycling control optimization and

Workshop dust removal consumption lamp replacement upon resumption and avoid and equipment operation and

suction device energy-saving project

fan improvement and labor costs in later stages. production capacity loss. maintenance costs. Savings of

In 2025 a total of 11088 Savings of RMB 365700 RMB 960000 electricity

high-efficiency lighting sets were electricity consumption consumption reduced by

replaced reducing electricity reduced by 537800 kWh

● Installing solenoid valves on the ● The original factory's initial million kWh ● Following investigation and 1.3714consumption by million

intake pipeline of the suction operating scheme had verification the central dust 1.4714 CO2 emissions reduced by CO2 emissions reduced by

device with signals connected in energy-saving potential; two removal system still met production kWh and saving RMB 1.0006 285.36 tCO2e. 727.66 tCO2e.parallel to the cylinder position adjustments were made to the requirements after frequency million. CO2 emissions reduced by

sensor signals controlled by mid-process dehumidifiers- reduction debugging while ensuring 780.72 tCO2e.PLC for on/off operation; when first reducing the MCA heating wind speed and negative pressure

the sensor signals the PLC temperature from 70°C to 26°C reached critical standards; after

simultaneously outputs signals to and second increasing the comprehensive assessment

the solenoid valve to activate the mid-cooling temperature and 10 units were retrofitted with 2025 Key Performance

suction device and when there is deactivating the rear heater. operating frequency reduced to 35-

no signal the solenoid valve closes Savings of RMB 1.5628

and the suction device stops. 45 Hz. Savings of RMB 2.8546 million electricity consumption

394500 million electricity consumption

● The Company completed 507 energy-saving management/technical renovation projects achieved annual

Savings of RMB reduced by 2.3679 million

electricity consumption reduced by reduced by 3.965 million energy-saving cost reduction of RMB 111.21 million saved 24126 tonnes of standard coal achieved kWh CO2 emissions reduced by

548000 kWh CO kWh CO emissions 2 emissions reduced by 1256.40 annual energy savings of 152194.50 MWh and reduced CO2 emissions by 96109 tCO2e2 tCO2e.

290.77 2103.83 tCO2e.reduced by tCO2e.About Message from About Annual Sustainability Sustainable Double Materiality

79 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 80

Clean Energy Transition 2025 Key Performance

Addressing climate change and practicing sustainable development have become global consensus with clean energy

transition becoming a key strategic direction for enterprises to build core competitiveness. Sunwoda incorporates this trend Total Comprehensive Energy

of the times into top-level development design driven by strategy to actively explore large-scale application pathways for Consumption Direct Energy Consumption Indirect Energy Consumption

renewable energy such as wind power and photovoltaics across the full production chain. The Company systematically

increases the proportion of green energy consumption advancing energy structure optimization and upgrading providing

solid support for low-carbon transformation of operations. In 2025 Dongyu Xinsheng a subsidiary of the Company reduced 379716.95 54322.37 310147.44

carbon emissions by 23277 tonnes of carbon dioxide equivalent (tCO2e) through the purchase of low-carbon biomass steam.tonnes of standard coal tonnes of standard coal tonnes of standard coal

2025 Key Performance

Comprehensive Energy Clean Energy Usage as Proportion of

the Company's green electricity usage20 total purchased green electricity and green Consumption Intensity Clean Energy Usage Comprehensive Energy Consumption

accounted for certificates reached

25.37% 371426.00 6.00 114856.68 30.25% MWh tons of standard coal per million tonnes of standard coal

yuan revenue

and photovoltaic self-generation and self-consumption21 was

124126.98 MWh

Biodiversity Conservation

Energy Conservation Culture Construction

Sunwoda upholds a high sense of responsibility and mission for biodiversity conservation around its operations actively

The Company has formulated the Individual Energy Conservation Management Regulations providing employees with and proactively following relevant environmental protection policies in operating locations including the Forest Law of the

concrete green practice reference standards and driving the deep integration of green development concepts into work People's Republic of China the Opinions on Further Strengthening Biodiversity Protection and the Ministry of Ecology and

scenarios. Meanwhile the Company carries out normalized energy conservation publicity and guidance effectively improving Environment's China's Biodiversity Conservation Strategy and Action Plan (2023-2030) to ensure close alignment between

energy conservation awareness across the workforce. company business operations and these policy orientations jointly promoting the achievement of sustainable development

goals. The Company has formulated comprehensive biodiversity conservation and deforestation prevention policy

C as e Carrying Out Energy Conservation Publicity Week Activities Building Low-Carbon Culture mechanisms clearly defining biodiversity and deforestation prevention commitment content scope of application risk and

opportunity assessment processes and stakeholder communication channels. The Strategy and Sustainable Development

From June to July 2025 the Company carried out the Committee is responsible for formulating biodiversity conservation and deforestation prevention commitments as well as

Energy Saving and Efficiency Improvement “New” supervision and review work efficiently advancing biodiversity conservation work. During the reporting period no significant

Leadership Energy Saving Publicity Week mainly including impacts on biodiversity were identified arising from the Company's production and operation activities products and

energy-saving knowledge competitions excellent project services.selection low-carbon check-in activities and sub- In all business activities products and services Sunwoda practices the principle of minimum disturbance to biodiversity

venue activities by various energy-saving branches. The ensuring they cause no significant or irreversible impacts on local biodiversity. The Company has established a comprehensive

activities integrated daily life energy-saving practices with site selection assessment system with all office spaces operating sites and industrial plants located away from nature

professional content on energy management systems conservation areas. Meanwhile they are also not established in sensitive areas outside protected areas with extremely rich

stimulating employees' enthusiasm for active learning and biodiversity avoiding any damage to original vegetation and ecosystems.promoting the transformation of energy-saving knowledge

from theoretical understanding to practical application. Energy Conservation Excellent Project Selection

This event covered 23 parks 33 business divisions/

During the reporting period

subsidiaries with employee participation rate increasing

by 8.88% compared with last year.All business divisions and production bases of the Company were located in mature industrial parks with land

nature classified as industrial and commercial land.No significant impacts on biodiversity were identified arising from the Company's production and operation

20 Green electricity usage ratio=(Total purchased green electricity and green certificates+Self-generated and self-consumed photovoltaic electricity)/ activities products and services.

(Total purchased electricity+Self-generated and self-consumed photovoltaic electricity).

21 Photovoltaic installation and self-generated and self-consumed electricity statistics include centralized photovoltaic and distributed photovoltaic.Society

Partnership

People-Oriented Shared

Prosperity 02

Sunwoda adapts to changes in policies and industry development taking R&D innovation

responsible supply chain management and industry cooperation as key directions continuously

consolidating the foundation for enterprise steady development. With customer needs as the

orientation the Company continuously enhances customer trust and long-term value by creating

high-quality products and services and improving customer service systems. Meanwhile Sunwoda

pays attention to employee development and occupational health and safety actively participates

in rural revitalization and social welfare actions promoting positive interaction between enterprise

growth and social value creation through collaborative efforts with all parties.Key ESG Topics in This Chapter

R&D and Innovation Responsible Supply Chain Management

High-Quality Products and Services Industry Cooperation

Talent Management and Development Rural Revitalization and Social Contribution

Occupational Health and Safety

Response to Sustainable Development Strategic Goals

Accountability

Partnership

Response to SDGs GoalsAbout Message from About Annual Sustainability Sustainable Double Materiality

83 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 84

Innovation-Driven Development Three Major Innovation R&D Domain Deployments

● Sunwoda focuses on R&D and manufacturing of consumer-grade polymer cells

To keep pace with technological changes in the new energy industry respond to diverse customer needs and create and small power cells continuously improving key product indicators including

green products and solutions covering the full lifecycle Sunwoda adheres to innovation-driven development continuously energy density charging speed widetemperature range performance and form

improves R&D governance systems consolidates R&D capability foundations focuses on core technology breakthroughs factor design. Company products cover smart terminals such as smartphones

actively fosters an open innovation ecosystem and internal innovation atmosphere and continuously enhances technological tablets laptops smart wearables drones power tools smart mobility and

competitiveness and sustainable development momentum. smart home devices. In 2025 through optimizing slurry preparation processes

the Company solved agglomeration and uniform dispersion challenges of

ultrafine powders achieving efficient high-quality preparation of semi-solid

Governance Consumer-grade

Battery Domain batteries with over 70 patent applications filed for consumer-grade semi-solid

battery related technologies.Sunwoda strictly complies with national and local laws and regulations regarding intellectual property information security

green development and environmental protection and embeds compliance requirements into the full R&D process through

institutional construction. We have formulated policy documents including the Management Regulations on Innovation

and Management Regulations on Reward for Technical Innovation to continuously motivate and guide employees to better

leverage their innovation capabilities.● In 2025 Sunwoda Power achieved innovation across its multi-dimensionalThe Company adopts a three-dimensional strategy of “industrial chain collaborative innovation technology reuse combined product matrix covering full scenarios of land sea and air. In the passengerwith innovation and advanced manufacturing supported by standards” to build an innovation system covering material vehicle sector the flashcharge battery evolved to 4.0 achieving kiloampere-

systems system integration intelligent manufacturing and business management as well as a multi-level cross- level charging and 12C peak charging; the widetemperaturethreshold battery

departmental collaborative low-cost high-efficiency R&D innovation governance structure. The Board of Directors coordinates operates from 70℃ down to-40℃ fearless of extreme cold and heat; low-

R&D innovation strategic directions with the Strategy and Sustainable Development Committee underneath responsible voltage 12V and 48V ultra-highpower batteries deliver 25C ultra-high power at-

for supervision and guidance. The Innovation Research Institute as a functional department focuses on forward-looking 25℃. In the commercial vehicle sector the Company launched 1.4MW ultra-

research and innovation coordination jointly forming professional project teams with relevant departments to provide fast charging batteries and ultra-longlife solutions achieving ultimate efficiency

platform-based support for R&D innovation across business segments ensuring R&D activities advance efficiently under

Power Battery and full lifecycle economy under high-intensity operations. In frontier domains strategic alignment and compliant controllability.Domain the Company released 400Wh/kg polymer all-solid-state batteries achieving

balance between ultra-high specific energy and intrinsic safety; simultaneously

Strategy launched the “Sunwoda Yunxiao” aircraft battery with proprietary soft solid-

state technology balancing high safety high specific energy and continuous

Sunwoda treats R&D innovation as an important component of long-term development strategy implementing the "Battery+" ultra-highrate discharge capabilities.concept continuously increasing investment in clean technology and frontier technologies promoting deep integration

of standardized energy management lean energy management and intelligent energy management and facilitating

high-quality development of the new energy industrial chain. The Company adheres to customer needs orientation and

technological innovation as the core driving force continuously strengthening technological deployment in three major areas

of consumer-grade batteries power batteries and energy technology through material system innovation system structure ● Sunwoda's energy storage products mainly cover grid energy storage

optimization and green manufacturing upgrades and introducing advanced concepts such as "AI+R&D" to continuously household energy storage and commercial&industrial energy storage. In 2025

improve product performance safety and environmental friendliness. the Company launched 684Ah and 588Ah energy storage cells introducing

high-capacity cell product portfolios through innovative technology providing

Power Battery Domain high-safety high-quality high-reliability products and solutions covering multi-

scenario demands for generationside gridside and userside applications. The

684Ah energy storage cell achieves over 20 years service life with excellent

system integration adaptability compatible with 10-foot 20-foot and 30-foot

container solutions effectively improving deployment speed and operational

Energy Technology economy. The 588Ah energy storage cell adopts winding processes fully

Domain

Energy validated by the market with energy efficiency up to 96.5% and combines Consumer-grade Technology innovative low lithium loss technology to calmly address capacity degradation Battery Domain Domain issues during long-term operation.About Message from About Annual Sustainability Sustainable Double Materiality

85 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 86

Sunwoda builds a complete R&D system covering upstream material R&D midstream cell and system design downstream Fostering Innovation Ecosystem

application scenarios and recycling utilization around key links of the new energy industrial chain forming five major

R&D teams composed of consumer products power cells and power battery systems energy storage smart hardware Sunwoda continuously strengthens R&D innovation network construction building diverse and open R&D cooperation

and intelligent manufacturing. The Company actively introduces technologies including green manufacturing intelligent models. Through collaborative innovation with upstream and downstream industrial chain partners universities and research

manufacturing and artificial intelligence improving R&D efficiency and product quality while achieving energy conservation institutions the Company introduces external innovation resources continuously stimulating technology R&D vitality. In

and consumption reduction. industry-university-research collaboration the Company has established long-term stable cooperative relationships with

multiple universities around key technology directions and frontier domains promoting scientific research achievement

transformation and high-level talent cultivation.C as e Energy-Type Cell Products Powering Intelligent Ship Upgrade

Postdoctoral Research Workstation

This integrated marine battery solution for

energy storage and propuls ion features Sunwoda jointly established a national postdoctoral research workstation with South China University of Technology. Relying on

energy-type cell products adopting a three- the workstation the Company maintains close cooperative relationships with multiple universities and research institutes such

layer architecture design with comprehensive as jointly training postdoctoral researchers with Tsinghua University Tongji University South China University of Technology

Dalian University of Technology and South China Normal University with research directions covering multiple professional

alarm and protection mechanisms meeting the fields including materials science physical chemistry and mechanics. Meanwhile through joint training of full-time and part-time

needs for battery system capacity growth and engineering master's and doctoral students we build an industry-university-research collaborative education system reserving

reliability improvement in marine scenarios high-level and specialized talent for enterprise development. To date the Company has cumulatively recruited and trained 187

actively facilitating the green and intelligent postdoctoral researchers effectively enhancing the overall scientific research capability and innovation level of the R&D team.upgrade of pure battery-powered ships and

series hybrid ships. The project is currently in

the R&D stage with products expected to be Industry-University-Research Cooperation Platform

applied in low-speed high-capacity cost-priority

scenarios such as tour boats cargo ships and Marine Battery Sunwoda continuously deepens industry-university-research cooperation with universities and research institutions successively

tugboats. cooperating with multiple universities to build joint laboratories and R&D centers conducting systematic research around

advanced energy storage technology sodium-ion battery core materials carbon neutrality innovation technology and other

directions. In 2025 the Company further expanded its industry-university-research cooperation network jointly building

multiple battery technology joint laboratories with Shenzhen University of Advanced Technology and South China University of

Technology carrying out collaborative research in anode technology electrolyte development solid-state battery systems and

C as e High-Performance Power and Energy Storage Battery Solutions battery pack development. Simultaneously the Company cooperated with Shenzhen Technology University to advance drone

power system technology R&D expanding the application of new energy technology in emerging application scenarios.Centered on diverse application scenario requirements Sunwoda continuously advances power battery Incubating Innovation Projects with Dalian University of Technology Actively

and energy storage battery technology innovation creating a battery product system balancing high C as e Promoting Achievements Transformation

performance high safety and reliability. In the energy storage domain the Company develops energy

storage batteries with long life high consistency and comprehensive certification systems meeting stable In 2025 the Company jointly advanced multiple innovation projects with Dalian University of Technology.operation needs across multiple scenarios. In the power and two-wheeler domains through fastcharging The CT project developed a series of CT system products achieving rapid scanning and detection of cell

technology system integration optimization and intelligent BMS application the Company significantly product production and quality conditions. The hydrogen power project developed long-endurance and

improves charging efficiency range performance and usage safety providing efficient and reliable high-payload hydrogen-powered drone power system products for inspection logistics and other fields.battery solutions for transportation and energy applications. Among these the hydrogen storage cylinder for drones and the hydrogen energy drone storage/supply

hydrogen integrated system were successfully applied in hydrogen-powered drone flight tests. The long-

endurance hydrogen power system in collaboration with Yiweite Aviation Technology completed long-

endurance version hydrogen-powered drone modification ground and flight testing.Energy Storage Battery Power Battery Two-Wheeler Battery

Hydrogen Power System Hydrogen Power System Applied to DronesAbout Message from About Annual Sustainability Sustainable Double Materiality

87 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 88

2025 Key Performance Risk Management

In 2025 we received the following awards for innovation:

Sunwoda has a strategy and market research team to monitor market products and R&D directions establishing a technology

and innovation risk management and control system covering the full R&D process identifying assessing and addressing

technical compliance information security and intellectual property risks in the R&D process through institutionalized and● In the 2025 China ● In the 2025 National ● The “Shenzhen 100-Megawatt process-based approaches.Electrotechnical Society Science Disruptive Technology Multi-Energy Coupling Virtualand Technology Award selection Innovation Competition the Power Plant“ Demonstration At the institutional level the Company has formulated the New Industry Project Management Regulations Business Impactthe project “Key Technologies project “Advanced Battery Project was rated as a and Risk Contingency Process Management Regulations on Intellectual Propery Risks and Information Security Riskand Equipment for Thermal- Online High-Speed Multi-Mode national Green Low-CarbonElectric Fault Early Warning and CT Technology and Equipment” Advanced Technology Assessment Management Regulations to systematically manage R&D-related risks putting forward clear management

Control in PV-Storage-Charging won the First Prize. Demonstration Project. requirements for project initiation and R&D process risks material and process compliance R&D system-related riskSystems” won the First Prize. contingencies intellectual property infringement risk prevention and R&D information and data security.At the process level in 2025 the Company systematically updated R&D management specifications further clarifying

and solidifying four types of R&D development models including the ODM Product Development Process OBM Product

● “Key Technologies and ● The “Sunwoda Hengneng Gen2” ● The "Active Capacitive Stylus

Applications of High-Power heavy-duty truck dedicated (Capacitive Touch Pen)" Development Process OEM Product Development Process and JDM Product Development Management Regulations

Long-Life Hybrid Power ultra-fast charging high-capacity was listed as a Guangdong achieving coverage of different product types and business scenarios and realizing pre-identification and dynamicBatteries” was rated as the battery released in 2025 won Provincial Manufacturing management of R&D risks through multi-department collaboration.Second Prize of Shenzhen the “Transportation Industry Single Champion.Science and Technology Reputation Heavy-Duty Truck Conducting Thematic Industry and Market Analysis Strengthening ExternalProgress Award. Ultra-Fast Charging Battery” C as e Environment Risk Identificationaward in the 8th “ZhiyuanCup” Transportation Industry Sunwoda conducts regular thematic industry and market analysis combined with regional market

Reputation Commercial Vehicles and industry development characteristics strengthening forward-looking identification of external

and Components Selection. environment risks. In 2025 the Company issued biweekly industry reports and monthly analysis reports

continuously tracking policy changes technology trends and market dynamics covering over 4000

person-times; carried out more than 10 in-depth industry research projects systematically analyzing the

Cultivating an Innovation Atmosphere track prospects competitive landscape and market entry risks of high-potential directions such as new

energy consumer electronics electric two-wheelers and low-altitude drones providing solid basis for

Sunwoda strengthens the cultivation of a cultural environment that values innovation encourages innovation and supports business expansion and strategic layout; responded to 13 business department demands through internal

innovation using innovation award evaluation to promote improvement and strength through assessment. Meanwhile coordination mechanisms and fed research results back to relevant R&D and business teams providing

the Company optimizes and upgrades the R&D innovation incentive mechanism improving evaluation standards from five decision support for R&D direction optimization.dimensions including novelty and originality innovation difficulty transformation and promotion difficulty economic benefits

and knowledge accumulation and standardization. Through a combination of segment-based preliminary evaluation and

cross-segment comprehensive review the Company optimizes the 2025 Group Innovation Award evaluation process further Metrics and Targets

enhancing the scientific nature and fairness of innovation evaluation.Sunwoda establishes and improves an indicator management system centered on R&D investment intensity technology

Leveraging a well-established talent development system and innovation platform Sunwoda has continuously enhanced its achievement output innovation project advancement and collaborative innovation effectiveness systematically

technological R&D capabilities while cultivating and delivering a large number of highly skilled professionals. The Company integrating R&D innovation goals into annual business and technology development plans and ensuring innovation strategy

has played an active role in promoting high-quality employment and innovation-driven entrepreneurship and has been implementation through phased target setting and tracking evaluation.recognized as an “Advanced Collective for Employment and Entrepreneurship” in Guangdong Province.

2025 Key Performance

Company R&D Investment Proportion of Operating Revenue

RMB 43.79 100 million 6.92%

R&D Personnel Proportion of R&D Personnel

10306 persons 16.18%About Message from About Annual Sustainability Sustainable Double Materiality

89 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 90

Product Quality and Safety Quality Decision-

Making Achieving intelligent quality control decision-making through QMS platform

Quality Analysis SPC management real-time monitoring Quality data collection and analysis KPI management

Sunwoda treats quality management as an important foundation for sound enterprise operation and sustainable Quality Control/Data Collection

development. Centered on the full product lifecycle from raw material procurement manufacturing to finished product Supplier Quality Incoming Material In-Process Finished After-Sales

delivery and after-sales service the Company continuously improves the quality management system and processes Data CorrelationManagement Quality Quality Product Quality System

strengthens hazardous substance control and non-conforming product prevention and promotes quality culture construction

● First article ● Shipment

through multi-dimensional initiatives improving product stability and reliability enhancing customer trust and brand ● Supplier shipment ● Inspection standard ● Customer inspection inspection ● OA: Review results

competitiveness and shaping a responsible corporate image. reports maintenance complaint ● Patrol ● Finished ● ERP: Delivery notes/supplier/

● Supplier monthly ● Incoming material ledger

inspection product hold customer information

performance inspection ● Customer

● Red team ● Return ● MES: Work orders shipment

● Supplier 8D ● Overdue inspection return ledger

Governance testing inspection information process recordsreports ● Non-conforming ● Major quality

● Abnormal ● Abnormal ● Dispatch: Receiving information

● Claim records review incidents

Review Review

Sunwoda establishes a quality management governance structure covering the Group and all business segments ensuring Quality

unified advancement and effective implementation of quality management work through clear management responsibilities Improvement Customer complaint 8D analysis Corrective and preventive action statistics

and institutional requirements. The Company sets up the Quality Center as a dedicated management institution for

product quality management responsible for quality management system construction and operation coordinating quality Foundational Support

management system process execution system audits and continuous improvement. Standard Equipment and gauge

Inspection data upload Infrastructure construction

management management

The Company takes the Quality&HSF Manual as the guiding framework building an institutional system covering full-process

quality&hazardous substance control and system operation construction providing unified standards for quality management ● Material standard ● Data source: Data interoperability

across business segments. Through a combination of stable institutional operation and continuous upgrading in key areas management ● Equipment and ● Automatic value retrieval:

● QC Equipment Data

the Company continuously consolidates quality governance foundations and improves the adaptability and effectiveness of ● Sampling plan gauge ledger Automatic acquisition

● IPQC Equipment Data

quality management. setting ● Measurement ● Decision rules: Rule maintenance● QA Equipment Data

● Defect code analysis MSA ● Automatic early warning: Decision

management mechanism

Strategy

In terms of quality system certification the Company continuously advances system construction and audit work conductingSunwoda builds a systematic quality management system around five modules of “quality decision-making quality analysis comprehensive internal audits of the quality management system annually to promptly identify issues and take measures.quality control quality improvement and foundational support” driving the transformation of quality management from In 2025 the Group organized and completed system expansion audits for Sunwinon Winone and Shenzhen DE. Power

experience-driven to data-driven. further improving the breadth of quality system coverage and operational maturity. Among these ISO 9001/IATF 16949

quality management system certifications cover 100% of stably operating production bases and IECQ QC 080000 hazardous

substance management system covers 100% of stably operating production bases in the consumer-grade and smart

hardware segments.ISO 9001 Certification Certificate IECQ QC 080000 Certification CertificateAbout Message from About Annual Sustainability Sustainable Double Materiality

91 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 92

Quality Management Process Quality Culture Construction

The Company has established quality management processes covering the full process and monitors and evaluates process Sunwoda promotes quality culture construction and cultivates quality culture atmosphere through diversified approaches.operation through the “completeness rate improvement rate compliance rate” three-rate management mechanism. Through We simultaneously advance quality culture publicity multi-dimensional cultural activities quality-themed training quality

a combination of business division self-inspection and key process cross-audits the Company examines process execution improvement competitions and quality brand building guiding employees to integrate quality awareness into daily work

from multiple perspectives. To improve quality management efficiency and standardization Sunwoda independently and management practices and promoting mutual reinforcement among quality concepts corporate culture and business

developed and continuously operates the Quality Management System (QMS) achieving recording statistics analysis development.and traceability of quality data throughout the full product lifecycle providing digital support for quality early warning and

continuous improvement.Dimensions Work Content 2025 Actions and Performance

Quality Management Special Actions ● 178 publicity drafts designed 300 posters distributed

to various business divisions; 11 official WeChat articles

Sunwoda carries out Lean Six Sigma and QCC activities advancing systematic improvement around key links of product and on quality and safety published with cumulative

business processes continuously optimizing processes and methods to enhance operational efficiency and product quality views exceeding 36000; first enterprise-level quarterly Creating a strong quality culture

while further improving customer satisfaction. Quality Culture publication “Quality Journal” launched with offline

Publicity atmosphere through diversified publicity methods cumulative distribution exceeding 3000 copies

and online cumulative views exceeding 10000; first

short video account “Master Talks Quality” launched

pushing 3 series with 24 episodes with views

Building Supplier Quality Improvement Platform Strengthening Supplier Quality

C as e exceeding 60000.Management

● Successfully held Quality Month activities with theTo continuously improve quality levels in Sunwoda's 3C segment Sunwoda Intelligent Technology Multi-dimensional theme “Innovation Deepens Quality Improvementjointly built a supplier quality improvement platform with the Quality Center achieving forward shift Cultural Activities Quality Month Activities Digital Intelligence Empowers Enterprisein supplier quality management. In March 2025 the Company launched empowerment training for Development.”

suppliers conducting systematic training on five major courses including quality management systems

Lean Six Sigma Yellow Belt QCC and 31 Quality Elements. Meanwhile in 2025 we successfully held the

● Organized 46 sessions of Quality Knowledge Lecture

Supplier QCC Achievement Presentation Competition achieving the goals of promoting training through Hall series courses quality case excellent project

competition and promoting learning through competition and attaining win-win cooperation.Quality Knowledge Lecture Hall sharing QCC&Six Sigma&Lean basic knowledge

Series Courses process&management system standard basic

Quality-themed

Training Special Course on Pathways for

knowledge courses.Digital Empowerment of High- ● The instructor systematically shared cutting-

Quality Development edge concepts and practical insights on digital

empowerment of quality in the special course

attracting 417 employees to participate.● A total of 582 proposal improvement activities

Fifth Proposal Improvement RatingQuality participated in the “Fifth Proposal Improvement Rating ConferenceImprovement Conference” activities.Competitions Third Supplier QCC Presentation ●Conference 32 projects from 28 suppliers participated in the “ThirdSupplier QCC Presentation Conference.”

● Reducing Anode Coating Wrinkle Defect Rate won the

2025 Shenzhen Quality Gold Award.Quality Brand

Building Management Team Exchange ●

Developing an Adaptive Laser Welding Intelligent

Conference Control System won the Silver Award and Best

Supplier Quality Training Innovation Achievement Award.About Message from About Annual Sustainability Sustainable Double Materiality

93 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 94

C as e Holding Quality and Innovation Activities Strengthening Internal Innovation Atmosphere 2025 Key PerformanceIn 2025 Sunwoda held Quality Month activities with the theme “Innovation Deepens Quality ImprovementDigital Intelligence Empowers Enterprise Development”. During Quality Month the Company held a National Level

series of quality-themed activities with cumulative participation exceeding 18000 people a year-on-

● Participated in 2025 National Quality Team Activities and won First-Class Achievement

year increase of 38%. Among these the online quality knowledge quiz and lottery activity attracted

●

6935 participants a 56% increase in participation scale compared to last year. The Sixth Quality Skills Participated in 2025 China Quality Innovation and Quality Improvement Achievement Exchange

Competition had 9555 participants a year-on-year increase of 14%. Activities and won Professional-Level Achievement

Meanwhile the Company held Quality Case Competitions and Quality Innovation Competitions receiving

232 practical cases and 70 innovation projects from 18 business divisions/subsidiaries. Among these 31

topics with promotion value were included in the quality innovation platform and Liwinon Energy's ORT

Digital Intelligence Application project won the Gold Award in the Quality Innovation Competition.National Quality Team Activities First-Class National Quality Improvement Activities

Achievement Professional-Level Achievement

Provincial and Municipal Level

● Participated in 2025 Shenzhen Excellent Quality Management Achievement Activities and won 1 Gold

4 Silver and 1 Bronze

● Participated in Zhejiang Province Jinhua City Excellent Quality Team and Trustworthy Team

Achievement Release Conference and won 2 First Prizes 2 Second Prizes and 1 Third Prize

Quality Innovation Sharing Platform Quality Month Online Quality Knowledge Lecture

Launch Conference Hall

Shenzhen Quality Management Team/Quality Trustworthy Team Achievement Release Conference

Client Side

● Received the Perfect Quality Award and Excellence Award from Lenovo Group

● Received the Outstanding Quality Award from vivo

Quality Innovation Competition Award Ceremony ● Won First Prize in QC team improvement results presentation competition organized by a key customerAbout Message from About Annual Sustainability Sustainable Double Materiality

95 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 96

Risk Management Hazardous Substance Management Links

Centered on product quality and safety Sunwoda continuously improves full-process risk management mechanisms. We New Material Introduction Auxiliary Material Management in Production Process

have formulated the Product Audit Management Regulations Corrective and Preventive Action Management Regulations Management ● The Company conducts compliance reviews of hazardous

HSF Risk Assessment and Risk Management Regulations and Internal Audit Management Process further strengthening ● At the new material introduction substances for product auxiliary materials used in the

control over raw material process and product compliance to ensure continuous satisfaction of regulatory and customer stage the Company reviews to ensure production process and regularly conducts sampling and

requirements. At the process level the Company strengthens identification isolation and disposal of non-conforming compliance with hazardous substance testing during use.products through standardized incoming material in-process and finished product inspection as well as customer complaint management stipulated in the

handling mechanisms preventing problematic products from flowing out. For customer complaints the Company has internal Environmental Management

established a standardized closed-loop management process tracking the entire process from acceptance and analysis to Substance Technical Standards

rectification implementation and effectiveness verification and feeding back processing results to customers through the Non-Conforming Material Handlingprohibiting the use of materials that

8D report mechanism to ensure thorough problem resolution and drive continuous improvement (for complaint handling ● do not meet requirements. Once materials not meeting hazardous substance control

processes related to product quality please refer to the “Creating Customer Value” chapter). requirements are discovered during production the Company

will immediately stop using such materials while isolating

inventory work-in-process and finished products. If client-side

Imported Material Management products are involved the Company will immediately execute

Hazardous Substance Management ● For imported materials the Company product recall procedures. For suppliers with environmental

regularly conducts sampling non-conformity incidents monthly performance ratings will be D.The Company has formulated the Hazardous Substance Management Regulations implementing differentiated testing inspections of incoming material New product introduction from such suppliers is prohibited until

strategies based on risk levels conducting regular testing and assessment of raw materials process changes and compliance. relevant improvement measures are implemented.equipment and auxiliary materials that may contact products for potential hazardous substances ensuring products meet

environmental protection and customer requirements. Once non-conformities are discovered the Company will immediately

take measures including suspension isolation and necessary recalls and implement strict management of relevant suppliers. Non-Conforming Product Control

In terms of material admission management Sunwoda conducts systematic assessment and review of material hazardous

substance compliance through the GPCM system and only materials that pass risk review can be incorporated into product We have formulated non-conforming product control processes including the Incoming Material Quality Control Process In-

applications strengthening hazardous substance control from the source and ensuring products meet relevant regulatory Process Quality Abnormality Handling Process Finished Product Quality Control Process and Customer Complaint Handling

and customer requirements. Process implementing full-process control over product quality to ensure non-conforming products are promptly identified

handled and improved. During the reporting period the Company had no product recalls due to product quality issues and

Sunwoda commits to strengthening the management of hazardous substance reduction and elimination (HSF). In accordance no incidents of penalties from regulatory authorities for violations of product and service quality and safety related laws and

with applicable laws regulations and customer requirements we will continuously optimize internal control standards to regulations.ensure that products comply with RoHS REACH Regulation (EU) 2023/1542 on batteries and waste batteries and other

environmental requirements. We will prioritize the selection of environmentally friendly materials during product design and

material introduction continuously evaluate feasible alternative technical solutions actively explore opportunities to reduce Non-Conforming Product Control Process

or phase out hazardous substances and publicly disclose relevant work and progress toward targets.During the reporting period Sunwoda controlled incoming materials and manufacturing processes through full material

declaration halogen and RoHS 2.0 testing etc. We also tested restricted substances required by REACH Regulation (EU)

2023/1542 on batteries and waste batteries and other regulations in finished products such as batteries. All test results were

within the standard limits meeting regulatory and customer environmental requirements.Reporting and

Confirmation Identification Isolation Handling Improvement

Confirm non- Identify batches Remove from Provide temporary Provide long-

conforming products; of inspection stocking areas label measures assess term measures

if involving non- non-conforming and isolate. whether at-risk addressing root

conforming products noting products have causes and

hazardous substance non-conforming flowed out. conduct horizontal

content expand phenomena. investigation.investigation scope

to the supply chain.We upgraded the non-conforming product control mechanism through informatization means relying on QR code/PACK

barcode traceability systems to achieve full-process traceability from material launch manufacturing to finished product

shipment. When abnormalities are identified at inspection links the system can automatically associate relevant batches and

implement interception and isolation effectively preventing non-conforming products from entering subsequent processes or

flowing to the market improving the timeliness and accuracy of quality control.About Message from About Annual Sustainability Sustainable Double Materiality

97 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 98

Metrics and Targets Creating Customer Value

Sunwoda establishes and improves an indicator management mechanism centered on quality management system

operation process execution effectiveness risk prevention and control effectiveness and capability building integrating

quality goals into annual business management to steadily improve quality management levels.Sunwoda always takes customer needs as the core continuously improving service quality and service experience striving

to create long-term value for customers. Through building a service management system covering multiple links combined

with standardized responsible marketing management the Company safeguards customer legitimate rights and interests

Quality Management Targets providing strong support for sound enterprise operation and sustainable development.

2025 Quality Management Targets 2025 Target Achievement

Governance

0 major product quality incidents Achieved Sunwoda incorporates customer service management into the Company's overall business and sustainable development

governance system improving the standardization and execution of customer service management through institutional

100% completion rate of product quality training Achieved construction and organizational coordination. The Company has formulated and implemented the Customer Complaint

Handling Process and Customer Service Management Process around customer servicerelated work clarifying responsibility

division for key links including customer complaint handling service response and problem tracking ensuring customer

demands can be handled promptly and effectively.

2025 Key Performance

Amount of Damage Involved in Safety and

Quality Major Liability Accidents Related to Number of Product Recalls

Product Inspection Pass Rate Products and Services Due to Product Quality

99.52% 0 0 Main Nodes of Customer Complaint and Service Management Process RMB ten thousand times

Customer Quality Complaints Root Cause Analysis

Customer Evaluation Improvement Plan

No

Customer Acceptance

Yes

Customer Satisfaction Implement ImprovementAbout Message from About Annual Sustainability Sustainable Double Materiality

99 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 100

Strategy Responsible Marketing

Sunwoda upholds the “customer first” service philosophy continuously improving customer management and service Sunwoda integrates responsible marketing concepts into customer service and market activity management continuously

strategies around customer demand changes and business development realities. The Company has formulated the standardizing marketing behavior and safeguarding customer legitimate rights and interests. The Company ensures

“2485” response principle ensuring timely response problem orientation and continuous improvement integrating quality marketing activities are conducted truthfully and compliantly through internal management requirements and supervision

service concepts into sales delivery and after-sales through institutionalized customer management mechanisms driving mechanisms avoiding misleading or improper marketing behavior.coordinated improvement of customer service capabilities and business development. To improve employees' professionalism and compliance awareness in marketing and customer communication the Company

continuously organizes marketing skills and compliance training for employees covering product knowledge customer

communication laws and regulations and professional ethics helping employees accurately and objectively convey product

“2485” Response Principle and service information to customers. Meanwhile the Company guides employees to strengthen risk awareness and

establish correct marketing concepts through case analysis and warning education reducing improper marketing risks from

the source.Within 2 hours Within 24 hours Within 48 hours Within 5 days

Root cause analysis

First response Emergency measures and countermeasure Long-term solutions and second response formulation and third preventive measures

response

Risk Management

Centered on risks that may arise during customer service processes including poor communication delayed response

and insufficient problem closure Sunwoda establishes customer service processes and complaint handling mechanisms

implementing full-process management of customer inquiries and complaints.Customer Service Management

The Company has established diversified customer feedback channels including customer service hotlines online platforms

and email with customer service hotlines remain open 24 hours a day 7 days a week ensuring customers can conveniently

raise inquiries and opinions and receive timely responses. Metrics and Targets

In terms of customer satisfaction management the Company has established a customer service closed-loop management

mechanism tracking and reviewing customer feedback problems regularly summarizing and analyzing them and improving Sunwoda establishes and improves a management indicator system centered on service response efficiency customer

product design or production processes based on common problems guiding relevant departments to continuously focus satisfaction and problem resolution effectiveness around customer service work integrating customer service goals into

on and improve customer service levels. Meanwhile the Company regularly organizes customer satisfaction surveys annual business management and performance assessment continuously improving service levels through continuous

systematically collecting customer evaluations on product quality delivery service response and after-sales support through monitoring and improvement.questionnaires and interviews. In 2025 all business divisions and subsidiaries completed customer satisfaction surveys with

comprehensive customer satisfaction results further improving compared to the previous year. The Company uses statistical

software to analyze survey results and based on survey results issues Corrective and Preventive Reports for non-compliant 2025 Key Performance

items and implements improvement measures in specific responsible departments addressing customer problems in a

targeted manner and driving continuous service optimization.Sunwoda treats customer information security and privacy protection as important contents of customer service Service Response Rate Customer Satisfaction Rate Problem Resolution Rate

management strictly fulfilling confidentiality obligations agreed with customers. The Company strengthens relevant position

employees' awareness of customer information protection responsibilities through information confidentiality training and

establishes corresponding information protection and isolation mechanisms internally to prevent information crossover risks 100% 93.24% 100%

between different projects. For specific needs of some customers the Company further strengthens confidentiality protection

of customer materials and production processes through measures such as setting up independent production areas.About Message from About Annual Sustainability Sustainable Double Materiality

101 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 102

Building a Happy Workplace Sunwoda Human Resources Management Strategic System

Mission and Vision

Sunwoda adheres to the principle of putting people first and regards employee growth as the cornerstone of enterprise Corporate Strategic Goals Corporate Values

development. We are committed to building inclusive and resilient organizations continuously optimizing talent mechanisms

and achieving common progress for individuals and organizations. By improving the employee rights protection system Corporate Business Goals and Organizational Structure

improving career development channels and deepening employee care measures the company continues to create a fair Key Areas

warm and dynamic work environment effectively enhancing employees' sense of gain belonging and happiness and

injecting lasting talent vitality into sustainable development. Business Strategies and Core Business Processes Job Analysis

Protection of Employees' Rights and Interests Employee Compensation Performance Competency Talent Relations Management Management Assessment Development

Job Level Performance Goals Competency Model Talent Inventory

Sunwoda systematically standardizes key processes including recruitment and termination compensation and benefits and Labor Relations Management

Total Compensation Performance Qualification Training and

working hours and leave building diversified and smooth democratic communication channels actively listening to employee Employee Care Management Evaluation Requirements Learning

voices and ensuring every employee's legitimate rights and interests are truly respected and protected. Personnel Stability Incentive Mechanism Feedback and Competency Competency

Design Improvement Certification Development

Atmosphere

Employee Employment Management Motivation Management Competency Management

Sunwoda always treats employee rights protection as the cornerstone of sustainable enterprise development insisting on Cadre Team/Expert Team/Worker Team/Morning Star Team

building a legal fair and inclusive employment management system fully complying with national laws and regulations HR Digitalization/HR Control System

including the Labor Law of the People's Republic of China and the Labor Contract Law of the People's Republic of China and

continuously improving the human resources management system to effectively safeguard all employee legitimate rights and

interests. In 2025 the Company further revised the Employee Rights Protection Policy Promotion Management Regulations

and Rewards and Punishments Management Regulations Conducting Labor Employment Risk Compliance Thematic Empowerment Training adding humanized clauses on the basis of clear reward and C as e Deepening Labor Compliance Capability Building

punishment standards strengthening the warmth and enforceability of the system. Simultaneously the Company formulated

the Training Management Regulations optimizing training content design and duration arrangements to improve the

precision and effectiveness of employee development support. In 2025 to deepen labor employment compliance capability building Sunwoda conducted labor

employment risk compliance thematic empowerment training with over 100 professional line and

Sunwoda consistently adheres to the core conventions management personnel participating systematically improving managers' legal awareness and

principles of the International Labour Organization firmly practical capabilities in labor contract management overtime compliance and employee relations

opposing the recruitment of child labor forced labor human handling.trafficking and any form of slavery. The Company has

formulated the Regulations on Child Labor Rescue Minor

Worker and Female Employee Protection and through strict

entry review mechanisms eliminates the employment of child

labor and underage workers at the source strengthening

employment compliance management and firmly opposing

any form of forced labor. Meanwhile the Company fully

implements statutory working hours and holiday systems

standardizes overtime approval processes and safeguards

employees' rights to rest and leave.To ensure effective policy implementation the Company

has established an employee rights protection governance

structure covering the full process of policy formulation

execution supervision and feedback optimization. The

Company implements an annual policy update mechanism

regularly assessing and revising relevant systems according

to established schedules with supporting policy tracking

Sunwoda 2025 HRBP Empowerment Activities

mechanisms to achieve closed-loop management from

“formulation-publicity-execution-evaluation.”

Recruitment and Deployment

HR Shared Services

Strategic Process Personnel

Culture Organization ManagementAbout Message from About Annual Sustainability Sustainable Double Materiality

103 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 104

Conducting Condolence Activities Participating in Disability Public Welfare Practice

Diversity and Equality C as e to Help Persons with Disabilities Integrate into Society

Sunwoda is committed to creating an equal diverse and inclusive workplace environment insisting on zero tolerance for In November 2025 Sunwoda conducted a condolence visit to the Disabled Persons' Home in Yuzhai

any form of discrimination ensuring fairness and justice in recruitment compensation promotion and other processes. The Township Pujiang County Jinhua City gaining in-depth understanding of the living conditions and

Company comprehensively safeguards employee legitimate rights and interests promotes equal pay for equal work for men employment support mechanisms for people with disabilities. Currently this Disabled Persons' Home has

and women and continuously builds a fair and warm organizational ecosystem. formed an integrated “care+employment” service model cumulatively serving 21 people with disabilities

and providing livelihood security effectively reducing family care burdens.Sunwoda has officially released and implemented policy documents including the Employee Rights Protection Policy and

Recruitment Management Regulations explicitly incorporating “building a diverse and inclusive work environment” into In the same month Sunwoda actively participated in disability public welfare practice jointly with

core management requirements emphasizing respect for differences in employee personality capabilities and growth partners visiting the Disabled Persons' Home in Yuzhai Township Pujiang County Jinhua City to conduct

experiences and driving inclusive culture implementation from the institutional source. The Company upholds a zero-tolerance condolence activities donating living materials and engaging in in-depth exchanges with the local

attitude toward discrimination ensuring that personnel decisions are not influenced by irrelevant factors such as age gender Disabled Persons' Federation and operating institutions. Through the dual-engine approach driven by

ethnicity or religion and insists on equal pay for equal work for men and women. We have formulated the Attendance “nursing care+employment” 21 persons with disabilities were helped to obtain stable positions and social

Management Regulations to safeguard employee statutory benefit leave management mechanisms. In 2025 we revised the security achieving self-care and value creation. The enterprise matches suitable work content according

Benefits Management Regulations to further expand care dimensions explicitly providing additional leave such as pregnancy to individual capabilities promoting the implementation of “work-based nursing care” practice. Meanwhile

leave breastfeeding leave and parental leave forming a flexible support system covering the full maternity cycle. through material donations and resource docking the Company continuously empowers institutional

development. This model received high recognition from the Pujiang County Disabled Persons' Federation

Employee Support Programs becoming a exemplary case of government-enterprise collaboration in advancing disability undertakings

fully demonstrating Sunwoda's responsibility in promoting social inclusive development.● In terms of disability care we actively practice a collaborative model of “Disabled Persons'Federation guidance+professional operation+enterprise empowerment” expressing our 2025 Key Performance

commitment to continuously participating in public welfare undertakings for the disabled.The Company scientifically arranges suitable positions according to the capability

characteristics of persons with disabilities helping them realize self-worth through labor. ● In 2025 the Shenzhen campus “Love Mom's Room” cumulatively served 167 person-times of female

Special Group Rights ● The Company cares for female employees in the infant nursing period establishing a employees in the infant nursing period.Protection “Love Mom's Room” in the Shenzhen campus living area and providing thoughtful services

for female employees in the infant nursing period for five consecutive years effectively ● In 2025 psychological health support services were provided to over 200 person-times.addressing practical needs with exclusive private safe and convenient spaces.● The “Workers' Home” project completed planning and entered the construction stage expected to be put

into use in early 2026.● A full-time psychological counseling room has been established with professional

psychological counselors stationed by the labor union to provide normalized psychological

support and emotional counseling for employees. 641

● The “Workers' Home” project is being advanced planning and constructing a

Employee Mental comprehensive worker service space integrating leisure learning and communication in 19397 30367

Health the living area creating an important carrier for employee belonging and happiness.By gender By age

(persons) (persons)

Building “Love Mom's Room” and “Workers' Home” Dual Platforms Constructing 44299 32688 Under 30 years old

C as e Full-Cycle Employee Care System Male 30-50 years old

Female Over 50 years old

To effectively respond to female employees' practical needs during childbirth and childcare stages

Sunwoda has established the “Love Mom's Room” at the Shenzhen campus for five consecutive years

providing private safe and convenient spaces for nursing and milk storage. Over five years it has 2835 191 822 397

cumulatively served 167 female employees in the infant nursing period becoming a “warm harbor” trusted 11099 9497

by employees. 36759 42674

In 2025 the Company further upgraded its employee care system launching the “Workers' Home” By employee 12812 By education Below college 10306 professional Production personnel

construction project planning and building a comprehensive service space integrating reading fitness (persons) College category Technical personnel

psychological counseling and interest activities strengthening employee belonging and happiness. (persons)Bachelor Administrative

The “Workers' Home” is expected to be officially opened in early 2026 providing employees with an personnelMaster

all-weather multi-scenario sustainable physical and mental support platform driving the enterprise's Sales personnelDoctor

transformation from “managing people” to “empowering people” demonstrating a people-oriented Financial personnel

sustainable development philosophy. Number of employees of Sunwoda by categoryAbout Message from About Annual Sustainability Sustainable Double Materiality

105 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 106

Compensation and Benefits Meanwhile Sunwoda also provides diversified non-compensation benefits for all formal employees.Sunwoda treats compensation and benefits management as an important lever for attracting motivating and retaining Sunwoda Non-Statutory Benefits System

talent committed to building a scientific fair and transparent compensation and benefits system. We strictly comply with

national relevant laws and regulations continuously optimize compensation structures improve welfare guarantees and

closely bind employee interests with company development through medium and long-term incentive mechanisms achieving Monthly funds Activity funds available for departments monthly.common growth of enterprise and employees.Department Year-end dinner Funds for year-end gatherings or celebration activities.Sunwoda Compensation and Benefits System Benefits funds

Travel funds Financial support for department annual travel activities.Fixed Salary Job Level Salary

Variable Salary Performance bonus commission project bonus quarterly bonus overtime pay year-end bonus

Long-term Incentive Equity stock options dividend rights etc.Holiday Gifts or subsidies for Spring Festival Mid-Autumn Festival and

benefits other holidays.

2025 Key Performance Commercial Providing additional commercial insurance coverage for

insurance employees

Diversified Including over ten items such as night shift subsidy off-site

subsidies accommodation subsidy meal subsidy and seniority subsidy.Formal employee five social insurances and Commercial insurance

one housing fund coverage coverage

Individual Annual physical

100% 100% Benefits examination

Providing annual health examinations for employees.Excellence

awards Giving awards to employees with excellent performance.Housing and

transportation Providing housing subsidies transportation subsidies etc.Sunwoda has formulated and strictly implements the Compensation Management Regulations and Social Insurance benefits

and Housing Fund Management Regulations clarifying compensation structure welfare items payment standards and

execution processes ensuring standardized implementation of various policies. The Company strictly implements national Featured Such as talent housing government subsidies etc.statutory five social insurances and one housing fund payment policies providing comprehensive social security for all formal benefits

employees. Meanwhile for special groups such as retired rehired personnel the Company uniformly configures commercial

insurance including accident insurance and life insurance achieving seamless risk coverage and effectively safeguarding the Furthermore Sunwoda continues to deepen its medium-and long-term incentive system focusing on the development needs

legitimate rights and interests of all types of workers. Sunwoda's welfare system coverage continues to expand extending of core talent. For personnel at supervisorlevel and above senior engineer-level backbone staff and manager-level and

to labor dispatch personnel ensuring employees of different employment forms enjoy fair and accessible welfare support above management personnel the Company has implemented multiple phases of restricted stock incentive plans. By the end

demonstrating the enterprise's respect and care for “all workers.” of 2025 the Company has cumulatively implemented five restricted stock incentive plans effectively stimulating the initiative

and sense of responsibility of management teams and key position talent promoting sustainable corporate development and

long-term talent retention. In 2025 Sunwoda completed two unlockings of second-category restricted stocks: one granted in

Sunwoda Statutory Benefits System 2024 and unlocked in 2025 covering 690 employees with 7079 629 shares; and one granted in 2022 and unlocked in 2025

covering 1006 employees with 1656 100 shares. Additionally in 2025 the Company unlocked stock options granted in 2022

Five Social Comprehensive coverage of pension insurance medical insurance covering 689 eligible employees with 4992 800 exercisable shares.Insurances and One unemployment insurance work injury insurance maternity insurance and

Housing Fund In 2025 the Company further strengthened the linkage mechanism between executive compensation and ESG performance housing provident fund. incorporating environmental social and governance key indicators into the executive annual performance assessment

system including but not limited to core environmental and safety performance indicators related to carbon energy safety

Enjoy statutory holidays and paid leave in accordance with national

Statutory Holidays production responsibility environment and product quality and safety issues. This mechanism ensures that while driving Statutory regulations. business growth executives effectively assume sustainable development responsibilities achieving coordinated improvement

Benefits

of business performance and ESG performance.Non-Statutory BenefitsAbout Message from About Annual Sustainability Sustainable Double Materiality

107 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 108

Democratic Management Conducting Workers' Congress Comprehensively Safeguarding Employees' Decision-C as e Making Participation Rights

Sunwoda has established a sound democratic management governance structure formulated and strictly implements In 2025 the Second Session of the Second Workers' Representative Congress of Sunwoda was convened with

internal systems including the Sunwoda Freedom of Association and Collective Bargaining Management Regulations and 105 employee representatives attending. Centered on the theme of “Democratic Review of Company Systems”

Sunwoda Workers' Representative Congress Management System clarifying employees' rights to freely form and join trade the congress concentrated on reviewing and passing eight system revision cases including the Safety Incident

unions and participate in collective bargaining and strengthening democratic supervision mechanisms. Through carriers Management Regulations and Safety Rewards and Punishments Management Detailed Rules covering occupational

such as workers' representative congresses and trade union organizations the Company ensures employees' rights to know health and safety compensation and benefits and labor employment. Among these the safety system explicitly

participate express and supervise in major matters involving their vital interests are fully protected. incorporated employee reporting mechanisms and hazard identification responsibilities into performance assessments

driving the transformation of safety governance from “management-driven” to “employee co-governance.” In the same

year the Third Workers' Representative Congress was convened with 95 representatives democratically electing Xiao

Democratic Communication System Guangyu as employee representative director achieving employee representative entry into the corporate governance

layer. This mechanism incorporated key issues such as safety rewards and punishments and special working hours into

democratic procedures comprehensively safeguarding employees' participation rights in major decisions.Workers' Representative Congress Normalized Communication Mechanism Employee Grievance Channel

Sunwoda consistently upholds a “people-oriented” management philosophy attaching great importance to the protection of

● Regularly convened. ● Employee exchange symposiums employees' legitimate rights and interests. The Company continuously improves employee grievance and rights protection

employee reception days and union mechanisms building smooth secure and trustworthy communication and reporting channels. We have established a labor

● Major matters involving employee hotlines are held irregularly. union hotline (51880) and an employee relations hotline (0755-23285858) providing 24-hour online services. Employees

compensation and benefits labor may submit opinions suggestions or grievances via telephone email or online platforms. Regarding violations such as

safety and health and management ● Timely transmission and effective discrimination or harassment the Company maintains a “zero-tolerance” attitude and assigns dedicated personnel to track

system revisions are incorporated response to employee demands. cases. Meanwhile the Company has formed employee task forces to support employees in safeguarding their rights through

into democratic decision-making external grievance channels establishing a dual protection system combining internal and external grievance mechanisms.procedures. We continuously improve prevention mechanisms carry out warning education through typical cases and establish reporting

channels. For any form of harassment insult or verbal abuse the company has established clear disciplinary measures. Upon

verification severe penalties such as a major demerit or termination of employment will be imposed based on the severity of

the situation.In 2025 Sunwoda convened workers' representative congresses employee symposiums and reception days fully To enhance employee engagement and organizational belonging the Company continuously optimizes employee

safeguarding employees' rights to know participate and supervise in key management matters. Through diversified engagement and satisfaction survey mechanisms. In 2025 the engagement assessment system integrated Gallup Q12 core

indicators and Maslow's hierarchy of needs theory constructing a 20-driver-factor assessment model including 12 benchmark

channels employee opinions were collected reviewed and discussed significantly improving organizational transparency questions and 8 needs-level questions to evaluate employee job satisfaction and engagement. The model diagnoses the

and employee trust. organization and measures employees' personal value perception goal alignment and stress frequency from four dimensions

of “personal value” “personal growth” “personal belonging” and “personal survival.” The survey covered 6 business

segments and over 50 departments with continuously expanding sample sizes comprehensively reflecting employees'

C as e Conducting Employee Exchange Activities Listening to Employee Voices authentic experiences in dimensions including work rewards leadership effectiveness development opportunities and

organizational culture.In 2025 the Company conducted over 40 employee exchange symposiums and over 10 employee

reception day activities collecting over 200 employee suggestions at symposiums. The Company attached 2025 Engagement Targets:

great importance to feedback issues rapidly conducting classification sorting and analysis clarifying the

nature of issues and responsible departments and following up on solutions. ● Establish overseas employee (Vietnam India) engagement communication mechanisms.● Achieve employee engagement of 4.17 (including Vietnam India).● Achieve employee engagement survey response rate of 92% (for employees with over 6 months of service

including Vietnam India).

2025 Key Performance

In 2025 we achieved:

Labor dispute cases settlement rate: 100% ● ● Employee engagement survey coverage:

mediation success rate: 100%. 96.43%.Employee Symposium ● Verified discrimination or harassment incidents: 0. ● Employee engagement average score: 4.26.About Message from About Annual Sustainability Sustainable Double Materiality

109 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 110

Employee Grievance Channel Employee Appeal Handling Process.● Employee Relations Hotline: 0755-23285858

Receive Verify Appeal Result Case Closure

● Employee Care Hotline: 0755-29516888 ext. 51880 Raise Demand Demand Demand Handling Feedback and Filing

● Appeal stepbystep to superior Email Address: Raise demands through internal Discretionary leaders; if no reasonable Hotline Employees and external response

response on-site appeal to ● ER@sunwoda.com communication to invalid

Employee Relations Union and channels demandsOn-site Email ●

other departments gonghui51880@sunwoda.comAppeal Appeal

N N

Appeal

Channels Organize Verification ● Log in to OA → HR Portal → I Y Y

Want to Appeal → Employee OA and record

and Follow-up on Confirm Form

Mailbox ● Union Chair Mailbox HR

Appeal demand confirmation Employee handling result ledger for

Grievance → Fill in grievance Appeal information of employee Grievances with employee traceability

information → Submit demands

Enterprise Group

WeChat Communication

Employing Follow-up on

●

● Log in to Enterprise WeChat Symposium Employee Department Grievances

→ Workbench → HR Self- ● Employee Reception Day

Service → Employee Relations

→ Employee Grievance → Fill Timely Response Coordinated Processing Closed-loop Tracking

in grievance information →

Submit

● Actively respond timely follow-up ● All parties coordinate control progress ● Employee review result confirmation

Employee Appeal Handling Standards.Focus on Timeliness

● Principle: Resolve case ● Synchronize processing ● Formulate and implement

within 3 working days progress with employee rectification plan

010203

Time-limited Processing Time-limited Response Time-limited Rectification

Risk Prevention and Control

● Formulate risk list ● Improve systems and ● Promote internal improvement

organize employment processes to prevent drive sound company

risk self-inspection 01 risks 02 development 03

Identify Risks Fill Gaps Promote ImprovementAbout Message from About Annual Sustainability Sustainable Double Materiality

111 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 112

Employee Training and Development 2025 Key Performance

Talent Attraction

Campus recruitment number growth

Sunwoda adheres to “fair and just” recruitment principles scientifically planning talent needs and building a diversified Campus recruitment number compared to previous years

globalized talent introduction system. Guided by strategic development the Company achieves high-quality matching

of talent supply through two major channels of social recruitment and campus recruitment expanding various methods persons

including internal referrals external platforms special recruitment fairs talent markets dispatch outsourcing and school- 1479 63%

enterprise cooperation.Sunwoda implements the Internal Referral Incentive Management Regulation opening referral channels to all employees. This

system clarifies referral processes incentive standards and compliance requirements encouraging employees to actively

recommend outstanding talents who meet position requirements and identify with corporate values for the Company. After

the referred person passes the interview and formally joins the referrer will receive cash rewards according to standards Promotion and Assessment

effectively stimulating employees' enthusiasm and sense of responsibility in participating in talent introduction. In 2025

Sunwoda conducted veteran recruitment fairs and overseas recruitment activities. Sunwoda attaches great importance to talent development committed to building a multi-level comprehensive talent

echelon system. Sunwoda optimized the job level system dividing employees into three categories: management

Overseas Employee Support professionaltechnical and skilled establishing unified and smooth career development channels and clarifying valuecreation-

oriented promotion mechanisms. By constructing comprehensive evaluation standards covering integrity performance

In terms of talent localization strategy the Company continuously advances localized recruitment practices under global experience and capability and standardizing promotion review processes the Company establishes three-level review

industrial layout. For overseas industrial parks we carry out the following key measures. mechanisms at company level segment level and department level ensuring fair just and transparent promotion processes.The Company establishes a performance assessment system covering all employees implementing multi-cycle evaluationsmonthly quarterly and annually. For ordinary employees a dual-dimension evaluation model of “self-assessment+superior● Equipped with professional local HR teams: Deeply engage in local talent markets conduct precise evaluation” is adopted determining performance grades and coefficients based on key indicators such as attendance rate

recruitment and cultural adaptation work ensuring talent introduction is highly coordinated with regional and work performance used for performance salary calculation forming an effective floating incentive mechanism. Annual

business development. assessment adopts the 360-degree evaluation method comprehensively evaluating employee annual performance rating

performance grades and closely linking results with annual excellence awards promotion performance bonuses and other

● Expatriate employee support: Adhere to the “adaptability” principle with unified domestic development elements.recruitment. Candidates complete position cognition and cultural integration training before expatriate

arrangement with comprehensive integration services including language support living arrangements

and cross-cultural adaptation counseling to ensure smooth transition and long-term development of Employee Growth

expatriate employees.To better promote the implementation of the Company's overall development strategy and human resources strategy

Sunwoda continuously optimizes employee training and development strategic planning and empowerment systems

covering all full-time employees. The system focuses on core groups including strategic scenarios key areas cadres

technical and skilled talents and new employees with supporting process and resource construction strengthening support

for the Group's key businesses and leading talents.We conduct employee training with supporting strategy

implementation promoting business development and 2025 Key Performance

enhancing human capital value as the core. For employees

and management personnel of different positions and

levels we carry out training projects covering multiple areas

including new employee onboarding technical capabilities

and leadership development integrating online and offline Total training hours

formats to improve training flexibility and effectiveness.In terms of external training the Company provides hours

customized professional technical and management 1829783

training programs for customers and partners around

business expansion and customer service strategies“Beisen 2025 China Talent “51job 2025 Outstanding “Zhaopin China's Best Employer helping external partners improve capabilities and achieveManagement Excellence Award” Employer of the Year” National TOP 100” coordinated development.About Message from About Annual Sustainability Sustainable Double Materiality

113 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 114

Sunwoda Talent Empowerment System Learning Platform Construction

Sunwoda deeply implements digitalization strategy continuously advancing deep integration of training systems and

●

Strategic Supporting “strategy” implementation

information technology building a learning platform with technology empowerment and data-driven as the core promoting

Scenario Digitalization Intelligence Internationalization Youth Advanced

refined training management and personalized learning paths comprehensively supporting employee growth and

●

Research Class.. . Focusing on key strategic businesses and sustainable enterprise development.Empowerment leading talents

The Company independently developed the “Sunwoda Learning Platform” learning platform which has been built and

continuously optimized currently covering all full-time employees of the Company with complete training management and

learning support functions. Through digital means it effectively solves key needs such as customer audits and information

R&D Quality Project Manufacturing Engineering

● Organization empowerment system security management ensuring compliance and security of the learning process. The “Sunwoda Learning Platform”

Key Domain oriented to business and positions platform has currently launched functions including points management position learning path maps and external training IPD Six Sigma Project Lean Equipment

Empowerment ……Innovation Management Production Transformation Enhancing business operational management providing employees with clear traceable growth paths connecting the learning and application chain. ●

Experience capabilities Through systematic course resources and intelligent recommendation mechanisms the platform supports employees in

Inheritance autonomously planning learning plans according to position needs achieving precise docking of personalized development

and organizational talent capability matching.Knowledge Management PlatformSunwoda has built an internal think-tank knowledge management platform positioned as “Gathering the wisdom of allSunwoda family members to co-create Sunwoda's future”. Since the initial functions went live in April 2025 the platform hasGrassroots Middle-level ● Based on the Company's unified “cadre adopted an agile model of development and operation in parallel. In 2025 all function development was completed and fullyCadre capability standards” promoted. The platform completed 18 functional sections and over 200 functions covering core modules including homepage

Empowerment Management Transition Team Culture Inheritance Management Layered and categorized empowerment knowledge base forum community video Q&A and encyclopedia fully supporting knowledge accumulation sharing and ●

Management Seminars Case Analysis certification strengthening the core force collaboration. In 2025 the platform cumulatively integrated over 200000 knowledge entries achieved 20000 self-deposited

knowledge entries by employees with total views exceeding 66000 covering over 40 departments and opening 47 typical

application scenarios effectively promoting systematic accumulation and efficient circulation of organizational knowledge

assets providing strong support for employee learning and innovation.● Position-oriented skilled empowerment

● Promoting training through examination Talent Succession Pipeline

Technical/Skilled Empowerment improving skills of incremental and

existing personnel Sunwoda sets multi-level training and development plans builds a systematic cadre cultivation path and establishes talent

echelons with solid basic skills helping improve talent leadership.● Inheriting cultural values cultivating new

forces

New Employees Talent Training and Development System

● Making newcomers from different

backgrounds become “Sunwoda” family

members. Stages Training Projects Main Tasks

Management Wisdom

General Advanced Research Class Precipitation and Study

Process Learning Learning Internal Learning Project Knowledge

Support Delivery Assessment Trainer

Professional Capability

Development Management Management From Squad Leader

Management to Platoon Leader and Cadre Advanced Enhancement Through

Company Commander Empowerment Business Training and Combat

● Improving organizational capabilities

digital support for efficient empowerment Focus on Transition Cadre Reserve Cadre Transition Empowerment

● Enhancing organizational learning From Backbone to Empowerment Cadre Transition Squad Leader

effectiveness Empowerment

Focus on Guidance Improve Professional

Management Trainee Skills and Project

Resource Sunwoda Learning Knowledge Teacher-course Venue and From Soldier to Program Management

Support Platform Sharing Platform Cases Equipment Backbone Capabilities

Focus on Tempering Morning Star Program New Employee

From Scholar to Corporate Culture

Soldier Staff Onboarding BaptismCultivationAbout Message from About Annual Sustainability Sustainable Double Materiality

115 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 116

Hosting the “Morning Star Campus Recruitment” to Build a Long-term Strategic

C as e Launching the “Elite Program” to Enhance Management Cadre Leadership C as e Platform for Talent Reserves

The “Elite Program” is Sunwoda's core project for cultivating young middle and senior management The “Morning Star Campus Recruitment” program launched in 2008 has become an important talent

cadres covering over 60 senior manager-level and above cadres with a project cycle of oneyear. The strategy initiative for Sunwoda aiming to build a systematic internal cultivation mechanism to reserve

curriculum system covers key modules including self-awareness mindset transformation and leadership backup forces for business development. The program provides each “Morning Star” with an open and

enhancement combined with position practice implementing dual-mentor coaching and external advisor inclusive development platform and a clear and promising growth path helping them rapidly grow into

teaching mechanisms fully respecting individual development differences and promoting personalized core strength for the Company. As of December 30 2025 the Company has signed 1516 fresh graduates

growth path implementation. Since project launch three centralized training sessions have been from the 2026 cohort continuously injecting new vitality into the organization and consolidating the talent

successfully completed effectively improving management cadres' strategic thinking and comprehensive foundation for sustainable development.leadership capabilities injecting new momentum into the Company's middle and senior management

echelon construction.Sunwoda “Morning Star Campus Recruitment”

Sunwoda “Elite Program”

Industry-Education Integration Development

Sunwoda deeply practices industry-education integration strategy oriented by industrial demands promoting deep

integration of educational resources and enterprise practice. The Company has established an Industry-Education Integration

Organizing the “Management Trainee Program” Systematically Cultivating Future Department specifically responsible for cultivating new craftsmen. Through innovative practices such as the “Four-PillarC as e Grassroots Management Backbones Model” and “Thriple Blue Plans” the Company systematically connects enterprise production standards and technical skill

requirements with teaching segments of educational institutions building a talent cultivation system with unified standards

The “Management Trainee Program” is Sunwoda's strategic talent project for future development shared resources and dual-teacher joint cultivation. Through various methods including co-building courses developing

covering over 100 fresh graduates with a training cycle of 2.5 years. Designed according to unified textbooks and constructing practical training bases the Company continuously improves the cultivation quality of skilled

standards and requirements through systematic course training personalized position practice full- talents delivering high-quality position-suitable talents for industrial cluster development powerfully promoting school-

process coaching by senior mentors priority development opportunities and diversified class activities enterprise collaborative talent cultivation toward high-quality development new stages.the project achieves “training-combat integration comprehensive experience”. The project is committed to

cultivating management trainees into grassroots managers (supervisors/managers) with practical combat “Four-Pillar Model” Structure The Company co l laborates wi th educat iona l

institutions to build integrated industry-education

capabilities continuously delivering high-quality management talents for the Company and consolidating The Company develops occupational standards based curricula based on established occupational standards

organizational development foundations. on the technical skills and professional competencies al igning teachingstandards with occupational

required by specific job positions orjob families ensuring standards teaching contentwith industry needs and

standards align with actual workplace requirements. teaching processes with production processes.Position-Based Standard Setting Standard-Based Curriculum Development

Four-Pillar

Model

Job-Oriented Training Environment

Curriculum-informed instructor Development Establishment

Guided by high-quality curriculum requirements the According to the technical skills and professional

Company selects and develops a group of highly qualities required by occupational positions (groups)

qualified specialized and capable technical experts the Company has established three types of training

Sunwoda “Management Trainee Program” and educators empowering both corporate mentors and bases as preliminary and transitional stations

school teachers. and strengthening its dual-instructor for cultivating new craftsmen solidifying a high-

teaching workforce. This emphasizes cooperation with qualityand rapid growth platform.educational institutions tobuild a dual-instructor team

through mutual integration.About Message from About Annual Sustainability Sustainable Double Materiality

117 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 118

C as e Launching the “Dream Realization Plan” to Assist Employee Capability Enhancement Employee Care

To expand employee career development space and improve overall enterprise talent quality Sunwoda Sunwoda builds a “Four-in-One” corporate culture communication system forming a multi-dimensional communication matrix

in 2025 relied on the Shenzhen Federation of Trade Unions “Dream Realization Plan” to deeply advance through official WeChat public accounts short video matrix Sunwoda People publications and cultural communication

employee academic qualification improvement projects. Through school-enterprise cooperation models teams.the project established specialized junior college and undergraduate classes carrying out systematic At the cultural communication level the WeChat public account and video account achieve weekly high-quality content

academic education for employees. This not only helped employees achieve academic advancement but pushes and monthly thematic planning continuously conveying corporate cultural values. The Sunwoda People publicationalso effectively improved their professional capabilities and comprehensive quality creating a sustainable with the purpose of “conveying senior management thinking telling benchmark stories and showcasing employeedevelopment model of “enterprise support employee benefit two-way empowerment”. In 2025 a total of 88 excellence” spreads cultural concepts deepens cultural settlement and enriches employees' spiritual lives. Meanwhile

employees successfully completed their studies including 63 organized by company specialized classes and the Corporate Culture Department in collaboration with multiple business departments has built a three-dimensional

25 self-registered participants covering multiple position sequences including production technology and communication network through 12 sub-communication channels releasing 554 articles throughout the year with total click-

management. through views exceeding 4.52 million forming a cultural communication effect of “spring breeze and rain silently nurturing”.Furthermore the Corporate Culture Department empowers and expands the cultural communication team (OC/Spring Rain

members/all-media/art troupe) building a 500+full/part-time cultural communication network with reach extending directly

to the front lines.In terms of feedback mechanism construction the Company conducted a corporate culture questionnaire survey for all

employees collecting 10768 valid feedback items around two dimensions of “cultural identification and perception” and

“cultural system construction”. Through establishing a “demand-response-improvement” closed-loop mechanism employee

suggestions are transformed into concrete measures for cultural construction driving corporate culture transformation from

“one-way output” to “two-way interaction” building consensus through listening and improving organizational warmth

through improvement.In 2025 Sunwoda upheld a “people-oriented” sustainable development philosophy deeply integrating employee development

with corporate growth. Centered on “building cultural centripetal force” the Company launched a company-level employee

"Dream Realization Plan" care program systematically constructing a multi-dimensional full-coverage and sustainable humanistic care system to

effectively safeguard employee rights and enrich their spiritual and cultural lives.During the reporting period Sunwoda meticulously planned 18 distinctive cultural activities across seven major categories

Hosting Shenzhen Skills Competition Building a New Platform for Industry-Education encompassing the inspiring Annual Ceremony the heartwarming “Spring Rain Action” the vibrant All-Staff Sports Meeting

C as e Integration and Talent Competition the heritage-focused Cultural Festival as well as node-specific care activities for the Spring Festival and Women's Day

balancing both ceremonial significance and universal benefit greatly enriching employees' leisure lives.In 2025 Sunwoda participated in-depth in the “Shenzhen Skills Competition – Battery and Battery System Meanwhile to extend the reach of care to every employee the Company developed 17 thematic care projects in 2025Maintenance Technician Vocational Skills Competition” attracting 108 contestants from 43 enterprises and building a three-dimensional care network covering all parks nationwide and benefiting over 70000 employees effectively

institutions across the city. The competition recreated real enterprise working scenarios with actual equipment enhancing employees' sense of belonging happiness and team cohesion.enabling teachers and students enterprise employees and university Ph. D. holders to compete on the

same stage fully demonstrating the achievements of industry-education integration. After fierce preliminary

competition 60 contestants advanced to the finals with 8 “Shenzhen Skilled Technicians” ultimately selected 2025 Key Performance

including 2 from the Sunwoda system highlighting the effectiveness of the Company's skilled talent cultivation

and effectively promoting the construction of high-skilled talent teams and industry technical exchange.The Company launched benefiting more than

17 special care programs 70000 employees

Sunwoda Employees Participating in “Shenzhen Skills Competition”About Message from About Annual Sustainability Sustainable Double Materiality

119 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 120

Organizing Parent-Child Brand Activities Promoting Family Companionship and

C as e Hosting All-Staff Sports Meeting Building Team Collaboration and Striving Force C as e Healthy Youth DevelopmentIn 2025 Sunwoda held its fourth All-Staff Sports Meeting. The event attracted over 5000 employees Targeting employees with children through brand activities such as “Child-Sunwoda Collaborative Parent-from various departments to participate actively. The sports meeting featured track and field events fun Child Activities” and “Sunshine Youth Growth Camp” the Company actively helped employee families

games online points competitions and team tug-of-war. The activities not only enhanced employees' create immersive quality time with wholehearted companionship solving the problem of unattended

physical fitness but also further promoted teamwork and friendship among teams building up striving children during summer vacation for employees from other regions and safeguarding the healthy growth

and uplifting force. of young people.Sunshine Youth Growth Camp

Sunwoda has held four consecutive sessions of the “Sunshine Youth Growth Camp” inviting employees'

children to reunite with their parents at Shenzhen and Huizhou parks. During the camp the Company

provided 80 employees' children with diverse courses including summer homework guidance music

dance painting handicrafts and safety education caring for youth growth and development.Child-Sunwoda Collaborative Parent-Child Activities

To enrich the lives of employees' children and increase companionship time between employees and theirchildren the Sunwoda Party Committee and Labor Union jointly organized seven sessions of 2025 “Child-Sunwoda Collaborative” parent-child activities aiming to create immersive quality time free from daily

chores for employee families. The activities allowed children to freely explore and unlock their potential

in the world of science while enabling parents to rediscover their children's thinking and growth through

Scene from Sunwoda Fourth All-Staff Sports Meeting interaction thereby achieving parent-child integration and mutual enhancement of competencies.Carrying Out Cultural Performance Activities Enhancing Corporate Culture Identity

C as e and Team Cohesion

Sunwoda organized over 300 employees to conduct more than 14 internal and external cultural

performance activities. Through various forms including singing and dancing situational dramas and

skits corporate culture was integrated enriching employees' identification and understanding of

corporate values through diverse expressions. While strengthening employees' sense of identity with

corporate culture the activities effectively enhanced team cohesion and created a warm positive working

atmosphere.Sunshine Youth Growth Camp

Scene from Sunwoda Cultural Performance Child-Sunwoda Collaborative Parent-Child ActivitiesAbout Message from About Annual Sustainability Sustainable Double Materiality

121 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 122

Advancing “Sunwoda Health and Vitality” Brand Building Enhancing Employee Launching “Sunwoda Heart-to-Heart” Dating Activities Helping Young Employees

C as e Physical and Mental Health and Vitality C as e Harvest Happiness and Belonging

Sunwoda introduced the “Sunwoda Heart-to-Heart” dating brand activity committed to providing

Traditional Chinese Medicine Free Clinic precise and reliable matchmaking services for single young employees. Through cooperation with quality

organizations in education healthcare technology and other fields high-quality social events are held

In 2025 quarterly “Delivering Health to Employees” themed traditional Chinese medicine free clinic allowing employees to harvest warmth and happiness on their striving journey.activities were carried out. The events attracted over 1000 employees from various departments to

participate actively. Services included pulse diagnosis medical consultation traditional Chinese medicine In 2025 four special social events were held cumulatively serving 163 single young people with 15

physiotherapy and knowledge lectures demonstrating the Company's people-oriented responsibility and successful matches. The activities emphasize quality and privacy with carefully designed interactive

care for employee health while also laying a solid foundation for sustainable corporate development. sessions creating a relaxed and natural dating atmosphere becoming a core brand for addressing young

employees' marriage needs and expanding healthy social circles.Sunwoda “Sunwoda Heart-to-Heart” Dating Brand Activity

Sunwoda “Sunwoda Health and Vitality” Traditional Chinese Medicine Free Clinic

Building a Psychological Care System Enhancing Employee Happiness and

C as e Organizational Resilience

Sports Activities

In 2025 a total of 23 sports activities were held (10 basketball games 8 badminton games 3 football By constructing an all-round “heart” defense line individual psychological capital is transformed into

games and 2 hiking activities) with total participation reaching 1000 person-times. Through high- organizational stable performance resisting risks while stimulating internal vitality ultimately achieving

frequency diversified event arrangements the activities aimed to build a normalized fitness atmosphere harmonious resonance between employee happiness and sustainable corporate development.guiding all personnel to release pressure and build physical strength through exercise and devote In 2025 the Company conducted onboarding psychological assessments and intelligent technology

themselves to work and life with higher morale and healthier conditions. psychological energy assessments; 88 one-on-one counseling sessions; 8 mental health training sessions

with cumulative service of 500 person-times; 2 themed activities with cumulative service exceeding 5000

person-times; free employee haircut activities serving over 1900 person-times; and Spring Festival stay-

put consolation visits consoling 1800 stay-put employees and visiting 420 dormitories.Sunwoda “Sunwoda Health and Vitality” Sports Activities

Sunwoda “Employee Peace of Mind Program”About Message from About Annual Sustainability Sustainable Double Materiality

123 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 124

Establishing the Catering Supervision Committee Creating a Safe Healthy and

C as e Diversified Inclusive Dining Ecosystem Occupational Health and Safety

To improve catering service quality and ensure employees enjoy healthy delicious and safe dining

experiences Sunwoda established the Catering Supervision Committee dedicated to comprehensive Sunwoda builds a sound occupational health and safety management system regularly conducting safety training and

supervision and optimization of catering services through a series of initiatives. emergency drills continuously cultivating a safety culture atmosphere strengthening emergency management and

occupational disease prevention measures effectively safeguarding employees' work and growth in a healthy and safe

In 2025 the Catering Supervision Committee carried out activities including “Food Safety Publicity” the environment.“Fourth Chef King Competition” and the “First Dragon Boat Festival Garden Party” with total participation

exceeding 6000 people enriching employees' dietary and cultural life and creating a safe and healthy

dining atmosphere. Improving the Management System

Sunwoda strictly complies with national laws and regulations including the Occupational Disease Prevention and Control

Law of the People's Republic of China the Fire Protection Law of the People's Republic of China and the Work Safety Law

of the People's Republic of China committed to building a systematic and standardized occupational health and safety

management system. The Company follows the PDCA (Plan-Do-Check-Act) management cycle continuously optimizing safety

management processes to improve management quality and efficiency. During the reporting period a total of 30 subsidiaries

of the Company successfully obtained ISO 45001 Occupational Health and Safety Management System certification marking

international recognition of our professional level in the occupational health and safety management field.To enhance safety management effectiveness Sunwoda actively promotes digital transformation of safety production

successfully launching the EHS digital management platform. The platform achieves automatic information retrieval and

update and intelligent task reminder functions in core modules including “dual prevention mechanism” “holiday safetycontrol” “special equipment and special operation management” “all-staff hazard reporting” and “occupational healthindividual file” significantly improving the timeliness and precision of risk control. Meanwhile the Company continues to

strengthen smart management platform construction achieving remarkable results in immediate elimination of fire hazards

Food Safety Publicity Activity Dragon Boat Festival Garden Party and employee behavior monitoring through implementing integrated safety and fire management and AI video intelligent

monitoring systems.In addition Sunwoda extends occupational health and safety management requirements to the supply chain. We regularly

conduct occupational health and safety management system audits for key suppliers. During the audit process if non-

conformities are found in the Environment Health and Safety Manual the Company will promptly notify and confirm issues

with suppliers ensuring they clearly understand rectification requirements. Meanwhile we strictly review rectification

plans submitted by suppliers and provide professional guidance when necessary assisting them in completing closed-loop

improvements jointly improving the overall safety level of the industrial chain.Chef King CompetitionAbout Message from About Annual Sustainability Sustainable Double Materiality

125 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 126

clear quantitative targets covering the entire Group based on the Environmental and Safety Manual with a million-hour injury

Occupational Health and Safety Management Structure rate not exceeding 1.1 ppm (within company operational scope).The Company has established safety management goals setting the general policy of “prevention first eliminate hiddenInternal and External Issues Context of the Organization Needs and Expectations of Workers dangers implement measures technical assurance resolutely eliminate major and extraordinarily serious accidents curb and Other Relevant Parties relatively serious accidents and strictly prevent mass incidents”. Every five years medium and long-term work safety plans

are formulated based on actual conditions with annual work safety goals clearly defined focusing on the core requirement

Scope of Occupational Health and Safety Management System of “zero major production safety accidents” with supporting specific measures formulated to drive layer-by-layer

transmission of safety responsibility and closed-loop management of work.P The Company actively promotes the linkage mechanism between safety performance and management incentives directly Planning linking quarterly and annual performance bonuses of general manager-level and above personnel with safety performance. According to systems including the Rules on Environmental Health and Safety Performance Measurement and Assessment

and Management Rules on Work Safety Rewards and Penalties monthly supervision and quarterly assessments are

implemented achieving quantifiable traceable and accountable safety responsibilities effectively strengthening safety

Leadership Support performance awareness of managers at all levels and comprehensively improving safety management effectiveness.ImpArovement and Worker Dand Participation Operation Safety Production Committee Organizational Structure

WS Committee/FS Committee Chair (Chairman)

PerCformance Evaluation Executive Vice Chair

FS Committee Office Director

Expected Results of Occupational Health

and Safety Management System WS Committee/FS Committee Vice Chairs

Subsidiary Work Safety First Person Responsible/Fire Safety Person Responsible

Work Safety Subsidiary Management Layer

Safety Management Structure 2025 Key Performance

Sunwoda has established a Safety Production Committee with the Chairman serving as chair and general managers of Safety production investment Major safety production and personnel injury accidents

subsidiaries as first responsible persons for safety production comprehensively responsible for major matters including safety

production fire management and occupational health. Based on the Group's sustainable development goals the Committee

bears ultimate responsibility for the Company's comprehensive safety management system coordinating guidance and RMB 6816.2 ten thousand 0

promoting the implementation of safety production work.Sunwoda strictly follows national policy requirements combining the Safety Production Law of the People's Republic of

China with enterprise realities to systematically integrate and optimize approximately 50 safety production-related policy Risk Identification and Hazard Identification

documents covering the Environment Heath and Safety Manual Emergency Response Management Regulations Fire

Emergency Management System Adverse Weather Emergency Implementation Rules and Non-Safety Production Incident Sunwoda regularly conducts comprehensive identification and dynamic updates of occupational health and safety risks

Emergency Management Regulations. In 2025 we revised documents including the Safety Production Rewards and Penalties annually ensuring the management system remains continuously effective and keeps pace with the times. When process

Implementation Rules and Safety Production Incident Implementation Rules comprehensively enhancing the standardization changes equipment updates or other major adjustments occur risk information is updated in real time simultaneously

and normalization of safety management. ensuring risk control measures remain consistent with actual operating conditions achieving closed-loop risk management.Sunwoda has formulated the Environment Heath and Safety Manual as the core policy document for Group occupational To effectively strengthen work safety management the Company has established a dual prevention mechanism work

health and safety (OHS) management with coverage extending to owned production facilities office premises and supply leadership team improved hazard identification and governance systems regularly organizes comprehensive risk

chain-related parties. To ensure the standardization and authority of policy implementation the manual implements a three- identification and assessment work and systematically advances the construction of the dual prevention mechanism for

tier approval mechanism of “department submission – department general manager review – Chairman final approval”: safety risk classification control and hazard identification and governance. By identifying various internal risks the Company

departments fill in content through the OA system which is reviewed by department general managers before submission establishes safety risk four-color maps covering all areas and position risk notification cards achieving risk visualization and

to the Board level for final online approval and offline signature confirmation ensuring clear decision-making hierarchy and precise management. For identified risks the Company formulates targeted control measures based on actual conditions

traceable accountability. To continuously improve occupational health and safety performance the Company has established continuously reducing safety risk levels.About Message from About Annual Sustainability Sustainable Double Materiality

127 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 128

The Company insists on regular safety inspections as foundational work for safety management establishing a monthly Optimizing Emergency Management

safety inspection system conducting comprehensive audits of production equipment operation processes and on-site

management monthly. For possible production peaks during holidays pre-holiday safety inspections are organized to Sunwoda has formulated and follows core systems including the Emergency Response and Response Management

investigate hidden dangers in advance and complete rectification effectively ensuring production safety during holidays. Regulations Management Regulations for Fire Emergencies Severe Weather Emergency Implementation Rules Non-

Meanwhile special safety inspections and cross-department joint inspections are carried out focusing on key areas such as Work Safety Incident Emergency Implementation Rules and Fire Equipment and Emergency Materials Implementation

key equipment and high-risk operation links deeply investigating potential problems and driving safety management toward Rules ensuring they remain synchronized with actual management needs continuously improving the standardization

refinement and specialization. and effectiveness of emergency management. The Company has established a safety emergency organization with six

In 2025 Sunwoda carried out safety inspections covering three dimensions of "group comprehensive inspections functional groups under it: command group communication liaison group emergency rescue group medical rescue group

special tackling and major holiday inspections". The special inspections focused on 10 high-risk areas including electrical logistics support group and information reporting group with clear division of responsibilities achieving rapid response and

safety special equipment effectiveness of fire protection systems ERT (emergency response team) suffocating gases coordinated linkage for sudden incident response.chemical packaging cafeteria kitchens photovoltaic facilities AGV safety and typhoon and flood prevention A total of 45 For production safety risks the Company has compiled and continuously improved the Emergency Plan for Work Safety

standardized inspection checklists have been output forming a replicable and promotable "inspection toolkit" providing Accidents clarifying emergency response processes and disposal requirements. Emergency materials are managed by

strong support for subsequent normalized governance. dedicated personnel with ledgers established and regular daily inspections maintenance updates and scrapping carried

out to ensure materials are in usable condition. Through standardized emergency preparation and process-based disposal

C as e Organizing Safety Risk Identification mechanisms the Company comprehensively ensures the timeliness orderliness and effectiveness of sudden incident

response work effectively improving overall emergency response capabilities.At the same time the Company continues to promote emergency training and practical exercises comprehensively improving

employees' emergency response capabilities. In 2025 the Company organized multiple special activities such as annual fire

In 2025 to prevent and reduce safety drills emergency response team (ERT) drills volunteer firefighter training vehicle injury emergency drills radiation emergency

accidents the Company organized the drills and chemical leakage emergency drills covering multiple scenarios and positions effectively enhancing employees'

development of a safety risk identification response ability and collaborative level in emergencies. In 2025 the Company organized 1049 emergency drills with 75986

tool tailored to Sunwoda's current situation participants in emergency drills.– the “Six-in-One” identification method.This involves simultaneous participation Emergency Disposal Process

of equipment quality process safety

(functional departments) and suppliers in Event OccursOn-site Emergency

risk identification for the same equipment or Disposal

location conducting comprehensive safety Report to Safety Immediately

risk identification across the entire Group. Activate Emergency Disposal Department Plan (On-site Personnel)

Report to Department

Leadership Whether the Incident Is Communication Liaison Group

2025 “Six-in-One” Risk Identification Training Meeting Effectively Controlled

Evacuation and Alert

No Group

Activate Internal Special/ Emergency Rescue

Comprehensive Emergency and Disaster Relief

Plan Group

2025 Key Performance Park Safety Department Yes Medical Rescue

Requests External Support Group

(119/110/120) Command No Whether the Incident Is

The 2025 safety inspection work has been successfully concluded with core indicators fully achieved: Authority Transferred to Effectively Controlled Logistics Support

Government Group

Yes

Risk identification covered 14 business divisions. More than 18000 hazard sources were identified Lift Alert

including 154 high-risk items for which corresponding control measures have been formulated. The Accident Control Emergency Recovery

notification of risks in key places and positions has been 100% implemented. On-site Cleanup

A total of 17099 safety hazards were identified with 16678 completed rectifications achieving a Aftermath Handling

rectification rate of 97.54%;

Work Injury Reporting

Over 40 special flattening inspections were organized primarily focusing on high-risk processes positions Incident Investigationlocations and equipment with typical and frequent incidents effectively controlled. Implement “Comprehensivelmplementation

Case Closure of the Four No-Exemption Principles”About Message from About Annual Sustainability Sustainable Double Materiality

129 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 130

Safety Culture Building Guarding Occupational Health

Sunwoda builds a work safety education and training system creating an all-employee safety culture. Sunwoda places great importance to employee physical and mental health treating occupational health protection as an

important component of safety management systematically formulating and continuously improving systems 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 comprehensively promoting the implementation of occupational health

protection measures.The Company regularly conducts detection of occupational disease hazard factors in workplaces annually ensuring the

operating environment meets national and industry safety standards preventing and controlling occupational health risks

from the source and effectively safeguarding employee health rights. Strictly following the requirements of the Technical

Three-level Safety Safety Education Monthly Online Pre-shift and Post- Specialized Safety Specifications for Occupational Health Surveillance (GBZ188-2025) the Company organizes regular occupational health

Education for New for Returning/ All-employee shift Safety Publicity Training examinations for employees in positions exposed to occupational disease hazards establishes and dynamically updates

Employees Transferred Safety Training and and Guidance

Employees Examination personal health records achieving early detection and early intervention of health risks. Through the information platform

physical examination data is managed online improving management efficiency and transparency.In terms of Personal Protective Equipment (PPE) management the Company implements a “Three Certificates and OneSunwoda builds a convenient and efficient safety knowledge dissemination system through multiple channels including Mark” (Production License Certificate Product Quality Certificate Safety Assessment Certificate and Safety Mark) full-

WeChat public accounts short videos publicity boards setting “Sunwoda All-Staff Safety Red Line” as screensavers and process control mechanism strengthening compliance in procurement distribution and usage links. For high-risk positions

conducting all-staff safety examinations continuously improving employee safety awareness and promoting the formation PPE wearing rate is explicitly required to reach 100%. Through a combination of normalized training and on-site inspections

of a cultural atmosphere where “everyone talks about safety and everything is for safety”. the Company strengthens employee awareness of PPE importance standardizes wearing behavior promptly corrects non-

compliant phenomena and ensures protective effectiveness.Sunwoda carries out annual Fire Safety Month and Safety Month themed activities with special incentive mechanisms to

fully mobilize employees' enthusiasm for participating in safety management. Monthly all-staff online safety examinations The Company continuously carries out diversified occupational health publicity and education activities including

are organized covering multiple dimensions including safety knowledge occupational health and mental health. To enhance “Occupational Health Promotion Week” special activities hazardous chemical use training and radiation safety and

participation effectiveness the Company incorporates examination completion rates into the performance assessment protection training improving employee occupational health awareness and self-protection capabilities. Through

system and implements supporting incentive measures such as bonus lotteries significantly increasing employees' institutionalized scenario-based and interactive training and practice the Company promotes the deep-rooted concept of

participation initiative. occupational health creating a healthy working environment with all-employee attention and joint participation.Meanwhile Sunwoda continuously advances emergency training and practical drills to comprehensively enhance employees'

emergency response capabilities. In 2025 multiple special activities were organized including annual fire drills Emergency 2025 Key Performance

Response Team (ERT) drills volunteer firefighter training vehicle injury emergency drills radiation emergency drills and

chemical leakage emergency drills covering multiple scenarios and positions effectively strengthening employees' response

capabilities and coordination levels in emergencies. In 2025 the Company organized 1049 emergency drills with 75986

person-times participating. Employee occupational health examination rate Occupational disease

2025 Key Performance 100% 0 case

Training rate for risk and protective Monthly Company-wide Safety participation &

measures in all links Examinations: Total participants pass rate

100% 540000 98% C as e Electronic "One File Per Person" for Occupational Health

Safety Official Account Safety publicity products: banners and Sunwoda has launched the "One File Per Person" function for employees’ occupational health on the EHS

Articles Published: with reads safety videos posters platform realizing the full digitalization of employees’ occupational health records. Physical examination

records of each employee are filed into their personal electronic archive enabling real-time access timely

72 910000 89 70 information updates and complete historical data. This not only facilitates unified management for the articles company but also better tracks and protects the occupational health of employees.About Message from About Annual Sustainability Sustainable Double Materiality

131 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 132

Establishing Responsible Supply Chain Strategy

Sunwoda insists on incorporating responsible supply chain construction into the core of enterprise sustainable development

strategy with goals of improving supply chain resilience ensuring business continuity and driving full-chain green low-carbon

On the basis of ensuring that suppliers meet requirements for robust operations sustainable supply stable qualty and transformation systematically advancing supply chain sustainable development. In 2025 the Company further clarified

technological innovation Sunwoda continuously deepens responsible supply chain management focusing on strengthening strategic direction driving the supply chain upgrade from “compliance management” to “value co-creation”. We insist on

their sustainable development capabilities global layout capabilities digital transformation levels and intelligent taking the Sustainable Supply Chain Policy as the guiding framework comprehensively implementing the ten principles of the

manufacturing collaboration capabilities. Together with partners the Company builds a safe resilient green and intelligent UN Global Compact and actively responding to the Regulation (EU) 2023/1542 on batteries and waste batteries and major

sustainable supply chain ecosystem advancing toward a high-quality development future. customer requirements for supply chain transparency compliance and sustainability.We are committed to building an ecological layout for a sustainable supply chain implementing a classified control

mechanism for suppliers and applying the supplier assessment model—the SUCCESS Supplier Assessment Model. Building

upon core assessment dimensions including stable operations and quality stability we have added comprehensive evaluation

Governance requirements for new suppliers in sustainable supply green sustainable development capabilities globalization layout

capabilities digital transformation level and intelligent manufacturing collaboration capabilities providing strong support for

building a high-quality sustainable supply ecosystem.We have established a sustainable supply chain governance structure with the Strategy and Sustainable Development

Committee providing overall guidance the Sustainable Development Management Committee supervising implementation SUCCESS Supplier Evaluation System

and the Sustainability Center Procurement Center Quality Center and various business divisions coordinating execution.This clarifies management responsibilities ensures efficient transmission and implementation of the Group's sustainable

development strategy at the supply chain end and promotes coordinated development across the entire value chain.Based on the SA8000 Social Accountability Standard the Responsible Business Alliance (RBA) Code of Conduct and

relevant national laws and regulations Sunwoda continuously builds and optimizes a supply chain sustainable development

management system covering the entire chain. At the policy level the Company has formulated the Supplier Code of

Conduct Supply Chain Sustainable Development Manual Supply Chain Sustainable Development Policy Procurement ● Overseas Expansion Overseas ● Second Tier Supplier Management

Sustainable Development Management Regulations and Procurement Risk Management Regulations systematically Supply Network Shared Core Resources and Technologies

clarifying sustainable supply chain management requirements. At the mechanism level the Company has compiled series International Experience Control Risk resilience

of management documents including the Supplier Management Process Supply Chain Sustainable Development Policy

Implementation Guidelines and Supplier Audit Report (Sustainable Development) standardizing and streamlining supplier

Global Expansion Sustainable Supply

admission evaluation audit and sustainable management mechanisms. In 2025 the Company updated procurement

processes adding and controlling six core modules forming a total of 29 procurement process documents.● Specialized roles and responsibilities

● Automation Informatization proactive quality management

Intelligentization Greening implementable design quality digital

Specialization

SUCCESS manufacturing quality

Digital Transformation and Supplier

Smart Manufacturing Evaluation Stable Quality

System

Green and Sustainable Technological

Development Capability Innovation

● ESG Strategy and System Carbon ● Patent layout R&D investment open

Reduction Initiatives Responsible collaboration and technological co-

Procurement Steady Operation innovation meeting customer needs

with technology

● Finance Business Organization

Risk ManagementAbout Message from About Annual Sustainability Sustainable Double Materiality

133 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 134

Risk Management Supplier Full-Process Management

Sunwoda continuously advances supply chain risk management focusing on enhancing supply chain resilience and risk Screening and Admission

resistance capabilities. The Company embeds the Supplier Risk Assessment Form in the Supplier Evaluation and Monitoring For potential suppliers Sunwoda strictly implements regulations including the Supplier Admission Baseline Table Supplier

Management Process relying on information systems such as SRM to carry out full-process control implementing dynamic CSR Risk Assessment Form and Supplier Development Process during selection screening and admission stages conducting

monitoring risk identification and quantification of suppliers' qualification compliance delivery stability material certification admission baseline evaluation special risk screening and new supplier development audits.status price fluctuations inventory levels and external risk factors such as natural disasters achieving early risk detection

early warning and early response effectively reducing supply chain disruption risks and ensuring supply security and

business continuity. The Company has standardized and formulated detailed Supplier On-Site Audit Procedures covering a

● Admission baseline evaluation is conducted for suppliers by category with systematic

complete audit process of pre-assessment process supervision and result closure clarifying responsibilities of all parties and evaluation based on baselines. Taking cell PCB and other production material suppliers

work requirements for each segment ensuring efficient audit processes and effective audit results. as examples Sunwoda has incorporated environmental compliance requirements such as

Admission ISO 14001 and ISO 9001 certification valid industrial three-waste discharge permits and

Supplier Audit Process Baseline signed high-risk waste transfer contracts with qualified third parties with detailed transfer

Evaluation lists into core admission baselines. Suppliers are explicitly required to implement waste

reduction resource recovery and harmless management during production comply with

Audit Plan Supplier Self- On-Site Audit wastewater waste gas and solid waste treatment and properly dispose of and transfer Assessment On-boarding hazardous waste. Non-compliance results in denial of admission.Sunwoda clarifies the Sunwoda clarifies the Sunwoda introduces the ● Special risk screening is conducted on topics including social responsibility environmental

objectives scope schedule objectives scope schedule audit's purpose and process safety emergency response legal compliance and trade security. For example

Special Risk

and personnel arrangements and personnel arrangements clarifies both parties' Screening comprehensive trade risk screening is conducted on prospective registered suppliers

of the audit to ensure an of the audit to ensure an responsibilities and builds through third-party screening tools to avoid trade compliance risks arising from market

orderly audit. orderly audit. an audit communication fluctuations and geopolitical conflicts.mechanism.● Personnel such as SQE R&D or project engineers conduct qualification assessment and

New Supplier

Development on-site audits for prospective registered suppliers who have completed admission baseline

Audit evaluation and special risk assessment (details on sustainable development on-site audit

Audit Summary System are in the “Supplier ESG Management” section) ultimately outputting audit reports.and Closing On-Site Audit Documentation

Meeting Review

Sunwoda summarizes Sunwoda conducts on-site Sunwoda reviews Additionally Sunwoda requires all new suppliers to sign the Supplier Code of Conduct covering key areas including ESG

audit findings proposes inspections of production the supplier's quality management systems integrity and business ethics ISO certification human rights protection and environmental protection.improvement suggestions processes equipment and management system Suppliers are explicitly required to proactively identify fully disclose and effectively avoid potential conflicts of interest

and communicates with facilities and management documents to ensure they with Sunwoda and stakeholders maintain independence and impartiality during cooperation and eliminate any form of

suppliers to confirm audit records to verify the comply with audit standards interest transfer or improper influence. Meanwhile the Company standardizes environmental management requirements

results. implementation ofsystem and regulatory requirements. for production materials in documents such as the Quality Assurance Agreement and Supplier Material Environmental

documents. Declaration Commitment Letter with relevant suppliers required to sign and follow as needed. During the reporting period

all production material suppliers were required to pass ISO 9001 certification with some suppliers passing ISO 14001 and ISO

45001 system certifications.

Supplier Management Audit and Exit

For resource pool and cooperating suppliers Sunwoda conducts monthly performance management quarterly performance

Sunwoda relies on systems such as the Supplier Management Process and Supplier Code of Conduct to establish a full- management annual audits and special risk screening through combined online and offline approaches in accordance with

process management system covering supplier screening admission audit performance evaluation and elimination/exit the Supply Chain Sustainable Development Manual requirements. Based on actual risk control needs of business divisions

achieving closed-loop management throughout the entire lifecycle. non-conforming items are identified. For supplier non-conformities the Company notifies suppliers of issues and requires

them to provide improvement plans for review and confirmation. During the rectification process the Company continuously

follows up on the implementation of rectification plans and provides corresponding guidance and assistance to suppliers

when necessary. During this reporting period special guidance was carried out for some suppliers with incoming batch

abnormalities or quality abnormalities after new introduction with a total of 36 sessions organized covering 27 suppliers22.For suppliers still non-conforming after rectification the Company has established an exit mechanism including supplier

freezing category freezing qualification cancellation and blacklist setting.

22 Only lithium-wei.About Message from About Annual Sustainability Sustainable Double Materiality

135 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 136

Supplier ESG Management

Monthly and

● Conduct information monitoring and regular performance management for cooperating

Quarterly

Performance suppliers covering quality delivery cost service environmental protection and

Sunwoda in accordance with the Procurement Sustainable Development Management Regulations explicitly incorporates

Management qualifications with regular compilation of supplier risk reports. ESG requirements and performance standards into the full-process management system of supplier admission risk tiered

management audit and exit systematically evaluating partners' compliance performance in sustainable development and

reducing supply chain ESG-related risks. In 2025 we simultaneously updated supplier sustainable development on-site audit

● Systematically evaluate supplier quality and ESG performance standardizing the forms for new introduction and annual audit stages adding special inspections for waste management to ensure compliantAnnual Audit formation of tiered assessment results. Details on ESG audits are in the “Supplier ESG disposal and traceable management during production processes.Management” section.● Combine public information with company supplier management system data focusing on Screening and Admission

four core risk categories: operational risk legal risk credit risk and labor risk to address

Special Risk

Screening risks such as supplier capacity insufficiency delivery delays and raw material supply

disruptions that may result from external factors including market fluctuations geopolitical Potential Supplier Admission Evaluation

conflicts and natural disasters.Sunwoda incorporates ESG requirements including environmental compliance labor rights business ethics

and conflict minerals into core admission standards with seven “Sunwoda Red Lines” clearly defined in the

The Company implements supplier tiered and classified management based on annual audit and risk screening results Supplier Sustainable Development Manual and Audit Form serving as mandatory requirements. Any behavior

effectively enhancing supply chain risk early warning and response capabilities: touching these red lines triggers mandatory exit mechanisms. Meanwhile the Company evaluates suppliers' ESG

management systems to ensure they possess foundational capabilities for sustainable development.For high-risk suppliers with dishonest enforcement major litigation serious labor disputes

High Risk non-compliant operations or seriously substandard ESG performance orders are Sustainable Development On-Site Audit

immediately suspended and termination procedures are initiated to achieve risk isolation.Mainly covers child labor and young workers forced labor working hours and wages business ethics chemical

safety safety production environmental protection climate change and circular economy. Suppliers not meeting

requirements must complete rectification within a specified timeframe and cannot be admitted as qualified

Medium For medium-risk suppliers with minor operational abnormalities or small-scale litigation suppliers until rectification is completed.Risk the procurement team continues follow-up and dynamic monitoring of risk evolution.Audit and Exit

For low-risk suppliers with sporadic labor dispute warnings clear compliance rectification

Low Risk requirements are established guidance and support are provided and they are driven to

improve labor management and operational processes. Annual Audit

Tracks cooperating suppliers' sustainable development performance during annual audits and continuously

follows up on their rectification plan achievement. In 2025 Sunwoda completed sustainable development on-

2025 Supplier Audit Management Highlight Measures (Selected) site audits of 213 core suppliers covering 14 key dimensions and 132 issues including social responsibility climate

change environmental protection and circular economy driving systematic supplier improvement.● The Group Procurement Center ● The Liwinon Business Division ● The Energy Technology Division

conducted comprehensive screening carried out risk identification conducted IPE risk screening of Guidance and Improvement

of engineering and equipment and rating for all cooperating key material suppliers discovering

suppliers across five dimensions suppliers across dimensions 5 suppliers with violation

identifying 15 suppliers with risks including qualifications finance records and driving rectification For issues existing in the process of supply chain sustainable development goal achievement such as high energy

and optimized cooperation with and performance with overall of related issues; completed consumption the Company provides suppliers with special guidance including energy-saving improvements.high-risk suppliers through measures risks controllable. A total of 3 screening of US-related and

including restricting cooperation and high-risk suppliers and 8 low-risk Japan-related materials involving

increasing payment guarantees. suppliers were identified. The Spot over 210 material numbers Exit Mechanism

MRO procurement applied Purchase Department conducted while simultaneously advancing

qualification and shell company risk screening of resource pool domestic substitution verification

risk models to screen 118 suppliers suppliers identifying 16 medium- to reduce dependence on Suppliers violating sustainable development red lines such as using child labor forced labor illegal discharge or

identifying 104 low-risk 10 medium- risk resources and initiating imported materials. leakage of major environmental violations that cannot be rectified within the specified timeframe or engaging

risk and 4 high-risk suppliers and optimization plans. in commercial bribery or fraud will have cooperation qualifications cancelled. Those with particularly serious

implemented differentiated control circumstances will be added to a blacklist after approval and never cooperated with again.strategies.About Message from About Annual Sustainability Sustainable Double Materiality

137 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 138

Hazardous Substance Management C as e Building a “Video Guidance+Milestone Reminder” Integrity Education MechanismTo meet national laws regulations and customer compliance requirements for environmental management substances Sunwoda systematically strengthens supplier integrity awareness through the combination of regular “IntegritySunwoda explicitly requires suppliers to comprehensively implement hazardous substance management systems and strictly in Tendering” promotional video campaigns and integrity reminders during major holidays. Prior to the launch

comply with regulations and technical standards including the EU REACH Regulation (EC No. 1907/2006) EU RoHS Directive of each tendering project the Company organizes centralized viewing sessions of the Integrity in Tendering

(2011/65/EU) China's Administrative Measures for the Control of Pollution Caused by Electronic Information Products and Promotional Video for participating suppliers covering core modules including integrity tendering standards

Environmental Management Substance Technical Standards in audit and management process documents such as the commercial bribery risk warnings and partnership integrity commitments. This initiative reached over 200

Quality Assurance Agreement Supplier Management Process Supplier On-Site Audit Process and Supplier Evaluation and supplier instances throughout the year achieving pre-positioned and scenario-based integrity education.Monitoring Management Regulations. This series of documents covers the entire supplier management process including Meanwhile a major holiday integrity reminder mechanism has been established with integrity cooperation

supplier development and admission new material selection performance assessment and annual audits. announcements regularly published through the SRM platform realizing normalized and milestone-based

integrity guidance that effectively reinforces supplier compliance awareness at critical junctures. These two

initiatives work in synergy to deeply embed integrity culture throughout the entire cooperation process

Low-Carbon Management continuously fostering a clean and transparent supply chain ecosystem.Sunwoda launched the “Supply Chain Low-Carbon Development” project deeply integrating “carbon peaking and carbonneutrality” goals into the full lifecycle management of the supply chain committed to building replicable and promotable low-

carbon supply chain practice cases and forming systematic implementable solutions. In 2025 the Company jointly carried

out routine supply chain carbon reduction management with 28 key category suppliers (covering cells cell raw materials

plates and other key materials). The project covers key dimensions including supplier carbon reduction commitment signing

carbon intensity data collection emission reduction plan formulation operational process carbon emission management

and renewable energy usage monitoring systematically advancing climate performance management across the entire

supply chain. Related climate performance has been incorporated into the supplier overall performance assessment system

achieving closed-loop management that is “quantifiable traceable and accountable”.In 2025 various business divisions of the Company also achieved positive progress in supply chain low-carbon development:

The Xindong Business Division implemented a “local procurement priority” strategy prioritizing supplier geographic location

in new material admission and procurement decisions effectively reducing carbon emissions from transportation; the Power

Business Division during the qualification process for some projects signed agreements with suppliers explicitly stipulating

recycled material usage ratios and green electricity procurement ratios reducing overall product carbon emission intensity

from the source. Screenshot of integrity promotional video 2025 Labor Day Integrity Announcement

Responsible Procurement

Integrity Management

Sunwoda continues to build a safe compliant and sustainable battery supply chain system. Through systematic responsibility

Throughout the full supplier management process Sunwoda incorporates integrity requirements into core supplier admission governance risk control and multi-party collaboration mechanisms the Company comprehensively promotes hazardous

criteria formulating the Supplier Cooperation Basic Code clearly covering key contents including integrity and self-discipline substance management in raw materials conflict minerals traceability and full-chain human rights and environmental

anti-commercial bribery anti-commercial fraud social responsibility fulfillment safeguarding freedom of association and responsibility implementation effectively ensuring supply chain transparency traceability and sustainability.collective bargaining rights prohibition of discriminatory behavior and environmental responsibility implementation. Through

the Supplier Development Process suppliers are explicitly required to sign the Supplier Cooperation Basic Code when In terms of conflict minerals management Sunwoda strictly implements the OECD Due Diligence Guidance for Responsible

signing procurement contracts. During the audit stage the Company conducts legal compliance and business ethics reviews Supply Chains of Minerals from Conflict-Affected and High-Risk Areas and the China Responsible Minerals Supply Chain Due

based on the Supplier Code of Conduct drives suppliers to improve internal anti-corruption mechanisms and incorporates Diligence Guidelines of the China Chamber of Commerce of Metals Minerals&Chemicals Importers&Exporters. The Company

anti-corruption into the assessment scope of the Supplier Sustainable Development Audit Report and Supplier Annual has formulated the Responsible Minerals Procurement Policy Responsible Procurement Management Regulations Supplier

Special Audit Report. For suppliers with violations such as corruption or fraud causing company losses the Company will Code of Conduct Procurement Sustainable Development Management Regulations and supporting management systems

take measures including qualification downgrade claiming liquidated damages suspending cooperation or terminating fully embedding conflict minerals management requirements into the entire process management of supplier admission

cooperation according to contract stipulations and severity of circumstances resolutely safeguarding the fairness and procurement contracts and performance evaluation.transparency of the cooperation ecosystem.Sunwoda has established a systematic conflict minerals management system and set up a cross-department management

In terms of normalized integrity publicity and training Sunwoda regularly sends the Supplier Integrity and Cleanliness framework to clarify responsibilities: the Quality Center system officer is responsible for overall planning analysis and

Advocacy Letter to cooperating suppliers publishes special link announcements and produces integrity advocacy themed report preparation; the procurement department and SQE are responsible for implementing policy requirements in supplier

videos to strengthen integrity reminders. Meanwhile through various forms including supplier conference presentations onboarding and annual surveys; environmental protection officers in each business unit are responsible for specific

and integrity interviews the Company continuously conveys sunshine cooperation requirements and regularly verifies implementation and information feedback. The company continuously focuses on and researches the possibility of using

supplier behavior during cooperation. In 2025 the Company compiled online test questions for the Supplier Code of Conduct minerals from non-conflict regions recycled materials or innovative technological solutions promoting alternative sources

and pushed them to all in-stock and registered but not yet filed suppliers through the SRM system achieving full system and risk mitigation in the supply chain from a long-term perspective. A 'Conflict-Free Minerals Commitment' is implemented

coverage. as a prerequisite for new supplier onboarding and the introduction of new materials and annual due diligence based on

international templates such as RMI is conducted for existing suppliers. Through audits and process optimization we are

committed to building a continuously improving responsible supply chain management system.About Message from About Annual Sustainability Sustainable Double Materiality

139 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 140

Raw Material Traceability and Identification Metrics and Targets

Sunwoda has established a supply chain data tracking mechanism implementing full lifecycle traceability of key materials

including tantalum tin tungsten gold (3TG) and cobalt lithium nickel and natural graphite across sourcing processing and Centering on responsible supply chain construction Sunwoda continues to establish and improve management indicator

transportation ensuring that raw material chain of custody complies with international standards. The Company requires systems focusing on the number of suppliers covered by conflict minerals audits supplier training and suppliers completing

suppliers to formulate their due diligence policies and management systems in accordance with the five-step due diligence various certifications. The Company incorporates responsible procurement targets into annual business plans and

framework in the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High- performance assessment mechanisms continuously enhancing supply chain transparency compliance and sustainability

Risk Areas conduct due diligence on the sources and chain of custody of the aforementioned minerals to identify and assess through systematic monitoring closed-loop management and continuous improvement driving the construction of a safe

relevant risks take appropriate measures to mitigate such risks and publicly disclose annual supply chain due diligence trustworthy and traceable global supply chain ecosystem. We have set goals to continuously improve the response rate of

reports. Records related to conflict minerals due diligence are retained for at least ten years. conflict minerals due diligence for suppliers increase the coverage of supplier training and continuously promote suppliers to

pass the certification of the three major management systems and continue to promote progress.In 2025 Sunwoda conducted systematic identification of materials involved in its products incorporating materials

potentially containing conflict minerals into a priority management list. For suppliers of relevant materials that had not

conducted due diligence in that year the Company implemented CMRT and EMRT surveys to comprehensively identify source

risks of key materials including 3TG cobalt and mica supplied by them. For high-risk minerals including 3TGs cobalt and 2025 Key Performance

mica the Company mandates that suppliers purchase from smelters recognized by the Responsible Business Alliance (RBA)

and audited by the Responsible Minerals Initiative (RMI). For uncertified suppliers the Company promotes their participation

in the RMI Responsible Minerals Assurance Process (RMAP) enhancing compliance capabilities through technical guidance

and resource docking. During the reporting period within the completed survey scope the Company has not yet identified Response rate of conflict minerals Total number of suppliers who Number of supplier training

minerals from conflict-affected and high-risk areas used in its products. Going forward Sunwoda will continue advancing due diligence for suppliers signed the Supplier Code of Conduct sessions

supply chain transparency construction improving survey mechanisms and data management and actively practicing

responsible procurement commitments. 98% 3579 82

In 2025 the Company implemented two rounds of conflict minerals due diligence mechanisms including annual preliminary

surveys and annual confirmation surveys. For cases where non-compliant smelters or refiners were identified during the

investigation the Company adopted tiered control measures:

Number of key suppliers Number of non-key suppliers Total number of new suppliers

● Require ● If suppliers cannot ● If improvement ● Report relevant

suppliers drive rectification plans show no situations to 2414 1988 843

to submit they must replace results after customers

written risk non-compliant tier- six months of in a timely

management 2 suppliers with implementation manner where

plans or compliant ones the Company applicable

improvement removing non- will terminate ensuring Number of suppliers certified for

plans driving conforming smelters/ cooperation with information Number of suppliers certified for occupational health and safety Number of suppliers certified for

rectification refiners from the that supplier; transparency. environmental management system management system quality management system

progressively; supply chain;

229414932961

2025 Key Performance

● Supplier response rate: up to 98%

● According to analysis of the second-half confirmation survey results 286 smelters/refiners were

identified in the supply chain of which 280 were in assessed compliant status and 6 were in

assessed active status with compliant status smelters/refiners accounting for 97.9%.About Message from About Annual Sustainability Sustainable Double Materiality

141 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 142

Promoting Industry Growth Participating in the Fifth Advanced Battery Industry Cluster Forum to Promote C as e Industry-University-Research Integration and Industrial Ecosystem Construction

In 2025 Sunwoda participated in the “Fifth Advanced Battery Industry Cluster Forum” and engagedin thematic discussions in multiple sub-forums including “Advanced Battery Design R&D and ConceptLeveraging its technological accumulation and practical experience Sunwoda actively participates in standard formulation Verification” “Low-Altitude Economy and Electric Vessel Battery Technology” “Advanced Battery Qualityresearch projects and various forums exhibitions and technical exchange activities organized by industry associations Chain Strengthening and Safety Evaluation” “New Energy Storage Technology and New Power Systems”

deepening external collaboration and experience sharing. In recent years the depth and level of the Company's external “Battery Recycling and Sustainable Development and Financial Services” and “Advanced Battery Clusterexchanges have been continuously enhanced. In 2025 the Company received multiple batches of domestic and international Ecosystem Construction”. Through exchanges with industry experts research institutions and industrial

leaders and representatives at various levels and actively participated in multiple important industry exchange activities chain partners the Company continuously absorbs innovation achievements under the background of

continuously enhancing its influence and international discourse power in the process of promoting high-quality industry industry-university-research integration grasps industry development directions and provides new ideas

development. for enterprise technology layout and industry-university-research cooperation expansion.Based on the strategic layout of energy storage applications and the lithium battery upstream and downstream industrial

chain the Company has invested in multiple enterprises related to its main business areas assisting technological

breakthroughs and industrialization and contributing positive forces to building a sustainable energy storage ecosystem.At the same time we always work with partners to put user interests first fully cooperate and ensure the continuity and

stability of related products and services properly resolve business disputes both maximizing consumer protection and

contributing to the overall healthy development of the industry. Looking ahead we will continue to work closely with our

partners to build an interconnected industrial ecosystem and contributing to the steady growth of the new energy industrial

chain.Participating in Lithium-ion and Sodium-ion Battery Standards Seminars to Promote

C as e Technical Specification Improvement

In 2025 Sunwoda participated in the 2025 Annual Meeting and Standards Seminar of the Lithium- 2025 Advanced Battery Industry Cluster Forum

ion Battery and Similar Products Standards Working Group of the Ministry of Industry and Information

Technology as well as the Fourth Sodium-ion Battery Industrial Chain and Standards Development

Forum. The Company organized relevant technical experts to conduct in-depth exchanges and

discussions on the standard system construction technology R&D progress and industrial development Hosting a New Energy Storage Technology Development Forum to Promote Technical

status of lithium-ion batteries and sodium-ion batteries providing professional support for promoting Case Exchange and Industry Dialogue

the improvement of relevant technical specifications and healthy industrial development.In September 2025 Sunwoda hosted the “Breakthrough · Empowerment · Win-Win — New Pathwaysfor Tackling Challenges in New Energy Storage Technologies and Advancing Industrial Upgrading” forum

bringing together government representatives research institutions and industry participants to explore

development pathways for new energy storage technologies. The forum featured keynote speeches

and panel discussions on topics including new power system development multi-scenario applications

of energy storage technology innovation trends and industry business models facilitating in-depth

exchanges among industry academia and research stakeholders. By building an open communication

platform Sunwoda promoted knowledge sharing and collaboration in the energy storage sector

supporting high-quality industry development.Lithium-ion Battery Working Group

2025 New Energy Storage Technology Development ForumAbout Message from About Annual Sustainability Sustainable Double Materiality

143 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 144

Participating in the Gaogong Lithium Battery Annual Conference to Share

C as e Industry Insights Rural Revitalization and Social Contribution

At the 15th Gaogong Lithium Battery Annual Conference the Group’s founder Wang Mingwang delivered

a keynote speech titled “Thirty Years of Dedication to Every Battery” sharing the company’s development

journey and technological innovation practices in the lithium battery sector. The speech covered key Sunwoda continuously deepens its social responsibility practices covering rural revitalization medical charity educational

milestones such as automation transformation power battery expansion internationalization and assistance emergency relief and resilient communities. We actively encourage employee participation in public welfare

breakthroughs in fast-charging technologies and outlined the company’s “Battery+” ecosystem strategy. practices inspiring the power of goodness and achieving mutual commitment between the enterprise and society.This strategy spans integrated hardware platforms from cells to system-level solutions as well as energy

service models for intelligent terminals. The event also served as a platform to engage with industry

stakeholders and exchange views on sector development.Rural Revitalization

Sunwoda closely follows the national rural revitalization strategy continuously exerting efforts in key areas such as

educational revitalization cultural revitalization and industrial revitalization to comprehensively empower rural development.In 2025 Sunwoda carried out diversified rural revitalization activities in Baiqiao Village of Gaozhou City in Maoming City

Qin’an County of Tianshui City and Wudu District of Longnan City in Gansu Province and Cangxi County and QingchuanCounty of Guangyuan City in Sichuan Province including the 2025 Sunwoda “Hundreds Thousands Tens of ThousandsProject” Public Welfare Initiative the “Overseas Chinese Love * Sunwoda Brightness” Rural Students Optometry Public

Welfare Project and the “Sports Empowerment Charity Together” Rural Children’s Sports Dream Public Welfare Action with

cumulative rural revitalization donations of RMB 1.71 million contributing to the achievement of common prosperity goals.Launching the “Hundred-Thousand-Ten Thousand Project” Public Welfare Activity

C as e to Assist Rural Characteristic Industry Development

In 2025 Sunwoda Charity Foundation deeply engaged in Baiqiao Village Gaozhou Maoming

City launching the “Hundreds Thousands Tens of Thousands Project” public welfare initiativeand innovatively building an integrated “industrial revitalization+community integration+culturalpreservation” model. The project donated 153 lychee trees producing 8.3 metric tons of lychees part

of which was donated to special children and school teachers and students in Shenzhen supporting

the development of rural characteristic industries and urban-rural care linkage. During the Dragon Boat

Festival the Foundation also delivered holiday warmth to 15 elderly people in Baiqiao Village Gaozhou

Maoming promoting the tradition of respecting the elderly. The event received coverage from official

Gaogong Lithium Battery Annual Conference media including Shenzhen Special Zone Daily “Jingbao” and sznews. com for a total of 5 times further

expanding the project's social influence.

2025 Key Performance

In 2025 Sunwoda participated in the formulation and revision of 47 standards that

have been published including the mandatory national standard for power batteries

GB 38031-2025 Electric Vehicles Traction Battery Safety Requirements the production

safety industry standard AQ 7107-2025 Safety Specifications for Lithium-ion Battery

Production etc.

2025 Sunwoda Assists “Hundred-Thousand-Ten Thousand Project” Public Welfare ActivityAbout Message from About Annual Sustainability Sustainable Double Materiality

145 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 146

“Overseas Chinese Love Sunwoda Bright” Rural Student Eye Care Public Welfare

C as e Medical CharityProject: Guarding the “Bright” Future of Western Children

Sunwoda continuously deepens its medical charity practices focusing on critical illness family assistance and children's

In 2025 Sunwoda Charity Foundation launched the “Overseas Chinese Love Sunwoda Brightness” medical psychological support promoting the development of medical public welfare services toward precision and

Rural Students Optometry Public Welfare Project with an investment of RMB 100000 focusing on professionalism. In 2025 Sunwoda supported the Sunshine Guardian Plan Sunwoda Ark Children's Transplant Rescue Plan

Qin'an County of Tianshui City and Wudu District of Longnan City in Gansu Province. The project and Children's Care Spaces delivering warmth and hope to patients and families in disease-related distress.provided free vision screening for 500 rural students and free eyeglass fitting for 300 myopic

students directly improving their visual health. The project was included as a demonstration case in

the “Overseas Chinese Love Project” by Gansu Provincial Federation of Returned Overseas Chinese “Sunshine Guardian Plan”: Five Years of Persistence Lighting Hope for Families

and was reported by platforms including the WeChat public account of Wangyin School District in C as e with Major Diseases

Qin'an County and the official website of Gansu Provincial Federation of Returned Overseas Chinese

expanding the project's social influence and attracting public attention to rural youth vision issues.The project promoted optimization of local youth vision health policies explored a “government+social In 2025 the “Sunshine Guardian Plan” reached its fifth anniversary milestone. The Sunwoda Charityorganizations+enterprise” collaborative model and provided replicable experience for rural education Foundation continued to provide temporary assistance to families facing difficulties due to major

equity and health philanthropy. illnesses or accidents helping them alleviate economic pressure and improve living conditions. The

project cumulatively assisted 54 person-times distributing nearly RMB 1.31 million in relief funds. In

January 2025 the Foundation received support from 303 “Sunwoda Family” members gathering over

RMB 2.68 million in donations demonstrating the profound strength of the enterprise and employeesjointly shouldering social responsibility. Following the funding principle of “relieving difficulties providingurgent assistance” the project delivers timely and precise aid to beneficiary families genuinely

conveying warmth and hope becoming a solid action for the enterprise to practice philanthropy and

safeguard lives.“Overseas Chinese Love Sunwoda Brightness” Rural Students Optometry Public Welfare Project

“Sunshine Guardian Plan” Public Welfare ProjectAbout Message from About Annual Sustainability Sustainable Double Materiality

147 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 148

C as e “Love Gas Station Plan”: Creating Child-Friendly Medical Care Spaces Guarding Educational Assistance

Childhood in Illness

In 2025 the Sunwoda Charity Foundation continued to support the operation of Bao'an District Shiyan Sunwoda continues to deepen its educational assistance practices focusing on sustainable development capacity building

People's Hospital Tongxinyuan Project and The Seventh Affiliated Hospital of Sun Yat-sen University for youth and innovative talent cultivation in universities promoting industry-education integration and green educationSunwoda Children's Care Space (Qingwawa Project) promoting the construction of child-friendly innovation. In 2025 leveraging its new energy technology advantages Sunwoda launched the “Sunwoda Climate Arkmedical environments integrating emotional support health education and social care. The two spaces Project” aiming to empower green education through new energy technology and build a closed-loop cultivation system of

were open for a cumulative total of 699 days throughout the year carrying out 88 care activities “perception-understanding-action-innovation”. Through creating the “five-in-one” Sunwoda green education public welfareincluding festival garden parties medical creative handicrafts child protection growth programs and product—”one laboratory one camp one instructor one course one competition”—the project establishes a replicable and

“Qingma Xinguang Empowerment Action” serving 8456 children and families. Both spaces achieved sustainable urban youth climate education public welfare system through systematic curricula scenario-based practice

normalized services and professional operations. Among them the “Tongxinyuan” project received and localized design cultivating green future citizens equipped with climate change literacy and climate response skills. Asspecial coverage from CNKI and social magazines while the Qingwawa Project successfully held its fifth of December 2025 the Sunwoda Climate Ark Project has launched two core projects—the “Sunwoda Energy and Climateanniversary celebration becoming a benchmark example of hospital children's care spaces effectively Science Laboratory Project” and the “Sunwoda Green Future Exploration Camp Project”—directly benefiting over 1640 young

alleviating children's loneliness and anxiety empowering parents and medical staff and ensuring that people. Additionally we also focuses on the growth of rural primary and secondary school students and university students

childhood remains filled with warmth and smiles even during illness. majoring in new energy carrying out the “Future Engineer Training Program” supporting the Sunwoda South China University

of Technology Challenge Cup Series Competition Support Plan the 2025 Huanghai New Energy Technology Innovation Project

and others contributing to the steady advancement of education and promoting educational equity and progress.China's First Sunwoda Energy and Climate Science Laboratory: Creating a New

C as e Benchmark for Industry-Education Integration

In December 2025 China's first Sunwoda Energy and Climate Science Laboratory was officially

completed and put into operation at Longtian School of Shenzhen Xin'an Middle School (Group) marking

a new stage of innovative practice in the deep integration of enterprise resources and educational

scenarios. With “technologization digitalization visualization” as its core concept the laboratorypioneered an integrated model of “industry-education collaboration+zero-carbon application+scienceand technology innovation practice” equipped with cutting-edge facilities including a smart energy

management platform zero-carbon city sandbox climate crisis VR immersive experience system and

new energy practical training devices constructing a tiered curriculum system covering Grades 1–9

precisely meeting the exploration needs of youth aged 6–15 regarding new energy and climate change.From December 12 to 30 2025 the laboratory cumulatively received over 1600 visitors including Bao'an

District party and government leaders education departments industry foundations caring enterprises

media and representatives of teachers students and parents gaining in-depth coverage from more

than 10 provincial and municipal mainstream media including Shenzhen Satellite TV and Shenzhen

Special Zone Daily with cumulative exposure exceeding 530000. The project not only provides schools

with a replicable paradigm for zero-carbon education but also exerts profound influence in cultivating

future citizens equipped with climate change response literacy becoming a model for enterprises

supporting the integration of “dual carbon” strategy and sustainable education.Sunny Doll (Sunwoda) Children's Care Space Fifth Anniversary Celebration

Sunwoda Energy and Climate Science LaboratoryAbout Message from About Annual Sustainability Sustainable Double Materiality

149 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 150

2025 Sunwoda Green Future Exploration Camp: Cultivating Young Green Future

C as e Emergency ReliefCitizens Through PBL Model

Sunwoda actively fulfills corporate social responsibility responding rapidly in major emergencies and proactively participating

In August 2025 the Sunwoda Charity Foundation launched the “Green Future Exploration Camp” in emergency relief providing timely materials and funds to affected people helping disaster-stricken areas restore

project. With energy and climate education at its core responding to the national “dual carbon” strategy production and living and building a more resilient disaster response system.and Sustainable Development Goal 13(SDG 13) the project builds an integrated “cognition-capability-action” training system through PBL project-based learning. The project benefited 40 junior high school

students from 10 schools in Shenzhen. Through 5 days of systematic learning participants mastered

core knowledge including the “dual carbon” goals and renewable energy principles and carried out Participating in Emergency Disaster Relief Demonstrating the Warm Power of C as e

community problem new energy solution design simulated debates and new energy device practices “Sunwoda Family”

enhancing their logical thinking teamwork and public expression capabilities helping youth become

future citizens equipped with climate literacy and In November 2025 the fire at Wang Fuk Court in Tai Po New Territories Hong Kong touched the hearts

green action capacity. The project collaborated with of many with the safety of affected residents and post-disaster life reconstruction receiving widespread

over 10 local institutions including the Shenzhen China attention from all sectors of society. Though disasters are merciless human love prevails. To help

Charity Fair Development Center and the Institute for affected residents of Wang Fuk Court in Tai Po New Territories Hong Kong overcome difficulties as soonSustainable Development building an “enterprise- as possible the Sunwoda Charity Foundation responded promptly donating RMB 1 million in specialschool-philanthropy” collaborative network and forming charitable funds for emergency material procurement temporary resettlement and subsequent home

a replicable green education cooperation model. The reconstruction for affected residents. This action fully demonstrates the enterprise's social responsibilityevent was covered by 5 mainstream media outlets of rapid response and proactive action in major emergencies showcasing the warm power of “Sunwodaincluding Shenzhen Satell ite TV and Yangcheng Family” mutual support.Evening News with parents of participating students

recognizing the green education value of the project

achieving a “children driving families” radiating effect

and providing a practical model for cultivating future 2025 Sunwoda Green Future Exploration Camp

citizens equipped with climate literacy and action

capabilities.Future Engineer Training Program: Deepening Industry-Education Integration

C as e Assisting University Innovative Talent Cultivation

Since 2022 the Sunwoda Charity Foundation has donated RMB 500000 annually to support South

China University of Technology in conducting the “Challenge Cup” series of competitions promoting

deep integration of technological innovation and talent cultivation. In March 2025 the “Sunwoda Cup”

19th “Challenge Cup” National College Students' Extracurricular Academic Science and Technology

Works Competition finals were officially launched covering over 30000 teachers and students focusing

on frontier directions including technological innovation rural revitalization and green low-carbon

successfully cultivating a batch of high-quality projects of which multiple achievements achieved historic

breakthroughs in higher-level competitions. Through

funding support direction guidance and resource

investment this program effectively stimulates Sunwoda Donates RMB 1 million to Support Tai Po Fire Relief in Hong Kong

university innovation vitality assists South China

University of Technology's “Double First-Class”

construction and has become an important brand for

school-enterprise collaborative education. The project

not only builds a high-level practice platform for young

students but also promotes the formation of a talentcultivation ecosystem of “daring to innovate capableof creating and able to start businesses” reserving

high-quality engineering talent for national sustainable “Sunwoda Cup” 19th “Challenge Cup” National College Students' Extracurricular Academic Science

development. and Technology Works CompetitionAbout Message from About Annual Sustainability Sustainable Double Materiality

151 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 152

Resilient Communities Carrying Out Public Welfare Practices Demonstrating the Goodness and Social C as e Responsibility of “Sunwoda Family”

Sunwoda actively promotes resilient community construction linking enterprises and society through normalized and precisepublic welfare services and extending corporate responsibility deeply into communities. Through “Community-Friendly In 2025 Sunwoda Charity Foundation actively mobilized all employees to participate in public welfareSunwoda Action” it builds a collaborative mechanism of “park team+foundation” covering multiple scenarios including practices fully demonstrating the power of goodness and social responsibility commitment of the

hospitals schools and communities continuously caring for frontline workers and special groups effectively enhancing “Sunwoda Family”. It organized 8 themed public welfare activities throughout the year including public

community resilience and cohesion. welfare blood donation public welfare hiking and treeplanting actions mobilizing 840 person-times

to participate transforming public welfare concepts into tangible social actions. At the same time it

launched employee love donation initiatives extensively mobilizing employee responses and support

Launching Community-Friendly Sunwoda Action to Promote Normalized Public raising a total of 1739 160.3 yuan in donations. The combination of actions and donations fully reflects

C as e Welfare Services the spirit of unity and dedication of Sunwoda people and their high sense of civic responsibility making

public welfare an important foundation of corporate culture.In 2025 Sunwoda continues to carry out the Community-Friendly Sunwoda Action covered 13 hospitals● Sunwoda organized the “Learn from Lei Feng Plant for Love-Pioneering Youth TreePlanting Public

12 schools and over 10 communities benefiting 9574 people including sanitation workers traffic police Welfare Activity” simultaneously carried out in four parks including Nanchang Huizhou Shilongzai

and outdoor workers. The “Spring Festival Warm Heart Action” was carried out for 7 consecutive years and Dianbai planting a total of 188 young trees adding green vitality to surrounding communities.caring for 58 elderly people in 3 villages; 8 parks and 13 hospitals were linked to carry out “Salute toAngels in White” caring activities for over 4600 medical staff; the “Community Star Integration Project” ● It carried out the “Blood Donation Together Continuation for Love” public welfare blood donation day

was launched innovatively carrying out autism partner community integration and family respite with 130 Sunwoda family members actively participating 102 successfully donating blood with a total

services; the “Salute to City Guardians Plan” was implemented delivering coolness and care to 1260 blood donation volume of 37300 milliliters.outdoor workers. The project received multi-party recognition and appreciation becoming a exemplary

practice for enterprises to deeply integrate into communities and fulfill social responsibility."Sunwoda Family" public welfare practice activities

2025 Key Performance

In 2025 Sunwodas total charitable investment was

Sunwoda Care Action-2025 Salute to City Guardians Plan

RMB 1085.39 ten thousand.Sunwoda received the Sunwoda Charity Foundation received

Employee Volunteering 6 social honors and recognitions including 5A rating in Shenzhen social

Sunwoda actively advocates employee participation in public welfare practices extending social responsibility from corporate Shenzhen Voluntary Blood Donation Public organization grade assessment

actions to individual employees making public welfare an important manifestation of employee value identification. Through Welfare Caring Unit

diversified public welfare projects it stimulates employee participation enthusiasm and continuously creates an upward and

virtuous corporate culture atmosphere.Governance

Accountability

Excellence in Governance

Pursuing Perfection 03

Sunwoda deeply understands and actively responds to national and global ESG policy trends

deeply integrating the concept of sustainable development into its corporate governance system.The Company has built a robust governance system comprehensively integrating anti-corruption

and business ethics standards into operational practices to continuously enhance transparency and

compliance levels. Meanwhile Sunwoda strengthens intellectual property protection to safeguard

corporate innovation achievements and customer technology rights and establishes sound

information security and privacy protection mechanisms to systematically protect data assets and

stakeholder trust. Under the sustainable governance framework the Company is committed to

responding to customers' high standards for supply chain transparency and compliance with reliable

control capabilities actively fulfilling corporate citizenship responsibilities and continuously building

a responsible and trustworthy modern business exemplar.Key ESG Topics in This Chapter

Stable Governance Intellectual Property Protection

Anti-Corruption and Business Ethics Information Security and Privacy Protection

Response to Sustainable Development Strategic Goals

Accountability

Response to SDGs GoalsAbout Message from About Annual Sustainability Sustainable Double Materiality

155 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 156

Ensuring Stable Operations Directors and Board of Directors

Sunwoda strictly follows the relevant requirements of the Company Law of the People's Republic of China Code of Corporate

Governance for Listed Companies and the Company's Articles of Association . Board members are elected or replaced by

the general meeting of shareholders in accordance with the law with a term of three years for each session and may be

Sunwoda always adheres to legal and compliant operation principles continuously optimizing corporate governance renominated and re-elected upon expiration. The Company attaches great importance to the construction and effectiveness

mechanisms to ensure clear responsibilities smooth coordination and efficient operation of all departments. The general improvement of The Board of Directors continuously improving the governance structure optimizing decision-making

meeting of shareholders effectively safeguards shareholders' legitimate rights and interests making prudent decisions on mechanisms and strengthening information transmission and supervision and checks-and-balances functions. Meanwhile

major matters. The Board of Directors fulfills its duties diligently establishing multiple professional committees to strongly the Company regularly organizes director training and exchanges continuously enhancing directors' professional competence

promote the implementation of corporate strategy. All governance levels communicate efficiently and connect orderly jointly and performance levels and promoting the standardized efficient and steady operation of The Board of Directors.supporting the steady development of the enterprise.Sunwoda always emphasizes the diversity independence and performance effectiveness of Board members committed

to building a Board team with reasonable structure complementary expertise and scientific decision-making continuously

improving governance standards and decision quality. The Proposal Regarding the Departure of Independent Directors upon

Corporate Governance Expiration of Their Terms and the Election of New Independent Directors was reviewed and approved by the General Meeting

of Shareholders. Currently the Company's Board of Directors comprises 7 directors including 3 independent directors and 1

female director. The 7 current directors possess rich skills and experience in management accounting and law.Corporate Governance Structure

The Company has established the Strategy and Sustainable Development Committee Remuneration and Appraisal

Committee Audit Committee and Nomination Committee. The Audit Committee as an important supervisory body in

corporate governance is responsible for coordinating internal and external audit resources and regularly reporting work

progress and major findings to The Board of Directors. Each 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 all other

committees are chaired by independent directors. The Remuneration and Appraisal Committee is chaired by a female

General Meeting of independent director laying a solid foundation for the scientific decision-making of The Board of Directors.Shareholders

2025 Key Performance

Board of Directors In 2025 we held over 40 meetings for governance bodies including The Board of Directors general meeting

of shareholders Independent Directors Special Meeting audit committee Remuneration and Appraisal

Committee Nomination Committee and Strategy and Sustainable Development Committee.Board Secretary

Strategy and Sustainable Nomination Committee

Development Committee

Remuneration and Appraisal

Committee Audit Committee

General Manager

Decision-Making Committee

DepartmentsAbout Message from About Annual Sustainability Sustainable Double Materiality

157 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 158

Investor Relations Management Key Investor Communication Channels

Sunwoda strictly follows relevant laws and regulations actively deepening interactive communication with investors To continuously optimize corporate governance structure and enhance the standardization level of investor relations

and potential investors continuously improving information transparency and enhancing market recognition and trust management Sunwoda has formulated and implemented the Management Regulations on Investor Relations in accordance

in corporate value. The Company has formulated and implemented the Management Regulations on Investor Relations with relevant national laws and regulations and combined with enterprise realities. The Company consistently adheres to the

and Management Regulations on information Disclosure establishing a sound investor management system to safeguard principles of "openness fairness and impartiality" implementing compliant and transparent information disclosure concepts

investors' legitimate rights and interests effectively protecting their right to know and participate in major matters and to ensure that all types of investors especially small and medium investors can obtain important company information in

improving corporate governance capabilities. a timely and equal manner. Through multiple channels the Company proactively conducts multi-level two-way interactive

communication conveying corporate operational dynamics and development strategies in an honest efficient objective

Information Disclosure Management true accurate and complete manner continuously improving investor trust and recognition and effectively safeguarding

their legitimate rights and interests.To ensure the standardization and transparency of information disclosure Sunwoda has established a sound Management

Regulations on information Disclosure strictly guarding against insider trading and standardizing the process of external

information disclosure. In 2025 the Company conducted self-inspection and optimization around key links in corporate

governance further improving internal control mechanisms strengthening implementation supervision and significantly 2025 Key Performance

enhancing the accuracy timeliness and quality of information disclosure effectively safeguarding investors' legitimate rights

and interests.

6 Time (s) investors Offline Communication 38 Issue (s) Problem Solved

2025 Key Performance

Sunwoda has maintained an A-level rating for information disclosure from the shenzhen Stock

Exchange for nine consecutive years demonstrating the Company's outstanding performance in

governance standardization and information disclosure. Sunwoda adheres to information transparency and compliant disclosure safeguarding investors' equal rights to obtain

information. With integrity as the foundation efficiency and low cost and interactive communication as the principles

through various forms including general meetings of shareholders regular and temporary announcements performance

briefings and investor hotlines the Company continuously carries out multi-level normalized exchanges.Institutional Investors Small and Medium Investors

General Meeting of Shareholders

Regular and Temporary Announcements

Performance Briefing

Investor Hotline

Interactive Q&A

Investor Research

RoadshowsAbout Message from About Annual Sustainability Sustainable Double Materiality

159 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 160

Risk and Compliance Management Anti-Corruption and Business Ethics

Sunwoda deeply integrates comprehensive risk management and compliance governance into corporate strategy and daily

operations to ensure the Company's steady operation and long-term sustainable development. We adhere to compliant and

honest operation building and continuously improving a “three lines of defense” compliance governance structure covering Strengthening anti-corruption and business ethics construction not only helps improve corporate governance effectiveness

the entire group. The Audit Committee as a professional supervisory body under the board of directors is responsible for and operational standardization but also creates significant social value and economic returns in long-term development. In

coordinating internal and external audit resources directly reporting audit results and compliance status to the board of 2025 Sunwoda systematically advanced anti-corruption work around four dimensions: institutional improvement structure

directors ensuring the independence and authority of risk management and compliance supervision work. This system has establishment daily management and integrity culture cultivation building a comprehensive clearly tiring and timely

clear rights and responsibilities with layer-by-layer linkage providing a solid organizational foundation for the effective responsive fraud prevention and response system effectively fortifying the defense for healthy enterprise development and

implementation of the compliance management system. providing strong support for the Company to achieve high-quality sustainable development.In terms of institutional system optimization a “Specialized Compliance OWNER” mechanism has been added clarifying

responsible entities assigning compliance management responsibilities “to each household and home” and making Business Ethics Management

department heads of the firstline of defense the first person responsible for compliance in their respective fields consolidating

management responsibilities through signing compliance task letters and other means. Meanwhile the Company has Sunwoda always adheres to the bottom line of business ethics comprehensively strengthening supervision and management

promulgated the Compliance Code of Conduct Management Regulations on Compliance Red Lines in Key Areas and Trade of its own and employees' code of conduct. The Company has established the Management Regulations on Compliance Red

Compliance Manual systematically sorting out prohibitive requirements and behavioral norms in multiple key areas including Lines in Key Areas clarifying core policies against bribery and corruption and supporting the launch of a series of institutional

business ethics information security environmental protection social responsibility and trade compliance setting clear documents including the Business Ethics Management Regulations Conflict of Interest Management Regulations Integrity

behavioral bottom lines for all employees. and Ethics Management Regulations and Anti-Fraud Management Regulations. In 2025 the Company revised the Anti-

Conducting 2025 Compliance Management Maturity Assessment to Continuously Commercial Bribery Management Regulations building an anti-bribery compliance system covering the entire business

C as e Optimize Compliance System Construction process and all management links driving the Company and supply chain to fully follow high-standard business conduct

guidelines in business activities.In 2025 based on compliance management system standards the Company

preliminarily built a compliance management maturity assessment model Integrity and Compliance Governance

evaluating various business units from five dimensions: organization systemrisk control culture and informatization. During the year the Company Sunwoda has established a four-layer integrity and compliance governance structure of “decision-making-management-organized 12 business units to carry out the first round of assessment execution-supervision”. The Audit Committee under The Board of Directors serves as the highest responsible body for

work continuously improving compliance management levels by identifying integrity and compliance management hearing special reports quarterly to ensure effective supervision and implementation

compliance risk exposures in business operations and analyzing weak links in of governance requirements. At the management execution level the General Manager Chief Compliance Officer and

the compliance system construction and operation of each unit. compliance departments lead the promotion of system construction and implementation deeply integrating compliance

2025 Compliance Management

Maturity Assessment Report Sample requirements into business processes. The Audit Center formulates annual internal audit plans based on the Company's

actual conditions conducts internal audit work across all business modules implements integrity compliance and business

Sunwoda has established and continues to operate a systematic and comprehensive risk management process which ethics supervision independently and impartially investigates violations and continuously improves the internal supervision

effectively covers the full cycle of risk identification assessment response and monitoring/review. The company requires all system. This structure features clear authority and responsibility with seamless connectivity at all levels forming a closed-

responsible departments to systematically identify external risks (such as regulations customer demands and technological loop management system from top-level design to frontline execution.changes) and internal risks (such as production safety and environmental pollution) related to their operations. The identified

internal and external environmental factors are categorized using SWOT analysis. Specific risk exposure is calculated using Integrity and Compliance Governance Structure and “Three Lines of Defense”

the formula "Risk Coefficient = Severity Level × Frequency Level" thereby determining risk appetite and priorities based

on clearly defined risk acceptance criteria. The company develops and implements tiered response measures including

risk avoidance mitigation and acceptance and strives to eliminate risks at their source wherever possible. The process Decision-Making Level

mandates at least one formal company-wide review of risks and opportunities annually to ensure its ongoing relevance.Furthermore the company integrates risk control standards into the early stages of product and service development Audit Committee

reflecting that a risk management culture is embedded throughout operations and decision-making processes. Management Level

Currently the company is progressively advancing the identification of

emerging risks assessing the potential impacts of factors such as policy Key Risk Management Initiatives

changes on future business. In response to requirements under the EU’s

New Battery Regulation—including full lifecycle carbon footprint disclosure ● Digital Risk Control Platform: Through Business Departments Compliance and Other Functional Audit Center

the use of recycled materials and the battery passport—the company data integration and intelligent analysis (Execution Level) Departments (Supervision Level)

has initiated related carbon footprint information disclosure implemented risk control is deeply embedded into (Management Level)

FSC sustainable certification for packaging materials and participated business processes and strategic

as a core contributing member in formulating the group standard T/ decision-making closed loops achieving Compliance Risk Risk Governance Audit

CIAPS 0049-2025 Battery Passport Guidance Identification and System Planning and Coordination Investigation Violation . This also serves as the real-time monitoring and early warning Implementation Accountability

foundation for steadily advancing pilot work on the battery passport. By of key risks significantly enhancing risk

tracking policy developments conducting risk impact assessments and response capabilities. First Line of Defense Second Line of Defense Third Line of Defense

implementing compliance measures Sunwoda continuously strengthens

its capability to identify and address emerging risks.About Message from About Annual Sustainability Sustainable Double Materiality

161 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 162

Management System Optimization Management Measures

Sunwoda has established comprehensive supervision and audit systems covering multiple dimensions including integrity and The Company has established and improved an integrity management mechanism around three stages of prevention audit

ethics anti-fraud and anti-bribery effectively supporting corporate governance and sustainable development with a sound monitoring and continuous optimization driving the normalization and systematization of integrity culture construction and

policy system. management practices.Supervision and Audit System List

● Provide online integrity training for all new employees and conduct

Integrity Training offline integrity training for employees in key positions high-risk

positions and all senior executives.Integrity and Ethics Management Gift and Entertainment Compliance

Regulations Management Regulations

● Established integrity culture walls in India and Vietnam carried out

Anti-Fraud Management Regulations Anti-Commercial Bribery Management Prevention integrity training in India and Thailand and released English versions Regulations

Stage Overseas Integrity of integrity regulations including Anti-Fraud Management Regulations

Reporting Acceptance and Investigation Whistleblower Protection Management Management Integrity and Ethics Management Regulations Conflict of Interest

Management Regulations Regulations Management Regulations and Gift and Entertainment Compliance

Management Regulations.Anti-Fraud Investigation Coordination

Management Regulations Removal Management Regulations

Conflict of Interest Management

Regulations

● Utilize data intelligence technology to track and analyze business

operation data achieving proactive identification and early warning of

Big Data Audit risks.Sunwoda deeply integrates integrity governance with enterprise operations building a systematic red line management

●

system to clarify boundaries for standardized operations and employee conduct and consolidating the foundation for By mining abnormal key indicators assist in discovering potential

sustainable development. To strengthen institutional execution the Company clarifies penalty standards and handling violations providing efficient and reliable technical support for audit

procedures for various violations supplemented by appeal and fault-tolerance mechanisms. verification and problem tracing.Audit

Monitoring

Stage Integrity ● Carry out integrity self-inspection push notifications and integrity

C as e Red Line Management Assessment examinations for all employees.In 2025 Sunwoda issued the Fifteen Red Lines for Employee Integrity clearly prohibiting fifteen red line

behaviors including accepting bribes theft information leakage and abuse of power for personal gain and

communicated these to all employees through the official website integrity WeChat public account emails ● Combine audit results and employee feedback to regularly review the

and integrity training. Feedback and actual effectiveness of business ethics and integrity management

Improvement mechanisms formulate improvement plans for weak links and verify

In 2025 Sunwoda issued the Eight Red Lines for Procurement clearly prohibiting behaviors including soliciting implementation through rectification re-examination.and accepting bribes improperly accepting banquets and entertainment activities conflicts of interest

infringement of trade secrets improper economic dealings abuse of power for personal gain collusion in

●

bidding and embezzlement. Keep pace with industry trends and company operational changes

dynamically optimize integrity training content and continuously

Education and strengthen employees' integrity and compliance awareness and

Training behavioral self-discipline through various forms including case

C as e Penalty Mechanism notifications integrity practice lectures integrity examinations integrity

Improvement self-inspections and prison visit integrity activities.and

In 2025 Sunwoda revised the Rewards and Punishments Management Regulations supplementing and Optimization

improving penalty standards and handling measures; simultaneously formulated the Exemption and Mitigation Stage Whistleblower

● Clarify reporting standards in the Anti-Fraud Management Regulations

of Penalty Application Form encouraging employees to actively cooperate with investigations with those who Incentive and provide corresponding reporting incentives to real-name

cooperate actively and show sincere attitudes eligible for discretionary leniency or reduced penalties. Mechanism whistleblowers.About Message from About Annual Sustainability Sustainable Double Materiality

163 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 164

Integrity Culture Construction

In June 2025 Sunwoda organized over 110 key position personnel from the Shenzhen area to visit

The Company continues to deepen integrity culture construction comprehensively enhancing employees' integrity awareness Shenzhen Prison for warning education. Through on-site visits and case studies all personnel deeply

and compliance consciousness through diversified systematic and normalized training mechanisms building a solid understood the heavy cost of illegal and criminal activities and the preciousness of freedom.ideological defense for sustainable development.In 2025 the Company implemented mandatory integrity training for new employees to prevent integrity risks from the

source. The daily integrity promotion system covers multiple online and offline channels including special lectures integrity

WeChat public account articles integrity promotion videos integrity knowledge examinations prison integrity visits and

integrity training for key positions achieving 100% integrity promotion coverage for all employees23. In 2025 Sunwoda

organized special training with the theme of “Engineering Integrity Governance Prevention and Correction Together”

strengthening the engineering team's awareness of integrity self-discipline and compliant operation capabilities.To strengthen communication effectiveness the Company released anti-commercial bribery themed articles in March

and December to enhance all-staff compliance awareness; simultaneously integrity culture walls were built for overseas Prison Visit Group Photo Prison Visit On-site Meeting

branches to promote the rooting of integrity concepts in cross-regional and cross-cultural environments. Additionally the

Company conveys integrity employment expectations to departing employees through exit interviews and text messages In June 2025 Sunwoda Liwinon Group held integrity and procurement risk compliance training with

continuously consolidating the influence of integrity culture. three locations linked to cover over 200 core personnel. The training systematically explained regulatory

red lines and integrity standards combined with real cases to warn of risks and organized an all-staff

integrity pledge. The meeting deeply analyzed typical procurement violations and their multiple risks

emphasizing that all personnel must firmly build red and yellow line defenses.

2025 Key Performance

integrity training sessions held throughout the year with

21 2797 participants

Liwinon Energy Integrity Training Liwinon Energy Integrity Training

In September 2025 Sunwoda jointly held special training with the India base in an “online+offline”

format covering 69 core personnel. Through case analysis the training warned of the harm of fraud

C as e Carrying Out Integrity Training to Build a Solid Ideological Defense emphasizing learning from cases and adhering to bottom lines; management required all personnel

to inherit the integrity culture and strictly abide by norms. Participants jointly reaffirmed their integrity

commitment and the Audit Center will continue to promote “Integrity Co-Construction” building a solid

The Company attaches great importance defense for overseas development.to integrity and compliance construction

continuously carrying out various forms of Sunwoda has established bilingual integrity culture walls in Chinese and Vietnamese. This initiative is

integrity training and cultural promotion in designed not only to clearly convey the company’s values of compliance and integrity to employees

daily operations comprehensively covering but also to help local employees better understand and abide by integrity guidelines so as to jointly

all business segments key positions and build an honest and transparent workplace culture.domestic and overseas production bases

effectively integrating integrity concepts into

daily management and business practices

and building a solid ideological defense for all

employees' integrity practice.Sunwinon Integrity Training

India Integrity Training India Production Base Integrity Vietnam Production Base Integrity

Culture Wall Culture Wall

23 Includes formal employees and outsourced employees.About Message from About Annual Sustainability Sustainable Double Materiality

165 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 166

Sunwoda has established and improved a supervisory audit system continuously consolidating the foundation for integrity

2025 Key Performance risk prevention and control through institutional norms regular integrity training and integrity culture publicity. Training

content covers key matters such as whistleblowing channel usage and whistleblower protection; publicity carriers include the

"Integrity Sunwoda" WeChat public account integrity culture walls employee integrity advocacy letters supplier integrity

Integrity Self-inspection Integrity Examination Examination Pass Rate advocacy letters and the Basic Guidelines for Supplier Cooperation promote integrity requirements and whistleblowing

13328 26600 87% channels to employees and partners. The Company actively advocates and encourages employees to speak up and report person-times person-times promptly when discovering abnormal behaviors or potential risks jointly creating a fair transparent and honest business environment.

Carrying Out Special Audits Supplier Integrity Interviews Fair Competition

88 115 Sunwoda always adheres to legal and compliant operation fully complying with applicable laws and regulations items times international treaties regulatory policies and industry guidelines on anti-unfair competition and anti-monopoly in business

locations covering the Anti-Unfair Competition Law of the People's Republic of China the Anti-Monopoly Law of the People's

Republic of China and the Provisions on Prohibiting Monopoly Agreements the Provisions on Prohibiting Abuse of Market

Dominance the Provisions on Prohibiting Abuse of Intellectual Property to Exclude or Restrict Competition and other core

Reporting Mechanism regulatory systems. In 2025 to further strengthen compliance management the Company clarified basic requirements for

anti-unfair competition and anti-monopoly based on the Company's Compliance Code of Conduct and the Business Ethics

Sunwoda attaches great importance to compliance management and corporate governance having established and Management Regulations combined with latest regulatory requirements and enterprise practices.continuously improved institutional systems including the Reporting Acceptance and Investigation Management Regulations

and Anti-Fraud Management Regulations aiming to timely identify and prevent various illegal and non-compliant behaviors

and build a solid defense for the Company's legal and compliant operation. We encourage internal and external personnel 2025 Key Performance

to actively report possible unhealthy tendencies improper practices and other violations in company operations ensuring

smooth reporting paths for multiple online and offline channels. Sunwoda provides anonymous reporting options through

its official website and other grievance channels allowing whistleblowers to provide only necessary contact information Number of incidents of litigation or major administrative Amount involved in litigation or

for investigation and feedback purposes. The Company has simultaneously established whistleblower reward standards to penalties resulting fromthe company's unfair competition major administrative penalties due

effectively prevent and mitigate potential risks supporting the Company's healthy and sustainable development. behavior during the reporting period to unfair competition

The Company always adheres to respect and protection for reporting behaviors resolutely eliminating any form of retaliation.To this end the Whistleblower Protection System has been specially formulated clarifying and implementing a series of RMB

protection mechanisms to effectively safeguard whistleblowers' personal information security and legitimate rights and 0 0

interests creating a fair just and safe supervision environment.Complaint and reporting channels are uniformly managed by the Reporting Channels

investigation team of the Supervision Department of the Audit Center

implementing a registration ledger system with dedicated personnel

responsible full-process tracking and closed-loop handling; reporting Email Reporting:information received through email official website and “Integrity jubao@sunwoda.comSunwoda” WeChat public account is uniformly directed to the reporting

email centrally managed by dedicated personnel. Telephone Reporting:

0755-23053561 or 18126270617

When fraud or corruption behaviors are discovered the Company

immediately initiates an investigation mechanism with the Audit Center WeChat Reporting:

leading the establishment of a special investigation team. Under strict 18126270617(add WeChat)

confidentiality it rapidly assesses the scope and complexity of the incident Official Website Reporting:

and reports preliminary situations to The Board Audit Committee at the www.sunwoda.com/jubao

first opportunity. After investigation a complete investigation report

In-person Reporting:

is formed and submitted to The Board of Directors or its authorized

institutions for approval. If violations are verified the Company will Report in person to the head of the Audit Department

reward real-name whistleblowers according to relevant reward and

punishment systems and protect their legitimate rights and interests; Mail Reporting:

pursue corresponding responsibilities of relevant responsible personnel Sunwoda Audit Department Head

and units in accordance with laws and regulations; and if behaviors are No. 2 Longyao Road Shilong

suspected of violating national laws and regulations the Company will Community Shiyan Street Bao'an District Shenzhen Telephone:

resolutely transfer them to judicial authorities for handling according to 18126270617

law effectively safeguarding the seriousness and fairness of corporate

governance.About Message from About Annual Sustainability Sustainable Double Materiality

167 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 168

Intellectual Property Protection Risk Management

To effectively protect its own intellectual property and prevent risks of infringing others' intellectual property Sunwoda

Sunwoda continues to advance the construction of the intellectual property system clarifying management responsibilities has established a systematic and process-oriented intellectual property risk management mechanism. According to the

and processes incorporating intellectual property management into corporate strategy and daily operations strengthening Intellectual Property Risk Management Regulations the Company deeply embeds intellectual property risk screening into the

risk identification and prevention and control measures and setting measurable management indicators. Through full process of new product R&D and project delivery clearly requiring comprehensive risk identification assessment and

establishing a sound intellectual property protection system Sunwoda always works with partners to put user interests first response measure deployment before formal project delivery achieving pre-positioned and closed-loop risk prevention and

ensuring that its own brand reputation and competitive advantages are properly protected while avoiding infringement control. During the reporting period the Company continuously conducted intellectual property risk assessment and disposal

of others' intellectual property. Going forward we will continue to work with partners to build an interconnected industrial with related risks remaining under control effectively ensuring business compliance.ecosystem and contribute to the steady growth of the new energy industrial chain.To systematically prevent intellectual property infringement risks the Company has built an intellectual property risk

management mechanism:

Governance

First conducting patent searches and infringement risk assessments (FTO analysis) before

Sunwoda has established a management system covering the full lifecycle of intellectual property. The Company has entering target markets to systematically identify potential patent obstacles;

optimized and implemented documents including the Regulations on Group-based Intellectual Property Management

Regulations on Trademark and Copyright Management and Regulations on Patent Management conducting standardized

management of intellectual property creation application utilization protection and management. To further strengthen Second for identified risks proactively adjusting implementation paths through technical

intellectual property risk prevention and control in the R&D process the Company has formulated the Intellectual Property solution optimization or design circumvention to ensure the legality of development and

Risk Management Regulations focusing on potential infringement risk identification and prevention during R&D and product launch;

enhancing risk early warning and response capabilities. At the same time Sunwinon has supportingly issued the R&D

Intellectual Property Management Regulations clarifying intellectual property protection mechanisms in R&D projects Third for core risks that are difficult to circumvent preparing legal contingency plans in

promoting the transformation and application of intellectual property achievements stimulating employees' innovation advance including invalidation evidence collection and patent stability analysis enhancing

enthusiasm and enhancing enterprise core competitiveness. the proactivity of risk response.By establishing and improving a system covering the full lifecycle of intellectual property Sunwoda not only effectively Through the above mechanism the Company has effectively reduced legal disputes and commercial risks arising from

safeguards the legitimate rights and interests of its own innovative achievements but also strengthens respect and infringement of third-party intellectual property during product delivery.protection for others' intellectual property from the source. Particularly through the implementation of the following policy

documents the Company has established a full-process infringement risk prevention and control mechanism from R&D

project initiation to achievement application effectively preventing risks such as technology imitation patent conflicts and Metrics and Targets

unintentional infringement ensuring that the enterprise remains compliant and steadily advances in innovative development.Group Intellectual Property Goals for 2025 2025 Target Achievement

Regulations on Intellectual Property Regulations on Patent Quality Annual patent application targets Cumulatively completed 3056 patent applications

Rewards Penalties and Audits Management of 2172 pieces Exceeding the annual target by 141%

Regulations on Patent Management

Regulations on Group-based PCT international patent application PCT international patent applications totaled 261

Intellectual Property Management Sunwoda Intellectual

Property Regulations on Trademark and targets of 249 pieces With 189 entering national phase achieving 105% of the annual target

Protection Copyright Management

System

Regulations on Patent Acquisition Regulations on Technical Secrets 2025 Key Performance

Total Patent Applications Additions in 2025

Strategy Invention Patent 4028 951

Utility Model Patent 8276 2046

The Company continues to strengthen patent risk prevention and control capability construction improve risk response Design Patent 341 59

mechanisms and establish rapid response processes for potential patent disputes to ensure timely assessment and swift

handling after problems occur minimizing impact to the greatest extent. The Company achieves information sharing and Pct Patent 608 261

collaborative linkage by integrating internal forces including legal R&D compliance and intellectual property departments Overseas Patent 344 189

and coordinating with external professional institutions enhancing overall response efficiency. Meanwhile the Company

plans to introduce professional talent with international vision and practical experience continuously improving patent risk Granted Patent 7378 (including 48 overseas patents) 2109 (including 48 overseas patents)

identification analysis and response capabilities and enhancing risk resistance capabilities in the global market.About Message from About Annual Sustainability Sustainable Double Materiality

169 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 170

Building Digital Ecosystem The Company continues to improve the information security and privacy protection system having formulated over 40 relevant institutional documents including the Information Security Management Manual Information Security Management

Regulations Confidentiality Management Regulations and Privacy Protection Management Regulations and conducting

systematic review and updates annually to ensure compliance and applicability. For data security protection the Company

has formulated the Data Security Management Regulations clarifying data classification and grading principles and full

lifecycle management requirements. In 2025 the Company completed review and revision of over 30 information security

Information Security and Privacy Protection and privacy protection systems providing solid institutional guarantees for the Company's information security and data

compliance management.Sunwoda always regards information security as the cornerstone of sustainable enterprise development adhering tothe management philosophy of “enhancing information security awareness implementing information security controls Risk Preventionreducing information security risks and ensuring business continuity and stability” continuously building and improving

a comprehensive information security protection system covering management systems technical protection and data The Company systematically optimizes the collaborative mechanism of personnel processes and technical tools in early

security. warning response and joint prevention and control around data leakage prevention and network threat prevention

and control comprehensively reinforcing security strategies building a closed-loop defense system covering pre-event

Improving Governance prevention in-event response and post-event review significantly improving the group's overall security operation level. We simultaneously advance the information security network construction of Vietnam Sunwoda Zhejiang Liwinon and Winone

Pujiang parks strengthening cross-regional security protection capabilities and ensuring stable operation of global business.The Company has established an Information Security Organization Committee led by The Chairman of The Board serving

as the highest decision-making body for strategic planning and major decisions responsible for approving policies and plans In terms of privacy protection the Company continuously follows up on regulatory and customer requirements improves

and supervising regulatory compliance. To ensure management implementation the Company has extended the security privacy protection processes and statements implements the Privacy Protection Management Regulations and implements

organizational structure to various business divisions and subsidiaries covering all business segments and core links full lifecycle standardized management for key links including data collection storage use deletion and cross-border

clarifying the first person responsible for information security who is responsible for establishing accountability systems transmission effectively ensuring compliant operation of domestic and overseas business.investigating hidden dangers and regularly reporting on performance. The committee has a management representative

responsible for daily coordination system construction and security culture building forming a closed-loop management 2025 Key Performance

system with layer-by-layer implementation.In 2025 the Company continued to deepen the information security governance system and comprehensively

strengthen internal audit mechanisms. In terms of risk prevention and control the Company organized

Information Security Governance Structure information security risk self-assessment work for 13 business divisions and 8 functional departments

and conducted reviews for 6 business divisions and 4 functional departments. The Company implemented

Serves as the highest decision-making body for the Company's information security work 2 information security internal audits throughout the year including annual internal control self-inspection ●

responsible for making decisions on major information security matters and information security management system internal audit covering the headquarters and subsidiaries. In

Information ● Reviews and approves the Company's information security objectives and information security

addition through over 10 monthly network and information security inspections the Company normalized the

advancement of special work including account permission review log audit and emergency drill evaluation

Security management policies

Organization continuously strengthening security management. All identified information security risks have been equipped ● Implements national and regional information security policies policies laws and regulations

Committee with corresponding control measures with risk levels all assessed as low risk and disposal completed according rules and regulations and supervises implementation to risk acceptance principles with overall risks controllable.● Provides strategic suggestions on the Company's information security system construction and The Company actively responds to regulatory and compliance requirements and accepts external audits. In

other major security issues driving improvement

2025 Sunwoda and its subsidiaries accepted external audits 31 times covering third-party and second-party

● Presides over information security committee meetings regularly reports on security work reviews all passed smoothly effectively supporting business compliance. On this basis the Company also

Information progress

Security invited third-party professional institutions to conduct 1 information security audit building a solid security

●

Management Summarizes and identifies problems in security work submits major issues to company foundation for the Company^s high-quality development.Representative leadership meetings for solution research

● Organizes information security work summaries carries out annual selections In 2025 with “zero compromise” as the core goal of information security the Company comprehensively

advanced management improvement and technical improvement.● Implements various resolutions of the Company's information security committee coordinates

information security work in their department

● Establishes and improves the information security accountability system for their department/

business division/subsidiary clarifying position responsibilities

First Person ● Organizes the formulation of information security management processes and systems for their

Responsible department ensuring compliant implementation

for Information

Security ● Regularly supervises and inspects information security hidden dangers in their department

driving closed-loop rectification

● Timely reports information security incidents to the information security committeeAbout Message from About Annual Sustainability Sustainable Double Materiality

171 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 172

Company Management Achievements This Year Digitalization

System Construction Under the background of rapid digital development Sunwoda regards digitalization as one of the important directions for

enterprise development actively promoting digital transformation carrying out construction around business needs and

100% coverage of ISO 27001 security standards certification pass rate and security certification coverage of improving operational efficiency and management capabilities.

business requirements; in 2025 ISO 27001 group certification newly added the energy technology segment

with on-demand certification coverage reaching 100%. A total of 31 internal and external audits were Digital Strategy Planning

completed throughout the year (including ISO 27001 group certification audits) strongly supporting group

compliance and business expansion. The internal audit professional team expanded by 45 people a 2.5-fold Sunwoda advances digital construction starting from customer needs and business reality. The Company clarifies key tasks

increase from 2024 with significantly improved team professionalism and practical capabilities. around six aspects: business intelligence data assetization product standardization industrial interconnection software

localization and security intelligence continuously promoting digital implementation and improving business efficiency and

collaboration capabilities.Process Optimization

Evaluated 30 national and industry regulations and standards completed 9 external regulation internalization Business Intelligence Data Assetization Product Standardization

system transformations driving embedding of compliance requirements into management processes. Relying on AIGC technology Establish a sound data Promote product standardization

Embedded security control nodes in 20 key business processes achieving risk source control. focusing on R&D processes governance framework combine optimize product and project

integrating simulation+artificial AI technology to achieve management processes and

intelligence methods to deep application of data and better support rapid business

accelerate R&D process iteration. accelerate the process of data implementation.Security Drills transformation into assets.Organized and carried out 2 full-group practical drills covering phishing attacks and ransomware scenarios;

simultaneously carried out 7 normalized emergency drills covering typical scenarios including data center Industrial Interconnection Software Localization Security Intelligence

firefighting network attacks and data leakage effectively improving emergency response capabilities.Connect the full lifecycle data Accelerate the software Build a globally unified security

chain of batteries build a battery localization process tackle core operations center simultaneously

passport digital system and underlying technologies and build data security protection

Safety Culture Building improve product traceability gradually reduce dependence on mechanisms and cloudintelligent

and industrial collaboration external software. computing infrastructure to

A total of 18 information security training sessions and examinations were held throughout the year with transparency. ensure digital security.cumulative participation of 85000 person-times an 8.4-fold increase from last year; 21 security-themed

articles were pushed through WeChat for Work with total views reaching 151000 a 1.5-fold year-on-year

increase; Cybersecurity Publicity Week activities covered over 20000 people achieving linkage across 4 major

plants implementation of 6 major themes and release of 1 set of safety manuals deeply embedding safety Digital and Intelligent Empowerment

awareness.Sunwoda regards intelligent manufacturing as a key path to improving product quality and manufacturing efficiency

deeply integrating information technology and manufacturing processes to promote production links toward automation

Achievements in Company Technological Advancement This Year intelligence and high efficiency. Based on years of manufacturing practice the Company has extracted seven core intelligent

This year Sunwoda achieved significant results in technical capability enhancement: in the attack defense field it manufacturing technologies of “ABCDEFG” building a systematic extreme manufacturing system: with the intelligent

strengthened attack detection and proactive defense capabilities comprehensively deploying anti-virus industrial control manufacturing platform as the hub achieving cross-system cross-platform data interoperability and collaborative operation

anti-virus desktop terminal prevention and control and network boundary reinforcement measures building a multi-layered forming an integrated digital ecology integrating R&D production and management providing strong support for the

in-depth defense system; in data leakage prevention it advanced data classification and grading management completed implementation and continuous optimization of intelligent manufacturing.the of sensitive word libraries achieved full coverage of core data leakage prevention capabilities and effectively prevented

risks of illegal data exfiltration.“ABCDEFG” Seven Intelligent Manufacturing Technologies

2025 Key Performance

A B C D E F G

● In 2025 the Company organized 18 information security training sessions and examinations covering a

cumulative total of 85000 person-times comprehensively enhancing all-staff safety awareness. Artificial Cloud Edge Radio

Intelligence Big Data Computing Digital Twin Computing Frequency 5G

● In 2025 the Company had no information security incidents. TechnologyAbout Message from About Annual Sustainability Sustainable Double Materiality

173 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 174

In 2025 with “digital drive intelligent leadership” as the core Sunwoda comprehensively upgraded its digital strategy.The Company deeply integrated eight technology pillars of “Internet+IoT+Big Data+Cloud Computing+AR/VR+AI+Digital 2025 Key PerformanceTwin+Blockchain” building an intelligent operation system covering the full processes of R&D production and supply chain.In the R&D field the Company deepened FMEA (Failure Mode and Effects Analysis) application and introduced new- In 2025 we achieved fruitful results in AI-empowered manufacturing:

generation digital project management tools significantly improving R&D collaboration efficiency and achieve transformation

speed. In the production process through launching the intelligent warehouse management system (WMS) and deepening

manufacturing execution system (MES) application the Company achieved full-process digital control of processing ● Sunwoda's technical achievements in the key technologies and industrialization application of intelligent

effectively improving equipment precision production yield and product quality stability. manufacturing and defect detection for the lithium battery industry passed the CAAI Science and Technology

Achievement Appraisal organized by the Chinese Association for Artificial Intelligence and were recognized

In supply chain management the Company introduced intelligent planning and scheduling technology achieving automated as "internationally leading." The appraisal was conducted by an expert panel led by two academicians.collaboration of demand forecasting inventory optimization and logistics scheduling through algorithm-driven methods

greatly improving supply chain response speed and execution accuracy. ● The multimodal welding defect detection project achieved an industryfirst successfully applied to all steel

shell production lines of customers receiving high customer recognition.In data governance the Company completed integration of 50 core business systems building an asset library covering

over 300 data models and over 500 application models providing comprehensive data insights for strategic decision-making ● The New Generation Artificial Intelligence-Distributed Computing System for Industrial Intelligence project

and operational optimization. At the same time the Company actively laid out artificial intelligence technology applications successfully passed the acceptance inspection by the Guangdong Provincial Department of Science and

independently developed big data-based equipment intelligent optimization systems AI large model-driven industrial Technology was officially approved as a provincial and ministerial-level science and technology project and

knowledge platforms and comprehensively introduced predictive maintenance technology into lithium-ion battery intelligent successfully obtained government special subsidies.production lines driving dual leaps in quality and efficiency across business segments through technology reuse.● Awarded Second Prize of Science and Technology Progress Award at 2025 Wu Wenjun AI Science and

In smart park construction the Company achieved real-time monitoring and intelligent control of park security energy Technology Awards with related technologies deeply applied in production lines of the Company and industry

efficiency access and environmental data through deploying 3D visualization digital twin platforms promoting park leading enterprises.management transformation toward refinement and visualization.Responsible Artificial Intelligence Management C as e “Manufacturing Digital Transformation” Research Jointly Promoting Digital Construction

Sunwoda is committed to developing and applying artificial intelligence (AI) technology in a safe reliable and ethical manner

and has established a systematic AI management program to ensure its responsible development. This program covers the In July 2025 the Chinese Academy of Engineering "Manufacturing Digital Transformation" Guangdong

entire AI lifecycle aiming to manage risks enhance transparency and create sustainable value. Academician Delegation visited Sunwoda for research. As a key recommended new energy

representative enterprise in Guangdong Province the Company showcased its intelligent transformation

The core elements of our responsible AI management framework include: achievements to the academicians and expert team. This research was an important measure for

Guangdong Province to promote the manufacturing digital transformation strategy and Sunwoda's

● Access Control and Transparent Identification: Strict permission management is implemented for sensitive practical experience provided important reference for the industry's intelligent upgrading.AI functions such as campus monitoring and restricted area detection in production. All AI-generated content

and decision-support results are clearly labeled to ensure transparency in human-computer interaction.● Full Lifecycle Model Governance: An AI model online monitoring mechanism is established to regularly detect

and correct model drift; fairness and bias audits are conducted periodically on deployed models (such as for

quality inspection and battery cell sorting) to continuously ensure their performance and equity.● Sustainability Management and Stakeholder Engagement: Through energy-saving renovations of our self-

owned data centers collaboration with suppliers to optimize computing power and dynamic regulation using AI

energy efficiency models we aim to reduce the AI ecosystem footprint. At the same time we have established

a clear user appeal process; third parties affected by AI decisions can request reviews forming a closed-loop

management system.● Impact Quantification and Capability Building: We systematically evaluate and quantify the substantial

contributions of AI applications in energy saving consumption reduction and quality improvement. In addition

the company regularly conducts training for relevant staff on AI ethics safety and compliance to ensure the

responsible use of technology.Currently the company's AI management system is built with reference to international standards such as ISO/IEC 42001

and efforts are actively underway to pursue relevant external certifications to further enhance management normativity

and credibility. In the future Sunwoda will continue to improve this program to ensure that the application of AI technology “Manufacturing Digital Transformation” Research

progresses in synergy with the company's sustainable development goals.About Message from About Annual Sustainability Sustainable Double Materiality

175 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 176

Appendix Disclosure Item Unit 2023 2024 2025

Purchased steam consumption GJ / 579568.70 2504654.8726

Total Comprehensive Energy

Key Performance Indicators Consumption Tonne of standard coal / 240658.80 379716.9527

Direct Energy Consumption Tonne of standard coal / 42496.34 54322.3728

Disclosure Item Unit 2023 2024 2025

Indirect Energy Consumption Tonne of standard coal / 198162.46 310147.4429

Economic Performance

Comprehensive Energy Consumption Tonne of standard

Revenue RMB ten thousand 4786200.70 5602063.41 6324625.21 Intensity coal per million yuan / 4.30 6.00 revenue

Net Profit Attributable to Shareholders

of the Company RMB ten thousand 107600.83 146824.06 105723.45 Clean Energy Usage Tonne of standard coal / 94982.53 114856.68

30

Earnings Per Share RMB/share 0.58 0.79 0.58 Clean Energy Usage as Proportion of

Comprehensive Energy Consumption % / 39.47 30.25

Gearing % 59.07 63.44 71.25 Natural gas Tonne of standard coal / 42174.68 53985.42

Total tax payments RMB ten thousand 112300.00 128488.00 141414.78 Natural gas proportion % / 44.40 47.00

Clean

Environmental Performance energy Solar Tonne of standard coal / 11659.26 15247.1431

consumption

Environmental Compliance Management by energy Solar proportion % / 12.28 13.27

Number of penalty incidents for type

violations of environmental protection Case / 0 0 Other Tonne of standard coal / 41148.59 45624.12

laws and regulations Other proportion % / 43.32 39.72

Amount of major administrative

penalties imposed by the Ministry Greenhouse Gas Emissions

of Ecology and Environment and RMB ten thousand / 0 0

other relevant departments for Scope 1 Tonne of CO2 equivalent 102959.97 110217.78 127446.67

environmental incidents

Scope 2 (market-

Energy Utilization based) Tonne of CO2 equivalent 880010.62 872270.66 1331789.81

Scope 2 (location-

Stationary diesel fuel consumption Tonne / 1.01 0 based) Tonne of CO2 equivalent / / 1356529.52

Official vehicle gasoline consumption Liter 191512.76 294028.53 286119.10 Scope 3 (total) Tonne of CO2 equivalent / / 288822.51

Greenhouse

Official vehicle diesel fuel consumption Liter 3773.00 27632.34 22515.60 gas Scope 3 (Category Tonne of CO2 equivalent / / 256296.55

emissions 3-Fuel)

Natural gas consumption Cubic metre 14178905.76 31710282.33 44458054.29 Scope 3 (Category

5-Waste) Tonne of CO2 equivalent / / 17701.75Total purchased

electricity consumption MWh 929540.59 1355444.37 1829190.03 Scope 3 (Category

6-Business Travel) Tonne of CO2 equivalent / / 10342.69

Purchased Regular mains

electricity electricity

MWh / / 1796973.03 Scope 3 (Category

Market-based 7-Employee Tonne of CO2 equivalent / / 4481.52

purchased green MWh / 1520.00 32217.0024 Commuting)

electricity

Photovoltaic self-generation and self-

consumption MWh / 94800.00 124126.98 26 During the year due to the expansion of the Company's production capacity purchased steam consumption increased accordingly.

27 Define the comprehensive energy consumption calculation boundary in accordance with the Shenzhen Stock Exchange Self-Regulatory Guide for

Purchased Green Electricity Certificates MWh / 334574.00 339209.0025 Listed Companies No. 3 — Sustainability Report Preparation.

28 Define the direct energy consumption calculation boundary in accordance with GB/T 2589-2020 General Rules for Calculation of the

Comprehensive Energy Consumption .

29 Define the indirect energy consumption calculation boundary in accordance with GB/T 2589-2020 General Rules for Calculation of the

24 During the year in accordance with relevant regulatory policy requirements the Company increased the proportion of green electricity usage. Comprehensive Energy Consumption .

25 The data disclosed for this reporting period covers only Green Electricity Certificates (GECs) that were purchased and redeemed between May 30 Clean energy consumption=Natural gas consumption+Liquefied natural gas consumption+Purchased green electricity+Purchased

2025 and March 2026 as it is affected by the actual redemption timeline. Data on GECs that have not yet been redeemed will be disclosed at a GECs+Photovoltaic self-generation and self-consumption

later stage depending on the circumstances. 31 Solar clean energy consumption statistics include the Company's centralized and distributed photovoltaic self-generation and self-consumption.About Message from About Annual Sustainability Sustainable Double Materiality

177 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 178

Disclosure Item Unit 2023 2024 2025 Disclosure Item Unit 2023 2024 2025

Total greenhouse gas emissions (Scope Total Hazardous Waste Tonne 1619.72 2622.34 4664.8735

1+Scope 2) Tonne of CO2 equivalent 982970.59 982488.44 1459236.48

Tonne of CO Incineration with 2 Tonne / 1720.34 3222.31

GHG Emissions Intensity equivalent/ten 0.21 0.18 0.23 energy recovery

thousand revenue Hazardous Incineration without

waste by energy recovery Tonne / 281.51 319.27

Resource Management and Circular Economy disposal

method Landfill Tonne / 41.73 27.66

Total Water Withdrawal Cubic metre 3697300.00 6513024.00 6711023.35

Other Tonne / 578.75 601.83

Total water consumption Cubic metre / / 3812625.41

Total Non-hazardous Waste Tonne 4482.57 45810.81 77234.2036

Total Water Discharge Cubic metre / 5128696.22 2898397.94

Incineration with

Total packaging materials used for energy recovery Tonne / 4013.15 51739.31

finished products Case / 97150695 /

32

Non- Incineration without

energy recovery Tonne / 10872.95 0Pollutant Emissions hazardous

waste by

Industrial Wastewater Discharge Landfill Tonne / 1459.95 0

Volume Cubic metre 362306.00 52472.50 223165.94

disposal

method Recycling/Reuse Tonne 3586.06 22242.59 25494.89

BOD emissions in

wastewater Tonne 14.17 3.29 3.15 Unknown Tonne / 7222.17 0

COD emissions in

wastewater Tonne 53.07 5.69 19.35 Social Performance

NH3-N emissions in Tonne 4.89 4.01 1.91

Pollutant wastewater Talent Management and Development

Emissions SS emissions in Tonne 7.31 5.79 2.66 Total Number of Employees Person 47448 54292 63696 wastewater

TP emissions in Tonne 0.76 1.36 0.25 Male employees Person 32519 37645 44299 wastewater By Gender

TN emissions in Female employees Person 14929 16647 19397

wastewater Tonne 3.22 3.90 3.19 Employees aged 50

and above Person 695 862 641 Total Waste Gas Emissions Cubic metre / 4934989756.00 10305107886.0033

Employees aged 30-

SOx emissions in waste By Age Person 22572 25976 30367

gas Tonne 0.11 2.75 4.67

50

Employees aged

NOx emissions in waste below 30 Person 24181 27454 32688

gas Tonne 5.59 22.53 31.95

Full-time employees

PM emissions in waste under labor contract Person 46531 50287 60007

gas Tonne 6.83 7.34 22.97Waste

Treatment Full-time employees VOCs emissions in Tonne 5.64 18.18 28.03 By under labor dispatch

Person 6 55 42

waste gas Employment

NMHC emissions in Type Part-time employees Person / 0 0

waste gas Tonne 18.20 16.92 18.04 Employees under

ODS emissions in Kilogram of trichloroflu- / 1.50 5.9734 other employment Person 911.00 3950 3647 waste gas oromethane equivalent forms

32 This data is still in the internal collection and verification stage and has not yet formed final disclosure results.

33 During the year due to the expansion of the Company's production capacity total waste gas emissions increased accordingly.

34 During the reporting period the Company further improved the scope of this data management incorporating fugitive data from segments

other than the Power segment resulting in a corresponding increase in ozone-depleting substances (ODS) emissions in waste gas. Historical 35 During the year due to the expansion of the Company's production capacity total hazardous waste increased accordingly.data has not been restated. 36 During the year the Company refined waste data management and further clarified disposal categories.About Message from About Annual Sustainability Sustainable Double Materiality

179 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 180

Disclosure Item Unit 2023 2024 2025 Disclosure Item Unit 2023 2024 2025

Production personnel Person 31396 36856 42674 Employee satisfaction/engagement

average score Score / 4.25 4.26

Technical personnel Person 8442 8389 10306

Employee satisfaction survey coverage

By Function Sales personnel Person 628 755 822 rate

%/92.0796.43

Financial personnel Person 327 331 397 Total training hours received by

employees Hour 290233 224117 1829783

Administrative

personnel Person 6655 7961 9497 Average training hours per employee Hour / / 45.15

Employees with Length of time

doctoral degree Person 133 147 191 Male Hour / / 40.16 employees

Employees with receive training Female Hour / / 54.94

master's degree Person 2002 2308 2835 by gender

Employees with Person 8338 9550 11099 Employees Male % / / 100By Education bachelor's degree training

Employees with coverage rate

associate degree Person 7503 9974 12812

Female % / / 100

by gender

Employees with Occupational Health and Safety

education below Person 29472 32313 36759

associate degree Proportion of

employees covered

Employees working in by occupational % / 100 100

Mainland China Person 47399 53948 61335 health and safety

Employees working Occupational management system

By Region in Hong Kong Macao Person 16 26 037 health

and Taiwan and safety

Proportion of

training employees receiving

%/98100

Employees working 38

overseas Person 33 318 2361 Person-times Person-time / 408217 368386

Ethnic minority employees Person 5275 5841 8125 Total hours Hour / 865011 650825

Management employees Person 5610 76 279039 Employee occupational health

Male management examination rate

%/100100

Management employees

Person 4468 52 2216

Number of employees with

Gender Female management occupational diseases

Person / 0 0

employees Person 1142 24 574

Number of major safety accidents Case / 0 0

Proportion of female management

employees % 20.36 31.58 20.57 Employee Number Person / 0 0

Employee turnover rate % / / 28.74 deaths due to work-related

Male employee Rate % / 0 0

Employee % / / 29.75 injuriesturnover rate

turnover rate Employee Coverage rate % / 100 100

by gender Female employee

turnover rate % / / 26.31

work injury

insurance Investment amount RMB ten thousand / 133.89 1834.1641

Total number of incidents penalized for

violating employee employment and Time / / 040 Employee Coverage rate % / 100 100

labor laws and regulations safety

production

liability Investment amount RMB ten thousand / 192.09 119.62

insurance

R&D and Innovation

37 During the year the Company adjusted its data management system using workplace information from the internal SAP system as the data

source. Number of R&D personnel Person 8442 8389 10306

38 This year the Company has further improved the scope of data collection to ensure data accuracy.

39 During the year the Company adjusted and optimized the definition specifying "management" as employees categorized under the internal job R&D investment amount RMB 100 million 27.11 33.30 43.79

family of "management group".

40 During the year the Company defined the statistics of incidents penalized for violations of employee employment and labor laws and

regulations covering incidents penalized for violations of laws and regulations related to employee working hours and holidays employee

promotion and equal opportunities employee anti-discrimination and diversity and other related matters 41 During the year the Company purchased work-related injury insurance for all eligible employees in compliance with laws and regulations.About Message from About Annual Sustainability Sustainable Double Materiality

181 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 182

Disclosure Item Unit 2023 2024 2025 Disclosure Item Unit 2023 2024 2025

Proportion of R&D investment to main

business revenue % 5.66 5.94 6.92

Rural Revitalization and Social Contribution

Product and Service Safety and Quality Rural revitalization investment amount RMB ten thousand / 241.90 171.04

Number of people benefited by rural

Customer satisfaction rate % / 92.89 93.24 revitalization Person / 215912 36383

Product Inspection Pass Rate % / 99.29 99.52 Public welfare and charitable

expenditure amount RMB ten thousand 1453.30 592.08 1085.39

Product Number Case 0 0 0 Educational

recalls due to assistance RMB ten thousand / / 94.79Social public

quality issues Rate % 0 0 0 welfare Environmental

Amount involved in major safety investment protection

RMB ten thousand / / 0.66

and quality liability incidents related amount Charitable donations RMB ten thousand / / 989.94

to products and services during the RMB ten thousand / 0 0

reporting period Employee volunteer service person-

times Person-time / 3178 127

42

Data Security and Customer Privacy Protection

Volunteer activity hours Hour 870 1507 83243

Data security Number Case 0 0 0 Governance Performance

incidents Amount involved RMB ten thousand / 0 0 Number of litigation or major

Customer Number Case / 0 0 administrative penalty incidents due to

privacy unfair competition during the reporting

Case 0 0 0

leakage periodAmount involved RMB ten thousand / 0 0

incidents Amount involved in litigation or major

Supply Chain Environmental and Social Risk Management administrative penalties due to unfair

competition during the reporting RMB ten thousand 0 0 0

Total number of suppliers Unit 4020 4309 4402 period

Mainland China Unit 3512 3970 3989

Number of

Suppliers by Hong Kong Macao

Regio Taiwan and overseas Unit 508 339 413

regions

Number of key suppliers Unit / 2486 2414

Number of non-key suppliers Unit / 1823 1988

Total number of suppliers who signed

the Supplier Code of Conduct Unit / 3266 3579

Number of supplier training sessions Time / 113 82

Total number of new suppliers Unit / 977 843

Number of suppliers certified for

environmental management system Unit / 1973 2294

Number of suppliers certified for

occupational health and safety Unit / 1333 1493

management system

Number of suppliers certified for

quality management system Unit / 2411 2961

42 During the year the Company calibrated the definition and statistical standards counting the number of employee person-times providing

volunteer services without retrospective adjustment of historical data

43 During the year the Company optimized data statistical dimensions using official statistics from Shenzhen Federation of Trade Unions and

Bao'an Federation of Trade Unions to ensure the authenticity accuracy and completeness of data sources without retrospective adjustment of

historical data.About Message from About Annual Sustainability Sustainable Double Materiality

183 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 184

Report Index

GRI

Standards Disclosure Items Location GRI Index

2-24 Embedding Policy Commitments ESG Management Structure

GRI Disclosure Items Location 2-25 Processes to Remediate Negative Impacts Product Quality and SafetyStandards

GRI 2: General Disclosures 2021 2-26 Mechanisms for Seeking Advice and Raising Concerns

Communication with Stakeholders Ensuring

Stable Operations Building a Happy Workplace

2-1 Organizational Details About This Report Company Profile Environmental Compliance Management

2-27 Compliance with Laws and Regulations Biodiversity Conservation Ensuring Stable

2-2 Entities Included in the Organization's Sustainability Reporting About This Report Company Profile Operations Building a Happy Workplace

2-28 Membership of Associations Sustainable Development Impact

2-3 Reporting Period Reporting Frequency and Contact Point About This Report

2-4 Restatements of Information Not Involved 2-20 Approach to Stakeholder Engagement

Communication with Stakeholders Ensuring

Stable Operations

2-5 External Assurance Report Index 2-30 Collective Bargaining Agreements Anti-Corruption and Business Ethics Building a Happy Workplace

2-6 Activities Value Chain and Other Business Relationships Company Profile GRI 3: Material Topics 2021

2-7 Employees Building a Happy Workplace 3-1 Process to Determine Material Topics Double Materiality Assessment

2-8 Workers Who Are Not Employees Building a Happy Workplace 3-2 List of Material Topics Double Materiality Assessment

2-9 Governance Structure and Composition ESG Management Structure Ensuring Stable Operations 3-3 Management of Material Topics Double Materiality Assessment

2-10 Nomination and Selection of the Highest Governance Body Ensuring Stable Operations GRI 101: Biodiversity 2024

2-11 Chair of the Highest Governance Body Ensuring Stable Operations 101-1 Policies to Halt and Reverse Biodiversity Loss Biodiversity Conservation

2-12 Role of the Highest Governance Body in Overseeing the Ensuring Stable Operations 101-4 Identify Biodiversity Impacts Biodiversity ConservationManagement of Impacts

GRI 201: Economic Performance 2016

2-13 Delegation of Responsibility for Managing Impacts ESG Management Structure Ensuring Stable Operations

201-1 Direct Economic Value Generated and Distributed Company Profile Key Performance Indicators

2-14 Role of the Highest Governance Body in Sustainability Reporting ESG Management Structure

201-2 Financial Implications and Other Risks and Opportunities Due to Climate Change Addressing Climate Change

2-15 Conflicts of Interest Ensuring Stable Operations

201-3 Defined Benefit Plan Obligations and Other Retirement Plans Building a Happy Workplace

2-16 Communication of Critical Concerns Communication with Stakeholders Ensuring Stable Operations GRI 203: Indirect Economic Impacts 2016

2-17 Collective Knowledge of the Highest Governance Body Communication with Stakeholders Ensuring Stable Operations 203-1 Infrastructure Investments and Services Supported Sustainable Development Strategy Ensuring Stable Operations

2-18 Evaluation of the Performance of the Highest Governance Body Communication with Stakeholders Ensuring Stable Operations 203-2 Significant Indirect Economic Impacts ESG Management Structure Ensuring Stable Operations

2-19 Remuneration Policies Building a Happy Workplace

GRI 205: Anti-corruption 2016

2-20 Process to Determine Remuneration Building a Happy Workplace

205-1 Operations Assessed for Risks Related to Corruption Anti-Corruption and Business Ethics

2-22 Statement on Sustainable Development Strategy Sustainable Development Strategy

205-2 Communication and Training About Anti-corruption Policies and Procedures Anti-Corruption and Business EthicsAbout This Report Sunwoda's Sustainable

2-23 Policy Commitments Development Strategy Addressing Climate 205-3 Confirmed Incidents of Corruption and Actions Taken Anti-Corruption and Business Ethics

Change Establishing Responsible Supply ChainAbout Message from About Annual Sustainability Sustainable Double Materiality

185 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 186

GRI

Standards Disclosure Items Location

GRI

Standards Disclosure Items Location

GRI 206: Anti-competitive Behavior 2016 GRI 306: Waste 2020

206-1 Legal Actions for Anti-competitive Behavior Anti-trust and Anti-Corruption and Business Ethics 306-1 Waste Generation and Waste-related Significant Impacts Environmental Compliance ManagementAnti-monopoly Practices

GRI 301: Materials 2016 306-2 Management of Waste-related Significant Impacts Environmental Compliance Management

301-1 Weight or Volume of Materials Used Key Performance Indicators 306-3 Waste Generated Environmental Compliance Management

Cleantech Opportunities Resource Management 306-4 Waste Diverted from Disposal Environmental Compliance Management301-2 Recycled Input Materials Used and Circular Economy

306-5 Waste Directed to Disposal Environmental Compliance Management

301-3 Reclaimed Products and Their Packaging Materials Cleantech Opportunities Resource Management and Circular Economy GRI 308: Supplier Environmental Assessment 2016

GRI 302: Energy 2016

308-1 New Suppliers That Were Screened Using Environmental Criteria Establishing Responsible Supply Chain

302-1 Energy Consumption Within the Organization Key Performance Indicators

308-2 Negative Environmental Impacts in the Supply Chain and Actions Taken Establishing Responsible Supply Chain302-2 Energy Consumption Outside of the Organization Key Performance Indicators

302-3 Energy Intensity Key Performance Indicators GRI 401: Employment 2016

302-4 Reduction of Energy Consumption Energy Management 401-1 New Employee Hires and Employee Turnover Key Performance Indicators

Cleantech Opportunities Addressing Climate 401-2 Benefits Provided to Full-time Employees (Not Temporary or 302-5 Reductions in Energy Requirements of Products and Services Change Part-time Employees)

Building a Happy Workplace

GRI 303: Water and Effluents 2018 GRI 403: Occupational Health and Safety 2018

303-1 Interactions with Water as a Shared Resource Resource Management and Circular Economy 403-1 Occupational Health and Safety Management System Occupational Health and Safety

Hazard Identification Risk Assessment and Incident

303-2 Management of Water Discharge-related Impacts Environmental Compliance Management 403-2 Investigation Occupational Health and Safety

303-3 Water Withdrawal Key Performance Indicators 403-3 Occupational Health Services Occupational Health and Safety

303-4 Water Discharge Key Performance Indicators 403-4 Worker Participation Consultation and Communication on Occupational Health and Safety Occupational Health and Safety

303-5 Water Consumption Key Performance Indicators 403-5 Worker Training on Occupational Health and Safety Occupational Health and Safety

GRI 305: Emissions 2016 403-6 Promotion of Worker Health Occupational Health and Safety

305-1 Direct (Scope 1) GHG Emissions Addressing Climate Change Key Performance Prevention and Mitigation of Occupational Health and Safety Indicators 403-7 Impacts Directly Linked by Business Relationships Occupational Health and Safety

305-2 Energy Indirect (Scope 2) GHG Emissions Addressing Climate Change Key Performance 403-8 Workers Covered by an Occupational Health and Safety Indicators Management System Occupational Health and Safety

305-3 Other Indirect (Scope 3) GHG Emissions Addressing Climate Change Key Performance Indicators 403-9 Work-related Injuries Occupational Health and Safety

305-4 GHG Emissions Intensity Addressing Climate Change 403-10 Work-related Ill Health Occupational Health and Safety

305-5 Reduction of GHG Emissions Addressing Climate Change Key Performance GRI 404: Training and Education 2016Indicators

305-6 Emissions of Ozone-depleting Substances (ODS) Key Performance Indicators 404-1 Average Hours of Training per Year per Employee Key Performance Indicators

Nitrogen Oxides (NO ) Sulfur Oxides (SO ) and Other 404-2 Programs for Upgrading Employee Skills and Transition 305-7 x xSignificant Air Emissions Key Performance Indicators Assistance Programs

Building a Happy WorkplaceAbout Message from About Annual Sustainability Sustainable Double Materiality

187 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 188

GRI Index to Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock

Standards Disclosure Items Location Exchange-Sustainability Report (For Trial Implementation)

404-3 Percentage of Employees Receiving Regular Performance and Career Development Reviews Building a Happy Workplace

GRI 405: Diversity and Equal Opportunity 2016 Chapter Guidelines Location

405-1 Diversity of Governance Bodies and Employees Building a Happy Workplace Key Performance Chapter I General Provisions Articles 1-10 About This ReportIndicators

Sustainable Development Strategy ESG

405-2 Ratio of Basic Salary and Remuneration of Women to Men Building a Happy Workplace Key Performance Chapter II Sustainable Development Information Disclosure Management Structure Sunwoda's Indicators Framework Articles 11-19 Sustainable Development Strategy

Assessment Process and Results

GRI 406: Non-discrimination 2016

Section 1 Addressing Climate

406-1 Incidents of Discrimination and Corrective Actions Taken Building a Happy Workplace Addressing Change Articles 20-28 Addressing Climate ChangeClimate Change

GRI 407: Freedom of Association and Collective Bargaining 2016 Pollutant Emission

Management Article 30 Environmental Compliance Management

407-1 Operations and Suppliers in Which the Right to Freedom of Building a Happy Workplace Establishing Association and Collective Bargaining May Be at Risk Responsible Supply Chain Section 2 Pollution Waste Treatment Article 31 Environmental Compliance Management

Prevention and

Chapter III Ecosystem and

GRI 408: Child Labor 2016 Ecosystem Biodiversity Protection Article 32 Biodiversity ConservationEnvironmental Protection

Operations and Suppliers at Significant Risk for Incidents of Building a Happy Workplace Establishing Information Environmental 408-1 Child Labor Responsible Supply Chain Disclosure Compliance Article 33 Environmental Compliance Management

Management

GRI 409: Forced or Compulsory Labor 2016

Energy Utilization Articles 34-35 Energy Management

Section 3

409-1 Operations and Suppliers at Significant Risk for Incidents of Building a Happy Workplace Establishing Resource Water Resource Article 36 Resource Management and Circular Forced or Compulsory Labor Responsible Supply Chain Utilization and Utilization Economy

GRI 413: Local Communities 2016 Circular Economy Circular Economy Article 37 Resource Management and Circular Economy Cleantech Opportunities

413-1 Operations with Local Community Engagement Impact Rural Revitalization and Social Contribution Section 1 Rural Rural Revitalization Articles 38-39 Rural Revitalization and Social Assessments and Development Programs Revitalization Contribution

GRI 414: Supplier Social Assessment 2016 and Social Social Contribution Article 40 Rural Revitalization and Social Contribution Contribution

414-1 New Suppliers that Were Screened Using Social Criteria Establishing Responsible Supply Chain Innovation-driven

Development Article 42 Pioneering R&D Innovation

414-2 Negative Social Impacts in the Supply Chain and Actions Taken Establishing Responsible Supply Chain Section 2 Not Applicable (The entity is not

Innovation-driven engaged in scientific research in

GRI 416: Customer Health and Safety 2016 Development and technology ethics-sensitive fields such

Technology Ethics Technology Ethics Article 43 as life sciences and artificial intelligence

416-1 Assessment of the Health and Safety Impacts of Product and Product Quality and Safety but has optimized management for data Service Categories security. For details see Building Digital

416-2 Incidents of Non-compliance Concerning the Health and Safety

Chapter Ecosystem)

Impacts of Products and Services Product Quality and Safety IV Social Information Supply Chain Risk Management Articles 44-45 Establishing Responsible Supply Chain

GRI 417: Marketing and Labeling 2016 Disclosure Not Applicable (The proportion of

Product Quality and Safety Creating Customer Equal Treatment of accounts payable to total assets at 417-1 Requirements for Product and Service Information and Labeling Value Key Performance Indicators Small and Medium- Article 46 the end of the reporting period did not Section 3 sized Enterprises exceed 50%. For details please refer to

417-2 Incidents of Non-compliance Concerning Product and Service Product Quality and Safety Creating Customer

Suppliers and the Annual Report)

Information and Labeling Value Customers Product and Service Article 47 Cleantech Opportunities Product Quality

Incidents of Non-compliance Concerning Marketing Product Quality and Safety Creating Customer Safety and Quality and Safety Creating Customer Value417-3 Communications Value Data Security and

Customer Privacy Article 48 Building Digital Ecosystem

GRI 418: Customer Privacy 2016 Protection

Substantiated Complaints Concerning Breaches of Customer Creating Customer Value Building Digital Section 4 Employee Rights and 418-1 Employees Development Articles 49-50 Building a Happy WorkplacePrivacy and Losses of Customer Data Ecosystem Key Performance IndicatorsAbout Message from About Annual Sustainability Sustainable Double Materiality

189 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 190

Chapter Guidelines Location Index to HKEX ESG Reporting Guide

ESG Management Structure Ensuring

Section 1 Corporate Governance Article 51 Stable Operations

Sustainable Aspects General

Development- Anti-Corruption and Business Ethics Disclosures and Chapter V Due Diligence Article 52 Establishing Responsible Supply Chain Key Performance Description Location

Sustainable related Indicators

Development- Governance

Assessment Process and Results

related Mechanisms Communication with Article 53 Communication with Stakeholders A: Environment

Governance Stakeholders

Information Anti-commercial A1: Emissions

Disclosure Bribery and Anti- Article 54 Anti-Corruption and Business EthicsSection 2 Business Information on emissions and greenhouse gas emissions discharges corruption

Conduct into water and land and generation of hazardous and non-hazardous

Anti-unfair General Disclosure waste: Environmental Compliance

Competition Article 56 Anti-Corruption and Business Ethics (a) Policies; and Management

(b) Information on compliance with relevant laws and regulations that

Report Index Article 57 Report Index have a significant impact on the issuer.Chapter VI Supplementary Environmental Compliance

Provisions and Interpretations Third-party Assurance Key Performance Article 58 Report Index Indicator A1.1 Types of emissions and relevant emission data. Management Key Report Performance Indicators

Key Performance

Indicator A1.2 (Deleted as of January 1 2025) /

Key Performance Total hazardous waste generated (in tonnes) and where applicable Environmental Compliance

Indicator A1.3 intensity (e. g. per unit of production per facility). Management Key Performance Indicators

Key Performance Total non-hazardous waste generated (in tonnes) and where Environmental Compliance

Indicator A1.4 applicable intensity (e. g. per unit of production per facility). Management Key Performance Indicators

Key Performance Description of emission reduction targets set and steps taken to Environmental Compliance

Indicator A1.5 achieve these targets. Management

Key Performance Description of methods for handling hazardous and non-hazardous Environmental Compliance

Indicator A1.6 waste and description of waste reduction targets set and steps taken to achieve these targets. Management

A2: Resource Use

General Disclosure Policies on efficient use of resources (including energy water and other

Resource Management and

raw materials). Circular Economy Energy Management

Key Performance Total direct and/or indirect energy consumption by type (e. g. electricity

Indicator A2.1 gas or oil)(in thousand kWh) and intensity (e. g. per unit of production

Energy Management Key

per facility). Performance Indicators

Key Performance Total water consumption and intensity (e. g. per unit of production per

Indicator A2.2 facility). Key Performance Indicators

Key Performance Description of energy efficiency targets set and steps taken to achieve

Indicator A2.3 these targets. Energy Management

Key Performance Description of any issues in sourcing water applicable to the business and water efficiency targets set and steps taken to achieve these Resource Management and Indicator A2.4 targets. Circular Economy

Key Performance Total packaging materials used for finished products (in tonnes) and

Indicator A2.5 where applicable per unit of production. Key Performance Indicators

A3: Environment and Natural Resources

General Disclosure Policies on minimizing the issuer's significant impact on the environment Environmental Compliance and natural resources. Management

Key Performance Description of significant impacts of business activities on the Environmental Compliance

Indicator A3.1 environment and natural resources and actions taken to manage these impacts. Management

A4: Climate Change

General Disclosure (Deleted as of January 1 2025) /About Message from About Annual Sustainability Sustainable Double Materiality

191 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 192

Aspects General Aspects General

Disclosures and Description Location Disclosures and Key Performance Key Performance Description Location

Indicators Indicators

Key Performance

Indicator A4.1 (Deleted as of January 1 2025) / General Disclosure Policies on managing environmental and social risks of the supply chain.Establishing Responsible

Supply Chain

B: Society Key Performance

Indicator B5.1 Number of suppliers by region. Key Performance Indicators

Employment and Labor Practices Key Performance Description of practices relating to engaging suppliers number of suppliers to whom the practices are applied and how they are Establishing Responsible

B1: Employment Indicator B5.2 implemented and monitored. Supply Chain

Information on remuneration and dismissal recruitment and promotion Key Performance Description of practices for identifying environmental and social risks at each stage of the supply chain and how they are managed and Establishing Responsible working hours holidays equal opportunity diversity anti-discrimination Indicator B5.3 Supply Chain

General Disclosure and other benefits and welfare:

monitored.(a) Policies; and Building a Happy Workplace

(b) Information on compliance with relevant laws and regulations that Key Performance

Description of practices for promoting the use of environmentally

friendly products and services when selecting suppliers and how they Establishing Responsible

have a significant impact on the issuer. Indicator B5.4 are managed and monitored. Supply Chain

Key Performance Total workforce by gender employment type (such as full-time or part- Building a Happy Workplace B6: Product Responsibility

Indicator B1.1 time) age group and region. Key Performance Indicators

Key Performance Information on health and safety advertising labeling and privacy

Indicator B1.2 Employee turnover rate by gender age group and region. Key Performance Indicators matters relating to products and services provided and methods of

General Disclosure redress:B2: Health and Safety (a) Policies; and Product Quality and Safety

(b) Information on compliance with relevant laws and regulations that

Information on provision of a safe working environment and protection have a significant impact on the issuer.of employees from occupational hazards:

General Disclosure (a) Policies; and Occupational Health and Key Performance Percentage of total products sold or shipped subject to recalls for safety Product Quality and Safety

(b) Information on compliance with relevant laws and regulations that Safety Indicator B6.1 and health reasons. Key Performance Indicators

have a significant impact on the issuer. Key Performance Number of complaints concerning products and services received and Product Quality and Safety

Occupational Health and Indicator B6.2 how they are addressed. Creating Customer ValueKey Performance Number and rate of work-related fatalities in the past three years

Indicator B2.1 (including the reporting year). Safety Key Performance Key Performance Description of practices relating to maintaining and safeguarding Intellectual Property Indicators Indicator B6.3 intellectual property. Protection

Key Performance

Indicator B2.2 Lost days due to work-related injuries. /

Key Performance Description of quality inspection processes and product recall

Indicator B6.4 procedures. Product Quality and Safety

Key Performance Description of occupational health and safety measures adopted and Occupational Health and Key Performance Description of consumer data protection and privacy policies and how

Indicator B2.3 how they are implemented and monitored. Safety Indicator B6.5 they are managed and monitored. Building Digital Ecosystem

B3: Development and Training B7: Anti-corruption

General Disclosure Policies on improving employees' knowledge and skills for discharging Building a Happy Workplace Information on prevention of bribery extortion fraud and money duties at work. Description of training activities. laundering: Anti-Corruption and Business

Key Performance Percentage of employees trained by gender and employee category General Disclosure (a) Policies; and Ethics

Indicator B3.1 (such as senior management middle management). Key Performance Indicators (b) Information on compliance with relevant laws and regulations that

have a significant impact on the issuer.Key Performance Average training hours completed per employee by gender and

Indicator B3.2 employee category. Key Performance Indicators Key Performance Number of concluded legal cases regarding corrupt practices brought Anti-Corruption and Business

B4: Labor Standards Indicator B7.1

against the issuer or its employees during the reporting period and the Ethics Key Performance

outcomes of the cases. Indicators

Information on prevention of child labor or forced labor: Key Performance Description of preventive measures and whistle-blowing procedures Anti-Corruption and Business

(a) Policies; and Building a Happy Workplace Indicator B7.2 and how they are implemented and monitored. EthicsGeneral Disclosure (b) Information on compliance with relevant laws and regulations that Establishing Responsible Supply Chain Key Performance Description of anti-corruption training provided to directors and Anti-Corruption and Business have a significant impact on the issuer. Indicator B7.3 employees. Ethics

Key Performance Description of measures to review employment practices to avoid child Community

Indicator B4.1 labor and forced labor. Building a Happy Workplace

Key Performance Description of steps taken to eliminate such practices when discovered. Building a Happy Workplace B8: Community InvestmentIndicator B4.2

Policies on community engagement to understand the needs of the

Operating Practices General Disclosure communities where the issuer operates and to ensure its activities take Rural Revitalization and Social

community interests into account. Contribution

B5: Supply Chain Management Key Performance Areas of focus (such as education environmental matters labor needs Rural Revitalization and Social

Indicator B8.1 health culture and sports). Contribution

Key Performance

Indicators B8.2 Resources contributed (such as money or time) in the focus areas.Rural Revitalization and Social

ContributionAbout Message from About Annual Sustainability Sustainable Double Materiality

193 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 194

Climate-related Information Disclosures

Climate-related Disclosures Response Location Climate-related Disclosures Response Location

(I) Governance 22. An issuer shall disclose information that enables an understanding of the effects of climate-

related risks and opportunities on its strategy and decision-making. Specifically the issuer shall

19. An issuer shall disclose information about: disclose:

(a) the governance body(s) (which can include a board committee or equivalent body (a) information about how the issuer has responded to and plans to respond to climate-related Compliant

charged with governance) or individual(s) responsible for oversight of climate-related risks and Compliant risks and opportunities in its strategy and decision-making including how the issuer plans to

opportunities. Specifically the issuer shall identify that body(s) or individual(s) and disclose achieve any climate-related targets it has set and any targets it is required to meet by law or

information about: regulation. Specifically the issuer shall disclose information about:

(i) how the body(s) or individual(s) determines whether appropriate skills and competencies are (i) current and anticipated changes to the issuer’s business model including its resource Compliant

available or will be developed to oversee strategies designed to respond to climate-related risks Reference allocation to address climate-related risks and opportunities;

and opportunities; (ii) current and anticipated adaptation and mitigation efforts (whether direct or indirect); Compliant

(ii) how and how often the body(s) or individual(s) is informed about climate-related risks and Compliant (iii) any climate-related transition plan the issuer has (including information about key opportunities; assumptions used in developing its transition plan and dependencies on which the issuer’s

(iii) how the body(s) or individual(s) takes into account climate-related risks and opportunities transition plan relies) or an appropriate negative statement where the issuer does not have a

Compliant

when overseeing the issuer’s strategy its decisions on major transactions and its risk climate-related transition plan; andAddressing

management processes and related policies including whether the body(s) or individual(s) has Compliant Climate Change (iv) how the issuer plans to achieve any climate-related targets (including any greenhouse gas

considered trade-offs associated with those risks and opportunities; emissions targets (if any)); and Compliant

(iv) how the body(s) or individual(s) oversees the setting of and monitors progress towards (b) information about how the issuer is resourcing and plans to resource the activities disclosed. Compliant

targets related to climate-related risks and opportunities including whether and how related Compliant

performance metrics are included in remuneration policies; and 23. An issuer shall disclose information about the progress of plans disclosed in previous reporting periods. Compliant

(b) management’s role in the governance processes controls and procedures used to monitor Compliant Financial Position Financial Performance and Cash Flowsmanage and oversee climate-related risks and opportunities including information about:

Current Financial Effect

(i) whether the role is delegated to a specific management-level position or management-level 24. An issuer shall disclose qualitative and quantitative information about: Reference

committee and how oversight is exercised over that position or committee; and Compliant

(a) how climate-related risks and opportunities have affected its financial position financial

(ii) whether management uses controls and procedures to support the oversight of climate- performance and cash flows for the reporting period; and Reference

related risks and opportunities and if so how these controls and procedures are integrated with Compliant

other internal functions. (b) the climate-related risks and opportunities identified for which there is a significant risk of a

material adjustment within the next annual reporting period to the carrying amounts of assets Reference Addressing

(II) Strategy and liabilities reported in the related financial statements. Climate Change

Climate-related Risks and Opportunities Anticipated Financial Effect

25. The issuer shall provide qualitative and quantitative disclosures about: Reference

20. An issuer shall disclose information to enable an understanding of climate-related risks and (a) how the issuer expects its financial position to change over the short medium and long term

opportunities that could reasonably be expected to affect the issuer’s cash flows its access to Reference given its strategy to manage climate-related risks and opportunities taking into consideration:

finance or cost of capital over the short medium or long term. Specifically the issuer shall:

(i) its investment and disposal plans; and Reference

(a) describe climate-related risks and opportunities that could reasonably be expected to affect

the issuer’s cash flows its access to finance or cost of capital over the short medium or long term; Compliant (ii) its planned sources of funding to implement its strategy; and Reference

(b) how the issuer expects its financial performance and cash flows to change over the short

(b) explain for each climate-related risk the issuer has identified whether the issuer considers the medium and long term given its strategy to manage climate-related risks and opportunities. Reference

risk to be a climate-related physical risk or climate-related transition risk; Compliant

Climate Resilience

(c) specify for each climate-related risk and opportunity the issuer has identified over which time

horizons – short medium or long term – the effects of each climate-related risk and opportunity Compliant 26. An issuer shall disclose information that enables an understanding of the resilience of the

could reasonably be expected to occur; and issuer’s strategy and business model to climate-related changes developments and uncertainties

Addressing taking into consideration the issuer’s identified climate-related risks and opportunities. An issuer

(d) explain how the issuer defines ‘short term’ ‘medium term’ and ‘long term’ and how these Climate Change shall use climate-related scenario analysis to assess its climate resilience using an approach that

definitions are linked to the planning horizons used by the issuer for strategic decision-making. Compliant is commensurate with an issuer’s circumstances. In providing quantitative information the issuer

Compliant

may disclose a single amount or a range. Specifically the issuer shall disclose:

Business Model and Value Chain (a) the issuer’s assessment of its climate resilience as at the reporting date which shall enable an

understanding of:　

21. An issuer shall disclose information that enables an understanding of the current and

anticipated effects of climate-related risks and opportunities on the issuer’s business model and Compliant (i) the implications if any of the issuer’s assessment for its strategy and business model

value chain. Specifically the issuer shall disclose: including how the issuer would need to respond to the effects identified in the climate-related Compliant

scenario analysis;

(a) a description of the current and anticipated effects of climate-related risks and opportunities

on the issuer’s business model and value chain; and Compliant (ii) the significant areas of uncertainty considered in the issuer’s assessment of its climate

resilience; and Compliant

(b) a description of where in the issuer’s business model and value chain climate-related risks and

opportunities are concentrated (for example geographical areas facilities and types of assets). Compliant (iii) the issuer’s capacity to adjust or adapt its strategy and business model to climate change over the short medium or long term; Compliant

Strategy and Decision-making how and when the climate-related scenario analysis was carried out including: CompliantAbout Message from About Annual Sustainability Sustainable Double Materiality

195 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 196

Climate-related Disclosures Response Location Climate-related Disclosures Response Location

(i) information about the inputs used including: (c) for Scope 2 greenhouse gas emissions disclosed disclose its location-based Scope 2

(1) which climate-related scenarios the issuer used for the analysis and the sources of such greenhouse gas emissions and provide information about any contractual instruments that is Compliant

scenarios; necessary to enable an understanding of the issuer’s Scope 2 greenhouse gas emissions; and

(2) whether the analysis included a diverse range of climate-related scenarios; (d) for Scope 3 greenhouse gas emissions disclosed disclose the categories included within the

(3) whether the climate-related scenarios used for the analysis are associated with climate- issuer’s measure of Scope 3 greenhouse gas emissions in accordance with the Scope 3 categories

related transition risks or climate-related physical risks; described in the Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting and Compliant

(4) whether the issuer used among its scenarios a climate-related scenario aligned with the Compliant Reporting Standard (2011).

latest international agreement on climate change; Addressing

Climate Change Climate-related Transition Risks(5) why the issuer decided that its chosen climate-related scenarios are relevant to assessing

its resilience to climate-related changes developments or uncertainties; 30. An issuer shall disclose the amount and percentage of assets or business activities vulnerable

(6) time horizons the issuer used in the analysis; and to climate-related transition risks.

Reference

(7) what scope of operations the issuer used in the analysis (for example the operation Climate-related Physical Risks

locations and business units used in the analysis);

31. An issuer shall disclose the amount and percentage of assets or business activities vulnerable

(ii) the key assumptions the issuer made in the analysis; and Compliant to climate-related physical risks. Reference

(iii) the reporting period in which the climate-related scenario analysis was carried out. Compliant Climate-related Opportunities

(III) Risk Management 32. An issuer shall disclose the amount and percentage of assets or business activities aligned

27. An issuer shall disclose information about: with climate-related opportunities.

Reference

(a) the processes and related policies it uses to identify assess prioritise and monitor climate- Compliant Capital Deployment

related risks including information about: 33. An issuer shall disclose the amount of capital expenditure financing or investment deployed

(i) the inputs and parameters the issuer uses (for example information about data sources and Compliant towards climate-related risks and opportunities.Reference

the scope of operations covered in the processes); Internal Carbon Prices

(ii) whether and how the issuer uses climate-related scenario analysis to inform its identification

of climate-related risks; Compliant 34. An issuer shall disclose:

(a) an explanation of whether and how the issuer is applying a carbon price in decision-making (for Reference

(iii) how the issuer assesses the nature likelihood and magnitude of the effects of those risks example investment decisions transfer pricing and scenario analysis); and

(for example whether the issuer considers qualitative factors quantitative thresholds or other Compliant

criteria); (b) the price of each metric tonne of greenhouse gas emissions the issuer uses to assess the costs

Addressing of its greenhouse gas emissions;

(iv) whether and how the issuer prioritises climate-related risks relative to other types of risks; Compliant Climate Change or an appropriate negative statement that the issuer does not apply a carbon price in decision- Reference

(v) how the issuer monitors climate-related risks; and Compliant making. Addressing

(vi) whether and how the issuer has changed the processes it uses compared with the previous RemunerationCompliant Climate Changereporting period; 35. An issuer shall disclose whether and how climate-related considerations are factored into Compliant

(b) the processes the issuer uses to identify assess prioritise and monitor climate related remuneration policy or an appropriate negative statement.opportunities (including information about whether and how the issuer uses climate-related Compliant Industry-based Metrics

scenario analysis to inform its identification of climate-related opportunities); and

36. An issuer is encouraged to disclose industry-based metrics that are associated with one

(c) the extent to which and how the processes for identifying assessing prioritising and or more particular business models activities or other common features that characterise

monitoring climate-related risks and opportunities are integrated into and inform the issuer’s Compliant participation in an industry. In determining the industry-based metrics that the issuer discloses

overall risk management process. an issuer is encouraged to refer to and consider the applicability of the industry-based Compliant

metrics associated with disclosure topics described in the IFRS S2 Industry-based Guidance on

(IV) Metrics and Targets implementing Climate-related Disclosures and other industry-based disclosure requirements

Greenhouse Gas Emissions prescribed under other international ESG reporting frameworks.

28. An issuer shall disclose its absolute gross greenhouse gas emissions generated during the Climate-related Targets

reporting period expressed as metric tons of CO2 equivalent classified as: Compliant 37. An issuer shall disclose (a) the qualitative and quantitative climate-related targets the issuer

(a) Scope 1 greenhouse gas emissions; Compliant has set to monitor progress towards achieving its strategic goals; and (b) any targets the issuer is

required to meet by law or regulation including any greenhouse gas emissions targets. For each Compliant

(b) Scope 2 greenhouse gas emissions; and Compliant target the issuer shall disclose:

(c) Scope 3 greenhouse gas emissions. Compliant (a) the metric used to set the target; Compliant

29. An issuer shall: (b) the objective of the target (for example mitigation adaptation or conformance with science-

(a) measure its greenhouse gas emissions in accordance with the Greenhouse Gas Protocol: A based initiatives); Compliant

Corporate Accounting and Reporting Standard (2004) unless required by a jurisdictional authority Compliant Addressing

or another exchange on which the issuer is listed to use a different method for measuring Climate Change (c) the part of the issuer to which the target applies (for example whether the target applies to

greenhouse gas emissions; the issuer in its entirety or only a part of the issuer such as a specific business unit or geographic Compliantregion);

(b) disclose the approach it uses to measure its greenhouse gas emissions including: Compliant (d) the period over which the target applies; Compliant

(i) the measurement approach inputs and assumptions the issuer uses to measure its

greenhouse gas emissions; Compliant (e) the base period from which progress is measured; Compliant

(ii) the reason why the issuer has chosen the measurement approach inputs and assumptions it (f) milestones or interim targets (if any); Compliant

uses to measure its greenhouse gas emissions; and Compliant (g) if the target is quantitative whether the target is an absolute target or an intensity target; and Compliant

(iii) any changes the issuer made to the measurement approach inputs and assumptions during Compliant (h) how the latest international agreement on climate change including jurisdictional the reporting period and the reasons for those changes; commitments that arise from that agreement has informed the target. CompliantAbout Message from About Annual Sustainability Sustainable Double Materiality

197 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 198

Climate-related Disclosures Response Location Independent Assurance Statement

38. An issuer shall disclose information about its approach to setting and reviewing each target

and how it monitors progress against each target including: Compliant

(a) whether the target and the methodology for setting the target has been validated by a third

party; Compliant

(b) the issuer’s processes for reviewing the target; Compliant

(c) the metrics used to monitor progress towards reaching the target; and Compliant

(d) any revisions to the target and an explanation for those revisions. Compliant

39. An issuer shall disclose information about its performance against each climate-related target

and an analysis of trends or changes in the issuer’s performance. Compliant

40. For each greenhouse gas emissions target disclosed an issuer shall disclose: Compliant

(a) which greenhouse gases are covered by the target; Compliant

(b) whether Scope 1 Scope 2 or Scope 3 greenhouse gas emissions are covered by the target; Compliant

(c) whether the target is a gross greenhouse gas emissions target or a net greenhouse gas Addressing

emissions target. If the issuer discloses a net greenhouse gas emissions target the issuer is also Compliant Climate Change

required to separately disclose its associated gross greenhouse gas emissions target;

(d) whether the target was derived using a sectoral decarbonisation approach; and Compliant

(e) the issuer’s planned use of carbon credits to offset greenhouse gas emissions to achieve any

net greenhouse gas emissions target. In explaining its planned use of carbon credits the issuer Reference

shall disclose:

(i) the extent to which and how achieving any net greenhouse gas emissions target relies on

the use of carbon credits; Reference

(ii) which third-party scheme(s) will verify or certify the carbon credits; Reference

(iii) the type of carbon credit including whether the underlying offset will be nature-based or

based on technological carbon removals and whether the underlying offset is achieved through Reference

carbon reduction or removal; and

(iv) any other factors necessary to enable an understanding of the credibility and integrity of the

carbon credits the issuer plans to use (for example assumptions regarding the permanence of Reference

the carbon offset).About Message from About Annual Sustainability Sustainable Double Materiality

199 This Report the Chairman the Company Topic Management Development Impact Assessment Ecology Partnership Accountability Appendix 200About Message from About Annual Sustainability

201 This Report the Chairman the Company Topic Management

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