EnvironmentSocial And Governance
（ESG）
Report
EnvironmentSocial And Governance
（ESG）
Report
L e y a r d O p t o e l e c t r o n i c C o . L t d .https://www.leyard.com
No. 9 Zheng Hong Qi West Street North of the Summer Palace Haidian District Beijing China
0086-10-62864532
leyard2010@leyard.com Leyard Optoelectronic Co. Ltd.Stock Code： About the Report
This is the Environmental Social and Governance (ESG) Report issued by Leyard Optoelectronic Co. Ltd. (the“ Company”) to disclose its List of Abbreviations Used in the Main Text
performance of responsibilities in 2025 toward key stakeholders including shareholders customers employees suppliers and partners
the environment and the community reflecting the Company’s progress in environmental social and governance aspects.Company the Company Leyard means Leyard Optoelectronic Co. Ltd.Scope and Boundary Leyard Group Leyard Group
Headquarters the Group means Leyard Optoelectronic Group (parent company name: Leyard Optoelectronic Co. Ltd.)
This annual report covers the period from January 1 to December 31 2025 for the Company and its subsidiaries. To facilitate compara- Reporting Period means January 1 2025 to December 31 2025
bility and continuous tracking of the Company’s ESG performance certain data and information have been extrapolated.The scope of
disclosure in this Report aligns with that of the consolidated financial statements in the Company’s annual report.This Report was Same Period of the Previous Year means January 1 2024 to December 31 2024
approved for release by the Company’s Board of Directors on April 15 2026.Shenzhen Leyard / Shenzhen Company means Wholly-owned subsidiary "Shenzhen Leyard Optoelectronic Co. Ltd."
Leyard TV / Beijing Factory means Wholly-owned subsidiary "Leyard TV Technology Co. Ltd."
Data Description Commitment
Leafun Culture means Wholly-owned subsidiary "Guangzhou Leafun Culture Science and Technology Co. Ltd."
The information and data used in this Report are derived The Board of Directors and all directors of the Company represent and
from the Company's official documents annual financial warrant that this Report contains no false records misleading Glux Leyard Performing Arts and Wholly-owned subsidiary "Glux Visual Effects Technology (Beijing) Co. means
data and statistical reports as well as raw operational statements or material omissions and that they assume joint and Culture Ltd." now renamed "Leyard (Beijing) Performing Arts and Culture Co. Ltd."
data and third-party certifications that have been several liability for the authenticity accuracy and completeness of the
compiled aggregated and reviewed by the Company. information contained herein.Financial data are presented in Chinese Yuan (CNY).This Wholly-owned subsidiary "Leyard Intel & Tech Group Co. Ltd." formerly
Report was prepared in accordance with a process that Leyard Intel & Tech
means known as "Leyard Lighting Co. Ltd." and "Shenzhen Jinda Lighting Co.includes industry benchmarking stakeholder identifica- Ltd."
tion and engagement material issue identification and Access
prioritization information collection and review report Virtual Point means Wholly-owned subsidiary "Beijing Virtual Point Technology Co. Ltd."
writing and Board review.This Report is published in electronic format and is available at the Leadstar / Leadstar Micro-Crystal Display means Leadstar Micro-Crystal Display Corporation (Jiangsu) Ltd. in which Leyard
Company’s website at https://www.leyard.com/ or the Shenzhen holds 56.67% equity
Stock Exchange website at http://www.szse.cn/.Basis of Preparation Wholly-owned subsidiary "Leyard (Hong Kong) Co. Ltd." registered in Leyard Hong Kong means Hong Kong by Leyard on June 28 2013
This Report has been prepared with reference to the
Shenzhen Stock Exchange Self-Regulatory Guidelines for PLANAR SYSTEMS INC. formerly a NASDAQ-listed company with stock
Listed Companies No. 17 — Sustainability Report (Trial) code PLNR. It was acquired by Leyard American Corporation a Planar (US) Planar means
the Shenzhen Stock Exchange Self-Regulatory Guide for Feedback wholly-owned subsidiary of the Company which now holds 100% of the
Listed Companies No. 3 — Sustainability Report Prepara- equity following its delisting.tion (2026 Revision) the Shenzhen Stock Exchange GEM For any questions or feedback regarding this Report or its content
Self-Regulatory Guide for Listed Companies No. 3 — please contact us using the information below: Hunan Leyard means Leyard (Hunan) Optoelectronics Co. Ltd. in which Leyard indirectly holds
Sustainability Report Preparation (2026 Revision) the 74.06% equity
China Corporate Sustainable Development Report Guide: Tel: 0086-10-62864532
ESG Guide 6.0 (CASS-ESG 6.0) the Global Reporting
Initiative (GRI) Sustainability Reporting Standards (2021) Email: leyard2010@leyard.com
and other applicable standards as well as the United
Nations Sustainable Development Goals (SDGs). Contents
Chairman's Address Assessment of Issue Commitment to Envi- Partnering for
Materiality ronmental Governance Shared Success
05
33 Double Materiality AnalysisSpotlight 1 61
Environmental Compliance 95 Full-Lifecycle Management
Governance
07 Thirty Years of Ever-Forward 34 Communication with 95 R&D and InnovationStakeholders Climate Change Response and
Innovation Pioneering a New Era 65 Integrated Energy Governance 99 Product and Service Safety
of LED Display 36 Issue Materiality Assessment and Quality
72 Water Resource Management
Spotlight 2 38 Analysis and Conclusion of Issue 102 Supply Chain Security
Materiality 73 Pollutant Management
11 "Display as the Foundation Cultural 109 Data Governance
Tourism as the Driver and AI as the 74 Circular Economy and Waste
Enabler" Leyard's New Chapter on Management 110 Information Security
the Second Growth Curve
78 Ecosystem and Biodiversity
Leyard at a Glance
13 About the Company
15 Worldwide Footprint Sound and Robust Commitment to Fulfillment of National
Governance Employee Development and Social Responsibilities
17 Business Overview
23 Major Milestones 41 Compliance Governance 81 Compliant Employment 115 Rural Revitalization
System
27 Leyard by the Numbers 50 Risk management 116 Social Contribution
82 OHS
29 Annual Awards and Honors 54 Business Ethics
86 Career Development and
Training
2026 Outlook
90 Employee Rights and Care
119
Appendices
121ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Chairman's Address
Li Jun Chairman and General
Manager of Leyard
ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Spotlight ：
Thirty Years of Ever-Forward
Innovation Pioneering a
New Era of LED Display
Founded in Zhongguancun Beijing in 1995 Leyard has established itself as a dedicated force in the LED display industry evolving from a
follower into a global leader. The Company has built a synergistic ecosystem that integrates display technology cultural tourism AI and Culture at the Core: Shared Prosperity and Social Responsibility
spatial computing.On September 19 2025 Leyard celebrated its 30th anniversary at the Beijing Water Cube bringing together over a "Ethics Before Profits" is the core value that has guided Leyard for three decades.Guided by Chairman Li Jun's philosophy of "sharing
thousand partners industry experts government leaders and employees from around the world. Together they reflected on Leyard's with employees for common prosperity" the Company has shared the fruits of growth with 2000 employees through five employee stock
remarkable journey and looked ahead to its vision of "pioneering visual effects and realizing a second growth curve"—an occasion that ownership plans and two equity incentive programs since its IPO establishing a distinctive "Leyard Model".marked the Company's official entry into a new chapter as a pioneer in the LED industry.Alongside its corporate development Leyard remains steadfast in fulfilling its social responsibilities. To date Leyard and its actual
controller have donated over CNY 100 million in cash and supplies sponsored more than 4000 students supported over 350 schools
and established over 40 smart classrooms—benefiting more than 20000 teachers and students. Through these efforts Leyard continues
Technology-Driven Growth: to make meaningful contributions to the advancement of education.In addition Leyard advocates for an "anti-internal competition"
Three Major Leaps Leading Industry Evolution approach. The Company refrains from blindly pursuing projects at low prices ensures reasonable profits for suppliers and works with industry chain partners to foster a healthy industry ecosystem.With innovation as its engine Leyard has delivered a series of technological breakthroughs over the past three decades—each redefining
the industry’s trajectory.In 1998 the Company launched China’s first full-color LED display propelling the industry from the mono-
chrome and dual-color era into the full-color era. In 2010 it introduced the world’s first P2.5 HD fine-pixel-pitch (FPP) LED TV breaking
the outdoor-only paradigm and bringing LED displays into core indoor applications. In 2020 Leyard pioneered the mass production of
Micro LED driving the industrialization of the industry’s ultimate display technology. In 2025 the Company unveiled substrate-free
Hi-Micro technology setting a new benchmark for high-end displays with a 99% black area ratio and ultra-low power consumption.Technological innovation has been the driving force at Leyard for over three decades. At its 30th anniversary celebration in 2025 the
Company unveiled next-generation LiFi visible light communication technology alongside breakthrough products such as 49-gram
ultra-light AR smart glasses and a 135-inch foldable liftable smart conference terminal—continuously expanding the boundaries of
technological application.Since 2020 Leyard has steadily increased its promotion efforts and R&D investment in Micro LED driving rapid
business expansion.In 2024 Micro LED revenue accounted for approximately 10% doubling within two years.Building on continued
advancements in Micro LED technology the Company secured new orders exceeding 1.7 billion CNY in 2025 representing a year-on-year
increase of 50%.Empowered by substrate-free Micro LED technology Micro LED products are emerging as a significant growth driver for
the Company’s performance. ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Leyard
Development Timeline ()
Major project - Served as the core
display service provider for the Technology milestone - Second technological innovation:
Technology milestone - First technological Beijing Olympic Games delivering Successfully developed the world's first P2.5 HD FPP LED
innovation:Launched China's first full-color visual technology support for TV breaking the outdoor-only paradigm and expanding
LED display leading the industry from the Olympic events and establishing its LED displays into core indoor application scenarios.monochrome/dual-color era into the full-color legacy as the "company that served
display era. two editions of the Olympics".
Foundation - Leyard was Brand milestone - Provided visual Brand milestone - Provided visual Capital strategy - Listed on the
established in Zhongguancun product and service support for the product and service support for the Shenzhen Stock Exchange (Stock
Beijing embarking on its journey 50th Anniversary of the National Day. 60th Anniversary of the National Day. Code: 300296.SZ) ushering in a new
of exploration in the LED display phase of capital-driven
field. development.
Strategic evolution-Established Leadstar Micro-Crystal
Technology milestone - Third technological innovation:Be- Strategic expansion - Acquired US-based
Major project - Served as a core display service provider came the world's first company to mass-produce Micro LED NP expanding into spatial computing
for the Beijing Winter Olympics creating a stunning establishing a first-mover advantage in industrializing the technology and building a strong
three-dimensional stage with core products including a industry's ultimate display technology. foundation for AI business growth.
7000㎡ floor screen.
Major project - Provided core display Brand milestone - Provided visual product and service support for the 70th Market expansion -
technology support for the Centenary Anniversary of the National Day. Acquired US-based Planar
Celebration of the Founding of the Communist launching large-scale
Party of China (The Great Journey) demon- Major project - Served as executive producer for the opening and closing overseas market
strating its capability in serving major national ceremonies of the 7th CISM Military World Games. expansion.events.
Cultural tourism expansion - Integrated the cultural tourism and night tour business groups launched the "2+4+1" strategy and Brand milestone - Provided visual product and service support for the Commemoration of the 80th Anniversary of the Victory of the Chinese
developed multiple benchmark projects in immersive cultural tourism. People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War.Entry into Embodied AI - Strategically entered the AI and spatial computing segment expanding into the embodied AI industry chain. Technology milestone - Launched groundbreaking products and technologies including substrate-free Micro LED technology (Hi-Micro)
Innovation-driven film industry - Officially established Huaxia Leyard (Beijing) Movie Technology Co. Ltd. next-generation LiFi visible light communication and AR smart glasses.Strategic evolution - Solidified the core strategic closed loop of "embracing AI pioneering visual effects and realizing a second growth curve". ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Spotlight ：
"Display as the Foundation Cultural
Tourism as the Driver and AI as the
Enabler" Leyard's New Chapter on
the Second Growth Curve
At its "Together for Coexistence and Thriving" Ecosystem Partner Conference in April 2025 Leyard unveiled its three-year core strategy for
the fifth strategic development cycle (20252027): embracing AI pioneering visual effects and realizing a second growth curve—with the AI as the Enabler:
ultimate vision of becoming a globally trusted and respected century-spanning enterprise.Seizing the opportunities presented by Creating Synergy Across the Industry Chain
AI-driven industry transformation Leyard is advancing a strategic framework grounded in "Display as the Foundation Cultural Tourism as
the Driver and AI as the Enabler"—an approach designed to foster a synergistic ecosystem across its three core business segments. While Leyard is fully embracing the AI era by strategically pursuing growth through its AI and spatial computing segment.Centered on its
solidifying its global leadership in display technology the Company is also forging new pathways for sustainable growth. world-leading optical motion capture technology—integrating OptiTrack LydCap LYDIA products and algorithmic capabilities—the
Company provides robotics with spatial perception motion decision-making and motion control marking its entry into the embodied AI
field.It is building a full-chain spatial computing ecosystem encompassing "hardware + software + content + applications" driving deep
Display as the Foundation: integration of AI technology with its display and cultural tourism businesses.By optimizing display experiences through AI algorithms
Building a Solid Foundation for Industrial Development empowering cultural tourism operations with AI big data and expanding application scenarios through AI-powered interaction technolo-
gies Leyard enables technological synergy across its three core segments fosters complementary scenarios and cultivates an integrated
With intelligent display as its cornerstone Leyard continues to strengthen its position as a global industry leader.Drawing on more than
three decades of technological expertise the Company focuses on the R&D and large-scale deployment of core Micro LED technology.Guided by a development strategy built around "digitalized enterprise management integrated domestic direct sales channelized Strategic Goal:
standard products diversified AI-driven application scenarios and comprehensive international expansion" Leyard is building a
full-scenario full-category display product matrix while steadily shaping the trajectory of industry technology.Through continuous Building a New Landscape of Collaborative Growth
technological innovation the Company provides the hardware foundation and technical capabilities that empower its cultural tourism In the future Leyard will continue to deepen the synergistic deployment of its three core business segments—solidifying its foundation
and AI segments—driving synergistic growth across its three core businesses. through display unlocking growth potential through cultural tourism and driving overall efficiency with AI. The goal is to further enhance
its global market competitiveness steadily increase the share of overseas business and build a closed-loop "AI + display + cultural
Cultural Tourism as the Driver: tourism" industrial ecosystem.Through technological innovation scenario expansion and ecosystem co-development Leyard aims to
Broadening the Second Growth Curve
Leyard drives its second growth curve through cultural tourism and night tour initiatives deepening the implementation of its "2+4+1"
business model. By integrating display technology with cultural creativity the Company propels the cultural tourism industry from
"illumination" to "aesthetic enhancement" and ultimately to "cultural experience". This transformation is powered by a strategic
framework: cultural tourism enhancement and urban renewal as accelerators; nighttime economy digital exhibitions cultural entertain-
ment performing arts and IP collaboration as core drivers; and an operations-first approach as the key to success.Leveraging its
strengths in display technology and AI empowerment Leyard builds differentiated core competitiveness striving to become a
world-leading integrated cultural tourism operation service provider. ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Leyard at a Glance
Innovation for the World
About the Company
Founded in 1995 and listed on Shenzhen Stock Exchange in 2012 (300296)Leyard operates 10 manufacturing bases and 9 R&D centers worldwide accelerate talent acquisition foster independent innovation and strengthen core technological capabilities effectively promoting the integration of industry
maintaining a leading global market share with its LED display products gaining widespread recognition across the world.Committed to driving academia and research. In addition to the Postdoctoral Workstation the Company operates two CNAS-accredited central laboratories a Beijing Enterprise
technological and product innovation as well as high-end manufacturing the Company aims to lead the new era of all-scenario intelligent display Technology Center and several other national and municipal key laboratories.applications. Over the past 30 years the Company has remained dedicated to the field of intelligent displays adhering to steady operations continuous
innovation and open collaboration. It has established a comprehensive ecosystem centered on the smart LED display industry while fostering integrated Since 2015 the Company has been independently disclosing ESG/CSR reports.Its ESG ratings consistently exceed the industry average including an AA rating
development in cultural tourism and night tour as well as AI and spatial computing. With technology R&D as its foundation and product innovation at its from China Securities Index and CNI Index an A from Wind an AA from Sino-Securities Index and an A- from IIGF.Additionally the Company has received
core the Company focuses on delivering visual technology and applications for both commercial and consumer markets.Notably it has provided visual several ESG awards and recognitions. For example it was selected again for the 2025 edition of the "Listed Company Sustainable Development Best Practice
effects (display) products and services to support major state events for over 20 years in a row including the celebrations of the 50th 60th and 70th National Cases" published by the China Association for Public Companies. It was also included in the "2025 A-Share Listed Companies Information Technology
Day the military parade celebrating the 80th anniversary of the Victory of the Chinese People’s War of Resistance Against Japanese Aggression and the Industry ESG Performance TOP 20" list by Sino-Securities Index.World Anti-Fascist War (the "V-Day Parade") the opening and closing ceremonies of Beijing 2008 Summer Olympics the 2019 Military World Games in
Wuhan Beijing 2022 Winter Olympics Chengdu 2023 FISU World University Games and the Asian Games Hangzhou the earth-space call between
Secretary-General Xi and the astronauts of Shenzhou-12 the Centennial Red Memory of the Central Party History Museum the Great Journey performance
for celebrating the 100th anniversary of the founding of the CPC and the centennial celebration of the CPC in Tiananmen Square.As an industry leader the Group has received numerous prestigious recognitions including National Technology and Innovation Demonstration Enterprise
MIIT Individual Champion Product of Manufacturing MIIT Company with Green Supply Chain China’s 500 Most Valuable Brands Fortune China Tech 50
China VR50 Enterprises (4 times in five years) China’s Top 100 Electronic Information Firms (Beijing Top 10) China’s Top 100 Software and Information
Service Enterprises National Culture and Technology Integration Demonstration Base. In 2020 the Company was officially approved to establish a
Postdoctoral Research Workstation. These honors reflect the strong recognition from authoritative bodies and industry professionals of Leyard’s long-term
commitment to sustained in-depth industry focus and ongoing independent innovation. They also provide important platforms for the Company to
ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Worldwide Footprint
Its marketing and service network spans six continents and nearly a hundred countries/regions.As a representative of "Created in China" Leyard has embraced an international vision from day one. Driven by the dual strategy of Leyard leverages its "Planar + Leyard" dual-brand strategy to achieve full global market coverage. Powered by cutting-edge technology
"technology export + local operations" the Company has built a sales and service network spanning over 160 countries and regions and premium service Planar remains a leader in North America's high-end FPP LED market.Meanwhile the Leyard brand precisely
across six continents with 844 employees based overseas and in Hong Kong Macau and Taiwan. In 2025 Leyard’s overseas intelligent targets the diverse needs of the mid-range and lower-tier segments in Europe and the Americas.The Slovakian factory is steadily
display revenue reached 3.267 billion CNY accounting for 54.32% of total revenue—a significant increase in contribution. expanding capacity to serve European and American markets while the Saudi factory is under accelerated construction featuring
automated production lines and intelligent management systems. Once operational it is set to become one of the largest LED smart
manufacturing bases in the Middle East strengthening regional supply chain resilience against global market fluctuations. ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Business Overview . Intelligent Display
Committed to driving technological and product innovation as well as high-end manufacturing the Company aims to lead the new era of Leyard has achieved continuous breakthroughs in Micro LED technology sustaining its industry leadership.As the world's first company
all-scenario intelligent display applications. Over the past 30 years the Company has remained dedicated to the field of intelligent to launch mass-producible Micro LED display technology in 2020 the Company has continued to drive technological innovation and
displays adhering to steady operations continuous innovation and open collaboration. It has established a comprehensive ecosystem steadily advance its upgrade and application.centered on the smart LED display industry while fostering integrated development in cultural tourism and night tour as well as AI and
spatial computing.Micro LED
Through continuous R&D and product innovation the Company has secured over 2800 patents while actively exploring the trillion-level
Product lines
commercial and civil markets for visual effects technology and applications that enhance human audiovisual experiences.built on
Business Capability Enhancement MicroLED
round-chip
packaging
Higher mass production Efficiency
Full Product Full Industry Full Application Boosting UPH for higher
Coverage Coverage Scenario Coverage mass production
efficiency.Micro LED display Public security Command center Display
General LED display Energy Meeting room More end-user scenario solutions
Creative LED display Emergency response Exhibition hall More standardized and custom-
LED rental products Transportation Cinema Better Appearance packaging quality ized solutions for customer
Integrated LED display Medical In-house surface packaging R&D:
scenarios.C-Molding & Is Molding.Cinema LED Screen
Special LCD display
Intelligentization
Audio/visual Digital twin Planning and design
integration consultation
AI-driven
Big data Integrated Engineering O&M
implementation system integration
ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
() Business Coverage
Domestic Market: Leyard provides a comprehensive portfolio of display products—ranging from general-purpose LED and professional
LCD displays to creative displays—serving sectors including public safety energy healthcare and transportation. Application scenarios
cover command centers conference rooms cinemas and beyond.Intelligent building Digital presentation Data center
International Market: Through sub-brands including Planar and Leyard the Company has established a presence across Europe the
Americas and Asia-Pacific supplying display solutions for benchmark international projects such as the United Nations Headquarters
NASA and the Qatar World Cup.() Technological Innovation
In 1998 Leyard pioneered the full-color LED display. In 2010 it launched the world's first FPP LED technology. By 2020 the Company had
achieved mass production of Micro LED and released the industry's first Micro LED White Paper.Audio/visual integration Public venues Planning and design
In 2025 Leyard unveiled its Hi-Micro technology and new products featuring chips with a short side of less than 30 μm. consultation
Full Intelligent Display Coverage
Intelligent video Company showrooms Integrated
implementation
Full Product Full Industry Full regional Full Application
Coverage Coverage coverage Scenario Coverage
General LED display Public security Direct sales channels Command center SIoT Cultural tourism Engineering system
Special LCD display Energy complexes integrationIntegrated development Meeting room
Creative LED display Emergency response strategy Exhibition hall
Transportation Building an ecosystem Cinema
Medical with partners
Digital twin VIP experience halls O&M
ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
. Cultural Tourism and Night Tour . AI and Spatial Computing
At its 30th anniversary celebration Leyard unveiled a strategic blueprint centered on "Display + Cultural Tourism + AI and Spatial
Computing" introducing the "2+4+1" operating model for its core Cultural Tourism & Night Tour business segment. The "2+4+1" model is In 2025 Leyard established its development goal as "embracing AI pioneering visual effects and realizing a second growth curve".structured as follows: 2 (Two Pillars): Cultural Tourism Enhancement and Urban Renewal; 4 (Four Drivers): Four key business directions— Rooted in its intelligent LED display business the Company seeks to unlock synergies across its three major segments in the AI era
Night Tour Digital Exhibitions Cultural Entertainment & Performing Arts and IP Cooperation & Operations; 1 (One Front-Loaded progressively building a closed-loop industrial ecosystem of "AI + display + cultural tourism".Approach): An operations-first strategy aimed at positioning Leyard as a global integrated cultural tourism operator. Responding to the
national strategy to develop the cultural tourism and night tour sector Leyard is positioning this area as its second growth curve aiming In its AI and spatial computing segment Leyard combines OptiTrack optical recognition Lyacap markerless recognition and the LYDIA
to become a world-leading integrated cultural tourism operator. large motion model to deliver solutions across nine sectors—including film and television video games sports culture and medical—
covering more than a dozen application scenarios such as digital human interaction unmanned vehicles and robotic embodied
intelligence.Core Capabilities
Optical Motion Capture: The OptiTrack system renowned for its high precision low latency wide coverage and exceptional
stability has established itself as a global leader in 3D tracking systems.LYDIA Large Motion Model: Featuring core capabilities in
the "cognition perception prediction and generation" of spatial motion data the model supports multimodal interactions—
including text-to-motion and music-to-motion—while delivering real-time 3D motion output.It offers flexible deployment
options (both private and cloud-based) enabling broad adaptability across a wide range of application scenarios.Application
1. OptiTrack series products and solutions are widely used across fields such as robotic data collection and training drone
tracking sports science film game and animation production healthcare cultural tourism and exhibitions virtual
production and VR/XR. As a result they have become the preferred choice for academic researchers and industry
professionals alike. The Company serves leading global and domestic enterprises including Meta Boeing ByteDance
Tencent and Alibaba and supports numerous universities.It also provides product and technical support to robot training
centers such as Futian Laboratory in the Greater Bay Area UBTECH Leju Galbot and Neotix Robotics.
2. In film and television production OptiTrack has provided motion capture and virtual production support for domestic
works such as The Wandering Earth and A Writer's Odyssey while also delivering core technology for 69% of Hollywood
blockbusters including Avatar and Avengers.
3. In game development OptiTrack has powered major overseas titles such as Call of Duty and NBA 2K and provided
technical support for the domestic AAA game Black Myth: Wukong. ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
EAI data collection Motion capture technical services Digital scenario building
EAI Film and TV Game Performing arts Education Cultural tourism
Film Intangible
Virtual Perfor- Motion Character Stage Digital Desktop Digital XR Cultural Digital
Data Data cinematogra- pre-visual- mance production production digitization perform- training presenta- large Heritage (ICH) guide
collection training phy ization capture ing arts tion spacedigitization
Motion Data
training factory Sports Animation Medical Industry Digital human
Exercise and Motion Digital Motion Character Telesurgery Rehabilita- Industrial Industrial
Virtual Digital Digital
…… rehabilitation analysis referee production production tion simulation design broadcasting host livestreaming
OptiTrack system Markerless Optical & Core algorithm technologies
Inertial
equipment equipment markerless
Hardware …… Large motion model
products
Optical & inertial Grippers &
VR equipment Isomorphic
hybrid equip- gloves arm
Inertial positioning Optical positioning Markerless positioning
low cost Optical & inertial high precision agile deployment
hybrid positioning Optical & markerless
hybrid positioning
special scenarios
balancing precision & efficiency
Data generation Data assets Robot data collection &
training
Software
LYDIA large …… Spatial data
platform Data Data Asset Data Data Retarget-
motion manage- develop- trading training collection ing
model ment ment
High precision high quality continuous accumulation
Human body
Specialized data Facial expression data Gesture data
and limb data
Data
foundation Core products & algo- Service offerings
construction rithm technologiesESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Major Milestones
Strong Commitment to
Industry-University-Research Extensive Motion Data
Overseas Revenue Share Further Expansion of Global Collaborative Innovation in "AI + Empowering Embodied AI
Surpassing Domestic for Intelligent Manufacturing Spatial Computing" Development
the First Time Footprint The Company collaborated with Peking University Leyard's extensive motion data algorithms and
Leyard's globalization strategy has on the R&D of the LYDIA 2.0 large AI motion model. service capabilities have made it a key partner to
yielded significant results. In 2025 The Company expanded production NP launched new OptiTrack products featuring leading robotics companies. Working with
the share of overseas intelligent capacity at its European factory to meet the world's only single-camera dual-function government and industry partners the Company
rising demand from European and Leyard and Its Actual Controller's Donations Exceed CNY 100 Million: display business revenue increased technological innovation that combines has set up multiple humanoid robot data training
to 54.32% surpassing the domestic American markets. The Changsha LED marker-based and markerless optical motion
Forging the "Leyard Model" of Common Prosperity
centers across China. OptiTrack has also delivered
market for the first time. North Industrial Park was officially capture with patents applied. Additionally the on high-profile stages—enabling the penalty
commissioned enabling full-process Company has engaged in in-depth collaborations Based on its robust incentive mechanisms the Company has created over 30 billionaires several hundred America delivered outstanding shootout between Cristiano Ronaldo and a robot
digital upgrades in manufacturing and with educational and research institutions multi-millionaires and more than a thousand millionaires (in CNY) ensuring that employees share in the performance while Asia Africa and supporting the world's first Humanoid Robot
Latin America continued to warehousing. Steady progress continued including the University of Oregon Carnegie
Company’s growth and prosperity. In 2025 the Leyard Charity Foundation and the Stars Education Fund
Games and helping its robot partners clinch two donated nearly CNY 10 million including CNY 1 million (approximately HKD 1.1 million) to support fire
experience rapid growth further on the Saudi Arabia factory while the Mellon University Stanford University the gold medals and one silver. relief efforts in Hong Kong.strengthening the Company's global Beijing Application Industrial Park University of California and Amazon's FAR
operational capabilities. (Phase II) project broke ground. division.Mass Production of Impeccable Support for Integrated Cultural Tourism & Comprehensive Management Tech Brand Honored with Multiple Accolades and Authoritative Green
Advanced MIP (Hi-Micro) Major State and Night Tour Development: Upgrades Through AI and Development Certifications
and Full-Scenario International Events Unveiling the "AI + Pan Entertain- Digitalization The Company's case study was successfully selected
Innovative Products ment" Strategy In 2025 the Company secured several for the United Nations COP30 Chinese Enterprise
The Company once again delivered The Company is driving a full-chain digital prestigious honors including a place among Green Transition Practice Report 2025. It also
strong support for the V-Day Parade and China's 500 Most Valuable Brands and the The Company successfully achieved Leyard strives to become a world-leading
management transformation by embedding AI retained its designation as a "Best Practice Case for
mass production of its advanced MIP the sixth state event in Tiananmen
Fortune China Tech 50 as well as retaining fourth
integrated cultural tourism operator by advancing technologies across management production Sustainable Development of Listed Companies" and
(Hi-Micro) series which features chips Square and offered professional visual
position in "China VR50 Enterprises" and ranking
integrated cultural tourism and night tour supply chain sales and service through an achieved a Wind ESG A rating along with a China
integrated digital collaboration platform achieving seventh in the "2025 XR Enterprise Top 100". Securities ESG AA rating.with a short side of less than 30 μm. solutions for high-profile events and development with a focus on cultural tourism
tournaments including the 15th enhancement and urban renewal. cost reduction and efficiency gains.In addition innovative products
including creative spherical screens National Games of China the SCO
fantasy art displays next-generation Summit (Shanghai Cooperation
Organization Summit) and CCTV Spring The Company's successful involvement in the MG-COB cold screens and LiFi optical
Festival Gala. Golden Legend Tour Concert MARiA Music Land communication solutions were Tour 2025 China Open Shanghai Masters and
unveiled. other cultural and sports events in 2025 officially
kicked off its "AI + pan entertainment" strategy. ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Leyard by the Numbers
Net assets attributable to
the parent company Operating revenue Total assets Domestic holding enterprises Overseas holding enterprises
8.111 billion CNY 7.064 billion CNY 13.905 billion CNY 43 14
Net profit attributable to
the parent company Net cash flow Overseas intelligent display revenue share GHG emission intensity Total GHG emissions
307million CNY 1.066 billion CNY (up 59.59% YoY）54.32% 3.11 tons per million CNY of revenue 21939.80tCOe
Cumulative granted invention patents
2896
ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Annual Awards
ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Assessment
of Issue
Materiality
Double Materiality Analysis
Communication with Stakeholders
Issue Materiality Assessment
Analysis and Conclusion of Issue MaterialityESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Double Materiality Analysis Establishment of an Issue List
Based on thorough identification Leyard has established its 2025 issue library as follows:
To proactively address potential challenges from internal and external changes Leyard identified its material issues based on the double
materiality assessment principle. This process followed the 21 issues outlined in the Shenzhen Stock Exchange Self-Regulatory Guideline
for Listed Companies No. 17 — Sustainability Report (Trial) and integrated the following factors: the LED industry's characteristics and Dimension Issue
development stage the Company's business model and value chain stakeholder expectations and demands and expert opinions as
well as industry peers' practices. Climate change Ecosystem and biodiversity protection Water resource utilization
response
Environmental Pollutant emissions Environmental compliance management Waste disposal
Context of Company Activities and Business Relationships
Energy utilization Circular economy
In identifying its 2025 material issues and creating the materiality matrix Leyard gave full consideration to the following categories Data security & privacy
of factors: Employees Product and Service Safety and Quality protection
Supply Chain Security Rural Revitalization Equal treatment of small and
Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 17 — Sustainability medium-sized enterprisesSocial
ESG Standards Report (Trial) China Corporate Sustainable Development Report Guide issued by the Chinese Academy Innovation-Driven Social Contribution
of Social Sciences (CASS-ESG 6.0): ESG Guide 6.0 etc. Serving national strategies
Industry promotion Conflict minerals
International United Nations Sustainable Development Goals (SDGs) etc. Governance Due diligence Anti-Unfair Competition Risk management
Initiatives Related to
Sustainable Communication with
Development Anti-bribery and anti-corruptionStakeholders
Economic & Outline of the 15th Five-Year Plan for Economic and Social Development and
Macro Policy Long-Range Objectives Through the Year 2035 of the Peoples Republic of China 3060
Trends Carbon Peak and Carbon Neutrality Targets etc.Communication with Stakeholders
Industry Guidelines for Accelerating the Development and Large-Scale Application of New Scenarios Notice on
Policies the Development and Regulation of Digital Films and LED (Light Emitting Diode) Theaters Joint Leyard values and actively builds strong relationships with its stakeholders to create long-term shared value.To better understand
Statement on Economic and Trade Meeting in Geneva and others. stakeholders' suggestions and expectations regarding the Company's operations and development Leyard has established diverse
communication mechanisms including interviews questionnaires and other engagement methods. The Company continuously
monitors and responds to stakeholder expectations and concerns striving for mutual benefit and win-win outcomes.The LED industry is at a critical inflection point transitioning from a mature phase to a new growth
Market cycle.The growth of the previous generation of mainstream display technology represented by FPP LEDs
Trends has plateaued.As a result the industry's core engine has shifted to next-generation display technologies
led by Micro LEDs which are moving from R&D and pilot runs toward accelerating mass production and
commercial deployment.Company Make every effort to promote the development of a green and low-carbon economy and
Strategy unwaveringly pursue the path of sustainable development. ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Key Stakeholder Key Concern Communication and Response Issue Materiality Assessment
Compliance with laws and Implementation of national policies
regulations Impact Financial Disclosure
Implementation of regulatory policies Specific Issue
Tax compliance Materiality Materiality Double Materiality
Requirement (Based
Government and on the Guidelines)
Regulatory Risk management and internal control system
Agencies Response to national policies development Product and Service Safety and Double materiality issue Based on four
Law-abiding and compliant Tax information submission Quality 15.82 Very high elements
operations
Strengthening communication with govern-
Local economic development Innovation-Driven 15.71 Very high Double materiality issue
Based on four
ment and regulatory agencies elements
Employee Care Impact materiality issue not financially 13.56 Very low General material disclosure
Protection of shareholder rights Proactive capital markets outreach
Shareholders and Return on Investment Supervision improvement Compliance Management 13.17 Very high Double materiality issue
Based on four
Investors elements
Risk management Internal control strengthening Training and Development Impact materiality issue not financially 12 Low General
Transparent information disclosure material disclosureRegular disclosure
Risk management 11.77 Very low Impact materiality issue not financially General material disclosure
Impact materiality issue not financially General
Adherence to labor standards Responsible Marketing 10.25 Very low material disclosure
Protection of employee rights and
interests Improvement of career tracks Supply Chain Security 10.14 Very high Double materiality issue Based on four
Employees elementsGrowth and development Protection of labor rights
Occupational safety and health Establishment of occupational health and OHS 9.14 High Double materiality issue
Based on four
safety management systems elements
ESG Management 6.87 High Double materiality issue Based on four elements
Improvement of product quality Strict product quality control Data Governance Financial materiality issue not impact 6.59 High Based on four
Customers High-quality customer service Responsiveness to customer needs
materiality elements
Customer privacy protection Establishment of information security systems Anti-Unfair Competition 5.78 Very low Dual non-materiality issue General disclosure
Financial materiality issue not impact
Social Welfare 5.3 High Based on four materiality elements
Industry development Promotion of healthy industry development
Supplier及
Mutual benefit and win-win outcomes Anti-Bribery and Anti-Corruption
Financial materiality issue not impact Based on four
Compliant performance of contracts 5.19 Medium materiality elements合作伙伴
Improvement of procurement and Protection of supply chain security Customer privacy protection 4.47 High Financial materiality issue not impact Based on four bidding systems materiality elements
Circular economy 4.32 Low Dual non-materiality issue General disclosure
Public welfare initiatives Charitable donations Environmental compliance
Society and the Financial materiality issue not impact
Based on four
Advancement of rural revitalization Community co-development 3.16 HighPublic management materiality
elements
Community engagement Empowerment of urban development Energy utilization 3.01 High Financial materiality issue not impact Based on four materiality elements
Pollutant emissions Financial materiality issue not impact 1.91 Medium Based on four
Implementation of green construction materiality elementsReduction of environmental impact practices
Waste disposal 1.77 Medium Financial materiality issue not impact Based on four
Environment Prefabricated and green building Promotion of green office practices materiality elements
Energy conservation and emission
reduction Energy management strengthening
Active response to climate change
ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Impact Financial Disclosure Analysis and Conclusion of Issue Materiality
Specific Issue Materiality Materiality Double Materiality Requirement (Based on the
Guidelines)
Following the dual-materiality principle and in accordance with the Guidelines Leyard together with a third-party ESG professional
Ecosystem and biodiversity 1.65 Very low Dual non-materiality issue General institution assesses the materiality of issues using methods such as interviews with key departments and questionnaire surveys.The
protection disclosure issues are then prioritized based on two dimensions —“ financial materiality to the company” and“ materiality to the economy societyFinancial materiality issue not impactClimate change response 1.09 Medium Based on four and environment” — and a materiality matrix is generated.materiality elements
Conflict minerals 0.73 Very low Dual non-materiality issue General disclosure
Water resource utilization 0.59 Very low Dual non-materiality issue General disclosure Issues with Impact Materiality but Not Financial Issues with Both Impact Materiality and
Materiality Financial Materiality
Note: Impact materiality is determined on the basis of a significance threshold set at the Employee Care Product and Service Safety Supply Chain Security
arithmetic mean value of 6.83. and Quality
Training and Development OHS
Innovation-Driven
Risk management ESG Management
Compliance Management
Responsible Marketing
Issues with Neither Impact Materiality Nor Issues with Financial Materiality but Not
Financial Materiality Impact Materiality
Conflict minerals Data Governance Energy utilization
Water resource utilization Social Welfare Pollutant emissions
Anti-Unfair Competition Anti-Bribery and Anti-Corruption Waste disposal
Circular economy Customer privacy protection Climate change response
Ecosystem and Biodiversity Conservation Environmental compliance
management
ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Sound and
Robust
Governance
Compliance Governance
Risk management
Business EthicsESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Analysis and Conclusion of Issue Materiality
Governance
In strict compliance with applicable laws regulations and regulatory require-
ments Leyard has established a corporate governance structure with a clear Shareholders' Strategy and
framework and well-defined responsibilities as well as a governance mechanism meeting ESG Committee
featuring clearly defined authority and standardized operations. These structures
and mechanisms effectively ensure the fairness and rationality of the Company's
corporate governance decisions laying a solid foundation for its sustainable Compensation and
development. In January 2026 the Company released its basic corporate Assessment Committee
governance rules and regulations including the Corporate Charter Rules of Board secretary Board of Directors
Procedure for the Board of Directors Remuneration Management System for
Directors and Senior Management Working Rules for the Board's Strategy and Nomination Committee
ESG Committee and the Announcement on Adjusting the Company's Organiza-
tional Structure.Leyard has established four special committees under its Board of Directors: the Audit Committee
Strategy and ESG Committee the Remuneration and Appraisal Committee the Chairman
Nomination Committee and the Audit Committee. The terms of reference and
detailed implementation rules for each committee have also been developed. In
2025 Leyard convened two general meetings of shareholders and seven board
meetings. In addition the Company held one strategy committee meeting four
audit committee meetings and three remuneration and appraisal committee General
meetings which effectively enhanced its management efficiency and operational manager
R&D Center Brand & Marketing Center Marketing & Sales Center Production & Manufacturing
Center Operations Center HR Center
Financial Management Management &
Center Supervision Center
Intelligent Display Process Engineering
R&D Dept Brand Promotion Dept Business Dept Dept Design Dept HR Dept
Financial Accounting Securities & Investment
Center Dept
Learning &
Product Solutions Dept Marketing Events Dept Cultural Tourism & Night Tour Planning Supply Chain Accounts Receivable Business Dept Management Dept Development Center Management Dept General Affairs Dept
International Product
AI & Innovation Business Dept Smart Manufacturing Budget & Settlement Operations Dept Dept Dept IT Dept
Marketing Management Dept Warehousing & Engineering & Customer Logistics Dept Service Dept Legal Dept
Quality Management
Dept
Internal Audit Dept
ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Corporate Strategies and Culture Corporate Culture
Corporate Strategies Leyard puts ethics before profits.While the name Leyard means the Company puts ethics before profits the essence of its corporate culture is sharing.Leyard prioritizes its customers and operates on a foundation of“ customer sharing.” Guided by thecore philosophy of“ high quality exceptional service integrity dedication and total customer Leyard incorporates these factors into its mission vision and values to get the Group on the same page and drive the Group forward overCustomer- satisfaction” the Company is committed to building a strong corporate image and earning customer the past 30 years.Centric Strategy recognition through the delivery of superior products and services thereby continuously expanding its
market presence.This customer-focused approach helps establish long-term stable customer relation-
ships creates a distinct brand advantage and lays a solid foundation for the Company’s sustainable
development. Mission Vision Values
Enhancing the human Becoming a global VFX Equality respect trust
In 2014 Leyard established the Stars Education Fund under its "community sharing" principle focusing audiovisual experience technology & innovation leader collaboration win-win
on education-based poverty alleviation in underprivileged areas to help students pursue their
academic dreams.This strategy demonstrates the Company's social responsibility enhances its public
Social Welfare image and reputation and fosters a supportive external environment.In 2024 Leyard and its Chairman Customer Community Investor Employee
Strategy Mr. Li Jun jointly donated CNY 10 million to establish the Beijing Leyard Charitable Foundation.Lever- Sharing Sharing Sharing Sharing
aging its strengths the foundation integrates resources to advance charitable initiatives in education
support and rural revitalization marking a new chapter in Leyard's philanthropic endeavors. Grounded in the Taking "community Driven by the principle With "employee sharing" as
principle of "customer sharing" as its social of "investor sharing" its cornerstone Leyard uses
sharing" and guided by responsibility Leyard Leyard's investment sharing as the key to unlock
the operating philosophy established the Stars partners not only share the code for mutual
of "high quality Education Fund in in the Company's prosperity and growth. Since
Driven by the principle of "investor sharing" Leyard is committed to delivering value to its investment exceptional service 2014 to support remarkable market going public in 2012 the
Win-Win with partners by increasing market capitalization.This approach enables partners to participate in urban
integrity dedication and education-based value growth but also Company has implemented
Investors development and share in the resulting pride. Consequently it attracts a broader investor base total customer poverty alleviation share the pride of being five employee stock
Strategy provides strong financial backing for the Company's growth and fosters close collaboration that leads satisfaction" Leyard has projects in impover- part of urban ownership plans and two
to mutual success. built a customer-centric ished areas helping development. equity incentive programs.corporate image. By disadvantaged
earning market share students realize their
through its strong dreams of returning to
reputation the Company school and lighting up
rewards customers
through meaningful
Employee Leyard has established a comprehensive employee incentive system which includes employee stock sharing. Delivering
Incentive ownership plans of varying scales and durations.This approach closely aligns employee interests with quality products and
Strategy those of the Company fully unlocking employee motivation and creativity. As a result it helps attract
and retain top talent building a strong talent foundation to support the Company's growth. ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Return on Investment
Equality respect trust collaboration and win-win these are the values that guide Leyard's interactions [Case Study] Leyard’s 30th Anniversary & Shareholders’ Day Event
with customers community investors and employees.In customer cooperation equality and respect
mean listening to customer needs and delivering quality service. Trust earned through integrity serves as
the foundation of cooperation. Collaboration and win-win are the ultimate goals achieved by sharing In order to establish a long-term and diversified mechanism for shareholder returns and to express gratitude for its sharehold-
growth to maximize mutual benefits.In social engagement Leyard actively participates in education-based ers' longstanding interest and support Leyard seized the occasion of its 30th anniversary to collaborate with Hithink Royalflush
Core Values poverty alleviation to fulfill its social responsibility and translate its win-win philosophy into societal Information Network Co. Ltd. “( Royalflush Info”) in launching a“ Listed Company Shareholders’ Day” event designed to
impact — creating value for the community while building a strong reputation.In investor engagement reward shareholders in October 2025.Leyard shares business achievements with investment partners a practice that embodies the Company's
values of equality collaboration and win-win.In employee engagement Leyard takes multiple initiatives to Investors who held shares o“f Leyard (Ticker: 300296)” during the event period and whose personal trading accounts can access
foster a sense of ownership promote collaboration and achieve shared development between employees the Royalflush Info App were eligible to participate in a lucky draw. Winning investors received a variety of customized prizes
and the Company. created exclusively for the 30th anniversary.Board Diversity
During the reporting period the board of directors of Leyard comprised six members including four non-independent directors and two
independent directors.Among them two were female directors and there was also one employee representative director.All incumbent
directors possess strong professional competence with educational backgrounds at the doctoral and master’s degree levels. The profes-
sional expertise of the board members spans management accounting corporate governance and industry-specific knowledge.Master's degree： 33% Female
board members: 33%
Bachelor's degree： 17% Doctorate degree： 50% Male board members: 67%
Bachelor's degree Master's degree Doctorate degree Female Male
ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Sustainable Development Strategy ESG governance
In January 2026 Leyard optimized its organizational structure by renaming the Board's "Strategy Committee" to the "Strategy and ESG
Committee" establishing an ESG governance structure that covers decision-making execution and supervision—further integrating
People-Oriented corporate governance and sustainable development governance.A diverse talent pool is the cornerstone of business success.Leyard's rapid development is driven by the collective efforts of Decision-Making Level
employees from diverse countries ages and technical backgrounds united by genuine integrity as well as its business
partners and suppliers who adhere to the same standards. Together they uphold the Company's commitment to rejuvenating The Board's Strategy and ESG Committee is the core decision-making body. Comprising three directors and chaired by the
China boosting the industry and benefiting the people—all in healthy and safe workplaces. Company's Chairman (who also serves as the Committee's convener) its key responsibilities include studying and recom-
mending the Company's long-term development strategy major investment decisions and ESG-related matters; identifying
and overseeing material ESG risks and opportunities affecting the Company's business; and reviewing ESG-related reports
Innovation-Driven prior to their submission to the Board.Leyard drives technological and managerial upgrades through innovation in strategy management technology business
models and corporate culture. This enables the Company to meet customers’ increasingly demanding audiovisual Execution Level
requirements respond to the need for disruptive innovation in display technology in the 5G era and lead the display industry The Management Supervision Center has taken the lead in establishing a dedicated ESG Management Working Group which is responsible for
toward a "Created in China" future. overseeing ESG matters researching and implementing ESG development plans and management systems establishing effective ESG risk
management and internal monitoring mechanisms defining ESG goals policies and measures monitoring the achievement of ESG indicators
and organizing the preparation of ESG reports.In addition each business department based on its respective functions and operational
characteristics sets its own ESG issue management objectives and measures and regularly monitors their progress.Public Welfare and Environmental Protection
Leyard helps improve the learning environment for children in mountain areas and enhance the local quality of life by Leyard has established a comprehensive governance framework that spans multiple dimensions including corporate governance
establishing a nonprofit fund organizing charitable activities and making donations.Leyard adheres to green and sustainable development and business ethics.environmentally friendly production and operations delivering innovative energy-efficient products and technologies that
provide customers with an experience of efficiency and environmental friendliness thus contributing to holistic sustainable Governance Rules and Regulations
development.Key documents including the Corporate Charter Rules of Procedure for Shareholders' Meetings Rules of Procedure for the
Collaboration with Stakeholders Board of Directors and the Working Rules for the Board's Strategy and ESG Committee clearly define essential governance
components such as the governance structure decision-making procedures and allocation of responsibilities.Leyard places great importance on communication and collaboration with its stakeholders—including governments
shareholders customers suppliers communities and employees—to understand their sustainability priorities and expecta-
tions of the Company.Through effective cooperation the Company allocates resources efficiently and contributes to sustain- Strategic Planning
able development across society by means of advocacy training and capacity building and policy recommendations.Strategic Positioning of Sustainable Development
Leyard positions "Rejuvenating China Boosting the Industry Benefiting the People" as the core of its sustainable development strategy.With the mission of "enhancing the human audiovisual experience" the Company is committed to becoming a global leader in VFX
technology and innovation.To this end Leyard drives advancements in audiovisual technology through innovation delivers high-quality
products and services to customers supports the growth of the cultural industry and achieves the coordinated development of
economic social and environmental goals. ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Strategic Planning and Implementation Pathways:
SHARE stands for "Sharing Innovation Achievement". The SHARE framework embodies
1. Innovation-Driven: Leyard continues to increase R&D investment and drive innovation across strategy management
technology business models and corporate culture. These efforts are aimed at breaking through display technology barriers the meaning of sharing innovation achievements.launching innovative products that meet market demands and enhancing the Company's core competitiveness.In 2025 Leyard
focused on advancing the iterative upgrading of core technologies including substrate-free Micro LED and AI-powered large SHARE System
motion models.
2. Global Expansion: Leyard pursues a global development strategy by expanding into overseas markets and integrating
resources via mergers and acquisitions thereby achieving mutual benefits and strengthening the Company's global
presence.The Company continues to advance its "Planar + Leyard" dual-brand strategy expedites the development of overseas SH A R E
production facilities in Slovakia Saudi Arabia and other regions and targets increasing the proportion of overseas business to Strength Achievement Reciprocity Enviroment
over 50% within the next two to three years. 强国兴业 分享成果 互惠共赢 环境友好
3. Integration of Technology and Culture: Leyard actively promotes the deep integration of technology and culture leveraging
technology to empower the cultural industry create new drivers of business growth and contribute to the sector's prosperous
development. Centered on its "2+4+1" strategy for cultural tourism and night tours the Company plans to develop additional
benchmark projects in immersive cultural tourism.
4. Public Welfare and Environmental Protection: Leyard has established public welfare funds and carries out charitable
activities including education-based poverty alleviation. In its production and operations the Company adheres to green and
environmentally friendly practices develops energy-efficient products reduces its environmental impact and contributes to
the achievement of the national "dual carbon" goals.Indicators and Targets
The "SHARE" framework embodies Leyard's commitment to aligning with and implementing the SDGs. It incorporates the identified key
sustainability goals along with the social value of "Rejuvenating China Boosting the Industry Benefiting the People" into the Company's
sustainable development action areas.For 30 years Leyard has remained committed to its corporate mission and responsible vision of“ enhancing the human audiovisual Risk managementexperience” integrating sustainable development management into its strategic decision-making and day-to-day operations. Rooted in
its CSR philosophy the Company has built a distinctive future-oriented sustainable development system that comprehensively balances The Leyard Optoelectronic Co. Ltd. Risk Control Management System has been established based on the Company’s operational and
economic environmental and social impacts thereby charting a clear course for its sustainability efforts. management realities with a view to develop a standardized and effective risk control system enhancing risk prevention capabilities
ensuring safe and stable operations and elevating the overall management level.Pursuant to this System the Company's risk management governance structure has the president's office serving as the highest
management level the internal audit department and the audit committee as the management level and the Company's functional
departments as the execution level.Each functional department acting within its designated scope of responsibilities identifies
analyzes and evaluates risks associated with relevant business processes and formulates risk response plans accordingly.On the basis of
these plans the departments enhance control designs organize the implementation of control systems and collaborate with the
internal audit department to investigate and address incidents in which control failures have led to significant losses or adverse effects. ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Primary responsibilities of functional management departments in risk control and management: Leyard has established a risk management information communication channel that runs through the risk management process and
connects all levels and departments. This channel ensures timely accurate and complete information flow laying a solid foundation for
risk management oversight and continuous improvement.Each functional department regularly conducts self-inspections and
evaluations of its risk management work promptly identifies deficiencies and makes improvements. Inspection and evaluation reports
1 Each functional management department acts within its designated scope of responsibilities identifies analyzes are submitted promptly to the department's supervising leader.The internal audit department on a regular or ad hoc basis supervises
and evaluates risks associated with relevant business processes and formulates risk response plans accordingly. and evaluates whether relevant departments have carried out risk management work in accordance with applicable regulations and
assesses the effectiveness of such work.Using identified risks and determined response plans functional management departments revise and improve Risk Identification
2 control designs to meet risk management requirements.This includes establishing a control and management
system and documenting business processes using prescribed methods and tools. All relevant functional departments extensively and continuously collect internal and external initial risk-related information including
historical data and future projections.Such information is then be screened refined compared classified and combined as necessary to
facilitate risk assessment.They organize the implementation of control systems; identify collect and analyze control deficiencies; propose
3 improvement measures for such deficiencies; and implement those measures.For significant deficiencies and
For strategic risk For financial risk For operational risk For legal risk
4 They cooperate with the internal audit department in investigating and handling incidents in which control failures
Collect important Collect important Collect important Collect information
information related to the information related to information related to related to the
Company's macroeco- the Company's the Company's Company's legal
nomic policies profitability asset product mix market environment
Risk Types technological operation capability demand competitors employee ethics
environment market
solvency and major customers and demand and competitive suppliers among major contracts major
Based on their nature the Company's risks are grouped into four categories: strategic operational financial landscape with a focus development others monitor and legal disputes and
capability indicators cases etc.and legal.Based on their impact level risks are classified as either general or significant. on the Company's evaluate the operation development strategy and with a focus on of existing business
plans investment and business processes or processes and
financing plans annual stages where errors information systems
Strategy operational objectives drive continuous Negative factors arising from the failure to formulate a strategy or the formulation of incorrect strategic decisions have occurred or are business strategy as well
风险 prone to occur in cost improvement and as the bases and rationale accounting fund analyze the current
for formulating such settlement and cash state and capability of
strategies plans management the Company's risk
经营 programs and objectives. management.Factors arising from improper operational decisions that hinder or affect the achievement of operational objectives. activities.风险
Risk of financial report distortion stemming from incomplete inaccurate or untimely financial accounting reports or Risk Assessment
财务 information disclosures; risk to asset security resulting in the reduction or loss of the use value and liquidity of the
风险 Company's assets such as equipment and inventory; and fraud risk involving intentional acts to obtain unfair or Risk Assessment Procedure: The Company's risk assessment process consists of four basic steps: objective setting risk identification risk
undue benefits. analysis and risk response.Objective setting is a prerequisite for risk identification risk analysis and risk response.The Company's
1 objectives span strategic operational compliance and financial reporting aspects. All objectives comply with 法律 national laws regulations and industry development plans and remain aligned with the Company's strategic Factors resulting from non-compliance with national laws regulations and policies in daily operations that under-
风险 development plan.mine the attainment of compliance objectives. ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Business Ethics
Risk identification is the process of identifying factors that may hinder the achievement of the Company's
2 objectives impede the Company's value creation or erode existing value.The methods employed for risk identification include questionnaires group discussions expert consultations scenario analysis policy analysis Governance
industry benchmarking and interviews.The Company has always upheld integrity and self-discipline as the basic principle of its business operations and development and
strictly complies with applicable national laws and regulations. It has established a business ethics governance system featuring
multi-level governance clear authority and responsibility full-process collaborative control and comprehensive institutional coverage.The Company uses qualitative analysis for risk assessment primarily based on the likelihood of occurrence and Business ethics and compliance requirements are embedded throughout the Company's business processes and across all stages of the
3 the degree of impact on the Company's objectives.Through this analysis risks are classified into those warrant- supply chain creating a robust defense for compliant operations.ing significant attention and those warranting general attention. Risks requiring significant attention are further
designated as "significant risks" or "general risks" thereby laying the foundation for risk response.The determi-
nation of risk significance is based primarily on the likelihood of occurrence and the degree of impact. Governance Structure and Functions
The Company has established a multi-level business ethics governance structure that clearly defines the business ethics-related
management and supervisory responsibilities of the Group's management heads of holding companies and department heads within
(1) If the likelihood of risk occurrence is "remote" the risk may be disregarded. their respective scopes of authority thereby creating a multi-level governance structure.Under this framework the Group's quality
supervision department internal audit department legal department human resources (HR) department and budget and cost
(2) If the likelihood is "possible" or higher and the degree of impact is low the risk is classified as a general risk. control department operate in coordination. Meanwhile each department performs its designated functions ranging from monitoring
system implementation and investigating violations to conducting compliance education.
(3) If the likelihood is "possible" or higher and the degree of impact is high the risk is classified as a significant risk.
Compliance Management System
The Company has formulated and issued a series of management systems for business ethics and compliance operations
establishing a comprehensive institutional framework. The core systems include the Leyard Optoelectronic Group Disciplinary
Policy (Trial) the Leyard Optoelectronic Group Workplace Integrity System the Leyard Group Supplier Anti-Corruption
Convention and the Leyard Risk Control System. These systems collectively address all dimensions of business ethics—
Risk Response including disciplinary actions workplace integrity supplier compliance and operational risk control—providing a clear
institutional basis and implementation standards for business ethics management.Based on the risk response strategy risk management solutions for each type of risk or each significant risk is
developed.These solutions include specific objectives for risk resolution the required organizational leadership the manage-
ment and business processes involved necessary conditions means and other resources specific response measures to be Strategy
taken before during and after the occurrence of risk events and risk management tools.Based on its actual business development combined with the industry environment and full-process management requirements Leyard
has identified short- medium- and long-term risks and opportunities related to business ethics. The potential impact of each has been
assessed and corresponding response strategies have been developed as detailed below.Internal control solutions for risk resolution are developed by aligning business strategy with risk strategy and balancing risk
control against operational efficiency and effectiveness. For management and business processes involving significant risks Risk/Opportunity Potential Impact (Business and
full-process control measures covering each stage are established. For business processes involving other risks key stages Time Horizon Response StrategyType Financial)
serve as control points with corresponding control measures adopted accordingly.Risks of Business Impact: Due to unfamiliarity with integrity Short-term Organize regular company-wide integrity
operational compliance and business ethics policies and compliance training; conduct
violations arising employees may commit minor violations. Such specialized integrity training for new Risk response options.After risk analysis a risk response option—to avoid accept reduce or share the risk—is selected based
from employees' violations can disrupt internal team dynamics employees; strengthen policy dissemina-on the results of the analysis and the causes of the risk.insufficient undermine the compliant operating environment tion and compliance awareness
and affect internal management order. cultivation; establish a regular policy
understanding of interpretation mechanism to ensure that
company policies Financial Impact: No direct economic loss but all employees are familiar with business
increased management costs for compliance ethics policies and requirements.checks and policy dissemination. ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Risk/Opportunity Potential Impact (Business and Time Horizon Response Strategy Risk/Opportunity Potential Impact (Business and Time Horizon Response Strategy
Type Financial) Type Financial)
Risks arising Business Impact: Suppliers may attempt to Sign the Leyard Group Supplier Anti-Cor- Risks related to Business Impact: Escalating unfair competition false Drive industry self-discipline and set
from suppliers' engage in violations—such as improper benefit Short-term ruption Convention with suppliers escalating unfair advertising trademark infringement and unauthorized Long-term a benchmark for integrity-driven
attempts to transfers—to seek undue cooperative benefits incorporating clauses that clearly prohibit competition use of the Company's name for non-compliant operations issue strong statements
engage in thereby undermining a fair cooperation improper benefit transfers and other practices in the operations could severely damage the Company's brand against unfair competition and
non-compliant environment and damaging the Company's violations as well as stipulating breach of
procurement compliance. industry
reputation and market image and disrupt normal market infringement—clearly defining legal
cooperation contract liability; distribute integrity and order. boundaries and holding infringers
compliance questionnaires to suppliers
Financial Impact: May lead to an unreasonable liable through legal channels launch conduct regular supplier integrity and
increase in procurement costs and increase Financial Impact: Infringement may lead to customer a public whistleblower hotline to compliance reviews and strengthen
compliance risks and audit costs in the procure- loss reduced market share and increased costs for brand encourage social oversight and cooperative relationships with compliant
ment process. protection and legal proceedings. protect both the Company's rights suppliers. and fair market order.Risks of Business Impact: Some employees tempted by Medium-term Improve the Leyard Risk Control System;
employee personal gain may engage in misconduct such as strengthen internal audit supervision and Opportunities to Business Impact: Strengthen integrity training for new Short-term Make integrity training a mandatory
integrity bribery or illicit transfer of benefits which harms integrity compliance investigations; build an integrity hires to uphold compliant operation across the company course for new employee onboard-
violations driven the company's commercial reputation and brand establish full-process business risk control and compliance and foster a clean and transparent internal management ing ensuring that all new employees
by intensified image and erodes the trust of customers and mechanisms; develop comprehensive system for new environment. Deepen collaboration with compliant fully understand business ethics partners. supplier management standards; and
industry employees and suppliers to build a trustworthy and win-win supply chain policy requirements; provide priority embed business ethics compliance
competition system ensuring the stable operation of procurement cooperation support to compliant Financial Impact: Non-compliance may lead to requirements into all business processes. deepen collabo- activities. suppliers consolidate long-term
lower project returns and higher costs for ration with stable cooperative relationships and
corrective actions and legal litigation. compliant Financial Impact: Reduce compliance risks in the continuously optimize the supplier
suppliers. procurement process and minimize additional compliance management system.management costs and financial losses caused by
Risks of fraud Business Impact: Increased probability of Medium-term Optimize internal management processes; violations.arising from violations such as fraud and unfair competition strengthen compliance review and
expanded due to the growing number of business supervision throughout the business Opportunities to Business Impact: Help the Company establish itself as an Long-term Continuously improve the business
commercial collaboration scenarios and partners leading to cooperation process. All departments establish the industry benchmark for integrity-driven and compliant ethics governance structure
cooperation damage to the company's compliance manage- conduct regular integrity self-inspections. Company as a operations through continuous improvement of its promote industry self-discipline and
ment system and disruption of normal business The internal audit department and legal business ethics governance system thereby enhancing the development of an integrity-driv-
operations. department conduct regular and ad hoc benchmark for
compliance reviews to promptly identify integrity-driven
market competitiveness and expanding access to en business system and integrate
Financial Impact: Fraud may lead to asset loss high-quality customers and broader market space. business ethics and compliant and address fraud risks. operations in the
project cost overruns financial losses and operations into the Company's industry and Financial Impact: Expansion of high-quality market
compliance penalties. long-term development strategy to expand market resources drives revenue growth while a compliant empower sustainable growth
presence. operating system reduces long-term operational risks through integrity and compliance.Long-term and ensures sustained stable profitability.Risks of Business Impact: As the Company scales its Continuously enhance the multi-level
insufficient operations and expands its business footprint business ethics governance structure
management gaps in the coverage of business ethics strengthen the management and
coverage due to management and weaknesses in policy oversight responsibilities of heads of
company implementation may emerge. This could render holding companies and departments
the compliance management system ineffective embed business ethics management into
expansion and hinder the Company's sustainable and corporate culture and drive the
healthy development. full-coverage full-process implementation
of compliance concepts.Financial Impact: Management loopholes may
expose the Company to large-scale violations
resulting in significant financial losses and
undermining investor confidence and capital
ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Impact Risks and Opportunity Management
The Company has established a full-process commercial ethics risk and opportunity management mechanism that follows the "risk
identification risk assessment tiered control closed-loop resolution continuous optimization" approach in accordance with
relevant systems such as the Leyard Risk Control System. This mechanism enables comprehensive end-to-end management of
commercial ethics-related risks while ensuring the effective realization of development opportunities.For identified commercial ethics-related risks the Company continuously improves its relevant management systems to clearly define
violation criteria and corresponding disciplinary rules. In accordance with the Leyard Optoelectronic Group Disciplinary Policy
appropriate disciplinary actions are taken against violators and related incidents.Any institutional gaps or management shortcomings
identified during the risk resolution process are promptly addressed and improvements are made to management systems and control
processes to ensure the continuous evolution of the commercial ethics management system.Meanwhile the Company transforms every commercial ethics-related development opportunity into competitive advantages by
enhancing its compliance management system cultivating a culture of integrity and building a brand image of honest operations. It
further empowers business development and market expansion by recognizing compliant business practices incentivizing suppliers'
compliant cooperation and embedding commercial ethics requirements across all employees and the entire supply chain.Indicators and Targets
Leyard's business ethics indicators and targets are approached from two aspects: the communication of anti-corruption policies and
anti-corruption training. Clear indicators and targets are defined so that the data can better reflect the company's progress and efforts in
business ethics. [Case Study] Leyard Anti-Corruption and Integrity Convention
Leyard has issued the Anti-Corruption and Integrity Convention to uphold a positive image of the Company and its employ-
ees advocate integrity and self-discipline across the organization and support the Company's healthy development.The
[Case Study] Anti-Unfair Competition Company establishes basic integrity and compliance requirements through internal management encourages employees to
report any commercial ethics violations to the Group's internal audit department and commits to protecting whistleblow-
ers.The Company also provides regular anti-corruption education and training to strengthen legal awareness and moral
In June 2025 Leyard discovered that unauthorized integrity helping prevent corrupt practices before they occur.individuals and entities were impersonating its
employees distributors or partners in fraudulent
commercial activities which severely damaged the
Company's reputation and customer rights. In
response Leyard promptly issued a firm statement to
clarify the boundaries of legitimate conduct: First any
commercial activity using the name "Leyard" without
the Company's written authorization is an infringe-
ment and Leyard will pursue legal action. Second
customers can verify all valid cooperation through the
official authorized directory and valid cooperation
should also be supported by a formally stamped
contract — informal commitments are not reliable.Third for domestic projects of its display division
every valid quotation document comes with a unique
serial code and anti-counterfeit watermark. Upholding
its commitment to integrity-driven operations Leyard
called on all stakeholders to help maintain market
order and set up a whistleblower hotline
(400-668-6288) to encourage public oversight.
ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Commitment to
Environmental
Governance
Environmental Compliance Governance
Climate Change Response and Integrated Energy
Governance
Water Resource Management
Pollutant Management
Circular Economy and Waste ManagementESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Environmental Compliance Governance Policy and Procedure System Development
The Company strictly complies with national and industry standards including the Requirements of the Energy Management System and
Governance the Energy Management System—Certification Requirements for Electronic Information Enterprises as well as its internal Leyard
Integrated Management Manual. Based on these the Company has established robust policies for environmental compliance and energy
management forming a complete system architecture centered on a "Manual + Responsibility Matrix + Core Procedures." Specifically the
Governance Structure and Responsible Parties Energy and Carbon Emission Management Manual defines the overarching principles objectives and management requirements for
The Company integrates environmental compliance governance into its sustainable governance framework aligning it with the environmental compliance and energy and carbon management. The Energy/Carbon Management System Responsibility Allocation
corporate governance system. This establishes a closed-loop governance structure characterized by leadership from top management Matrix details the specific responsibilities of each department and role in environmental compliance and energy management. The
coordination by management representative execution by functional departments and verification by supervisory departments. Monitoring Measurement Analysis and Evaluation Control Procedure Compliance Evaluation Control Procedure Internal Audit Control
Meanwhile responsibilities at the decision-making and execution levels are defined as follows: Procedure Nonconformity Corrective Action and Continual Improvement Control Procedure and Management Review Control
Procedure standardize the entire process of environmental compliance audits issue identification corrective action implementation
and continuous optimization thereby mitigating risks related to energy savings and compliance.Decision-Making Level
Top management personally participates in energy standard training leads the formulation of the energy policy cascades energy
objectives and targets across all levels monitors target achievement throughout the process organizes internal audits and chairs
management reviews.Execution Level
The management representative collaborates with top management to push forward environmental compliance and energy
management efforts. The supervisory department Beijing factory and Shenzhen company serve as the main execution bodies
responsible for implementing energy-efficient management measures conducting on-site inspections and patrols and carrying
out corrective actions.Coverage
As of the end of 2025 the environmental compliance and energy management system had been rolled out to major production
bases such as Hunan Leyard and Leadstar Micro-Crystal Display.Environmental Management System Certification
Strategy
Based on the Company's strategic environmental compliance governance initiatives and considering the unique environmental
management characteristics inherent in the LED display industry's production processes three core categories of risks and opportunities
have been identified — namely compliance operations and low-carbon transformation. The table below provides the detailed impact
analysis and corresponding response strategies. ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Risk/Opportunity Potential Impact (Business and Impact Risks and Opportunity ManagementTime Horizon Response
Type Financial) Strategy
The Company engages a qualified third party to conduct environmental assessments for its new projects. Upon completion of the
Environmental Business Impact: Production bases could be Short-term Strictly implement the assessment the application materials for record-filing are submitted to the local Bureau of Ecology and Environment.Regulatory required to suspend operations for corrective Compliance Evaluation
Compliance Risks actions which would adversely affect order Control Procedure and the Leyard strictly complies with the Emergency Response Law of the People's Republic of China and the Environmental Protection Law of
delivery schedules tarnish the Company's Internal Audit Control the People's Republic of China. Each year the Company conducts risk assessments of the environmental factors associated with its
reputation for environmental compliance Procedure while conducting production operations.Using three timeframes and three states as the analytical framework Leyard evaluates the impact of these
and erode stakeholder confidence. regular compliance environmental factors on water air soil resources and energy.For unacceptable risks identified through the assessment—such as
evaluations and internal potential fires and hazardous waste handling—the Company establishes management control measures and emergency response
Financial Impact: Risk of regulatory fines and audits. systems.additional rectification costs. Contractual
penalties may also arise from order delays. To prevent potential fires and accidental hazardous waste releases and to enable swift and effective responses in the event of anomalies the Company has put in place the Environmental Monitoring and Measurement Management Procedure the Hazardous Waste Control
Procedure and the Emergency Response Control Procedure along with separate response plans for fires and chemical spills. These
plans are tested through annual drills.In addition every Leyard factory runs its own emergency drills at least once a year to verify its
response capabilities. After each drill the department responsible for emergency response assesses how well the site-specific plan
worked. The same assessment is conducted following any real emergency.Environmental Business Impact: Low energy efficiency at Medium-term Reinforce on-site inspections
Management new bases reduces overall production and patrols strengthen
Operational Risks efficiency and increases energy waste process monitoring and
conflicting with the Company's low-carbon establish a routine hazard
development strategy. identification mechanism. Indicators and Targets
Furthermore it should
Financial Impact: Higher energy costs improve the energy target
squeeze product profit margins and assessment mechanism by Environmental Management Indicators
underdeveloped policies and systems at new incorporating energy-saving
bases result in added retrofitting expenses. indicators into the perfor-
mance appraisals of each
production base. Indicator Unit 2024 2025
Total environmental
protection investment 10000 CNY 61.40 148
Green and Business Impact: Leverage environmental Long-term Continuously optimize the Total hours of environmental
Low-Carbon compliance advantages and low-carbon R&D of low-power products protection training Hour 666 956.50
Transition products to enhance competitiveness in the and production processes Environmental
Opportunities high-end display market. Meet the green while also strengthening protection Total number of environmental 833 1335
procurement requirements of overseas disclosure of its environmen- investment and protection training participants
customers and support overseas business tal compliance achievements training
expansion (overseas revenue accounts for to enhance the brand's Of which: Directors and 22 27senior executives
over 50% primarily from intelligent display reputation for environmental
products). stewardship. In addition it Employees 811 1308
should incorporate environ-
Financial Impact: Deliver green order mental compliance
premiums improved product gross margins requirements into supplier
lower overseas market access costs and selection criteria to build a
sustained offshore revenue growth. green supply chain system. ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Climate Change Response and Integrated Energy Governance
Risk/Opportunity Potential Impact (Business and Response Strategy
Time Horizon
Type Financial)
Governance
Extreme climate Business Impact: Disrupt the continuity of Short- to It's essential to continuously
Leyard is committed to driving low-carbon development in the LED display industry through green innovation. The Company actively change risks (physical product R&D manufacturing and supply medium-term identify climate-related risks in
explores new models for green development and applies scientific methods to manage energy and carbon continuously improving risk) chain management potentially leading to the supply chain in accordance
energy efficiency reducing energy consumption and cutting greenhouse gas emissions.To support the national "dual carbon" goals production delays and affecting market with the Control Procedure for
Leyard has developed the Integrated Management Manual for Energy Carbon Emissions and Carbon Management and the Energy and delivery. Identifying Internal and External
Carbon Management System Responsibility Allocation Matrix in line with applicable standards such as the Requirements for Energy Environment and Climate Change
Management Systems and the Energy Management Systems Certification Requirements for Electronic Information Enterprises. The Financial Impact: Unstable raw material Factors and develop response
Company has established an energy management system directly overseen by the General Manager. Under this system a management supply could cause fluctuations in procure- plans in advance.representative is appointed to manage day-to-day operations and the supervisory department is designated as the primary execu- ment costs increase inventory manage-
tion-level responsible body. Through energy and carbon management training the Company aims to enhance company-wide awareness ment expenses and affect profit stability.of energy conservation and carbon reduction while gradually building a low-carbon development culture with distinctive Leyard
characteristics.Strategy
Risks related to rising Business Impact: Since the Company's Long-term (1) Optimize production process-
The Company's operations primarily rely on natural gas gasoline and electricityThe Company has comprehensively assessed the energy costs due to operations primarily rely on natural gas es to reduce carbon emissions
adaptability of its corporate strategy and business model to climate change in accordance with the Control Procedure for Identifying natural disasters gasoline and electricity rising energy costs and energy consumption per unit
Internal and External Environment and Climate Change Factors taking into account the climate-related risks and opportunities specific (physical risk) will increase production and operational of product; and (2) Advance the
to the LED display manufacturing industry. pressures potentially hindering production R&D and product iteration of
Regarding strategy and business model impact assessment and response methods Leyard has analyzed the impact of factors such as process optimization. low-power LED display technolo-
raw material supply fluctuations caused by climate change rising energy costs and low-carbon policy orientation on product R&D gy to reduce energy-related costs Financial Impact: Directly dive up energy
manufacturing supply chain management and market expansion. In response the Company has developed a green supply chain plan from the product side.costs leading to higher total production
advanced low-power LED display technology R&D and product iteration optimized production processes to cut per-unit carbon and operating expenses reduced profitabil-
emissions and pursued green product certifications to drive demand in low-carbon markets. ity and compressed profit margins.In assessing climate adaptability the Company has placed special emphasis on several key uncertainties: the unpredictability of the
frequency and intensity of future extreme weather events; the dynamic adjustment of regional carbon policies and industry-specific
low-carbon standards; the pace of low-carbon transition and associated cost fluctuations for upstream raw materials; and the extent of Risks related to Business Impact: Changes in regional Long-term (1) Continuously monitor
changes in downstream customers' preferences for green products. dynamic adjustments carbon policies and industry-specific developments in regional carbon
to low-carbon low-carbon standards could render existing policies and industry-specific
Regarding strategy and business model adjustment the Company will in the short term complete energy efficiency retrofits at its policies and industry production models and products non-com- low-carbon standards and adjust
existing production bases establish an early warning mechanism for climate-related risks in the supply chain and achieve dynamic standards (transition pliant exposing the Company to policy its corporate strategy and
optimization of key material inventories. In the medium term it will build a low-carbon-centric product R&D system drive technological risk) compliance risks and hindering market production and operational
innovation in energy-intensive production processes and develop a competitive green product portfolio. In the long term it will fully expansion. models in a timely manner; and
transition to a green development model embed climate resilience across its corporate development strategy and build a sustainable (2) build a low-carbon-centric
business model encompassing green R&D green manufacturing and a green supply chain. Financial Impact: Adapting to new policies product R&D system and drive
requires additional investment in techno- technological innovation in
logical upgrades and product enhance- energy-intensive production
ments increasing upfront costs. processes to ensure product and
production compliance. ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Governance
Risk/Opportunity Potential Impact (Business and Response Strategy
Type Financial) Time Horizon The Company has identified and evaluated significant environmental aspects and major risks in accordance with the Energy and Carbon
Emission Management Manual and the Risk and Opportunity Identification and Management Control Procedure. Based on the List of
Opportunities to Business Impact: With increasing Medium- to (1) Advance the R&D and product Risk and Opportunity Response Measures it has defined corresponding response measures. In addition the Company has developed the
expand low-carbon downstream customer demand for green long-term iteration of low-power LED display Leyard Energy and Carbon Emission Management Manual and issued the 2025 Energy Review Report which comprehensively assesses
market demand products securing green product certifica- technology to build a green the energy and emission profiles of each operational site to mitigate their impact on the Company.tions enables the Company to tap into the product portfolio; and (2) Actively
low-carbon market strengthen its competi- pursue green product certifica- Leyard's Complete GHG Emission Inventory and Verification Process
tive position and accelerate product tions improve its green supply
structure optimization. Financial impact: chain and precisely align with Core Inventory Process (Per ISO 14064-1 / GHG Protocol)
The substantial premium potential of green low-carbon market demand.products allows for higher value-added
thereby contributing to increased revenue Boundary and Baseline Setting: The organizational boundary follows the control approach covering manufacturing R&D
and profit. and warehousing facilities in Beijing Shenzhen Jiangsu and Hunan. The operational boundary includes Scope 1 (direct
emissions) and Scope 2 (indirect emissions from purchased electricity and steam) with a pilot program for Scope 3
(upstream and downstream value chain).Using 2024 as the baseline year the Company achieved its target of a 1%
Green development Business Impact: Drive a comprehensive Long-term Integrate climate adaptability into reduction in emissions.and transition green transition across production R&D all aspects of its corporate
opportunities and the supply chain to embed low-carbon development strategy and build a
development principles enhance climate sustainable business model that Emission Source Identification: Scope 1 includes gas-fired boilers in production workshops fuel-powered vehicles (excluding electric forklifts) and fugitive emissions from refrigerants and fire extinguishing agents. Scope 2 covers
adaptability and establish a green corporate encompasses green R&D green purchased electricity and steam at each plant site. For Scope 3 the Beijing plant pilot covers transportation and distribu-
image. Financial Impact: Reduces long-term production and a green supply tion employee commuting and solid waste disposal.operating costs through energy-saving chain.retrofits and technological innovation while
achieving sustainable profitability via a Data Collection and Calculation: Activity data is sourced from electricity gas and fuel meters financial invoices equip-
green business model. ment ledgers and production daily reports with all measuring instruments calibrated regularly. The primary calculation
method is the emission factor approach (activity data × emission factor × GWP) supplemented by the actual measure-
ment method for key equipment. Scope 2 emissions are calculated using the average grid emission factor with purchased
Risk of rising energy Business Impact: Since the Company's Long-term Optimize production processes to green electricity separately noted.costs operations primarily rely on natural gas reduce carbon emissions and
gasoline and electricity rising energy costs energy consumption per unit of
will increase production and operational product and advance the R&D Reporting and Quality Control: A Greenhouse Gas Emission Inventory Report is prepared covering boundaries emission
pressures potentially hindering production and product iteration of low-pow- sources data calculation methods results and uncertainty analysis. A data traceability and review mechanism has been
process optimization. Financial Impact: er LED display technology to established emission factors are updated regularly and all records are archived to support future verification and
Directly drive up total production and reduce energy-related costs from traceability.operating expenses reduce profitability and the product side.compress profit margins. ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Third-Party Verification (Taking Leyard TV Technology Co. Ltd. as an Example) [Indicator]: Energy consumption in 2025
Verification Preparation: China Certification Center Inc. is engaged to verify the manufacturing plant of Leyard TV Technol- Indicator Unit 2024 2025
ogy Co. Ltd. for the reporting period in accordance with ISO 14064 / GHG Protocol. The Company is required to submit the
inventory report energy/fuel consumption records equipment lists calibration certificates and other relevant
documents. Natural gas m3 151008.00 149745.00
Gasoline l 29840.60 18.39
Document Review: The verifier checks data completeness and consistency verifies the compliance of emission factor
selection and confirms that the accounting logic for Scopes 1 2 3 and 4 is free from crossover or omission.Energy Electricity kWh 56998890.00 32451609.70
consumption
Solar energy usage kWh 2531337.00 20317964.00
On-Site Verification: Interviews are conducted with energy production and finance personnel to confirm data processes
and the operation and calibration of measurement equipment are verified. In addition production processes and emission Comprehensive energy
sources are observed with sample checks performed to match energy consumption with emissions. tce 7221 5261.34consumption
Note: Data sources include Leyard Group Headquarters Beijing Factory Hunan Leyard Leadstar Micro-Crystal
Reporting and Assurance: A Greenhouse Gas Emission Verification Report is issued confirming that the data "fairly reflects"
the emissions. Leyard TV Technology Co. Ltd. obtains a third-party verification certificate while certain product lines are
certified under ISO 14067 for Product Carbon Footprint. 2025 Carbon Emission Profile
Indicator Unit 2024 2025
Total GHG emissions tCOe 30953.26 21939.80
Indicators and Targets GHG
emissions Scope 1: Direct GHG emissions tCOe 367.65 476.18
[Targets] Leyard established its 2025 energy reduction targets to decrease both comprehensive energy consumption per ten thousand
CNY of output value and comprehensive energy consumption per unit of product by 1% from the baseline value. The 2025 energy Scope 2: Indirect GHG emissions tCOe 30585.60 21463.62
baseline is set as the average of actual energy consumption in 2024. These targets have been achieved.Based on its energy management system and in alignment with the T/CCAA 39-2022 standard Leyard has established a carbon manage- Notes:
ment system. In 2024 the Company set its baseline carbon reduction targets to decrease both carbon emissions per ten thousand CNY of
output value and emissions per unit of product by 1% from the baseline value. The 2024 carbon baseline was set as the average of actual （1）Data sources include Leyard Group Headquarters Beijing Factory Hunan Leyard Leadstar Micro-Crystal Display and
carbon emissions in 2023. These targets have also been achieved. Shenzhen Company.
（2）Scope 1: Direct GHG emissions are calculated in accordance with the General Rules for Calculation of the Comprehensive
Energy Consumption (GB/T 2589-2020). Pursuant to this standard the calorific value of natural gas is taken as 356.085 GJ/m3
and that of gasoline as 43.12 GJ/t.
（3）Scope 2: Indirect GHG emissions are calculated based on the Guidelines for Accounting and Reporting of Enterprise GHG
Emissions — Power Generation Facilities issued by the Ministry of Ecology and Environment of China in December 2025. The
emission factor used is the 2023 national average CO emission factor for electricity of 0.5306 kg/kWh.
（4）Gasoline density is calculated as 0.74 kg/L.
ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Carbon Management System Certificate II. Mainstream Energy-Efficient Product Portfolio
Product Series Core Energy-Efficient Features Key Data Typical Scenarios
Micro + COB + energy-efficient IC 3× Screen temperature <30°C Command and control
MG COG cold lower power consumption than SMD; after 2 hours of operation centers exhibitions and
screen 20000:1 contrast ratio; at 600 nits for displays
0.9mm pitch products
Substrate-free Micro chip + cold Screen surface temperature
Advanced screen technology; 99% black area High-end commercial
MIP ratio; wide viewing angle without
<38°C after 2 hours of
displays virtual production
(Hi-Micro) color shift; at 500 nits for 0.7mm
operation in video mode
pitch products
III. Core Advantages (Quantified Value)
- Ultimate Energy Efficiency: The Micro series consumes one-third the power of conventional SMD products.- Low Temperature and Stable Operation: At 600 nits the screen temperature remains below 30°C after two hours of
operation reducing air conditioning energy consumption and extending product lifespan.- Full Lifecycle Green Design: Easy-to-disassemble design supports recycling and reuse. Select products have obtained
carbon footprint/energy efficiency certifications supporting customers' carbon accounting efforts.Leyard Energy-Efficient Products
Centered around Micro LED and self-developed energy-saving driver ICs Leyard's energy-efficient product lineup includes the
MG cold screen the advanced MIP (Hi-Micro) and the next-generation MG COB series. Featuring three times lower power
consumption low temperature rise and high reliability these products are well-suited for command centers commercial
displays data centers and similar applications. Water Resource Management
I. Core Energy-Efficient Technologies (Three Pillars) Leyard places great emphasis on water resource management.The Company and its subsidiaries manage water resource utilization and wastewa-
ter discharge and establish water conservation targets in strict accordance with the Water Law of the People's Republic of China and other
applicable laws regulations and discharge standards. They also actively develop and refine various technologies to
continuously optimize water use efficiency.Leyard's water resource management is fully integrated into its overall environmental compliance
1. Self-Developed Energy-Efficient Driver IC (55nm process): BGA324 package; 18bit+10bit grayscale; EMC Class B; 20% governance system and aligned with its existing energy management and environmental management frameworks forming a complete
additional power reduction vs. the best available market solutions; chip-level backup; 7×24 stable operation. end-to-end management system.In terms of policy development water resource management requirements have been incorporated into the
Company's environmental management system and the Integrated Management Manual. Together with key existing policies such as the Energy
and Carbon Emission Management Manual and the Energy Conservation and Consumption
2. Micro LED: RGB full flip-chip no bonding wires; mass transfer integrated packaging; three times lower power Reduction Control Procedure these documents define specific standards and operating procedures for water conservation utilization and
consumption than traditional SMD. discharge providing clear guidelines for water resource management.Regarding governance structure the Company continues to apply the closed-loop model characterized by "leadership from top management
coordination by management representative execution by functional departments and verification by supervisory departments." Specifically top
3. Common Cathode Constant Current Drive: Improved luminous efficiency; lower power consumption and temperature management is responsible for overseeing the formulation of water resource management policies management representative coordinates the
rise; screen surface temperature <30°C after 2 hours at 600 nits. implementation of various initiatives each production base (including covered bases such as Hunan Leyard and Leadstar Micro-Crystal Display) is accountable for specific water resource control and execution and the
supervisory department along with the internal audit team and other relevant entities performs supervisory functions.Regarding operational management the Company focuses on efficient water use in production standardizes water use procedures promotes the
maintenance of water-saving facilities and strengthens employee conservation awareness. Water conservation is embedded into daily operations
ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
to ensure rational allocation and efficient use of water resources.For risk control the Company identifies potential risks including water waste and installation of anti-vibration pads and silencers have been adopted to reduce noise propagation. For solid waste a strict distinction is made between
non-compliant discharges based on its production operations and develops targeted prevention measures. Regular risk assessments are hazardous solid waste and general solid waste. Hazardous solid waste is disposed of by qualified third-party entities while general solid waste is either
conducted to promptly identify and resolve issues related to water conservation and abnormal discharges thereby mitigating water resource recycled or collected and transported by municipal sanitation departments. The entire solid waste management process — from temporary storage to
management risks. transfer and disposal — is standardized. Additionally employees are educated to enhance their awareness of pollutant prevention and control. Pollutant
management requirements are integrated into daily operations to ensure the effective implementation of all operational measures.For supervision the Company employs a three-tier system of "routine inspections + internal audits + management reviews" to integrate water
resource management into on-site inspections and internal audits. The supervisory department leads regular compliance inspections the For risk control the Company thoroughly assesses potential risks in pollutant management — such as excessive emissions treatment facility failures
internal audit team periodically reviews compliance and policy implementation and the management representative chairs management reviews non-compliant solid waste disposal and abnormal discharges — based on the production processes and pollutant characteristics of each manufacturing
to evaluate performance. These mechanisms ensure effective implementation of management measures and continuous improvement of water base. Targeted preventive measures and clear emergency response protocols have been developed to define emergency response procedures in accordance
resource management. with applicable pollutant control procedures. In the event of an exhaust gas treatment facility or collection pipeline failure production is halted immediately
discharge valves are closed and repairs are carried out promptly to prevent pollution from spreading. Regular risk assessments are conducted to promptly
identify and address potential hazards thereby preventing compliance risks associated with pollutant management.Indicator Unit 2024 2025 For supervision the Company has incorporated pollutant management into its on-site inspections and internal audits. Led by the supervisory department
routine inspections are carried out to monitor the operating condition of pollutant treatment facilities verify pollutant discharge levels and ensure
compliance in the storage and disposal of solid waste. The internal audit team periodically reviews pollutant management compliance policy implementa-
Total water consumption ton 239934.95 247433.00 tion and facility maintenance effectiveness. The management representative chairs management reviews to evaluate pollutant management performance.Water Using monitoring data inspection results and audit findings the Company continuously improves its pollutant management measures to ensure that all
resource Recycled / reclaimed water discharges meet applicable standards and to drive sustained progress.ton 59087.00 62550
utilization usage
Total wastewater discharged ton 174915.76 247433.00
Circular Economy and Waste Management
(Green Manufacturing)
Pollutant Management Governance
The Company has established an energy conservation and consumption reduction management system centered on the Energy Conservation and
Leyard's pollutant management is fully integrated into its environmental compliance governance system and aligned with its energy and environmental Consumption Reduction Control Procedure (LYD-EOP-005-C0). Together with supporting documents such as the Office Supplies Management Regulations
management frameworks forming an end-to-end system that covers all production stages and pollutant types.In terms of policy development the the Water and Electricity Conservation Management Regulations and the Raw Material Usage Management Regulations this system forms an institutional
Company has incorporated pollutant management into its environmental management system and the Integrated Management Manual in strict accordance framework that governs resource and energy usage across the Company.Management responsibilities are clearly defined by department. Each department
with the Air Pollution Prevention and Control Law of the People's Republic of China the Solid Waste Pollution Prevention and Control Law of the People's is required to develop its own resource and energy conservation measures and conduct internal education on conservation practices. All employees while
Republic of China the Standard for Fugitive Emission of Volatile Organic Compounds and other applicable national local and industry-specific laws performing their duties are responsible for conserving resources reducing the use of non-renewable materials and minimizing waste generation. The
regulations and standards taking into account its actual business operations including the production of LED electronic displays and LED modules. Shenzhen and Beijing factories along with the customer service centers serve as the entities responsible for material consumption management. They work
Together with core existing policies such as the Control Procedure for Noise Pollution Prevention the Control Procedure for Soil Pollution Prevention and together with the administration department to oversee the overall implementation and management of energy conservation and consumption reduction
the Control Procedure for Waste Gas and Wastewater Pollution Prevention these documents define specific standards and operating procedures for the efforts. The administration department holds independent responsibility for office supplies management. The quality department is responsible for verifying
prevention collection treatment emission compliance disposal and utilization of various pollutants including waste gas wastewater noise and solid the implementation and effectiveness of energy conservation and consumption reduction measures across the Company and also coordinates the review
waste. Additionally the Company has developed targeted control requirements tailored to the pollutant emission characteristics of different production
bases providing clear rules and a reliable basis for pollutant management. tracking and archiving of improvement suggestions related to these efforts.All departments participate in the execution and advancement of energy
conservation and consumption reduction initiatives. The management representative is responsible for the overall coordination and approval of related
Regarding governance structure the Company continues to apply the closed-loop model characterized by "leadership from top management coordination efforts. As a result a management structure characterized by "division of labor among departments specialized departmental management oversight by
by management representative execution by functional departments and verification by supervisory departments." Specifically top management oversees the quality department and coordination by the management representative" has been established.the formulation of pollutant management policies and targets the management representative coordinates the implementation of various initiatives and
each production base including covered bases such as Shenzhen Leyard and Leadstar Micro-Crystal Display serves as a key executor responsible for daily
pollutant control operation and maintenance of treatment facilities and emission monitoring at its own site. The supervisory department along with the
internal audit team and other relevant entities supervises the entire process. Thus a three-tier responsibility system comprising decision-making execution Strategy
and supervision is established.The Company has outlined its core strategies for circular economy and waste management to conserve energy and reduce consumption minimize waste
Regarding operational management the Company places great emphasis on pollutant prevention across the production process. For example at its and scrap during production and installation lower resource consumption and reduce pollution. Through scientific management of resource and energy
subsidiary Leadstar Micro-Crystal Display fume hoods and collection pipelines have been installed equipped with treatment facilities such as two-stage usage enhanced statistical analysis of energy and material consumption and the effective implementation of improvement suggestions the Company aims
activated carbon adsorption and the setup and maintenance of exhaust stacks have been standardized to ensure that exhaust gases — including soldering to achieve its strategic goals of enhancing economic performance and driving continuous improvement.The specific risks and opportunities associated with
fumes and organic gases — are treated to meet emission standards before discharge. For wastewater the company has implemented a rainwater and resource and energy usage and waste management are analyzed as follows:
sewage diversion system. Domestic sewage is pretreated in septic tanks and production wastewater is treated at the on-site wastewater treatment station
before being discharged into the municipal sewage network or sent to a water purification plant for further treatment strictly preventing uncontrolled
wastewater discharge. For noise control measures such as factory building sound insulation rational equipment layout distance attenuation and the
ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Risk/Op- Time Risk/Op- Time
portunity Potential Impact (Business and Response StrategyHorizon portunity
Potential Impact (Business and Response Strategy
Horizon
Type Financial) Type Financial)
Risks related Business Impact: Result in resource waste Long-term (1) Each department develops targeted resource and Insuffi- Business Impact: Missed opportunities to Long-term (1) Each department is encouraged to
to excessive higher scrap rates during production and energy conservation measures provides internal cient optimize resource and energy usage and complete and submit Improvement Sugges-
resource and installation and non-compliance with green conservation training and fosters work habits that
manufacturing requirements. collec- reduce waste generation hindering tion Forms pertaining to energy conservation energy save water and electricity and minimize scrap. (2)
consumption The Office Supplies Management Regulations Water tion of efficiency improvements and green and consumption reduction. (2) The quality
Financial Impact: Directly increase procurement and Electricity Conservation Management energy upgrades in production and operations. department is responsible for reviewing and
costs for resources and energy such as water Regulations and Raw Material Usage Management conser- categorizing such suggestions and for
electricity raw materials and auxiliary Regulations are implemented across the Company vation Financial Impact: Inability to reduce communicating them to the relevant
materials thereby driving up total production to ensure the scientific and rational use of resources and resource consumption costs through departments for implementation.and operating costs. and energy.(3) Each department proactively adopts
energy-saving measures. con- internal optimization resulting in lost
potential for cost control and economic
performance improvement.Risks related Business Impact: This could lead to inefficien- Long-term At the end of each year consumption quotas
to unreason- cies in the requisition and inventory manage- are revised based on actual material
able material ment of raw and auxiliary materials disrupt the
consumption orderly progress of production planning and consumption submitted to the supervising Opportu- Business Impact: Enable the standardization of Long-term At the beginning of each year the Annual
quotas increase the risk of material overstocking or manager for approval and then monitored for nities to resource and energy usage reduction of waste Energy Conservation and Consumption
shortages. implementation. scientifi- and scrap in production and installation and Reduction Plan is prepared submitted to the
enhancement of the Company's green
Financial Impact: Hoarding raises storage costs cally supervising manager for approval and manufacturing capabilities and brand image.while shortages could cause production manage thereafter monitored to ensure implementa-
stoppages resulting in lost productivity and energy Financial Impact: Lower unit consumption of tion thereby guiding the Company's energy
added expenses. and water electricity raw materials and auxiliary conservation and consumption reduction
material materials reduce the use of office supplies such activities for the year.as paper effectively control production and
Risks related Business Impact: Energy conservation efforts Long-term The implementation and effectiveness of operating costs and improve economic
to ineffective remain superficial failing to meet pollution Company-wide energy conservation and performance.implementa- reduction and continuous improvement goals consumption reduction measures are verified
tion of energy impeding the development of the Company's
conservation green manufacturing system. through enhanced supervision and assess-
and ment. Each department collects aggregates
consumption Financial Impact: Persistent resource and energy and analyzes energy conservation and
reduction waste undermines effective control of operating consumption reduction data on a monthly Impact Risks and Opportunity Management
measures costs. basis to promptly identify implementation
issues. The Company has established an end-to-end energy conservation and consumption reduction management mechanism to systematically
address the impacts risks and opportunities associated with resource and energy usage and waste management.
1. Routine Management Mechanism
The Company adheres to scientific management and rational utilization throughout its operations strictly implementing various
special management regulations including the Energy Conservation and Consumption Reduction Control Procedure. Each
department independently develops its own conservation measures and conducts internal education to mitigate resource waste
risks at the employee level and identify internal conservation opportunities. The administration department together with the
Shenzhen and Beijing factories and the customer service center is responsible for the daily management of office supplies
material consumption and energy consumption respectively within their defined roles. This ensures routine control over
resource and energy usage. ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
2. Measurement and Statistical Analysis Mechanism Indicators and Targets
A monthly and annual measurement and statistical analysis system for energy and material consumption has been established. Under this system
the Shenzhen and Beijing factories and the customer service center perform monthly statistical analysis of raw and auxiliary material usage Quantitative Disclosure Item Beijing Factory Shenzhen Company Leadstar Micro-Crystal Display
requisition and inventory data. The administration department together with the Shenzhen and Beijing factories analyzes energy consumption
monthly and completes the relevant reporting forms. All departments collect and consolidate energy conservation and consumption reduction
data. This data-driven approach enables the timely identification of abnormal resource consumption risks and uncovers opportunities for cost Total amount of 100 tons Blister trays: 51085 / Cartons: 15915
optimization. recyclable packaging 2.80 tons
materials used Packaging bags: 438081 / Foam: 59191
3. Suggestion Management Mechanism Proportion of recyclable
products and recyclable 100% 100% 99%
packaging materials used
A full-process system has been established for the submission review implementation and follow-up of energy conservation and consumption
reduction suggestions. Any department may submit suggestions. The quality department reviews and categorizes the suggestions and forwards
them to the relevant departments which are required to respond within five working days. The quality department also tracks implementation
progress and centrally archives all suggestion forms using internal input to identify opportunities for circular economy improvements.Ecosystem and Biodiversity
4. Supervision and Inspection Mechanism During the reporting period the Group and its subsidiaries' business operations had no adverse impact on ecologically sensitive areas
and no violations related to ecological damage occurred.Looking ahead the Company will continue to monitor the impact of its
The quality department serves as the designated supervisory body responsible for verifying the implementation and effectiveness of compa- operations on ecosystems and biodiversity strengthen its protection efforts further optimize business processes to reduce environmen-
ny-wide energy conservation and consumption reduction measures and providing timely oversight and corrective actions for any risks arising tal impact actively participate in public welfare initiatives for ecological protection integrate ecological protection requirements across
from insufficient implementation thereby ensuring the effective progress of all energy conservation and consumption reduction efforts. the entire business chain and contribute to regional ecological security.
5. Planning and Quota Optimization Mechanism
At the end of each year consumption quotas are optimized based on actual material usage. At the beginning of each year the annual energy
conservation and consumption reduction plan is developed. Both the optimized quotas and the annual plan are submitted to the supervising
manager for approval and subsequently monitored for implementation. The plan and quotas are adjusted from time to time based on the
Company’s actual production and operational needs in order to effectively manage the risks of material hoarding and excessive energy
consumption. ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Commitment to
Employee Development
Compliant
Employment System
OHS
Career Development
and Training
Employee Rights
and CareESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Compliant Employment System OHS
Compliant employment is a key element of Leyard's ESG management framework and a fundamental cornerstone of the Company's
sustainable development.Leyard consistently upholds legality compliance fairness and justice in its employment management Governance
embedding employee rights protection into every stage of the employment process. Through responsible employment practices the
Company unites talent fulfills its social responsibilities and fosters the shared growth and collaborative progress of both the organiza- Leyard has integrated occupational health and safety (OHS) into its core ESG management system. The Company strictly complies with
tion and its workforce. all applicable laws and regulations including the Work Safety Law of the People's Republic of China the Occupational Disease Preven-
tion Law of the People's Republic of China the Fire Protection Law of the People's Republic of China the Work-Related Injury Insurance
In terms of employment management Leyard consistently follows a compliance-first approach strictly abiding by applicable national Regulations and Beijing Work Safety Regulations. To operationalize these requirements Leyard has developed and released the
laws and regulations including the Company Law of the People's Republic of China the Labor Law of the People's Republic of China and Compilation of Work Safety Rules and Regulations establishing an OHS governance system with full institutional coverage clear
the Trade Union Law of the People's Republic of China. At the same time with reference to international labor standards the Company accountability and closed-loop processes.has established a comprehensive and standardized compliant employment system. It is fully committed to fulfilling its corporate social
responsibility safeguarding employees' legitimate rights and interests and fostering an equitable diverse and inclusive sustainable At the management system level the Company has established 26 specialized management systems covering the full spectrum of
work environment. occupational health and work safety. These systems address core areas including work safety targets and indicators accountability
performance assessment training and education safety inspections hazard identification and control high-risk operations fire
Leyard firmly upholds the principle of non-discriminatory employment. Across all stages of recruitment hiring promotion training and protection personal protective equipment (PPE) emergency response special equipment operations facility and equipment safety as
compensation there is no differential treatment based on gender age educational background ethnicity race color sexual orientation well as third-party and supplier safety management. Complemented by comprehensive safety operating procedures and emergency
disability pregnancy religion political affiliation social status or marital status. The Company also strictly prohibits and resolutely response plans these systems form an integrated institutional framework that ensures both routine standardized management and
opposes child labor and all forms of forced labor effectively safeguarding every employee’s right to equal employment. effective emergency response.Diverse talent serves as an essential component of Leyard's sustainable development. The Company actively attracts outstanding Regarding governance structure and division of rights and responsibilities Leyard has established a tiered accountability and compa-
individuals from various countries age groups and technical backgrounds—all of whom uphold high standards of integrity. Leyard also ny-wide participation mechanism for OHS management.engages with business partners and suppliers who share the same values jointly fostering a healthy and safe working environment and
delivering on its corporate commitment to "rejuvenating China boosting the industry and benefiting the people". The general manager serves as the primary responsible person for workplace safety overseeing the establishment implementation
maintenance and continuous improvement of the OHS management system. Key responsibilities include approving annual work safety
As of 2025 the Group had 4405 employees comprising 2801 men and 1604 women. Employees under the age of 50 accounted for targets and ensuring the execution of all management requirements. The work safety committee coordinates the Company's OHS efforts
91.49% of the total reflecting a clear trend toward a younger workforce. With 844 employees based overseas or in Hong Kong Macau formulates work safety policies and targets leads major hazard control and emergency response initiatives and convenes quarterly work
and Taiwan regions the Group demonstrates its diverse and inclusive talent philosophy. Employees holding a bachelor's degree or safety meetings. Department heads fulfill OHS duties within their respective scopes of authority break down and implement departmen-
higher made up 43.72% of the workforce providing solid personnel support for the innovation-driven development of this technolo- tal safety targets and conduct hazard identification and training. Full-time and part-time safety officers conduct annual reviews and
gy-driven enterprise. performance assessments of the work safety accountability system perform routine safety inspections oversee hazard rectification and
ensure the implementation of training programs. The HR department manages special operation personnel organizes safety training
Regarding employee rights and interests Leyard has established an Employee Representative Congress Management System and the and verifies personnel qualifications. The procurement department reviews and manages the safety qualifications of suppliers and
Implementing Rules of the Employee Representative Congress Management System based on its operational context ensuring the relevant stakeholders. The administration department manages fire protection facilities and emergency supplies on a day-to-day basis
standardized functioning of the congress. This framework effectively safeguards employees' democratic rights while enhancing their and coordinates emergency duty arrangements. All employees are required to strictly comply with work safety rules and regulations
motivation and creativity.The Company continues to strengthen democratic management. In 2025 it convened three sessions of the participate in safety training fulfill their post-specific safety responsibilities and promptly report potential hazards.Employee Representative Congress held quarterly employee symposiums and organized semi-annual democratic life meetings across
various departments. Furthermore the Company utilizes diversified visual communication platforms—including its internal messaging
system OA system and suggestion boxes—to establish efficient two-way communication channels. These mechanisms enable Leyard to
promptly address employee concerns respond to their needs and strengthen employee cohesion and sense of belonging thereby Strategy
effectively protecting their legitimate rights and interests.Regarding compensation and benefits Leyard fully implements a universal labor contract system to standardize labor relations and Based on its production operational and office environments the Company systematically identifies OHS risks across work sites and
clarify employee rights and obligations. The Company strictly complies with national social insurance regulations making timely and full office premises while also identifying development opportunities arising from safety management upgrades. Taking into account the
contributions to the housing provident fund and social insurances including pension medical unemployment work-related injury and potential impacts of these risks and opportunities the Company has developed targeted response strategies. The detailed analysis is
maternity insurance thereby ensuring that employees are entitled to benefits as required by law. In addition Leyard provides diversified presented below:
benefits such as commercial personal accident insurance annual health check-ups and meal allowances supporting employees to work
with peace of mind and achieve steady development.Furthermore the Company has established a scientific and standardized compen-
sation assessment mechanism. Specifically the compensation and assessment committee is responsible for researching and proposing
compensation plans for directors supervisors and senior management. The compensation of directors and supervisors is determined
based on performance assessment management and approved by the shareholders' meeting. The income of senior management is
directly tied to their work performance ensuring fair just and well-founded compensation distribution. ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Risk/Opportunity Potential Impact (Business and Time Response Strategy Risk/Opportunity Potential Impact (Business and Time Response Strategy
Type Financial) Horizon Type Financial) Horizon
Physical safety Business Impact: Could lead to safety Short-term (1) Establish routine equipment Fire safety risk Business Impact: Could lead to fire Medium- to (1) Implement fire safety policies that
risks incidents or occupational diseases inspection and maintenance accidents potentially resulting in long-term prohibit smoking in office areas and
resulting in employee injuries and systems to ensure timely defect casualties and severe damage to regulate hot work procedures; (2)
absenteeism disrupting production resolution; (2) Provide compliant production or office facilities thereby Conduct routine inspections of electrical
efficiency and normal operations. PPE for high-risk roles and mandate causing a complete and prolonged wiring and equipment to prevent
its correct usage; (3) Control noise disruption of business operations. overloads and address electrical faults
Financial Impact: Incur costs such as and electromagnetic radiation in promptly; (3) Keep fire exits and
work injury compensation equipment both office and production areas to Financial Impact: Could generate emergency routes clear at all times with
repair and accident remediation enhance the working environment; substantial costs associated with fire regular checks and maintenance of fire
thereby increasing operating costs. and (4) Strictly enforce hot work damage compensation facility safety equipment; and (4)Provide fire
procedures and regulate fire and reconstruction and accident safety training and emergency
electrical safety. remediation. In addition the evacuation drills to strengthen fire
Company could face administrative emergency preparedness.penalties.Risks related to Business Impact: could result in safety Long-term (1) Mandate OHS training as part of
rising energy accidents potentially causing both new hire orientation and Business Impact: Could enhance the
costs due to production interruptions and ongoing employee training to raise Opportunities to Long-term (1) Continuously enhance its OHS Company's safety management standards
natural disasters workflow disruptions while also safety awareness; (2) Post clear upgrade occupational management system and streamline reduce the occurrence of safety accidents related processes; (2) Boost investment in
(physical risk) undermining team safety manage- safety signs in hazardous and health management and occupational diseases protect safety training diversify delivery
ment efficiency. high-risk areas clearly specifying employee physical and mental health methods and raise overall employee
operational standards; (3) Enhance strengthen employee belonging and safety competence; (3) Maintain
Financial Impact: Incur costs related to on-site supervision to promptly cohesion and improve overall team employee health surveillance records and
accident response property damage address unsafe behaviors and efficiency. schedule regular occupational health
and work injury compensation. ensure strict adherence to safety exams for early prevention detection
regulations. Financial Impact:Could reduce unnecessary and intervention of occupational
expenses such as injury compensation and diseases; and (4) Utilize digital platforms
accident remediation while achieving for online risk identification and training
operational efficiency gains through to drive management efficiency gains.Office health risks Business Impact: Could cause cervical Long-term (1) Provide office health education improved productivity.and lumbar spine issues and to encourage healthy work habits
weakened immune function among employees; (2) Organize
potentially leading to reduced work wellness initiatives including daily
efficiency and increased absenteeism. running check-in challenges and Impact Risks and Opportunity Management
parent-child study tours to reduce
Financial Impact: Could result in work-related stress; and (3) The Company has developed a comprehensive multi-dimensional OHS risk and opportunity management mechanism that integrates
elevated employee medical benefit Optimize scheduling and workload risk prevention and control along with opportunity realization into all aspects of daily operations thereby creating a closed-loop
expenses as well as indirect opera- management framework following the "identification assessment control optimization" cycle.management to prevent overwork
tional losses arising from productivity and guarantee sufficient rest time 1. Risk Identification and Monitoring: The Company systematically identifies various risks at production sites including physical
decline. for employees. chemical biological psycho-physiological and behavioral risks in accordance with the Classification and Code for Hazardous and
Harmful Factors in Production Process (GB/T13861-2009). Concurrently it continuously monitors office environment health risks such as
electromagnetic radiation noise and sedentary behavior. Furthermore the Company has established a workplace occupational hazard
monitoring and evaluation system conducting regular risk inspections and level assessments to capture real-time risk dynamics. ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
2. Risk Prevention Control and Handling: Adhering to "prevention first combined with control" principle the Company eliminates
identified risks at the source via institutional measures on-site supervision facility upgrades and PPE provision. It strictly enforces the [Case Study] Emergency First Aid Training
"Four Don't Let Go" principle—requiring that an incident remains open until the cause is identified responsible parties are held account-
able corrective actions are implemented and relevant personnel are educated. Safety hazards and accidents are promptly rectified
accompanied by company-wide awareness campaigns. In 2025 the Company actively responded to the trade union’s first aid training initiative putting its safety responsibilities into
action by following the“ theory first practice-driven” principle.Under the guidance of Red Cross instructors trainees practiced
3. Employee Rights Responsibilities and Participation: The Company clearly defines employees' obligations in the prevention and
control of occupational diseases requiring them to conscientiously receive safety training comply with safety operating procedures on mannequins through exercises such as scene assessment chest compressions and using an AED. This hands-on approach
correctly use personal protective equipment (PPE) and promptly report potential hazards. Concurrently the Company collects employee not only helped them master standardized techniques but also build solid muscle memory—giving them the confidence to act
opinions and suggestions on OHS management and encourages employee participation through communication channels such as the and the know-how to save lives when needed.employee representative congress and employee symposiums fostering a management culture of "Engaging everyone and benefiting
everyonel". A total of 26 employees passed the assessment and obtained or renewed their first aid certificates over the course of the
4. Opportunity Realization and Optimization: The Company leverages occupational health management upgrades to integrate work year.This outcome demonstrates the effectiveness of the training and employees' dedication to self-rescue and mutual
safety training into its learning and development system. In 2025 online OHS training was delivered through the Corporate WeChat aid.Moving forward the Company will continue to support these initiatives to embed safety awareness enhance emergency
Learning Center platform making it mandatory for new hires while also making it available to all employees. Additionally the Company response capabilities and protect life safety.embeds safety management into its corporate culture by organizing recreational and wellness activities to alleviate employee work-relat-
ed stress. This approach integrates health management concepts into employees' daily lives driving continuous improvements in both
safety management capabilities and employee well-being.Indicators and Targets
Quantitative Disclosure Item Unit 2024 2025
Total number of partici- 9994 6085
pants of safety training
Work Safety
Total hours of safety training Hour 11014 11330.50
Total number of emergency
drills conducted 21 35
Emergency Drill
Number of participants in
emergency drills / 2638
Career Development and Training
Employees are the key driving force behind Leyard's sustainable development. Guided by its strategic goals the Company has
established a diversified and standardized career development and training system—featuring clear career tracks a scientific evaluation
mechanism and personalized development plans—to align employee growth with corporate development and build a solid talent
foundation for high-quality growth. ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Building a Career Development System Career Development Management Mechanism
System Design Principles Multi-Party Roles and Responsibilities System
The Company builds its career development system upon four core principles to ensure a scientific and forward-looking foundation: The Company clearly defines the roles and responsibilities of employees direct supervisors department heads and the HR department
First future-oriented aligning with the Company's fast-growing talent demands to provide broad development space for employees in career development planning forming a collaborative management system. Specifically employees are responsible for proactively
willing to challenge themselves. Second ability-focused putting capability development at the core of career growth and designing planning their career direction cooperating with promotion/demotion applications and implementing development plans. Direct
differentiated development tracks for employees with different aptitude tendencies. Third results-driven tying employee performance supervisors are responsible for recommending subordinate level assignments promotions and demotions helping implement
to career development. Only those who consistently deliver outstanding performance can achieve sustainable growth. Fourth communi- development plans and conducting regular performance evaluations. Department heads are responsible for reviewing departmental
cation-centered recognizing employees as the main drivers of their own career development while requiring supervisors at all levels to employee development plans and promotion/demotion applications. The HR department is responsible for coordinating and support-
act as guides and build a communication bridge between the Company and its employees. ing employees throughout the entire process of job levelling planning and implementation.Regular Competency Assessment and Talent Review
Dual Career Tracks
The Company conducts employee competency assessments and talent reviews twice a year initiated by the HR department in January
The Company has established dual career tracks—management and professional—that run in parallel for all employees across the and July. During these reviews supervisors at all levels assess talent and consolidate information on employee promotions demotions
Group. Employees can choose the track that best fits their role and development goals. Managers are expected to continuously sharpen and track transfers.During the assessment the Leyard Career Development System Talent Review Form is used to organize employee
their professional expertise to stay ahead of industry trends while also fulfilling their management duties. information such as job experience performance records career track and job level. Based on this data employee competency is
evaluated using three criteria: fully competent (non-compliance rate ≤10%) basically competent (10% < non-compliance rate ≤30%)
1. Management Track: This track has four levels—junior middle senior and corporate leadership—offering a progressive route from
frontline team management to corporate strategic decision-making. Employees transition from handling tasks independently to leading and not competent (non-compliance rate >30%). The results inform career development adjustments.teams and owning key responsibilities. Each level clearly defines core duties management scope decision-making authority and
required skills.Job Leveling Promotion and Grievance Procedure
2. Professional Track: Based on the Company's business characteristics this track is divided into three sub-categories—product technolo-
gy marketing and professional skills—corresponding to the technology marketing and professional job families. Each sub-category 1. Job Leveling and Promotion: New hires receive their job level upon recruitment. Level adjustments for current employees are
consists of six progressive levels from lowest to highest: beginner experienced core contributor expert senior expert and authority. determined by semi-annual evaluations. Those who fully or substantially meet competency requirements are eligible for direct promo-
Each level is further broken down into three sub-levels—basic standard and professional—with clearly defined competency bench- tion. Employees who partially meet or fall short of requirements will receive a customized learning and development plan. Employees
marks for each level. with exceptional performance—defined as two consecutive "excellent" ratings—or those who have made special contributions to the
Company may qualify for an exceptional promotion. Regular promotions follow a step-by-step principle with no skipping of levels.
2. Certification and Grievance: Employees applying for a level promotion or career track change submit the Employee Competency
Job Families and Level Classification Assessment and Certification Form designed to evaluate capabilities across dimensions such as knowledge and skills. The department
and the HR department jointly review the form to determine the outcome. If an employee disagrees with the evaluation result they may
At the Company jobs are organized into four families—management marketing professional and technology—which are further divided file a grievance with the HR department using the Employee Career Development Level Grievance Form. The HR department will then
into 21 categories covering all business areas including management marketing R&D administration finance and legal affairs.Within investigate and issue a resolution.the technology marketing and professional families each level has a corresponding abbreviation (T1T6 for technology M1M6 for
marketing S1S6 for professional). The management track consists of four levels: junior middle senior and corporate leadership. Each Application of Results: Finalized level changes (promotion or demotion) are immediately reflected in performance assessment compen-
level has clearly defined competency requirements and promotion criteria providing a standardized and well-defined career develop- sation job assignment and other relevant areas ensuring seamless integration between career development and employee motivation.ment route.Personalized Career Development Plan
After the competency assessment the direct supervisor and employee jointly create a personalized career development plan outlining
the development direction advancement pathway and implementation measures to clarify where the employee is headed and how to
get there. ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
1. Development Direction Confirmation: Based on competency assessment results three development directions are identified—
consolidation (remain in current track and level) upward development (advance within the current track) or cross-track development Promotion Course Package & Learning Map
(switch to a different career track). Employees who transfer to a new track will be reassessed against its standards and a new develop-
ment plan will be created accordingly. The Company designs tailored promotion course packages for each career track and level allowing employees to enroll in any course up
2. Capability Gap Analysis: Based on the Company's strategy and job-specific tasks five core competencies are identified as essential for to one level above their current level. A competency- and expertise-based job learning map covering product & technology professional
satisfactory job performance. Among these the three that most urgently require improvement are pinpointed clearly defining the skills marketing and management & leadership is also established. This framework tightly links learning with capability growth and
capability gaps. career progression ensuring that learning is combined with application to drive career advancement and training precisely meets
employees' career development needs.
3. Development Plan Formulation: The Employee Career Development Plan Form is used to define capability improvement measures
expected outcomes implementation timelines and required support. In addition a job-specific promotion curriculum is designed
creating a job learning map based on competencies and expertise—ensuring that capability enhancement is precisely aligned with
career development.
4. Plan Tracking and Evaluation: Employees document development plan implementation in real time. At mid-year and year-end direct Core Value of the Career Development System
supervisors and employees jointly review progress using self-assessments and supervisor evaluations forming a closed-loop manage-
ment system of "formulation → execution → evaluation → optimization".Leyard's career development and training system breaks down traditional advancement barriers offering employees broad
Diversified Training and Capability Enhancement System growth opportunities in both management and professional tracks to maximize their potential. With scientific competency
assessments personalized development plans and diverse training options the system enhances employees' skills and
capabilities while strengthening their sense of belonging achievement and growth drive. It also enables the Company to fully
leverage its internal talent pool building a high-quality workforce aligned with strategic development—providing sustained
Training System Positioning talent vitality and creating a win-win situation where employee growth and business performance reinforce each other.The Company views training as an essential component of employee career development. Through the Leyard Learning and Develop-
ment Center it has built a training system aligned with the competency requirements of each career level. The system enhances job
competence and professional skills helping employees achieve career goals while meeting the Company's strategic talent needs.Employee Rights and Care
Diverse Training and Development Options Employees serve as an essential driver of sustainable corporate development. As an integral part of its corporate development strategy
Leyard has established a comprehensive multi-tiered employee rights and care system—grounded in compliant employment centered
on shared prosperity supported by growth and empowerment and connected through heartfelt care. Through this system the Compa-
As employees' capability needs differ the Company provides diverse training and development options (online offline and hands-on ny enables employees to realize their personal value while achieving shared growth and prosperity together—continuously reinforcing
practice) enabling each employee to select the approach that best aligns with their personal development plan. the social value foundation of its ESG framework.
1. Offline Training: In-person training sessions various forms of seminars and symposiums lectures and classroom instruction Based on a long-term approach Leyard has created a unique "common prosperity model." Since its IPO in 2012 the Company has
attendance at high-level conferences delivering presentations and chairing meetings; implemented five employee stock ownership plans and two equity incentive plans—fostering a sense of ownership among innovators
2. Online Training: Computer-based online training self-paced learning; and value creators in its growth and enabling employees to tangibly share in its success thereby achieving mutual benefit and shared
prosperity.
3. Hands-on Development: Project research job rotation learning from others job diversification task forces or special committees
participation in industry associations academic courses. ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Shared Prosperity for Employees In terms of compensation benefits and daily care Leyard provides statutory benefits while continuously optimizing its welfare system—
embedding a caring people-first culture into employees' daily work and life.The Company fully implements a universal labor contract
system for statutory benefits making timely and full contributions to the housing provident fund and the five social insurances (pension
medical unemployment work-related injury and maternity insurance). In addition it offers supplementary benefits such as commercial
personal accident insurance and annual health check-ups ensuring a basic livelihood standard for all employees.Beyond equity incentives Leyard has built a comprehensive multi-tiered employee benefits and growth system.In 2025 the Company
2 continued to enhance its welfare offerings organizing events such as private movie screenings singles mixers daily running challenges and parent-child study tours. Seasonal initiatives were also rolled out during the Lantern Festival International Women's Day the Dragon
rounds of equity Boat Festival and the Winter Solstice. Through these efforts the Company embeds a caring people-first culture into employees' daily
incentives work and life.Original
shares 5rounds of employee
stock ownership
01 15-30 billionaires
02 50-100 multimillionaires
03 1000 millionaires
ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Partnering for
Shared Success
Full-Lifecycle Management
R&D and Innovation
Product and Service Safety
and Quality
Supply Chain Security
Data Governance
Information SecurityESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Full-Lifecycle Management Strategy
The full-lifecycle management of products and services across Leyard's three business segments—intelligent display cultural tourism & Building on its leadership in the global visual technology sector and driven by technological innovation the Company identifies R&D- and
night tour and AI & spatial computing—rests on five key elements: (i) Technology leadership that builds the product foundation for all innovation-related risks and opportunities by assessing industry trends market demand and its strategic business portfolio. It then
three segments; (ii) Smart manufacturing and customized delivery that ensures production quality and scenario adaptation; (iii) Diverse evaluates the potential business and financial impacts and develops corresponding response strategies as detailed below:
channels that expand global market coverage; (iv) End-to-end services that enhance customer loyalty; and (v) Circular utilization and
value preservation that enable sustainable development. These elements do not stand alone but form a closed loop—"front-end
foresight mid-stream execution and post-launch optimization"—driven by digital management technical coordination and service Risk/
extension. This ensures that from R&D to application all three segments balance technological iteration cost control and environmental Opportunity Potential Impact (Business and Time Response Strategy
responsibility while meeting diverse customer needs. The ultimate goal is a triple-win for the Company its customers and society Type Financial) Horizon
fostering a development landscape defined by technology interoperability scenario complementarity and value symbiosis.This framework delivers technological leadership quality stability and scenario adaptability across Leyard's three business segments Risks Business Impact: Core technology R&D Short- Establish a comprehensive R&D project
while enabling synergy and value symbiosis among them. It also reflects the Company's commitment to environmental responsibility related to falling short of expectations inability to medium- to evaluation mechanism. Prior to project
and social value. Together these efforts help Leyard maintain its leading position across its main business segments and set a replicable R&D achieve technological breakthroughs long-term initiation it should conduct thorough
benchmark for full-lifecycle management in multi-business operations. failure missing industry development opportuni- research and feasibility analysis in accordance
ties reduced product competitiveness with the Product Design and Development
difficulty meeting market and business Control Procedure and submit both a project
R&D and Innovation development needs. initiation report and a risk assessment report.Financial Impact: R&D investment failing
to generate effective results increasing
Governance R&D costs impairing profitability.Taking R&D and innovation as its primary growth drivers Leyard has established a robust R&D and innovation management system and a Risks Business Impact: Loss of core R&D talent Medium- to Establish structured career paths for R&D
clear governance structure with well-defined departmental roles ensuring the smooth execution of R&D and innovation activities.Rooted related to leading to delayed project progress long-term talent tie compensation and incentives to
in technological R&D and driven by product innovation the Company has developed a full lifecycle management system that covers R&D disruption of technical knowledge patent filings and technological
project initiation execution outcome commercialization and IP protection and standardizes the whole R&D process in strict accordance talent transfer reduced R&D innovation breakthroughs and introduce employee stock
with the Product Design and Development Control Procedure (LYD-QP-041) enabling standardized control from needs assessment to turnover efficiency and technological breakthrough ownership plans to strengthen employees'
project closure.The R&D Center leads technology R&D new product development and technological breakthroughs. It works closely with capability. sense of belonging. A diversified training
each business segment to advance projects through a structured process—initiation solution design engineering prototyping system should be established to offer R&D
small-batch trial production and closing review—ensuring that R&D outcomes effectively meet business needs. The HR department is Financial Impact: Increased recruitment staff personalized training and development
responsible for recruiting fostering and motivating R&D talent and for establishing clear career paths that support team stability and and training costs delayed commercial- opportunities such as patent writing and core
professional growth. The intellectual property (IP) department together with the R&D department manages patent and software ization of R&D outcomes indirect impact technology problem-solving—to boost both
copyright filings and protection. Specifically they carry out patent filing search and analysis in line with the Intellectual Property on revenue growth. their professional competence and career
Acquisition Control Procedure (LYD-IPGL-71-01) and the Patent Management Policy and perform routine maintenance and valuation of
patents trademarks and copyrights under the Intellectual Property Maintenance Control Procedure (LYD-IPGL-72) creating a
closed-loop“ R&D Protection Commercialization” mechanism.Furthermore the Company has enhanced its digital systems including
the PLM platform to optimize R&D processes standardize the management of R&D documentation project tracking and technology
status improve R&D management efficiency and provide a strong institutional and organizational foundation for innovation. ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Risk/ Impact Risks and Opportunity Management
Opportunity Potential Impact (Business and Time Response Strategy
Type Financial) Horizon The Company has put in place a comprehensive mechanism for identifying assessing and responding to R&D and innovation-related
impacts risks and opportunities. These R&D and innovation risks are embedded within the Company's broader risk management
Continuously increase R&D investment in system creating a closed loop of "identification assessment response monitoring" that operates in close alignment with the Business Impact: Increased R&D investment by competitors
Risks Medium- to core technologies focus on frontier areas Product Design and Development Control Procedure and the Intellectual Property Related Control Procedures.During the risk and and the launch of similar innovative products may intensify
related to long-term and build differentiated technological opportunity identification phase the Company identifies R&D and innovation risks and opportunities across core dimensions—market competition reduce market share and weaken
intensi- advantages. It should also strengthen the technology R&D talent market competition and IP protection—using R&D discussions IP searches and market research. These efforts market position.fied commercialization of R&D outcomes and are informed by industry trends policy directions market demand and internal R&D capabilities. Potential R&D process failures are also
industry Financial Impact: In order to sustain its competitiveness the launch innovative products that meet identified and documented using the Design Potential Failure Mode and Effects Analysis Form.During the assessment phase the
competi- Company is required to ramp up R&D spending. This could market demand. Additionally it should Company uses qualitative analysis to prioritize risks and opportunities based on their likelihood and potential impact on business and
result in increased R&D expenses and a corresponding
tion enhance IP protection to mitigate finance. It conducts focused assessments of risks related to core patents and key R&D projects and produces the Intellectual Property decline in product gross margins. competitive risks. Assessment Report and the Project Risk Assessment Report.During the response phase the Company tailors its response strategies by
risk and opportunity type assigning clear ownership to departments (e.g. R&D IP HR) along with implementation steps and timelines
Continue ramping up R&D investment and coordinates efforts to drive effective execution. For example the R&D department takes the lead in managing R&D risks while the IP
Opportu- Business Impact: Capitalize on technological upgrades in Medium- to exploring core display technology areas department takes the lead in addressing IP risks.During the tracking phase the Company regularly monitors changes in R&D and
nities the LED industry to strengthen its leadership in intelligent long-term and developing key technologies. Efforts innovation risks and opportunities. Using the PLM platform it tracks project progress and risk response status evaluates strategy
from the display through key breakthroughs expand into high-end should be made to accelerate the mass effectiveness and adjusts measures as needed. R&D and innovation risk management is also embedded in the annual risk management
indus- product markets and drive innovation across related production of high-end products in strict self-inspection and review process supported by regular supervision and evaluation. Together with technical and project closing
try's business segments. accordance with the Product Design and reviews this ensures an effective management mechanism that minimizes risk impact and captures development opportunities.technolo- Financial Impact: Drive mass production and sales of Development Control Procedure for
gy high-end products increase product added value boost achieving technology leadership. In
upgrade revenue and profits and enhance profitability.parallel a strategic patent portfolio should
be built to establish a core technology Indicators and Targets
patent barrier.Leyard Group's R&D investment for the current year amounted to 403.7897 million
Opportu- Business Impact: Use the R&D outcomes to enter Medium- to Enhance cross-domain technology CNY representing 5.72% of its revenue from principal operations.nities multi-domain application scenarios foster deep long-term adaptability integrate R&D outcomes
from integration between technology and culture and into various application scenarios
growing generate new drivers of business growth. strengthen partnerships and expand
demand into new application markets. Quantitative Disclosure Item Unit 2024 2025
across Financial Impact: Broaden market coverage gain
multiple market share achieve sustainable revenue growth
Number of invention patents applied to 326 387
principal operations
applica- and improve its revenue mix.Number of new invention patent applications 55 56
during the reporting period
Opportu- Business Impact: By leveraging support from national Medium- to Actively participate in the develop- Number of newly granted invention patents 107 90
nities industrial policies the Company can participate in setting long-term ment of national industry and group during the reporting period
from national and industry standards establish industry standards stay aligned with industrial
technology benchmarks and enhance its corporate Cumulative number of granted patents 2662 2896policy policies and pursue R&D projects in
support influence and standing. policy-driven areas to access Number of active patents during the reporting
and Financial Impact: Benefit from policy incentives to reduce government support. 2109 2186period
standard R&D costs promote large-scale adoption of standardized
setting products and improve its market competitiveness. ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Product and Service Safety and Quality Strategy
Based on the core requirements for product and service safety and quality and taking into account industry standards market feedback
Governance and its own operational realities the Company systematically identifies quality and safety risks across the entire product lifecycle
analyzes their potential impact and develops targeted response strategies as detailed below:
Leyard views product and service safety and quality as fundamental to its corporate development. The Company has built a value
chain-wide quality management system with a clear governance structure that assigns clear roles and responsibilities across all levels
and departments to ensure effective quality control.Driven by a commitment to quality and its mission of "enhancing the human Risk/
audiovisual experience" Leyard continues to deepen its ISO 9000-based total quality management. By aligning with customer needs and Opportunity Potential Impact (Business and
Time
Response Strategy
corporate strategy it implements quality management across all employees processes and the entire value chain consistently Type Financial)
Horizon
delivering customer value.Leyard's ISO 9000-based total quality management system is fully certified by leading industry authorities covering quality management Risks that may Business Impact: Reduced product yield and Medium- to Establish a robust design risk
delivery and service privacy protection and information security business continuity and more. The Company's subsidiary Leyard Micro compromise substandard performance from design defects; design long-term control mechanism that
Crystal Display (Jiangsu) Co. Ltd. obtained ISO 9001:2015 certification (Certificate No.: 22ACM16620Q) initially registered on July 11 contract violations and patent lag from schedule realization systematically identifies
2022 and valid until July 10 2025 for the design and production of Micro LED beads and Micro LED modules. delays; product recalls and supply chain trust crisis delay schedule analyzes and tracks risks from design failures.
or result in throughout the entire design
design failure process.Financial Impact: Additional costs incurred from low
Governance Structure during the yield and recalls; penalty payments for contract
product design violations; and increased cooperation costs resulting
& development from supply chain trust crises.Position/Department Core Responsibilities phase
As the core leader the general manager is fully responsible for the establishment implementa- Risks related Business Impact: Material quality fluctuations reduce Short- to Establish a supplier risk
General manager tion maintenance and improvement of the quality environmental hazardous substance free to supplier's product yield; delivery delays cause production line medium-term control system that
(HSF) and OHS management systems. quality and stoppages or costly emergency procurement; rigorously evaluates
delivery sole-source dependency and long replacement supplier's quality delivery
Management He/she leads the development of the management systems in accordance with applicable capability cycles heighten supply chain vulnerability. and related risks and
representative standards. during develops effective counter-
Heads of departments They fulfill responsibilities within their respective scopes of authority and participate in policy and
procurement Financial Impact: Reduced yield increases produc- measures to keep risks
objective development. tion costs; emergency procurement drives up manageable.purchasing costs; production line stoppages lead to
Subsidiaries and They are responsible for document management system organization and coordination quality
factories control and continuous improvement.Contractual Business Impact: Delayed delivery leads to customer Short-term Establish a contract
All employees They participate in training implement the Company's management policies and objectives performance churn and goodwill impairment; poor sales of performance risk control
comply with laws and regulations and maintain relevant facilities. risks such as customized products or overstocking of general-pur- Long-term mechanism that compre-
delayed pose products lead to inventory write-downs. hensively identifies and
Management System delivery manages relevant risks
under sales Financial Impact: Customer churn reduces revenue; before contract signing
In terms of systems and processes Leyard has continuously implement- contracts and
goodwill impairment constrains market expansion; ensuring timely fulfillment
inventory write-downs increase financial pressure;
ed maintained and improved its quality environmental HSF and OHS failure to and customer satisfaction.meet rigid contract terms incur penalties and compliance
management systems in accordance with the Quality Management costs.Systems—Requirements (GB/T19001—2016 GJB9001C-2017) Environ-
mental Management Systems—Requirements with Guidance for Use
(GB/T24001—2016/ISO14001:2015) Occupational Health and Safety
Management Systems (ISO45001:2018) and Hazardous Substance
Process Management (QC080000:2017). To ensure unified and standard-
ized management of quality environment HSF and OHS the Company
has developed the Leyard Optoelectronics Co. Ltd. Integrated Manage-
ment Manual.Quality Management System Certificate
ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Risk/ Indicators and Targets
Potential Impact (Business and Time
Opportunity
Financial) Horizon Response Strategy
Type The Company has developed the Control Procedure for Objectives Targets and Management Programs to drive the ongoing
improvement of its quality environmental HSF and OHS management systems ensuring all related goals are met.Opportunities Business Impact: Based on its existing ISO system Medium- to Continuous optimization of
to enhance and certifications the Company can upgrade its long-term the quality management
the quality quality management systems to align with new system alignment with Supply Chain Security
system and industry standards thereby enhancing product evolving industry standards
improve competitiveness building customer trust and regular system audits and
standards expanding into high-end client markets. improvements and Governance
enhanced quality control
Financial Impact: Reduce quality-related losses and across the entire value chain. The Company places great emphasis on supply chain security management and recognizes supplier management as a key component
after-sales costs improve product pricing power and of supply chain security which serves as a vital safeguard for its sustainable development. The Company has consistently integrated
drive steady revenue growth. supplier management and supply chain security development into its overall corporate strategy.Leyard has established the Supplier Management Procedure which defines full-process management requirements covering supplier
Product Business Impact: Respond to higher customer Medium- to Strengthen customer needs classification development qualification evaluation and record-keeping to standardize supplier management and ensures that
iteration demands for product safety performance and long-term research optimize product practices align with company requirements.Suppliers are classified into three categories—A B and C—based on the type of materials
opportunities stability drive product iteration and upgrades create design based on those they supply. The Company conducts dynamic evaluations using the Annual Supplier Review Plan and the Supplier Assessment/
from rising differentiated advantages enhance customer needs continuously improve
customer satisfaction and loyalty and solidify its market product quality and safety Evaluation Report resulting in a Qualified Supplier List. This process is supported by the Procurement Record Management System to
quality position. performance and drive standardize the filing of supplier documentation and provide full lifecycle institutional safeguards. In terms of management structure and
expectations product iteration and functions the Company has developed a multi-department collaborative management mechanism with clearly defined core
Financial Impact: Increase sales of high-end upgrades. responsibilities for each department.products optimize its revenue structure and reduce
losses from customer churn.Department Roles and Responsibilities
Planning Responsible for participating in periodic performance evaluation of suppliers regarding delivery.Impact Risks and Opportunity Management
Manufacturing
During the risk and opportunity identification phase the Company employs various means to identify impacts risks and opportunities process Responsible for confirming auxiliary production material samples and following up on trial runs.pertaining to product safety and quality.Throughout product development and manufacturing it closely monitors shifts in market
demand regarding product quality and safety updates to industry quality standards and technical specifications as well as competitor Responsible for providing technical documentation for production materials and confirming relevant
R&D technical standards with suppliers; confirming and approving samples;providing feedback on sample
activities in product quality—enabling timely adjustments to product development direction and quality control strategies. Concurrently testing plans within 2 working days;preparing and issuing sample test result reports.the Company regularly reviews internal product quality test results and production processes to identify potential product safety risks
such as raw material quality issues and manufacturing process defects. Furthermore it maintains vigilance over industry quality Technical support Responsible for confirming samples of equipment cables and flight cases as specified in the contract's
incidents and regulatory developments to detect external factors that may affect the Company's product safety and quality. bill of materials.During the risk assessment phase the Company adopts a combination of qualitative and quantitative methods to evaluate risks.For Quality Responsible for participating in dynamic evaluations periodic performance reviews and management
of suppliers;supervising supplier quality.product development projects it comprehensively assesses factors such as technical feasibility market demand alignment and cost
control to determine the product safety and quality risk levels the project may face. In terms of product safety and quality assurance the
Procurement Responsible for developing and onboarding new suppliers; participating in dynamic supplier evalua-
Company evaluates the effectiveness of its existing quality control system and categorizes quality control measures into critical tions and management as well as periodic performance reviews.auxiliary and general control points based on factors such as their alignment with the Company's product safety objectives and the rigor
of execution—enabling corresponding management strategies. At the same time the Company regularly assesses the reasonableness
and applicability of its product quality testing indicators and safety standards.During the risk response phase the Company designates a responsible department and develops targeted countermeasures for each
identified quality and safety risk. These countermeasures are then implemented in strict compliance with relevant management systems
to ensure effective risk control thereby minimizing adverse impacts on product and service safety and quality and ultimately ensuring
orderly business operations. ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Emergency Response Team and Division of Responsibilities
Risk/ Potential Impact (Business and Time
Opportunity Response Strategy
The Company has developed the Supplier Risk Emergency Response Plan to ensure business continuity and stability and to minimize Financial) Horizon
Type
potential losses in the event of a supplier emergency.The plan outlines the emergency response process role assignments contact
details and disaster recovery measures enabling the Company to respond swiftly and effectively to supplier risks.When a supplier
emergency occurs the Company promptly sets up a supplier risk emergency response team led by the supply chain management Risks related Business Impact: Non-conforming materials; Long-term Establish a rigorous supplier
department with the involvement of relevant departments.At the same time the roles and responsibilities of each team member are to supplier compromised product performance and safety; qualification process that collects and
qualification production disruptions and delivery delays; reviews basic supplier information
non-compli- erosion of customer trust. Financial Impact: conducts comprehensive evaluations
ance Additional costs from material returns rework of new suppliers and directly Supplier ESG Management and scrap plus higher quality control and eliminates unqualified ones to control
compensation expenses. supplier quality at the source.Leyard has established ESG policies and guidelines as well as the Supply Chain ESG Management System to enhance its ESG manage-
ment system and ensure that ESG principles are followed across the supply chain. The Company has also assembled an ESG manage- Standardize the sample qualification
ment leadership team responsible for formulating ESG strategies goals and implementation plans.In addition an ESG performance Risks related Business Impact: Obstruction of supplier Short-term process with cross-departmental
evaluation system has been put in place to integrate ESG performance into supplier assessment and evaluation. to supplier onboarding; extended material supply lead collaboration on sample confirmation.sample times; disruption of production planning. Medium- Unqualified suppliers are either directly
eliminated or required to resubmit
Building on the Supplier Management Procedure the Supply Chain ESG Management System focuses on supplier ESG management non-compli- Financial Impact: Increased time and labor costs term samples. Suppliers that resubmit may
aiming to promote sustainable supply chain development while ensuring supply chain security and product quality through standard- ance for repeated sample testing and re-submission. only proceed to the next stage after
ized systematic ESG control. qualification.In system development the Company has assembled an ESG management leadership team to formulate relevant policies strategies
and internal management systems. By incorporating ESG performance into supplier evaluations and assessments the Company has Risks related Business Impact: Supplier production capacity Medium- For suppliers requiring on-site
developed a comprehensive ESG management and evaluation framework. to on-site and quality control levels failing to meet term
assessment the quality procurement
supplier requirements leading to compromised supply and R&D departments should jointly conduct the evaluation and produce a
The core of management is to achieve supply chain sustainability. This means improving supplier management with rigorous access assessment stability and quality and creating risks of supply Supplier Assessment Report. Non-compli-
audits optimizing processes to cut both costs and carbon emissions establishing early warning mechanisms for stronger control non-compli- disruption or quality issues. Financial Impact: ant suppliers may be required to take
promoting green procurement and enhancing system transparency through institutional upgrades. ance Increased costs from supplier corrective actions corrective actions or be directly
and reassessments; correction failures leading eliminated; they are added to the
The Company’s review process combines self-assessments with third-party audits focusing on supplier environmental management to new supplier development and extended Qualified Supplier List only after
integrity compliance and carbon emissions to ensure effective implementation of controls. successful correction.supply lead times.Risks related Business Impact: Decline in supplier quality Long-term Implement a dynamic supplier evaluation
Strategy to dynamic delivery service and other metrics leading to
mechanism with assessment cycles
supplier product quality fluctuations and delivery delays tailored to supplier classifications. Based on evaluation results the Company
evaluation affecting customer satisfaction. Financial should adjust procurement share
Based on the actual management practices across the entire supply chain and taking into account material classification characteristics non-compli- Impact: Costs from quality losses and delivery payment priority and payment terms and
and supplier management requirements the Company systematically identifies risks and opportunities related to supply chain security ance penalty payments; increased supply chain remove non-compliant suppliers from the
analyzes their potential impacts and develops targeted response strategies as detailed below: adjustment costs. Qualified Supplier List.Business Impact: Over-reliance on a single
Risks related supplier increases vulnerability to supply Long-term Establish a multi-source supply
to disruptions caused by unforeseen events system ensuring at least three
single-source affecting production continuity and constraining qualified suppliers for the same
dependency new model procurement as well as existing category of ordinary materials. For
for core model supply stability. Financial Impact: Lack of core materials Tier 1 suppliers
materials bargaining power may lead to higher procure- should be prioritized to diversify
ment costs; supply disruptions cause capacity supply risk.loss. ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Risk/ Indicators and TargetsPotential Impact (Business and Time
Opportunity Financial) Horizon Response Strategy
Type
Leyard has a total of 6579 active suppliers. Among them 363 suppliers are registered in Beijing
Opportunities Business Impact: Building long-term stable Long-term Provide incentives—such as new accounting for 5% of the total supplier base. Procurement spending on local suppliers represents
associated partnerships with Tier 1 suppliers improves model procurement preference 8.30% of total procurement expenditure.with material supply quality and delivery efficiency increased procurement share and
deepened supports new model development and mass shortened payment terms—to Tier 1
collaboration production and enhances product market suppliers with scores of 90 or above
competitiveness. Financial Impact: Securing Supplier Environmental and Social Assessmentwith in order to deepen collaboration
high-quality better pricing and payment terms reduces bonds.suppliers quality control and supply chain adjustment Environmental
costs and improves profitability.Opportunities Business Impact: Differentiated management for Long-term The classification and control system Management Measure Main Guideline Specific Action and Output
associated different material categories; focused resources should be continuously improved.with on core material suppliers; improved supply By refining supplier assessment Establishing the overall principles and Developing a Supplier Code of Conduct (Green Procure-
top-level commitment for supplier ment Policy) that clearly defines environmental require-
optimized chain management efficiency; reduced control cycles and management standards 1. Policy and commitment environmental management. ments.costs. Financial Impact: Optimized procurement based on the characteristics of A B
resource allocation; reduced management input 2. Organization and Defining the departments and personnel The supply chain management department takes the lead
responsibilities responsible for implementing and with professional support from the sustainability/ESG
overseeing the management measures. department and reports to senior management.Incorporating specific environmental criteria into
3. Supplier screening and Establishing environmental entry procurement contracts and assessment forms; requiring
Impact Risks and Opportunity Management onboarding (GRI 308-1) barriers for new suppliers. environmental certifications completion of environmental
questionnaires and development of environmental
Leyard uses the Supplier Quality Risk Assessment Form to build a management plans.Supply Chain Risk Assessment Matrix for comprehensive supplier
evaluation. This assessment covers financial health production Conducting on-site audits or special assessments for
capacity delivery capability compliance credit status and 4. Supplier risk assess- Identifying significant negative environ- high-risk suppliers.Implementing a three-tier environmen-mental risks within the existing supply
reputation.The Company also reviews each supplier's cooperation ment and audit tal assessment for suppliers providing hazardous waste chain.history with other customers and relevant customer feedback.Based management services.on the results suppliers are classified into high medium and low
risk levels with priorities determined by the severity and potential 5. Improvement and aking corrective and preventive actions Providing training and coaching to suppliers and sharing
impact of identified risks.The Company regularly updates these capacity building (GRI against identified negative impacts. best practices with them to help enhance their environ-
308-2) mental management capabilities.assessment results and adjusts supplier risk levels and management
strategies accordingly.
6. Performance evaluation Integrating environmental performance Linking environmental assessment results to order
For supplier ESG management the Company has established an and integration into overall supplier performance
allocation contract renewal and reward/penalty
assessments. mechanisms.ESG risk control mechanism to comprehensively assess environ-
mental social and governance risks across the supply chain. An
early warning system has also been implemented to promptly 7. Recordkeeping Retaining evidence for GRI reporting and Systematically documenting supplier screening rates
disclosure and review periodically reviewing the effectiveness identified issues and corrective actions for GRI 308-1 and identify potential risk factors and trigger corrective actions. For 308-2 reporting; annually evaluating the effectiveness of
example if an environmental risk is identified with a particular of the management measures. the management measure.supplier the early warning mechanism is activated requiring the
supplier to take corrective measures thereby ensuring the stable
operation of the supply chain. ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Social Assessment Quantitative Disclosure Item Unit 2024 2025
Management Measure Main Guideline Specific Action and Total number of Suppliers 5222 6579
Developing a Supplier Code of Conduct that explicitly Of which: number of suppliers in
Establishing overall principles and prohibits forced labor child labor and discrimination 5213 6569
1. Policy and commit- Mainland Chinasenior management commitment while committing to freedom of association occupa-
ment regarding human rights and labor tional health and safety etc.rights. Number of suppliers in Hong Kong 7 7Macao and Taiwan regions
2. Organization and Defining the departments responsi- The procurement department takes the lead with 2
responsibilities ble for implementation and Number of foreign suppliers
3
support from the sustainability/human rights depart-
oversight. ment and reports to senior management. Of which: number of Tier 1 900 923
suppliers
Incorporating social criteria into procurement
3. Supplier screening Establishing social entry barriers for contracts; requiring new suppliers to sign the code of Number of
and onboarding (GRI new suppliers. conduct; conducting initial screening through suppliers Number of Tier 2 suppliers 1800 1879
414-1) questionnaires or third-party certifications.
Number of Tier 3 suppliers 2522 3777
Conducting on-site audits or third-party verification
4. Risk assessment and Identifying significant social risks Number of new suppliers added audits for suppliers in high-risk countries/indus- 300 1357
due diligence within the existing supply chain. during the yeartries.The assessment scope covers labor rights
working conditions health and safety etc. Of which: number of Tier 1 50 23
suppliers
Requiring non-compliant suppliers to develop and
5. Improvement 180Taking action against identified 79implement corrective action plans; providing training Number of Tier 2 suppliers
integration and capacity negative impacts. support;Linking assessment results to order allocation
building (GRI 414-2) performance evaluation and contract renewal. Number of Tier 3 suppliers 70 1255
Establishing or supporting the establishment of worker
grievance channels.For severe violations where
6. Grievance remedia- Establishing remediation and suppliers refuse to take corrective action establishing
tion and relationship responsible exit mechanisms. responsible relationship termination procedures. Equal treatment of small and medium-sized enterprises
management
During the reporting period the Company treated SMEs fairly and equally.It managed its supply chain performed contracts and
conducted business cooperation in strict compliance with the Regulation on Ensuring SME Payments and all applicable rules and
Systematically documenting supplier screening rates
7. Recordkeeping Providing evidence for GRI reporting identified issues and corrective actions for GRI 414-1 requirements. The Company had no outstanding balance of accounts payable (including notes payable) that exceeded either CNY 30
disclosure and review and driving continuous improve- and 414-2 reporting; annually evaluating the effective- billion or 50% of its total assets.ment. ness of the management measure. ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Data Governance Information Security
As early as 2018 Leyard embarked on a path of management innovation that integrated digital transformation with high-end Leyard places a high priority on information security management. It has built and continuously enhances a group-wide information
manufacturing.In early 2021 Leyard and Huawei worked together to explore the deep integration of digitization and industrial security protection framework and internal controls consistently implementing risk prevention measures in full compliance with
manufacturing and build a Leyard digital factory based on Huawei cloud for fully enhancing the intelligent level of manufacturing and regulatory requirements to safeguard its information systems operational data and insider information.During the reporting period the
the efficiency of production and management.In 2023 the Company successfully passed the assessment under two national standards: information security management system remained stable with no security incidents or related regulatory violations.Accordingly no such
the Capability Maturity Model for Intelligent Manufacturing and the Evaluation Method of Intelligent Manufacturing Capability Maturity. incidents occurred and no specific investment amount was incurred..Leyard Group is continuously adopting advanced digital technologies and intelligent equipment to fully optimize production processes
and achieve intelligent management giving a strong boost to its sustainable development.[Case Study] Network Information Security Training
The launch of its intelligent manufacturing digitalization project allows the Company to seize new opportunities for upgrading its digital
and smart manufacturing capabilities setting a new benchmark for digital transformation and intelligent upgrading across the industry. As the first training session of early 2025 the Network Information Security Training helped set the security tone for the year
ahead.It aimed to boost employees' security awareness and safeguard both personal information and corporate data assets.Leyard has streamlined management processes and improved operational efficiency through digital upgrades.Using cutting-edge
information technologies and a robust internal control system the Group ensures secure storage and transmission of customer data The training stressed the importance of building secure habits in daily work and life. It required that company data be
while preventing information leakage.It also publicly commits—on its website and in disclosures—that protecting customer privacy is a processed through secure channels and that public networks not be used to transmit sensitive information. Employees were
fundamental obligation.Technical and administrative measures are also in place to safeguard customer information from unauthorized advised to set strong passwords for their personal devices and update them regularly to be cautious when installing unknown
access or use. software and to take other similar steps to help maintain a secure network environment.The training also highlighted the
growing threat of new fraudulent "subsidy" scams. Employees were reminded to stay vigilant to treat any "subsidy" or
"refund" email that asks for critical information with suspicion to never click on suspicious links or share verification codes
and to always verify such notifications through official channels. ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Fulfillment of National and SAopcpiael nRdeiscpeosnsibilities
Fulfillment
of National
and Social
Responsibilities
Rural Revitalization
Social ContributionESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
For three decades Leyard has actively lived out its social responsibilities by systematically driving philanthropic efforts. The Company China Siyuan Foundation · Stars Education Fund
has funded the China Siyuan Foundation · Stars Education Fund the Hunan Zhijiang Peace and Development Foundation the Beijing
Leyard Charitable Foundation and the Zhijiang Education Foundation. With over CNY 100 million in cash and in-kind donations from The fund was established in June 2014 as a partnership between Leyard Group and the China Siyuan Foundation.Leyard and its actual controller it has supported more than 4000 students over 1000 teachers and over 350 schools—spreading public
goodwill across China and helping countless people in need.Through the Leyard Foundation and the Stars Education Fund the Company
continues to run programs such as the Life-Saving Aid Initiative the Heart-to-Heart Student Support Program the Warmth and Home
Renovation Program and the Tech-Enabled Growth Program. By funding disadvantaged students donating learning materials and
supplying tech equipment Leyard is building pathways to growth for children in remote areas shining the light of educational equity
further than ever before.Leyard has remained true to its founding mission: "rejuvenate China boost the industry and benefit the people."
The Group integrates social responsibility into its development strategy—strengthening the foundation of common prosperity through
rural revitalization and fulfilling its role as a corporate citizen through social contributions. It has built a social responsibility system
centered on industrial empowerment public welfare support and value sharing enabling the Company to grow in harmony with both
society and the nation.In 2025 Leyard Optoelectronics Co. Ltd. the Stars Education Fund and the Beijing Leyard Charitable Foundation carried out a total of 12
Beijing Leyard Charitable Foundation
The foundation was established in January 2024 with a CNY 10 million endowment from Leyard Optoelectronics Co. Ltd. and its
Chairman Li Jun. ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Rural Revitalization Social Contribution
Leyard has embedded ESG principles into its long-term strategy identifying education and rural revitalization as key priorities for its Leyard has put in place a comprehensive social contribution management system integrating social contribution efforts into its
social responsibility initiatives.The Company has steadily enhanced its organizational capabilities and philanthropic resources through long-term ESG development plan. Through the establishment of public welfare foundations the Company has created an independent
the establishment of foundations and special funds. The professional operating model of these entities ensures that both financial philanthropic management structure.Senior management oversees strategic planning major project approvals and resource allocation.resources and projects are deployed efficiently and transparently.In 2025 Leyard invested CNY 220000 in rural revitalization efforts The relevant foundation departments lead the coordination planning implementation fund management and impact evaluation of
social contribution projects. Business units based on their functions engage in philanthropic activities emergency support industry
leadership and other related efforts. The professional operating model of the foundations and special funds ensures efficiency and
[Case Study] Targeted Donations: Alleviating Poverty and Revitalizing Rural Areas transparency in both fund use and project execution keeping all work on a standardized and orderly track.In terms of institutional development the Beijing Leyard Charitable Foundation has adopted a range of policies including those
governing project management information disclosure physical asset management and financial management and accounting.Collec-
The Warmth and Home The Guanlan Subdistrict Office in Longhua District Shenzhen launched the "2025 tively these policies underpin a professional and standardized operating model for the foundation.Renovation Program donated Guanlan Subdistrict 'Guangdong Poverty Alleviation and Relief Day' Rural
CNY 20000 to the Shenzhen Revitalization Initiative" calling on government agencies caring enterprises social The governance structure of the foundation is composed of the board of directors the secretariat the finance department and the
Longhua District Charity organizations and individuals to join hands—ignite hope with compassion and project department.As the highest decision-making body the board of directors has ultimate authority over project management. The
Federation support rural revitalization. secretariat is responsible for the execution of projects which includes developing annual plans and budgets as well as managing
information disclosure.Within the secretariat the secretary-general acts as the accountable person.The finance department is in charge
of financial management and fund oversight.The project department which reports to the secretariat handles the planning and
Nimu Township located in western Nimu County frequently suffers from implementation of foundation-operated projects.The Warmth and Home
geological disasters such as mudslides and rockfalls in Dongga and Puba villages
Renovation Program donated
due to heavy rainfall. Meanwhile local community initiatives—including urban and In 2025 Leyard Optoelectronics Co. Ltd. together with the Stars Education Fund and the Beijing Leyard Charitable Foundation complet-
CNY 100000 to the People's
rural environmental improvement holiday outreach to vulnerable groups and ed nine charitable donation projects. Cash contributions reached CNY 1664400 and in-kind donations amounted to CNY 7216700
Government of Nimu Township
infrastructure upgrades for township government—are underfunded and in urgent bringing the total donations to CNY 8881100.Tunba Town Nimu County
need of external philanthropic support.This donation aligns with the national
Tibet
strategy of supporting Tibet's development and rural revitalization directly Social Welfare and Charitable Donation Projects
addressing the development challenges and livelihood needs of Nimu Township.In 2025 Leyard Optoelectronics Co. Ltd. together with the Stars Education Fund and the Beijing Leyard Charitable Foundation
The Warmth and Home Tibetan chicken farming is a key specialty industry in Pusong Township and an completed 12 charitable donation projects.Renovation Program donated important source of steady income for local residents especially those who have
CNY 100000 to the People's been lifted out of poverty.However the township's Tibetan chicken breeding base Beijing Leyard Charitable Foundation
Government of Pusong is currently facing a severe "aging flock" crisis. The average age of the existing flock In 2025 the Beijing Leyard Charitable Foundation launched a series of initiatives including the Heart-to-Heart Student Aid
Township Nimu Township exceeds 400 days well past their peak egg-laying period leading to a sharp drop in Program the Life-Saving Aid Initiative the Warmth and Home Renovation Program the Tech-Enabled Growth Program and the
Tunba Town Nimu County both egg production and farming profitability. This has severely sapped the Caring Guardian Disaster Relief Action. These efforts focused on education assistance medical aid preventing poverty relapse
Tibet industry's long-term momentum and threatens the income base of some caused by critical illness facilitating technology transfer visually presenting philanthropic outcomes and providing emergency
residents. relief for the Tai Po fire in Hong Kong.Stars Education Fund
The future is full of possibilities.Looking ahead Leyard will continue to support national strategies participate in rural revitalization and The fund donated 3500 care packages valued at CNY 454000 to the Education Bureau of Zhijiang Dong Autonomous County in
build a brand image that is both compassionate and responsible. At the same time the Company will promote positive values and Hunan Province.The donation aims to support local teachers by upgrading their teaching aids and daily necessities boosting
further strengthen its brand identity. teacher motivation and promoting the sustainable development of local education.Leyard Optoelectronic Co. Ltd.The company donated display screens valued at CNY 6.7628 million to the Education Foundation of Renmin University of China in
Beijing. ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
[Case Study] Chairman Li Jun Donates to Zhijiang Education Foundation [Case Study] Beijing Leyard Charitable Foundation · Beijing Summer Camp Study Tour
and Zhijiang Peace and Development Foundation
In April 2025 the donation ceremony for the Zhijiang Education Foundation and the Zhijiang Peace and Development In July 2025 the Beijing Leyard Charitable Foundation · Beijing Summer Camp Study Tour launched under the theme
Foundation was successfully held in Zhijiang Huaihua Hunan Province. “Youth Chasing Light · Drawing the Future.” A group of 46 outstanding teachers and students from Zhijiang Dong Autono-
mous County Hunan Province set off on an immersive journey of technological innovation and cultural discovery.Guided by its "Technology for Good" philosophy Leyard is committed to opening a window to the world of technology for
children in mountainous regions.Since 1995 the Company has built the Leyard Hope School in Nanmuping Township
Zhijiang Dong Autonomous County Hunan Province and established the Leyard Scholarship—a commitment it has upheld
for 30 years without interruption.To date Leyard has supported more than 350 schools over 4000 students and more than
1000 teachers making significant contributions to the advancement of education.
ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Time moves fast but our purpose has never wavered.In 2025 Leyard reached its 30th anniversary. What began as a 16-person startup integration across our display cultural tourism and night tour businesses. This will empower industries across the board and unlock
grew over three decades into a company that broke foreign technology monopolies and led China's LED display industry from follower new growth drivers—ensuring that technology better serves humanity and enriches lives.to leader. Along the way it has remained deeply committed to audio-visual technology steadfast in its sense of responsibility and
dedicated to the coordinated development of economic performance and social value.As we mark this 30-year milestone we look back We are committed to both responsible growth and our founding mission.Going forward we will embed ESG principles into our strategy
with pride—and look forward with purpose. As a global VFX technology & innovation leader we stay true to our vision: to build a and operations—upholding compliant governance refining our corporate structure strengthening internal controls and risk manage-
century-spanning enterprise that is trusted and respected worldwide. With three decades of strength in technology brand and ment and enhancing disclosure transparency to protect the rights of investors and stakeholders.On the social responsibility front we
resources we are ready to drive future growth deliver on our strategy and open the next 30 years of high-quality development. will build on three decades of philanthropic commitment—focusing on education philanthropy and emergency response. Through the
Leyard Foundation and the Stars Education Fund we will expand our Heart-to-Heart Student Support Program to enhance education
Going forward we will stay true to our core strategy. Guided by "embracing AI and leading in visual effects" we will build an integrated quality and talent development. We will also respond to emergency needs fulfilling our role as a responsible corporate citizen and
"AI + display + cultural tourism" ecosystem drive synergies across our businesses and evolve from a pure LED product supplier into an further extending our philanthropic reach.Regarding employee development we will continue to strengthen the mechanisms that
intelligent display ecosystem service provider.On the display front we will continue to drive technological innovation staying true to the protect employee rights and support professional growth. By promoting shared prosperity and co-development between our employees
philosophy that has guided us for three decades: innovation-driven growth and focus-driven expertise. In particular we will push and the Company we aim to build a united and resilient force that drives our sustainable long-term success.forward core Micro LED technologies accelerate the R&D and commercialization of next-generation solutions such as substrate-free
Micro LED and advanced MIP (Hi-Micro) and expand our product portfolio to serve a broader range of high-end and diverse application At thirty Leyard is both established and full of energy—ready for the long journey ahead.Marking this milestone we will build on our
scenarios. At the same time we will leverage our full lifecycle carbon footprint management system to continuously refine the innovation-driven heritage and commitment to responsibility. With an open mind we will embrace industry change and with firm
low-power products and manufacturing processes. By embedding green technology into every stage—from R&D and production to resolve we will deliver on our strategy. We will continue to advance audiovisual technology creating synergies across innovation
application—we will maintain our leadership in driving the industry's green transition. business upgrading and global expansion. As we pursue high-quality growth we will embed ESG principles into everything we do—
supporting the low-carbon transition and building a more caring society. Our goal is to build a century-spanning enterprise where
For global expansion we will continue to advance our dual-brand strategy of "Planar + Leyard." we Will further strengthen our position in technology serves the greater good green solutions thrive alongside development and light and shadow bring brilliance to every corner
the high-end North American market based on Planar's strong presence there. Meanwhile we will ramp up production at our overseas of a better human life.facilities in Slovakia and Saudi Arabia and enhance our global localization system for R&D manufacturing and sales. We will focus on
expanding into emerging markets such as Asia Africa Latin America and the Middle East driving sustained growth in the quality and
efficiency of our overseas operations and bringing the power of "created in China" to every corner of the globe and drive high-quality
growth on a global scale.We will remain committed to compliant operations respect local cultures and development needs across
regions foster synergy along the industry chain and pursue win-win outcomes with our global partners.The cultural tourism and night tour segment is a key driver of our second growth curve guided by our "2+4+1" strategic framework.Leveraging our strength in visual technology we will go deeper into local cultural stories and create more immersive landmark
projects—such as the Lu You's Former Residence in Shaoxing—to transform cultural tourism from sightseeing into true immersion. Thus
we will support cultural heritage preservation and urban regeneration with the goal of becoming a globally leading integrated cultural
tourism operator. At the same time we will accelerate the R&D and application of AI and spatial computing technologies driving deeper
ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Appendices
Indicator Unit 2024 2025
Key Performance Table
Total number of ESG training sessions - 26
Governance Performance ESG governance Total number of ESG training participants - 1077
Total hours of ESG training Hour - 629.80
Indicator Unit 2024 2025
Information security and Number of information security incidents 0 0
Number of board directors 5 6 privacy protection
Total number of anti-corruption training
Percentage of female board directors % 40 33.3 sessions
40
Total hours of anti-corruption training Hour 4.5 0
Number of executive directors 2 2
Business Ethics Total number of management personnel
Number of independent non-executive 2 2 covered by anti-bribery and anti-corruption directors 49 0training
Corporate Number of shareholders' meetings held 7 2 Percentage of management personnel
governance covered by anti-bribery and anti-corruption % 77 0
Number of Board meetings held 13 7 training
Number of strategy committee meetings 0 1 Total number of employees covered by held anti-bribery and anti-corruption training 92 0
Number of nomination committee
meetings held 1 0
Percentage of employees covered by
Number of remuneration and appraisal anti-bribery and anti-corruption training % 79 0
committee meetings held 2 3
Number of audit committee meetings held 4 4
Notes: No anti-corruption training was conducted during the reporting period. Instead the Company communicated with employees and
Number of performance briefing sessions
15 3 suppliers via covenant clauses and written notifications. For further details refer to the Business Ethics Compliance Management held (online) System section.
Number of investor exchange meetings
held (offline) 11 16 Note: The board of directors includes one employee representative director.Information
disclosure Number of investor questions answered 504 -online
~600 calls ~600 calls
Communication via phone or email
102 emails 200 emails
ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Environmental Performance
Indicator Unit 2024 2025 Indicator Unit 2024 2025
Total environmental protection investment 10000 CNY 61.4 148 Total waste generated ton 119.2 415.81
Total hours of environmental protection
training Hour 666 956.5
Total hazardous waste generated ton 20.84 19.37
Environmental
protection Total number of environmental protection 833 1335 Waste Total hazardous waste disposed ton 20.84 19.37
investment and training participants
training
Of which: Directors and senior executives 22 27 Total non-hazardous waste generated ton 98.36 396.44
Employees 811 1308 Total non-hazardous waste disposed ton 98.36 396.44
Total waste gas volume m3 18219 164702184 Natural gas 10000 m3 15.04 14.97
Particulate matter (PM) kg 39.30 6.03 Gasoline L 29840.60 24855.77
Air pollution Sulfur oxides (SOx) kg 10.70 0 Energy Electricity consumption 10000 kWh 4651.95 3245.16
utilization
Nitrogen oxides (NOx) kg 525.40 0 Solar energy usage MWh 253.13 2031.80
Volatile organic compounds (VOCs) kg 1246.50 6.44 Comprehensive energy consumption tce 5917.25 5261.34
Non-methane total hydrocarbons kg / 97.29 Total water consumption ton 239934.95 247433.00
Water resource
Total wastewater volume m3 174917.14 197946.40 utilization Recycled / reclaimed water usage ton 59087.00 62550.00
Chemical oxygen demand (COD) ton 3089.23 3944.76 Total wastewater discharged ton 174915.76 247433.00
Water pollutants Biochemical oxygen demand (BOD) ton 1109.84 1068.33 Total GHG emissions tCOe 30953.26 21939.80
Ammonia nitrogen (NH-N) ton 171.03 328.18 Scope 1: Direct GHG emissions tCOe 367.65 476.18
GHG
emissions
Total nitrogen (TN) ton 0.70 234.24 Scope 2: Indirect GHG emissions tCOe 30585.60 21463.62
Total phosphorus (TP) ton 44.03 66.52 GHG emission intensity tCOe per CNY 4.33 3.11
million of revenue
Note: Compared to the previous year's ESG report the scope of total waste gas volume data has been expand-
ed to now include the Beijing factory Leadstar Micro-Crystal Display and the Shenzhen company. ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Social Performance
() Employee Responsibility
Indicator Unit 2024 2025 Indicator Unit 2024 2025
Employment contract signing rate % 100 100 Number of new hires during the year 76 755
Total number of employees 4660 4405 Of which: Campus recruits 5 27
By gender Experienced hires 71 728
Employment
Number of male employees 2907 2801 Male new hires 55 467
Number of female employees 1753 1604 Female new hires 21 288
By age Employee turnover rate % 14.40 22%
Number of employees under 30 1199 936 Total number of participants of training 27305 26146for the year
Number of employees aged 30 to 49 2108 3093 Career Total training hours for the year Hour 149088 78301.45
development
Number of employees aged 50 and above 353 376 Total employee training expenditure CNY 10000 200.60 92.40
Employment
By education level
Doctorate degree 11 11
Master's degree 263 254
Bachelor's degree 1666 1661
Associate degree 1109 1015
Other educational background 1611 1464
ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
() Safety and Health () Upstream and Downstream of the Industry Chain
Indicator Unit 2024 2025 Indicator Unit 2024 2025
Number of work-related accidents during Number of complaints regarding products 29 21
the year 0 0 and services
Number of work-related fatalities Customer Customer complaint resolution rate0 0 % 100 100compliant
Number of severe work-related injuries service Customer complaint response rate % 100 100
(Level 4 or above) 0 0
Number of employees who received health Customer satisfaction score2745 4376 96.88 96.95
Occupational check-ups Customer
health Satisfaction Number of customers participating in the
Rate of employees notified of position-spe- % 100 100 survey 385 406
cific occupational hazards
Number of employees trained in responsi- 26 0
Incidence rate of occupational diseases % 0 0 ble marketing
Work injury insurance coverage rate for Total hours of responsible marketing % 0 100 training Hour 201 0employees Responsible
Safety investment marketingCNY 10000 268 750.55 Total number of incidents of non-compli-ance with regulations and/or voluntary
Work Safety codes concerning marketing communica- 0 0
Total number of emergency drills 21 35 tions (including advertising promotion conducted and sponsorship)
Total number of participants of safety 9994 6085
Work safety training for the year Total number of Suppliers 5222 6579
training
Total safety training hours for the year Hour 11014.00 11330.50 Of which: number of suppliers in Mainland 5213 6569
China
Supplier Number of suppliers in Hong Kong Macao 7 7and Taiwan regions
Number of
suppliers Number of foreign suppliers 2 3
Of which: number of Tier 1 suppliers 900 923
Number of Tier 2 suppliers 1800 1879
Number of Tier 3 suppliers 2522 3777
Number of new suppliers added during the
year 300 1357
ESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
() Innovation-Driven
Indicator
Indicator Unit 2024 2025
Of which: number of Tier 1 suppliers 50 23
Supplier- R&D investment CNY 10000 40363.75
Number of Number of Tier 2 suppliers 180 79
suppliers R&D investment as a percentage of revenue from
core business % 5.65
Number of Tier 3 suppliers 70 1255
Number of R&D personnel 979 920
Percentage of new suppliers screened using ESG criteria
Percentage of R&D personnel % 20 21
Of which: Environmental (E) % 18 11
Supplier
onboarding Number of new invention patent applications
S % 33 11 during the reporting period
5556
Number of newly granted invention patents
G % 49 11 during the reporting period
10790
Number of suppliers certified under quality management Cumulative number of invention patents granted 2662 2896
systems 2500 2600
Number of entities recognized as high-tech
Number of suppliers certified under OHS management enterprises 15 15
systems 1800 1850
Number of entities recognized as "Little Giant"
Number of suppliers certified under environmental 1 2
Supplier 1500 1600
specialized and sophisticated SMEs
management systems
audit Number of entities recognized as specialized and
Number of suppliers that have signed an integrity-based 5222 6579 sophisticated SMEs
1212
cooperation agreement (or letter of commitment)
Number of suppliers assessed in the annual review 100 20
Number of suppliers disqualified 30 18
Number of suppliers terminated due to environmental or
social issues during the year 5 2
Number of suppliers that have undergone an environmen- 40 /
tal impact assessment
Number of supplier ESG training during the year -
Supplier
onboarding
Of which: Environmental (E) 178 21
S 89 21
G 106 21
R&D and InnovationESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
() Social Welfare Indicator Index Table
Indicator Unit 2024 2025
Corresponding Sections of the Shenzhen Stock
Report Directory Exchange Self-Regulatory Guidelines for Listed Compa-
Investment in rural revitalization CNY 10000 110 22 nies No. 17 — Sustainability Report (Trial)
Number of people benefited from rural revitaliza- 50 40 About the Reporttion programs
Number of charitable / public welfare activities 8 12 Leyard at a Glance
Charitable donations CNY 10000 24.49 166.44 Double Materiality Analysis
Assessment
Number of employee volunteers 0 0 of Issue Communication with Stakeholders Sections 52 53
Materiality
Issue Materiality Assessment and
Volunteering hours Hour 0 0 Conclusion
Total social welfare investment CNY 10000 197.62 910.11 Compliance Governance Section 51
Sound and
Robust Risk management
Governance
Business Ethics Sections 54 55 56
Environmental compliance management Section 33
Climate Change Response and Integrated
Energy Governance Sections 20 21 22 23 24 25 26 27 28 34 35
Water Resource Management Sections 34 35 36
Pollutant Management Sections 30 31
Circular Economy and Waste Management Section 37
Ecosystem and biodiversity protection
Social Welfare
Commitment to Environmental
ResponsibilitiesESG Report 2025 Issue Materiality Governance Environment Employee Growth Shared Success Social Responsibility Appendices
Indicator Index Table
Compliant Employment System
OHS Dear readers:
Commitment to Sections 49 50
Employee
Responsibilities Career Development and Training Greetings!Thank you for reading the Leyard Environmental Social and Governance (ESG) Report 2025. Your feedback is
very important to our ongoing improvement. Please share your comments and suggestions below.Employee Rights and Care Selective questions (please tick "√" in the appropriate box)
Full-Lifecycle Management 1. What is your overall impression of the report
R&D and Innovation Sections 41 42 □ Very good □ Good □ Average □ Poor □ Very poor
Product and Service Safety and Quality Section 47
Partnering for
Shared Success 2. How would you rate the quality of the social responsibility information disclosed in the reportSupply Chain Security Sections 44 45 46
□ Very high □ High □ Average □ Low □ Very low
Data Governance
Section 48
Information Security
3. How would you rate the structure of the report
Fulfillment of Rural Revitalization
National and Social Sections 38 39 40 □ Very reasonable □ Reasonable □ Average □ Poor □ Very poor
Responsibilities Social Contribution
2026 Outlook 4. How would you rate the layout and presentation of the report
Quantitative Performance Table □ Very good □ Good □ Average □ Poor □ Very poor
Appendices Indicator Index Table Section 57
Feedback Form Open-ended question:
Please share any comments or suggestions you have for improving the Leyard ESG Report 2025. We greatly appreciate
your input.Note: In case of any discrepancies the Chinese version shall prevail.
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