2025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT

CONTENTS

About This Report 01 Building on Strong Governance Embracing Green Practices for Driving Development through

01 for Sustainable Growth 02 Shared Value Creation Innovation and SustainabilityChairman Message 03 03

About JSG 05 Corporate Governance 17 Ecological and Environmental Management 37 Green Industry Synergy 59

Company Development History 07 ESG Management 23 Addressing Climate Change 40 R&D and Innovation 63

2025 Honors 09 Compliance and Risk Management 27 Resource Utilization 45 Product Quality and Safety 71

Business Ethics 28 Management of "Three Wastes" 51 Customer Service 76

Information Security and Privacy Protection 33 Circular Economy 55 Sustainable Supply Chain 79

Key Performance Table 123 Empowering Talent to Build Creating Positive Impact

04 Tomorrow's Success 05 Together for a Better Future

Index of Indicators 129

Reader Feedback 130 Employee Rights and Benefits 89 Public Welfare 119

Employee Development 95 Rural Revitalization 121

Employee Care 105

Occupational Health and Safety 1092025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT

About This Report

Report Terminology

This is the 5th Environmental Social and Governance (ESG) Report published by Zhejiang Jingsheng Mechanical

& Electrical Co. Ltd. This Report discloses the Company's development practices and major achievements in For the purpose of presenting the economic social and environmental responsibilities of Zhejiang Jingsheng

economical environmental social and corporate governance responsibilities for the year 2025 in an attempt to Mechanical & Electrical Co. Ltd. (hereinafter referred to as "JSG" the "Company" or "we") and its subsidiaries the

communicate effectively with various stakeholders and systematically respond to stakeholder expectations and full names and abbreviations of some of the subsidiaries covered in this Report are as follows:

requirements.Huixiang E&H refers to Hangzhou Huixiang Electronic Meijing New Materials refers to Zhejiang Meijing New

Hydraulic Technology Development Co. Ltd. Materials Co. Ltd.Time Frame Jingchuang Automation refers to Zhejiang Jingchuang Ningxia Jingchuang refers to Ningxia Jingchuang

Automation Equipment Co. Ltd. Intelligent Equipment Co. Ltd.The Report covers the period from January 01 2025 to December 31 2025. To enhance the comparability and Jinghuan Electronic refers to Inner Mongolia JingHuan Ningxia Jinghuan refers to Ningxia Jinghuan New

perspectiveness of the Report some content appropriately refers to previous and subsequent years. Electronic Materials Co. Ltd. Material Technology Co. Ltd.Jinghong Precision refers to Zhejiang Jinghong Ningxia Xinjingsheng refers to Ningxia Xinjingsheng

Basis for Compilation Precision Machinery Manufacturing Co. Ltd. Electronic Materials Co. Ltd.Jingyu New Materials refers to Zhejiang Jingyu New Qiushi Semiconductor refers to Zhejiang Qiushi

UN Sustainable Development Goals (SDGs) 2030 Materials Co. Ltd. Semiconductor Equipment Co. Ltd.GRI Sustainability Reporting Standards (GRI Standards) by Global Reporting Initiative (GRI) Jingrui Electronic refers to Zhejiang Jingrui Electronic Qiushi Chuangxin refers to Zhejiang Qiushi Chuangxin

Materials Co. Ltd. Semiconductor Equipment Co. Ltd.Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report (For

Trial Implementation) Jingsheng Photonics refers to Zhejiang Jingsheng ZVISION Photoelectric refers to Hangzhou ZVISION

Photonics Technology Co. Ltd. Photoelectric Technology Co. Ltd.Self-Regulatory Guidelines No. 3 for Companies Listed on Shenzhen Stock Exchange—Compilation of Sustainability Report Jingxin Green Diamond refers to Zhejiang Jingxin Green

Chinese National Standard Guidelines on Social Responsibility Reporting (GB/T 36001-2015) Diamond Technology Co. Ltd.Data Source *See the Company's 2025 Annual Report for the scope of the specific holding subsidiaries covered in this Report.The data in this Report comes from the raw data of the Company's actual operation public data from government Report Acquisition

departments annual financial data relevant internal statistical reports third-party questionnaires and evaluation This Report is published in electronic format and can be accessed on the Shenzhen Stock Exchange website (www.interviews. The financial data in this Report is in CNY. In case of any inconsistency between this Report and the szse.cn) and CNINFO (www.cninfo.com.cn). The Report is available in both English and Chinese. In the event of any

Financial Report the Financial Report shall prevail. discrepancy in the interpretation of the two texts the Chinese version shall prevail.

1 22025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT

Chairman Message

The year 2025 marked a significant milestone for JSG Driving force through innovation and advantage through technology. The Company adheres to a dual-driven

as we continued to deepen our "Advanced Materials R&D system powered by both technological innovation and in-depth exploration of customer needs. We continue

A d v a n c e d E q u i p m e n t " s t r a t e g y a n d a d v a n c e to increase R&D investment building a moat around our core technologies to ensure long-term sustainable

h i g h - q u a l i t y d e v e l o p m e n t . Fa c i n g t h e co m p l e x competitiveness. By continuously achieving breakthroughs in key processes and equipment technologies JSG made

l a n d s c a p e s h a p e d b y t h e g l o b a l r e st r u c t u r i n g significant strides in the semiconductor equipment and materials sector in 2025. We successfully accomplished the

o f t h e s e m i c o n d u c t o r i n d u s t r y a n d p r o f o u n d domestic development of critical high-end equipment including 12-inch reduced-pressure epitaxy equipment and

adjustments in the new energy photovoltaic sector advanced packaging thinning equipment achieving product performance on par with international advanced levels.the Company remained steadfast in its commitment We launched a full-process solution for square silicon wafers marking a technological leap from circular wafers to

to te c h n o l o g i ca l i n n ovat i o n a n d s u sta i n a b i l i t y. rectangular substrates. We also achieved key breakthroughs in 12-inch silicon carbide crystal growth and established

On the foundation of stable operations we have a pilot line laying a solid foundation for the domestic production of large-diameter third-generation semiconductor

continuously enhanced both our industrial and social materials. Furthermore we continue to advance our strategic layout in semiconductor precision components and

value. Guided by a strong sense of responsibility deepen collaboration with customers across the industrial chain. We firmly believe that technological innovation

we have deeply integrated Environmental Social is not only the core engine driving corporate growth but also the fundamental pathway to enabling green

and Governance (ESG) principles into our corporate transformation across the industrial chain and fulfilling our sustainable development responsibilities.strategy and business practices actively responding

to t h e re s p o n s i b i l i t i e s a n d m i s s i o n s e n t r u ste d Strengthening foundations through governance and shaping the future through talent. The Company

to enterprises by the t imes while advancing the continuously improves its modern corporate governance and ESG management system. Under the strategic

development of advanced manufacturing. guidance of the Board of Directors we have optimized our governance structure standardized the operation of the

three governing bodies strengthened internal control and risk management and enhanced information disclosure

Charting the course with strategy and expanding and stakeholder communication. By embedding ESG principles throughout our management processes we are

horizons through synergy. JSG remains committed to its continuously improving governance transparency standardization level and decision-making quality thereby

mission: "building a leading enterprise of semiconductor building a solid institutional foundation for the Company's sustainable development. We firmly believe that talent

materials and equipment and developing green intelligent is the foremost resource and we have built a comprehensive talent development ecosystem. By improving career

high-tech manufacturing industr y". We continue pathways implementing diversified incentive mechanisms and establishing systematic training systems we support

to deepen our "Equipment + Materials" synergistic the mutual growth of employees and the Company. JSG has assembled a high-caliber talent pool led by professors

business layout establishing three core business and doctors with masters and senior engineers forming the core. Leveraging state-level research platforms and

segments: semiconductor equipment semiconductor overseas R&D centers we have created a closed-loop mechanism for attracting developing utilizing and retaining

substrate materials and semiconductor consumables talent. This high-quality well-structured and innovative talent force provides a solid guarantee for our technological

and components thereby building a solid foundation breakthroughs domestic substitution efforts and global expansion.for stable growth. Driven by R&D and innovation we Looking ahead the global technology industry and green transformation are embracing new development

are expanding our market presence advancing global opportunities. JSG will continue to uphold its core values: "Honesty and optimism loyalty and dedication striving

development and continuously enhancing our industrial orientation bolstering partners to success pioneering and innovation and co-creation of brilliance". We will remain

chain synergy and overall competitiveness. At the same committed to sustainable development driving industrial upgrades through technological innovation and facilitating

time adhering to the principles of openness synergy low-carbon transformation through green manufacturing. Together with our employees customers partners and

and win-win cooperation we work closely with long- the wider community we will continue to advance the high-quality development of the advanced manufacturing

Zhejiang Jingsheng Mechanical & Electrical Co. Ltd. term strategic partners fostering mutual trust and co- industry.Chairman creation of value to jointly promote higher-quality and

more sustainable development in the semiconductor and The crystal of technology enjoys great prestige in the world. Let us forge ahead confidently in the currents of our

Dr. Cao Jianwei photovoltaic industries. times writing a new chapter of sustainable corporate development through innovation and responsibility.

3 42025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT

About JSG Corporate Culture

Company Profile

Zhejiang Jingsheng Mechanical & Electrical Co. Ltd. was founded in 2006 and listed on the stock exchange in 2012. It is a leading Vision Mission Values

high-tech enterprise in China specializing in "Advanced Materials Advanced Equipment". The Company boasts an R&D and

management team led by professors and Ph.D. holders and possesses technology research platforms including a National To become a leading

Postdoctoral Research Workstation a National Enterprise Technology Center and several specialized research institutes. Its equipment supplier of Honesty and Optimism

main business products cover semiconductor equipment semiconductor substrate materials and semiconductor consumables The crystal of technology semiconductor materials Loyalty and Dedication

and components. enjoys great prestige in the Struggle Orientation To facilitate high-tech

world Partner Accomplishment

In the field of semiconductor equipment the Company is a leading domestic enterprise of core equipment for 8-12 inch industry development Pioneering and Innovation

semiconductor large silicon wafers. It has successfully established a presence in chip manufacturing and packaging equipment for green intelligent Co-creation of Brilliance

including 8-12 inch silicon atmospheric pressure epitaxy 8-12 inch reduced-pressure epitaxy equipment and thinning manufacturing

equipment with related products gaining market recognition and achieving mass sales. Its 6-8 inch silicon carbide epitaxy

equipment has achieved domestic substitution with a leading market share. Its photovoltaic equipment technology and scale

are globally leading in both respects.In the field of semiconductor materials the Company's sapphire material technology and scale are globally leading. Its 6-8 inch

silicon carbide substrate technology and scale rank among the top in China. It has achieved a technological breakthrough in 12-

inch silicon carbide crystal growth and successfully constructed a pilot line for 12-inch silicon carbide substrates. In the field of

semiconductor consumables and components the Company's technology and scale for semiconductor quartz crucibles have

achieved domestic leadership while its technology and scale for photovoltaic quartz crucibles are globally leading. Additionally

the Company's processing capacity and mass production scale for precision semiconductor components such as large vacuum

chambers large high-precision frames and precision transmission spindles rank among the top in China.scale

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A2025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT

Company Development History

200620072008200920102011

Shangyu Jingsheng Developed the first S uccessfully developed Successfully developed the U nderwent a shareholding Successfully developed the domestic

Mechanical & domestic fully-automatic the largest fully-automatic first domestic dual-source reform to become: Zhejiang first gas-cooled multicrystalline

Electrical Engineering mono crystal silicon growth Czochralski mono crystal JSH450 multicrystal ingot Jingsheng Mechanical & silicon casting furnace

Co. Ltd. Established furnace and achieved batch puller in China furnace Electrical Co. Ltd. Successfully developed the first

sales sapphire silicon growth furnace

20162015201420132012

T he 8-inch float zone silicon mono crystal puller Acquired ZVISION Photoelectric aiding in the E stablished JingRui Electronic E stablished JingHuan L isted on the GEM of the

passed the national 02 special project acceptance creation of automated intelligent production lines with a production capacity of Electronic to engage Shenzhen Stock Exchange

Established Jingchuang Automation starting the The 300mm Czochralski silicon mono crystal 12 million pieces of sapphire in the sapphire crystal

equipment service journey puller equipment passed the national 02 special slicing and polishing projects material business

project acceptance

201720182019

Acquired 10% shares and jointly established the Zhonghuan Advanced Semiconductor Materials Successfully developed a 6-inch SiC crystal growth S uccessfully developed various equipment for G12 silicon

Co. Ltd with Zhonghuan furnace wafers double-side grinding machines for 8-12 inch silicon

Developed a 12-inch semiconductor superconducting magnetic field mono crystal puller Established PRIMET Japan Co. Ltd. expanding into the wafers and polishing machines for 6-8 inch silicon wafers

Invested in semiconductor precision parts manufacturing base through JingHong Precision high-end semiconductor precision component field Achieved full coverage of 8-inch semiconductor silicon wafer

Established Qiushi Semiconductor initiating the growth slicing polishing and CVD processing equipment E stablished JSG Japan Co. Ltd. starting the path of international R&D for semiconductor equipment

development of semiconductor CVD equipment

202220212020

Successfully developed a fully-automatic diamond growth furnace Successfully developed a 12-inch semiconductor Successfully grew a 700Kg level sapphire crystal

JSG celebrated its tenth anniversary of listing hard-axis Czochralski silicon mono crystal puller Completed the technical identification of the third-

S uccessfully developed an 8-inch N-type SiC crystal S uccessfully developed the process exhaust gas generation semiconductor CVD equipment

treatment equipment for the semiconductor industry Successfully developed a 12-inch precision double-

Developed the first chip-end LPCVD officially side polishing machine

entering the IC manufacturing field

20232024

J SG's Technology Center was recognized as a national enterprise technology center Meijing New Materials and Qiushi Semiconductor were recognized as national

Meijing New Materials became the first company in China to develop and mass-produce 42-inch quartz crucibles specialized refined special and innovative "Little Giant" enterprises

The School of Mechanical Engineering of Zhejiang University held the inauguration ceremony of JingHuan Electronic's 1000kg class ultra-large sapphire silicon set a new world record

"Jingsheng Building" J ingsheng Photonics exported cell equipment to overseas customers

JSG's annual output of 300000 silicon carbide substrates project launched The Japan Materials Research Institute was established

7 82025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT

2025 Honors

2025 Major Events

2 AprilFebruary 4 D r. Cao Jianwei Chairman June JSG's mono-crystal puller of JSG was awarded the

and polisher were included honorary title of "Model 6 J SG participated in the 18th in the 2024 National Patent- Worker" of the Ningxia (2025) SNEC International

Intensive Products List Hui Autonomous Region Photovoltaic Power Generation

1January and Smart Energy Conference & Exhibition JSG was honored among Maythe 2024 Top 500 Chinese March JSG's subsidiary Qiushi

Listed Manufacturing JSG was successfully selected as a SuperSiC a subsidiary of Chuangxin successfully delivered

Companies by Value 3 "2024 Zhejiang Export Brand" 5Zhejiang Jingrui showcased 12-inch reduced-pressure epitaxy its 8-inch conductive silicon equipment

J SG showcased at SEMICON China carbide substrate 12-inch

2025 the premier annual event for sapphire substrate and 12-inch

the global semiconductor industry polycrystalline silicon carbide

substrate at PCIM Europe 2025

7July October December The groundbreaking 9September 10 JSG was successfully recognized ceremony for the new as a "2025 Zhejiang Green and I ts subsidiary SuperSiC (Zhejiang Jingrui) won three major manufacturing plant T he first 12-inch silicon carbide Low-Carbon Factory" 12 industry awards namely "2025 of SuperSiC (Zhejiang substrate processing pilot J SG received an "A" rating in Global Influential SiC Substrate

Jingrui) was successfully production line was officially information disclosure from the Enterprise" "2025 Globalization

held in Penang Malaysia put into operation

8 Shenzhen Stock Exchange for the Pioneer Enterprise Award" and T he 2025 Welcome Event August 12 consecutive years "2025 Excellent Product Award"for new graduates came J SG successfully held its to a successfully close 2025 Annual Strategic 11NovemberSeminar J SG launched its full-process J SG's 12-inch silicon solution for square silicon wafers

wafer final polishing to the global market

equipment was awarded

"2025 Zhejiang Excellent JSG's 12-inch semiconductor-

Industrial New Product" grade mono-crystal puller was

successfully delivered to overseas

customers

9 102025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT

2025 Key Honors

ESG Honors National Level Provincial Level Industrial Level

MSCI ESG rating upgraded to A T op 500 Chinese Private Manufacturing Zhejiang Export Brand Hurun China Top 500 (6 consecutive years)

Enterprises 2025

Wind ESG rating upgraded to AA 2025 Zhejiang Green and Low-Carbon Factory World's Top 100 Solar PV Brands (PVBL

Top 500 Private Enterprises in R&D Investment Ranking)

Awarded an "A" ESG Rating by Sino-Securities 2025 2 025 Zhejiang Top 100 Manufacturing

Index (SSI) Enterprises The 3rd Siemens China Operational Pioneer

Top 500 Private Enterprises by Invention Excellence Award

Awarded an "AA" ESG Rating by China Patents 2025 2 025 Zhejiang Advanced Level Intelligent

Securities Index (CSI) Factory G lobal Influential SiC Substrate Enterprise

Top 500 Chinese Listed Manufacturing 2025

Achieved an "A" rating in information Companies by Value 2024 2025 Zhejiang Top 200 Private Enterprises in

disclosure from the Shenzhen Stock Exchange R&D Investment

for 12 consecutive years T op 100 Chinese Listed Equipment

Manufacturing Companies by Value 2024 2025 Model Enterprise of Innovation in

Autonomous Region

K ey Software Enterprises Encouraged by the

State

6 subsidiaries listed as Specialized Refined

Special and Innovative Little Giants

11 122025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT

Responding to the UN Sustainable Development Goals (SDGs)

JSG supports the United Nations 2030 Agenda for Sustainable Development and promotes the realization of the UN

Sustainable Development Goals (UN SDGs 2030) through its actions.SDG 17:Partnerships for the Goals SDG 3: Good Health and Well-being

Corresponding Chapters: Chapter 1 Chapter 3 Chapter 4 Corresponding Chapter: Chapter 4

JSG empowers technological innovation through industry-university-research cooperation JSG has established an occupational health management system covering all

jointly establishing research centers with universities and setting up special science employees conducts regular safety training and emergency drills provides

and education funds; It advances cooperation on smart factories and green low-carbon complete welfare facilities to care for employees' physical and mental health.technologies with strategic partners; continuously optimizes the supplier empowerment

mechanism to build a transparent resilient and sustainable industrial chain ecosystem.SDG 4: Quality Education

SDG 16:Peace Justice and Strong Institutions Corresponding Chapters: Chapter 3 Chapter 4

JSG promotes industry-university collaborative education and builds a joint training

Corresponding Chapter: Chapter 1 platform for integrated circuits and intelligent manufacturing. Relying on "Jingsheng

JSG continuously improves its corporate governance structure strengthens the professional Academy" it provides tiered and categorized training to support employees in skill

functions of the Board of Directors strictly implements anti-corruption policies keeps upgrading and academic advancement.reporting channels open enhances anti-corruption and integrity education adheres to the

principle of fair competition and effectively protects investors' rights and interests.SDG 5: Gender Equality

SDG 13:Climate Action

Corresponding Chapter: Chapter 4

JSG guarantees equal employment and development opportunities for female employees

Corresponding Chapters: Chapter 2 Chapter 3 SDGs provides targeted care measures and fosters an inclusive and diverse workplace culture.JSG firmly seizes opportunities in clean technologies increases investment in this field

formulates climate targets identifies climate-related risks implements energy-saving

projects such as photovoltaic construction and lighting retrofitting advocates low-carbon

commuting for employees and promotes the green transformation of its operations. SDG 8: Decent Work and Economic Growth

Corresponding Chapter: Chapter 4

SDG 11:Sustainable Cities and Communities JSG standardizes employment in accordance with the lawprohibits forced labor

and child labor provides market-competitive remuneration and equity incentives

Corresponding Chapters: Chapter 2 Chapter 5 establishes a "three-sequence" career development path and regularly organizes

JSG adheres to the eco-friendly and low-carbon design philosophy. While promoting skill competitions and employee capability improvement training to promote talent

clean technologies it carries out rural revitalization and public welfare volunteer development.activities to support the sustainable development of cities and communities.SDG 9: Industry Innovation and Infrastructure

SDG 10:Reduced Inequalities Corresponding Chapter: Chapter 3 Chapter 2

JSG attaches great importance to R&D investment continuously improves the

Corresponding Chapter: Chapter 4 technological innovation system strengthens the research and commercialization

JSG implements diversity and equal employment policies and zero-tolerance discrimination. of scientific research achievements and leads the development of the global

It provides an inclusive working environment and festival care for employees with disabilities photovoltaic equipment industry with innovative technologies and products so as

veterans and ethnic minorities fostering an equal and positive workplace. to support industrial upgrading and infrastructure modernization.

13 142025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Building on Strong Governance for Sustainable Growth

01

Building on Strong Governance

for Sustainable Growth

JSG continuously optimizes its corporate governance model and constantly

consolidates the foundation for stable and sustainable development by

improving its governance structure and enhancing internal control and risk

management systems. The Company strictly upholds the bottom line of

business ethics strengthens information security guarantees and is committed

to safeguarding the legitimate rights and interests of all stakeholders. Always

adhering to compliant operations the Company realizes long-term stable and

sustainable value growth by improving governance efficiency.Corporate Governance

ESG Management

Compliance and Risk Management

Business Ethics

Information Security and Privacy Protection

15 162025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Building on Strong Governance for Sustainable Growth

Corporate Governance Committee Committee Name Key Responsibility Independence

The 6th Audit Committee consists

Be responsible for reviewing the Company's of Zhang Hongying (Chairperson)

JSG strictly complies with national laws regulations and regulatory requirements and has established a corporate financial information and its disclosure supervising Zhao Jun and Wang Jing all of

governance structure with corresponding rights and responsibilities standardized operations and effective checks

Audit Committee and evaluating internal and external audit work whom are independent directors and balances. The Company has set up a governance framework with the General Meeting of Shareholders as the and internal control. of the Company.highest authority the Board of Directors as the decision-making body and the management as the executive body.By clarifying the boundaries of rights and responsibilities and standardizing decision-making procedures the Be responsible for studying and providing The 6th Strategy and Investment

Company ensures the scientificity and soundness of corporate governance. recommendations on the Company's long-term Committee consists of Cao Jianwei

During the reporting period the Company actively implemented the requirements of the newly revised Company development strategy major investment decisions (Chairperson) Qiu Minxiu He Strategy and Investment

Law. With the approval of the 2025 Annual General Meeting of Shareholders the Company officially abolished the and other material matters affecting the Company's Jun Zhou Zixue and Wang Jing Committee

Board of Supervisors and integrated its supervisory functions into the Audit Committee of the Board of Directors development. including 1 independent director.further optimizing the governance structure and substantially improving supervision efficiency. The Audit Committee

fully assumed the functions of the former Board of Supervisors focusing on in-depth supervision of the authenticity Be responsible for formulating selection standards The 6th Nominating Committee

of financial information the effectiveness of internal control and the compliance of senior management in and procedures for directors and senior management consists of Wang Jing (chairperson)

performing their duties ensuring that the Company operates in a standardized manner under the rule of law. selecting and reviewing candidates for directors and senior Zhao Jun and Zhu Liang;

management and their qualifications and putting forward

General Meeting of Shareholders suggestions to the Board of Directors on matters such as The Committee includes 2 Nominating Committee nomination and appointment/removal of directors and independent directors and 1

appointment/dismissal of senior management. employee director.As the highest authority the General Meeting of Shareholders exercises the right to decide the Company's business

policies and investment plans in accordance with the law and deliberates on major matters concerning the

Company. Be responsible for formulating the assessment standards

for directors and senior management and conducting

Key Performance assessments; formulating and reviewing remuneration

The 6th Remuneration

policies and plans for directors and senior management and Evaluation Committee

including remuneration determination mechanisms consists of Zhao Jun

During the reporting period the Company held 4 General Meetings of Shareholders and considered and decision-making procedures payment and suspension (chairperson) Wang Jing and Remuneration and

as well as recovery arrangements and making Zhang Hongying all of whom approved 15 proposals. Evaluation Committee

recommendations to the Board of Directors on matters such are independent directors of

as the remuneration of directors and senior management the Company.and employee shareholding plans.Board of Directors

Responsibilities and Independence of the Committees under the Board of Directors

The Board of Directors of the Company is a permanent decision-making body mainly exercising the powers granted by

laws regulations the Articles of Association and the General Meeting of Shareholders and is accountable to the General Effectiveness of the Board of Directors

Meeting of Shareholders. The Board of Directors of the Company has established four specialized committees: Nominating

Remuneration and Evaluation Audit and Strategy and Investment. The rules of procedure for each committee have been The Company continuously improves the operational effectiveness of the Board of Directors to ensure the scientific

revised and improved operating strictly according to the rules of procedure of each specialized committee providing formulation and efficient implementation of decisions. The Company has clearly stipulated in the Articles of

scientific and professional opinions and references for the decision-making of the Board of Directors. Association matters such as the powers and functions of the Board of Directors and its specialized committees the

convening of meetings and voting methods. Board Meetings shall be held only when more than half of the directors

are present thereby ensuring the effective operation of the Board.Key Performance

During the reporting period the Company held a total of 9 Board Meetings and reviewed and approved 45

proposals with a director attendance rate of 100%.

17 182025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Building on Strong Governance for Sustainable Growth

Independence and Diversity Remuneration and Evaluation

The Company attaches great importance to the independence diversity and professionalism of the composition of The Company has formulated the Remuneration Management System for Directors and Senior Management with the

the Board of Directors. The Company has formulated systems such as the Independent Director Work System and the General Meeting of Shareholders deciding on matters pertaining to the remuneration of directors. The Board of Directors

Special Meeting Work System for Independent Directors and continuously optimizes the composition of the Board. When determines the remuneration and rewards and penalties of senior management. The Remuneration and Evaluation

nominating directors the Company comprehensively considers candidates' professional backgrounds work experience Committee under the Board of Directors is responsible for formulating the assessment standards for directors and senior

and knowledge and skills. The Nominating Committee regularly reviews and supervises the composition of the Board management conducting assessments and formulating and reviewing remuneration policies and plans for directors and

each year to ensure diversity and complementarity in members' skills experience knowledge age and gender. senior management. The Company continuously improves the assessment and remuneration management system for

Members of the Company's Board of Directors possess extensive industry experience and collectively span diverse directors and senior management to ensure the fairness and reasonableness of their remuneration.professional domains including the semiconductor sector accounting and legal affairs forming a multidimensional The Company's remuneration policies and plans take into account the average annual salary level of the industry in

governance insight system. By leveraging expertise across these fields the Company has effectively enhanced the which the Company operates and the Company's current conditions and link the annual remuneration of directors

Board's scientific decision-making level strategic execution capability and risk prevention and control effectiveness and senior management to ESG-related indicators such as compliant operations business ethics product innovation

while safeguarding investors' interests and solidifying the professional foundation of corporate governance. and R&D talent attraction and retention product quality and customer complaints. This mechanism fully motivates

Key Performance the directors and senior management and strengthens the constraints on responsibility objectives.Key Performance

As of the end of the reporting period the Company completed the election of the sixth Board of Directors.The current Board consists of 9 directors including 3 independent directors 1 employee director and 3 During the reporting period the total remuneration paid to directors and senior management amounted to

CNY 1796.78 ten thousand.female directors.Remuneration Clawback Provisions

Independence and Diversity of the Members of the Board of Directors

The Company clearly stipulates in the Remuneration Management System for Directors and Senior Management

the payment suspension and clawback mechanism for the remuneration of directors and senior management in

Professional Ability order to protect the legitimate rights and interests of the Company and its shareholders. Where directors or senior

Name Position management breach their duties and cause losses to the Company or are at fault for illegal or non-compliant acts Industry Risk Financial Gender Age such as financial fraud misappropriation of funds or irregular guarantees the Company shall depending on the

Experience Management Management severity of the circumstances reduce or suspend the payment of unpaid performance-based salary and medium- to

Cao Jianwei Chairman long-term incentive income and recover in full or in part any performance-based salary and medium- to long-term Male 48 incentive income already paid during the period in which the relevant acts occurred.Qiu Minxiu Non-independent director Female 81 Composition of Directors' and Senior Management's Remuneration

He Jun Non-independent director Male 57 The remuneration of the Company's directors and senior management consists of basic salary performance-based

salary and medium- to long-term incentive income. In principle performance-based salary accounts for no less

than 50% of the total of basic salary and performance-based salary. The Company conducts annual performance

Mao Quanlin Non-independent director Male 56 evaluations based on audited financial data and determines that a certain proportion of performance-based salary

will be paid after the disclosure of the annual report and the completion of the performance evaluation.Zhou Zixue Non-independent director Male 70

Zhu Liang Employee director Male 47

Zhao Jun Independent director Male 48

Wang Jing Independent director Female 44

Zhang Hongying Independent director Female 60

19 202025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Building on Strong Governance for Sustainable Growth

Information Disclosure

Independent I ndependent directors receive a fixed director allowance. They are not subject to the

Directors Company's internal performance assessments linked to remuneration. In strict accordance with laws and regulations including the Company Law of the People's Republic of China the

Securities Law of the People's Republic of China and the Measures for the Administration of Information Disclosure

by Listed Companies the Company has established and refined internal control systems such as the Information

Disclosure Management System and has always fulfilled its information disclosure obligations in a proactive

truthful accurate timely fair complete and effective manner to safeguard against information disclosure risks.The chairman of the Board receives remuneration in accordance with the Company's Key Performance

remuneration management policies based on his management functions and

attainment of corporate performance targets.Non- N on-independent directors who hold specific positions in the Company's operational

During the reporting period the Company disclosed a total of 79 announcements and has not been subject

Independent management team receive remuneration in line with the Company's position-based salary to any penalties for violations of information disclosure regulations.Directors system for the role they hold within the Company and no additional director allowance or

remuneration will be paid. The Company has received an "A" rating in the Shenzhen Stock Exchange's annual information disclosure

N on-independent directors who do not hold any position in the Company's operational evaluation for 12 consecutive years.management team shall receive a fixed director allowance.Protecting Investors' Rights and Interests

Remuneration for senior management comprises basic salary performance- In strict accordance with laws and regulations including the Guidelines

based salary and medium- to long-term incentive income. The basic salary is for Investor Relations Management of Listed Companies and the Self-

determined based on fixed factors such as educational background professional regulatory Guidelines for Listed Companies No. 2 - Standardized

Senior experience years of service job responsibilities and industry salary levels. Operation of Companies Listed on GEM of Shenzhen Stock Exchange the

Management Company has established and improved internal control systems such as

P erformance-based salary is based on operating targets as the assessment benchmark and the Investor Relations Management System to continuously strengthen

determined according to the realization of operating benefits and the work performance the professional foundation of investor relations management. The

delivered by senior management. Company is committed to building a public fair and transparent multi-

dimensional communication framework. Through ongoing and in-depth

interaction mechanisms the Company actively responds to the concerns

of investors and potential investors fully demonstrating its core

Remuneration Standards for Directors and Senior Management competitive advantages and overall brand influence and continuously

enhances its value recognition in the capital market.Additionally the Company attaches great importance to protecting

the legitimate rights and interests of minority investors. It strictly

Details of remuneration composition for non-independent directors and the president during the standardizes the convening conduct and deliberation procedures of the

reporting period are as follows: General Meeting of Shareholders to ensure all shareholders especially

minority shareholders have equal rights to information participation

and voting on major company matters.Fixed Remuneration Variable

(CNY 10000) Remuneration

Member Position (CNY 10000) Total Key Performance(CNY 10000)

Salary Benefits Year-End Bonus

Since the year of listing the Company's cash dividend rate has been maintained at over 20% with a

He Jun Non-independent director 124 0.08 90 214.08 cumulative dividend amount exceeding CNY 3.4 billion (including the 2025 profit distribution).and president

21 222025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Building on Strong Governance for Sustainable Growth

ESG Management Board of It is the highest ESG governance and decision-making body responsible for

Directors setting ESG strategies and long-term plans deciding on ESG-related risks and reviewing external disclosures.JSG aims to "become a leading equipment supplier of semiconductor materials facilitate high-tech industry

development for green intelligent manufacturing" actively assuming responsibilities to shareholders the Oversees the development of overall and specialized strategic plans reports

environment customers employees and the community. JSG builds its ESG strategic guidelines starting from six Strategy and Investment regularly to the Board of Directors and oversees the coordination guidance

dimensions: robust governance environmental protection technology R&D collaboration with multiple parties Committee and supervision of major ESG matters and related decisions.caring for employees and contributing to the society.Develops ESG management policies manages external communication and information

ESG Working

Group disclosures reports progress and outcomes to the Strategy and Investment Committee

and coordinates daily ESG management among all departments.* E mpowering new energy ESG Management Organizational Structure of JSG* Business ethics

* A ctively creating shareholder products* P romoting green operation and * C ontinuous innovationvalue production * P romoting industry Double Materiality Analysis* S olid corporate governance and * Actively address and mitigate developmentoperations climate change For the year 2025 the Company conducted a double materiality analysis based on ESG-related guidelines from stock exchanges

Clean Technology industry hot topics ESG rating requirements from entities such as MSCI as well as best practices from industry peers. This was Robust Governance Opportunities Technology R&D combined with the Company's own ESG development and key concerns of stakeholders. A total of 26 sustainability-related

topics were identified and assessed providing a clear direction for the Company's sustainable work management.Overview of Company Activities Topic Identification Communication and

and Business Context and Screening Survey Analysis Report

To Understand Based on the 21 topics The Company Based on the results * T ransparent promotion paths outlined in the stock conducted of the communication

* Stable supply chain * Comprehensive employee * Focusing on vulnerable groups company activities

* Conducting public welfare business relationships exchange Guidelines

communication with and survey combined

* Becoming the most trusted training system

partner for customers * Caring for employee health donations and activities external operating

and through industry internal and external with expert analysis

environments policy analysis and stakeholders through the material topics were and life and impacted peer benchmarking various channels optimized. The Board

stakeholders. 26 topics related including online of Directors reviewed

Multi-stakeholder

Collaboration Employee Care Social Contribution to the Company questionnaires the completeness and

were identified and covering groups accuracy of the material

summarized. such as employees topics determined their

customers investors financial materiality

ESG Management Structure suppliers service and impact materiality

providers government prioritized them

and regulatory bodies and developed the

The Company continuously improves its ESG management system and has established a three-tier organizational media industry materiality matrix.structure of "decision-making - management - execution" with the Board of Directors serving as the highest associations and The report specifically

decision-making body. Under the Board of Directors the Strategy and Investment Committee is responsible for partner organizations. addressed topics of

managing and coordinating ESG matters while an ESG working group composed of heads of various functional particular concern to

departments implements specific tasks. Leveraging the "three lines of defense" ESG supervision mechanism the stakeholders.Company strengthens its management of ESG-related impacts risks and opportunities ensuring the compliance

and robustness of ESG management. This structure provides a solid organizational foundation for fulfilling ESG

commitments and achieving its sustainable development goals. Double Materiality Analysis Process

23 242025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Building on Strong Governance for Sustainable Growth

Stakeholder Engagement

2324

15 JSG attaches great importance to stakeholder communication management treating stakeholder expectations

12 11 and demands as key references for corporate sustainability efforts and has established a diversified regular

2 communication and feedback mechanism. Through various channels the Company regularly collects and responds

3 to the concerns of stakeholders including investors government bodies customers employees suppliers and the

9 media continuously enhancing governance transparency and accountability.

16

17413

10 Stakeholder Communication and 18

19 5 Identification

Expectations and Demands Response

256726

· Protection of legitimate rights and · Internal system publication22 14 interests · Internal online communication 1 Employees · Comprehensive compensation system platforms

· Smooth promotion system · Skill training and career development

· Diverse employee activities guidance8 · Organizing various employee activities

21 · Active R&D innovation

20 · Stable business growth · Compliance information disclosure

Investors and · Protection of shareholder equity · Smooth investor communication

Shareholders · Investor relations management channels· Intellectual property protection · IP training and protection

Not Material Financial Materiality Highly Material · Adherence to business ethics · Establishing an integrity and ethics

management system

Environmental Topics Social Topics Governance Topics

· Law-abiding business operations · Internal control system· Learning and implementing various

1.Addressing Climate Change* 9. Innovation R&D and Clean 23.Corporate Governance Government · Compliance with regulatory and Regulatory requirements regulatory provisions

2.Energy Use Technology Opportunities* 24.Compliance and Risk Management Authorities · In line with national development · Promoting rural revitalization and

25.ESG Management policies realizing "carbon peaking and carbon 3.Water Use 10.Product Quality and Safety* neutrality" goals

11.Sustainable Supply Chain* 26.Business Ethics and Anti-corruption*4.E nvironmental Compliance

Management 12.Human Capital Development

5.Circular Economy 13. Employee Rights and Benefits Suppliers

· Supply chain management · Supplier assessment exchange and

(Service · Anti-corruption training

6.Chemical and Waste management Protection Providers) · Mutual benefit and win-win · Transparent procurementcooperation · Resource sharing

7.Pollutant Discharge 14.Occupational Health and Safety*

8.E cosystem and Biodiversity 15. Information Security and Privacy

Protection Protection · Product responsibility management · Comprehensive quality management

16.Customer Service · Industry communication and system

Customers cooperation · Technical discussions

17.Leading Industry Development · Smooth communication channels · Customer service hotline and customer

18.IP Protection · Improving customer satisfaction

surveys

· Satisfaction surveys and feedback

19.Digital Transformation

20.Ethics of Science and Technology · R&D innovation · Collaborative R&D

21.Equal Treatment of SMEs Partners · Brand collaboration · Exchange visits

· Industry upgrade · Industry forums

22. Rural revitalization and

Community Contribution

Community · Social welfare · Volunteer services and community

· Rural revitalization activities

Note: * indicates financially material topics. In the report these topics are analyzed and disclosed according to the four key and Public · Targeted support

elements: governance strategy risk and opportunity management indicators and targets.

2526

Highly Material Impact Materiality Not Material2025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Building on Strong Governance for Sustainable Growth

Compliance and Risk Management Business Ethics

JSG adheres to business ethics codes by establishing a robust integrity system and strengthening the coordination

JSG has always prioritized risk prevention and continuously improved its corporate governance structure and risk of internal and external supervision ensuring full compliance with legal and regulatory requirements. The Company

management system. The Company has established a sustained and routine risk management operating system regularly conducts anti-corruption education and fosters compliance awareness among all employees striving to create a

clearly defining the responsibilities and authority for risk management at all levels. Comprehensive risk management transparent and fair business ecosystem.processes are in place and effective measures are taken to prevent and resolve various types of risks ensuring the

Company's stable and sustainable development. Governance

JSG strictly adheres to laws regulations and the requirements of stock exchanges and regulatory bodies. The Company

has established and publicly disclosed management systems such as the JSG Anti-Corruption Policy designating the

Board of Directors serves as the highest supervisory body for anti-corruption with the Audit Committee of the Board

Risk Risk Target Risk Risk

Identification Assessment Setting Risk Control Supervision Governance acting as the governing body. The Internal Audit Department established as the permanent anti-corruption body

operates with the Regulation Office and other functional departments to ensure coordinated implementation. This

framework constitutes a comprehensive and well-defined organizational structure for anti-corruption management.Through the implementation of specific internal control procedures and mechanisms JSG effectively prevents and

Risk Management Process cracks down on fraudulent activities strengthens integrity and compliance governance reduces operational risks and

standardizes business conduct thereby providing a strong foundation for the Company's steady development.Case Organizing a Legal Awareness Campaign to Strengthen Corporate Compliance and Security Defenses Board of Directors

To further enhance employees' awareness of the rule of law and improve their ability to mitigate risks

the Company invited the Deputy Director of the local Police Station to deliver a legal lecture in September Audit Committee

2025. Representatives from production EHS (Environment Health and Safety) administration business

and finance departments participated in the lecture. The lecture focused on legal risks in both corporate Internal Audit Department

operations and employees' personal lives and work. With real cases as examples the relevant laws and

regulations were explained in a clear and accessible manner warning employees to firmly establish an

awareness of the rule of law and continue to strengthen the Company's risk prevention and control system. Regulation Office Functional Departments

Board of Directors: Audit Committee: Internal Audit Regulation Office:

Oversees the Manages anti-corruption Department: A Ensures the enforcement

development and and anti-bribery efforts permanent specialized of decisions regarding

implementation of reviews and supervises anti-corruption body responsible personnel

anti-corruption and the effectiveness of under the Board of maintaining accountability

anti-bribery policies the anti-corruption Directors responsible within the organization.ensuring alignment with management system for tasks such as anti-

laws and regulations and and related policies and corruption audits Functional departments:

corporate governance reports to the Board of receiving and handling Each department

standards. Directors. reports and conducting undertakes anti-

investigations. It corruption work within

regularly reports to the department monitors

the Audit Committee employees' compliance

on audit results and with the Company's rules

reported cases to and collaborates with the

ensure effective policy Audit Department and

enforcement. other relevant departments

to uphold anti-corruption

standards.?Legal Risk Training

Organizational Structure and Responsibilities of Anti-corruption Management

27 282025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Building on Strong Governance for Sustainable Growth

Strategy Strong business ethics in This increases

Market the semiconductor and opportunities

Embed business

photovoltaic industry to participate in ethics requirements The Company systematically identifies potential business ethics-related impacts risks and opportunities in the Access and Medium-to-

course of its operations based on its industry characteristics and business model. By improving institutional Collaboration chain can help meet Long term Medium high-end projects

into business

frameworks strengthening internal controls and enhancing process supervision the Company continuously Opportunities compliance requirements and international

processes and

partnership

mitigate the potential impacts of improper behavior on business stability and reputation. This approach provides of major customers and cooperation and

robust support for the Company's sound operation and long-term sustainable development. international partners. expands business space

management

Note: Short term refers to within 1 year medium term to 1-5 years and long term to 5 years or more.Business Ethics Risk Identification List

Impact Risk and Opportunity Management

Possibility The Company continues to deepen anti-corruption risk management conducting business ethics and anti-corruption

Risk Type Risk Description Risk Timeframe of Risk Financial Impact

Response

Measures audits and risk screenings across all business departments strictly monitoring compliance with business ethics Occurrence standards. For high-risk businesses and personnel the Company conducts annual anti-corruption audits; for other

business departments the Company dynamically carries out self-inspections and corrections and risk screenings to

The semiconductor and

photovoltaic industry chain This may result in ensure anti-corruption risk audits cover all operational aspects every three years preventing corruption risks at the

involves large transaction fines litigation source and providing strong safeguards for stable business operations. or contract Improve the

Compliance amounts and long project terminations business ethics Key Performance

and Integrity cycles with frequent Medium-to-interactions with customers Long term Medium increasing and compliance Risk and suppliers. Inadequate compliance costs management

internal controls or integrity and negatively system During the reporting period the Company organized 9 corruption risk screenings achieving 100%

management may lead to affecting business

violations or improper conduct stability

coverage of all operational sites in the past three years.Attention from customers Reputation

Standardize

the disclosure Whistleblowing and Whistleblower Protection Mechanism

investors and regulatory damage may

bodies on business ethics Short-to reduce customer

of business

ethics-related The Company has established a sound and robust corruption reporting mechanism utilizing diverse channels such Reputational and compliance is increasing. Medium Medium cooperation information and as hotlines email and anonymous mailboxes to widely solicit supervision and reports from internal and external Risk Insufficient management or term willingness enhance the stakeholders on fraudulent activities. Throughout case acceptance and investigation the Company strictly adheres to

disclosure may affect external worsen financing terms and lower transparency the provisions of the JSG Anti-Corruption Policy and the information confidentiality protocols rigorously protecting evaluations market valuation of compliance whistleblower identities and report details and prohibiting the disclosure of investigation materials to the outside management without legal procedures. Additionally the Company explicitly prohibits any form of retaliation against whistleblowers

or investigators. For breaches of confidentiality or acts of retaliation the Company will implement strict accountability

Note: Short term refers to within 1 year medium term to 1-5 years and long term to 5 years or more. imposing disciplinary actions such as removal from office termination of employment contracts; cases involving criminal

offenses will be referred to judicial authorities in accordance with the law for criminal liability.Business Ethics Opportunity Identification List

Online Reporting Channel Whistleblowing Hotline Whistleblowing Email

Opportunity Opportunity Description Opportunity Likelihood Financial Impact Response JSG WeChat Official 0571-89905290 Type Timeframe Measures ia@jsjd.ccAccount (ext. 8081)

It helps solidify Continuously

Compliance Strengthening business customer improve Address for Complaint by Letter or in Person

Operations ethics and compliance

and Trust management can enhance Medium-to- Medium-to-

relationships compliance

Long term High stabilize order systems and Internal Audit Department Zhejiang Jingsheng Mechanical & Electrical Co. Ltd. No. 500 Enhancement trust among customers sources and internal controls Shunda Road Linping District Hangzhou City Zhejiang Province

Opportunities partners and investors. reduce operational and strengthen

uncertainty compliance culture

Whistleblowing and Complaint Channels

29 302025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Building on Strong Governance for Sustainable Growth

1 2 3 4 5 Fair Competition

Upon receiving For employees Persons suspected The results shall be Additional review The Company regards integrity in operations and information transparency as key principles of corporate

a report an who violate this of violating laws notified internally and supervision governance and business cooperation continuously promoting standardized and orderly cooperative relationships

investigation policy or other or committing and to necessary shall be applied to with upstream and downstream suppliers and partners. In business activities the Company strictly adheres to

shall be launched applicable laws crimes shall be external third high-risk business market competition rules conducts commercial activities in accordance with the law and resolutely prevents unfair

immediately and regulations transferred to parties and further activities with regular competition such as price monopolies. In 2025 the Company did not have any negative incidents violating the

and a written the Company judicial authorities anti-corruption reviews and updates principle of fair competition.investigation report will impose in accordance measures shall be to the Company's

shall be issued. corresponding with the law for implemented. internal control In brand communication and external information disclosure the Company adheres to a compliance-oriented

disciplinary actions handling. and compliance approach continuously improving the brand promotion information management system to ensure the truthfulness

based on the procedures. accuracy and standardization of externally released information. The Company's Brand Promotion Department

nature and severity formulated and implemented the JSG Brand Promotion Information Release Management Process clarifying the

of the violation. division of responsibilities for planning execution review and improvement effectively ensuring the compliance

and controllability of brand communication activities. Meanwhile the Company regularly conducts training on

Whistleblowing Handling Process anti-unfair competition laws and regulations to continuously enhance employees' compliance awareness and risk

prevention capabilities.Business Ethics Promotion and Training

Indicators and Targets

The Company is committed to fostering an integrity-driven culture by clarifying ethical boundaries. New hires must

sign an Integrity Commitment Letter and undergo specialized training on anti-corruption anti-monopoly and anti-

unfair competition to strengthen compliance awareness at the source. Through multiple channels—employee The Company consistently adheres to the business ethics management goals of "100% coverage of employee

handbooks intranet communications case studies and regular training—the Company ensures consistent and business ethics training and 100% coverage of business ethics risk screening". It regularly monitors relevant

effective dissemination of anti-corruption policies and legal requirements strictly prohibiting improper benefits and targets and metrics conducts prudent assessments of whistleblowing leads and strengthens the promotion and

establishing a sustainable compliance framework. dissemination of business ethics training. During the reporting period the performance of the Company's business

ethics-related indicators is presented in the table below:

Case Strengthening the Legal Defense Line and Conducting Special Education Lectures on Anti-

Corruption and Anti-Bribery Index Unit 2025 Data

In January 2025 to enhance the legal awareness and risk prevention capabilities of key personnel the Company's Commercial bribery and corruption incidents Case 0

EHS Department invited experts from the Economic Crime Investigation Brigade of the Shangyu District Public

Security Bureau to conduct a specialized legal lecture. The lecture provided an in-depth explanation of the legal Litigation or major administrative penalties due to the Case 0

definitions and consequences of common Company's unfair competition practices

crimes such as occupational embezzlement

bribery and misappropriation of funds Total number of directors and management personnelNote Person 70

and conducted in-depth analysis combined trained on anti-commercial bribery and anti-corruption

with the typical cases from the industry and

within the Company. Key business personnel Percentage of directors and management personnelNote % 100

financial personnel contract management trained on anti-commercial bribery and anti-corruption

personnel and relevant responsible persons

from various departments all participated in Total number of employees trained on anti-commercial Person 5745

the training as required. This training further bribery and anti-corruption

enhanced the legal awareness and compliance

awareness of management personnel laying a Percentage of employees trained on anti-commercial 100

more solid legal foundation for the Company's bribery and anti-corruption

%

healthy and stable development. ?Integrity Training Session

Note: "Management" personnel refer to employees at Grade 7 and above.

31 322025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Building on Strong Governance for Sustainable Growth

Information Security and Privacy Protection Information Security Assurance Initiatives

The Company continuously improves data compliance management in accordance with external laws regulations and internal

JSG strictly adheres to the requirements of laws and regulations such as the National Security Law of the People's management requirements. It conducts compliance risk assessments daily data security inspections compliance reviews

Republic of China Cyber Security Law of the People's Republic of China and Data Security Law of the People's Republic and compliance training for the collection use transmission and processing of the privacy of employees visitors and partners

of China continuously consolidating the foundation of information security compliance. The Company continuously during daily operations to safeguard the legitimate privacy and information security of the Company and its customers.improves its management system issuing and revising multiple core regulations such as the Information Management During the reporting period the Company optimized systems such as the Data Backup Strategy Execution Form and Data

Manual Confidential Area Management and Control Procedure and Information Data Management and Control Backup and Recovery Registration Form to prevent group data loss or damage due to hardware damage software failures

Procedure. Simultaneously the Company aligns with the ISO27001 international standard to continuously optimize its human errors virus infections etc. thus ensuring the security and integrity of the Company and customer data.information management system model strengthens the security protection mechanism across the entire process and all

elements and comprehensively fortifies the barriers for information privacy and data security.Data Security Inspection Information Security Training and Drills Hardware and Software Protection

Information Security Management System Model

The Company enforces strict The Company enhances For technical protection

data control conducts daily data employees' information security protection systems including

Planning security inspections to assess awareness through orientation file encryption system network

Stakeholders Establishment Stakeholders potential risks in data storage training for new employees access control system and data

transmission and processing information security promotion leakage prevention project are

promptly identifies and fixes via the OA system on-site deployed to safeguard data

vulnerabilities. training by local public security security.Maintenance Implementation Implementation police and other measures.and

Disposal Improvement

and Operation

Information Security Assurance Initiatives

Key Performance

Monitoring

and Review Inspection

During the reporting period the Company conducted 13 sessions of information security training for new

227

Information Security Management Structure employees special cybersecurity training sessions for management and issued information security

alerts on the corporate portal.The Company has established a three-tier governance structure

of "Board of Directors—Information Security Management

Committee—Information Security Working Group" Case Cybersecurity Experts Invited for Information Security Awareness Training

comprehensively strengthening the organizational foundation

of information security management. The Information Security

Management Committee is chaired by the Company's Chairman In November 2025 the Company specially invited cybersecurity Board of Directors

of the Board of Directors with the Vice President of Operations experts from the Public Security Subbureau of Shangyu District

serving as the Executive Deputy Director responsible for overall to deliver a special training session on information security

coordination and decision-making and top-level supervision. awareness for management covering more than 60 managerial

At the execution level the Information Security Group of the Information Security personnel. Based on real cases the training systematically

Excellence Performance Management Department collaborates Management elaborated on cybersecurity threats data protection measures and

with the IT Department to lead cross-functional cooperation with Committee risk response skills in office and daily scenarios. The expert training

multiple departments such as the Human Resources Center EHS aimed to improve management's awareness of information

Department and Administration office systematically advancing Information security protection and emergency response capability building.privacy protection and information security system development. Security Working It consolidated a secure foundation for the Company's digital

It submits regular monthly progress reports are submitted to the Group transformation and fully demonstrated the Company's high

committee to ensure the continuous and effective operation of priority on information security and data privacy. ?Information Security Training

the information security management mechanism. Organization Chart of Information Security System

3334

Information Security

Management

Information Security

Requirements and Expectations2025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Embracing Green Practices for Shared Value Creation

02

Embracing Green Practices

for Shared Value Creation

With the mission of "building a leading enterprise of semiconductor

materials and equipment and developing green intelligent high-tech

manufacturing industry" JSG regards sustainable environmental

management as the cornerstone of corporate development. The

Company is committed to addressing climate change systematically

promoting efficient use of water and energy continuously advancing

green operations and attaching importance to ecological protection

and biodiversity protection. Meanwhile the Company strives to

enhance environmental awareness among all employees balances

environmental performance and business development and steadfastly

pursues long-term goals of sustainable development.Ecological and Environmental Management

Addressing Climate Change

Resource Utilization

Management of "Three Wastes"

Circular Economy

35 362025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Building on Strong Governance for Sustainable Growth

Ecological and Environmental Management Environmental Risk Management

To ensure effective control of environmental risks in operations the JSG

JSG strictly complies with national laws and regulations including the Environmental Protection Law of the People's has formulated a series of system documents including the Emergency Plan

Republic of China and the Fire Protection Law of the People's Republic of China as well as local environmental for Environmental Pollution Incidents . Under these systems the Company

requirements where it operates. Drawing on international standards such as ISO 14001 the Company has established systematically promotes the construction of environmental protection facilities

a comprehensive Environment Health and Safety (EHS) management system. It has set up an EHS management routine environmental monitoring and emergency response capacity. Through

team and formulated the EHS Environmental Management Manual clarifying its environmental management environmental impact assessments the Company identifies evaluates and

philosophy and guidelines continuously improving management systems and effectively reducing the negative prevents environmental risks across business units and regularly organizes

environmental impacts of operations. environmental compliance training and environmental risk emergency drills to

continuously enhance emergency response capabilities. With institutionalized

routine and company-wide management practices the Company strives to

achieve long-term green and sustainable development.Environmental Environmental

Management Philosophy Management Policy Key Performance

* E stablish green concepts * Comply with environmental

* Promote clean production regulations In 2025 the Company conducted internal environmental risk audits and identified a total of 43 issues with

* Facilitate high-tech industry * All employees participate in control a 100% rectification rate.development for green intelligent * P revent environmental pollution

manufacturing * C ontinuously improve

* A chieve sustainable development environment

of environment and business Case Strengthening Emergency Capacity and Building a Solid Line of Defense for Environmental Risks

Corporate Environmental Management Philosophy and Policy Ningxia JingHuan continuously identifies risks of sudden environmental incidents and optimizes risk

assessment reports for sudden environmental incidents. In September 2025 Ningxia JingHuan organized

Based on its development characteristics the Company has set clear environmental management objectives and relevant personnel to conduct emergency drills for sudden environmental incidents. A total of 7 employees

established an annual tracking and evaluation mechanism. Environmental tasks are systematically decomposed and participated in the drill which simulated a sudden environmental incident to test the emergency response

integrated into the daily work of all departments and employees to ensure effective operation of the environmental and implementation of measures by relevant positions. Special improvements were made to problems

management system. Meanwhile the Company conducts environmental performance evaluation and management and deficiencies identified during the drill further enhancing the effectiveness of preventive management

of suppliers jointly promotes environmental improvement across the industrial chain and builds a "green and low- response measures and disposal capabilities and continuously consolidating the foundation of

carbon industrial ecosystem". environmental safety management.

2025 Environmental Management Objectives and Achievements

Achievement

Environmental Management Objective Index

202320242025

Identification of important environmental

factors and effective control rate 100% 100% 100% 100%

Major environmental pollution accident 0 0 0 0

Administrative punishment for ?Chemical Safety Emergency Drill

environmental protection 0 0 0 0

37 382025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Embracing Green Practices for Shared Value Creation

Environmental Compliance Certification Case "Carbon for Future Green for Renewal" Tree-planting Activity Held at Ningxia Park

The Company highly values the compliance standardization and advancement

of its environmental management system continuously improves the ISO 14001 To practice the concept of green operation the Company organized a themed tree-planting activity

environmental management system and actively promotes the construction at Ningxia Park. Professional technicians were specially invited to provide guidance and improve the

of a standardized system across the company. By continuously expanding the scientificity and survival rate of sapling planting. Employees actively participated in planting saplings and

coverage of the system a number of additional subsidiaries have completed hanging adoption plates with expectations for green growth. The activity beautified the park environment

relevant certifications and maintained a high-level environmental protection and enhanced employees' awareness of ecological protection serving as a vivid example of the Company

credit rating for a long time. This demonstrates the Company's continuous integrating biodiversity protection into park construction through concrete actions.investment and leading position in environmental governance. In 2025 a total of

10 subsidiaries of the Company obtained ISO 14001 environmental management

system certification and the Company has been rated as a unit with an A-level

environmental protection credit rating by the Department of Ecology and

Environment of Zhejiang Province for several consecutive years. ISO 14001 Environmental

Management System Certification

Biodiversity Protection (Partial Display)

The Company fully recognizes the importance of biodiversity protection for sustainable development actively responds

to international consensus and national policy guidelines and integrates the concept of ecological protection into the

entire operation process. The Company strictly complies with the Kunming-Montreal Global Biodiversity Framework

and relevant domestic regulations systematically assesses the potential impacts of business activities on the ecological

environment and promotes ecological restoration and greening projects in operation areas to effectively maintain ?Tree-planting Site

the integrity and stability of the surrounding ecosystems. During site selection and construction the Company strictly

implements environmental impact assessment procedures to ensure all business activities meet ecological protection

requirements. In 2025 no operational incidents with significant impacts on biodiversity occurred and the Company

continued to fulfill its commitment to harmonious coexistence with the environment.Addressing Climate Change

Develop ecological landscape

Implement tree planting and carry belts renovate ecological

out green environmental work fishponds and use filtration JSG fully recognizes the urgency and strategic value of addressing climate change integrates the concept of green

systems to improve water quality development deeply into its long-term strategy and actively responds to the national "carbon peaking and carbon

neutrality" goals. In management practices by referring to frameworks including the Guidelines No. 17 of the

Biodiversity Protection Measures Shenzhen Stock Exchange for the Self-regulation of Listed Companies – Sustainability Report (Trial) of Shenzhen

Stock Exchange and the Guidelines No. 2 International Financial Reporting Sustainability Disclosure Standard –

Climate-Related Disclosures published by International Sustainability Standards Board (ISSB) JSG systematically

identifies climate-related risks and opportunities and incorporates them into its decision-making process. Through

a series of emission reduction measures and adaptive actions the Company is committed to reducing the carbon

footprint of its own operations enhancing climate resilience and promoting the coordinated green and low-carbon

transformation of the industrial chain.Governance

The Company has fully integrated climate governance into its ESG management system. Based on the Company's

ESG governance structure it clearly defines the rights and responsibilities of all levels in addressing climate change.The Company has established a three-level management mechanism of "Board oversight Strategy and Investment

Committee management and ESG Working Group execution" so as to enhance the proactivity and sustainability of

climate actions and ensure the effective advancement and implementation of relevant strategies and measures.

39 402025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Embracing Green Practices for Shared Value Creation

Climate Change Risk Identification List

Global warming Continuously monitor

rising sea levels operational site risks

Possibility and other climate Facility conduct proper planning

Risk Category Risk Description Risk Timeframe of Risk Financial Impact Response Measure Physical Chronic anomalies pose Long Term Low-to- maintenance costs

and risk management for

Occurrence Risk Risk challenges to Medium and site selection new project site selection

long-term and costs increase construction and daily

stable business operations considering

Repair or replacement operations.chronic climate change

Extreme weather risks.such as typhoons costs of buildings

high temperatures production

Develop emergency

response plans to The implementation

flooding etc. with equipment etc. of sustainable

increased frequency increase

minimize losses from

natural disasters. regulations in China Pay attention to policies

and severity may Medium-to- Medium Order delivery delays Europe and other and regulations related damage buildings Long Term revenue reduction Conduct regular countries and to climate change

at production and liquidated damages infrastructure regions as well as Non-compliance formulate climate

office operation for contract breaches maintenance to bolster Policy Risk carbon footprint

Medium-to-

sites affecting resilience against extreme requirements has Long Term

High expenditures response strategies and

caused by production increase collect greenhouse gas

normal production suspension etc. weather. raised the standards emission data every year

operations. occur for information to effectively respond to

Physical disclosure policy changes.Risk Acute Risk and carbon

management.Focus on employee

life health and safety

Extreme weather provide protective gear Seize opportunities in

like typhoons high Production costs for employees and equip clean technology actively

temperatures and administrative personnel working in high

Customers are Failure to meet develop green low-carbon increasingly

and flooding may costs increase and temperatures with cooling customers' ESG products and proactively

affect employee Medium Medium-to- expenditures such devices.inclined to choose standards may meet customers' ESG products from

commuting safety Term High as compensation Transition requirements for suppliers for employee safety Implement extreme Risks Market Risk companies with

Medium High result in order losses

thereby impacting Term or reduced premium and product supply.normal production incidents may also

weather alerts and offer strong ESG records

training on health safety and are raising capacity affecting Address climate change as a

operations. increase and climate change requirements for operating revenue key topic and communicate

awareness to enhance risk suppliers. and market share with stakeholders through

response capabilities. sustainability reports

stakeholder surveys etc.Rely on existing circular

pickup routes and real- Failure to identify Improve equipment

time monitoring systems and adopt green efficiency enhance product

to actively track weather low-carbon manufacturing efficiency

technologies in and continuously build

Extreme weather Logistics and forecasts for supplier locations and areas along a timely manner Reduced product recognized environmental may affect supply transportation costs

Physical chain stability and Medium and procurement routes; develop emergency Technology

may result Medium competitiveness and energy management

Risk Acute Risk disrupt normal Term Medium costs etc. increase plans for business Risk

in outdated

product carbon Term

High order losses and systems both domestically

disruptions due to weather revenue decline and internationally.production and and sales revenue performance may happen

delivery. decreases events like typhoons Promote green low-carbon and use AI algorithms to potentially

predict transportation risks reducing product

design and application in

products to enhance green

dynamically adjust pickup value or losing R&D capabilities.routes and reduce risks of orders.sudden supply interruptions.Note: Short term refers to within 1 year medium term to 1-5 years and long term to 5 years or more.

41 422025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Embracing Green Practices for Shared Value Creation

Climate Change Opportunities Identification List Case Digital Empowerment for Climate Risk and Opportunity Management Driving

Green Transformation of Energy Conservation and Emission Reduction

The Company actively promotes green and low-carbon transformation by introducing Siemens Smart ECC Intelligent

Energy-Carbon Management Platform. It integrates multi-source energy consumption data through an industrial

Opportunity Opportunity Opportunity Financial IoT architecture realizes load forecasting and energy efficiency diagnosis based on AI and big data and improves

Type Description Timeframe Likelihood Impact Opportunity Response equipment energy efficiency by integrating PLC servo and frequency conversion systems. With energy Sankey diagram

visualization and microservice architecture the platform realizes real-time monitoring early warning and optimal

The market Seize opportunities in clean regulation and constructs a closed-loop energy-carbon management system achieving annual power savings of over

demand technologies launch green 10 million kWh and CO2 emission reduction of over 10000 tons. In 2025 the Company won the Siemens "Operational

for energy products such as the 5th- Pioneer Excellence Award" for this practice which provides a replicable technical path and management paradigm for

conservation New low-carbon generation mono crystal puller based on N-type products provide the green manufacturing upgrade of the industry.Market and emission Medium products bring

Opportunity reduction is Term High new revenue customers with automated +

rising leading growth points digital + AI big data solutions

to an increase in promote the intelligent and green

demand for low- development of global photovoltaic

carbon products. manufacturing and meet market requirements.Reduce

fossil energy

consumption Expand the use of renewable

Energy increase the use Medium Use of green energy such as PV introduce smart

Management and proportion Term High power helps energy management systems to of clean energy reduce costs assist in the Company's energy ?3rd Siemens China Zero Carbon Pioneer Award Ceremony ?Trophy of the 3rd Siemens China Zero Carbon Pioneer Award

and continuously usage structure transformation.optimize the

energy structure. Indicators and Targets

Deploy plans Stronger risk As a leading high-end equipment manufacturer in technology and scale in the global photovoltaic industry the

in advance to management Plan emergency response measures Company actively responds to and fully implements the national "carbon peaking and carbon neutrality)" goals and

address climate and control for natural disasters and climate Climate capability helps change and conduct capacity- takes the initiative to assume the responsibility of green development. In accordance with mainstream domestic and

Change change mitigating Medium-to- Medium lower insurance building activities to increase international greenhouse gas (GHG) accounting standards the Company systematically conducts GHG inventories. A

Adaptation and avoiding Long Termfinancial losses premium rates business operation stability and

clear goal has been set with 2022 as the base year aiming to achieve carbon peak by 2030 and carbon neutrality by

and enhance earn customer recognition and 2055. These targets systematically guide future emission reduction pathways and action plans.caused by climate

risks. investor long-term partnerships.confidence Greenhouse Gas Emissions

Note: Short term refers to within 1 year medium term to 1-5 years and long term to 5 years or more.Category Unit 2023 2024 2025

Total greenhouse gas emissions (Scope 1 + Scope 2) tCO2 276046 308561 339417

Impact Risk and Opportunity Management Including: Scope 1 tCO2 193232 215993 237592

Including: Scope 2 tCO2 82814 92568 101825

The Company fully integrates climate risk management into its ESG governance system. Through systematic Greenhouse Gas Emission Intensity tCO2/CNY 10000 Revenue 0.15 0.18 0.30

identification and assessment mechanisms it conducts double materiality analysis of climate-related risks and

opportunities and continuously optimizes emergency plans and adaptive measures to enhance response capacity Note:1. It contained the GHG emission in JSG's operation and production in 2023 2024 and 2025;

to acute risks such as extreme weather. Relying on digital management platforms the Company optimizes energy 2. Emissions are accounted for in accordance with the Notice on Doing Well the Work Related to the National Carbon Emission

and carbon emission management continuously improves operational efficiency and low-carbon competitiveness Trading Market in 2026 (HBQHH [2026] No. 32) Requirements of the Greenhouse Gas Emissions Accounting and Reporting—

and formulates targeted response plans covering operations and supply chains thereby better seizing policy and Part 24: Electronics Manufacturing Enterprise (GB/T 32151.24-2024) and Requirements of the Greenhouse Gas Emissions

demand opportunities. Accounting and Reporting—Part 29: Mechanical Equipment Manufacturing Enterprise (GB/T 32151.29-2024).

43 442025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Embracing Green Practices for Shared Value Creation

Resource Utilization 2025 Energy Management Objectives and Achievements

Achievement

JSG integrates efficient resource utilization into operational management priorities. Through systematic monitoring Energy Management Objectives Index 2023 2024 2025

of energy consumption and analysis of energy and water conservation potentials the Company continuously

promotes energy conservation and emission reduction measures. It strives to reduce environmental impacts on the Clean Energy Utilization Rate ≥ 60% ≥ 60% ≥ 60% ≥ 60%

atmosphere water and soil during operations constantly improves resource utilization efficiency and fulfills its

ecological and environmental protection responsibilities with concrete actions.Energy Management Objectives Index Achievement

Energy Management

Comprehensive energy consumption per unit Based on 2024 as the base year the figure shall Achieved

The Company strictly complies with the Energy Conservation Law of the People's Republic of China the Renewable product of mono crystal pullers be maintained at 0.3781 tce per unit in 2025

Energy Law of the People's Republic of China the Law of the People's Republic of China on Promoting Clean

Production and relevant local laws and regulations. It has established a sound management organizational structure Based on 2024 as the base year the figure shall

and formulated internal policies including the Energy and Resource Management Specification Energy Review Electricity consumption per unit product of be maintained at 0.2139 ten thousand kWh per Achieved

Control Procedure Control Procedure for Energy Objectives Targets and Management Implementation Plans mono crystal pullers unit in 2025

and Energy Operation Control Procedure which clarify the responsibilities processes and assessment standards

for energy management. The Company continuously improves the ISO 50001 energy management system and

strengthens system certification to standardize corporate energy management. Energy Consumption

Energy consumed by the Company includes diesel gasoline and purchased electricity among which electricity

is the primary energy consumption. To continuously reduce energy consumption and improve energy efficiency Category Unit 2023 2024 2025

the Company has set goals including energy saving to actively carry out various energy conservation initiatives. By

adopting clean production technologies resource recycling and other measures the Company reduces pollutant Diesel Consumption Liter 34710 25526 36050

emissions and energy consumption achieving a win-win situation between economic and environmental benefits

building a sustainable production system and laying a green foundation for the long-term development of the Gasoline Consumption Liter 15080 20625 24598

enterprise.Key Honors Electricity Consumption

Category Unit 2023 2024 2025

Purchased Electricity

Consumption kWh 484010108 541025999 577508995

Purchased Electricity kWh/CNY 10000

ISO 50001 Energy Management System Certification Consumption Intensity Revenue 269.15 307.81 508.48

Total Plant Area 10000 m2 128.88 142.03 175.34

Purchased Electricity

Consumption Intensity MWh/10000 m

23755.513809.243293.65

45 462025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Embracing Green Practices for Shared Value Creation

Case Launching AGV System to Boost Energy Saving and Efficiency of Silicon Carbide Substrate

Key Performance

Polishing Production Line

In 2025 5 subsidiaries including the Company's headquarters Qiushi Semiconductor Ningxia Xinjingsheng

In January 2025 to promote intelligent production and green low-carbon transformation the Company Ningxia JingHuan and Inner Mongolia JingHuan were awarded the title of "Green Factory". This further drives the

successfully launched the AGV (Automated Guided Vehicle) system on its silicon carbide substrate polishing transformation of the production model toward energy saving consumption reduction pollution reduction and

production line. As an intelligent logistics hub the system realizes fully automatic and precise material efficiency improvement and enhances resource utilization efficiency and the Company's core competitiveness.transfer between polishing processes. By replacing manual handling direct labor on the production line

has been reduced by 60% optimizing human To optimize the energy structure and promote energy conservation and emission reduction the Company has made full use of rooftops

resource allocation. Meanwhile through optimal carports and other spaces in various factories to build photovoltaic power generation systems and actively develop distributed clean

path scheduling and round-the-clock continuous power. At present the Company has completed rooftop photovoltaic power stations in parks in Zhejiang Inner Mongolia Ningxia and

operation the AGV system has increased other regions continuously increasing the proportion of clean energy use and overall energy efficiency. Based on it the Company

overall production efficiency by 30% improved continuously explores and applies more green technologies to seize opportunities for clean transformation.overall equipment effectiveness and effectively

reduced energy and resource consumption per Key Performance

unit output. This is an important measure for

the Company to drive energy conservation and In 2025 the Company invested CNY 15.34 million in rooftop distributed photovoltaic projects with a newly

consumption reduction through technological

innovation and practice green manufacturing added installed capacity of 6106 kWp and a total power generation of 17.9 million kWh. The cumulative

demonstrating the Company's commitment installed area of photovoltaic systems has exceeded 174000 square meters enabling the conservation of

to promoting intell igent and low-carbon

development in production and operation. 5868 tons of standard coal and a reduction of 10412 tons of carbon dioxide emissions.?AGV System

Case Promoting Rooftop Distributed Photovoltaic Projects to Increase Clean Energy Use

Case Advocating Low-carbon Travel to Protect the Environment The Company actively promotes the application of clean energy and accelerates the construction of

photovoltaic projects laying a solid foundation for building a green manufacturing system and transforming

the energy structure. Ningxia JingHuan Park has newly completed a rooftop distributed photovoltaic power

In September 2025 in response to the national call for low-carbon travel the subsidiary Ningxia Xinjingsheng generation project. The project uses factory roof space and adopts high-efficiency photovoltaic modules and

installed electric vehicle charging stations in the factory area to encourage employees to prioritize low-carbon an intelligent monitoring system thereby realizing a green energy supply mode of "full self-consumption".transportation. Since the implementation of this measure the use of electric vehicles among employees has Power generation efficiency is optimized through AI algorithms supported by a digital operation and

increased significantly and green travel has become a well-established practice within the Company. maintenance platform to improve management efficiency. This practice has effectively reduced electricity

costs in the park.?Electric Vehicle Charging ?Rooftop Photovoltaic Project of Ningxia JingHuan

47 482025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Embracing Green Practices for Shared Value Creation

In addition adhering to its original aspiration of environmental protection the Company integrates the concept

of green operation into the whole chain of corporate development through measures such as installing fresh air

systems waste sorting and paperless office. Meanwhile the Company carries out environmental protection training

to advocate employees to promote green ecological development.* Install fresh air * Conduct waste * Reduce printing * S tagger air * Install charging

systems in all sorting implement devices conditioning stations in the parks

areas to effectively the "three centralizing to one usage during

ventilate work reductions and device per floor summer and

areas and improve four separations" and promoting set temperature ? Public List of JingHuan Electronic Rated as Water-saving ?L ist of Jingrui Electronic Rated as Zhejiang Provincial Water-

the working method and double-sided controls Enterprise saving Enterprise

environment periodically carry printing

out environmental

inspections Water Use

Green Energy-Saving and Environmental Protection Measures of the Company Category Unit 2023 2024 2025

Purchased Municipal m3 3028793 3096422 3471716

Case Carrying out Energy Conservation Publicity Activities to Enhance Green Awareness of all Employees Water

Water Resource

Consumption Intensity t/CNY 10000 Revenue 1.68 1.76 3.06

In October 2025 Ningxia JingHuan organized a

special energy conservation publicity campaign

calling on all employees to explore potential for

energy saving in production and office work. To Key Performance

ensure effectiveness the Company established

an incentive mechanism for rational energy- In 2025 the recycled water volume of the Company reached 77221338 m3.saving proposals providing cash rewards to

employees who put forward effective consumption

reduction measures. Through the interactive

mode of full participation the Company not only Case 3

identified a number of practical technological JSG Built Reclaimed Water Station Saving over 360000 m of Tap Water Annually

and administrative energy-saving plans but also

significantly enhanced employees' ecological and In response to the municipal call for water conservation

environmental awareness. ?Energy Conservation Publicity Materials easing regional water shortage and reducing corporate

water costs the Company invested CNY 1.5 million to build

a reclaimed water station with an annual water output of

Water Resource Management 380000 m3. After commissioning the proportion of tap

water consumption dropped to about 13% of total water

In the face of global water resource pressures enhancing the efficiency of water resource management has become a key use. Based on an annual total water consumption of 420000

33

to address the challenge. Focusing on reducing water waste the Company strictly complies with the Water Law of the m about 360000 m of tap water can be saved each year

People's Republic of China and other laws and regulations clarifies specifications for the whole process of water resource achieving remarkable water-saving effects. This measure has

management in internal management procedures and continuously promotes water recycling and conservation by not only effectively improved the level of water recycling

introducing and upgrading water treatment equipment exploring water-saving processes improving equipment efficiency but also made positive contributions to the sustainable

and others. Water for production operation and daily use mainly comes from municipal tap water and treated recycled/ operation of the enterprise and regional water conservation

reclaimed water. In 2025 subsidiaries Jingrui Electronic and JingHuan Electronic were awarded the title of "Water-Saving and emission reduction. ?Reclaimed Water Station

Enterprise". It demonstrates the Company's tangible achievements in improving water resource utilization efficiency.

49 502025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Embracing Green Practices for Shared Value Creation

Management of "Three Wastes" The Company implements systematic management of waste gas generated in operations. Through technological transformation and equipment upgrading acidic organic waste gas and particulate matter produced in the production process

are effectively collected and treated. For vehicle exhaust in daily operations the Company actively advocates green travel to

promote emission reduction. Through the above measures the Company ensures all waste gas discharge meets national and

JSG continues to increase investment and management in environmental protection committed to reducing emissions at local environmental protection standards while earnestly fulfilling environmental protection responsibilities.the source. Through measures such as promoting eco-friendly packaging and practicing circular economy the Company

systematically reduces the environmental impact of operations and actively fulfills its corporate environmental responsibilities.

2025 Waste Gas Emission and Management

Pollutant Treatment

The Company strictly complies with laws and regulations on pollutant discharge and local conditions of all subsidiaries. Waste Gas Category Volume (Total Approved) Concentration

A dedicated department is established for relevant treatment and systems including the Code of Waste Gas Management

and Code of Waste Water Management are formulated to clarify the responsibilities of all departments and positions in Nitrogen oxides ≤ 9.038t/a ≤ 300mg/m3

environmental protection. These measures systematically promote the whole-process management of pollutants such as

waste water and waste gas. Meanwhile the Company entrusts qualified third-party institutions to conduct regular testing Sulfur dioxide ≤ 1.998t/a ≤ 200mg/m3

on waste gas waste water and noise points to ensure all monitoring results are qualified and meet various discharge

standards guaranteeing the compliance of environmental management. Particulate matter ≤ 1.33t/a ≤ 30mg/m3

2025 Noise Waste Water and Waste Gas Management Objectives and Achievements Dust ≤ 1.311t/a ≤ 5.0mg/m3

Achievement

Management Objective Index Fluoride ≤ 0.053t/a ≤ 0.3mg/m3

202320242025

Compliance rate of noise waste water and Hydrogen Chloride ≤ 0.603t/a ≤ 3.2mg/m3

waste gas discharge 100% 100% 100% 100%

Non-Methane Hydrocarbons ≤ 1.142t/a ≤ 5.0mg/m3

The Company's wastewater primarily consists of domestic and industrial waste water. Domestic waste water originates from

office and residential areas while industrial waste water mainly comes from the use of purified water and the preparation of

concentrated water. Through the installation of waste water reuse systems and equipment upgrading the Company actively

promotes waste water collection and treatment to further reduce waste water discharge and environmental pollution. Case Qiushi Park Completed In-depth Cleaning of Waste Gas Towers Continuously Improving

Environmental Treatment Efficiency

Key Performance

To ensure the stable operation of the waste gas

In 2025 the total waste water discharge of the Company was 1069818 m3 and the total waste water treatment system and improve environmental go v e r n a n ce Q i u s h i Pa r k e n t r u ste d a

recycling volume was 406323 m3. professional third-party institution to conduct

comprehensive cleaning and maintenance

of waste gas towers on October 8 2025. The

Case Ningxia JingHuan Waste Water Station Effluent Reuse Project professional operation effectively improved

waste gas treatment efficiency and discharge

In September 2025 the effluent reuse project of Ningxia JingHuan waste compliance reliability significantly reduced

water station was officially put into operation. Based on two months of environmental r isks during operation

field investigation and water quality monitoring the project achieved and helped extend the service life of key

a resource reuse capacity of 20 cubic meters of effluent per hour. By equipment. Qiushi Park continues to prioritize

the end of the reporting period the cumulative reused water volume environmental responsibilities and maintains

reached 15008 m3 of which 7504 m3 was supplied to the power station professional faci l i ty maintenance and

directly saving nearly CNY 37000 in tap water costs. The project not only management. It is committed to safe green

effectively reduced tap water costs but also improved water recycling and sustainable production and operation

efficiency making tangible contributions to green operation and thereby making positive contributions to

environmental protection. ?In-depth Cleaning of Waste Gas Towers

?Effluent Reuse Project sustainable development.

51 522025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Embracing Green Practices for Shared Value Creation

Waste Management Case Conducting Emergency Response Drills for Hazardous Chemicals

The Company adheres to the principles of reduction recycling and harmlessness in waste management and implements

standardized whole-process management of waste. The Company entrusts qualified professional third parties to In May 2025 to prevent sudden environmental

conduct classified disposal and systematically carries out environmental monitoring and waste data statistics to ensure accidents and improve the rescue capabilities

traceability compliance and controllability in all links. By setting management objectives assigning responsibilities to of the emergency team the EHS Department

individuals and organizing special knowledge training the Company actively promotes the application of recycling bins organized emergency response drills for hazardous

and recyclable packaging to reduce resource waste in packaging and transportation so as to continuously improve the chemicals which involved the hazardous

refined waste management level and support the development of circular economy. chemicals user department quality inspection

d e pa r t m e n t a n d wa re h o u s e m a n a ge m e n t

department. In the drills 13 relevant participants

from the company completed on-site practical

2025 Waste Management Objectives and Achievements operations. This activity verified the operability of

the emergency response procedures and improved

Achievement the disposal capacity of the emergency team.Management Objective Index

2023 2024 2025 ?Emergency Response Drill for Hazardous Chemicals

Compliance rate of solid waste disposal 100% 100% 100% 100%

Key Honors Case Conducting Waste Management Knowledge Training to Enhance Awareness of Environmental

Protection Responsibility

To fully implement the concept of "Zero-waste City" construction subsidiary Ningxia To further strengthen the concept of sustainable development and environmental protection practice subsidiary

Xinjingsheng implemented source reduction resource utilization and harmless disposal of Ningxia Xinjingsheng carried out special environmental management training in October and November 2025.solid waste. In February 2025 it was successfully awarded as "One of Yinchuan's 6 Zero-Waste The training was for on-site managers with more than 10 participants in total. It systematically explained the

Enterprises" further promoting a resource-conserving and environment-friendly production generation classification management and resource utilization of the Company's waste and hazardous waste

mode and a green and low-carbon lifestyle. effectively improving the environmental protection knowledge and responsibility awareness of the trainees and

laying a solid foundation for the continuous promotion of green operation.Case An Independent Waste Acid Treatment System Built to Achieve Dual Improvement of

Environmental Benefits and Safe Operation

To prevent and control environmental risks of hazardous

waste from the source the Company completed a professional

evaluation and design through a third party in 2025 and built

an independent waste acid treatment process in compliance

with regulatory requirements. The process adopts alkali

neutralization to treat waste acid to the influent indicators

of the workshop which is then integrated into the plant's

wastewater system for unified treatment and discharged up

to standard. Since the system was put into operation a total

of 117.45 tons of waste acid has been safely disposed of in the

whole year. It not only effectively reduces environmental risks

in external transportation and disposal links but also realizes

resource intensification and operation optimization making

active contributions to regional environmental governance

and social sustainable development. ?Independent Waste Acid Treatment Process

?Waste Management Training Site

53 542025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Embracing Green Practices for Shared Value Creation

Circular Economy 2025 Circular Economy Objectives and Achievements

Achievement

JSG regards circular economy as an important path to sustainable and high-quality development. In line with policy Management Objective Index 2023 2024 2025

guidelines including the 14th Five-Year Plan for Circular Economy Development and following the 3R principles of

"Reduce Reuse and Recycle" the Company has built a systematic full-link and full-product-life-cycle circular system Total Recovery Rate of Recyclable Waste ≥ 80% 82% 81% 83%

covering design and material selection production and manufacturing reusable packaging as well as warehousing Recycling Rate of General Solid Waste ≥ 80% 86% 85% 84%

and logistics so as to boost the green transformation of the industrial chain and improve resource efficiency.Circular Economy Management System and Achievements of JSG Circular Economy Management System and Achievements of JSG

Standardized Unify R&D selection paths and scope through selection standards to ensure and

Design and control that materials selected in design have optimal performance quality and Packaging Material Recycle sleepers wooden cases rainproof cloth and other packaging; use eco-01 Selection economy Recycling friendly reusable and pollution-free materials for all incoming packaging

Innovative Initiate the "Electrical component selection library (cables + components)"

Conversion of Idle mechanism; incorporate sluggish materials into the standard system and integrate

Materials resources to realize material form conversion and natural consumption 03 Driving Lean Adopt standardized recyclable turnover boxes and pallets to form a lean logistics Supply Chain model of "milkrun" and "direct-to-workstation delivery"

Design and Make the selection library meet both R&D standardization and centralized procurement

Material R&D Collaborative standardization needs reduce the types of the types of materials by 82% and achieve

Selection Innovation consistent material usage across the Group and centralized supply chain management Full-process Apply intelligent packaging embedded with RFID QR codes or IoT sensors to

Digital and Visual realize refined management of packaging assets in-transit goods and supply chain

Management processes

Recyclable

Packaging

Traceability Record data in real time through MES/QMS systems; improve the timeliness of early

System Support warning mechanisms and response speed to abnormal data to handle problems promptly and locate information accurately Environmental Based on estimation and research use recyclable packaging on a large scale to

and Social Value reduce greenhouse gas emissions and water consumption by 35%-70% and cut down disposable packaging waste and raw material consumption

Unitized Suitable for high-mix low-volume production ensuring standardization of

02 Production Mode assembly actions standardization of quality control and traceability of assembly and quality

04 A dopt the "Milkrun" model; determine pickup routes based on supplier zones and Efficiency and Connect processes closely to realize "one-piece flow" production and shorten delivery frequency set milkrun frequency and time according to pull demand Response Speed delivery cycles by more than 70% integrate fragmented transportation from multiple suppliers improve vehicle

loading rate and reduce empty mileage and total trips

Greatly improve vehicle loading rates and handling efficiency significantly

Production reducing freight costs and enhancing internal loading/unloading efficiency

and Inventory and Accelerate material turnover to directly reduce WIP (work in process) inventory by

Milkrun Model

Capital 80%-90% Reduce the logistics management burden of individual suppliers and achieve Manufacturing scale and synergy effects across the supply chain

Warehousing Use recyclable green packaging for loading to complete full-vehicle loading

and Logistics

Quality and and unloading within an estimated 15 minutes improve handling efficiency by

Continuous Empower teams with higher autonomy and responsibility for product quality to over 50% increase vehicle loading rate by over 30% and reduce solid waste

Improvement significantly reduce defect rates and waste from non-conforming products output by 83%

55 562025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Driving Development through Innovation and Sustainability

03

Driving Development through

Innovation and Sustainability

JSG takes technological R&D and quality leadership as its core strategies

and continuously promotes the high-quality development of the

photovoltaic and semiconductor industries through technological

innovation and refined management. The Company constantly improves

product quality and reliability perfects the customer service system

collaborates with upstream and downstream industrial chains to enhance

development capabilities and actively contributes to the long-term

sustainable development of the industry.Green Industry Synergy

R&D and Innovation

Product Quality and Safety

Customer Service

Sustainable Supply Chain

57 582025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Driving Development through Innovation and Sustainability

Green Industry Synergy Key Performance

During the reporting period revenue from the Company's clean technology-related business accounted for

JSG leverages its dual-engine development strategy of "advanced materials + advanced equipment" to proactively

capture opportunities in clean technology deepen the coordinated deployment of its "equipment + materials" layout over 50% of total revenue.increase R&D investment to strengthen independent and controllable capabilities across the entire industry chain

and promote digital and intelligent interconnectivity among equipment. Supported by an integrated intelligent factory

solution of "automation + digitalization + AI-driven big data" the Company adheres to a clean-energy-driven low-carbon PV Equipment: Leading in Both Technology and Scale

model and is committed to building a green and environmentally sustainable industrial ecosystem.JSG's core business lies upstream in the green energy industry chain. Leveraging its capability to supply core PV

Since upgrading clean technology opportunities to its core ESG development strategy in 2024 the Company has continuously equipment across the entire industry chain - from silicon wafers and cells to modules - and its synergistic advantages

increased R&D investment in the strategic direction of "green intelligent low-carbon and manufacturing" clean technology in automation and consumables the Company continues to drive industry cost reduction efficiency enhancement

opportunities and collaborated with partners to accelerate the transition to clean energy and low-carbon green development. and technological upgrades through innovative products. JSG leads and deepens collaborations across the upstream

and downstream industrial chains promoting the co-construction of a green industrial ecosystem.Investment Targets for Clean Technology Opportunities

Poly-silicon Monocrystalline Silicon Ingot Silicon Wafer Cell Module

Goals Goal Progress

R&D investment in clean technology is no less than CNY 80 million in

The 2025 goal has been achieved.

2025 with a target of reaching CNY 100 million in 2026.

In 2025 the Company's new annual investment in photovoltaic

projects amounted to no less than CNY 15 million. By the end of 2027 The 2025 goal has been achieved with a new

the cumulative new investment in photovoltaic projects is expected photovoltaic investment of CNY 15.34 million and

to reach no less than CNY 40 million with the annual newly installed a newly expanded capacity of 6106 kWp.rooftop photovoltaic capacity increasing by no less than 4000 kWp.Strategic Direction for Clean Technology Opportunity Mono Crystal Cropper Squarer Grinder Slicer Pre&Sep&Final Cleaning Silicon Wafer Sorting and Puller Integrated Machine Boxing Equipment

Strategic Direction Actions

I ncrease investment in green product R&D and focus on the development of "advanced materials

Green and advanced equipment" in green energy fields such as PV power generation and LED lighting Adhere to sustainable development as the focus of the Company's development

Build a green manufacturing system to contribute to the national new energy green industry

PECVD(POLY) Diffusion (Anneal) ALD

Provide intelligent factory solutions for the semiconductor industry PV industry and compound

substrate industry to meet customers' digital and intelligent production mode needs

Intelligence Build an industrial digital brain and create an intelligent manufacturing mode to achieve lean

intelligent manufacturing and management with highly intelligent advanced manufacturing and

efficient organizational management

Module Equipment

S cientifically eliminate and replace old equipment and upgrade processes to reduce energy Dry Cleaning EPD

consumption and emissions during the operation process

Low-carbon Give priority to clean energy sources such as photovoltaic power generation promote the transformation of the energy structure and gradually get rid of the dependence on fossil energy Silicon Wafer Segment: Technological Leadership Driving Industry Transformation

Plan the optimal path use recyclable packaging materials and utensils and work together with

suppliers to achieve low-carbon and energy-saving goals As a global leader in the supply of full-automatic monocrystalline silicon growth furnaces JSG offers products such

as full-automatic crystal growth equipment crystal processing equipment wafer processing equipment and wafer

Build a globally leading green intelligent high-tech manufacturing enterprise integrating intelligent sorting and testing equipment. These products enhance efficiency and yield through highly integrated automation

Manufacturing equipment and new materials for semiconductors photovoltaics etc. and provide an ecological establishing a comprehensive core equipment system for the entire silicon wafer manufacturing process and

environment for low-carbon energy-saving and sustainable development continuously leading technological iterations in the industry.

59 602025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Driving Development through Innovation and Sustainability

Introduction to Silicon Wafer Products and Equipment Provider of Comprehensive Green and Intelligent Factory Solutions

Crystal Growth Crystal Processing Wafer Processing and JSG leverages cloud computing and big data applications to achieve automation and intelligence across its equipment Inspection chain. By focusing on integrating the industrial digital brain of future factories with intelligent manufacturing bases

JSG offers clients comprehensive intelligent factory solutions based on differentiated competitive strategies. JSG also

Full-automatic mono crystal Ring wire cropper circular Pre&Sep&Final cleaning continues to lead industry innovation by introducing highly intelligent products such as the ring cutter Pre&Sep&Final

puller diamond wire squarer rounding integrated machine cleaning integrated machine and silicon wafer sorting and boxing equipment. These innovations through highly

and grinding integrated machine wafer sorting and testing integrated automation enhance efficiency and yield reduce costs and support clients' green efficient intelligent and

diamond wire saw etc. equipment etc. sustainable development. This in turn drives the global PV manufacturing industry's shift towards intelligence and

sustainability contributing to the realization of "carbon peaking and carbon neutrality" goals.Key R&D Achievements JSG's Intelligent Solution

Fully-automatic single crystal silicon growth furnace: Recognized by the Ministry of Industry and Information Automated and Informational Factory Digital Factory Intelligent Factory

Technology as a Third Batch of Manufacturing Single Champion Product;

Fully-automatic mono-crystal puller series products: Recognized as a National Key New Product by Four Equipment Interconnectivity Achieves Data Visualization and Process Automated Behavior and Decision Making

Ministries and Commissions. Data Uploading Transparency Based on Predictive Capabilities

Fully-automatic PV mono crystal puller: Internationally leading in both technology and scale.Cell Segment: Differentiated Innovation Driving Efficiency Breakthroughs

The Company has focused on advancing high-efficiency battery technologies and successfully developed a series of core

equipment including PECVD (Plasma-Enhanced Chemical Vapor Deposition) diffusion furnaces annealing systems single-

chamber multi-boat ALD (Atomic Layer Deposition) equipment and edge passivation devices (EPD) for cell cutting. The

Company has achieved differentiated competitive edge in performance through innovative design and process optimization.Description Diagnosis Forecast

Module Segment

From the module perspective the Company has developed a production line for module equipment that includes multiple

processes such as layout machines automatic frame loading machines and glue dispensing testers. Its innovative de-silvering Case Strategic Partnership with Siemens to Jointly Promote Green and Low-carbon Transformation

module equipment significantly reduces silver consumption in the module production process greatly lowering production costs. in the Industry

Consumables Segment: Leading in Both Technology and Scale In March 2025 JSG officially signed a strategic

The continuous development of the PV industry has rapidly increased the demand for consumables. JSG's quartz cooperation agreement with Siemens (China) Co.crucible products have achieved outstanding results leading in both technology and scale. JSG has innovatively Ltd. The two parties are expected to engage in in-

developed high-quality quartz crucibles by optimizing crucible dimensions purity and crystal pulling time to reduce depth cooperation around four core directions:

consumable costs in silicon wafer production. JSG also leads tungsten diamond wire technology breaking through "automation digitalization green and low-carbon and

carbon steel wire diameter limits to meet the cutting needs of large-size and thin silicon wafers. sustainable development" jointly exploring innovative

solutions such as intelligent factory construction

digital technology applications and energy efficiency

optimization. This cooperation aims to fully leverage

each party's technological and resource advantages

in automation digital ization and sustainable

development jointly promoting industrial intelligent

upgrading and green and low-carbon transformation

and injecting new momentum into the semiconductor

?Agreement Signing Ceremony and high-end manufacturing industries.Quartz crucibles and quartz products Carbon steel and tungsten diamond wire

61 622025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Driving Development through Innovation and Sustainability

R&D and Innovation Key Honors

JSG places R&D innovation at the core of its high-quality development synergizing technological breakthroughs

with in-depth understanding into customer needs continuously increases R&D investment strengthens innovation In 2025 JSG obtained ISO 56005 Appraisal Certificate

capabilities and technological accumulation and enhances core competitiveness to deliver sustained value creation for Innovation & Intellectual Property Management

for customers. Capability (Level 3). As the first international

standard on intellectual property management

Governance led by China this certificate signifies that the

Company has reached an internationally advanced

level in innovation strategy planning full life-cycle

JSG has established a comprehensive R&D system covering three major directions: strategic R&D product and intellectual property management and commercial

technology R&D and process and technical support. Closely aligned with national industrial policies and frontier value transformation.trends in the PV and semiconductor industries the Company systematically analyzes customer needs market ISO 56005 Appraisal Certificate for Innovation &

dynamics and the competitive landscape to define R&D objectives and implementation pathways. By building Intellectual Property Management Capability (Level 3)

platforms for core technology development and product industrialization the Company continuously delivers

innovative outcomes that meet market demand and lead technological advancement consolidating its industry-

leading position and supporting industrial upgrading and high-quality development.Strategy

JSG continually optimizes its R&D organizational structure operating national-level postdoctoral research stations

national enterprise technology centers Zhejiang provincial key laboratories and other research platforms to

enhance the construction of its research platform system. Innovation-Driven Risk Identification List

Scientific Research Platform Construction System

Risk Possibility

Category Risk Description

Risk

Timeframe of Risk

Potential Impact on Key Response

Occurrence Company Finance Measures

10 Equipment 3 Advanced 4 Professional R&D 1 Technical Application 1 Japanese R&D

Research Institutes Laboratories Departments Department Center When tackling cutting- Strengthen full-process

Significant upfront R&D

edge semiconductor R&D management

investment may fail to

and PV technologies the establish core

Technology translate into expected

In 2025 the Company restructured its R&D center into ten equipment research institutes three Company may face technical technology and product R&D and Mass Medium Medium-to- returns dragging down

advanced laboratories four professional R&D departments one technology application department challenges in scaling up from industrialization Production Term High overall profitability and

and one Japan R&D center. laboratory breakthroughs platforms and Risks affecting the Company's

to mass production such as progressively enhance

ability to capture market

unsatisfactory R&D progress process maturity through

share

or unstable processes pilot-line validation

In 2025 the Company established a new electrical laboratory and incorporated SuperSiC's R&D

Department into the management system of the Company's R&D center. Closely track industrial

Rapid technological iteration

policies and market

and intense industry Pricing pressure and

demand to align R&D

competition may cause the declining gross margins;

In 2025 the Company obtained approval for Ningxia JingHuan Autonomous Region-level Enterprise Market direction with market Company's newly developed failure to keep pace with

Technology Center and Hangzhou Jingsheng Photonics Cell Technology High-tech Research and Competition trends; leverage the technologies or products Ongoing High new product demand

Development Center. and Return integrated advantages of to lag in commercialization may result in order losses

Risks "equipment + materials"

if they fail to meet market and stagnant revenue

to control costs and

demand in a timely manner growth

actively expand diversified

In 2025 a new subsidiary Inner Mongolia JingHuan Electronic Materials Co. Ltd. was recognized as a or involve excessive costs application scenarios

national-level "Little Giant" enterprise. Another new subsidiary Jingsheng Chuangxin was recognized

as a National High-tech Enterprise.Note: "Short term" refers to within 1 year "medium term" refers to 1-5 years and "long-term" refers to 5 years or more.

63 642025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Driving Development through Innovation and Sustainability

Large-scale R&D investment Heavy capital expenditure Optimize capital allocation Risk Identification Risk Assessment Communication and Risk Management

and global capacity may affect short-term to ensure the sustainability Survey

expansion require sustained cash flow and profitability; of R&D investment; expand

Financial

and substantial capital slower-than-expected diversified financing

Resource and Medium-to- Regularly and For identified risks Establish a dynamic Based on evaluation

expenditure. Fluctuations in Medium downstream demand channels and strengthen

Investment Long Term systematically identify use a combination monitoring system and monitoring

market demand or product growth could prolong the inventory and accounts

Risks potential risks in of quantitative and to track key indices results optimize

prices may create cash investment recovery cycle receivable management technology market qualitative methods through information R&D management

flow pressure or extend the and increase financial to improve operating cash regulations and other to scientifically assess tools promptly identify processes and

investment payback period burden flow aspects throughout their likelihood of risk signals and flexibly resource allocation

the entire R&D occurrence and adjust R&D strategies. formulate and

Innovation-Driven Opportunity Identification List process. potential impact and implement targeted

provide a basis for response strategies to

decision-making. achieve full-process

Opportunity

Area Opportunity Description

Opportunity Potential Impact on Response management of risks

Timeframe Likelihood Company Finance Measures and opportunities.Market demand for third- Increase R&D

Breakthroughs generation compound Create new revenue investment Company R&D Risk Management Process

in third- semiconductor materials growth drivers accelerate

generation is growing rapidly and Medium and enhance technology

semiconductor the Company has made Term High product value- industrialization Intellectual Property Management

material significant progress in added and market and improve

technologies substrate material R&D competitiveness industry chain

and capacity deployment deployment To mitigate R&D and intellectual property risks the Company has established an institutional framework centered on the

Measures for Intellectual Property Management and the Patent Management Procedure systematically standardizing full

Urgent demand life-cycle intellectual property management and safeguarding innovation outcomes through institutional mechanisms.High-end for autonomy and Deepen customer Additionally the Company has introduced an application incentive mechanism through the Measures for the Management

semiconductor controllability across the Increase domestic collaboration of Patent Award Selection . Upholding principles of objectivity and fairness the Company recognizes innovative

equipment semiconductor industrial Short-to- market share continuously achievements across four dimensions—technological advancement market competitiveness patent quality and

import chain presents market Long Term Highopportunities for the (Ongoing) and strengthen

optimize product

performance and patent protection—thereby effectively stimulating the initiative and creativity of R&D personnel continuously fostering a substitution Company's accumulated profitability improve service corporate culture that values innovation and providing intrinsic momentum for high-quality development.opportunity technologies in systems

semiconductor equipment

Rising requirements for Promote mature

energy conservation Reduce operating technical Patent Patent Patent Patent Early Patent Green and emissions reduction costs improve solutions Layout Retrieval Application Warning Activitiesmanufacturing

technology create broad application

Short-to- Medium-to- energy efficiency strengthen

application and prospects for the

Long Term high and gain sustainable intelligent

promotion Company's technological

(Ongoing) development management and

innovation in green advantages optimize resource IP Protection Management Process

manufacturing allocation

Note: "Short term" refers to within 1 year "medium term" refers to 1-5 years and "long-term" refers to 5 years or more.University-Industry Cooperation

Impact Risk and Opportunity Management JSG regards talent cultivation as a key driver of industry advancement and actively builds collaborative education

mechanisms between enterprises and academic institutions. Leveraging platforms such as the postdoctoral research

JSG deeply integrates ESG philosophies into its R&D innovation system establishing a full-process closed-loop risk station the Company deeply integrates academic resources from universities with industrial practice jointly

management mechanism covering "identification-assessment-monitoring-management" to systematically control advancing talent development and technological breakthroughs. This model not only supports the Company's

uncertainties in R&D activities ensure the robustness and sustainability of technological innovation and consolidate technological upgrading and optimization of its talent echelon but also continuously delivers highly qualified

the Company's market competitive advantages. professionals to the industry empowering the high-quality development of the entire industrial chain.

65 662025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Driving Development through Innovation and Sustainability

JSG's University-Industry Cooperation Projects as of the Reporting Period Level Standard Name Standard No

Cooperative Academy Cooperative Project National Fine Ceramics—Determination of Compaction Properties of Powders GB/T 46588-2025

Established "Innovation Research Center of Mechanical and Electrical National Fine Ceramics—Measurement of Viscosity of Ceramic Slurry—Rotational

Equipment" Viscometer Method

GB/T 46586-2025

National Test Method for Fracture Toughness of Fine Ceramics at Room GB/T 23806-2025

College of Mechanical Engineering Carried out the "Joint Training Program of Full-time Professional Degree Temperature—Single Edge Precracked Beam (SEPB) Method

Zhejiang University Master's Degree" Industrial Dressing Wheel for Wafers Precision Grinding Disc SJ/T 11980-2025

Completed the scientific research project of "Development of 12-inch

Czochralski Hard-axis Mono Crystal Silicon Growth Puller" Industrial Method for Determination of Particle Size of Quartz Sand JC/T 2909-2025

Institute of Crystal Materials

Shandong University Jointly built a "Crystal Material Equipment Research Center" Ethics of Science and Technology

Signed a strategic cooperation framework agreement to jointly establish JSG strictly adheres to principles of scientific and technological ethics in its R&D and business operations upholding College of Integrated Circuits the "Advanced Integrated Circuit Equipment and Process Joint R&D Center" independent innovation and intellectual property as foundational pillars. It explicitly refrains from developing or Zhejiang University; Zhejiang ICsprout and the "Integrated Circuit Talent Training and Technological Innovation applying technologies that may pose threats to the natural environment human health public safety or social Semiconductor Co. Ltd. University-Industry Collaboration Center" ethics and is committed to advancing social progress through responsible technological innovation. Looking ahead

the Company will continue to strengthen governance on scientific and technological ethics ensuring that every

technological breakthrough aligns with ethical standards and contributes positive value to the healthy development

of industry and society.Standard Setting

Building on its technological accumulation and industrial practice in the PV and semiconductor sectors JSG actively Indicators and Targets

participates in the formulation of national industry and group standards as well as in related research initiatives.Through close collaboration with government authorities industry associations and research institutions the JSG sets annual quantitative management indices for performance in scientific and technological innovation and

Company plays a demonstrative role in the industry promotes the standardization of manufacturing processes and R&D and monitors progress toward these goals through regular evaluations and dynamic analysis.overall technological advancement across the industrial chain leads the regulated development of the industry

through substantive participation and contributes to the improvement of the industrial innovation ecosystem. As of

December 31 2025 the Company has newly led or participated in the formulation of 9 national industry and group During the reporting period the Company's innovation and R&D goals and their achievement

standards bringing the cumulative total to 32. status are shown in the following table:

Goals Achievement

New Standards of JSG in 2025

R&D investment accounting for more than 6% of

operating revenue Achieved

Level Standard Name Standard No New Patents Exceeding 200 Achieved

National Test Method for Micropipe Density of Monocrystalline Silicon Carbide GB/T 30868-2025 The Company's innovation and R&D-related indices over the past three years are shown in the

following table:

National Test Method for Measuring Diameter of Semiconductor Wafer GB/T 14140-2025

National Test Method for Thickness and Flatness of Monocrystalline Silicon

Index Unit 2023 2024 2025

Carbide Wafers GB/T 32278-2025 R&D Investment CNY 10000 114540 111919 95498

Fine Ceramics Interface—Test Method for Tensile and Shear Fatigue

National Properties at Room Temperature Under Constant Amplitude—Crossed GB/T 46584-2025 Proportion of R&D Investment to

Method Operating Revenue

%6.376.378.41

67 682025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Driving Development through Innovation and Sustainability

Index Unit 2023 2024 2025 Case Launching A Fully Self-Developed Cost-Efficient OHT (Overhead Hoist Transport)

System Facilitating the Intelligent Upgrade of Industrial Logistics

Number of R&D Personnel Person 1678 1588 1468

Proportion of R&D Personnel % 22.39 25.99 25.55 In May 2025 the subsidiary ZVISION Photoelectric launched a fully self-developed cost-efficient OHT

system providing flexible and efficient aerial logistics solutions for industries such as semiconductors and

Total Number of Valid Patents Item 914 1069 1274 panels. The system features high load capacity modular design rapid assembly and flexible scalability

Including: Invention Patents Item 172 256 364 ensuring hardware and software autonomy and controllability. Its overall cost is only 25% of that of high-

end magnetic levitation systems. The Company has upgraded its silicon carbide production lines with this

Annual Newly Granted Patents Item 345 323 237 system demonstrating a key practice of reducing the cost of industrial upgrading through independent

innovation and promoting the broader adoption of high-end manufacturing.Including: Newly Granted Invention

Patents Item 92 105 107

Distributed Patent Bonuses CNY 10000 137 204 192

Outstanding Scientific Research Achievements

As a leading domestic high-tech enterprise in "advanced materials and advanced equipment" JSG adheres

to technology-driven sustainable development. Leveraging its profound technical expertise in the PV and

semiconductor fields the Company continuously invests in R&D resources to tackle key technical challenges drive

industry progress and provide solid support for the Company's high-quality development and industrial upgrading.Case Achieving Breakthrough in 12-inch Silicon Carbide Crystal Growth Technology Supporting

Greater Autonomy and Controllability Across the Industrial Chain

In May 2025 the subsidiary Jingrui Electronic realized a technological breakthrough in the growth

of 12-inch conductive silicon carbide (SiC) monocrystalline with the successful production of the

first 12-inch SiC crystal. The crystal reached a diameter of 309mm and exhibited sound quality

marking JSG's achievement of autonomous and controllable full-size crystal growth technology

ranging from 6 to 12 inches in the SiC field and providing strong technical support for the

independent development of China's SiC industrial chain.?First 12-inch SiC crystal ?Self-developed cost-efficient OHT system

69 702025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Driving Development through Innovation and Sustainability

Case Launching A Full-Process Solution for Square Silicon Wafers Leading the Transformation

of Advanced Packaging Technology

Quality Strategy Quality Policy

In November 2025 the Company officially launched a full-process solution for square silicon wafers The Company safeguards the dual Guided by quality costs

providing a complete suite of independently developed equipment covering crystal growth cropping drivers of demand and innovation and centered on customer

squaring grinding slicing polishing and cleaning. Through full-chain technological autonomy and through the reputation of its satisfaction JSG strives for

controllability the solution represents products and services using quality excellence with zero-defect

a shift from single-point breakthroughs as the foundation to establish an management aiming to build

to system-level innovation. It offers internationally leading position in a reputable product line and

a "Chinese sol ut ion" to address the autonomous semiconductor achieve outstanding commercial

the limitations of traditional round equipment chain. reputation.wafers in terms of area utilization

and packaging efficiency for large-

s i z e h i g h - i n t e g ra t i o n A I c h i p s

thereby boosting advanced packaging Key Honors

capacity and industrial technology

iteration. This initiative demonstrates

JSG's commitment to advancing the

semiconductor industrial chain toward

higher-level development through

independent innovation.?JSG Launches its Full-Process Solution for Square Silicon Wafers

JSG has obtained the ISO 9001 Quality

Management System Certification

Product Quality and Safety

JSG consistently upholds a "quality first" management philosophy and has established a comprehensive quality

management system. By integrating intelligent and digitalized methods to collect full-process data and relying on

systematic risk control mechanisms the Company promotes lean operation of quality management and strives to

achieve zero defects in products and service processes.Governance

Strategy

JSG has formulated systems including the Planning and Control Procedure for Product and Service Realization

Quality Objective Management Procedure and Product Protection and Control Procedure thereby establishing and JSG systematically identifies potential impacts risks and opportunities that may arise throughout the full life

continuously optimizing the comprehensive quality management framework. International quality management cycle of its products taking into account its product characteristics and business scale and incorporates relevant

standards have been incorporated into the existing product quality management. In terms of management structure requirements into both quality management and operational management processes for unified implementation.the Company designates the Board of Directors as the highest authority responsible for quality management with Through the continuous improvement of quality control mechanisms and process management the Company

the Quality Department serving as the dedicated functional unit forming a standardized and efficient hierarchical reduces uncertainties related to product quality and safety while actively capturing market recognition and

management system. In addition supported by industry-leading testing equipment and a professional talent team customer collaboration opportunities brought by high-quality products thereby ensuring that product quality and

the Company provides solid technical support for product safety evaluation and quality optimization. safety standards remain aligned with the Company's business development.

71 722025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Driving Development through Innovation and Sustainability

Product Quality and Safety Risk Identification List A well-established

quality and safety Expand high-quality Advance quality

High-end management system customer resources system development

Possibility Customer Access helps meet the access

Medium-to- Medium and increase product and enhance

Risk Type Risk Description Risk of Risk Potential Impact on Response Measures Opportunity requirements of leading

Long Term penetration in high- customer audit and

Timeframe Company Finance customers and high- end markets product validation Occurrence

end projects capabilities

Upstream semiconductor Increased costs for

products involve complex rework repair or Improve the quality

technologies and replacement may management Stable and reliable Standardize

Product require high precision Short-to- disrupt delivery system and Brand and product quality and Enhance brand

quality and safety

Quality Risk and stability. Quality Medium Medium schedules and strengthen quality Reputation safety performance Medium-to- Medium premium capability

management as well

deviations in design Term customer satisfaction control and process Enhancement contribute to a strong Long Term and long-term as related disclosures

manufacturing or testing adversely affecting inspection for Opportunity market reputation and market value to continuously

may affect product periodic operating critical procedures brand image improve external

performance or reliability results recognition

As product models Continuously

increase and delivery Rising defect optimize production Note: "Short term" refers to within 1 year "medium term" refers to 1-5 years and "long-term" refers to 5 years or more.Quality scale expands Short-to- rates increased processes and

Consistency misalignment between manufacturing and quality standards

Risk quality control and

Medium Medium

Term quality management strengthen process capacity expansion costs and reduced management and Impact Risk and Opportunity Management

may challenge product operational efficiency drive continuous

consistency and stability improvement

To strengthen the proactive management of product quality risks and opportunities the Company applies the PDCA

The semiconductor Continuously management principle to structure a quality value framework enabling full life-cycle management of product processes. In industry continues to Additional rectification monitor changes in addition through initiatives including target decomposition process management and personnel development the Company Compliance raise requirements for and certification costs industry standards conducts quality planning monitoring and improvement across business execution through quality management practices and product quality safety Medium-to- Medium may restrict access and advance thereby promoting continuous enhancement in market share customer satisfaction and management optimization.Standard and related standards. Long Term

Risks Insufficient response to certain markets or product quality

may create compliance customer systems and safety-related certifications Product Lifecycle Quality Managementpressure

Note: "Short term" refers to within 1 year "medium term" refers to 1-5 years and "long-term" refers to 5 years or more. Pre-sale Pre-production In-production Post-production After-sales

Risk Management Pre-management Compliance Data Management Information Collection Monitoring Application

Product Quality and Safety Opportunity Identification List

Log of Problems Customer

(LOP) Process Standard Internal Audit Data Analysis

Optimization (VDA6.3/6.5) (Plato Trend Chart) Requirement Collection

Opportunity Opportunity Opportunity Potential Impact on Design Failure Mode and Effects Analysis

Type Description Timeframe Likelihood Company Finance Response Measures (DFMEA) SQC Pre-management Principle of "Three Inspections" and Management Equipment and Control "Three Don'ts" Improvement BenchmarkingCustomers in the Production Part Approval Process

semiconductor (PPAP)

industry continue to Improve customer Continuously Process Failure Mode Supplier/Customer Backend Data Management Technical Iterative High-quality

Product raise requirements Medium-to- Medium- recognition and

enhance product and Effects Analysis Associated Production Monitoring Standardization Optimization

Competitiveness for product reliability

quality control and (PFMEA)

and stability and Long Term to-High

order stability

support sustained strengthen quality Opportunity high-quality products revenue growth management Quality Planning and Internal Audit Product Monitoring and Data Analysis and Information Collection

help enhance market capabilities Control Procedure Management Procedure Measurement Control Procedure Evaluation Process and Application Risk and Opportunity Associated Production Quality Problem Handling Quality Cost Management Management Procedure

competitiveness Control Procedure Management Specification Process Process

……………………

7374

Market & Customer Demand Research2025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Driving Development through Innovation and Sustainability

Quality Management Training Customer Service

Case Focusing on Quality Improvement to Drive Process Optimization——Conducting Quality

Enhancement Series Training JSG consistently places customer experience at the core of its operations and regards customer satisfaction as a key

index for evaluating service effectiveness. To this end the Company has established a comprehensive institutional

From March to April 2025 the Company organized a series of specialized training programs centered on framework including the Customer Complaint Management Process Customer Satisfaction Management Process

"quality management and continuous improvement". The training covered multiple dimensions including Customer Training Management Process and Problem Solving and Customer Care Procedure covering all aspects of

process optimization lean methodologies risk customer service. Through systematic optimization of service processes the Company has not only improved service

control and the application of quality management quality but also strengthened customer trust and loyalty laying a solid foundation for sustainable development.tools aiming to systematically enhance the team's

professional competence and practical capabilities. Customer Communication and Feedback

The Company will continue to remain quality-oriented

and process-driven empowering teams through In managing customer feedback the Company adheres to principles of proactiveness precision and efficiency.normalized training and capability development Through quarterly satisfaction planning and monthly surveys targeting project customers and material sales

and driving comprehensive improvement in business customers the Company is able to promptly obtain customer opinions and suggestions. Regular customer

optimization and quality management levels. satisfaction weekly meetings enable department heads to conduct in-depth analysis of issues track processes and

?Quality Enhancement Series Training implement corrective measures forming a closed-loop management mechanism of early detection early feedback

and early resolution thereby ensuring that every customer need is addressed efficiently.Indicators and Targets 1 Question Presentation 2 Information Transfer 3 Cause Analysis

In terms of index and goal management the Company has established a quality management mechanism centered on When receiving complaint letters QA of the Quality Department Analyze the causes of quality

results orientation and continuous improvement. At the beginning of each year the Company defines annual product from customers or discovering sends the received questions to problems by means of various

quality management objectives focusing on key indices such as the quality cost rate and the rolling occurrence rate of safety and major quality incidents the relevant departmental staff quality tools and develop urgent

equipment-related issues. Through regular monitoring and evaluation of target achievement relevant data are used as it is required to report them to the at the same time measures

an important basis for assessing the effectiveness of quality management and for continuously optimizing production Quality Management Department

organization and quality control processes thereby steadily enhancing product quality control capabilities. by e-mail or telephone within 2 QA of the Quality Department Set up a team to analyze and

hours communicates with the relevant improve important problems/

sales person or after-sales service quality accidents according to

Product Quality Management Goals Quality and safety incidents are leader to confirm whether the 8D method

also reported to the Group Quality customer needs a response letter

Key Indices Goals Achievement Committee to deal with the problem

Quality Cost Rate ＜ 2.00% 1.95%

Rolling occurrence rate of semiconductor mono-crystal

puller equipment issues ＜ 2.80% 2.36% 7 Closure Confirmation 6 Preventive Measures 5 Effect Verification 4 Measure Formulation

Rolling occurrence rate of other semiconductor

equipment issues ＜ 6.00% 4.93% Customer complaints C ases of validated Validate post- Develop permanent

are integrated into measures are implementation measures using

Product Quality Management Indices the BPM system for expanded horizontally effects using tests response tables such

management and documented variance analysis as the PDCA method

pareto diagrams network diagrams etc.Key Indices Unit 2025 histograms etc.Number of Major Product Safety and Quality

Responsibility Accidents Times 0

Number of Product Quality Training Times 30

Cumulative Duration of Product Quality Training Hour 40

Product or Service Complaint Management Process

75 762025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Driving Development through Innovation and Sustainability

Key Performance Customer Training

In 2025 the Company recorded a customer satisfaction rate of 94.5% received 2 customer complaints At the same time the Company places great emphasis on customer capability development and has established

a scientific and standardized training system. The training process covers customer needs identification training

and achieved a complaint follow-up and resolution rate of 100%. plan formulation implementation and execution as well as continuous optimization providing customers with

comprehensive support including equipment technical briefings operational guidance and troubleshooting of

common faults. Through high-quality training services customers can fully master product technologies and

Case Efficient Delivery of the Turkey SmartSolar Wafer Project Winning High Customer Recognition enhance utilization efficiency and satisfaction maximizing value for both parties.From April to July 2025 the Company implemented the Smart Solar wafer project in Turkey with the PDCA Customer Training Process

Sales Center and relevant teams advancing the project throughout the entire process. They completed

equipment delivery installation commissioning and production ramp-up in just 90 days with both Plan (P) Do (D)

capacity and performance exceeding contract and customer expectations earning formal recognition

from the client for outstanding performance. The success not only supported SmartSolar in establishing

an integrated industry model spanning wafers to power stations but also further demonstrated C oordinate customer training content based C onduct customer training according to the plan;

the Company's delivery capability and product competitiveness in overseas markets enhancing its on needs; Timely adjust and resolve issues encountered

international brand influence laying a solid foundation for future global expansion. Identify essential training needs based on during the training process;

equipment installation progress; R esponsible for feedback and reporting on

Prepare the customer training plan. problem resolution progress.Action (A) Check (C)

Organize the summary and review of training Issued training questionnaires to obtain

evaluations; customers' evaluations of the training including

Develop and implement improvement plans; evaluations of trainers' competence course

S hare accumulated knowledge and content and training effectiveness.experience.?Smart Solar Silicon Wafer Project and Medal

77 782025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Driving Development through Innovation and Sustainability

Sustainable Supply Chain Meanwhile the Company emphasizes the cultivation of sustainable capabilities among procurement staff. Through specialized ESG training programs JSG systematically explains the necessity and development pathways of

sustainable supply chain management enabling the team to integrate environmental social and governance factors

into the entire process of supplier selection evaluation and contract management. This approach helps mitigate

JSG attaches great importance to the critical role of the supply chain in supporting core business development and achieving risks at the source enhances supply chain resilience and lays the foundation for reducing carbon emissions in the

long-term value creation and regards supply chain management as an integral component of its sustainable development supply chain while preventing environmental emergencies. By strengthening personnel capabilities the Company

system. From both governance and strategic perspectives the Company systematically advances supply chain-related continues to enhance the effectiveness of its procurement management and improve the overall compliance and

management initiatives focusing on the impact of supply chain activities on operational stability compliance management market competitiveness of its supply chain.and long-term development. Continuous enhancement of the standardization coordination and resilience of the supply chain

provides strong support for the Company's steady operations and high-quality development. Flexible Supply Chain Procurement Strategy

Governance Supply Source

Management Concentrated

Concentrated

JSG insists on "focusing on the deployment of the innovation chain along the industry and supply chains continuously Purchasing Concentrated Streamline the Number of

enhancing scientific and technological support capabilities". The Company regards supply chain governance as a crucial Concentrated Suppliers

foundation for supporting strategic implementation and high-quality development. The Company focuses on the full lifecycle Standardization Group Purchasing Integrate Supply-side Operations

management of suppliers formulating and improving systems such as the New Supplier (Resource) Development Management Generalization Multi-Purchase Unified

Procedure Supplier Management Process Supplier Admission Management Process Supplier Audit Process Supplier

Performance Evaluation Process and Supplier Exit Management Process. This establishes a supply chain management system

centered on "PDCA" enabling systematic management of suppliers from development admission evaluation to exit.In terms of organizational structure and division of responsibilities the Company has established a clear supply chain

management organizational system led by the Group's Vice President of Operations with subordinate departments including

Strategic Procurement Department Planning Department and Supplier Quality Management Department. The Strategic

Procurement Department is responsible for overall supplier planning and development; the Planning Department handles

procurement contract management purchase order execution and the implementation of supplier management tasks; the Demand Purchasing + Management Supplier

Supplier Quality Management Department oversees supplier development product quality certification and related activities.Through clear organizational division of labor and collaborative mechanisms the Company continuously enhances supply

chain governance efficiency and management effectiveness.Vice President of Operations Jingsheng Group

Equipment Manufacturing Department

Strategic Procurement Planning Department Supplier Quality Management

Department (Procurement Execution) Department

Supply Chain Planning Procurement Contract First Sample Certification for

Supplier Development Management New Product

New Product R&D Coordination Purchase Order Execution Quality Certification for

Strategic Resource Project Purchased Material Delivery Products from Suppliers

Management Supplier Management Execution Supplier Quality Issue Resolution

Supplier Development and

Improvement

?Purchaser Training

79 802025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Driving Development through Innovation and Sustainability

Strategy Supply Chain Opportunity Identification List

Aligning with our business characteristics the Company strategically identifies key risks and opportunities related to Opportunity Opportunity Response

the supply chain positioning supply chain management as a critical component supporting stable operations and Opportunity Description Likelihood Financial ImpactType Timeframe Measures

sustainable development.Enhancing supply Helps reduce Implement

Supply Chain Risk Identification List Core Supply stability for key materials production disruption tiered supplier

Chain Resilience and core components Medium-to- Medium-to- risks improves management;

Enhancement through full lifecycle Long Term High delivery capability strengthen

Possibility Opportunity supplier management and and stabilizes revenue cooperation and Risk Potential Impact on

Risk Type Risk Description of Risk Response Measures nurturing core suppliers and cash flow development with Timeframe Company Finance

Occurrence performance key suppliers

The Company relies Improve supplier Conduct supplier on specific suppliers May lead to production admission and Deepening collaboration Helps enhance audits and or regions for certain

Key Supply raw materials core Short-to- schedule adjustments performance

Supply Chain with suppliers possessing product exchanges;

Disruption components and Medium Medium delivery delays and evaluation

Collaboration technical advantages and competitiveness promote

subsequently affect procedures; promote and Technology partnership potential to

Medium

Term Medium and gross margin collaborative Risk specialized equipment. Term revenue recognition and tiered management Upgrade drive process optimization levels and innovation Abnormal supplier Opportunity and product performance strengthens market through supplier

deliveries may impact cash flow timing and cultivation of core suppliers improvements responsiveness training and production continuity development

Inadequate

management Integrate ESG Note: "Short term" refers to within 1 year "medium term" refers to 1-5 years and "long-term" refers to 5 years or more.by suppliers in May trigger compliance factors into supplier

Supplier environment Medium rectification costs screening， auditing Impact Risk and Opportunity ManagementCompliance occupational health Term Medium customer scrutiny risks and assessment; and ESG Risk safety or business and affect business strengthen supplier In supply chain management the Company has established a management process covering supplier admissionethics may lead to cooperation stability rectification and exit performance evaluation audit improvement and continuous supervision to systematically identify assess and

compliance and management address supply chain-related risks and opportunities focusing on the potential impacts of procurement activities on

reputational risks operational stability compliance risks and sustainable development goals.Supplier Management Process

Fluctuations in raw Enhance supplier

Cost material prices and May compress gross performance

Fluctuation changes in supplier Short-to- margin space and exert evaluation and

and operations may Medium Medium pressure on operating tiered management;

Procurement increase procurement Term performance and cost improve supply chain Supply Chain

Risk costs or affect control stability through Supplier Quality Supplier Risk Purchase Order

Supplier

procurement stability strategic procurement

Strategic

Management Management Assessment Management

Performance

Management

and synergy

Note: "Short term" refers to within 1 year "medium term" refers to 1-5 years and "long-term" refers to 5 years or more.

81 822025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Driving Development through Innovation and Sustainability

Supplier Admission Banned Substance Control

The Company continuously enhances product traceability and responsible procurement management to avoid

The Company incorporates compliance and ESG requirements during the supplier screening phase establishes environmental health and trade compliance risks posed by hazardous substances in materials. The Company

a "Qualified Supplier List" and defines supplier admission criteria. Potential suppliers must submit a matrix requires suppliers to sign the Commitment to Non-Use of Banned Substances and strictly adhere to clauses such

of qualification documents during the qualification process including the integrity cooperation agreement as the Requirements of Concentration Limits for Certain Restricted Substances in Electrical and Electronic Products.commitment to non-use of banned substances quality assurance agreements business licenses and on-site Through proactive management the Company ensures that purchased products and services meet environmental

inspection materials which are reviewed by procurement specialists. After passing the review process suppliers and safety standards from the source effectively reducing risks of supply chain disruptions or administrative

are upgraded from potential to provisional suppliers and complete qualification reducing compliance quality and penalties due to prohibited substances and enhancing the green competitiveness of the entire industry chain.environmental health risks at the source.Supplier Empowerment Training

Supplier Audits and Evaluations

The Company regards supply chain management as a key driver for collaborative development enhancing the

overall level of the supply chain through categorized training and capability empowerment for suppliers. The

The Company has established a supplier performance evaluation mechanism conducting monthly performance Company conducts workshops and training sessions tailored to the characteristics of different regions and suppliers

assessments on suppliers based on quality delivery cost and service while incorporating ESG factors into supply chain covering topics such as antitrust and unfair competition risk and compliance management lean production

evaluations and on-site supplier audit metrics. After evaluations the Company holds supplier performance meetings to production line automation upgrades performance research equipment performance improvement and quality

implement lifecycle management actions such as upgrades downgrades or exits based on assessment results. management enhancement. Meanwhile to adapt to market changes and procurement strategy upgrades the

Company has established a dedicated supply chain team to conduct annual on-site visits to key suppliers. Through

Based on performance evaluations and on-site audit results the Company further develops supplier audit plans in-depth communication and forward-looking assessments the Company strengthens strategic mutual trust and

driving continuous improvement through on-site audits issuing corrective actions creating improvement plans builds a more stable efficient and resilient core supply chain system.and tracking verification of improvements. For suppliers with excellent performance that meet requirements

the Company provides incentives such as increasing total procurement volume and upgrading them to qualified Supplier Performance Evaluation Indicators

suppliers. For suppliers with consistently poor performance over three consecutive months and ineffective

rectification the Company will implement management measures such as downgrading or removal to maintain

Qualification Safety and Technical Level and

overall supply chain stability and compliance. In 2025 the Company had no suppliers removed due to failed audits. Environmental Protection Performance Operating Conditions and Financial Risks Product Design and Certificates Innovation

Transparent Procurement

Environmental Green and Safe Raw Material and Product

The Company places high importance on integrity and compliance management in the supply chain to mitigate Workplace Safety Protection Warehousing and Logistics Traceability Management

compliance and reputational risks arising from commercial bribery or unfair competition. In accordance with

relevant anti-bribery laws and regulations the Company requires all partners to sign the Partners Integrity

Cooperation Agreement and conducts bidding and quotation activities through an open and traceable SRM system.By establishing a whistleblowing verification mechanism and breach management measures the Company can Hazardous Chemicals Supplier Quality Management

effectively identify and curb integrity risks in the supply chain ensuring transparency in procurement processes and Management Management System Product Design

strengthening the foundation for stable operations.

83 842025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Driving Development through Innovation and Sustainability

Meet the material and service needs of business operations improve operational efficiency and

maximize corporate value

Ensure procurement activities and supplier management comply with applicable national

laws regulations and internal corporate policies

Develop and maintain competitive stable and long-term supplier relationships to

support corporate sustainability strategy

Supply Chain

Management

Targets Ensure proper authorization of procurement activities segregation of duties for key

procurement processes and mitigation of procurement risks

Maintain accurate and complete procurement transaction records for effective management

and tracking

?In January 2025 the Company hosted the Global Supplier Innovation Conference.Optimize procurement costs to enhance product market competitiveness and business operational

efficiency

Equal Treatment of SMEs

In supply chain cooperation the Company adheres to the principles of fairness impartiality and transparency

treating all suppliers including small and medium-sized enterprises equally. We strictly follow contractual Key Performance

agreements for settlement and payment with no instances of malicious delays or unjustified late payments of

accounts payable. By standardizing procurement processes and settlement management the Company safeguards

the legitimate rights and interests of suppliers fosters long-term stable and mutually trusting partnerships and In 2025 the Company had a total of 1526 suppliers of which

jointly promotes the health and sustainable development of the supply chain.

100% of the suppliers signed agreements that included environmental and labor requirements;

Indicators and Targets 94% of the suppliers conducted social impact assessments;

and 94% of the suppliers conducted environmental impact assessments.In terms of indicator and target management the Company sets corresponding management indicators and work

objectives aligned with the overall goals of procurement and supply chain management focusing on the ability to

meet material and service demands procurement compliance operational efficiency and cost control effectiveness.During the reporting period all supply chain management targets were achieved.

85 862025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Empowering Talent to Build Tomorrow's Success

04

Empowering Talent to

Build Tomorrow's Success

JSG adheres to long-term development goals considering talent

and organizational development as key components of corporate

strategy and governance. By improving management mechanisms

continuously enhancing employee capabilities and organizational

collaboration ensuring occupational health and work safety aligning

employee growth with corporate development and strengthening

organizational resilience and adaptability we lay a solid foundation for

stable operations and long-term value creation.Employee Rights and Benefits

Employee Development

Employee Care

Occupational Health and Safety

87 882025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Empowering Talent to Build Tomorrow's Success

Employee Rights and Benefits Educational background of R&D personnel Age distribution of R&D personnel

3.41%9.40%

JSG upholds lawful and compliant employment practices treating fair hiring and standardized management as 26.43%

fundamental to human resource governance. We strictly comply with national labor laws and regulations including the 52.86%

Labor Law of the People's Republic of China and the Labor Contract Law of the People's Republic of China to safeguard

employee rights and interests. In talent recruitment employment management and organizational operations the

Company continuously reinforces principles of equality non-discrimination and inclusion firmly preventing violations

such as child labor and forced labor. By improving institutional frameworks and democratic communication mechanisms 34.47%

we promote synergy in employee diversity organizational cohesion and governance transparency. 35.69% 37.74%

Equal Employment Doctor's degree 50 people Above 40 (inclusive) 138 people

Master's degree 506 people 30 to 40 (inclusive of 30 exclusive of 40) 554 people

The Company adheres to the principles of equal and non-discriminatory employment practices. It strictly complies Bachelor's degree 524 people Below 30 (exclusive) 776 people

with relevant laws and regulations and has formulated a Diversity Equity and Inclusion Policy to establish standards for Associate degree or below 388 people

equal employment and the protection of employee rights and benefits. In its employment practices the Company firmly

opposes child labor and any form of forced labor. It continuously strengthens compliance in employment management The Company regards talent development as a key pillar for long-term growth continuously improving our talent

fostering a fair just and harmonious working environment. The Company maintains a zero-tolerance stance toward development and management system around attracting utilizing and retaining talent. For external recruitment the

any form of discrimination or unethical employment practices actively promoting the standardization and healthy Company employs multiple channels such as campus recruiting social recruiting and online platforms to attract talent

development of labor relations. Meanwhile the labor management system established by the Company applies not only standardizing job postings and hiring processes to ensure full disclosure of information and fair selection mechanisms

internally but also extends to suppliers and outsourcing partners jointly maintaining a healthy and orderly labor market. fostering an open transparent and non-discriminatory employment environment.Key Performance In terms of internal talent mechanisms the Company focuses on stimulating organizational vitality encouraging

reasonable internal mobility of top talent and promoting employee participation in internal referrals. The Company

As of December 31 2025 the Company had a total of 5745 employees with a 100% labor contract clearly defines the responsibilities qualifications and compensation for each position disseminating internal job

5.91 Note opportunities to all employees through internal platforms to ensure full visibility and fair competition for roles. signing rate and % core employee turnover rate ; there were no incidents of forced labor child labor Simultaneously the Company has established a talent referral mechanism and Implementation Standard of Internal

or other violation events involving employee rights. Referral Bonus for Recruitment of Internally Recommended Positions and introduced the "Talent Scout Award" with

corresponding bonuses. This initiative covers nearly 65 positions across 17 business lines continuously motivating

employees to participate in talent referrals and broadly attracting individuals from diverse backgrounds and professional

2025 Employee Structure of the Company fields. This provides solid support for the Company's long-term sustainable commercial and social value creation.

Employee Gender Structure Staff Position Structure Key Performance

6.11%

15.25% 1.88% In 2025 a total of 10 employees received the Talent Scout Award with cumulative bonuses amounting to

CNY 39250 and 43 new employees were hired through referrals.

25.55%

84.75%2.19%64.26%

Production positions 3692 people

Male 4869 people Female 876 people Sales positions 126 people

Technical positions 1468 people

Financial positions 108 people

Administrative positions 351 people

Note: The calculation method is the number of employees at Grade 7 and above who left the Company divided by ((the number of

employees at the end of 2025 + the number of employees at the beginning of 2025) / 2). This applies only to regular employees and

those rehired after retirement excluding individuals who joined and left within the same year. ?"Talent Scout Award" Poster ?Campus Recruiting Poster

89 902025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Empowering Talent to Build Tomorrow's Success

Diversity and Inclusion Case Organizing a "Goddess Day" Fun Sports Meet to Promote Diverse Exchange and Team Integration

The Company highly values the differences and uniqueness of our employees recognizing the strategic importance

of a diverse and inclusive workplace culture in attracting top talent. We have established the Diversity Equity and In March 2025 the Ningxia Yinchuan Park organized a fun sports meet for female employees in conjunction

Inclusion Policy applicable to all employees and suppliers supervised by the Board of Directors managed by the with Women's Day. The event encouraged active participation from female staff fostered communication

Audit Committee and implemented through a standing committee. Whistleblowing channels and reward-penalty among employees through engaging activities helped alleviate work pressure and promoted

mechanisms ensure the deep-rooted integration of diversity and inclusion within the organization. understanding and collaboration between employees of different roles and backgrounds. This initiative

contributed to creating an open and inclusive organizational environment while enhancing team cohesion.At the same time the Company is committed to safeguarding employee rights and firmly opposes discrimination

and harassment based on race culture religion age gender or disability. The Company provides comprehensive

benefits and care facilities for female employees while also focusing on the development of individuals with

disabilities and other special groups. We offer equal work and promotion opportunities for all employees supporting

them in fully utilizing their talents and achieving professional value. Additionally the Company arranges specific

holidays for ethnic minority employees fostering the deep integration of employee diversity development with

corporate strategic goals thereby creating a fair inclusive and dynamic organizational culture.Key Performance

As of the reporting period end the Company:

had 263 employees from minority ethnic groups 7 employees with disabilities and 35 military veterans;

?Goddess Day Fun Sports Activity

had 131 newly hired female employees bringing the total number of female employees to 876. Among

them 58 are in management positionsNote 1 and 16 are senior executivesNote 2.Case Respecting Multiculturalism Building a Harmonious Enterprise — the Company Implements Holiday

Arrangements for Ethnic Minorities

Case Launching International Women's Day Gift Care Activity to Foster a Diverse and Inclusive The Company values and actively practices the principles of

Workplace Atmosphere employee diversity and inclusive development respecting and

supporting the cultural customs and holiday traditions of employees

In March 2025 the Company organized holiday care activities for female employees during International from different ethnic groups. In 2025 the Company specifically

Women's Day distributing holiday gifts to express respect and gratitude. This initiative highlighted the implemented holiday arrangements for traditional ethnic minority

Company's recognition of the value and contributions of employees of all genders enhanced female employees' festivals such as Eid al-Adha and Eid al-Fitr for business units in

sense of fulfillment and belonging and promoted a workplace culture of diversity equality and inclusion. the Ningxia region demonstrating our corporate culture of ethnic

equality unity and mutual support through concrete actions.This initiative not only demonstrates respect for employees' ? Ethnic Minority Holiday Arrangements

diverse backgrounds but also fosters a more open inclusive and of the Company

harmonious work environment continuously promoting the deep

integration of corporate culture and talent development.Democratic Communication

?Distribution of International Women's Day Gifts The Company adheres to the fundamental principles of equality democracy openness and consultation continuously

improving communication mechanisms for employee participation in corporate governance. We place high importance

on employees' expression of opinions and effective involvement considering their voices as a vital foundation for

Note 1: "Management" covers employees of JSG at Grade 5 and above; driving continuous organizational improvement and high-quality development. By establishing a multi-level and regular

Note 2: "Senior Executives" include Directors Deputy Directors General Managers Deputy General Managers Presidents and communication and feedback system the Company continuously expands channels for employees to voice concerns

Vice Presidents. participate in consultations and offer suggestions. This promotes more scientific transparent and inclusive management

decisions steadily strengthening the foundation of harmonious stable and mutually beneficial labor relations.

91 922025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Empowering Talent to Build Tomorrow's Success

Workers' Congress JSG's Employee Service Center Structure

The Company regularly convenes Workers' Congresses to actively listen to and address employee concerns engage

in thorough consultations on labor management matters and foster a collaborative mutually trusting and win- Employee Service Center

win labor relationship. This approach continuously cultivates a cohesive and dynamic corporate culture while

strengthening organizational unity and driving innovation. In 2025 the Company elected the Fourth Committee of

the Zhejiang Jingsheng Mechanical & Electrical Trade Union Joint Committee the Fourth Fund Review Committee

and the Sixth Board of Directors' Employee Representative Director. Key topics such as trade union regulations

financial systems and human resources policies were reviewed and discussed with employee representatives. Employee Affairs Talent Service Administrative Service IT Service Financial Service

Case Convening the First Session of the Fourth Workers' Congress and the First Session of the Fourth

Trade Union Members' Congress Employee Feedback and Communication Channel

In December 2025 the Company solemnly convened the First Session of the Fourth Workers' Congress and Online Offline

the First Session of the Fourth Trade Union Members' Congress. Representatives from multiple locations

jointly exercised their democratic rights to deliberate on major plans for the Company's development. The

Congress listened to and deliberated on the JSG Trade Union Work Report reviewed and voted to approve Employee Satisfaction Survey Symposium

key institutional documents such as the Proposal for Revision of Trade Union Regulations the Proposal for Feedback Hotline: 0575-82333726 Solicitation of Comments

Revision of Human Resources Policies and the Proposal for Revision of Financial Systems. Additionally Complaint Mailbox: syhrssc@jsjd.cc Employee Mailbox

it elected 11 members to the Fourth Trade Union Committee of JSG 3 members to the Fund Review Windows of Employee Service Center

Committee and 1 Employee Representative Director.Key Performance

In 2025 through both online and offline employee feedback communication channels the Company

received a total of 57 pieces of employee feedback. The feedback handling rate was 100%; there was no

incident involving the leakage of employee information or the content of feedback/complaints.The Company continuously focuses on employee experience and organizational performance establishing a

?On-site Meeting of the Workers' Congress regular employee satisfaction survey mechanism. Through annual surveys common issues are identified to

provide decision-making support for management optimization and capability enhancement. In 2025 based on

the existing survey framework the Company further optimized questionnaire design expanding coverage to topics

Employee Feedback Mechanism such as human resource management performance incentives administrative services and leadership behavior

to comprehensively understand employees' views and suggestions on Company operations and personal growth.The Company consistently prioritizes employee feedback continuously improving the employee communication platform with The Company conducts systematic analysis of survey results and continuously implements improvement measures

employee sharing service center as the core facilitating an upward feedback mechanism through various communication channels based on feedback to synergistically enhance organizational efficiency and employee satisfaction.such as regular symposiums soliciting opinions and an employee mailbox. The Company encourages employees to fully voice their

concerns on matters related to them continuously enhancing their sense of participation and organizational transparency. Key Performance

Additionally the Company has established standardized and formal employee grievance and whistleblowing mechanisms with

corresponding procedures. Employees can submit complaints or reports anonymously or by name on issues such as employee

rights performance evaluations compensation and benefits diversity and equality anti-harassment and anti-discrimination forced In October 2025 the Company conducted an employee questionnaire survey and compiled the 2025 Group

labor child labor and employee welfare. The Company has established clear procedures for complaint acceptance investigation Questionnaire Survey Report covering 85.71% of employees with a satisfaction score of 4.19 out of 5;

and resolution which are jointly advanced by relevant responsible departments. For situations verified to potentially adversely affect

employees timely remedial and management improvement measures are taken. A whistleblower protection mechanism is also The survey identified 13 suggestions for improvement in administration environmental safety information

established to strictly safeguard the personal information of complainants and whistleblowers preventing any form of retaliation.Additionally the handling results are appropriately communicated or disclosed to effectively protect employees' legitimate rights and human resources etc. with 12 measures proposed and implemented achieving a correction rate of 92.31%.interests fostering positive interaction and harmonious development between the Company and our employees.

93 942025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Empowering Talent to Build Tomorrow's Success

Employee Development Key Measures of Performance Appraisal Personnel Management

Set annual Involve core Conduct Establish a Hold regular Promote a

performance personnel in monthly/ performance performance continuous

JSG adheres to placing talent development at the core of corporate strategy committed to building a growth and incentive goals and goal-setting with quarterly appeal channel review meetings improvement

system spanning the entire career lifecycle. Through systematic training scientific incentive mechanisms and multi- indicators every management evaluations allowing where direct mechanism by

dimensional career paths the Company continuously enhances employees' professional skills managerial competence and six months review and by business individuals who supervisors analyzing monthly

comprehensive competitiveness. Guided by the "Crystal Craftsman" pyramid philosophy to strengthen talent foundations— clearly breaking approval followed department with disagree with communicate and quarterly

"a strong base leads to a high peak"—JSG deepens the integration of employee value with corporate strategy fostering them down by formal sign- HRBP responsible evaluation results with employees performance

synergistic development of personal growth team building and long-term sustainable enterprise success. to individual off from all for collecting to file formal about data generating

levels to ensure employees evaluation appeals with performance improvement

objectives are to enhance results feedback HRBP following outcomes areas recommendation

Compensation Incentives specific and ownership and and handling up and providing for improvement reports and measurable. execution. employee closed-loop and development consistently

appeals. feedback. plans. optimizing

the evaluation

The Company prioritizes talent motivation and value realization establishing a comprehensive incentive system system.encompassing compensation performance equity and awards. Through scientific design and sustained investment

JSG fully activates employees' work enthusiasm and creativity.Incentive and Commendation Mechanism

Compensation Performance System The Company has established a diversified incentive system covering promotions salary increases equity incentives

and bonus rewards committed to providing employees with fair and substantial returns to effectively motivate

The Company has developed a scientific reasonable and market-competitive compensation system adhering to fairness and retain key talent. In response to the Company's strategic development needs since 2015 the Company has

principles without setting starting salaries or reward standards based on gender religion political background marital implemented three phases of stock option plans and one phase of an employee stock ownership plan benefiting

status or similar factors. The compensation design incorporates a variable mechanism dynamically adjusted based on over a thousand participants. This enables employees to share in the Company's growth fosters deep integration of

employees' work performance and contribution levels aiming to motivate high-performing employees to realize their personal value with corporate development and achieves mutual progress for both employees and the enterprise.potential attract develop and retain top talent thereby continuously enhancing the Company's overall competitiveness.Employee Incentive Mechanism

Employee Compensation Composition Promotion and Salary Increase

Annual Salary Increase; Twice-A-Year Promotion Opportunities.Stock Incentive

Standard Job Salary Special Patent Bonus

Duty Allowance Merit Bonus Stock Incentive

Overtime Pay

Core Talent Stock Incentive Plans.Building on this foundation the Company continuously refines our performance management mechanism breaking down Bonus Incentive

and implementing corporate strategic objectives across business units and positions and establishing a regular evaluation

and feedback process centered on work performance. Performance assessment results are directly linked to incentives such Performance Bonus Year-End Bonus Special Bonus (for R&D Positions) Patent Bonus

as quarterly bonuses excellent performance allowances and promotion evaluations effectively encouraging employees to Excellence Award and Assistance Fund.improve work efficiency and output quality thereby aligning individual value with corporate development goals.

9596

Variable Salary

Fixed Salary2025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Empowering Talent to Build Tomorrow's Success

Case Refining the Incentive and Recognition Mechanism to Promote Employee Growth and Enhance

Jingsheng Academy

Organizational Vitality

Jingsheng Academy as a unified training platform managed by the Group's Human Resources Center serves as the

To further incentivize exceptional employees the Company held its 2025 Awards Ceremony under the theme foundational support for the Company's talent development. To standardize training operations the Company formulated

"Steeds of Virtue Journey to Excellence". During the ceremony over CNY 15 million in bonuses were granted and implemented the Code of Management for JSG Academy systematically clarifying training responsibilities and

to individuals in recognition of their contributions to technological innovation and value creation including implementation processes while continuously advancing the development and updating of training resources. Building

outstanding technical engineers advanced workers exemplary cadres and outstanding Communist Party on this foundation the Company focuses on employee capability enhancement flexibly combining internal and external

members. In addition more than CNY 1.9 million was awarded to teams and individuals who demonstrated training while aligning training with practical application. We conduct targeted training to address knowledge and skill

excellence in patent creation and commercialization reinforcing the Company's commitment to innovation- gaps continuously improving the professional competencies and technical skills of employees across all positions.driven incentives. Awards were also presented to teams and individuals for honors such as the Excellence in

Dedication Award Technological Innovation Award and Management Progress Award. Through a systematic Organization Chart of Jingsheng Academy

and multi-tiered recognition and incentive framework the Company continues to stimulate innovation and

dedication among employees providing strong talent support for high-quality development.Human Resources Center

Talent Development Committee

President of Jingsheng Academy

Academic Dean

Training Specialist Internal Training Team External Training Institution

?"Steeds of Virtue Journey to Excellence" Awards Ceremony

Capability Development JSG's Training System Platform

The Company places high importance on talent development and is committed to building a systematic and

comprehensive employee capability development system. Through continuous learning and training we aim to

holistically enhance employees' professional skills management capabilities strategic thinking teamwork and

overall competencies. Whether it involves guiding new employees in adapting to their roles and facilitating their Counseling

growth developing leadership capabilities and strategic thinking among managers or enhancing the professional

skills of key positions the Company consistently adopts scientifically planned continuously invested and diversified Internal Training Certification Theme Training Camp

training approaches. These efforts support employees in expanding their horizons and pushing the boundaries of

their capabilities driving the simultaneous advancement of personal growth and corporate development. Coursework/Project Practice

Key Performance

External Channel Online Course Coursework Sharing

During the reporting period the Company invested CNY 2.42 million in training with 5745 employees Official Account of Jingsheng

receiving training achieving a 100% coverage rate and an average duration of 18 hours per employee. AcademyCourseware Lecturer Cultural Promotion

The Company provides support for examination fees degree programs and professional certification Training System Platform New Employee Training

acquisition to all employees (including contract and part-time staff) assisting them in enhancing their Video Lecturer

professional competencies and educational qualifications. To date a total of 100 employees have obtained Course Team Thematic Training

relevant certifications with an accumulated investment of more than CNY 70000 in 2025

97 982025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Empowering Talent to Build Tomorrow's Success

New Employee Training Case Mentorship Mechanism Promotes the Development and Knowledge Transfer of Young Talents

Guided by the Code of Management Trainee Camp and Continuous Training the Company annually selects outstanding

candidates from campus recruitment to join the management trainee program providing systematic training and In July 2025 the R&D Center held a new employee

development over a two-year period. Management trainees are required to complete multiple professional training camp apprenticeship ceremony with new R&D employees and

courses during their tenure. Through various forms such as job rotations internship practice and final presentations senior engineers participating together. Through one-on-

they will comprehensively enhance their professional skills communication and coordination abilities teamwork and one guidance the Company facilitates knowledge transfer

innovative awareness. The goal is to cultivate high-quality talents capable of independently assuming job responsibilities and practical guidance helping newcomers address

achieving the strategic objective of "Empowering employees accomplishing the Company". capability gaps and deepen professional accumulation.This mechanism strengthens technical inheritance and

Simultaneously the Company organizes a series of new employee orientation activities. Each subsidiary and department talent echelon construction promotes the continuous

implements new employee training tailored to their specific business needs. Building on the tradition of "mentoring and growth of young employees in practice and provides

support" the Company leverages the exemplary and guiding role of highly skilled technical talent. Through a one-on-one stable support for the long-term development of the

mentorship system JSG fosters the continuous growth of young professionals and ensures the transmission of experience. Company's core technical capabilities.?New Employee Apprenticeship Ceremony

Case JSG Conducted 2025 New Employee Orientation Activities

In July 2025 the Company organized an orientation training program for the 2025 cohort of new graduates with over 100 Leadership Training

new employees participating. Company executives and business leaders systematically introduced the corporate strategic The Company adheres to the philosophy of continuous growth for managers conducting systematic training for

direction R&D positioning and value philosophy to new employees through orientation sessions industry and product different positions and management levels over the years to enhance their leadership team management and

training and corporate culture promotion. This approach guides new employees in establishing a professional mindset strategic thinking. Through courses such as Team Leader Leadership Training Equipment Lean Management

focused on dedication pragmatism and innovation assists fresh graduates in smoothly transitioning into their roles enhances Training and Group Strategy Seminars the Company helps managers broaden their perspectives break through

their sense of organizational identity and lays a solid foundation for their career development and long-term growth. boundaries and strengthen their sense of mission regarding the importance of team management. The Company

enhances their ability to identify and retain talent continuously fosters the growth of outstanding individuals and

enables them to take on greater responsibilities in business execution team building and strategic decision-making.This provides solid talent and leadership support for the sustainable development of the enterprise.JSG Leadership Training System and Course Offering

Role Recognition and Competency

Enhancement of Team Leaders

Quality and Competency Enhancement How to Become a Coaching Leader

? 2025 New Employee Orientation Activities of the Company Training of Team Leaders How to Improve Team Cohesion

Time Management and Efficient Execution Roland Berger Competency Model

Team Building ……

H igh-efficiency Execution

……

Current Managers' Leadership Training New Managers' Leadership Training

Key Performance

Since 2019 the Company has conducted leadership training for current and newly promoted managers for 7 consecutive

?R&D Center Orientation Training ?New Employee Compliance Training years with 5 sessions held in 2025 covering 230 management personnel with a total training duration 15 hours.

99 1002025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Empowering Talent to Build Tomorrow's Success

Case Conducting Leadership Training for Team Leaders to Enhance Grassroots Management and Case Holding a Group Strategy Seminar to Strengthen Leadership Development and Talent Advancement

Exemplary Capabilities

In August 2025 the Company held the annual Group Strategy Seminar attended by senior executives subsidiary

In 2025 focusing on the development of frontline management capabilities the Company organized leadership leaders research institute directors and outstanding young talent representatives. The seminar featured systematic

enhancement training for team leaders in the sapphire business unit. The training invited an associate professor discussions on industry trends technological breakthroughs organizational efficiency and global strategy along

from Ningxia University a senior corporate trainer certified by the Ministry of Human Resources and Social with specialized training for young talents to enhance goal management and decision-making skills. By fostering

Security and an in-house senior trainer as instructors. A total of 66 team leaders and section chiefs participated. strategic alignment and leadership empowerment it facilitated collaborative growth between management and

The training was conducted through foundational leadership courses case studies and group discussions with young talents strengthening the organizational and talent foundation for sustainable corporate development.a focus on improving team leaders' abilities in on-site management team collaboration and problem-solving.This further strengthened their proficiency in refined management and highlighted their exemplary and guiding

role in work safety and operational management.?Group Strategy Meeting Training

Professional Skill Training

The Company places great emphasis on the continuous enhancement of employees' professional abilities and career

?Sapphire Team Leader Leadership Training development consistently increasing support and investment in professional skills training. In 2025 the Company

collaborated with several authoritative third-party organizations including Shaoxing Shangyu Shengan School and

Yinchuan Lihe Lituo Vocational Skills Training School to offer a wide range of professional continuing education

courses for key positions in R&D equipment safety and other critical areas. The Company also organized programs

Case Conducting Lean Equipment Management Training to Cultivate Frontline Management Efficiency for academic advancement specialized skill training and professional certification acquisition. These diversified

programs help employees improve their professional capabilities practical skills and overall competencies promoting

ongoing talent growth and development. In these training activities more than 100 employees obtained professional

In 2025 in response to the management needs of equipment manufacturing operations the Company certifications 1376 employees earned professional titles and the total investment amounted to more than CNY 70000.organized lean management training for relevant leaders and key employees. The training combined

with practical equipment management scenarios utilizing explanations of lean principles and case

study exchanges to deepen participants' understanding of efficiency improvement quality control and Case Conducting Silicon Carbide AI Specialized Training to Enhance Intelligent Manufacturing

cost management. It promoted the application of lean concepts in daily management and enhanced the and Technical Capabilities

execution capabilities and continuous improvement mindset of frontline managers.In September 2025 the Company organized a

specialized AI training program focused on silicon

carbide (SiC) aiming to enhance employees' capabilities

in the application of artificial intelligence. The program

combined the characteristics of silicon carbide

materials with the application of AI technologies in R&D

process optimization and quality control. The training

strengthened employees' understanding of intelligent

technologies and practical skills encouraging them to

actively embrace the emerging AI trends and improving

their professional skills and interdisciplinary application

?Lean Equipment Management Training ?Silicon Carbide AI Training capabilities.

101 1022025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Empowering Talent to Build Tomorrow's Success

Case Launching the Academic Upgrading Program to Strengthen Employees' Technical Capabilities Additionally the Company implements a differentiated cultivation strategy for the R&D team establishes a dual-path career development model for professional engineers primarily with multiple progression options supplemented by project

training competitions and quality development measures to ensure targeted planning enabling R&D talents to grow

In 2025 the Company's Equipment Manufacturing Department recognizing the urgent demand for highly alongside the Company and fostering a healthy ecosystem of talent growth and strategic organizational development.skilled talent driven by industrial upgrades and technological advancements initiated and implemented the

academic advancement program. This program is the first of its kind to systematically combine academic

education with vocational skill enhancement. A total of 95 employees participated in the program. Through

a school-enterprise cooperation and work-study integration model the program continuously improves Two-Path Development Path of JSG's R&D Personnel

employees' theoretical knowledge technical innovation capabilities and overall professional competence.Outstanding employees are awarded scholarships as a form of encouragement creating a dual mechanism

of learning advancement and positive reinforcement. This initiative further opens up growth pathways for Chief Engineer Director

skilled talent laying a solid foundation for the Company's high-quality development.Senior Engineer

Technical Path Management Path

Intermediate Engineer Deputy Director

Project Leader

Engineer

?Graduation Certificates and Scholarships Awarded in the Academic Advancement Program Senior- Competency Project Project Porter Cup Luban Cup

Junior Peer Development Competition Training

Mentoring

Development Path Assistant Engineer

The Company is committed to building a scientific talent development system guided by a performance-oriented philosophy

and establishing a career growth mechanism that covers the entire lifecycle. With job performance as the core evaluation

criterion and incorporating regular performance assessments and feedback the Company offers employees two performance

evaluations and promotion opportunities each year ensuring personal development aligns closely with the Company's

strategic goals. Through a three-sequence mode employees can advance along different career paths to become technical

experts or business management talents achieving a deep integration of personal career planning with the Company's strategic

objectives while continually enhancing the organization's talent density and core competitiveness.Development Path Map of JSG's Three-Sequence Talents

Technical Experts Business Talents

?T he Company has held the eighth "Luban Cup" Skills ? The twentieth session of the "Porter Cup" Competition has

Competition to cultivate young technical talent been held with nearly 100 new R&D employees and their

Project Management Talents Technical Talents Management Talents mentors participating

R-sequence R&D Class P-sequence Production Class M-sequence Management Functional Class

103 1042025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Empowering Talent to Build Tomorrow's Success

Employee Care Key Performance

In 2025 the Company achieved a 100% coverage rate for social insurance a 100% rate for labor contract

JSG adheres to a people-centered development philosophy and places great emphasis on employee welfare and care signings and a 100% coverage rate for employee regular physical examination. Employees have the option

systems. Through a combination of improved institutional arrangements and rich cultural activities the Company

continuously enhances employees' sense of fulfillment happiness and belonging. The Company is committed to to join the union upon employment with a union coverage rate of 97.11%.expanding the scope of welfare and activities promoting the collaborative development of material security and

emotional support and striving to create a stable harmonious and positive work environment that fosters mutual

growth between employees and the Company.Employee Welfare

JSG continually improves its employee welfare system ensuring comprehensive social insurance coverage for all

employees and a high participation in Trade Union activities. The Company's welfare policies benefit a wide range of

employees. In addition to standard welfare programs employees enjoy a diversified welfare arrangements including

welfare holidays holiday care various subsidies and employee events all aimed at enhancing employees' sense of

fulfillment belonging and organizational cohesion.Welfare Type Content ?Employee coffee Bar ?Employee Gym

· Five social insurances and one housing fund

(covering all employees) · Meal supplements provided in staff canteens

· Periodic physical examination (covering all (covering all employees)

Basic Welfare employees) · Dormitory available (covering all employees)

· Shuttle bus service (covering all employees)

· S upplementary commercial insurance (for frequent business travelers)

· Business travel subsidy (covering all

employees)

Various Subsidies · High-temperature subsidy (covering all

· Transportation subsidy (covering all employees)

employees)

· A nnual leave (covering all employees) · Various statutory holidays (covering all

employees) ?Summer Cooling Gifts ?Employee Discount Program· W elfare leave (covering all employees)

Holidays

· International Women's Day (covering all · lactation leave (covering all female

female employees) employees)

· Wedding condolences for employees · Natural disaster relief condolences (covering

(covering all Trade Union members) all Trade Union members)

Trade Union · Maternity condolences for employees · Funeral expenses of active employees

Welfare (covering all Trade Union members) (covering all Trade Union members)

· H ospitalization condolences for employees · Trade Union holiday benefits (covering all

(covering all Trade Union members) Trade Union members)

· E mployee internal purchase program (for all

Others employees) · Fitness center (open to all employees)

· C afe bar (open to all employees)

?Smart Staff Canteen ?Ningxia Park Employee Badminton Activity Center Officially Opened

105 1062025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Empowering Talent to Build Tomorrow's Success

Employee Activities Case "Winter Harmony · Family-Enterprise Unity" Lamb Festival Enhancing Employee Belonging

JSG places great importance on employee care and cultural development. The Company organizes a variety of employee In December 2025 the Company hosted the 7th "Winter Harmony · Family-Enterprise Unity" Lamb Festival with

activities such as endurance challenges and basketball tournaments to promote physical and mental well-being as well active participation from Group employees and their families. The event featured food tasting fun competitions

as strengthen team cohesion. In addition during holidays like the Spring Festival and Mid-Autumn Festival the Company parent-child interactions and hands-on experiences. Activities such as winter feasts tug-of-war Fei Hua Ling

distributes holiday gifts to employees as a gesture of humanistic care. Furthermore the Company continually optimizes (a traditional poetry passing game) DIY crafting and calligraphy blessings helped strengthen emotional bonds

canteen services enriching meal offerings to enhance the overall work and life experience for employees. between employees their families and the Company enhancing a sense of belonging and team unity.Case Holding New Youth Endurance Challenge to Promote Teamwork and Resilience

In October 2025 the Company held its 11th New Youth Endurance Challenge with nearly 200 participants

including representatives from the group and subsidiary company leaders the 2024 Jingsheng elites and

2025 new employees. Participants completed a 30-kilometer hike which took approximately six hours.

This physically demanding challenge combined with teamwork reinforced a sense of perseverance and

mutual support. The event integrated practical training into the talent development system effectively

enhancing young employees' organizational commitment team cohesion and stress resistance laying a

solid foundation for the growth of the Company's young talent.?Lamb Festival Event

Case Holding "Jingcai Cup" Basketball Tournament to Energize Employees and Strengthen Team Cohesion

In 2025 the Company organized the inaugural "Jingcai Cup" Basketball Tournament with extensive participation

from frontline employees across R&D equipment manufacturing and industrial parks. The tournament was

held with synchronized matches in multiple regions and a centralized final providing employees with a platform

for sports exchange and fostering cross-team communication and collaboration. Emphasizing fair play and

inclusive participation the competition effectively enriched employees' cultural and sports life boosted team

morale and strengthened a sense of collaboration and perseverance.?2025 New Youth Endurance Challenge ?First "Jingcai Cup" Basketball Tournament

107 1082025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Empowering Talent to Build Tomorrow's Success

Occupational Health and Safety Safety Management Organizational Structure

JSG attaches great importance to occupational health and safety management considering it a crucial foundation

for the Company's sustainable operations and sound development. The Company and its subsidiaries strictly comply Board of Directors Responsibilities of Joint Workplace Safety Committee

with relevant laws and regulations such as the Law of the People's Republic of China on Workplace Safety and the

Law of the People's Republic of China on Prevention and Control of Occupational Disease. It continuously improves Implement the principle of "Safety First Prevention Foremost and Comprehensive Management"

its occupational health and safety management system and strengthens the foundation of work safety management. enforce all relevant laws regulations rules and standards study important issues on work safety

Key Honors and report safety work to superior authorities and local safety committees in a timely manner;Chairman

I mplement comprehensive management of safety work of companies in the joint area

and be responsible for coordinating guiding and supervising work safety work;

Review and approve the work safety policies objectives management plans

Joint Workplace regulations safety measures and plans of the affiliated companies and supervises

Safety Committee their implementation.Responsibilities of Safety Execution Team

Diligently implement national guidelines policies laws and regulations on work

safety and the Company's safety management regulations;

Implement the work requirements conveyed by the Joint Workplace Safety Committee and

improve the supervision and management of safety environmental protection fire safety special

equipment occupational health and other safety supervision work in each regional company;

? JSG and Its Subsidiaries' ISO 45001 Occupational Health and Safety Management System Certifications

(Partial Display)

Participate in formulating and revising various regulations on work safety and

supervise their execution;

Governance

A ssist the Company leaders in organizing work safety meetings regularly organize

Safety Execution

The Company systematically advances the development of its occupational health and safety management system Team department heads for major safety inspections organize accident investigations and

focusing on both work safety and occupational health in line with its operational realities. In terms of workplace safety implement the principle of "no leniency";

management JSG has established and implemented systems such as the Special Equipment Management System and

the Labor Protective Equipment Management System setting clear standards for equipment safety and work protection Be responsible for organizing the Company's work safety publicity education and

requirements. Regarding occupational health management the Company has focused on the creation of systems such as job safety skills training supervising the implementation of the three-level safety

the Occupational Hazard Prevention and Control System and Occupational Health Operation Standards which regulate education for employees;

the management of occupational hazard prevention and control job operation requirements and employee health

protection throughout the production process. In 2025 the Company continues to update and improve these systems Be responsible for organizing the compilation and improvement of emergency plans

further refining safety management practices and enhancing the relevance and operability of the systems thereby driving for workplace safety accidents environmental and hazardous waste accidents and

the institutionalization standardization and systematization of occupational health and safety management. organizing emergency plan drills;

In terms of organizational structure and management mechanisms under the EHS management system the Company Organize the Joint Workplace Safety Committee to hold a safety special meeting semi-

has established a Joint Workplace Safety Committee and a Safety Execution Team both coordinated and overseen by annually the Safety Execution Team to hold a safety special meeting quarterly and

the Board of Directors. This top-down governance structure ensures comprehensive management of occupational health each area to organize a safety special meeting monthly regularly collaborating with

and safety. The Board of Directors holds ultimate responsibility for the Company's overall occupational health and safety various departments for on-site work safety inspections.management including the formulation of safety management policies and objectives. The Joint Workplace Safety

Committee is responsible for coordinating safety management efforts across various business units and subsidiaries.

109 1102025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Empowering Talent to Build Tomorrow's Success

Strategy Impact Risk and Opportunity Management

In line with its high-end equipment manufacturing business characteristics the Company has systematically

identified key risks and opportunities related to occupational health and safety in its production and operations. In terms of occupational health and safety management the Company has established a comprehensive management

These factors are incorporated into the Company's overall business decision-making and development strategy process covering risk identification assessment rectification and monitoring focusing on the potential impacts risks

aiming to continuously enhance operational stability and long-term sustainability. and opportunities arising from production and operations. Through work safety hazard investigation and cooperation

with external inspections by government regulatory agencies the Company identifies occupational health and safety-

Occupational Health and Safety Risk Identification List related risks in the production process. Any hazards identified during inspections are addressed with rectification

measures which are tracked and managed for continuous improvement.Possibility

Risk Potential Impact on For the risks identified the Company conducts safety training and emergency drills to enhance employees' awareness and

Risk Type Risk Description of Risk Response Measures

Timeframe Company Finance capabilities in safe operations and emergency response reducing the likelihood of accidents and mitigating their impact. In relation

Occurrence to factors that may affect employee health the Company identifies and monitors occupational disease hazards. It also conducts

Involved in heavy equipment This may result in tests and occupational health check-ups for relevant workplaces and employees to assess the status of occupational health risks.mechanical work and

mechanical operations during work stoppages Provide targeted By integrating risk identification results with specific management actions the Company continually improves its

Workplace manufacturing assembly Short-to- for rectification safety training; occupational health and safety practices preventing adverse impacts while enhancing its overall occupational health and

Safety Risk and commissioning. Improper Medium Medium compensation standardize work safety management level.management could lead Term payouts and processes; conduct

to personnel injuries or delays in project regular safety drills Occupational Health Management

workplace accidents delivery

Employees may be exposed This may increase Organize regular medical check- health check- The Company places a particular focus on positions involving high labor intensity susceptibility to periodic fatigue and Occupational to noise dust or specific up and healthcare ups; provide and potential occupational hazards. Priority is given to optimizing and improving relevant work processes to continuously Health process environments Medium-to-

Exposure during prolonged work Long Term Medium costs and affect standardize the use of

reduce the occupational health and safety risks faced by employees. Additionally the Company conducts occupational

Risk potentially affecting their employee stability protective equipment;

health training to enhance employees' awareness of occupational health risks and their ability to protect themselves.health and human continuously improve resource efficiency working conditions Occupational Health Management Measures

Note: "short term" refers to within 1 year "medium term" refers to 1-5 years and "long term" refers to 5 years or more

Occupational Health and Safety Opportunity Identification List Employees are informed about occupational hazards and their effects protective

measures and emergency procedures through the posting of occupational disease

Opportunity Opportunity Potential Impact on hazard notification cards at affected workstations and the placement of hazard

Opportunity Description Likelihood Response Measures Occupational Hazard

Type Timeframe Company Finance information and warning signs.Notification

Systematic advancement This helps reduce Build a robust

Opportunity of occupational health and accident-related costs occupational health Identify and monitor occupational disease hazard factors consistently establish a

to Improve safety management helps Medium-to- improve production line and safety system; list of high-risk positions for occupational diseases and continually improve routine Production reduce workplace injuries Long Term High stability enhance project continuously monitoring and management.Efficiency and and unplanned shutdowns delivery efficiency provide safety

Stability ensuring continuous and and indirectly improve training and hazard Occupational Hazard Purchase and maintain safety health and environmentally friendly equipment

stable production operational performance investigation Prevention and Control and facilities including special equipment inspections to ensure the continuous

Effective occupational health Organize employee Management maintenance of hazard protection facilities.Talent and safety management This helps reduce

Attraction and increases employee sense employee turnover and

health check-ups;

Employee of security and satisfaction Medium-to- Medium- recruitment/training

improve protective

Long Term to-High costs improving the measures; strengthen D epending on the hazard factors of different positions provide labor protection Retention enhancing the Company's return on human communication on supplies that meet local occupational health and safety protection requirements Opportunity ability to attract and retain occupational health including safety helmets noise-reducing earplugs specialized masks safety shoes

technical talent capital investments management Provision of

Personal Protective protective goggles and cut-resistant gloves.Note: "short term" refers to within 1 year "medium term" refers to 1-5 years and "long term" refers to 5 years or more Equipment

111 1122025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Empowering Talent to Build Tomorrow's Success

Case Conducting Workplace Safety Month Activity to Enhance Safety Awareness Across all Employees

Standardize the investigation and handling process for work-related injuries. While

ensuring that injured employees receive immediate medical attention an accident In July 2025 the Company successfully launched a month-

Work Injury Accident investigation team is promptly formed to conduct an investigation. long series of work safety activities under the theme

Handling "Everyone cares about safety and everyone can respond

to emergencies—Identifying safety hazards around us".The Workplace Safety Month included activities such as

safety training emergency drills knowledge competitions

Ensure full-cycle coverage of pre-employment on-the-job and post-employment and safety awards. The goal was to intensively strengthen

medical examinations for employees in positions with occupational contraindications. work safety concepts guide employees to proactively

Establish and maintain employee occupational health surveillance records. identify risks and standardize their operations further

Employee Health Regularly organize health check-ups for all active employees. solidify work safety responsibilities create a safer working

Check-up environment and continuously improve the safety level

of the Company.?Workplace Safety Month Activity

T he Company developed an annual safety training plan covering occupational health

topics such as noise protection the use of personal protective equipment and dust Case Conducting Systematic EHS Training to Enhance Workplace Safety Capabilities

Occupational Health hazards and prevention facilities.and Safety Training In 2025 the Company and its subsidiaries implemented an annual EHS training plan involving employees

and management from relevant positions. The training covered general topics such as occupational health

and safety corporate-wide work safety responsibilities and environmental safety as well as specialized

Case Conducting Occupational Health Check-up to Strengthen Employee Health Protection training on electrical safety hazard source identification hazard investigation the eight major dangerous

operations and special equipment. These sessions were conducted at the company departmental

In 2025 JSG's various parks actively organized annual and team levels using a "theory + practice + assessment" model. Through standardized training and

health check-ups for employees in batches offering assessment management employees' understanding and execution of safety standards were strengthened

comprehensive and professional health services to effectively enhancing the Company's overall work safety management level.show care for their well-being. To reduce employee

travel the Company coordinated in advance with

health check-up institutions bringing professional

medical equipment and healthcare teams directly to

the parks. This provided employees with a "one-stop"

convenient service. Personalized check-ups tailored to

different age groups and job requirements were offered

allowing employees to receive a comprehensive and

efficient occupational health examination on-site.?Daily Safety Training

?Employee Health Check-up

Workplace Safety Training

The Company has systematically developed and strictly implemented emergency response plans and annual safety

training programs. Regular emergency drills and safety training sessions are organized combining methods such as

Q&A exams practical exercises and certification to comprehensively assess training effectiveness. These measures

effectively enhance employees' awareness of work safety and standard operating procedures strengthen their ability

to respond to environmental protection and safety emergencies and reduce the likelihood and impact of accidents ?Specialized Training on Hazardous Chemicals Special Equipment Emergency First Aid etc.thus enhancing the resilience of safety management.

113 1142025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Empowering Talent to Build Tomorrow's Success

Case Conducting Multi-scenario Emergency Drills to Enhance Emergency Response Capabilities Indicators and Targets

In 2025 the Company and its subsidiaries organized annual emergency drills covering typical scenarios In terms of indicator and target management the Company and its subsidiaries have established annual safety

such as earthquake response fire evacuation electrical shock handling and drowning accidents in management targets based on occupational health and safety requirements combined with operational realities. These

wastewater pits. These drills simulated real-life accident scenarios to test the operability of emergency targets are tracked and managed to continuously enhance the level of occupational health and safety management.response plans and the efficiency of coordinated actions. The drills effectively enhanced employees'

awareness of hazardous processes and their ability to respond to emergencies. They also strengthened Occupational Health and Safety Management Targets and Achievements

team collaboration and self-rescue and mutual aid awareness providing crucial support for the safe and

stable operation of the Company. Target Item Index 2025 Achievement

Major hazard source identification and effective control rate 100% 100%

Major work safety accidents / personal injury incidents 0 0

Safety hazard rectification rate 100% 100%

Safety facility/equipment integrity rate 100% 100%

Compliance with laws and regulations 100% 100%

Identification of important environmental factors and

effective control rate 100% 100%

Incidence rate of occupational diseases 0 0

Key Performance

During the reporting period the Company invested a total of CNY 9.11 million in work safety;

?Earthquake Drill The Company organized 207 safety training sessions totaling 533 hours of training with 6458 employees

trained. Additionally 221 special emergency drills were conducted with 8645 total participants.The occupational disease check-up coverage rate for employees in positions with occupational hazards was 100%.

115 1162025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Creating Positive Impact Together for a Better Future

05

Creating Positive Impact

Together for a Better Future

JSG has always integrated social responsibility into its corporate

development DNA adhering to the principle of creating economic value

while actively giving back to society and serving the public. The Company

spreads warmth through charitable actions and empowers rural areas

through industrial collaboration. JSG fulfills its corporate citizenship

responsibilities through actions such as educational donations sports

and cultural support voluntary blood donations and rural revitalization

efforts.Public Welfare

Rural Revitalization

117 1182025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Creating Positive Impact Together for a Better Future

Public Welfare Case Supporting National Fitness and Sports Philanthropy by Sponsoring Marathon Events for Three

Consecutive Years

JSG adheres to actively fulfilling social responsibilities while achieving its own business development. The Company In 2025 as a sponsor for the third consecutive year the

actively participates in public welfare activities such as educational donations sports and cultural sponsorships Company continued to name and deeply participate

and voluntary blood donations. JSG also engages in various forms of volunteer services contributing to community in the 2025 Shaoxing·Shangyu Half Marathon the

building and social harmony. The Company transforms its social responsibility philosophy into concrete actions 9th Shaoxing·Shangyu Cao'e River Half Marathon

continuously enhancing its contributions to society and playing a positive role as a corporate citizen. and the 4th JSG Marathon for 1000 PhDs and Young

Talents. JSG supported the marathons through

sponsorship and volunteer services ensuring the

2025 Public Welfare Donation and Assistance Projects safety of participants during the competition. The

total investment for the year reached CNY 350000. By

supporting these sports events the Company actively

In March 2025 JSG donated CNY 100000 to Binjiang Primary School in Shangyu promoted the development of public cultural initiatives

Supporting the Education District to reward outstanding teachers who have contributed to the development in the community advocated for healthy lifestyles

Cause in Cao'e Subdistrict of the school's education and sports programs supporting the educational and showcased its commitment to building vibrant

development of Cao'e Subdistrict. communities and promoting positive social energy. ?On-site at the Shangyu Half Marathon

Supporting the Educational

Development of Bowen In October 2025 the Company donated CNY 100000 to Bowen Primary School in Case Organizing Voluntary Blood Donation to Alleviate the City's Blood Supply Pressure

Primary School in Shangyu Shangyu District to reward excellent teachers and outstanding students.District In February 2025 the subsidiary Qiushi Semiconductor responded actively to the call from the Hangzhou Health

Commission and the Blood Center of Zhejiang Province by organizing a voluntary blood donation campaign

"Blood for the City of Hangzhou". Company executives led by example encouraging party members and

frontline employees to enthusiastically participate fulfilling their social responsibility through concrete action.Establishing the "Zhejiang The Company has established the "Zhejiang University Education Foundation Lu On the day of the event a total of 7900 milliliters of blood was donated providing crucial support for life-saving

University Education Yongxiang Intelligent Manufacturing Science and Education Fund". In December 2025 treatments. This activity not only spread warmth in society but also further strengthened employees' sense of

Foundation Lu Yongxiang the Company donated CNY 6 million to Zhejiang University to reward outstanding social responsibility underscoring the Company's active role in public welfare.Intelligent Manufacturing faculty and staff who have made significant contributions to intelligent manufacturing

Science and Education education research and management to recognize students with excellent academic

Fund" performance and strong character and to provide financial support to outstanding students from families facing economic difficulties.Assisting Impoverished

Families in Shangyu In 2025 the Company donated CNY 100000 to the Shangyu Charity Federation to

District assist impoverished families in Shangyu District.Key Performance

During the reporting period the Company's total public welfare donations amounted to CNY 7.21 million.?"Blood for the City of Hangzhou" Voluntary Blood Donation Campaign

119 1202025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT Creating Positive Impact Together for a Better Future

Rural Revitalization Case Partnering with Tonghe Village to Support Local Infrastructure Improvement

In May 2025 the Company officially signed a village-enterprise partnership agreement with Tonghe Village

JSG is deeply committed to the implementation of the rural revitalization strategy. Leveraging its resource in Jinhe Town Jinkouhe District. Through a targeted donation of CNY 20000 the Company supported the

endowments and technological advantages the Company continuously works to ensure the effective integration improvement of public infrastructure and the enhancement of the villagers' quality of life. This partnership

of poverty alleviation efforts with rural revitalization. The Company has established a robust "village-enterprise is a key initiative in the Company's deep involvement in the rural revitalization strategy and its commitment

partnership" support mechanism driven rural industrial upgrades and increasing farmers' income through to fulfilling corporate social responsibility. The financial support effectively alleviates the funding pressure

measures such as regular targeted consumption support and optimizing internal supply channels for specialty on village and town development promoting sustainable growth in the area. Moving forward the Company

agricultural products. The Company continues to explore innovative ways to support rural revitalization promoting will further integrate its resource advantages and continue to explore diversified support models combining

the modernization of agriculture and rural areas through concrete actions. It strives for coordinated development financial assistance with industrial collaboration to provide strong support for the realization of shared

between the enterprise and society and contributes positively to the cause of rural revitalization. prosperity in Tonghe Village.Key Performance

During the reporting period the Company's total investment in rural revitalization amounted to CNY 650000.Case Ningxia Park Purchased Selenium-enriched Sand Melons to Support Farmers' Income Growth

In July 2025 the Company's Ningxia park launched a farmer support initiative to help local melon farmers

facing the "difficulty in selling melons" challenge. The Ningxia park precisely coordinated with melon growers

Case Launching a Consumption-based Support Initiative for Farmers to Empower Rural Revitalization in

purchasing over 25000kg of selenium-enriched sand melons which were given as summer cooling gifts

Hongxing Village to customers in the Jiangsu and Zhejiang regions. This initiative not only ensures stable income for melon

farmers but also rewards customers with high-

To fulfill its corporate social responsibility and contribute to rural revitalization in August 2025 the Company quality agricultural products achieving a multi-win

launched a consumption-based support initiative in Hongxing Village Huangyan Town Pujiang County outcome of "assisting farmers benefiting customers

Zhejiang Province. The Company purchased over 4000 grape gift boxes from the village which were distributed and growing the enterprise". It fosters a virtuous

as high-temperature welfare gifts to all employees. This initiative has been running for five consecutive years. cycle where "enterprises empower agriculture

By establishing stable purchasing channels the and agriculture drives rural revitalization" deeply

Company has directly provided tangible economic reflecting the Company's core values of "partner

benefits to local farmers and effectively expanded the accomplishment and taking responsibility". Moving

sales channels for agricultural products. The project forward the park will continue exploring diversified

not only enhances employee welfare but also deeply farmer support models enhancing agricultural

aligns with the Company's value system of "partner benefits and contributing to rural revitalization

accomplishment". By combining industrial support through corporate efforts.with consumption-based support JSG continues ?N ingxia Park On-site Purchase of Selenium-enriched

to inject momentum into rural revitalization taking Sand Melon to Support Farmers

concrete actions to support regional coordinated

development.?G rape Harvesting Packaging and Distribution at

Hongxing Village

121 1222025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT

Key Performance Table Index Unit 2023 2024 2025

Water Resource Utilization

Operational Performance Purchased municipal water m3 3028793 3096422 3471716

t/CNY 10000

Water resource consumption intensity 1.68 1.76 3.06

Index Unit 2023 2024 2025 Revenue

3

Operating revenue CNY 10000 1798319 1757661 1135749 Water circulation volume m 34571430 88375469 77221338

Net profit attributable to the parent Energy Utilization

CNY 10000 455751 250973 88473

company

Ton(s) of

Total assets CNY 10000 3680836 3155018 2775623 Total energy consumption 61000 67585 70964standard coal

Tax payment amount during the

CNY 10000 165275 138383 40596 Ton(s) of

reporting period Total direct energy consumption 68 61 63standard coal

Ton(s) of

Total indirect energy consumption 60932 67524 70901

Environmental Performance standard coal

Ton(s) of

Including: Clean energy consumption 1446 1031 1820

standard coal

Index Unit 2023 2024 2025

Diesel consumption Liter 34710 25526 36050

Ecological and Environmental Management

Gasoline consumption Liter 15080 20625 24598

Investment in green environmental

CNY 10000 3833 3582 3605

protection Renewable energy consumption kWh 11764975 8389021 14806198

Major environmental incidents Case(s) 0 0 0 Purchased electricity consumption kWh 484010108 541025999 577508995

Administrative punishment for

Case(s) 0 0 0

environmental protection Pollutant Discharge

Addressing Climate Change Total wastewater discharged m

395805710261221069818

Total greenhouse gas emissions tCO 276046 308561 339417 Total waste water circulation volume m

345907201212406323

2

Including: Scope 1 tCO 193232 215993 237592 Waste Treatment2

Including: Scope 2 tCO 82814 92568 101825 Total recyclable waste Ton(s) 1500 2062 28692

tCO2/CNY Total general solid waste Ton(s) 1100 2915 1294

Greenhouse gas emission intensity 10000 0.15 0.18 0.30

Revenue Total general solid waste recycling Ton(s) 140 920 558

volume

Disclosed greenhouse gas emission

tCO / / 10412

reductions 2 Total hazardous waste Ton(s) 1800 1966 2100

Power generation from PV 10000 kWh 1038 1482 1790 Total non-hazardous waste Ton(s) 2460 4057 3605

123 1242025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT

Corporate Governance Performance Index Unit 2023 2024 2025

Percentage of suppliers that have

%100100100

Index Unit 2023 2024 2025 signed the Supplier Code of Conduct

Percentage of suppliers who signed

Employee Employment and Rights

agreements containing environmental % 100 100 100

Total employees Person(s) 7495 6111 5745 and labor requirement clauses

Percentage of suppliers for which

Number of employees with disabilities Person(s) 5 7 7 social impact assessments have been % 93 94 94

conducted

Number of employees from minority

Person(s) 304 274 263

ethnic groups Percentage of suppliers for which

environmental impact assessments % 94 94 94

Number of female employees Person(s) 1165 976 876 have been conducted

Number of female management Percentage of purchasers trained in

1 Person(s) 57 59 58 % 100 100 100employees sustainable procurement

Number of female senior executives2 Person(s) 15 17 16 Occupational Health and Safety

Number of employees hired under labor

% 100 100 100 Investment in work safety CNY 10000 904 1385 911

contracts

Major work safety accidents / personal

Case(s) 0 0 0

Employee satisfaction Points / 4.54/5 4.19/5 injury incidents

Employee performance appraisal Coverage rate of occupational disease

%//100

coverage rate3 physical examinations for employees in % 100 100 100

occupationally hazardous positions

Employee Training and Development

Incidence rate of occupational diseases % 0 0 0

Annual training expenditure CNY 10000 / 163.25 242.45

Innovation-Driven Development

Total number of employees trained Person(s) 7495 6111 5745

Total number of R&D personnel Person(s) 1678 1588 1468

Employee training coverage rate % 100 100 100 Percentage of R&D personnel in total

%22.3925.9925.55

employees

Average training hours per employee Hour(s) 17.5 22 18

R&D investment CNY 10000 114540 111919 95498

Core employee turnover rate4 % 3.39 6.67 5.91

Cumulative number of compiled

Copies 19 23 32

Average employment tenure of core standards

Year(s)/person 8.77 9.71 10.67

employees: male Cumulative number of patents held by

Case(s) 914 1069 1274

Average employment tenure of core the Company

Year(s)/person 7.85 8.83 9.28

employees: female Cumulative number of invention

Case(s) 172 256 364

Supply Chain Management patents held by the Company

Number of new patents granted

Total number of suppliers Number 1504 1386 1526 Case(s) 345 323 237annually

125 1262025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT

Social Performance

Index Unit 2023 2024 2025 Index Unit 2023 2024 2025

Newly added invention patents in the

Case(s) 92 105 107 Board of Directors

year

Number of Board Members Person(s) 9 9 9

Distributed patent bonuses CNY 10000 137 204 192

Number of Female Directors Person(s) 2 2 3

Quality and Safety of Products and Services

Number of Independent Directors Person(s) 3 3 3

Customer satisfaction % 97.8 97 94.5

Major safety and quality incidents Business Ethics

Case(s) 0 0 0

related to products and services Number of commercial bribery and

Case(s) 0 0 0

Incidents of customer privacy leakage Case(s) 0 0 0 corruption incidents

Total number of employees trained

Social Contribution on anti-commercial bribery and anti- Person(s) 7495 6111 5745

corruption

Public welfare donation investment CNY 10000 736 753 721

Coverage rate of employees trained in

%100100100

Rural revitalization investment CNY 10000 62 154 65 anti-corruption and anti-bribery

Total number of directors and

management personnel trained on

Person(s) 66 66 70

anti-commercial bribery and anti-

corruption

Note 1: " Management" covers employees of JSG at Grade 5 and above. Percentage of directors and

Note 2: "Senior Executives" include Directors Deputy Directors General Managers Deputy General Managers management personnel trained on

%100100100

Presidents and Vice Presidents. anti-commercial bribery and anti-

corruption

Note 3: T he statistical scope of the employee performance appraisal coverage rate includes all non-probationary

employees. Litigation or major administrative

penalties due to the Company's unfair Case(s) 0 0 0

Note 4: " Core employees" includes employees of JSG at Grade 7 and above. competition practices

Data security incidents Case(s) 0 0 0

127 1282025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT

Index of Indicators Reader Feedback

Indicator Index of Stock Exchange's Guidelines Dear Readers

Hello!

Disclosed Topics Report Section Thank you for your interest in and for reading the 2025 Environmental Social and Governance Report of JSG. In order to

Addressing Climate Change Addressing Climate Change provide you and other stakeholders with more valuable information and to effectively enhance the Company's ability and

level of sustainable development we sincerely look forward to your comments and suggestions. If you have any questions

Pollutant Discharge Management of "Three Wastes" regarding this report or any valuable opinions or recommendations on the Company's sustainable development

practices please do not hesitate to contact us so that we can continue to make improvements.Waste Treatment Management of "Three Wastes"

Your identity:

Ecosystem and Biodiversity Protection Ecological and Environmental Management

□ Shareholder and Investor □ Creditor □ Company Employee

Environmental Compliance Management Ecological and Environmental Management

□ Partner and Industry Association □ Customer □ Supplier and Contractor

Energy Utilization Resource Utilization

□ Media and the Public □ Government and Regulatory Agency □ Others (Please specify: ______)

Water Resource Utilization Resource Utilization

Single-choice Questions:

Circular Economy Circular Economy

1. Do you think the text layout and design of this report are easy for you to understand and read

Rural Revitalization Rural Revitalization

□ Yes □ Fair □ No

Social Contribution Public Welfare

2. Do you believe this report objectively and fairly reflects the Company's practices and performance in the

Innovation-Driven Development Green Industry Synergy R&D and Innovation environmental dimension (e.g. environmental compliance management addressing climate change pollutant and

waste management energy and water resource conservation etc.)

Not applicable. The Company's core businesses do not involve

scientific research technological development and other activities

Technology Ethics □ Yes □ Fair □ No

in sensitive fields such as life sciences and artificial intelligence

ethics. 3. Do you believe this report objectively and fairly reflects the Company's practices and performance in the social

dimension (e.g. innovation-driven development supply chain management product safety and quality employee

Supply Chain Security Sustainable Supply Chain development and health and safety social contributions etc.)

Equal Treatment to Small and Medium-Sized □ Yes □ Fair □ No

Sustainable Supply Chain

Enterprises 4. Do you believe this report objectively and fairly reflects the Company's practices and performance in the

governance dimension (e.g. business ethics management ESG management standardized operations etc.)

Safety and Quality of Products and Services Product Quality and Safety

□ Yes □ Fair □ No

Data Security and Customer Privacy

Information Security and Privacy Protection 5. Do you think the structure and layout of this report makes it easy for you to find the content you are interested in

Protection

□ Yes □ Fair □ No

Employees Employee Rights and Interests

Open-ended Questions:

Due Diligence Compliance and Risk Management

1. What additional information would you like to learn about the Company's sustainable development practices and

Communication with Stakeholders ESG Management performance

Anti-Commercial Bribery and Anti-Corruption Business Ethics

Anti-Unfair Business Ethics

129 1302025 ENVIRONMENTAL SOCIAL AND GOVERNANCE REPORT

2. Do you have any comments or suggestions regarding the 2025 Environmental Social and Governance Report

3. Do you have any comments or suggestions regarding the Company's environmental social and governance (ESG)

management work

Contact Us:

Address: 500 Shunda Road Linping District Hangzhou Zhejiang

Tel: 0571-88317398

E-mail: jsjd@jsjd.cc

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