Stock Code: 300389.SZ

2025 Environmental Social

and Governance (ESG) Report

SHENZHEN ABSEN OPTOELECTRONIC CO.LTD.Shenzhen Absen Optoelectronic Co.Ltd.

0755-89747399

18-20F Building 3A Cloud Park Bantian Longgang

District Shenzhen

https://www.absen.com Absen Website01 2025 Environmental Social and Governance (ESG) Report 02

About This Report

Reference Standards

This report is the 2025 Environmental Social and Governance Report ("this Report") published by Shenzhen Absen This Report has been prepared with reference to the Shenzhen Stock Exchange ("SZSE") Self-Regulatory Guidelines

Optoelectronics Co. Ltd. ("Absen" the "Company" or "we") which systematically disclosing the Company's man- for Listed Companies on the Shenzhen Stock Exchange No. 17 — Sustainability Reporting (Trial) while also drawing

agement practices key performance indicators and future plans in the environmental social and governance upon the provisions and requirements of the Global Sustainability Standards Board ("GSSB") GRI Sustainability

("ESG") field. Reporting Standards ("GRI Standards").Timeframe

This Report covers the period from 1 January 2025 to 31 December 2025 (the "Reporting Period"). Certain content Accessibility

has been appropriately traced back to prior periods or extended beyond the Reporting Period to ensure continuity

This Report is available in both printed and electronic formats. The electronic version can be accessed online or

and comparability.downloaded from Absen's official website at www.absen.cn.Reporting Scope

The scope of this Report aligns with the business coverage of Shenzhen Absen Optoelectronics Co. Ltd. encom-

passing Shenzhen Absen Optoelectronics Co. Ltd. and its subsidiaries.CONTENTS

03 Chairman’s Statement

Authentic Brilliance Integrity in Governance Precision in Products Clean Development Talent-driven Development Benevolent Dedication

Pursuit of Excellence Stability in Operations Empowered by Innovation Safeguarding Ecosystems People-oriented Approach Community Wellbeing

07 About Us 17 Enhancing Corporate 23 Product and Technological 45 Environmental Compliance 53 Employee Rights 61 Rural Revitalisation and

Governance Innovation Management and Benefits Social Contributions

11 2025 in Numbers

45 Responding to Climate Change 55 Employee Training Enhancing Internal Product and Service Safety 63 Appendix 1: Key Performance

12 ESG Management 18 31 and DevelopmentControl Management and Quality 47 Energy Management Indicators (KPI) Table

57 Occupational Health Environmental KPIs

48

19 38 Water Resource Management

Social KPIs

Business Ethics Chain Management and Safety

48 Pollutant and Waste Management 66 Appendix 2: Shenzhen Stock

Exchange Guidelines Index

Information Security and

40 49 Ecosystem and BiodiversityPrivacy Protection 67 Appendix 3:

50 Circular Economy GRI Standards Index03 2025 Environmental Social and Governance (ESG) Report 04

Chairman’s Statement

The global industrial landscape is evolving rapidly amid transformation and recalibration. Sustainability has Looking ahead to the new year Absen will leverage its existing six core competencies with products as the corner-

ceased to be a mere conceptual choice and has evolved into a benchmark for measuring core corporate com- stone and strategy as the guiding force. We will deeply explore future technological transformations enhance

petitiveness. Guided by the philosophy that "operating a business well is the greatest social responsibility" we have operational efficiency and delivery quality and uphold a long-term perspective. We will systematically balance

advanced our own steady growth while committing to serve the high-quality development of society. For Absen the core interests of all stakeholders—employees customers suppliers government shareholders and communi-

the past year has been one of profound significance. In the face of market volatility and challenges Absen chose ties—and work with partners across the global value chain to build a community with a shared future. Our vision is

to adopt a contrarian approach —focusing on high-value domains refining our product mix and customer quality that every Absen screen across the globe will not only embody an ideal visual future but also manifest our unwav-

and honing our uncompromising authenticity with a technology-for-good ethos. ering commitment to sustainable development.In 2025 Absen successfully completed the renewal of its sixth Board of Directors advancing the professionalisation

and diversification of the Board. Upholding the strategic resolve to "remain vigilant in times of prosperity and act

in harmony with prevailing trends" we have strengthened risk-control safeguards through institutional rigour. We

have likewise embedded the core values of "integrity gratitude and responsibility" throughout our business

conduct and ethics framework. Absen is committed to sustaining corporate resilience through institutionalised

governance and to fostering trust in our business operations through transparent compliance. We strictly fulfil our

tax obligations to the state contributing to national fiscal revenue and public sector development while delivering

long-term stable returns to our shareholders and safeguarding their lawful rights and interests.Customer-centricity remains our unwavering commitment. We treat customer needs as the wellspring of innova-

tion and win client trust through "genuine" quality. We have refined our quality management systems forged

mutually beneficial partnerships with suppliers and provided global customers with safe reliable and green prod-

ucts together with professional audio-visual solutions. As we accelerate our "global products local delivery" strate-

gy Absen honours its commitments to every customer connecting the world through brand-anchored services.Since launching the Absen Green initiative in 2021 we have consistently spearheaded the industry's green and

low-carbon transition across six dimensions: design materials processes intelligent manufacturing health and

energy efficiency. We have introduced a range of low-power high-efficiency LED display products with certain Chairman Absen

models achieving energy-efficiency improvements of over 30%. All new products have secured international Ding Yanhui

environmental certifications such as RoHS and REACH. We are also progressively expanding the product scope

subject to carbon footprint verification. In energy management we have comprehensively optimised our energy

mix in production and actively pursued integrated photovoltaic energy storage and charging raising the propor-

tion of renewable energy used throughout the year to 11.33%. We closely align our corporate growth with the

long-term wellbeing of surrounding communities proactively embedding ourselves in community development

processes and supporting the development of green communities through diverse forms of participation

engagement and collaboration.Our employees are the core asset of the company . We firmly believe that the essence of management lies in

unlocking human potential and goodwill. We are dedicated to fostering a diverse equitable and inclusive working

environment where every employee can flourish in an atmosphere of trust and respect. Through our flagship

platform the "Zhen Ai Academy" we have opened clear pathways for talent development with average training

hours per employee exceeding 20 hours during the year. We have fully implemented our occupational health and

safety management system achieving zero workplace safety incidents. More importantly through our Employee

Stock Ownership Plan and the three-tier partnership mechanism we have transformed a greater number of

employees from "executors" into "co-owners of the enterprise."Authentic

Brilliance

Pursuit of

Excellence07 2025 Environmental Social and Governance (ESG) Report 08

About Us Business Footprint

With a global outlook Absen has assembled a high-calibre international team of professionals. Through 20

Company Profile overseas and domestic subsidiaries over 20 domestic representative offices a channel partner network of more

than 6000 entities and over 700 international sales professionals operating in more than a dozen languages we

Established in 2001 Absen (SZSE: 300389) is a global leader in LED display technology and applications. The Group achieve precise localised market reach across our target global markets forming a sales network that covers over

currently encompasses its Shenzhen headquarters the Absen Dongjiang Intelligent Manufacturing Centre and 20 165 countries and regions.subsidiaries worldwide spanning the United States Germany Japan Dubai Saudi Arabia Russia Mexico Brazil Hong

Kong SAR China and other key markets.Absen's core business focuses on advertising displays stage displays commercial displays data visualisation displays 20 20+ 6000+ 700+ 165

conference displays creative displays and consumer-grade displays. Our products are exported to 165 countries and

regions across the Americas Europe Oceania Asia and Africa with over 65000 successful installations to date. Notable Overseas and Domestic Channel International Countries

domestic subsidiaries representative offices partner network sales professionals and regions

projects include Hollywood Disney Universal Studios the FIFA World Cup the Olympic Games the UEFA European

Championship the NBA Times Square New York and major media events. For 16 consecutive years Absen has ranked

first in the industry by export value of single-brand display products.Corporate Culture

At Absen we uphold the core values of "integrity gratitude and responsibility" — speaking truthfully acting pragmati-

cally and embracing genuine character. We observe the "three no" principle: no falsehoods no counterfeiting and no

bribery. Embodying the "little bee spirit" of loyalty diligence courage and contribution we remain united in solidarity and

relentless in our pursuit of excellence delivering quality products and professional services to our customers. Absen

firmly believes that quality is the lifeline of the enterprise and we adhere to rigorous standards in material selection

every step of the production process and every detail of service so as to create maximum value for our customers.Maintaining integrity and leading the industry we at Absen are guided by the "True Brilliance" brand strategy. We are Overseas market

committed to establishing Absen as commercial civilization that promotes honesty high quality responsibility and Benefiting from years of sustained cultivation in

mutual success. overseas markets the continued advancement of

our international strategic positioning and the

Absen Core Value Triangle development of differentiated brand advantages we have successfully enhanced our competitiveness

Absen Corporate Culture V4.0 Mission

Make the World Shine More in overseas markets. Our international business

demonstrated robust growth momentum

Vision

Maintain integrity and lead the industry.Build a commercial civilization that promotes honesty

high quality responsibility and mutual success Generating operating revenue of Domestic market

approximately RMB 3.178 billion

Success is measured by meeting

Maximize the value In the domestic market against a defined targets. Speed and

for our customers efficiency are key factors for success backdrop of subdued overall demand for

Representing a year-on-year increase LED displays we achieved operating

Believe in our team Apply methodology and evaluate of approximately 8.41%

and follow the team Core Values things from a value chain perspective revenue of RMB 981 million

Honesty Gratitude Responsibility through strategic initiatives focused on

Learning ability is essential

Work hard and enjoy work focusing on premium customer segments

to problem-solving

product mix optimisation and channel

Enterprise Spirit strategy adjustments — a year-on-year

Modesty Loyalty Innovation Collaboration Responsibility Proactiveness Perseverance increase of 34.02% that reflects

successful counter-cyclical growth.Mission Vision Core Values Values Enterprise

Make the World Shine More Honesty Gratitude Responsibility SpiritMaintain integrity and lead the industry.Build a commercial civilization that Maximize the value for our customers Modesty

In pursuit of excellence we are promotes honesty high quality Honesty: Have a pure heart be

honest and trustworthy and stay Believe in our team and follow the team

committed to providing the best responsibility and mutual success Loyaltytrue to our words and firm in our Work hard and enjoy work

products and services for our actions Innovation

customers worldwide We run our business with sincerity and Success is measured by meeting

integrity seeking to develop better to lead defined targets; Speed and efficiency Collaborationare key factors for success

the industry and light up the world Gratitude: Love is the drive of life

We are the light of the world. We and gratitude is the source of love.Responsibility

Apply methodology and evaluate

want to make the world shine We are determined to build a business We should live with love become things from a value chain perspective Proactiveness

more and make people’s life civilization that promotes honesty high the love and give our love

During the reporting period the Company achieved total operating revenue of approximately RMB 4.158 billion

quality responsibility and mutual success Learning ability is essential to Perseverance

more colorful problem-solving representing year-on-year increase of 13.53%.Responsibility: To act is to fulfill

We call upon more private enterprises in

China to join hands with us in building such responsibility

a commercial civilization09 2025 Environmental Social and Governance (ESG) Report 10

During the reporting period Absen received the following major awards:

Awards and

Recognition

Chinese Management Prize in Memory of Peter Drucker International Renowned Brand

China's 500 Most Valuable Brands 2024 Golden Disclosure Award Manufacturer of the Year

China's Best Managed Companies China Patent Excellence Award Guangdong Provincial Industrial Design Centre11 2025 Environmental Social and Governance (ESG) Report 12

2025 in Numbers ESG Management

Absen continuously refines its ESG governance framework by integrating ESG performance into the annual perfor-

mance appraisal system for relevant departments. We establish quantifiable and trackable key indicators link

evaluation outcomes to remuneration and incentives and implement effective accountability mecha-

Governance Responsibility nisms—thereby generating intrinsic momentum for the sustained improvement of ESG management practices.Operating revenue increased by 13.53% YOY

An incentive fund of RMB 60 million was set aside for the Employee Stock Ownership Plan Stakeholder Engagement

The restricted stock incentive plan proposes to grant 12 million shares We place great emphasis on constructive dialogue and collaborative governance with all stakeholders. To this end we

have established a regular communication mechanism conducting stakeholder exchanges through multiple chan-

nels including periodic meetings thematic research initiatives on-site visits and consultative roundtables. Stakehold-

er expectations are systematically incorporated into strategic decision-making and day-to-day operations.Product and Service Responsibility Stakeholder Key Concerns / Expectations Response Measures

R&D investment of RMB 184 million with cumulative R&D investment over the past five years · Wage and benefit security · Refining the compensation system

reaching RMB 754 million · Occupational health and safety · Providing platforms for learning and Employees advancement

Intellectual property incentives totalling RMB 579200 were distributed · Fair promotion and career development

· Strengthening employee care and

Product safety investment of RMB 8.5626 million increased up 31% year on year · Work-life balance wellbeing initiatives

Supply chain fund management and collaboration mechanisms were optimised providing

support to 26 SME suppliers cumulatively · Protection of consumer rights and interests · Continuously improving products and

Customers · Effective response to and resolution of services

complaints · Conducting satisfaction surveys

· Information security and data protection · Enhancing customer privacy protection

Environmental Responsibility

· Fulfilment of contractual obligations in

The proportion of renewable energy reached 11.33% · Building a responsible supply chain

Suppliers accordance with law · Standardising supplier management

Carbon footprint verification completed for 90% of indoor and outdoor fixed-installation · Transparent supplier onboarding standards

products and all-in-one machines protocols· Promotion of mutual development

· Monitoring policy developments

Government · Law-abiding and compliant operations · Paying taxes in full compliance with the

Regulatory · Statutory tax payment in full law

Employee Responsibility Bodies · Protection of the local environment · Adhering to environmental protection regulations

Total investment in employee training of RMB 9663500

· Identifying drivers of profit growth

Investment in safety production at the Huizhou Manufacturing Base of RMB 1.13 million · Standardised operational risk management

Shareholders · Strengthening risk management and

Zero workplace safety incidents; zero occupational disease incidence · High-quality information disclosureInvestors internal controls

· Achieving investment returns · Conducting periodic information disclosure

· Organising investor meetings

· Contributing to local development

· Promoting community development

Community · Enhancing community value· Supporting social welfare and public

Organisations · Carrying out charitable and public

Social Responsibility benefit initiatives welfare activities

The Absen Foundation made charitable donations of RMB 1.1735 million

Public welfare and charitable activities benefited 392 individuals in total · Participating in industry summits

Industry · Strengthening industry collaboration · Leading standard-setting initiatives

Associations · Driving technological innovation · Promoting supplier energy conserva-

· Building a green supply chain

tion and carbon reduction13 2025 Environmental Social and Governance (ESG) Report 14

Materiality Assessment

Level Category 2025 Topics

During the reporting period the Company drawing upon its own operational characteristics and taking into Business ethics

account information disclosure requirements capital market ratings and industry issues of concern to peers com-

piled a materiality topic inventory. Through interviews and questionnaire surveys with internal and external stake- Economic performance

holders we prioritised and ranked the topics by materiality.Law-abiding and compliant operations

Governance

Strengthening internal control management

Product and service safety and Sustainability management

quality

Stakeholder engagement

Product and service safety and quality

Business ethics Law-abiding and

Product and technological innovation compliant operations Product and technological innovation

Safeguarding customer rights and interests

Science and technology ethics Sustainability management Supply chain management

Supply chain management Sustainable product development Information security and privacy Product & Serviceprotection Information security and privacy protectionHighly Material

Intellectual property protection Employee rights and benefits

Strengthening internal Occupational health and Topics (21) Safeguarding customer rights and interests

Energy management control management safety

Economic performance

Stakeholder engagement Intellectual property protection

Ecosystem and biodiversity Employee training and Waste management

protection Environmental compliance development Science and technology ethics

management

Equitable treatment of Circular economy

Diversity and equal Sustainable product developmentSMEs Water resource Pollutant emissions

Social contribution management opportunities Environmental compliance management

Environment

Climate change response

Waste management

Rural revitalisation Pollutant emissions

Occupational health and safety

Employee training and development

Employees

Employee rights and benefits

Diversity and equal opportunities

Energy management

Circular economy

Environment Ecosystem and biodiversity protection

Moderately Material

Materiality to Absen’s Sustainable Development Climate change responseTopics (8)

Water resource management

Social contribution

Community Equitable treatment of SMEs

Rural revitalisation

Absen Materiality Matrix

Materiality to StakeholdersIntegrity in

Governance

Stability in

Operations

Absen adheres to the corporate governance

objective of "building an internationally leading

enterprise characterised by a sound governance

structure clearly defined development strategies

robust decision-making mechanisms optimised

business processes solid financial foundations

sound operational management comprehensive

risk control and effective incentive and constraint

mechanisms." The Company continuously refines

its corporate governance framework enhances

risk prevention and control mechanisms strength-

ens end-to-end compliance management and

upholds the bottom line of business ethics—ensur-

ing sustainable development through disciplined

governance and responsible operations.17 2025 Environmental Social and Governance (ESG) Report 18

Enhancing Corporate Governance Board Diversity

In nominating and selecting directors Absen adheres to the principle of appointing on merit. The Nomination Com-

mittee is responsible for assessing candidates' capabilities comprehensively and giving full consideration to the

contribution they can bring to board diversity thereby promoting more robust and well-rounded decision-making.Absen strictly complies with the Company Law of the People's Republic of China the Securities

As of the end of the reporting period the Board of Directors comprised 9 directors in total including 3 independent

Law of the People's Republic of China and other relevant laws regulations and regulatory

directors (representing 33%) 1 female director (representing 11%) and 2 employee representative directors (repre-

requirements. During the reporting period the Company revised and improved its internal gover- senting 22%)—fully safeguarding employees' rights to participation and oversight in the Company's operational

nance framework including the Articles of Association the Independent Director Policy and the decisions. All incumbent directors possess extensive experience in the LED industry and corporate management

Internal Audit Policy thereby raising the standard of corporate governance. with deep professional expertise spanning compliance operations business management product sales produc-

tion and R&D financial auditing and other domains providing solid professional support for the formulation and

implementation of the Company's strategic decisions.Remuneration Management

Absen has established a governance framework with clearly defined roles and responsibilities. Under

the Board of Directors four specialised committees have been constituted: the Strategy Committee The Company has formulated remuneration policies including the Director Remuneration Policy and the Senior

the Audit Committee the Nomination Committee and the Remuneration and Appraisal Committee. Management Remuneration Policy and has actively pursued remuneration structure reforms to align the compen-

These committees provide professional opinions on material matters ensuring the objectivity and sation of directors and senior management with market benchmarks corporate performance individual perfor-

scientific rigour of the Company's decision-making process. mance and sustainable development objectives.To strengthen the long-term incentive mechanism attract and retain outstanding talent Absen formulated and

implemented the 2025 Restricted Stock Incentive Programme in accordance with the principle of matching returns

with contributions. Incentive funds of RMB 50 million RMB 40 million and RMB 60 million were set aside under the

General Meeting of

Shareholders 2022 2023 and 2025 Employee Stock Ownership Plans respectively with the Company's partners as beneficiaries.Audit Committee The partnership mechanism more closely links the Company's operating performance with remuneration effec-

tively aligning the interests of shareholders partners and employees under a shared objective thereby stimulating

Remuneration and partners' enthusiasm for innovation and entrepreneurship and supporting the Company's medium- and

Assessment Committee

long-term strategic development.Board of Directors Board Office

Strategy Committee Investor Protection

The Company strictly operates in accordance with the Investor Relation Management System the Articles of Asso-

Nomination Committee ciation the Shareholders' Meeting Rules of Procedure and other governance frameworks effectively safeguarding

Management the legitimate rights and interests of shareholders and the equal rights of minority investors. Through shareholders'

meetings and streamlined voting arrangements for minority shareholders the Company ensures all shareholders'

right to participate in decisions on material matters.Absen strictly fulfils its information disclosure obligations in accordance with regulatory requirements ensuring

timely accurate and complete disclosure thereby safeguarding shareholders' right to know. At the same time the

Absen Corporate Governance Structure

Company enhances communication and engagement with investors through platforms such as the Shenzhen

Stock Exchange's Interactive Easy platform the Company's official website investor hotlines investor email on-site

research visits and results briefings.In 2025 Absen held a total of 6 shareholders' meetings 11 Board of Directors meetings 7 Audit During the reporting period the Company conducted a total of 5 annual results presentation meetings and investor

Committee meetings 5 Remuneration and Appraisal Committee meetings 2 Strategy Committee research activities responded to 19 investor inquiries on the Interactive Easy online platform and engaged exten-

meetings and 3 Nomination Committee meetings diligently fulfilling its corporate governance sively with both institutional and individual investors—actively safeguarding investor interests and delivering

reasonable returns to investors.responsibilities and safeguarding the long-term steady development.19 2025 Environmental Social and Governance (ESG) Report 20

Enhancing Internal Control Management Risk Management

Absen relies on a systematic and professional risk management framework to precisely identify

scientifically assess and effectively respond to a wide range of internal and external risks and chal-

Absen continues to strengthen its internal control system covering all operational levels and aspects. lenges. The Company has formulated the Comprehensive Risk Management System the Risk Identifi-

Through precise risk assessment efficient control activities and comprehensive internal oversight the Com- cation Analysis and Response Process the Business Continuity Management Manual and the Internal

pany ensures a solid foundation for sound business operations. Reporting System for Major Emergencies among other policies. These establish the three lines of

defence—business functional and audit—clarify accountability for risk management across all

domains apply the probability and impact of risk occurrence as assessment criteria and task profes-

sional teams with coordinating the implementation of risk response measures thereby embedding

Compliance Management risk prevention into routine operations in a standardised manner.Absen has established a comprehensive professional and coordinated compliance governance framework.In 2025 the Company comprehensively identified and systematically assessed risks across key areas

including strategy market operations finance and legal. The Company has integrated risk manage-

ment requirements into organisational performance appraisals and established a stringent loss

The Board of Directors establishes the direction The Legal Department serves as the central accountability mechanism. For risk events such as information leaks and budget expense ratio devia-

and principles for compliance management compliance coordination body. Each functional tions graded deductions are applied based on the amount of loss and the magnitude of deviation

makes decisions on material matters and department acts as the compliance focal with clear assessment criteria for responsible leaders and departments. Similarly audit issues major

convenes the Risk Management Leading Group point for its respective domain independently

product quality incidents and safety incidents are subject to quantified deductions based on the cost

to oversee compliance affairs ensuring the undertaking responsibilities including system

allocation of compliance resources and the development review and approval risk of the incident and the outcome of accountability determinations. In 2025 the Company experienced

effectiveness of implementation. control supervision and inspection no material risk events effectively safeguarding operational stability.training and awareness cam-

paigns and issue remediation. Absen actively fosters a risk management culture and company-wide risk awareness. In 2025 the

Decision- Management

Making Tier Tier Company reviewed and compiled typical risk cases from the past decade developed dedicated risk

management training materials and delivered intensive training sessions to all sales personnel

thereby elevating risk identification and management capabilities throughout the entire business

process.Execution Supervision

Each business department Tier Tier The Audit Department

subsidiary and project unit serves independently conducts compli-

as the primary responsible entity for ance audits internal control evalua-

compliance execution rigorously implement- tions and special reviews providing indepen-

ing compliance requirements across all dent supervision and objective assessment of

functions conducting routine self-audits the effectiveness of compliance management

proactively reporting risks and closing the loop across all business lines with direct reporting to

on issue remediation. the Board of Directors / Audit Committee.Absen Compliance Governance Structure

In 2025 Absen launched a dedicated compliance column on its internal "Bee Community" platform issuing monthly

compliance risk alerts to all employees to enhance compliance awareness and risk management capabilities.21 2025 Environmental Social and Governance (ESG) Report 22

Business Ethics Whistleblowing Mechanism

Absen has promulgated the Whistleblowing Management System which articulates the Company's zero-tolerance

stance on misconduct and establishes a comprehensive mechanism for case intake investigation and

closed-loop remediation.Absen consistently embeds the core values of "integrity gratitude and responsibility" into the foundations

of business ethics. The Company has established a systematic anti-fraud mechanism and accessible

Upon receiving or identifying leads concerning commercial bribery embezzlement or similar misconduct the Audit

whistleblowing channels in its cooperation with suppliers upholds ethical standards as a foundation for

Department conducts an immediate preliminary verification. For cases meeting the criteria for formal investigation

building a responsibility-sharing community across the supply chain.a full inquiry is initiated upon approval during which evidence is gathered and an investigation report is prepared.Based on the findings the Audit Department works in conjunction with the Human Resources Department to hold

those involved accountable in accordance with applicable laws and regulations. Where management gaps or

Anti-Corruption policy deficiencies are identified during the investigation remedial recommendations are proposed and responsi-

Absen has issued a series of supervisory and management policies including the Whistleblowing ble departments are required to implement corrective actions. The system also explicitly provides for whistleblower

Management System the Conflict of Interest Management System the Blacklist Management Mea- protection and incentive mechanisms ensuring that reporting channels remain accessible secure and effective

thereby upholding the Company's clean business environment.sures the Gift Management Measures and Absen's Nine Prohibitions as well as codes of conduct such

as the Integrity Cooperation Agreement the Integrity Declaration and the Integrity and Self-Discipline

Commitment. These instruments cover all internal employees and external partners and are designed Absen Whistleblowing Channels

to foster a clean transparent and straightforward business environment.Phone 13823753868 WeChat 13823753868 (Integrity Absen)

Absen adheres to a "zero-tolerance full-coverage no-exceptions" principle in addressing corruption

and takes firm action against corrupt practices. Audit Department Director Absen Co. Ltd.Email Postal Mail 20/F Building 3A Tianan Yungu Bantian 5198@absen.com Longgang District Shenzhen China

In terms of prevention the Company has established a tiered and categorised integrity culture training

mechanism covering new employee onboarding ongoing education for existing staff and integrity

briefings for external partners. At the same time integrity reminders are disseminated through platforms Whistleblower Protection Mechanism

such as OA and the Bee Community to reinforce risk prevention at key junctures. During the reporting period

67% of the Company's directors participated in anti-bribery and anti-corruption training while manage-

ment and employees achieved 100% coverage. Absen's Whistleblowing Protection Policy explicitly provides for a whistleblower protection mechanism

including:

In terms of monitoring internal and external reporting channels are made publicly available and regu- Strict confidentiality of whistleblowers' personal information—including name work unit and home

larly promoted. For high-fraud-risk areas including sales procurement R&D service quality warehousing address—as well as the content of their reports.and equipment the Company has developed and applied a "Fraud Risk Map" encouraging business When receiving reports or conducting verification interviews with whistleblowers all communications

departments to optimise controls through policy and process improvements. shall be carried out with due confidentiality measures in place without exposing the whistleblower's

identity. The results of investigations and information concerning the subjects under investigation shall

not be disclosed.In terms of enforcement the Company adheres to the principle of "investigating every case and holding

every violation to account" handling corruption and fraud in strict accordance with laws and regulations.This creates a robust deterrent environment and comprehensively reinforces the integrity and compliance Regardless of whether a report is signed or anonymous once verified to be true the Company will

provide appropriate material rewards to the whistleblower.defences.In supplier management the Company has incorporated corporate social responsibility clauses and

integrity provisions into procurement contracts and requires suppliers to separately sign the Integrity During the reporting period the Company received a total of 5 whistleblowing leads concerning commercial

Cooperation Agreement. This measure has effectively strengthened anti-corruption risk controls across bribery corruption and fraud. Of these 4 cases were substantiated and 7 individuals were disciplined in accor-

dance with applicable regulations and policies. Among them 2 were referred to judicial authorities and 4 had their

the supply chain and fostered a fair transparent and trustworthy working relationship.employment contracts terminated demonstrating the Company's unwavering zero-tolerance stance in upholding

the integrity and compliance framework.Precision in

Products

Empowered

by Innovation

With a global development footprint Absen

continues to deepen its intelligent transformation

and upgrading builds a high-calibre pipeline of

innovative talent and continuously strengthens its

core technological innovation capabilities to

deliver higher-quality smarter LED display prod-

ucts and solutions to customers worldwide. The

Company consistently generates innovation

outcomes that deliver both industrial and social

value leading the sustainable development of the

industry through technological advancement.25 2025 Environmental Social and Governance (ESG) Report 26

Product and Technological Innovation Key Priorities of Absen’s "Technology Leadership Implementation" Programme

The Company attaches great importance to the development of an innovative R&D management system Five Core Technological Core Three-Year Technology

continuously consolidates its core advantage of technological leadership strengthens the development and Innovation Themes Content Development Targets

reserve of R&D talent pools and deepens industry-university-research cooperation. Meanwhile the Company

has built an intellectual property protection framework adheres to the fundamental principles of scientific Develop the first-generation model for

and technological ethics and compliance and comprehensively ensures that R&D and innovation work Improve product reliabili- mechanical and thermal simulation

progresses steadily in a standardised and efficient manner. Innovation in ty reduce development prediction and optimisation; drive the

Mechanical Design and production costs completion of the first round of theoreti-

and Simulation and provide fundamental cal optimisation verification for key

Optimisation support for lightweight products; and achieve large-scale

design rollout of cost reduction and efficiency

Technology Leadership Strategy improvement

With "anchoring commercial value through technological leadership" as its core guiding principle Absen has

established "maintaining technological leadership" as its primary core competitiveness and continuously iterates Achieve ultimate breakthroughs in Innovation in Deliver high-performance electronic performance strengthen the

and upgrades its R&D and innovation strategy. In 2025 the Company conducted a systematic review of the major Electronic display and efficient energy industry-leading technological advan-

market segments targeted by its technology leadership strategy and continuously strengthened its capabilities in Technology management and meet the tages of core products and deliver a

technological R&D and engineering implementation. To drive the precise implementation of the technology and Control demand for intelligent control revolutionary convenient intelligent

leadership strategy the Company has formulated differentiated technology targets for different product lines: Systems in complex scenarios interaction experience to users through

innovative control systems

Advertising Display Products Professional Audio-Visual (ProAV) Products Stage Rental Products Innovation in Infuse products with intelli- Develop AI value-added solutions for

AI Algorithm gence expand value-add- specific industries and achieve com-

Centred on the core proposition Focused on delivering system-level With an in-depth focus on deliver-

Research and ed services and explore mercial rollout driving growth in

of stability and energy efficiency solutions defined by simplicity and ing exceptional user experience

Application new business models service-based businesses

the Company strives to set indus- stability the Company continuously and image quality the Com-

try technological benchmarks in enhances the technical integra- pany optimises artistic presen-

the fields of energy performance tion capabilities of its end-to-end tation and operational conve-

and reliability. solutions. nience through technological Deepen research on image quality tech-

innovation. Deliver the ultimate visual nologies in segmented scenarios meet

Innovation in

experience address core users’ differentiated demands for image

Image Algorithm quality establish an image quality stan-

industry pain points and

Research and dard system covering mainstream

build differentiated prod-

Application high-end application scenarios and

uct advantages build core competitive advantages for

the Company’s high-end products

Meanwhile the Company has further defined five core technological innovation themes set three-year technol-

ogy development targets and strives to streamline the end-to-end pipeline from cutting-edge technology

research to product engineering realisation ensuring that core technological breakthroughs are effectively Improve the performance

Innovation in Build an advanced Micro LED technology

translated into improved product performance and can deliver tangible value to users. of LED products in terms of

Material and system and products with independent

luminous efficacy colour

Optical Technology intellectual property rights and achieve

and lifespan and consoli-

Application major breakthroughs in key areas such

date the mass production

(including as optical performance reliability

feasibility of Mini/Micro LED

processes) slimness and flame retardancy

technologies27 2025 Environmental Social and Governance (ESG) Report 28

R&D and Innovation Management R&D Team Development

Focusing on optimising process efficiency and strengthening institutional support Absen continues to advance the The Company has established channels for recruiting innovative talent and is committed to building a high-cali-

development of its product and technological innovation management system and has formulated and improved bre high-level scientific research and innovation team providing solid talent support for technological break-

core management documents such as the Product Development Project Management Specification ensuring that throughs and product iteration and upgrading.a set proportion of annual operating revenue is allocated to R&D. Meanwhile the Company has built a full-process

Integrated Product Development system spanning market demand identification to product technology imple-

mentation forming a closed-loop management mechanism for R&D and innovation. In 2025 the Company carried

out systematic optimisation of the Technology Development process within the Integrated Product Development High-End Talent Introduction Reserve Talent Development

system clarified the R&D orientation anchored in market demand accelerated the implementation and application

of technological achievements and promoted the in-depth adaptation of technology development to business In April 2025 the Company formally signed a postdoctoral In 2025 the Company carried out campus

scenarios and its precise alignment with user needs. These efforts have further improved R&D efficiency and joint training agreement with the Chinese University of Hong recruitment activities at multiple key

achievement conversion rates providing solid support for the continuous advancement of the technology leader- Kong Shenzhen and established a Shenzhen Postdoctoral universities including Southern University

ship strategy. Innovation Practice Base committed to cultivating com- of Science and Technology continuously

pound high-level talents with both academic depth and advancing the recruitment of outstand-

In 2025 the Company’s R&D investment amounted to RMB 184 million with cumulative R&D investment reaching engineering practice capabilities. As at the end of the ing fresh graduates promoting the

RMB 754 million over the past five years. reporting period the Company had successfully recruited 3 renewal and iteration of its talent team

Core Innovation Achievements doctoral talents from renowned domestic and international optimising the personnel structure of the

universities focusing on strengthening theoretical research product R&D system and invigorating

In 2025 focusing on cutting-edge technology directions such as Micro LED display the Company continued to capabilities in core technological fields such as structural the R&D team.increase R&D investment made breakthroughs in multiple key technological areas and promoted the transition of design simulation.core innovation achievements from laboratory development to mass production application. Meanwhile the Com-

pany has deepened its application of artificial intelligence technology forming a "dual-engine" development

pattern of internal empowerment and external exploration promoting the deep integration of AI technology with

the Company’s operations and product scenarios and achieving dual enhancement of technological value and Industry-University-Research Cooperation

commercial value.The Company deepens industry-university-research collaborative innovation and carries out practical coopera-

Micro LED Segment Artificial Intelligence Segment tion with universities including South China University of Technology and Xidian University. It conducts joint research

on key technological directions including structural optimisation thermal design and lightweighting actively

Rollout of panel packaging technology: The Compa- Internal intelligent management: The Company has

ny’s independently developed new-generation HTB built the "AI Dr. Ai" intelligent agent platform which promotes the transformation of scientific research achievements explores a funding application mechanism for

packaging technology has officially entered the mass enables interconnection across 18 information research projects and continuously improves the university-enterprise collaborative R&D system.production transition phase. It significantly improves systems breaks down data silos within internal

the contrast ratio and light extraction efficiency of systems and advances cross-system data collabo-

display panels further optimising core product perfor- ration and the intelligent upgrading of office In cooperation with South China University of Technology the project achieves Ultra-Thin Double-Sid-

mance. workflows. lightweight product design while ensuring structural strength through simulation ed Screen Structural

Application of hybrid driving technology: The Compa- External commercialisation exploration: The Company analysis and material selection optimisation reserving key technologies for the R&D Optimisation Project

ny’s self-developed PWM+PAM hybrid driving technol- actively promotes the deep integration of AI technolo- of next-generation products.ogy has been successfully applied to Micro LED panels gy with LED display scenarios focusing on developing

enabling precise regulation of brightness and colour two innovative applications: the AI Virtual Dressing

and consolidating the Company’s core technological Solution and the AI Meeting Assistant.NT Series Product

Forward-looking intelligent agent deployment: Conducting finite element analysis and topology optimisation in collaboration with advantages. The

Strength Analysis

Launch of core products: Xidian University the project effectively reduces product weight on the premise of The Company has success- Company has officially commenced planning for the

and Lightweight ensuring quality and performance and improves convenience in transportation

fully launched the CL V3 series its flagship image "Xiao Ai Assistant – LED Screen Intelligent Steward"

Design Project and installation.quality product line equipped with the new HTB pack- intelligent agent project. Dedicated to upgrading

aging technology and PWM+PAM hybrid driving display screens into intelligent terminals with

technology. This series attains world-leading self-sensing and self-adjustment capabilities the

standards across all core image quality dimensions Company continues to explore the market prospects Thermal Analysis and Addressing the thermal dissipation demands of complex outdoor application

including colour gamut coverage contrast ratio colour of AI technology empowering hardware products. Design Optimisation scenarios the Company carries out thermal-fluid coupling simulation analysis with

reproduction accuracy refresh rate and frame rate. Project for Bare-Mount- South China University of Technology to optimise the thermal dissipation structure

ed Outdoor LED Displays

in Buildings solution ensuring stable product operation in high-temperature environments.Absen Shines at International Exhibitions and Wins Multiple Product Innovation Awards

In February 2025 Absen participated in Integrated Systems Europe 2025 (ISE 2025) showcasing a range of products In cooperation with South China University of Technology the project conducts

Large-Screen Thermal

including KLCOB V2 CPS Smart Screen X A25 NT V2 and AbsenLive. The Company was awarded the Manufacturer of the systematic thermal simulation and structural optimisation focusing on the thermal

Dissipation Analysis

Year grand prize while the CPS series and AbsenLive SA-C series won the ISE Best Display Product Award. In March of the dissipation requirements of large screens for key projects effectively reducing the

and Design Optimisa-

same year the Company exhibited at the ISLE 2025 International Smart Display and System Integration Exhibition show- operating temperature of core devices extending equipment service life and

tion Project

casing core products such as KLCOB V2 CPS NT and Smart Screen X. The A25 series won the Golden Display Award and ensuring smooth project delivery.its benchmark project for the Paris Olympic Games won the Application Engineering Grand Award.29 2025 Environmental Social and Governance (ESG) Report 30

Industry Exchange In addition the Company is deeply involved in formulating industry standards and technical

specifications committed to guiding technological directions and improving the industrial eval-

Absen is deeply committed to the development of the industry ecosystem deepens communication and strategic uation system. It fosters industry-wide synergy with an open win-win approach and jointly

cooperation with upstream and downstream partners across the industrial chain proactively participates in key promotes technological iteration standard improvement and high-quality transformation and

events such as industrial seminars and industry exchange conferences and actively shares technological upgrading of the LED display industry. In 2025 the standards led or participated in by the Com-

achievements and practical experience. pany are as follows:

Absen Attends the National LED Industry Seminar Type of Standard Standard Name Participation Role

In September 2025 Absen participated in the 19th National LED Industry Development and Technology Requirements and Inspection Methods for LED

National Standard Participated in formulation

Seminar. Centred on the theme of "New Technologies Driving the Transformation and Upgrading of the LED Displays in Stadiums and Gymnasiums

Industry" the Company shared its HDR display technology breakthroughs and LED image quality evalua-

tion system. Two papers submitted by the Company – LED Image Quality Evaluation Scheme Based on

Perceptual Consistency and Industrialisation Path of Micro LED for Large-Size Display: Challenges and Industry Standard Technical Specification for Ultra-High Definition Participated in formulation

Innovations – both won the second prize demonstrating the Company’s strong technological R&D capa- Light Emitting Diode (LED)Display Systems

bilities.Energy Conservation Evaluation Specification for Led the formulation

Micro LED Displays

Association Standard

Mini LED Indoor Commercial Displays Participated in formulation

Sustainable Products

Absen officially launched the "Absen Green" initiative in 2021 fully integrating the concepts of green and low-car-

In October 2025 Absen participated in the 2025 TrendForce Self-Luminous Display Industry Seminar discussing bon development energy conservation and environmental protection into the entire production and operation

hot topics of industry development alongside leading display enterprises experts scholars and representatives process. Guided by this initiative the Company continues to advance the R&D and manufacturing of sustainable

from across the industrial chain products embeds sustainability concepts at early product design stage proactively selects eco-friendly raw

materials and promotes the application of energy-efficient safe and reliable advanced technologies effectively

reducing the lifecycle impact of products on the ecological environment and human health.Materials

Higher standards

Less pollution

Manufacturing Processes

More green

energy Higher efficiency

Lower carbon Less waste

emissions

With its outstanding operational and management As a " Class A Co-authoring Unit" Absen was Green

capabilities leading COB display technology and deeply involved in compiling the 2025 Global Energy Design

Conservation More attention

benchmark projects such as the world’s largest COB LED Display Research White Paper actively Higher quality to detail

curved screen and the world’s largest single-unit LED contributing technical insights and practical Lower energy Less environ-

consumption mental impact

virtual production studio Absen won four major cases Health

honours at the Expert Aurora Awards More protection

Less hazard31 2025 Environmental Social and Governance (ESG) Report 32

Sustainable Product Design Sustainable Product Use

During the product design and development phase the Company has established and improved new product Focusing on the application demands of multiple scenarios the Company continues to develop green products

introduction procedures and manufacturability review specifications ensuring the large-scale application of with high energy efficiency and low energy consumption and systematically promotes product carbon footprint

green low-carbon cost-effective and efficient design solutions across all product series through these systematic verification making every link from creation to operation of each display more environmentally friendly. Leveraging

processes. The Company strictly complies with international raw material standards fully adopts green and multiple core technologies such as black screen energy saving common cathode energy saving dynamic energy

non-toxic materials and promotes modular design reducing environmental impact while improving product saving and flip chip energy saving the Company achieves an overall energy saving effect of approximately 35%

maintenance efficiency. enabling low-carbon operation of products in all aspects. In 2025 the Company made new breakthroughs in prod-

uct energy-saving technologies. Through multi-dimensional innovations such as optimising the luminous efficien-

cy of LED lamps upgrading driving solutions and enabling the power-saving mode of driver ICs the A25 series

Raw Material Management

achieves approximately 50% lower energy consumption than domestic similar products under full-scenario

dynamic energy saving significantly reducing the environmental impact of products during the use phase.Strictly complying with international standards such as the EU Restriction of Hazardous Substances Directive

(RoHS) the Company exercises strict control over hazardous substances such as lead mercury and cadmium

in product raw materials. As at the end of the reporting period all product series of the Company comply with End-of-Life of Sustainable Products

the latest requirements of the RoHS 2.0 Directive (2011/65/EU).Adhering to the concept of circular economy the Company has established a standardised recycling and disposal

The Company has obtained IECQ QC080000 Hazardous Substance Process Management System certification mechanism for end-of-life products which proactively guides and provides customers with services such as

ensuring the systematicness and traceability of hazardous substance control. professional recycling compliant disposal refurbishment and functional upgrading thereby promoting the

The Company fully adopts eco-friendly materials such as lead-free solder paste green polymer packaging resource reuse of components and materials maximising product service life and utility and effectively reducing the

materials and halogen-free flux continuously advancing the green upgrading of production processes proac- generation of e-waste.tively replacing high-risk hazardous substances and controlling and reducing the use and discharge of toxic Renew and Upgrade: Circular Renovation Practice for Large LED Displays

and hazardous substances at the source.In September 2025 the Company provided old display refurbishment and upgrading services for the large LED

Modular Design display at Shenzhen Tian’an Cloud Park. Addressing issues such as poor display performance and high energy

consumption of the original large display at the end of its lifecycle the Company implemented overall refurbish-

The Company has established a closed-loop feedback mechanism between the R&D and process sides feeding ment while retaining the main steel structure. During the project the Company adopted professional disassembly

quality experience back into product design and focusing on promoting the modular development of key com- and standardised installation procedures and replaced the modules with energy-saving A1025 series modules.ponents such as waterproof modules and welded copper pillars effectively improving the feasibility of product After the renovation the display achieved significantly improved brightness and resolution with energy consump-

design and production quality. tion reduced by over 50% greatly saving the client's operating costs reducing e-waste generation and realising

resource recycling. The project delivers multiple benefits including visual upgrade cost reduction and efficiency

Products adopt a structural design with independently detachable cabinets and panels which greatly improves

improvement and environmental protection.on-site maintenance convenience and operation and maintenance efficiency and extends product service life.Sustainable Product Manufacturing

Absen implements the management philosophy of full-process refinement and circular economy integrating

green and low-carbon practices into every aspect of production and operation. In terms of energy management

the Company promotes systematic energy efficiency improvement and clean energy substitution continuously

reduces unit energy consumption in production processes through intelligent scheduling and production process

optimisation and actively deploys photovoltaic power generation in manufacturing facilities to improve the energy

mix. In water resource management the Company focuses on building a closed-loop recycling system to increase

the recycling rate of process water. For production waste it strictly implements full-chain classified management

and control ensuring 100% compliant disposal of hazardous waste. In the areas of waste gas treatment and dust

emission reduction the Company combines source transformation with end-of-pipe treatment to achieve compli-

ant emissions and significantly reduce pollutant release. These initiatives collectively form the core practice direc-

tion of Absen’s sustainable product manufacturing.33 2025 Environmental Social and Governance (ESG) Report 34

Intellectual Property Protection Bonus Incentives

Absen strictly abides by relevant laws and regulations such as the Patent Law of the People’s Republic of China the

Patent application rewards: After a patent application is submitted and an acceptance notice is received

Copyright Law of the People’s Republic of China and the Trademark Law of the People’s Republic of China. In accor-

dance with the national standard Code of Intellectual Property Management for Enterprises the Company contin- rewards are given to the inventor or designer.uously optimises its intellectual property (IP) management system comprehensively advances IP creation man- Patent authorisation rewards: After a patent is granted an authorisation certificate rewards are given to the

agement utilisation and protection effectively prevents IP risks fully stimulates the innovation dynamism of R&D

inventor or designer.personnel and realises scientific management and strategic application of intellectual property.Patent implementation remuneration: During the term of the patent right a fixed-amount implementation

remuneration is given to the inventor or designer.Intellectual Property Management

Software copyright registration rewards: After software copyright registration is completed rewards are given

The Company has formulated management documents such as the Intellectual Property Management Measures

to the author.and the Concept Phase Process for Technology Development Projects clarifying core elements such as manage-

ment responsibilities management measures reward and punishment implementation standards and risk identi- Integrated circuit layout design rewards: After integrated circuit layout design registration is completed

fication procedures related to intellectual property. In 2025 the Company obtained certification for the IP compli- rewards are given to the designer.ance management system under the Code of Intellectual Property Management for Enterprises further consolidat-

Patent drafting related rewards: Special rewards are given to patent engineers of the intellectual property team

ing the standardised and systematic management of intellectual property.who draft patent application documents.The Company strengthens IP risk management and control deeply integrates IP management into the product Special Contribution Incentives

development process and carries out IP risk identification simultaneously with the advancement of R&D projects.The Company has established an IP management team conducts patent searches in line with business develop- Annual patent star reward: The top three employees with the highest patent contributions are selected and

ment and R&D demands and produces Intellectual Property Analysis Reports to provide scientific and reliable granted monetary awards.professional support for the Company’s R&D decision-making. In addition the Company collaborates with external Intellectual property professional development reward: In alignment with local operational management

professional institutions to conduct Freedom to Operate analysis effectively preventing various IP infringement requirements cultivation incentives are applied for and disbursed to intellectual property professionals.risks and effectively safeguarding the Company’s legitimate IP rights and interests.Absen Intellectual Property Incentive Mechanism

Intellectual Property Incentives

Based on its own development reality and industry best practices the Company revised the Intellectual Property Intellectual Property Profile

Management Measures raised the reward standards for invention patents and added special contribution awards Indicator Data (units)

such as the Annual Patent Star Award and IP Professional Talent Development Award further stimulating the

innovation enthusiasm of R&D personnel and strengthening incentives for IP achievements. During the reporting Invention patents 99

period the Company issued a total of RMB 579200 in intellectual property incentives.Number of Patent Utility model patents 93

Applications in 2025

Design patents 10

Recognition and Incentives

Total 202

Promotion rewards: Employees with outstanding performance in intellectual property work are given priority for Invention patents 24

promotion under equal conditions.Number of Granted Utility model patents 123

Performance rewards: Employees who have been granted patent authorisations receive extra points in talent Patents in 2025 Design patents 15

selection and performance appraisal.Total 162

Honorary rewards: Employees who have been granted invention patent authorisations or made outstanding

Total cumulative valid patents by the end of the reporting period 632

contributions to technological innovation are awarded certificates conferred with corresponding honorary titles

and publicly commended.In May 2025 Absen won the China Patent Excellence Award issued by the National Intellectual Property Administration

for its patent Support Frame and LED Display System Including the Support Frame.36 2025 Environmental Social and Governance (ESG) Report 36

Science and Technology Ethics Product Quality Management

Absen attaches equal importance to technological innovation and scientific and technological ethics. In the The Company has established a quality management structure with clear roles and responsibilities. The Quality

process of product R&D and application the Company proactively identifies and prevents potential ethical risks at Department takes the lead in formulating the Company’s quality objectives and establishing supporting assess-

an early stage values user health and safety continuously strengthens data usage standards and user privacy ment mechanisms continuously promoting the achievement of the Company’s overall quality objectives. The

protection pays attention to the environmental impact of products and fosters an industry ecosystem of fair com- Quality Department has six secondary departments under it responsible for coordinating various specialised

petition ensuring that technological innovation meets market demands while aligning with scientific and techno- quality control initiatives forming an end-to-end quality management system centred on R&D supply production

logical ethical values. sales and service.Quality Department

Product Safety and Health Ethics

Strictly controlling potential impacts such as blue light radiation and electromagnetic radiation from LED display

Design Quality Department Panel Quality Department Customer Quality Department

screens the Company ensures all relevant products have obtained multiple international safety certifications

safeguarding users’ safety and physical health.Incoming Quality Department In-Process Quality Department Quality System

For products deployed in high-traffic scenarios flame-retardant materials and processes are uniformly adopted to

minimise fire safety hazards.Absen Quality Management Structure

Customer Privacy and Data Security Ethics

In 2025 focusing on product quality improvement the Company newly developed 60 quality management-related

The Company explicitly follows core principles such as data minimisation and local processing standardises documents fully covering core areas such as Integrated Product Development Integrated Supply Chain and Qual-

the entire process of data collection storage and use and effectively protects user privacy and data security. ity Control further improving quality management specifications for all stages of the product lifecycle. The Com-

pany continuously improves the construction of its quality management system and actively promotes quality

management system certification.Environmental Ethics

Quality planning is conducted using the Integrated Product Development process methodology

The Company actively develops and promotes low-energy-consumption energy-saving and eco-friendly with key quality activities standardised and quality delivery requirements clarified to ensure

Design Stage

products and conducts product carbon footprint verification for multiple product series to reduce the environ- closed-loop management of all quality risks. All products must pass safety certification before

entering the mass production stage.mental impact of products.The Company enforces strict quality inspections on raw materials covering all key inspection

Industry Ecosystem and Fair Competition Ethics Incoming

Inspection Stage dimensions such as product appearance structural dimensions functional testing performance

The Company proactively advocates for and initiates the formulation of industry-related standards promoting testing photoelectric testing RoHS testing and reliability ensuring product quality at the source.the standardised development of the industry.It strictly safeguards the intellectual property rights of itself and its partners adheres to the bottom line of fair The Company has strengthened quality control during the production process and strictly

Production implements finished product inspection procedures covering order requirement confirmation

competition and jointly builds a healthy and orderly industry ecosystem. Process Stage

product appearance functional testing performance photoelectricity structure packaging and

other aspects to ensure process quality meets standards.Product and Service Safety and Quality

The Company strictly implements pre-shipment inspection

Pre-Shipment standards conducting special inspections on product appearance

Inspection Stage

Absen adheres to a customer-centric approach strictly abides by industry standards and compliance display effect photoelectric parameters software control structural

parameters safety performance and other aspects to control the

requirements continuously strengthens product quality and safety assurance capabilities and builds a

quality of shipped products and ensure delivered products meet

full-process quality control system and safety risk prevention mechanism. We continuously optimise service quality standards and customer requirements.processes and improve service quality and effectively protect customer rights and interests with safe

reliable high-quality and efficient products and services. ISO 9001 Quality

Absen Quality Management Process Management System Certification37 2025 Environmental Social and Governance (ESG) Report 38

Product Safety Assurance Product Health Assurance

The Company conducts in-depth assessment of the potential health and safety impacts of various products and continu- In the fields of photobiological safety and light pollution prevention and control the Company has established an

ously develops and manufactures safe stable and high-quality products. As at the end of the reporting period the internal technical standard system that is higher than national standards and stricter than international standards.Company’s products have obtained safety certifications in nearly 40 countries and regions including China the EU the US With "Care + Comfortable Vision" and "Absen Green" as core design concepts the Company achieves multi-di-

Latin America and Southeast Asia covering more than ten authoritative international and domestic standards ensuring

mensional and all-round protection for human health residents’ lives traffic safety and the ecological environment

that products comply with relevant product safety requirements of the countries and regions where they operate.through core initiatives such as optical innovation intelligent control and system integration.Focusing on the key safety control points of display products such as structural safety fire resistance waterproofing and

electric leakage protection the Company strictly complies with domestic and international standards and has established

a safety protection system covering "core material selection – design factor control – reliability test verification – installa- Core Management Specific Contents

Dimension Initiatives

tion standard implementation – full-lifecycle maintenance" to ensure safe and reliable product operation.In 2025 the Company’s investment in product safety reached RMB 8.2634 million a year-on-year increase of 26%.Internal The blue light hazard safety level of all product series reaches the RG0

standard hazard-free level which can achieve retinal safety protection under

control unlimited exposure time fully protecting human visual health.Safety Protection

System Core Safety Assurance Measures Risk Type

Precise control By optimising chip selection and packaging processes the proportion

Key components all meet UL94-V0 flame retardant requirements; wires of blue light of energy in the peak hazardous blue light band is effectively reduced

Core material additionally pass VW-1 or FT1 tests; housings adopt flame-retardant alumini- band lowering blue light hazards.selection um alloy or flame-retardant ABS materials fully eliminating flammable Fire risk

components. Third-party professional institutions are entrusted to test products in

Dual blue light accordance with the IEC 62471 standard and an internal blue light AW series products adopt fin-shaped heat dissipation design physically isolating hazard testing laboratory has been established with additional

the heat dissipation air duct from the circuit area to avoid safety hazards caused by Human health detection assessment items on retinal thermal hazard and rhythm disturbance

heat conduction; high-end products such as the A25 series adopt bare passive mechanismFire risk to ensure that blue light radiation of products remains below the

natural heat dissipation or fan-free forced air cooling natural heat dissipation safety threshold throughout the lifecycle.design to avoid local overheating of products.Die-cast aluminium alloy / galvanised steel cabinets are selected to For indoor fine-pitch and control room display products blue light Special control

enhance product structural safety; high-end products such as the A25 series hazard values are strictly controlled which can meet users’ long-time for key products

adopt lightweight design maintaining excellent structural strength while Structural viewing needs and reduce visual fatigue and health risks.reducing weight. safety risk

For products used in special scenarios such as education and

Customised product design solutions are provided according to the environ- Special control for healthcare additional assessment of blue light rhythm disturbance

Design factor mental characteristics of different regions to enhance wind and seismic Extreme special scenarios coefficient is conducted to effectively protect the physical health of

control resistance; for coastal environments products are treated with salt spray environment adolescents and special groups.resistant coatings to improve environmental adaptability. risk

Night protection standards stricter than national standard require-

The power module is built with flame-retardant fuses the driver board is Precise control of ments are implemented with clear requirements for automatic

equipped with thermal fuse protection devices and the system has automatic Electric residential light reduction of product brightness below specified values during

power-off functions under over-current over-temperature and short-circuit leakage risk intrusion specific periods supporting multi-level brightness adjustment by

conditions effectively preventing components from overheating and catching

Residents’ lives time period to reduce interference with residents’ lives.fire and ensuring safe circuit operation.The whole machine adopts an integrated front and rear sealed waterproof Night colour Products are switched to warm colour temperature mode at night

structure and modules are independently sealed. The protection rating of Electric temperature reducing the proportion of blue light by 60% effectively reducing the

mainstream products reaches IP65 and high-end products such as the A25 leakage risk control impact on the sleep quality of surrounding residents.series are upgraded to IP66 fully sealed protection which can effectively prevent

water vapour infiltration and electric leakage risks.Ultra-black coating and anti-glare structural design are adopted to

Glare value ensure that the glare value from the driver’s perspective is far below

Reliability test Product quality inspections such as environmental tests optical tests electrical

Safe travel

Product control the national standard limit effectively reducing visual interference

performance tests safety tests and mechanical strength tests are conducted to

verification quality risk from strong light on drivers and ensuring traffic safety.ensure product quality meets the demands of global customers.A collaborative governance model of light pollution and energy

A professional installation service team is equipped and standardised proce- consumption is implemented adopting energy-saving technologies

Installation dure manuals are provided to ensure the installation process strictly complies Ecological Collaborative such as white screen power saving black screen power saving

standard with design specifications. After product installation structural safety inspec- Equipment environmental energy saving failure risk dynamic power saving and full-range high PF value achieving

implementation tion electrical performance test waterproof test display effect commission- governanceprotection energy saving and consumption reduction while preventing and ing and safety training delivery are carried out to confirm safe and reliable controlling light pollution and practicing the concept of green devel-

product operation. opment.Featured maintenance services are provided offering 5–10 years of warranty

Full-lifecycle service for products. During the warranty period professional personnel are Equipment During the reporting period the Company did not incur any major safety and quality liability accidents related to

maintenance arranged to conduct regular on-site inspections and maintenance to promptly failure risk

identify and eliminate safety hazards. products and services nor any non-compliance related to the health and safety impacts of products and services.39 2025 Environmental Social and Governance (ESG) Report 40

Quality Culture Building

The Company upholds the quality commitment of "upholding quality and getting it right the first time" at all levels Tier1 7*24 Online Customer Service Center

actively carries out quality culture building and consolidates the quality awareness of all employees through forms

Fun ctio na l Escalation

such as reward and punishment incentives case studies special activities and tiered training promoting continu-

Tier 1 Tier 2 Tier3

ous improvement of quality control levels.Quality Training System Relevant

Department

The Company has established a full-cycle multi-level quality training system delivering comprehensive quality

empowerment to employees from onboarding to on-the-job and from frontline staff to engineers. Online Customer Service Second-tier Quality Research & Representative Technical Expert Development Team

Cus tomer

Quality Reward and Punishment Mechanism Processing

Online Solutions

Service Engineer

The Company has formulated and improved the Quality Reward and Punishment Management Regulations and On-site Service

special incentive schemes for quality improvement optimised the quality incentive and restraint mechanism

Tec hn ica l Upgrade

commended outstanding quality improvement projects and employees with outstanding contributions and strict-

ly held accountable for quality accidents.Tier3 Localized Service Network Tier2 Distributed RMA Repair Centers

Quality Case Sharing

The Company regularly carries out typical quality case sharing covering key links such as R&D production process

equipment and sales conducting in-depth analysis of quality problems causes and corrective measures guiding

all employees to learn from cases and avoid risks and preventing the recurrence of similar quality problems.Quality Month Activities

The Company’s management signed quality commitments organised 8 empowerment training sessions covering

more than 1500 participants held skills competitions with cross-departmental participation advanced 22 QCC

improvement projects and standardised more than 30 management documents and advocated a cultural atmo-

sphere of "everyone values quality" through promotional videos.Enhancing Customer Service

Adhering to the service philosophy of "proactive fast standardised and considerate" Absen has built an efficient

three-tier service support structure promoting the upgrading of service standards from internal process compli-

ance to delivering excellent customer experience. Centred on the core closed loop of "precisely managing custom-

er expectations – delivering beyond-expectation experience throughout the process – shaping positive customer Customer Service Assurance

perceived value – driving customer loyalty and word-of-mouth" the Company creates full-lifecycle scenar-

Absen has established 40 primary and secondary service centres worldwide and partnered with over 1000 service

io-based service solutions covering pre-sales during-sales and after-sales unlocks customer value with indus-

partners. Its service network covers 165 countries and regions across 6 continents. Relying on a tiered management

try-leading service standards and continuously enhances its competitive edge in service.model to achieve efficient collaborative operation the Company has built an integrated service system covering

global markets. The Company has formed a professional international service team comprising multilingual

Differentiated Service Strategy

professionals fluent in English German Spanish Portuguese Russian and Japanese providing seamless localised

With a customer-centric approach we adopt a service model of "tailored regional strategies customised customer services to customers worldwide.solutions and grid-based management" and formulate differentiated service solutions tailored to the characteris-

tics cost structure policy environment and local resources of each regional market. By building a management The Company has built the "Absen Care" full-lifecycle scenario-based service system launching service solutions

mechanism of "headquarters-led coordination regional hub execution and urban grid coverage" we support the for different application scenarios such as digital outdoor advertising professional audio-visual event rental and

implementation of the three-tier service structure and business model of "Omnimedia customer service centre +

sports display to accurately identify and efficiently respond to customer needs driving the advancement of indus-

RMA maintenance service centre + on-site local service network" achieving "10-second online response 4–8 hours

try standards.on-site service domestically 24–48 hours on-site service internationally and full-process closed loop manage-

ment" building service competitiveness of "speed professionalism and global coverage" and improving global

service response efficiency and customer experience.41 2025 Environmental Social and Governance (ESG) Report 42

AbsenCare DOOH display service solution is specifically designed for

DOOH displays to ensure uninterrupted performance! Online Service System

The Company has built a 24/7 omnichannel integrated technical support system integrating multiple service

Fast Response Specialized Inspection Comprehensive Support

DOOH Display 24/7 support Proactive removal of One-stop solution access channels including telephone WeChat official website and SMS. Equipped with an advanced omnichan-

potential hazards

Service Solution nel call centre management system and customer service information management system it realises unified

Six-star standalone Choose from two standard packages acceptance recording distribution scheduling and process monitoring of service demands.services to suit your needs

Freely customizable

meeting your Standard Assurance Package: Comprehensive Coverage

personalized needs! Premium Assurance Package: Proactive Protection Customer Service Management Platform

Relying on the Customer Service Management (CSM) platform the Company realises unified scheduling of

The AbsenCare sports display service solution your dedicated event

guardian that ensures failure-free spectacular broadcasts! global service resources real-time supervision of service processes and results and automatic anomaly

warning ensuring efficient operation of all links.Sports Display Fast Response Specialized Inspection Comprehensive Support24/7 support Proactive removal of One-stop solution

potential hazards Global After-Sales Service Monitoring Platform

Service Solution

Worry-Free Event

Package for The Company has built a "Global After-Sales Service Monitoring Platform" which fully integrates global service data

Critical Events Five Premier Service Available in flexible combinations to meet your needs! and realises transparent management of the entire chain from work order creation and engineer dispatch to

Delivering end-to-end

support progress tracking supporting rapid response to customer demands and precise allocation of service resources.Service Team Empowerment

The AbsenCare ProAV display service solution is here to help! We offer

a One-stop Service Solution! The Company attaches importance to improving the professional capabilities of the service team and

standardised management of service partners and continuously strengthens the professional capabilities of the

Worry-free Hassle-free Fast Response service team through a competency-building programmes digital tool sharing and standardised quality control.ProAV Display Ease your maintenance Guarantee equipment 24/7 support

pressure by 60% stability

Service Solution Diversified Service Training

Six-star standalone services Choose from two standard packages to suit your needs

Freely customizable meeting your Maintenance Protection Package: preferred choice for VAP partners The Absen Certified Engineer (ACE) Programme is a customised training project provided by the Company

personalized needs! All-round Protection Package: ultimate guarantee for end users for employees in service-related positions such as global LED display engineers and technical personnel.Through systematic theoretical teaching and practical training it helps trainees master LED display-related

knowledge and practical skills in all aspects. Those who pass the assessment can obtain an ACE certification

AbsenCare has introduced the rental & staging display service solution certificate. As at the end of the reporting period ACE training had delivered over 300 sessions certifying more

exclusively designed for rental & staging.than 5400 trainees effectively improving the industry’s technical service level.Fast Response Lower Costs Super Guardian Support

30% increase in Achieve up to 50% Package for One-Stop In 2025 the Company simultaneously carried out offline training activities such as special service themed

Rental & Staging repair speed cost savings Support training sessions and "invite-in" service training and organised targeted online service training promoting

the comprehensive upgrading of professional capabilities of global service personnel through diverse train-

Fast Response Hassle- Five Premier Services are available in flexible ing forms.Free Repairs and combinations to fit your needs!

Comprehensive Support!

Scenario-based full-lifecycle and customised professional service solutions

China United Arab Emirates Iraq Netherlands

Digital Service Experience

The Company leverages digital technologies to enhance its customer service system delivering standardised

visualised and intelligent management of the entire service process through information systems and continuous- Singapore Morocco DACH Miami

ly improves service efficiency and customer experience.Global ACE Training and Certification43 2025 Environmental Social and Governance (ESG) Report 44

To ensure that the service quality of service partners is consistent with the Company’s service standards the The Company improves its customer feedback management mechanism clarifies time limit requirements for

Company has established a service partner management system. By granting service partners access to the CSM each stages and covers various customer feedback scenarios to ensure efficient response to customer feedback.platform with service partners it realises the coordinated linkage of service resources and service processes and At the same time the Company strengthens its customer feedback handling capacity and forms a joint expert

improves the service efficiency of partners. At the same time the Company incorporates the customer service team of sales service and quality to quickly judge feedback implements precise measures and promptly outputs

work of all service partners into the service quality management system simultaneously and conducts regular targeted solutions. After receiving customer demands the Company will simultaneously investigate potential risks

service quality inspections. For non-compliant service processes and substandard service quality partners are of products under production in stock and in transit dig deep into the root causes of problems and formulate and

promptly required to make rectifications and those with ineffective rectifications are eliminated ensuring unified implement effective improvement measures.and controllable global service quality.The Company has built a time-effect management system covering the entire process of online service RMA

service on-site service and customer satisfaction and set quantitative indicators such as response time service

Customer Communication and Feedback standard achievement rate on-site service resolution time and customer service satisfaction. The Company regu-

larly conducts Net Promoter Score surveys to understand customers’ feedback on product quality service delivery

The Company has built a multi-channel customer communication network covering multilingual and diverse and other aspects.customer needs across multiple scenarios which responds to customers’ business inquiries in a timely manner. We

During the reporting period the customer satisfaction score was 98.20%.attach great importance to customers’ opinions and demands receive customer complaints and feedback in a

timely manner through channels such as service hotlines and dedicated email for complaints and suggestions

and establish a full-process closed-loop management mechanism from acceptance verification handling to Responsible Marketing

follow-up ensuring that all customer feedback receives a full response and is resolved satisfactorily thereby

continuously enhancing customer satisfaction and the overall service experience. Absen strictly abides by relevant laws and regulations such as the Advertising Law of the People’s Republic of

China and has formulated management documents such as the Brand Marketing Business Violation Management

System Marketing Material Management System and Marketing Promotion Plan Management Process clarifying

Other Communication and compliance standards for marketing activities materials and promotional content and resolutely prohibits false Online Service Communication Channels Feedback Channels publicity and misleading information.Multi-touch hotlines and portals: A global service Offline event outreach: Face-to-face communi-

The Company has established a strict pre-approval mechanism for marketing activities. All marketing promotion

hotline has been set up and one-stop service access cation channels are established through partici-

and market activity plans must be reviewed by the compliance and legal departments to ensure compliance with

is provided through the Chinese and English official pating in and holding various offline activities such

websites. as industry exhibitions marketing conferences

advertising regulations consumer protection regulations and industry regulatory requirements of the operating

roadshows and customer promotion meetings. locations. Centred on customers’ real demands we implement precise positioning tiered marketing and compliant

Instant messaging and social media matrix: A publicity around core application fields such as advertising sports and stage rental and strive to build a responsi-

series of official communication accounts under Internal collaboration mechanism: An efficient ble and trustworthy global brand image. At the same time the Company standardises the management of the

internal demand circulation and response mecha-

"Absen Global Service" have been established cover- entire marketing promotion chain clarifies marketing standard requirements for employees and regularly moni-

nism has been established to ensure seamless

ing mainstream domestic and international instant tors and evaluates the publicity behaviours of partners such as distributors and media to ensure the authenticity

connection between front-end customer service

messaging software and social media platforms. and accuracy of product information promotion.demands and back-end support capabilities.Email support system: An email support channel has

The Company regularly conducts special compliance training covering all marketing employees and global

been set up to ensure professional and timely

partners systematically promoting awareness of marketing code of conduct anti-bribery requirements data

handling of customer demands and feedback.compliance and brand usage guidelines and comprehensively improving the compliance awareness of all

employees. In addition the Company’s marketing centre in conjunction with the legal and audit departments

regularly conducts cross-departmental compliance audits risk investigations and special inspections implements

closed-loop monitoring of the entire marketing process establishes and improves a violation accountability

On-Site Service Follow-Up Mechanism mechanism and takes disciplinary action against non-compliant marketing practices to ensure the implementa-

Closed-loop Service Management Process: A time-effect tracing mechanism for the entire service process has tion of rectifications.been established. After completing on-site service service engineers conduct standardised satisfaction follow-up and

surveys with customers. Customer feedback is collected through the system to optimise service processes. During the reporting period the Company did not experience any violations related to product and service

information and labelling nor any violations related to marketing communication.45 2025 Environmental Social and Governance (ESG) Report 46

Supply Chain Management Supplier Onboarding

The Company conducts systematic assessments of prospective suppliers based on four core onboarding criteria:

Absen conducts business with high standards of business ethics and builds an equal and responsible value sound operational performance high strategic alignment optimal overall cost and rigorous quality control. We

chain cooperation ecosystem. The Company continuously strengthens the construction of its supply chain integrate ESG dimensions such as anti-corruption and compliance environmental protection labour practices and

management system adopts multiple measures to empower supplier development and is committed to quality management into the supplier onboarding audit system ensuring the compliance stability and sustain-

achieving win-win results with global supply chain partners. ability of the supply chain from the source. In 2025 the Company signed the Integrity Cooperation Agreement

Confidentiality and Intellectual Property Protection Agreement and Supplier Corporate Social Responsibility Agree-

ment with suppliers achieving a 100% signing rate.Supplier Management Principles

The Company strictly abides by laws and regulations such as the Bidding and Tendering Law of the People’s Integrity and compliance dimension

Republic of China and has formulated institutional documents such as the Supplier Management Regulations and

Supplier Quality Management Regulations clarifying full-process management specifications for supplier access · Suppliers are required to sign the Letter of Commitment on Integrity Guidelines and strictly abide by the

Company’s "Three Nos" principle: no falsehood no fraud no bribery.classification evaluation and elimination. In 2025 the Company revised the Supplier Performance Management

· The Company verifies suppliers’ internal anti-commercial bribery systems employee integrity training

Process to further refine supplier performance assessment indicators and enhance the standardisation and

records and gift and hospitality registration ledgers and identifies and assesses business ethics risks through

efficiency of supplier management.on-site interviews with personnel in key positions.The Company follows four core principles in conducting full-process supplier management and continuously

optimise the supply chain system: Environmental protection dimension

· Suppliers are required to provide ISO 14001 environmental management system certification or equivalent

proof and the Company conducts on-site audits of the operation status of wastewater waste gas and solid

Instead of taking a single price as the core

waste treatment facilities and compliant emission monitoring records.Supplier management is led and coordi- benchmark the Company builds a full-process · In accordance with the requirements of the QC080000:2017 standard the Company focuses on verifying

nated by the Procurement Department performance evaluation system and the control of hazardous substances and conducts spot checks on raw material safety data sheets and

achieving centralised and institutional support adhering to the RoHS and REACH compliance declaration documents.standardised management. management principles of

scientificity compatibility

Centralisation Comprehe

Principle nsiveness fairness and impartiality. Environmental protection dimension

Principle 质量管理维度

· Suppliers are required to pass social responsibility audits such as SA8000 and BSCI or have equivalent

internal management systems.· The Company verifies suppliers’ labour management practices such as employee labour contract signing

Flexibility Dynamic In line with the Company’s rate social security payment records and working hours and overtime management ledgers.Principle Principle

development strategy and

Differentiated management is · On-site audits are conducted on the implementation of workplace safety protection and the protection of

procurement planning the

implemented for different the rights and interests of juvenile workers and female employees.Company dynamically optimises

material categories and supply

supplier resources completes supplier

proportions improving the precision of supply

onboarding and streamlining in a timely manner Quality management dimension

chain management.and continuously improves the business 质量管理维度

· Suppliers are required to obtain ISO 9001 quality management system certification.adaptability of the supply chain.· The Company conducts on-site audits of suppliers’ quality control plans and related quality management

documents.· The Company inspects the implementation records of the entire process of incoming inspection in-pro-

During the reporting period the Company had a total of 156 suppliers with 75% of procurement sourced from local cess inspection and outgoing inspection of suppliers as well as the application of statistical process control.suppliers in operating regions. The specific distribution is as follows: It conducts witness tests on key processes to verify the effectiveness of quality management measures such

as equipment calibration first article confirmation and non-conforming product control.Domestic suppliers (including Hong

Indicator 2025 Data (number of entities)Kong Macao and Taiwan regions)

2025 Data During the reporting period 100% of the Company’s new suppliers were screened using environmental evaluation

(number of entities) 154 2 dimensions and 100% were screened using social evaluation dimensions.47 2025 Environmental Social and Governance (ESG) Report 48

Supplier Evaluation and Assessment Capability Enhancement

The Company has established a closed-loop management system for supplier performance evaluation and rectifica- The Company builds efficient and collaborative communication bridges through communication forms such as

tion with monthly and quarterly assessment mechanisms. It conducts performance evaluation based on the Supplier face-to-face meetings telephone calls and on-site conferences and strengthens empowerment and guidance for

Relationship Management (SRM) system and implements closed-loop tracking of supplier rectification through digital suppliers. In 2025 the Company held the annual Core Supplier Partner Conference where the Company’s executives

systems ensuring the compliance authenticity and traceability of the supplier evaluation process. communicated the annual development strategy to core suppliers and clarified the direction of cooperation develop-

ment. Heads of departments such as product quality and procurement explained the Company’s standard require-

ments and action guidelines to suppliers from dimensions such as product standards quality control and procurement

Assessment

Frequency Assessment Form Rectification Mechanism collaboration. They also emphasised the principles of integrity and clean cooperation clarified supplier reporting chan-

nels guided suppliers to operate in a standardised manner consolidated the foundation of cooperation and fostered

If a supplier’s monthly performance fails to meet standards win-win supply chain development.the SRM system will automatically trigger a rectification

Weights are assigned across process and send a rectification notice to the supplier. The Company regularly conducts sustainable supply chain awareness training and capacity building programmes for

core dimensions such as Suppliers are required to confirm the issues complete internal internal supplier audit teams and procurement personnel supports employees in obtaining procurement qualification Monthly

cost quality delivery and reviews within the specified time limit and submit a written certifications and improves the professional competence compliance awareness and sustainable management

assessment

commerce to comprehen- improvement report including root cause analysis corrective capabilities of supply chain-related personnel.measures and prevention plans.sively evaluate suppliers’ The improvement report is jointly reviewed by the Company’s

monthly performance. supplier quality engineers and procurement personnel to

verify the effectiveness and implement ability of the supplier’s Conflict Minerals Management

improvement measures and ensure rectification is delivered. The Company strictly abides by internationally accepted conflict-free minerals standards has established a

full-chain supply chain control system resolutely eliminates the use of conflict minerals and earnestly fulfils corpo-

A tiered response mechanism is activated for suppliers with a rate social responsibility. We require all products supplied by suppliers to be conflict-free metal products and

quarterly rating of "to be improved" or "unqualified".Quarterly ratings such as continue to deepen supply chain due diligence management. We conduct full-process traceability verification of

For suppliers that fail the quarterly assessment for the first

green card yellow card red card time strategic procurement specialists will initiate an key metals involved in products such as gold (Au) tantalum (Ta) tungsten (W) cobalt (Co) and tin (Sn) ensur-

and black card are generated application for supplier level adjustment and provide special ing that the relevant metals are not obtained through illegal channels such as mining or smuggling by warlord

Quarterly based on the aggregated rectification guidance to the suppliers. groups and illegal groups and do not involve high-risk countries and regions related to the the Democratic Repub-

assessment For suppliers that fail the assessment for two consecutive monthly performance results lic of the Congo (DRC) and adjoining countries identified by the United Nations Security Council.quarters a supplier downgrade process is initiated to adjust

of three consecutive months subsequent procurement weight and cooperation priority.and differentiated tiered If a supplier fails the assessment for three consecutive

management is implemented. quarters the Company will activate the supplier certification Equal Treatment of Small and Medium-Sized Enterprises

exit mechanism and take measures such as temporarily

freezing supplier resources re-sourcing or terminating The Company has always adhered to the supply chain cooperation philosophy of equality mutual benefit and

cooperation. collaborative development actively supports the growth of small and medium-sized enterprise (SME) suppliers

and is committed to building a fair transparent and win-win supply chain system ensuring that SME suppliers

Meanwhile the Company has established a scientific and sound supplier scoring model adopting a multi-sector enjoy equal cooperation opportunities and development space. As at the end of the reporting period the Company

collaborative evaluation mechanism covering three core functional departments: procurement R&D and quality. has optimised supply chain capital management and cooperation mechanisms and has supported a total of 26

Differentiated weights are set based on the business contribution of each sector to comprehensively and objec- SME suppliers effectively helping them maintain stable operations and expand production capacity and jointly

tively reflect the overall capabilities of suppliers and achieve tiered management and control of suppliers. building a more resilient and sustainable supply chain ecosystem.Supplier Rating Tiered Management Measures

Included in the priority pool for major project bidding and suppliers of this grade are

Grade A given priority under equal conditions. Information Security and Privacy

Maintain regular business cooperation relations review performance improvement items Protection

Grade B on a quarterly basis and continuously optimise cooperation quality.Immediately launch the supervision and improvement process with strategic procure-

Grade C ment specialists taking the lead in formulating supplier improvement plans and tracking Absen abides by the laws regulations and regulatory requirements applicable in China and all regions

the progress and effectiveness of rectification throughout the process. where its business operates incorporates information security and data compliance into a core component

Suspend cooperation qualification. If a supplier is rated Grade D twice within a year the of corporate management continuously improves its information security management system and

Grade D matter will be submitted to management for review and the cooperation relationship will

be terminated. constantly refines technical protection and internal control processes. The Company attaches great impor-

tance to the protection of user privacy and data security and effectively fortifies the line of defence for

information security through full-lifecycle management regular risk assessment and emergency response

During the reporting period the Company conducted environmental and social impact assessments on all suppli-

mechanisms safeguarding the data rights and interests of users partners and the Company itself.ers achieving a 100% coverage rate. The number of suppliers confirmed to have significant actual or potential

environmental and social impacts was 0.49 2025 Environmental Social and Governance (ESG) Report 50

Information Security Management

The Company has established an information security management structure and set up an Information Security Leading

Group which makes decisions on major information security matters reviews the information security management

system and supervises the handling of major security incidents. The Digital Operations Department as the permanent

administrative body of the Leading Group assists the Leading Group in implementing information security strategies

supports decision-making on information security affairs takes charge of the establishment implementation and daily

operation of the information security management system formulates information security policies and management

standards and communicates and coordinates with national information security competent authorities and depart-

ments. Heads of all first-tier departments as the primary persons responsible for information assets of their respective

departments are fully responsible for the management and maintenance of information assets in their departments and

cooperate in audits. The System Team of the Quality Department is responsible for information security system audits

information asset inventory updates and risk control assessment and tracking. Meanwhile the Company requires all

internal employees to strictly comply with information security-related regulations use information assets in a

standardised manner actively participate in security training and report violations in a timely manner to jointly build a

strong information security defence for the Company.The Company has formulated and implemented internal management policies such as the Information Security Manage- ISO/IEC 27001:2022 Information Security Management System Certification

ment System Information Security Incident Management Regulations and Cybersecurity Management Regulations. The Information Security Service Qualification Certification

Company has obtained ISO/IEC 27001:2022 Information Security Management System Certification and Information

Security Service Qualification Certification.The Company has formulated management documents such as the Information System Emergency Response Plan to In 2025 Absen organised company-wide phishing email emergency drills to improve employees’ ability to identify and

standardise information security incident handling procedures and continuously enhance emergency response capa- report incidents promote the standardised closed loop of handling procedures and transform protection from passive

bilities. to active. Meanwhile the IT Department organised backup data restoration drills to verify data integrity and restoration

time efficiency optimise backup strategies and consolidate the data security defence line. In terms of information

Upon receiving reports of information security risks or incidents the Company immediately security culture building the Company has set up compulsory onboarding courses for new employees established an

carries out incident investigation and nature assessment verifies network architecture audit internal mechanism for sharing on technology and security knowledge and regularly carried out awareness

Incident

Detection logs and system anomalies completes on-site records and evidence retention and defines campaigns on phishing email prevention and data leakage protection through internal platforms to continuously

response strategies. strengthen the security awareness of all employees.A working group is formed to protect the incident scene avoid using damaged systems assess

Incident Customer Privacy Protection

Containment system risks and synchronise handling progress and promptly prevent the spread of informa-

tion security risks. The Company strictly complies with relevant laws regulations and industry regula-

tory requirements continuously improves its personal information protection

management system and operational specifications clarifies the boundaries of

The root cause of the incident is identified security protection measures are improved system

Incident rights and responsibilities at all stages such as information collection storage use

Investigation and network vulnerability assessments are conducted similar weaknesses in other systems are transmission and destruction and safeguards customers’ rights to be informed to

identified and security risks are eliminated.choose and to control their information. Through measures such as improving the

technical protection system strengthening data security audits and conducting

Systems software and data are restored using reliable backup sources. After installing patches employee compliance training we continuously improve data security manage-

System

Recovery the Company comprehensively verifies system security operation and functional integrity to ment capabilities and strictly guard against risks of information leakage abuse and

ensure the system returns to normal operation. unauthorised access.After the incident is contained an incident handling report is prepared and a seminar is organised In product design and service delivery the Company implements data minimisa- ISO/IEC 27701:2019 Privacy

Summary to review the incident collect opinions implement improvement measures and continuously tion measures to effectively protect customers’ privacy rights and interests and Information Management

and Optimisation

improve response capabilities. build a safe credible and responsible customer service ecosystem. System Certification

Information Security Incident Handling Process As at the end of the reporting period the Company did not experience any customer privacy leakage incidents nor any

complaints arising from infringement of customer privacy or loss of customer data.Clean

Development

Safeguarding

Ecosystems

Absen advocates a production and operation

model centred on green low-carbon energy-sav-

ing and eco-friendly practices. It integrates the

concept of full-lifecycle management thinking into

all aspects of product R&D manufacturing and

operations systematically reduces environmental

risks during operations and continuously explores

a green development path that balances sustain-

able growth with ecological sustainability.53 2025 Environmental Social and Governance (ESG) Report 54

Environmental Compliance In terms of production and operations the Company takes national-level green factories and green office build-

Management ings as strategic pillars. Through independent investment it has built a facility-wide integrated green energy

system combining photovoltaic power generation energy storage and charging infrastructure creating a

full-scenario energy closed loop of self-generation and self-consumption surplus grid feed-in energy storage

Absen strictly complies with national and local environmental laws and regulations including the Environmental for peak shaving and green mobility.Protection Law of the People’s Republic of China the Air Pollution Prevention and Control Law of the People’s In terms of supply chain management the Company upholds the philosophy of green procurement implements

Republic of China the Water Pollution Prevention and Control Law of the People’s Republic of China and the Law a stringent hazardous substance control system for components and raw materials actively participates in the

of the People’s Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste. The formulation of industry green standards and collaborates with upstream and downstream partners along the

Company has formulated environmental management systems including the Regulations on the Management value chain to build a sustainable green ecosystem.of Water Gas Noise and Residue Discharge and continuously optimises its environmental compliance system

to ensure all operations meet stringent environmental management requirements. Risk Management

Absen has established a systematic climate change risk management system across three dimensions: compli-

Absen has defined the division of responsibilities across all departments forming an environmental management ance operations environmental risks and value chain risks.organisational structure with clear accountabilities and synergistic collaboration. In addition through regular

energy conservation training expert lectures knowledge competitions and creative idea campaigns the Company In terms of compliant operation the Company has established a carbon footprint accounting and verification

systematically fosters a green culture of full participation co-creation and shared value deeply embedding the mechanism covering the entire process. It conducts quantitative assessments of product carbon emissions

concept of energy conservation and environmental protection into daily operations and employee behaviour. across all cradle-to-gate stages and has pioneered the completion of carbon footprint verification for multiple

product series with authoritative certification effectively managing compliance risks amid tightening environmen-

tal regulations.In terms of environmental risks the Company has established an end-to-end monitoring and emergency

response system covering critical monitoring nodes at the Dongjiang Intelligent Manufacturing Centre achieving

zero environmental hazard incidents for the entire year.In terms of value chain risk management the Company integrates ESG management requirements to supplier

management and product development by signing environmental compliance agreements and verifying hazard-

ous substance process management system certifications. This shifts risk governance from end-of-pipe treat-

ment to source control and reduces the potential impact of climate change and its associated policies on

business operations.Meanwhile the Company has refined its physical risk identification and prevention and control mechanism and

formulated the Emergency Response Plan for Extreme Weather Incidents to effectively manage and promptly

ISO 14001 Environmental ISO 50001 Energy respond to various extreme weather events and ensure operational continuity.Management System Certification Management System Certification

Indicators and Targets

The Company has established a scientific comparable

Responding to Climate Change system of climate-related indicators covering key metrics such as energy consumption intensity and renewable

energy share. It discloses progress on these indicators

Governance annually reports climate action outcomes to stakeholders

and drives continuous internal improvement.Absen proactively evaluates the impact of climate change on business operations incorporates climate action

into its ESG governance structure and drives the advancement of its green and low-carbon strategy. In 2025 the Company engaged an independent Absen’s Shenzhen headquarters is a national two-star

third-party organisation to conduct cradle-to-gate green building integrating eco-friendly structural

Strategy

carbon emission accounting for its full product ranges of design smart operations clean energy application

water conservation and ecological landscaping to

Absen’s climate action is systematically implemented across three core areas: products production and opera- the A27 series NX series A series KLCOB series iCon build a full-cycle green and low-carbon operation

tions and supply chain management. series HCM series and HC II series. As at the end of the system. Rooftop photovoltaic power generation

reporting period the Company had completed carbon

In terms of products the Company focuses on energy-saving and eco-friendly design across the full lifecycle reached 145000 kWh in its first year of operation

footprint verification for 90% of indoor and outdoor achieving a carbon reduction of approximately 135.6

and continuously develops green products with high energy efficiency and low energy consumption.fixed-install and all-in-one products providing data tons of carbon dioxide equivalent

support for energy saving and carbon reduction across

the entire value chain.55 2025 Environmental Social and Governance (ESG) Report 56

Energy Management Water Resource Management

Absen strictly complies with relevant laws and regulations such as the Energy Conservation Law of the

People’s Republic of China and formulates and refines the Energy and Resource Management System. It Through measures such as optimising production processes upgrading water-saving equipment and

clarifies the energy management responsibilities of each department and formulates and implements implementing water recycling systems Absen continuously reduces water consumption per unit of output

annual energy-saving plans for key energy-consuming areas including production office domestic and value and improves water utilisation efficiency. In its production operations the Company deploys

auxiliary equipment energy use. The Company incorporates energy-saving targets into business perfor- closed-loop circulating water systems for key water-consuming processes such as cleaning and cooling

mance assessments establishes energy performance parameters and benchmarks and achieves to minimise municipal water intake. The Company has established a water metering and monitoring

dynamic monitoring of key indicators. mechanism to track and analyse water consumption across workshops and facilities in real time and

promptly identify and rectify abnormal water use. For production wastewater the Company has installed

with advanced sewage treatment facilities in strict compliance with national and local discharge

Application of the Integrated PV-Storage-Charging System standards ensuring treated effluent meets discharge requirements or is reused.Absen makes full use of factory rooftop resources to plan and build an integrated photovoltaic energy

storage and charging project. Based on systematic calculations the photovoltaic system at the Huizhou Application of Water Recycling Systems

Manufacturing Base generates an average of approximately 1.8 million kWh of electricity per year with a

peak daily output of 9000 kWh while the energy storage station has an annual charge and discharge In 2025 the Huizhou Manufacturing Base installed water recycling systems to treat testing water enabling it

capacity of approximately 3 million kWh. Through coordinated scheduling of photovoltaic generation and to meet reuse standards and be recirculated for water testing procedures forming a closed-loop system.energy storage the project delivers both economic and environmental benefits. Economically it is expected Following the upgrade annual water savings reach 27955 tons with an equivalent reduction in wastewater

to save approximately RMB 3 million in energy costs per year on average. Environmentally it is expected to discharge significantly lowering municipal water intake costs and sewage treatment costs.save approximately 550 tons of standard coal annually and reduce emissions by approximately 1400 tons

of carbon dioxide equivalent supporting the development of a clean and efficient factory energy supply and

consumption system.The Company advanced refined The Company carried out intelligent In production workshops the Compa- Pollutant and Waste Management

management of production energy upgrading of burn-in test electrical ny promoted off-peak electricity

efficiency with production electricity cabinets adopting the "2+1" automatic utilisation for burn-in test displays

consumption per unit area decreas- cycle control mode achieving a 10% across peak and valley load periods

ing by 9.3% year on year. year-on-year reduction in electricity optimised grid load distribution and

Absen strictly complies with the Law of the People’s Republic of China on the Prevention and Control of

consumption during the testing phase. effectively improves power utilisation

efficiency. Environmental Pollution by Solid Waste the Emission Standard for Environmental Noise at Boundary of

Industrial Enterprises and relevant local environmental regulations. Adhering to the principles of reduction

recycling and harmless treatment the Company continuously improves end-to-end pollutant and waste

The Company implemented thermal The Company installed cooling water The Company deployed rooftop management.insulation design and hot air discharge circulation flow meters for refrigeration photovoltaic power generation

optimisation for exhaust air ducts in the systems enabling remote energy systems across factory premis-

Printed Circuit Board Assembly (PCBA) consumption monitoring and intelligent es actively utilises clean energy

workshop reducing the impact of indoor scheduling via Internet of Things (IoT) and optimises the production In waste gas management the Company identifies key processes such as cutting welding and spraying

technology effectively reducing electrici- energy mix. In 2025 the propor-

temperature differences and significantly and ensures 100% compliant emissions through front-end process assessment extraction and ventilation

ty consumption in the Chip on Board tion of renewable energy

cutting the energy consumption of system collection and activated carbon adsorption treatment.

(COB) workshop by approximately 37%. reached 11.33%.

refrigeration systems.In solid waste management the Company implements a classified disposal mechanism: non-recyclable

solid waste is entrusted to qualified operators for treatment. Hazardous waste is transferred daily from user

Absen Optimised Production Energy Use departments to a dedicated hazardous waste warehouse entrusted to licensed third parties for collection

and disposal and fully registered and declared via the Guangdong Provincial Solid Waste Environmental

The Company implemented electrici- The Company installed centralised The Company introduced a third-par- Supervision Information Platform to ensure compliant disposal.ty saving controls in office areas with linked controllers for smart central air ty vehicle dispatching platform to

standardise the management of In noise management the Company identifies major noise sources including vehicles production equip-energy-efficient LED lighting fixtures conditioning in office areas enabling

adopted across all premises. multi-dimensional precise control of official vehicles optimise the alloca-

ment air compressors and generators. It requires factory vehicles to minimise unnecessary honking and

air conditioning across whole-site tion of official vehicle resources and undergo regular maintenance; exhaust fans and production equipment are operated on demand and

prioritise the use of new energy

zoned and scheduled modes. switched off when not in use; air compressors are managed as special equipment with regular inspection

electric vehicles for business travel. and record-keeping. Through source control and standardised operation and maintenance noise impact

is effectively reduced.Absen Optimised Office Energy Use57 2025 Environmental Social and Governance (ESG) Report 58

Ecosystem and Biodiversity Circular Economy

Absen actively collaborates with third-party professional ecological service institutions to establish a Absen embraces the principles of the circular economy establishing a standardised management and

landscaping maintenance mechanism and improve the ecological quality of its premises. The Company control system and embeds the circular principles of reduction reuse and resource recovery across the

has also installed 25 beehives at the Huizhou Manufacturing Base demonstrating its commitment to biodi- entire product lifecycle spanning from R&D and production to recycling.versity conservation.General Production Materials Standardised Processes

and Processes The Company has streamlined and improved new

Bees pollinate surrounding vegetation improving fruit set rates and Over 90% of developed products can achieve product introduction (NPI) processes and manufac-

seed yields which in turn supports the food chain for birds and small efficient mass production using existing equip- turability review specifications standardised the

mammals and maintains the stable reproduction of the regional ment. product introduction workflow and ensured that green

cost-effective design solutions can be widely rolled out

ecosystem. Meanwhile bees are highly sensitive to pollutants and

across all product series.their health status serves as a low-cost high-sensitivity biological

indicator system for identifying environmental risks at the facility.Green Packaging

Within the industrial landscape beehives and factory vegetation

together form key nodes in pollination corridors effectively improving In 2025 the Huizhou Manufacturing Base implemented green upgrades for disposable packaging materials

habitat connectivity. In addition the beehives serve as a nature in supplier deliveries: recyclable plastic corner protectors plastic pallets and turnover plastic crates

education for employees and the local community translating intan- replaced foam corner protectors wooden pallets and traditional cartons respectively reducing non-de-

gible pollination services into tangible corporate action and engaging gradable waste at source. Meanwhile the base has established an internal recycling management system

more employees in ecological protection. with dedicated recycling areas to ensure standardised reuse of packaging materials. It has also signed

dedicated recycling agreements with suppliers to build a full-chain closed-loop management model of use

recycling and regeneration and reuse effectively reducing packaging solid waste generation and

end-to-end supply chain costs.Talent-driven

Development

People-oriented

Approach

Absen consistently adheres to the principles of

respect trust and mutual growth committing to

building a fair diverse and inclusive home for

every dedicated professional. By unlocking

employees' full potential we align individual value

with organisational development building a com-

munity of mutual success and trust. We safeguard

health and safety with responsibility pave the way

for career growth with sincerity and enable every

professional to transform from dedicated to joyful

work jointly writing a future of sustainable devel-

opment.61 2025 Environmental Social and Governance (ESG) Report 62

Employee Rights and Benefits Diversity and Equal Opportunity

Absen ensures that the entire recruitment process is legal compliant fair and equitable providing equal employ-

ment and development opportunities for all candidates. The Company explicitly prohibits discrimination or differ-

Absen strictly adheres to human rights and labour-related standards providing competitive remuneration ential treatment against employees based on factors such as gender age nationality race religious beliefs family

packages and diversified welfare guarantees. The Company maintains open channels for employee com- status or health conditions.munication actively listens to employee feedback and addresses reasonable demands effectively

enhancing employees' sense of belonging and happiness and fostering strong talent engagement for the In the Company's management team women are well-represented with female leaders in the overseas sales

sustainable development of the enterprise. department being particularly prominent. We provide maternity and paternity leave for eligible employees in

accordance with the law actively implement allowance policies and set up nursing rooms practically supporting

employees in balancing work and family responsibilities fostering a friendly workplace atmosphere that accom-

modates both career development and family care and deepening gender equality practices.Protection of Basic Rights During the reporting period the Company had a total of 996 female employees with female managers accounting

Absen proactively complies with a series of international human rights conventions charters and principles such for 31.1% and female managers in the overseas sales department accounting for 57.35%. A total of 61 employees

as the ILO Constitution and the Universal Declaration of Human Rights and strictly abides by laws and regulations took maternity and paternity leave.including the Labour Law of the People's Republic of China the Law of the People's Republic of China on the Protec-

tion of Minors and the Labour Contract Law of the People's Republic of China explicitly prohibiting forced or com- Compensation and Benefits

pulsory labour the use of child labour violence and harassment.In 2025 Absen comprehensively carried out a remuneration system reform striving to break the traditional seniori-

Absen systematically prevents forced labour risks by institutionally clarifying the principle of voluntary labour ty-based distribution model and establish a more objective distribution mechanism with greater market competi-

relations. Employees enjoy the right to resign freely according to the law; the Company strictly forbids withholding tiveness and internal fairness further stimulating the dynamism of young core talents.identification documents or collecting deposits and employees can file complaints through HRBPs or the audit

email. All employees sign labour contracts upon onboarding retain their own personal documents and overtime The Company continues to invest significantly in building an employee benefits and care system covering statuto-

ry benefits featured benefits and instant incentives practically enhancing employees' sense of belonging happi-

is strictly voluntary. The Company protects employees' right to rest according to the law ensures overtime is mutu-

ness and professional identity.ally agreed upon and compensated and pays wages and contributes to the "Five Social Insurances and One Hous-

ing Fund" on time and in full. Through channels such as HRBPs values assessments and new employee sympo-

siums the Company promptly identifies potential risks and extends the prohibition of forced labour to the supply Statutory Benefits

chain requiring partners to comply with the same standards and accept on-site audits.Provide statutory holidays such as paid annual leave marriage leave maternity leave and paternity leave.Absen systematically eliminates the risk of child labour. At the institutional level the strict prohibition of recruiting Contribute to the "Six Social Insurances and One Housing Fund" for employees.minors under the age of sixteen is established as a core recruitment criterion and incorporated into the Supplier

Code of Conduct with strict accountability for violations. During the recruitment process the Company implements

an original ID card verification and dual-approval system to ensure age compliance and retains records for future Featured Benefits and Care

reference. In terms of supervision the Company strengthens internal compliance reviews through random checks

Health Guarantee: Employees can enjoy medical examination services upon onboarding and after one year of

special audits and open reporting channels while conducting irregular employment audits on partners to strictly

employment.prevent child labour risks in the supply chain. Furthermore the Company conducts specific training on child labour

Festival and Birthday Care: Hold afternoon tea activities during festivals; employees receive a gift redemption

control for HR and recruitment-related personnel to enhance their legal awareness and identification capabilities

quota on their birthdays.preventing child labour at its source.Tenure Rewards: Distribute exclusive commemorative gifts to employees who have been with the company for 1 3 5

Based on the above measures no incidents of forced or compulsory labour or child labour were recorded within and 10 years.Life Care: Provide meal allowances communication allowances and supporting talent housing resources.the Company in 2025.Cultural and Sports Activities: Regularly organise activities such as yoga badminton football and basketball;

both the Shenzhen Headquarters and the Huizhou Manufacturing Base have set up cultural and sports associa-

tions to hold regular activities and competitions.63 2025 Environmental Social and Governance (ESG) Report 64

Instant Incentives Employee Training and Development

Special Sales Incentives: Hold sales incentive conferences monthly and quarterly awarding cash electronic

Absen continuously refines its talent development strategy from a strategic perspective building a train-

devices and other prizes on-site to outstanding performers.ing system that covers all employees throughout their entire career journeys. Through systematic train-

Outstanding Employee Recognition: Publicise the deeds of outstanding employees through the Company's

ing and targeted empowerment the Company builds a high-quality talent pool empowering employee

online and offline channels.growth and injecting continuous talent momentum into the enterprise's high-quality and sustainable

Absen Employee Benefits and Care System development.During the reporting period Absen achieved a 100% labour contract signing rate and a 100% social security Talent Development Strategy

coverage rate.Absen explicitly focuses on three core strategies: Strategic Focus Technology Leadership Strategy and Talent

Strategy driving the deep integration of talent development and business strategy.Employee Communication

Strategic Focus

Absen highly values employee communication and employee voice committing to building an open and trans-

Organisational Restructuring: In 2025 restructured business units by segmented scenarios and established

parent employee communication system facilitating open feedback channels and listening to the true voices of

virtual organisations to precisely align with customer needs in specific segments.employees.Sales Capability Enhancement: Launched sales team capability enhancement projects and hired external

lecturers to conduct targeted training.HRBP Mechanism Open Email Channel Product-side Capability Building: Concentrated R&D resources; conducted special training for product manag-

The Company has established an HRBP mecha- The Company has established an open audit ers focusing on the product requirement collection phase.nism arranging HRBPs to be embedded in various email address through which employees can

business departments conduct regular communi- directly provide feedback on issues via email. Technology Leadership Strategy

cation with employees accurately collect employ- The Company will conduct special verifica-

ees' opinions and demands regarding direct super- tions and handling of the feedback content. Requirement Collection End: Promote the transformation of overseas sales to consultative sales focus on

visors work arrangements etc. and coordinate to enhancing product technology comprehension and cultivate sales engineers.handle or report upwards step by step in a timely

Requirement Realisation End: Deepen the core capabilities of product managers focusing on cultivating their

manner.requirements screening identification and product definition capabilities.Technology Realisation End: Cooperated with The Chinese University of Hong Kong Shenzhen to establish a

postdoctoral innovation base. Introduced 3 postdocs in 2025 2 of whom have onboarded and completed their

proposal defences.New Employee Symposium

Value Transmission End: Focus on enhancing the capabilities of solution engineers promoting them to become

The Company has optimised the feedback collection method for new employees by shifting from front-end market technology interpreters and solution designers.online scoring to offline symposiums. Through face-to-face communication accurately evaluate

new employees' onboarding feelings training experiences and development suggestions.Talent Strategy

Talent Introduction: Launch core talent programmes led by senior management highlighting the priority of the

talent strategy.Pipeline Building: Supplement the reserve of international sales management talents and perfect the building

of the talent pipeline.Main Employee Communication Channels at Absen

Absen Talent Development Strategy65 2025 Environmental Social and Governance (ESG) Report 66

Employee Training System

Focusing on core areas such as product knowledge

The development of the Absen Zhen Ai Academy is rooted in Absen's long-term strategic investment in its talent Focusing on core areas such as LED display control

system. system technology conduct product technical

sales processes and after-sales service conduct

talent training. A total of 252 people participated in new sales talent training. A total of 8 sessions of

courses were conducted 367 people participated in

In 2010 the Company organised over 60 core employees in a systematic study of Peter Drucker's courses online and offline training 103 people participated

in on-the-job practice and the assessment pass online and offline training and on-the-job practice gaining a profound understanding that "management has its true essence and methods" and that "the and the assessment pass rate was 100%.essence of management is to stimulate human goodwill and potential". This realisation laid the ideological rate was 98%.foundation for the academy's development.During the reporting period employee training coverage reached 96.25% with a total employee training investment

In 2019 the Company officially established the first corporate university in the LED display industry—Absen

Zhen Ai University (later developed into Absen Zhen Ai Academy). Driven by the initial mission of "cultivat- of RMB 9.6635 million. The training satisfaction score for product technical talents was 95 while that for sales

ing world-class entrepreneurs with a Chinese spirit" it focuses on key employees and emphasises "using talents was 96.the best to develop the better".Performance Management System

Since then the Academy has continued to evolve gradually deepening its mission to "cultivate business

talents with Absen genes" building a comprehensive cultivation system covering five major colleges and The Company continuously improves its comprehensive performance management system to effectively drive

linking with the Company's "Professional + Management" dual-channel promotion mechanism to provide employee engagement ensure strategic execution and achievement of business goals and provide support for

capability upgrade solutions for internal managers core backbones and technical talents. human resource decisions such as employee career development remuneration rewards and punishments. The

Company uses PBC (Personal Business Commitment) and values assessment as quarterly assessment tools to

conduct comprehensive evaluations. The Company issued the 2025 Restricted Stock Incentive Programme

Its development process reflects the continuous integration of modern management philosophies growing from Assessment Management Measures linking corporate and individual performance to serve as the basis for the

a single training carrier into a strategic talent empowerment platform covering internal certification global service vesting of restricted stocks.standards and supply chain co-construction.Restricted Stock Incentive Programme

Senior level: Enhance overall management capabilities.Hierarchical and In September 2025 Absen officially released the 2025 Restricted Stock Incentive Programme. This incen-

Categorised Middle level: Enhance the understanding and execution capabilities of strate- tive programme intends to grant 12 million restricted shares accounting for approximately 3.25% of the

Cultivation Company's total share capital. The first grant covers a total of 216 incentive targets including company

Grassroots level: Match training content and formats based on job qualifications;

provide subsidies for key professional title evaluations and qualification certificates. directors senior management personnel core management personnel and core technical (business)

personnel. The assessment cycle covers the three accounting years from 2025 to 2027. This incentive

Learn: Design courses based on job qualifications. programme aims to perfect the Company's long-term incentive mechanism attract and retain

outstanding core talents and align the interests of shareholders the Company and the core team.Training and Practise: On-the-job practice and mentorship.Assessment

Closed Loop Assess: Course assessments practical assessments and debriefing evaluations.Conducting Talent Review

Apply: Assessment results are linked to job qualification promotions.The Company engaged external consulting firms to conduct the first 360-degree talent assessment and

Categorised Management: Categorise lecturers into practical and lecturing types. review covering all employees marking a shift from subjective judgment to data-driven decision-mak-

ing. Based on the assessment results the Company develops performance improvement or role transi-

Internal Dynamic Adjustment: Establish a two-way channel for lecturer promotion and tion plans for underperforming employees conducts targeted cultivation for high-potential talents and

Lecturer demotion evaluate from dimensions such as teaching data course development strengthens the talent pipeline.Development and comprehensive performance and optimise the lecturer team.Lecturer Incentives: Evaluate teaching quality from dimensions such as teaching

hours and teaching scores and provide teaching remuneration for lecturers. During the reporting period the percentage of employees receiving regular performance and career development

reviews was 100%.Absen Employee Development System67 2025 Environmental Social and Governance (ESG) Report 68

Occupational Health and Safety Work Safety Culture

Absen focuses on cultivating a culture of safe production. During the reporting year the Huizhou Manufacturing

Base organised a total of 7 comprehensive or specialised drills covering firefighting flood emergency response

Absen has established a systematic occupational health and safety management system comprehen- special equipment incident response chemical spills food poisoning electric shock first aid and environmental

sively strengthening the production safety defence line. We actively shape a safety culture with full partici- emergencies. Concurrently the Company actively delivered targeted safety training courses covering various

pation deeply embedding safety concepts into the entire operation process and safeguarding sustainable topics such as fire safety chemical management and machinery safety. We strictly implemented three-level

safety training for newly onboarded personnel and organised monthly safety training for on-the-job personnel in

business growth and employee well-being.workshops.The Huizhou Manufacturing Base continuously handles occupational disease prevention and control well regularly

Safety Management System conducting hazard monitoring on operational positions exposed to occupational hazard factors such as dust

noise and chemicals in the production process. For employees in positions with occupational hazards the Com-

Absen strictly complies with relevant laws and regulations such as the Law of the People's Republic of China on the pany standardises the organisation of pre-employment on-the-job and off-the-job occupational health exam-

Prevention and Control of Occupational Diseases and the Work Safety Law of the People's Republic of China inations.formulating internal systems including the Production Safety Responsibility System Safety Hazard Identification

and Governance System and Fire Safety Management System.The Company has established a Work Safety Management Committee

and appointed a dedicated safety officer. We actively cascade the

signing of production safety responsibility commitments at all levels to

ensure the rigorous implementation of fire safety environmental safety

and related initiatives.Furthermore the Company has established a safety risk hierarchical

control mechanism formulating specific management systems such as

the Emergency Preparedness and Response Management Regulations

and the Accident and Incident Management Regulations. The Company

identifies major safety risks such as fire poisoning and electric shock

establishing a list of high-risk locations and operational points clearly

defining accountable departments and targeted control measures for

each site. This approach effectively mitigates risks at the source and

ISO 45001 Occupational Health and

elevates overall safety management standards. Fire Drill

Safety Management System Certification

2025 Annual Safety Goal Achievement Status of Huizhou Manufacturing Base

Production safety accidents: 0

Occupational disease incidence rate: 0

Environmental pollution accidents and environmental emergencies: 0

Fire accidents: 0

Chemical Spill Drill

Food poisoning accidents: 0

Quarterly work-related injuries: ≤1

A total of 137 safety hazards identified throughout the year with a safety hazard rectification rate of 100% During the reporting period the Huizhou Manufacturing Base conducted safety onboarding training for 1074 new

Total Recordable Incident Rate (TRIR) per million hours worked: 0.99 hires organised 12 training sessions for current employees achieved a 100% employee health examination rate and

invested RMB 1.13 million in production safety.Benevolent

Dedication

Community

Wellbeing

Absen adheres to the philosophy of "people-ori-

ented giving back to society" transforming

business achievements into social well-being

through the Absen Public Welfare Foundation and

continuous educational support initiatives. Absen

firmly believes that corporate value lies not only in

creating wealth but also in inspiring goodwill and

sharing development achievements with the

community building a bridge of responsibility

between the Company and society through tangi-

ble efforts.71 2025 Environmental Social and Governance (ESG) Report 72

Rural Revitalisation and Social Contributions

Warming the Hearts of Rural Elderly and Supporting Livelihood Care

Over the years Absen has consistently paid attention to the rural development process. Relying on its public

Absen has long been dedicated to safeguarding the physical and mental health

welfare foundation the Company consistently provides financial and material aid to underserved regions

and livelihood security of the elderly and retired workers in rural areas. In January

with a focus on supporting the development of rural education and the improvement of people's livelihoods. 2025 the Absen Public Welfare Foundation provided dedicated support for elderly

care initiatives in Dingren Village distributing daily necessities such as grain and

In the future the Company will further integrate its business operations making support for rural revitalisation and cooking oil to residents aged 60 and above as well as retired workers. The Compa-

consolidating the expansion of poverty alleviation achievements a strategic focus. By empowering rural specialty ny also conducted on-site visits to care for the living conditions of the elderly

population injecting strength into rural livelihood security with practical actions.industries and promoting local employment the Company aims to foster sustainable economic and social devel-

opment while ensuring healthy growth and continuous returns for investors.

20152021

2019 The Absen Public Welfare Foundation 2025Chairman Ding Yanhui personally donated RMB 314600 to console

funded the establishment of the employees' families and reward The Absen Public Welfare Foundation

"Hongwei Public Welfare Foundation" Chairman Ding Yanhui led a team of 15 senior outstanding teachers and students of donated around RMB 1.1735 million to

named after a high school teacher executives to visit and survey 4 villages in Dingren Primary School and Xinzhuang support the educational development

with cumulative donations of RMB 3.11 Maojing Town Huan County Qingyang City Middle School in Qingyang City Gansu 2023 of Dingren Village Primary School and million. Gansu Province a designated assistance Province; The foundation plans to Xinzhuang Middle School in Qingyang

point of Longdong College and issued higher donate RMB 1 million to the Education City Gansu Province the construction of

education grants to 14 outstanding graduates The Company's cumulative Bureau of Qingyang City Gansu Ningxian No. 4 Middle School Gymnasi-

from the 4 local villages. donations to the Absen Public 2017 Province (including RMB 800000 for um New Year's care in Dingren Village Welfare Foundation reached RMB Xinzhuang Middle School and RMB and condolences to employees and 5.8 million; The Absen Public

200000 for Dingren Primary School) to their families. Among them 30 people

Sponsored and participated in the Welfare Foundation donated RMB be paid over ten years. from Dingren Village Primary School

large-scale public welfare documen- 290900 to support the educational and 70 people from Xinzhuang Middle

tary The Chinese Dream - Public development of multiple schools School received bonuses; a total of 288

Welfare Journey of 100 Enterprises and assist employees from elderly people in Dingren Village were

and launched a public welfare activity financially disadvantaged families. comforted on New Year's Day; and the

themed "Caring for Left-behind public welfare charity activities

Children Warm Winter Action in the benefited a total of 392 people.Great Northwest."

2016202020222024

Absen co-established the "Absen Promoted the development of urban The Absen Public Welfare Foundation The Absen Public Welfare Foundation

Class" with Longdong College in and rural education by setting up a donated RMB 430800 to console donated RMB 271000 to support the

Qingyang City Gansu Province reward fund for Dingren Primary School employees and their families make Red educational development of Dingren

providing students with opportuni- and Xinzhuang Middle School in Cross donations console the elderly Village Primary School and Xinzhuang

ties to get close to the business Qingyang City Gansu Province during the Mid-Autumn Festival in Middle School in Qingyang City Gansu

environment. frequently rewarding outstanding Dingren Village Qingyang City Gansu Province as well as for tree planting on

teachers and top students. Province and support the educational the playground of Xinzhuang Middle

development of Xinzhuang Middle School New Year's condolences in

School and Dingren Primary School in Dingren Village and condolences to

Qingyang City Gansu Province. employees' families.73 2025 Environmental Social and Governance (ESG) Report 74

Key Performance Indicators (KPI) Table Social KPIs

Environmental KPIs Indicator Unit 2025 2024 2023

Employee Structure

Indicator Unit 2025 2024 2023 Total number of employees Person 2552 2455 2713

Energy Consumption By Region

Total energy consumption MWh 27595.03 26918.85 27129.31 Domestic (including HK Macao and Taiwan) Person 2442 2378 2626

Energy consumption intensity MWh / million revenue 6.64 7.35 6.77 Overseas Person 110 77 87

Direct Energy Consumption By Gender

Total direct energy consumption Female Person 996 943MWh 3359.45 3343.79 10221066.57

Direct energy consumption intensity Male Person 1556 1512MWh / million revenue 0.81 0.91 16910.27

Gasoline (mobile combustion) Liter 26578.21 36370.29 29985.64 By Age

Self-generated renewable electricity 30 and under Person 952 961MWh 3127.02 10773025.73 804.34

Indirect Energy Consumption 31-50 Person 1538 1438 1590

Total indirect energy consumption MWh 24235.58 23575.06 26062.74 51 and above Person 62 56 46

Indirect energy consumption intensity MWh / million revenue 5.83 6.44 6.51 By Rank

Purchased electricity MWh 24235.58 23575.06 26062.74 Non-management Person 2327 2256 2531

Greenhouse Gas (GHG) Emissions Management Person 225 199 182

Total GHG emissions tCO2e 12918.81 12590.23 13895.91 By Employment Type

Scope 1 tCO2e 59.41 81.30 67.03 Full-time employees Person 2552 2455 2713

Scope 2 tCO2e 12859.40 12508.93 13828.89 Part-time employees Person 0 0 0

GHG emissions intensity tCO2e / million revenue 3.11 3.44 3.47 New Hire Structure

Total new hires

Water Resource Usage Person 965 1073 941

Total water consumption Ton 136981.70 152979.20 151687.50 By Region

Water consumption intensity Ton / million revenue 32.94 41.77 37.86 Domestic (including HK Macao and Taiwan) Person 902 1039 908

Wastewater Discharge Overseas Person 63 34 33

Total wastewater discharge Ton 130183 146561 144907 By Gender

Female

kg 7764.10 11556.33 Person 330 390 365Total pollutants in water 6237.45

Male Person 635 683 576

Chemical Oxygen Demand (COD) kg 2994.20 7550.61 5207.32

Suspended solids kg 3514.94 2343.29 911.28 By Age

30 and under

kg 1252.36 Person1640.30 116.25 599 628 508Ammonia nitrogen

Total phosphorus kg 2.60

Person

22.132.60364442432

51 and above Person 2 3 1

Exhaust Gas Emissions

Particulate matter kg 2292.84 3785.72 2650.01 By Rank

Non-management

Volatile Organic Compounds (VOCs) kg 461.67 929.66 3963.16 Person 941 1064 919

Solid Waste Management Person 24 9 22

Total general production waste kg 375242.00 334062.00 368984.00 By Employment Type

Full-time employees

Recyclable kg 323423.00 302099.00 326068.00 Person 965 1073 941

Part-time employees

Non-recyclable kg 51819.00 31963.00 42916.00 Person 0 0 0

Employee Turnover Rate

Total hazardous waste kg 746.00 434.00 298.00

Employee turnover rate % 25.07 35.02 33.67

Notes: By Region

1.The statistics for direct energy consumption cover gasoline (mobile combustion) consumption by Shenzhen Absen Optoelectronic Co. Ltd. and the Huizhou Domestic (including HK Macao and Taiwan) % 25.30 35.26 34.05

Manufacturing Base as well as self-generated renewable electricity consumption by the Huizhou Manufacturing Base. The conversion coefficient for standard coal

is derived from the General Principles for Calculation of the Comprehensive Energy Consumption (GB/T 2589-2020). Overseas % 19.71 26.67 19.44

2.The statistics for indirect energy consumption cover purchased electricity consumption by Shenzhen Absen Optoelectronic Co. Ltd. and Huizhou Absen Optoelectronic Co. Ltd.

3.Scope 1 GHG emissions calculation refers to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories published by the Intergovernmental Panel on By Gender

Climate Change (IPCC) and the IPCC Sixth Assessment Report. Scope 2 GHG emissions calculation refers to the 2023 national average grid emission factor for

electricity published by the Ministry of Ecology and Environment and the National Bureau of Statistics. Female % 22.61 31.96 32.14

4.Total water consumption statistics cover production water usage at the Huizhou Manufacturing Base as well as municipal water barreled water and bottled Male % 26.57 36.79 34.56

water consumption at Shenzhen Absen Optoelectronic Co. Ltd.

5.Wastewater discharge statistics cover domestic sewage at the Huizhou Manufacturing Base; there is no generation or discharge of productive industrial wastewater.

6.Exhaust gas emissions statistics cover the Huizhou Manufacturing Base.

7.Solid waste statistics cover the Huizhou Manufacturing Base.75 2025 Environmental Social and Governance (ESG) Report 76

Shenzhen Stock Exchange Guidelines Index

Indicator Unit 2025 2024 2023 Dimension No. Topic Correspond-ing Clause Chapter Index Page Index

By Age Product and Technological Innovation P25-P36

Climate Change Articles Responding to Climate Change P53-P5430 and under % 34.75 41.15 40.17 1

Response 21–28 Energy Management P55

31-50 % 16.73 30.80 28.22 Environmental KPIs P73

51 and above % 11.43 16.42 18.52 Pollutant Discharge Pollutant and Waste Management P562 Articles 30 Environmental KPIs P73

By Rank

Non-management % 25.56 36.75 34.90

Waste Disposal Pollutant and Waste Management P563 Articles 31

Management % 19.64 5.69 9.90 Environmental KPIs P73

Employee Rights and Benefits Ecosystem and

Environmental 4

Total employees taking maternity and paternity leave Person 61 49 51 Biodiversity Protection

Articles 32 Ecosystem and Biodiversity P57

Female Person 41 29 28 Environmental Compli-

5 Environmental Compliance Management P53

Male Person 20 20 23 ance Management

Articles 33

Employees returning to work in reporting period after leave Person 55 46 50

6 Energy Utilization

Energy Management P55

Articles 35

Female Person 35 26 27 Environmental KPIs P73

Male Person 20 20 23 Water Resource Management P56

7 Water Resources Utilization

Employees returning to work and still employed after 12 months Person 55 38 39 Articles 36 Environmental KPIs P73

Female Person 35 23 23

8 Circular Economy Circular Economy P58Male Person 20 15 16 Articles 37 Environmental KPIs P73

Return-to-work Female % 85.37 89.66 96.43

9 Rural Revitalization Rural Revitalisation and rate after leave Male % 100 100 100 Articles 39 P71-P72Social Contributions

Female % 85.37 79.31 82.14

Retention rate after leave 10 Social Contribution Rural Revitalisation and Social Contributions P71-P72Male % 100 75 69.57 Articles 40 Social KPIs P74-P75

Employee Training and Development

Percentage of employees receiving regular performance and % 100 100 100 11 Innovation-driven Development Articles 42 Product and Technological Innovation P25-P36career reviews

Number of training sessions conducted Session 222　 257 298

Training investment RMB 10000 966.35 565.22 335.34 12 Ethics of Science and Technology Articles 43 Product and Technological Innovation P36

Average training hours per employee Hour 25.3 23.6 16.65

Social

Employee training coverage rate % 96.25 95.75 95 13 Supply Chain Security Articles 45 Supply Chain Management P45-P48

Occupational Health & Safety (Huizhou Manufacturing Base)

Employee health examination rate % 100 100 100 14 Equal Treatment of SMEs Articles 46 Supply Chain Management P45-P48

Fatality rate due to work-related injuries % 0 0 0

High-consequence work-related injury rate % 0 0 0 15 Product and Service Articles 47 Product and Service Safety and Quality P36-P44

Safety and Quality

Recordable work-related injury rate % 0.99 0.47 0.42

Data Security and Customer

Number of recordable work-related injuries Case 4 2 2 16 Privacy Protection Articles 48 Information Security and Privacy Protection P48-P50

Days lost due to work-related injuries Day 170 37 113

Employee Rights and Benefits P61-P63

Investment in production safety RMB 10000 113 117 135 17 Employees Articles 50 Employee Training and Development P64-P66

Community Participation Occupational Health and Safety P67-P68

Public welfare donation amount RMB 1173452 270967 290867.7 18 Due Diligence Articles 52 Supply Chain Management P45-P48

Number of beneficiaries from public welfare Person 392 403 142

Sustainable 19 Stakeholder Engagement Articles 53

ESG Management P12-P14

Notes: Enhancing Corporate Governance P17-P18

1.Turnover rate of a certain category of employees = Number of turnovers in that category during the reporting period / (Total number of employees in that Development

category at the end of the reporting period + Number of turnovers in that category during the reporting period). Governance Anti-commercial bribery and

2.Maternity/paternity leave includes: prenatal check-up leave maternity leave paternity leave and breastfeeding leave. 20 Articles 55Anti-corruption Business Ethics P21-P22

3.Return-to-work rate = Total number of employees actually returning to work after leave / Total number of employees expected to return to work after leave * 100.

4.Retention rate = Total number of employees still employed 12 months after returning to work / Total number of employees who returned to work after leave in the

previous reporting period * 100. 21 Fair Competition Articles 56 Business Ethics P21-P22

5.Occupational health and safety indicators cover employees at the Huizhou Manufacturing Base. Supply Chain Management P45-P48

6.Fatality rate due to work-related injuries = Number of fatalities due to work-related injuries / Number of hours worked * 1000000.

7.High-consequence work-related injury rate (excluding fatalities) = Number of high-consequence work-related injuries (excluding fatalities) / Number of hours

worked * 1000000.

8.Recordable work-related injury rate = Number of recordable work-related injuries / Number of hours worked * 1000000.77 2025 Environmental Social and Governance (ESG) Report 78

GRI Standards Index

Usage Instruction Absen has reported the information for the period from January 1 2025 to December 31

GRI Standard Disclosure Chapter Index Page Index

2025 in accordance with the GRI Standards

GRI 204: Procure-

GRI Used 204-1 Proportion of spending on local suppliers Supply Chain Management P45-P48GRI 1: Foundation 2021 ment Practices 2016

205-2 Communication and training about Business Ethics P21-P22

GRI 205: Anti-cor- anti-corruption policies and procedures

GRI Standard Disclosure Chapter Index Page Index ruption 2016 205-3 Confirmed incidents of corruption and Business Ethics P21-P22

actions taken

2-1 Organizational details About Us P7-P10

2-2 Entities included in the organization’s Business Ethics P21-P22About This Report P1-P2 GRI 206: Anti-com-sustainability reporting 206-1 Legal actions for anti-competitive petitive Behaviour behaviour anti-trust and monopoly practices

2-3 Reporting period frequency and contact point About This Report P1-P2 2016 Supply Chain Management P45-P48

2-4 Restatements of information No restatements of information /

301-2 Recycled input materials used Circular Economy P58

2-6 Activities value chain and other About Us P7-P10 GRI 301:

business relationships Materials 2016ESG Management P12-P14 301-3 Reclaimed products and their packaging materials Circular Economy P58

2-7 Employees Social KPIs P74-P75

302-1 Energy consumption within the organization Environmental KPIs P73

2-8 Workers who are not employees Social KPIs P74-P75

P73

2-9 Governance structure and composition Environmental KPIsEnhancing Corporate Governance P17-P18 302-3 Energy intensityGRI 302:

2-10 Nomination and selection of the highest Enhancing Corporate Governance P17-P18 Energy 2016governance body 302-4 Reduction of energy consumption Energy Management P55

2-11 Chair of the highest governance body Enhancing Corporate Governance P17-P18 302-5 Reductions in energy requirements of

2-12 Role of the highest governance body in Energy Management P55products and services

overseeing the management of impacts Enhancing Corporate Governance P17-P18

2-13 Delegation of responsibility for managing impacts Enhancing Corporate Governance P17-P18 303-1 Interactions with water as a shared resource Water Resource Management P56

GRI 2: General 2-14 Role of the highest governance body Enhancing Corporate Governance P17-P18 GRI 303: Water

and Effluents 303-2 Management of water discharge-related impacts Water Resource Management P56Disclosures 2021 in sustainability reporting

ESG Management P12-P14 2018

2-15 Conflicts of interest Business Ethics P21-P22 303-5 Water consumption Environmental KPIs P73

2-16 Communication of critical concerns ESG Management P12-P14 GRI 304： 304-2 Significant impacts of activities products Ecosystem and Biodiversity P57

2-17 Collective knowledge of the highest Biodiversity 2016 and services on biodiversity

governance body Enhancing Corporate Governance P17-P18

2-18 Evaluation of the performance of the 305-1 Direct (Scope 1) GHG emissions Environmental KPIs P73

highest governance body Enhancing Corporate Governance P17-P18

2-19 Remuneration policies Enhancing Corporate Governance P17-P18 305-2 Energy indirect (Scope 2) GHG emissions Environmental KPIs P73

2-20 Process to determine remuneration Enhancing Corporate Governance P17-P18

305-4 GHG emissions intensity Environmental KPIs P73

Chairman’s Statement P3-P4 GRI 305:

2-22 Statement on sustainable Emissions 2016

development strategy ESG Management P12-P14 Responding to Climate Change P53-P54

305-5 Reduction of GHG emissions

2-23 Policy commitments ESG Management P12-P14 Environmental KPIs P73

2-24 Embedding policy commitments ESG Management P12-P14

305-7 Nitrogen oxides (NOx) sulfur oxides (SOx)

2-25 Processes to remediate negative impacts ESG Management P12-P14

Environmental KPIs P73

and other significant air emissions

2-26 Mechanisms for seeking advice and

raising concerns ESG Management P12-P14 306-1 Waste generation and significant waste-related impacts Pollutant and Waste Management P56

2-27 Compliance with laws and regulations Not occurred during the reporting period /

Pollutant and Waste Management P56

2-29 Approach to stakeholder engagement P12-P14 306-2 Management of significant waste-related impactsESG Management

3-1 Process to determine material topics GRI 306：ESG Management P12-P14 Waste 2020 306-3 Waste generated Environmental KPIs P73

GRI 3: Material

Topics 2021 3-2 List of material topics ESG Management P12-P14

306-4 Waste diverted from disposal Environmental KPIs P73

3-3 Management of material topics ESG Management P12-P14

201-2 Financial implications and other risks

GRI 201: Economic Responding to Climate Change P53-P54 306-5 Waste directed to disposal Environmental KPIs P73and opportunities due to climate change

Performance 2016 201-3 Defined benefit plan obligations and

other retirement plans Employee Rights and Benefits P61-P63 308-1 New suppliers that were screened using GRI 308：Supplier Supply Chain Management P45-P48

GRI 203: Indirect 203-1 Infrastructure investments and

environmental criteria

services supported Rural Revitalisation and Social Contributions P71-P72 Environmental Economic Impacts Assessment 2016 308-2 Negative environmental impacts in the Supply Chain Management P45-P482016 203-2 Significant indirect economic impacts Social KPIs P74-P75 supply chain and actions taken79

GRI Standard Disclosure Chapter Index 页码Pa索ge引 Index

401-1 New employee hires and employee turnover Social KPIs P74-P75

GRI 401：

Employment 2016 401-2 Benefits provided to full-time employees that are P61-P63

not provided to temporary or part-time employees Employee Rights and Benefits

401-3 Parental leave Employee Rights and Benefits P61-P63

403-1 Occupational health and safety management

system Occupational Health and Safety P67-P68

403-2 Hazard identification risk assessment and Occupational Health and Safety P67-P68

incident investigation

403-3 Occupational health services Occupational Health and Safety P67-P68

403-4 Worker participation consultation and Occupational Health and Safety P67-P68

communication on occupational health and safety

GRI 403：Occupation- 403-5 Worker training on occupational health and

al Health and Safety safety Occupational Health and Safety

P67-P68

2018

403-6 Promotion of worker health Occupational Health and Safety P67-P68

403-7 Prevention and mitigation of occupational health and P67-P68

safety impacts directly linked by business relationships Occupational Health and Safety

403-8 Workers covered by an occupational health and Occupational Health and Safety P67-P68

safety management system

403-9 Work-related injuries Occupational Health and Safety P67-P68

403-10 Work-related ill health Occupational Health and Safety P67-P68

Employee Training and P64-P66

Development

404-1 Average hours of training per year per employee

GRI 404 Training Social KPIs

P74-P75

：

and Education 2016

404-2 Programs for upgrading employee skills and Employee Training and P64-P66

transition assistance programs Development

404-3 Percentage of employees receiving regular Employee Training and P64-P66

performance and career development reviews Development

Enhancing Corporate P17-P18

GRI 405：Diversity and Governance

Equal Opportunity 2016 405-1 Diversity of governance bodies and employees

Employee Rights and Benefits P61-P63

GRI 406：Non-dis- 406-1 Incidents of discrimination and corrective P61-P63

crimination 2016 Employee Rights and Benefitsactions taken

414-1 New suppliers that were screened using social

criteria Supply Chain Management

P45-P48

GRI 414：Supplier

Social Assessment 2016 414-2 Negative social impacts in the supply chain and Supply Chain Management P45-P48

actions taken

416-1 Assessment of the health and safety impacts Product and Service Safety P36-P44

GRI 416：Customer of product and service categories and Quality

Health and Safety 2016 416-2 Incidents of non-compliance concerning the Product and Service Safety P36-P44

health and safety impacts of products and services and Quality

417-1 Requirements for product and service information Product and Service Safety P36-P44

and labelling and Quality

GRI 417：Marketing 417-2 Incidents of non-compliance concerning product Product and Service Safety P36-P44

and Labelling 2016 and service information and labelling and Quality

417-3 Incidents of non-compliance concerning Product and Service Safety P36-P44

marketing communications and Quality

GRI 418：Customer 418-1 Substantiated complaints concerning breaches Information Security and

Privacy 2016 of customer privacy and losses of customer data Privacy Protection

P48-P50