Wuxi Lead Intelligent Equipment Co. Ltd.2024 Environmental

Social and Governance

(ESG) Report目录

02 About this Report About LEAD Corporate Governance Environment and Energy

Overview

08 Introduction 36 Organizational Structure 82 Environment and Energy Management Systems

Reporting Entity 09 Development History 37 Investor Equity Protection 83 Green Production

Reporting Period 10 Business Layout 38 Risk Management and Internal Control 86 Green Operation

11 Global Layout 40 Business Ethics

Basis of the Report

12 Strategic Direction 42 Business Information Protection

Data Source and Reliability 13 Corporate Culture

Form of the Report 14 Annual Rating and Award Products and Services Community Responsibility

Contact Us

46 Product R&D and Intellectual Property Management 92 Public Welfare Donations

49 Product Quality and Safety 94 Community Activity

Chairman Message Sustainability Management System04 53 Customer Service System 97 Public Welfare Culture

18 ESG Governance Structure 56 Working Together to Promote Industry Development

19 Sustainable Development Strategy

20 Response to the United Nations Sustainable Supply Chains Appendix

Sustainable Development Goals

22 Materiality Assessment 60 Supply Chain Management System 100 Key Performance Table

22 Stakeholder Engagement 62 Responsible Procurement Management 103 UNGC Ten Principles Index

63 Supplier Quality Management and Full Empowerment 104 GRI Content Index

108 Third-party Verification and Authentication

Information

Special: Responses to Climate Change Labor and Human Rights

24 Governance 66 Protection of Employee Rights and Interests

25 Strategy 69 Employee Diversity 112 Suggestions and Feedbacks

28 Impact Risk and Opportunity Management 69 Employee Recruitment

29 Metrics and Targets 70 Employee Development

31 Green Solutions 72 Employee Benefits

75 Occupational Health and Safety

CATALOGUEAbout LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

About this Report

Overview Data Source and Reliability

This report is the fifth Social Responsibility or Environmental Social and Governance (hereinafter The financial data in this report comes from the audited financial report of the Company. If there is

referred to as "ESG") report issued by Wuxi Lead Intelligent Equipment Co. Ltd. (hereinafter any discrepancy between the financial data and the annual report the annual report shall prevail.referred to as “LEAD" or “the Company") reflecting the practices and achievements of the Compa- Other data come from the data provided by relevant departments of the Company. Unless otherwiseny and its affiliates in ESG. This report was reviewed and approved at the 11th meeting of the 5th specified the currency types and amounts involved in this report are denominated in RMB.Board of Directors on April 28 2025. This report is published in simplified Chinese and English. In case of any discrepancy the simplified

Chinese version shall prevail.Reporting Entity Reporting Period Form of the Report

Unless otherwise specified the scope January 1 2024 to December 31 2024 (hereinafter This report is published in electronic version. If you need to obtain it please download the electronicof this report covers LEAD and its referred to as the “reporting period"). In order to version of this report on www.leadintelligent.com or www.cninfo.com.cn.subsidiaries and branches the same enhance the comparative and forward-looking nature

as the scope of the consolidated of this report some of the contents may contain

financial statement. retrospective information or forward-looking

descriptions as appropriate.Basis of the Report Contact Us

This report is based on the Self-Regulatory Guidelines No. 2 for Companies Listed on Shenzhen Stock Address: No.18 Xinzhou Road National High-tech Industrial Development Zone Wuxi City

Exchange--Standardized Operation of Companies Listed on the ChiNext Market (December 2023 Jiangsu ProvinceRevision) and Annex 1 “Disclosure Requirements for Social Responsibility Reports of Listed Phone: 0510-81163600Companies” of the Self-Regulatory Guidelines No. 1 for Companies Listed on the ChiNext Market of Email: ESG@leadintelligent.com

Shenzhen Stock Exchange--Business Handling (2024 Revision) and references the Self-Regulatory

Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange--Sustainability Report (For Trial

Implementation) the Self-Regulatory Guidance No. 3 for Companies Listed on the ChiNext Market of

Shenzhen Stock Exchange--Preparation of Sustainability Report the Corporate Sustainability

Disclosure Standards--Basic Standards (For Trial Implementation) issued by the Ministry of Finance of

the P.R.C. the GRI Standards of the Global Sustainability Standards Board (GSSB) the UN

Sustainable Development Goals (SDGs) and key concerns of domestic and international major ESG

ratings.

02 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 03About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Chairman Message

Wuxi Lead Intelligent Equipment Co. Ltd.yanqing wang

Chairman

In terms of carbon neutrality LEAD has released its carbon the UNGC we have always adhered to the core conventions of

neutrality blueprint committing to achieve carbon peaking at the International Labor Organization (ILO) and have built a

core operations by 2030 and achieve carbon neutrality at core diverse employee care system that extends from occupational

operations by 2035 in Scope 1 and 2. This makes LEAD become health and safety management to cultural activities aiming to

the first Chinese enterprise engaging in new energy intelligent make every employee be respected and realize their value in

equipment to publish a clear timetable in the respect. This their work.commitment is based on a clear strategic path: First we will

continue to increase investment in green technology R&D and Multiple commendations have honored LEAD’s achievements and

launch low-carbon and intelligent equipment solutions to help progress in 2024. We have released our Social Responsibility/ESG

customers reduce production energy consumption and carbon report for the fifth consecutive year. Our CDP Climate Change

footprint. Second we will accelerate the digital and intelligent and Water Security ratings have both improved to a B level. We

management of energy consumption and carbon emissions by have also obtained an S&P Global ESG score of 41 the highest A

The year of 2024 marks a year of continuous advancement in the operational capability of companies. Therefore LEAD has upgrading the planning and design of the energy management rating for six years in a row in the information disclosure

ESG field for LEAD. On the 20th anniversary of the proposal of incorporated ESG governance into our development strategy system the carbon management system and the carbon evaluation by the Shenzhen Stock Exchange (SZSE). These

the ESG concept by the United Nations Global Compact (UNGC) aiming to drive global energy transition with technological management platform. Furthermore we will further collaborate achievements showcase our outstanding performance in the ESG

the global ESG policy system has entered a substantive and innovation. with upstream and downstream partners to build a green supply field. Additionally we have obtained the certification for ISO 37001

in-depth stage. The Baku Climate Unity Pact reached at the 29th chain so as to promote the building of a low-carbon supply chain Anti-bribery management system and the Level 3 certificate for

UN Climate Change Conference in Azerbaijan clearly defines the LEAD has contributed to the global energy transition with the power system while providing customers with low-carbon intelligent ISO 56005 Innovation and Intellectual Property Management

climate funding goals and financing arrangements after 2025. of intelligent manufacturing in 2024. According to Frost & Sullivan manufacturing solutions. Capability demonstrating our commitment to compliance

The three major securities exchanges in China have also issued LEAD is the world's largest provider of new energy intelligent operations and our pursuit of high-standard governance.guidelines for the sustainability reporting of listed companies. equipment and solutions in terms of the 2024 order value with a In terms of social responsibility LEAD has always upheld the

All of these have raised higher requirements for ESG information market share of 9.1% an increase of 3.3% from 2023. Among them concept of "Intelligence for Good" and been actively fulfilling The road ahead is long and arduous but with determined steps

disclosure and management of enterprises. intelligent equipment for Li-ion battery accounted for 22.4% of the its social responsibilities. We have established a long-term we will reach our destination. In the ESG journey concerning

global market share while smart logistics equipment for Li-ion assistance mechanism with 12 underprivileged children in the fate of all humanity the new energy equipment

In the context of profound changes in the global economic battery 23.8%. In addition LEAD’s XBC ultra-high speed stringer Yan'an City Shaanxi Province to help them complete their manufacturing companies will exert unparalleled power. Going

landscape and social environment sustainable development has for photovoltaic module manufacturing ranked first among global studies kindling hopes through education. The LEAD Volunteer forward LEAD will always uphold the mission of promoting

become the theme of our time. As a world-leading new energy photovoltaic intelligent equipment providers in terms of shipment Service Association was established to concentrate our public global energy transition through intelligent manufacturing.intelligent manufacturing solution provider LEAD is well aware volume. Our self-developed MEAR2R assembly line Generation 4 service efforts and to encourage more employees to participate Driven by technological innovation and based on intelligent

of the responsibility and mission the age has entrusted on us. We can be used for fuel cell and electrolyzer membrane manufacturing in public good undertakings. We observe laws and regulations manufacturing we will work hand in hand with upstream and

are well aware that ESG governance has gone beyond the scope effectively promoting the industrialization of hydrogen energy and during operations and pay taxes as required. LEAD ranked downstream partners to contribute wisdom and strength to the

of corporate responsibility and has become a key element in fuel cells. seventh in the 2024 Top 100 Taxpayers in Wuxi providing strong future of global new energy and the sustainable development

measuring the future core competitiveness and sustainable support for economic and social development. As a member of for mankind.

04 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 05About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

ABOUT LEAD

06 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 07About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

About Lead

2024

Won the titles of "2024 Top 500 Private Manufacturers in China" andIntroduction Development "Fortune China Top 50 Techs” and launched a whole-line solution for solid-state battery production line a step forward to become a world

History leading intelligent equipment manufacturer

Established in 2002 Wuxi Lead Intelligent Equipment Co. Ltd was listed on the ChiNext market of SZSE in 2022

2015 with stock code 300450. The Company has grown into the world's leading turnkey solution provider of new Acquisition of ONTEC in Germany and establishment of the European

energy intelligent manufacturing covering intelligent Li-ion battery equipment intelligent photovoltaic Technical Capability Center accelerating the globalization process

equipment intelligent 3C equipment intelligent logistics automobile production line intelligent hydrogen

equipment laser precision machining and other fields. By the end of the reporting period LEAD has 15025

employees including more than 4512 R&D engineers. LEAD is committed to providing customers with

one-stop overall solutions from consultation design manufacturing installation commissioning training and 2019

Included in MSCI index and becoming representative of

subsequent upgrades and continuously improving the customer experience. high-end equipment enterprises on ChiNext

Founded in Stock code 2015 2017

2002 300450 Listed on the ChiNext of Shenzhen Stock Wholly-owned acquisition of Titans Exchange with code 300450 and renamed New Power integrating upstream

Wuxi Lead Intelligent Equipment Co. Ltd. and downstream industries to

become whole-line Li-ion battery

equipment manufacturer

Number of employees Number of R&D engineers

150254512

2011

Shareholding System Reform:

Wuxi Lead Automation Equipment Co. Ltd. By Shares

2009

Entering Photovoltaic Equipment Industry

Vision Core Values Mission

To be a world leading intelligent Customer-centric devotion and diligence Create value for customers

equipment manufacturer integrity and pragmatism Seek wellbeing for employees 2008

selflessness and responsibility innovation Entering Li-ion Battery Equipment Industry

Focus perfection reputation efficiency

2002

Establishment of Wuxi Lead Automation Equipment Co. Ltd.

08 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 09About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Business Layout Global Layout

Focusing on “New Energy + High-end Equipment” LEAD is committed to providing customers with turnkey intelligent manufacturing

With continuous upgrading of the market and customer needs in mind LEAD is firmly committed to the internationalization strategy

solutions.integrating resources setting up offices and branches worldwide and always keeping ahead of the curve. At present LEAD products

have been exported to many countries and regions such as USA Germany France Japan Korea India Sweden Turkey Vietnam etc.Lithium-ion Battery Intelligent Equipment We have set up several branches and subsidiaries worldwide using globalized technology to serve global customers thus gaining

global support.Front-end Process Middle-end Process Back-end Process Solid-state Batteries

Mixing Coating Rolling Flaking Winding Stacking Assembly Chemical Composition Dry Electrodes Solid-state Stacking

Equipment Equipment Equipment Equipment Equipment Equipment Equipment Equipment Equipment Equipment Germany Wuxi China

Rolling and Slitting Drying Electrolyte Injection Equipment Inspection Copper-lithium Integrated （European Headquarters）

Integrated Equipment Equipment Slitting and Stacking Integrated Equipment Equipment Equipment （LEAD Headquarters）

Ningde China

Netherlands Sweden

PV Intelligent Equipment USA Hong Kong China Shanghai China

France Slovakia

Dongguan China

Module Cell

MBB string welding 0BB Stringer XBC Stringer Integrated Laser Scribing Monocrystalline Texturing BSG Removal and Alkali Polishing UK Hungary Zhuhai China

Equipment Equipment Equipment Equipment Cleaning Equipment Etching Cleaning Equipment Mexico

Tab Welding Complete Busbar IBC Stringers Screen Printing/sintering Testing and Sorting

Equipment Welding Equipment Equipment Equipment Process Equipment Turkey Vietnam Republic of Korea

Singapore Japan

3C Intelligent Equipment

Malaysia

Assembly and Testing Automated Visual Inspection

3D Assembly High-flow Sealing Five-axis High-speed Electrical Testing Reliability Testing Visual Measurement Defect Detection Imaging Testing

Dispensing

Intelligent Logistics Systems

Intelligent Logistics Equipment

Shuttle Vehicles Tackers Conveyor Lines Intelligent Automated Warehouses

Hydrogen Energy Intelligent Equipment

Electrolyzer and Fuel Cell Production Lines

Pulping/grinding Catalyst Layer Membrane Electrode Stack and System Assembly Bipolar Plate Production Stack Activation and

Equipment Coating Equipment Preparation Equipment Equipment Equipment Testing Platform

Automotive Intelligent Production Line Laser Precision Processing Equipment

Intelligent Production Lines PACK Intelligent Electric Drive Intelligent Wafer Marking Laser Notching Laser Welding

for All Forms of Modules Production Lines Production Lines Equipment Equipment Equipment

Battery Charging and Automotive Intelligent FPC/PCB Laser High-precision Mass

Discharging Test Lines Assembly Lines Drilling Equipment Transfer Equipment

Expand Product Matrix Based on Production and Turnkey Solution Delivery Capabilities

10 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 11

Platform Based Approach to Expand into Diverse Business SectorsAbout LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Strategic Direction Corporate Culture

Since its inception LEAD has always regarded corporate culture as a driving force for development mobilizing all employees to

incorporate the culture in thinking discussion and practice and constantly upgrading enriching and extending the concept of our

corporate culture. Employees actively practice cultural values and participate in activities such as Chairman quotes study exemplary

story promotion cultural concept refining and cultural theme months demonstrating the charm of LEAD corporate culture and

Excellent Operation building a unique corporate culture system."Excellent operation" is to enhance competitiveness by ensuring In order to promote corporate culture effectively we have established performance-oriented employee management and leader

product excellence efficient operation of the value chain and appointment systems. In addition multi-level and multi-form training helps employees gain a deep understanding of the essence of

deep optimization of the cost structure. Meanwhile with a strong corporate culture. The Chairman personally revised the “LEAD Corporate Culture Manual” further clarifying the connotation and

focus on customer core value and satisfaction of their needs we requirements of corporate culture. It is disseminated through various channels such as company website wall posters department

aim to achieve a triple leadership in technological advancement signboards and name badges to create a strong cultural atmosphere. This allows the corporate culture to deeply resonate with

cost efficiency and delivery speed with integrated product employees and become a shared value and a behavioral guideline for all staff.development system as the core.Core Values

Customer-centric devotion and diligence integrity and pragmatism

selflessness and responsibility innovation focus perfection

reputation efficiency

Mission

Create value for customers Seek wellbeing for employees

Steady Growth

Vision

"Steady growth" is the cornerstone of the sustained development To be a world leading intelligent equipment manufacturer

and consolidation of a company's competitive edge. Strengthening

core competitiveness is the source of this process. The Company

needs to clarify its business layout and dedicate itself to the

overall quality and service improvement. Based on this LEAD

adheres to the principles of market-oriented demand efficient ept CultConc ure

resource sharing and collaboration and steady and orderly

progress. We prudently carry out diversified expansion in order to

effectively reduce operational risks broaden revenue channels Culture

and achieve sustainable development. Green LEAD System

Build an environmental-friendly enterprise

Behavior cultur

e

Agile Innovation

High-tech and high-value-added products are the essential path

for driving business leapfrog development. LEAD is committed to

advancing new technologies new businesses and new markets in

a forward-looking manner to gain a competitive advantage. With Execution

Focus perfection reputation efficiency

an efficient and professional team that quickly responds to the

market we focus on breakthrough strategies in our core areas.Driven by innovation we strive to build our core competitiveness Talent

enhance our products and services and innovate all-round Virtue attitude and ability

practices. Currently we have achieved a leading position globally

in many fields including Li-ion batteries photovoltaics hydrogen Orientation

Customer-centric

energy and more. to be a world leading

intelligent manufacturing turnkey solution provider

12 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 13

Environment

Culture

Quality Culture

Craftsmanship focus on quality

Innovation Culture

Independent innovation to make an intelligent LEAD

Brand Culture

Be a world-leading intelligent manufacturing turnkey solution provider

ulture-roC ote

Construc

d

tionAbout LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Annual Rating and Award

General Performance ESG Rating

In 2024 LEAD continues to maintain an excellent ESG rating level by the following ESG rating agencies:

Title Issuing Authority

2024 Top 500 Machinery Industrial Enterprises in China China Machinery Enterprise CDP S&P Global

Management Association

Department of Human Resources and

Postdoctoral Research Station Social Security of Jiangsu Province

2024 Top 500 Private Manufacturers in China All-China Federation of Industry and Commerce

ESG score: 41

Climate change 2024 B

2024 Forbes China Go-International Brands Top 30 Forbes China CSA score: 39Water safety 2024 B

Included in S&P Global’s 2025

2024 Fortune China Top 50 Techs Fortune Sustainability Yearbook (China)

Industry and Information Technology

Pioneering Manufacturers of Jiangsu Province Department of Jiangsu

The first set of major equipment recognition in Jiangsu Province —

LHCCM480CA/A high-end complete set equipment for precision coating of Industry and Information Technology

hydrogen fuel cell membrane electrode Department of Jiangsu

Information Disclosure Evaluation result A Wind ESG rating EcoVadis

of ChiNext Listed Companies in 2023-2024 Shenzhen Stock Exchange

Listed Company Golden Bull Award — Golden Information Disclosure Award China Securities Journal

Award for Investor Relations Management of Chinese Listed Companies Securities Times

Excellent New Quality Productivity Award Stock Star A

ESG Innovation Award of Guancha 2024 ESG Exemplary Enterprise Guancha Net

Green Supply Chain Management Award of the 2nd China

Corporate Carbon Neutrality Performance Ranking Yicai

2024 Top 30 Best Employers in China Zhilian Recruitment

14 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 15About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

SUSTAINABILITY

MANAGEMENT SYSTEM

16 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 17About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Sustainability Management System

ESG Governance Structure Sustainable Development StrategyBased on the actual situation of the Company LEAD has established an ESG governance system with the Chairman as the principal LEAD takes “Promoting Global Green Energy Transition Through Intelligent Manufacturing" as the core of its sustainable developmentresponsible person which provides a solid organizational foundation and institutional guarantee for the formulation of sustainable strategy establishes five ESG value creation and risk management modules namely "creating value for customers” "seekingdevelopment goals progress tracking and related risk management. At the same time the Company links ESG-related performance well-being for employees” "achieving mutual benefits for partners” "driving transformation for society” and "paving the way for awith the salary performance appraisal system of relevant management continuously improves the corporate governance level and long-lasting future” and joins hands with stakeholders to support the realization of the United Nations Sustainable Development Goals

follows up the key concerns of stakeholders so as to promote the steady operation and sustainable development of the business and and contribute to a better future for mankind. LEAD is committed to: meeting the needs of our customers through high-qualityrealize the vision of "becoming a world leading intelligent equipment manufacturer.” innovative products and services; growing with our employees through a comprehensive employee compensation and benefit system

and development and promotion channel; bringing win-win opportunities to upstream and downstream partners through the promotion

of intelligent industry transformation and sustainable value chain management; sharing the fruits of development with our

shareholders by realizing our own sustained and healthy growth; helping build a greener more inclusive and more affordable world by

Guidance and Highest responsible body for ESG management and public disclosure responsible for reviewing investing in clean technology and public welfare and charity; paving the way for the everlasting development of the Company by building

supervision Board of Directors and approving the Company's ESG strategic objectives and important affairs as well as a well-established and efficient governance system.monitoring and guiding the ESG Management Committee's ESG governance work.Promoting Global Green Energy Transformation

Through Intelligent Manufacturing

ESG Management The Chairman serves as the Director of the ESG Management Committee and the heads of

Decision-making

management Committee various departments serve as committee members working in cooperation with the ESG

(Director: Chairman) Office. The ESG Management Committee is responsible for guiding supervising managing and

making decisions on the ESG work of the Company including monitoring the risks and Creating value for Seeking well-being

opportunities related to ESG formulating the ESG development strategy objectives and customers for employees

management system of the Company coordinating and promoting the implementation of ESG ·Product quality and safety ·Employee rights and welfare

strategic objectives and projects reviewing the annual ESG reports and other publicly disclosed ·Technology innovation ·Human capital development

information conducting regular communication and opinion collection with external expert ·Product carbon footprint and ·Occupational health and safety

partners and other key stakeholders and reporting the progress and achievements of ESG life cycle management

work to the Board of Directors quarterly. In addition there are executive committees under the

heads of various departments which are responsible for implementing specific ESG work.Coordination Composed of full-time ESG officers to support the work of the ESG

support ESG Office Management Committee. It is responsible for performing work planning and Achieving mutual benefits Driving transformation

project design according to the Company's ESG strategic objectives for partners for society

conducting daily overall coordination and information collection and ·Sustainable growth ·Responses to climate change

management of the Company's ESG affairs and taking the lead in compiling ·Driving industrial intelligent ·Emissions and waste management

the annual ESG reports. transformation ·Energy management

·Sustainable supply chain management ·Clean technology and green products

·Sustainable sourcing of raw materials ·Philanthropy and community

engagement

Departments The members of ESG Management Committee and Executive Committees take the lead to

Execution Branches and promote the implementation of specific ESG work in various departments branches and

Subsidiaries subsidiaries follow up and track relevant ESG indicators and report to the ESG Management

Committee on a regular basis.Paving the way for a long-lasting future

External ·ESG risk management and disclosure ·Intellectual property protection

consultation Expert Think Tank Set up a special external expert advisory group to provide professional advices to the ESG ·Business ethics and compliance ·Information security and privacy

and Partners Management Committee support the Committee's work and decision-making provide ESG ·Anti-corruption ·Corporate governance

professional capacity building and training and share ESG best practices and trends on a

regular basis.

18 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 19

Value Creation Module Risk Management ModuleAbout LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Products and Services Environment and Energy

Sustainable Supply Chains

Environment and Energy LEAD emphasizes the conservation and reuse of water resources. We

have achieved the cyclical and efficient use of water resources by

Response to the United Nations Sustainable Development Goals LEAD is committed to adopting a sustainable production synchronously constructing rainwater collection and utilization systems

model and adheres to the environmental management in new projects. Additionally we enhance the water-saving awareness of

concept of "clean production green development." We actively employees through daily training and publicity.As a member of the UNGC LEAD supports the UNGC's ten principles in the areas of carry out pollution control and emission management and

have obtained certifications for ISO 14001 environmental

human rights labor environment and anti-corruption and continues to invest in Responses to Climate Change

management system and ISO 50001 energy management

addressing environmental challenges developing and promoting environmentally Environment and Energysystem. In addition to our own operation we also build a

friendly technologies eliminating occupational discrimination and combating responsible supply chain that requires suppliers to comply

Under the guidance of the national dual carbon goals LEAD has built a

corruption in order to promote the achievement of the UN 2030 SDGs and contribute with relevant laws and regulations as well as the LEAD complete ecosystem of new energy green intelligent manufacturing

to the global sustainable development process. Supplier Code of Conduct in terms of labor rights health and actively contributing to the global energy transition. We have enhanced

safety environment and business ethics in order to establish

climate governance levels by establishing the Company 2035 carbon

a sustainable supply chain management system.neutrality goal and incorporating climate change into our strategic

LEAD Actions planning risk management system and regular production and operation management. We have optimized the operational energy mix

through the deployment of distributed photovoltaics and other methods

Community Responsibility to support a shared low-carbon future.LEAD has joined hands with Xinwu District Charity Association to establish the "Warm Light Public Welfare Fund” Sustainability Management System

aiming to bring warmth to more people in need. In response to the national strategies of “rural revitalization” and Corporate Governance

“leading country in education” the Company has established long-term assistance projects for left-behind and

underprivileged children in Yichuan County Yan'an City to help them complete their studies. It has also set up the LEAD continuously improves its corporate governance structure and

"Wang Yanqing Scholarship" in six universities to provide financial support to students with potential. sustainable development management system establishes a diversified

Board of Directors deepens the compliance system and promotes a

Labor and Human Rights culture of integrity. It has obtained certifications for ISO 37001

anti-bribery management system and ISO 27001 Information security

LEAD is dedicated to providing equal safe and decent jobs for people of management systems. The Company maintains a steadfast "zero

different genders ages nationalities and races. We adhere to the principle of tolerance" attitude towards bribery corruption fraud money laundering

equal pay for equal work ensuring that our employees enjoy fair and and unfair competition.reasonable income better working conditions welfare benefits and growth

opportunities. Simultaneously we promote the establishment of a diverse

equitable and inclusive culture and support the creation of a female-friendly

work environment. This includes providing multifunctional nursing rooms and

organizing workshops to empower women thereby supporting the

development of female employees.Environment and Energy Products and Services

Labor and Human Rights Community Responsibility Sustainable Supply Chains

LEAD continuously enhances the basic welfare security system for our employees. We organize regular health checkups LEAD focuses on the impact on biodiversity during the construction LEAD takes the initiative to participate in various industry exchanges and

for employees and provide health screenings and other benefits for employees and their family members so as to put production and operation. We strictly adhere to policies and regulations association events both domestically and internationally to promote the

disease prevention into practice. LEAD strives to enhance the prevention and control of occupational health hazards and identify risk factors and investigate potential dangers so as to create a intelligent transformation of the industry. Through sustainable supply

create a healthy and safe working environment. We have obtained ISO 45001 certification for occupational health and green industrial park. Moreover the Company actively engages in chain management and comprehensive empowerment we seek

safety management system. We take measures such as providing personal protective equipment and first aid facilities environmental protection activities such as tree planting and mountain knowledge sharing with global suppliers create opportunities for joint

organizing regular occupational health examinations and conducting occupational disease hazard factor assessments to cleaning to safeguard the habitats of animals. development and capacity enhancement and lead the industry in

ensure the health and well-being of our employees. collaborative development.

20 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 21About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Materiality Assessment

Through benchmarking analysis and stakeholder research on a regular basis LEAD screens 21 strategic issues that are conducive to the

realization of sustainable value co-creation and ranks the importance of the issues according to the opinions of internal and external

stakeholders to update the materiality matrix annually so as to better respond to the expectations of stakeholders and provide a reference

for the Company's ESG governance priorities. Among them material topics with high and medium importance are the key disclosures in

this report and the scope and boundaries of the report are determined according to the availability of data.Material Topics Benchmarking Process Materiality Matrix

Requirements of capital markets rating agencies and international standards

Benchmarking Analysis Macro policies industry policies and regulatory requirements

Best practices of peers and business features and advantages of LEAD Product Quality and Safety Occupational Health and Safety

Business Ethics and Compliance

Corporate Governance

Distribute questionnaires to 13 categories of stakeholders including the Board Emissions and Waste Management Intellectual Property ProtectionAnti-corruption

of Directors management employees investors customers suppliers media Sustainable Supply Chain Management Information Security and Privacy ProtectionEnergy Management

Stakeholders Survey Technology Innovationand regulators Sustainable Sourcing of Raw Materials Employee Rights and Welfare

Responses to Climate Change

Interview with key stakeholders Product Carbon Footprint and Life Cycle Management Human Capital Development

Clean Tech and Green Products

ESG Risk Management and Disclosure

Sorting out the feedbacks and scoring results of the survey Sustainable GrowthIssue Materiality Assessment

and Ranking Preparation of materiality matrix Driving Industrial Intelligent Transformation

Philanthropy and Community Engagement

Issue Identification Confirmation of issues and disclosure priorities after review by the ESG

and Disclosure Management Committee and being reported to the Board of Directors

Important Environment Social Governance Importance to LEAD’s Operations Extremely Important

Stakeholder Engagement

Stakeholders Shareholders Customers Suppliers and Partners Employees Government Authorities Media Community

● Sustainable growth

● ESG risk management and disclosure ● Product quality and safety ● Sustainable supply chain

● Responses to climate change ● Sustainable growth ● Responses to climate change

● Business ethics and compliance ● Technology innovation management

● ● Philanthropy and community engagement ● Responses to climate change ● Emissions and waste management

● Anti-corruption ● Information security and privacy protection ● Sustainable sourcing of Employee rights and welfare

Issues of ● Human capital development ● Business ethics and compliance ● Philanthropy and community ● Energy management● Intellectual property protection ● Clean tech and green products raw materials

● Corporate Governance engagement ● Concerns Philanthropy and community ● Corporate governance ● Product carbon footprint and life cycle Driving industrial ● Occupational health and safety●

● Anti-corruption ● Technology innovation engagement

● Sustainable growth management intelligent transformation

● Driving industrial intelligent transformation

● Official website ● Official website ● Employees' congress

● Investor hotline ● WeChat official account ● Team building

● Investor relations Email ● Customer relationship management ● Official website ● Interest association

● Official website ● Official website

● Interactive platform of Shenzhen (CRM) system ● WeChat official account ● Theme activity ● Official correspondence

Communication ● WeChat official account ● WeChat official accountStock Exchange ● Regular visit ● Supplier management system ● Chairman’s mailbox ● Daily communication

● Press conference ● Community activity

Channel ● Performance briefing ● Technical exchange meeting ● Bidding ● Whistle-blowing line ● Institutional investigation

● News briefing ● Volunteer activity

● Investor reception day ● Project team ● Technical exchange meeting ● Continuous improvement (CI)

● Institutional research ● After-sales service system suggestion platform

● General meeting of shareholders ● Satisfaction survey ● Satisfaction survey

22 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 23

Extremely Important Importance to StakeholdersAbout LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Special Responses to Climate Change

As the Sixth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC) warned the accelerating approach of climate

tipping points climate change has evolved into a significant challenge of systemic and disruptive risks. From supply chain disruptions

caused by extreme weather to the reshaping of international trade patterns through the European Union's Carbon Border Adjustment

Mechanism (CBAM) businesses are now facing dual pressures of physical and transition risks. LEAD has taken action to lead the

industry towards a more environmentally friendly and sustainable direction. We have increased R&D investment to promote the

innovation and application of green and low-carbon technologies and optimize energy efficiency with the aim of contributing our wisdom

and strength to global carbon neutrality.Governance

Strategy

As an active practitioner of China’ s dual carbon strategic goals LEAD has integrated sustainability into its development and comprehensively

strengthened its climate governance system. The Company has built a climate governance framework from the Board of Directors to various

departments based on the ESG Management Committee to achieve top-down governance of climate issues. LEAD actively identifies analyzes and manages risks and opportunities related to climate change formulates climate-related work

During the reporting period the Company regularly invited third-party experts to conduct executive ESG strategy and practice training while plans and targets and reports information to the Board of Directors through regular and ad hoc meetings.continuously seeking external professional support through expert think tanks and partners. At the same time the Company organizes annual The Company has identified physical risks and transition risks based on climate scenario analysis helping us to manage climate risks

sustainability-themed learning months both online and offline to disseminate professional knowledge of ESG carbon neutrality and energy more effectively. We have chosen the IPCC’ s Representative Concentration Pathways (RCPs) SSP1-2.6 (global warming <2℃) SSP2-4.5

management to all employees. (global warming approximately 2-3℃) and SSP5-8.5 (global warming >4℃) as the scenarios for analyzing the climate physical risks. For

LEAD recognizes the significance of professional talents in enhancing its climate governance capabilities. Therefore careful consideration was each climate risk we have developed corresponding measures to comprehensively enhance our ability to respond to risks. At the same

given to the qualifications of relevant personnel with a preference for individuals with expertise in environmental and energy fields during the time we take into account the industry opportunities brought by climate change and lay a solid foundation for sustainable development

establishment of the ESG Management Committee and ESG Office to guide the Company's environmental and climate management efforts. As of the Company through technological optimization and green transition. Below is a brief table outlining our key climate risks and

a result LEAD climate-related department is staffed with professionals who have backgrounds in environment and energy to continuously keep opportunities.up with the latest knowledge of dual carbon policies climate change trends and other related updates.The Company systematically identifies assesses and manages climate risks and opportunities establishes scientific development plans and

goals and ensures timely reporting of climate-related important information to the Board of Directors through a combination of regular and ad

hoc meeting mechanisms. In addition the Company links senior management compensation to climate change-related indicators as a way to

enhance internal management mechanism so that the Company’s climate strategy is valued and implemented effectively from top to bottom.Incentive Object Incentive Type Indicator Incentive DescriptionThe Company incorporates “Energy Conservation andEnergy conservation and

Emission Reduction Cost Reduction and Efficiency

emission reduction costSenior management Financial incentive Improvement” into the performance appraisal system of

reduction and efficiency

relevant senior management and links them with their

improvement

salaries.The Company encourages all employees to offer advices

Energy conservation and

and suggestions on sustainable development. After the

Financial incentive and emission reduction cost

All employees suggestion put forward through the Company's internal

non-financial incentive reduction and efficiency

process is adopted and rated the employee will receive

improvement

corresponding cash rewards and honorary rewards.

24 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 25About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Climate Risks Climate Opportunities

Risk Category Risk Description PotentialFinancial Impact Countermeasures

Opportunity

Category Opportunity Description

Potential

Financial Impact Countermeasures

Physical Risk

Extreme weather such as typhoons

Increased ● Pay close attention to meteorological information and promptly Enterprises can optimize energy efficien- ● Utilize clean energy efficiently and develop photovoltaics in floods droughts and heat waves can

management implement emergency response mechanisms; Improvement of cy reduce costs and enhance competi-

Reduced operating the plant area to enhance energy self-sufficiency; optimize

cause significant damage to infrastruc-

expenses ● Regularly inspect and reinforce buildings and production resource tiveness in collaboration with the value

costs equipment energy consumption management and energy

Acute risk ture or disrupt supply chains thereby equipment and supply flood prevention materials; equipped utilization chain through digital energy manage- utilization efficiency through online monitoring system;

impacting business operations causing with emergency water tanks in the plant to provide backup efficiency ment photovoltaic installation and

Additional financial

● Optimize the logistics route and promote the reuse of

financial losses and posing risks to Increased subsidies

operating costs water source; plan transportation routes in advance. low-carbon product application. pallets to reduce logistics costs and carbon emissions.personnel safety.The global climate disasters such as Increased

● Adjust employees' working hours and provide them with heat-

the rise in average temperature and management stroke prevention and cooling supplies;

Chronic risk sea level will have public health expenses ● Evaluate historical climate data and prioritize areas with higher

impacts increase energy consumption Enterprises can reduce carbon emis-altitudes before plant construction; stay vigilant about the rising ●

of cooling equipment and cause Increased sions through digitalization electrifica-

Establish a platform-based layout featuring "new energy +

Reduced operating

sea levels in the region. Energy tion and clean technologies while intelligent manufacturing" in the new energy equipment relocation costs for coastal plants. operating costs costssubstitution and empowering the supply chain to promote manufacturing business to enhance risk resistance capa-

new technology green energy so as to enhance competi- bility;Additional financial

Transition Risk application

●

tiveness and sustainable development Phase out diesel forklifts and gasoline official vehicles with subsidies

capabilities. electric vehicles to reduce operational carbon emissions.With accelerating global green transi- Increased ● Set carbon neutrality goals invest in green technologies

tion companies need to incorporate operating costs purchase renewable energy and renewable energy certificates

low-carbon strategies to promote inno- and explore carbon offsetting;

vation and efficiency. Carbon taxes Increased R&D ● Pay attention to the new energy policies and develop clean

Policy risk CBAM and other policies increase expenses energy equipment production to seize the opportunity of green

costs prompting businesses to accel- technology; ● Enhance forward-looking technology R&D maintain over

erate green transition in response to Increased ● Conduct a research on the impact of CBAM on company opera- 10% R&D investment and improve innovative capabilities

competition and carbon tariffs. management tions and promote the calculation of equipment carbon footprints. to respond to climate change;

expenses

● Conduct carbon footprint calculation of core products and

Enterprises can develop low-carbon Increased develop energy-saving technologies to help customers

products through green technology inno- operating revenue

● Incorporate an energy and carbon digital management platform Development of achieve full life cycle carbon traceability and enhance prod-Failure to timely invest in low-carbon Increased vation to meet global green consump-to enhance the transparency of carbon emission data collection

technology or undertake collaborative operating costs low-carbon

uct competitiveness;

tion enhance competitiveness lead the Reduced operating

monitoring and reporting; ●products and Provide an intelligent manufacturing solution for the entire Technological risk value chain transformation may lead to zero-carbon manufacturing of Li-ion costs

● Optimize equipment energy management with automation services value chain and lifecycle of new energy aiming to achieve increased costs and decreased com- Increased R&D batteries photovoltaics and hydrogen technology analyze the potential for carbon reduction and energy energy conservation and emission reduction from the

petitiveness. expenses energy and promote industrial transfor- Additional financial saving and conduct process and equipment improvement. source and to assist customers in efficient and low-con-mation. subsidies sumption production;

● Develop new energy products and services and obtain

Reduced operating financial rewards and subsidies by aligning with policy

revenue support and encouragement.With the global low-carbon transition ● Offer carbon footprint tracing to customers collaborate on

and the increase in customers' green Increased low-carbon products and reduce product carbon footprints;

demands failure to adjust company operating costs Purchase low-carbon recyclable raw materials and design

Market risk products in time can lead to a decline in ● green low-carbon products; reduce carbon emissions through

competitiveness and in market share. Affected market measures such as using reusable pallet boxes and replacing

Moreover it is needed to reduce depen- expansion metal with non-metal; prioritize low-carbon sustainable

dence on high-carbon raw materials. suppliers to promote a green supply chain.Diminished market Increased ● Explore the markets of Li-ion batteries energy storage With new energy intelligent manufactur-

competitiveness operating revenue photovoltaics and hydrogen energy by leveraging techno-ing solutions and a globalization strategy logical advantages so as to promote the low-carbon transi-

enterprises can broaden its market

Expansion of Enhanced market tion of the global new energy industry;

Decreased market explore the potential of energy saving

● Develop and disclose the commitment and action plan for new market share ● Stay closely aligned with the global new energy trends and

Failure to effectively reduce environ- share and carbon reduction in its products and carbon neutrality to enhance transparency and credibility; seek insights into the latest developments in the Chinese

Reputational risk mental impact may result in decreased

promote the green development of the

● Disclose climate indicators and performance annually show- Additional financial Asia-Pacific and Euro-American markets so as to adjust

investor confidence reduced valuation Increased global new energy industry.casing achievements and progress in climate management. subsidies our market strategies to embrace opportunities.and damaged reputation. management

expenses

26 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 27About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Impact Risk and Opportunity Management Metrics and Targets

LEAD takes climate risks as part of our risk management system. We establish a climate risk and opportunity identification list upgrade As a world leading intelligent manufacturing solution provider for new energy we adhere to the concept of "clean production green

the climate risk and opportunity management process and take targeted measures to mitigate the impact of climate risks on our development." We publicly commit to achieving carbon neutrality and have established and implemented a scientific roadmap. We are

operations and to capitalize on the opportunities brought by climate change. We have identified the main physical and transition risks dedicated to collaborating with all stakeholders along the industrial chain to contribute to human progress and sustainable development

affecting the Company and have formulated risk response measures and opportunity transformation plans to ensure the orderly with intelligent manufacturing. In order to ensure the achievement of our goals we have established a comprehensive system for

progress of climate work. tracking climate change indicators regularly disclosing the progress of our objectives and continuously promoting the green transition

of our company.Energy Consumption and Greenhouse Gas Emissions

Identification of ● Identify climate risks and opportunities that may have an impact on business operations by benchmarking

climate risks against international standards following industry trends and analyzing the demands of stakeholders. Energy Consumption Indicators Unit：MWh

and opportunities

● Identify a list of climate risks and opportunities and clarify the potential scope duration and probability

of each risk and opportunity. Direct energy consumption 3747.58

Assessment of ● Every six months the ESG Management Committee organizes a climate risk and opportunity assessment Indirect energy consumption 60227.32

climate risks and based on the climate change situation reported by the ESG Office.opportunities ● Analyze the impact of identified climate risks and opportunities on the Company's business strategy and

financial planning through climate scenario analysis. Renewable energy consumption 9553.00

Non-renewable energy consumption 54421.90

Management of ● Take countermeasures to various climate risks such as strengthening infrastructure construction and

climate risks and optimizing energy mix.opportunities ● Take active actions for various climate opportunities such as developing green products and low-carbon Total energy consumption 63974.90

management.Unit：MWh/100 Million RMB

Energy consumption per unit of business revenue 539.64

Monitoring of

● Monitor the changing trends of climate risks and opportunities regularly in order to take timely action.climate risks and

opportunities ● Disclose the management situations of climate risks and opportunities regularly adjust management

strategies promptly and optimize risk management measures.Greenhouse Gas (GHG) Emissions Indicators Unit：tCO2e

Scope 1 GHG emissions 1902.61

Scope 2 GHG emissions 32317.98

Scope 3 GHG emissions 4008964.95

Total GHG emissions 4043185.54

Unit：tCO2e /100 Million RMB

GHG emissions per unit of business revenue (Scope 1+2) 288.66

28 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 29About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Product Carbon Footprint LEAD Commitment to Carbon Neutrality

According to ISO 14067:2018 Greenhouse Gases - Carbon Footprint of Products - Requirements and Guidelines for Quantification and PAS In our operation we have taken diverse innovative measures and promoted technological transformations in six aspects: building energy

2050:2011 Specification for the Assessment of the Life Cycle Greenhouse Gas Emissions of Goods and Services using the cradle-to-gate conservation auxiliary systemenergy conservation production system energy conservation renewable energy utilization management

system boundary LEAD has completed the carbon footprint accounting for three core products of which the Li-ion battery cell electrode system enhancement and the application of intelligent energy and carbon digital intelligence systems. In this way we have comprehen-

cutting and stacking machine and the dual-layer coating machine have obtained ISO 14067 product carbon footprint certification. sively achieved digitization high efficiency electrification and cleanliness in energy use significantly reducing operational carbon

emissions and promoting the realization of green transition goals. In the reporting period LEAD did not participate in the carbon credit

trading of China Certified Emission Reduction (CCER) and was not involved in the clearance of carbon quotas in pilot carbon market. In

addition we offset part of the direct emissions and the indirect emissions generated by purchased electricity in 2024 by purchasing 311

tons of Verified Carbon Standard (VCS) certified emission reductions and 9553 Green Electricity Certificates (GEC).Product Carbon Footprint Proportions of Carbon Emissions in Each Phase of the Product LEAD Carbon Neutrality Goals

Scopes 1 and 2 Scopes 1 and 2

Li-ion battery cell cutting Carbon Peaking Carbon Neutrality

and stacking machine 162.57 tCO2e/FU Achieve carbon peaking in core operations Achieve carbon neutrality in core operations

End of 2030 End of 2035

Raw material Raw material Product

acquisition 91.30% transportation 0.15% processing 8.55%

Scope 3 Transparency

Value Chain Emission Reduction Regularly report progress toward

Continuously drive emissions reduction decarbonization goals

Dual-layer coating throughout the value chain2817.95 tCO2e/FU

machine

Raw material Raw material Product

acquisition 93.77% transportation 5.29% processing 0.94%

Green Solutions

Winding machine 59227.70 tCO2e/FU

Raw material Raw material Product In 2024 the Baku Climate Unity Pact reached at the 29th UN Climate Change

acquisition 95.96% transportation 0.96% processing 3.08% Conference urged all parties to submit more ambitious Nationally Determined

Contributions (NDCs). It calls for the gradual phase-out of fossil fuels and a

three-fold increase in renewable energy capacity by 2030 as well as a doubling

FU (functional unit): The functional unit is defined as one machine. of the global energy efficiency annual growth rate in order to narrow the gap

towards the 1.5℃ temperature control target. As a global leader in new energy

equipment LEAD is committed to practicing green and low-carbon production

working together with the upstream and downstream of the industrial chain to

build a green and low-carbon world and promoting sustainable development

through intelligent manufacturing and innovation.LEAD will continue to strengthen product carbon footprint management expand the coverage of product carbon footprint Currently we have already built a complete intelligent manufacturing solution business ecosystem in the fields of new energy Li-ion

enhance product low-carbon competitiveness and provide professional data support for customers in green procurement by batteries photovoltaic equipment hydrogen equipment etc. The Company has established mutually beneficial and growing strategic

means of product carbon footprint certification enabling customers and other stakeholders to better understand the partnerships with global customers actively participating in customer technological transformation and low-carbon revolution. Taking the

environmental impact and sustainability of the product throughout its lifecycle. initiative to promote the scale and intelligence of the new energy industry we assist customers in building efficient and

low-energy-consuming intelligent factories contributing to the global new energy.

30 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 31About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

New Energy Lithium-ion Battery Photovoltaics

In recent years the market share of electric vehicles in the automotive market has been rapidly increasing. According to the data from the Solar energy as the most cost-effective clean energy is crucial for energy transition. According to Bloomberg Finance global photovoltaic

China Association of Automobile Manufacturers both of the production and sales of new energy vehicles in China exceeded 10 million in installations reached nearly 600GW in 2024 up by 35% compared to the previous year. Data released by China National Energy

2024 with a production of over 12.88 million and a sales of over 12.86 million representing a year-on-year growth of 34.4% and 35.5% Administration shows that China's newly installed solar energy capacity reached 277GW in 2024 showing a great increase in photovoltaic

respectively. The sales of new energy vehicles reached 40.9% of the total sales of new vehicles with an increase of 9.3% compared to that in power generation.

2023. LEAD provides a turnkey solution for the intelligent manufacturing of photovoltaic modules and batteries. Our ultra-high speed stringer

MBB multi-busbar stringer and complete sets of shingling stringer are all at the forefront of the global market. Combined with our

The popularization of electric vehicles and clean energy supply

independently developed MES system intelligent warehouse logistics system as well as laser technology and machine vision technology

is the key path for China to promote the "carbon peaking and

we can create an "unmanned workshop" for the photovoltaic industry.carbon neutrality" strategy and for the world to achieve the

We have introduced the highest-capacity LDDS15000S cutting stringer 0BB busbar-less stringer and XBC stringer leading the industry

low-carbon emission goals. Electrification has become the

and provided customers with a turnkey solution for TOPCon high-efficiency photovoltaic cell intelligent factory with a conversion efficiency

main development trend of new energy vehicles worldwide.exceeding 26.5%.LEAD provides global battery and vehicle manufacturers with

At the same time LEAD actively deploys BC (Back Contact) technology with higher photoelectric conversion efficiency HJT

an intelligent equipment turnkey solution for the entire value

(Heterojunction) technology and perovskite technology providing customers with leading solutions for intelligent manufacturing of

chain and lifecycle of new energy Li-ion battery including cells

photovoltaic cells and modules. We have accumulated over 25GW of orders for BC photovoltaic process equipment including screen

batteries module/PACK and charging and discharging tests.printing and testing production line wet texturing cleaning equipment module stringer and whole-line automation equipment. In 2024

Through technological innovation and intelligent upgrades to

we assisted top BC players in the industry to achieve excellent power generation performance with BC modules reaching a design power

production lines we help customers improve battery energy

of 675W. In the same year we successfully commissioned the first GW-level perovskite cell production line for industry-leading

density and safety while reducing unit energy consumption

customers.costs and promote the large-scale production of high-perfor-

mance and low energy consumption vehicle and energy

storage Li-ion batteries.Hydrogen Energy

Hydrogen energy as the ultimate clean energy of the 21st century is highly regarded for its zero-emission characteristics. LEAD has

actively deployed green hydrogen production hydrogen fuel cell manufacturing battery testing and other fields. In 2024 the Company

inaugurated the first automated electrolyzer factory for a globally renowned mining and renewable energy corporation. The facility is

among the first to be equipped with an automated assembly line capable of producing over 2 GM PEM electrolyzer annually providing

significant support to global clean energy production. Our high-end MEA coater has been listed in the first major equipment of Jiangsu

Province. The coater is specifically designed for the high-precision high-quality and large-scale production of hydrogen fuel cell

membrane electrodes and has achieved breakthroughs in multiple international leading technical indicators. The thickness deviation of

the monolayer catalyst is within ±0.5μm and the maximum coating linear speed can reach 5m/min. The edge influence area of the Energy Storage

machine is controlled within ≤2mm. These technical parameters are at the forefront of the industry and are prerequisites for the mass

production of high-performance membrane electrodes.Battery energy storage is crucial for the widespread application of renewable

clean energy. It is an essential means to address the discontinuity instability

and uncontrollability of solar power wind power and other renewable energy

sources effectively reducing solar and wind energy waste. In 2024 in the field

of energy storage applications LEAD put more emphasis on R&D in production

line efficiency flexibility and modularity. We actively adapted to customer

requirements such as CE/UL/BIS enhancing its overseas delivery capabilities

and customer satisfaction. By 2024 we have cumulatively provided over

300GWh production line equipment orders to energy storage customers both

domestically and internationally. These products have been exported to

overseas markets such as Europe North America Southeast Asia and India

with overseas orders accounting for over 50% of our total. Furthermore the

Company has strategically collaborated with multiple customers in the R&D of

500-1000Ah large-scale energy storage batteries energy storage charging

and discharging systems and testing systems.

32 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 33About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

CORPORATE

GOVERNANCE

34 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 35About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Corporate Governance

Organizational Structure Investor Equity Protection

LEAD timely optimizes and adjusts the design of organizational structure in accordance with the requirements of the Company Law of In strict accordance with the Guidelines for the Management of Investor Relations of Listed Companies the Rules for Listing on ChiNext of

People's Republic of China the Securities Law of People's Republic of China and other relevant laws regulations and normative Shenzhen Stock Exchange (2024 Revision) and the Self-Regulatory Guidelines No. 2 for Companies Listed on Shenzhen Stock

documents and based on the business characteristics and strategic requirements of the Company. LEAD establishes and improves the Exchange--Standardized Operation of Companies Listed on the ChiNext Market (December 2023 Revision) LEAD conscientiously implements

organizational structure and operation mechanism of modern enterprises composing of general meeting board of directors board of the relevant requirements and instructions of the regulatory authorities to protect investors fulfills the obligation of information

supervisors and management. All organizations shall exercise their functions and powers and perform their obligations according to law disclosure according to law treats all investors equally (especially providing opportunities to small and medium-sized investors to

within their terms of reference to jointly promote the efficient and compliant operation of the Company. LEAD also establishes and participate in activities) listens to investors' opinions and suggestions and responds to investors' demands timely strengthens

improves various internal management systems based on the Articles of Association. communication with investors and potential investors enhances investors' understanding and recognition of the Company and

improves the level of corporate governance and the overall value of the enterprise to achieve the goals of respecting protecting and

rewarding investors.About Shareholders and General Meeting Fulfilling Information Disclosure Obligations According to Law

LEAD fulfills its information disclosure obligations in strict accordance with the requirements of the

In strict accordance with the Company Law the Articles of Association the Rules of Procedure for

Company Law of People's Republic of China the Rules for Listing on ChiNext of Shenzhen Stock Exchange the Information

Shareholders' General Meeting and other laws and regulations LEAD regulates the convening 1 Annual general meeting disclosure ratingsAdministrative Measures for Information Disclosure of Listed Companies and other relevant laws and

holding and voting procedures of shareholders' general meeting to ensure that all shareholders for 6 consecutive years

2 regulations to ensure that the contents of the reports are true accurate timely and complete and the Aenjoy equal status and equal rights and fully exercise their rights and fulfill their obligations. Extraordinary general meetings information is publicly disclosed to all investors. In 2024 162 announcements and documents were

During the reporting period LEAD held one annual general meeting and two extraordinary

disclosed. The Company has received A ratings in the information disclosure assessment of the Shenzhen

general meetings all of which were convened and held by the Board of Directors.Stock Exchange for 6 consecutive years.About Directors and Board of Directors Diversified Investor Communication Mechanism

LEAD attaches importance to communication with domestic and foreign investors and has established rich communication and feedback

There are seven directors on the Board of Directors of the Company including three independent 7 Directors channels with investors thus strengthening investor confidence and effectively protecting the vital interests of investors especially small and directors and one female director. The number and composition of the Board of Directors are in medium-sized investors.compliance with the requirements of laws regulations and the Articles of Association. The

3 Investors can better understand information that helps them make decisions such as the characteristics of the industry in which the company Company fully considers the diversity of the Board of Directors in terms of gender culture Independent directors operates and the company's business through various forms such as general meetingsof shareholders performance briefings visits broker

educational background professional skills and other aspects during director appointment in

strategy meetings the Interactive Zone on the SZSE website investor hotlines and other forms.This enhances the interaction and mutual trust

order to ensure the scientific and effective decision-making of the Board. All directors earnestly 1 Female director between the Company and investors and to establish a good corporate image in the capital market.perform their duties in an honest diligent and conscientious manner attend meetings on time

actively participate in trainings and constantly improve their performance of functions. There are 9 Board meetings

four special committees under the Board of Directors which are respectively the Strategy Stable Shareholder Return Mechanism

Committee Nomination Committee Audit Committee and Remuneration and Appraisal

Committee and corresponding rules have been formulated. All these play an important role in LEAD pays continuous attention to shareholder return actively shares business development achievements with shareholders establishes

promoting the Company's standardized operation and safeguarding shareholders' rights and continuous stable and scientific return planning mechanism for investors and periodically reviews such mechanism. LEAD makes appropriate

interests. During the reporting period the Company held 9 board meetings with 100% director and necessary adjustments to the profit distribution policy of the Company based on the opinions of shareholders especially public investors and

participation. independent directors and formulates a shareholder return plan for that period. In principle LEAD implements profit distribution once a year

giving priority to cash dividends. Under the premise of ensuring full cash dividend distribution LEAD may also adopt stock dividend distribution

About Supervisors and Board of Supervisors and capital reserve converted into share capital.The Board of Supervisors consists of three supervisors including one employee supervisor and two 3 Year Dividend Payout Ratiofemale supervisors. The number and composition of the Board of Supervisors meet the requirements Supervisors

of laws and regulations. During the reporting period the Board of Supervisors held meetings in strict 2023 35.47%

accordance with the regulations. All supervisors perform their duties conscientiously with the best 1 Employee supervisor 2022 49.34%

interests of shareholders in mind supervise the legality and compliance of the Company's finances

and the performance of duties by the Company's directors and senior management and protect the 2 Female supervisors 2021 36.29%

legitimate rights and interests of the Company and shareholders. During the reporting period the

Company held 8 meetings of the Board of Supervisors. 8 2020 30.05%Meetings of the Board of Supervisors

36 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 37About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Risk Management and Internal Control Internal Environment Goal Management

LEAD continuously strengthens its decision-making mechanism to respond to risks reducing unexpected losses during operational The Company based on its internal control environment The Company sets strategic goals that are aligned with the

processes and enhancing its ability to create long-term value. actively practices a culture of integrity strictly adheres to corporate mission and vision breaks them down into

The Company has established a comprehensive risk management and internal control organizational structure with the Board of laws and regulations and strengthens professional ethics. departmental goals and individual targets and plans

Directors and management assuming the responsibility of overseeing the execution of the Company's strategy and comprehensive risk The Company clearly defines responsibilities and authority resources to ensure that the goals are achieved. The

allocation and sets up approval authority for different Company continuously monitors the execution of its strategic

management. On this basis the Company has established a three-line-of-defense system composed of business departments risk management levels in order to eliminate any unauthorized initiatives and assesses the results.management department and internal audit department ensuring the comprehensiveness and effectiveness of risk management. actions.Risk Identification

udit by Au

ision

and A dit Dep

v ar rtm The Company extensively collects internal and external risk information establishes monitoring and communication mechanisms and e

upe nt ensures that business departments promptly report risks and opportunities to the management. The internal control department S identifies potential risks by checking risk lists conducting process analysis financial analysis and other methods. The internal audit

department uses a risk-oriented auditing approach for risk identification.pectio

n by Risk Manag

nd

Ins ement

n a De Risk Assessment/Risk Exposureo p

isi ar

The Company analyzes risks through formal procedures and daily management practices establishing an "overall assessment" at the

n and Sel Company level and a "targeted assessment" at the business unit level. By employing a combined qualitative and quantitative approach ctio fe -ss De ass we assess the likelihood of risk occurrence and the degree of impact and develop risk management strategies. Each business p e p e

ins us

in artm s department evaluates risks through business analysis meetings industry benchmarks and other methods. The internal control

y B e management department qualitatively and quantitatively monitors and evaluates the overall risk level of the Company based on

quarterly risk warning indicators. It also quantitatively evaluates the risk of key internal control points by scoring the likelihood and

impact and prioritizes internal control optimization based on the risk level.Risk Response

First Line of Defense: Self-inspection and Self-assessment by Business Department

As the first line of defense in risk management each business department adopts a "self-supervision" approach to regularly self-in- The Company based on risk identification and assessment comprehensively balances costs and benefits determines response

spect and self-assess its own risk situations. strategies for different risk characteristics and keeps risks within an acceptable range. Each department reports risk events to the

management in a timely manner according to their respective responsibilities. The management through close monitoring provides

guidance and make appropriate responses.Second Line of Defense: Supervision and Inspection by Risk Management Department

The Finance Department Internal Control Department Legal Compliance Department etc. serve as the second line of defense which

are responsible for assessing the effectiveness of the risk mitigation measures established by various business departments from a risk Activity Control

assessment perspective. They also oversee the implementation of risk response plans. The Company has established a dedicated inter-

nal control department which is responsible for planning internal control management rules operational mechanisms and capacity The Company establishes and implements comprehensive policies and procedures to ensure the proper execution of management

building. It also organizes internal control training and educational publicity activities to continuously optimizethe company's internal instructions and the control of risks. Each department formulates rules regulations and measures in key areas such as strategy R&D

control risk management system. finance legal quality safety environmental protection and market operations centering around the objectives of the risk

management strategy to ensure the effective operation of internal control mechanisms. The Company integrates internal control

requirements into the front-end systems enhancing internal control rigidity through automatic controls and standardized processes.Third Line of Defense: Supervision and Audit by Audit Department

The Audit and Supervision Department as the third line of defense independently supervises and evaluates the Company's risk man-

agement work. Through forms such as special audits and internal control testing evaluations it promptly identifies issues and provides Information and Communication Internal Supervision

suggestions for improvement.Following the Basic Norms for the Internal Control of Enterprises and its supporting guidelines issued by the Ministry of Finance and The Company establishes multi-dimensional channels of The Company continuously monitors internal control risk

taking into consideration the actual production and management situation the Company has established an integrated internal control information and communication to promptly obtain external management clarifying the levels and responsible

risk management system that encompasses eight aspects: internal environment goal management risk identification risk assess- information and ensure the adequacy and timeliness of departments for supervision and inspection. The risk

ment risk response activity control information and communication and internal supervision. This system is built on the theoretical internal information transmission. The Company encourages management execution department and the risk

frameworks of the Internal Control - Integrated Framework (2013) and the Enterprise Risk Management - Integrated Framework by the all employees to put forward improvement suggestions and management supervision department each perform their

continuously invests resources to support the construction of respective duties under a mechanism of checks and

Committee of Sponsoring Organizations of the Treadway Commission (COSO). This system revolves around the company's overall goals information systems ensuring the quality of information balances to ensure the effectiveness and sustainability of

embedding risk control measures in various key operational areas continuously deepening risk management and internal controls and processing. risk management.building a solid risk defense line for the Company's high-quality and stable development.

38 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 39

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ntAbout LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Business EthicsLEAD incorporates “Integrity and Trustiness" into its core values requires all employees to adhere to the business ethics with “Integrity● When selecting suppliers always adhere to the principle of fairness and it is forbidden to get benefitsand Compliance with Law and Commitment” as the core and strictly abides by laws and regulations on operation environment safety from suppliers.quality and finance. LEAD attaches great importance to strengthening risk awareness. It has formulated relevant documents such as the ● Be customer-oriented in the process of serving customers that is using customer thinking starting

“Code of Business Conduct for Employees” the “Supplier Anti-commercial Bribery Declaration” the “Bidding Management System” the External Business from customer needs satisfying customers and creating value for customers.“Procurement Management System” the “Code of Conduct for Integrity in Procurement Business” the “Integrity Management System” ● Observe laws and business ethics fight against monopoly and unfair competition and do not offer or

Behaviors

and the “Financial Management System.” In addition the Company has adopted various methods to disseminate laws and regulations to promise to offer monetary or other benefits to government officials in the course of carrying out

business activities.all employees. For instance the Audit and Supervision Department organizes compliance training and tests irregularly on a monthly basis.● Comply with the laws regulations practices and standards of the business place including investment

The Legal Department organizes periodic legal training focusing on key areas such as sales procurement and overseas compliance. trade labor and employment environmental protection contracts accounting taxation etc.These efforts have enhanced the legal operating capabilities of the leadership and the legal awareness of the employees thereby fostering

a sound legal atmosphere.In 2024 the Company held a total of 40 business ethics training sessions for employeesincluding 12 sessions of specialized integrity ● The first priority is always integrity when recruiting employees.training for procurement 4 sessions of compliance management training and 17 sessions of specialized integrity training for business ●Personal Behaviors Avoid conflicts of interest and do not use inside information and conduct insider trading.departments 1 compliance training session for directors supervisors and senior executives and 6 integrity training sessions and content ● Protect the proprietary information of the Company customers and suppliers.pushes for suppliers. ● Be honest and law-abiding and prohibit corruption and fraud.Based on high-quality development LEAD always adheres to legal and compliance management conscientiously implements national tax

laws regulations and relevant system provisions actively pays taxes and contributes strong momentum to the high-quality development

of local industrial economy. The Company disclosed relevant tax information in accordance with the law. Please refer to the Company's

annual report for 2024 for details.Anti-bribery Management

Compliance System Focusing on anti-bribery work for the year 2024 LEAD enhanced business anti-bribery 1.Take compliance management system

as the cornerstone internal control measures strengthened the prevention and the control of violations and

Chairman 2.Take Code of Business Conduct for bribery at the project end and deepened fraud governance in high-risk business areas. In

The Company has set up the Audit and Super- Employees as the criterion

3.Take compliance incident handling the reporting period we obtained the certificate of ISO 37001 anti-bribery management vision Department as its functional depart- methods as the guidance systems which is an important manifestation of LEAD practice of the ESG development

ment for the internal supervision and inspec- Audit & Supervision

Department strategy and also a strong proof of the high-level standardized governance. In addition to tion which reports directly to the Board of

further enhance the anti-bribery governance capabilities the Company strengthened the

Directors and has set up departmental com- Complianceconstruction synergy between anti-crime measures related to corporate economic activities and

pliance officers in each department who are

deepened the collaboration mechanisms with the police. As a result it has become a

required to conduct compliance training within Audit Supervision Supervision and "police cooperation enterprise" and contributed to the economic and social development of

their departments and submit departmental Department Department inspection

the area.compliance materials to the Audit and Super-

vision Department on a regular basis. Certificate of Anti-bribery

Department

Compliance Officer Reporting Channels and Whistleblower Protection Management Systems

Employees Code of Conduct

In view of possible corruption and fraud LEAD has developed the “Complaint Reporting Management System” and set up various

reporting channels for employees customers suppliers and the general public. Whistleblowers can provide clues with or without

The business of LEAD covers many countries and regions around the world. LEAD requires all employees to comply with the general

revealing their identity. The Company conducts evaluations on received reports initiates investigations into cases with clear illegal and

code of business conduct as well as other rules of the Company their departments or business areas. Therefore in accordance with the

disciplinary facts and ensures the independence and fairness of the investigation results. If the reported materials are verified LEAD will

legal requirements of the countries in which the Company operates LEAD formulates the “Code of Business Conduct for Employees” to

reward the whistleblower accordingly.regulate employees’ behaviors from four dimensions: basic rules internal business behaviors external business behaviors and personal

In order to protect whistleblowers the Audit and Supervision Department has designated dedicated personnel and positions to contact

behaviors.whistleblowers through the reporting channels they used and to keep the whistleblowers' information strictly confidential throughout the

process. The accused person shall not retaliate or instruct others to retaliate against the whistleblower. Once discovered he/she will be

Basic Rules ● Employees shall comply with the general code of business conduct and adhere to the Company's dealt with severely and if he/she involves illegal or criminal activitieshe/she will be referred to the public security authority for handling. values mission and vision.● Prohibit discriminatory behaviors such as gender race and ethnicity discrimination harassment

and violations of laws and regulations. Reporting channels

Internal Business ● Protect the Company's tangible assets intellectual property technical and trade secrets and other WeChat official account: Clean LEAD

intangible assets.Behaviors ● Keep correct and honest recording and reporting of information and comply with the relevant Hotline (WeChat): 18795605971

systems for the proper preservation and destruction of handled documents. E-mail: Compliance@leadintelligent.com

● Strictly limit the authority of employees' personal information and protect their privacy.

40 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 41About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Business Information Protection

Information Security System Information Security Issue Feedback Channel

LEAD strictly complies with the Data Security Law of the People's Republic of China

the Personal Information Protection Law of the People's Republic of China and the WeCom E-mail: ismc@leadintelligent.com Phone: 0510-80526699

laws and regulations of other countries or regions to conduct business including

the EU General Data Protection Regulation (GDPR).LEAD takes "information security in collective responsibility; active defense and

comprehensive prevention customer trust for sustainable management" as its Privacy Protection

information security policy. We attach great importance to information security

management and have set up the Information Security Committee to be fully In order to protect the privacy security and personal information rights and interests of customers employees and related parties and to

responsible for the company's information security management work. The standardize personal information processing activities according to the Personal Information Protection Law of the People's Republic ofChairman of the Board of Directors serves as the director of the management China and the EU GDPR and taking into account the actual situation of the Company's business LEAD has formulated the “General Datacommittee. Under it there is an Information Security Department in charge of Protection Management Norms and Procedures” to regulate the rights and ways of exercising rights of the data subjects the ways of

daily management which operates independently in accordance with the require- transmitting the information to and from the data subjects data management norms and audit processes and complaint procedures

ments of the Company's information security strategy. etc. In addition during the reporting period the Company engaged external institutions to carry out GDPR specialized training for key

The Information Security Department established ISO 27001 information security positions with a training pass rate of 100%.management system in 2017 adopting PDCA (Plan Do Check Act) cycle man-

agement method to comprehensively protect the Company's information assets

in terms of confidentiality integrity availability and other dimensions. In early Basic Principles:LEAD ISO 27001 Information

2023 LEAD was rated as high TISAX (Trusted Information Security Assessment Security Management System

Exchange) level. ● Legality justice and transparency ● Data minimization ● Storage limitation

● Purpose limitation ● Accuracy ● Integrity and confidentiality

Information Security Measures

Information Security Testing and Audit

Internal: External:

● Internal audit of information security management system: ● Third-party organization ISO 27001 audit: once every year

Once a quarter for business departments and subsidiaries in ● Third-party organization TISAX certification: once every 3 years

Wuxi and once a year for offices and subsidiaries outside Wuxi ● External penetration test: once every year

● Security testing: phishing email drill covering all staff

● Daily security audit: once per week

● Information security emergency response testing: once every six months

● Cooperate with domestic leading security manufacturers to conduct network

security information and dynamic perception of LEAD

Information Security Awareness Improvement

● 47 information security training sessions 100% online platform learning task for all staff

● Information security examination for all staff: once a quarter

● Publicity: publish information security guidance announcements irregularly and require all employees to post information security

mnemonics

42 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 43About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

PRODUCTS

& SERVICES

44 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 45About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Products and Services

Product R&D and Intellectual Property Management

R&D Platform R&D Personnel

LEAD has been recognized as a National Technology Innovation Demonstration

Enterprise by the Ministry of Industry and Information Technology. It is also a key

high-tech enterprise under the National Torch Program a champion product

enterprise and a benchmark factory for industrial Internet in Jiangsu Province.We have established 7 R&D institutions at the provincial level or above including Qty. of R&D Personnel

the National Enterprise Technology Center the National Postdoctoral Research

Workstation the Jiangsu Province Enterprise Technology Center the Jiangsu

Province Lithium-ion Battery Equipment Engineering Center the Jiangsu Ratio of R&D personnel 30.03% Ratio of R&D personnel 25.71%

Province Capacitor Automation Equipment Engineering Technology Research Center the Jiangsu Province Postdoctoral Innovation

Practice Base and the LEAD Industrial Design Center.

45124917

In recent years LEAD continues to increase investment in R&D establishes collaborative design mechanism and builds digital R&D

management platform that runs through the entire business process to achieve modular design. In addition it has built a knowledge

management system to further improve the enterprise R&D knowledge sharing and innovation capability. Meanwhile LEAD also has 2024 2023

obtained CNAS lab certification and set up global research institutes in Wuxi Shanghai South China and overseas regions to enhance Qty. of R&D Personnel

R&D capabilities.R&D Investment Education of R&D Personnel

Ratio of R&D investment to operating revenue: 10.05%

2022 2023 Ratio of R&D investment to operating revenue: 10.67% 27 31

641704

1400.341773.57

33823691

13932.3516628.3620242023

Operating revenue (unit: million RMB) Operating revenue (unit: million RMB) Bachelor Master Doctor

R&D investment (unit: million RMB) R&D investment (unit: million RMB)

Age of R&D Personnel

Ratio of R&D investment to operating revenue:14.14%

2024

1675.8420382825

19771883

11855.10

20242023

Operating revenue (unit: million RMB)

R&D investment (unit: million RMB)

Below 30 30~40 岁

46 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 47About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Industry-university-research Cooperation Product Quality and SafetyLEAD always adheres to the concept of "innovation-driven development” attaches great importance to the cooperation of industry

academia and research institutions and is committed to transforming cutting-edge scientific and technological achievements into Product Quality Management

practical productivity promoting technological progress in the industry. In order to enhance the Company's technological innovation

capability LEAD has formulated the “Management Measures for the Industry-university-research Cooperation” to strengthen the LEAD practices the quality concept of “Starting with Craftsmanship Focusing on Improvement Pursuing Excellence and Aiming forcooperation between enterprise technology centers and domestic universities foreign universities and research institutes. For this Perfect Delivery” establishes quality gate management mechanism throughout the entire lifecycle from supply chain management to

purpose LEAD has established a good mechanism for cooperation and technology exchange by signing mutual cooperation agreements after-sales service defines quality objectives and assessment mechanism and clarifies quality responsibility in each process.integrating technological resources and jointly undertaking major projects to tackle key core technologies and enhance the Meanwhile LEAD also has independently built a full process quality cloud management system covering the whole process from

competitiveness of the enterprise in the market. product design to site delivery including R&D quality design quality supply chain quality processing and assembly quality and

Through the industry-university-research cooperation LEAD has formed the cooperation mechanism of industry technology and talents commissioning service quality. Through a comprehensive evaluation system that is visual intelligent and traceable each product can

and has cooperated with Shanghai Jiao Tong University Huazhong University of Science and Technology Southeast University Jiangsu achieve 100% quality traceability and control. Meanwhile the Company actively promotes the development of quality management

University Jiangnan University etc. Through these cooperations LEAD has tackled core technologies such as high-speed cell winding talents and strives to build a team of internal auditors with professional competence. With the assistance of this professional team the

process high-speed calendaring and de-folding process high-speed and high-precision stacking process and high-speed industrial CT Company actively conducts internal audits peer reviews and maturity assessments in order to diagnose and rectify the current state of

inline inspection algorithms undertaken or participated in 17 scientific and technological projects at provincial and ministerial level or quality management in a timely manner.above solved the problems of low automation level process complexity low production efficiency and low precision of Li-ion battery cell

manufacturing process and enhanced the technological innovation capability of the Company."Double Cores and Four Drives" Quality Strategy

Intellectual Property Management

Double Cores culture and mode

LEAD has formulated and released the relevant intellectual property rights management and control procedures and process documents

in accordance with the Enterprise Intellectual Property Management so as to establish a standardized system of intellectual property

work conscientiously implement Outline of the National Intellectual Property Strategy strengthen the guidance of intellectual property Four Drives digitalization standardization modularization collaboration

work help the Company further strengthen the creation application management and protection of intellectual property rights and

improve the independent innovation capability competitive advantages and brand reputation of the Company. In 2024 LEAD obtained the

Innovation and Intellectual Property Management Capability certificate (Level 3) based on the ISO 56005. This signifies that the Company

implements intellectual property management throughout the entire innovation project process effectively supporting the achievement Quality Management System Building

of innovation project goals and value realization at the project level and promoting sustainable high-quality development. In order to improve the digitization and standardization of quality management the Company actively establishes and improves the ISO

As of December 31st 2024 LEAD and its fully-owned subsidiaries have obtained 2830 authorized patents including 446 invention 9001 quality management system certification. It also establishes an information technology and industrialization integrated

patents 2304 utility model patents and 80 design patents which broke the management system based on the requirements of GB/T23001-2017 Integration of informatization and industrialization management

monopoly position of imported equipment from Japan and South Korea. Many systems--Requirements and GB/T23006-2022 Integration of informatization and industrialization management systems--Requirements

products of LEAD are classified as high-tech products first major equipment or for enhanced capability grading. Furthermore it establishes a measurement management system in accordance with the requirements

famous brand products in Jiangsu Province.of GB/T19022-2003 Measurement management systems--Requirements for measurement processes and measuring equipment.

527 New authorized patents in 2024 8 Design patents

205 Invention patents

314 Utility model patents 2024

ISO 56005 Certificate of Innovation and

Intellectual Property Management Capability

Intellectual Property Protection

LEAD has formulated various rules and regulations such as “Patent Application Process and Reward Rules” “Intellectual Property ComplianceSystem” “Patent Rights Protection Incentive System” to regulate the creation management application and protection of intellectual property

rights so as to internally enhance the importance of intellectual property rights within the Company externally demonstrate the Company's firm

determination and responsibility for the protection of intellectual property rights and contribute to creating an industry business environment that

respects intellectual property rights encourages innovation and fair competition.In order to enhance employees' awareness of intellectual property protection LEAD has provided multiple trainings to R&D personnel and

internal patent engineers for many times. LEAD have released intellectual propertyrelated training videos on our internal learning platform for all

employees to share and learn. In addition for external agents LEAD has set up non-competition mechanism when signing contracts with

suppliers to protect the Company's intellectual property rights from being infringed upon.LEAD regularly organizes or participates in intellectual property seminars forums and other activities to strengthen communication and

exchanges with players inside and outside the industry and continuously improve its professionalism in intellectual property protection. By ISO 9001 Quality Management GB/T19022-2003 Measurement GB/T23001-2017 and

participating in these activities LEAD can not only keep abreast of the industry dynamics but also learn from the excellent experience of other System Certificate Management System Certificate GB/T23006-2022 Integration of Informatization

enterprises to further optimize the Company's intellectual property protection system. and Industrialization Management

System Certificate

48 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 49About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Quality and Safety BuildingThe Company implements the "Quality and Safety Assessment Management Regulations” which adopts a "one veto" system for quality

and safety projects responsible personnel for quality incidents and responsible departments for quality incidents ensuring

comprehensive quality and safety.One-veto Rejection Item Contents Type Operation Process Key Management Points

Identify critical quality and safety performance indicators for products. Supplier management covering

Veto on quality and safety project Any non-conforming batch of equipment is subject to one-vote rejection. Supplier onboarding tiered classification

Quality New supplier trial approval; supplier category capability qualification; major performance evaluation exit and change approval; incoming material quality gates.Veto on personnel responsible Personnel responsible for quality accidents caused by subjective factors are change procedures and incoming

for quality accidents subject to one-vote rejection with role change or employment termination. material inspection

R&D

Veto on departments responsible Departments primarily responsible for quality accidents are subject to one-vote Quality

Design and development Design change rate reduction

for quality accidents rejection with no excellence awards or commendations during the specified penalty period. Production Quality control during assembly ● Rapid handling and improvement for production site abnormalities

Quality and commissioning and on-site ● Quality gate maturity enhancement and process quality metrics improvement

abnormality management ● Quick production-caused customer complaint resolution and correction

Quality and Integrity Building

Equipment quality control and ● Rapid analysis and handling of faulty components during off-site commissioningLEAD has established the "Quality Red and Yellow Line Management Regulations” and implemented management based on the "360 abnormality handling throughout to enhance commissioning quality and promote quick equipment production andquality integrity model” .That is zero tolerance for dishonest behavior from the group level subsidiary level and department level; and 6 Service post-delivery commissioning maintenance

dimensions which are respectively integrity traceability integrity after-sales service integrity education integrity inspection integrity Quality maintenance warranty and ● Management of complex and key issues during off-site maintenance to

accelerate equipment acceptance and delivery

evaluation and integrity incentive to regulate the behavior of all employees. post-warranty periods

● Improvement of customer satisfaction during maintenance service phase

Product Inspection Procedure

LEAD 360 Quality Integrity Model Integrity

education The Company has established a rigorous product inspection procedure to ensure that the incoming material quality meets the standards.Inspectors inspect incoming materials and determine the quality according to the inspection standards. After qualified products are

Integrity packaged and restored they are recorded in the warehouse management system and transferred to the warehouse for future use.after-sales Integrity Unqualified products are recorded in the "Unqualified Product Disposal Form” go through the return process and are reported in the

service inspection warehouse management system. Within the Component Quality Control Center the review personnel conduct defect reviews on

Zero non-conformities and the review results are communicated to suppliers by the Supplier Quality Engineering Center to drive reasonable

tolerance for rework temporary containment measures and long-term improvement. For critical components high-precision parts and contentious

Group Level dishonest issues regarding new parts the joint review is conducted by the R&D teams Process teams as well as the Supplier Quality Engineering

behavior Center to determine the inspection results and ensure the reliability and consistency of product quality.Integrity Integrity

Subsidiary Level traceability evaluation

Product Safety Management

Department Level Integrity

incentive Safety is the top priority for the Company in providing products and services to customers. The Company has established a comprehensive

product safety and quality standard specification which covers the entire process from product design product testing to product usage. We

design and deliver products that comply with domestic and international standards including national machinery safety regulations the EU

Machinery Directives Electromagnetic Compatibility Directives Explosion-proof Directives and US Electrical Specifications in accordance

with CE UL and other certification requirements.When it comes to product design the Company integrates safety into every structural and equipment development process. It incorporates

Quality Management System Maturity Assessment design concepts such as safety interlocks safety circuits safety light curtains and E-stop buttons and applies comprehensive simulation

LEAD has established a comprehensive quality management system that covers the entire lifecycle of marketing R&D procurement technologies such as fluid mechanics and thermodynamics to ensure safety at the product development level. In terms of product testing

manufacturing logistics and after-sales along with a three-tier quality management department for the LEAD group subsidiary the Company employs various levels and multi-dimensional testing methods such as temperature testing gas concentration testing and

companies and various departments and a Chief Quality Officer system. pressure testing to achieve real-time inline monitoring and ensure the safety of personnel. In terms of product usage the Company not only

The Company has developed the first set of quality management system maturity assessment standards in the non-standard automation equips products with safety warning labels E-stop labels and safety protection labels but also provides customers with safety training that

equipment industry. By conducting multiple rounds of evaluation activities between the group and subsidiaries we have developed a set covers all personnel and a comprehensive safety maintenance and production manual.of quality management system evaluation criteria and scoring models suitable for the Company's business and meeting departmental During the reporting period the Company did not experience any product recalls required by relevant laws and regulations or government

needs. This can effectively quantify the maturity of the Company's quality management system thus driving the continuous authorities. There were no situations where sold products needed to be recalled due to safety and health issues. There were no significant

improvement of the Company and even the non-standard automation equipment industry's quality management. product quality disputes.

50 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 51About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Environment-friendly Products Customer Service System

LEAD adheres to the core value of “Customer-Centered Creating Value for Customers” continuously strengthens the pre-sale sale and

LEAD is committed to helping downstream customers reduce pollution energy consumption and carbon emissions during the use of after-sale services and builds a customer service system with customer needs as the core of the whole value chain.machine by providing environmentally friendly products.In the part and raw material procurement stage we controlled toxic and harmful substances according to China's Administrative Measure on

Restricted Use of Hazardous Substances in Electrical and Electronic Products and EU and international directives such as the Restriction of Management SystemHazardous Substances (RoHS) and the Registration Evaluation Authorization and Restriction of Chemicals (REACH). In the design and LEAD has successively formulated and implemented relevant systems and procedures such as “Guidelines for Optimization ofmanufacturing stage we adopt functions and modules such as waste heat utilization dry air recycling microenvironment control Customer-Oriented Processes” “After-sales Service Management Procedures” “Customer Abnormality Handling Procedure” and

energy-saving motor electrical intelligent control compressed air management intelligent management of fans and lighting and energy “Management of Customer Information Security Numbers” etc. In addition LEAD has further formulated the Survey Procedure for

consumption monitoring and forecasting which greatly reduce the energy consumption during the use of machine. In addition we also Customer Satisfaction and the Fast Response Procedure of Customer Major Quality Issues to improve service management and respond to

consider maintainability design and meet the requirements of EU mechanical directives to optimize the maintenance and repair of customers' needs.components improve the durability of machine and extend the service life of machine.Service Process

The Company has formulated and implemented the “External Service Execution Process” “Service Project Completion AcceptanceProcess” “Customer Training Process” “Service Improvement Process” and other after-sales related business processes aiming to

Making full use of Dry air recovery and Fine control of machine enhance the standardization and systematization of after-sales service and improve service quality to provide better service to customers.waste heat recycling microenvironment

Service Facilities

Fully control the utilization of waste Recover exhausted air from the Effectively control humidity and dust The Company has implemented a digital and intelligent management system guided by business and information architecture with a focus

heat in each process phase during the machine remove impurities in the dry microenvironment to reduce energy on customer needs. This was achieved through LEAD self-developed data platform and Customer Relationship Management (CRM) system

plant design stage air then send the dry air to the consumption and operation cost that integrates the Enterprise Resource Planning (ERP) system Manufacturing Execution System (MES) system and Supplier Relationship

workshop for reuse

Management (SRM) system to provide end-to-end feedback and handling of customer demands ensuring timely satisfaction of market

needs.Service Team

Motor energy-saving Electrical intelligent Fine management of The Company has established a professional after-sales service team which covers multiple departments including product R&D project

technology and selection control compressed air management planning management customer training as well as assembly and commissioning teams. This enables us to respond quickly

to customer needs solve customer problems and complete project cycles greatly enhancing our customer service capabilities.Use the IE4 energy-saving motor Intelligent control of electrical Intelligent monitoring of specific

compliant with national standard to machine to reduce power working conditions of machine and fine

effectively realize energy saving of consumption in each process phase control of compressed air pressure and Diversified Service Support

machine flow to achieve effective energy saving

Customer Service Center After-sales Solution

Energy-saving fan and Online energy consumption

lighting monitoring

Smart operation and Guardian Smart Quick

Integrate the energy-saving Real-time monitoring and analysis of maintenance services factory changeover

capabilities of fans lighting and other big data for regulation and Remote support Genuine parts Smart factory Technology upgrade

points to jointly reduce the energy improvement Smart maintenance Quality assurance Digital operations Performance

consumption of the whole line Transparent information Expert service Data driven enhancement

Efficient operations Training support Operation excellence

Customer-centric Professional expertise Dedicated service

52 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 53About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Customer Satisfaction Management Customer Privacy and Data Security

In order to ensure that the satisfaction survey method suits the Company LEAD conducts annual management review regularly every ● Principle of minimization: Minimize the disclosure of data based on the responsibilities of each business department protect-

year to timely improve and adjust the survey methods and contents organizes monthly analysis and summary and publishes customer ing customer privacy and business data security.satisfaction monthly report to make continuous improvements. ● Permission hierarchical control: Assign access permissions based on role responsibilities with core data requiring special

In order to timely and efficiently receive respond to and solve customer complaints LEAD comprehensively promoted the construction application and being limited to specific positions; regularly review personnel permissions to identify and mitigate risks.of real-time online customer service management system. Combined with LEAD's global 400 service hotline and on-site customer ● Document encryption: Equipped with a document encryption system that encrypts all documents to ensure the confidentiality

complaints system it provides customers with 24/7 real-time online customer service worldwide. In response to customer needs it of business content.aims to resolve issues online within 2 hours and on-site within 8 hours. Additionally the feedback mechanism has been upgraded to ● Employee training and audit: Conduct information security training for new employees during onboarding and arrange

respond to customer needs through closed-loop management. During the reporting period the complaint closed-loop rate of LEAD's annual/semi-annual information security training in departments with a 100% pass rate.customer service system is 100%.LEAD Feedback Platform

Operation Guide

Customer-centric approach to

ensure rapid and effective

escalation and closed-loop Customer service hotline

handling of critical field issues

Step 1:

Scan QR code to download Progress tracking:

Check the handling progress of reported issues

Issue feedback:

Fill in feedback information

Step 2: Equipment code: Enter SCJH-prefixed number on nameplate

Log in with registered to auto-generate equipment information

mobile number

Equipment status:

Select current operation status from dropdown

Failure frequency:

Select current failure frequency from dropdown

Problem description:

Provide detailed information including failure

For inquiries please call LEAD occurrence time background and specific

400 customer service hotline. requirements

Responsible Marketing

The Company upholds responsible market marketing and product promotion engages in sales and marketing practices that comply with

laws regulations social norms and ethical standards and promotes the establishment of a marketing responsibility system that covers

customer sales marketing product promotion and after-sales service. Moreover the Company upholds a commitment to compliant

In terms of customer satisfaction surveys in 2024 the Company has improved the process of customer follow-up on the service side marketing and instills compliance throughout marketing and product promotion. All advertisements and marketing activities undergo

standardized the follow-up rules and corresponding management system and developed standardized questionnaires for different internal reviews to ensure accuracy and compliance.service product categories. We have actively followed up the operational status of equipment and customer needs through an intelligent We continuously strengthen the compliance capability building for marketing-related teams and personnel eliminating all

platform promptly and effectively addressed abnormal operation and customer needs and urged relevant departments to improve non-compliant marketing activities and unfair competition behaviors. We also encourage our subsidiaries joint ventures partners and

customer satisfaction. other stakeholders to actively practice responsible marketing.

54 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 55About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Working Together to Promote Industry Development

Industry Exchange

From June 18th to 20th 2024 the world-class battery event the

Battery Show Europe was held in Stuttgart Germany. As a

From April 27th to 29th 2024 the 16th China International

world-leading new energy intelligent manufacturing solution

Battery Fair (CIBF) are held in Chongqing. As a

provider LEAD unveiled a groundbreaking new intelligent

world-leading new energy intelligent manufacturing

manufacturing solution that covers the entire value chain and

solution provider LEAD unveiled its brand-new intelligent

lifecycle. With the release of 12 new technologies and processes

manufacturing solution for Li-ion battery making Li-ion

for intelligent manufacturing of new energy it showcased LEAD's

battery formation and capacity grading vision/fluid/testing

pioneering technological strength and "carbon-neutral

smart automotive production line smart logistics andintelligent manufacturing” philosophy displaying China's

intelligent manufacturing digital factory system at the S1

manufacturing prowess on the international stage.LEAD Pavilion. We also showcased 16 new energy

intelligent manufacturing technologies and processes

reshaping the future landscape of the energy industry and

driving the global manufacturing innovation.From October 3rd to October 10th 2024 the prestigious Battery

Show showcasing the world's top batteries and electric vehicles

was held in New Delhi India and Detroit USA. LEAD a

world-leading new energy intelligent manufacturing solution

provider showcased its breakthrough production efficiency

innovative and efficient process capabilities and cutting-edge

intelligent manufacturing technology with the "entire value chain +

entire life cycle" intelligent manufacturing solution bringing the

new concept of "ultimate intelligent manufacturing" to the South

Asia and North America.Industry Participation

In order to promote the high-quality development of the new energy equipment manufacturing industry LEAD have actively participated

in various industry exchanges contributing its intelligence and strength as a pioneer. Over the past year the Company has attended

On June 13th 2024 the 17th International Photovoltaic Power Generation and Smart Energy Conference & Exhibition was opened in Shanghai. multiple industry association communication activities. The industry associations that LEAD joined include: China Industrial Association

As a global leader in the next generation of photovoltaic technology LEAD debuted its cutting-edge photovoltaic cells and intelligent of Power Sources (CIAPS) CIAPS Power Battery Branch CIAPS Energy Storage Battery Branch China Photovoltaic Industry Association

manufacturing solutions and showcased its comprehensive solutions and innovative technological achievements in photovoltaics energy China Association for the Promotion of Industrial Development Perovskite Battery Industry Association and Jiangsu Power and Energy

storage hydrogen energy and more leading the intelligent way towards a green future. Storage Battery Industry Innovation Alliance (as the vice chairman unit).

56 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 57About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

SUSTAINABLE

SUPPLY CHAINS

58 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 59About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Sustainable Supply Chains

Supply Chain Management System

The core objective of supply chain management of LEAD is to provide support for sustainable development by continuously optimizing

procurement strategies strengthening supplier management enhancing supply chain collaboration and improving risk management. To

this end the Company reinforces supply chain management in the following respects:

Quality Risk Prevention and Control

Ensure that components and quality meet the standards reducing delivery delays or cost losses caused by quality issues.

2024

Delivery Risk Management

Improve the on-time delivery rate of suppliers to ensure stable execution of production plans.Financial Risk Mitigation

Optimize payment methods and credit management to maintain the Company's liquidity and business reputation.Supplier Sustainable Development

Promote transparency and compliance in supplier cooperation and build a long-term and stable supply ecosystem.Supplier Lifecycle Management

Risk Prevention and Response Mechanism

Onboarding Screening Mechanism Quality Risk Control Market Risk ManagementLEAD is committed to providing suppliers with a platform for fair competition. When selecting suppliers LEAD conducts an overall Execute “incoming quality control" strictly immediately Establish a monitoring system for component andassessment of supplier delivery ability cost ability technical ability quality after-sales service corporate social responsibility and risk return unqualified components and raw materials and raw material market information and track price

self-control ability through the “Supplier Qualification Review Form” and the “Supplier Operation Environment Review Form” and in demand suppliers to rectify. fluctuations and technological iterations in real time

accordance with the “Procurement Management System” and the “Supplier Management Procedure.” ensuring the timeliness of procurement decisions.Dynamic Assessment and Grading

LEAD evaluates suppliers in terms of quality delivery cost service and other metrics in a monthly basis. According to the evaluation Digital Collaborative Management

results main suppliers are divided into four categories: excellent suppliers qualified suppliers limited suppliers and unqualified

suppliers and relevant supporting measures are taken according to these categories. The Company conducts annual audits of its We have built a Supply Chain Management (SCM) platform to achieve end-to-end online processes from demand planning to order

suppliers in which procurement and technical personnel jointly score and evaluate the suppliers based on an audit form so as to check tracking enhancing information transparency and communication efficiency. At the same time historical data accumulation has helped

the operating environment process and process quality of suppliers. to optimize procurement strategies to reduce cost risks caused by market fluctuations.

60 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 61About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Responsible Procurement Management Supplier Quality Management and Full Empowerment

LEAD is committed to creating a responsible supply chain extending the concept and requirements of social responsibility to the supply

chain communicating with suppliers on labor rights business ethics health and safety and environmental protection continuously

deepening the sustainability management of suppliers and working together with suppliers to develop and establish a sustainable

development system.Supplier Code of ConductLEAD attaches great importance to responsible management of stakeholders and has formulated the “Supplier Sustainability Commit-ment” which requires suppliers to comply with relevant laws and regulations and the “Supplier Sustainability Code of Conduct” for

sustainable development in terms of labor and human rights health safety and environment and business ethics. Suppliers are also

required to formulate relevant policy statements that define their commitments to due diligence and continual improvement obtain the

endorsement of the senior managementand make sure the policy statementsare communicated to all employees through accessible

channels in a language they can understand. In addition LEAD encourages suppliers to communicate to their higher tier suppliers these

applicable requirements. The areas of focus include:

Labor and Human Rights Environment Business Ethics Global Supplier Conference

Forced labor child labor working conditions Greenhouse gas emissions and energy con- Anti-corruption and conflictIn March 2024 the 2024 LEAD Global Supplier Conference with the theme of “Address the hardships together grow together" washealth and safety discrimination and harass- sumption pollution prevention and waste of interest anti-competition

successfully held where government leaders at all levels and representatives of more than 200 suppliers from home and abroad gathered

ment freedom of association and collective management resource efficiency biodiversity

to seek a new pattern of future development.bargaining

Control of Restricted Substances Supplier Quality System BuildingLEAD has formulated a list of restricted substances and its control process and required suppliers to sign the “Statement of Require- Two-way Training and Knowledge Sharingments for Restricted Substances and Candidate Substances” and meet RoHS and REACH directives. Suppliers of chemicals materials Forward empowerment of suppliers: Train suppliers to master the specific standards and

and parts are required to provide test reports on environmentally hazardous substances for products that have an impact on the environ- the quality management tools of the non-standard automation equipment industry and

ment and to sign material environmental protection agreements when necessary. The chemical suppliers shall also provide information communicate LEAD supplier quality management requirements. The main courses includeon the chemical properties of corresponding products and control the products during transportation and handling. "LEAD Supplier Quality Management Process Requirements” "Full Process QualityRequirements for Components” "History of Quality Management & Quality Awareness”

"Total Quality Management (TQM) Practice - Quality Management and Quality Improve-Responsible Mineral Management ment” "Machining Programming” "Interpretation of Outsourced Processing ProductDrawings” and "Inspection Skills Training” etc. In 2024 the Company conducted a total of

LEAD is committed to the responsible procurement of mineral raw materials such as tin tantalum tungsten gold cobalt etc. that are

10 sessions of supplier empowerment training focusing on over 40 courses related to

used in products and during production and takes responsible mineral management as an integral part of the supply chain sustainable

quality improvement and professional skill and knowledge. The training was attended by a

management system and integrates it into the supplier access and supervision and audit process.total of 958 participants from the supplier management team.In accordance with the relevant regulations and survey templates of the Responsible Minerals Initiative (RMI) the Organization for Econom-

ic Cooperation and Development (OECD) Due Diligence Guidance for Responsible Supply Chains of Minerals and the Chinese Due Diligence

Reverse learning from suppliers: Collect supplier process innovation cases (e.g. new processing methods) supplier component installa-Guidelines for Responsible Mineral Supply Chains LEAD has formulated the “Due Diligence Guidance for Responsible Supply Chains oftion guidance etc. to promote internal technological upgrading.Minerals and the Supplier Conflict Minerals Self-Assessment Form." Suppliers are required not to procure conflict minerals and ensure

that products do not directly or indirectly fund armed conflicts or other inhumane acts. Suppliers involved in the procurement of relevant

mineral raw materials are also required to provide their Conflict Minerals Reporting Template (CMRT) reports to LEAD. Process Assistance and Capacity Enhancement

LEAD has launched a supply quality improvement program specifically for vulnerable suppliers providing on-site guidance to help them

optimize their processes such as fixture design and inspection method upgrading. Additionally the Company has promoted automation

Construction of Supplier Integrity Culture transformation by introducing visual inspection equipment thereby assisting suppliers in enhancing production efficiency and productIn order to strengthen supply chain business ethics management and integrity construction the Company has formulated the “Code of quality consistency.Conduct for Integrity in Procurement Business” and other relevant systems and required suppliers to sign the “Supplier Anti-commer-cial Bribery Declaration.” LEAD regularly pushed integrity training videos and integrity letters to all suppliers during the period of high Technical Review and Joint Development

incidence of fraud such as holidays. In addition LEAD delivers its code of business conduct to participating suppliers through the annual LEAD has organized cross-department technical review meetings to assess the feasibility of alternative proposals from suppliers such as

supplier conference to build a supply chain culture of fair competition mutual trust and win-win situation. We organized two supplier material substitution and process simplification. In addition we have involved strategic suppliers in early joint development such as

training sessions and pushed four integrity letters to all suppliers in 2024. co-designing of modular components in order to shorten the lead time of non-standard projects.

62 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 63About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

LABOR &

HUMAN RIGHTS

64 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 65About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Labor and Human Rights

Protection of Employee Rights and Interests At the same time we have established an efficient feedback mechanism. By appointing specially-assigned person to follow up the problems

and suggestions put forward by employees and provide feedbacks in time the Company not only enhances the trust of employees but also

improves the operational efficiency.Statement on Labor and Human Rights In addition we ensure that the Company's policies and systems caring services warm reminders are communicated to each employee in a

LEAD solemnly declares that it always observes the Labor Law of the People's Republic of China and other domestic laws and regulations and timely accurate and efficient manner through online channels such as WeCom announcements WeChat official account columns push

local laws and regulations applied to foreign operation areas and that it always abides by internationally recognized labor and human rights notifications as well as offline channels such as advertising machines roll up banners cultural walls bulletin boards and other channels.standards including but not limited to the UN Universal Declaration of Human Rights the Responsible Business Alliance (RBA) Code of Conduct

the core conventions of the International Labor Organization and other relevant international treaties and norms. We are committed to the CI Suggestion Platform for All Employees Collection of opinions in 2024

respect and protection of labor and human rights in all our operations as well as in our cooperative relationships with suppliers and part- In order to enhance employees' participation in enterprise management and sense of owner-

ners. ship LEAD collects and adopts employees' suggestions on the sustainable development of the

Our labor and human rights protection policy covers a wide range not only paying attention to the rights and interests of employees within +Company through Continuous Improvement (CI) suggestion platform with an adoption rate of

the Company but also actively promoting suppliers and partners to comply with labor and human rights standards. We firmly oppose any 48000about 81.2%.form of human trafficking and forced labor and adopt a zero-tolerance attitude towards this. Once it is found we will take immediate action

and report it to relevant departments. We promise not to employ child labor and strictly abide by national and international laws and regula-

tions on child labor. We respect employees' freedom of association and right of collective bargaining provide employees with diversified com- Engagement Survey

munication channels and encourage employees to express their opinions and demands through legal channels. We actively listen to employees' voices understand employees' demands respond to employees' concerns conduct regular internal evalua-

We adhere to the principle of equal pay for equal work and ensure that employees can receive fair and reasonable salary and benefits in light tions and implement targeted improvement measures to enhance employees' satisfaction and engagement.of their job value experience expertise and performance. We firmly oppose any form of discrimination and harassment including sexism

racial discrimination and sexual harassment and have established a complete complaint handling mechanism to ensure that employees'

rights and interests are safeguarded in a timely and effective manner. Driving Factors

D3. My work and achievements are recognized and motivated by the Company.D

Human Rights Due Diligence Survey Process NV NITION AR D2. I have a clear understanding of the team goals and I am willing to make extra efforts as a team member.ECO AG LN UE RECOGI ON D1. I agree with the core values of the Company and integrate them into the code of conduct and work.TION IVATI REMOT ULTU

In order to ensure that employees' rights and interests are fully protected LEAD has established a comprehensive human rights due diligence ATE C

ORP

OR

C C4. I am very clear about my career path in the Company.process. This process covers all employees and also suppliers and partners to ensure that they comply with labor and human rights stan- ENTLEA ELOPM D C3. The Company's skill level examination certification requirements or qualification/promotion standard

dards in the process of cooperation. For example we ensure compliance with employment age requirements by leveraging both manual regis- RD NE IV N

DEV ARG AN REER STAN

D requirements are reasonable and motivating.EL D A N

tration and system identification technologies to verify and track employee identity documents and establishing a full-cycle monitoring OPM CE OTIO TMEN C2. I am satisfied with my skill improvement and growth over the past year.NT MPRO MPRO

VERCE C1. The Company provides me with the training and resources I need to do my job.system for "onboarding-employment-departure.” ILL ISK SO

U

G RE

Our human rights concerns include but are not limited to working conditions health and safety pay and benefits working hours anti-dis- ININTRA ION B10. I can give my opinions to the relevant departments or superiors without any worries.T

crimination and anti-harassment. To solve these problems we have formulated a series of relevant policies such as “Employee Handbook” NICAU B9. The communication and complaint channels within the Company are clear and I know who to turn toMM P when I have problems.“Salary and Benefits Management System” “Safety Risk Hierarchical Management and Control System.” These policies aim to provide R WO O IELA RT KING PLOY

EE C H

LATIO

NS B8. I have some good friends in the Company.employees with a safe fair and healthy working environment. IONSH EMIP GUE R

E

E B7. My coworkers and I work well together on shared tasks.EA ER

In the process of human rights due diligence we pay special attention to those who may face higher risks such as new employees and foreign COLL SPH B6. My teammates are highly motivated cohesive and committed to achieving their goals.ATMO ION B5. I feel well respected at work and I am able to work in a happy mood.employees. We provide them with necessary training and support to ensure that they can adapt quickly to the working environment and K ATWOR ZTHOR

I

OR B4. I can be trusted and reasonably empowered to deal with problems at work.U S

understand their rights and interests and how to safeguard them. ORK A ERV

I

P B3. I understand and am satisfied with the management style of my immediate supervisor.W SU B2. My immediate supervisor is willing to help me solve problems and is very helpful to me.When human rights problems are found we take active mitigation and remedial measures. EDIAT

E

IMM ON B1. My immediate supervisor has communicated with me in a timely and adequate manner about my jobUATI achievement or career development within the last 1 year.● Immediately stop the violation of employees' rights and interests and seriously deal with the responsible. WORK E EVA

L

EFITSIN C N

● GProvide necessary assistance and support to employees to help them recover their rights and interests. COND ORMA

N BE

I AND A10. I am willing to earn higher salary through better performance.TION RF N A9. The performance evaluation results can objectively and truthfully reflect my work performance.● Analyze the root causes of the problems and formulate improvement measures to prevent similar problems from happening again. S PE SATIO

MPEN A8. The performance evaluation system is clear and reasonable.CO LOW A7. My overall salary level is more competitive compared to that of other companies.ORK

F

URS T A6. My income and efforts are directly proportional.W HO EN A5. The existing organization processes and systems enable me to work efficiently.Employee Communication Mechanism KING ONMWOR NVIR A4. I can find a relative balance between work and life.KING

E A3. I am satisfied with my work hours and overtime days.R

LEAD attaches great importance to internal communication with employees and is committed to building an open transparent and efficient WO A2. I work here without receiving any discrimination or differential treatment.A1. The working environment I am in is safe healthy and comfortable.communication environment. We have established diversified communication channels and actively built communication bridges between the

Company managers and every employee including regular staff meetings hierarchical morning meetings and regular meetings face-to-face According to the survey feedback various departments actively worked out improvement action plans and put the improvement

with executives employee voice suggestion boxes employee engagement survey etc. in order to help the Company better understand the responsibility on the relevant responsible persons. LEAD will continue to promote the implementation of those plans and best practices to

needs and expectations of employees to formulate policies and measures that are more in line with the interests of employees. further enhance the workplace experience of employees.

66 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 67About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Labor Disputes Employee Diversity

Attaching great importance to the settlement of labor disputes and adhering to the principle of putting employees first LEAD builds a LEAD adheres to the talent concept of "employee-oriented helping employees to give full play to their talents and making the best use offair impartial and efficient labor dispute handling mechanism to effectively protect the legitimate rights and interests of employees and employee’s talents.” The Company strictly abides by the Labor Law of the People's Republic of China the Labor Contract Law of the People's

promote the stable and harmonious development of the Company. Republic of China the Law of the People's Republic of China on the Protection of Women's Rights and Interests the Law of the People’s Republic

of China on Work Safety the Law of the People's Republic of China on the Prevention and Control of Occupational Disease and other laws and

regulations and implements national regulations and standards in labor safety and health system and social security. The Company

formulates and continuously improves its internal system norms to provide an equal and open growth platform for talents of different

Labor Dispute Complaint Mechanism genders ages nationalities and races as well as create a homeland where everyone can display their talents and work together. LEAD

respects and safeguards the legitimate rights and interests of employees insists on equal employment and equal pay for equal work and

opposes any form of discrimination. As of the end of the reporting period LEAD had a total of 15025 employees of which 2200 were

The Company adopts an open approach for communication treats every employee with equality females accounting for 14.64%. In addition the Company has more than 500 employees from Zhuang Manchu Tujia Miao Korean Hui

Complaint Policy and sincerity. Employees are encouraged to provide opinions and suggestions and seek solu- and other ethnic groups as well as foreign employees from the United States Japan Germany France South Korea India Sweden

tions through the official and formal communication platform and channels. Malaysia New Zealand Pakistan and other different countries.Online channel Email WeCom - Mediation Committee Feedback Assistant Mediation Committee Hotline

Complaint Gender Age Education Level

Channel

Offline channel Above 50 years old Master degree and aboveImmediate superior HRBP employee seminar Mediation Committee office 0.73% 6.61%

Undergraduate degree

Unreasonable behavior of employees and superiors that harms the interests of the Company 41.43%Female 14.64%

Complaint Scope and employees or behavior that violates the Company's management system or national laws

and regulations. 30 years old and under

45.66% College degreeMale 85.36% 21.18%

31~50 years old Below college degree

Principles of Handling Confidentiality fairness timeliness and accuracy. 53.60% 30.78%

Labor Dispute Settlement Mechanism

Employee Recruitment

Preliminary mediation LEAD takes "fairness justice and meritocracy" as the employment standard and adheres to the strategy of mainly cultivating talents

After receiving the complaint we will arrange special personnel to conduct preliminary investigation to understand the details of the internally and complementarily recruiting for scarce positions externally. Combined with annual personnel planning it continuously

dispute and the claims of both parties. On this basis we will try to mediate the two parties to reach a settlement. expands talent acquisition channels through internal selection and competition social recruitment campus recruitment headhunting

services and other forms to meet the rapid development needs of the Company. In 2024 the Company carried out organizational optimiza-

tion and talent structure adjustment to better adapt to the demands of international business development. It actively introduced

Professional arbitration high-quality talents including international talents individuals with master's degrees or above and senior managers. The Company also

If the two parties fail to reach an agreement during the preliminary mediation we will submit the dispute to a professional arbitration strictly adheres to fairness and justice striving to achieve a balance between organizational optimization and employee rights and

institution for arbitration. The arbitration institution will make a fair and equitable ruling on disputes in accordance with relevant laws interests.regulations and company policies. The Company attaches importance to school-enterprise cooperation continuously strengthens the cooperative relationship with China’s

intelligent equipment professional colleges and enhances the brand influence of the Company through school-enterprise cooperation

brand projects to attract and reserve talents in advance. In 2024 LEAD carried out more than 30 school-enterprise activities and 70 job

Legal litigation fairs in 31 universities across 23 cities and deepened the close cooperation between schools and enterprises through visits to the Compa-

In specific circumstances if the arbitration outcome fails to meet both parties' requirements we encourage employees to resolve ny summer internships school-enterprise classes campus recruitment presentations and other activities. LEAD has also set up "Wang

disputes through legal means. We will actively assist employees in legal proceedings to ensure that their legitimate rights and interests Yanqing Scholarship" in six key universities such as Harbin Institute of Technology to provide financial support and encouragement for

are protected by law. potential students.

68 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 69About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Employee Development

Talent Development and Promotion System Talent Training System LEAD Training System

Multi-channel Incentives

In order to fully mobilize the enthusiasm of the core team members the Company has established short-term medium-term and

long-term incentive mechanisms to attract and retain outstanding talents through various channels such as salary adjustment year-end Think Big Start Small Act Fast

bonus outstanding recognition and equity incentive. Furthermore the Company continues to improve the long-term incentive mecha-

nism. Since going public it has successively implemented six phases of equity incentive plans covering directors senior executives

middle-level managers and core technical (business) personnel. Leadership improvement: According to the capability

requirements of different levels in the capability

model the management post talent cultivation project

is designed in layers and grades giving consideration

Leadership to "present" and "future".Dual-channel Career System center

Guided by the open talent development concept that em- Management Professional

Empowerment Depth

phasizes both upward and downward mobility as well as Pathway Pathway Professional capability improvement: Work with

internal and external opportunities LEAD has established various professional sequences to build a professional

a professional team to support employees in their career Vice-president Industry-level expert capability training system and cultivate professional

Professional

development planning which has enabled a multi-dimen- Director Company-level expert talents. capability center

sional approach to development and training a goal-ori- Manager Section leader

ented approach to management and supervision as well Supervisor Technical contributor Publicity of corporate strategy corporate culture

as a concrete performance evaluation. By focusing on key and values

processes such as talent reserves talent inventory talent General capability: Efficient meetings communi-

pipeline development internal talent selection and Grassroots Employees General cation speeches and business etiquette

appointment we have established comprehensive career capability center Integration of new employees: School recruitment

development pathways for employees. and social recruitment

In order to stimulate the enthusiasm and initiative of employees the Company has set up a dual-track system for technical and manageri-

al advancement providing suitable development opportunities for both technical and managerial talents and fully leveraging their

strengths and expertise. In addition the Company has built an internal talent pool and the talent rotation mechanism. By expanding the In order to accelerate the implementation of LEAD's globalization development strategy and strengthen the building of learning organi-

internal talent flow channels and updating internal recruitment policies the internal talent pool is fully mobilized. During the reporting zation LEAD has established a comprehensive employee training system and formulated a series of training plans including but not

period nearly a hundred positions were successfully matched through internal competition. limited to new employee orientation general ability and professional ability building team management and leadership building etc.Besides in line with the digital strategy we have been constantly improving the online learning platform LEAD e-Learning for employ-

ees achieving a comprehensive upgrade of the training system. The "online + offline" learning mode has enabled employees to partici-

Performance Appraisal pate in training in a more convenient manner with greater enthusiasm. In 2024 LEAD conducted 1819 training sessions covering all

LEAD has established the strategic performance management system encom- employees. The Company has conducted over 170 new courses in 2024. The user engagement rate on the LEAD e-Learning platform

passing organizational performance and individual performance. Based on the reached 96% with an average learning time exceeding 40 hours and the total number of learners surpassing 800000. Various theme

of ec

t dual model of balanced scorecard and personal business commitment the activities such as learning month and open classes were organized to fully create a learning-oriented organization.ati

on fe e

f 4 Company has established a penetrating breakdown mechanism from strategic

c c

pp

li anm goals to department/position goals forming a closed-loop management pro-A or

erf cess through "annual goal setting monthly/quarterly tracking mid-year p

assessment feedback and adjustment and year-end assessment summary."

Performance

3 1 With employees being guided and driven by goals we fully unleash the potential Management of employees achieving a synergistic win-win for both individuals and the Com-

Concept

t pany. The Company places great emphasis on empowering leaders and motivat-

ce enn em ing high-performance employees as well as strengthening the talent attraction ma ag

for an and retention capabilities through effective performance incentive and empow-

2 Pe

r

ss

m erment mechanisms. At the same time we have continuously optimized the

ocepr performance process and system to ensure that the performance management

Pe on system is upgraded for sustainable development driving the continuous rform ica

ti improvement of individual and company overall performance and building an

ance commu

n efficient and high-performing team.

70 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 71

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evaAbout LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Employee Benefits

Employee Benefits System Interest AssociationsCommitted to the mission of "seeking well-being for employees” and the development concept of “people first” LEAD has been In order to fulfill the mission of "seeking well-being for employees” LEAD has created a diverse culture and sports platform through

upgrading the compensation and benefits policies and building a diversified flexible comprehensive and competitive employee benefits interest associations. We have organized 4 large-scale interdepartmental sports events throughout the year to promote teamwork and

ecosystem to enhance employees' sense of belonging and happiness and to strengthen talent attraction and retention. cultural exchange. Sports facilities such as football basketball badminton and table tennis fields are opened on Fridays and Saturdays

with a total of over 200 regular activities being held involving more than 2100 employees. Association activities responds to the call for

"national fitness" and creates a healthy vibrant and sustainable cultural environment.Compensation Benefits Career Development Work-life Balance

Basic salary Statutory benefits Challenging job Comfortable working

Social security and housing provident fund environment

Short-term

incentives Heat allowance Well-established

Paid annual leave promotion Flexible leave of absence

Long-term

Company benefits mechanism systemincentives (equity

incentive) Employee care

(birthday gift/wedding gift/newborn gift/health Abundant internal Well-developed vacation policyYear-end bonus

check-up etc.) and external training

Special recognition Team building opportunities Health and fitness benefits

(annual health check-ups for

Project reward (team-building activities/company or department

year-end party etc.) Job rotation all employees sports clubs

Allowances and Holiday benefits and fitness activities)

subsidies (holiday gift) Career development

New employee benefits opportunities

(welcome package/mentorship etc.)

Other benefits

Statement of Living Wage

LEAD states that during the reporting period the salaries of all employees who have signed labor contracts or service contracts with the Company are

in compliance with the local wage rate set by the respective local authorities allowing a full-time worker to cover basic needs. All employees of the

Company and its subsidiaries including subsidiaries in Wuxi Shanghai Zhuhai etc. are covered by the statement. The Company has always adhered to

long-term and sustainable development and sought well-being for employees. Therefore we ensure that the compensation of each employee can meet

their basic needs.The Company in compliance with laws and regulations provides social security and housing provident fund for every employee upon their onboarding.Furthermore the Company closely monitors policy changes in various regions. In the event of an increase in local minimum wage standards or social

security standards the Company will promptly respond and adjust its compensation policy accordingly. By ensuring that the daily life needs of the

employees are met we create a fair positive and sustainable working environment for them enabling them to focus more on corporate development.Case: Parenting Support Plan

● Parental leave: Eligible employees can enjoy 10-day parental leaves per year before their

children turn 3 years old to strike a balance between work and family;

● Breastfeeding break: Breastfeeding mothers can enjoy breast-feeding breaks of one hour every

day (an additional one-hour break for each additional baby in multiple births) and are provided with

flexible working hours to effectively protect women's rights and interests.In 2024 the Company has continued to upgrade the employee care facilities. We have set up a

versatile nursing room that provides a private and comfortable space for working mothers to

breastfeed and rest demonstrating our firm commitment to gender equality and workplace inclu-

sivity. Meanwhile we have continued to carry out the "Newborn Care Program" to provide newborn

gift packs for new parents and offer practical parenting support. The aim is to enhance employee

sense of belonging and well-being deepen corporate cultural cohesion and further promote the

practices of corporate social responsibility.

72 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 73About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Employee Care Occupational Health and Safety

Dedicated to creating a harmonious and warm work environment LEAD has carried out a variety of care events annually with over LEAD follows the Labor Law of the People's Republic of China the Law of the People’ s Republic of China on Work Safety the Law of the Peo-

14000 participants: ple's Republic of China on the Prevention and Control of Occupational Diseases the Labor Contract Law of the People's Republic of China theFire Protection Law of the People's Republic of China and other laws and regulations. Adhering to the principle of “safety priority preven-tion first and comprehensive management” and taking human life as an insurmountable red line the Company has been enhancing the

level of safety management and employee safety awareness to beef up the corporate safety culture.Safe Production

The Company is committed to building a safe green and environmentally friendly enterprise

with "zero injuries zero accidents zero occupational diseases and zero pollution." The

Environment Health and Safety (EHS) Management Committee of the Company formulates

annual safety objectives and breaks them down into sub-objectives for various business

departments/subsidiaries. The achievement of these objectives is linked to the evaluation of

annual organizational performance. Additionally the Committee develops annual safety work

plans establishes the safety production responsibility system and organizes all staff to sign

Poetry Salon Sports Meeting safety responsibility letters. The safety management system is regularly updated and a dual

prevention mechanism of risk classification and hidden danger investigation and control is

implemented. Various safety training and education programs are organized to foster the

corporate safety culture. Compliant innovative practices such as "Behavior-Based Safety

(BBS)" and "Safety Performance Evaluation" are taken. The safety production responsibility

system is used to solidify the accountability chain and create a governance model leveraging

the synergy of "regulatory bottom line + management top line." The Company has

established the ISO 45001 occupational health and safety management systems. In 2024 it

was recognized by the Jiangsu Provincial Department of Emergency Management as a

second-level enterprise (machinery) in safety production standardization. It also joined the

Emergency and Safety Production Association of Xinwu District Wuxi City and participated in ISO 45001 Occupational Health and

the relevant work of the association as a governing unit. Safety Management System Certificate

Organizational Structure

LEAD has established an EHS Management Committee with the Chairman as the director and department managers as members.Lantern Festival Celebration Summer Parent-child Firefighter Occupational Experience From the Chairman to department managers and employees safety responsibility is assigned at every level ensuring the

well-rounded accountability for safety production. The Committee as the highest governing body for occupational health and safety

management is responsible for the Company's occupational health and safety work. It organizes a quarterly special meeting on

occupational health and safety.Safety Management System

The safety management system is a standardized framework of "clear hierarchy closed-loop management and dynamicoptimization” based on national safety production laws and regulations and combined with industry characteristics and enterprise

realities. The following systems are currently in effective practice: "New Construction and Expansion Project AcceptanceManagement System” "Safety Performance Assessment and Reward-Punishment Regulations” "Safety Production ResponsibilitySystem Management System” " Project Safety Management System” "Hidden Danger Investigation and Management Regulations” "Safety Hazard Severity Determination Standards” "Special Equipment Management System” "Special Operations Management andApproval Procedures” "Job Safety Operating Procedures” "Labor Personal Protection Equipment Management Standards”"Warning Signs and Safety Protection Management System” "Safety Accident Management Procedures” "Supplier SafetyManagement System” "Pedestrian and Vehicle Segregation Safety Management System” etc.Safety Risk Management

LEAD has systematically identified the sources of danger within its management scope by promoting risk classification control and

hidden danger investigation and treatment work and formulated control and preventive measures. Additionally we have

Helicobacter Pylori Detection Cervical Cancer and Breast Cancer Screening strengthened emergency organization construction and conducted emergency drills to reduce accident risks and enhance our

capabilities in safety risk management and response.

74 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 75About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Risk Identification and Assessment Stakeholder Safety Management

With great attention to stakeholders’ safety management LEAD has implemented the safety management requirements in accordance with the"Supplier Safety Management System" and "Stakeholder Management Control Procedures” etc. In 2024 the Company has further optimized

The Safety and Environment Department is responsible for organizing all 100% the Integrated Security System enabling automatic identification of ID cards to determine personnel information. It has achieved a unified departments to carry out safety risk identification according to the “Management Procedure for Identification and Evaluation of Environmental Factors and Hazard control interface for application processes operation staff safety training exam information visitor passes and tool carrying status. We have Sources.” According to the “Safety Risk Hierarchical Management and Control also added the function of sending texts notifications to suppliers so as to identify the business contact personnel and strengthen the safetySystem” the safety risks are classified as major risk moderate risk general risk Rectification rate for hidden dangers upon management of supplier on-site operations. Moreover the online training system for suppliers has been enhanced to provide one-on-one

and low risk using the Likelihood Exposure Consequence (LEC) method. expiration in 2024

Qualification rate for inspections in occupational occupational health and safety management training for supplier personnel entering our factory. As for customers the Company has carried

hazard workplaces in 2024 out safety management on customer project sites in accordance with the relevant project safety management regulations. For example we

assigned dedicated or part-time safety managers based on customer requirements and actual project conditions.Risk Control Process

The EHS Management Occupational Health

Each department is The Safety and Environment

The general manager is Committee is responsible for

responsible for formulating its Department is responsible Occupational Health Risk Management and Control

responsible for organizing special meetings toown “Safety Risk Hierarchical for supervising the examine and analyze the LEAD carries out the prevention and control of occupational health hazards and formulates and implements various safety and occupational organizing andManagement and Control List” implementation of safety risk

implementing the implementation and control of management and control of health management systems in strict accordance with the Labor Law of the People's Republic of China the Law of the People’s Republic of China according to the safety risk

management and the identified major and each department and on Work Safety the Law of the People's Republic of China on the Prevention and Control of Occupational Diseases and other national laws and identification list and

control of major risks. moderate risks every year and

decomposing it to each post. making real-time adjustment regulations as well as the requirements of customers and relevant parties.set the focuses of safety risk

to prevent a “lifetime rating.”

control for the next year. We strictly implement the "three simultaneous" occupational health management regulations that all kinds of occupational health protective

facilities are designed constructed and put into use simultaneously with the project. In accordance with national occupational health laws and

standards strict control is placed on the purchase and use of chemical substances involving occupational hazards with preferences given to

safe materials over toxic and harmful substances. We regularly organize employees to undergo occupational health examinations before

Emergency Response and Drills during and after taking a post. We also conduct occupational hazard factor testing of the work environment in accordance with relevant laws

and standards to ensure that the work environment meets national standards and that employee health is protected.The Company formulates the “Emergency Preparedness and Response Control Procedure” that

standardizes the emergency handling process clarifies the rights and obligations of the emergency Occupational Health Hazard Identification and Control Means

handling organization lists the types of emergency accidents and provides guidance to carry out

various emergency drills. The emergency drill plan is formulated each year and carried out 69

accordingly. By rehearsing different accident types employees enhance their ability to handle The main occupational hazard factors involved in the production activities of LEAD 100%Emergency drills in 2024emergencies. are noise and dust. The Company has prepared the “Identification List of Post Occu-covering fire protectionsafety and occupational health pational Hazard” which clarifies the hazard factors and harmful substances and

Coverage rate of occupational health examination

taken control measures such as adding shock absorption measures and dust collec- for employees in 2024

tion devices distributing personal protective equipment (PPE) and organizing regular

occupational health examination and occupational hazard factor detection. In 2024

the coverage rate of occupational health examination for employees was 100%.Occupational Health and Safety Inspection

The Company formulates occupational health and safety inspection plans every

month that incorporates occupational PPE sanitary equipment canteen environment

and more and promptly reports and rectifies any problems identified. Special inspec-

tions of the working environment are conducted to ensure compliance with relevant

requirements.First Aid and Emergency Treatment

Emergency Response

Each workshop is equipped with Automated External Defibrillators (AED) and each

workshop is equipped with first aid kits to ensure that employees receive timely

The Company has established the "Safety Accident Management Procedures" and a series of processes for handling work-related injuries and treatment. The Company regularly conducts training and drills on first aid knowledge

emergency incidents. It has actively developed emergency rescue plans for work-related accidents and executed drills. Through measures such such as cardiopulmonary resuscitation (CPR) burns treatment and Heimlich maneu-

as the dual prevention mechanism safety inspections and safety training we have reduced various work-related injury risks. After a ver so that employees can master basic first aid knowledge. In addition the Company

work-related accident occurs the Company follows the procedure to report investigate and analyze the causes of the accident as well as tracks has signed a rescue agreement with surrounding hospitals to ensure immediate

and improves the existing problems. medical treatment in the event of an accident.

76 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 77About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Well organized

Food Safety Health and Safety Training and Culture Development

LEAD’ s canteens always provide employees with safe Responsibility assumption

healthy and high-quality dining services by executing 4D Kitchen Safety culture development is a systematic project the core of which is to internalize the concept of safety as a conscious action for all

multidimensional management and strict "4D Kitchen" Necessary training employees through value guidance behavior shaping and environment creation. LEAD has established a multi-dimensional occupation-

standards. al health and safety training system by utilizing the LEAD e-Learning platform to carry out regular training for managers team foremen

Proper execution and employees of work returning or job rotation and runs "four new" education. We have also put into practice the three-level safety

education and strengthened safety training for post operation procedures hazard identification and control road traffic etc. so as to

enhance employees' safety awareness.

24 Average training hours per production 10922 Safety training sessions given to 217 Individuals obtained certification asworkers in health and safety in 2024 on-site construction contractors in 2024 specialized operators in 2024

System Construction Quality Control and Supervision

100% 100% 81 Individuals obtained certification asspecialized equipment operators in 2024

Cleaning and inspection forms are displayed publicly and dedi- The canteen management system have been upgraded in a Coverage rate Coverage rate

cated personnel are assigned for the inspection and regular comprehensive manner in 2024. An inspection team have been

summary. Food safety information is displayed on the notice established to conduct inspections 3-4 times per week in coor-

board for information disclosure and joint supervision. Strict dination with unannounced inspections. The "food sample Pre-job Training Regular Training Stakeholder Training

registration and protective measures are taken for external visi- 48-hour retention" system are implemented to ensure food

tors. Regular elimination of canteen pests is conducted to hygiene. The supplier database for raw materials is updated to The three-level pre-job The Company formulates and executes the annual The Company provides online

ensure safe and hygiene dining environment. ensure strict quality control over ingredient acceptance and safety training and safety education and training plan to continuously safety training for external

each batch of materials comes with report for traceability. A assessment are performed strengthen employees' occupational health and safety construction personnel and

Canteen Staff Management service counter and a suggestion feedback hotline have been to ensure new employees ability. Safety education and training subjects include one-on-one occupational

added resulting in an 80% increase in on-site resolution rate have the necessary the new employee three-level safety training fire safety health and safety

training occupational health and safety training first management training for

Canteen staff can only go on duty after daily morning inspection. for employee dining problems. The goal of zero food safety inci- knowledge of occupational

dents hasbeen achieved throughout the year. health and safety. responder training driving ground operation training on-sitepersonnel.Regular staff meetings and practical drills are held to reinforce the specialized operation supervisor safety training etc.awareness of food safety.Dining Experience Upgrade Knowledge Popularization Furthermore LEAD has actively promoted corporate safety culture development and created a safety culture atmosphere participated by all

employees. This is done through activities such as safety month fire prevention month safety innovation competition 7S mobilization

four-color risk maps and risk lists factory pedestrian and vehicle segregation preventive driving courses post safety risk notification cards

Canteens are divided into dining area storage area and cooking We have enhanced employee interaction and disseminated knowl- and safety warning signs safety culture corridor safety warning videos and LEAD EHS WeCom platform push notifications.area so as to ensure a clean and tidy dining environment and a edge on healthy diet through a total of over 100 article feeds about

diverse selection of healthy and safe meals. menus seasonal diet and more in 2024.Safety Month

In June 2024 LEAD held the Safety Month event with the theme "Safety for EveryoneEmergency Treatment by Everyone - Smooth the Path of Life.” The number of participants

reached nearly 7000 in a series of promotional and educational activities including safety

knowledge competitions vehicle blind spot experience and videos with heartfelt messag-

es from loved ones. These activities effectively enhanced the Company's ability to handle

safety emergencies and strengthened the safety fortress.

119 Fire Prevention Month

In November 2024 LEAD held the 119 Fire Prevention Month event focusing on the theme

of "Prevention First Life First." In conjunction with winter fire prevention and control

publicity work a series of fire prevention awareness activities were organized. A total of

4227 employees actively participated in the fire safety competition gaining knowledge of

fire-fighting equipment and fire safety. The employees organized by departments took

part in a comprehensive fire-fighting competition which included tasks such as extin-

guishing initial fire wearing protective gear connecting water hoses and water relay. This

competition has enhanced the employees' professional skills teamwork and emergency

response capabilities.

78 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 79About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

ENVIRONMENT & ENERGY

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Environment and Energy

Environment and Energy Management Systems Green Production

LEAD is committed to building a green and intelligent manufacturing ecosystem that covers the entire new energy industrial chain with

intelligent manufacturing technology as the cornerstone. We are unwavering in our pursuit of a zero-carbon sustainable development Clean Production

strategy aligning well with the global green development trend.After a new round of clean production audit and guidance LEAD has taken systematic and comprehensive pollution treatment measures

such as source reduction and process control cutting the annual output of waste emulsion the Company's main hazardous waste by

31.76% year-on-year during the reporting period. This fully verifies the remarkable effect of clean production measures in hazardous

waste reduction.Environmental Management System

LEAD "Environmental Management Policy" adheres to the core concept of "clean production and Waste Management (Waste Gas Waste Water Solid Waste)green development” formulating scientific and reasonable environmental management proce-

dures and quantitative targets with the aim of comprehensive and fine-grained control of pollu- LEAD has formulated the internal management system for water gas noise and solid waste in accordance with relevant national and local

tion sources throughout the whole process. Furthermore we actively advocate and encourage all laws and regulations combined with its current situation. We have actively conducted environmental pollution control and waste discharge

stakeholders to jointly adhere to this policy consolidating the collective efforts for sustainable management regularly supervised and detected waste discharge to ensure regulatory compliance and continuously upgraded the

development. The Company guided by the ISO 14001 environmental management system has treatment facilities. In 2024 LEAD entrusted a third-party testing agency to conduct tests on its water air and noise emissions all of which

established and improved the environmental management system. Through systematic institu- met the relevant discharge standards.tionalized and process-oriented management it has effectively guided the orderly implementa-

tion of environmental management and compliance work significantly improving the efficiency of

pollutant management and continuously enhancing the Company's environmental performance. Waste Gas Management

The Company has strictly executed the "three simultaneous" management regulations for envi- LEAD has formulated waste gas management regulations such as "Regulations on Waste Gas Emission Management" and "Managementronmental protection in construction projects conducted relevant environmental impact assess- Procedures for Waste Gas Treatment Equipment and Facilities.” We have installed gas collection devices to collect machining oil mist

ment and acceptance as well as held pollution/drainage permits radiation safety permits and waste gas before introducing it into waste gas treatment facilities through waste gas pipelines ensuring that the waste gas emission

other related licenses. ISO 14001 Environmental

Management System Certificate concentration meets the national and local emission requirements such as "Comprehensive Emission Standard for Air Pollutants" (GB

16297-1996).

The Company monitors the operation of the waste gas treatment facilities in real time through the working condition power monitoring

systemand regularly conducts environmental monitoring every year to control the emission of air pollutants. It also identifies monitors

and controls the use of ozone-depleting substances (ODS) and establishes the "Ozone-Depleting Substances Control Procedure" to

Energy Management System control the consumption of ODS at source through the development of a sustainable procurement strategy.Furthermore we have reduced the use of fossil fuels at the source by increasing the proportion of electric vehicles in the corporate fleet

LEAD takes energy management as a key driver of green intelligent manufacturing and thereby minimizing the environmental impact of emissions on our operations.practices green operations through system improvement equipment upgrades monitoring

optimization and the use of renewable energy.The Company adopts ISO 50001 energy management system as the framework establishes

energy management regulations and procedures and conducts regular system reviews

every year to ensure the suitability adequacy and effectiveness of the management system.The Company always takes zero environmental pollution as its direction.We have formulat-

ed scientific and reasonable environmental and energy management goals based on actual

operational conditions. Monthly statistical analysis and annual comprehensive reviews are

conducted. In the event of changes in the operational environment production processes or

updates to relevant national and local laws and regulations the target indicators are

promptly revised and updated to ensure scientific and timely environmental and energy

management.ISO 50001 Energy

Management System Certificate

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Wastewater Management Noise Management

During the reporting period the Company's water supply was solely obtained from the municipal water system with no significant

direct or indirect impacts on water resources resulting from changes in water intake consumption discharge or storage. The main sources of noise in the Company include waste gas treatment facilities and equipment air compressor rooms the operation ofThe Company has no industrial wastewater generation or discharge and the main source of wastewater is domestic sewage. After production equipment handling and loading/unloading operations etc. We have established the "Noise Management System.” After noise is

pretreatment in septic tanks (for domestic sewage) and oil separators (for canteen wastewater)the sewage is connected to the reduced through plant sound insulation fan vibration reduction distance attenuation soundproof walls and enclosures are used toXincheng Wastewater Treatment Plant. The influent concentrations meet Grade III standard of “Comprehensive Wastewater Discharge effectively block and eliminate the noise. In 2024 LEAD entrusted a third-party inspection agency to conduct noise testing. According toStandard” and Class A standard of “Water Quality Standard for Wastewater Discharged into Urban Sewers.” results the noise levels at the factory boundary meet the Class 3 standards stipulated in the "Emission Standard for Environmental Noise at

In order to comprehensively improve the efficiency of water resource management and to address water scarcity and environmental the Factory Boundary of Industrial Enterprises" with a maximum of 65dB(A) during the daytime and 55dB(A) during the nighttime.risks the Company has formulated the "Rain and Wastewater Management Procedure" and innovatively introduced an intelligent initial

rainwater diversion system. This system achieves precise control of rainwater discharge through real-time monitoring and data

analysis effectively enhancing the environmental risk warning capability. Radiation Safety Management

LEAD strictly adheres to the Regulations of the People's Republic of China on the Safety and Radiation Protection of Radioisotopes and Radiation

Case: Rainwater Collection and Utilization System Devices the Administrative Measures for the Safety License of Radioisotopes and Radiation Devices the Administrative Measures for the SafetyIn 2024 LEAD constructed an advanced rainwater collection and utilization system in the newly developed area. This system and Protection of Radioisotopes and Radiation Devices and other relevant laws and regulations and has formulated the “Radiationemploys a three-stage treatment process of "sedimentation-filtration-purification" to process rainwater and store the treated Management Rules and Regulations” to implement the radiation safety management of employees from the aspects of operation training

rainwater in the collection tank. Processed rainwater can be directly used for irrigation within the industrial area significantly occupational health examination and regular detection of radiation dosimeters.reducing the intensity of water resource consumption and achieving the efficient and sustainable utilization of water resources.Radiation Area Detection Radiation Training and Assessment

Roof Preliminary Rainwater collection Greening In 2024 the Company entrusted a third-party testing agency to conduct All employees working in radiation-related positions are required to

rainwater grid filtration pipeline network water protective detection on the radiation areas within the factory premises. obtain the certificate of "Radiation Safety and ProtectionThe results meet the limit requirements specified in the “Standard for Assessment for Nuclear Technology Utilization" or pass the internalRoad Pollutant Initial rainwater Storage Radiological Protection in Low-energy Radiation Generating Devices” training test.rainwater interception device diversion device tank (GBZ115-2023).Road sprinkling

Overflow Municipal rainwater pipeline/ water

sewage pipeline Radiation Dose Detection Occupational Health MonitoringInitial diverted LEAD cooperates with third-party agencies to conduct quarterly testing LEAD organizes occupat ional heal th examinat ions for

rainwater

of the radiation dosimeters worn by radiation-exposed employees and radiation-exposed employees every year tracks the examination

issue compliance testing reports. results and follow-up arrangements establishes and properly

keeps personal health monitoring files to ensure compliance with

Solid Waste Management regulatory requirements.The Company has developed the "Solid Waste Management Procedures" and "Hazardous Waste

Management Regulations" to implement the principles of "waste reduction resource utilization Emergency Management

and harmless treatment." It aims to ensure the collection disposal and comprehensive utilization

of various types of solid waste in compliance with the regulations achieving zero discharge of solid LEAD strictly adheres to the Environmental Protection Law of the People's Republic of China the Water Pollution Prevention Law of the People's

waste. The Company has also established a plan to reduce hazardous waste. Through clean Republic of China the Air Pollution Prevention Law of the People's Republic of China and other relevant laws and regulations and has

production the amount of waste emulsion generated in 2024 decreased by 31.76% compared to established a scientific sound environmental emergency management system. Based on the dynamic environmental risk assessment

that in 2023. Comprehensive management of hazardous waste has been implemented throughout mechanism we have continued to improve the three-in-one emergency plan system covering comprehensive plan special plan and on-site

the entire process and life cycle. handling plan in an annual basis to ensure that the plan system is both strategically preventive and practical.In terms of emergency support capability the Company has established a comprehensive management model to optimize the emergency

supplies of different categories and promote the quantitative reserves and efficiency monitoring. It has also built a professional emergency

Chemical Management rescue team and continuously enhanced the team's professional competence and emergency response capabilities through a cultivationsystem of "selection training drills and evaluation.”

LEAD abides by Chinese and overseas laws and regulations related to chemical safety such as the Regulations on the Administration of Furthermore the Company conducts annual environmental emergency drills as planned to examine and enhance the effectiveness of the

Controlled Chemicals the Regulations on the Safety Management of Hazardous Chemicals the Interim Provisions on the Supervision and emergency response mechanism thereby responding to various unexpected environmental incidents effectively and providing a solid

Administration of Major Hazard Sources of Hazardous Chemicals the Catalogue of Hazardous Chemicals etc. We have formulated systems guarantee for environmental safety.such as the “Chemical Life-Cycle Management Procedures” to regulate the whole process of chemical procurement compliant

purchasing storage use emergency disposal and waste treatment.We have established a stringent process for the management of hazardous chemicals. Through our information system we examine Environment Protection Training

and approve the chemical procurement requests and the introduction of new chemicals in the factory. In strict accordance with laws and

regulations we implement controls such as prohibition of entry and substitution for restricted substances highly toxic chemicals and LEAD has carried out environment protection training as scheduled. The training covered key topics such as water conservation integrated

chemicals with serious occupational health and safety hazards in the areas of operation. In 2024 the training coverage rate for chemical management of rainwater and wastewater management of gas emissions classification and disposal of solid waste and noise pollution

management among employees exposed to chemicals reached 100% with a total of 7510 participants. control. The total number of participants in the environmental protection training reached 7710 with a 100% pass rate in the training test.

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Green Operation

Conduct Energy-saving Management to Deal With Climate Change

LEAD actively responds to the dual carbon goal and agrees with the latest climate assessment report by IPCC. We are committed to energy

conservation management and have been contributing to keeping global temperature rise within 1.5℃ and mitigating climate risks. The

Company has formulated the climate and energy management policies and implemented a comprehensive response strategy to promote Case: Air Conditioning Power Management

global sustainable development. As the factory expands the energy demand increases. In order to implement the energy-saving and emission reduction policy

LEAD continues to explore the energy-saving potential of the air conditioning system and has conducted a hierarchical con-

straint index management and incentive program in the entire company. We have improved the management mechanism of air

Energy Efficiency Improvement conditioning power consumption by strictly executing the seasonal temperature control standards (set 26 ° C for summer with

outdoor temperatures ≥30° C and set 20° C for winter with outdoor temperatures ≤5° C) and developed employees' awareness

of energy saving and emission reduction.Optimized Monitoring Upgraded Equipment

Established an energy monitoring system Prioritized the procurement of high-efficiency

to track and reduce energy waste energy-saving lamps and low energy-intensive

equipment to reduce energy consumption from

the source

Consciousness Development Improved System Case: Remote Monitoring System for Compressed Air Stations

Elevated employees' consciousness of Established and continuously improved the energy LEAD has built a digital energy efficiency management system to promote the energy-saving renovation of the compressed air

water and electricity conservation through management system to ensure its efficient operation system. By deploying the Mogulinker intelligent management platform we have achieved the 24-hour real-time monitoring

energy-saving slogans energy efficiency diagnosis and warning linkage for the compressed air unit providing accurate data support for energy con-

servation. With the data from the management platform we have implemented technical improvement projects such as pres-

sure sensor network optimization and pipeline renovation leading to an over 36% year-on-year decrease in energy consump-

tion of the compressed air system and a power saving of 1680 MWh in 2024.The Company has improved electricity efficiency by executing precise management on the air conditioning system and monitoring and

managing power factor through the transformer substation. It has also reduced exhaust by managing the compressed air system conducting

thorough inspections on air leaks and adopting low or zero air-consumption drainage equipment. In addition the Company has improved energy Smart air compressor station cloud platform

management level and efficiency through digital and intelligent upgrades. This includes the introduction of an online monitoring system for

substation equipment a remote monitoring system for the compressed air stations and a smart forklift management system.Air compressor Statistical analysis Maintenance Integrated control

operation of air compressor warning for operation of air Mobile terminal

monitoring operation data air compressor compressor system operation

Case: Construction of Charging Piles

In line with the green and low-carbon concept LEAD installed intelligent charging piles in the parking lot in 2024 to provide

convenient new energy vehicle charging services for employees and encourage green travel. While improving the green infra-

structure of the industrial park we have also reduced the carbon footprint of employees further contributing to carbon neu-

trality.

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Use of Renewable Energy

To follow global carbon neutrality goals further reduce carbon emissions and promote green and low-carbon transition LEAD has Every year on Arbor Day the Company organizes tree-planting activities within and around the industrial park. On important occasions

optimized the energy mix and increased the proportion of renewable energy consumption striving to create a green operation model. such as Earth Day and World Environment Day we conduct sustainability promotion activities environmental knowledge competitions

The factory in Naila Germany has achieved 100% green power supply making it a flagship of LEAD's international green manufacturing. and other events to enhance the awareness and ability for environmental protection.Meanwhile the three production bases in Xinwu District Wuxi City have been constructing rooftop distributed photovoltaics and During the reporting period the Company did not have any production bases or operational sites located within and adjacent to nature

simultaneously deploying an intelligent energy management platform to achieve refined control of energy consumption. Once the reserves or in biodiversity areas. All production operation products and services of the Company have not been found to have a

construction is completed all the green electricity generated will be consumed by the Company. We will continue to deepen the significant negative impact on biodiversity. LEAD will continue to evaluate the environmental impacts that may arise from the

application of renewable energy and explore more innovative ways to reduce emissions. construction production and operation activities of the Company and formulate ecological conservation policies to build a harmonious

planet.Case: Garbage Sorting Game

In order to enhance employees' environmental awareness LEAD

held a garbage sorting knowledge quiz in June 2024 to help em-

ployees easily acquire the knowledge of waste classification

from games. The activity infused waste sorting knowledge into

games where employees learned waste sorting skills and

understood the significance of garbage separation for environ-

ment protection in a relaxed and enjoyable atmosphere through

interactive experiences and team cooperation. The event has

helped to contribute to building a resource-saving and environ-

mentally friendly society.Build an Environment-friendly Park to Protect Biodiversity

LEAD focuses on the impact of its operation on biodiversity. We strictly adhere to policies and regulations such as the Opinions on

Further Strengthening Biodiversity Protection and identify risk factors and potential dangers. As the "Green Factory of Jiangsu Province"

the Company places great importance on biodiversity conservation in its construction and operation. It is committed to creating an

ecological demonstration park to provide a habitat for animals.Case: Sustainable Procurement of Employee Benefits

LEAD practices the sustainable development concept in every aspect of its operations. The Mid-Autumn Festival gifts for

employees in 2024 used 100% inkless and biodegradable packages made from 8000kg sugarcane bagasse and each bucket hat

was made from 8 recycled water bottles. This not only shows the concept of environmental protection and sustainability but

also adds a unique sentimental value to the gifts.

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COMMUNITY

RESPONSIBILITY

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Community Responsibility

Public Welfare Donations

LEAD takes "integrity harmony green and development" as its social responsibility concept. We have clarified the principles key areas

and application and approval process for public welfare support and set a special public welfare budget to support fields such as

scientific research and development education rural revitalization and environmental protection.Wang Yanqing Scholarship Rural RevitalizationSince its establishment LEAD has always upheld the concept of "Intelligence for Good” under the leadership of Chairman Wang The Xinwu District of Wuxi has established a pairing assistance relationship with Yichuan County of Yan'an City. As an important participant

Yanqing. The Company set the "Wang Yanqing Scholarship" with 10 million RMB in 2017 at Xishan Senior High School in Jiangsu and contributor to the pairing cooperation LEAD has started a long-term assistance program for 12 left-behind and disadvantaged children

Province to inspire more students to pursue their dreams. Starting from 2021 we have set up the "Wang Yanqing Scholarship" at six in Yichuan in 2024 to offer them financial support each year aiming to help them complete their studies. This has sowed the seeds of hope

prestigious universities: Harbin Institute of Technology Southeast University Huazhong University of Science and Technology China for the future of children in the old revolutionary base while supporting the national rural revitalization and education cause.University of Mining and Technology Nanjing University of Science and Technology and Hefei University of Technology. Since the

inception hundreds of thousands of RMB have been invested annually to provide financial support to nearly a hundred promising

students as encouragement.Key universities establishing “Wang Yanqing Scholarship”

Harbin Institute Southeast Huazhong Nanjing China University of Hefei

of Technology University University of University of Mining and University of

Science and Science and Technology Technology

Technology Technology

Donation Certificate Letters from Sponsored Children

Love Fund

In order to provide necessary assistance to employees in need to encourage them to

overcome challenges and to bring warmth and care from the Company and their colleagues

LEAD has established the Love Fund since 2018. The Fund aims to help employees who

experience financial difficulties due to personal or immediate family’ s disabilities illnesses

deaths or other unexpected accidents. The fund is from the monthly donations from the

Company and employees: Employees can make a certain amount of voluntary donations per

month depending on their willingness and sign the donation letter and the donation is

transferred from their salary to the Fund account every month. The Company on the other

hand donates 50000 RMB to the Fund annually. During the reporting period the long-term

Love Fund assistance mechanism has provided special consolation money to over 20

employees who suffered from serious illnesses or unexpected difficulties effectively

addressing their concerns.

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Community Activity Community Culture Activity

In addition to welfare donations LEAD also engages in community voluntary services as In the collaboration between the Jiacheng community and LEAD the two sides have engaged in negotiations based on the principles ofgratitude. The Company has established the LEAD Volunteer Service Association to encourage "equality and mutual benefit complementary advantages resource sharing serving the people and common development” to strengthen

employees to actively participate in volunteer activities. The association has established an coordination. We have built a party building alliance hand in hand and established a corporate volunteer service team. Through corporate

employee welfare spirit profile database through forms such as questionnaires and plans volunteer services in the community we have promoted the linkage between the enterprise and the society as well as residents ensuring

volunteer programs based on the employees' willingness. It has also implemented a welfare the satisfaction of residents' demands. Moreover we have cooperated in the field of community welfare by organizing our corporate

cause points system that converts volunteer service hours into points. Based on the amount of volunteers to participate in community holiday activities such as the Lantern Festival cultural event.points we select the LEAD Volunteer Star and provide gifts to commend and encourage

employees who actively participate in volunteer activities thereby inspiring more employees to

engage in philanthropic endeavors.Caring for the Elderly Living Alone

Under the call and organization of the Xinwu Safety and Green Development Promotion

Association LEAD as a caring enterprise actively participated in the "Caring for the

Elderly Living Alone" campaign. In 2024 we visited multiple homes of elderly people who

live alone or who have lost their only child performing gas inspections electrical facilities

inspections and maintenance and cleaning.We also brought rice oil and other groceries to

ensure a safe living environment for them and expressed our care. In the same year the

Company was awarded the "Most Caring Enterprise" by the Association which was a high Giving for Good Welfare Program

recognition of its social responsibility practices from an industry organization.In 2024 LEAD together with Tencent Charity organized the "Little Red Flower Collection" fundraising event attracting dozens of LEAD

volunteers and their children. In this event all the funds were raised through donation instead of purchase and were donated to the Wuxi

Charity Federation's "Wuxi One-Day Charity" project and the Shanghai Rende Foundation's "Making Acoustic Children Live Better" project

to provide assistance to students patients the underprivileged the disabled and other people in need. During the event the Company also

organized a series of book and clothing donation activities internally enabling the corporate welfare culture deeply ingrained in people.

94 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 95About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Environment Protection Activity Public Welfare Culture

LEAD has been carrying out long-term environmental protection activities practicing the concept of green development and contributing to LEAD always adheres to the concept of taking from the society andthe building of a "Beautiful China” with its practical actions. In recent years the Company has continuously organized volunteer activities giving back to the society and integrates public welfare culture into the

such as garbage collection and mountain cleaning attracting nearly a thousand participants. These activities have effectively enhanced the blood of the enterprise. In addition to charitable donations and

environmental awareness of the employees and contributed to the improvement of the community environment. In 2024 the Company has community activities the Company also conveys warmth through

further deepened its social responsibility practices by innovatively integrating environmental protection themed activities into the initiatives such as agricultural assistance and support. For example

onboarding training for new employees and incorporating the ESG concept into the new employee development system. In the community when selecting holiday gifts for employees we direct our attention

park new employees picked up litter cleaned the clogged sewage drains and searched for plastic bottles cigarette butts and other waste towards groups in need of care. For instance we chose gift packaging

on the grassy paths experiencing firsthand the importance of ecological conservation. LEAD will continue to explore more innovative ways boxes made of artwork created by children on the spectrum

to drive the deep integration of environmental protection with employee growth and community development and create long-term value combining holiday blessings with charitable acts. Our company also

for society. purchased agricultural products from the poverty-stricken areas in

Qinghai Province such as goji berries to contribute to rural

revitalization.

96 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 97About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

APPENDIX

98 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 99About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Appendix

Key Performance Table Social Performance

The scope of social statistics is consistent with the scope of the consolidated financial statement.Environmental Performance Index Type Index Y2024 Unit

Total 15025 persons

The scope of environmental statistics includes the main production bases and warehouses located in Wuxi and Zhuhai and excludes

Male 12825

outsourced canteens. Companies involved include Wuxi LEAD Intelligent Equipment Co. Ltd. Jiangsu Lead Technology Co. Ltd. Jiangsu personsGender

Lead Hydrogen Intelligent Equipment Co. Ltd. Wuxi Lead Laser Precision Technology Co. Ltd. Zhuhai Titans New Power Electronics Co. Female 2200 persons

Ltd. and Guangdong Lead Intelligent Technology Co. Ltd. 30 years old and under 6861 persons

Employee diversity Age 31~50 years old 8054 persons

Index Type Index Y2024 Unit Above 50 years old 110 persons

Purchased electricity (indirect energy) 60227.32 MWh Master degree and above 993 persons

Natural gas 105948 m3 Undergraduate degree 6225 persons

Gas (direct energy) Education level

Resource Liquefied petroleum gas 17374.50 kg College degree 3182 persons

consumption

Gasoline 179638.64 L Below college degree 4625 persons

Fuel (direct energy)

Diesel fuel 100180.79 L Average training hours per capita 43 hours

Water Municipal water supply consumption 333794 t Average training expenditure per capita 517 RMB

Waste emulsion 52.82 t Number of company-level training sessions 1819 sessions

Waste oil 12.60 t Employee training Percentage of employees participation in training 100 %

Oil-containing waste 0.91 t Hours of employees training on employee benefits policies or procedures 10176 hours

Dangerous waste

(by composition) Waste organic solvent 0.37 t Percentage of employees receiving training on employee benefits policies or procedures 100 %

Waste package and container 0.15 t Percentage of employees undergoing regular performance and career development assessments 100 %

Activated carbon 0.87 t Total number of employees Male 1266 persons

Waste Employee rightsWaste solvent 0.26 t on parental leaveand benefits Female 211 persons

Dangerous waste Burning (without energy recovery) 1.65 t Discrimination and harassment incidents 0 incidents

(by recycling/disposal method) Other disposal methods 66.33 t Lost Time Injury Frequency Rate (LTIFR)1 0.84 -

Scrap steel 910.38 t Coverage of occupational health examination for employees 100 %

Scrap wire 41.44 t Average hours of health and safety training per production worker 24 hours

General waste

(by composition) Scrap plastic 18.74 t Occupational health Coverage of health and safety training for production workers 100 %

Scrap non-ferrous metals 65.53

and safety

t Number of safety training sessions for on-site construction contractors 10922 sessions

Scrap paper 26.00 t Coverage of safety training sessions for on-site construction contractors 100 %

General waste

(by recycling/disposal method) Other recycling methods 1062.08 t Number of emergency drills

2 69 drills

NOx 0 kg Employee coverage of emergency drills 100 %

SOx 0 kg Total 198 suppliers

Exhaust gas1 Major gas emissions

PM 28.20 kg Number of core suppliers3 China 112 suppliers

Supply chains

VOC 100.39 kg Overseas 86 suppliers

Total GHG emissions 4043185.54 tCO2e Proportion of new suppliers screened on environmental/social dimensions 100 %

Scope 1 total GHG emissions 1902.61 tCO2e Number of fines penalties and warnings due to violation of product service information and identification regulations 0 incidents

GHG Responsible marketing

Scope 2 total GHG emissions 32317.98 tCO2e Number of fines penalties and warnings due to violation of relevant marketing laws and regulations 0 incidents

Scope 3 total GHG emissions 4008964.95 tCO2e Customer service Complaint resolution rate 100 %

1. Range of nitrogen oxides sulfides and PM: Canteen in No. 18 Xinzhou Road Wuxi City Jiangsu Province China; Range of VOC: emissions from machining workshop. 1. Index calculation formula: LTIFR = (Number of lost time injuries/Total working hours) x 106;

2. Including fire protection safety environmental protection and occupational health emergency drills;

3. Including productive and indirect material suppliers.

100 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 101About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Corporate Governance and Economic Performance

The scope of corporate governance and economic performance statistics is consistent with the scope of the consolidated UNGC Ten Principles lndex

financial statement.Index Type Index Y2024 Unit Category Principle Corresponding Chapter

Total assets 36182558952.99 RMB Principle 1

Businesses should support and respect the protection of internationally proclaimed human rights.Operating revenue 11855098145.55 RMB Human Rights Labor and Human Rights

Economic

performance Net profit attributable to shareholders of the listed company

Principle 2

286100791.80 RMB Businesses should make sure that they are not complicit in human rights abuses.

Net cash flow from operating activities -1567132795.63 RMB

Principle 3

Basic earnings per share 0.1840 RMB/share Businesses should uphold the freedom of association and the effective recognition of the right to

the collective bargaining.Total 2830 items

Invention patent Principle 4446 items

Authorized patent Labor Businesses should uphold the elimination of all forms of forced and compulsory labor. Labor and Human Rights

Utility model authorization 2304 items

Principle 5

Intellectual Appearance design authorization 80 items Businesses should uphold the effective abolition of child labor.property

Total 527 items Principle 6

Invention patent Businesses should uphold the elimination of discrimination in respect of employment and occupation.205 items

Annual new authorized patents

Utility model authorization 314 items Principle 7

Businesses should support a precautionary approach to environmental challenges.Appearance design authorization 8 items Responses to climate change

Serious and major cybersecurity incidents1 Environment Principle 80 incidents Products and ServicesBusinesses should undertake initiatives to promote greater environmental responsibility.Environment and Energy

Information Customers and other stakeholders affected by information security issues 0

customers/

stakeholders Principle 9

security Confirmed incidents of disclosure theft or loss of customer data 0 incidents Businesses should encourage the development and diffusion of environmentally friendly technologies.Substantiated complaints convening breaches of customer privacy and losses of customer data 0 complaints Principle 10

Anti-corruption Corporate Governance

Litigation cases involving anti-competitive antitrust and monopolistic practices Businesses should work against corruption in all its forms including extortion and bribery. Sustainable Supply Chains0 pieces

Percentage of corporate anti-corruption policies and procedures submitted to the board of directors 100

Anti-competition %

anti-corruption and Percentage of staff who have received anti-corruption training and publicity 100 %

anti-monopoly

Total number of directors supervisors and senior executives who have received anti-corruption training 14 persons

Percentage of directors supervisors and senior executives who have received anti-corruption training 100 %

Penalty amount from product violations 0 RMB

Penalty amount from violating environmental laws and regulations 0 RMB

Penalty

situation Penalty amount from violating laws and regulations in the social and economic fields 0 RMB

Number of non-economic penalties 0 pieces

Number of incidents of non-compliance concerning the health and safety impacts of products and services 0 pieces

1. Refers to a four-hour and more downtime of corporate core and important systems or general systems.

102 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 103About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

GRI Content Index

LEAD has reported the information cited in this GRI content index for the period from January 1 to December 31 2024

Statement of Use Economic Performancewith reference to the GRI Standards.

201-1 Direct economic value generated and distributed Corporate Governance Employee development

Gri 1 Used Employee benefits Key performance tableGRI 1: Foundation 2021 201-2 Financial implications and other risks and opportunities due to

GRI 201: Economic climate change Responses to climate change

GRI Standard Disclosure Location Performance 2016 201-3 Defined benefit plan obligations and other retirement plans Employee benefits

General Disclosures 201-4 Financial assistance received from government Please refer to the annual report.

2-1 Organizational details Introduction

2-2 Entities included in the organization's sustainability reporting Reporting entity Indirect Economic Impacts

2-3 Reporting period frequency and contact point Reporting period Contact us GRI 203: Indirect 203-1 Infrastructure investments and services supported Community Responsibility

Economic Impacts 2016

2-6 Activities value chain and other business relationships About LEAD Products and Services Sustainable Supply Chains 203-2 Significant indirect economic impacts Community Responsibility

2-7 Employees Labor and Human Rights

2-9 Governance structure and composition Organizational structure Anti-corruption

2-10 Nomination and selection of the highest governance body Organizational structure 205-1 Operations assessed for risks related to corruption Business ethics

GRI 205: 205-2 Communication and training about anti-corruption policies

2-11 Chair of the highest governance body Organizational structure Anti-corruption 2016 and procedures Business ethics

2-12 Role of the highest governance body in overseeing the Organizational structure 205-3 Confirmed incidents of corruption and actions taken Business ethics Key performance tablemanagement of impacts

2-13 Delegation of responsibility for managing impacts Organizational structure

Anti-competitive Behavior

2-14 Role of the highest governance body in sustainability reporting Sustainability Management System

2-15 Conflicts of interest Corporate Governance GRI 206: Anti-competitive 206-1 Legal actions for anti-competitive behavior anti-trust and

GRI 2: General (For more details please refer to the annual report.) Behavior 2016 Business ethics Key performance tablemonopoly practices

Disclosures 2021 2-16 Communication of critical concerns Sustainability Management System

2-17 Collective knowledge of the highest governance body Sustainability Management System

Energy

2-18 Evaluation of the performance of the highest governance body Sustainability Management System

302-1 Energy consumption within the organization Responses to climate change Key performance table

2-20 Process to determine remuneration Organizational structure(For more details please refer to the annual report.)

302-2 Energy consumption outside of the organization Responses to climate change Key performance table

2-22 Statement on sustainable development strategy Sustainable development strategy

GRI 302: Energy 2016 303-3 Energy intensity Responses to climate change

2-23 Policy commitments Business ethics Protection of employee rights and interests

303-4 Reduction of energy consumption Green production Green operation

2-24 Embedding policy commitments Business ethics

303-5 Reductions in energy requirements of products and services Environment-friendly products

2-25 Processes to remediate negative impacts Business ethics

2-26 Mechanism for seeking advice and raising concerns Business ethics

Water and Effluents

2-27 Compliance with laws and regulations Each chapter of the report

303-1 Interactions with water as a shared resource Green production

2-28 Membership associations Industry participation Sustainable development strategy

GRI 303: Water and

Effluents 2018 303-2 Management of water discharge-related impacts Green production2-29 Approach to stakeholder engagement Stakeholder engagement

303-3 Water withdrawal Key performance table

2-30 Collective bargaining agreements Protection of employee rights and interests

Material Topics Biodiversity

3-1 Process to determine material topics Materiality Assessment 304-1 Operational sites owned leased managed in or adjacent to

protected areas and areas of high biodiversity value outside Green operation

GRI 3: Material 3-2 List of material topics Materiality Assessment GRI 304: Biodiversity 2016 protected areastopics 2021

3-3 Management of material topics Materiality Assessment each chapter of the report 304-2 Significant impacts of activities products and services on biodiversity Green operation

104 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 105About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Emissions Diversity and Equal Opportunity

305-1 Direct (Scope 1) GHG emissions Responses to climate change Key performance table GRI 405: Diversity and Organizational structure

Responses to climate change Equal Opportunity 2016 405-1 Diversity of governance bodies and employees Employee diversity

305-2 Energy indirect (Scope 2) GHG emissions Key performance table

305-3 Other indirect (Scope 3) GHG emissions Responses to climate change

GRI 305: Emissions 2016 Key performance table

305-4 GHG emissions intensity Responses to climate change Non-discriminationKey performance table

305-6 Emission of ozone-depleting substances (ODS) Green production GRI 406: Protection of employee rights

Non-discrimination 2016 406-1 Incidents of discrimination and corrective actions taken and interests

305-7 Nitrogen oxides (NOX) sulfur oxides (SOX) and other significant air emissions Green production Key performance table

Waste

Freedom of Association and Collective Bargaining

306-1 Waste generation and significant waste-related impacts Green production

GRI 407: Freedom of 407-1 Operations and suppliers in which the right to freedom of Responsible procurement management

306-2 Management of significant waste-related impacts Green production Association and Collective association and collective bargaining may be at risk Protection of employee rights and interests

GRI 306: Waste 2020 Bargaining 2016

306-3 Waste generated Key performance table

306-5 Waste diverted for disposal Key performance table

Child Labor

Supplier Environmental Assessment

408-1 Operations and suppliers at significant risk for

GRI 408: Child Labor 2016 Responsible procurement management

GRI 308: Supplier incidents of child labor Protection of employee rights and interests

Environmental 308-1 New supplier that were screened using environmental criteria Key performance table

Assessment 2016

Employment Forced or Compulsory Labor

401-2 Benefits provided to full-time employees that are not provided to

GRI 401: temporary or part-time employees Employee benefits GRI 409: Forced or 409-1 Operations and suppliers at significant risk for incidents of Responsible procurement management

Employment 2016 Compulsory Labor 2016 forced or compulsory labor Protection of employee rights and interests

401-3 Parental leave Employee benefits

Occupational Health and Safety

Local Communities

403-1 Occupational health and safety management system Occupational Health and Safety

413-1 Operations with local community engagement impact assessments

and development programs Community Responsibility

403-2 Hazard identification risk assessment and incident investigation Occupational Health and Safety GRI 413: LocalCommunities 2016 413-2 Operations with significant actual and potential negative impacts Environment and Energy

403-3 Occupational health services Occupational Health and Safety on local communities Community Responsibility

403-4 Worker participation consultation and communication on occupational

health and safety Occupational Health and Safety

GRI 403: Customer Health and Safety

Occupational 403-5 Working training on occupational health and safety Occupational Health and Safety 416-1 Assessment of the health and safety impacts of product and

Health and GRI 416: Customer service categories Product quality management

Safety 2018 403-6 Promotion of worker health Occupational Health and Safety Health and Safety 2016 416-2 Incidents of non-compliance concerning the health and safety

403-7 Prevention and mitigation of occupational health and safety impacts impacts of products and services

Key performance table

directly linked by business relationships Occupational Health and Safety

403-8 Workers covered by an occupational health and safety management system Occupational Health and Safety

Marketing and Labeling

403-9 Work-related injury Occupational Health and Safety 417-2 Incidents of non-compliance concerning product and service

GRI 417: Marketing and information and labeling Key performance table

403-10 Work-related ill health Occupational Health and Safety Labeling 2016

417-3 Incidents of non-compliance concerning marketing Key performance table

Training and Education

404-1 Average hours of training per year per employee Key performance table Customers Privacy

GRI 404: Training and

Education 2016 404-2 Programs for upgrading employee skills and transition assistance programs Employee development GRI 418: Customer 418-1 Substantiated complaints convening breaches of customer privacy Key performance table

404-3 Percentage of employees receiving regular performance and career

development reviews Key performance table

Privacy 2016 and losses of customer data

106 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 107About LEAD Sustainability Management System Special: Responses to Climate Change Corporate Governance Products and Services Sustainable Supply Chains Labor and Human Rights Environment and Energy Community Responsibility Appendix

Third-party Verification and Authentication Information

Independent Verification Statement Independent Verification Statement

Verification Statement：EIV2 102675 0091 Rev. 00 Verification Statement：EIV2 102675 0091 Rev. 00

To the management and stakeholders of LEAD This verification process was conducted by TüV SüD's expert team with extensive experience in the economic

environmental social and other relevant areas and drew the conclusions thereof. The verification conforms to the

TüV SüD Certification and Testing (China) Co. Ltd. (hereinafter referred to as "TüV SüD") has been engaged by Wuxi

following standards:

Lead Intelligent Equipment Co. Ltd. (hereinafter referred to as "LEAD" or "the Company") to perform an independent

? AA1000AS v3 Type 2 Engagement and Moderate level Assurance

third-party verification on 2024 Environmental Social and Governance (ESG) Report (hereinafter referred to as "the

? International Standard on Assurance Engagements (ISAE) 3000 Assurance Engagements Other than Audits or

Report"). During this verification TüV SüD's verification team strictly abided by the contract signed with LEAD and Reviews of Historical Financial Information Limited Assurance

? Sustainability report verification programme operation rule (CCB_EIV_GR_002E Rev02)

provided verification regarding the Report in accordance with the provisions agreed by both parties and within the

authorized scope stipulated in the contract. In order to perform adequate verification in accordance with the contract and provide reasonable verification for the

conclusions the verification team conducted the following activities:

This Independent Verification Statement is based on the data and information collected by LEAD and provided to TüV

? Preliminary investigation of the relevant information before the verification;

SüD. The scope of verification is limited to the given information. LEAD shall be held accountable for authenticity and

? Confirmation of the presence of the topics with high level of materiality and performance in the Report;

completeness of the provided data and information (contains assumptions projections and/or historical facts).? On-site review of all supporting documents data and other information provided by LEAD; tracing and

Scope of Verification verification of key performance information;

? Special interview with the representative of LEAD's management; interviews with the employees related to

Time frame of this verification:

collection compilation and reporting of the disclosed information; and ? The Report contains the data disclosed by LEAD during the reporting period from January 1st 2024 to December

st ? Other procedures deemed necessary by the verification team. 31 2024 including governance environmental and social information and data methods for management of

material issues actions/measures and the Company's sustainability performance during the reporting period.Physical boundary of this verification: Verification Conclusions

? The on-site verification sampling took place at below listed location: According to the verification we believe that the data and information presented in LEAD's report are objective factual

18 Xinzhou Rd. Xinwu District Wuxi Jiangsu Province China and reliable without systematic problems.

Scope of data and information for the verification: The verification team has drawn the following conclusions on this Report:

? The scope of verification is limited to the data and information of LEAD and all companies under its operational

control covered by the Report. LEAD has identified the internal and external stakeholders such as shareholders customers

The following information and data are beyond the scope of this verification: Inclusivity suppliers and partners employees government authorities etc. and established a

? Any information and contents beyond the reporting period of this Report; and stakeholder communication mechanism to collect the demands of stakeholders.? The data and information of LEAD's suppliers partners and other third parties; and LEAD has established the prioritization process of material topics determination identified and

? The financial data and information disclosed in this Report that have been audited by an independent third party assessed the priority of the sustainability topics which are highly related to the industry the

are not verified again herein. Materiality Company disclosed the governance structure management approach as well as sustainability

Limitations performance in corporate operation therefore the Report's adherence to materiality principle

? The verification process is conducted in the above scope and places. Sampling and verification are adopted for is guaranteed.the data and information in the Report by TüV SüD and only the stakeholders within the Company are LEAD has disclosed the management approach and performance of high material topics that

interviewed; and stakeholders concern such as product quality and safety occupational health and safety

? The Company's standpoint opinions forward-looking statements and predictive information as well as the Responsiveness intellectual property protection business ethics and compliance employee rights and

historical data and information before January 1st 2024 are beyond the scope of this verification. welfare etc. and has established a communication mechanism to fully respond to the

demands and expectations of stakeholders.? TüV SüD's verification conclusions are based on the analysis of the data and information collected by TüV SüD LEAD has established a ESG Management Committee to enhance the Company's efforts in

and may not identify all problems and conditions nor constitute a guarantee of the credibility or status of the the areas of environmental social responsibility and corporate governance. Through the

Impact

subject of verification. process of identifying and assessing material topics the Company disclosed the impact of

identified material topics on sustainable development.Basis for the Verification

Recommendations on Continuous Improvement

Page 1 of 3 Page 2 of 3

TüV SüD Certification and Testing Tel: +86 21-61410123 TüV SüD Certification and Testing Tel: +86 21-61410123

(China) Co. Ltd. Fax: +86 21-61408600 (China) Co. Ltd. Fax: +86 21-61408600

No.151 Heng Tong Road Web: www.tuvsud.com No.151 Heng Tong Road Web: www.tuvsud.com

Shanghai 200070 Shanghai 200070

108 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 109

ID: CCB_EIV_F_10.03E Version: 2 Effective Date: 08 Feb 2025 Page 2 of 3

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Independent Verification Statement

Verification Statement：EIV2 102675 0091 Rev. 00

* It is recommended that the Company supplements relevant qualitative and quantitative targets based on the

existing sustainable development strategy.Statement on Independence and Verification Capability

TüV SüD is a trusted partner of choice for safety security and sustainability solutions. It specializes in testing

certification auditing and advisory services. Since 1866 the company has remained committed to its purpose of enabling

progress by protecting people the environment and assets from technology-related risks. Today TüV SüD is present in

over 1000 locations worldwide with its headquarters in Munich Germany. Through expert teams represented by more

than 26000 employees it adds value to customers and partners by enabling market access and managing risks. By

anticipating technological developments and facilitating change TüV SüD inspires trust in a physical and digital world to

create a safer and more sustainable future.TüV SüD Certification and Testing (China) Co. Ltd. is one of TüV SüD's global branches and has an expert team whose

members have professional background and rich industrial experiences.TüV SüD and LEAD are two entities independent of each other and both TüV SüD and LEAD and their branches or

stakeholders have no conflict of interest. No member of the verification team has business relationship with the

Company. The verification is completely neutral. All the data and information in the Report are provided by LEAD. TüV

SüD has not been involved in preparation and drafting of the Report except for the verification itself and issuance of the

verification statement.Signature:

On Behalf of TüV SüD Certification and Testing (China) Co. Ltd.Zhu Wenjun

TüV SüD Sustainability Authorized Signatory Officer

April 09th 2025

Shanghai China

Note: In case of any inconsistency or discrepancy the simplified Chinese version "Independent Verification Statement CN" of this

verification statement shall prevail while the English translation is used for reference only.Page 3 of 3

TüV SüD Certification and Testing Tel: +86 21-61410123

(China) Co. Ltd. Fax: +86 21-61408600

No.151 Heng Tong Road Web: www.tuvsud.com

Shanghai 200070

110 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 111

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Suggestions and Feedbacks

Dear readers:

Hello!

Thank you very much for reading this report in your busy schedule. In order to provide you and other stakeholders with more

valuable ESG information and further improve the quality of our ESG reports we sincerely invite you to fill out the relevant

questions in the feedback form. You can give us feedback in the following ways. Thank you for your strong support for our ESG

work!

Phone: 0510-81163600

Fax: 0510-81163648

Email: ESG@leadintelligent.com

Address: No.18 Xinzhou Road National High-tech Industrial Development Zone Wuxi City Jiangsu Province

Contact: ESG Office of Wuxi Lead Intelligent Equipment Co. Ltd.

1. Which of the following stakeholders do you belong to

囗 Government officials 囗 Regulatory authorities 囗 Shareholders and investors 囗 Employees

囗 Customers 囗 Suppliers and partners 囗 Community residents 囗 Peer enterprises

囗 Others

2. What is your overall evaluation of this report

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3. What do you think of the quality of ESG information disclosed in this report

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5. What aspects of the report do you think need improvement

囗 Layout design 囗 Report length 囗 Topic coverage 囗 Release form/media

6. You are welcome to provide your comments and suggestions on LEAD's ESG work and the report:

112 Wuxi Lead Intelligent Equipment Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 113Wuxi Lead Intelligent Equipment Co. Ltd.

2024 Environmental

Social and Governance

(ESG) Report

Wuxi Lead Intelligent Equipment Co. Ltd.Address: No.18 Xinzhou Road National High-tech Industrial Development Zone

Wuxi City Jiangsu Province

Phone: 0510-81163600

Email: ESG@leadintelligent.com