Promoting Global Green Energy Transformation Through Intelligent Manufacturing Introduction 01 Appendices 114 ESG Key Performance Table 114 Report Preparation Notes 01 Reference Index Table 127 Chairman Message 03 Third-Party Assurance Report 140 About Lead Intelligent 04 Governance Environment Corporate Governance 33 Responses to Climate Change 67 Investor Relations Management 36 Environmental Compliance 79 Risk and Compliance Management 37 Management Business Ethics 41 Green Production and Operations 82 Information Security and Privacy 43 Protection Sustainability 11 Management Sustainability Governance 1 1 Sustainability Strategy and 14 Goals Stakeholder Engagement 18 Value Chain Social Double Materiality Assessment 19 Product R&D and Innovation 47 Protection of Employee Rights and 91 Intellectual Property Protection 51 Interests Digital Intelligence-driven 52 Talent Cultivation and Development 94 Strengthening Quality Control 53 Employee Care and Communication 100 Customer Relationship Management 58 Occupational Health and Safety 103 Sustainable Supply Chain 61 Contribution to Community 109 Management Development2025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Report Preparation Notes Report Profile Basis of Preparation This Report is the sixth Social Responsibility or Environmental Social and Governance (hereinafter This Report has been prepared in accordance with the Self-regulatory Guidelines No. 17 for Companies referred to as ‘ESG’) Report published by Wuxi Lead Intelligent Equipment Co. Ltd. (hereinafter Listed on Shenzhen Stock Exchange – Sustainability Report (for Trial Implementation) (hereinafter referred referred to as ‘Lead Intelligent’ ‘the Company’ or ‘we’) reflecting the practices and achievements to as the ‘SZSE Guidelines’) the Self-regulatory Guideline No. 3 for Companies Listed on the ChiNext of the Company and its affiliates in ESG. This Report was reviewed and approved at the 20th Market of Shenzhen Stock Exchange– Preparation of Sustainability Reports (Revised in 2026) and Appendix meeting of the 5th Board of Directors on April 28 2026. C2 Environmental Social and Governance Reporting Code of the Main Board Listing Rules of the Stock Exchange of Hong Kong Limited (hereinafter referred to as the ‘HKEX ESG Code’). This Report also references authoritative standards and guidelines including the Corporate Sustainability Disclosure Standards – Basic Standard (for Trial Implementation) and Corporate Sustainability Disclosure Standard No.Reporting Period 1 – Climate (for Trial Implementation) issued by the Ministry of Finance of the P.R.C. the GRI Sustainability Reporting Standards (GRI Standards) of the Global Sustainability Standards Board (GSSB) the United This is an annual report covering the period from January 1 2025 to December 31 2025 Nations Sustainable Development Goals (SDGs) the ‘Ten Principles’ of the United Nations Global (hereinafter referred to as the ‘Reporting Period’); to ensure the continuity completeness and Compact (UNGC) and the IFRS S1 General Requirements for Disclosure of Sustainability-related Financial comparability of the report some content extends beyond this period and is explained herein. Information and IFRS S2 Climate-related Disclosures issued by the International Sustainability Standards Board (ISSB).Organizational Scope This Report covers Lead Intelligent and its controlled subsidiaries and branches consistent with the scope of the consolidated financial statements of Lead Intelligent. 012025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Reporting Principles Report Language Materiality: In preparing this Report we have comprehensively identified key stakeholders This Report is published in Simplified Chinese Traditional Chinese and English. In case of and the sustainability issues they are concerned about and made targeted disclosures on any discrepancy the Simplified Chinese version shall prevail.sustainability matters based on the relative importance of these issues. For details on the results of the double materiality assessment please refer to the ‘Stakeholder Engagement’ and ‘Double Materiality Assessment’ sections later in this Report.Quantitative: This Report uses quantitative data to present key performance indicators at the ESG level and details the Company’s quantifiable performance data for three consecutive years in the ‘ESG Key Performance Table’. The measurement standards methods assumptions Publication Format and/or calculation tools for the key performance indicators in this Report as well as the sources of conversion factors used have been stated in the corresponding sections. This Report is published in electronic format. To obtain a copy you can download the electronic Balance: The content of this Report reflects objective facts ensuring that both positive and version from the official website of Lead Intelligent (www.leadintelligent.com) the designated negative information concerning the Company during the Reporting Period is disclosed information disclosure website of the China Securities Regulatory Commission – www.cninfo.com.impartially. cn the website of the Shenzhen Stock Exchange (www.szse.cn) or the HKEXnews website of The Consistency: The preparation of this Report maintains consistency with the content of previous Stock Exchange of Hong Kong Limited (www.hkexnews.hk).years' reports. If any information has been changed explanations have been provided in the corresponding sections.Feedback Assurance of Reliability Thank you for reading this Report. Should you have any suggestions or questions regarding The Company guarantees that the content of this Report is free from any false records or this Report or the sustainable development work of Lead Intelligent please contact us via the misleading statements. The financial data herein is sourced from the Company’s audited financial following channels.reports. In case of any discrepancy between the financial data in this Report and the annual Address: NO.18 Xinzhou Road National High-tech Industrial Development Zone Wuxi Jiangsu report the annual report shall prevail. Other data is sourced from information provided by the Province relevant departments of the Company. Unless otherwise specified all currencies and monetary Telephone: 0510-81163600 amounts mentioned in this Report are denominated in Renminbi (RMB). Email: ESG@leadintelligent.com 022025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Chairman Message The year of 2025 marks both the concluding year of China’s 14th Five- and consolidated our technological leadership in the industry.Year Plan and a critical juncture in the accelerated restructuring of the global energy system. The deep integration of green low-carbon Pursue low-carbon operations for a circular and shared future.transition and intelligent manufacturing is becoming the core engine In 2025 the Company continued to deepen its green development driving high-quality development. Amidst a new wave of technological practices promoting low-carbon transition and energy efficiency iteration and global industrial restructuring Lead Intelligent has improvements. The Wuxi No. 2 Factory of Lead Intelligent was consistently adhered to its vision of ‘To be a world leading intelligent awarded the ISO 14068 Carbon Neutral Factory certification. As the first equipment manufacturer’. We have deepened our global presence demonstration enterprise in the industry it fully exemplifies excellence seized the technological high ground with forward-looking research in clean production and smart energy management. The Company and development empowered customer value creation with intelligent released its first White Paper on Climate Action leading the industry's manufacturing and consolidated our long-term competitiveness low-carbon transition with systematic solutions. We have advanced the with the philosophy of sustainable development thereby building a development of distributed photovoltaic projects and increased the more resilient and responsible development system in an uncertain consumption of renewable energy supporting the carbon peaking and environment. carbon neutrality goals with practical actions and demonstrating our green commitment and long-term vision.Compliance ensures steady and long-term success. In 2025 with governance as a priority and compliance as a strategic cornerstone Care for growth strive for good. In 2025 we further embedded talent the Company continued to enhance its full-chain management system development safety baselines and social responsibility into the core and information disclosure mechanism earning the highest A-level blueprint of the Company's long-term value creation. The cumulative rating for information disclosure from the Shenzhen Stock Exchange learning time for our employees throughout the year was approximately for the seventh consecutive year and gaining high recognition from 570000 hours comprehensively empowering employee career growth the capital market. The Company was selected as one of the ‘Forbes and talent pipeline building. Upholding the responsibility philosophy China Top 50 Most Innovative Companies 2025’ standing as the only of ‘Intelligent Manufacturing for Good’ the Company established the selected enterprise in the new energy intelligent equipment sector RMB 30 million ‘Warm Light Public Welfare Fund’ to provide long-term demonstrating its comprehensive strength underpinned by technology- investment in projects such as inclusive education rural revitalization driven development and governance synergy. The Company has and community development transforming social responsibility into continued to deepen its sustainable development strategy and ESG sustainable value and fully embodying our people-centric care and governance. It has been successfully selected into the S&P Global commitment.Sustainability Yearbook (China Edition) 2025 and awarded the “Industry Start from the near strive without fear.Looking ahead the globalMover” providing solid support for the Company’s steady growth and energy transition will never cease and we will keep pushing beyond our long-term value creation. limits. We are steadfast in implementing our sustainable development Technological breakthroughs drive intelligent manufacturing strategy of ‘promoting global green energy transformation through upgrades. In 2025 the Company focused on building a future-oriented intelligent manufacturing’ enhancing core competitiveness through innovation system and establishing a comprehensive innovation hub technological innovation and solidifying our development foundation that integrates cutting-edge R&D key process breakthroughs and with high-standard ESG governance. Together with upstream and industrialisation of achievements so as to comprehensively enhance its downstream partners we will play our part to build a greener lower- original innovation capabilities across the board. We targeted the core carbon and sustainable future.pain points of the industry and accelerated the large-scale application of Wuxi Lead Intelligent Equipment Co. Ltd.next-generation technologies such as solid-state batteries. Supported by Chairman high-efficiency high-precision core equipment we helped drive the global Wang Yanqing energy transition continued to inject strong technological momentum 032025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices About Lead Intelligent Company Profile Wuxi Lead Intelligent Equipment Co. Ltd. (Lead Intelligent) was founded in 2002 listed on the ChiNext Board of the Shenzhen Stock Exchange in 2015 (stock code 300450.SZ) and listed on the Hong Kong Stock Exchange in 2026 (stock code 0470.HK). Its business covers intelligent equipment for Li-ion battery intelligent equipment for solid-state battery intelligent photovoltaic equipment intelligent 3C equipment intelligent logistics automobile production line and intelligent hydrogen equipment making it a world-leading new energy intelligent equipment manufacturer. By the end of the Reporting Period the Company has 15173 employees including 4072 R&D engineers. Lead Intelligent is committed to providing customers with one-stop turnkey solutions from consultation design manufacturing installation commissioning training and subsequent upgrades and continuously improving the customer experience.As of the end of the Reporting Period 151734072 Employees R&D engineers 042025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Development History 2026 Listed on the Hong Kong Stock Exchange (stock code 2025 0470.HK) marking the Establishment of the RMB 30 launch of its A+H dual-listing million ‘Warm Light Public capital market platform2024 Welfare Fund’ shifting Awarded the titles of public welfare activities ‘2024 Top 500 Private 2019 from targeted assistance to Manufacturing Enterprises systematic empowerment Included in MSCI index and in China’ and ‘Fortune China 2011 becoming representative Top 50 Tech’ Delivered solid-state battery Converted to a joint-stock of high-end equipment whole-line equipment and company: Wuxi Lead Launched solid-state battery enterprises on ChiNext dry electrode equipment in Automation Equipment Co. turnkey solution 2002 batches to top-tier industry Ltd. by Shares Announced carbon customers Establishment of Wuxi Lead neutrality goals: carbon Automation Equipment Co. 2022 2015 peaking in its core Ltd. operations by the end of Listed on the ChiNext of Acquisition of ONTEC in 2030 and carbon neutrality Shenzhen Stock Exchange with Germany and establishment by the end of 2035 stock code 300450 of the Center of Competence 2008 in Europe accelerating the Renamed Wuxi Lead Entered Li-ion battery globalization process Intelligent Equipment Co. Ltd.equipment industry 2017 Wholly-owned acquisition of Titans New Power integrating 2009 upstream and downstream Entered photovoltaic industries to become whole- equipment industry line Li-ion battery equipment manufacturer 052025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Business Layout Key Products and Solutions Focusing on ‘New Energy + High-end Equipment’ Lead Intelligent is committed to providing customers with turnkey intelligent manufacturing solutions.Lithium-ion Battery Intelligent Equipment Front-end Process Middle-end Process Back-end Process Solid-state Batteries Mixing Coating Rolling Flaking Winding Stacking Equipment Equipment Equipment Equipment Equipment Equipment Chemical Inspection Dry Electrodes Solid-state Copper-Lithium Stacking Integrated Rolling and Slitting Drying Assembly Electrolyte Slitting and Stacking Composition Equipment Equipment Equipment Equipment Equipment Integrated Equipment Equipment Equipment Injection Equipment Integrated Equipment PV Intelligent Equipment Module Cell MBB String 0BB Stringer XBC Stringer Integrated Laser Welding Equipment Equipment Equipment Scribing Equipment Monocrystalline Texturing BSG Removal and Alkali Polishing Screen Printing / Testing and Sorting Tab Welding Complete Busbar IBC Stringers Cleaning Equipment Etching Cleaning Equipment Sintering Equipment Process Equipment Equipment Welding Equipment Equipment 3C Intelligent Equipment Assembly and Testing Automated Visual Inspection 3D Assembly High-flow Sealing Five-axis High-speed Dispensing Electrical Testing Reliability Testing Visual Measurement Defect Detection Imaging Testing Intelligent Logistics System 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 Coating Membrane Electrode Stack and System Bipolar Plate Stack Activation and Equipment Equipment Preparation Equipment Assembly Equipment Production Equipment Testing Platform Automotive Intelligent Production Line Intelligent Production Lines for PACK Intelligent Electric Drive Intelligent Battery Charging and Automotive Intelligent All Forms of Modules Production Lines Production Lines Discharging Test Lines Assembly Lines Expand Product Matrix Based on Production and Turnkey Solution Delivery Capabilities 06 Platform Based Approach to Expand into Diverse Business Sectors2025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Globalization Layout Keeping abreast of evolving market trends and customer demands Lead Intelligent steadfastly advances its international development strategy by integrating high-quality resources globally and establishing overseas offices and service branches to consistently reinforce its technological leadership. Currently the Company's products have been exported to numerous countries and regions including Germany France Japan South Korea Sweden Turkey and Vietnam. It has also established multiple branches and subsidiaries worldwide building an extensive localised service network to serve global customers with its global technological capabilities thereby earning widespread recognition and support from international markets.Germany (European Headquarters) Wuxi China (Lead Intelligent Headquarters) Ningde China Sweden Netherlands USA Slovakia Dongguan China Shanghai China Mexico Dalian China UK Zhuhai China Spain Italy Japan Malaysia France Hungary Singapore Turkey Vietnam Republic of Korea Hong Kong China 072025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Strategic Direction Corporate Culture The Company deepens its operational excellence to solidify the Lead Intelligent has systematically established and continuously refined its corporate culture system which comprehensively foundations for development. Centred on product quality it covers three dimensions: culture & concept behavior culture and culture-rooted construction forming a clearly structured rigorously implements lean management across the full value and hierarchical cultural framework. The Company has formulated and dynamically updated the Lead Intelligent Corporate chain. It deeply optimizes its cost structure production processes Culture Handbook which clarifies the core substance and practical requirements of the corporate culture. This culture Excellent and supply chain system to ensure superior product performance is promoted through diverse channels such as the official website cultural wall displays departmental notice boards Operation efficient delivery and controllable costs. Adhering to a customer- and employee badges encouraging its principles to become shared values for all staff. In 2025 the Company released centric approach the Company focuses on core customer needs Lead Intelligent Values and Behavioural Guidelines to further guide the effective translation of Lead Intelligent's culture from and leverages its integrated product development system. It conceptual understanding to practical action.strengthens three core advantages—technology cost and delivery —to improve customer service quality and response efficiency thereby enhancing customer loyalty and market recognition.The Company pursues steady growth to achieve sustainable development. By fundamentally strengthening its core competitiveness it consolidates its advantages in the core Culture&Concept Culture-rooted Construction Behavior culture businesses of Li-ion batteries and photovoltaics optimises its business layout and enhances the quality of its products Steady and services. Adhering to the principles of market orientation Growth resource synergy and steady progress the Company prudently undertakes diversified business expansion and strategically positions itself in emerging sectors. Such initiatives mitigate Our Vision Quality Culture Execution industry cyclical fluctuations broaden revenue channels reduce To be a world leading intelligent Craftsmanship focus on quality Focus perfection reputation operational risks and achieve stable growth in both revenue equipment manufacturer efficiency and profit. Innovation Culture Our Mission Independent innovation to Talent The Company promotes agile innovation to seize development Create value for customers make itself intelligent Virtue attitude and ability opportunities. It focuses on the R&D of high-tech and high Seek wellbeing for employees value-added products targets the future direction of the Brand Culture Orientation industry and makes forward-looking investments in cutting- Our Culture Be a world-leading intelligent Customer-centric to be a edge technologies and emerging markets such as solid- Excellence with Efficiency manufacturing turnkey solution world leading intelligent state batteries perovskite and hydrogen energy equipment. provider manufacturing turnkey solution Leveraging its professional and efficient R&D and operational Our Values provider Agile teams the Company responds swiftly to market changes and Innovation customer demands concentrates resources on overcoming Customer-centricity diligence core technological bottlenecks accelerates the industrialization integrity responsibility of innovative achievements and drives product upgrades innovation focus perfection and business expansion through technological innovation reputation efficiency continuously consolidating its leading position in the global industry. 082025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Honours and Ratings Annual Honours National Advanced Collective China's Top 500 Private Enterprises China's Top 500 Listed Manufacturing in the Industry and Information in Invention Patents 2025 Forbes China Top 50 China's Top 500 Energy Enterprises Companies by Value Technology System China's Top 500 Private Enterprises Most Innovative Companies China Energy News Economic and Management Research Ministry of Human Resources and Social Security in R&D Investment Forbes China China Institute of Energy Economics Institute of the Machinery Industry SASAC China Association of Plant Engineering Ministry of Industry and Information All-China Federation of Industry and Commerce Technology China Heavy Machinery Industry Association 2025 Megawatt-level Emerald Li-power Award – Influential Golden Bull Award for Sci-Tech Innovation Award for BC Production Line Enterprise of the Year Organizing Committee of the International Outstanding New Energy + Energy Listed Companies (High-end Equipment) Top 100 Taxpayers in Wuxi City Li-power Award – Innovative Photovoltaic Power Generation and Smart Enterprise of the Year Storage Innovative Enterprise Wuxi Municipal People's Government Energy Conference & Exhibition Organizing Committee of the 10th Jiangsu Renewable Energy SocietyChina Securities Journal Organizing Committee of the International Energy Storage and Battery Technology & International Summit on Power Battery Equipment Conference Applications (CBIS2025) A-level Rating in the 2024–2025 2025 Global New Energy ESG Top 100 Zero Carbon Earth * Singularity Award 2025 ESG New Benchmark Working Committee of the Global Collaborative Information Disclosure Evaluation Global Green Energy Industry Council (GGEIC) Cailian Press 2025 Zhiyuan Enterprise Award Project for the United Nations Sustainable for ChiNext Market Listed New Energy Industry Association for Asia and Award – ESG Pioneer Enterprise Outstanding Enterprise for New the Pacific (NEIAAP) Development Goals Companies Asian Photovoltaic Industry Association (APVIA) Yangtze River Delta International Green Cailian Press Quality Productivity Shenzhen Stock Exchange Development Alliance Securities Star Yangtze River Delta Business Innovation Institute 2025 For Good Award – Top 15 in ESG 2025 Sustainable Brand Model Sustainable Development Best Sustainable Development LinkedIn Global Talent 2025 ESG Charity Innovation Case – Shareholder Rights Guardian Caixin Disclosure Award Magnet Employer for Listed Companies in Wuxi CityAward CYZONE New Fortune Magazine LinkedIn China Wuxi Charity Federation Sunward Future Huxiu 092025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices ESG Mainstream Ratings CDP S&P Global Corporate Sustainability Assessment Climate Change: Water: ESG Score: CSA Score: 48 47 B B Supplier Engagement Assessment: Selected for the Sustainability Yearbook (China A Edition) 2025 Wind ESG Rating EcoVadis Silver Medal AA 102025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Sustainability Management Sustainability Governance Board ESG Statement As the highest governing body responsible for the Company's ESG management and information disclosure the Board of Directors consistently integrates ESG principles into its development strategy. Relying on a top- down four-tiered governance structure it comprehensively fulfils its duties of supervision review and leadership to drive the Company's sustainable high-quality development.Core Responsibilities for Review and Implementation Reporting and Information Annual Supervision and Supervision and Review of Material Issues Disclosure Responsibility Guidance Practices The Board of Directors coordinates the T h e B o a r d o f D i r e c t o r s g u i d e s t h e The Board of Directors bears ul t imate During the Reporting Period the Board of deliberation and approval of the Company's establishment of an importance assessment responsibil ity for this year’s ESG report Directors regularly received reports on key ESG medium- and long-term ESG strategy annual mechanism that combines ‘Stakeholder and re lated publ ic d isc losures. I t has work and provided deliberation and guidance objectives and major policies ensuring deep Engagement + Industry Benchmarking + Trend comprehensively reviewed and verified on core topics such as green production low- synergy with core businesses such as Li- Tracking’; diligently reviews and confirms the the report's contents confirming that they carbon research and development and a ion batteries; supervises the performance results of the 2025 ESG double materiality are true accurate and complete free from sustainable supply chain. It also assessed of the ESG Management Committee and assessment and the list of core topics; and false records misleading statements or the completion of annual ESG goals and put assesses the effectiveness of the governance urges management to formulate targeted major omissions and objectively reflect the forward requirements for key matters such system; and reviews response plans for management measures and quantifiable Company’s ESG practices and performance in as green intelligent manufacturing and the major ESG risks promoting the integration goals regularly listens to progress reports 2025. implementation of carbon peaking and of ESG requirements into the entire process a n d m a k e s d y n a m i c o p t i m i z a t i o n s carbon neutrality goals promoting the deep of business decision-making production a n d a d j u s t m e n t s t o e n s u re t a r g e t e d integration of ESG with business operations o p e ra t i o n s a n d g l o b a l S u p p l y C h a i n implementation of the work. For details of and development.Management. the relevant assessment please refer to the ‘Double Materiality Assessment’ chapter of this report.The Board of Directors will continue to enhance its ESG governance and improve the quality of management and disclosure empowering the green development of the new energy industry with intelligent manufacturing to achieve a win-win situation for the enterprise society and the environment. 112025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Sustainability Governance Structure The Company has established a sustainability governance structure with the Chairman as the highest responsible person guided and supervised by the Board of Directors and with the ESG Management Committee responsible for the management and decision-making of ESG work. This structure provides a solid governance guarantee for setting sustainability goals tracking progress and managing related risks. At the same time the Company has established an external expert advisory group to provide professional advice to the ESG Management Committee further enhancing the scientific and forward-looking nature of its decision-making.Guidance Highest responsible body for ESG management and public disclosure responsible for reviewing and and Board of Directors approving the Company's ESG strategic objectives and important affairs Supervision Monitors and guides the ESG Management Committee’s ESG governance work Sets up a special external expert advisory group to provide Chaired by the Chairman with heads of various departments serving as committee members it operates professional advices to in coordination with the ESG Office and is responsible for guiding supervising managing and making the ESG Management decisions on the Company's ESG work External Committee and support Decision- Monitors ESG risks and opportunities formulates ESG strategies and policies drives strategy Consultation Expert ESG Management the Committee's work Making implementation and reviews public information such as the annual report Think Tank Management Committee and decision-makingConducts regular communication and opinion collection with external expert partners and other key stakeholders Partners Provides ESG and reporting the progress and achievements of ESG work to the Board of Directors quarterly professional capacity Executive Members are appointed under the heads of various departments to be responsible for building and training implementing specific ESG work Support and share ESG best practices and trends on a regular basis Composed of full-time ESG officers to support the work of the ESG Management Committee Conducts work planning and project design according to the Company's ESG strategic objectives and ESG Office undertakes daily coordination information collection and management of the Company's ESG affairs Leads the preparation of the annual ESG Report Coordination Led by the members of ESG Management Committee and Executive Committees to promote the Departments implementation of specific ESG work in various departments branches and subsidiaries Execution Branches and Subsidiaries Conducts follow-up and tracking of relevant ESG indicators and reports to the ESG Management Committee on a regular basis Sustainability Governance Structure 122025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Sustainable Performance and Sustainability Due Diligence Management Remuneration Incentives The Company continuously benchmarks against international mainstream evaluation systems and To continuously improve the Company's sustainability management the Company has established a actively cooperates in completing due diligence and industry standard audits from customers and mechanism linking sustainability performance with remuneration incentives. Key sustainability performance third parties constantly enhancing the standardization and transparency of its ESG management.indicators such as resource efficiency delivery quality customer satisfaction employee development During the Reporting Period the Company proactively participated in the EcoVadis corporate social anti-corruption and compliance information security environment and occupational health and safety responsibility rating disclosing its ESG management performance in environment labour and are incorporated into the annual performance evaluation system for relevant executives and employees human rights business ethics and sustainable procurement to customers. We also successfully at all levels. Through target decomposition process monitoring and results evaluation the synergistic passed the online audit of the automotive industry's SAQ 5.0 standard achieving a score of 90 advancement of sustainability goals and business management objectives is achieved. Details on how ESG and a B-level (Green) rating meeting the industry's high standards for quality environmental and performance is linked at various levels can be found in ‘Talent Cultivation and Development ’. social responsibility in the supply chain. Furthermore the Company completed multiple customer ESG due diligence questionnaires and drove continuous internal improvements based on external Incentive Subject Incentive Type Incentive Plan Description Examples of requirements. The Company also strengthened due diligence on its own supply chain conducting ESG Indicators supplier self-assessments or on-site inspections during access and audits to standardize supplier behaviour and improve supply chain compliance and sustainable management levels (see Key sustainability performance Cost Reduction ‘Sustainable Supply Chain Management’ for details).and Efficiency indicators are incorporated into the Senior Improvement Remuneration performance evaluation system Management Resource Rewards for relevant senior management Empowering Sustainability Management Personnel Efficiency personnel and linked to their Delivery and The Company places great importance on the dissemination of ESG concepts and capacity building remuneration. Quality Stability continuously conducting specialized training both online and offline on core sustainability topics. As Customer Delivery of the end of the Reporting Period the cumulative number of learning participants exceeded 5000.and Satisfaction Among these 23 sustainability-themed courses were launched on the ‘Lead Intelligent e-Learning’ Targets are cascaded down Organisational online platform to strengthen employees’ professional understanding of issues such as climate Capability Building a n d i m p l e m e n t e d t h ro u g h change and responsible supply chains. Specialized offline training on international ESG standards Key Talent t h e s u s t a i n a b i l i t y - r e l a t e d and supplier ESG assessment management was organized to continuously enhance the compliance Development organizational performance Effectiveness management capabilities and sustainability practice levels of our business teams.Remuneration key project performance and of Cross- Rewards key special tasks of first-level departmental departments. In addition all Collaboration All Employees Non- employees are encouraged Anti-corruption remuneration t o p rov i d e s u g g e s t i o n s fo r and Compliance Rewards sustainable development through Information internal channels. Suggestions Security that are adopted and rated will Environment Occupational be given corresponding cash and Health and Safety honorary rewards. 132025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Sustainability Strategy and Goals Sustainable Development Strategy ESG Strategy Model Lead Intelligent has established ‘Promoting Global Green Energy Transformation Through Product Quality and Safety lue for Cu stomers Risk Management Intelligent Manufacturing ’ as its vision for ng V a Technology Innovation ati Pa Anti-commercial Bribery and sustainable development. We have built an Cre ving Circular Economy th Anti-corruption ESG value co-creation and risk management e Compliance Operations system around five pillars: ‘Creating Value for Intellectual Property Protection Customers’ ‘Seeking Well-being for Employees’ Information Security and Privacy ‘Achieving Mutual Benefits for Partners’ ‘Driving Protection Transformation for Society’ and ‘Paving the Way Promoting Global Corporate Governance for a Long-lasting Future’. We are committed to Green Energy Transformation working with stakeholders to jointly support the Employee Rights and Welfare Through Intelligent United Nations Sustainable Development Goals Equality and Diversity Manufacturing and create a better future. Human Capital Development Occupational Health and Safety ving fMu ran s tual g T Responses to Climate Change and Clean Ben inefits fo D riv r Technology Development Partners Social Contribution and Rural Revitalization Sustainable Supply Chain Management Ecosystem and Biodiversity Protection Industry Cooperation and Development Emissions and Waste Management Stakeholder Engagement Environmental Compliance Management Customer Relationship Management Energy Management Water Resources Management 14 ing Well-beink g fe ore ES mployees ormation for Society -lasting Future ng r a L o y fo W a ch ie A2025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Sustainability Goals and Progress Response to the United Nations Sustainable Development Goals (UN SDGs) and Progress Towards Targets As a member of the United Nations Global Compact (UNGC) Lead Intelligent supports the ten principles of the UNGC in the four areas of human rights labour environment and anti-corruption. We also actively respond to the United Nations Sustainable Development Goals committed to closely integrating our corporate operations with global sustainability actions and contributing to the achievement of global sustainable development goals.Social Contribution and Occupational Health and Safety Human Capital Developmen Equality and Diversity Water Resources Management Rural Revitalization Social Contribution and Rural Revitalization Established the ‘Warm Light Strictly adhered to safety red Achieved 100% employee training Formulated the Regulations on Established water consumption Public Welfare Fund’ with a total lines achieving 100% coverage coverage with a total cumulative the Protection and Management of targets enhanced water fund size of RMB 30 million in health and safety risk learning time of approximately Vulnerable Groups covering key management mechanisms donating RMB 6 million in the assessments at operational sites 570000 hours. aspects such as recruitment job and strengthened water risk first year and committing to while continuously improving Systematically advanced placement vocational training management.continuous annual contributions. the corporate safety culture and educational equity initiatives compensation and benefits and Built and commissioned 5 Organized 16 volunteer overall EHS performance. through the ‘Warm Light career advancement. intelligent rainwater collection service activities including Passed the annual audit for the Public Welfare Fund’ platform and utilization systems to environmental clean-up care for ISO 45001 Occupational Health recognized outstanding students promote the recycling of water the elderly and charity bazaars and Safety Management System. supported students in need and resources.with a total of 768 volunteer hours continuously provided higher- contributed. quality and more equitable educational support. 15 UN Corresponding SDGs Topics Progress In 20252025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Responses to Climate Change and Employee Rights and Welfare Product Quality and Safety Social Contribution and Rural Revitalization Clean Technology Development Technology Innovation Technology Innovation Intellectual Property Protection Built comprehensive intelligent Revised the Employee Handbook to Passed the annual audit for the ISO 9001 Donated to build maker classroom in manufacturing solutions in fields including standardize democratic consultation quality management system covering Yichuan Shaanxi; expanded financial new energy Li-ion batteries solid-state procedures and effectively safeguard the entire process of product design aid coverage for students in need; and batteries energy storage photovoltaics employee rights. development production and service. donated school uniforms and books to and hydrogen energy. Achieved 100% coverage of rights Passed the annual audit for the ISO 56005 rural schools thereby narrowing the Focused on the full value chain of solid- training for new employees coverning Innovation and Intellectual Property urban-rural education gap.state battery production and delivered topics such as compliant employment Management Capability Classification and multiple sets of dry mixing and coating anti-forced labor anti-discrimination Rating System and was honoured with the equipment designed for large-scale solid- and anti-harassment and democratic ‘Best Practice Award’ in the 2024-2025 ISO state battery production line which has communication and negotiation. 56005 Innovation and Intellectual Property been validated in actual production and Management Capability Classification and can reduce energy consumption by over Evaluation Outstanding Case category. 35% and material and manufacturing R&D expenditures reached RMB costs by over 15% thereby accelerating the 1605067131.63 accounting for 11.11% of industrialisation of solid-state batteries. operating revenue.Achieved major breakthroughs in core 778 new patents were granted during the technologies for manufacturing large- year bringing the total number of granted capacity batteries in the large-scale patents to 3592 as of the end of the energy storage equipment sector Reporting Period.delivering an intelligent manufacturing solution for ultra-large energy storage batteries with an overall equipment effectiveness (OEE) above 75% a first-pass yield above 93% and a comprehensive yield above 96%. 16 UN SDGs Corresponding Topics Progress In 20252025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Environmental Compliance Management Responses to Climate Change and Corporate Governance Industry Cooperation and Energy Management Clean Technology Development Compliance Operations Development Emissions and Waste Management Risk Management Sustainable Supply Chain Circular Economy Anti-commercial Bribery and Anti- Management Ecosystem and Biodiversity Protection corruption Customer Relationship Information Security and Privacy Management Protection Stakeholder Engagement Passed the annual audits for the ISO 14001 environmental Steadily advanced carbon neutrality Continuously maintained the ISO Undertook or participated in management system and the ISO 50001 energy management goals - Scope 1 and Scope 2 37001 Anti-bribery Management 18 science technology and system. greenhouse gas emissions peaking System; achieved 100% coverage of industrialisation projects at Launched rooftop solar projects at domestic production bases at core operations by 2030 and anti-corruption training for directors or above the provincial and with a total planned installed capacity of approximately 25 MW achieving carbon neutrality at core and senior executives and business ministerial level continuously which are expected to generate over 26 million kWh of electricity operations by 2035. ethics training for employees; promoting the transformation annually and reduce carbon emissions by more than 13000 Conducted a climate change achieved 100% signing rate for the of research achievements tonnes; as of the end of the Reporting Period 4.62 MW had been scenario analysis and formulated employee integrity commitment letter into tangible productivity and connected to the grid. corresponding response measures. and the letter of integrity to suppliers. enhancing core technological Established an integrated management platform for electricity Lead Intelligent's Wuxi No. 2 Factory The number of data breaches major competitive advantage.consumption to enhance digital energy efficiency management received the ISO 14068 Carbon information security incidents or The percentage of new suppliers and control capabilities. Neutrality Certification for the second related litigation cases was zero. screened using environmental/ Effectively reduced pollutant emissions and waste generation consecutive year. social dimensions reached 100%.through measures such as strengthening exhaust gas purification Achieved a 100% customer and monitoring sorting and properly disposing of wastewater complaint response rate and and managing the reduction of hazardous waste; during the a 100% complaint resolution Reporting Period the intensity of hazardous waste decreased by timeliness rate ensuring timely 37.67% compared to the previous year. response and closed-loop Achieved an average reduction of 25% in wood used for packaging management of customer and 60% in vacuum bags used for packaging per unit of equipment feedback.through proactive implementation of a circular economy.Prioritized biodiversity conservation in the construction and operations with none of the production bases or operational sites located within or near nature reserves nor in areas rich in biodiversity outside such reserves. 17 UN SDGs Corresponding Topics Progress In 20252025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Stakeholder Engagement The Company places great importance on the requests of its stakeholders and through various channels such as interviews questionnaire surveys its official website and public accounts comprehensively understands and actively responds to their concerns and expectations remaining committed to building long-term mutually beneficial relationships and continuously improving its sustainable development management.Shareholders/Investors Customers Suppliers and Other Employees Government Media Community and the Industry/Academic/ Business Partners Public Rating Agencies Risk Management Product Quality and S u s t a i n a b l e S u p p l y Employee Rights Responses to Responses to Responses to Responses to Climate Compliance Operations Safety Chain Management and Welfare Climate Change and Climate Change Climate Change and Change and Clean Anti-commercial Bribery Technology Innovation Industry Cooperation Human Capital Clean Technology and Clean Clean Technology Technology Development and Anti-corruption Information Security and Development Development Development Technology Development Product Quality and In te l lec tual Proper ty and Privacy Protection Occupational Social Contribution and Development Emissions Safety Protection Customer Relationship Health and Safety Rural Revitalization Social and Waste Sustainable Supply Chain Corporate Governance Management Compliance Operations Contribution Management Management Corporate Governance and Rural Energy Employee Rights and Anti-commercial Revitalization Management Welfare Bribery and Anti- Technology Social Contribution Human Capital corruption Innovation and Rural Development Technology Innovation Revitalization Occupational Health and Safety Corporate Governance Official Website Official Website Official Website Employees' Congress Official Official Website Official Website Report Disclosure Investor Hotline WeChat Official WeChat Official Team Building Correspondence WeChat Official WeChat Official Rating Questionnaires Investor Relations Account Account Interest Clubs Daily Communication Account Account Thematic Research Email CRM (Customer Supplier Themed Events Institutional Visits Media Briefings Community Shenzhen Stock Relationship Management Chairman's Mailbox Press Activities Exchange Interactive Management) System System Whistle-blowing and Conferences Volunteer Platform Regular Visits Tendering Meetings Complaint Hotline Activities Results Briefings Technical Exchange Technical Exchange Continuous Investor Open Days Meetings Meetings Improvement (CI) Institutional Research Project Teams Suggestion Platform Shareholders’ After-sales Service Satisfaction Surveys Meetings System Satisfaction Surveys 18 Key Topics of Concern Communication and Stakeholders Engagement Channels2025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Double Materiality Assessment In accordance with regulatory requirements such as the SZSE Guidelines and with reference to the GRI Sustainability Reporting Standards and the SDGs the Company systematically conducts the identification and management of double materiality topics while also considering key ESG topics of concern to capital market indices such as S&P Global.Understand the Company's internal activities and business relationships the external objective environment and the main stakeholders Background Understanding affected.The Company identifies ESG issues highly relevant to its operations by strictly adhering to national policy guidelines referencing major domestic Issue Identification and international ESG frameworks and standards and integrating peer analysis with its own development strategy.Impact Materiality Financial Materiality Materiality Assessment of Issues Magnitude of Impact Likelihood of Occurrence Magnitude of Impact Likelihood of Occurrence Scope of Impact Irremediability Issue Review and Confirmation The conclusions on issue materiality are confirmed following review and approval by the Board of Directors and management.Methodology and Process for Identifying Double Materiality Topics 192025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Step 1: Background Research and Stakeholder Identification By integrating industry development trends and sustainable development dynamics the Company regularly updates and optimizes its ESG topics to ensure they are comprehensive and forward-looking.Environment Social Governance ESG Topic ESG Topic ESG Topic Emissions and Waste Circular Economy Sustainable Supply Occupational Health and Safety Anti-commercial Bribery and Risk Management Management Energy Management Chain Management Social Contribution and Rural Anti-corruption Stakeholder Responses to Climate Change Ecosystem and Biodiversity Product Quality and Revitalization Compliance Operations Engagement and Clean Technology Protection Safety Customer Relationship Intellectual Property Corporate Governance Development Employee Rights and Management Protection Environmental Compliance Welfare Industry Cooperation and Information Security and Management Equality and Diversity Development Privacy Protection Water Resources Human Capital Technology Innovation Management Development Changes From 2024 Changes From 2024 Changes From 2024 Merged the ‘Responses to Climate Change’ and ‘Clean Removed the ‘Sustainable Growth’ topic. Adjusted ‘Anti-corruption’ to the ‘Anti-commercial Tech and Green Products’ topics into the ‘Responses to Integrated ‘Sustainable Sourcing of Raw Materials’ Bribery and Anti-corruption’ topic.Climate Change and Clean Technology Development’ into the ‘Sustainable Supply Chain Management’ Adjusted ‘Business Ethics and Compliance’ to the topic. topic. ‘Compliance Operations’ topic.Added the ‘Environmental Compliance Management’ Enhanced topics related to the protection of employee Adjusted ‘ESG Risk Management and Disclosure’ to the ‘Ecosystem and Biodiversity Protection’ and ‘Water rights and interests and added the ‘Equality and ‘Risk Management’ topic.Resources Management’ topics. Diversity’ topic. Added the ‘Stakeholder Engagement’ topic.Changed ‘Product Carbon Footprint and Life Cycle Changed ‘Driving Industrial Intelligent Transformation’ Management’ to the ‘Circular Economy’ topic. to the ‘Industry Cooperation and Development’ topic.Added the ‘Customer Relationship Management’ topic.Changed ‘Philanthropy and Community Engagement’ to the ‘Social Contribution and Rural Revitalization’ topic.List of ESG Topics 202025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices ESG Topic Identification and Assessment We identify current or potential impacts risks and opportunities (IROs) related to ESG topics: ESG Topic IROs Description Value Chain Affected Stakeholders Impact Impact Position Period1 Magnitude2 Through the establishment of a stringent emissions and waste management system companies can Positive Impact effectively reduce their own operational emissions and drive collective emission reductions with their supply chain partners Ineffective emissions control or improper waste disposal could exacerbate local environmental pollution Negative and resource consumption posing potential long-term risks to community health and ecological Impact Corporate balance Operations Customers Short Term Emissions Downstream Community and Public Reduced waste disposal costs resulting from improved emission and waste reduction levels and Waste Opportunity Value Chain Generation of by-product revenue through resource utilisation Management Non-compliant emissions or hazardous waste disposal facing fines rectification orders or production Risk suspension Reputational risks arising from non-compliant emissions or hazardous waste disposal By actively investing in the R&D and application of clean technologies companies can reduce their own Positive Impact carbon footprints promote the industry's low-carbon transition and contribute innovative solutions to the global response to climate change If a company fails to respond effectively to climate change its business activities will generate significant Negative negative externalities not only directly harming the health of employees and the community but also Upstream Value Employees Impact exacerbating social inequality caused by uneven distribution of resources and risks and thereby slowing Chain Customers the industry's green transition process and weakening supply chain resilience Responses to Corporate Suppliers and Other Business Medium to Climate Change Proactively arranging carbon credits and green electricity to establish a low-carbon benchmark and gain a Operations Partners Long Term market premium Downstream Shareholders/Investorsand Clean Opportunity Leveraging technological advantages to drive the energy revolution empower new energy development Value Chain Community and PublicTechnology and open up incremental revenue streams Development Extreme weather leading to asset damage and supply chain disruption Risk Increased compliance costs due to carbon taxes and the purchase of carbon allowances Failure in clean technology R&D or disruption of technological pathways Excellent environmental compliance management directly reduces pollution emissions and resource Positive Impact consumption from corporate operations laying a practical foundation for the regional green economic transition If there are loopholes in environmental compliance management or if it is inadequately implemented Upstream Value Negative Customers corporate operations will continuously externalise pollution and ecological pressure directly harming Chain Impact Suppliers and Other Business community environmental quality and resident health Corporate Medium to Partners Environmental Operations Long TermMaintaining high compliance standards to gain priority access to green credit/bonds Shareholders/Investors Compliance Opportunity Downstream Enjoying environmental tax incentives or government rewards Community and the PublicValue Chain Managemen Stricter environmental regulations necessitating mandatory modifications to existing auxiliary industrial Risk equipment Compliance violations leading to corporate reputational damage and restricted access to green credit 1Impact period: The timeframe over which a risk or opportunity event is expected to impact the Company after its occurrence categorised as short-term (0–5 years) medium-term (5–10 years) and long-term (over 10 years).2Impact magnitude: The degree of impact for each topic is determined based on the results of this year’s double materiality topics questionnaire. High Medium Low 212025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices EESSGG议 To题pic IIROs 描De述scription 价Va值lue Chain Po链si位tio置n 受A影ffe响c的ted利 S益ta相ke关ho方lders 影 I响m周pa期ct 影响Im规pa模ct Period Magnitude Effective water resources management can not only alleviate the pressure of water consumption from Positive Impact business expansion but also encourage value chain partners to jointly promote water conservation and protection contributing to the sustainable development of the regional water ecosystem The daily operations of a business continuously consume water resources; if accompanied by business Negative expansion or inadequate management measures this could lead to a significant increase in water Impact consumption exacerbating local water stress Corporate Medium to Community and the Public Operations Long Term Water Resources Reducing water consumption per unit through process improvements equipment upgrades and water Management Opportunity recycling systems Enhanced production continuity and operational resilience Risk Increased costs from water scarcity or rising water prices Implementing a circular economy model can effectively reduce a company's reliance on natural Positive Impact resources promote efficient resource recycling and foster synergistic development between the economy and the ecosystem If the circular economy is implemented ineffectively it could exacerbate resource waste and refuse Negative Upstream Value accumulation; if recycled material technologies are immature it could also affect product performance Impact Chain Customers and harm user interests Short Corporate Suppliers and Other Business Actively practising the circular economy promoting the use of recyclable materials and the reuse of Medium andOperations Partners production waste to reduce procurement costs Long term Opportunity Downstream Community and the PublicCircular Launching a full-cycle digital recycling solution to empower the new energy industry's green closed loop Value Chain Economy from manufacturing to recycling High dependence on single-use virgin materials facing resource scarcity or supply interruptions Risk Existing production processes and equipment lack the capacity for recycling dismantling or remanufacturing Efficient energy management directly contributes to achieving climate targets and improving regional air Positive Impact quality by reducing greenhouse gas and pollutant emissions Inefficient energy management makes a company a persistent source of high emissions which not only Upstream Negative exacerbates climate and environmental pressures and encroaches on public environmental resources Value Chain Customers Short Impact and health budgets but also slows the overall decarbonization pace of the industrial chain due to Corporate Suppliers and Other Business Medium and technological lock-in Operations Partners Long term Downstream Community and the Public Improving energy efficiency to reduce unit energy consumption costs Opportunity Value Chain Energy Developing distributed photovoltaic systems to replace purchased electricity Management Fluctuations in energy prices leading to uncontrollable production costs Risk Power rationing or outages leading to decreased capacity utilisation and order delays High Medium Low 222025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices EESSGG议 To题pic IIROs 描De述scription 价Va值lue Chain Po链si位tio置n 受A影ffe响c的ted利 S益ta相ke关ho方lders 影 I响m周pa期ct 影响Im规pa模ct Period Magnitude By incorporating ecological protection into operational decisions a company can effectively reduce Positive Impact disturbances to natural habitats and enhance regional biodiversity through ecological restoration projects If a company neglects ecological protection during project development its engineering activities Negative will directly cause fragmentation degradation or even loss of natural habitats leading to irreversible Impact Corporate Medium to damage to biodiversity and weakening the ecosystem’s functions such as climate regulation Community and the Public Operations Long Term Ecosystem and Creating eco-friendly factories to enhance brand image and community relations Biodiversity Opportunity Appreciation of land assets due to environmental improvements Protection New factory site selection involving ecological red lines leading to project delays or cancellations Risk Ecological damage from raw material extraction in the supply chain triggering public boycotts By promoting sustainable supply chain management a company can help upstream partners improve Positive Impact their overall performance in areas such as labour rights environmental performance and business ethics thereby jointly reducing negative impacts on society and the environment If a company neglects supply chain sustainability it may lead to deteriorating labour conditions and a Negative lack of environmental management among its partners which in turn increases operational risks and Impact Upstream reputational hazards within the supply chain Value Chain Customers Building a sustainable supply chain can create a brand moat meet the requirements of high-end clients Corporate Suppliers and Other Business Medium to Sustainable and regulators and secure a market premium.Operations Partners Long Term Opportunity An outstanding supply chain can secure longer payment terms lower-cost financing and improve cash Downstream Shareholders/Investors Supply Chain flow stability Value Chain Management Violations of EU Regulations such as the CBAM and CSDDD will result in the direct loss of orders and market access Risk The absence or failure of a supplier screening mechanism will lead to inefficient evaluations and supply chain disruptions subsequently causing a decline in revenue Excellent equipment quality and safety design can enhance the customer experience and ensure Positive Impact operational safety and production continuity; it can also improve durability thereby reducing resource consumption and waste generation Negative A rising rate of defective equipment affects customer trust and threatens personnel safety and production Upstream Impact stability; frequent breakdowns also increase maintenance waste adding to the environmental burden Value Chain Customers Corporate Short Medium High quality and safety records differentiate products from homogenized competition and support Suppliers and Other Business Operations and Long Term Product Quality Opportunity higher pricing PartnersDownstream and Safety Safe and reliable products cultivate high-loyalty customers reducing customer acquisition costs Value Chain Product quality issues will trigger returns processing incurring direct costs for logistics warehousing and repairs Risk Product quality problems damage customer trust and the company's reputation leading to fines from regulatory bodies and business losses High Medium Low 232025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices EESSGG议 To题pic IIROs 描De述scription 价Va值lue Chain Po链si位tio置n 受A影ffe响c的ted利 S益ta相ke关ho方lders 影 I响m周pa期ct 影响Im规pa模ct Period Magnitude A comprehensive system for protecting employee rights and interests and providing welfare can directly enhance workers' sense of economic security reduce the risk of poverty for individuals and families Positive Impact cultivate a workforce with greater consumption power and health literacy and provide a solid social foundation for economic stability Negative Inadequate protection of employee rights and interests or a lack of welfare directly harms the economic Upstream in the security and physical and mental health of workers exacerbates their vulnerability and social injustice Value Chain Employees Impact and suppresses the improvement of overall consumption power and labour force quality Corporate Customers Short Medium Employee Highly engaged employees typically have higher per capita output and lower management costs Operations Suppliers and Other Business and Long Term Rights and Opportunity Competitive benefits and a positive work experience reduce voluntary turnover thereby saving on Downstream in Partners Welfare replacement costs the Value Chain Violations of labour regulations (such as those concerning overtime social security and discrimination) will result in compensation fines and litigation costs Risk Tense labour relations may lead to passive resistance or even work stoppages causing operational disruptions Building a diverse equal and inclusive work environment not only breaks down employment barriers Positive Impact and career ceilings to provide fair development opportunities for individuals from different backgrounds but also injects diverse innovation potential into the economic system Negative Inequality and a lack of inclusion in the workplace can harm the professional dignity and development rights of specific groups lead to a significant waste of human resources and stifle the vitality of the overall social Impact innovation ecosystem An inclusive environment encourages dissent and challenges leading to more thorough consideration of major decisions (such as investments and mergers and acquisitions) thereby reducing the risk of Corporate Medium to Opportunity strategic errors EmployeesEquality and Operations Long Term The diversity of internal teams enables them to better understand and serve client groups from different Diversity genders ethnicities and cultural backgrounds thereby tapping into incremental markets A lack of equality and diversity may lead to employee dissent and differing viewpoints being ignored making major decisions (such as investments mergers and acquisitions) less comprehensive and increasing the risk of strategic errors Risk Inequalities in recruitment remuneration and promotion can trigger class-action litigation regulatory investigations and compensation claims; scandals involving discrimination or a lack of inclusion can damage corporate reputation By establishing a systematic talent cultivation system and diverse development pathways enterprises Positive Impact can effectively enhance employees’ professional capabilities helping break down structural barriers to career development and promoting an upgrade in the overall skill level of the workforce Negative If training mechanisms are weak or promotion paths are not transparent it not only hinders employee growth causing valuable human resources to be underutilized and wasted but may also weaken the Impact iterative improvement of the overall quality of the workforce Training reduces the time it takes for employees to become proficient thereby improving work quality Corporate Medium to Human Capital Employeesand efficiency Operations Long Term Development Opportunity A strong training system enables the continuous cultivation of internal talent reducing the costs associated with recruitment integration and trial and error Employee skills fail to keep pace with technological changes (such as AI and automation) leading to a decline in per capita output and operational efficiency that lags behind competitors Risk The absence of an internal succession plan creates a risk of business interruption in the event of core personnel departures High Medium Low 242025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices EESSGG议 To题pic IIROs 描De述scription 价Va值lu链e 位Chain Positio置n 受A影ffe响c的ted利 S益ta相ke关ho方lders 影 I响m周pa期ct 影响Im规pa模ct Period Magnitude A sound occupational health and safety management system can create a safe and reliable working Positive Impact environment for employees effectively reducing the risk of occupational injuries and enhancing the overall level of social labour welfare If the working environment has safety hazards or inadequate health protection it may endanger the Negative physical and mental health of employees exacerbate social inequality in the field of occupational health Impact and increase the burden on public healthcare and social security systems Upstream Value Chain Employees Short A safe working environment is a fundamental need for employees; meeting this need can significantly Corporate Customers Medium and enhance their loyalty and dedication Operations Suppliers and Other Business Occupational Opportunity Long TermLarge multinational corporations and ESG investors use occupational health and safety performance as Downstream Partners Health and a core assessment indicator with high performers gaining more orders and lower-cost capital Value Chain Safety Violations of safety regulations will result in substantial fines and in severe cases may lead to orders to suspend production for rectification Risk Work-related accidents can lead to high compensation for disability or even death benefits; a high accident rate results in increased insurance premiums By participating in social welfare and rural revitalization projects enterprises can support local Positive Impact community economic development and improve public livelihood while also enhancing their corporate social image and gaining recognition from stakeholders If social contribution projects are detached from local needs or lack sustained investment they may Negative fail to produce substantial results and could even risk resource misallocation and unmet community Impact expectations A brand with an outstanding ability to fulfil its responsibilities is more likely to win the strategic trust and Corporate Employees Long Term Social long-term loyalty of its customers Operations Community and the Public Contribution Opportunity Enterprises that make active contributions are more likely to receive support from local governments in and Rural areas such as project approvals and taxation Revitalization Against the backdrop of national strategies such as rural revitalization companies with insufficient social contributions may lose government support in areas such as project approvals and taxation Risk Financial institutions use rural revitalization as an important basis for assessing a company’s social credibility and a lack of practical engagement will lead to increased financing costs Effective customer relationship management can effectively safeguard the legitimate rights and interests Positive Impact of customers and enhance customer satisfaction and loyalty by providing high-quality services Negative Poor customer relationship management may lead to delayed responses to customer requests damaging Corporate Customers Impact the customer experience and affecting the corporate reputation Operations Medium to Suppliers and Other Business Customer Downstream Long Term Partners Relationship Opportunity Strong customer relationships and high switching costs can support higher pricing or reduce price wars Value Chain Management Neglecting customer retention leads to continuous customer churn requiring the company to persistently Risk invest heavily in acquiring new customers High Medium Low 252025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices EESSGG议 To题pic IIROs 描De述scription 价Va值lu链e 位Ch置ain 受A影ffe响c的ted利 S益ta相ke关ho方lders 影I响m周pa期ct 影响ImPosition 规 pa模ct Period Magnitude Active participation in industry collaboration can promote technical exchange and joint standard-setting Positive Impact drive collaborative innovation across the industrial chain and help the industry as a whole move towards sustainable high-quality development Negative A lack of industry collaboration mechanisms or disorderly competition could lead to duplicated resource investment strengthened technical barriers delayed industrial transformation and weakened overall Impact Upstream Value competitiveness Chain Customers Leveraging outstanding technological innovation capabilities the Company collaborates on technology Corporate Suppliers and Other Business Long Term Industry with partners across the entire industrial chain to jointly drive innovation in the new energy industry Operations Cooperation Opportunity enhancing cost control capabilities and profit stability Partners Downstream and Establish joint laboratories with universities and research institutions to share intellectual property (IP) Value Chain and accelerate technology commercialisation Development Independently developed technologies may result in sunk R&D investment costs due to issues such as process adaptability Risk A lack of deep collaboration and information sharing with upstream and downstream partners makes the supply chain rigid fragile and vulnerable to disruptions Continuous technology innovation drives the Company’s technological advancement and product Positive Impact upgrades enhances core competitiveness and provides the market with solutions of sustainable value Negative Insufficient R&D investment or innovation that is misaligned with market demand will fail to effectively drive technological upgrades and value enhancement in related industries potentially causing the entire Impact Upstream industrial chain to remain at a low-tech level EmployeesValue Chain Customers Successful R&D creates intangible assets such as patents and non-patented technologies building a Corporate Medium to Suppliers and Other Business commercial moat Opportunity Operations Long Term Technology Process innovation and the optimisation of production technology can directly reduce production costs PartnersDownstream Innovation and increase efficiency Shareholders/InvestorsValue Chain R&D projects with substantial resource investment that fail to achieve expected results can lead to a total loss of the initial investment Risk Sustained high-intensity R&D investment consumes significant company cash flow potentially diverting resources from production and market expansion Strict enforcement of anti-commercial bribery and anti-corruption policies can build a clean business Positive Impact environment protect the cornerstone of integrity in the market economy and lay the foundation for economic health Negative If anti-corruption mechanisms have loopholes or are poorly enforced it could lead to the proliferation of unfair competition fundamentally hindering the formation of a healthy market culture and the spirit of Upstream Value Impact Employeesthe rule of law Chain Customers Corporate Medium to Anti- A sound internal anti-corruption control system can prevent bribery and illicit transfers of benefits Suppliers and Other Business Operations Long Term commercial reducing asset loss and operational waste caused by fraud Partners Opportunity Downstream An image of integrity and a strong compliance record can enhance credit ratings and reputation helping Shareholders/Investors Bribery and Value Chainsecure preferential green loans and long-term investor support Anti-corruption Facing economic losses such as substantial fines confiscation of illegal gains and civil damages Risk Reputation damage may lead to a decline in brand value loss of customers and termination of partnerships High Medium Low 262025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices EESSGG议 To题pic IIROs 描De述scription 价Va值lu链e 位Ch置ain 受A影ffe响c的ted利 S益ta相ke关ho方lders 影I响m周pa期ct Impact Position 影响规模 Period Magnitude Adhering to compliance operations helps consolidate the authority of the market's rule of law provides Positive Impact a micro-foundation for building a stable business order in society and enhances the overall resilience of the economic system A lack of or lax enforcement of compliance management can trigger legal litigation and regulatory penalties Negative damage the foundation of integrity in the business ecosystem and ultimately increase the operational risks Impact Upstream Value and trust costs of the entire economic system EmployeesChain Customers Sound internal controls and process compliance can reduce operational errors and waste lowering cost Corporate Medium to Suppliers and Other Business losses Operations Long Term Compliance Opportunity PartnersRigorous corporate governance and compliance performance can enhance credit ratings helping secure Downstream Operations Shareholders/Investorspreferential loan rates and greater investor support Value Chain Violations of industry standards commercial regulations or listing rules may result in fines litigation and production suspension for rectification Risk Investigations rectifications or supply chain audits triggered by non-compliance can disrupt production and operations and affect order delivery Effective intellectual property protection can incentivise corporate innovation investment safeguard Positive Impact R&D outcomes and establish clear property rights rules for society-wide knowledge creation and technological innovation activities Ineffective intellectual property protection could lead to the loss of core technologies or a proliferation of Negative counterfeit activities trapping industrial development in a cycle of low-level imitation and vicious price Impact Upstream Value competition EmployeesChain Customers Establishing an exclusive market advantage under legal protection through patents and trade secrets Corporate Medium to Suppliers and Other Business Intellectual supports product pricing power and high gross profit margins Operations Long Term Opportunity Partners Property Licensing revenue can be generated directly through the licensing or transfer of intellectual property (IP) Downstream Shareholders/Investors Protection or business can be expanded through technology equity contributions Value Chain Facing infringement litigation could result in substantial compensation payments and court orders to cease the sale of related products causing a sharp decline in revenue Risk If a company's own intellectual property has defects it may face the termination of licences claims from partners or even a ban on the sale of its products in key markets A robust system for information security and privacy protection is not only fundamental to compliant business operations but also effectively safeguards customer and employee data security providing Positive Impact a trusted foundation for building a secure and regulated market environment and promoting digital innovation Inadequate information security measures or vulnerabilities in privacy protection directly threaten Negative corporate data assets and trade secrets damage customer trust increase legal and operational risks Upstream Value Impact and may disrupt the industry's security ecosystem hindering technological innovation and healthy Chain Employees market development Corporate Customers Medium to Information A secure and reliable brand image can enhance product/service premiums and serve as an entry permit Operations Suppliers and Other Business Long Term Security for highly regulated markets (such as the EU) Downstream Partners and Privacy Opportunity Proactive privacy-by-design reduces compliance complexity and provides a compliant foundation for Value Chain Protection data-driven innovative businesses (such as artificial intelligence and precision marketing) Facing class-action lawsuits civil compensation claims and severe penalties from regulatory authorities due to leaks of customer/user private data Risk The company’s reputation and brand value are severely damaged leading to a large-scale loss of customers breakdowns in partner relationships and weakened market competitiveness High Medium Low 272025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices EESSGG议 To题pic IIROs 描De述scription 价Va值lu链e Chain Posi位tio置n 受A影ffe响c的ted利 S益ta相ke关ho方lders 影 I响m周pa期ct 影响Im规pa模ct Period Magnitude A robust risk management system can effectively safeguard the rights and interests of all stakeholders Positive Impact and contributes to maintaining the long-term stability of social and environmental order Negative If a company’s risk management is flawed operational incidents or emergencies could harm the rights and Impact interests of stakeholders and cause damage to society and the environment Upstream Value Employees Chain Customers Excellent risk management capabilities help secure more favourable financing terms and a lower cost of Corporate Suppliers and Other Business Short to capital Opportunity Operations Partners Medium Term Winning the continued favour of long-term investors optimising the shareholder structure and Risk Downstream Shareholders/Investorssupporting long-term valuation Management Value Chain Community and the PublicNeglecting ESG risks may lead to sudden disruption of the business model and the failure of long-term strategy Risk Being deemed a high-risk company by the market and rating agencies leading to a discount on share price valuation and difficulties in financing Establishing a transparent and efficient stakeholder engagement mechanism helps the enterprise Positive Impact promptly identify expectations and demands thereby promoting the flow of social resources towards sustainable directions If communication mechanisms are ineffective or lack substantive responses it may lead to misunderstandings Negative and conflicts exacerbate information asymmetry weaken social co-governance capabilities and result in Impact imbalanced regional development Corporate Medium to Shareholders/Investors Stakeholder engagement can build deep social trust and brand loyalty Operations Long Term Stakeholder Opportunity Proactively resolving potential conflicts through dialogue transforming ESG challenges into new Engagement business opportunities and collaborative projects Failure to establish effective channels will prevent the timely identification of operational risks and social trends Risk Strategic decisions made without the perspective of stakeholders are detached from reality and have an increased probability of failure A sound corporate governance structure helps protect the rights and interests of investors and Positive Impact shareholders builds a fair and transparent market environment promotes effective capital allocation and provides institutional support for sustainable economic growth If corporate governance mechanisms are flawed or supervision is ineffective it will not only directly harm Negative investor rights and distort resource allocation efficiency but may also trigger a crisis of market confidence Upstream Value Impact Employees hindering the healthy development of capital markets Chain Customers Corporate Medium to An efficient system of powers and responsibilities and internal control processes can minimise Suppliers and Other Business Operations Long Term Corporate operational errors and fraud and maximise resource utilisation efficiency PartnersOpportunity Downstream Governance Transparent fair and shareholder-responsible governance practices are the cornerstone of attracting Shareholders/InvestorsValue Chain and retaining long-term value investors The failure of the Board of Directors and the absence of oversight lead to major strategic decision-making errors Risk Shareholder rights are not protected causing investors to 'vote with their feet' which leads to financing difficulties High Medium Low 282025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Step 3: ESG Topic Impact and Financial Materiality Assessment Impact Materiality Assessment The Company has established a double materiality issue assessment process to conduct a comprehensive evaluation of the impact materiality and financial materiality of each issue based on stakeholder survey results In 2025 the Company selects the maximum value between the positive and negative impacts of using set thresholds to screen for and form impact materiality issues financial materiality issues and double each issue to represent its impact materiality using the average value as the materiality threshold materiality issues; for impact materiality its significance is assessed from both positive and negative dimensions whereby issues above the average are considered to have impact materiality with the assessment by combining factors such as magnitude scope likelihood of occurrence and irremediability while for financial dimensions and calculation methods for their positive and negative impacts as follows: materiality its significance is assessed from the perspectives of financial risks and opportunities by considering the degree of impact of the relevant issues on financial indicators and their likelihood of occurrence.Impact Type Assessment Dimension Score Calculation Evaluation Dimensions Evaluation Factors Positive Degree of Impact1 Positive Impact = (Weight × Degree of Impact) × Magnitude of Impact Likelihood of Occurrence (Weight × Likelihood of Occurrence) Impact Higher Positive Impact than the Negative Degree of Impact2Scope of Impact Negative Impact = (Weight × Degree of Impact) × Impact Threshold Impact Likelihood of Occurrence (Weight × Likelihood of Occurrence) Materiality Likelihood of Occurrence Negative Impact Irremediability (Negative Impact Only) Financial Materiality Assessment During the Reporting Period we used the maximum value between the risks and opportunities of each issue to represent its financial materiality and took the average value as the materiality Evaluation Dimensions Evaluation Factors threshold with issues above the average value being considered financially material issues; the risk and opportunity assessment dimensions and calculation methods are as follows: Higher Financial Risk Magnitude of Impact than the Threshold Impact Type Assessment Dimension Score CalculationFinancial Materiality Degree of Impact Risk = (Weight × Degree of Impact) × (Weight × Risk Financial Likelihood of Likelihood of Occurrence Likelihood of Occurrence) Opportunity Occurrence Degree of Impact Opportunity = (Weight × Degree of Impact) × Opportunity Likelihood of Occurrence (Weight × Likelihood of Occurrence) Double Materiality Topic Assessment Process 1Includes impact magnitude and scope of impact.2Includes impact magnitude scope of impact and irremediability. 29 Double Materiality Topic Topic of Impact Materiality Topic of Financial Materiality Set Threshold Set Threshold2025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Step 4: Prioritization and Matrix of Double Materiality Issues Based on the results of the stakeholder questionnaire survey we developed a double materiality matrix. During the Reporting Period a total of 5 double materiality issues 4 financial-only materiality issues and 7 impact- only materiality issues were identified.Topics of Impact Materiality Only Employee Rights and Welfare Compliance Operations Employee Rights and Welfare Occupational Health and Safety Corporate Governance Risk Management Corporate Governance Environmental Compliance Management Anti-commercial Bribery and Product Quality and Safety Anti-commercial Bribery and Anti- Industry Cooperation and Development Anti-corruption Technology Innovation corruption Information Security and Privacy Responses to Climate Information Security and Privacy Protection Protection Change and Clean Occupational Health and Safety Technology Development Environmental Compliance Management Industry Cooperation and Topics of Financial Materiality Only Development Sustainable Supply Chain Management Human Capital Development Energy Management Sustainable Supply Chain Customer Relationship Management Intellectual Property Protection Water Resources Management Management Emissions and Waste Customer Relationship Management Management Stakeholder Engagement Human Capital Ecosystem and Biodiversity Development Double Materiality Topics Protection Intellectual Property Circular Economy Protection Compliance Operations Technology Innovation Equality and Diversity Risk Management Responses to Climate Change and Social Contribution and Rural Product Quality and Safety Clean Technology Development Revitalization Financial Materiality 30 Impact Materiality2025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices The Company conducts comprehensive risk control and governance for the identified double financial and impact materiality issues formulates management measures continuously tracks performance to form a closed-loop management system and the relevant issues and corresponding chapters are shown in the table below.Issue Materiality Corresponding Issue Materiality Corresponding Material Issue SDGs Material Issue SDGs Dimension Level Report Chapter Dimension Level Report Chapter Responses to Climate Change and Double Responses to Technology Double Product R&D and Clean Technology Materiality Climate Change Innovation Materiality Innovation Development Environment Social Environmental Environmental Sustainable Impact Sustainable Supply Financial Compliance Compliance Supply Chain Materiality Chain Management Materiality Management Management Management Product Quality and Double Strengthening Risk and Compliance Double Safety Materiality Quality Control Compliance Operations Materiality Management Protection of Employee Rights Impact Employee Rights Risk and and Welfare Materiality Double and Interests Risk Management Compliance Materiality Management Human Capital Financial Talent Cultivation Anti-commercial Development Materiality and Development Impact Bribery and Anti- Business Ethics Materiality Social Governance corruptionOccupational Health Impact Occupational and Safety Materiality Health and Safety Intellectual Property Financial Product R&D and Customer Customer Protection Materiality Innovation Financial Relationship Relationship Materiality Management Management Corporate Impact Corporate Governance Materiality Governance Industry Impact Product R&D and Cooperation and Information Information Materiality Innovation Impact Development Security and Privacy Security and Materiality Protection Privacy Protection 312025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Material Issues Covered in This Chapter SDGs Addressed in This Chapter Corporate Governance Anti-commercial Bribery and Anti-corruption Governance Compliance Operations Information Security and Privacy ProtectionRisk Management Stakeholder Engagement 322025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Corporate Governance Corporate Governance Structure Lead Intelligent strictly complies with laws regulations and supervisory requirements such as the Company Law of the People's Republic of China the Securities Law of the People's Republic of China the Code of Corporate Governance for Listed Companies and the Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange and has established a sound internal governance structure with clear rights and responsibilities and efficient collaboration. The Company's highest authority is the Shareholders' Meeting which exercises core rights including the election and replacement of directors and the review of major matters in accordance with the law.Within the scope of authority granted by the Shareholders' Meeting the Company has established a Board of Directors which is responsible for formulating business policies reviewing important business matters and supervising the performance of management personnel. The Board of Directors has four specialized committees: the Strategy Committee the Audit Committee the Remuneration and Appraisal Committee and the Nomination Committee to further refine professional supervision and governance functions. The management is appointed by the Board of Directors and is responsible for the execution of specific affairs and daily business management.In 2025 in active response to the latest revised requirements of the Company Law of the People's Republic of China the Company abolished the Board of Supervisors and the Position of Supervisor merging their relevant powers and responsibilities into the Audit Committee under the Board of Directors to further optimize the governance hierarchy and enhance supervisory efficiency.During the Reporting Period the Company was recognized in the ‘2025 Typical Practice Cases for the Boards of Listed Companies’ by the China Association for Public Companies.Shareholders' Meeting Key Performance During the Reporting Period Board of Directors 4 Shareholders' meetings Proposals convened 34 reviewed Remuneration and Proposals subject to separate vote counting Nomination Strategy Committee Audit Committee for small and medium-sized shareholders Appraisal Committee Committee 34 Management 9 Board of Directors Director Proposals reviewed meetings convened 100% attendance rate 66 and approved Corporate Governance Structure 332025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Independence of the Board Diversity Board of Directors Lead Intelligent strictly selects and appoints directors in accordance with the Articles of Association giving full consideration to diversity in terms The Company places great emphasis on the key role of of gender culture educational background and professional skills to scientifically optimize the composition and skill set of the Board ensuring independent directors in the standardized performance and the scientific rigour and effectiveness of its decision-making.scientific decision-making of the Board of Directors. It has formulated the Working System for Independent Directors which explicitly requires that the number of independent directors shall Key Performance not be less than one-third of the total number of Board members including at least one accounting professional. Independent During the Reporting Period directors must constitute the majority of members in the Audit Committee Nomination Committee and Remuneration and Female Percentage of Appraisal Committee and serve as conveners. The system 2 directors 28.57% the Board also stipulates that independent directors must maintain their independence shall not be employed by the Company or hold senior management positions and shall not be immediate family members of the Company's management personnel. In terms of business and service relationships independent directors are prohibited from holding positions at the Company's major Professionalism of the Board of Directors customers or suppliers from signing personal service contracts The members of the Board of Directors of Lead Intelligent possess extensive educational backgrounds and professional experience in fields with the Company and from holding management or compliance such as new energy manufacturing intelligent equipment financial accounting legal compliance and corporate management. They prudently positions in intermediary agencies that provide services such as evaluate the Company's strategy and operational decisions from multiple perspectives scientifically manage risks and enhance the quality of consulting or auditing to the Company. Through these provisions scientific decision-making and governance effectiveness providing solid support for the Company's sustained and steady growth. Concurrently the Company ensures that independent directors are free to continuously strengthen the performance capabilities of its directors the Company conducts specialized training for them covering topics from interference by the Company major shareholders actual such as the standardized operation of listed companies compliance management business ethics risk control management and ESG thereby controllers and other stakeholders enabling them to provide genuinely enhancing the directors' understanding and management capabilities concerning relevant laws regulations and policies.objective opinions on major business decisions related-party transactions and the performance of senior executives based on their diverse professional backgrounds thereby effectively safeguarding the scientific rigour and transparency of the Board's decision-making.Key Performance During the Reporting Period 3 Independent directors 42.86 Percentage of % the Board 342025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Mr Wang Mr Wang Mr You Mr Wang Ms Zhang Mr Dai Ms Huang Members of the Yanqing Jianxin Zhiliang Lei Mingyan Jianjun Siying Executive Remuneration Board of Directors Chairman Executive Executive Executive Independent Independent Independent ManagementDirector Director Director Director Director Director Lead Intelligent places great importance on the standardization Business Strategy √ √ √ √ √ incentive-based nature and sustainability of executive remuneration.With reference to the Working Rules of the Remuneration and Appraisal Committee of the Board of Directors the Company scientifically designs Corporate and rigorously reviews the remuneration plans for directors and √√√√ Governance senior management based on a thorough assessment of corporate operating performance industry remuneration levels and job responsibilities. The Company strictly implements a recusal system Legal Compliance √ for remuneration reviews requiring directors to recuse themselves from matters concerning their personal remuneration to ensure the independence fairness and transparency of remuneration decisions.Concurrently the Company links executive remuneration to ESG Risk Management √ performance ensuring that management assumes responsibility and plays a key role in promoting the achievement of sustainable development goals.Finance and Accounting √ √ Management Related-party Environmental Transaction √ Management Management In accordance with laws regulations and normative documents such Engineering as the Company Law of the People's Republic of China the Securities Law and Technology √ √ √ of the People's Republic of China and the Rules for Listing Stocks on the Management ChiNext Market of the Shenzhen Stock Exchange as well as the Articles of Association and other requirements Lead Intelligent has defined the scope of related parties and relationships basic principles decision- Sustainable making procedures approval authority recusal systems and information Development √ disclosure for related-party transactions. The Company reviews and Management approves anticipated related-party transactions annually to ensure that they align with its actual operational needs that the decision-making process is lawful and compliant and that the pricing and settlement Information Technology √ mechanisms are fair and reasonable. This approach prevents harm to Management the interests of the Company or its shareholders while safeguarding the Company’s operational independence.Professional Backgrounds of Board of Directors 352025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Investor Relations Management Regulated Information Investor Rights Protection Disclosure Lead Intelligent diligently safeguards the legitimate rights and interests of shareholders creditors and other stakeholders.Lead Intelligent strictly adheres to laws regulations and regulatory requirements In accordance with the Guidelines for Investor Relations Management of Listed Companies and other relevant institutional including the Company Law of the People's Republic of China the Rules for Listing requirements the Company fully implements all regulatory provisions concerning investor protection. It continually improves Stocks on the ChiNext Market of the Shenzhen Stock Exchange and the Measures for the its investor relations management mechanisms to foster a standardized transparent and positive interactive relationship Administration of Information Disclosure of Listed Companies. The Company lawfully with investors. The Company also places a high priority on protecting the rights of minority investors strictly enforcing fulfils its information disclosure obligations ensuring that all disclosed content mechanisms that secure shareholders' rights to make proposals and vote. For major issues a special resolution procedure is truthful accurate timely and complete. It also upholds the principle of fair is applied fully upholding the ‘One Share One Vote’ principle to ensure that minority shareholders can lawfully and fairly disclosure to guarantee all shareholders equal access to information. In 2025 the participate in corporate governance and significant decision-making.Company disclosed 175 announcements and received the highest A-level rating for information disclosure from the Shenzhen Stock Exchange for the seventh consecutive year consistently maintaining an industry-leading standard of quality.Investor Communication Honours and Awards Lead Intelligent maintains regular communication with investors continuously During the Reporting Period the Company received: enhancing the professional depth and relevance of these interactions. To address the specific focuses information needs and risk concerns of different types of investors the Company has established point-to-point and differentiated The ‘Shareholder Return Award for Investor Relations Management of a Listed communication mechanisms to improve the effectiveness and precision of Company’ at the 16th Tianma Awards for Investor Relations Management of information delivery. During the Reporting Period the Company participated in and Listed Companies hosted by Securities Times.conducted over 120 domestic and international roadshows and communication The ‘Outstanding ESG Value Communication Award’ at the 6th Panorama events. Golden Awards for Investor Relations hosted by Panorama Network.The ‘Best Investment Value Award’ at the 8th Cailian Press Investment Annual Additionally the Company strengthens information guidance and value Conference.communication. Before and after the disclosure of periodic reports and major The ‘Top 300 Most Popular Listed Companies’ recognition in the 2025 Annual events it proactively releases press releases and in-depth analyses through Selection of Listed Companies hosted by Hithink RoyalFlush.mainstream financial media industry platforms and channels such as Xueqiu. This disseminates rational professional perspectives on the industry and its operations thereby enhancing investors' understanding of the Company's strategy and performance. During the Reporting Period the Company facilitated the publication of over 70 research reports by more than 30 domestic and international brokerage firms. 362025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Risk and Compliance Management Governance Lead Intelligent strictly complies with the relevant laws and regulations in its areas of operation having formulated and refined a The Company has established a comprehensive compliance governance series of institutional documents including the Risk Management System and the Internal Control Manual. It continuously optimizes structure: the Board of Directors serves as the highest decision-making its three-line-of-defense risk governance structure and compliance governance framework clearly defining the responsibilities of body for overall compliance management responsible for formulating each department in risk and compliance management to create a control system with clear authority defined responsibilities and compliance strategies and overseeing their general implementation. The effective coordination. Audit & Supervision Department as the functional department for internal execution and third-party supervision and inspection reports directly to the The Company has constructed a three-line-of-defense risk governance structure: the Board of Directors as the highest decision- Board of Directors. Each business department has appointed a Department making body is responsible for approving overall risk management objectives and determining risk tolerance levels. Within this Compliance Officer responsible for organising internal compliance training framework the various business departments risk management functions and the audit department collectively form the three and regularly submitting departmental compliance materials to the Audit lines of defense ensuring the comprehensiveness and effectiveness of risk management. & Supervision Department thereby forming a top-down company-wide compliance management system.First Line of Defence: Second Line of Defence: Risk Third Line of Defence: Business Department Management Department Audit Department Board of Directors 1. Take compliance management system as the cornerstone Adopt a ‘self-supervision’ approach to The Finance Department Internal Responsible for confirming the 2. Take Code of Business Conduct for regularly self-inspect and self-assess Control Department Legal Compliance operational effectiveness of the first Audit & Supervision Department Employees as the criterion its own risk situations. Department etc. serve as the second and second lines of defence. 3. Take compliance incident handling Identify assess and control risks in line of defense which are responsible Provide independent audit supervision methods as the guidance real-time during daily operations. for assessing the effectiveness of the and evaluation and promptly identify Formulate specific response plans to risk mitigation measures established issues and provide feedback for ensure risk sources are controllable. by various business departments from rectification through special audits Compliance construction a risk assessment perspective. They internal control testing and evaluation also oversee the implementation of risk and other methods. Audit Supervision response plans. Department Department Supervision and inspection Established a dedicated internal control department which is responsible for planning internal control management rules operational mechanisms and Department capacity building. Compliance Officer The Three-line-of-defense Risk Governance Structure Compliance Governance Structure 372025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Strategy The Company deeply integrates risk and compliance management into its overall corporate strategy formulation and execution processes. During annual strategic planning the Board of Directors and senior management systematically assess key risks and potential opportunities in areas such as finance taxation sales the supply chain information security and the external regulatory environment. They also analyse the financial impact of these factors on current and future expectations to inform the formulation of strategic directions and business objectives. Concurrently the Company sets targeted control measures incorporating risk identification assessment and response into daily operations and decision-making processes. This ensures that strategic goals are advanced effectively within a compliant and controlled framework achieving a synergistic implementation of risk prevention and business development.Impacts Risks and Opportunities Management Risk Management Lead Intelligent has established a systematic risk management process that clarifies the standards and responsibilities for core stages including risk identification assessment response and control. This provides unified management guidance for all business departments ensuring that risk management activities are standardized efficient and collaborative.Risk Identification Risk Assessment Risk Response and Control The Company widely collects and integrates The Company conducts risk assessments The Company formulates response strategies for different risk characteristics by balancing costs internal and external information related to b a s e d o n t h e l i ke l i h o o d i m p a c t a n d and benefits thereby keeping risks within an acceptable range. All departments report risk events the macroeconomy laws and regulations controllability of risks using a combination to the management in a timely manner according to their responsibilities and the management market competi t ion and technological of qualitative judgement and quantitative responds promptly through close monitoring and guidance. During the Reporting Period all key risk i n n ova t i o n t o c o n d u c t sy s t e m a t i c r i s k i n d i c a t o r s ( s u c h a s l i q u i d i t y m e t r i c s indicators were within a controllable range with no significant anomalies or situations requiring an identification. I t has also established a exchange rate f luctuat ions number of escalated response. The Company continues its routine monitoring and adjusts its countermeasures monitoring and communication mechanism patents and number of adverse events). in response to changes in the internal and external environment.that connects business operations with These assessments are prioritized by risk level management ensuring that significant risks to guide internal control optimization and The Company has formulated and implemented comprehensive policies and procedures to ensure are reported and responded to in a timely resource allocation. the effective execution of management decisions and the control of risks. Departments have and effective manner. The internal control established rules regulations and control measures in key areas such as strategy R&D finance management depar tment dynamical ly legal affairs quality safety environmental protection and market operations all centred on identifies potential risks through methods risk management objectives to ensure the effective operation of internal control mechanisms.such as r isk checkl is t rev iews process Simultaneously the Company embeds internal control requirements into its front-end business analys is and f inancial analys is whi le systems strengthening rigid internal control constraints through process standardization and the internal audit department conducts automated controls to enhance the systematic and forward-looking nature of risk prevention and independent assessments and supervision control.based on a risk-oriented approach.Risk Management Process 382025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices The Company continuously improves its emergency risk management mechanism to respond Tax Compliance Management swiftly to sudden risks and potential negative impacts. For common operational risks (such as safety incidents customer complaints and IT system failures) the Company has developed Lead Intelligent strictly adheres to national tax laws and regulations and actively promotes tax compliance comprehensive emergency plans and handling procedures; in the event of major deviation management. The Company is committed to paying taxes in accordance with the law filing returns and incidents (like financial anomalies or data breaches) the relevant departments immediately paying various taxes such as value-added tax and corporate income tax on time while also leveraging initiate internal reviews to analyse the causes and formulate corrective measures; and for internal self-inspection mechanisms and external professional consulting to establish and implement the matters involving cross-departmental or significant impacts the management takes the lead Tax Management System achieving standardized tax processes and controllable risks to ensure global tax in establishing ad-hoc working groups to coordinate resources and drive timely responses and information is transparent and traceable.rectifications ensuring risks are effectively controlled and addressed.In 2025 the Company conducted multiple tax compliance training sessions focused on overseas business. The The Company continues to advance the development of a comprehensive risk culture training covered the analysis of key clauses case studies permanent establishments and related tax impacts strengthening risk awareness and management practices among all employees. In 2025 the and countermeasures effectively enhancing employees' tax risk awareness and operational capabilities in Company conducted 8 risk-related management training sessions for key positions including international business.senior executives finance personnel and business operators as well as for all staff. It also published 8 articles on risk awareness and promotion via WeCom achieving a total of 12000 views and effectively increasing employees’ awareness of and engagement in risk prevention and control. Internal Control Compliance Management Lead Intelligent continuously improves its internal control mechanisms employing various methods such as special audits key control point inspections data anomaly analysis and employee interviews to identify and Special Compliance Initiatives assess internal control risks.Lead Intelligent continuously promotes the deep integration of compliance management and Special Audits Key Control Point Data Analysis Employee Inspections Interviews comprehensive risk management relying on a standardized risk assessment system to achieve real-time awareness and closed-loop control of compliance risks. The Company organises annual compliance risk identification and assessment activities for all business departments to ensure that Conducting Inspecting the Conducting Data Interviewing risk management is controllable throughout the entire process. Special Internal Design and Anomaly Analysis Personnel in In 2025 the Company focused on core issues such as tax management customs management Control Audits Execution of Key to Identify Potential Relevant Positions and export control to conduct special compliance risk inspections. In terms of tax management the for High-risk Control Points Control Failure to Understand Company conducted internal self-inspections for tax compliance and underwent examinations by Processes Points Practical Issues in external tax authorities continuously optimizing control processes and rectifying risk areas through Process Execution these internal and external reviews to effectively reduce tax-related risks. In customs management the Company completed import qualification applications for three overseas subsidiaries continually strengthening trade compliance risk control to ensure the compliant operation of its overseas business. 392025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices The Company fully incorporates significant ESG risks into its corporate internal control system and establishes specific control points within the Internal Control Matrix. Under the ‘Social Responsibility’ process key control measures cover environmental protection and resource conservation production safety management product quality management and the promotion of employment and protection of employee rights and interests; the ‘Internal Information Communication’ process explicitly includes measures such as internal reporting mechanisms and anti-fraud management. In 2025 the Company included the aforementioned ESG control points in the scope of its annual internal control self-assessment completing updates and testing without finding any material weaknesses or anomalies. This fully demonstrates the Company’s systematic identification control and continuous supervision of ESG risks in its internal management.The Company integrates emerging risks into its overall risk management framework. In daily operations the Company dynamically adjusts control measures in response to changes in the regulatory environment such as implementing cybersecurity regulations advancing the signing of consents for facial information use and IT data classification and access control. Simultaneously the Company focuses on climate change risks.In 2025 it organized employee participation in training on dual-carbon goals and corporate carbon management to strengthen awareness of and response capabilities for emerging risks like climate transition.Metrics and Targets Management Targets Adhere to the Basic Standard for Enterprise Internal Control and its supporting guidelines Enhance the comprehensive risk management system build a dynamic risk identification continuously deepen the construction of the internal control system refine internal control mechanism strengthen quantitative risk assessment capabilities and establish a closed- systems standards and processes and strengthen internal control evaluation and loop risk response mechanism supervision Management Progress During the Reporting Period Have promoted the stringent implementation of internal control requirements in key Have been continuously improving risk management systems and processes clarifying business processes by optimising the internal control manual internal control matrix and the duties and authorities of each department in risk management and promoting the specialised management systems in various fields as well as by refining internal control integration of risk management with daily operations processes and key control points Have identified weak links and potential risk points in operational processes construct a Have conducted internal control evaluation and supervision to ensure the effective risk assessment model combining qualitative and quantitative methods implement risk implementation of management requirements classification and grading management strategies and formulate a closed-loop response Have completed 9 internal control audits of key business processes during the Reporting plan for the entire process Period Have completed 8 audits of overseas business 12 operational audits of affiliated companies and 23 audits of high-risk areas during the Reporting Period 402025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Business Ethics Business Ethics and Anti-corruption Management Business Ethics Governance Structure Business Ethics Management Lead Intelligent integrates ‘Integrity’ into its corporate core values strictly The Company attaches great importance to business ethics risk management incorporating it into the annual priorities for internal adheres to the laws and regulations applicable to the Company's business audit and compliance work and building a multi-level multi-channel supervision and control system. In 2025 the Company activities and with reference to international conventions and practices has implemented multi-dimensional controls through various methods including online reporting offline inspections high-risk area formulated and implemented a series of normative management systems investigations and self-examination and correction. During the Reporting Period it completed 23 business ethics-related risk audits including the Code of Business Conduct for Employees Integrity Management identifi ed 68 issues and had supervised the rectifi cation of 70% of them by the end of the period with rectifi cations expected to be System Tendering and Bidding Management System Procurement Management completed within an average of three months of discovery thereby eff ectively promoting closed-loop risk management.Procedures and Financial Management System which clarify the Company's code of conduct and management standards in areas such as anti-corruption At the same time the Company extends its business ethics and compliance requirements to partners through policies such as the and anti-bribery conflicts of interest antitrust and anti-unfair competition Supplier Anti-commercial Bribery Declaration and the Code of Integrity for Procurement Activities which define strict standards for anti- anti-money laundering and responsible marketing; these standards apply commercial bribery responsible procurement and anti-unfair competition. For non-compliant suppliers the Company strictly to all employees of Lead Intelligent and its subsidiaries and also require all implements an accountability mechanism and in accordance with the law refers cases of suspected illegal activity to judicial stakeholders with business dealings with the Company (including suppliers authorities for handling. In 2025 the Company initiated investigations into 24 cases of fraud resulting in action against 21 individuals; service providers contractors and customers) to strictly comply with the cases of a serious nature suspected of involving criminal off ences are resolutely handed over to judicial authorities and there were 0 relevant regulations ensuring eff ective management of business ethics across concluded litigation cases for corruption during the Reporting Period; 15 suppliers were penalized for breach of contract after violating the entire value chain. the terms of the Company's Supplier Anti-commercial Bribery Declaration1.The Company coordinates the advancement of business ethics management Key Performance within its overall compliance governance framework incorporating issues such as anti-corruption and anti-unfair competition into the key supervision During the Reporting Period scope of its compliance management system. With respect to anti-corruption management the Company has established a management structure guided 100 Signing rate for the employee Signing rate for the letter by the Board of Directors' Audit Committee and centred on the internal Audit % integrity commitment letter 100% of integrity to suppliers & Supervision Department forming a relatively independent management review and supervision mechanism to ensure that integrity and compliance Incidents of money requirements are effectively implemented in all aspects of the Company's 0 laundering or insider trading operations and management continuously fostering a business environment of integrity transparency and compliance. Continuously maintained and effectively operated the ISO 37001 Anti-bribery Management System2 1The scope of data statistics covers Lead Intelligent and its controlled subsidiaries located within China. Lead Intelligent’s ISO 37001 Anti-bribery 2The scope of this system certification covers Wuxi Lead Intelligent Equipment Co. Ltd. (single entity). Management System Certifi cation 412025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Building a Business Ethics Culture Key Performance Lead Intelligent continues to strengthen the development of its business ethics culture building a systematic multi-layered and classified business ethics training system. In 2025 the Company conducted 33 business During the Reporting Period ethics training sessions achieving a 100% coverage rate. Among these the Company organized 12 specialised Employee coverage for training sessions for the procurement line 11 for business departments and 4 quarterly compliance and integrity training sessions. Additionally 6 integrity training and related promotional sessions were conducted 100% business ethics training for suppliers. Through its internal platform 57 articles on business ethics were published continuously reinforcing the compliance and integrity awareness of both employees and suppliers and promoting the 11 Directors and senior executives Training effective implementation of business ethics requirements in daily operations and management. receiving anti-corruption training 100% coverage Fair Competition and Complaint Management and Whistleblower Responsible Marketing Protection Lead Intelligent strictly complies with the Anti-unfair Competition Law Lead Intelligent has formulated the Regulations on Complaint and Whistleblowing Management to standardize complaint and whistleblowing of the People's Republic of China the Antitrust Law of the People's Republic procedures and ensure the efficient operation of internal and external complaint and monitoring mechanisms. The Company encourages all of China the Advertising Law of the People's Republic of China and other employees suppliers customers and other stakeholders to report any misconduct that harms the interests of the Company and its employees.relevant laws and regulations systematically building and improving It has established multiple reporting channels including a WeChat official account a whistleblowing hotline and an email address to its anti-unfair competition and Antitrust management systems. The continuously maintain the accessibility and effectiveness of these internal and external mechanisms.Company adheres to fair and orderly market competition upholds the principles of business integrity and explicitly prohibits obtaining The Company designates the Audit & Supervision Department as the centralized management body for all reporting channels responsible for cooperation opportunities through commercial bribery or other handling the receipt review investigation and notification of reported matters as well as channel development promotion whistleblower protection improper means. In product sales and business negotiations prices and rewards. In 2025 the Company’s business divisions appointed 56 dedicated compliance personnel to assist the Audit & Supervision Department are strictly determined based on market mechanisms to ensure the in its work. The Company reviews and assesses all received complaints and leads and depending on the nature and severity of the case the Audit & pricing process is fair and transparent. Concurrently the Company has Supervision Department either launches an investigation or refers it to the Human Resources Centre and relevant business management departments established and enhanced a contract compliance review mechanism for handling. If an investigation confirms that a case involves corruption bribery or other illegal or criminal activities (including accepting bribes as a embedding anti-unfair competition and Antitrust requirements into non-public official misappropriation of funds embezzlement or theft) the Audit & Supervision Department after completing its internal investigation the contract management process. It conducts special checks on key procedures will resolutely transfer the case to public security authorities and hold the responsible individuals strictly accountable safeguarding the transaction terms to ensure contract content complies with legal and Company's compliance principles. For substantiated cases the Company provides rewards to the whistleblowers.regulatory requirements and effectively prevents compliance risks. The Company encourages employees to report under their real names and pledges to strictly protect the confidentiality of whistleblowers' During the Reporting Period the Company had no incidents of non- identities and the investigation process with a zero-tolerance policy for any form of discrimination or retaliation. The accused party is prohibited compliance related to unfair competition or Antitrust behaviour. from retaliating or instigating others to retaliate against the whistleblower. Once discovered the Company will handle such actions severely and On this basis the Company is committed to responsible marketing cases involving suspected illegal or criminal activities will be handed over to public security authorities.and product promotion advancing the establishment of a responsible marketing system that covers the entire process of Key Performance Hotline: +86 18795605971 sales marketing product and after-sales services. All advertising Email: compliance@leadintelligent.com and marketing activities undergo strict internal review to ensure During the Reporting Period WeChat Official Account: Report via the ‘Complaint & their content is accurate and compliant. We continuously enhance Whistleblowing’ Section of the ‘Lian Zheng Xian Dao’ the compliance capabilities of our marketing teams prohibiting all Valid complaints Business ethics-related (Integrity Lead Intelligent) Official Account non-compliant and unfair competitive practices. The Company also 33 received 28 complaints included By letter or in person: Audit & Supervision Department Wuxi encourages its subsidiaries joint ventures partners and related Lead Intelligent Equipment Co. Ltd. No. 18 Xinzhou Road parties to actively practise responsible marketing principles jointly Percentage of complaint and National High-tech Industrial Development Zone Wuxi fostering a fair and honest market environment. 100% whistleblowing handling rate Jiangsu Province 42 接收有效投诉其中商业道德类投诉举报处理率 33起28起100% Reporting Channels2025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Information Security and Privacy Protection Information Security Management Information Security Management System In accordance with the Data Security Law of the People's Republic of China the Cybersecurity Law of the People's Republic of China the Personal Information Protection Law of the People's Republic of China the EU's General Data Protection Regulation (GDPR) and other relevant laws and regulations in its operating locations Lead Intelligent continuously improves its information security management system. The Company formulates and optimizes a series of management policies to standardize information security requirements in business operations ensuring the eff ective protection of information security and compliance across all business segments including operations R&D the supply chain and customer service.The Company has established a comprehensive information security governance structure with an Information Security Committee chaired by the Chairman to oversee all information security management work. Reporting to the committee the Information Security Department is responsible for daily operational management and independently carries out various tasks in line with the Company's information security strategy ensuring the eff ective implementation of policies and risk control measures.In 2025 the Company introduced new policies such as the Specifi cation for Seal Management and the Backup and Recovery Management Process. It also revised regulations including the Information Security Incident Management Procedure the Regulations on Rewards for Reporting Information Security Incidents and the Notice on Security and Confi dentiality for Suppliers further refi ning and strengthening its information security management framework.The Company established its ISO 27001 Information Security Management System in 2017 adopting the PDCA (Plan Do Check Act) cycle management method to comprehensively protect company information assets in terms of confi dentiality integrity and availability. During the Reporting Period the Company completed its routine ISO 27001 surveillance audit and the system continues to operate eff ectively1.To further enhance global information security governance capabilities the Company and its German subsidiary each obtained their initial TISAX AL2 level certification in 2023. During the Reporting Period the Company passed the triennial TISAX AL2 level recertification and expanded the scope of certified entities.The German subsidiary will undergo its recertifi cation in 2026 continuously consolidating the foundational capabilities of global information security management2.ISO 27001 Information Security Management Systems Certifi cation for Lead Intelligent and its Subsidiaries 1The scope of this system certification covers Wuxi Lead Intelligent Equipment Co. Ltd. and its following controlled subsidiaries: Jiangsu Lead Technology Co. Ltd. Jiangsu Lead Hydrogen Intelligent Equipment Co. Ltd. and Zhuhai Titans New Power Electronics Co. Ltd.; the geographical boundary encompasses its four main production bases located within China.2The scope of this system certification covers Wuxi Lead Intelligent Equipment Co. Ltd. and its following controlled subsidiaries: Jiangsu Lead Technology Co. Ltd. and Lead Intelligent Equipment (Deutschland) GmbH. 432025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Information Security Risk Control Information Security Emergency Management Lead Intelligent has built a systematic and regular information Lead Intelligent links information security incidents to departmental information security risk control performance and has established a security risk control mechanism and formulated the ISMS Risk systematic performance evaluation mechanism to enhance emergency response and preventive management. For data leakage incidents Management Procedure . Centred on r isk identification and the Company uses information security DLP (Data Loss Prevention) alerts for blocking and logging and handles them in accordance with assessment it implements multi-layered protection and closed-loop laws and regulations in conjunction with the audit and legal departments. For business system security incidents the Information Security control to achieve dynamic monitoring scientific analysis precise Department together with the Information and Digital Technology Centre has formulated the Control Process for Business System Information response and continuous tracking of risks ensuring comprehensive Security Emergency Plans set up a dedicated response team and defined clear handling procedures. In terms of proactive prevention the protection of information assets. The Company regularly updates Company identifies risks through special internal audits on-site inspections and phishing drills. It also optimizes data security warning its information asset and risk inventories annually conducting risk and interception strategies and has built a security log big data platform to ensure comprehensive information security protection from assessments and treatments which are reported at the information prevention and monitoring to emergency response.security management review meeting. For items where the risk value exceeds the prescribed threshold the information security organization collaborates with the responsible departments to Information Security Testing and Auditing formulate risk mitigation measures. After reassessment the risk acceptance is reported to the management review meeting for The Company regularly conducts information security tests and internal and external audits across all business processes to continuously approval achieving closed-loop risk management. identify potential risks verify the effectiveness of protective measures and promote the implementation of corrective actions thereby strengthening the overall level of information security protection.The Company requires all employees to immediately report any information security incidents system vulnerabilities or suspicious activities to the information security team to enable a rapid response and effective resolution of security issues. Internal audits of the information security management system: 42 in total for the year including 29 special system audits and 13 special IT audits Security testing and monitoring: Company-wide phishing email drill once every six months company- Internal wide information security awareness phishing test once per quarter physical security review once per Information security issue feedback channel month and one round of routine security inspections per week Information security emergency response testing: Once every six months WeCom E-mail: ismc@leadintelligent.com Third-party ISO 27001 audit: Once per year Phone: 0510-80526699 External Third-party TISAX certification: Once every 3 years; recertified and passed in 2025 External penetration testing: Once per year 442025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices In terms of supply chain information security management the Company has formulated the Supplier Security and Confidentiality Notice applicable to all suppliers. This notice specifies the information security Privacy Protection Management obligations that suppliers must adhere to including security and confidentiality management for visitors Lead Intelligent continues to enhance its privacy protection management system. The Information Security information security assurance for products and services and undergoing regular or ad-hoc information Management Representative and the Chief Data Officer (CDO) jointly serve as the Data Protection Officer security audits. Concurrently the Company closely integrates information security requirements with key (DPO) responsible for data protection decisions across the Company. Each department is equipped with processes such as supplier qualification reviews contract signing development process management an Information Security Specialist (ISS Specialist) who handles daily data privacy awareness inquiries and performance evaluations. This approach effectively prevents information security vulnerabilities and and management as well as internal privacy data anomalies. ISS Specialists report their daily work to the compliance risks arising from supplier delivery defects continuously enhancing the information security Information Security Department while receiving guidance and support from their departmental leadership capabilities of the entire supply chain.forming a closed-loop system of top-down management supervision and bottom-up execution feedback.This ensures the Company’s privacy protection efforts operate efficiently and in compliance with regulations.Key Performance To safeguard the privacy and personal information rights of customers employees and other stakeholders the Company has developed the General Data Protection Management Standards and Procedures. This is During the Reporting Period based on the Personal Information Protection Law of the People's Republic of China and the EU's General 0 Number of data breach incidents major information Data Protection Regulation (GDPR) tailored to its business realities. The document clarifies the rights of data security incidents or related litigation subjects and how to exercise them information transfer channels data management and audit procedures and complaint handling processes. This establishes a comprehensive privacy protection mechanism that ensures personal information is handled legally securely and controllable throughout its collection storage Building an Information Security Culture use and transmission.Lead Intelligent strictly adheres to the principle of minimization restricting data access based on the The Company continues to foster an information security culture of full participation and proactive responsibilities of each business department to ensure the security of customer privacy and business defence. In 2025 the Company organized 46 information security training sessions launched two data. The Company implements tiered access control requiring special applications for core data which compulsory courses for all employees on Lead Intelligent e-Learning and conducted quarterly is accessible only to specific positions and periodically reviews personnel permissions to identify potential examinations for all staff to ensure the continuous improvement of their information security awareness risks. All business documents are encrypted. In 2025 a file classification and control system was launched and capabilities. The Company also periodically issues information security promotional announcements to enforce strict management auditing and access prevention for customer information and highly and displays awareness videos on a loop on public screens to deepen employee understanding. sensitive data. The Company has also established a comprehensive training and assessment mechanism Furthermore in response to any violations the responsible departments are required to provide evidence for employee privacy protection. New employees receive systematic training upon joining followed by of internal training and education. This reinforces the primary responsibility of business departments compulsory courses on Lead Intelligent e-Learning and quarterly exams to ensure full coverage of privacy in information security management creating a closed-loop mechanism driven by both institutional protection awareness and operational skills. Through these measures Lead Intelligent has earned a high constraints and cultural education. level of trust from top-tier global clients successfully undertaking multiple high-confidentiality high-value core projects.Key Performance During the Reporting Period 0 Number of major incidents involving the leakage or infringement of privacy for internal or external stakeholders 452025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Material Issues Covered in This Chapter SDGs Addressed in This Chapter Product Quality and Safety Customer Relationship Value Chain Technology Innovation ManagementSustainable Supply Chain Industry Cooperation and Management Development 462025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Product R&D and Innovation Governance Impacts Risks and Opportunities Management Lead Intelligent has established a comprehensive mechanism for transmitting technology innovation. Two major research institutes R&D and Innovation Management coordinate core technology breakthroughs and cutting-edge innovation R&D and they lead technology implementation and R&D and Innovation System pilot-scale conversion. Meanwhile various business divisions focus on productisation development and market application. This Adhering to the innovation philosophy of ‘Independent Innovation to Make Itself Intelligent’ Lead Intelligent has constructed an R&D and innovation creates a clearly structured collaborative and efficient technology system that covers the entire chain from basic research to application development.innovation and development system. The Company has also The Company has built a multi-level comprehensive R&D support platform providing a solid foundation for technology innovation. In terms of built a complete institutional framework centered on technology layout the Company has established a global R&D network gathering talent through its R&D centres in Wuxi (headquarters) Shanghai South innovation results transformation and technical coordination China and Europe. Regarding qualifications it is recognized as a National Technology Innovation Demonstration Enterprise a key high-tech management providing strong inst i tut ional suppor t for enterprise under the National Torch Program a champion product enterprise and a benchmark factory for Industrial Internet in Jiangsu Province.continuously enhancing its innovative capacity and technological In terms of platforms it operates 7 R&D institutions at the provincial level or above including the National Enterprise Technology Center the competitiveness. National Postdoctoral Research Workstation the Jiangsu Provincial Enterprise Technology Center the Jiangsu Provincial Li-ion Battery Equipment Engineering Center the Jiangsu Provincial Capacitor Automation Equipment Engineering Technology Research Center the Jiangsu Provincial Postdoctoral Innovation Practice Base and the Lead Intelligent Industrial Design Center. For verification it has a national CNAS certified lab that Strategy conducts comprehensive testing and verification in areas such as artificial intelligence machine vision laser technology structural validation simulation electromagnetic compatibility and human-computer interaction ensuring the reliability and feasibility of its R&D outcomes.Lead Intelligent adheres to its core strategic direction of ‘Agile Leveraging its comprehensive R&D and innovation platform system the Company focuses on technology implementation and enhancing R&D Innovation’. The Company proactively develops new technologies efficiency continuously forging core R&D capabilities adapted to industry characteristics. The Company has prioritized building a digital R&D businesses and markets focusing on breakthroughs in core areas cloud platform that spans the entire process from customer needs to product delivery and it promotes digital twin technology to support the and using innovation to build its core competitiveness. It has construction of Industry 4.0 unmanned factories. In 2025 to better adapt to industry demands such as high customization rapid technological already achieved a global leading position in fields such as Li-ion iteration tight delivery schedules and stringent quality requirements the Company established a market-oriented Integrated Product batteries photovoltaics and hydrogen energy. The Company’s Development (IPD) process management system. This system strengthens component productization and modularization in design methods improving R&D efficiency through platformization and standardization. In process construction it forms an end-to-end closed loop from market deployment for building its independent innovation capabilities insight and requirements management to product planning and project development. In organisational collaboration it ensures efficient and is as follows: optimizing its market-oriented R&D mechanism seamless R&D through a cross-functional team operational mechanism.and improving its two-tier system for technology and product development to accelerate the application and industrialization In 2025 the Company also advanced the optimisation of its R&D and innovation organisational structure by establishing the new Automation of new technologies; maintaining a high level of R&D investment Technology Research Institute and Innovation Research Institute. The Automation Technology Research Institute focuses on automation focusing on the development and introduction of new technologies and intelligence in new energy equipment covering the entire chain from basic research to technology development and further to results processes and equipment and building a comprehensive transformation. This supports the Company's core technology breakthroughs and enhances industrial competitiveness. The Innovation Research innovation incentive mechanism; creating a resource platform Institute concentrates on investigating cutting-edge processes planning new product directions and driving industrialisation and nurturing new that combines talent acquisition with technical cooperation and drivers for future growth.establishing standardized processes for technology development Thus with a solid foundation from the R&D platform integrated digitalization and process management across the entire chain and an optimized projects and an intellectual property protection mechanism; organizational structure the Company has systematically built agile collaborative and sustainable R&D and innovation capabilities.deepening its digital R&D transformation to build an efficient collaborative and integrated R&D innovation platform. 472025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices R&D and Innovation Achievements In 2025 Lead Intelligent achieved multiple breakthroughs in core technology areas such as AI intelligent inspection and solid-state battery dry electrode equipment delivering industry-leading innovative results.AI-empowers intelligent battery welding quality inspection AI predictive maintenance leads industrial new quality productivity In the field of new energy battery manufacturing Lead Intelligent is a pioneer in applying To address the operational and maintenance challenges for Li-ion battery production lines in artificial intelligence to ultrasonic welding inspection. Its independently developed AI the TWh large-scale manufacturing era Lead Intelligent launched the LEADACE PHM predictive intelligent quality inspection system integrates multi-dimensional CT scanning technology maintenance system shifting equipment operation and maintenance from ‘traditional reactive with AI deep learning enabling second-level diagnostic capabilities. Such innovation drives response’ to an era of intelligent asset management. The system deeply integrates multi-source the intelligent and digital transformation of welding workshops ushering battery production heterogeneous data including equipment time-sequence data visual images operational logs into a new era of intelligent quality inspection. and expert experience enabling it to issue equipment failure warnings 7–15 days in advance with a fault prediction accuracy rate improved by more than 25% compared to traditional methods.The system performs CT scan-style diagnosis on the production line simultaneously collecting and analysing over 20 key parameters such as welding energy pressure and In actual production at a leading domestic battery manufacturer the system achieved a 35% current. This allows for comprehensive internal quality control without damaging the battery reduction in fault frequency and a 30% shortening of total downtime within only three months of structure. Since its implementation the production line has achieved 7x24 online monitoring operation generating economic benefits of over RMB 10 million for a single production line. The with the false alarm rate reduced to one part per million and inspection efficiency increased system has successfully served several leading enterprises in the Li-ion battery industry covering by 90%. This not only reduces costs and improves efficiency but also significantly cuts labour over 300 equipment types and safeguarding over 50000 key components in real time.input and operating time.Dry electrode equipment accelerates the mass production Large-scale energy storage intelligent manufacturing solution empowers customers of solid-state batteries to embrace the era of large-scale energy storage Focusing on the entire manufacturing chain of solid-state batteries and targeting key In response to the manufacturing bottlenecks of the large-scale energy storage era Lead Intelligent has breakthroughs in the core technology of dry electrode preparation. Lead Intelligent has introduced a full-stack intelligent manufacturing solution specifically designed for large-capacity and long- launched dry mixing and coating equipment tailored for large-scale solid-state battery duration energy storage. This solution precisely overcomes the challenges of high-speed production for large production lines advancing solid-state batteries from laboratory research to industrial mass 500Ah+ single cells. Through a central intelligent control system it achieves high-speed handling and high- production. precision positioning of heavy materials reaching excellent metrics of over 75% Overall Equipment Effectiveness (OEE) over 93% first-pass yield and over 96% comprehensive yield. It also realizes full-process automation in The Company’s self-developed mass-production integrated positive/negative electrode dry- the GWh-level system assembly stage and employs an innovative parallel design to ensure flexible production mixing and coating system achieves high-precision control throughout the entire process from solving the core challenges of consistency precision and scale in large-capacity manufacturing.mixing to inspection through micrometre-level feed control and adaptive cutting technology and is compatible with graphite silicon-carbon and various all-solid-state materials. The first-of-its-kind Lead Intelligent has assisted multiple global leading energy storage enterprises in completing GWh-level variable-roller-diameter uniform-temperature electric heating system launched by the Company energy storage project deliveries. From production line design to system delivery it has redefined the intelligent and the powder fibrillation process employing three-stage temperature control system can reduce manufacturing standards for large-capacity energy storage products providing a sustainable model of China’s energy consumption by over 35% and material and manufacturing costs by over 15% through actual intelligent manufacturing for the global energy transition.production verification. This equipment has now been delivered in batches to several top-tier materials enterprises accelerating the industrialisation of solid-state batteries. 482025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices R&D Talent Development Promoting Industry Development Lead Intelligent continues to expand its team of innovative R&D talents providing Industry-university-research Cooperation a solid foundation for technological innovation. The Company has a high-level highly specialized and highly standardized R&D team for non-standard equipment Lead Intelligent has formulated a management method for industry-university-research cooperation and continues to technology. At the end of the Reporting Period there were a total of 4072 R&D deepen the collaborative innovation mechanism between these sectors. The Company constantly strengthens its cooperation personnel accounting for 26.84% of the total number of employees with 13.56% of with domestic and international universities and research institutes through its corporate technology centre. By signing R&D personnel with master’s or doctoral degrees. mutual cooperation agreements it integrates technological resources to build a collaborative system with complementary advantages in industry technology and talent. Relying on long-term partnerships with universities such as Shanghai Jiao Tong Furthermore the Company has established a diversified innovation incentive system University Huazhong University of Science and Technology Southeast University Jiangsu University and Jiangnan University to continuously strengthen the development of its R&D and innovation teams fully the Company conducts systematic research on key technologies and cutting-edge directions in areas such as high-speed stimulating the innovative vitality and scientific research potential of its talents. winding processes for battery cells high-speed calendering and wrinkle removal processes high-speed and high-precision stacking processes and high-speed industrial CT online inspection algorithms. As of the end of the Reporting Period the Company had undertaken or participated in a cumulative total of 18 science technology and industrialization projects at or Special bonuses are established for innovation projects with above the provincial and ministerial level continuously promoting the transformation of scientific research results into real rewards tiered according to the difficulty of the technological productivity and enhancing the Company’s core technological competitiveness.breakthrough and its application value. Substantial rewards are In 2025 relying on its postdoctoral research station the Company assembled a team of senior engineer mentors and provided Financial given to teams that overcome core technical bottlenecks. an integrated scientific research platform. It adopted a ‘Project-driven + Multi-faceted Guidance’ model to collaborate with Incentives A benefit-sharing mechanism for the commercialization of postdoctoral researchers on several key projects achieving significant breakthroughs in critical areas such as new energy achievements has been established clearly defining the R&D visual imaging and algorithm iteration.team’s share of the income from the conversion of service inventions. This deeply links innovative value with personal returns enhancing talent’s sense of belonging and long-term Industry Collaboration creativity.Lead Intelligent actively participates in industry exchanges and collaborative innovation continuously contributing its professional wisdom and technical strength. The Company is a member of national and provincial industry associations Technology innovation achievement exhibitions and cross- including the China Industrial Association of Power Sources (CIAPS) the China Machinery Industry Federation the China team technical sharing sessions are held regularly to Photovoltaic Industry Association the Machine Vision Industry Union of ZGC the China Hydrogen Energy and Fuel Cell Industry encourage researchers to share creative ideas technical Innovation Strategic Alliance and the National Technical Committee for Standardization of Fuel Cells and Flow Batteries. The chal lenges and R&D exper iences break ing down Company also serves as the Vice-chair of the Jiangsu Power and Energy Storage Battery Industry Innovation Alliance and Growth departmental barriers and technological silos. the Vice-chair of the Jiangsu Machinery Industry Association. Through deep integration into industry organizations and the Incentives By promoting outstanding cases and individual achievements construction of standard systems the Company constantly strengthens communication and collaboration with upstream through the research institute and public announcements the and downstream partners in the value chain enhancing its industry influence and technological voice and empowering the Company sets innovation benchmarks and fosters a research standardized regulated and innovative development of the new energy equipment sector.ecosystem that encourages bold experimentation and a At the same time the Company fully leverages its technological leadership to deeply participate in the formulation of national willingness to share. and industry standards. Drawing on its technical expertise in fields such as Li-ion battery equipment and automation control it leads or participates in the development and revision of multiple key technical standards.R&D Talent Incentive Measures 492025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Lead Intelligent debuts at the 18th SNEC exhibition steering the future of energy with intelligent manufacturing Metrics and Targets In June 2025 Lead Intelligent appeared at the 18th (2025) International Photovoltaic Power Generation and Smart Energy Conference & Exhibition (SNEC 2025) under the theme ‘Photovoltaic-Storage Management Targets Integration · Embarking on an Intelligent Manufacturing Journey’. The Company launched its integrated intelligent manufacturing solution To maintain a high level of R&D and innovation investment for photovoltaic and energy storage comprehensively showcasing its build a high-calibre R&D and innovation talent team and profound technical expertise and innovative strength in these fields.establish a high-efficiency R&D and innovation platform.Lead Intelligent at the 18th SNEC Exhibition Lead Intelligent makes its appearance at The Battery Show Europe showcasing China’s Management Progress intelligent manufacturing power In June 2025 Lead Intelligent made its appearance at The Battery Show During the Reporting Period Europe in Stuttgart Germany where it launched its new ‘Full Value Recorded R&D investment of RMB 1605.07 million Chain + Full Life Cycle’ intelligent manufacturing solution. The Company accounting for 11.11% of operating revenue.comprehensively demonstrated its world-leading innovative intelligent As of the end of the Reporting Period manufacturing capabilities and zero-carbon development philosophy showcasing the strength of China’s advanced intelligent manufacturing. Have participated in a cumulative total of 9 national- level and 9 provincial-level science technology and Lead Intelligent at The Battery Show Europe industrialization projects.Have participated in developing a cumulative total of 21 national standards of which 9 have been in effect; and 3 group standards all of which have been in effect.Lead Intelligent shines at CIBF 2025 leading the industry’s future with innovative intelligent manufacturing and digitalization upgrades In May 2025 the 17th China International Battery Fair (CIBF 2025) was held in Shenzhen. Under the theme ‘Intelligent Manufacturing for the Future Empowering a Zero-carbon World’ Lead Intelligent made a stunning appearance with its intelligent manufacturing solutions covering the entire Li-ion battery industry chain comprehensively showcasing its latest achievements in Li-ion battery intelligent manufacturing and digitalization upgrades.Lead Intelligent at CIBF 2025 502025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Intellectual Property Protection Governance Impacts Risks and Opportunities Management The Company’s R&D Department is responsible for In 2025 the Company has taken several key measures in intellectual property management and protection continuously enhancing its globalised end- intellectual property (IP) strategic planning at the corporate to-end IP protection system.level ensuring that IP-related object ives are met.In line with its global business operations the Company proactively researches the relevant intellectual property laws and regulations in various countries Concurrently the Company has specifically established and regions and conducts due diligence before expanding its business overseas to ensure IP compliance in all its international operations.an Intellectual Property Management Department to comprehensively manage and implement the Company’s In terms of awareness-raising and capacity building the Company regularly provides specialized training for R&D personnel and in-house patent IP strategy including planning portfolio management engineers and publishes intellectual property courses on its internal learning platform for all employees to study and share. For its core management operations licensing and litigation. In addition the and technical teams the Company engages external lawyers to conduct specialized intellectual property training systematically enhancing the risk Company has established a standardized intellectual prevention and control capabilities of the core team and promoting the formation of a systematic intellectual property protection mechanism.proper ty manag eme n t sy s t e m a n d form u la t e d a Regarding external collaboration the Company explicitly includes a ‘Non-compete Agreement’ when signing supplier contracts with external agents to comprehensive set of policies including the IP Acquisition prevent intellectual property infringement risks at the source and establish a legal barrier for external cooperation. Additionally the Company regularly Control Procedure IP Maintenance Control Procedure IP organizes or participates in industry events such as intellectual property seminars and forums strengthening communication and exchange with peers Implementation Licensing and Transfer Control Procedure and inside and outside the industry staying abreast of industry trends learning from the best practices of leading enterprises continuously optimizing its own IP Risk Management Control Procedure which cover all aspects intellectual property protection system and constantly enhancing its professional expertise and compliance management standards.of IP creation management utilization and protection.Strategy Metrics and Targets Lead Intelligent adheres to a technical path of ‘Full- stack Self-research Independent and Controllable’. Management Objective Combined with a research philosophy of ‘Patents First’ To build and continuously upgrade the intellectual property protection system and to consistently strengthen the patent application and the Company strengthens the creation uti l ization layout of independently developed achievements thereby enhancing independent innovation capabilities competitive advantages and management and protection of intellectual property brand reputation.to enhance its independent innovation capabilities competitive advantages and brand reputation while Management Progress also avoiding infr ingement of others’ intel lectual During the Reporting Period property. During the R&D process a research model dr iven by propr ietar y IP i s establ ished enabl ing Passed the annual audit of the ISO 56005 Innovation and Intellectual Property Management Capability Classification System proactive and systematic planning for forward-looking maintaining its Level 3 registration qualification1.technologies with the patent portfolio continuously Received the ‘Best Practice Award’ for outstanding cases in the 2024–2025 ISO 56005 Innovation and Intellectual Property Management refined in line with technological developments. At the Capability classification and evaluation.same time the Company is accelerating its overseas Granted 778 new patents during the year including 182 invention patents 573 utility model patents and 23 design patents. By the end patent deployment to support its global development. of the Reporting Period the Company held 3592 authorised patents comprising 614 invention patents 2875 utility model patents and 103 design patents.1The scope of this system certification covers Wuxi Lead Intelligent Equipment Co. Ltd. (single entity). 512025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Digital Intelligence-driven R&D and Innovation Segment Launched an AI knowledge Q&A system and AI-assisted programming tools continuously Digitalization Strategy iterated the PLM (Product Lifecycle Management) system to enhance R&D collaboration capabilities; the GFS (Global File Cloud System) platform was further improved to promote Lead Intelligent has set a strategic goal to be ‘User-centric Innovative Thinking Creating a Leading the accumulation and reuse of R&D knowledge.Digitalization with Ultimate Efficiency and an Excellent Experience’. The Company has planned a digital transformation path and established a digitalization strategy that encompasses 1 value proposition 3 Supply Chain Segment advancement stages the construction of 3 major platforms and the development of 8 core business Implemented a TMS (Transportation Management System) continuously optimized domains. SCM (Supply Chain Management System)/WMS (Warehouse Management System) and other supply chain management platforms and deeply integrated them with R&D and 1 Value Proposition 3 Advancement Stages manufacturing systems to achieve dynamic resource allocation and online procurement processes.User-centric Innovative Thinking Creating Business Online a Leading Digitalization with Ultimate Scenarios Digitalized Production and Manufacturing Segment Efficiency and an Excellent Experience Decisions Intelligent The MES (Manufacturing Execution System) for various business segments was restructured and upgraded. The Company independently built a data processing platform and developed several digital management dashboards and reports for quality warehousing and other areas achieving data-driven refined control and supporting the digital transformation and 3 Major Platforms 8 Core Business Domains development of the business. Sales and Service Segment Data Platform Digitalization of Digitalization of Projects DevOps Platform Marketing and Services Digitalization of Quality Completed the end-to-end construction of the CRM (Customer Relationship Management) Innovation Application Platform Digitalization of R&D Digitalization of Human Digitalization of the Resources system achieving the full online transition of sales operations. Combined with the in-depth Greater Supply Chain Digitalization of Finance application of systems such as ITR (Issue to Resolution) this has significantly enhanced Digitalization of Planning and Economics responsiveness to customer needs.and Manufacturing Project Management Segment Lead Intelligent's Digitalization Strategy Successfully delivered the PMS (Project Management System) based on a microservices platform with pilot in-depth application in business divisions. It coordinates project teams Digitalization Practice plans materials and issue management achieving real-time visibility of project progress.Lead Intelligent follows a digital transformation path of ‘Business Online Scenarios Digitalized Decisions Intelligent’. Through key initiatives such as AI empowerment independent platform Business Operations Segment construction data-driven approaches and deep system integration the Company has permeated digital capabilities into various business segments including R&D supply chain manufacturing The functions of finance-related and human resources-related systems were iteratively sales project management finance and human resources. This has formed a cluster of replicable upgraded continuously supporting the integration of business development lean personnel and scalable digital cases injecting strong digital momentum into the Company's sustainable allocation and orderly personnel management.development. Highlights of Digitalization Practices in 2025 522025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Strengthening Quality Control Governance Lead Intelligent has established a matrix-style quality governance structure featuring ‘Unified Management by the Company Collaborative Implementation by Business Divisions and In-depth Focus in Specialized Areas’.This structure clearly defines quality responsibilities at each level ensuring the efficient operation and continuous improvement of the quality management system: The head of the Quality Management Centre as the Chief Quality Officer holds overall responsibility Corporate for the Company's quality strategy and performance. This role involves coordinating the formulation decision- of quality policies and overseeing the achievement of quality objectives by all business divisions.making level The Quality Management Centre centrally coordinates quality management work which is subdivided into four major quality domains: ‘R&D Manufacturing Materials and Customer’. This Corporate functional level enables risk identification and standardization throughout the product life cycle. Quality Business Partners (BPs) are embedded in various business divisions and product lines to provide agile support and business empowerment.The heads of each business division/product line are the primary individuals responsible for Business division execution level executing quality work within their units. They implement product quality realization and process control under the guidance of the Company's quality framework. 532025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices At the same time the Company has formulated and implemented end-to-end quality management systems such as the Quality and Safety Assessment Management Regulations and Strategy the Quality Red and Yellow Line Management Regulations to enhance the standardization of Lead Intelligent upholds the quality philosophy of ‘Starting with Craftsmanship Focusing on Improvement quality management throughout the product life cycle.Pursuing Excellence and Aiming for Perfect Delivery’ and practises the quality policy of ‘Customer-centricity One-veto Rejection Item Contents Zero-defect Orientation Continuous Improvement Agile Focus and Quality Excellence’ continuously optimizing its quality management system strengthening the foundations of quality and safety across the board and Identify critical quality and safety performance indicators systematically enhancing its overall quality competitiveness and operational effi ciency.Veto on quality and for products safety project Any non-conforming batch of equipment is subject to one- vote rejection Quality Policy Strategic Initiatives Key Modules Veto on personnel Personnel responsible for quality accidents caused by responsible for quality subjective factors are subject to one-vote rejection with Customer-centricity Built-in Quality (BIQ) Customer Quality accidents role change or employment termination Zero-defect Orientation Quality Management System R&D Quality Departments primarily responsible for quality accidents Continuous Improvement (QMS) Material Quality Veto on departments are subject to one-vote rejection with no excellence Agile Focus and Quality Maturity Assessment (MA) Manufacturing Quality responsible for quality awards or commendations during the specifi ed penalty Excellence Project/System Quality accidents period Quality and Safety ‘One-vote Veto’ System In 2025 the Company passed the annual audit for its ISO 9001 Quality Management System.The scope of the audit covered the entire process of product design development production Lead Intelligent's Quality Strategy Plan and service1.ISO 9001 Quality Management System Certifi cation for Lead Intelligent and its Subsidiaries 1The scope of this system certification covers Wuxi Lead Intelligent Equipment Co. Ltd. and its following controlled subsidiaries: Jiangsu Lead Technology Co. Ltd. Jiangsu Lead Hydrogen Intelligent Equipment Co. Ltd. Wuxi Lead Laser Intelligent Equipment Co.Ltd. Guangdong Lead Intelligent Logistics Technology Co. Ltd. Zhuhai Titans New Power Electronics Co. Ltd. and Lead Intelligent Equipment (Deutschland) GmbH. The geographical boundary encompasses its five main production bases located within China and one main production base overseas. 542025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Impacts Risks and Opportunities Management Quality Risk Management Product Verification Management Lead Intelligent promotes a deep-seated quality risk management philosophy shifting from The Company has established a strict product verification management process. Through systematic and ‘Reactive Firefighting’ to ‘Proactive Fire Prevention’ and from ‘Experience-driven’ to ‘Risk-driven’ standardized control mechanisms it achieves comprehensive identification and closed-loop management of approaches. The Company integrates quality risk management throughout the entire product incoming materials quality risks providing a solid guarantee for stable and efficient production and delivery.lifecycle from design to production forming a closed-loop risk management process of risk identification assessment control and monitoring. The Company comprehensively implements quality control plan management across all processes and quality domains systematically Inspectors conduct item-by-item testing and assessment of incoming materials identifying process risks from the perspectives of quality cost and delivery and implementing according to established inspection standards.timely corrective actions. Risk identification begins during the interpretation phase of customer technical agreements and proceeds through a series of review activities such as complete machine development report reviews component development report reviews 3D model reviews simulation tests electrical reviews and validation reviews to systematically identify and After repackaging information on qualified products is synchronously entered into assess quality risks. the warehouse management system and transferred to the warehouse for use; for non-conforming products defect information is fully recorded via the Non-conforming Building on this foundation the Company regards emergency quality management as a crucial Product Disposal Form the return process is initiated simultaneously and the work extension of its quality risk management. Upholding the core principle of ‘Preparing for Danger reporting process is handled in the warehouse management system.in Times of Peace’ it has established an in-house ‘Iron Triangle’ team (comprising manufacturing process and quality personnel) and an on-site customer ‘Iron Triangle’ team (comprising on- site project R&D and after-sales commissioning staff) to ensure rapid response and efficient coordination for urgent quality issues both internally and externally. In accordance with the Review personnel from the Component Quality Control Centre conduct a defect review Procedures for Rapid Response to Major Client-side Issues the Company has established a complete of non-conforming items and the review results are fed back to the supplier via the emergency resolution mechanism: a rapid response within 30 minutes of an issue arising Supplier Quality Engineering Centre to promote the implementation of appropriate emergency containment within 4 hours escalation management triggered if unresolved after rework temporary containment measures and improvement activities. 4 hours and a dedicated task force to handle complex problems followed by a post-incident review and improvement process.Full-life Cycle Quality Management For key items or disputed items related to key components high-precision The Company has independently developed a full-process distributed Quality Management components and new parts the research and development process and Supplier System (QMS) creating a comprehensive quality management platform that covers Quality Engineering Centre teams conduct a joint review to clarify the assessment R&D quality design quality supply chain quality processing and assembly quality and results ensuring product quality reliability and consistency.commissioning service quality. This system spans the entire product chain from design incubation to on-site delivery enabling 100% quality traceability and precise control for every product through a visual intelligent and traceable all-round evaluation system. Product Verification Management Process 552025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Product Safety Management Quality Integrity Management The Company has established safety standards and specifications covering the entire product lifecycle implementing The Company has formulated the Quality Red and Yellow Line Management Regulations and systematic control over all stages including product design product testing and product use.implements quality integrity management based on the ‘360° Quality Integrity Model’.This model is implemented vertically across three management levels—Group subsidiary The Company designs and delivers products that meet certification requirements and department—and provides full horizontal coverage through six dimensions: integrity such as CE and UL by referencing domestic and international standards traceability integrity after-sales service integrity education integrity inspection including national machinery safety regulations the EU Machinery Directive the integrity evaluation and integrity incentive. Guided by the principle of ‘Zero Tolerance Electromagnetic Compatibility Directive the ATEX Directive and the US National for Dishonest Behaviour’ it systematically constrains and manages the conduct of all Product Electrical Code. employees.Design The Company integrates safety concepts into the entire process of structural and equipment development widely applying design elements such as safety door locks safety circuits safety light curtains and emergency stop buttons combined with comprehensive simulation technologies like fluid dynamics and thermodynamics.Integrity education The Company applies multi-dimensional testing methods such as high and low- Integrity Integrity Product temperature testing gas concentration testing and pressure testing to achieve after-sales inspection Testing real-time online monitoring and early warnings effectively ensuring personnel service Zero tolerance safety. for dishonest behavior Integrity Integrity Group Level traceability evaluation The Company equips customers with safety warning labels emergency stop Subsidiary Level Integrity labels and safety protection labels and provides safety training covering incentive Product Use all posit ions and a terminal safety maintenance production manual Department Level comprehensively enhancing the on-site safety operational capabilities of customers.Product Safety Management Mechanism Lead Intelligent’s ‘360° Quality Integrity Model’ 562025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Building a Quality Culture Metrics and Targets Lead Intelligent continues to deepen its quality culture and enhance talent skills taking multiple measures to solidify the foundations of quality management. The Company holds an annual ‘Quality Month’ series of events including inspection Management Targets skills competitions and quality knowledge contests and invites supplier inspection personnel to its sites for benchmarking and learning thereby promoting the Continuously improve the quality management system to ensure its effective operation; consistently exchange of experience and skill improvement. Through these measures the enhance the internal quality audit mechanism to strengthen the foundation of quality management Company effectively advances the implementation of its quality control plans Systematically enhance quality management capabilities to drive continuous advancement in optimizes its quality gate review mechanism reinforces the philosophy of management standards ‘Embedding Quality in Everyone’s Mind’ and fosters a quality culture of continuous improvement.Management Progress Lead Intelligent holds its ‘Quality Month’ event During the Reporting Period In 2025 Lead Intelligent held its annual ‘Quality Month’ series of events covering all major business divisions and production bases and attracting Completed the 2025 surveillance audit/recertification for its ISO 9001 Quality Management System and ISO approximately 10000 participants. This effectively transformed quality 10012 Measurement Management System and conducted a company-wide internal audit of the quality awareness from a concept into the daily operations of employees. During management system to ensure continued compliance with standard requirements the event various departments carried out 16 special improvement projects Completed the quality support maturity evaluation for all departments systematically identifying areas for centred on the core goal of quality enhancement focusing on key areas improvement and promoting the advancement of quality management capabilities such as R&D assembly and process technology. Quality knowledge was Recorded 0 product recalls due to quality issues and 0 incidents of product quality and safety accidents or popularised through diverse formats including promotional articles on quality administrative penalties awareness online and offline Q&A sessions and competitions. The Company also conducted evaluations of outstanding improvement activities recognised exceptional individuals and provided empowerment training for suppliers comprehensively promoting the permeation of its quality culture and the enhancement of capabilities.Awards and Honours As of the end of the Reporting Period the Company has received Jiangsu Province AAA-Level Quality Credit Enterprise Jiangsu Provincial Governor's Quality Award Wuxi Mayor's Quality Award 572025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Customer Relationship Management Governance Impacts Risks and Opportunities Management Lead Intelligent continuously optimizes its customer service processes.It has formulated and implemented a series of policies and documents including the Guidelines for Optimization of Customer-oriented Processes Customer Service Management System After-sales Service Management Procedures Project Customer Satisfaction Survey Procedures and Procedures for Rapid Response to Major Client-side By continuously improving its customer service system optimizing its digital service platforms building professional service teams and Issues to build a customer relationship governance system with clear offering a variety of value-added services Lead Intelligent creates an exceptional service experience for its global customers.responsibilities and efficient response mechanisms.The Service Business Centre has established a three-tiered governance A digital platform centred on resolving customer needs has been built leveraging an independently structure comprising an agile front office for responses a professional developed data middle office and CRM (Customer Relationship Management) system. It is deeply middle office for coordination and a back office for strategic decision- Digital Service integrated with business systems such as SAP (Enterprise Resource Planning system) MES making. The front office consisting of business pre-sales and Platform (Manufacturing Execution System) and SRM (Supplier Relationship Management system) to achieve delivery teams is uniformly responsible for collecting requirements online visual management of the entire process for customer needs project progress service and delivering services. The middle office leverages cross-functional requests and spare parts information.collaboration linking with departments such as business and R&D to ensure service quality throughout the entire operational process. The A collaborative team has been formed covering multiple departments including sales pre-sales back office composed of a review committee of various division heads R&D project management quality commissioning and after-sales. Through continuous training Professional coordinates resources formulates strategies and incorporates customer and the ‘Iron Triangle’ (comprising on-site project R&D and after-sales commissioning staff) Service Team satisfaction into performance evaluation to continuously enhance service collaborative mechanism the team provides rapid responses and precise support for customer competitiveness. needs at every stage.Strategy A systematic customer empowerment mechanism that spans the entire equipment lifecycle Customer has been established. This includes on-site instruction embedded during the installation and Lead Intelligent's customer relationship management efforts are anchored Training commissioning phase and systematic training conducted after project delivery. The training to the strategic goal ‘From Service Response to Value Co-creation’ Activities integrates theory case studies and practical exercises with stratified courses tailored to different continuously optimizing its organisational structure and core processes. functions such as maintenance electrical engineering and production operations.The Company adheres to a customer-centric approach building an agile professional and collaborative service system to create integrated and forward-looking service capabilities. It proactively identifies customers' Diversified Various value-added services such as operations and maintenance hosting production capacity potential needs and establishes long-term trusting strategic partnerships Service leasing joint process development and data analysis reports have been offered to help clients integrating the mission of ‘Creating Value for Customers’ into every service Support optimize operations and enhance their competitiveness.delivery to become a trusted partner in their business development and innovation journey. 582025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Lead Intelligent has built a comprehensive customer service system covering pre-sales in-sales and after-sales processes achieving deep integration between customer management and business scenarios. This ensures service processes are transparent and traceable effectively improving service consistency and customer satisfaction.Pre-sales Stage Receiving Complaints Customer needs assessment: We accurately identify and understand core customer requirements including production processes capacity targets and investment plans and conduct preliminary needs analysis and consultations.Technical solutions and customised design: Led by senior technical experts and our R&D team we provide professional technical consulting process route validation and customised solutions. Classification Assessment and Initial Response In-sales Stage Investigation and Root Full-process project management: Through cross-departmental project teams we strictly control the quality and progress of design procurement production Cause Analysis and commissioning to ensure projects advance on schedule.Transparent communication and acceptance: We establish regular customer communication mechanisms to synchronise project progress and invite clients to participate in factory acceptance tests to ensure equipment complies with technical agreements.On-site collaboration: Our ‘Iron Triangle’ team provides rapid on-site diagnosis and resolution of complex issues for key clients guaranteeing successful delivery. Formulating Measures After-sales Stage Customer Feedback and Closure Delivery and training: We complete equipment installation and commissioning and provide systematic theoretical and practical training for the client’s operators and maintenance personnel to ensure they can operate and maintain the equipment independently.Response and timeliness: We have established diverse communication channels covering the globe enabling one-stop service requests and intelligent dispatching and we commit to round-the-clock responses.Technical support and prevention: On-site preliminary assessments and online support work in synergy supplemented by electronic maintenance manuals and remote commissioning tools. We use a digital platform for remote monitoring to provide fault warnings. System Archiving Spare parts and continuous improvement: We have established an efficient spare parts supply system offer equipment performance upgrades and technical transformation services and conduct regular follow-up visits to drive the continuous optimization of our products and services.Customer Complaint Handling Process Customer Service Management Process 592025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices The Company continues to deepen the development of its real-time online customer service management system. Leveraging three major channels— Customer Satisfaction the global 400 service hotline the Lead Intelligent Feedback Platform App and the on-site customer complaint system—we have built a 24-hour global online service network that resolves online issues within two hours and on-site needs within eight hours. For customer complaints the Company follows Management a process based on Corrective and Preventive Actions (CAPA) to ensure end-to-end closed-loop management and promote continuous improvement in In 2025 the Company systematically optimizes its service quality. customer satisfaction survey plan establishing a project- phased targeted survey mechanism. Questionnaires are customised for different stages to ensure survey content Customer-centric approach to ensure rapid and effective escalation and closed-loop handling of critical field issues accurately aligns with customer concerns. A digital platform has been simultaneously developed to automate survey task distribution questionnaire circulation and Step 1: data collection. This enhances standardization and Scan QR code to download efficiency while safeguarding customer information security providing precise data support for improving customer ser v ice. Dur ing the Repor t ing Per iod Customer service hotline the Company received over 700 valid satisfaction questionnaires achieving a customer satisfaction score Progress tracking: Check the handling progress of of 80.84. We also launched 15 special improvement reported issues activities which significantly increased customer Issue feedback: Fill in feedback information satisfaction.Metrics and Targets Equipment code: Step 2: Enter SCJH-prefixed number on nameplate to auto- Management Goal Log in with registered mobile generate equipment information To deepen customer orientation and build an agile efficient number Equipment status: Select current operation status from service feedback loop to comprehensively enhance the dropdown customer experience and satisfaction.Failure frequency: Select current failure frequency from To achieve a 100% customer complaint response rate and dropdown a 100% complaint resolution timeliness rate ensuring timely response and closed-loop management of customer Problem description: Provide detailed information including failure occurrence time background and feedback.specific requirements Management Progress During the Reporting Period Conducted face-to-face interviews with customers collecting over 600 feedback items and suggestions for optimisation.Achieved a 100% customer complaint response rate and a 100% complaint resolution timeliness rate.Lead Intelligent Feedback Platform Operation Guide 602025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Sustainable Supply Chain Management Governance The Company has established a comprehensive Supply Chain Management (SCM) mechanism with clear role definitions and strengthened process controls. The Procurement Management Department leads system development and supplier sourcing and admission while the Supplier Quality Management Department spearheads performance evaluation and risk handling. Departments such as R&D Production Planning Information Security Finance and Sustainable Development collaborate at key junctures. Major decisions are centralised within the Supply Chain Management Committee forming a closed-loop management system covering the entire supplier lifecycle from admission and cooperation to evaluation and replacement.The Company has formulated a series of management policies including the Procurement Management System Supplier Management Procedures Supplier Sustainability Code of Conduct and Supplier Sustainability Commitment. These integrate sustainability requirements into the SCM system and contractual clauses clarifying suppliers’ commitments regarding environmental protection social responsibility and compliant operations thereby building a supply chain ecosystem of shared responsibility and co-created value.Environment Labour and Human Rights Business Ethics Greenhouse Gases Prohibition of Child Labor Anti-corruption and Conflicts of Interest Emissions and Energy Prohibition of Forced Labor Consumption Anti-competition Working Conditions Pollution Prevention and Health and Safety Waste Management Anti-discrimination and Resource Efficiency Anti-harassment Biodiversity Freedom of Association and Collective Bargaining Key Summary of the Supplier Sustainability Code of Conduct 612025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Strategy Lead Intelligent systematically identifies environmental social and governance (ESG) related risks and opportunities in its sustainable supply chain management. In line with its business characteristics the Company integrates sustainability factors into strategic planning goal setting and resource allocation to ensure an orderly response across procurement production and operational activities. Furthermore the Company regularly assesses the potential impact of supply chain sustainability risks and opportunities on its financial condition operating results and cash flow. It promptly reviews the adaptation of its existing strategy and business model to supply chain management risks continuously optimizing its supply chain management measures to enhance resilience and long-term sustainable value creation.Impacts Risks and Opportunities Management Lead Intelligent is committed to building a responsible supply chain and has established a full lifecycle ESG risk management system covering supplier admission cooperation and exit. In the admission of new suppliers and the annual audit of qualified suppliers the Company incorporates key issues such as environmental compliance management labour rights business ethics and occupational health and safety into its ESG audits.Suppliers that violate zero-tolerance clauses are subject to a one-vote veto prohibiting their admission or allowing cooperation only after rectification is completed and verified.Supplier Screening Supplier Audit In accordance with policies such as the Procurement Management System Suppliers undergo an annual audit based on evaluation criteria such as the Supplier and Supplier Management Procedures new suppliers are required to submit Qualification Review Form Supplier Operating Environment Audit Form and Supplier ESG qualification documents including ISO 9001 ISO 14001 and ISO 45001 Sustainability Assessment Questionnaire.certificates and to sign documents such as the Supplier Anti-commercial Bribery Core suppliers are subject to regular ESG online assessments or on-site inspections.Declaration and the Supplier Sustainability Commitment. Suppliers with excellent ESG performance may be upgraded in their supplier ranking enjoy Based on evaluation criteria like the Supplier Qualification Review Form Supplier preferential procurement rights and receive recognition or incentives.Operation Environment Review Form and Supplier Sustainability Assessment Rectification Feedback Tracking Questionnaire new suppliers undergo a comprehensive evaluation or self- assessment which is verified through compliance due diligence and on-site For non-conformities identified during audits rectification requirements are issued inspections. Unqualified suppliers will be directly disqualified.to the supplier and the progress of these rectifications is continuously tracked until closure.Supplier Classification Supplier Exit Based on their performance in quality ESG and operational qualifications If a supplier engages in ‘One-vote Veto’ vetoable behaviour in ESG quality or other and according to material categories suppliers are classified and assigned dimensions during the cooperation period or if a major unexpected event occurs corresponding grades. that has a substantial impact on the Company’s business or brand the Company will downgrade the supplier or place it on a blacklist based on investigation results. 622025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Supply Chain Traceability Management Lead Intelligent is committed to the responsible procurement of minerals such as tin tantalum tungsten gold and cobalt used in its products and production. Responsible minerals requirements are an integral part of our sustainable supply chain management system and are fully integrated into our supplier admission and supervision audit processes.The Company strictly adheres to the regulations and survey templates of the Responsible Minerals Initiative (RMI) the Organization for Economic Cooperation and Development (OECD) Due Diligence Guidance for Responsible Supply Chains of Minerals and the Chinese Due Diligence Guidelines for Responsible Mineral Supply Chains. We have formulated the Due Diligence Guidance for Responsible Supply Chains of Minerals and the Supplier Conflict Minerals Self-assessment Form explicitly requiring suppliers not to procure conflict minerals. This ensures their products do not directly or indirectly finance armed conflict or other inhumane acts. Suppliers involved in procuring relevant mineral raw materials must submit a Conflict Minerals Reporting Template (CMRT) to the Company as required enabling mineral sources to be traceable and verifiable.Supply Chain Security Management Lead Intelligent places great importance on supply chain security and sustainability. By conducting in-depth analyses of macro-market and industrial policies strengthening collaboration with core suppliers and promoting a regionalised supply chain layout the Company achieves proactive risk prevention in-process monitoring and subsequent optimization of supply chain risks continuously enhancing the overall resilience of the supply chain.Deepen Market Analysis to Fortify Supply Chain Risk Defences Strengthen Strategic Cooperation to Solidify the Supply Chain Foundation Lead Intelligent optimizes its procurement strategies reduces supply chain risks and enhances Lead Intelligent establishes long-term strategic partnerships with key material overall resilience through in-depth analysis and market assessment of macroeconomic conditions suppliers ensuring a stable supply of raw materials leading quality and cost key raw materials and the new energy equipment industry chain. In response to global industrial advantages through strategic supplier layout long-term supply agreements policy changes and potential trade friction the Company proactively conducts risk assessments performance evaluation linkage and multi-dimensional cost reduction measures.and formulates countermeasures promoting the supply chain’s transition towards full lifecycle Additionally the Company collaborates with suppliers on technology innovation to traceability and low-carbon operations. Simultaneously by optimizing procurement methods enhance product performance and reliability building a mutually beneficial and win- flexible ordering and coordinating with the sales team we explore cost-locking mechanisms for key win supplier ecosystem.raw materials to effectively mitigate operational risks arising from price fluctuations.Supply Chain Integrity Management To strengthen business ethics and a culture of integrity within the supply chain the Company has formulated systems such as the Code of Conduct for Integrity in Procurement Business and requires all suppliers to sign the Supplier Anti-commercial Bribery Declaration. The Company achieves 100% coverage in integrity promotion among suppliers by regularly sending integrity training videos and letters of notice online; at the same time it thoroughly communicates business principles to attending suppliers at the annual supplier conference jointly fostering a supply chain culture of fair competition mutual trust and shared success. 632025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Supplier Capacity Building Lead Intelligent values synergistic growth with its suppliers viewing communication and empowerment as key drivers for building a sustainable supply chain ecosystem. In 2025 the Company continued to strengthen strategic trust and sustainable practices through various methods such as supplier quality conferences online promotions offline training on-site teaching joint development and global supplier conferences enhancing the overall operational and responsibility fulfilment capabilities of the supply chain.Annual Supplier Quality Online Supplier Training Offline Centralised On-site Supplier Joint Development Conference and Communication Supplier Training Teaching with Suppliers Inviting core and strategic Publishing the latest quality Regularly organizing training Supplier quality engineers Organizing inter-departmental suppliers to attend reporting requirements performance for core suppliers with courses going into supplier workshops technical review meetings on quality performance evaluation results drawings and quality management to provide one-on-one on- to assess the feasibility of and typical issues and specifications and other tools designed to focus on site instruction on pain alternative solutions proposed commending outstanding notices online via the Supply quality challenges in the non- points such as raw material by suppliers such as material suppliers. Chain Management (SCM) standard equipment industry. inspection quality control of substitution and process system. key processes and handling simplification while also Interpreting annual control Inviting internal and external of non-conforming products promoting the participation requirements and industry Conducting specialized experts to explain topics such ensuring that operators fully of strategic suppliers in early- trends and organizing special online ESG training and as the prevention and control master the procedures. stage joint development for seminars to build consensus communication sessions of low-level issues through instance by co-designing on improvements. on the instructions and practical demonstrations and Conducting ‘Quality Clinics’ for modular components to requirements for completing case studies. underperforming suppliers shorten the cycle time of non- Deploying key annual actions the ‘Supplier Sustainability helping them optimize their standard projects.and promoting synergistic Including interactive Q&A Assessment Questionnaire’. processes through on-site implementation by suppliers. sessions to promote the guidance.exchange of experience and tracking the application of training outcomes. 642025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Lead Intelligent holds its 2025 global supplier conference Digital Collaborative Management Lead Intelligent has built a Supply Chain Management (SCM) collaborative platform to achieve online management of the entire On 12 April 2025 the Lead Intelligent Global Supplier process from demand planning to order tracking significantly enhancing information transparency and communication efficiency.Conference themed ‘Standing Together through Thick and At the same time the Company continuously optimises its procurement strategies based on historical data accumulation effectively Thin Work in Solidarity and Cooperation’ was held in Wuxi. reducing cost risks caused by market fluctuations and further improving the resilience and responsiveness of the supply chain.Various business heads from the Company shared strategies and requirements concerning supply chain planning quality construction compliance construction and corporate digital and intelligent transformation and comprehensively conveyed the Company's ESG management philosophy Metrics and Targets and requirements to the supply chain. Representatives from relevant suppliers delivered speeches on future collaboration expressing confidence in deepening their strategic partnership. This conference marks a new stage in Management Objectives the strategic cooperation between Lead Intelligent and its global supplier partners building an important platform for To continuously deepen the construction of a green low-carbon compliant transparent resilient and efficient deepening mutual trust and jointly planning development sustainable supply chain system achieving synergistic improvement in environmental social and economic benefits.and promoting consensus across the upstream and To continuously strengthen ESG standard guidance and professional empowerment for suppliers and strive to downstream of the new energy industry chain on a broader achieve a 100% signing rate for the Supplier Sustainability Commitment among core suppliers and an 80% ESG training and deeper level. coverage rate by 2030.Management Progress During the Reporting Period Have been improving the supplier sustainability management and evaluation system optimizing relevant management and evaluation indicators and upgrading the Supplier Sustainability Assessment Questionnaire. 0 Incidents of overdue payments of accounts payable to suppliers occurred. Lead Intelligent Global Supplier Conference 652025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Material Issues Covered in This Chapter SDGs Addressed in This Chapter Responses to Climate Change and Water Resources Management Clean Technology Development Energy Management Environment Emissions and Waste Management Circular EconomyEnvironmental Compliance Ecosystem and Biodiversity Management Protection 662025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Responses to Climate Change Governance Lead Intelligent continues to deepen its climate governance actively responding to climate change and the national ‘Carbon Peaking and Carbon Neutrality’ strategy. The Company has established a governance framework led by the Board of Directors with the ESG Management Committee at its core and the ESG Office and various departments as the executive bodies to systematically advance climate management work. Within this structure the Board of Directors is responsible for making decisions on major climate change matters the ESG Management Committee monitors climate risks and opportunities and provides regular reports and assessments the ESG Office takes the lead in formulating plans and promoting their implementation and the various departments are responsible for specific execution and providing feedback on progress.Board of Directors Assess review and determine risk response solutions for significant climate change risks.Monitor climate risks and opportunities coordinate climate risk management-related ESG Management work report the progress and achievements of climate work to the Board on a quarterly Committee basis; Conduct climate assessment to ensure the orderly progress of climate work.Identify key climate work develop work plans and lead various departments in promoting climate work; ESG Office Report work progress to the ESG Management Committee on a quarterly basis to support climate decision-making.Various Implement climate-related work guided by the ESG Office and report to the ESG Office on Departments a regular basis.Climate Governance Framework 672025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Strategy Climate Strategy Lead Intelligent systematically identifies analyses and manages the risks and opportunities arising from climate change formulates work plans and objectives accordingly and reports the relevant information and progress to the Board of Directors through regular and ad hoc meetings. The Company has conducted scenario analysis across three time horizons—short-term (0–5 years) medium-term (5–10 years) and long-term (10+ years)—referencing the SSP 1-2.61 SSP 2-4.52 and SSP 5-8.53 scenarios from the Intergovernmental Panel on Climate Change (IPCC) Shared Socioeconomic Pathways (SSPs) identifying both physical and transition risks.The Company comprehensively assesses each identified climate risk and formulates specific response measures to fully enhance its risk resilience; it also actively seizes industry opportunities related to climate change by promoting technological optimization and green transition.Carbon Neutrality Goals and Commitments Lead Intelligent closely monitors the progress of global climate action and has set and disclosed its carbon neutrality goals to drive the low-carbon transition through its own practices. Based on its precise identification efficient monitoring and comprehensive statistical capabilities for greenhouse gas emissions the Company has scientifically formulated its carbon reduction targets and implementation pathways to systematically advance the processes of carbon peaking and carbon neutrality. We pledge to achieve carbon peaking for Scope 1 and Scope 2 emissions at the core operational level of the Company by 2030 and to achieve carbon neutrality at the core operational level by 2035. Furthermore we will continue to promote value chain emission reduction for Scope 3 and disclose progress periodically.Lead Intelligent Solemnly Commits To: End of 2030 End of 2035 Scope 1 and 2 Achieve Carbon Peaking in the Company’s Core Operations Achieve Carbon Neutrality in the Company’s Core Operations Scope 3 Continuously Promote Value Chain Emission Reduction Conduct annual greenhouse gas (GHG) emissions accounting and reporting in accordance with the GHG Protocol and ISO 14064 standards Progress Disclosure Actively manage product carbon footprint in accordance with the ISO 14067 standard Lead Intelligent’s Carbon Neutrality Goals 1SSP1-2.6: Assumes global greenhouse gas emissions peak before 2025 followed by a rapid decline and achieving negative emissions in the second half of the century. In this scenario the global average temperature is controlled to within 2°C of pre-industrial levels.2SSP2-4.5: Assumes global greenhouse gas emissions peak around mid-century and then slowly decline. In this scenario the global average temperature rises to between 2°C and 3°C above pre-industrial levels.3SSP5-8.5: Assumes global greenhouse gas emissions continue to increase until the end of the century. In this scenario the global average temperature rises by more than 4°C above pre-industrial levels. 682025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Carbon Neutrality Action Pathway Lead Intelligent continuously benchmarks against leading industry practices and sets scientific carbon reduction pathways from the dimensions of energy conservation and efficiency clean energy application and digital energy and carbon management ensuring the effective implementation of carbon reduction measures by improving its organizational structure and establishing a systematic energy and carbon management system. We have built a low-carbon operational management framework based on an ‘Energy and Carbon Management System + Digitalisation’ and are focusing on three core pillars—‘Energy Saving and Consumption Reduction’ ‘Renewable Energy Utilisation’ and ‘Carbon Offsetting’—to drive the energy structure's transition from high-carbon to low-carbon while achieving cost reduction efficiency improvement and efficient operations. At the same time we are systematically promoting four action pathways—digitalisation high efficiency electrification and clean energy use for our energy consumption—employing multiple measures to drive emissions reduction in our own operations.Energy Digitalisation Energy Efficiency Digital Energy Management Platform Management Empowerment High-Efficiency Equipment Achieve real-time and accurate monitoring and management of Reduce energy losses during use through Continuously monitor equipment operat ing energy consumption data. diverse management empowerment conditions to identify energy-saving opportunities Digital Carbon Emission Management Platform measures. and reduce unnecessary energy consumption Achieve standardized visualized and intelligent accounting Zoned Lighting losses during operation.and management of product carbon footprint data. Display Promotional Slogans Replace with More Efficient Motors Energy Conservation Management Replace Low-Efficiency Equipment Smart Management of Energy-Consuming Equipment Training Energy Management Utilize automation and intelligent technologies to continuously optimize the energy consumption management of production Green Buildings equipment. Strictly design construct and operate new office parks and factory areas in accordance with Online Monitoring System for Substation Equipment green building standards.Remote Monitoring System for Plant-Wide Air Compressor Stations Smart Forklift Management System Energy Electrification Clean Energy Use Electrification of Engineering and Official Distributed Photovoltaic Installation Vehicles Based on the available rooftop and carport areas for photovoltaics at each plant 100% installation coverage of Increase the degree of electr i ficat ion in the usable area is expected to be achieved by 2027.production and operational activities and Carbon Offset expand the proportion of electric vehicles. On the premise of ‘reducing to the irreducible minimum’ any remaining emissions will be offset through the external purchase of green certificates and carbon offset products.Lead Intelligent’s Carbon Neutrality Action Pathway 692025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Impacts1 Risks and Opportunities2 Management Identification Process for Climate Risks and Opportunities Lead Intelligent systematically integrates climate risk into the Company's overall risk management system. The Company has established a climate change risk and opportunity register improved its management processes and adopted targeted measures to reduce the actual impact of climate risks on its operations. At the same time it engages in forward-looking planning based on potential climate opportunities to clarify strategic development priorities. Currently the Company has identified the primary physical and transition risks that affect its business and has formulated corresponding risk response measures and opportunity conversion plans to ensure that climate-related work is advanced in an orderly and effective manner.Climate Change Risks and Opportunities Identification Assessment Management Monitoring Climate risks and opportunities that Every six months the ESG Management Response measures are formulated for The changing trends of climate risks and could potentially impact business Committee organises a climate change each climate risk such as strengthening opportunities are regularly monitored to operations are identified through risk and opportunity assessment infrastructure and optimising the energy enable timely action.methods such as benchmarking against based on the climate change situation structure. The management of climate risks and international standards tracking reported by the ESG Office. Actions are actively taken to address each opportunities is disclosed periodically industry hotspots and reviewing For identified climate risks and climate opportunity such as developing allowing for timely adjustments to stakeholder concerns. opportunities the degree of impact green products and implementing low- management strategies and the A list of climate risks and opportunities is on the Company's business strategy carbon management. optimisation of risk management identified clarifying the potential scope and financial planning is determined measures.of impact duration and probability through climate scenario analysis.of occurrence for each risk and opportunity.Climate Change Risk and Opportunity Identification Process 1The Company continuously monitors the impact of climate change on its financial fundamentals actively seizes related financing opportunities and identifies the scale of climate-related expenditure. During the Reporting Period the Company has progressively initiated the collection of climate-related financial metrics. In this process we have prudently assessed the impact of climate risks on the Company and considering factors related to financial impact and capabilities decided not to disclose quantitative information on current and anticipated climate-related financial impacts for this Reporting Period. The Company’s disclosure decision is primarily based on the following considerations: Firstly in accordance with the relevant provisions of the HKEX ESG Code we have adopted the ‘financial effects relief’ and ‘capabilities relief’ for this Reporting Period and have not disclosed quantitative information on the current and anticipated financial impacts of climate change. Regarding current and anticipated financial impacts climate risk factors intersect with core business variables such as macroeconomic fluctuations industrial policy adjustments technological iterations and market competition. The current analytical framework is not yet able to clearly and reliably isolate the independent financial impact of climate factors from these comprehensive variables and the Company’s statistical scope for key climate metrics requires further refinement. Secondly concerning the assessment of anticipated financial impacts although the Company formulates relevant expenditure plans annually (such as energy conservation and carbon reduction budgets) the methodology for long-term quantification over several decades remains uncertain. This is because the internal professional capabilities data foundations and external parameter support systems required for climate-related financial modelling are still being continuously improved. Consequently we have not yet been able to produce reliable quantitative results that meet the Company’s strict quality requirements. Concurrently various hypothetical factors are also subject to constant change which limits the external reference value of any resulting financial forecast data.Although quantitative information on financial impacts is not yet provided the Company has proactively used qualitative disclosures to help stakeholders understand the overall situation regarding relevant risks and opportunities. In this report we have identified and described the main physical risks transition risks and opportunities explained the Company’s management strategies and response directions and analyzed the transmission mechanism of climate risks in the financial dimension. In the future the Company will continue to strengthen its capacity building including refining data collection processes deepening its understanding and application of financial impact analysis tools and closely following developments in relevant standards and practices to progressively incorporate more valuable financial impact assessment content into its disclosures.2During the Reporting Period the Company conducted a quantitative assessment of opportunities across its business segments. However as information regarding the Company’s scenario simulations for climate-related opportunities has not been publicly disclosed and involves strategic business planning its specific details (such as prospective financial data core business roadmaps and target market strategies) constitute sensitive competitive information. Therefore in accordance with the relevant provisions of the HKEX ESG Code we have adopted the ‘commercial sensitivity relief’ and have not disclosed the specific details of the quantitative analysis of climate opportunities. For a qualitative description of climate opportunities please refer to the ‘Impacts Risks and Opportunities Management’ subsection of this chapter. 702025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Physical Risk Identification Results and Response Measures Risk Financial Time Risk Description Response Measures Category Impact Horizon Stay vigilant about typhoon and meteorological information categorize risk levels and damage warnings and implement prompt emergency response mechanisms.Typhoons can cause s ignificant damage to Inspect and reinforce factories warehouses and other buildings as well as production equipment regularly.infrastructure potentially affecting power and water Increased Medium Consider the potential impact of typhoons when constructing factory buildings. Use steel structures and wind-resistant metal Typhoon facilities posing threats to human life and safety management term panels for house construction and use strong wind-resistant materials for the construction of warehouse roofs and walls such as disrupting traffic and disrupting supply chains or expenses glass doors and windows with wind load resistance performance.other business activities in severe cases.Transfer materials needed in workshops or use backup warehouses before extreme weather to ensure the proper storage of materials.Equip warehouses with flood barriers and check if electrical facilities (e.g. power distribution room) are located at a high level to prevent flood damage to equipment and materials.Equipped with flood prevention materials e.g. sandbags flood barriers waterproof canvas (to cover materials) water pumps emergency lighting Floods can cause the occurrence of farmland Increased equipment.Medium Flood destruction traffic disruption factory management Check the effectiveness of flood prevention materials regularly (e.g. whether water pumps can work properly and whether sandbags are intact) as well as term damage and personnel safety threats. expenses the water tightness of doors and windows (e.g. whether the drainage system leaks and whether the window sealant ages).Adopt a siphonic rainwater drainage system on the factory roofs enhancing drainage capacity to rapidly remove rainwater from roofs and reduce the impact of flooding.Plan the transportation route in advance. Avoid waterlogged road sections as much as possible and allocate high ground clearance vehicles.Drought can impact corporate essential water needs. An increase in the severity of drought can lead to water and power interruptions result in Increased Medium Drought has a fairly low impact on the Company's operations as water for production purposes is not involved currently.Drought elevated water and energy prices and disrupt operating to long Proactively carry out rainwater reuse projects such as recycling rainwater for irrigation.company operations. In this case the Company costs term Equip each factory area with emergency water tanks to provide backup water sources.needs to invest additional capital expenditures to maintain normal operations.Check infrastructure air tightness to ensure that qualified building air tightness offers adequate air conditioning and heat insulation indoors.Extreme heat can affect corporate power and water Increased Medium Use high-performance and high-heat-resistant materials when constructing new buildings and optimize the thermal performance of Extreme utilization undermining operation efficiency. It can also operating to long building envelopes reducing the impact of climate on building lifespan.heat increase the probability of equipment failures leading to costs term Take scientific and effective measures to prevent heatstroke and relieve heat such as by scheduling outdoor work to cooler daytime periods to higher operating costs.avoid extreme heat to ensure worker health and safety.Temperature rises can pose challenges to the performance of manufacturing equipment HVAC Average systems and other equipment as well as cooling Increased Stay updated on the temperature trends at the operational sites and respond promptly.Medium temperature energy and water consumption. Additionally management Adjust the working hours of employees reasonably to avoid working during extremely hot hours.term rise buildings will face increased climate loads resulting expenses Provide employees with ample heatstroke prevention and cooling supplies.in adverse impacts on the occupational health and safety of outdoor workers.Rising sea levels can submerge land and affect the production and operations of businesses. At the Increased Medium Evaluate historical climate data and prioritize areas at higher altitudes before plant construction.Sea level same time seawater intrusion will lead to freshwater operating to long Consider the risk of rising sea levels as one important factor in new factory site selection.rise scarcity in some regions increasing the cost of water costs term Keep up with regional sea level rise situations to make decisions in advance.supply. 712025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Transition Risk and Opportunity Identification Results and Response Measures Risk Category Risk Description Financial Impact Time Horizon Response Measures As the global green transit ion is accelerat ing Establish carbon neutrality strategic goals develop efficient carbon neutrality action plans and increase investment in green companies are in urgent need to integrate low-carbon Increased Policy - technologies to promote corporate green and low-carbon transition. This includes the development of a digital energy and carbon strategies into their core development frameworks operating costs Short to Global green management platform the upgrading of efficient equipment the construction of buildings that meet local Green Building Design increase R&D investment dr ive technological medium low-carbon Standards and Green Building Evaluation Standards electrification and clean energy application as well as supply chain low- innovation optimize product efficiency and adopt Increased R&D term transition carbon transition.green operation modes so as to lead a new paradigm of expenses Keep up with the new energy policies and develop solar hydrogen energy and other clean energy equipment.sustainable development.Purchase green electricity and green electricity certificates to fulfill the low-carbon commitment plan to further expand the scale of green electricity procurement in the future and explore diverse measures such as carbon offsetting to reduce carbon tax costs.Global policies such as carbon taxes carbon trading Increased Conduct in-depth research on the CBAM including its rules framework accounting methods and implementation and European Union's Carbon Border Adjustment operating costs impact and develop carbon management strategies in advance to ensure compliance and enhance international Policy - Short to Mechanism (CBAM) lead to increased costs decreased competitiveness facilitate the low-carbon transition and reduce carbon tax costs for the Company.Carbon pricing medium competitiveness and rising risks of carbon tariffs Increased Calculate the carbon footprint of three products according to ISO 14067 with two of them qualified for product mechanisms term requir ing companies to accelerate low-carbon management carbon footprint verification and perform precise tracing and transparent disclosure of lifecycle carbon emissions transformation to address challenges. expenses through automated monitoring and third-party verification to support low-carbon product certification and enhance international market competitiveness.Upgrade process equipment and implement an automated energy management system to enhance energy efficiency and reduce costs. Establish a low-carbon product system to address carbon tariffs.Enhance investment in carbon inventory and establish internal data accounting monitoring and reporting capabilities.Conduct GHG emission inventory and verification according to international standards such as ISO 14064 and GHG Policy - D u e t o t h e i n c re a s i n g ly s t r i n g e n t re g u l a t o r y Increased Protocol.Disclosure of requirements for carbon emissions and energy operating costs Short to Enhance investment in product carbon footprint calculation and establish internal data accounting monitoring and environmental consumption data disclosure companies face medium reporting capabilities. Strengthen product carbon footprint management in accordance with international standards and climate compliance pressure and reputation risks， and need Increasedterm such as ISO 14067 and PAS 2050 and expand the coverage of product carbon footprint to enhance the low-carbon change to timely monitor policy changes and improve data management competitiveness of products.information accounting and disclosure mechanisms. expenses Enhance internal environmental disclosure management processes publish ESG reports annually and disclose environmental performance and carbon neutrality goals to strengthen investor and public confidence. 722025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Risk Category Risk Description Financial Impact Time Horizon Response Measures Improve processes and equipment to reduce energy consumption cut production costs and enhance competitiveness.Rising costs and declining competitiveness may result Incorporate an energy and carbon digital management platform to enhance the accuracy and transparency of collecting Technology from failure to timely invest in and apply low-carbon Increased monitoring and reporting carbon emissions and energy consumption data enabling digital low-carbon technology to empower - Rapid technologies and replace traditional high-emission operating costs Medium to operations and products.transition to technologies or failure to complete technological Increased R&D long term Utilize automation and intelligent technology to optimize the energy consumption management of production equipment and low-carbon transformation in collaboration with value-chain expenses provide data support for energy-saving projects.technology partners. Prioritize vendors with low carbon emissions to drive the supply chain towards green and low-carbon technological transformation.Reduced Procure low-carbon and recyclable green materials for finished product packaging and optimize the packaging design operating of key products to reduce packaging material consumption while ensuring secure delivery so as to reduce product revenue As customers have more demand for green products carbon footprints and minimize carbon emissions from packaging disposal for customers.Market - and low-carbon performance enterprises may face Consider energy conservation and emission reduction in the product development and design phase to meet customer Customer Increased Medium decreasing competitiveness customer loss and needs and reduce energy consumption and costs throughout the entire lifecycle.behavior operating costs term reduced market share if they fail to adjust their products Provide battery manufacturing and recycling solutions for Li-ion battery customers to help improve resource recycling changes and services promptly. efficiency.Affected Provide cradle-to-gate carbon footprint tracing services to help clients understand the carbon footprints of products market and meet their needs for low-carbon performance.expansion In the context of global low-carbon transit ion Increased companies are facing risks of increased production Prioritize large vendors with lower ESG risks to ensure the quality of raw materials and supply stability reducing the risk of supply chain operating costs Market - Raw costs and intensified operational pressures due to disruptions.Medium to material costs rising clean energy costs low-carbon raw materials Collaborate with suppliers to promote the use of low-carbon materials and green production and incorporate environmental Diminished long term rise shortage and supply chain disruptions caused by performance into the supplier assessment system to drive value-chain emission reduction.market their dependence on electricity and high-carbon raw Replace metal materials with non-metal materials to depend less on high-carbon raw materials and cut production costs.competitiveness materials such as steel and aluminum.Reputation Failure to effectively reduce environmental impact or Decreased - Challenge lack of climate risk mitigation actions may result in market share Develop and disclose the commitment and action plan for carbon neutrality to enhance transparency and credibility.of industry decreased investor confidence reduced valuation Increased Long term Disclose the climate metrics performance and climate management progress annually.and company and damaged reputation which may further damage management reputation market competitiveness and long-term development. expenses 732025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Opportunity Category Opportunity Description Financial Timeframe Impact Response Measures Introduce automated and intelligent technologies such as an online monitoring system for substation equipment a remote Resource Reduced monitoring system for the compressed air stations and a smart forklift management system to optimize the energy consumption Businesses can optimize resource utilization efficiency utilization - operating Short management of production equipment and improve energy efficiency.reduce operating costs and achieve green transition Improvement costs medium Optimize the logistics route promote the reuse of pallets and reduce the use of external warehouses to cut logistics costs and through digital management and collaborate with value of resource Additional and long carbon emissions.chain partners to enhance resource utilization efficiency utilization financial term Carry out projects of energy-saving renovation smart energy monitoring and management platforms water and material and strengthen market competitiveness.efficiency subsidies conservation and circular economy to obtain government financial rewards and subsidies base on government support policies for enterprise green transformation.Through digitalization electrification and cleanliness Energy source Reduced of energy use enterprises can reduce carbon emissions - Energy operating Short and realize green development as well as enable supply substitution costs Phase out diesel forklifts and gasoline official vehicles with electric vehicles (EVs) to reduce operational carbon medium chain partners to jointly apply new technologies so as to emissions and practice the concept of green operation.and new promote green energy and low-carbon production and Additional and long Utilize clean energy efficiently and develop photovoltaics on plant roofs to enhance energy self-sufficiency.technology term enhance competitiveness and sustainable development financial application capabilities. subsidies Increased operating Enhance forward-looking technology R&D and platform building maintain an average of over 10% R&D investment and improve Enterprises can develop low-carbon products and services revenue innovative capabilities to maximize revenue and profits and respond to climate-related challenges and opportunities.Product & through green technology innovation and carbon footprint Focus on low energy consumption in technological R&D and offer innovative energy-saving and intelligent solutions that meet services - Short analysis to meet global green consumption trends and Reduced customers' low-carbon demands across the entire value chain of new energy enhancing product competitiveness by helping Development medium enhance competitiveness. Companies can also drive operating customers reduce energy costs and increase market revenue.of low-carbon and long the low-carbon manufacturing in the Li-ion battery costs Complete the cradle-to-gate carbon footprint accounting of core products to help customers achieve lifecycle carbon traceability products and term photovoltaics and hydrogen energy sectors to promote and gain the new energy market opportunities.services industrial green transformation. Additional Develop new energy equipment products and services to obtain government financial rewards and subsidies in line with the financial government's support policies for technological innovation in the new energy industry.subsidies Increased operating With new energy intelligent manufacturing solutions revenue Explore the markets of Li-ion batteries energy storage photovoltaics and hydrogen energy by leveraging technological and a globalization strategy enterprises can keep up Short Market - advantages so as to promote the low-carbon transition and green development of the global new energy industry.with the global demand for green transition broaden Enhanced medium Expansion of Follow closely the global trends of new energy and electrification engage actively in the Chinese Asia-Pacific European and its market explore the potential of energy saving and market share and long new market American markets and adjust development strategies dynamically to explore new markets and reduce the risks of policy and carbon reduction in its products and promote the green term Additional economic fluctuations in a single market.development of the global new energy industry.financial subsidies 742025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Green Solutions As a world-leading enterprise in intelligent equipment the Company is committed to green and low-carbon production working with the industrial chain to build a global green society. The Company has established a complete business ecosystem of total intelligent manufacturing solutions in new energy sectors such as Li-ion battery photovoltaic hydrogen energy and solid-state battery. It has also forged win-win strategic relationships with global customers actively participating in their technological innovation and low-carbon transition helping them build efficient low-consumption smart factories and contributing to the global new energy era.New Energy Li-Ion Batteries Hydrogen Energy Lead Intelligent provides global battery and vehicle manufacturers with total Lead Intelligent is actively expanding into the fields of green hydrogen production intelligent equipment solutions for new energy Li-ion batteries covering the full hydrogen fuel cell manufacturing and testing. During the Reporting Period the value chain and entire life cycle for applications in power energy storage and digital Company: products. Through the deep integration of AI the Internet of Things and advanced Made a major breakthrough in the core technology for high-precision mass manufacturing technologies we promote the intelligent upgrading of production manufacturing of fuel cells in the hydrogen energy equipment sector successfully lines. This helps customers increase battery energy density and safety reduce unit delivering China’s fastest 20 ppm high-speed high-precision membrane electrode energy consumption and maintenance costs and drive the large-scale production assembly equipment production line significantly enhancing the industry’s of high-efficiency low-consumption power and energy storage Li-ion batteries manufacturing efficiency and technological standards.injecting strong momentum into the global electrification revolution. Successfully pass a high-standard acceptance for a high-precision fuel cell CCM coating machine project which was customized for a leading global comprehensive Photovoltaics technology group demonstrating the Company’s R&D and engineering service capabilities in the field of precision equipment.Lead Intelligent provides customers with total intelligent manufacturing solutions for high-efficiency TOPCon BC HJT and perovskite photovoltaic cells and modules. Solid-State Batteries Combined with its independently developed MES system intelligent warehousing As a core direction for next-generation energy storage technology solid-state and logistics system laser technology and machine vision technology it can create batteries are leading a fundamental revolution in clean energy storage with their ‘Unmanned Workshops’ for photovoltaic companies. During the Reporting Period revolutionary characteristics including inherent safety ultra-high energy density the Company: and solvent-free manufacturing. During the Reporting Period the Company Launched the TOPCon 4.0 high-efficiency photovoltaic cell smart factory total solution pioneered the launch of a whole-line solution for solid-state battery production achieving a photoelectric conversion efficiency of over 26.5% and can provide covering solid-state electrode preparation solid-state electrolyte membrane customers with turnkey projects for entire TOPCon photovoltaic cell production lines. preparation and composite equipment bare cell assembly densification and high- Independently developed an XBC stringer with shipments exceeding 30 GW; voltage formation and capacity grading. The Company has achieved a dynamic Assisted multiple customers in advancing the mass production of perovskite with balance of precision yield and production efficiency in core processes such as some achieving breakthroughs in square-metre-scale cell efficiency exceeding 20%. dry coating wet coating and stacking. This progress is not only a significant Successfully passed high-standard acceptance for a whole-line perovskite solar cell breakthrough in mass production technology for solid-state batteries effectively equipment which was customized for a leading technology enterprise. filling a key gap in the industry’s engineering implementation but also directly responds to the urgent global demand for efficient clean energy storage systems in the context of carbon neutrality. 752025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Environmentally Friendly Products Lead Intelligent is committed to providing environmentally friendly intelligent equipment to help downstream customers reduce energy consumption pollution and carbon emissions during the equipment use phase.In our product life-cycle management we strictly implement domestic and international environmental regulations and standards complying with the Administrative Measure on Restricted Use of Hazardous Substances in Electrical and Electronic Products the Directive on the Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment (RoHS) the Registration Evaluation Authorisation and Restriction of Chemicals (REACH) and other relevant EU and international directives to control hazardous substances at the source of raw materials. In the design and manufacturing stages we fully apply innovative technologies such as waste heat recovery dry air recycling fine control of machine microenvironment motor energy-saving technology and selection electrical intelligent control refined management of compressed air and intelligent energy saving for fans and lighting to significantly reduce equipment operating energy consumption. At the same time we follow standards such as the EU Machinery Directives to optimize the maintainability and durability of our equipment extending product life and reducing waste generation and resource consumption throughout the life cycle.Fine Control of Machine Motor Energy-saving Technology Making Full Use of Waste Heat Dry Air Recovery and Recycling Microenvironment and Selection Fully control the utilization of waste heat Recover exhausted air from the machine Effectively control humidity and dust Use the IE4 energy-saving motor compliant in each process phase during the plant remove impurities in the dry air then send microenvironment to reduce energy with national standard to effectively realize design stage the dry air to the workshop for reuse consumption and operation cost energy saving of machine Online Energy Consumption Monitoring Energy-saving Fan and Lighting Fine Management of Compressed Air Electrical Intelligent Control Real-time monitoring and analysis of big Integrate the energy-saving capabilities Intelligent monitoring of specific working Intelligent control of electrical machine data for regulation and improvement of fans lighting and other points to jointly conditions of machine and fine control to reduce power consumption in each reduce the energy consumption of the of compressed air pressure and flow to process phase whole line achieve effective energy saving Energy-saving Functions and Modular Design of Intelligent Equipment 762025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Product Carbon Footprint In accordance with ISO 14067:2018 – Greenhouse Gases – Carbon Footprint of Products – Requirements and Guidelines for Quantification and PAS 2050:2011 – Specification for the Assessment of the Life Cycle Greenhouse Gas Emissions of Goods and Services the Comapany has adopted a cradle-to-gate system boundary and have completed carbon footprint assessments for a total of three core products to date. Of these two products have already received ISO 14067 Product Carbon Footprint Certification. In the future the Company will continue to strengthen its product carbon footprint management expand the coverage of these assessments and enhance the low-carbon competitiveness of its products. Through product carbon footprint certification customers and other stakeholders can better understand the environmental impact and sustainability of our products throughout their life cycle providing professional data support for customers' green procurement.Li-ion Battery Cell Cutting and Stacking Machine Dual-layer Coating Machine Winding Machine 0.15% 8.555.290.96%%% Percentage of Percentage of Percentage of 3.08% 91.30% Carbon Emissions 93.77% Carbon Emissions 0.94% 95.96% Carbon Emissions by Product Stage by Product Stage by Product Stage Raw Material Procurement Raw Material Transportation Product Manufacturing Carbon Carbon Carbon 162.57 Footprint 2817.95 Footprint 59.23 Footprint tCO2e/FU1 tCO2e/FU1 tCO2e/FU1 1FU: Functional Unit where the functional unit is each piece of equipment. 772025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Metrics and Targets Lead Intelligent has purchased 480 tonnes of verifi ed emission reductions from a Verifi ed Carbon Standard (VCS) project and 9100 Chinese Green Electricity Certifi cates (GEC) to off set a portion of its direct emissions and indirect emissions from purchased electricity for 2025. As of March 2026 Lead Intelligent's Wuxi No. 2 Factory has received ISO 14068 Carbon Neutrality Certification for two consecutive years signifying that the Company's factory operations have achieved carbon neutrality for two consecutive reporting periods actively fulfi lling its carbon neutrality commitments. (For details on Lead Intelligent's carbon management goals see ‘Carbon Neutrality Goals and Commitments’.) During the Reporting Period the Company developed rooftop distributed photovoltaic systems at its domestic production bases with a total planned installed capacity of approximately 25 MW. These systems are expected to generate over 26 million kWh of electricity annually reducing carbon dioxide VCS Verifi ed Emission Reduction Certifi cate GEC Certifi cate emissions by more than 13000 tonnes. As of the end of the Reporting Period Scope 2 the grid-connected photovoltaic capacity reached 4.62 MW and in 2025 Emission photovoltaic power generation achieved a cumulative emission reduction of Reduction Measures 1170 tonnes of CO2e. Verification Opinion Furthermore the Company implemented a specialized energy-saving 核查声明 Organization: Wuxi Lead Intelligent Equipment Co. Ltd.组织无锡先导智能装备股份有限公司 optimization project for its air compression system. Through system retrofi tting Address: No. 18 Xinzhou Road Xinwu District Wuxi Jiangsu 214028 China地址 中国江苏省无锡市新吴区新洲路 18 号 邮编：214028 Subject Operational Greenhouse Gas Emissions (Including Scope 1 and Scope 2) of 标的： Wuxi Lead Intelligent Equipment Co. Ltd. (2nd Factory) in 2025 2025年无锡先导智能装备股份有限公司（第二工厂）运营相关温室气体排放（含and operational optimization the comprehensive energy consumption of the air 范围 1、范围 2） Opinion Number 声明号：CNCV 840590 Verified as Satisfactory 无保留意见 compression system was reduced by approximately 1019500 kWh compared Reasonable Assurance 合理保证：For the Carbon Neutrality Claim contained in the produced by Wuxi Lead Intelligent Equipment Co.Ltd. that is related to the direct GHG emissions and removals (Scope 1) and the indirect GHG emissions from imported energy (Scope 2) reasonable assurance has been conducted.对于无锡先导智能装备股份有限公司出具的《2025年度碳中和报告》中的碳中和宣告，已对直接温室气体排放和清除（范围1）以及输入能源（范围2）间接温室气体排放进行了合理保证。 to 2024 equivalent to a reduction of about 540.95 tonnes of carbon dioxide Based on the processes and procedures conducted it is concluded that the Carbon Neutrality Claim根据所实施的过程和程序，对于碳中和宣告的结论是： * is materially correct and is a fair representation of GHG and carbon neutrality data and information;温室气体及碳中和数据与信息是实质性正确并公正表达； emissions. * has been prepared in accordance with ISO 14068-1:2023 and its principles. 已按 ISO 14068-1:2023 要求及原则准备。 Lead Verifier 核查组长 Bell Deng 邓中华 Independent Reviewer Shirley Qian 钱韶丽独立评审员 Signed on behalf of BSI Michael Lam – Senior Vice President APAC Assurance BSI 代表签署 Issue Date 签发日期 2026-03-25 The Company continues to promote carbon reduction in packaging decreasing Scope 3 greenhouse gas emissions in the supply chain by optimizing packaging 注：英标管理体系认证（北京）有限公司独立于被核查公司，在被核查中没有经济利益。本第三方核查意见是为被核查公司准备的，仅用于核查其碳中和的声明。在作出本声明时，英标管理体系认证（北京）有限公司已假定被核查公司向其提供的所有信息都是真实、准确和完整的。英标管理体系认证（北京）有限公司不对任何依赖本声明的第三方承担任何责任。 Emission 英标管理体系认证（北京）有限公司 地址：北京市建国门外大街甲 24号东海中心 2008 室 邮编：100004structures and material use. During the Reporting Period the average amount Reduction Measures of wood used per unit of equipment decreased by 25% resulting in a cumulative saving of approximately 4230 cubic metres of wood and a corresponding ISO 14068 Carbon Neutrality Certifi cation reduction in greenhouse gas emissions of about 286900 tonnes of CO?e1.1 Calculation note: The emission reduction is calculated using the emission factor method covering emissions from material production and transportation. Based on the actual amount of material saved and the corresponding transport distance the emission reduction is estimated by matching the baseline emission factors for production and logistics transportation. 782025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Environmental Compliance Management Environmental Management System Environmental Risk Control Lead Intelligent consistently adheres to the principle of ‘Clean Production Green Development’. In The Company has formulated the Procedure for Environmental Factor Identifi cation and Evaluation to conduct accordance with the requirements of the ISO 14001 Environmental Management System the Company regular assessments of environmental factors and implement control measures based on their signifi cance.has formulated and implemented its Environmental Management Policy. For the entire product production and operation process—covering key aspects such as raw material procurement manufacturing pollutant emission control and resource/energy conservation and recycling—the Company has established Environmental Factor Environmental Factor Environmental Factor and implemented environmental management procedures and targets that are uniformly adapted to Identifi cation Evaluation Management local regulations and international environmental standards across its global production bases and operations. It is committed to comprehensively enhancing its environmental management performance mitigating environmental impact ensuring zero pollution incidents and actively responding to the Identifi cation Method: Input- Evaluation Methods: Direct Non-significant national goals for carbon peaking and carbon neutrality to promote sustainable green development. output analysis. judgement method and Environmental Factors: Covered Operational comprehensive scoring Controlled by various Throughout project construction and operation the Company strictly implements its environmental management Activities: All activity method. departments through system and local compliance requirements. It systematically completes full-process environmental management processes including Assessment Dimensions: targets indicators and tasks including environmental impact assessments post-completion environmental acceptance inspections procurement Frequency of occurrence operational controls.and operational-phase environmental compliance monitoring. It also lawfully obtains necessary environmental transportation controllability scope of Significant Environmental permits (such as pollutant discharge licenses) from the project location to ensure full legal and regulatory warehousing production impact and recovery Factors: Formulating compliance in all operations. Concurrently the Company reports and discloses relevant environmental information waste disposal and offi ce capability. control and improvement promptly informing regulatory authorities and stakeholders of its environmental management and emissions administration. measures; operational performance. The Company also actively collaborates with all stakeholders to jointly advance green practices and Types of Environmental control; establishing steadily improve its environmental performance. During the Reporting Period the Company successfully passed Issues Considered: Air emergency preparedness the annual audit for its ISO 14001 Environmental Management System1.pollution water pollution and response noise pollution solid waste plans; monitoring soil contamination resource and measurement; and energy consumption and implementing physical properties and management of other environmental issues. environmental targets and indicators.Environmental Factor Identifi cation and Management Process ISO 14001 Environmental Management System Certifi cation for Lead Intelligent and its Subsidiaries 1The scope of this system certification covers Wuxi Lead Intelligent Equipment Co. Ltd. and its following controlled subsidiaries: Jiangsu Lead Technology Co. Ltd. Jiangsu Lead Hydrogen Intelligent Equipment Co. Ltd. Wuxi Lead Laser Intelligent Equipment Co. Ltd. Guangdong Lead Intelligent Logistics Technology Co. Ltd. and Zhuhai Titans New Power Electronics Co. Ltd.; the geographical boundary encompasses its five main production bases located within China. 792025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices The Company continuously improves its environmental emergency management system optimizing its three-in-one emergency plan framework based on dynamic risk assessments. For local climate risks such as typhoons and heavy rainfall the Company integrates them into specialized plans for unified management ensuring that all levels of plans are forward-looking and actionable through annual evaluations and dynamic revisions. The Company strictly implements its annual emergency drill plan regularly organizes environmental emergency drills to test emergency response procedures and handling capabilities and constantly refinines its mechanisms for preventing and responding to sudden environmental incidents. Additionally the Company promotes a joint monitoring and inspection mechanism between its security teams and various central and back-office departments to enhance the identification early warning and rapid response to abnormal situations ensuring that risk events are handled in a timely and effective manner.In 2025 the Company organized emergency drills for workshop employees on waste gas treatment facility failures and hazardous waste leaks to enhance their emergency response speed and handling capabilities.Key Performance ‘Three-In-One’ Emergency Plan System Emergency Material Reserves and Personnel Management A ‘Three-In-One’ emergency plan system comprising Implementing scientific allocation and dynamic management a comprehensive plan specific plans and on-site of the category quantity and effectiveness of materials During the response plans Building a professional emergency rescue team Reporting Period 0 Environmental violations Emergency Drills and Special Inspections Monitoring and Inspection Mechanism Regularly organizing and conducting environmental emergency drills Building a coordinated monitoring and inspection mechanism Routinely carrying out special inspections for typhoon and flood between security forces and various middle and back-office prevention departments Environmental Risk Emergency Management Measures 802025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Building an Environmental Culture The Company regularly conducts environmental protection training to continuously raise environmental awareness among all employees. In 2025 under the theme ‘Green Action Shared Responsibility’ the Company systematically carried out environmental culture building and specialised training activities. The training content covered key environmental management areas such as environmental compliance responses to climate change and emergency response to environmental incidents. At the same time the Company used occasions like World Environment Day to promote energy conservation and carbon reduction themes actively encouraging the use of carbon-inclusive mechanisms and platforms to guide employees in practising a green and low-carbon lifestyle.Lead Intelligent holds a series of environmental culture activities In 2025 the Company held a series of activities including a promotional campaign for its ‘Environmental Protection in Action’ theme and an interactive quiz game called ‘Carbon Reduction Expert’ to convey the concept of a low-carbon lifestyle to all employees and help them understand various low-carbon behaviours and their significance for environmental protection.The ‘Carbon Reduction Expert’ Interactive Quiz Game for A Promotional Article for the ‘Environmental Environment Day Protection in Action’ Campaign Key Performance During the Reporting Period 9327 Environmental protection training participants 812025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Green Production and Operations Energy Management Energy Management System Using the ISO 50001 Energy Management System as its core framework the Company has established a comprehensive set of energy management systems and procedures. It conducts regular system reviews to ensure the effectiveness of the energy management system. In terms of goal management the Company scientifically formulates energy management indicators and targets based on its actual operating conditions. It dynamically tracks implementation effectiveness through monthly data analysis and annual comprehensive reviews. Relevant indicators are promptly revised and updated in response to changes in production processes operating environments or national and local laws and regulations thereby promoting continuous optimization of energy efficiency and steady improvement of environmental performance. During the Reporting Period the Company passed the triennial re-certification audit for its ISO 50001 System Certification1.Energy Management Goals By 2027 maintain electricity consumption per unit of operating revenue within ±5% of the 2024 level and increase the proportion of green electricity consumption to 15%2.By 2027 reduce natural gas consumption per unit of operating revenue by 5% compared to 2024.Lead Intelligent’s ISO 50001 Energy Management System Certifi cation 1The scope of this system certification covers Wuxi Lead Intelligent Equipment Co. Ltd. and its following controlled subsidiaries: Jiangsu Lead Technology Co. Ltd. Jiangsu Lead Hydrogen Intelligent Equipment Co. Ltd. and Guangdong Lead Intelligent Logistics Technology Co. Ltd.; the geographical boundary encompasses its four main production bases located within China.2During the Reporting Period the Company's newly constructed plant area was put into operation and employees from previously rented sites were consolidated into the Company's own facilities.The office and workshop environments were improved (e.g. with the addition of electrical equipment such as air conditioners) resulting in a corresponding increase in electricity consumption. The Company re-evaluated the reasonableness of its targets based on actual operating conditions adjusting the 2027 target for electricity consumption per unit of operating revenue from a 10% reduction compared to the 2024 level to a target of maintaining it within ±5% of the 2024 level. The target of achieving 15% green electricity usage remains unchanged ensuring that the goals are practical and achievable. 822025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Energy Management Initiatives The Company integrates the concept of green development into all aspects of its operations including production energy use logistics packaging office work commuting business travel and supply chain management. It continuously improves energy efficiency through a series of measures such as optimizing its energy structure advancing equipment upgrades and energy-saving renovations and strengthening the development of digital and intelligent platforms. Simultaneously the Company actively promotes energy conservation awareness guiding employees to adopt energy-saving practices and driving the effective achievement of its energy management goals. During the Reporting Period the Company initiated the construction of rooftop distributed photovoltaic systems at its domestic production bases with a total planned installed capacity of approximately 25 MW expected to generate over 26 million kWh of electricity annually and reduce carbon dioxide emissions by over 13000 tonnes. As of the end of the Reporting Period the grid-connected capacity reached 4.62 MW.Lead Intelligent’s Rooftop Distributed Photovoltaic System Energy Consumption Monitoring Energy Structure Optimization Build a Digital Energy Consumption Monitoring System: Integrated power Increasing the proportion of renewable energy used by planning and energy management platform online dynamic energy monitoring system constructing rooftop distributed photovoltaic power generation projects equipment online monitoring system remote monitoring system for air and by externally purchasing green electricity and green certificates.compressor stations smart forklift management system etc.Equipment Upgrades and Energy-saving Retrofits Equipment Energy Saving: Prioritizing the procurement of high-efficiency Energy Conservation in Auxiliary Systems: Adopting high-efficiency and energy-saving equipment energy-saving lighting fixtures and low-energy-consumption equipment. such as air compression systems and heating and cooling systems or optimizing/retrofitting Building Energy Saving: Improving building insulation performance equipment selection supplemented by energy-saving automatic control systems.optimizing air conditioning and ventilation systems and automatically Energy Conservation in Production Systems: Analyzing existing process flows and production lines starting/stopping systems based on temperatures collected by thermostats to to identify areas for optimization and reducing emissions by adjusting process parameters and reduce electricity consumption. improving production techniques.Awareness Building Raising employees’ daily awareness of electricity and energy conservation through promotional energy-saving slogans. 832025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Energy-saving retrofits to the air compression system Building an integrated management platform for electricity and energy consumption to achieve significant reductions in energy consumption enhance digital energy efficiency control To reduce energy consumption in its production processes the To further strengthen energy consumption management the Company launched an integrated management Company implemented a special energy-saving optimization system for electricity and energy consumption in 2025. This system integrates functional modules for power project for the air compression systems in its various factory areas in system monitoring energy data collection energy consumption analysis key energy-consuming equipment 2025. Through a series of measures including optimizing equipment management and fault alarms. It enables centralized monitoring and unified management of the entire structure managing air compressor pipe pressure and upgrading electricity supply distribution and consumption process in the factory areas providing reliable data support for air compressor software the Company effectively improved the energy-saving optimizations.energy efficiency of its air compression systems. At the equipment level the Company used platform data to rationally allocate air As of the end of the Reporting Period supply based on the actual needs of different factory areas reducing the Company had completed system resource waste. At the pipeline level it implemented precise pressure integration for several production parks in control for air compressor pipes setting an optimal supply baseline Wuxi achieving unified platform-based that meets production needs while lowering energy consumption. management for its main production At the software level it upgraded the control systems of the air bases. By continuously tracking and compression equipment to reduce standby power consumption. analysing energy consumption data the Company can more accurately The Company simultaneously advanced equipment relocation identify high-energy-consumption and pipeline renovation projects. Following the retrofits the overall areas implement targeted improvement Integrated Management System for Electricity and Energy Consumption energy consumption of the Company's air compression system measures enhance operational and decreased significantly compared to 2024 with a total energy maintenance efficiency and gradually reduction of approximately 1019500 kWh equivalent to a reduction establish a data-driven energy of about 540.95 tonnes of carbon dioxide emissions. performance evaluation mechanism.Key Performance During the Reporting Period 530.00MWh/RMB 100 million 14.77% 603.14m3/RMB 100 million 32.51% Electricity consumption per unit Green electricity consumption Natural gas consumption per unit of Decrease compared to 2024 of operating revenue ratio operating revenue 842025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Water Resources Management Water Resources Management Targets Water Resources Management System By 2027 maintain per capita employee water consumption within ±10% of the The Company places a high value on the compliant and efficient management of water resources and has formulated and implemented the Energy and Resource Control 2024 level1. Procedure and the Rain and Wastewater Management Procedure to actively enhance its water resources management standards.Water Resources Management Initiatives The Company continues to refine its detailed water management mechanisms strengthening control at the source and throughout its processes. A water metering and classified management system has been established to measure monitor and statistically analyse data from key water consumption points allowing for the identification of abnormal fluctuations and timely optimization. Concurrently by enhancing pipeline inspections and equipment maintenance the Company promptly investigates and rectifies issues such as leaks spills drips and seepage thereby improving the operational efficiency of the water system and reducing unnecessary losses.In terms of water risk management the Company's water for production and operations is sourced entirely from the municipal supply with no self-extraction activities involved. Therefore the Company's water resource risks are mainly concentrated on the stability of the water supply drainage pressure under extreme weather conditions and environmental compliance. The Company enhances its responsiveness to emergencies like heavy rainfall by improving its rainwater and sewage diversion systems increasing rainwater storage capacity and strengthening the operation and maintenance of drainage facilities which bolsters the resilience of the campus water system.Additionally water environment risks are incorporated into the scope of environmental risk assessments with regular facility inspections and compliance evaluations conducted to ensure the safe and stable operation of the water system. During the Reporting Period the Company caused no significant direct or indirect impact on the surrounding water resource environment due to water abstraction consumption or changes in storage levels.Furthermore we strictly comply with national and local laws and regulations related to water pollution prevention and control and implement rainwater and sewage diversion management requirements to ensure classified collection standardized treatment and compliant discharge.Lead Intelligent promotes the development of rainwater collection systems to enhance rainwater resource utilisation Key Performance During the Reporting Period The Company actively promotes the construction of water recycling facilities and has deployed advanced rainwater collection and utilization systems. These systems employ a three-stage treatment process of ‘Sedimentation-Filtration-Purification’ storing the treated rainwater in collection pools for irrigating the green areas of the factory. During the Reporting Period the Company constructed and commissioned five rainwater harvesting and utilization systemsacross 2477.39 different zones of the industrial park continuously advancing the development of a water-conserving campus and achieving efficient water recycling.tonnes/thousand employees Roof Preliminary Grid Rainwater Collection Water consumption intensity Rainwater Filtration Pipeline Network Greening Water Road Pollutant Initial Rainwater Rainwater Interception Device Diversion Device Storage Tank Overflow Municipal Rainwater Pipeline/ Road Sprinkling Water Initial Diverted Sewage Pipeline Rainwater 1During the Reporting Period the Company's newly constructed plant area was put into operation and employees from previously rented sites were consolidated into the Company's own facilities. As a result water usage scenarios and categories increased accordingly leading to a change in the water consumption structure. The company re-evaluated the reasonableness of its targets based on actual operating conditions adjusting the 2027 target for water consumption per employee from ±5% to ±10% ensuring that the goal is more practical and achievable. 852025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Emissions and Waste Management Emissions and Waste Management System Waste Gas Management Solid Waste Management For waste gas emission control the Company has established a comprehensive waste gas management In solid waste management the Company adheres to the principles of ‘Waste Reduction system and formulated policies such as the Regulations on Waste Gas Emission Management and the Management Resource Utilization and Harmless Treatment’. It has formulated and implemented documents Procedures for Waste Gas Treatment Equipment and Facilities which set clear requirements for the operation such as the Solid Waste Management Procedures and the Hazardous Waste Management Regulations maintenance and emission management of gas treatment facilities. which specify the requirements for the classified collection storage transfer and disposal of various solid wastes. These measures promote the comprehensive utilisation of solid waste and the reduction of hazardous waste ensuring that all types of solid waste are disposed of in Wastewater Management compliance. During the Reporting Period the Company achieved a 100% compliance rate for solid waste disposal.The Company’s production processes do not generate industrial wastewater; wastewater primarily originates from domestic sewage. The Company strictly implements classified collection and standardized disposal of all types of sewage in accordance with environmental requirements. Domestic sewage is pre-treated in septic Emissions and Waste Management Targets tanks and canteen wastewater is treated in grease traps before both are discharged into the municipal network connecting to the Xincheng Wastewater Treatment Plant ensuring that the discharged water quality meets the By 2027 maintain air pollutant emissions per unit of operating revenue within Grade 3 standard of the Comprehensive Wastewater Discharge Standard and the Grade A standard of the Water ±10% of the 2024 level.Quality Standard for Wastewater Discharged into Urban Sewers. By 2027 reduce the amount of hazardous waste disposed of per unit of operating revenue by 10% compared to 2024. 862025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Emissions and Waste Management Initiatives The Company effectively reduces the generation and emission of various wastes through measures such as enhancing waste gas purification introducing monitoring systems for operational electricity consumption process improvements classified collection and standardized disposal of sewage and implementing hazardous waste reduction plans. Additionally the Company actively promotes initiatives like the electrification of official vehicles to lessen the environmental impact of fossil fuel consumption and atmospheric emissions.Key Performance Waste Gas Purification and Treatment: For oil mist waste gas generated during machining processes gas collection devices are installed for centralised collection and the gas is During the Reporting Period channelled through pipelines to specialised treatment facilities for purification ensuring that the concentration of waste gas emissions complies with the Comprehensive Emission Standard of Air Pollutants (DB32/4041-2021).Waste tonnes/RMB 100 million % Gas Waste Gas Monitoring: Introducing an operational electricity consumption monitoring system 0.3637.67 to conduct real-time monitoring of the operational status of waste gas treatment facilities and Hazardous waste disposal per unit of Decrease compared to 2024 carrying out regular environmental monitoring annually to ensure compliance with emission operating revenue standards. 0.01tonnes/RMB 100 million 42.56% Segregated Collection and Standardized Disposal of Wastewater: Domestic sewage is pre- Air pollutant emissions per unit of Decrease compared to 2024 treated in septic tanks and canteen wastewater is treated in grease traps before being operating revenue Wastewater collectively discharged into the municipal sewage treatment plant. 100% Environmental emission compliance rate Hazardous Waste Reduction Management: Formulating a hazardous waste reduction plan and reducing the generation of hazardous waste by installing crawler-type oil-water separation with all emission outlets monitored in line with current Solid Waste equipment in machining workshops to extend the service life of cutting fluids.environmental standards 872025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Circular Resource Utilisation Management System The Company has formulated management standards such as the General Specification for Domestic Whole-machine Shipment Packaging the Specification for Wooden Crate Packaging of Exported Whole Machines the Procedure for Reusing Original Packaging and the Packaging Specification for Incoming Materials of Auxiliary Equipment. These incorporate lightweighting and reduction into the Company’s mandatory standards promoting the reuse of packaging from key components and incoming auxiliary materials for finished product shipments thereby reducing the use of single-use packaging and actively practising the principles of a circular economy.Actions and Initiatives The Company has advanced the development of three major information system modules: RDM (Research and Development Management System) WMS (Warehouse Management System) and SCM (Supply Chain Management System).This achieves full-process digital control over the design material input and approval of finished product and accessory packaging ensuring that packaging optimization plans are implemented and traceable. Furthermore we optimize packaging solutions through multiple initiatives including simulation technology structural optimization simplification of auxiliary materials and packaging reuse promoting resource conservation and recycling.Information System Module Construction Packaging Structure Optimization We identify issues of over-packaging in domestic projects optimize the structure of base supports eliminate Optimising packaging management processes through information systems: unnecessary base plates and end-wood designs for lightweight equipment appropriately increase the Establish an accessory packaging material input module in the WMS system to spacing between adjacent skids and optimize certain timber specifications.achieve customised packaging.Establish a solution approval module in the SCM system creating a closed-loop management process for packaging solutions that includes submission review Simplification and Substitution of Auxiliary Materials archiving and spot checks.Establish a packaging material management module in the RDM system to achieve We optimize the configuration of auxiliary materials and convert some storage packaging into transport fine-grained management of finished product packaging. packaging which shortens project delivery cycles and reduces storage protection costs. By analysing the water vapour transmission rate of vacuum bags we have switched from double-layer bags to single-layer bags and eliminated aluminium-plastic woven bags that offer weaker long-term storage protection thus Application of Simulation Technology achieving a reduction in auxiliary materials.We conduct simulation analysis of packaging methods for the main frames of Li-ion battery equipment building a packaging simulation capability that covers whole Packaging Recycling and Reuse equipment weighing from 0 to 20 tonnes. This simulation data supports customised packaging design identifies transportation risks and optimizes packaging solutions We promote the reuse of packaging from key components and incoming auxiliary materials for finished ensuring transport safety while reducing costs and conserving resources. product shipments increasing the frequency of packaging material use and reducing the input of single- use packaging. 882025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Smart logistics centre empowers intelligent and green logistics upgrades Key Performance During the Reporting Period In 2025 Lead Intelligent smart logistics centre officially commenced operations. The centre deeply integrates more than ten industry-leading technologies including 5G communication RGV/AGV robots an intelligent automated warehouse and a WMS management system achieving fully intelligent 25% 4230m3 operation in core processes. This not only lays a solid foundation for upgrading the logistics system of the Average reduction in wood Accumulated wood Company’s new energy equipment business but also practises the concept of low-carbon development consumption per unit of equipment consumption savings by applying multiple green logistics solutions. 60% 221820m2 Average reduction in vacuum Accumulated vacuum bag usage bag usage per unit of equipment savings Ecological Protection The Company continually monitors the potential impact of its construction and operational activities on ecosystems and biodiversity. It strictly adheres to relevant policies and regulations such as the Opinions on Further Strengthening Biodiversity Conservation to identify risk factors and investigate potential hazards. The Company places great importance on biodiversity protection in its construction and operations striving to create an ecological demonstration park that provides a habitat for various small animals. During the Reporting Period none of the Company’s production bases or operational sites were located within near or in areas of rich biodiversity outside nature reserves. No significant impacts on biodiversity were found to be caused by any of the Circular Utilisation Management Targets Company’s production and operational activities products or services. In the future the Company will continue to assess the potential environmental impacts of its construction 2025 Target: Reduce wood usage by 20% and vacuum bag usage by 20% production and operational activities formulate ecological protection policies and promote the integration of ecological protection concepts into daily management practices contributing to the building of a harmonious global home. 892025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Material Issues Covered in This Chapter SDGs Addressed in This Chapter Employee Rights and Welfare Occupational Health and Safety Social Equality and Diversity Social Contribution and Rural Human Capital Development Revitalization 902025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Protection of Employee Rights and Interests Employment Management Lead Intelligent strictly complies with laws and regulations such as the Labour Law of the People's Republic of China the Labour Contract Law of the People's Republic of China and the Provisions on the Prohibition of Using Child Labour and adheres to international initiatives and standards including the UN Universal Declaration of Human Rights the International Labour Organization Conventions and the UN Guiding Principles on Business and Human Rights and is committed to fully protecting and respecting the legitimate rights and interests of all its employees.The Company continuously improves its management system for employee rights and interests and has formulated a series of policies and regulations including the Employee Handbook the Compensation Management System and the Benefits Management System. This system covers key aspects such as recruitment labour contract management compensation and benefits distribution performance evaluation career development and employee grievance and rights protection clarifying the boundaries of rights and responsibilities and management standards to ensure that all employment practices are compliant transparent and enforceable. In 2025 the Company revised the Regulations on the Management of Child Labour and Underage Workers further clarifying the responsibilities of each department in recruitment screening and on-the-job management and improving the mechanisms for preventing identifying and remedying child labour risks to effectively protect the legitimate rights and interests of underage workers.Prohibition of Forced Labor Good Working Conditions Committing to not restricting employees’ freedom of movement in the workplace and Working hours management: Prohibiting forced overtime avoiding or reducing overtime resolutely prohibit any form of forced labor and modern slavery. or excessive working hours and setting maximum working hours.Compensation management: Adhering to the principle of equal pay for equal work and ensuring the provision of a competitive living wage.Benefits management: Committing to equal benefits for all employees and continuously Prohibition of Child Labor enriching the types of employee benefits.Training and development: Committing to fair and transparent career advancement paths for all employees and providing multi-level multi-format training and learning resources.Committing to prohibiting any form of child labor employment and prevent the use of child Occupational health and safety: Committing to ensuring the occupational health and labor through identity verification routine inspections and awareness campaigns.safety of all employees and relevant parties through systematic and standardised management.Respect for Freedom of Association and Collective Bargaining Anti-discrimination and Anti-harassment Respecting the rights of all employees to freedom of assembly to join trade unions and to Committing to prohibiting any form of discrimination or unfair treatment such as violence engage in collective bargaining.insults and harassment including sexual harassment and sexual violence. Ensuring open channels for democratic communication with employees and guaranteeing their rights to active participation feedback negotiation and supervision.Lead Intelligent’s Labour Practice Commitments 912025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Key Performance Equality and Inclusion During the Reporting Period Lead Intelligent continuously promotes the creation of a diverse equal and inclusive workplace ecosystem. In 2025 the Company formulated the Regulations on the Protection of Vulnerable Groups which cover key areas such as recruitment job assignments vocational training 0 Incidents of non-compliant employment such compensation and benefits and career advancement. These regulations define differentiated protection measures and management as child labor forced labor harassment or requirements for groups including disabled workers underage workers female employees ethnic minorities and foreign employees ensuring discrimination that all systems are implemented with clear accountability and well-defined responsibilities. 100 New employee rights % training coverage rate Cultural Exchange Activities via training for new hires and key personnel Organising cross-cultural exchange activities to promote cultural integration between ethnic minority (recruitment frontline management) covering and foreign employees and their teams.compliant employment anti-forced labor anti- discrimination anti-harassment and democratic Diversity Training communication Incorporating content on employee rights and anti-harassment into onboarding training to enhance awareness of workplace gender equality and anti-harassment.Conducting training on diversity and inclusion with content covering cultural sensitivity accessible communication and anti-discrimination policies.Family-Friendly Benefits Establishing nursing rooms across all facilities and implementing rights and protections such as parental leave (10 days per year until the child reaches 3 years of age) and lactation leave (1 hour per day during the breast-feeding break with incremental increases for multiple births) while providing flexible work arrangements and exclusive benefits.Key Performance As of the end of the Reporting Period 2069 Femaleemployees 13.64 Percentage of the 509 Ethnic minority Percentage of the % total workforce employees 3.35% total workforce 922025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Human Rights Due Diligence Lead Intelligent consistently maintains a ‘Zero Tolerance’ stance on human rights violations. The Company adheres to authoritative domestic and international standards such as the Responsible Business Alliance (RBA) Code of Conduct the SA8000 Social Accountability International Standard the Sedex Members Ethical Trade Audit (SMETA) and the Solar Stewardship Initiative (SSI) standard integrating their principles into its internal policies and management systems to ensure the continuous and effective protection of labour and human rights.The Company has established a comprehensive human rights due diligence process that covers all employees suppliers and partners to ensure all parties comply with labour and human rights standards. During the employee onboarding process a dual ‘Manual + System Identification’ mechanism is used to verify and record identity information. Compliance is further ensured through dynamic monitoring throughout the entire employment cycle from onboarding to departure.The Company’s core human rights concerns include working conditions occupational health and safety compensation and benefits working hours management and anti-discrimination and anti-harassment. Through internal policies such as the Employee Handbook the Benefits Management System and the Safety Risk Hierarchical Management and Control System we create a safe fair and healthy working environment for our employees. For groups such as new employees and foreign employees the Company provides specialised training and support measures to help them integrate quickly and fully understand their rights.When human rights risks or violations are identified we will take the following mitigation and remedial measures: Immediately stop infringing Provide timely assistance Systematically analyse the acts and hold the relevant and support for the root cause of the problem personnel accountable. restoration of rights and and implement long-term interests for affected improvement measures to employees. prevent similar issues from recurring.Human Rights Violation Handling Mechanism 932025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Talent Cultivation and Development Governance Impacts Risks and Opportunities The Company's Human Resources Centre implements a Centre of Excellence (COE) + HR Management Business Partner (HRBP) management model and has established Lead Intelligent University as a platform for professional talent cultivation. The COE team is responsible for developing human resources policy systems and management tools while HRBPs work closely with Talent Acquisition business frontlines to accurately understand needs and coordinate resources ensuring that talent development strategies are highly aligned with business realities. Lead Intelligent Lead Intelligent adheres to a talent strategy that prioritises internal development supplemented by external University integrates internal and external training resources focusing on the project-based recruitment of high-calibre individuals. In line with its annual workforce planning the Company continuously implementation of business training needs. It systematically promotes specialized training expands its talent acquisition channels through internal selection and competition campus recruitment social curriculum development instructor team cultivation and the operation of an online learning recruitment and headhunting services to meet the needs of its rapid growth. In 2025 to adapt to its international platform providing systematic support for talent pipeline development. development strategy the Company further optimized its organizational structure and talent layout. It actively recruited international talent highly educated professionals and senior management personnel to build a high- quality diverse team capable of supporting global business expansion and enhancing core competitiveness.Strategy The Company places great importance on school-enterprise cooperation continuously deepening its collaborative relationships with professional institutions in the domestic intelligent equipment field. Through various school- Guided by its mission and management philosophy of ‘Seeking Well-being for Employees’ enterprise cooperation projects the Company enhances its employer brand influence to achieve targeted the Company is committed to building a professional diverse and international talent team. attraction and proactive pooling of outstanding talent. In 2025 the Company conducted a variety of school- By establishing a comprehensive and systematic talent training system and multi-channel enterprise cooperation activities including company tours summer internships joint school-enterprise classes career development paths we aim to unlock employee potential enhance team innovation information sessions and campus job fairs. It also offered specialized onboarding training for recent graduates and cohesion and build a strong talent pool to support our competitiveness in the global to help them quickly transition into their professional roles and integrate into the corporate culture. Additionally market. the Company has established the ‘Wang Yanqing Scholarship’ at six key universities including Harbin Institute of Technology to provide financial support and growth incentives for outstanding students with high potential. 942025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Talent Cultivation In 2025 with the core objectives of ‘Enhancing Organisational Effectiveness Building a Learning Organisation and Strengthening Internal Drive’ Lead Intelligent comprehensively advanced internal cultivation talent mobility and digital learning initiatives achieving 100% training coverage across the Company. By leveraging the expanded curriculum of Lead Intelligent University the efficient operation of the ‘Lead Intelligent e- Learning’ platform and a variety of themed activities the Company has deepened its blended ‘online + offline’ learning model. This has established a systematic and digital talent cultivation system providing a solid talent foundation for the Company's high-quality development.Think Big Start Small Act Fast Director Leadership Improvement: According to the capability requirements (Newly Appointed High Potential) of different levels in the capability model the management post talent Manager cultivation project is designed in layers and grades giving consideration (Newly Appointed High Potential) Leadership to ‘present’ and ‘future’.center Supervisor (Newly Appointed High Potential) R&D Manufacturing Commissioning Sales Professional Capability Improvement: Work with various professional sequences to build a professional capability training system and Supply Chain Quality Professional cultivate professional talents.capability center Project Management Function Skills ...Publicity of corporate strategy corporate culture and values Corporate Culture Lecture Series General Capability: Efficient meetings communication speeches and General Competency Training business etiquette General capability center Integration of New Employees: School recruitment and social New Employee Training (Experienced Hires & Campus Hires) recruitment Employee Training System 95 Lead Intelligent e-Learning Online Platform2025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Training Programme Training Content Management training: Covered approximately 97 core management personnel throughout the year Onboarding training effectively inspiring their enthusiasm for learning.The Company achieves 100% coverage of Leadership Specialized skills enhancement: Launched 11 specialised training courses in areas such as finance and onboarding training for new employees with core Training human resources covering 466 participants at the manager level and above.content including corporate culture occupational Hierarchical leadership programmes: 131 individuals graduated from the supervisor-level programme; Health and Safety employee rights and interests 88 individuals graduated from the manager-level programme.integrity and compliance and information security as compulsory courses. R&D capability building: Implemented specialised development for TPM and product managers A quarterly fixed training and assessment created 15 mechanical and electrical engineering courses and conducted training on overseas project Professional mechanism is established to reinforce knowledge design capabilities and CE compliance.Skills Training of information security integrity and compliance Functional skills enhancement: Launched learning maps for key areas and positions such as quality and traffic safety. finance human resources and sales and organised specialised study camps.Themed learning month activities: Hosted 10 major themed learning months throughout the year Annual General Skills on topics including AI lean management physical and mental health finance and quality. Activities Employee Specialised skills development training Training such as themed courses knowledge competitions and offline roadshows reached a cumulative total Development In line with annual business priorities and of over 10000 participants.Plan talent planning the Company designs and implements multiple customised training New Employee Company level onboarding training achieved 100% coverage for new employees from social programmes including specialised training Onboarding recruitment.for key positions such as TPM and product Training Conducted training camps for 2025 graduates to help them quickly integrate into the workplace.managers and specialised financial training while also incorporating content Employee Training Programmes such as diversity and respectful workplace communication into the regular training system of open courses and themed months.Leadership training The Company conducts full value chain business and financial empowerment training for management personnel carries out systematic leadership feedback assessment and iterative optimisation and enhances the job and position system to provide employees with clear growth paths and standards. ‘Leadership Camp Launch’ Training Event ‘Business Simulation’ Employee Training Event 962025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Talent Development Promotion and Incentives Lead Intelligent upholds an open talent development philosophy of ‘Upward or Downward Internal or External’ has established a professional organisation and talent development team to systematically support employees' career development planning and has formed a talent management mechanism featuring multi-dimensional development and training goal-oriented management supervision and specific assessment and evaluation. The Company has fully opened up career development paths for employees with core components including talent reserves talent reviews echelon building and internal talent selection and appointment.To fully stimulate employee potential the Company has built a dual-track career development path that combines technical and managerial promotions creating a growth space where technical and management talent can transition between tracks and supporting employees in choosing suitable development directions based on their strengths. Concurrently the Company has established an internal talent pool and a job rotation mechanism continuously broadening internal recruitment channels and optimising internal mobility policies to effectively activate internal talent resources.Management Professional Empowerment Depth Pathway Pathway Vice-president Industry-level expert Director Company-level expert Manager Section leader Supervisor Technical contributor Frontline Employees Dual-track Promotion Path for Employees Additionally the Company has established a combination of short-term medium-term and long-term incentive mechanisms utilising methods such as salary adjustments year-end bonuses excellence awards and equity incentives to effectively energise the core team and to attract and retain outstanding talent. In October 2025 the Company implemented an equity incentive plan for 1134 individuals including certain directors senior management personnel and core key employees publicly granting restricted shares to ensure the steady improvement of the Company's performance and to advance the realisation of its development strategy and business objectives. 972025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Remuneration and Performance Lead Intelligent continuously optimizes its remuneration and performance management systems and commits that its remuneration system will not differentiate based on non-capability factors such as gender ethnicity religion or marital status while strictly adhering to the principle of equal pay for equal work. In 2025 the Company continued to refine its remuneration system focusing on salary diagnostics standard-setting and structural optimization. Through internal job evaluations and external market benchmarking a remuneration standard system centred on job value performance and market competitiveness was established. Regional differentiation coefficients were also introduced to align salary levels more closely with market conditions in different locations providing employees with fair competitive and incentive-oriented remuneration.The Company has built a full-cycle performance management system guided by strategic objectives that covers both organisational and individual performance. It relies on a dual-driver model of the Balanced Scorecard (BSC) and Personal Business Commitment (PBC) to precisely cascade strategic goals down to departments and positions. Through a digital performance management system the Company has moved the entire process online including goal setting progress tracking assessment and feedback coaching ensuring that the management process is efficient transparent and traceable. At the same time the Company continuously optimizes its performance processes and incentive mechanisms to empower managers motivate high-performing talent enhance talent attraction and retention and build a high-performance team with strong cohesion and execution thereby injecting sustained internal momentum into the long-term development of the enterprise.Assessment Dimensions Organizational performance: Covers finance projects internal operations and risk management.f t 4 Individual performance: Covers key tasks team development/personal development. Key task n o ec tio eff objectives are derived from the Company's strategic decomposition and are closely aligned with job pli ca ce an responsibilities. Ap rm erf o p Evaluation Mechanism Performance 31 Frontline employees: Employee self-assessment supervisor evaluation level-by-level calibration Management Concept and company review.Managers and above: 360° assessments including strategic alignment evaluations from superiors ss leadership feedback from subordinates and collaboration contribution evaluations from cross- e pro c t departmental colleagues. nc e en a em Core project members: Project performance evaluation included. g rfo rm na 2 Pe ma Evaluation Frequency The Company uniformly organises semi-annual/annual assessments.n Each business unit/department flexibly arranges monthly or quarterly performance reviews and Perfor i o m at coaching based on business characteristics. ance commun ic Employee Performance Evaluation Mechanism Employee Performance Evaluation Process 98 ce an rm tin g o erf al s et P go nc e mar tio n rfo Pe l ua ev a2025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices The Company links ESG performance with employee performance promoting a synergistic alignment between sustainable development goals and Metrics and Targets employees' individual value creation.Sustainable Development Indicators Management Objectives The Company incorporates ESG assessment indicators into the organisational performance of all first-level departments including Enhance organizational effectiveness and stimulate but not limited to compliance indicators (conflicts of interest anti-fraud zero information security incidents) environmental talent v i tal i ty: Strengthen the leading role of indicators (energy management targets) and safety indicators (zero workplace safety incidents). management cadres and systematically improve the The performance evaluation indicators for ESG-related management departments specifically include: leadership skills of key echelons; upgrade the job and Environment and carbon management: Completion rate of energy and carbon targets energy conservation and emission reduction position system and qualification standards to clear environmental compliance management etc. talent development channels and continuously boost Labour management: Production accident control and prevention training hours talent turnover rate etc. the organization's internal momentum.Business ethics: Anti-corruption training rate case closure rate for reported incidents etc. Optimize the training system and enhance knowledge Customer relationship management: Customer satisfaction etc. retention: Strengthen the development of a learning Supplier management: Supplier access compliance review status etc. organization and the application of digital platforms; Information security: Number of information security incidents etc. continuously enrich learning resources and expand the internal team of instructors to ensure full coverage of employee training.Linkage with Performance As a component of the organisational performance of first-level departments the achievement of ESG assessment indicator targets Management Progress directly affects departmental performance evaluation results which are in turn linked to the payment of employee performance bonuses.First-level and second-level managers: Required to concurrently undertake the general ESG organisational performance targets of During the Reporting Period their respective departments and incorporate them into their personal performance responsibilities ensuring the implementation of ESG goals at the departmental level. Conducted a total of 3076 employee training sessions1 All levels of employees in ESG-related management departments: Specific ESG indicators within the departmental organisational achieving 100% training coverage for all employees.performance are cascaded down and undertaken by employees of various levels within the department according to their job Achieved an average learning time of 37 hours per responsibilities forming a complete responsibility chain from the department head to front-line execution roles. employee with a total of 565753 hours.Other levels/front-line employees in other departments: General ESG organisational performance targets from first-level Added 80 new certified courses and 88 certified departments are channelled through departmental team performance indirectly affecting the performance results of front-line instructors.employees Mechanism Linking ESG Performance to Employee Performance 1The training sessions include only centralized in-person training excluding online self-paced courses. 992025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Employee Care and Communication Benefits System Employee Care Lead Intelligent continuously optimizes its employee benefits In 2025 the Company strengthened its employee care initiatives. Leveraging a diversified benefits system and a wide range of cultural system and is committed to creating a healthy harmonious and activities it continuously enhanced its care mechanisms to foster a work environment filled with a sense of belonging and vitality sustainable workplace ecosystem to enhance employees' sense thereby genuinely improving employee well-being and team cohesion.of belonging and well-being thereby constantly strengthening the Company's ability to attract and retain talent. Employee Care Activities Festival Care Care for Female Employees Family Care Statutory Benefits The Company organizes a series of During Women's Day A new 'Lead Intelligent Second Generation' parent-child interactive module themed activities centred around complimentary wellness check- was launched featuring edutainment activities such as 'Little Eye Guardian' Social security and housing provident fund traditional cultural festivals and ups were provided to all female and 'Little Dental Pro' with nearly 200 children of employees participating.Paid annual leave important dates such as the Lantern employees in the Zhuhai area Various departments regularly organize parent-child activities covering High-temperature allowance Festival Women's Day Children's with a special focus on screening more than 5000 employees and allowing them to feel family support amidst Day and the Mid-autumn Festival for cervical and breast cancer to their busy work schedules.creating a warm atmosphere and promote female health. The 'Newborn Care Plan' continues to be implemented providing new conveying a sense of corporate parents with customised newborn gift packages and practical parenting humanistic care. support.Cultural and Sports Activities Health Protection The Company regularly organizes various interest clubs for ball sports reading and music as well as fitness Commercial insurance is purchased activities. Throughout the year it held four major leagues for table tennis badminton basketball and for all expatriate employees to Exclusive Benefits at Lead Intelligent football along with themed concerts with over 180 cultural and sports activities run on a daily basis. strengthen risk protection for The 'Health Club' series of activities was launched covering a variety of classes including aerobics boxing overseas and expatriate positions.Employee care benefits: Birthday gifts wedding gifts and Zumba.newborn gifts etc. Through various interest associations over 2000 employees are able to develop their hobbies and enhance Team-building benefits: Team-building activities communication in their spare time.company or department annual galas etc.New employee benefits: Onboarding gift packages etc.Holiday benefits: Festival gifts etc.Health and fitness benefits: Annual health check-ups for all employees sports clubs and fitness activities Employee Benefits System ‘Little Pilot’ Parent-child Activity Employee Basketball Tournament Employee Badminton Tournament Employee Table Tennis Tournament 1002025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Employee Communication The Company adopts an open approach for communication treats every employee with Complaint Policy equality and sincerity. Employees are encouraged to provide opinions and suggestions and Employee Communication Mechanism seek solutions through the official and formal communication platform and channels.Lead Intelligent places great importance on employee communication and has built a multi-level communication system covering the Company managers and employees. This Online Email WeCom - Mediation Committee Feedback Assistant Mediation Committee - Hotline system includes general employee meetings tiered morning and regular meetings face- Complaint channel to-face sessions with senior executives a general manager's mailbox for business units a Channel 'Voice of Employees' suggestion box and an engagement survey. Furthermore the Company Offline Immediate superior HRBP employee seminar Mediation Committee Office channel collects constructive feedback through a Continuous Improvement (CI) suggestion platform to promptly understand employee needs increase participation in management and cultivate an open transparent and efficient communication environment. Unreasonable behavior of employees and superiors that harms the interests of the Company Complaint Scope and employees or behavior that violates the Company’s management system or national laws The Company integrates online and offline communication channels using WeCom and regulations announcements official accounts and feature columns as well as advertising displays roll- up banners cultural walls and notice boards to ensure that policies regulations and care- related information reach every employee efficiently. Concurrently a feedback mechanism with dedicated personnel for follow-up has been established to respond promptly to employee Principles of Handling Confidentiality fairness timeliness and accuracy requests thereby enhancing trust and improving operational efficiency.To improve the management of employee relations during and after departure the Company Employee Grievance Mechanism has added an HR contact information prompt to the resignation application process. This explicitly provides the contact telephone number for an employee relations specialist establishing a clear official communication channel. This ensures that former employees can Preliminary Mediation Professional Arbitration Legal Litigation conveniently seek consultation and provide feedback even after their employment relationship has ended effectively reducing the risk of misunderstandings and disputes arising from insufficient communication. After receiving the complaint we If the two parties fail to reach In specific circumstances if the will arrange special personnel to an agreement during the arbitration outcome fails to meet conduct preliminary investigation preliminary mediation we both parties’ requirements we Employee Grievance Mechanism to understand the details of the will submit the dispute to a encourage employees to resolve dispute and the claims of both professional arbitration institution disputes through legal means.Lead Intelligent is committed to creating a fair and efficient employee grievance and labour parties. On this basis we will try for arbitration. The arbitration We will actively assist employees dispute resolution mechanism. In 2025 the Company revised the Communication and Grievance to mediate the two parties to institution will make a fair and in legal proceedings to ensure Management System clarifying the scope of grievances accepted optimising the entire process reach a settlement. equitable ruling on disputes that their legitimate rights and from submission and investigation to feedback and archiving and strictly guaranteeing the in accordance with relevant interests are protected by law.confidentiality of information for employees who file grievances. The system requires all laws regulations and company complaints to be handled promptly and fairly ensuring that employees' opinions are heard policies.and their concerns are addressed while also providing necessary psychological and legal support to genuinely protect their legitimate rights and interests. Labour Dispute Resolution Mechanism 1012025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Employee Engagement Survey Lead Intelligent has established a closed-loop management system for employee satisfaction and engagement covering ‘Survey-Analysis-Improvement-Feedback’ and regularly conducts flexible and comprehensive engagement surveys while continuously optimizing the survey model. The results are used to drive various departments to formulate phased improvement plans with implementation ensured through monthly tracking and regular communication. Employee engagement performance is integrated into the ESG management system helping optimize the employee experience and organizational health thereby promoting the sustainable development of the enterprise.In 2025 the effective participation rate in the Company's engagement survey was 83.74% with 87% of employees responding as 'Engaged/Satisfied'1.Corporate D2. At work I receive timely recognition or praise for doing a good job.Culture D1. I have a clear understanding of and identify with the Company's values.Career C3. I have clear direction and phased goals for my personal growth path within the organization.Development C2. Over the past year the Company has provided me with training and resource support to help enhance my personal capabilities.Value Learning and Development C1. There is someone within the Company who discusses my learning and development with me.Recognition Communication B8. In the Company I have built an effective interpersonal network that helps me work efficiently and I have also made some and Collaboration good friends.B7. At work my communication and collaboration with other colleagues in the Company run smoothly and we work together Learning and to achieve our goals.Work B6. My colleagues and I always maintain a positive working attitude and the overall team morale is high.Development Atmosphere B5. My daily work allows me to fully leverage my personal strengths and professional skills.B4. The Company's mission / goals make me feel that my work is important and valuable.Management B3. My supervisor listens to different team members' opinions with an open mind supports innovation and continuously Style drives the team to explore better solutions.B2. My supervisor communicates and provides feedback with the team efficiently and transparently is good at delegating Working and offers effective coaching and support.Relationship B1. My supervisor clearly and efficiently communicates goals to team members and establishes a sound tracking mechanism to ensure that all tasks are advanced effectively.Work A5. Within the organization I can obtain greater rewards by taking on more responsibilities and achieving better business Compensation results.Working Processes and A4. I can quickly access the information and resources I need to carry out my work.Conditions Policies A3. The existing organization policies and processes enable me to work efficiently.Working Hours A2. I am able to find a relative balance between work and personal life.Work Environment A1. Working here I do not experience any discrimination or differential treatment.1The statistical scope of the data does not include production workers. Employee Engagement Survey Model 1022025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Occupational Health and Safety Occupational Health and Safety Management System Lead Intelligent strictly adheres to national laws and regulations such as the Labour Law of the People's Republic of China the Law of the People’s Republic of China on Work Safety and the Law of the People's Republic of China on the Prevention and Control of Occupational Diseases. The Company consistently implements the policy of 'Safety Priority Prevention First and Comprehensive Management'. Guided by a safety and environmental management vision of 'Zero Injuries Zero Accidents Zero Occupational Diseases and Zero Pollution' Lead Intelligent upholds the principle of 'Life above All' and continuously improves its occupational health and safety management system. As of the end of the Reporting Period the Company had formulated and issued over 100 corporate safety rules and regulations including the Safety Production Responsibility System the Hidden Danger Investigation and Management Regulations the Labor Personal Protection Equipment Management Standards and the Safety Accident Management Procedures forming a complete safety management system framework. It has also passed the audit for the ISO 45001 Occupational Health and Safety Management System1.Organizational Structure Lead Intelligent has established an EHS Management Committee chaired by the head of the enterprise Responsible for formulating the work safety responsibility system safety work with heads of various departments as members. This EHS plans and annual occupational health and safety targets and indicators. These committee serves as the highest body for occupational Management are then broken down and assigned to various business units and subsidiaries. health and safety management in the Company Decision-making Committee All employees are required to sign a safety pledge and the achievement of these taking full responsibility for related work and holding Management targets is linked to the annual organizational performance.a special meeting each quarter. Simultaneously the Company implements safety responsibilities at every level and builds a comprehensive work safety Safety and Coordinates with the Group's EHS Management Committee to manage the responsibility system that extends both horizontally Environment Coordination and implementation of specific safety work across all business units.and vertically ensuring that accountability covers Department Advancement every level from the head of the enterprise to front-line employees. In addition the Company has established a Safety and Environment Department to coordinate Based on the safety education and training plans safety inspection plans with the EHS Management Committee in advancing Business Units and emergency drill plans formulated by the Lead Group business units and specific safety initiatives. and Subsidiaries Implementation subsidiaries develop their own EHS target implementation plans and regularly track and assess the completion of targets and indicators for each unit.EHS Organisational Structure 1The scope of this system certification covers Wuxi Lead Intelligent Equipment Co. Ltd. and its following controlled subsidiaries: Jiangsu Lead Technology Co. Ltd. Jiangsu Lead Hydrogen Intelligent Equipment Co. Ltd. Wuxi Lead Laser Intelligent Equipment Co. Ltd. Guangdong Lead Intelligent Logistics Technology Co. Ltd. and Zhuhai Titans New Power Electronics Co. Ltd.; the geographical boundary encompasses its five main production bases located within China. 1032025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices The Company regularly implements a dual prevention mechanism of risk classification control and hidden Work Safety Management danger investigation and treatment organises various safety training and education sessions and carries out unique practices such as Behavior-based Safety Safety Risk Management (BBS) and 'Safety Performance Evaluation'. Through The Company comprehensively promotes safety risk management. In accordance with the Safety Risk Hierarchical Management and Control System it the work safety responsibility system it solidifies conducts all-encompassing risk identification from the three dimensions of process flows equipment models and work sections and procedures and the chain of accountability for safety forming a formulates classified control measures covering five aspects: technology management training labour protection and emergency preparedness. In 2025 governance structure where the 'regulatory baseline' the Company revised the Control Procedures for Hazard Identification and Risk Assessment and established a cross-disciplinary risk assessment team to conduct and 'management high line' work in synergy.pre-emptive risk assessments for new processes new technologies new equipment new materials and major risk operations effectively controlling the risks associated with these ‘Four New’ activities.Each department is The general manager is The EHS Management The Safety and Environment responsible for formulating its responsible for organizing Committee is responsible for Department is responsible own ‘Safety Risk Hierarchical and implementing the organizing special meetings for supervising the Management and Control management and control of to examine and analyze the implementation of safety List' according to the safety major risks. implementation and control risk management and risk identifi cation list and of the identifi ed major and control of each department decomposing it to each post. moderate risks every year and and making real-time set the focuses of safety risk adjustment to prevent a control for the next year. 'lifetime rating'.Safety Risk Management Process Lead Intelligent develops an intelligent forklift management Key Performance platform to enhance safety control capabilities Lead Intelligent’s intelligent forklift management platform integrates the Internet of Things During the Reporting Period biometric recognition and spatial positioning technologies and strictly enforces a ‘Person- vehicle Binding’ mechanism through facial recognition and fi ngerprint verifi cation to eliminate unlicensed operation. At the same time based on BeiDou/GPS positioning technology the 100% platform sets electronic geofences for each forklift which immediately trigger audible and Coverage of operational sites in visual alarms and automatically reduce speed if operating boundaries are crossed eff ectively employee health and safety risk controlling the risk of losing control in work areas. Furthermore the system can automatically assessment collect and analyse data such as forklift operating hours and ignition records providing precise data support for the Company to optimize operational scheduling and improve ISO 45001 Occupational Health and Safety Management System effi ciency.Certifi cation for Lead Intelligent and its Subsidiaries 1042025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Safety Hazard Identification and Inspection The Company strictly implements the Hazard Investigation and Management Regulations and systematically conducts visible felt leadership inspections1 daily patrols and various specialised checks to achieve full coverage of all work sections processes and procedures. Based on the Company's safety hazard classification standards a closed-loop responsibility management system for hazards is implemented through an information system. In 2025 the Company achieved a 100% hazard rectification rate.Safety Emergency Response The Company has formulated policies such as the Emergency Preparedness and Response Control Procedures and the Safety Accident and Incident Management Procedures to standardize processes for emergency preparedness response work-related injury handling and emergency incident management clarifying the powers and responsibilities of the emergency organisation and continuously conducting emergency rescue drills. The Company effectively reduces the risk of work-related injuries for employees through a dual prevention mechanism safety inspections and safety training. In the event of a work-related injury the Company strictly follows procedures for reporting investigation and cause analysis and tracks and rectifies identified issues to form a closed-loop management system.Related Party Safety Management Key Performance The Company places high importance on the safety management of related parties strictly adhering to policies such as the Supplier Safety Management System and the Stakeholder Management Control Procedures. In 2025 the Company released the Supplier Work Safety Management During the Reporting Period Manual established a graded and classified review mechanism and achieved a 100% signing rate for safety management agreements with new suppliers for the year. Concurrently the Company developed and operates an online training and briefing platform for suppliers entering its 100% facilities integrating training examinations with access approval and establishing a linkage mechanism between entry assessment and security Signing rate for safety management screening to enhance the convenience of the entry process while ensuring operational safety. In terms of client-side safety management the agreements with new suppliers Company strictly adheres to project specifications by assigning dedicated full-time and part-time safety administrators to sites strengthening safety control throughout the entire process to ensure the smooth and orderly delivery of projects.Chemical Management The Company complies with laws and regulations related to chemical safety in China and overseas including the Regulations of the People's Republic of China on the Control of Monitored Chemicals the Regulations on the Safety Management of Hazardous Chemicals the Interim Provisions on the Supervision and Administration of Major Hazard Sources of Hazardous Chemicals and the Catalogue of Hazardous Chemicals and has systematically prepared and implemented the Chemical Life-cycle Management Procedures. This policy covers the entire life cycle of chemicals from purchase storage and use to disposal defining management standards and risk control requirements for each stage to achieve compliant management and full-process safety control.The Company has formulated and strictly implements a hazardous chemical management process utilising information systems to manage the entire approval process for chemical procurement requests and the introduction of new chemicals on-site. In accordance with local regulations where it operates the Company implements bans and substitution management for restricted substances and chemicals with high toxicity or severe occupational health hazards. In 2025 the Company organized specialized management training for all employees who handle chemicals achieving 100% coverage. Additionally the Company develops annual plans for specialised chemical training and Emergency drills enhancing employees' understanding of chemical properties through systematic training and strengthening their emergency response capabilities through practical drills.1Visible felt leadership inspections are a management concept where company leaders through their own demonstrations of safe behaviour help employees perceive the importance of production safety. 1052025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Occupational Health Management In occupational health management the Company strictly adheres to the Occupational Health Management Standards implements the ‘Three Simultaneous’ principles for occupational health in new construction projects and conducts regular evaluations to ensure protective facilities are commissioned concurrently. The Company conducts regular hazardous factor monitoring in all workplaces with occupational hazards ensures that employees in relevant positions undergo pre-employment in-service and post-employment occupational health check-ups and establishes individual occupational health records to systematically protect employees' occupational health rights and interests.Occupational Health Hazard Occupational Health and Safety Audit Identification and Control In 2025 the Company systematically conducted internal and external audits of its occupational health and safety management system to ensure its continued effective operation. The Company has established a systematic internal audit mechanism To address major occupational hazards such as noise and dust in the production conducting at least one comprehensive internal audit covering all departments annually and organising annual inspections and process the Company has prepared the Identification List of Post Occupational Hazard on-site patrols for specific areas such as occupational hygiene and safety to achieve regular self-supervision. At the same time the and regularly conducts occupational hazard factor testing in the work environment Company undergoes annual surveillance audits by external third-party organisations which conduct rigorous reviews of the entire to identify various hazards and harmful substances achieving effective prevention operational process of the management system through on-site inspections document reviews and interviews.and control of occupational hazards through measures such as installing vibration damping facilities and dust collection devices distributing personal protective equipment and conducting regular occupational health examinations and Key Performance occupational disease hazard factor monitoring.During the Occupational Health and Safety Reporting Period 100% 100%Coverage rate for employee occupational Pass rate for inspections of workplaces Inspections health examinations with occupational hazards The Company formulates a monthly occupational health and safety inspection plan which includes occupational protection facilities sanitation equipment and canteen environments within its scope promptly reporting any identified hazards Food Safety Management or non-conformities and setting deadlines for rectification. Concurrently the In 2025 Lead Intelligent actively promoted enhancements in employee catering safety and health management continuing to Company conducts regular specialized inspections of the working environment to provide safe healthy and high-quality catering services to its employees.ensure it meets relevant standard requirements effectively safeguarding employee occupational health and operational safety.First Aid and Emergency Treatment The Company completed a The Company has engaged a third- The Company has initiated The Company equips each of its sites with automated external defibrillator (AED) comprehensive upgrade of tableware party professional testing agency preparatory work for a catering and provides first-aid kits in every workshop to ensure employees can receive timely cleaning and drying agents across all to establish a regular sampling and committee and is piloting the treatment in case of an accident. The Company also regularly conducts training and its factory sites uniformly replacing testing mechanism for the continuous participation of employee drills on first-aid knowledge including cardiopulmonary resuscitation (CPR) burn the original national standard Class B monitoring of the quality of tableware representatives in on-site inspections first aid and the Heimlich maneuver to help employees master basic first-aid skills. products with safer Class A products disinfection and cleaning ensuring and management to promote Furthermore the Company has signed medical rescue agreements with nearby that meet food-grade standards. dining safety. transparency in catering services and increase employee involvement.hospitals to ensure that injured employees receive professional medical treatment immediately in the event of an incident. Canteen Food Safety Management Measures in 2025 1062025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Building an Occupational Health and Safety Culture The Company is committed to creating a multi-layered and multi-dimensional occupational health and safety training system. Leveraging the ‘Lead Intelligent e-Learning’ online platform it regularly conducts specialized training for managers team leaders personnel returning to work after a transfer and ‘Four New’ education while strictly implementing a three-tier safety education system. The training content focuses on core areas such as job operating procedures hazard identification and road traffic safety systematically enhancing the safety awareness and risk prevention capabilities of all employees.Event Content Progress in 2025 Conducted a total of 12 daily employee safety training sessions with 179402 Developed an annual safety education and training plan participant attendances.covering multiple dimensions including three-tier safety Conducted health and safety training for production staff with an average of 24 Safety Education and education for new employees entry training for suppliers daily training hours per person and 100% coverage.Training education for team leaders safety management training for Completed entry training for 10962 supplier personnel achieving 100% coverage.middle and senior management and daily safety education Organized certification for 214 specialised operation personnel and 92 specialized for all employees.equipment operators.Organized and planned a series of activities including a safety knowledge competition and an EHS fair (featuring a 48 people were certified in the first-aider training during safety month.Safety Culture safety message wall a simulated experience of drink-driving A total of approximately 5200 participant attendances in series of activities such Development hazards and hands-on first aid practice).as the safety knowledge competition and the EHS fair.Organized a firefighting skills competition with events covering A total of over 8000 participant attendances in firefighting knowledge initial fire extinguishing donning firefighting gear and hose popularisation and awareness training all of whom completed the assessment.connection.Formulated an annual plan for emergency drills including 11 types of drills such as fire evacuation mechanical injury special equipment accidents and typhoon and flood prevention Emergency Drills Conducted 48 emergency drills achieving 100% coverage.covering all production and business departments middle and back-office support departments and long-term on-site suppliers.Lead Intelligent Safety Culture Training System 1072025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Pre-employment Training ‘Firefighting wharf’ construction project Through three-tier safety education training and assessment the Company ensures that new employees master essential To serve surrounding industrial parks and fill the regional gap in professional water intake facilities Lead Intelligent occupational health and safety knowledge. fully supported the government in constructing Wuxi’s first intelligent firefighting water intake wharf within the Lead Intelligent industrial park area; the project which integrates firefighting water intake with safety education enhances the fire safety awareness of all personnel through regular knowledge dissemination and practical drills strengthens emergency response capabilities and handling efficiency and builds a solid foundation for the region’s safe operation and sustainable development.Regular Training An annual safety education and training plan is formulated and implemented accordingly to continuously strengthen employees' safety capabilities. The training subjects include fire safety occupational hygiene and safety first-aider training ground operation of cranes and safety training for supervisors of special operations.Related Party Training The Company provides online safety training for external construction personnel and conducts occupational health and safety management training for suppliers' personnel entering our facilities. Firefighting Wharf Lead Intelligent Occupational Health and Safety Training Project 1082025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Contribution to Community Development Public Welfare and Charity Inclusive Education Lead Intelligent implements the social responsibility philosophy of ‘Integrity Harmony Green Using the ‘Warm Light Public Welfare Fund’ as a platform the Company systematically promotes inclusive education.and Development’ creating the ‘Intelligence for Good’ series of public welfare action plans. Through continuous resource investment and targeted assistance it is committed to narrowing the educational gap These plans clarify the principles of public welfare support key areas project application and and providing more students with accessible opportunities for scientific enlightenment and growth.review processes ensuring that project approvals are scientific procedures are standardized and the use of funds is open and transparent thereby maximizing the rational allocation of public welfare resources and social value. Nurturing new talent in intelligent manufacturing passing the torch — LEAD’s talent development initiative In 2025 Lead Intelligent donated funds to the Wuxi Xinwu District Charity Association to establish the ‘Warm Light Public Welfare Fund’. This fund has a planned total scale of RMB In 2017 Lead Intelligent established the RMB 10 million ‘Wang Yanqing Scholarship’ at Jiangsu Xishan 30 million The Company made an initial donation of RMB 6 million in the first year and has Senior High School to inspire more students to pursue their dreams and give back to Wuxi’s local education committed to continuous annual contributions. Concurrently the Company formulated the system. Since 2021 the Company has expanded its scholarship scope to higher education successively Administrative Measures for the Warm Light Public Welfare Fund to build a standardized and establishing the ‘Wang Yanqing Scholarship’ at six key universities—Harbin Institute of Technology Southeast transparent management and operational mechanism providing a solid guarantee for the University Huazhong University of Science and Technology Nanjing University of Science and Technology fund's long-term and institutionalised operation. The fund focuses on supporting areas such China University of Mining and Technology and Hefei University of Technology—contributing hundreds of as public welfare and charity scientific research and innovation educational development thousands of yuan annually to support nearly 100 outstanding students and inject corporate strength into rural revitalization and green environmental protection fully leveraging the Company's talent cultivation.resources and professional advantages to continuously enhance its social influence and value creation capabilities.Harbin Institute Huazhong University of Southeast University of Technology Science and Technology Nanjing University of China University of Hefei University of Science and Technology Mining and Technology Technology 1092025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Rural Revitalization As a benevolent enterprise Lead Intelligent has always been committed to rural revitalization through practical actions. The Company fully leverages its own advantages precisely aligns its corporate resources with the development needs of rural areas through various means such as educational support and consumption-based agricultural aid and continuously inject corporate strength into promoting rural revitalization.Building dreams with technology walking together in the warm light —Lead ‘Smart Micro-marts’ helping farmers one drop at a time —Lead Intelligent’s educational support initiative Intelligent’s consumption-based support initiative In October 2025 the Company visited Yichuan County Yan'an to deepen the ‘Jiangsu-Shaanxi Linkage · To deepen consumption-based support Technology for Dreams’ educational initiative.the Company introduced ‘Smart Micro- To address the local schools’ lack of professional equipment the Company funded the construction mart’ automated vending machines in of a standardized maker classroom at Yichuan Chengguan Primary School equipping it with laptops 2025. These machines stock agricultural programming robots and other devices to give children hands-on experience with technology and and sideline products selected from Wuxi's stimulate their innovative potential. In addition to hardware support the Company conducted in-depth partner assistance regions including visits to the families of students in difficult situations delivering school supplies and daily necessities. Huzhu in Qinghai Yichuan in Yan'an and Akqi and Huocheng in Xinjiang. Employees Based on the needs identified during these on-site visits the Company donated 126 sets of custom winter participate in the support initiative through school uniforms and 1470 required reading books to township schools in Yichuan County. It also mobilised their daily purchases which not only employees through the ‘Donate a Children’s Book · Share the Love’ campaign to collect over 500 second- provides convenience for them but also hand extracurricular children's books further enriching the local schools' reading resources. At the same broadens sales channels for agricultural time the Company continued to deepen its assistance programme for students in difficult situations products from remote areas integrating the increasing the number of subsidised students from 12 in 2024 to 29 in 2025 and expanding the educational goodwill of supporting rural revitalization stages covered from primary and junior secondary school to senior secondary school striving to provide into the Company's daily operations.more sustainable educational support for more students.During the Reporting Period the Company invested a total of approximately RMB 250000 in dedicated funds for educational support initiatives in Yichuan County.Students from Yunyan Town Yichuan County Wearing Winter School Uniforms Donated by Lead Intelligent ‘Smart Micro-mart’ Automated Vending Machine 1102025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Emergency and Disaster Relief Community Involvement Lead Intelligent actively participates in social welfare through means such as emergency and disaster relief and takes the initiative to assume responsibility and respond swiftly during major public emergencies. Through tangible While actively engaging in charitable donations Lead Intelligent also puts its principles into actions it protects the lives and homes of its compatriots demonstrating the responsibility and patriotism of a practice through volunteer services transforming corporate goodwill into tangible warmth national enterprise in the new era. and giving back to the local community through practical actions.A heart for Hong Kong watching over and helping each other — Lead Intelligent’s aid for the Tai Po fire Community Activities Lead Intelligent actively promotes diversified volunteer services to give back to the On 26 November 2025 a sudden fire broke out at Wang Fuk Court in Tai Po New Territories Hong Kong community. An internal volunteer service association has been established to provide causing significant casualties and property damage. Lead Intelligent urgently launched the ‘Hong Kong a platform for regular participation. The Company also uses questionnaire surveys Emergency Assistance Plan’ donating RMB 1 million through the Company's ‘Warm Light Public Welfare to accurately match employee interests with volunteer projects thereby enhancing Fund’ to the ‘Support Fund for Wang Fuk Court in Tai Po’ for the medical treatment and resettlement of engagement. Concurrently a public welfare points system has been set up converting affected compatriots. It continues to monitor the situation doing its utmost to provide support to the people volunteer service hours into points that can be used for selecting the ‘Lead Intelligent of Hong Kong and help them rebuild their homes and return to normal life as soon as possible.Volunteer Star’ and redeeming charity gifts aiming to stimulate the enthusiasm of all employees for participation and continuously expand its public welfare impact.Employee Love Fund The Company established the Love Fund in 2018 creating a long-term mechanism for assisting employees in need.The fund is financed by voluntary donations from employees and fixed annual injections from the Company and is specifically used to support employees facing financial hardship due to disability illness or accidents affecting themselves or their immediate family members. In 2025 the Love Fund provided special grants to nearly 20 employees who experienced major illnesses or sudden difficulties effectively alleviating their financial pressures and conveying the Company's care.Awards and Honours During the Reporting Period the Company Received the ‘Wuxi Listed Company ESG Philanthropic Innovation Case’ award Lead Intelligent Employee Public Welfare Star Awards 1112025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Intelligent manufacturing with love safeguarding the elderly —Lead ‘I Have a Little Red Flower’ —Lead Intelligent’s charity market event Intelligent’s initiative to care for the elderly living alone In 2025 Lead Intelligent actively In 2025 Lead Intelligent actively carried out the ‘Caring for the participated in the Tencent 99 Elderly Living Alone’ public welfare Giving Day by launching the ‘I activity. Each quarter volunteers Have a Little Red Flower’ charity were organized to visit the homes market event. Four themed of elderly people living alone and events were held in Wuxi's core bereaved ones in surrounding business districts attracting communities providing caring a total of 651 participants services such as on-site gas safety and raising RMB 9072.59. All checks electrical facility hazard proceeds were donated to the inspections and repairs and health ‘One Foundation Ocean Heaven monitoring. They also delivered Project’ to specifically support daily necessities like rice and oil care initiatives for children in conveying the Company's care and difficult situations.Caring for the Elderly Living Alone Activity Lead Intelligent’s ‘I Have a Little Red Flower’ Charity Event greetings.Empowering through sports building dreams through vocational training —Lead Intelligent’s initiative to care for children with special needs In 2025 Lead Intelligent provided continuous support for the healthy development and social integration of children with special needs through two main avenues: physical exercise and vocational empowerment linked to its internal football league and Mid- autumn Festival welfare distribution.‘Football for the Future Walking Together in the Warm Light’ Project In this year's ‘Lead Intelligent Cup’ football league the Company established a charity matching donation mechanism: for every goal scored the Company matched it with a donation of materials of equivalent value to RMB 100. Ultimately the Company donated sports equipment valued at RMB 9700 to Wuxi Xinwu District Xinming Experimental School (a special education school) to support the healthy development of its students.‘Mid-Autumn Gift Box Micro-Charity’ Plan During the distribution of Mid-Autumn Festival employee benefits the Company launched the ‘Donate One Yuan for Every Gift Box’ micro-charity campaign investing a total of RMB 20000 to build the ‘Lead Intelligent Warm Light Vocational Training Room’. This training room simulates real restaurant and guest room settings helping special education students conduct practical vocational Lead Intelligent Warm Light Vocational Training Room (Guest Room Setting) skills training to enhance their employability. 1122025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Environmental Protection Lead Intelligent has long been deeply involved in environmental public welfare putting the concept of green development into practice through tangible actions.The Company continuously carries out volunteer service activities such as litter clean-ups and mountain and forest protection aiming to enhance employees' Key Performance environmental awareness and contribute to the improvement of the community environment.During the Reporting Period Cleaning the Mountains Guarding the Green — Lead Intelligent’s mountain cleaning environmental The Volunteer Service Association initiative held volunteer service activities such as mountain cleaning caring for the In June 2025 Lead Intelligent in collaboration with the Wuxi Taihu Carbon-Inclusive Green Development Centre held the ‘Cleaning the Mountains Guarding elderly traffic safety supervision the Green: A Lead Intelligent Initiative’ themed public welfare event at Huishan Forest Park. Dozens of employee volunteers accompanied by their children charity bazaars and sporting event collected rubbish such as plastic bottles and cigarette butts to restore the natural cleanliness of the mountains; interactive games and display boards were support.also used on-site to popularise knowledge about waste decomposition and promote low-carbon concepts. 16 Volunteer service activities 138 Participants 769 Volunteer service hours Huishan Mountain Cleaning Initiative 1132025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Appendices ESG Key Performance Table Environmental Performance Data scope: The scope of environmental data statistics covers the Company’s main production bases warehouses and offices in Wuxi Zhuhai and Shanghai excluding outsourced canteens. The entities involved include Wuxi Lead Intelligent Equipment Co. Ltd. Jiangsu Lead Technology Co. Ltd. Jiangsu Lead Hydrogen Intelligent Equipment Co. Ltd. Wuxi Lead Laser Intelligent Equipment Co. Ltd. Guangdong Lead Intelligent Logistics Technology Co. Ltd. Zhuhai Titans New Power Electronics Co. Ltd. and Shanghai Lead Huineng Technology Co. Ltd. (The scope of 2023 environmental data statistics did not include Zhuhai Titans New Power Electronics Co. Ltd. and Shanghai Lead Huineng Technology Co. Ltd..; the scope of 2024 environmental data statistics did not include Shanghai Lead Huineng Technology Co. Ltd.). The aforementioned scope covers the main operational units of the Company that have a substantive environmental impact.Indicator Category Indicator Name Unit 2025 2024 2023 Total Environmental Protection Investment RMB10000 179.30 180.00 185.19 Percentage of Production Bases Certified with the ISO 14001 %100// Environmental Management System1 Environmental Management N u m b e r o f E n v i r o n m e n t a l No. 0 0 0 Penalties Environmental Violations Total Amount of Environmental RMB10000 0 0 0 Penalties Total Waste Gas Emissions Tonne 1.88 2.69 3.29 Waste Gas Emissions per Unit of Operating Revenue Tonne/RMB 100 million 0.01 0.02 / Sulphur Oxides（SOX） Tonne 0 0 0 Waste Gas Management Nitrogen Oxides （NOX） Tonne 0 0 0 Air Pollutants2 Particulate Matter（PM） Tonne 0.03 0.03 0.05 Volatile Organic Compounds Tonne 1.85 2.66 3.23（VOC） 1The statistical scope of the data is the five main production bases located within China.2 During the Reporting Period the Company further standardized the statistical scope of air pollutant emissions data and revised the calculation methods. Consequently the 2023 particulate matter (PM) emission data along with the 2023 and 2024 volatile organic compound (VOC) emission data have been adjusted accordingly. 1142025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Indicator Category Indicator Name Unit 2025 2024 2023 Total Hazardous Waste1 Tonne 51.62 67.98 93.41 Hazardous Waste Disposed per Unit of Operating Revenue Tonne/RMB 100 million 0.36 0.57 / Hazardous Waste (by Incineration (Without Energy Tonne 4.99 1.65 16.00 Recovery/Disposal Recovery)2 Waste Method) Other Disposal Operations Tonne 46.62 66.33 77.41 Management Total Non-hazardous Waste3 Tonne 4257.11 / / Non-hazardous Waste Disposed per Unit of Operating Revenue Tonne/RMB 100 million 29.48 / / Non-hazardous Waste (by Recovery/Disposal Other Recovery Operations Tonne 4257.11 / / Method) Percentage of Production Bases Certified with the ISO 50001 Energy %80// Management System4 Tonne of standard coal 9834.907862.526381.96 Total Comprehensive Energy Consumption equivalent MWh 80023.58 63974.90 51928.11 Comprehensive Energy Consumption Intensity5 MWh/RMB 100 million 554.06 539.64 / Tonne of standard coal Energy Use 427.02 460.58 459.46 Total Direct Energy Consumption equivalent MWh 3474.56 3747.58 3738.49 Direct Energy Consumption Petrol Litre 193913.78 179638.64 124150.07 Diesel Litre 78154.39 100180.79 104598.90 Natural Gas Cubic metre 87112.00 105948.00 180905.00 Liquefied Petroleum Gas Kilogram 16731.00 17374.50 / Direct Energy Consumption Intensity MWh/RMB 100 million 24.06 31.61 / 1Hazardous waste primarily includes waste emulsion waste oil oil-containing waste waste solvent waste package and container waste filters and activated carbon. As the statistical scope of the total hazardous waste data has been broadened the 2023 data has been recalculated and revised accordingly.2During the Reporting Period the volume of hazardous waste disposed of by incineration fluctuated significantly compared to previous years. This was primarily due to the Company's practice of centralized periodic disposal of hazardous waste resulting in a timing mismatch between the disposal period and the generation period of the waste (e.g. the current period's disposal volume includes portion generated in prior period) which affected the comparability of data between years. The Company has implemented the Hazardous Waste Transfer Manifest System in accordance with legal requirements and both storage and disposal processes are in full compliance with environmental management regulations.3Non-hazardous waste primarily includes scrap steel scrap offcuts scrap wires scrap plastics scrap non-ferrous metals scrap paper and waste wood. Due to the expanded statistical scope the 2025 non-hazardous waste data is not comparable with data from prior years. To prevent any potential misinterpretation by report readers the corresponding data for prior years has been denoted with a slash "/". 4The statistical scope of the data is the five main production bases located within China. 5Comprehensive energy consumption intensity = Total comprehensive energy consumption ÷ Operating revenue. 1152025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Indicator Category Indicator Name Unit 2025 2024 2023 Tonne of standard coal Total Indirect Energy 9407.87 7401.94 5922.50equivalent Consumption Indirect Energy MWh 76549.02 60227.32 48189.62 Consumption Purchased Grid Electricity MWh 74343.46 60227.32 48189.62 Purchased Photovoltaic MWh 2205.57 0 0 Electricity Consumption Indirect Energy Consumption Intensity MWh/RMB 100 million 530.00 508.03 / Tonne of standard coal Energy Use Total Renewable Energy 1389.45 1174.06 860.30equivalent Renewable Energy Consumption Consumption MWh 11305.57 9553.00 7000.00 Renewable Energy Usage Ratio % 14.13 14.93 13.48 Tonne of standard coal Total Non-renewable Energy 8445.44 6688.45 5521.66equivalent Non-renewable Energy Consumption MWh 68718.02 54421.90 44928.11 Consumption Non-renewable Energy Usage %85.8785.0786.52 Ratio Total Water Withdrawal2 Tonne 375893.70 331610.22 242965.45 Total Water Consumption Tonne 37589.37 33161.02 24296.55 Water Consumption per Tonne/ thousand Water Resources 2477.39 2207.06 / Water Consumption Thousand Employees employees Utilisation1 Water Consumption per Unit of Tonne /RMB 100 million 260.26 279.72 / Operating Revenue Total Water Discharge Tonne 338304.33 298449.20 218668.91 Packaging Material Total Packaging Material Consumption Tonne 7407.09 / / Management Packaging Material Consumption per Unit of Operating Revenue Tonne /RMB 100 million 51.28 / / 1According to Article 4.1.14 of the national standard Standard for design of outdoor wastewater engineering (GB 50014-2021) issued by the Ministry of Housing and Urban-Rural Development: the comprehensive domestic sewage quota should be determined based on the local water consumption quota and the level of internal water supply and drainage facilities in the building and may be calculated as 90% of the relevant local water consumption quota. Accordingly the Company calculates the total water discharge as 90% of the total water withdrawal (municipal water supply) with the remaining 10% recorded as the total water consumption.2The statistical scope of total water withdrawal only covers the volume of municipal water supply. Rainwater utilization has not yet been precisely measured and is therefore not included in the statistics. During the Reporting Period the Company further standardized the statistical scope of water resources utilization data and the 2024 water withdrawal data has been adjusted accordingly. 1162025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Indicator Category Indicator Name Unit 2025 2024 2023 Total Consumption Tonne 420.23 / / Non-renewable Packaging Plastics Tonne 226.40 / / Materials Others Tonne 193.83 / / Packaging Material Management Total Consumption Tonne 6986.86 / / Renewable Packaging Wood Tonne 6979.50 / / Materials Others Tonne 7.36 / / Scope 1 Total GHG Emissions Tonne of CO?e 1552.15 1902.61 1152.99 Scope 2 Total GHG Emissions (Location-based) Tonne of CO?e 39446.64 32316.98 27320.65 Scope 2 Total GHG Emissions (Market-based) Tonne of CO?e 39773.72 / / Scope 3 Total GHG Emissions Tonne of CO?e 9390706.92 4008964.95 12879554.32 Total GHG Emissions (Scope 1 and 2)1 Tonne of CO?e 40998.79 34220.59 28473.64 Greenhouse Gas Total GHG Emissions (Scope 1 2 and 3)2 Tonne of CO?e 9431705.71 4043185.54 12908027.95 (GHG) Management Tonne of CO?e / RMB 100 GHG Emissions per Unit of Operating Revenue (Scope 1 and 2) 283.86 288.66 / million Tonne of CO?e / RMB 100 GHG Emissions per Unit of Operating Revenue (Scope 1 2 and 3) 65302.59 34105.04 / million Scope 3 Upstream Total GHG Emissions Tonne of CO?e 540876.66 333116.98 453056.86 Scope 3 Downstream Total GHG Emissions Tonne of CO?e 8849830.26 3675847.97 12426497.46 1For total GHG emissions (Scope 1 and 2) the Scope 2 GHG emissions data is calculated using the location-based method.2For total GHG emissions (Scope 1 2 and 3) the Scope 2 GHG emissions data is calculated using the location-based method. 1172025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Social Performance Data scope: The scope of social statistics is consistent with the scope of the consolidated financial statement unless otherwise specified.Indicator Category Indicator Name Unit 2025 2024 2023 Total Number of Employees1 Person 15173 15025 19125 Male Person 13104 12825 16389 By Gender Female Person 2069 2200 2736 30 and Under Person 6724 6861 10129 By Age 31–50 Person 8340 8054 8869 51 and Above Person 109 110 127 Senior Management Employees Person 93 113 114 Middle Management Employees Person 295 363 404 By Job Level2 Junior Management Employees Person 287 393 422 Employee Structure Frontline Employees Person 14498 14156 18185 Master Degree and above Person 901 993 1033 By Education Undergraduate Degree Person 5377 6225 7024 Level College Degree Person 4008 3182 4490 Below College Degree Person 4887 4625 6578 Chinese Nationality Employees (including Hong Kong Person 15090 14929 19009 Macao and Taiwan) By Region Percentage of Chinese Nationality Employees % 99.45 99.36 99.39 Overseas Nationality Employees Person 83 96 116 Percentage of Overseas Nationality Employees % 0.55 0.64 0.61 1The total number of employees represents the number of active employees as at the end of the Reporting Period.2Senior Management Employees: Director level and above; Middle Management Employees: Manager level and above (below Director level); Junior Management Employees: Supervisor Deputy Workshop Director level and above (below Manager level); Frontline Employees: Below Supervisor and Deputy Workshop Director level 1182025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Indicator Category Indicator Name Unit 2025 2024 2023 By Employment Full-Time Person 15085 14994 18999 Employee Structure Type Part-Time1 Person 88 31 126 Total Person 243 / / Male Person 208 / / By Gender Female Person 35 / / Under 30 Person 64 / / By Age 30–50 Person 178 / / Employees 51 and above Person 1 / / Filling Vacant Positions Senior Management Person 4 / / Through Employees Internal Middle Management Competition By Job Level Person 10 / /Employees Recruitment Junior Management Employees Person 1 / / Management Frontline Employees Person 228 / / Chinese Nationality Employees Person 243 / / By Region Overseas Nationality Person 0 / / Employees Total Person 6456 / / Male Person 5695 / / By Gender New Female Person 761 / / Employees Under 30 Person 4317 / / By Age 30–50 Person 2134 / / 51 and above Person 5 / / 1All part-time employees of the Company are interns. 1192025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Indicator Category Indicator Name Unit 2025 2024 2023 Senior Management Person 11 / / Employees Middle Management By Job Level Person 24 / /Employees Recruitment New Junior Management Employees Person 15 / / Management Employees Frontline Employees Person 6406 / / Chinese Nationality Employees Person 6443 / / By Region Overseas Nationality Person 13 / / Employees Employee Turnover Rate1 % 29.79 / / Male % 29.65 / / By Gender Female % 30.66 / / Chinese Nationality % 29.80 / / Employee Turnover By Region Overseas Nationality % 27.19 / / Under 30 % 35.43 / / By Age 30-50 % 24.62 / / 51 and above % 18.05 / / Employee Training Coverage Rate % 100 100 100 Employee Training and Training Investment per Capita2 RMB 241.45 517 356 Development Training Investment per Capita for Male Employees RMB 246.09 / / By Gender3 Training Investment per Capita for Female Employees RMB 212.01 / / 1Employee Turnover Rate = Number of Departed Employees ÷ (Number of Departed Employees + Total Number of Employees at the End of the Reporting Period) × 100% 2During the Reporting Period the Company comprehensively deepened the application of the ‘Lead Intelligent e-Learning’ platform. By reusing purchased online courses and integratingoffline sandbox simulations and course resources the Company reduced the proportion of external training. This approach enabled the Company to achieve optimised control over training costs while ensuring training quality and coverage.3Due to limitations in data availability the per capita training investment by gender is calculated based on the Company's total training investment apportioned according to the ratio of average training hours between male and female employees. 1202025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Indicator Category Indicator Name Unit 2025 2024 2023 Average Training Hours per Employee Hour 37 43 42 Average Training Hours per Male Employee Hour 38 / / Percentage of Male Employees Trained % 100 / / By Gender Average Training Hours per Female Employee Hour 33 / / Percentage of Female Employees Trained % 100 / / Average Training Hours per Senior Management Employee Hour 32 / / Percentage of Senior Management Employees Trained % 100 / / Average Training Hours per Middle Management Employee Hour 43 / / Percentage of Middle Management Employees Trained % 100 / / By Job Level Average Training Hours per Junior Management Employee Hour 47 / / Percentage of Junior Management Employees Trained % 100 / / Average Training Hours per Frontline Employee Hour 37 / / Employee Training and Percentage of Frontline Employee Trained % 100 / / Development Total Number of Employees Trained Attendance 151571 / / Total Number of Male Employees Participated in Training Attendance 129232 / / By Gender Total Number of Female Employees Participated in Training Attendance 22339 / / Total Number of Participants in Training for Senior Attendance 975 / / Management Employees Total Number of Participants in Training for Middle Attendance 3793 / / Management Employees By Job Level Total Number of Participants in Training for Entry-level Attendance 3442 / / Management Employees Total Number of Participants in Training for Frontline Attendance 143361 / / Employees Percentage of Employees Trained in Policies or Procedures Concerning %100100100 Employee Rights and Interests Percentage of Employees Receiving Regular Performance and Career %100100100 Development Reviews 1212025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Indicator Category Indicator Name Unit 2025 2024 2023 Number of Ethnic Minority Employees Person 509 448 580 Percentage Percentage of Female Employees in Senior Management % 13.98 17.7 17.54 of Female Employees in Percentage of Female Employees in Middle Management % 7.12 9.09 7.92 Management by Job Level Percentage of Female Employees in Junior Management % 7.29 9.16 10.19 Diversity and Equal Percentage of Female Employees in Revenue-generating %39.7229.1024.52 Opportunity Positions1 Percentage Percentage of Female Employees in Management Positions % 22.73 13.64 10.71 of Female in Revenue-generating Functions Employees by Percentage of Female Employees in STEM-related Function % 8.93 9.94 7.53Positions2 Percentage of Female Employees in Management Positions %3.183.143.23 in STEM-related Functions Labour Contract Signing Rate3 % 100 100 100 Social Insurance Coverage Rate4 % 100 100 100 Collective Agreement Signing Coverage Rate4 % 100 100 100 Number of Male Person 1475 / / Employees Protection of Employee Entitled to Paid Parental Leave Female Person 254 / /Rights and Interests Number of Male Person 1362 1266 711 Employees Taking Parental Leave Female Person 222 211 162 Number of Employees Taking Paid Family or Care Leave Excluding Parental Person 461 428 / Leave Percentage of Production Bases Certified with the ISO 45001 Occupational %100// Health and Safety Management System5 Occupational Health and Safety Investment Amount in Work-related Injury Insurance RMB 13975047.07 / / Work-related Injury Insurance Coverage Rate % 100 / / 1Revenue-generating departments encompass marketing-line personnel including positions such as sales sales assistants and business development positions.2STEM positions are those that require knowledge and skills in the fields of Science Technology Engineering and Mathematics. These primarily include R&D- personnel such as roles in product planning electrical R&D and mechanical R&D.3The statistical scope for data covers full-time employees. 4The statistical scope for data covers full-time employees located within China. 5The statistical scope for data covers the five major production bases located within China. 1222025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Indicator Category Indicator Name Unit 2025 2024 2023 Number of Lost Workdays Due to Work-related Injuries Day 1224 / / Number of Work-related Fatalities Person 0 0 0 Lost Time Injury Frequency Rate (LTIFR)1 - 0.63 0.84 0.78 Coverage of Occupational Health Examination for Employees % 100 100 100 Average Hours of Health and Safety Training per Production Worker Hour 24 24 24 Occupational Health and Safety Coverage of Health and Safety Training for Production Workers % 100 100 100 Number of Attendances for On-site Contractor Safety Training Attendance 10962 10922 7681 Coverage of Safety Training Sessions for On-site Contractors % 100 100 100 Number of Emergency Drills No. 48 69 32 Employee Coverage Rate for Emergency Drills % 100 100 100 Total No. 2028 1920 1844 Number of China No. 1827 1738 1679 Suppliers Overseas No. 201 182 165 Total No. 192 198 242 Number of Core China No. 126 112 182 Suppliers Supplier Management Overseas No. 66 86 60 Percentage of Screened New Suppliers Using %100100100 Environmental/Social Criteria Supplier Total Number of Suppliers Passing Written/On-Site No. 549 / / Assessment Assessments Number of Suppliers Terminated Due to Significant Actual/ No. 62 / / Potential Negative Impacts 1Lost Time Injury Frequency Rate (LTIFR) = (Number of lost-time injuries ÷ Total working hours) x 1000000. 1232025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Indicator Category Indicator Name Unit 2025 2024 2023 Number of Suppliers Implementing Corrective Action Plans No. 285 / / Supplier Capacity Number of Suppliers Participating in Capacity Building Building No. 181 / / Projects Supplier Management Number of Suppliers Subject to ESG Due Diligence Audits No. 54 / / Initiated by the Company Sustainable Procurement Number of Participants in Sustainable Procurement Attendance 103 / / Training for Buyers Number of Non-compliance Incidents Related to Product Quality and Safety No. 0 0 0 Product Quality Management Number of Products Recalled Due to Quality Safety and Health Issues No. 0 0 0 Number of Non-compliance Incidents Related to Product and Service No. 0 0 0 Information and Labelling Responsible Marketing Number of Non-compliance Incidents Related to Marketing Communications No. 0 0 0 Number of Complaints Received Regarding Products and Services No. 11 / / Customer Relationship Management Customer Complaint Resolution Rate % 100 100 100 Total Charitable Donations RMB 10000 608 / / Community Relations Number of Volunteers Person 129 / / 1242025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Corporate Governance and Economic Performance Data scope: The scope of corporate governance and economic performance statistics is consistent with the scope of the consolidated financial statement.Indicator Category Indicator Name Unit 2025 2024 2023 Total Assets RMB 39072737729.92 36182558952.99 35293330312.84 Operating Revenue RMB 14443080424.36 11855098145.55 16628361009.42 Economic Performance Net Profit Attributable to Shareholders of the Listed Company RMB 1563777858.17 286100791.80 1774565501.49 Net Cash Flow from Operating Activities RMB 4957368505.01 -1567132795.63 -862790560.80 Basic Earnings per Share RMB/share 1.01 0.18 1.13 R&D Investment RMB 1605067131.63 1675838159.46 1773565152.59 R&D Investment as a Percentage of Operating Revenue % 11.11 14.14 10.67 R&D and Innovation Number of R&D Personnel Person 4072 4512 4917 Percentage of R&D Personnel % 26.84 30.03 25.71 Total No. 3592 2830 2347 Invention Patents No. 614 446 243 Authorized Patents Utility Model Patents No. 2875 2304 2026 Intellectual Property Design Patents No. 103 80 78 (IP) Total No. 778 527 421 Annual New Authorized Invention Patents No. 182 205 70 Patents Utility Model Patents No. 573 314 336 Design Patents No. 23 8 15 1252025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Indicator Category Indicator Name Unit 2025 2024 2023 Number of Specialised Information Security Training Sessions No. 46 47 39 Percentage of Employees Receiving Information Security Training % 100 100 100 Number of Internal Information Security Audits1 No. 42 49 / Information Security Number of External Information Security Audits2 No. 2 1 / Number of Major or Significant Cybersecurity Incidents No. 0 0 0 Number of Confirmed Incidents Involving the Leakage Theft or Loss of No. 0 0 0 Customer Data Number of Specialised Business Ethics Training Sessions No. 33 40 27 Percentage of Employees Receiving Anti-corruption Training % 100 100 100 Total Number of Directors and Senior Management Employees Person 11 11 11 Receiving Anti-Corruption Training Business Ethics Percentage of Directors and Senior Management Employees Receiving %100100100 Anti-corruption Training Number of Concluded Legal Cases regarding Corruption Practices No. 0 0 0 Number of Concluded Legal Cases regarding Unfair Competition No. 0 0 0 Practices 1Internal information security audits include specialised system audits and specialised IT audits.2External information security audits include ISO 27001 (annual) and TISAX (triennial) certification audits. 1262025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Reference Index Table Self-Regulatory Guidelines No. 17 for Companies Listed on ShenzhenStock Exchange—Sustainability Report (For Trial Implementation) Index Dimension Disclosure Requirements Clause Corresponding Section in This Report Dimension Disclosure Requirements Clause Corresponding Section in This Report Response to Climate Change Articles 21 To 28 Responses to Climate Change Sustainable Supply Chain Supply Chain Security Article 45 Management Green Production and Pollutant Discharge Article 30 Operations Sustainable Supply Chain Equal Treatment of SMEs Article 46 Management Green Production and Waste Disposal Article 31 Operations Product and Service Safety Article 47 Strengthening Quality Control and Quality Ecosystem and Biodiversity Green Production and Article 32 Protection Operations Data Security and Customer Information Security and Article 48 Environment Social Privacy Privacy ProtectionEnvironmental Compliance Environmental Compliance Article 33 Management Management Protection of Employee Rights Green Production and Energy Utilization Article 35 and Interests Talent Cultivation Operations and Development Employee Employees Article 50 Green Production and Care and Communication Water Resources Utilization Article 36 Operations Occupational Health and Safety Green Production and Circular Economy Article 37 Operations Contribution to Community Due Diligence Article 52 Sustainability Governance Rural Revitalization Article 39 Development Governance Contribution to Community Stakeholder Engagement Article 53 Stakeholder Engagement Social Contributions Article 40 Related to Social Development Sustainable Anti-Commercial Bribery and Innovation Article 42 Product R&D and Innovation Development Article 55 Business EthicsAnti-Corruption Ethics of Science and Article 43 Not Applicable Technology Fair Competition Article 56 Business Ethics 1272025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Environmental Social and Governance Reporting Code of the Stock Exchange of Hong Kong Limited Index Mandatory Disclosure Requirements Section Index Aspect Indicator Aspect General Disclosures and Number Key Performance Indicators Section Index Environment A Statement from the board containing the following: Relating to air emissions discharges into (i) A disclosure of the boards’ oversight of ESG issues; water and land and generation of hazardous (ii) The boards’ ESG management approach and strategy General and non-hazardous waste:(a) policies; and Green Production including the process used to evaluate prioritise and Governance Sustainability Disclosure (b) compliance with relevant laws and and Operations manage material ESG-related issues (including risks to Structure Governance regulations that have a significant impact on the issuer’s businesses); and the issuer.(iii) How the board reviews progress made against ESG- related goals and targets with an explanation of how The types of emissions and respective ESG Key A1.1 they relate to the issuer’s businesses. emissions data. Performance Table Total hazardous waste produced (in tonnes) ESG Key A1.3 and where appropriate intensity (e.g. per Performance Table unit of production volume per facility).Reporting A description of or an explanation the application of Report Preparation A1 Principles Reporting Principles in the preparation of the ESG report Notes Emissions Total non-hazardous waste produced (in tonnes) and where appropriate intensity ESG Key A1.4 (e.g. per unit of production volume per Performance Table facility).A narrative explaining the reporting boundaries of the Description of emission target(s) set and the Green Production A1.5 ESG report and describing the process used to identify steps taken to achieve them. and Operations Reporting Report Preparation which entities or operations are included in the ESG Boundary Notes report. If there is a change in the scope the issuer should Description of how hazardous and non- explain the difference and reason for the change. hazardous wastes are handled and a Green Production A1.6 description of reduction target(s) set and the and Operations steps taken to achieve them. 1282025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Aspect Indicator Aspect General Disclosures and Number Key Performance Indicators Section Index Aspect Indicator Aspect General Disclosures and Number Key Performance Indicators Section Index Policies on the efficient use of resources B. Social General Green Production including energy water and other raw Disclosure and Operations materials. Employment and Labour Practices Relating to compensation and dismissal Direct and/or indirect energy consumption recruitment and promotion working hours by type (e.g. electricity gas or oil) in total ESG Key A2.1 rest periods equal opportunity diversity Protection of (kWh in '000s) and intensity (e.g. per unit of Performance Table General anti-discrimination and other benefits and Employee Rights production per facility). Disclosure welfare:（a）policies; and（b）compliance and Interests with relevant laws and regulations that have a Water consumption in total and intensity (e.g. ESG Key B1 A2.2 significant impact on the issuer.per unit of production volume per facility). Performance Table Employment A2 Use of Total workforce by gender employment type ESG Key Resources Description of energy use efficiency target(s) Green Production B1.1 (for example full- or part-time) age group A2.3 Performance Table set and the steps taken to achieve them. and Operations and geographical region.Employee turnover rate by gender age group ESG Key Description of whether there is any issue in B1.2 and geographical region. Performance Table sourcing water that is fit for purpose water Green Production A2.4 efficiency target(s) set and steps taken to and Operations Relating to providing a safe working achieve them. environment and protecting employees from General occupational hazards:（a）policies; and Occupational Disclosure （b）compliance with relevant laws and Health and Safety Total packaging material used for finished regulations that have a significant impact on ESG Key A2.5 products (in tonnes) and if applicable with the issuer.Performance Table reference to per unit produced.Number and rate of work-related fatalities B2 Health and ESG Key B2.1 occurred in each of the past three years Policies on minimising the issuer’s significant Safety Performance Table General Green Production including the reporting year.impacts on the environment and natural Disclosure and Operations A3 resources. ESG Key Environment B2.2 Lost days due to work injury. Performance Table and Natural Description of the significant impacts of Resources activities on the environment and natural Green Production A3.1 Description of occupational health and resources and the actions taken to manage and Operations Occupational B2.3 safety measures adopted and how they are them. Health and Safetyimplemented and monitored. 1292025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Aspect Indicator Aspect General Disclosures and Indicator Aspect General Disclosures and Number Key Performance Indicators Section Index Aspect Number Key Performance Indicators Section Index Policies on improving employees’ knowledge Description of practices relating to engaging General Talent Cultivation Sustainable and skills for discharging duties at work. suppliers number of suppliers where the Disclosure and Development B5.2 Supply Chain Description of training activities. practices are being implemented and how Management they are implemented and monitored.B3 The percentage of employees trained by ESG Key Description of practices used to identify Development B3.1 gender and employee category (e.g. senior B5 Supply Sustainable Performance Table environmental and social risks along the and Training management middle management). Chain B5.3 Supply Chain supply chain and how they are implemented Management Management and monitored.The average training hours completed per ESG Key B3.2 Description of practices used to promote employee by gender and employee category. Performance Table Sustainable environmentally preferable products and B5.4 Supply Chain services when selecting suppliers and how Management they are implemented and monitored.Relating to preventing child and forced Protection of General labour:（a）policies; and（b）compliance Relating to health and safety advertising Employee Rights Disclosure with relevant laws and regulations that have a labelling and privacy matters relating and Interests significant impact on the issuer. toproducts and services provided and General Strengthening B4 methods of redress:（a）policies; and Disclosure Quality Control Labour (b) compliance with relevant laws and Description of measures to review Protection of Standards regulations that have a significant impact on B4.1 employment practices to avoid child and Employee Rights the issuer.forced labour. and Interests Percentage of total products sold or shipped Protection of ESG Key Description of steps taken to eliminate such B6 B6.1 subject to recalls for safety and health B4.2 Employee Rights Performance Table practices when discovered. Product reasons.and Interests Responsibility Number of products and service related ESG Key Operating Practices B6.2 complaints received and how they are dealt Performance Table with.Sustainable General Policies on managing environmental and Supply Chain B5 Disclosure social risks of the supply chain. Description of practices relating to observing Intellectual Management B6.3 Supply Chain and protecting intellectual property rights. Property Protection Management ESG Key B5.1 Number of suppliers by geographical region. Description of quality assurance process and Strengthening Performance Table B6.4 recall procedures. Quality Control 1302025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Aspect Indicator Aspect General Disclosures and Number Key Performance Indicators Section Index Key Areas Aspects General Disclosures and Key Performance Indicators Section Index B6 Description of consumer data protection Information D: Climate Change Product B6.5 and privacy policies and how they are Security and Privacy Responses to Climate Change - Responsibility implemented and monitored. Protection Governance Governance Relating to bribery extortion fraud and Climate-Related Risks and Opportunities money laundering: （a）policies; and General Business Model and Value Chain (b) compliance with relevant laws and Business Ethics Disclosure regulations that have a significant impact on Strategy and Decision-Making Responses to Climate Change - Strategy the issuer. Strategy Financial Position Financial Performance Number of concluded legal cases regarding and Cash Flow B7 corrupt practices brought against the issuer or B7.1 Business Ethics Climate Resilience Anti- its employees during the reporting period and Corruption the outcomes of the cases.Responses to Climate Risk Management Change - Impacts Risks and Description of preventive measures and Opportunities Management B7.2 whistle-blowing procedures and how they Business Ethics Responses to Climate Change - Greenhouse Gas (GHG) Emissions are implemented and monitored. Metrics and Targets Climate-Related Transition Risks Description of anti-corruption training B7.3 Business Ethics Climate-Related Physical Risks Responses to Climate provided to directors and staff. Change - Impacts Risks and Climate-Related Physical Risks Opportunities Management Community Capital Deployment Policies on community engagement to The Company has not yet understand the needs of the communities Contribution General Metrics and incorporated internal carbon where the issuer operates and to ensure to Community Disclosure Targets Internal Carbon Prices pricing into its decision- its activities take into consideration the Development making process.B8 communities’ interests.Community Sustainability Governance Focus areas of contribution (e.g. education Contribution Investment Remuneration Talent Cultivation and B8.1 environmental concerns labour needs to Community Development health culture sport). Development Industry-Based Metrics Not Applicable Resources contributed (e.g. money or time) to ESG Key B8.2 Responses to Climate Change - the focus areas. Performance Table Climate-Related Targets Strategy 1312025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices GRI Sustainability Reporting Standards (2021) Index Statement of Lead Intelligent has prepared the 2025 ESG Report with reference to the GRI GRI Standard Disclosure Location Use Standards. The Reporting Period is from 1 January 2025 to 31 December 2025.Sustainability GRI Standard 2-10 Nomination and Selection of the Highest GRI 1: Foundation 2021 Governance Corporate Used Governance Body Governance Sustainability 2-11 Chair of the Highest Governance Body Governance Corporate GRI Standard Disclosure Location Governance 2-1 Organizational Details About Lead Intelligent Sustainability 2-12 Role of the Highest Governance Body in Overseeing Governance Corporate 2-2 Entities Included in the Organisation's Sustainability Report Preparation Management of Impacts Governance Reporting Notes Report Preparation Sustainability 2-3 Reporting Period Frequency and Contact Point Notes 2-13 Delegation of Responsibility for Managing Impacts Governance Corporate Governance Report Preparation 2-4 Restatements of Information Notes Sustainability GRI 2: 2-14 Role of the Highest Governance Body in Governance Corporate General Sustainability ReportingThird-Party Assurance Governance 2-5 External Assurance Report Disclosures 2021 GRI 2: Corporate Governance About Lead 2-15 Conflicts of Interest General Business EthicsIntelligent Product Disclosures 2-6 Activities Value Chain and Other Business R&D and Innovation Stakeholder 2021 Relationships Contribution 2-16 Communication of Critical Concerns Engagement Double to Community Materiality Assessment Development 2-17 Collective Knowledge of the Highest Governance Sustainability Protection of Employee 2-7 Employees Body Governance Rights and Interests Sustainability ESG Key Performance 2-18 Evaluation of the Performance of the Highest 2-8 Workers Who Are Not Employees Governance Corporate Table Governance Body Governance Sustainability Corporate Governance 2-9 Governance Structure and Composition Governance Corporate 2-19 Remuneration Policies Talent Cultivation and Governance Development 1322025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices GRI Standard Disclosure Location GRI Standard Disclosure Location Corporate Governance Double Materiality 2-20 Process to Determine Remuneration Talent Cultivation and 3-3 Management of Material Topics Assessment Development 101-1 Policies to halt and reverse biodiversity loss / 2-21 Annual Total Compensation Ratio / Sustainable Green Production and 101-2 Management of biodiversity impacts 2-22 Statement on Sustainable Development Strategy Development Strategy Operations and Goals 101-3 Access and Benefit-Sharing Not Applicable Please Refer to the 2-23 Policy Commitments Relevant Chapters of GRI 101: Green Production and the Report Biodiversity 101-4 identification of biodiversity impacts 2024 Operations Please Refer to the 2-24 Embedding Policy Commitments Relevant Chapters of 101-5 Locations with biodiversity impacts Not Applicable the Report GRI 2: Please Refer to the 101-6 Direct drivers of biodiversity loss Not Applicable General 2-25 Processes to Remediate Negative Impacts Relevant Chapters of Disclosures the Report 2021 101-7 Changes to the state of biodiversity Not Applicable Stakeholder 2-26 Mechanisms for Seeking Advice and Raising Engagement Business 101-8 Ecosystem services Not Applicable Concerns Ethics Employee Care and Communication Double Materiality 3-3 Management of material topics Assessment Please Refer to the 2-27 Compliance with Laws and Regulations Relevant Chapters of 201-1 Directed economic value generated and ESG Key Performance the Report distributed Table GRI 201: Product R&D and Economic 201-2 Financial implications and other risks and Responses to Climate 2-28 Membership Associations Innovation Performance opportunities due to climate change Change 2016 Stakeholder 201-3 Defined benefit plan obligations and other 2-29 Approach to Stakeholder Engagement / Engagement retirement plans Protection of Employee 2-30 Collective Bargaining Agreements 201-4 Financial assistance from government / Rights and Interests Double Materiality Double Materiality 3-1 Process to Determine Material Topics 3-3 Management of material topics Assessment Assessment GRI 3: GRI 202: Double Materiality 202-1 Ratios of standard entry-level wage by gender to Material Topics 3-2 List of Material Topics Market / Assessment compared to local minimum wage 2021 Presence 2016 Double Materiality 3-3 Management of Material Topics 202-2 Proportion of senior management hired from the Assessment /local community 1332025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices GRI Standard Disclosure Location GRI Standard Disclosure Location Double Materiality Risk and Compliance 3-3 Management of material topics 207-2 Tax governance control and risk management Assessment Management Contribution GRI 207: 207-3 Stakeholder engagement and management of Risk and Compliance GRI 203: 203-1 Infrastructure investments and services supported to Community Tax 2019 concerns related to tax Management Indirect Development Economic Product R&D 207-4 Country-By-Country reporting /Impacts 2016 and Innovation 203-2 Significant indirect economic impacts Contribution Double Materiality 3-3 Management of material topics to Community Assessment Development Green Production and Double Materiality 301-2 Recycled input materials used GRI 204: 3-3 Management of material topics GRI 301: Operations Assessment Materials 2016 Procurement Practices 2016 Green Production and 204-1 Proportion of spending on local supplie / 301-3 Reclaimed products and their packaging Operations ESG Key materials Performance Double Materiality 3-3 Management of material topics Assessment Double Materiality 3-3 Management of material topics Assessment GRI 205: 205-1 Operations assessed for risks related to corruption Business Ethics Anti- ESG Key Performance 302-1 Energy consumption within the organisation Corruption 205-2 Communication and training about anti- TableBusiness Ethics 2016 corruption policies and procedures GRI 302: ESG Key Performance 302-3 Energy intensity Energy 2016 Table 205-3 Confirmed incidents of corruption and actions Business Ethics ESG taken Key Performance Table Green Production and 302-4 Reduction of energy consumption Operations GRI 206: Double Materiality 3-3 Management of material topics Anti- Assessment 302-5 Reduction in energy requirements of products and Responses to Climate Competitive services Change Behaviour 206-1 Legal actions for anti-competitive behaviour anti- Business Ethics ESG 2016 trust and monopoly practices Key Performance Table Double Materiality 3-3 Management of material topics Assessment Double Materiality GRI 303: Water 3-3 Management of material topics Green Production and Assessment and Effluents 303-1 Interaction with water as a shared resourceGRI 207: Operations2018 Tax 2019 Risk and Compliance 207-1 Approach to tax Green Production and Management 303-2 Management of water discharge-related impacts Operations 1342025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices GRI Standard Disclosure Location GRI Standard Disclosure Location ESG Key Performance ESG Key Performance 303-3 Water withdrawal 306-3 Waste generated Table Table GRI 303: Water ESG Key Performance GRI 306: ESG Key Performance and Effluents 303-4 Water discharge 306-4 Waste diverted from disposal Table Waste 2020 Table 2018 ESG Key Performance ESG Key Performance 303-5 Water consumption 306-5 Waste directed to disposal Table Table Double Materiality Double Materiality 3-3 Management of material topics GRI 306: 3-3 Management of material topicsAssessment Assessment Effluents and ESG Key Performance Waste 2016 Green Production and 305-1 Direct (scope 1) GHG emissions 306-3 Significant spills Table Operations ESG Key Performance Double Materiality 305-2 Energy indirect (scope 2) GHG emissions 3-3 Management of material topics Table GRI 308: Assessment Supplier ESG Key Performance 308-1 New suppl iers that were screened using ESG Key Performance GRI 305: 305-3 Other indirect (scope 3) GHG emissions Environmental Table environmental criteria Table Emissions Assessment 2016 ESG Key Performance 2016 308-2 Negative environmental impacts in the supply Sustainable Supply 305-4 GHG emission intensity Table chain and actions taken Chain Management Responses to Climate Double Materiality 305-5 Reduction of GHG emissions 3-3 Management of material topics Change Assessment ESG Key Performance 305-6 Emissions of Ozone-Depleting Substances (ODS) / GRI 401: 401-1 New employee hires and employee turnover Table Employment 305-7 Nitrogen Oxides (NOx) Sulphur Oxides (SOx) and ESG Key Performance 2016 401-2 Benefits provided to full-time employees that are Employee Care and other significant air emissions Table not provided to temporary or part-time employees Communication Double Materiality Employee Care and 3-3 Management of material topics 401-3 Parental leave Assessment Communication GRI 306: Waste 306-1 Waste generation and significant waste-related Green Production and GRI 402: Double Materiality 3-3 Management of material topics 2020 impacts Operations Labor/ Assessment Green Production and Management 402-1 Minimum notice periods regarding operational 306-2 Management of significant waste-related impacts Not Applicable Operations Relations 2016 changes 1352025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices GRI Standard Disclosure Location GRI Standard Disclosure Location Double Materiality 3-3 Management of material topics GRI 404: 404-2 Programmes for upgrading employee skills and Talent Cultivation and Assessment Training and transition assistance programmes Development 403-1 Occupational health and safety management Occupational Health Education 404-3 Percentage of employees receiving regular ESG Key Performance system and Safety 2016 performance and career development reviews Table 403-2 Hazard identification risk assessment and Occupational Health Double Materiality incident investigation and Safety 3-3 Management of material topics Assessment GRI 405: Occupational Health Diversity 403-3 Occupational health services Corporate Governance and Safety and Equal 405-1 Diversity of governance bodies and employees Protection of Employee Opportunity Rights and Interests 2016 403-4 Worker participation consultation and Occupational Health 405-2 Ratio of basic salary and remuneration of women / communication on occupational health and safety and Safety to men GRI 403: GRI 406: Double Materiality 3-3 Management of material topics Occupational Occupational Health Assessment403-5 Worker training on occupational health and safety Non- Health and and Safety discrimination Safety 2018 406-1 Incidents of discrimination and corrective actions Protection of Employee Occupational Health 2016 taken Rights and Interests 403-6 Promotion of worker health and Safety GRI 407: Double Materiality 3-3 Management of material topics 403-7 Prevention and mitigation of occupational Freedom of Assessment Occupational Health health and safety impacts directly linked by business Association and Safety Protection of Employee relationships and Collective 407-1 Operations and suppliers which the freedom of Rights and Interests Bargaining association and collective bargaining may be at risk Sustainable Supply 2016 403-8 Workers covered by an occupational health and Occupational Health Chain Management safety management system and Safety Double Materiality 3-3 Management of material topics Occupational Health Assessment 403-9 Work-related Iinjuries and Safety GRI 408: Child Labor Protection of Employee Occupational Health 2016 408-1 Operations and suppliers at significant risk for Rights and Interests 403-10 Work-related ill health and Safety incidents of child labor Sustainable Supply Chain Management GRI 404: Double Materiality 3-3 Management of material topics Double Materiality Assessment 3-3 Management of material topicsTraining and GRI 409: Assessment Education Forced or ESG Key Performance Protection of Employee 2016 404-1 Average hours of training per year per employee Compulsory Table 409-1 Operations and suppliers at significant risk for Rights and Interests Labor 2016 incidents of forced or compulsory labor Sustainable Supply Chain Management 1362025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices GRI Standard Disclosure Location GRI Standard Disclosure Location 3-3 Management of material topics / GRI 410: GRI 415: 3-3 Management of material topics Not Applicable Security Public Policy Practices 2016 410-1 Security personnel trained in human rights / 2016 415-1 Political contributions Not Applicable policies or procedures Double Materiality GRI 411: 3-3 Management of material topics Not Applicable 3-3 Management of material topics Assessment Rights of GRI 416: Indigenous 416-1 Assessment of the health and safety impacts of Strengthening Quality 411-1 Incidents of violations involving rights of Customer Peoples 2016 Not Applicable product and service categories Controlindigenous peoples Health and Safety Strengthening Quality 416-2 Incidents of non-compliance concerning the Double Materiality Control ESG Key 3-3 Management of material topics health and safety impacts of products and services Assessment Performance Table Double Materiality Contribution 3-3 Management of material topics 413-1 Operations with local community engagement Assessment GRI 413: to Community impact assessments and development programmes Local Development Communities 417-1 Requirements for product and service information / 2016 GRI 417: and labellingGreen Production and Operations Marketing and 413-2 Operations with significant actual and potential Contribution Labelling 2016 negative impacts on local communities 417-2 Incidents of non-compliance concerning product ESG Key Performance to Community and service information and labelling Table Development 417-3 Incidents of non-compliance concerning ESG Key Performance Double Materiality 3-3 Management of material topics marketing communications Table Assessment GRI 414: Double Materiality 414-1 New suppliers that were screened using social ESG Key Performance 3-3 Management of material topics Supplier Social Assessment criteria Table GRI 418: Assessment Customer Privacy 414-2 Negative social impacts in the supply chain and ESG Key Performance 418-1 Substantiated complaints concerning breaches of ESG Key Performance actions taken Table customer privacy and losses of customer data Table 1372025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices IFRS S2 Climate-Related Disclosures Index Recommended Disclosures Reporting Section Recommended Disclosures Reporting Section The governance body(s) (which can include a Disclose the entity’s processes and related policies board committee or equivalent body charged with for identifying assessing prioritising and monitoring governance) or individual(s) responsible for oversight climate-related risks.of climate-related risks and opportunities. Responses to Climate Governance Disclose management’s role in the governance Change - Governance Disclose the entity’s processes for identifying processes controls and procedures used to monitor assessing prioritising and monitoring climate- manage and oversee climate-related risks and related opportunities including information about opportunities. Responses to Climate Risk whether and how the entity uses climate-related Change - Impacts Risks Disclose the climate-related risks and opportunities Management scenario analysis to help identify climate-related and Opportunities that could reasonably be expected to affect the opportunities. Management entity’s prospects.Disclose the current and anticipated effects of Disclose to what extent and how the entity's processes climate-related risks and opportunities on the entity’s for identifying assessing prioritising and monitoring business model and Value chain. climate-related risks and opportunities are integrated into and inform the entity’s overall risk management Disclose the effects of climate-related risks and process.opportunities on the entity’s strategy and decision- making including information about its climate- related transition plan. Disclose information relevant to the cross-industry Responses to Climate metric categories.Disclose the effects of climate-related risks and Change - Impacts Risks Strategy opportunities on the entity’s financial position and Opportunities financial performance and cash flows for the Management Disclose industry-specific metrics associated with the reporting period and their anticipated effects on entity’s business model activities or other common its financial position financial performance and features that characterise participation in an industry.cash flows over the short medium and long term Responses to Climate Metrics and considering how the entity reflects these climate- Change - Strategy Targets related risks and opportunities in its financial Metrics and TargetsDisclose the targets the entity has set to mitigate or planning when disclosing anticipated effects. adapt to climate-related risks or to take advantage The climate resilience of the entity’s strategy and of climate-related opportunities and any targets it business model to climate-related changes is required to meet by law or regulation including developments and uncertainties considering the the metrics used by the governance body or climate-related risks and opportunities the entity has management to measure progress towards achieving identified. these targets. 1382025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices The Ten Principles of the UNGC Index Category Principle Reporting Section Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights Protection of Employee Rights and Interests Human Rights Principle 2: Businesses should not be complicit in human rights abuses Protection of Employee Rights and Interests Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining Protection of Employee Rights and Interests Principle 4: Businesses should support the elimination of all forms of forced and compulsory labour Protection of Employee Rights and Interests Labour Standards Principle 5: Businesses should support the effective abolition of child labour Protection of Employee Rights and Interests Principle 6: Businesses should support the elimination of discrimination in respect of employment and occupation Protection of Employee Rights and Interests Principle 7: Businesses should support a precautionary approach to environmental challenges Responses to Climate Change Environmental Compliance Management Green Environment Principle 8: Businesses should undertake initiatives to promote greater environmental responsibility Production and Operations Responses to Climate Change Green Production and Principle 9: Businesses should encourage the development and diffusion of environmentally friendly technologies Operations Anti- Principle 10: Businesses should work against corruption in all its forms including extortion and bribery Business Ethics corruption 1392025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Third-Party Assurance Report 1402025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices 1412025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices Verification Opinion Verified as Satisfactory Based on the process and * is materially correct and is a fair representation of GHG data and procedures conducted the GHG information.statement contained in the GHG * has been prepared in accordance with ISO 14064-1:2018 and itsReport “Y2025 GHG Report of principles.Wuxi Lead Intelligent EquipmentCo. Ltd.” produced by Wuxi Lead Intelligent Equipment Co. Ltd.- The greenhouse gas (GHG) inventory is limited to direct greenhouse gas emissions indirect greenhouse gas emissions from purchased electricity indirect greenhouse gas emissions from transportation (upstream transportation downstream transportation employee commuting and business travel) indirect greenhouse gas emissions from products used by the organization and indirect greenhouse gas With the following caveats emissions related to the use of the organization's products.- For the reporting of Scope 2 greenhouse gases both location-based and market-based methods are adopted.- For the quantification of indirect emissions from purchased goods and services in Category 4 the USEEIO database released by the U.S. EPA is used. The inflation factor is eliminated through CPI and quantification is conducted after matching the corresponding industries.Lead Verifier Bell Deng Independent Reviewer Aaron Wang Matt Page Senior Vice President Assurance Services EMEA Signed on behalf of BSI Issue Date 22 March 2026 BSI Assurance UK Ltd. Kitemark Court Davy Avenue Milton Keynes MK5 8PP UK NOTE: BSI Assurance UK Ltd. is independent to and has no financial interest in Wuxi Lead Intelligent Equipment Co. Ltd.This 3rd party Verification Opinion has been prepared for Wuxi Lead Intelligent Equipment Co. Ltd. only for the purposes of verifying its statement relating to its GHG emissions more particularly described in the scope above.It was not prepared for any other purpose. In making this Statement BSI Assurance UK Ltd. has assumed that all information provided to it by Wuxi Lead Intelligent Equipment Co. Ltd. is true accurate and complete.BSI Assurance UK Ltd. accepts no liability to any third party who places reliance on this statement.CFV 840589 Information and Contact: BSI Management Systems Certification (Beijing) Co. Ltd.Rm. 2008 East Ocean Center No. 24A Jianguomenwai Street Beijing 100004 P.R. China Tel: +86 10 85073000 A Member of the BSI Group of Companies.Page: 1 of 5 1422025 Environmental Social and Governance (ESG) Report Introduction Sustainability Management Governance Value Chain Environment Social Appendices 143