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Materiality Assessment
Double Materiality Analysis 14
Stakeholder Communication 15
Conclusions of the Double Materiality Analysis 16
13Double Materiality Analysis
We identified and summarized 27 ESG-related topics covering environmental social and governance dimensions in accordance
with the Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report (For Trial
Implementation) (the Sustainability Reporting Guidelines) and the Self-regulatory Guidelines No. 3 for ChiNext Listed Companies
on Shenzhen Stock Exchange—Sustainability Report Preparation and by taking into account industry characteristics and business
operations.We analyzed and assessed topic materiality from a double materiality perspective:
(1) Whether each topic is expected to have a material impact in the short medium and long term on our business models operations
development strategies financial position operating results cash flows financing methods and costs among other matters (financial
materiality); and (2) whether our performance on the corresponding topic would have a material impact on the economy society and
environment (impact materiality). In addition taking into account the characteristics of the industry in which we operate the stage
of industry development our business models and our position in the value chain we incorporated topics and sub-topics that are
highly relevant to our business operations and products into 21 topics and carried out a double materiality assessment to enrich the
perspectives and comprehensiveness of the Report.We collected stakeholder views through online questionnaires gathering views on financial materiality from internal stakeholders
and views on impact materiality from external stakeholders and ultimately formed a list of material topics for assessment. Internal
stakeholders included middle and senior management department heads and subsidiary heads with an in-depth understanding of
the Company's financial performance. External stakeholders mainly included our employees consumers and customers suppliers
government agencies the media and the public.
14Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Stakeholder Communication
We have established and continuously improved our stakeholder management system. Based on institutional documents such as
the Stakeholder Control Procedure and the List of Monitored Stakeholder Needs Risks and Opportunities we regularly identify ESG
concerns of investors customers employees and partners respond to the demands of all parties through diversified communication
channels in a timely manner promote co-creation and shared benefits among shareholders employees and society and foster a
sustainability pattern of mutual benefit and win-win outcomes.Stakeholders Topics of concern Communication & Feedback Channels
◇ Tax compliance ◇ Green office ◇ Official correspondence ◇ Innovation and R&D
Government ◇ Operational compliance ◇ Field visits and research ◇ Circular economy and
& Regulatory ◇ Work safety ◇ Daily communication energy saving & emissions
◇ Ecological protection ◇ Environmental data reduction
Authorities
◇ Energy management disclosure
◇ Green products
◇ Business performance ◇ Risk management and ◇ Official website ◇ Business briefing
◇ Innovation capability control ◇ Investor hotline sessions
◇ Corporate strategy ◇ Investment return ◇ Investor relations mailbox ◇ Accepting regulatory
Shareholders ◇ Information disclosure mechanisms ◇ Interactive Easy Platform inspections
◇ Corporate governance ◇ Shareholders' meeting
◇ Official WeChat account
◇ R&D capability ◇ Environmental and energy ◇ Official website ◇ Customer satisfaction survey
◇ Product quality management ◇ Sales hotline
Customers ◇ Customer service ◇ Technical exchanges
◇ Contract fulfillment ◇ On-site visits
◇ Rights protection ◇ Democratic management ◇ Employee ◇ Themed activities
◇ Career development ◇ Occupational health and representative congress ◇ Complaint and suggestion
◇ Compensation and safety ◇ Trade union activities channels
Employees benefits ◇ Team building ◇ Employee satisfaction
◇ Care for employees ◇ Company's annual survey
meeting
◇ Mutual benefit ◇ Shared development ◇ Official website ◇ Guidance for suppliers
and win-win ◇ Business compliance ◇ Official WeChat account ◇ Supplier field visits
Suppliers & cooperation ◇ Business ethics ◇ General hotline ◇ Transparency Agreement
Partners ◇ Supply chain ◇ Supplier conference
management ◇ Bidding
◇ Daily communication
◇ Public welfare ◇ Community services ◇ Official website ◇ Social donations
activities ◇ Official WeChat account ◇ Rural revitalization
Community ◇ Employment ◇ Recruitment activities
opportunities ◇ Community activities
15Conclusions of the Double Materiality
Analysis
Through the double materiality analysis we established a repository of material ESG topics and developed a materiality matrix based
on two dimensions: financial materiality and impact materiality. In 2025 among the 27 ESG topics identified by us four were confirmed
through assessment as double materiality topics. In accordance with the requirements of the Sustainability Reporting Guidelines these
topics are disclosed in this Report under the double materiality disclosure framework and addressed from four aspects: governance
strategy management of impacts risks and opportunities and indicators and targets.R&D and innovation
Product quality management
Digital development Sustainable supply
chain
Corporate
governance Sustainability Employee rights and interests protection
governance
Integrity and anti-corruption
Customer service Addressing climate change
Party building management
Fair competition Environmental Employee training and development
compliance
Green office management Investor rights and interests protection
operations Water resource Occupational health and safety
Circular Support rural utilization
Pollution prevention and control
economy revitalization
Information security Energy Utilization
Ecology and biodiversity conservation
Equal treatment to SMEs Social contribution
Ethics of science and technology
Impact materiality Highly important
Environmental topics Social topics Governance topics
◇ Addressing climate compliance ◇ R&D and innovation ◇ Employee training and ◇ Corporate governance
change management ◇ Product quality development ◇ Fair competition
◇ Energy Utilization ◇ Green office management ◇ Occupational health and safety ◇ Integrity and anti-corruption
◇ Pollution prevention operations ◇ Employee rights and ◇ Information security ◇ Sustainability governance
and control ◇ Circular economy interests protection ◇ Social contribution ◇ Party building
◇ Water resource ◇ Ecology and ◇ Digital development ◇ Support rural revitalization ◇ Investor rights and interests
utilization biodiversity ◇ Sustainable supply chain ◇ Equal treatment to SMEs protection
◇ Environmental conservation ◇ Customer service ◇ Ethics of science and
management technology
Topic adjustment
In 2025 we adjusted the naming of certain topics
based on the Sustainability Reporting Guidelines "Digital transformation"was adjusted to "Digital Development" "Supply
feedback from stakeholders and our actual situation chain management and sustainable supply chain" were merged into
to better demonstrate our management practices. "Sustainable supply chain" and "Pollutants and waste emissions" was
adjusted to "Pollution prevention and control"
16
<<<
Highly important <<< Financial materialityShenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Sustainability Governance
Sustainability Governance Structure 18
Sustainability Management Mechanism 18
Sustainability Strategy 19
Sustainability Risks and Opportunities 20
Sustainability Honors and Awards 21
Sustainability Engagement and Training 21
17Sustainability Governance Structure
The Company's Board of Directors is the ultimate Yinghe Technology ESG Governance Structure
ESG governance body. The ESG Committee under the
Board of Directors is responsible for overall supervision
and management. It has an ESG task force composed Decision-
of multiple departments and subsidiaries which making Board of Directors
is responsible for collecting and summarizing ESG
information forming a working mechanism with top-
level decision-making top-down coordination and
clear division of labor. Management ESG Committee
As the centralized management department for ESG
reporting the Board Office strictly benchmarks against
standards from authoritative organization such as the
China Securities Regulatory Commission Shenzhen Board ESG Task External ESG
Stock Exchange and Shanghai State-owned Assets Office Force Support
Supervision and Administration Commission conducts Execution
benchmarking on a regular basis dynamically identifies
management shortcomings to ensure continuous Functional Subsidiaries
optimization and improvement promotes the in-depth Departments
development of ESG management and consolidates
the foundation for sustainability.Sustainability Management Mechanism
Information Supervision
We have formulated the Working Rules of the reporting procedures and
ESG reporting
mechanism measures incentives
ESG Committee of the Board of Directors to
standardize the procedures for deliberation and Convene regular and The ESG Committee Establishing ESG
decision-making of our ESG Committee clarify ad hoc meetings of supervises the reporting incentive
mechanism to evaluate
our sustainability management mechanism the ESG Committee achievement of
to discuss the our ESG goals and the ESG practice
and improve the Committee's work efficiency Company's ESG- regularly inspects effectiveness target
and science-based decision-making. In 2025 we related matters the implementation formulation and
implemented ESG reporting incentives and guided completion of each review and submit of our ESG policies department so as to
departments to integrate ESG philosophies into our ESG-related and tasks. continuously encourage
daily operations by assessing ESG management reports to the Board the deepening and
indicators such as their ESG practice effectiveness of Directors. improvement of ESG
and target commitments consistently improving practices across all
departments.our ESG governance capabilities.
18Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Sustainability Strategy
Based on our strategic positioning and business models we have accurately identified the six core issues that contribute most
significantly to the sustainability goals continuously created value with pragmatic ESG practices and consolidated the foundation for
sustainable growth.Lead the Future Build a Green Ecosystem Together
Strategic Pioneer of new quality intelligent manufacturing · Guardian of a green future · Practitioner of shared
planning responsibility and win-win cooperation
Strategic Excellent Technology Low carbon Win-win Intelligent Harmonious
areas governance empowerment development cooperation manufacturing relationship
Strategic By 2030 we will By 2030 we By 2030 we will develop By 2030 we By 2030 we will By 2030 we
goals develop into an will improve into a resource-saving will build a evolve into a world- will create an
export-oriented the intellectual and environment-friendly sustainable stable class provider of inclusive and
enterprise property enterprise by responding and safe supply lithium battery diversified
with a well- management to the national "double chain and create equipment workplace
established ESG system and carbon" policy to reduce a sustainable and electronic provide
management processes to comprehensive energy industrial chain vaping products long-term
system ensure effective consumption intensity. with upstream integrating digital development
first-class coordination and and downstream technology into all paths for every
governance integration between partners. aspects of product employee
and good intellectual R&D leadership and actively
business property work and decision-making assume social
practices. the work of relevant and business responsibilities.departments. operations.Aligning with
SDGs
Imple- ESG Innovation platform Climate change Sustainable Digital intelligence Diversified
mentation management Industry- governance supply chain transformation employment
Integrity and university-research Carbon Inventory and Supplier Employee
path compliance cooperation carbon footprint empowerment motivation and
Board building Environmental Industrial chain development
compliance management cooperation
Guarantee Organization guarantee System guarantee Capability guarantee Culture guarantee Fund guarantee
mechanism The ESG Committee of the Formulate ESG Organize ESG- Conduct ESG training Increase investment
Board of Directors has been management systems related training to for all employees and in research and
established with a ESG task such as the Working enhance employees' set up ESG reporting development
force composed of multiple Rules of the ESG ESG awareness and incentive awards environmental
departments and subsidiaries Committee of the capabilities protection and work
Board of Directors and safety social donations
continuously improve the and other fields by
management systems providing financial
adopted in various areas support
Our sustainability strategy
19Sustainability Risks and Opportunities
The Board of Directors and its ESG committee systematically identify and evaluate the Company's relevant impacts risks and
opportunities on sustainability in accordance with the Sustainability Reporting Guidelines for Listed Companies and the General
Requirements for Disclosure of Sustainability-related Financial Information (IFRS S1) and other standards and guide the management
to formulate and implement corresponding measures continuously improve ESG management capabilities and risk prevention and
control capabilities.Sustainability risks/
Risk/opportunity description Response measures
opportunities
The new energy industry witnesses fierce competition for core Strengthen our recruitment efficiency expand
and key talents posing a risk of turnover of senior technical re c r u i t m e n t c h a n n e l s a n d co n t i n u o u s l y
HR risks and
personnel. As a leading enterprise in the industry with stable improve employee benefits and development
opportunities
development and scale advantages the Company continues opportunities to improve employee attraction
to attract high-quality talents. and retention rates.Procurement demand deviations and supplier production Formulate mechanisms such as the Procurement
capacity misjudgments lead to delivery risks from supply Management Control Procedures and the Supplier
chain; Management Control Procedures to monitor
Supply chain Accurate assessment of supplier production capacity can procurement demands supplier production
risks and optimize order allocation strategies reduce inventory capacity and other information in real time
opportunities redundancy risks and integrate production capacity analyze data changes and formulate abnormal
advantages; resolution measures.Build a digital supply chain platform to achieve dynamic
inventory monitoring and improve market forecast accuracy.Factors such as unreasonable production plans and We have developed rules such as the Quality
substandard product quality lead to product delivery risks and Manual and the Equipment Delivery Control
customer complaints; Procedures to standardize the product life cycle
Product delivery Stable and high-quality product delivery improves customer quality management mechanism and thus
risks and satisfaction and brings more cooperation opportunities. ensured that product quality meets the needs of
opportunities the Company and customers. We evaluate the
production plan based on multiple factors such as
project status production capacity and supplied
materials to ensure accuracy.Factors such as untimely customer communication W e h a v e f o r m u l a t e d r u l e s s u c h a s t h e
inadequate after-sales service and untimely resolution of Management Regulations on Escalation of
customer complaints lead to the risk of losing customers; Customer Complaints and the After-sales Service
Customer service
Timely response to customer complaints and experienced Control Procedures to standardize customer
risks
after-sales team improve customer experience and satisfaction. complaints and after-sales service processes
and established a customer-centered corporate
culture.Unclear customer information inexperience of designers and We are equipped with a complete technological
insufficient cross-department communication lead to slowed innovation R&D system an experienced R&D
product development and failure to adddress the needs technical team and a demand-driven product
Product R&D
of high-quality customers resulting in a decline in market technology development mechanism to ensure
risks and
competitiveness; that our product technology solutions meet
opportunities
Conduct in-depth analysis of customer or market demand customer needs.trends seize high-quality customers and capture market
demand.
20Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Sustainability Honors and Awards
AA A AA
Wind ESG Rating Sino-Securities Index ESG Rating CNI Index ESG Rating
2025 Excellent Sustainability Practice Cases RBA Silver Status Certification
2025 Dual Carbon Technology 2025 Dual Carbon Pioneer to 2025 Best ESG Practice Award for
Pioneer Award He Aibin Listed Companies
Sustainability Engagement and Training
We have established a regular ESG learning mechanism to
continuously improve the management's sustainability literacy.In November 2025 we participated in Shanghai Electric Group's
ESG and compliance training systematically studied cutting-edge
theory and practical experience deepened our accurate grasp of
the latest policy trends strengthened compliant operations and
sustainability capabilities and gained solid knowledge support
for the in-depth advancement of ESG management. In addition
we actively participate in the exchange's themed training sessions
on sustainability introduce external experts to deliver themed
training continuously promote systematic learning of ESG rules and
consolidate the foundation for information disclosure. 2025 ESG Report Launch Training
21Special Topics
Digital and Intelligent Development Continuously
Empowering Manufacturing Upgrade
Digital and Intelligent Development Strategy
At Yinghe Technology we actively pursue the national digital transformation strategy by continuously stepping up our digital
development and leveraging digital technology to empower business operations and management decisions. In 2025 guided by
the core digital and intelligent strategy"empowering business through digital technology driving process efficiency with intelligence
and supporting the green transition" we focused on the industry production characteristics of "multiple varieties small batches and
customization" implemented key projects solved business pain points and built a solid digital foundation for our sustainability.SAP System Upgrade Process Framework Development
Enhance business adaptability improve Accumulate organizational capabilities
operational efficiency and unlock data strengthen internal collaboration and
value support sustainable business growth
Data
Intelligence-Driven
MES System Data Governance
Implementation Standardize data
Enable flexible production standards; support
adaptation transparent precise decision-making
manufacturing control Digital & Capability Intelligent Enhancement and mitigate data risks
and end-to-end quality Transformation
traceability
R&D System Upgrade Experience-Driven Intelligent AI Factory
Reconstruct model-based multi-disciplinary Empowerment
c o l l a b o r a t i v e R & D s y s t e m s t o e n h a n c e Intelligent operations management
management efficiency design efficiency and smart scheduling market forecasting
quality and supply chain synergy
22Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Empowerment for Business Scenarios
Digital Collaboration Between R&D and Supply Chain
▍ SAP-ECN system process optimization
To solve the industry production pain points of "frequent design changes and lag in cross-department response" we launched the SAP
system ECN process optimization project to effectively avoid material scrapping production rework and other hidden dangers caused
by the traditional manual synchronization model and to improve resource efficiency and delivery quality.System interface New intelligent analysis Approval workflow re-
integration module engineering
We create the interface between A ne w ECN impact intel l igent A p p ro va l w o r k f l o w re -
PLM and SAP systems to realize analysis module has been added to engineering has changed
automatic coordination between automatically identify the impact "offline signature + system
design drawing changes and of changes on in-transit purchase entry" to "graded online
ECN processes—after engineers orders and workshop work-in- approval" created a "green
release changes to PLM SAP progress and generate a "stop-loss channel" for emergency
automatically generates change suggestion list" (such as suspending changes and streamlined
notifications and pushes them parts production and notifying approval procedures.to procurement production and suppliers to postpone delivery).other positions.▍ SRM-SAP Material Collaboration
In response to issues such as material shortages and long production lead times caused by the "design procurement and
production"model we have implemented an SRM and SAP system integration optimization initiative to enable multi-line collaboration.Collaborative platform creation Intelligent algorithm development
Build an SRM-SAP material collaboration platform Develop an intelligent material requisition
to achieve real-time synchronization of BOM algorithm to generate the optimal batch
inventory and production work orders and plan based on order priority equipment
support "both BOM and material requisition in capacity and material arrival cycle giving
batches." priority to ensuring the complete set of
customized parts with long delivery times.▍ Digital Drawing Processing
We ensure efficient delivery to suppliers through the SRM system enable automatic format conversion of parts and component
drawings standardize the drawing transmission process improve collaboration efficiency between supply and demand sides and
support the standardization and ease of drawing transmission between supply and demand sides.
23▍ Supply Chain System Development
Process efficiency System function Procurement Contract Performance
optimization development Control and Compliance
Strengthening Management
Focus on simplifying Enhance digital Control costs and reduce Track the performance
operations and shortening procurement tools procurement risks status of contracts and
cycles and improving the implement functions through discounted price human outsourcing
efficiency of the entire including drawing control for non-standard establish a supplier
procurement process through management supplier parts and core material penalty mechanism
measures such as streamlining invitation and registration inspection reports. regulate cooperation
the approval procedures of online ECN processes behavior and avoid
the procurement system non-standard part panel overdue and delivery
automatic order transfer for development and risks.standard parts quick order solution-based material
transfer for inter-company linkage to support online
transactions and optimization and visualized business
of reconciliation logic. management.Supply Chain System Planning
24Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Digital Quality Platform Development
Quality data visualization Dynamic data monitoring Automatic data collection and tracing
Establish a data dashboard for Realize dynamic KPI Enable the automatic collection statistics by
the quality management center management intelligent early category and trend analysis of quality and cost
to realize visual dashboards warning analysis and data. The platform covers the two dimensions
real-time data sharing and cross-department data of internal loss and external loss and supports
uploading. collaboration. multi-dimensional traceability by product
process and responsible unit.Digital Quality Platform
Integrated Sales Management Platform Development
Transparent quotation Improved quotation Data prediction
process accuracy standardization
With business opportunities Through the pre-inquiry of the Integrate business data to
quotation management and plan-based material module the establish unified entry standards
other modules on the CRM contradiction between the short and aggregation standards
system the entire quotation bidding cycle and customized support automatic and
process is digitized and the material accounting is solved and synchronized data verification
rights and responsibilities the problem of "lag in feedback" or and eliminate duplicate entry
at each stage are clarified to "rushed quotation" can be avoided. and multi-version.ensure traceability and progress
monitoring.
25Integrated Sales Management Platform
Smart Factory Development
▍ Deployment of Core Smart Factory Systems
We consistently invest in the construction of smart factories and realize the full integration of R&D-procurement-manufacturing-
debugging and drive the intelligent upgrading of factories through in-depth deployment of MES systems.BOM collaboration and Precise management of Warehouse system
process standardization online warehouses integration
Realize design BOM and Build a line-side warehouse The integrated intelligent
manufacturing BOM mapping management module to warehousing system realizes
collaboration and standardize accurately calculate process- automatic material scheduling
product development and level material requirements and inbound and outbound
production sign-off process. and reduce material waste. inventory management
improving warehousing
efficiency.
26Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Smart factory system
▍ End-to-end Data Visualization
We focus on the core chain of "procurement-production-delivery-inventory" and have built a multi-dimensional BI analysis dashboard
to support management's accurate decision-making and resource optimization allocation.BI dashboard development
Tracking of Monitoring of Refined Refined Material supply and
demand-to- material arrival inventory inventory demand balance
procurement status analysis analysis management and
conversion control
Visualize the progress Track the entire Monitor production Present the Compare demand
of conversion from process of material and machine inventory age plans with supply
demand orders to ordering in- shipments and turnover rate capacity alert the
procurement orders transit arrival display core and slow-moving risks of shortage or
by displaying the and acceptance indicators such as inventory by surplus and support
order conversion and provide early machine model material type and dynamic adjustment.rate timeliness rate warning of the distribution and project.and reasons for non- material shortage plan achievement
conversion orders. risk. rates.
27Digital Capability Development
We attach great importance to the organization's digital capability building and seek to fully unleash the collaborative value of
employees and digital tools by building a long-term empowerment mechanism.In 2025 we organized the Efficiency Pioneer Competition. By selecting the Efficiency Pioneer team we deeply expanded the practical
capabilities of using Lark and other tools in various business scenarios collected various replicable benchmark cases and created a
cultural atmosphere of an efficient office.CASE
Excellent AI tool application cases in the Efficiency Pioneer Competition
Our employees developed a visual dashboard
for the entire project lifecycle based on the Lark
platform replacing traditional PPT reports with
"automatic data synchronization + multi-view
collaboration + refined permission control" and
combining it with AI-driven intelligent analysis
to speed up reviews by category and update
data in real time promoting the transition to
lightweight management.Launch of Yinghe Technology's first Efficiency Pioneer Opening Ceremony of the Yinghe Technology Efficiency
Competition Pioneer Competition
28Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Deepening Industrial Communication and Demonstrating
Leading Technological Capabilities
In 2025 we continued to deepen our deployment in the industry in a forward-looking manner and actively fulfilled our mission of
technology-led development. As a co-editing organization we have joined hands with outstanding partners in the industry to release
the White Paper on the Development of China's Solid-State Battery Industry in 2025 and the White Paper on the Development of
China's Large Cylindrical Battery Industry in 2025 to systematically sort out the industry's technological development context industry
status and future trends provide an authoritative reference guide for the industry chain and demonstrate our technical strength
and responsibility in the battery field. We actively embraced inspections and surveys from industry associations discussed industry
development pain points with outstanding industry experts and seized future development opportunities in the industry.Jointly Release Industry White Paper
Co-Create Technological Development Blueprint
In November 2025 the 10th International
S u m m i t o n Po w e r B a t t e r y A p p l i c a t i o n
(CBIS2025) was successfully held in Shanghai.
With the theme of "The New Era of Global Supply
Chain under Regionalization" this summit
brought together top corporate representatives
and experts from the global new energy battery
industry chain to discuss industry development
trends and cooperation paths.During this summit Dr. Li Wei Director of
Yinghe Technology Research Institute as
a representative of the invited co-editing
organization participated in the compilation
of the White Paper on the Development of
China's Solid-State Battery Industry in 2025
and the White Paper on the Development of
China's Large Cylindrical Battery Industry in
2025 and jointly released this series of results
with industry chain partners. This series of white
papers systematically sorts out the technical
paths industry status quo and future trends in
related fields. This joint release demonstrates
the industr y's high recognition of Yinghe
Technology's technical strength and market
position in cutting-edge equipment fields such
as solid-state batteries and large cylindrical
batteries.White Paper on the Development of White Paper on the Development
China's Solid-State Battery Industry of China's Large Cylindrical Battery
in 2025 Industry in 2025
29Welcomed inspections and surveys from industry associations to
discuss industry development prospects
In December 2025 Wang Zeshen secretary-general of the
China Industrial Association of Power Sources （CIAPS）
and his delegation went to Shenzhen Yinghe Technology
Co. Ltd. for an inspection and investigation focusing on
three core issues: technological breakthroughs in lithium
battery equipment construction of smart digital factories
and global industry collaboration. They were received
by Zheng Yingxia Secretary of the Party Branch and Vice
Chairman of Yinghe Technology Dr. Li Wei Director of the
Yinghe Technology Research Institute Zhao Chunxiang Vice
President of our Marketing Center and many other core
team members. The two parties had in-depth exchanges on
corporate strategies technology research and development
results and solutions to industry development pain points. Secretary-general Wang Zeshen fully affirmed our performance
in technological innovation and industry responsibility pointing out that we had accurately grasped the core needs of the
intelligent and large-scale development of the lithium battery industry.Industry research: a two-pronged approach to breaking through bottleneck
challenges in solid-state battery equipment
The production process of l ithium batteries is
complex and involves multiple stages. Lithium
battery equipment plays a vital role in ensuring the
performance quality and production efficiency of
lithium batteries.In August 2025 to track the progress of lithium battery
equipment research and development and analyze the
industrial development dilemma Zhou Bo general
manager of the Power Battery Application Branch
Research Center of the China Industrial Association of
Power Sources (CIAPS) and deputy general manager of
CBEA and other research team came to Yinghe Technology for an on-site visit and investigation. With Zheng Yingxia Secretary
of the Party Branch and Vice Chairman of Yinghe Technology solid-state equipment technicians from the institute and other
relevant corporate leaders they conducted extensive exchanges on solid-state battery technology iterations the current
situation of equipment manufacturers and the challenges in going global as well as hot topics in corporate development and
industry.
30Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Environmental
Addressing Climate Change 32
Environmental Compliance Management 37
Pollution Prevention and Control 40
Resource Utilization 43
Green Operations 47
Ecology and Biodiversity Protection 48
31Addressing Climate Change
Climate Change Governance
At Yinghe Technology
we have established Strategic decision- Professional support Implementation
a systematic making
ESG and climate As the highest decision- An ESG committee has We have established a dedicated ESG
governance system making body the Board been established to review task force and a cross-departmental
forming a three- of Directors includes key issues including coordination mechanism embedding
tier management ESG and climate change environmental target setting climate change management into
structure of "strategic issues in its strategic the climate risk management core business processes such as
decision-making deliberations. framework and sustainability R&D procurement and production to
professional support resource allocation ensure that our low-carbon transition
and implementation". while coordinating cross- goals remain aligned with our
departmental resources. business development.Climate Strategy
We fully recognize the systemic interconnections between climate risks and opportunities and have conducted scenario analysis
under both SSP5-8.5 and SSP1-2.6 pathways to accurately identify the impact horizons of policy changes and extreme weather on
our operations and financial performance over the short medium and long term. Based on the analysis results we have determined
the strategic direction of our green transition formulated dynamic response strategies continuously enhanced climate resilience
proactively adapted to the global climate transition and transformed climate pressure into opportunities for innovation.Going forward we will deepen climate risk management by shifting from qualitative analysis to quantitative assessment focusing on
three priorities: first conducting systematic quantitative assessments of supply chain disruption risks arising from extreme weather;
second thoroughly evaluating the incremental R&D investment required for the transition of traditional lithium battery equipment
toward low-carbon technologies under the "dual carbon" policy framework; and third proactively quantifying the tariff barrier risks
faced by high-carbon-footprint products exported to the EU market. Meanwhile we will further strengthen supply chain carbon
management by encouraging core suppliers to provide carbon emissions data so as to comprehensively quantify and identify climate
risk exposure across all components of the supply chain and continuously enhance overall climate resilience.Scenarios High-emissions scenarios Low-emissions scenarios
Scenario reference Intergovernmental Panel on Climate Change's(IPCC) IPCC's Shared Socioeconomic Pathways SSP1-2.6Shared Socioeconomic Pathways SSP5-8.5
Temperature increase More than 4°C (relative to pre-industrial times) Below 2°C (relative to pre-industrial times)
This scenario is usually described as a future scenario with This scenario combines a sustainable socioeconomic
high emissions significant development inequality and background with a low radiative forcing climate target. It
strong dependence on fossil fuels. In this scenario physical is often described as a future path characterized by the
risks are relatively high and transition risks are relatively synergy between green transition and climate action. In this
Scenario description low. Countries have not introduced policies to deal with scenario transition risks are relatively high and physical
climate change. Energy demand and greenhouse gas (GHG) risks are relatively low. This scenario aims to achieve the
emissions continue to grow leading to continued warming long-term goals of the Paris Agreement (keeping global
of the global surface and an increase in the frequency of temperature rise below 2°C and working towards limiting it
extreme climate events and other phenomena. to 1.5°C).
32Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
33
Climate Risks and Opportunities
Magn-
Scope Impact Potential Finan-
Likeli- itude Priori-
Type Background description Risks Oppor-tunities of hori- financial cial Response measures
hood of tiza-tion
impact zon impact impact
impact
Increased severity of ◎ Disruptions to ◎ Improve our risk Medium Medium High Short- Medium ◎ Factory Low ◎ Develop emergency
extreme weather (such as production operations resilience to extreme to mid- shutdowns plans reserve supplies and
typhoons and floods) supply chain and weather and natural term production conduct regular drills
transportation disasters interruptions
◎ The Company and ◎ Damage to factory ◎ Ensure stable business ◎ Increased
its main subsidiaries are machinery and inventory operations and enhance maintenance costs for
located in southeastern overall risk resistance infrastructure such
coastal cities with as typhoon and flood
Acute significant temperature control
differences which are
prone to cyclones and may
be attacked or affected by
typhoons in summer.Rising sea levels ◎ The combined effects Low Low Medium Long- Low ◎ Affects our coastal Low ◎ Continue to follow local
of astronomical tides and term assets causing asset geographical and climate
◎ Data show that in the typhoons increase the risk depreciation information and strengthen
past 10 years the average of flooding and seawater ◎ Causes a certain risk control
Physical sea level along the coast intrusion. relocation cost
risks of Guangdong Province ◎ Potential risk of forced
(high- has been at the highest project infrastructure
emissions level in nearly 40 years. It migration in the future
scenario) is expected that in the next 30 years China's coastal
sea level will rise by 68-170
mm.Chronic
Rising average ◎ Reduced outdoor work Low Low Low Long- Low ◎ Increased Low ◎ Develop renewable
temperature efficiency term frequency of air- energy and use smart
◎ Increased risk of conditioning usage temperature control
◎ According to data it is workplace injuries leads to increased systems
expected that the annual while working in high operating costs ◎ Flexible working
average temperature in temperatures arrangements to avoid high
Guangdong may increase temperature
by approximately 1.0 1.9
and 2.8°C from 2011 to
2040 2041 to 2070 and
2071 to 2100 respectively.34
Policy risks faced ◎ Relevant policies ◎ Products that meet Medium High Medium Mid- to Medium ◎ Increased Medium ◎ Closely follow the
by products going may become new trade high environmental long- compliance costs policies and regulations
overseas barriers and restrict standards are more term and operating costs of target countries and
market access competitive in the related to carbon develop flexible strategies
◎ Our export products
◎ Target markets market emissions ◎ Develop multiple
may face requirements may require localized ◎ Companies that ◎ Conducive markets and reduce
and restrictions from production increasing comply with regulations to opening up dependence on a single
regulations such as the operational complexity in advance are more international market
EU Battery Regulation
◎ New regulations may likely to enter high- markets and ◎ Establish production
and the Carbon Border require higher technical standard international increasing revenue bases in target markets to
Adjustment Mechanism standards and there will markets reduce logistics and tariff
(CBAM). be a certain pressure costs
for technological
upgrading.Policies Climate information ◎ Climate information ◎ Formulate targeted High Low Low Short- Medium ◎ It is necessary Low ◎ Regularly invite third-
and laws disclosure disclosure requires management strategies to mid- to strengthen the party organizations to
obligations the Company to by accurately identifying term routine collection conduct carbon data
establish a complete the source of our carbon and maintenance verification to enhance
◎ As the world pays carbon emission data emissions scientifically of carbon data the credibility of
increasing attention collection accounting analyzing energy introduce third information disclosure
to climate issues the and reporting system consumption data parties for carbon ◎ Establish a dedicated
requirements for climate
Transition which may require the ◎ High-quality climate investigation and internal management change disclosure are
risks investment of a large information disclosure increase operating team and introduce constantly enriched and amount of human can help improve ESG costs. carbon management
(low- deepened. material and technical ratings and attract more ◎ More resources software
emission resources. investors who focus on need to be invested
scenario) ◎ Inaccuracies or sustainability. in policy tracking
omissions in climate- and interpretation
related data can resulting in
lead to legal risks or increased labor
reputational damage costs.Low-carbon ◎ There are ◎ Aligning with High High Medium Mid- to High ◎ Increased High ◎ Committed to
technology upgrade uncertainties in the the preferences long- R&D costs for optimizing product
and innovation green transition of of downstream term low-carbon design we strive to streamline the structure
technology and customers can put us technologies and minimize energy
◎ We closely follow there may be risks of in a better competitive ◎ Increased consumption while
China's "dual carbon" transition failure. position and help demand for low- ensuring complete
strategy give full play functions.◎ Competitors' low- expand market share carbon products
to the characteristics ◎ Conduct carbon technologies ◎ Establish innovative drives higher product research
of our main business have impact on our talent reserves and revenue and development Tech- and are committed products comprehensively through maximizing
nology to contributing to the equipment efficiency enhance our
green development and the simplification innovation capabilities unmanned operation
of the entire industry and low consumption
chain. of the product line.For example our dry
electrode solution
can reduce energy
consumption by 80%
compared with the
traditional coating
process.Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
35
Investment in Increased ◎ Optimize energy Medium Low Low Short- Low ◎ Reduce our Low ◎ Make future energy
renewable energy infrastructure mix and reduce energy to mid- electricity costs consumption plans in
installation and costs term and allow us to advance closely follow
◎ Increase the
utilization rate of renewable energy
◎ Significantly reduce consider selling policy changes and
purchase costs our carbon emissions excess electricity ensure that projects' renewable energy and help achieve the to the power grid return on investment
and deploy introduce ◎ Due to technical "dual carbon" goal to obtain stable is within a reasonable
Tech- rooftop photovoltaic factors such as natural income. range
nology projects factors and photovoltaic ◎ The initial ◎ Establish a
module performance investment cost professional operation
power generation and is high and daily and maintenance team
system stability may be maintenance and adopt intelligent
affected and repairs are management tools to
required which reduce operation and
increases operating maintenance costs and
costs. increase project benefits.Increased raw ◎ The cost of low- ◎ Raw materials Medium Medium Low Mid- to Medium ◎ Production costs Medium ◎ Sign long-
Transition material costs carbon raw materials with high energy long- increase and profits term procurement
is generally higher consumption and high term decrease agreements with risks ◎ Fluctuations in raw than that of traditional carbon emissions are low-carbon material
(low- material prices caused materials forcing the industry suppliers to enhance
emission by climate change ◎ If peer companies to shift to low-carbon supply chain stability
scenario) achieve low-carbon raw technologies ◎ Explore low-cost
material substitution ◎ Conducive alternative materials
or cost control more to promoting and collaborate with
quickly they may seize collaborative carbon suppliers to develop low-
market share. reduction in the supply carbon raw materials
chain
Market Stakeholder ◎ If we fail to ◎ Proactively Medium Medium High Mid- to High ◎ Failure to Medium ◎ Establish a regular
concerns and communicate effectively communicate with long- meet stakeholder communication
feedback with our stakeholders stakeholders to term expectations mechanism with
in a timely manner it establish a green and results in decreased stakeholders and
◎ Our performance may result in negative low-carbon brand revenue and a provide timely feedback
in addressing climate feedback from relevant image decrease in brand on matters of concern to
change has attracted parties. ◎ Collaborate with value in the market stakeholders
increasing attention the upstream and ◎ Good ESG ◎ Improve disclosure
from regulators downstream of performance quality and disclose it
employees rating the supply chain helps reduce our publicly through annual
agencies financial to improve the financing costs ESG reports
institutions suppliers sustainability of the
the public and other industry
relevant parties.Note: In terms of impact horizon the short-term period is within 1 year (including 1 year) after the end of the Company's sustainable information reporting period; the medium-
term period is 1-10 years (including 10 years) after the end of the Company's sustainability information reporting period; the long-term period is more than 10 years after the end
of the Company's sustainability information reporting period.▍ Risk and Opportunity Management
Multi-dimensional
background analysis Dual-path scenario Quantitative assessment
framework stress test of value at risk
Establish a multi-dimensional Based on the IPCC Fifth Assessment Drawing on the risk matrix tool
climate background analysis Report framework climate scenario recommended by the International
model covering business analysis is conducted under the Sustainability Standards Board (ISSB)
activities supply chain networks SSP5-8.5 and SSP1-2.6 scenarios and the Sustainability Guidelines
regional climate characteristics to identify impacts risks and we evaluate and rank the likelihood
and stakeholder demands to form opportunities under different magnitude and impact pathways of
a climate risk baseline database. pathways and to assess the gaps identified climate-related impacts risks
between climate-related targets and and opportunities.the current status.Dynamic monitoring and Graded response strategy Three-dimensional
governance upgrade design information disclosure system
The ESG Committee regularly reviews Develop differentiated plans for Build a three-dimensional disclosure
key risk indicators and reports critical different risk levels including mechanism of "regular reports + special
climate-related risks to the Board of strategic climate risks operational communication + official website
Directors every year. climate risks innovative climate platform" to form a climate information
opportunities etc. and submit communication mechanism based on
them to the ESG Committee for annual ESG reports investor briefings
review. official website sustainability columns
etc.Climate Indicators and Targets
At Yinghe Technology we have actively responded to China's strategic goal of "carbon peaking and carbon neutrality" and formulated a
clear "3060" carbon emission target promising to achieve carbon peaking before 2030 and carbon neutrality before 2060.Climate change indicators ????????Figures for 2025
430.83 tCO2e 22841.12 tCO2e
Total direct (scope 1) GHG emissions Total indirect (scope 2) GHG emissions
23271.95 tCO2e 2.46 tCO2e per million CNY revenue
Total GHG emissions GHG emission intensity
36Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Climate change targets
Targets Applicable Period Progress during the reporting period
Respond to the national "dual carbon" strategic goals Long-term In progress
Complete a comprehensive inventory of Scope 1 and Scope
2 GHG emissions and consolidate the foundation for carbon Short- to mid-term In progress
emissions data
Explore and conduct product carbon footprint certification
work and plan and develop low-carbon products with lower Short- to mid-term In progress
environmental impact and higher resource efficiency
Note:
1. The total scope 1 GHG emissions come from the consumption of gasoline and diesel; the total scope 2 GHG emissions come from
purchased electricity.
2. GHG emissions are calculated based on the Guidelines for Accounting and Reporting of Greenhouse Gas Emissions for Enterprises in
Other Industrial Sectors (Trial) issued by the National Development and Reform Commission (NDRC). The electricity emission factor for
purchased electricity is derived from the Announcement on the 2023 Electricity Carbon Emission Factor published by the Ministry of
Ecology and Environment in December 2025.Environmental Compliance Management
Environmental Management System
We strictly comply with laws and regulations such as the Environmental Protection Law In 2025 our investment in environmental
of the People's Republic of China the Atmospheric Pollution Prevention and Control protection funds reached 1.558 million
Law of the People's Republic of China and the Law of the People's Republic of China on yuan accounting for 0.02% of our
Environmental Impact Appraisal. We have formulated rules such as the Environmental operating revenue.Pollution Control Procedure the Hazard Source Identification and Risk Assessment
Control Procedure the Environmental Factor Identification and Rating Management
Procedure and the Environmental Protection Management System and built a
three-in-one management mechanism of "organizational guarantees—institutional 1.558 million yuan
constraints—process control" to clarify the environmental management responsibilities investment in environmental
of each level. We have established an EHS management system under the overall protection
coordination and supervision of directors and an EHS department responsible for
environmental management matters such as environmental protection and emergency
response.%
We and our main subsidiaries have passed ISO 14001 environmental management 0.02
system certification. During the reporting period we had no environmental violations. proportion of operating revenue
37Huizhou Yinghe's ISO 14001 Yinghe Intelligent's ISO 14001 Sikary's ISO 14001 Environmental
Environmental Management System Environmental Management System Management System Certification
Certification Certification
We attach great importance to environmental protection responsibilities and actively join environmental protection-related
organizations in the industry. We passed RBA (Responsible Business Alliance) Silver Status Certification in 2024 demonstrating our
governance capabilities and practical results in environmental protection labor rights and interests protection business ethics and
other aspects.Environmental Emergency Management
In strict accordance with the requirements of
laws and regulations such as the Measures for
CASE
the Emergency Administration of Environmental
Contingencies and the Measures for the Filing
and Management of Environmental Emergency
Response Plans in Enterprises and Public Institutions Environmental safety emergency drill case
we have formulated the Emergency Plan for
Environmental Contingencies and the Special In April 2025 our subsidiary Sikary conducted an environmental
Emergency Plan for Environmental Contingencies safety emergency drill. By simulating sudden chemical leaks and
to clarify the procedures and measures required water pollution incidents it identified deficiencies in our emergency
to deal with various environmental accidents response capabilities poor employee operations and disordered
covering contingencies such as leaks fires and evacuation processes and formulated targeted improvement plans to
explosions. We regularly organize emergency continue to improve the emergency response mechanism.d r i l l s a n d m a ke r e v i s i o n s b a s e d o n a c t u a l
conditions to continuously ensure the pertinence
and effectiveness of these plans. Meanwhile
we have developed the Environmental Factor
Identification and Risk Assessment Questionnaire
and regularly implemented annual environmental
hazard investigation and management to evaluate
and prevent major environmental risks. During
the reporting period we had no environmental
emergencies.
38Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Environmental Monitoring Mechanism
We have formulated an annual automatic environmental monitoring plan covering aspects such as factory boundary noise fugitive
emissions at the plant boundary and domestic sewage. We entrusted professional third-party organizations to conduct regular
environmental monitoring to ensure that pollutants are discharged in compliance with regulations. We have put in place a three-
simultaneous management system for construction projects and conducted environmental impact assessments on possible
construction projects in accordance with the law to ensure minimized negative environmental impacts.Fostering a Culture of Environmental Protection
We are committed to integrating ecological and environmental protection philosophies into our corporate operations and cultural
building and translating these philosophies into mindsets and actions. We actively organize environmental protection training raise
environmental protection awareness through various forms and encourage all employees to create an eco-friendly future.Environmental protection training management indicators Figures for 2025
122516
Total number of participants in Total hours of environmental
environmental protection training protection training
Offline environmental protection promotion
through posters
Post environmental protection posters and slogans on
factory bulletin boards cultural walls staff canteens and
other scenarios to improve the environmental literacy of
front-line employees.Emergency plan training
Regularly conduct environmental emergency plan training
to improve employees' emergency response capabilities
and reduce the risk of losses caused by environmental
accidents. Training on environmental emergency plans
39Pollution Prevention and Control
We place a high premium on the prevention and control of environmental pollution. We have formulated the Environmental Pollution
Control Procedures to prevent water air noise and soil pollution and effectively protect the environment of the Company and its
surrounding.Waste Gas Management
We strictly abide by Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution and other laws and
regulations and implement a regular monitoring and reporting mechanism for waste gas emissions to ensure that waste gas emissions
comply with national and local standards. The Company regularly entrusts qualified third-party companies to carry out testing on waste
gasincluding workshop grinding dust organic solvent volatilization from surface wiping canteen oil fume emission outlets etc.Waste gas management measures
Atmospheric pollution control Gas emission testing
◇ The waste gas generated shall be collected and ◇ Entrust qualified third-party organizations
processed according to the environmental impact to conduct regular testing of gases at our
assessment document and then discharged after emission outlets and obtain test reports;
meeting the standards;
◇ The testing is conducted once a year. If
◇ Strictly standardize operating procedures and there are changes abnormalities etc. the
maintenance systems for equipment and facilities frequency of testing will be increased.that may become sources of pollution;
◇ Sealing measures or other protective measures
must be taken when transporting loading
unloading and storing substances that can emit
toxic and harmful gases or dust.Wastewater Management
We strictly abide by the Water Pollution Prevention and Control Law of the People's Republic of China and other relevant regulatory
requirements. We adhere to the core policy of "pollution reduction from the source process control recycling and standardized
discharge" build a full-process wastewater management system systematically reduce the discharge of wastewater pollutants and
promote the sustainable use of water resources. We and our major subsidiaries generate no industrial wastewater pollution during the
production process; and our domestic wastewater discharge meets national and local discharge standards.
40Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Wastewater management measures
Water pollution control Water quality testing
◇ The oily wastewater and waste notching fluid we ◇ Hire a third-party testing agency to
generate are collected in special containers by each conduct wastewater sampling and
production workshop regularly sent to hazardous testing every year and issue a report;
waste warehouses for storage and handed over to
◇ The testing is conducted once a year.qualified third parties for disposal;
If there are changes abnormalities
◇ The underground drainage system diverts rainwater etc. the frequency of testing will be
and sewage and the domestic sewage discharge increased.port is connected to the septic tank; the canteen
is equipped with a three-level grease trap and
filter. Direct discharge of oily wastewater and the
use of phosphorus-containing cleaning agents are
prohibited.Wastewater discharge indicators Figures for 2025
316529 tons 33.5 tons per million yuan of revenue
Total wastewater discharge (domestic wastewater) Wastewater discharge intensity
Waste Management Waste management indicators Figures for 2025
We strictly implement national waste regulations and 103.35 tons
requirements adhere to the core principles of "reduction
resource utilization and harmlessness" and strengthen the Total amount of hazardous waste generated
standardized management of waste throughout the entire
process. We have established a complete waste management
system and formulated rules such as the Hazardous Materials
Management Plan and the Hazardous Waste Management 0.01 tons per million yuan of revenue
Ledger to define operating standards and designated Hazardous waste emission intensity
responsible personnel for hazardous waste across stages
of generation collection storage and transfer ensuring
that sources are traceable and destinations are verifiable.We cooperate with qualified professional hazardous waste 9570 pieces
treatment agencies and sign compliance disposal agreements
to ensure 100% compliance disposal rate of hazardous waste. Amount of discarded cardboard recycled
41Waste management measures
Zone-based management Reduction from the source
◇ The production department is responsible for the ◇ F o c u s i n g o n p r o d u c t d e s i g n a n d
classified collection temporary storage and transfer process improvement we reduce waste
of general industrial waste (such as waste packaging generation from the source. The concept
materials scraps etc.) generated in the production of "green design" is introduced in the
process; product design stage to optimize raw
material selection and product structure
◇ The administrative department is responsible for
and reduce the generation of scraps and
the classification and removal of domestic waste
waste during the production process.generated in office areas and public areas and ensures
standardized and orderly disposal of general waste
through clear division of labor.Waste sorting and recycling Recycling and reuse
◇ Improve the layout of recycling facilities and build ◇ Build an internal circulation model to turn
a standardized classification system. Set up four more waste into resources. Establish an
recycling warehouses for recyclables hazardous waste internal recycling system for industrial solid
general industrial waste and domestic waste and waste to classify and recover recyclable
assign dedicated personnel to manage them to ensure materials such as scrap metal and waste
standardized and regular classification and disposal. wood generated during the production
process and then convert them into
production auxiliary materials for reuse.Capability enhancement
◇ Incorporate waste emission reduction knowledge and
skills training into the annual training plan integrate it
into the green ecological and environmental protection
training system and promote the transformation of
emission reduction concepts into conscious actions.Huizhou "Waste-free Factory" in 2025
42Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Noise Management
We strictly abide by laws and regulations such as the Emission Standards for Industrial Enterprise Noise at Boundary scientifically
divide the acoustic environment into functional zones based on environmental impact assessment documents and implement
classified management and control of noise sources such as production and auxiliary equipment factory vehicles etc. to ensure that
factory boundary noise emissions in day and night meet standards. We regularly entrust qualified third-party organizations to conduct
noise testing and issue reports to ensure the quality of the acoustic environment of surrounding communities and fulfill our social
responsibility for green manufacturing.Noise management measures
Noise pollution control Noise monitoring
◇ Improve processes and equipment such as replacing high- ◇ Entrust a qual i f ied third-party
noise equipment with low-noise equipment to reduce noise company to conduct regular testing
pollution; of the Company's factory boundary
noise and obtain test reports;
◇ Cluster noise-producing workstations in designated areas.In the noise-producing area implement measures such as ◇ The inspection cycle is once a year.isolation to prevent pollution spread sound absorption If there are changes abnormalities
and sound insulation and equip personnel with protective etc. (such as the addition of new
earplugs and ear defenders to reduce the impact of noise equipment that generates noise)
pollution; the inspection frequency will be
increased.◇ Strictly plan operating procedures and maintenance
systems for equipment facilities projects etc. that may
become sources of noise pollution.Resource Utilization
Energy Utilization
We strictly abide by laws and regulations such as the Energy Conservation Law of the People's Republic of China. We have established
and improved management systems such as the Energy and Resource Consumption Control Procedures and the Energy Management
System and set up an energy management team composed of the president and the General Manager's Office of our subsidiaries
to coordinate energy measurement monitoring and assessment work. Through precise measurement the entire process of energy
consumption can be quantified and controlled supported by an energy-saving reward and punishment mechanism to effectively
improve energy utilization and lay a solid foundation for green and low-carbon operations.
43Energy utilization indicators Figures for 2025
22.91 tons 114.82 tons 21.8 %
Gasoline consumption Diesel consumption Renewable energy share
43047.72 MWh 9725.04 MWh
Purchased electricity consumption Renewable energy consumption
5491.58 tons of standard coal equivalent (tce) 0.58 tce per million yuan of revenue
Total energy consumption Total energy consumption intensity
Note:
1. The statistical scope of renewable energy consumption is photovoltaic power generation.
2. Purchased electricity consumption does not include photovoltaic power generation.
3. Comprehensive energy consumption is calculated according to the conversion factor of the General Rules for Calculation of the Total
Energy Consumption (GB/T2589-2020) a national standard of the People's Republic of China.
4. According to the Notice on Further Improving the Exclusion of New Renewable Energy Consumption from Total Energy Consumption
Control issued by the National Development and Reform Commission in 2022 renewable energy (such as wind power solar power
generation etc.) is no longer included in total energy consumption.
5.The significant increase in purchased electricity consumption compared to 2024 is primarily due to a rise in sales orders. To ensure
delivery capacity the company has increased its production investment resulting in an overall upward trend in total electricity
consumption.Energy management measures
Energy consumption Implement energy Establish a reward measurement and punishment Promote energy-saving quota management responsibilities mechanism transformation
Based on the actual We have established an We have established We focus on the core
production and operation energy measurement an energy-saving direction of energy-
we scientifically formulate management responsibility incentive and restraint saving technological
energy consumption system and assigned mechanism assigning transformation deeply
quotas and implement full-time personnel to energy-consumption integrate process
hierarchical and refined be responsible for the management and control technology needs
management and control. operation maintenance responsibilities to each systematically promote the
With the goal of "being fast and data collection of energy-consuming unit upgrading and iteration
accurate complete and measurement equipment supporting precise of energy-saving devices
good" we comprehensively to ensure accuracy and reward and punishment and continue to improve
strengthen the management reliability and provide data measures and energy utilization efficiency.of key areas such as support for the scientific establishing an annual In 2025 we invested in 16
water electricity gas and formulation of energy- evaluation mechanism energy storage equipment
equipment consumption saving strategies. for advanced energy- units (with an installed
and continuously improve saving individuals capacity of 3533.4kWh)
energy utilization efficiency. and demonstration saving an annual cost of 1.35
entities to fully mobilize million yuan.the enthusiasm of all
employees for energy
conservation and
consumption reduction.
44Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Energy-saving renovation of air conditioning system
In 2025 we installed a programmable timing controller in the existing air
conditioning system to strictly set daily shutdown periods to reduce energy
waste and extend the service life of the equipment.Results: The initiative saved approximately 38000 yuan in annual electricity
costs reduced electricity consumption by 36 MWh and cut about 28.8 tons
of CO2 equivalent emissions per year.Clean energy adoption
We have continuously promoted distributed rooftop photovoltaic projects in Huinan and Dongjiang Industrial Parks. In 2025
we achieved photovoltaic power generation of 9725.04 MWh and a GHG emission reduction equivalent of more than 5160.11
tons fully demonstrating the comprehensive environmental economic and social value of green development.
9725.04 MWh 5160.11 tons
photovoltaic power generation reduction of GHG emission
Energy management targets
Targets Progress in 2025
Continue to increase the renewable energy share The renewable energy share reached 21.8% in 2025
an increase of 0.7% from last year.Build a comprehensive energy management system In progress
to continuously collect our energy consumption data to provide
data support for subsequent energy use optimization
45Water Resources Utilization
We strictly abide by laws and regulations such as the Water Law of the People's Republic of China actively promote water-saving
technologies and measures implement refined management of monthly water consumption data continue to improve water resource
utilization and systematically promote water conservation and intensive utilization.During the reporting period we had no direct or indirect significant impact on water resources caused by changes in our water intake
consumption drainage or water storage.Our subsidiary Sikary has established and improved the Water and Electricity Conservation Control and Management Regulations
systematically implemented water-saving measures effectively reduced resource waste and comprehensively improved resource
utilization.Water resource utilization indicators Figures for 2025
160678.3 tons 17.0 tons per million yuan of revenue
Annual water consumption Water consumption intensity
Establish a water-saving incentive
mechanism for all employees
e n c o u r a g e t h e m t o p r o p o s e Water
improvements and reward them saving
based on actual results and fully reward
stimulate water-saving initiative.Through monthly water consumption
stat ist ics f inancial analysis and
Promote the implementation of m a n a g e m e n t r e v i e w a b n o r m a l
measures such as recycling of situations will be rectif ied under
production refrigeration water Recycling Water t h e s u p e r v i s i o n o f m a n a ge m e n t
and monthly water changes and tracking representatives forming a closed loop
for central air conditioners to reuse
achieve intensive and efficient of water conservation management
use of water resources. and continuously improving water
resource utilization Efficiency.Circular Economy
We strictly comply with the requirements of the Circular Economy Promotion Law of the People's Republic of China and the 14th Five-
Year Plan for Circular Economy Development. We implement classified management and resource utilization of operational waste and
reduce environmental load; strengthen the management and control of the entire material chain leverage technological innovation and
process optimization to improve material utilization and achieve intensive and efficient allocation of resources.
46Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Green Operations
Green Office
We actively promote the green office initiative improve the energy saving and consumption reduction management system set up
dedicated personnel and posts to be responsible for daily inspections of water and electricity usage advocate all employees to save
water electricity and paper integrate the low-carbon concept into daily operations and foster the green office culture.Green office indicators Figures for 2025
57920 tons 48790.36 MWh 8422500 pieces
Office water consumption Electricity consumption in the office Office paper consumption
Green office measures
Paperless working Air conditioning temperature control
◇ Leverage the OA system to integrate the approval ◇ Post uniform and eye-catching energy-saving
process (such as leave reimbursement release signs on all air-conditioning panels or switches.and contract approval) official document
◇ After work or when no one is in the conference
circulation task collaboration announcement
room the air conditioner is turned off manually.release and other functions to reduce paper
consumption. ◇ Clean the air conditioning filter regularly to
ensure operational efficiency.◇ Except for legal requirements or special
purposes in principle all electronic approval ◇ Clean the air conditioning filter regularly to
and archiving will be adopted. ensure operational efficiency.◇ Set up public printers and scanners to convert
paper documents into digital copies if necessary.
47Garbage classification
◇ Office area: Set up clearly classified trash cans (recyclables other /dry garbage hazardous waste) and post classification
signs next to the recyclable trash cans.◇ Production area: Cooperate with professional recycling companies to set up special recycling stations (such as paper
plastic film waste materials waste liquid etc.) and clearly mark them based on the characteristics of production waste.◇ Publicity and implementation: Post classification guidelines organize employee training and designate "environmental
protection supervisors" from the administrative department to take turns on duty to ensure implementation.Green commuting Green working scenarios
◇ Introduce shuttle buses in the park to address ◇ Place green plants in public areas (front desk
commuting difficulties for employees and reduce corridors rest areas) conference rooms and open
the use of private cars and carbon emissions. office areas to beautify the office environment purify
the air and relieve employees' visual fatigue and
◇ Investigate the main living areas and commuting
psychological stress. In 2025 the greenery area of our
times of employees design a route covering the
factory area reached 47448 square meters.transportation hubs of each park and improve bus
operation efficiency.Cleaner Production
We continuously deepen our cleaner production practices leveraging technological innovation energy-saving technology and
production process optimization to systematically improve operational efficiency while reducing our environmental footprints and
achieving the organic unity of cost reduction efficiency improvement and green development. We actively seize opportunities in clean
technology and deploy distributed photovoltaic rooftop projects to effectively replace traditional energy consumption and promote the
green transition of the energy structure.Ecology and Biodiversity Protection
We have a profound understanding of the potential impact of production and operations on ecosystems and biodiversity strictly
implement the environmental impact assessment of construction projects and the "triple simultaneities" system conduct targeted
special assessments of biodiversity in operating areas systematically avoid disturbance and damage to biological habitats caused by
human activities and contribute to regional biodiversity protection and ecological environment construction.
48Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Social
Employee Rights and Interests ??50 Ethics of Science and Technology 92
Occupational Health and Safety ??66 Supply-chain Cooperation 92
Products and Services ??72 Rural Revitalization 99
Information Security ??83 Social Contributions 99
Innovation-Driven Development??86
49Employee Rights and Interests
We take "putting people first" as our core talent philosophy adhere to the employment philosophy of "Appoint by Merit Orient by
Contribution" and strive to build a talent selection and employment mechanism and an achievement sharing system driven by value
creation. Through systematic and science-based human resources management we continuously optimize our employee welfare
mechanism to achieve both employee growth and corporate development.Governance
We strictly abide by national laws and regulations such as the Labor Law of the People's Republic of China and the Labor Contract
Law of the People's Republic of China. We also fully comply with the mandatory regulations on labor rights and interests in overseas
operating locations. We have established a complete human resources management system that fully covers key aspects of the entire
process such as employee recruitment onboarding management compensation and performance appraisal employee training and
development. System regulation and guidance can provide a solid organizational and talent guarantee for our sustainability.We are committed to building a science-based standardized and efficient human resources management system and supporting
the realization of our corporate strategic goals and sustainability with a systematic and professional talent management mechanism.As the main functional department of our human resources management the Human Resources Management Center consists of the
Organization Development Department Shared Services Department Recruitment and Delivery Department and HRBP Department
which respectively perform a series of tasks related to employee development such as identification of talent needs and manpower
planning performance and talent evaluation incentive policies and talent training.Organization Shared Services Recruitment and HRBP Department
Development Department Delivery Department
Department
identification of talent needs performance and talent incentive policies talent training
and manpower planning evaluation
50Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Strategy
We fully understand the important position of human resources management in our strategy. By continuously optimizing the
organizational structure improving the incentive system and building diversified career development channels we comprehensively
improve organizational capabilities and talent density and build a solid talent cornerstone for our stable operations and strategic
implementation.Financial
Risk/Oppo- Risk/Oppor- impact Magnitude Impact
Response measures
rtunity type tunity description on the of impact horizon
Company
Failure to strictly Increase Medium Short- ◇ E sta b l i s h a n d i m p rove i n te r n a l l a b o r a n d
abide by the in non- term employment compliance systems and standardized
Labor Law Labor operating processes to ensure that recruitment contracts
Contract Law expenses compensation working hours dismissal and other
and other laws aspects strictly comply with relevant laws and
and regulations regulations
in employment ◇ Regularly organize specialized legal training for HR
management personnel to investigate human resources risks and
Legal risks may lead to labor achieve prevention beforehand and monitoring
dispute litigation during the event.administrative ◇ Establish an internal mediation mechanism
fines and for labor disputes to ensure early resolution of
even criminal disputes
prosecution and
will damage the
employer's brand
image.Intensified Increase in High Mid- to ◇ Provide industry-competitive compensation mid-
competition operating long- to long-term equity incentives or employee stock
in the industry costs term ownership plans to deeply bind the interests of
leads to the loss Decrease in core talents with the Company's development
of core technical operating ◇ Create an organizational culture that respects
personnel which revenue technology and encourages innovation gives
Technology may affect product the technical team sufficient authorization and
risks development resource support and establishes clear career
and technology development and promotion paths
upgrades. ◇ Improve knowledge management and technology
inheritance mechanisms and reduce over-reliance
on individual personnel through project-based
systems mentorship systems and document
standardization
Under the Increase Medium Short- ◇ E sta b l i s h a fa i r t ra n s pa re n t a n d m a r ket-
labor-intensive in non- term competitive compensation and benefit system that
production model operating combines performance rewards with compliant
employees' expenses overtime subsidies and regularly reviews and
dissatisfaction adjusts them to respond to employee demands
Opera- with compensation
◇ Continue to optimize the production environment
tional and working increase investment in safety and upgrade
risks environment can facilities ensure compliance with health standards easily lead to labor and further refine on-site management
conflicts ◇ Improve the normalized two-way communication
mechanism and promptly identify and address
e m p l oye e d i s s at i s fa ct i o n t h ro u g h reg u l a r
discussions anonymous feedback channels and
the management's frontline experience activities
51The carbon Decrease in Medium Mid- to ◇ Systematically build an internal training system
neutrality operating long- and cooperate with universities or professional
policy promotes costs term institutions to provide existing technical and
enterprises to production employees with skill certification
transit to green and transition training in carbon neutrality
manufacturing knowledge energy-saving technology and carbon
Market which requires a management to help them upgrade their careers
oppor- large number of ◇ Establish a technology incubation and knowledge
tunities professionals who sharing platform encourage internal innovation
master low-carbon and practice and incorporate green skills and
technologies to achievements into the promotion evaluation
provide employees system
with opportunities
for career
upgrades.By building Decrease in Medium Long- ◇ Clearly incorporate diversity fairness and inclusion
a diverse operating term into our core values and formulate supporting
and inclusive costs codes of conduct and anti-discrimination policies
organizational to lay the foundation at the institutional level
culture we can ◇ Proactively el iminate bias in recruitment
consolidate the promotion and leadership development to ensure
Operational foundation of team fair opportunities and establish a diverse employee
oppor- cohesion enhance resource group and an open communication
tunities employees' sense platform to enhance understanding and sense of of belonging belonging
and happiness ◇ Substantively improve employee happiness
stimulate talents' through customized welfare programs mental
innovative vitality health support and flexible work arrangements
and empower
our sustainable
development.Impact Risk and Opportunity Management
Employee Risk Assessment
We place a high value on employee risk management systematically incorporate employee-related risks and opportunities into the risk
identification list and formulate science-based and systematic response strategies. Through regular employee risk and opportunity
analysis assessment and measure review we promptly identify and resolve potential management risks and improve risk prevention
and control capabilities thereby ensuring the stability of the employee team and maintaining the efficiency and sustainability of
organizational operations.Employment and Equality
▍ Standardize Employment
We have formulated internal rules such as the Recruitment Management System the Qualification Management Regulations the
Attendance and Holiday Management Regulations and the Temporary Employment Management Regulations to embed employment
compliance and equal employment commitments into the entire process of daily management.
52Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
We thoroughly implement the five principles of "value matching principle" "preparation and budget control principle" "internal
recruitment priority principle" "openness and impartiality principle" and "avoidance principle". We keep recruitment channels clear
and efficient introduce the recruitment management process and conduct full-cycle recruitment process management on job postings
interview records candidate materials and other recruitment stages through the human resources management system to ensure that
the recruitment process is open fair and transparent.To continuously optimize the talent structure we adopt a combination of internal recruitment and external recruitment and online and
offline channels in terms of talent introduction. We are open to attracting external talent with diverse backgrounds and expertise while
also encouraging internal employees to pursue career development and internal mobility through a competitive recruitment process.In the Recruitment Management Regulations we clearly prohibit the recruitment of minors under the age of 16 to prevent the illegal use
of child labor. We conduct background checks on potential recruits to verify their work experience whether there are labor disputes and
other information. If there are major discrepancies in the applicant's personal data or major violations the applicant will not be hired.We sign labor contracts with regular employees in accordance with the law to clarify labor relations pay social insurance and housing
provident funds for employees in accordance with the law and safeguard employees' labor and economic rights and interests.We make clear employees' working hours and overtime policies through the Attendance and Holiday Management Regulations and the
Labor Contract to ensure that employees' working hours comply with national laws and regulations. Overtime must be negotiated and
implemented as planned. We firmly oppose any form of forced labor harassment bullying and intimidation and leverage employee
communication mechanisms and feedback channels to ensure that employees can report issues in a timely manner and have them
properly handled.Key performance in 2025
During the reporting period we participated in
a total of 98 campus job fairs and successfully 98 145
introduced 145 fresh graduates. campus job fairs fresh graduates introduced
During the reporting period the labor contract
signing rate for employees was 100%; there
were no incidents of child labor or forced 100 %
labor. labor contract signing rate
▍ Flexible Employment
We create flexible jobs based on the needs of different positions including but not limited to social workers student workers
mechanics technicians designated equipment operator etc. providing employees with flexible working hours and methods to meet
the employment needs of different workers.We have formulated the Temporary Labor Employment Management Regulations to clarify the recruitment and employment of labor
dispatch employees agreement signing attendance and vacation management compensation accounting and other standards.According to the nature of employment we sign agreement with equal rights and responsibilities to clarify the work content
compensation standards payment cycle intellectual property ownership termination terms etc. to avoid ambiguity. We treat flexible
employees the same as regular employees by providing standardized pre-job training and a channel for outstanding performers to be
converted into long-term internal employees. Flexible employees can communicate and feedback on problems at work through email
mailboxes phone and Lark's employee feedback platforms.
53Key performance in 2025:
During the reporting period we recruited
a total of 2364 labor dispatch employees 2364 19.6 %
accounting for 19.6%. labor dispatch employees proportion of total employees
Social insurance coverage for temporary
employees was 100%. 100 %
Social insurance coverage for temporary employee
▍ Diversity and Equal Opportunities
We always adhere to the employment principles of fairness justice Key performance in 2025:
openness and merit. Based on a comprehensive assessment of employees'
professional abilities and comprehensive qualities we strictly implement
the relevant requirements of the Recruitment Management Regulations and
During the
clearly prohibit treating any candidate differently based on factors such as
reporting period
nationality race gender religious belief and cultural background. We are
we did not have any
committed to implementing equal pay for equal work. This principle ensures
complaints related
that employees of different genders and ages receive equal basic salary and
to discrimination or
compensation when their position value required professional knowledge
harassment.skills and abilities are comparable. Additionally we provide employees with
equal career development opportunities support employees to improve their
skills and professionalism through diversified training and development plans
and promotes the diversified development of employees.Indicators 2025 Unit Indicators 2025 Unit
Total number of active employees 12033 / By position:
Among them: number of female managers 105 / Number of production personnel 8366 /
Proportion of female managers in 17.41 % Number of salespeople 325 /
management
Number of technical personnel 2546 /
Proportion of ethnic group employees 10.53 %
Number of financial personnel 91 /
By gender:
Number of administrative personnel 705 /
Number of male employees 9979 /
By academic qualification:
Number of female employees 2054 /
Doctorate degree holders 5 /
By age:
Master's degree holders 231 /
Number of employees aged 30 and under 6353 /
Number of employees aged 31 to 40 4473 / Bachelor's degree holders 2439 /
Number of employees over 41 years old 1207 / College diploma and below 9358 /
54Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Compensation and Benefits
We have always implemented the concept of "One Company". Based on the philosophy of"Appoint by Merit Orient by Contribution"
we have formulated rules such as the Compensation Management System and the Performance Management System to clarify the
responsibilities of all departments and positions implement and refine hierarchical approval authority improve the compensation
management system systematically plan the compensation structure and standardize the entire process of compensation setting
adjustment accounting and payment. We are committed to closely tying employee compensation performance to job value and
corporate performance and building a compensation system that is both internally fair and externally competitive thereby effectively
motivating employees' enthusiasm and innovation potential at work improving employee satisfaction and engagement and enhancing
our attractiveness in the talent market.▍ Compensation Management System
Our compensation system is built based on four core concepts to ensure that it is systematic fair and motivating.Market-oriented Job value-based
Through normalized and multi-dimensional Use scientific job value assessment tools to
compensation surveys we accurately anchor systematically evaluate the responsibility and
industry compensation levels and percentiles contribution value of each position and establish
to ensure the external competitiveness of our a clear and stable position sequence and rank.compensation and effectively attract and retain Through "position-based grading" value parity is
outstanding talents. achieved with equal pay for equal work.Capability-oriented Performance-driven
Through systematic assessment and positioning We attach great importance to the strong
of individual capabilities compensation levels are correlation between employees' performance
determined within the compensation range of each contributions and compensation provide
job grade. By dynamically adjusting the alignment more flexible compensation and incentive
between employees and positions capability serves returns to employees delivering sustained
as the core yardstick for compensation decisions high performance and create a differentiated
stimulating employees' intrinsic motivation for compensation incentive mechanism.continuous improvement.In implementing the compensation system we always base on both job value evaluation and personal ability assessment. We adhere to
the distribution principle of "position-based grading grade-based compensation matching employees to positions and compensation
adjustment upon position change" to ensure that job value personal capabilities and performance contributions are positively
correlated with final rewards.
55▍ Performance Management System
Our performance management system is designed to ensure that individual and departmental goals are consistent with the Company's
strategy and also drives continuous improvement guided by four principles.Strategic alignment Goal-oriented commitment
We adhere to aligning performance management By setting the performance goal of the two-
with our strategic goals and transform our overall way commitment mechanism we promote the
strategy into an executable and measurable management and employees to reach consensus
indicator system and special actions through a on the goal and fully stimulate employees'
systematic strategic decoding process. inherent sense of responsibility and initiative.Performance improvement Business-oriented
Through regular performance coaching feedback We focus on the business value chain to promote
and review (such as weekly or monthly meetings closed-loop performance management and
one-on-one communication business analysis ensure that effective management drives the
meetings etc.) we promptly identify execution business based on actual business scenarios and
deviations analyze root causes and formulate management's performance of duties.and implement performance improvement plans.By implementing objective performance appraisals the performance management system fairly evaluates employees' contributions
and provides a basis for human resource decisions such as compensation distribution and talent training thereby effectively leading
employees at all levels to create value more efficiently.Regarding performance feedback and appeals on the compensation payment day we issue compensation slips to employees through
the human resources information system and employees must take the initiative to complete the confirmation; in addition a smooth
employee performance feedback and appeal channel is established to actively listen to the opinions of employees who are dissatisfied
with or unaware of the performance appraisal results and provide timely processing and feedback.▍ Mid- and Long-term Incentives
We actively explore and promote the implementation of equity incentives and employee stock ownership plans aiming to build a long-
term development mechanism for employees and the Company to share benefits and risks. By deeply binding the development of core
talents with our long-term strategy we not only effectively stimulate the endogenous motivation of the organization but also lay a solid
institutional foundation for our sustainable and steady development. We plan to follow the following three core assessment principles
when implementing the equity incentive plan:
56Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Goal- and value-oriented Accountability Rewarding strivers
Employee incentives are tied Clarify the job responsibilities A d h e r e t o t h e d i s t r i b u t i o n
to value creation. We place a and contribution requirements p h i l o s o p h y o f " i n c r e m e n ta l
high value on flexible incentive of incentive recipients and incentives contribution rewards"
m e c h a n i s m s i n c l u d i n g i m p l e m e n t s t r i c t d y n a m i c and focus on motivating core
project-based incentives to performance appraisals. For strivers who create outstanding
reflect forward-looking and incentive recipients who have value for the Company. Actual
challenging attributes and failed to complete assessment benefits are closely linked to the
e n s u re t h at t h e i n ce n t i ve targets have major violations Company's performance growth
s y s t e m i s s c i e n t i f i c a n d o r h a v e o p e r a t i o n a l a n d and personal contributions tilting
reasonable. management responsibilities towards high performance and
we will implement strengthened high contributions and creating an
accountability mechanism in atmosphere of "emphasis on hard
accordance with regulations work and performance".reinforcing the disciplinary role
of negative incentives.CASE
We implemented the Restricted Stock Incentive Plan in 2017 and 2022 respectively. The first assessment period of the 2022
restricted stock incentive plan has been completed and achieved remarkable results: For the Company our performance
assessment fully met the standards. During the assessment period the preset targets were significantly exceeded in terms of
financial and innovation indicator targets; For employees among the first batch of unlocked incentive recipients 99.3% met
the personal performance assessment standards achieving the purpose of equity incentives and ensuring that our strategy is
tied to employees' key values and employees achieve our strategic goals while realizing their key values.▍ Additional Benefits
To support the realization of our strategic goals and sustainable development we regard the welfare system as an important component
of our talent strategy. We have formulated and followed the Corporate Welfare Management System and are committed to providing a
more competitive and attractive comprehensive welfare program higher than the standards required by law: "With statutory benefits
such as social insurance and housing provident fund as the cornerstone supplementary benefits such as supplementary housing
provident fund corporate annuity and other long-term incentives as the pillar and personalized care such as holiday or anniversary
benefits and flexible welfare plans as our features" we aim to achieve all-round employee coverage "from basic security to long-
term development and from work support to daily life care" ultimately stimulating employee potential and enhancing organizational
effectiveness.
57Statutory benefits Supplementary Holiday benefits Regular physical
benefits examination
Social insurance and Supplementary Statutory holidays paid annual Regular health
housing provident housing provident leave parental leave only child check-ups every
fund. fund enterprise care leave incentive leave year.During the reporting annuity and overseas family leave etc. allow In 2025 our
period our employee supplementary employees to get sufficient rest physical
social insurance commercial insurance. after busy work. examination
coverage reached coverage rate was
100%.100%.
Employee subsidies Living security
In addition to strictly complying with relevant Provide employees with free canteens staff dormitories
regulations and paying overtime wages we also provide and mother and baby rooms equipped with refrigerators
additional benefits such as application subsidies for hot water sofas etc.special positions and special skills.In 2025 we completed the subsidy application for 158 Team building and social activities
employees who met the requirements and applied for
a total amount of 63700 yuan for these employees. Regularly organize team building activities outdoor
expansion dinner parties annual meetings etc. to
enhance communication and collaboration among
employees and enhance team cohesion.Other benefits
On traditional festivals or specific festivals provide holiday gifts to employees: such as Dragon Boat Festival and Mid-
Autumn Festival gifts cooling drinks in high temperature March 8th Festival activities birthday parties etc.CASE
Case 1: Renovation of old employee dormitories
To continue to optimize employee accommodation conditions and improve the living environment we launched a special
survey for employees in the Dongjiang Phase II dormitory at the Huizhou headquarters in August 2025 extensively collected
feedback on employees' living experience and attached great importance to employees' opinions and suggestions. In
response to the problems identified in the survey we implemented the maintenance and renovation of relevant facilities
optimized management systems and installed convenient living facilities. We are committed to creating a more comfortable
and convenient accommodation environment for employees.
58Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
CASE
Case 2: Relocation to new dormitory
To optimize the working and living environment for
our engineers and better invest in scientific research
and innovation the Yinghe Technology "T+" talent
apartment was off icial ly opened in September
2025. Management and colleagues at all levels sent
"housewarming gift packages" full of blessings to the
colleagues staying there to experience the various
conveniences of the new home.Case 3: Dragon Boat Festival garden visit activities
In June 2025 Yinghe Technology's "Enjoy a
Summer with Rice Dumplings" Dragon Boat
Festival Garden Visit was held in Dongjiang
and Huinan Parks respectively. A variety
of booths were set up on site for game
interaction food experience and check-
in souvenirs attracting more than 800
employees to participate enthusiastically.Everyone felt the festive vibe and got relaxed further shortening the distance between each other and bringing warmth and
fun during busy work.Case 4: Mid-Autumn Festival garden visit activities
To help our 2025 graduate employees
integrate into the Yinghe family in
September 2025 we held a Mid-
Autumn Festival themed garden party
of "Yinghe New Hires United under the
Moon" at the Dongjiang Phase I Cafe.The event included mooncake making drink DIY lantern appreciation lantern riddles making Mid-Autumn sachet making
film watching etc. The atmosphere was relaxed and warm allowing our new graduates—fresh from campus—to feel the
comforting warmth of "home" far away from their hometowns.
59Democracy and Communication
▍ Democratic Management
To protect employees' rights of democracy we have established a normalized and diversified employee communication and
participation mechanism. We mainly leverage the democratic management system with the Employee Representative Conference
as the basis and the trade union organization as the important carrier. We comprehensively guarantee our employees' rights to
exercise democratic decision-making participation and supervision in accordance with the law and realize a development pattern
of joint development sharing and co-governance between the Company and employees. In 2025 we successfully held the third
Employee Representative Conference to review the changes in the number of employee representatives and the election of employee
representative directors.▍ Communication and Appeal
Employee communication channels:
To establish and improve a diversified employee communication
mechanism and protect the legitimate rights and interests of
our employees we have systematically set up an "employee Tel:
relations" specialist as the primary contact for complaint 0752-7388333 ext. 8041
acceptance and application channel manager and smoothed Email:
a variety of two-way communication channels including yhkjhr@yhwins.com
dedicated telephone hotlines e-mails employee mailboxes the
employee feedback platform on Lark and integrated online/ Employee suggestion box:
offline complaint and suggestion platforms and activities such Suggestion box next to the front desk and back
as employee consultation days. All of our subsidiaries regularly door of Dongjiang Park Phase I
organize employee symposiums and can arrange one-on- Online platform:
one communication based on actual conditions to promptly Lark → Workbench → Employee Home →
understand and effectively solve various problems faced Complaints and Suggestions
by employees in work and life ensuring the timeliness and
effectiveness of communication.CASE
Case: Offline employee consultation day activities
We regularly set up employee consultation service stations in the canteens of Dongjiang
and Huinan parks. Personnel from the Human Resources Center are on-site to provide
"one-on-one" answers to common questions that employees care about such as
attendance management compensation and benefits and personnel procedures. The
activity can bring functional services closer to employees in a relaxed and convenient
way help all employees understand the Company's systems and policies more clearly
and convey the human resource philosophy of "active service provision and attentive
communication".
60Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
▍ Employee Satisfaction Survey
We extensively solicit employee feedback through various forms such as employee roundtables one-on-one interviews and annual
comprehensive satisfaction surveys and gain in-depth insights into employees' views on workplace environment career development
opportunities compensation and benefits and corporate culture initiatives. The survey results show that the overall employee
satisfaction is at a high level especially in terms of workplace environment optimization career growth paths and the organization of
corporate culture initiatives which received strong recognition from employees.In 2025 to further optimize employee accommodation conditions and improve satisfaction in life we launched a dedicated employee
survey and collected extensive feedback on their accommodation experience. Our employees generally expressed satisfaction with the
overall environment sanitation and fire safety facilities of the dormitories.In the future we will further integrate our democratic management mechanisms with digital transformation explore innovative forms
such as online democratic appraisal activities and real-time interactive platforms continue to increase the scope and depth of employee
participation consolidate the foundation of people-centered corporate governance and achieve shared growth for both employees and
the Company.Care and Support
▍ Work-Life Balance
We have always regarded employees' physical and mental health and work-life balance as an important cornerstone of the
organization's sustainable development. With an organizational atmosphere with "healthy life and happy work" as the core we strongly
support our employees to spontaneously form employee clubs based on shared interests such as the Yinghe Trade Union Dance and
Yoga Association. During the reporting period we actively promoted the balance between work and life by carrying out diversified
cultural and sports activities tailored to employees' needs and continued to enhance employees' sense of happiness belonging and
team cohesion.CASE
Case 1: Eye care activity
In 2025 we invited ophthalmologists
from Eye Hospital to bring professional
instruments to the Dongjiang and
Huinan parks to provide employees
with basic examination ser vices
such as vision testing computer
optometry and intraocular pressure
measurement and offer on-site
consultations and guidance on eye health concerns. This enabled employees to access convenient ophthalmic diagnosis and
treatment services right at the workplace conveying our care and attention to employees' physical and mental health.
61CASE
Case 2: Various cultural and sports activities
We have established several cultural and sports associations such as those for badminton basketball and yoga to carry out
activities on a regular basis. Taking the Badminton Association as an example it organizes playing activities every Thursday
night to provide employees with a platform for exercise relaxation communication and interaction and to create a healthy
and progressive corporate culture atmosphere.▍ Employee Mental Health Training
We continue to place a high value on the mental health of employees and incorporate psychological care into the employee support
system as an important part. To proactively understand and promptly relieve employees' psychological pressure we organize themed
employee roundtables from time to time and conduct mental health courses committed to listening to employees' voices answering
questions and conveying care.▍ Support for Employees with Special Needs
At Yinghe Technology we have always adhered to the people-oriented philosophy integrated employee care into our corporate
culture and built an effective internal support system. To convey our care to employees who encounter special difficulties and gather
the strength of team through mutual aid we initiated the establishment of an employee mutual aid fund committee to provide timely
financial assistance and spiritual support to employees in financial difficulties due to major illness sudden accidents etc. to help them
overcome difficulties and regain confidence.For female employees who are breastfeeding we strictly implement the national maternity leave childcare leave and breastfeeding
leave policies. These employees can enjoy flexible working hours and skill update training work handover buffer period and staged
workload reduction arrangements after returning from maternity leave to ensure a smooth transition.We uphold the core values of diversity equality and inclusion and actively recruit people with disabilities through open and inclusive
hiring practices. We strictly adhere to the principle of equal pay for equal work ensuring that employees with disabilities enjoy the
same compensation standards and promotion paths as all employees in the same position and eliminate any form of discrimination
or injustice. To effectively ensure that employees with disabilities can participate equally and fully in work we have systematically built
an accessibility support system thereby continuously enhancing their sense of fulfillment and belonging in the workplace. Specific
measures include:
62Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Recruitment and Work environment Communication and
onboarding support optimization feedback mechanism
D u r i n g t h e i n t e r v i e w a n d Sound and l ight a larm systems are Establish a dedicated employee
onboarding process professional fully deployed in the production and service center to provide hearing-
sign language interpretation office areas clear and intuitive visual impaired employees with convenient
ser vices are provided to job management is implemented and the f e e d b a c k a n d c o m m u n i c a t i o n
seekers with disabilities to ensure equipment operation interface is optimized channels and promptly respond
smooth communication and equal to make operations less difficult and to and solve the difficulties they
access to information. improve safety and operational efficiency. encounter in work or life.Physical accessibility Support and care in life
Provide compliant wheelchair-access routes and In addition to paying labor-based compensation in accordance
accessible facilities in office areas and public with the law we provide monthly living allowances for hearing-
areas to ensure that all employees including impaired employees and provide additional care and preferential
employees with disabilities can access and use support to employees with particularly difficult families
them conveniently and safely. reflecting people-oriented management.Key performance in 2025
CASE
During the reporting period we provided assistance to 20
Case: Accessible restrooms employees in need and distributed a total of 157963 yuan in
employee assistance payments.Our subsidiaries provided employment for more than 217
people with disabilities.
20 employees 157963 yuan
provided assistance employee assistance payments
217 people
job provision for disabled employees
Development and Training
▍ Staff Training
At Yinghe Technology we attach great importance to talent development firmly establish the strategy of talent-led development and
seek and recruit talents to create a strong "intellectual engine". We have formulated and implemented a systematic training system
covering the Employee Training Management Procedures the Internal Trainer Management Regulations and the New Employee Training
Management Measures and other institutional documents to clarify training management norms and standards to standardize and
sustain the talent training process. Adhering to the "teaching and mentoring" culture and the employment philosophy of "Appoint by
63Merit Orient by Contribution" we carefully design the "alent training philosophy" at the strategic level and formulate a talent training
outline. Based on the competency model we have built the Talent Academy in accordance with the "3X3" model ("Three Capabilities"
X certification and three course categories) and scientifically integrated the learning and development system competency model
and career path. For different training recipients we formulate different training plans and implement them on a hierarchical basis as
needed. We focus on developing internal training courses while introducing specialized external training.Talent strategy CASE
Talent Academy Case 1: International talent
introduction and training project
Competency Academy New Force Academy
To speed up the introduction of international talents
and contribute to our overseas expansion we
launched an international talent introduction and
Open Corporate Party System Special Vocational Professional
courses by culture member access position skills title training project in May 2025 by opening business
category courses and Party certifi- certifi- certification evaluation
school cation cation certification English classes professional English classes and
courses international talent classes. We focus on improving
overseas language skills building an overseas
talent team developing 30000+ professional
Beisen Cloud Learning Platform + Training Management System
+ Academic Journals English vocabulary for equipment technology and
11 technical agreement standard courses and
introducing reserving and training a total of more
'3 (Capabilities) + 3 (Course Categories) + X than 300 overseas debugging technicians project and
(Certifications)' Educational System Model technology development personnel.
CASE
Case 2: New Talent Training Camp project
To support the implementation of our strategy and foster our talent
team in July 2025 we launched the New Talent Training Camp
project for all new employees aiming to help new employees
quickly complete role transitions integrate into the organizational
environment and improve job competency through systematic
onboarding guidance. The 5-day project includes the opening day
external training day development day and graduation day. We
organize different forms of activities to mobilize the enthusiasm
of new employees improve cohesion and help them achieve a
smooth transition from students to "Yinghe people".
64Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Key performance in 2025:
Indicators 2025 Unit
Total investment in employee training 1.344 million yuan
Investment in training per employee 100 yuan
Total employee training hours 174385 /
Training hours per employee 14.5 /
Employee training coverage rate 100 %
Training hours for new hires 34148 /
Proportion of trained new hires 100 %
Training hours for R&D personnel 29966.19 /
Proportion of trained R&D personnel 100 %
Note: Except for the total number of employee training hours other employee training-related data does not include Sikary.M T P O
(Management track) (Technical track) (Professional track) (Operational track)
▍ Employee Promotion Job Job grade description Job Job grade Job Job grade Job Job grade
Grade (Platform) grade description grade description grade description(MO)
To establish and improve a systematic talent
M7 Chairman/Deputy
development system we have formulated the Chairman
Position Management Regulations and the M6 President
Senior Vice President
Qualification Management Regulations and other M5 T7 Chief Vice President Engineer
rules. To adapt to our current needs for talent
Senior Director/
development we have systematically revised and M4 Director/Deputy T6 Deputy Chief p6 Senior
Director Engineer Specialist
upgraded the Position Management Regulations
to further broaden employee career development Senior General M3 Manager/ General Senior Manager/Deputy T5 Engineer p5
Specialist
paths clarify position levels and tenure standards General Manager
and provide institutional basis for job matching
Senior Manager/ T4 Advanced p4 Professional
talent training and employee promotion. In setting M2 Manager/Deputy Engineer Manager 06 Senior Manager
up positions we follow the principles of job Technician
Senior Supervisor/ Senior
creation minimum number rights enjoyed in line M1 Staff Supervisor/Deputy T3 Engineer p3 Specialist 05 Advanced Technician
with responsibilities and structural optimization. Supervisor Officer
04 Intermediate
On this basis based on the promotion principles T2 Engineer p2 Specialist TechnicianOfficer
of "fairness impartiality openness and merit- Assistant Assistant 03
Junior
T1 p1 Technician
based appointment" we have established Engineer Specialist Officer 02 Technician/Clerk
qualification standards based on basic conditions
01 General Worker/
performance knowledge skills and behavioral Apprentice
evaluation as the core dimensions. Our dual-track development path
65We have designed the dual-track development path for management Key performance in 2025
personnel and technical/professional personnel. Corresponding ranks
are set up in each track according to responsibilities and contributions. During the reporting period the number of people
This not only supports employees' vertical expertise consolidation in we promoted (991 employees) increased by
management or professional fields but also provides the possibility 206.81% compared with 2024 (323 employees)
for their horizontal capability expansion and role transition achieving and the development of the talent team showed a
a comprehensive expansion of career development from "upward strong development trend.promotion" to "deepened professional development" and "expanded
capabilities".▍ Indicators and Targets
Indicators Targets 2025
Employee turnover rate Continuously reduce employee turnover rate 24.6%
Employee training coverage / 100%
Note：The employee turnover rate does not include Sikary.Occupational Health and Safety
Occupational Health
We adhere to the EHS management policy of "preventing risks fulfilling responsibilities engaging all employees and continuously
making improvements". We combine the ISO 45001: 2018 management system requirements and industry development trends to
build a full-chain occupational health management system featuring "system guarantee—precise protection—dynamic monitoring—
effectiveness improvement" to enhance the proactive safety awareness of all employees.In terms of system certification we have obtained ISO 45001:2018 occupational health and safety management system certification.During the reporting period we strictly followed the science-based risk management and control framework provided by this
international standard implemented the closed-loop management model of "Plan-Do-Check-Act (PDCA)" and ensured continuous
optimization of management performance through regular internal audits and management reviews demonstrating systematic and
standardized occupational health risk management.Yinghe Intelligent's ISO 45001 Huizhou Yinghe's ISO 45001 Sikary's ISO 45001 Occupational Huizhou Yinghe's Level 3
Occupational Health and Safety Occupational Health and Safety Health and Safety Management Work Safety Standardization
Management System Certification Management System Certification System Certification Certification
66Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Annual EHS management goals
No. Indicators Unit Management Targets Progress
1 Work-related fatalities / 0 Completed
2 Fire incidents / 0 Completed
3 Work-related injury rate per 1000 employees ‰ 3.5 Completed
4 Serious injuries / 0 Completed
5 EHS penalties from regulatory authorities / 0 Completed
6 Environmental pollution accidents / 0 Completed
7 Occupational disease incidence rate % 0 Completed
To effectively fulfill the main responsibility for occupational health we formulated our Occupational Health Management System
in accordance with the Law of the People's Republic of China on the Prevention and Control of Occupational Diseases and relevant
regulations clarifying the core requirements for the prevention and control of occupational disease hazards health monitoring and
labor intensity control. We also conducted regular testing and assessment of possible occupational hazards in the workplace thus
systematically building an institutional foundation for occupational health management.Occupational Health Monitoring
To control occupational health risks from the source we have established a comprehensive protection system. We systematically
conduct the identification and risk assessment of occupational disease hazard factors and establish a dynamically updated risk list.We promptly identify and evaluate physical chemical and other hazardous factors in the workplace through regular monitoring and
physical examinations and formulate corresponding prevention and control measures. We strengthen employees' risk awareness
through specialized training job notifications etc. and build a closed-loop occupational health and safety management mechanism of
"identification—evaluation—prevention—control—supervision".Occupational Health Protection Measures
We continue to deepen occupational health and safety protection actively improve the working environment and ensure that the
workplace has good ventilation facilities to reduce the harm to employee health caused by toxic and harmful gases dust among other
factors provide adequate health facilities and set up clinics health corners etc. to ensure that employees' personal hygiene and
health in the workplace are basically guaranteed. At the same time we continue to optimize living and leisure facilities such as setting
up simple fitness facilities basketball courts and badminton courts optimizing the configuration of dormitories and purchasing air
purifiers to create a healthy and comfortable working and living environment for employees.During the reporting period we strictly complied with the "Triple Simultaneities" management regulations on occupational disease
protection measures in construction projects regularly entrusted third-party organizations to conduct comprehensive testing of
occupational hazard factors formulated special rectification plans for problems discovered during the testing and implemented
them within a time limit. We were also fully equipped with sufficient health protection facilities in the workplace and standardized
occupational safety warning signs to ensure full coverage and effectiveness of protective measures. In view of key hazards such as
noise we have optimized the management and control plan based on actual on-site operations and continued to improve the working
environment and effectively protect the occupational health rights of our employees through a combination of noise reduction
modifications strengthening the wearing standards of personal protective gear and launching special publicity and education.
67Key performance in 2025:
100%100%0%
Monitoring coverage rate of Employee occupational health Occupational disease
occupational hazard factors examination coverage rate incidence rate
Work Safety
Development of Safety Management System
We strictly comply with the requirements of laws and regulations such as the Law of the People's Republic of China on Work Safety
the Fire Protection Law of the People's Republic of China the Emergency Response Law of the People's Republic of China and the
Special Equipment Safety Law of the People's Republic of China. We always adhere to the policy of "putting safety and prevention first
and implementing comprehensive management" and continue to improve system documents with the EHS management manual
as the core and supported by multiple EHS management systems and equipment safety operating procedures to ensure that safety
management is governed by rules. We have established a work safety committee under the overall supervision of senior executives to
clarify the specific responsibilities of each department and member standardize the work process and behavior during the production
process and include safety performance in the assessment effectively ensure that responsible entities fulfill their responsibilities and
realize the safety responsibility of "everyone is responsible for work at every level".We fully extend our work safety management policy to contractors effectively eliminate blind spots in outsourced operation
management effectively prevent safety accidents and ensure the safety of project delivery.Key performance in 2025:
15410.25%0.16
Working days lost by employee due to Workplace injury rate Days lost due to work-related
work-related injury injuries per million yuan of revenue
8.08 millon yuan 0.09 %
Our total capital investment for the purpose of Proportion of investment in work safety to
ensuring work safety operating revenue
Hidden Hazard Investigation and Management
In accordance with our Hidden Hazard Investigation and Management System we have established a governance mechanism for hidden
hazard investigations featuring "full participation hierarchical control and closed-loop governance" and implement a closed-loop
hidden hazard management method focusing on"daily investigation + regular inspection + special inspection". We are committed to
transforming from post-incident response to proactive prevention. We have formulated the Annual Hidden Hazard Investigation and
Management Plan in which the scope of hidden hazard investigation includes comprehensive coverage of infrastructure production
equipment operating procedures etc. In 2025 through safety inspections at all levels a total of 1868 safety and environmental hazards
68Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
were identified and rectified with an inspection coverage rate of 100%. All issues have been managed in a closed loop effectively
preventing and resolving various work safety accident risks.To reduce and eliminate potential safety hazards in employees' daily operations we implement a three-tier training system consisting
of pre-job regular and specialized training to strengthen safety training. New employees can take up the job only after passing the
assessment. Safety knowledge refresher training is organized for all employees every quarter and on-the-job training for special
operators with certificates is fully covered. Our employees perform daily pre-job self-examinations monthly comprehensive department
inspections and the EHS department conducts specialized inspections for high-risk operations and special periods. All hidden hazards
are recorded in the ledger and rectified within a time limit. We equip our employees with labor protection gear such as safety helmets
protective gloves and goggles in accordance with national standards and replace them regularly.For special risks such as hazardous chemicals we have formulated the Hazardous Chemicals Safety Management System and on this
basis regulated the entire process of the introduction application procurement transportation storage use and disposal of hazardous
chemicals to strictly prevent the occurrence of fires explosions leaks and other accidents.Safety Emergency Management
▍ Prevention Management
We have established an efficient and reliable emergency management system with the goal of "quick response scientific handling and
reduction of losses". We have formed a full-chain management from organizational structure process specifications material support
to actual drills comprehensively improving our emergency response capabilities. We have established a three-tier organizational
emergency management system of "decision-making—management—execution level" and formulated a complete three-tier plan
system consisting of the "comprehensive plan + special plan + on-site handling plan" to cover various emergency scenarios such as fires
hazardous chemical leaks and equipment failures. We have standardized the full-process operation specifications of "early warning
identification—response initiation—on-site treatment—post-event recovery" to ensure that emergency response is rule-based efficient
and orderly; Meanwhile we have established a dynamic update mechanism for emergency plans to continuously optimize based on
hidden hazard investigation and drills.Yinghe Technology's emergency management organizational structure
Coordinate major emergency decisions and
Emergency resource allocation
Management Leading Decision-making
Group
Cover professional modules such as rescue
handling information communication and
lo gist ics support and is responsible for
emergency coordination and promotion
Task Force Management
Responsible for initial incident identification
Departments/ and on-site handling
Workshop emergency Execution
teams
69▍ In-process and Post-event Management
We have formulated the Regulations on the Management of Accident or Incident Reporting Investigation and Handling. For all safety
accidents or incidents we initiate emergency response and handling according to the system and procedures identify the cause of the
accident and take corrective and preventive measures to prevent recurrence. During the reporting period we had no production safety
accidents involving serious injuries or occupational hazards nor did we receive information on work safety accidents reported by our
suppliers contractors and other partners.▍ Emergency Drills and Guarantees
To improve our emergency response capabilities we organize regular emergency drills by adopting a model that combines
"comprehensive drills and specialized drills". After each drill a review evaluation is conducted to sort out process loopholes and
improvement directions form an evaluation report and implement corrective measures effectively improving the emergency response
awareness and collaborative processing capabilities of all employees.In addition we have set up a standardized emergency material reserve Key performance in 2025
to fully reserve various emergency materials such as firefighting
equipment first aid kits leak plugging tools emergency lighting and During the reporting period we organized
walkie-talkies according to the requirements of the emergency plan. We a total of 32 safety drills with more than
conduct monthly material inventory and effectiveness verification and 14100 participants and the drill coverage
promptly replace expired or damaged materials to ensure that these rate reached 100%.materials are "available and useful" and provide solid material support
for emergency response.CASE
Case: Emergency Drill in 2025
▍ Emergency evacuation drill Lithium battery emergency drill
70Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Safety Culture Development
We actively promote a work safety culture and have established a normalized training mechanism that integrates online and offline
approaches. On the Beisen platform we offer specialized safety and environmental courses each month and hold Yinghe Lectures for all
employees reaching over 15000 participants. Throughout the year we published more than 180 safety knowledge articles on the Safety
Yinghe official WeChat account embedding safety into our daily work. In addition to regular training we organize special activities such
as "Work Safety Month" and "Fire Protection Awareness Month" during which we hold online knowledge competitions offline skills
contests and emergency evacuation drills. These activities help train employees' emergency response and collaboration capabilities
while allowing us to test plans through simulated scenarios significantly enhancing employee engagement in safety and strengthening
practical skills.CASE
Case: Safety training in 2025
Three-tiered safety education and training for new hires Safety hazard training
Key performance in 2025：
Indicators 2025 Unit
Safety training coverage rate 100 %
Total safety training hours 94056 /
Safety training hours per capita 7.82 /
Total number of safety training sessions 278 /
Total safety training participants 105187 /
71Products and Services
Product Quality Management
Governance
We have established a quality management structure supervised and managed by senior management and a quality management
center as the overall management organization. We formulated rules such as the Quality Manual the New Product Development and
Design Control Procedures the Product Protection and Labeling Control Procedures and the Equipment Delivery Control Procedures
to achieve full coverage of quality control over the entire product life cycle covering design and development production and
manufacturing delivery disposal of non-conforming products and after-sales customer complaints etc. These initiatives are designed
to effectively ensure that the quality of products and services continues to meet standards. We have obtained the ISO 9001 Quality
Management System Certification.Shenzhen Yinghe's ISO Dongguan Areconn's ISO
9001 Quality Management 9001 Quality Management
System Certification System Certification
Huizhou Yinghe's ISO 9001 Sikary's ISO 9001 Quality
Quality Management System Management System
Certification Certification
Strategy
We have established and improved a risk and opportunity management and control mechanism. With the Organizational Environment
and Risk Management Procedures and the Process Operation Risk and Opportunity Evaluation Form we systematically identify potential
risks and opportunities throughout the product life cycle (production delivery after-sales etc.) formulate targeted response measures
and ensure that responsible entities fulfill their responsibilities and regularly conduct effectiveness evaluations of measures achieving
closed-loop control.
72Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Financial Company
Risks/ Risk/Opportunity Magnitude
impact on impact Response measures
Opportunities description of impact
the company horizon
Evaluate and arrange orders based on
multiple factors such as project urgency
Inaccurate production factory production capacity production site and project material arrival to ensure
Unreasonable planning and ordering
production results in increased assembly Decrease in
Short- the accuracy of the plan;
plan production tasks and tight revenue
to Medium After production is planned regularly
assembly cycles which affects mid-term confirm the shipment progress with
assembly quality. marketing and after-sales teams notify assembly adjustments in a timely manner
when abnormalities occur and ensure
normal project delivery.Abnormal assembly problems
where employees failed
to follow the assembly Follow up on SOP requirements and
Assembly requirements of the SOP Decrease in Short- provide training to operators to make them
abnormality work instructions caused revenue to mid-term High aware of relevant requirements;
quality problems affecting On-site managers conduct spot checks on
product delivery and customer employees' work from time to time.satisfaction.Deliver high-quality products
Increased and services establish good Provide high-quality products and services
customer customer relationships Increase in Mid- to long- High with a complete product life quality
demand and have steadily growing revenue term management mechanism and create a
customer demand. good reputation.Impact Risk and Opportunity Management
▍ Quality Risk/Opportunity Management Mechanism
Risk and opportunity identification Risk and opportunity Risk and opportunity
assessment responses
◇ Adopt PEST Porter's Five Forces SWOT and other ◇ Evaluate risks and ◇ Adopt appropriate
methods to identify risks and opportunities in the opportunities based response measures based
environment where we operate and list them in the on dimensions on different levels of
Process Operation Risk and Opportunity Evaluation such as their risks and opportunities
Form; likelihood severity and implement closed-
◇ Identify risks and opportunities by investigating and economic loop supervision of the
the needs of relevant parties and list them in the benefits/losses and implementation and
Monitoring List of Stakeholder Needs and Risk identify risks and effectiveness of measures
Opportunities; opportunities at through performance
different levels. indicator assessments
◇ In principle we organize risk and opportunity
internal reviews etc.identification work once a year. When a major quality
accident occurs new risks and opportunities are
identified based on needs.
73▍ Product Quality Testing
We have built a quality risk monitoring system covering the entire life cycle of product design manufacturing sales and delivery.With institutional documents such as the Measurement Equipment Control Procedures the Product Protection and Labeling Control
Procedures and the Inspection and Testing Control Procedures we ensure that products and services continue to meet standards.Full life cycle quality inspection measures
Product design Sales delivery
◇ Develop rules such as the New Product Design and ◇ Develop equipment delivery control procedures
Development Control Procedures and the 3D Review and standardize the management of the delivery
Management Specifications to ensure that product design process from in-factory commissioning to off-
meets quality requirements; site acceptance;
◇ Formulate a master list of project quality classification ◇ Set up an after-sales team to handle customer
control standardize equipment functions equipment complaints adopt timely management for
performance brand requirements equipment safety and customer complaint feedback information and
other aspects identify quality risk points in advance and implement closed-loop management of problem
prevent and avoid major quality hazards. tracking for customer complaints.Manufacturing
◇ Incoming material inspection: implement a strategy to inspect 100% of key materials; conduct hierarchical sampling for
ordinary parts according to high medium and low risk levels; and standardize inspection requirements and timeliness;
◇ Process inspection: implement inspection in accordance with SOP checklist and inspection standards summarize
problems after confirming the inspection results and conduct supervision and rectification;
◇ Finished product inspection: After indicators such as the issue closure rate are up to standard the machine review and FAT
acceptance will be carried out and the FAT acceptance report and problem list will be output;
◇ Shipping inspection: Develop domestic or overseas shipping packaging inspection list to check whether it meets packaging
standards.▍ Product Recalls and Traceability
We have formulated quality problem management systems such as the After-sales Problem Handling Management Regulations and
the Control Procedures for Handling Non-Conforming Products to define the problem handling process and recall methods. At the
same time we have formulated the Equipment Identification and Traceability Management Regulations the Product Protection and
Identification Control Procedures and the Product Recall (Withdrawal) Management Procedures to standardize the product recall
(withdrawal) process and ensure that products are effectively labeled and identified throughout the entire life cycle from assembly
inspection shipment to customer sites and trace the historical quality status usage and location of products based on product
identification.
74Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
After-sales quality problem handling process
Start
Raise an issue Receive an issue
No
Implement temporary Temporary
measures measures Included in management
Yes
Formulate a
Preliminary analysis / Determine
temporary
responsible department
plan
Follow-up by responsible
department
Root cause analysis
Formulate permanent
Result verification measures
Yes
Close the issue Implement permanent measures
End
Product traceability management measures
System traceability Traceability
Leverage a digital system to record information Trace product histor y application and location
on the entire process from material procurement according to the identification of each production stage
to product delivery including order numbers and (including order number material number inspector
material numbers. date supplier and quantity).Indicators and Targets
Product and service management Indicators Targets in 2025 Progress in 2025
Product delivery pass rate 100% 100%
Number of product recalls / 0
75Product Quality Certification
We strictly abide by relevant laws regulations and product
requirements to ensure that our products have no quality and safety
hazards. Our products have obtained CE NRTL and other external
certifications providing product compliance guarantee for our
overseas strategic layout.CE Certification NRTL Certification
CASE
Case: Product quality compliance
To continue to ensure product quality compliance our subsidiary Sikary
regularly implements product compliance inspections. By collating product
compliance inspection results product hazardous substance testing results
and other information it forms the Product and Process Compliance Quality
Monitoring Report to continuously ensure product compliance.▍ Eco-design
We always adhere to the eco-design philosophy systematically reduce the negative impact on the environment throughout the life cycle
of products and services and integrate the sustainability philosophy into every aspect of our R&D and innovation.New Super-E series S-type coating machine
Low energy consumption and high efficiency: The heat
loss of the oven is reduced by 35% and the operating
cost is reduced by 20%;
New layout and highly integrated design: the foldback
oven design saves the equipment area by 35%
effectively saving logistics and transportation channel
spaces.
76Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Quality Culture Cultivation
Through continuous quality improvement projects quality culture promotion and other activities we have established and improved
our quality audit mechanism created a quality improvement atmosphere with full participation and effectively improved the quality of
our products and services.Internal and external quality Quality culture promotion Quality improvement
audits and training
◇ T h r o u g h d i v e r s i f i e d q u a l i t y ◇ QA broadcast account: Build an internal QA ◇ Continue to promote
internal audit activit ies such broadcast account to publish quality cultural quality improvement
as centralized internal audits publicity information such as quality training and training activities
external audits and core business knowledge and activities to continuously implement QCC (Quality
audits we systematically identify improve our employees' quality awareness; Control Circle) and EQI
potential quality risk points in ◇ Specialized "Quality Month" activities: We (Engineering Qual i ty
various departments and business carry out a series of specialized "Quality Improvement) projects
operations implement a closed- M o n t h " a c t i v i t i e s u n d e r t h e t h e m e o f and improve product
loop tracking and improvement "Strengthening Overall Quality Management quality and operational
mechanism for problems and and Boosting the Company through Robust efficiency through full
continuously optimize our quality Quality" and set up awards for individuals and participation.management capabilities. teams to stimulate employees' motivation for
quality improvement.In 2025
we organized a total of 1 centralized internal audit identifying 73 problems with the problem closure rate exceeding 100% by the
end of 2025. We also organized a total of 16 core business system audit activities recognizing 87 problems with the issue closure
rate reaching 100%.We completed a total of 72 quality improvement projects and organized 83 quality training activities with 3330 participants.CASE
Quality compliance audit and improvement cases
Our original three core control documents the Production
Planning Control Procedures the Assembly Production
Control Procedures and the Inspection and Test Control
Procedures had pain points in system and execution
deviations with insufficient actual guidance effectiveness.In response we adopted on-site observations in-depth
interviews special improvements and other measures
to identify responsible persons and formulate corrective
measures based on business modules assigned a
dedicated person to follow up on multiple rounds of QA broadcast account for quality Series of specialized "Quality
reviews and eventually formed the final drafts. After the publicity Month" activities
revision the three control documents are highly consistent with our business process effectively improving the stability and
reliability of the product process.
77Customer Service Management
After-sales Service Management
With the core mission of “helping customers achieve excellence” we have established a localized service system covering our
centers around the world to continue to provide customers with the best product solutions and the most agile local services. We
have formulated after-sales service management systems such as the After-sales Service Control Procedures the After-sales Problem
Handling Management Regulations and the Customer Site Management Regulations to standardize the after-sales service management
requirements for our products and ensure the quality of after-sales services.Global Service Center
Customer Service Center for Accessories&Function Service Information Training &
Each Product Line Expansion operation platform certification
Serving and Equipping the World Full Lifecycle Management International Certification System
Global multi-center service system Equipment life cycle maintenance; Construction of global training and
"Worldwide Scope Swift to Cope" function expansion certification system
Full lifecycle management of Standardized training，internationalaccessories certification
Service Principle Information Platform Big Data Analysis
Service process: Equipment & service Service with model & service quality
project responsibility system informatization record with data
Build a customer-oriented culture Global service at your fingertips Big data analysis for accurate services
Aiming to exceed customer expectations
After-sales service quality assurance measures
Standardized after-sales service system Professional after-sales team support
W e h a v e b u i l t a n a f te r- s a l e s s y ste m o f " sta n d a r d — Establish a professional customer service team to
collaboration—traceability—optimization" that fits the provide one-to-one on-site service deeply understand
characteristics of the industry clarifies the after-sales service customer needs and respond promptly.standard process and ensures the quality of after-sales
management.Hierarchical problem management mechanism Front-end service empowerment
Formulate the Problem Management Platform to prioritize the Before equipment is delivered the technical team is
severity of problems to ensure that key issues are dealt with organized to conduct pre-acceptance training which
quickly. Meanwhile we conduct batch-based spread out of issues covers equipment operating specifications key quality
and internal training for issues such as common ones to achieve control points and emergency response plans for
closed-loop management. common problems to improve customer experience.
78Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Preventive maintenance
Identify the key and difficult problems of the same type and across bases prioritize temporary measures to eliminate prototype
risk points and form a full-chain risk prevention and control system of "consensus on problems—prototype verification—
batch-based spread out of issues".After-sales service management process
Customer Marketing Management Product lines of Delivery R&D & Engineering
Department Center Management Department
Issue demand
Receive demand
Out-of-warranty In-warranty service In-warranty service
service (Received by marketing) (Received by delivery)
Negotiate agreement Formulate quotation
terms agreement
Y
Dispatch service
application Out-of-warranty service
Register demand
After-sales service summary sheet
N
In-warranty service
N
Resolve the issue Develop a solution
Y
Confirm the solution
Y
N Implement the solution
Confirm work
result Work verification
Y Confirm completion
Completion slip
Service satisfaction
evaluation
Information sorting & filing
After-sales service summary sheet
Case closure
79
Receive demand Process demand Case closure & f i l ingCustomer Complaint Response Management
We have established systems such as the Customer Complaint Handling Control Procedures and the Customer Complaint Escalation
Management Regulations to standardize the customer complaint response process and grading standards achieve standardized
and efficient management of customer issues from acceptance to closed loop and systematically protect the rights and interests of
customers.Customer complaint handling process
Responsible departments Flow chart Output
Complaint emails/
External customer Customer complaints
information etc.Complaint receipt & feedback
Marketing Center
Delivery Center Complaint information
Quality Management Center Compile complaints
Problem receipt
Complaint
Delivery Center
Management Platform
Preliminary analysis
Delivery Quality Department Temporary countermeasures /
Follow-up with responsible
Corrective and preventive
Relevant responsible departments departments
NO actions
Root cause analysis
Delivery Quality Department /
NO Acceptance check
YES
Formulate improvement
Relevant responsible departments measures 8D Report
Effect verification
Delivery Center Effect verification
Reply to customer
Result feedback
Delivery Center
End of standardized Compiled 8D Report
management
80Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Service standard for customer complaint handling timeliness
Timeliness Action
Obtain detailed information about customer complaints investigate the current situation and notify the quality manager.The
Within 1 day notified party shall take corresponding actions in accordance with the applicable guidelines. Conduct preliminary cause analysis
and determine liabilities.Within 2 days Establish an 8D team to determine emergency or temporary measures.Conduct root cause investigation and analysis temporary measures will be completed within 4 days and the root cause will be
Within 4 days
clarified.Within 3 days Confirm improvement strategies formulate long-term measures and submit 8D reports.Within 20 days Implement long-term measures and verified track verification results and close issues.Customer complaint management indicators（2025）
11100%100%
Total number of customer complaints Customer complaint response rate Customer complaint resolution rate
Training on Product Knowledge
We provide diversified and multi-dimensional product training activities to help customers deepen their understanding of our products
improve their capabilities to apply them and continuously optimize their use experience.Online knowledge Offline practical training
training On-site training
C r e a t e a n o n l i n e Provide systematic equipment training After the equipment is delivered the
k n o w l e d g e b a s e and practical guidance at customer technical team conduct on-site training
i n c l u d i n g p r o d u c t s i te s w i t h a fo c u s o n coa c h i n g and leverage visual tools such as three-
manuals and product operators to master safety regulations dimensional exploded diagrams flow
structure explanation and operating skills and ensure that charts warning diagrams and data
materials and create customer operators have independent comparison diagrams to reduce the
a customer training safe and efficient operating capabilities technical barriers to understanding.resource system. through training and assessment. At the same time a customer problem
communication group is established to
provide immediate response support.
81Training for our customers
Customer Satisfaction Management
In 2025 we continued to conduct customer satisfaction surveys through questionnaires and interviews. The survey covered three major
perspectives: product delivery product quality and service quality. We also conducted cause analysis and specialized improvements on
customer satisfaction results to achieve closed-loop management of customer issues.Key Performance in 2025
We sent out a total of 245 customer satisfaction questionnaires and received 214 valid ones;
The company's overall customer satisfaction scores have all met the annual targets.Honors from our customers in 2025
CATL: CATL: CATL: 2025 Capacity Improvement
2025 Special Contribution Award 2025 Quality Excellence Award Pioneer Award
82Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
EVE: Gotion High-Tech： Deyi Energy (Chery Battery Division):
2025 Pioneer Award 2025 Outstanding Innovation Award 2025 Best Service Award
Chery Automobile: Samsung SDI:
2026 Excellence in User Empowerment Award 2025 S-NOVA Gold Prize
Information Security
We attach great importance to information security and privacy protection governance and incorporate them into the establishment
of our overall risk management and compliance system. We strictly follow the requirements of relevant laws and regulations such as
the Cybersecurity Law of the People's Republic of China the Data Security Law of the People's Republic of China and the Personal
Information Protection Law of the People's Republic of China. We fully implement the cybersecurity responsibility system and clarify
the responsible entities and individuals that fulfill information security responsibilities.Information Security Management System
We continue to improve our information security management system to provide institutional guarantees for the security management
of the full data lifecycle. During the reporting period we revised the Information Processing Facilities Management and Control
Procedures the Information Security Incident Control Procedures the Information System Acquisition and Development Management
Procedures the Backup Management Regulations the Software Control Management Regulations the Information System Monitoring
Management Regulations and other rules. We also built and continued to operate an information security management system that
complies with ISO/IEC 27001 and passed TISAX (Trusted Information Security Assessment Exchange) certification renewal audit.
83ISO/IEC 27001 System Certification TISAX certification results
Routine Security Control
We proactively take measures to prevent information security incidents conduct regular information security inspections promptly
identify and fix potential system vulnerabilities and security risks prevent potential cyber threats and improve the security of our
information systems. Meanwhile we continuously conduct internal information security audits to promptly discover and respond to
potential security risks.Information Security Emergency ManagementWe implement information and cybersecurity emergency management measures of “strict prevention and control beforehand activeresponse during the incident and rapid handling after the incident” to ensure that sudden information and cybersecurity incidents can
be handled in a timely manner. During the reporting period we did not experience any major information and cybersecurity incidents.We continue to enhance our information security governance capabilities and plan to launch the XDR (Extended Detection and
Response) platform in the future integrating the Application Function (AF) Endpoint Detection and Response (EDR) and internal traffic
monitoring capabilities to build an automated coordinated information security protection system.Organizational structure for emergency drills
Emergency Command Center (Emergency Management Leading Group)
Digital Operations Center
Emergency Response Task Force
People in Charge Cybersecurity Host security Physical security Database security Security monitoring
specialist specialist specialist specialist specialist
84Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Information security emergency response mechanism
Emergency response plan Emergency response team Emergency drills and training
development formation
C l a r i f y t h e c l a s s i f i cat i o n of E n s u r e r a p i d r e s p o n s e I m p ro v e t h e e m e rge n c y re s p o n s e a n d
information security incidents coordinated operations and coordination capabilities of the emergency
a s w e l l a s t h e e m e r g e n c y efficient incident handling and response team and enable them to master
response procedures handling re co v e r y w h e n i n fo r m at i o n the latest emergency response technologies
measures responsible persons security incidents occur. and methods and continuously improve their
and reporting mechanisms for emergency response capabilities.different incidents.CASE
Case: Phishing email emergency drill
In June 2025 we organized a phishing email simulation attack drill for all employees to test and improve employees'
cybersecurity awareness and emergency response capabilities. The exercise lasted a total of 7 hours. A total of 3730 phishing
emails were sent to all users with our corporate mailboxes. 1413 recipients read the emails accounting for 37.8% of the totals;
1066 recipients clicked on the phishing links accounting for 28.5% of the total; 355 recipients submitted information through
the phishing page of which 133 people providing valid medical check-up appointment data accounting for 3.56% of the total
emails.This drill effectively revealed internal risk points. We have implemented targeted corrective measures and training accordingly
achieving a 100% completion rate. This has strengthened our security defenses and provided a critical foundation for the
continuous improvement of our information security system.Chart of Simulated Phishing Email Attack Data
Total number Number of Number of Number of data Number of valid
of emails emails read phishing link clicks submissions data submissions
85Customer Privacy Protection
We attach great importance to customer privacy protection and information security management strictly conduct background
checks and sign confidentiality agreements for relevant personnel who come into contact with customer information; we strictly follow
customer information security specifications and regularly organize dedicated information security training for all employees. During
the reporting period we passed the ISMS audit of some customers with high scores.Key Performance in 2025
During the reporting period we had no customer privacy breach incidents.
4100%1.2
Number of training sessions related Training coverage rate related to Average hours per capita
to data security and customer data security customer privacy for training related to data
privacy protection security customer privacy
protection
Employee Privacy Protection
To protect employees' privacy we have formulated rules such as the Privacy and Personal Information Protection Management
Regulations to clarify the requirements for the collection use and protection of personal information. New employees are required
to sign an authorization letter when joining us to ensure that information collection is subject to the employee's informed consent.Employee files are managed by dedicated personnel and access requires registration; information obtained for work purposes must be
approved and subject to a confidentiality commitment to ensure that the information is only used for designated purposes.Innovation-Driven Development
Governance
We have established an R&D governance structure overseen by the board set up a dedicated research institute to manage R&D and
innovation and formulated R&D management policies such as the Document Management Regulations for the Research Institute the
Experimental Process Management Regulations and the Laboratory Management Regulations to standardize and continuously improve
the R&D innovation process. We consistently pursue the "innovation-driven development" strategy and continue to provide customers
with technologically advanced new energy equipment.
86Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Strategy
With the "73" Strategy as the core we continue to closely follow cutting-edge technology and industry development trends and
establish a high-end product research and development roadmap. We focus on unmet customer needs and deliver the ultimate product:
unique where others are not and superior where others compete.Company
Risks/ Financial Magnitude
Risk/Opportunity description Impact Response measures
Opportunities impact on the of impact
horizon
Opportunities Solid-state products represent the The short- Long-term High 1. Continue to invest in core solid-
from solid-state future of technology development term revenue state technology research to ensure
technology and are a key part for building contribution technological leadership;
long-term technical barriers and is limited but 2. Cooperate with leading customers
development exploring emerging markets. The it will become to accelerate product verification and
and uncertainty current market is at an incubation an important market introduction;
risks from the stage with the technology to be growth engine in 3. Establish a closed-loop mechanism
solid-state matured and uncertainties in solid- the medium and of "technical research—product
process state processes. However the long- long term. iteration—market verification" to
term growth potential is huge. realize the transformation of results
in stages.Opportunities Basic technology is the The initial Mid-term High 1. Accelerate the accumulation
from basic underlying force driving investment of technology and quickly make
technology changes in many industries. in R&D is up for the lacking of technologies
In the face of the technical relatively high possessed by competitors;
breakthroughs risks of "lacking technologies but technology 2. Promote the deep integration of
possessed by competitors" and transformation technology and business scenarios
the homogeneous competition will optimize quickly incubate application
when all players own the same the revenue solutions that can be implemented
technology achieving key structure and and achieve the best in the field
technological breakthroughs can increase profits. where "all players own the same
not only improve the performance technology";
of existing products but also create 3. Establish a technology patent
new application scenarios and pool realize the value of technology
market demands significantly through patent authorization and
enhancing our technology premium cooperation and build sustained
and say in the market. technical barriers.Impact Risk and Opportunity Management
Laboratory Risk Management
To strengthen the laboratory management regulations of our research institute conduct experimental work in a safe and orderly
manner and promote research innovation and transformation of results we have formulated institutional documents such as the
Laboratory Management Regulations the Laboratory 6S Management Regulations and the Experimental Process Management
Regulations to effectively prevent systemic risks in the experimental process and ensure orderly research and development activities.
87Laboratory risk control measures
Basic laboratory management Laboratory environmental safety risk management and control
Standardize the management of the basic work of the Conduct regular inspections and supervision
laboratory and the resources and equipment required for of laboratory operations sites in accordance
experimental activities including but not limited to safety with the laboratory 6S management policy
management sanitation management sample management correct and improve problems that do not
raw material management and waste management and meet 6S standards and continue to ensure
clarify the scope of responsibilities of relevant personnel and the safety of the laboratory environment.implement management responsibilities.Risk management and control throughout the entire life cycle of the experimental process
Experimental design stage: Experimenters clarify the problem to be solved or the hypothesis to be verified in the experiment
establishes an experimental team formulate an experimental plan and determine the purpose and objectives of the
experiment;
Experimental implementation stage: Experimenters ensure that every stage in the experimental process meets quality
requirements through standardized operating procedures to facilitate the discovery and correction of problems;
Experimental results summary stage: Experimenters organize and analyze the experimental data check the completeness and
accuracy of the experimental data and summarize and share experimental reports; Experimenters transfer the experimental
process data to the laboratory administrator who files it in a unified manner to ensure that the experimental data can be
traced.Encouraging R&D and Innovation
We have formulated R&D and innovation incentive systems such as the Intellectual Property Award Rules and the R&D Project Incentive
Plan to continue to stimulate our internal technological innovation vitality and technological improvement momentum continuously
improve our technological innovation capabilities and enhance product competitiveness.R&D Innovation Incentives
Intellectual property reward mechanism
In accordance with the Patent Law of the People's Republic of China and other relevant laws and regulations combined with
our actual situation we give patent inventors one-time rewards based on the contribution of intellectual property rights to
our operations. At the same time patent inventors are given priority in performance appraisal technical title evaluation job
promotion etc.
88Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Indicators and Targets
Based on our strategic planning and industry development trends we have set clear R&D and innovation goals around the three key
dimensions of the number of intellectual property rights authorized the amount of R&D investment and its proportion to operating
income and established a regular tracking mechanism to continuously monitor and evaluate the completion progress of various
indicators to ensure the continuous output of innovation power and the effective transformation of research investment.R&D and innovation management indicators 2025 targets Progress in 2025
Target value: 1750
Number of patents 2469 target exceeded
Challenge value: 1850
R&D investment amount Maintain a continuous increase investment in R&D 646105521.97 yuan
Proportion of R&D investment to operating revenue ≥6% 6.84%
R&D Team Building
We attach great importance to the development of the R&D talent team. Through measures such as normalized internal skill sharing
mechanisms and industry-university-research cooperation we continuously strengthen the research capabilities of the core technical
team continue to consolidate our R&D talent advantages and provide key talent support for cutting-edge technology projects.In 2025 the number of our R&D employees reached 2546 accounting for 21.16% of the total workforce.▍ Internal Skill Sharing
We have established a normalized internal skills sharing mechanism to encourage engineers in all fields to focus on the technical
difficulties process optimization practices cutting-edge technology applications and other topics in their positions and regularly
organize specialized knowledge sharing activities. Meanwhile we adopt the form of "business keynote speakers + interactive Q&A" to
promote the efficient transfer and reuse of technical experience effectively promote cross-position technical collaboration and enhance
our team's overall research capabilities.
2025 skill sharing themes
R&D Project Management Neural Network
and Pattern Recognition Lithium Battery
Technology Introduction to Equipment
Structure Simulation Laser Technology
Application Basic Knowledge and Application
of Patents (Intellectual Property Manual)
Introduction to Hydrogen Energy Technology
Six Sigma Application Methods and Sulfide
Solid Electrolyte
89▍ Industry-University-Research Cooperation
We actively promote industry-university-research cooperation conduct high-level talent exchange and development and accelerate
technological R&D and commercialization of research outcomes.In 2025 we continuously deepened industry-university-research cooperation and launched a joint postgraduate training base with
Zhejiang University. We also initiated a joint postdoctoral training project with Huazhong University of Science and Technology and had
jointly recruited 2 postdoctoral students by the end of 2025.Postdoctoral Research Workstation Joint Graduate Training Base
R&D Innovation Results
▍ Research Awards
The 23rd Shenzhen Enterprise Innovation The 23rd Shenzhen Enterprise Innovation First Prize of the 2025 Scientific Progress
Record—Solid State Battery Wet Coating Record—Independent Innovation Award issued by the Guangdong High-
Machine Benchmark Enterprise tech Enterprise Association
2025 Top 300 Growth Projects of 2025 Top 300 Growth Projects of Top 20 Key R&D Enterprises in
Guangdong-Hong Kong-Macao Greater Bay Guangdong-Hong Kong-Macao Greater Bay Huizhou City
Area High-value Patent Portfolio Layout Area High-value Patent Portfolio Layout
Competition—Patent Award Competition—Trademark Award
90Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
The 9th "Lithium Dream 2025 Famous and Superior High-tech Products in Guangdong The 6th International
Awards—Innovative Province: "ultra-high-speed multi-station notching and stacking Science and Technology
Enterprise of the Year" in integrated machine" "double-layer super-E coating machine" and Festival-2025 Product
the China Battery Industry "highly automated wide-width calendering and slitting integrated Innovation Award: Solid-
machine" state Wet Coating Machine
▍ Industry Standard Setting
As a leading company in the lithium battery equipment industry Yinghe Technology actively participates in the formulation of industry
standards and continues to contribute to the high-quality development of the industry. In 2025 we participated in the formulation of
the group standard General Principles for Enterprise Brand Global Competitiveness Evaluation organized by the Guangdong Enterprise
Brand Building Promotion Association. This standard ensures a comprehensive evaluation from the five perspectives namely market
performance innovation capabilities global operations social responsibility and brand influence helping leading enterprises in
Guangdong and even China to shift from "scale expansion" to "value enhancement".Intellectual Property Protection
We comply with the requirements of the Patent Law of the People's Republic of China the
Trademark Law of the People's Republic of China the Copyright Law of the People's Republic of
China the Law of the People's Republic of China Against Unfair Competition and the Rules for
the Implementation of the Patent Law of the People's Republic of China among other laws and
regulations. We have formulated the Intellectual Property Management System the Intellectual
Property Risk Management System the Intellectual Property Incentive Rules and other intellectual
property management policies. We have also established a knowledge management system
coordinated by senior management executed by the Legal Department and supported by all
departments. We standardize mechanisms for patent portfolio planning trademark protection
trade secret management and infringement risk early warning to ensure compliant operations
across the entire R&D production and operations value chain. We have obtained GB/T29490-2013 GB/T29490-2013 Intellectual
Property Management
certification for our intellectual property management system. System Certification
91Intellectual property management measures
Intellectual property risk management Intellectual property infringement report
All departments implement risk avoidance measures Our employees have the obligation to protect our
in accordance with the requirements of the Intellectual intellectual property rights from infringement. After
Property Risk Management System carry out intellectual discovering intellectual property infringement they
property risk monitoring and identify evaluate and should promptly fill in the Infringement Feedback
prevent and control intellectual property risks. Form to report and feedback.Intellectual property training Intellectual property work assessment
We regularly organize intellectual property training Establish intellectual property work targets and
activities. The Human Resources Center coordinates the plans conduct assessments around the acquisition
research on intellectual property needs at the beginning maintenance implementation application protection
of each year and formulates and implements intellectual and other dimensions of intellectual property and
property training plans. assess target completion plans and the assessment
results will be incorporated into our performance
evaluation system.Ethics of Science and Technology
We adhere to the fundamental principles of protecting human well-being and respecting the rights and interests of life and maintain an
objective assessment and prudent attitude towards uncertainties and potential risks in technology applications. During the reporting
period we did not have any incidents of technological ethics violations.Supply-chain Cooperation
Supplier Management
We place a high value on supply chain management and have formulated management systems such as the Supplier Management
Control Procedures the Supplier Performance Appraisal Management Regulations the Supplier Development and Management
Regulations and the Procurement Management Control Procedures to improve the supply chain management system. We implement
full lifecycle management of suppliers covering the entire process of development admission in-process review elimination and exit
and review and coaching to ensure stable delivery of the supply chain.
92Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Supplier selection and approval mechanism
New supplier development Supplier selection and admission
Implement new supplier Admission qualifications: Collect relevant information of potential
development and management suppliers and evaluate whether they are qualified based on factors such
based on business needs requiring as their production capacity quality assurance capabilities qualification
suppliers to fill in the Basic Supplier certifications business reputation and prices.Information Survey Form and
Qualification review: The supplier review team reviews the Basic Supplier
internally review new suppliers
Information Survey Form and related qualification documents; For
based on the Supplier Admission
suppliers involving labor protection supplies fire protection facilities
Review Process and then include
safety equipment hazardous chemicals special equipment environmental
them in the Qualified Supplier List.protection facilities and other goods projects or services the EHS
Department should be invited for review.Supplier review and signing
Based on the relevant qualification requirements of the Supplier Survey and Review Form the supplier review team conducts
on-site reviews of the supplier's technical capabilities production capacity management capabilities quality and service
assurance capabilities information security implementation and internal confidentiality requirements safety and environmental
management financial risks and contract risks. Suppliers with excellent review results are included in the Qualified Supplier List
and those with lower scores can be included in the list after rectification and approval.After the review is passed documents such as the Procurement Framework Agreement the Supplier Cooperation Requirements
the Quality Assurance Agreement the Supplier Confidentiality Agreement and the Transparent Agreement will be signed with
the supplier and the documents will be updated regularly according to our procurement strategy.Supplier review and performance management
Annual review Irregular on-site audits
Organize a cross-departmental supplier review team (including Conduct irregular on-site audits for
quality management center/SQE process personnel/ suppliers with problems such as product
procurement development engineers/supplier management quality fluctuations customer complaints
engineers/audit specialists etc.) based on the supplier's supply changes in corporate operations and ESG
category and conduct on-site annual reviews based on the non-compliance and provide guidance
Supplier Survey and Review Form. and supervision for them to improve.Track and rectify suppliers with low scores based on the review
results and suspend cooperation to ensure that all issues are
closed before resuming cooperation.
93Performance appraisal management
Conduct monthly supplier performance appraisal management including product and service quality delivery etc..Issue the Supplier Deadline Rectification Notice based on the appraisal results requiring suppliers to investigate the
causes of defects urge them to formulate corrective and preventive measures and track and verify improvements after
implementation until the issues are effectively closed.Supplier management indicators
1697260140482.7%
Total number of Number of suppliers Total number of domestic Proportion of domestic
suppliers reviewed annually suppliers sourcing
Procurement Quality Management
Supplier quality management
Quality agreement signing Quality system admission Internal quality audit
advantages mechanism
Sign the Quality Assurance Agreement Priority is given to suppliers that have Examine whether the supplier has
and other institutional documents obtained the ISO 9001 certification or established an internal quality
with suppliers to ensure that their IATF16949 certification or other quality audit mechanism and a qualified
quality assurance capability continues management system certifications. internal audit team to continuously
to meet our requirements. improve and enhance product
quality.Supplied materials and product inspections Continuous quality improvement
Investigate whether the supplier has established a complete Examine whether suppliers have established
incoming material control and product inspection mechanism annual quality improvement mechanisms
and whether it has formulated control procedures for non- including but not limited to QC activities and
compliant products to ensure that product quality meets regular quality meetings to drive suppliers'
standards. continuous quality improvement.In 2025 the number of suppliers with ISO 9001 quality management system certification reached 590.
94Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Sustainable Supply Chain
We are committed to building a sustainable supply chain incorporating the ESG philosophy and requirements into our supplier's full
lifecycle management process and integrating our ESG management requirements into key processes such as admission development
reviews coaching and continuous improvement to drive the green transition and sustainable upgrade of the industrial chain.ESG admission and review requirements
◇ Green procurement: Examine whether the supplier has obtained corresponding environmental protection qualifications
including but not limited to ISO 14001 system certification pollution discharge permit or environmental assessment
acceptance report etc.◇ Human rights protection: Examine whether the supplier protects the legitimate rights of their employees in accordance
with the law including but not limited to prohibition of child labor labor contract signing leave guarantee anti-
discrimination procedures in the workplace etc.◇ Occupational health: Examine whether the supplier has occupational health and safety risks such as whether a safety
emergency plan has been developed or a major safety accident has occurred.◇ Pollution prevention and control: Examine whether the supplier has established a complete waste discharge
management process such as whether it labels hazardous chemicals and substances whether wastewater exhaust gas
and noise emissions comply with local regulations and standards etc.◇ Business ethics: Examine whether the supplier has established business conduct standards such as regular investigations
into unfair transactions establishment of whistleblower channels and protection mechanisms etc.◇ Conflict Minerals: Sign a Conflict Minerals Declaration with our suppliers to ensure that they do not use/support the use of
conflict minerals.ESG review and coaching
When a supplier encounters the following situations our EHS department together with supplier management engineers
and relevant departments will conduct on-site audits of the supplier coach and urge it to improve:
◇ The supplier does not have the qualifications conditions and capabilities related to health safety and environmental
protection;
◇ The supplier has a health safety and environmental protection accident;
◇ The supplier fails to comply with national laws and regulations and our EHS rules and management requirements.Signing of ESG agreements ESG targets and commitments
After confirming cooperation with suppliers we sign ESG- Examine whether the supplier has formulated
related agreements and commitment statements such as ESG or social responsibil ity targets and
the Yinghe Technology Safety and Environmental Protection commitments demonstrated their own
Management Agreement the Supplier Corporate Social ESG or social responsibility development
Responsibility Commitment Letter the Environmental and expectations to the outside world and regularly
Occupational Health and Safety Notification to Relevant evaluated progress toward their targets through
Parties with them to clarify the suppliers' ESG responsibilities. performance appraisals and other methods.
95Sustainable supply chain management indicators
99173
Number of suppliers with the ISO 14001 Environmental Number of suppliers with the ISO 45001 Occupational
Management System Certification1 Health and Safety Management System Certification
Note 1: The number of suppliers with ISO 14001 Environmental Management System Certification is the number of direct suppliers of
product materials with trading activities in 2025.Supply Chain Risk Management
Single supply chain risks Information security risks
For suppliers of critical and important materials in principle at least Information security incidents that occur on
2 to 3 qualified suppliers will be developed according to the principle the supplier side need to be responded to
of "ensuring one primary supplier one auxiliary supplier and one in accordance with the relevant emergency
alternative". response requirements and control measures
o f t h e I n fo r m at i o n S e c u r i t y B u s i n e s s
Conduct risk assessments and develop risk response measures for
Continuity Management Regulations and the
single-source suppliers.Business Continuity Emergency Response
Plan.Financial risks Related-party relationship risks
When suppliers are admitted business information such as tax credit If our employees or partners have related-
rating registered capital and years in operation will be collected party relationships with suppliers they
to avoid cooperation with suppliers with potential financial and must report to the Company and submit the
operational risks. Supplier Related Relationship Report Form
and the Supervision Department will be
During cooperation the financial status of key material suppliers shall
responsible for overall management.be continuously monitored including but not limited to profitability
cash flow asset-liability ratio etc. to avoid supply risks caused by
their abnormal financial status.Supplier Empowerment
We actively promote continuous improvement of suppliers and establish a normalized supplier empowerment mechanism through
specialized supplier training supplier assistance supplier conferences etc. to improve their capabilities and the competitiveness of our
products.
96Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Routine supplier training Specialized supplier training Supplier training conference
For suppliers of the four major Develop targeted training plans Regularly organize supplier training
categories of materials we around three aspects: supplier conferences to train suppliers to
formulate annual training plans p e r f o r m a n c e c o a c h i n g n e w master industry-specific standards
around requirements such as suppl ier onboarding training and convey our requirements and
project drawing review 8D and specialized capabilities and targets for them in terms of quality
reports failure cases etc. to continuously improve our supply management ESG and integrity
ensure that they continue to chain organization capabilities in construction among other areas.meet our requirements. stages.Key performance in 2025
We provided suppliers with assistance 516 times and held 4 supplier training conferences.Special Supplier Training Annual Supplier Training Meeting
2025 Global Partner Conference
In December 2025 Yinghe Technology's 2025 Global Partner Conference
with the theme of "Together to Win: Linking the Chain to Shape the Future"
was grandly held in Huizhou Guangdong Province. The conference brought
together nearly 500 core partners government representatives and guests
from financial institutions around the world. Together we reviewed
the strategic results achieved and mapped out the future direction of
collaborative innovation in the industry chain.During the conference several members of our management gave
systematic explanations and shared their insights from the perspectives of
market trends technological breakthroughs solutions supply chain collaboration joint quality improvement and transparent
ecology. These speeches delivered a coherent and comprehensive perspective on the industry's evolution direction and our
strategic deployment and clarified a pragmatic path for collaborating with our partners to tackle difficulties and jointly create
value laying a solid foundation for deepening our future cooperation.
97Promoting Industry Development Together
As a leading company in the lithium battery equipment industry we actively participate in industry exhibitions and forums deepen
collaboration between the upstream and downstream players of the industry chain build an open and win-win ecosystem and continue
to contribute to technological innovation and sustainable development in the industry.In October 2025 we made a grand appearance at The
Battery Show North America 2025 with our cutting-edge
smart lithium battery equipment solutions and innovative
technological achievements.At the event our technical team conducted in-depth
and fruitful discussions with customers and potential
partners on technical processes localized services and
future cooperation models demonstrating our strong
technology research and development capabilities
leading products and service capabilities to the North
American and global markets.The Battery Show North America 2025
Middle East Energy 2025 The 17th China International Battery Fair
(CIBF2025 Shenzhen)
Battery & Energy Storage Indonesia 2025 The Battery Show Europe 2025
98Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Equal Treatment To Small and Medium-sized Enterprises
We consistently safeguard the rights and interests of small and medium-sized enterprises (SMEs). We ensure equal treatment in the
payment of suppliers' accounts payable to maintain a sound market competition environment. During the reporting period we had no
overdue payments owed to SMEs.Rural Revitalization
We have always regarded serving national strategies and fulfilling social responsibilities as important driving forces for our corporate
development. In supporting rural revitalization especially in promoting the development of rural specialty industries we adopt a "buy-
to-support" approach—replacing direct aid with sustainable purchasing. With a series of specific and in-depth measures we ensure that
such support is effectively implemented and produces tangible results.CASE
Case 1： Case2：
During the reporting period we During the reporting period Sikary
made targeted procurement of employees went to Huanjiang
rural specialties including fragrant C o u n t y H e c h i C i t y G u a n g x i
pears and watermelons totaling Province in June 2025 to visit poor
448020 yuan. households and show care.
Social Contributions
Serving National Strategies
We actively align our development planning with national strategies with a focus on areas such as technological innovation regional
coordination and green transition. By participating in initiatives such as Yangtze River Delta Integration Plan and digital-intelligent
transformation we have not only advanced industrial upgrading and resource optimization but also contributed to sustainable
economic and social development delivering strong comprehensive results.
99Community Co-development
We maintain regular communication with the community and have established an efficient feedback mechanism. Our employee
volunteer team has long been involved in community environment improvement and waste sorting advocacy while closely coordinating
with community efforts. Meanwhile we earnestly fulfill our social responsibilities by regularly organizing our employees to participate
in public welfare activities such as blood donation and are committed to becoming a trustworthy community co-developer and jointly
creating a livable harmonious and warm community.CASE
Case: Community clean-up activities
Our Party member vanguard teams participate in community co-
development on an ongoing basis. From August to November 2025
they conducted 6 environmental clean-up activities accumulating 502
service hours. These efforts focused on clearing garbage from roads and
public areas around the Company premises continuously improving
the community's environmental conditions. Through concrete actions
they promote the development of a civilized community and work
together to create a livable and healthy community environment.Social Welfare
We have established a regularized public welfare participation mechanism by integrating social responsibility into our annual work
plans led by the party organization and coordinated by the labor union. Through regular party member vanguard activities and
employee volunteer initiatives as well as annual blood donation drives we encourage organization-wide participation. This has
cultivated a public welfare action system characterized by "Party leadership administrative support and employee voluntariness"
ensuring that our social contribution activities are carried out consistently and in a standardized manner.Key Performance in 2025:
167201
Total hours spent participating in our volunteer activities Number of participants in our volunteer activities
73
Number of volunteer activities Number of our volunteer organizations
100Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Governance
Corporate Governance 102
Integrity and Anti-Corruption 111
Fair Competition 115
Party Building 115
101Corporate Governance
Governance Strategy
At Yinghe Technology we adhere to the principle of strict compliance with laws and regulations 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 the Guidelines on the Articles of Association of Listed Companies the Self-Regulatory Guidelines No. 2 for Companies Listed
on Shenzhen Stock Exchange–Standardized Operation of ChiNext-Listed Companies. We have established a regulatory system with the
Articles of Association as the core supported by internal governance rules such as the Rules of Procedure for Shareholders' Meetings
and the Rules of Procedure for Board of Directors. Meanwhile we benchmark against the advanced governance models in the industry
and based on our actual circumstances have built a scientific and efficient governance structure with clearly defined responsibilities to
steadily enhance our standardized operations.Organizational Structure and Functions
Shareholders' Meeting
We strictly comply with the relevant laws regulations and normative documents including the Company Law of the People's Republic
of China the Rules for Shareholders' Meetings of Listed Companies and the Code of Corporate Governance for Listed Companies and
together with internal rules such as the Articles of Association and the Rules of Procedure for Shareholders' Meetings standardize the
convening holding and voting procedures of shareholders' meetings. We uphold the principle of equality among shareholders and
ensure that all shareholders fully exercise their rights and perform corresponding obligations in accordance with the law.To effectively facilitate the participation of minority shareholders in corporate governance and optimize their participation experience
we have introduced online voting for the shareholders' meeting broadening the avenues for attendance. In addition we engage lawyers
to provide on-site verification to ensure that all procedures of the meetings are legal compliant open and transparent. For major
matters that affect the interests of minority investors we count and disclose their votes separately thereby effectively safeguarding their
right to know right to participate and right to vote.Board of Directors
Our Board of Directors strictly abides by relevant laws and regulations such as the Company Law of the People's Republic of China the
Code of Governance for Listed Companies the Rules Governing the Listing of Shares on the ChiNext Market of Shenzhen Stock Exchange
the Self-Regulatory Guidelines No. 2 for Companies Listed on Shenzhen Stock Exchange–Standardized Operation of ChiNext-Listed
Companies and internal rules such as the Articles of Association and the Rules of Procedure for Board Meetings. The Board carries out
its tasks in a standardized and orderly manner. Our Board of Directors consists of 9 directors including 3 independent directors and 1
employee representative director.Our Board of Directors has five special committees: the Audit Committee the Nomination Committee the Remuneration and Appraisal
Committee the Strategy Committee and the ESG Committee. Each special committee performs its duties in accordance with the Articles
of Association their respective working rules and the authorization of the Board. During the reporting period each special committee
performed its duties and operated independently conducted research and review on professional matters and provided solid support
for the Board's decision-making.
102Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Director Appointment Procedure
Our non-employee representative directors are elected through the shareholders' meeting and the employee representative directors
are democratically elected by our employees through the employee representative meeting. Among them the Chairman and Vice
Chairman are elected by the Board of Directors by a majority of all directors. As a specialized working body of the Board of Directors
the Nomination Committee is responsible for the selection of director candidates and the preliminary procedures for reviewing their
qualifications.Diversified and Modern Governance
Modern governance structures Separation of the two roles
The Board of Supervisors is abolished We separate the roles of Chairman and President and have established a checks-
and the Audit Committee takes over and-balances mechanism. The Chairman presides over the overall work of the
its responsibilities stipulated in the Board including approval of major strategies investments and capital operations
new Company Law which is in line management appointment and assessment and audit-related matters. The
with the governance model advocated President is responsible for overall business operations and management
by the updated Company Law and including implementing Board resolutions and directly overseeing the Marketing
improves decision-making efficiency Centre. This structure ensures a clear division of labor and collaboration between
and supervision professionalism. strategy and execution strengthening internal supervision and compliance
governance.Diversified governance composition
◇ Gender composition: We have been focusing on the power of "her" vigorously cultivating female leadership and injecting
"her" power into our decision-making and daily operations. Female directors account for 44.4% on the Board.◇ Professional composition: We actively build a a policy of Board diversity. By engaging professionals in fields such as battery
technology new energy finance and accounting we enable Board members with diverse professional backgrounds and
potential to leverage their respective expertise.◇ Age composition: The core members of our management are a combination of senior experts and new talents ensuring
the innovative vitality and acumen of our decision-makers and achieving a balance between risk control and strategic
determination through the inheritance of intergenerational experience.The convening of the Company's shareholders' meeting Board of Directors and special committees in 2025
Number of meetings Consider motions
Shareholders' meeting 2 18
Board of Directors 10 56
Audit Committee 6 8
Nomination Committee 2 3
Remuneration and Appraisal Committee 2 5
ESG Committee 1 1
103Independence and Effectiveness
At Yinghe Technology we place a high premium on the key role of independent directors in improving the corporate governance
structure and governance efficiency fully guarantee their functional independence promote the scientificity and effectiveness of the
Board of Directors' decision-making improving our corporate governance. Our independent directors strictly abide by relevant laws
and regulations and internal rules such as the Working System for Independent Directors of Yinghe Technology and the Special Meeting
System for Independent Directors of Yinghe Technology actively participate in corporate governance and decision-making on major
matters and play the role of supervision checks and balances and professional consulting.In 2025 our three independent directors performed their duties diligently. By engaging in the Board of Directors special committees
shareholders' meetings performance briefings and on-site surveys they reviewed and supervised our production and operations
financial status management conditions internal controls etc. and issued objective prudent fair and independent professional
opinions on major transactions related transactions related party commitments remuneration of directors and senior management
selection of accounting firms and other matters safeguarding the legitimate rights and interests of the Company and all shareholders.During the reporting period we established and implemented a systematic Board of Directors and director evaluation mechanism
to continuously ensure the effectiveness of corporate governance. According to our annual work plan we conduct a comprehensive
evaluation of the Board of Directors and special committees based on their performance of duties and adopt a combination of self-
evaluation and debriefing to make specialized evaluations of all independent directors. Such work aims to ensure that the operations
of the Board of Directors and special committees continue to comply with regulatory requirements and to ensure that independent
directors can perform their duties independently. Meanwhile at key moments such as the reelection of the Board of Directors or the
review of major strategies we also conduct a systematic review and evaluation of the overall composition professional background and
operating mechanism of the Board of Directors to continuously optimize the governance structure and support our long-term stable
development.Our awards in governance
2025 Outstanding Practice Case of the 2025 Excellent Practice Case of the Excellent Board of Directors the 20th
Board of Directors of Listed Companies Board Office of Listed Companies "Golden Round Table Award" for
Boards of Directors of China' Listed
Companies 2025
104Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Information Disclosure
We strictly adheres to the compliance requirements for information disclosure rigorously follows
applicable laws regulations and the provisions of the Company’s Articles of Association to ensure
that disclosed information is true accurate complete timely and fair thereby effectively safeguarding
investors’ right to know and legitimate rights and interests.Board Secretary to coordinate information
disclosure matters establishing a smooth investor communication mechanism that proactively provides
disclosed information and maintains positive interactions with the capital market.We designate China Securities Journal Shanghai Securities News Securities Times and cninfo.com.cn as the specified newspapers and websites for our information disclosure to ensure that all our
shareholders have the right to equal access to information. During the reporting period we did not
violate any information disclosure regulations.
2024 Golden Disclosure
Award
Investor Relations Management
We follow rules and guidelines such as the Guidelines for the Investor Relations Management by Listed Companies and continue to
improve the investor relations management system based on our actual situation. The Board Office coordinates the overall work and
appoints a full-time investor relations director to strictly perform functions such as compliance information disclosure and investor
communication to ensure that our value is delivered to shareholders and stakeholders in a true accurate complete timely and fair
manner effectively safeguarding our investors' right to know and legitimate rights and interests and building a transparent and
mutually trusting image in the capital market.We responds promptly to investor and market concerns through various channels includingcorporate announcements performance
briefings exchanges on the SZSE Interactive Easy platform on-site surveys and visits investor hotlines posts on our official WeChat
account etc. thereby enhancing information transparency which in turn strengthens investors’ understanding and confidence in us.Our awards in investor relations
2025 Outstanding Investor Relations 16th Tianma Award for the Investor Relations
Development Award for Listed Companies Management of China Listed Companies
105Remuneration Management
The Remuneration and Appraisal Committee under our Board of Directors is responsible for formulating and reviewing the remuneration
policies and plans for our directors and senior managersas well as formulating and conducting assessment standards for directors and
senior managers. The remuneration plan for directors is determined by the shareholders' meeting and that for senior management
personnel is approved by the Board of Directors explained to the shareholders' meeting and fully disclosed. The remuneration plan is
highly transparent to protect shareholders' right to know. We continue to improve the performance appraisal system and remuneration
system for directors and senior managers in accordance with the latest regulations issued by the China Securities Regulatory
Commission and the Shenzhen Stock Exchange.The remuneration of our directors and senior managers consists of basic salary performance-based remuneration and medium-
and long-term incentive among which performance-based remuneration accounts for no less than 50% of the total basic salary and
performance-based remuneration. The remuneration of our directors and senior managers is based on market development operating
and personal performance and sustainable development.We have established a KPI-based assessment mechanism for management remuneration and remuneration should be paid based on
comprehensive consideration of our profitability as well as the assessment results of the work capabilities and fulfillment of duties and
responsibilities of our directors and senior management. The determination and payment of performance-based remuneration and
mid-to-long incentives are all primarily based on the results of the KPI assessments.In terms of tying ESG performance to performance we have currently incorporated core operating indicators such as R&D innovation
results product quality and work safety performance into the remuneration assessment mechanism for senior managers. In the next
stage we plan to further optimize the performance appraisal system based on strategic planning integrating environmental social and
governance sustainability performance indicators into the assessment framework.Internal Control
Development of Internal Control Systems
We place great emphasis on the development of our internal control system regarding it as a crucial tool for enhancing corporate
governance thereby consolidating the foundation for high-quality development and contributing to the achievement of our
strategic goals for sustainable development. In 2025 we revised our Internal Audit Management System to further clarify the scope of
responsibilities and working rulesimproving closed-loop management content. Simultaneously we added special audits for annual
import and export business and ongoing special audits for compliance with AEO Customs Certification standards to our audit plans in
response to our overseas strategic development. During the reporting period we added or revised 24 internal control rules and 245 rules
and regulations.Internal Control Audits
In compliance with the relevant requirements of the Code of Corporate Governance for Listed Companies and under the guidance of
the Board of Directors and the Audit Committee we systematically integrate and optimize the three core functions of risk management
internal control and internal audit. The Audit Risk Control Department is responsible for sorting out optimizing and rigidly controlling
the system of rules and processes coordinating the planning execution and quality supervision of audit projects as well as dynamic
monitoring assessment and early warning of various business risks across the Company.We focus on key business areas and major risk prevention and control implement intensive internal audit management and actively
106Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
accept professional guidance supervision training and standardized management from the Group Headquarters' Audit and Risk
Control Department to achieve deep collaboration and organic integration of internal audit and risk management and control functions.By continuously improving the organization's audit structure standardizing business processes and strengthening the transformation
and application of audit results we are committed to building a more robust and efficient closed-loop internal control and oversight
mechanism to provide a solid guarantee for our operational compliance and sustainable development.CASE
In 2025 we conducted various specialized audits including supplier management audits of overseas subsidiaries
infrastructure projects economic responsibility and internal control evaluation to provide strong support for improving the
internal control environment and preventing operational risks.In addition we actively promoted AEO certification in 2025. In the future in line with the internal control and self-inspection
requirements of AEO certification we will conduct a comprehensive internal audit of "import and export activities" covering
all business types (such as general trade and bonded business) every year. The audit focuses on areas such as import and
export operation compliance license use and cargo management and also involves continuous compliance self-examination
against AEO certification standards.Internal Control Mechanism
We have established an internal control management system covering the Board of Directors and functional departments. To achieve
risk control throughout the entire process we have formulated and implemented rules such as the Management Rules for the
Decentralization Manual. These rules specify process initiation requirements design and optimization standards and monitoring and
exception handling norms thereby enabling risk control from preventive measures beforehand ongoing supervision during the event
to post-event evaluation through internal audit.Compliant Operations
Development of Compliant Operations Systems
We strictly comply with laws and regulations such as the Company Law of the People's Republic of China the Civil Code of the People's
Republic of China the Law of the People's Republic of China Against Unfair Competition the Anti-Monopoly Law of the People's
Republic of China the Labor Law of the People's Republic of China and the Labor Contract Law of the People's Republic of China as
well as relevant rules and regulations issued by industry authorities.In 2025 we continued to improve our governance structure and responsibility system revising core rules such as the Work Safety
Reward and Punishment Management System the Work Safety Education and Training System the Inspection Work Management
Measures the Conflict of Interest Management Measures the Product Protection and Labeling Control Procedures the Non-Conforming
Product Control Procedures and the Document Control Procedures. These efforts help us promote the deep integration of compliance
management with legal risk control auditing and supervision and internal control systems to form a closed-loop mechanism of
"system-execution-supervision-improvement".
107Fostering a Culture of Compliant Operations
We have established a dual-track compliance performance assessment mechanism incorporating compliance results into the annual
business evaluation of branches and persons in charge and using employee compliance performance records as the core basis for
promotions appointments evaluations and incentives. Through regular training and case promotion we strengthen the proactive
compliance awareness of all employees and embed integrity into our principles.Compliance training topics in 2025
Analysis and Prevention of Legal Risks in Corporate Employment Risk Identification and Prevention in Business Contracts
A Practical Guide to Communication in Contract Performance Negative List for Investment and Operation Control and
Management of Personnel Authorized to Sign Contracts Externally
Risk Management
Risk Management System
We have formulated and published the rule of Risk Management to clarify the risk management responsibilities of all parties forming a
closed-loop management and control of risk prevention supervision and evaluation thereby providing institutional support for our risk
prevention and control work.Risk management system
First Line of Defence Second Line of Defence Third Line of Defence
As the first line of defense for As the second line of defense for risk As the third line of defense for
risk management each business management the Legal Department risk management the Audit
functional department evaluates conducts inspections and reviews Risk Control Department and
risks related to its business of the risk management situation the Supervision Department
based on respective processes. and response capabilities based on supervise whether our business
established risk response strategies functional departments carry
and management measures out risk management work in
evaluates the effectiveness of the compliance with regulations and
risk management work of all major the effectiveness of their work.responsible departments and
follows up on the implementation of
corrective actions.
108Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Risk Management Mechanism
Identification of risks and Tracking of risks Review and summary of
opportunities and opportunities risks and opportunities
Based on documents such as the Procedures Based on the risk We have established a risk
for Organizational Context and Risk assessment results we focus assessment review mechanism
Management and the Evaluation Form for on major risk exposures organized business departments
Process Operations Risks and Opportunities establishing a hierarchical to collaboratively prepare
we comprehensively collect organize and and classified management regular risk assessment reports
identify potential risk factors that may affect and control mechanism promoted the normalization
our production and operations through thereby achieving and institutionalization of risk
methods such as risk assessment surveys and closed-loop management management and control work
management interviews. These factors are of risk identification continued to improve the risk
then summarized and analyzed to update our assessment and disposal. identification and response system
risk map. and comprehensively enhance our
risk prevention capabilities and
governance standards.Assessment of risks and opportunities
◇ Annual risk assessment: We conduct comprehensive risk assessments annually to systematically and thoroughly review the
overall risk profile. We carry out detailed analysis from multiple perspectives such as market fluctuations financial health
and operational risks with a focus on the identified core issues formulate practical resolution strategies based on this and
eventually prepare a comprehensive risk management report;
◇ Special risk assessment: For core business sectors and strategically significant major projects we implement precisely
targeted risk assessments based on industry trends and development challenges prepare structured special analysis reports
and provide targeted risk response suggestions for the Company;
◇ Daily risk assessment: Relying on the regularized monitoring mechanism we track key risk matters in real time and
dynamically evaluate risk factors to quickly respond to emergencies.Risk Information Reporting
We have established a clear risk reporting and escalation mechanism with clear definitions of responsible persons reporting time
content frequency transmission routes approval authorization departments and personnel responsible for report processing etc. The
Audit and Risk Control Department coordinates and organizes various units to implement work such as risk identification assessment
response monitoring and early warning reporting supervision and evaluation promotes the deep integration of risk management into
our business development process and ensures effective alignment between the decision-making and execution levels comprehensive
coverage of units at all levels and full risk management process.
109Tax Management
We have established a tax compliance management system dynamically tracking changes in tax policies and continuing to optimize
our tax strategies and operational specifications. Through regular tax health management of our subsidiaries one to two subsidiaries
within the scope of consolidated statements are selected every year for full tax compliance review and risk assessment and a list of
issues is formed based on the annual risk investigation to ensure that tax risks are discovered early and corrected item by item and our
tax governance standard is continuously improved to create a solid line of defense for compliant operations.Yinghe Technology and its 3 subsidiaries received a tax credit rating of Grade A for
the 2024 tax year.Huizhou Longhe's tax rating in 2024: A Huizhou Yinghe's tax rating in 2024:A
Dongguan Areconn's tax rating in 2024: A Shenzhen Yinghe's tax rating in 2024: A
110Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Integrity and Anti-Corruption
Integrity Management System
We have established a systematic and standardized integrity management mechanism and established an integrity management
system under the overall management of our President with the Supervision Department and the Legal Department as management
departments and implemented by all employees. This system is designed to effectively prevent identify and deal with fraud and
ensure the healthy and clean operation of the Company.Supervision work mechanism Upholding the bottom line of
Fo r m u l ate t h e M a n a ge m e n t M ea s u re s fo r Formulate the Management Regulations on the Red
Super vision Work to standardize anti-fraud Line for Integrity in Employment to clearly define
procedures provide a clear institutional basis for the prohibited behaviors that employees must
conducting compliance investigations collecting strictly abide by during their employment and list
evidence identifying problems and proposing fraudulent behaviors such as seeking personal gain
handling opinions and make our anti-fraud work soliciting and accepting bribes leaking business
more professional and standardized. secrets or sensitive information as a "zero tolerance"
red line.Standardizing conflict-of-interest management Management of specific positions
Formulate the Measures for the Management of Conflicts Formulate rules such as the Measures for the
of Interest to encourage employees to proactively identify Turnover and Disposal of Gifts the Confidentiality
and report conflicts between their personal interests Management Rules for New Product Line Models
and the Company's interests that may affect their fair and the Measures for the Management of Inspection
performance of duties thereby reducing the risks of fraud Work to standardize the business conduct
and corruption caused by conflicts of interest. requirements for various business positions and
activities.Developing an Integrity Culture
We attach great importance to employees' awareness of integrity and behavioral norms. Through various forms of publicity activities
integrated online and offline publicity channels and characteristic integrity education activities we continuously enhance employees'
integrity mindset and prevent corruption and fraud.
111Integrity culture promotion
Online publicity: Through OA platform corporate
email the 'Integrity Yinghe" function on Lark and
other publicity channels we regularly push policy
interpretations and typical cases continuously
reinforcing the defense line of integrity among all
employees. In 2025 we issued a total of 9 fraud case
reports continuously strengthening the warning and
deterrence effect.Offline publicity: Posters displaying reporting channels
were comprehensively placed at the main entrances
and exits of the industrial park effectively raising
the awareness and accessibility of these channels
and broadening the sources for supervision through
reporting. In 2025 we distributed a total of 110
promotional posters.Integrity education activities
Through distinctive integrity education initiatives
such as organizing the "Clean Breeze Action" thematic
education providing pre-employment integrity training
for new campus recruits and collaborating with external
institutions to conduct joint integrity warning education
activities organized together with the procuratorate we
have enhanced the discipline awareness and bottom-
line thinking of employees in key positions. In 2025
we organized three sessions of the "Clean Breeze
Action" thematic education. The joint integrity warning
education activities organized together with the
procuratorate covered a total of 750 participants.Integrity Risk Assessment
Internal assessment through questionnaires Special integrity inspections
We carry out the Integrity Employment Questionnaire We organize specialized integrity inspections to investigate
research proactively collect fraud risk information and and deal with fraud such as false attendance and selling
clues and improve our early warning and prevention waste without permission strengthen daily integrity and
capabilities. In 2025 we carried out a total of 2 compliance control and improve risk prevention and
integrity surveys and collected more than 2700 valid control capabilities. In 2025 we carried out a total of 9
questionnaires. customer on-site inspections joint audits and specialized
confidentiality tests.
112Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Business Partner Oversight
Integrity requirements for suppliers Oversight of suppliers' business conduct
We have released the Notice on Strengthening the We organize the "Clean Breeze Action" to specifically
Management of Outsourced Suppliers drafted and rectify supply agent fraud and hold suppliers
issued the Cooperation Statement on Integrity to all responsible for breach of contract if they engage in
supplier partners clearly conveyed our firm position fraud maintain the seriousness of contracts and
on integrity and compliance and continued to convey strengthen our partners' awareness of contract
the cooperation orientation of compliance and mutual performance and integrity responsibilities. In 2025
benefit; we verified more than 200 suppliers.We collaborate with legal procurement quality
and other departments to revise the Transparency
Agreement refine the integrity clauses and improve the
mechanism for handling breaches thereby enhancing
the binding force of the contract and strengthening risk
prevention and control.Handling supplier integrity violations Integrity oversight in supplier onboarding
For certain suspected cr iminal cases we have The Supervision Department cooperates with
transferred them to judicial authorities in accordance business departments to participate in supplier
with the law demonstrating the company's firm stance on-site inspections and evaluations proactively
of "zero tolerance" for fraud; embedding integrity and compliance requirements
at the source of cooperation to ensure that business
For the supplier management problems discovered
ethics standards are upheld during the supplier
during the special governance we send letters to urge
onboarding phase.the Supplier Management Department to implement
rectifications and supervise their implementation.Supplier business ethics training
We organize the annual supplier conference for
specialized integrity promotions under the theme
of "Cooperation on Transparency and Integrity
and Anti-Unfair Competition" to deeply convey
the concept of integrity to all partners and jointly
build a clean transparent and healthy supply chain
ecosystem.
113Specialized Campaign on Agent Fraud: "Clean Breeze Action"
In 2025 to further strengthen agent management and deal with agent fraud we
decided to launch the "Clean Breeze Action" to specifically address supply agent
fraud seriously investigate and deal with agent fraud hold the agents involved
responsible for breach of contract and fully protect our interests. At the same
time we comprehensively summarized the loopholes and risk points in our agent
management improving prevention and control measures and reducing risks such
as increased procurement costs and compromised product quality caused by agent
fraud.Whistleblowing and Complaints
We have formulated rules such as the Management Measures for Supervision Work the Management Regulations on the Red Line for
Integrity in Employment and the Anti-corruption Reporting Reward Measures to effectively protect the legitimate rights and interests of
whistleblowers and ensure that all types of appeals are handled in a timely and effective manner.Clarifying reporting channels and Protection of Incentives for
procedures whistleblowers whistleblowers
The Supervision Department is authorized We expressly prohibit any The Anti-Corruption Reporting
to be responsible for the unified acceptance form of threats intimidation Rewards Measures have been
of complaints and reports and a dedicated o r r e t a l i a t i o n a g a i n s t formulated to set up a graded
channel for integrity super vis ion and whistleblowers and other reward mechanism based on the
reporting is established; the Management persons who cooperate with value of the report to encourage
Measures for Supervision Work clearly defines investigations. For any illegal employees to actively report
the standardized acceptance process for disclosure of information or corruption cases. At the same
reports and complaints fully implementing retaliation we promise to time we seriously hold relevant
information confidentiality requirements. seriously hold the relevant p e r s o n n e l a cco u n ta b l e f o r
p e r s o n n e l a c c o u n t a b l e fabricating facts falsely accusing
Reporting channels: a n d t h o s e s u s p e c t e d o f others or committing fraud
c o m m i t t i n g c r i m e s w i l l to obtain rewards and those
Reporting hotline: 13380669556 be transferred to judicial suspected of committing crimes
Reporting email: shenjibu@yhwins.com authorities in accordance with will be handed over to judicial
the law. authorities in accordance with
the law.
114Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Fair Competition
We adhere to the philosophy of fair and honest management strictly abide by laws and regulations such as the Law of the People's
Republic of China Against Unfair Competition and the Anti-Monopoly Law of the People's Republic of China. We have established the
Confidentiality Committee to improve our trade secret protection mechanism resolutely resist unfair competition maintain a healthy
and orderly market ecology through compliant operations and protect the legitimate rights and interests of all parties. During the
reporting period we had no unfair competition practices or incidents.Anti-unfair competition training
We organize specialized training sessions such as the practical review of English business contracts legal training for the
Electric Automation Group and training for personnel authorized to sign contracts externally and incorporate topics such
as trade secret protection fair competition and compliant operations into the training. Through case analysis practical
explanations etc. we aim to improve employees' capability to identify and prevent unfair competition behaviors and foster a
good atmosphere of legal competition and honest operations.Avoidance of unfair competition risks Fair competition standards
The Legal Department provides timely legal opinions We improve and revise the business ethics clauses
on potential violations identified and assists in our contract templates to make it clear that our
business departments in taking corrective measures partners should abide by anti-unfair competition
to continuously reduce the risk of unfair competition. laws and regulations.Party Building
At Yinghe Technology the year 2025 marks the "Year of Management Reform" and a key year for the implementation of Shanghai
Electric's "14th Five-Year Plan" strategy. Over the past year we have been guided by Xi Jinping Thought on Socialism with Chinese
Characteristics for a New Era thoroughly implemented the guiding principles of the 20th CPC National Congress and the Third Plenary
Session of the 20th Central Committee of the Communist Party of China. In accordance with the work arrangements of our superior
party committee combined with our updated situation and industry development and with the development of the "Six Forces" as the
core we have carried out a series of work giving full play to the advantages of party building promoting our high-quality development
contributing to the development of the new energy industry with our excellent intelligent manufacturing and accelerating our
transformation into a global leader in green energy equipment.
115Strengthening the Building of Party Organizations
Our General Party Branch thoroughly studies and implements the Xi Jinping Thought on Socialism with Chinese Characteristics for a
New Era. With the goal of becoming a provincial-level Party building demonstration site for "New Economic and Social Organizations"
and leveraging our Party and Mass Service Station as a base it adheres to the integration of Party building with the work of trade unions
the Communist Youth League and women's federations. Focusing on the development of the "Six Forces" the organization fully
leverages the role of the Party branch as a strong fortress. It promotes the deep integration of Party building work with our production
and operations technological innovation and talent development thereby guiding us toward high-quality development with high-
quality Party building.As of the end of 2025 we had a total of 80 active Party members and 272 floating Party members 90% of whom have
a bachelor's degree or above and about 60% hold middle-level leadership positions in their departments or assume
important job responsibilities.Giving Full Play to the Exemplary Role
We continue to advance the "Encouraging Party Members to Identify Themselves Set Examples and Establish Models" campaign.We organize on-duty Party members to make "Commitments at Their Positions" distribute desk signs or placards designating "Party
Member Model Posts" inaugurate signs for "Party Member Responsibility Zones" and present flags to "Party Member Task Forces"
thereby stimulating the role of Party members. We also initiate a series of selections and commendations including "Top Ten Pioneers"
"Excellent Project Awards" " Technological Innovation Awards" "Sales Elites" and "Overseas Dedication Awards" to strengthen the role
of exemplary models.Awards in 2025
7 Technological Innovation Awards 6 Delivery Team Awards 10 Outstanding Managers 10 Top Ten Management
Pioneers 10 Top Ten R&D Pioneers 10 Top Ten Technology Pioneers 10 Top Ten Assembly Craftsmen and 10 Top Ten
Manufacturing Craftsmen
Deepening the Ideological Leadership of Party Building
At Yinghe Technology we take the top-of-the-agenda system as our foundation to calibrate our development direction. In 2025 we
thoroughly studied and implemented the guiding principles of General Secretary Xi Jinping's important speeches during his inspection
of Guangdong and the 20th group study session of the Political Bureau of the CPC Central Committee and the Fourth Plenary Session of
the 20th CPC Central Committee of Secretary Chen Jining's investigation of Shanghai Electric Group and of the Shanghai Electric Group
Leadership Conference and other important speeches. From the deployment of the Chinese central government the CPC Shanghai
Municipal Committee and the Shanghai Municipal Government and the CPC Shanghai Electric Group Committee we accurately grasped
the direction of development and clarified our development goals and positioning. We insist on equipping our minds and guiding our
practice with the party's innovative theories and strive to solve key and difficult problems in our development and effectively transform
the powerful power of these scientific theories into practical results in achieve our business goals and targets.
116Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
In 2025 we carried out 24 study sessions of the top-of-the-agenda system and the leadership team took the lead in organizing 4
specialized seminars and 2 CPC lectures. 10 comrades made key speeches based on reality to promote theoretical learning to be in-
depth and practical. We actively innovate the learning mechanism by leveraging the "three meetings and one course" mechanism and
thematic CPC days integrating centralized learning individual self-study expert guidance and warning education and other forms to
achieve full participation and comprehensive coverage and continue to create a strong atmosphere of learning thinking and practice.In March 2025 we studied the guiding principles of General Secretary In April 2025 we gathered together to study the
Xi Jinping's important expositions on strengthening Party conduct and of the Excerpts of Xi Jinping's Exposition on Strengthening
central and provincial Party committees municipal Party committees district Party Conduct
Party work committees and industrial parks' Party committees on carrying
out in-depth implementation of the guiding principles of the central Party
leadership's eight-point decision.In June 2025 we gathered together to study the In July 2025 we studied the effectiveness We studied the guiding principles of General
Strictly Observing the Six Major Disciplines of and experience of thoroughly Secretary Xi Jinping's important speech at
the Party and Always Maintain the Political True implementing the guiding principles of the the Symposium Commemorating the 120th
Character of a Communist central Party leadership's Anniversary of the Birth of Comrade Chen Yun
eight-point decision in July 2025
At the "Micro Party Class" held at the 367th Dongjiang We studied and implemented the guiding
Science and Technology Park in December 2025 we principles of General Secretary Xi Jinping's
thoroughly grasped the significance of the Fourth
Plenary Session of the 20th CPC Central Committee important speeches during his inspection in
Guangdong in December 2025
117Organizing Characteristic Party-Building Activities
Discussing "Enduring Change and Evergreen Growth" and sharing insights on "Cost
Reduction and Efficiency Enhancement"
On April 23 2025 the General Party Branch of Yinghe Technology held the first annual
"Shangshan Yuedu" reading sharing session officially starting the transformation into
a learning-based organization. With a focus on the very essence of "the highest good is
like water; and the sea is receptive to all rivers" we launched the activity in the form of
a combination of "study of classics and theme-oriented co-development". This event
marked that our "Party Building and Transformation into a Learning Organization"
has entered a new stage of systematization and in-depth integration. By building
a platform for ideological collision and wisdom gathering we further stimulated the exemplary and leading role of Party
members and cadres in organizational reform and injected a steady stream of momentum into our high-quality development."Party-Building Collaboration for Synergy Smart Lithium Manufacturing for the Future"
Symposium
In May 2025 Yinghe Technology and EVE held a symposium themed "Party-Building Collaboration for Synergy Smart Lithium
Manufacturing for the Future" focusing on solid-state battery industrialization dry
electrode process optimization and other cutting-edge topics for in-depth exchanges
and through party-building interactions technical seminars and field surveys the
two sides enhanced understanding and built consensus laying a solid foundation for
future cooperation. The "Joint Party Building and Cooperation Agreement" signed
marked that Yinghe Technology has successfully opened up new channels to deepen
collaboration and enhance the loyalty of core customers and has effectively enhanced
its brand influence in the field of lithium battery intelligent manufacturing.Exchange Event Themed "Party-Building Collaboration for Synergy Empowering a New
Future of Intelligent Manufacturing"
In November 2025 Yinghe Technology and the Intelligent Manufacturing School of City Vocational College launched
exchange activities themed "Party-Building Collaboration for Synergy Empowering
a New Future of Intelligent Manufacturing". The two parties held political birthday
ceremonies signed joint development agreements and held discussions to build
consensus on development and clarify the direction of cooperation. In the future
with a focus on the three major paths of organizational co-building talent co-
cultivation and resource sharing the two sides will regularly organize thematic Party
days technical seminars and student practices to promote the deep integration of
Party building and business strengthen the Party connection between schools and enterprises and jointly inject continuous
impetus into the cultivation of intelligent manufacturing talents and industrial innovation and development.
118Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Appendix
ESG Data Table
Indicators Unit 2025
Total direct (scope 1) GHG emissions tCO2e 430.83
Total indirect (scope 2) GHG emissions tCO2e 22841.12
Total GHG emissions tCO2e 23271.95
tCO2e per million yuan of
GHG Emission Intensity 2.46
revenue
Total investment in environmental protection million yuan 1.558
Total number of participants in environmental protection training / 1225
Total hours of environmental protection training / 16
Total wastewater discharge (domestic wastewater) tons 316529
tons per million yuan of
Wastewater discharge intensity 33.5
revenue
Total amount of hazardous waste generated tons 103.35
tons per million yuan of
Hazardous waste emission intensity 0.01
revenue
Gasoline consumption tons 22.91
Diesel consumption tons 114.82
Purchased electricity consumption MWh 43047.72
Renewable energy consumption MWh 9725.04
Renewable energy share % 21.8
Total energy consumption tce 5491.58
tce per million yuan of
Total energy consumption intensity 0.58
revenue
Annual water consumption tons 160678.3
tons per million yuan of
Water Intensity 17.0
revenue
Total number of active employees / 12033
119Indicators Unit 2025
Number of male employees / 9979
Number of female employees / 2054
Total investment in employee training million yuan 1.344
Investment in training per capita yuan 100
Total employee training hours / 174385
Training hours per employee / 14.5
Days lost due to work-related injuries per million yuan of revenue / 0.16
Work safety investment million yuan 8.08
Proportion of investment in work safety to operating revenue % 0.09
Total safety training participants / 105187
Total safety training hours / 94056
Safety training hours per capita / 7.82
Total number of suppliers / 1697
Number of suppliers reviewed annually / 260
Total number of domestic regional suppliers / 1404
Proportion of domestic sourcing % 82.7
Total number of suppliers that have obtained the ISO 14001 environmental
/991
management system certification
Total number of suppliers that have obtained the ISO 45001 occupational
/73
health and safety management system certification
Number of independent directors / 3
Number of independent directors as a proportion of the number of board
%33.33
members
Number of female directors / 4
Proportion of female directors % 44.4
Note: For the scope of data statistics and accounting standards please refer to the notes in the main body of the Report.
120Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
Cross-Reference Index Table
The ESG Indicator
Self-Regulatory Guidelines
System for State-
No. 17 for Companies
Owned Listed
Listed on Shenzhen Stock CASS-ESG 6.0: Special Equipment
Contents Companies in
Exchange—Sustainability Manufacturing Industry
Shanghai (Version
Report (For Trial
1.0) issued by the
Implementation)
Shanghai SASAC
Message from Our
\ P2.1 \
Management
About Yinghe
\ P3.1、P3.2、P3.3、P3.4 \
Technology
Materiality Assessment T5、T52、T53 G1.2.1、G1.2.2、G1.2.3、G1.2.4、G1.1.9 G2.4、G2.5、G2.7
G1.1.1、G1.1.2、G1.1.3、G1.1.4、G1.1.5、
Sustainability T10、T12、T13、T15、T17、 G2.1、G2.2、G2.3、
G1.1.6、G1.1.7、G1.1.8、G1.1.10、G1.3.1、
Governance T18 G2.6、
G1.3.2
Special Topics
Digital and Intelligent
Development Strategy
to Continuously \ S2.1.16 \
Empowering
Manufacturing Upgrade
Deepening Industrial
Communication
and Demonstrating \ \ \
Leading Technological
Capabilities
Environmental
E1.1.1、E1.1.2、E1.1.3、E1.1.4、E1.1.5、
Addressing Climate T8、T14、T16、T21、T22、 E5.1、E5.2、E5.3、
E1.1.6、E1.1.7、E1.1.8、E1.1.9、E1.1.13、
Change T23、T24、T25、T26、T27 E5.4
E1.1.14、E1.1.15、E1.1.16、E1.1.17、E1.1.18
Environmental
E2.1.1、E2.1.9、E2.4.1、E2.4.2、E2.4.3、 E1.1、E1.2、E1.4、
Compliance T33
E2.4.4 E1.5
Management
121The ESG Indicator
Self-Regulatory Guidelines
System for State-
No. 17 for Companies
Owned Listed
Listed on Shenzhen Stock CASS-ESG 6.0: Special Equipment
Contents Companies in
Exchange—Sustainability Manufacturing Industry
Shanghai (Version
Report (For Trial
1.0) issued by the
Implementation)
Shanghai SASAC
E4.1、E4.2、E4.3、
E2.1.2、E2.1.3、E2.1.4、E2.1.5、E2.1.6、
Pollution Prevention E4.4、E4.5、E4.6、
T30、T31 E2.1.7、E2.1.8、E2.2.1、E2.2.2、E2.2.3、
and Control E4.7、E4.8、E4.9、
E2.2.4、E2.2.5、E2.2.6、E2.2.7
E4.10、E4.11、E4.12
E3.1.1、E3.1.2、E3.1.3、E3.1.4、E3.1.5、 E2.1、E2.2、E2.3、
Resource Utilization T35、T36、T37 E3.2.1、E3.2.2、E3.2.3、E3.2.4、E3.3.1、 E2.4、E3.1、E3.2、
E3.3.2、E3.3.3、E3.3.4、E3.3.5 E3.3、E3.4、E3.5
Green Operations \ \ E1.3
Ecology and Biodiversity
T32 E2.3.1、E2.3.2、E2.3.3、E2.3.4、E2.3.5 E6.1、E6.2
Protection
Social
S4.1.1、S4.1.2、S4.1.3、S4.1.4、S4.1.5、
S4.1.6、S4.1.7、S4.1.8、S4.1.9、S4.1.10、 S2.1、S2.2、S2.3、
Employee Rights and
T50 S4.1.11、S4.1.12 S2.4、S2.5、S2.6、
Interests
S4.3.1、S4.3.2、S4.3.3、S4.3.4、S4.3.5、 S2.15、S2.16
S4.3.6
S2.7、S2.8、S2.9、
Occupational Health S4.2.1、S4.2.2、S4.2.3、S4.2.4、S4.2.5、
T50 S2.10、S2.11、
and Safety S4.2.6、S4.2.7
S2.12、S2.13、S2.14
S3.3.1、S3.3.2、S3.3.3、S3.3.4、S3.3.5、 S1.1、S1.2、S1.3、
Products and Services T47 S3.3.6 S1.4、S1.6、S1.7、
S3.3.13、S3.3.13 S1.8、S1.9
Information Security T48 S3.4.1、S3.4.2、S3.4.3、S3.4.4 S5.3、S1.5
S2.1.1、S2.1.2、S2.1.3、S2.1.4、S2.1.5、
Innovation-Driven
T42 S2.1.6、S2.1.7、S2.1.8、S2.1.9、S2.1.10、 S1.3、S1.4、E1.3
Development
S2.1.11、S2.1.12、S2.1.13
Ethics of Science and
T43 \ \
Technology
122Shenzhen Yinghe Technology Co. Ltd. 2025 Environmental Social and Governance (ESG) Report
The ESG Indicator
Self-Regulatory Guidelines
System for State-
No. 17 for Companies
Owned Listed
Listed on Shenzhen Stock CASS-ESG 6.0: Special Equipment
Contents Companies in
Exchange—Sustainability Manufacturing Industry
Shanghai (Version
Report (For Trial
1.0) issued by the
Implementation)
Shanghai SASAC
Supply-chain S3.1.1、S3.1.2、S3.1.3、S3.1.4、S3.1.5、
T45、T46 S3.1、S3.2
Cooperation S.3.2.1、S.3.2.2
Rural Revitalization T39 S1.1.1、S1.1.2、S1.1.3、S1.1.4、S1.1.5 S5.1
S4.1、S4.2、S4.3、
S1.2.1、S1.2.2、S1.2.3、S1.2.4、S1.2.5、
Social Contributions T40 S5.1、S5.2、S5.3、
S1.2.6
S5.4、S5.5
Governance
G1.2、G1.3、G1.4、
Corporate Governance T53 G1.3.1、G1.3.2 G1.5、G1.6、G2.4、
G2.7、G2.8
Integrity and Anti- G2.1.1、G2.1.2、G2.1.3、G2.1.4、G2.1.5、
T55 G1.7
Corruption G2.1.6、G2.1.7、G2.1.8
Fair Competition T56 G2.2.1、G2.2.2、G2.2.3 G1.8
Party Building \ \ G1.1
Appendix
ESG Data Table \ A2 \
Cross-Reference Index
T57 A3
Table \
1232025 Environmental Social and
Governance (ESG) Report
Shenzhen Yinghe Technology Co. Ltd.
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