CONTENTS 03 Innovation-Driven Growth People-Centric DevelopmentFortifying Core Values 04 Upholding the Safety Bottom Line

Strengthening Innovation Capabilities 63 Fostering Employee Growth 71

Translating R&D Excellence 64 Fortifying Safety Foundation 85

Protecting Intellectual Property Rights (IPR) 67

About This Report 03 SPOTLIGHT

Chairman's Statement 05

About SACA 07 Spotlight I: Embracing Green Growth with

Low-Carbon Initiatives 05 Corporate Citizenship19ESG Management 13 Creating Shared Social ValueSpotlight II: Embarking on a New Digital

Journey Driven by Intelligence 27

Key Performance Indicators 111

Implementing Stringent Quality Standards 93

Appendix I: Content Index 118

Deepening Customer Service Excellence 97

Implementing Responsible Procurement 99 Appendix II: Feedback Form 119

Committing to Social Contribution 107

01 Responsible Governance 02 Environmental StewardshipPartnering for Future Prosperity Safeguarding the Ecosystem

Consolidating the Foundation of Governance 35 Addressing Climate Change 45

Standardizing Corporate Operations 38 Environmental Compliance Management 50

Efficient Resource Utilization 56ABOUT THIS REPORT

About This Report

Report Overview Reporting Standards

This report is the inaugural Environmental Social and Governance (ESG) report released by Guangdong SACA Precision This report is prepared in reference to domestic and international ESG frameworks including Self-Regulatory Guide for GEM

Manufacturing Co. Ltd. This report discloses the Company's performance in environmental social and governance (ESG) areas Listed Companies No. 3 – Preparation of Sustainability Reports (2026 Revision) and Self-Regulatory Guidelines for Listed

to stakeholders based on the principles of objectivity standardization transparency and comprehensiveness. Companies No. 17 – Sustainability Report (Trial) issued by the Shenzhen Stock Exchange the Sustainability Reporting Standards

(2021 Version) issued by the Global Reporting Initiative (GRI) and the IFRS Sustainability Disclosure Standards issued by the

International Sustainability Standards Board (ISSB). Meanwhile it stays grounded in the industry context while highlighting the

Company's unique characteristics.Reporting Period

Abbreviations

Unless otherwise specified the report covers the period from January 1 2025 to December 31 2025. Some contents may go

beyond the mentioned period to ensure the completeness and comparability of the report.Full Name Abbreviation

Guangdong SACA Precision Manufacturing Co. Ltd. SACA the Company we

Reporting Boundary Guangdong SACA Innovation Technology Co. Ltd. SACA Innovation

Qingyuan SACA Precision Manufacturing Co. Ltd. Qingyuan SACA

This report covers Guangdong SACA Precision Manufacturing Co. Ltd. and its wholly-owned subsidiaries. The scope of data

disclosure is consistent with the consolidated financial statements of the Annual Report. Any differences in the boundary will be

explained in the report.Reliability Assurance

We ensure that the content in this Report is true accurate and complete without false records misleading statements or

Data Sources material omissions and assume responsibility for the authenticity accuracy and completeness of its content.All information and data in this report are sourced from

the Company's official documents publicly disclosed

documents and internal statistics. The financial data in Report Publication

the report comes from the audited financial statements

mentioned in the 2025 Annual Report. The monetary

amounts in the Report are expressed in RMB unless This report is published in PDF electronic format. You are welcome to visit the official website of Guangdong SACA Precision

otherwise specified. Manufacturing Co. Ltd. (https://sh-abc.cn) for more information and to download the report.

03 04Chairman's Statement

Chairman's Statement“ Empowering the Ecosystem through Synergy Demonstrating Responsibility through Action.In 2025 the manufacturing industry rode the wave of high-end intelligent and green transformation. Anchored in its Deeply rooted in the industrial ecosystem we remain customer-centric. By establishing a full-cycle service corporate mission "to provide affordable safe and comfortable home hardware products for all" SACA leveraged over mechanism spanning demand matching R&D and after-sales support we accurately address tailored and high-endthree decades of experience in the hardware industry and moved forward with innovation and dedication writing a new needs continuously enhancing customer satisfaction and brand loyalty. Simultaneously we implement a responsible

chapter of high-quality development. procurement system conducting compliance and green qualification audits for suppliers across the value chain.By empowering partners through technical guidance and shared standards we lead the entire industry chain in

Starting as a basic hardware manufacturer SACA has combined its core hardware business with cross-border

embracing green and compliant practices. We prioritize employee growth by optimizing the work environment and

e-commerce encompassing areas such as smart furniture household appliances and whole-home customization; from

safety protocols. We also refine compensation benefits training and promotion systems to build a platform for shared

sporadic CSR practices to systematic sustainable development our growth at every step has been inseparable from the

growth. Externally we actively engage in public welfare initiatives poverty alleviation and environmental advocacy

ultimate pursuit of quality the unwavering commitment to innovation as well as the trust and expectations of customers

demonstrating corporate care through concrete actions and delivering on our social responsibility commitments.shareholders and the broader community. This inaugural sustainability report serves both as a comprehensive review of

past practices and a solemn commitment to the future.Strengthening Foundations through Standardized Governance

Driving Upgrades via Digital Empowerment.We continuously optimize our corporate governance structure and operational mechanisms while clarifying lines of

authority. Upholding transparency and integrity we enhance our full-process compliance and risk prevention systems

Deepening the Core Business to Build a Strong Foundation strengthen internal audits and integrity controls and standardize information disclosure to safeguard the legitimate

Embracing Green Transformation as Our Defining Feature. rights of all stakeholders. Integrating ESG principles into its development strategy we have established a systematic

ESG governance mechanism and conduct regular reviews to optimize performance. Meanwhile we work to deploy

We always pursue green development in our core business as the foundation for high-quality growth. Focusing on digital systems such as ERP and SMOM to eliminate data silos. These digital tools enhance production efficiency

such core products as intelligent hinges and slides in high-end precision hardware SACA has empowered full-process control accuracy and operational agility driving the synergistic advancement of business and ESG performance to

control with automated production lines and the MES system delivering consistent quality products to globally fuel global expansion.renowned customers and improving both business volume and quality. In active response to the strategy of carbon

peaking and carbon neutrality the Company promotes the construction of photovoltaic power stations and widely A New Journey A New Mission. At this new starting point SACA will stay true to our founding mission in

advocates resource recycling in the e-commerce field. We ensure green low-carbon products through high-standard manufacturing while building on this sustainability report. We will deepen our focus on core businesses accelerate

compliance integrating green manufacturing throughout our operations. green transformation digital upgrades and industrial chain synergy while steadily expanding our global footprint.With unwavering determination and a pragmatic approach we will work with all stakeholders to build a high-quality

efficient industrial ecosystem empowering industry upgrades through precision manufacturing and starting a new

chapter for our high-quality development.Chairman of Guangdong SACA Precision Manufacturing Co. Ltd.Cai Gengxi

05 06About SACA

About SACA Organizational Structure

Strategy and ESG Committee

Board of Shareholders

Nominations Committee

Company Profile Board of Directors Directorate Secreatary Securities Dept

Remuneration & Evaluation Committee

Founded in 1994 and headquartered in Shunde Foshan Guangdong SACA Precision Manufacturing Co. Ltd. is a national-level Senior Management

high-tech enterprise listed (stock code 300464) on the Shenzhen Stock Exchange in June 2015. With subsidiaries in Italy the Audit Dept Audit Committee

US Germany France Japan Hong Kong (China) and cities like Changsha Shenzhen and Qingyuan in the Chinese mainland we

operate in home hardware manufacturing consumer product design and brand management.As a key player in the home hardware sector the Company focuses on the R&D manufacturing and sales of core products such

as slides and hinges. With a well-established network of service providers agents and distributors across major Chinese cities

its quality products are sold to over 50 countries and regions meeting the diverse needs of global consumers. It has forged a

distinctive model of "Made in China + Global Delivery."

Business Layout

The Company operates globally with two core segments: home hardware and cross-border e-commerce.Precision Home Hardware

The Company focuses on core categories Cross-border E-commerce

like slides and hinges while delivering diverse

hardware products for kitchen bathroom and The Company operates globally by maintaining a

storage applicationswhich are widely used in presence on online platforms like Amazon and Walmart

custom furniture appliances bathrooms and while connecting offline chain stores and dealers like

automobiles. The Company works to lead the way Best Buy and Costco. In this way its products for smart

with intelligent high-quality products and grow appliances power supplies computer and mobile phone

into a benchmark service provider in high-end peripherals and furniture are sold to core markets

home hardware. in North America Europe Japan and the Middle

East. SACA has established a development pattern

of "expanding global presence through cross-border

channels based on the solid foundation of hardware

manufacturing."

0708

Audit and Legal Affairs

Department

Strategic Investment

Department

Human Resources

Department

Financial Management

Department

Cross-border

E-commerce Division

Home Hardware

DivisionAbout SACA

Corporate Culture History Timelines

SACA Corporate Culture

Founded in Shunde to produce hinges.

1994

Corporate Mission

To provide safe comfortable and Started the slide business.high-quality yet affordable home 2002

hardware products for all

Corporate Vision Renamed Guangdong SACA

Hardware Manufacturing

To be a world-leading manufacturer Co. Ltd. after finalizing a

of home hardware products capital increase plan.Core Values

2009

Pragmatic Integrity Professional

Dedication Continuous Innovation

Shared Growth

Brand Philosophy

To create a century-old brand for 2010

families worldwide with well-crafted

hardware products

Business Philosophy

Market-Led Technology-Driven Renamed Guangdong SACA Precision

Quality-Based and Innovation- Manufacturing Co. Ltd. after a successful 2015

Propelled share-holding system reform.Management Philosophy

Qingyuan Production Base went into

Scientific Management and operation.Systematic Operation; maximizing

talent potential and resource utility

Listed on the Shenzhen

Manufacturing Philosophy Stock Exchange.

2017

Digitalized Intelligent and

Eco-friendly

Service Philosophy

Meticulous Attentive Dedicated

Considerate and Patient 2018

Cooperation Philosophy Acquired the Italian

Respecting customers and company Donati

understanding suppliers to foster shared bringing global Closed a private placement

growth through win-win partnerships expansion to a new level. of RMB 500 million to realize 2023 robust growth.Acquired Sunvalley

Group to start cross-

border e-commerce.

09 10About SACA

Honors and Awards

2025 Honors and Awards 2025 Honors and Awards for Subsidiaries

Top 500 Manufacturing Enterprises in Qingyuan SACA – 2025 Innovative SME

Guangdong (No. 246)

2025 Top 100 Enterprises (No. 63) Top 100 SACA Innovation – Work Safety Standardization Qingyuan SACA – High-tech Enterprise

2025 Top 30 Foshan Enterprises in Manufacturing Enterprises (No. 43) and Top 100 Level III Enterprise (Light Industry)

Globalization (No. 6) Private Manufacturing Enterprises (No. 39) in Shunde

SACA Innovation – 2025 Tech-based SME

Specialized and sophisticated SMEs that produce

novel and unique products SACA Innovation – 2025 Innovative SME

High-tech Enterprise SACA Innovation – High-tech Enterprise

11 12ESG Management

ESG Management

SACA ESG Governance System

ESG Governance Structure

Review and approve ESG strategies goals and annual plans;

SACA has established a well-defined ESG governance structure with clear roles and responsibilities. By formulating the Rules

of Procedure for the Strategy and ESG Committee it has built a full-chain ESG management system featuring tiered decision- Strategy Oversee the identification and management of significant ESG risks while providing

making professional coordination and collaborative implementation. and ESG guidance on related opportunities;

Committee

The Strategy and ESG Committee is the supreme decision-making and oversight body for ESG governance holding ultimate Approve major ESG projects;

approval authority over ESG matters. Its responsibilities encompass approving ESG strategies goals and plans overseeing

Approve the external release of ESG reports.procedures to identify assess manage and control risks and opportunities evaluating executive performance against ESG

targets and approving major projects and disclosures. The President's Office acts as the lead department for ESG coordination

and execution overseeing policy formulation target setting cross-departmental collaboration data management key project

implementation and external disclosure. The ESG Working Group comprising representatives from production supply chain

EHS and HR is responsible for the specific implementation and execution of ESG initiatives. The Company also leverages

external intellectual support engaging industry experts and consulting firms to provide professional advice and training thereby

enhancing the scientific rigor and transparency of its ESG management system. Organize research and draft ESG strategies goals and annual plans for Board review;

In addition the Company has integrated ESG performance indicators such as environmental and safety management into Systematically identify and assess significant ESG risks and opportunities and report

executive appraisals to drive initiative and capability for sustainable development. ESG Lead findings to the Board;

Department

(President's Coordinate with the management and functional departments to advance major ESG

Office) projects;

Track progress of ESG goals and provide data support for the Board's performance

evaluation of management;

Coordinate major ESG projects and organize the preparation of ESG reports in

alignment with Board requirements.ESG Execute ESG-related tasks within respective departments and facilitate cross-

Working departmental collaboration.Group

External

Engage industry experts and consulting firms to provide professional advice and

Intellectual

training.Support

13 14ESG Management

ESG Strategic Roadmap Stakeholder Communication

Driven by core capacity building for high-quality sustainable growth SACA has formulated its Three-Year Strategic Plan (2026- SACA prioritizes stakeholder engagement and collaboration. By establishing normalized and efficient engagement mechanisms

2028). Anchored in long-term commitment to value creation the Company takes concrete actions to benefit the planet society with stakeholders including government regulators industry associations shareholders investors employees customers

and the industrial ecosystem achieving a more sustainable future. suppliers and the communities the Company identifies expectations and responds to concerns creating greater value while

enhancing ESG performance.Stakeholders Expectations & Concerns Response Method

*Responding to national strategies *Implementing national policies

*Engaging in compliant operations *Maintaining operational compliance

Government *Leading industry development *Promoting technological innovation and R&D

Regulators and

Focusing on home hardware and functional components SACA works to deliver *Supporting regional economic development *Fulfilling tax obligations

Industry Associations

systematic solutions for core scenarios and build a long-term competitive advantage

Strategic Vision through "consistent quality reliable delivery and scale efficiency." The Company

strives to be a trusted contributor and a long-term partner to the global ecosystem.*Creating steady value *Ensuring long-term shareholder returns

*Protecting shareholder rights *Hosting investor meetings

Shareholders and *Transparent information disclosure *Improving information disclosure quality

Investors *Enhancing corporate governance *Strengthening governance mechanisms

For the Planet: Leveraging For Society: Upholding For the Industrial

green manufacturing and employee development Ecosystem: Leveraging

efficiency improvements and work safety as bottom systematic capabilities and

*Protecting employee rights and interests *Holding employees' representative congresses

to minimize resource lines to ensure user safety standardized collaboration

Long-term Value *Providing competitive compensation and *Optimizing the compensation and benefits consumption and and customer stability to drive supply chain quality

Commitments benefits systemenvironmental footprint through high-quality and efficiency and compliance

*Employee career development *Broadening promotion channels

reliable delivery fostering a more resilient Employees

*Occupational health and safety *Ensuring employee health and safety

industrial community

*Employee care and well-being *Enriching employee activities

Business & Product Manufacturing & R&D & Innovation Market & Customer *Product quality and safety *Improving the quality management system

Strategy Operations Strategy Strategy Strategy *Strengthening customer relationship *Actively responding to customer concerns

management *Protecting customer privacy

Customers *Protecting customer rights *Conducting customer satisfaction surveys

Transitioning from Building industry Demand-driven Fostering a

Core Strategic Single Product trust through iteration to promote healthier customer

Paths Advantage "delivery reliability" more durable ecosystem oriented *Implementing responsible procurement

to Systemic while enhancing reliable and towards long-term *Integrity and mutually beneficial cooperation *Implementing open and transparent business

Capabilities resource efficiency sustainable products cooperation *Adhering to business ethics principles

Suppliers *Promoting supply chain sustainability *Optimizing the supplier management system

*Actively participating in public welfare

*Supporting public welfare

*Engaging in volunteer services

*Focusing on community development

Communities *Creating job opportunities

15 16ESG Management

Materiality Assessment SACA 2025 Materiality Matrix

Rooted in the "Double Materiality" principle SACA conducts its ESG materiality assessment from two dimensions: how

sustainability topics affect its business (financial materiality) and how its business performance impacts the economy society Employees

and environment (impact materiality). This approach determines ESG priorities. Product Quality and

Responsibility

Supply Chain Security

Materiality Assessment Process and Resilience Climate Change

Mitigation and

Data Security and Adaptation

Privacy

Identifying topics with significant impacts on corporate value based on industry and Due Diligence Anti-corruption and

Topic business characteristics and business model and value chain position Anti-bribery

Waste management

Identification Anti-unfair Identifying topics where the Company's performance has a significant impact on the Competition

economy society and environment Environmental compliance Innovation-driven

management Development

Pollutant Emissions

Technology Ethics

Use of Water Resources

Energy Efficiency and Management

Circular economy Stakeholder communication

Fair Treatment of SMEs

Biodiversity and

Distributing online questionnaires to gather views of internal and external stakeholders on Ecosystem ProtectionTopic Survey Rural Revitalization Social Contribution

the materiality of ESG topics

Financial Materiality

Prioritization Assess and rank material topics based on survey results to develop a materiality matrix Environmental Dimension Social Dimension Governance Dimension

Confirmation and

Submitting results and the matrix to the ESG Working Group for review and confirmation

Review

1718

Impact MaterialitySpotlight

Spotlight I Amid the global wave of sustainable development and the implementation of carbon peaking and carbon neutrality in

China SACA integrates the concept of green development into its top-level strategic design and full-process business

practices while keeping a strong foothold in home hardware. The Company has established a multi-dimensional

Embracing Green Growth with development system pursuing leadership through low-carbon strategies underpinning business success through

product innovation empowering growth with clean energy solutions and implementing a closed-loop system for resource

Low-Carbon Initiatives recycling. As a specialized and sophisticated SME that produces novel and unique products in Guangdong the Company actively responds to the requirements of the Guangdong Province Circular Economy Development Implementation Plan

(2022-2025). By undertaking tangible transformation measures it fulfills its corporate social responsibility and provides a

practical and replicable model for green industrial upgrading.Strategic Leadership: Anchoring Long-term Goals

and Paving the Way for Green Development

To set an industry benchmark SACA sets challenging yet achievable quantitative targets in core areas of clean energy

resource circulation and green products in response to the national carbon peaking and carbon neutrality goals and industry

Putting green transformation at the center of corporate development SACA systematically advances low-carbon development transformation trends injecting enduring momentum into the Company's sustainable development.through a three-phase path: short-term foundation building medium-term breakthrough and long-term leadership. Clear and

quantifiable goals demonstrate its determination for transformation and industry responsibility.SACA Core Green Development Targets

Three-Phase Implementation Path of SACA Green Development Strategy Target Dimension Content Progress

*Complete full-chain carbon accounting and set science-based emission reduction targets

*Initiate factory energy-saving retrofits and establish a clean production system

Short-term Achieve 100% green power coverage in Achieved

production in select plants by 2024

*Cross-border business team to establish an inventory of green regulations for major Clean Energy

global markets

Finished hardware products are

Achieve 100% renewable resource shipped with paper pallets instead

*Achieve green certification for all core products utilization across the full value of traditional wooden ones and

chain by 2030 woven bags are reused to achieve

Resource Circulation

*Implement a green screening mechanism in the supply chain to deepen circular economy material circularity

Medium-term practices

*Efficiently operate green product zones in cross-border e-commerce; strengthen ESG

communication Achieve large-scale application of raw Raw materials containing over 95%

materials containing over 95% recycled recycled steel have been introduced

Green Products steel in core products by 2026 into production

*Achieve carbon neutrality in manufacturing operations

*Green products to account for ≥40%; achieve industry-leading resource circulation

Long term Gradually introduce new materials

efficiency Complete carbon label certification for with carbon label certification into

core products by 2026

*Make ESG a core brand competitiveness; solidify the industry's green leadership Low-Carbon Certification core product manufacturing

19 20Spotlight

Product Innovation: Embedding Green Genes Nebula Pull-out Cabinet Organizer Series – High space utilization enhances sustainability

and Ensuring Low-Carbon Source

The Nebula series utilizes a

multi-tier sliding mechanism

for opening and closing. Its

flexible combinations achieved

Emphasizing a full lifecycle carbon reduction approach SACA integrates green concepts throughout product design material through guide rail modules

selection and manufacturing. This approach reduces environmental impact at the source while keeping the bottom line of quality maximize space utilization and

and compliance. reduce material consumption.S AC A's c o n c e a l e d s l i d e s

When designing hardware products the Company moves beyond the traditional function-oriented limitations and integrates with synchronized soft-close

circular economy concepts. The design of its core products such as high-end slides and hinges focuses on optimizing mechanisms ensure smooth

durability and high load-bearing performance. Through structural and process innovations material consumption is reduced collision-free operation thereby

fundamentally lowering product replacement frequency and the full-lifecycle environmental footprint; to align with the industry significantly enhancing safety.trends of easy recyclability and circularity the product design incorporates easy-to-disassemble features laying a solid

foundation for subsequent resource recycling and regeneration.In material selection the Company has established strict green screening standards and upgrading systems. Currently its high-

end products widely utilize eco-friendly materials such as 304 stainless steel. Its excellent corrosion resistance and structural

stability extend product life and reduce resource consumption. By gradually replacing traditional coatings with low-carbon During the reporting period the Company actively promoted the large-scale application of recycled materials with a particular

materials the Company works to eliminate the release of hazardous substances at the source embodying its product philosophy focus on verifying the feasibility of using raw materials comprising over 95% recycled steel. Among them trial production

of "Built to Last." utilizing select high-recycled-content raw materials proceeded smoothly and these materials have been officially introduced into

mass production.Key Target

Sustainable Product Design Cases in the Hardware Business

By 2026 the Company plans to scale the application of 468 tonnes of raw materials containing over

MZ Tandem Box – Quick-assembly and disassembly design reduces resource waste 95% recycled steel assisting partner clients in achieving their renewable resource utilization goals.The MZ Tandem Box features a 3D six-way adjustment system that allows for comprehensive positioning simplifying

the installation process; it features an innovative tool-free assembly and disassembly system and optimized panel

structure enabling quick detachment of the entire drawer via integrated locking mechanisms. This reduces resource

waste during installation extends the product lifespan minimizes unnecessary resource consumption throughout its

lifecycle and enhances overall sustainability.Quick-release panel

Trial Production Site for Raw Materials Comprising over 95% Recycled Steel

21 22Spotlight

Spotlight

In the cross-border e-commerce segment the Company has guaranteed compliant and certified products across major global

markets. Specifically 100% of products for the European market comply with RoHS regulations; products supplied to the U. S. Key Performance Indicators

market fully meet California Proposition 65 and CPSC safety standards; and all domestically sold products have passed national

environmental standard verifications. By building a multi-dimensional compliance assurance system the Company has laid a

solid green foundation for its global expansion.The Company's PV system generates an average of 2071.4 MWh

Case Study of Certified Overseas E-commerce Products

annuallywith the potential to avoid around 1099.08 tCO2e.Baby Night Light

Baby Night Light has secured multiple authoritative certifications including

U. S. FCC European RoHS UK UKCA as well as air and sea transport

appraisal reports. Across the entire process from raw material selection

and production control to finished product testing the Company strictly

adheres to the environmental entry requirements of target markets. This Building on its PV system the Company

high-standard compliance safeguards the product's green attributes and fur ther developed a smart energy

low-carbon footprint ensuring full alignment with safety and environmental storage system and a suppor t ing

regulations in major sales regions worldwide. management platform. By harnessing

energy storage technologies SACA

e n h a n ce s i t s r e n e wa b l e e n e rg y

absorption capacity reduces reliance on

purchased electricity and optimizes its

energy consumption structure. In this

way it can expand renewable energy

Energy Transition: Building a Cleaner Production applications cut greenhouse gas (GHG) emissions and drive improvements

System with Clean Energy Alternatives in both energy self-sufficiency and SACA's Smart Energy Storage Management Platformutilization efficiency.The Company also actively promotes

Focusing on energy structure optimization SACA builds a clean manufacturing system of low consumption and high efficiency

energy substitution. Firstly in select

through clean energy substitution energy-saving retrofits and efficiency improvements. This drives tangible results in the green

plants all conventional 3T diesel forklifts

transformation of its production processes.have been completely replaced with

In clean energy deployment the Company has installed rooftop electric models significantly reducing

photovoltaic (PV) power generation systems across its facilities carbon emissions and environmental

boasting a total installed capacity of 1849.46 kW. The system pollution associated with diesel use;

operates on a self-generation and self-consumption model with secondly energy-efficient equipment

surplus power fed into the grid. The estimated power generation has been widely deployed across the

over 20 years will total 41447.3 MWh with an average annual facilities to optimize auxiliary systems

generation of 2071.4 MWh. The generated electricity is first used such as venti lat ion and l ighting in

in plant production while surplus power is fed into the Guangdong workshops . Th i s imp lementa t ion

Power Grid. This achieves the efficient utilization of renewable of energy-saving technologies and

energy and provides stable green power support for clean equipment mitigates non-production

manufacturing. energy consumption. This multi-pronged

approach significantly boosts energy

Furthermore during the reporting period the Company purchased efficiency and makes clean production Electric Forklifts in the Workshop

527 Green Electricity Certificates (GECs) achieving full green more refined and efficient.

power coverage in a standardized and compliant manner. This

highlights its firm commitment to deep decarbonization. Rooftop Photovoltaic Panels at the SACA's Facility

23 24Spotlight

Resource Circulation: Building a Circular Usage of Production Raw Materials and Packaging Materials

Economy Ecosystem in Full-Chain Synergy Indicator 2025 Value

Metal consumption (tonnes) 72538

Adhering to the principle of "efficient resource utilization and waste minimization" SACA has established a full-chain resource Wood consumption (tonnes) 1200

circulation system encompassing production packaging logistics and the supply chain ensuring that circular economy

concepts are fully implemented.Packaging carton consumption (tonnes) 3767

In the packaging phase resource consumption

Packaging plastic consumption (tonnes) 1291

for e-commerce products is minimized by

optimizing dimensions and design with priority

given to recyclable paper materials. Where plastic

is unavoidable biodegradable and eco-friendly SACA's Green and Low-Carbon Actions and Achievements

alternatives such as blister packaging and EPE

foam packaging are used; electronic manuals

are used to replace physical paper versions Lead product design with circular economy concepts prioritizing durability and recyclability

drastically reducing paper consumption and optimization;

waste generation at the source. A "plastic-free Green Preferentially select eco-friendly and recycled materials; advance the large-scale application of

and reduced wood" mandate is enforced in select Products green alternatives such as 95% recycled steel;

plants for shipping hardware goods. Paper pallets Establish a full-chain green compliance system to ensure products meet the environmental

are used in place of traditional wooden ones regulations of major global markets.and carton boxes are sealed with eco-friendly

adhesives rather than iron staples thereby

significantly minimizing the environmental Usage of Paper Pallets During Shipping Deploy renewable energy projects such as PV power stations and combine them with GEC

footprint of packaging. procurement to forge a "self-generation + compliant offset" model thus achieving 100%

green power coverage for manufacturing in select plants;

Construct smart energy storage systems to enhance renewable energy absorption Clean

In logistics the Company has made innovative upgrades to its packing methods and algorithms shifting from the traditional

capacity curb dependence on purchased electricity and continuously optimize the energy Energy

FCL (Full Container Load) to LCL (Less than Container Load) while integrating an AI-driven optimization algorithm. Through

consumption structure;

intelligent calculations container utilization rates are significantly enhanced and overall transport batches and carbon emissions

Push forward energy-saving retrofits for production equipment and clean energy

reduced. To meet product dimension requirements of online platforms the Company devises optimal packing quantity and size

substitution and promote refined energy management.configurations for each SKU. This approach not only guarantees transport safety but also curtails logistics costs and packaging

material waste thus achieving both environmental and economic benefits.Regarding production scrap recovery the

Promote the application of recyclable and biodegradable packaging materials; optimize packaging

Company has established collaborative

design to achieve source reduction;

recycling channels. Empty woven bags Resource

Establish classification recycling and circular reuse mechanisms for production scrap; strengthen

previously holding electroplating materials Circulation

green synergy across the supply chain through measures like green supplier screening and cross-

are collected daily during material turnover

border circular packaging initiatives aiming to minimize the full-chain environmental footprint.and transported to Qingyuan for secondary

use ach iev ing the c i rcu lar reuse of

packaging materials; other manufacturing

waste such as metal offcuts is sorted

recycled and processed for repurposing. Anchored in full-chain carbon reduction SACA works to construct a closed-loop low-carbon system spanning from product

This boosts resource circulation efficiency inception to resource end-of-life. As a pioneer of green transformation in the home hardware sector SACA upholds its "Born

and solidifies our commitment to circular Green" ethos and deepens its green strategy. With firmer resolve more pragmatic measures and an open posture the Company

economy practices. actively fulfills its CSR commitments and drives industry-wide green upgrades moving toward its 2030 vision of 100% renewable

Secondary Utilization of Woven Bags After Transit resource utilization across the full value chain. SACA pledges to contribute its wisdom and strength to global sustainable

development ultimately forging a green brand that embodies ecological economic and social value alike.

25 26Spotlight

Spotlight II

As the digital economy is deeply woven into the manufacturing sector SACA works to make its business fully digital and

processes more intelligent through the dual engines of digital platforms and automated equipment thus driving digital

Embarking on a New Digital transformation across the entire value chain. By dismantling data silos optimizing manufacturing processes and fostering

industry-academia-research collaboration SACA has architected a modern efficient data-driven and intelligently

Journey Driven by Intelligence iterative operational system. As a result the Company has gained strong momentum to pursue quality development and

set a benchmark for digital transformation in the industry.Digital Platforms: Full-Chain Integration

for a Collaborative Operation System

Digital management for operations such as production planning shop-floor execution

quality inspection mold tracking and equipment management renders the entire

Targeting core business scenarios SACA has built a digital matrix production process transparent and highly visibleSMOM (Smart

spanning the entire value chain. With digital control throughout Manufacturing Processes like labor reporting material requisition consumption tracking inbound quality

the process from R&D design and manufacturing to supply chain Operations inspection and data transmission go paperless. Data is collected in real time and is fully

management and office collaboration SACA has improved both Management) traceable accelerating response to anomalies

operational efficiency and refined management. To date the Company Platform

has established a robust and efficient application system network Manual statistical workloads for frontline workers are eliminated substantially enhancing

enabling the deep interconnection of large-scale equipment both production efficiency and process control capabilities

personnel and IT systems. Automated data collection now covers 12

major business processes including marketing management after-

sales service production control and quality assurance. Enables centralized digital management of documentation related to product R&D design

and engineering processes

Key Performance Indicators PLM (Product R&D documentation and material data are standardized with clear traceable version Lifecycle controls that bolster overall efficiency

Management)

Platform

80% Cross-departmental data sharing is streamlined mitigating duplicate coding and design During the reporting period over of business processes have been managed errors. This shortens the R&D and time-to-market cycles for new products and makes data

management rigorously controllable

digitally while the rate of digitalized production equipment neared 80%. Following digital

transformation the average monthly product pass rate rose year-on-year from 98.56% Facilitates the centralized integration and visual dashboard display of core metrics

99.54% spanning production finance and salesto manifesting a significant surge in overall operational efficiency.

BI (Business Automatically generates comprehensive reports by consolidating scattered data from

Intelligence) Data multiple business systems replacing tedious manual aggregations and ensuring real-time

Visualization accurate and easily accessible data

Platform

Case Studies of Digital System Implementation Empowers management to intuitively grasp the business status at a glance significantly

boosting data analysis efficiency and ensuring scientific timely business decisions

Core business processes have been digitized and standardized. Production procurement Office automation and HR management workflows are fully digitized ensuring agile and

inventory and financial data are interconnected and shared in real time curtailing offline standardized approval processes

reconciliations and redundant communications

OA e-HR The API platform dismantles information silos and facilitates seamless data exchange

ERP System Inventory accuracy is improved cost accounting becomes more standardized and API Platform between systems. Concurrently the Master Data Platform harmonizes foundational data

granular and the efficiency of automated financial bookkeeping is markedly elevated Master Data Platform etc. (materials clients suppliers) to guarantee a single source of truth across the company

Approval workflows are traceable internal controls tightened and operational data This drives up overall operational efficiency with data accuracy and system interoperability

queried in real time offering robust support for managerial decision-making markedly enhanced

27 28Spotlight

Automation Upgrade: Smart Manufacturing

Laser Sensor Inspection CCD Intelligent Sorting

Pioneers a New Paradigm of Lean Production

With one end of the product as a fixed datum Detects defects in materials passing under the lens

laser reflection measures the reflected distance to empowered by machine vision systems eliminating

Guided by the core strategy of automation and upgrades SACA determine product dimensions eliminating manual the bottlenecks of slow manual sorting and missed

scales up smart manufacturing input for full-process intelligence gauge checks and boosting dimensional inspection detections

and unmanned operations at critical links. By deploying automated efficiency

equipment optimizing processes and innovating operational models

across inspection production and packaging the Company has

established an intelligent system covering the entire chain. This

comprehensive overhaul drives an exponential leap in production

efficiency product quality and resource utilization cementing a

robust hardware foundation for smart manufacturing.In terms of intelligent inspection the Company has engineered a

multi-dimensional end-to-end smart inspection matrix with six

core inspection methodologies. It guarantees quality control across

production scenarios improving inspection precision and efficiency

beyond the reach of traditional modes.Applications of Intelligent Inspection Technologies

Probe Inspection 0V Contact Inspection CCD In-Line Inspection Volumetric Dosing Monitoring

Employs probes to access internal product As metals are conductive a circuit is closed upon Captures real-time imagery to monitor material Regulates oil dispensing via volumetric valves to

structures and verify component installation status. probe contact to verify if the product is correctly feeding during production. It promptly flags ensure consistent controllable lubrication and

It is ideal for confined spaces where traditional seated. Rather than fragile traditional sensors it issues such as missing ball bearings during avoids volume fluctuations caused by air pressure

sensors cannot be mounted ensuring components minimizes sensing distance discrepancies and assembly preventing defective units from flowing variat ions. I t guarantees robust production

are securely positioned improves positioning accuracy downstream and triggering rework consistency

29 30Spotlight

To maximize end-to-end efficiency and optimize costs SACA pursues process optimization and equipment upgrades in core Furthermore to surmount core technological bottlenecks and deepen its smart manufacturing prowess the Company actively

production processes. Through targeted automation innovations in critical workflows the Company is moving toward a new pursues industry-academia-research collaborations. By establishing innovation platforms with universities SACA leverages

manufacturing paradigm that is flexible and highly efficient. external intellectual capital to accelerate technological iterations and industrial upgrading.Smart Manufacturing Cases

Case Collaborative Automation Research with Jiangxi University of Science and Technology

Connected Process Innovation

SACA has forged a close partnership with Jiangxi University of Science and Technology co-founding the "Equipment

Automation Research Institute" and the "Automated Manufacturing Research Institute." The institutes bring together

Seamlessly integrates slide rail stamping into an

120 technical experts to focus on the independent development of key process equipment. They integrate complex

inline connected process trimming manual material

and labor-intensive procedures into a unified automated solution and present core technologies in automation

placement and transfer steps. While directly slashing

and intelligent control equipment. They help the Company master the independent development of key process

labor costs this minimizes cosmetic damage during

equipment setting a paradigm for university-enterprise collaborative innovation.material handling and ensures stable product quality.This is how the Company improves efficiency and

quality with fewer staff

Case Visit to the 27th China Hi-Tech Fair

Automatic Feeding Systems

On November 14 2025 SACA organized its core

technical and management teams to visit the 27th

Automated feeding equipment specifically for guide/ China Hi-Tech Fair. Focusing on cutting-edge fields

slide rail assembly lines boasting wide compatibility such as smart manufacturing and the digital economy

with diverse materials and accommodating both the fair brought together thousands of global high-

sorted and unsorted incoming feeds. With streamlined tech achievements and industry benchmarking

debugging swift product changeovers and easy cases. The teams conducted targeted inspections

maintenance these systems effectively replace manual of exhibition areas featuring automated production

labor drastically alleviating labor intensity while equipment digital management systems and

boosting feeding speed and precision industry-academia-research collaborative innovation.They thoroughly studied advanced technology

applications and practical transformation experiences.This provided fresh perspectives for the Company's

subsequent digital and automation upgrades as well

as the expansion of innovative cooperation channels

Automated Packaging Lines thereby helping the Company consolidate its core

competitiveness in smart manufacturing.The Company has rolled out an end-to-end automated

packaging line from inspection to boxing. CCD vision

systems flag errors omissions and mixed parts. The

intelligent film-sealing wrappers feature one-touch

adjustments while conveyor carriers dispense Moving forward SACA will remain focused on smart manufacturing ramping up expenditure on R&D and equipment upgrades.materials at precise drop points. Robotic boxing By broadening and deepening its industry-academia-research collaborations the Company will explore new scenarios for flexible

replaces manual stacking integrated seamlessly with and unmanned production. With firmer resolve and more pragmatic measures SACA will propel itself toward higher levels of

smart weighing stations. This achieves unified control smart manufacturing ultimately forging an industry-leading brand in the digital era.over "inspection dispensing boxing and weighing"

holistically enhancing packaging efficiency and stability

313201

Responsible Governance

Partnering for Future

Prosperity

Consolidating the Foundation of Governance

Standardizing Corporate Operations

Contribution to the UN Sustainable

Development Goals (SDGs)Responsible Governance:

Partnering for Future Prosperity

Consolidating the Foundation Board of Directors Meetings Summary

of Governance Board Expected attendances of Proposals reviewed at Attendance rate of directors

meetings directors at General Meetings General Meetings at General Meetings

Standardizing Corporate Governance 4 28 28 100%

In strict compliance with applicable laws regulations and regulatory requirements such as the Company Law of the People's

Republic of China and the Code of Corporate Governance for Listed Companies in China SACA has established a top-down

governance structure characterized by clear roles and responsibilities and coordinated operations. The Board of Directors as General Meetings of Shareholders Summary

the core governance body is supported by four specialized committees: the Strategy and ESG Committee the Nomination

Committee the Remuneration and Appraisal Committee and the Audit Committee. Each performs its respective duties while

working in synergy laying a solid foundation for steady operations and long-term development. The institutional framework General Proposals reviewed at Expected attendances of Attendance rate of directors

including the Rules of Procedure for the Board of Directors and the Remuneration Management System for Directors and Meetings General Meetings directors at General Meetings at General Meetings

Senior Management has been improved to effectively ensure the efficient conduct of Board meetings and provide institutional

safeguards for the standardized operation of the Board. 2 16 14 100%

Organizational Structure of the Board of Directors

Specialized Committee Meetings Summary

Board of

Indicator 2025 Value

Directors

Strategy and ESG Committee meetings1 0

Nomination Committee meetings2 0

Strategy and ESG Nomination Remuneration & Audit Remuneration and Appraisal Committee meetings 1

Committee Committee Evaluation Committee Committee

Proposals reviewed by the Remuneration and Appraisal Committee 2

The Company firmly believes that Board diversity Audit Committee meetings 6

is a core pillar for enhancing operational quality

and efficiency and for realizing its strategic 2femal e

sustainabi l i ty goals. Meanwhi le i t places 7 3 Proposals reviewed by the Audit Committee 21directorsgreat emphasis on safeguarding and elevating directors independent

the effectiveness of Board decision-making. directors

Currently the Board comprises 7 directors who

possess diverse industry backgrounds and

profound academic expertise. This includes 3 During the reporting period the Strategy and ESG Committee performed its duties in strict accordance with the Articles of Association and

the Rules of Procedure for the Strategy and ESG Committee of the Board of Directors. As there were no major long-term strategic adjustments

independent directors and 2 female directors.significant investments and financing major asset restructurings or major capital operations requiring the Committee's review in 2025 no

The directors boast deep-rooted expertise and meetings were convened during the year. During the reporting period the Strategy and ESG Committee faithfully fulfilled its strategic supervision

rich practical experience in finance accounting and advisory duties by monitoring the execution of the Company's annual business plan industry development trends and the effectiveness of

corporate management and product ion strategy implementation.operations. Leveraging their diverse professional

perspectives and profound industry insights they During the reporting period the Nomination Committee performed its duties in strict accordance with the Articles of Association and the Rules of

ensure scientific and comprehensive support Procedure for the Nomination Committee of the Board of Directors. Since there were no re-elections supplementary appointments dismissals or

for major decisions thereby consolidating the qualification adjustments for non-employee representative directors or senior executives in 2025 no issues required the Committee's review and

thus no meetings were convened. During the reporting period the Nomination Committee continued to oversee the qualifications of the Company's

decision-making foundation for sustainable

non-employee representative directors and senior executives ensuring compliant and effective corporate governance.development.

35 36Responsible Governance:

Partnering for Future Prosperity

Facilitating Investor Communication Standardizing Corporate Operations

SACA actively fulfills its information disclosure responsibilities in strict adherence to the Information Disclosure Management

System and other regulations. It discloses information truthfully accurately completely promptly and fairly while also monitoring Upholding Business Ethics

daily public sentiment to ensure equitable and transparent information access for investors.In 2025 the Company maintained communication with investors through multiple channels and formats including the investor

SACA has established an effective integrity mechanism and formulated internal

hotline email and the SZSE Hudongyi platform achieving a 100% response rate. Furthermore it hosted two online earnings

anti-corruption and anti-bribery policies including the Regulations on the

presentations (for the annual and interim reports) and one offline institutional investor research session. These efforts sustained

Prevention of Commercial Bribery the Red Line Management System the

positive investor relations and bolstered the Company's corporate image.Code of Integrity for Employees and the Cadre Management Measures. The

Company actively encourages employees to sign the Commitment Letter for

Integrity and Self-Discipline participate in integrity culture training and study

the Commercial Anti-Bribery Law. By strictly prohibiting bribery in any external

Safeguarding Information Security business activities and strengthening integrity awareness SACA fosters a clean

upright and ethical corporate culture.The Company fortifies its technical barriers for information security by comprehensively deploying network and data security

products and services. It enforces stringent network access management via identity authentication deploys firewall systems

advances network zoning controls and achieves full coverage of antivirus software across all terminal devices. The Company Case SACA Conducted Anti-Corruption Training

has established a full-lifecycle protection system for data security implementing end-to-end control measures that include data

encryption backup recovery data masking and data classification. It conducts regular cybersecurity risk assessments both

internally and via professional third-party agencies thereby comprehensively safeguarding the Company's data and system

SACA conducted internal anti-corruption training. Focusing on typical internal corruption cases from recent years

integrity. In 2025 the Company experienced zero data breaches.the training provided an in-depth analysis of illegal and undisciplined behaviors such as occupational embezzlement

Furthermore the Company actively organizes specialized information security training and participates in internal and external commercial bribery and tunneling. Through case reconstructions data analysis and legal interpretations it vividly

authoritative exchange programs. By combining theoretical learning with practical discussions it enhances the information conveyed the damage corruption inflicts on the Company's finances and reputation alongside its devastating impact

security capabilities of all employees. This is how the two lines of defense in information security are built. on personal careers. This prompted employees to take heed and consciously abide by professional ethical standards.Case SACA Conducted Information Security Training

I n October 2025 SACA conducted

specialized training centered on two core

themes: "Personal Privacy Protection" and

"Data Breach Prevention." The session

not only systematically presented basic

information security knowledge and

clarified daily operational safety protocols

but also utilized practical case studies

to illustrate the critical importance of

information security to the Company's

s teady operat ions. Th is ef fect ive ly

bolstered enterprise-wide data protection

awareness helping to mitigate reputational

and operational risks stemming from data

breaches at the source.

37 38Responsible Governance:

Partnering for Future Prosperity

Anti-Corruption Training Summary Anti-Monopoly and Anti-Unfair Competition Framework

Indicator 2025 Value

Management 1

Training sessions Review and approve the Company's strategies goals and annual plans for anti-

Board of monopoly and anti-unfair competition

Employees 1 Directors

Oversee major compliance risks and opportunities

Management 1

Training hours

Employees 1

Management 5

Attendances

Employees 15

Establish and improve the Company's compliance management system against

Audit and Legal

Affairs monopoly and unfair competition

Department

The Company proactively broadens its multi-dimensional oversight by establishing public whistleblowing channels including Lead the formulation of the Company's major compliance management documents

dedicated email addresses and hotlines. It encourages employees to report directly to the Audit Department ensuring that these

oversight channels remain unhindered and efficient at all times. The Company is committed to maintaining strict confidentiality Organize and conduct anti-monopoly and anti-unfair competition training

regarding whistleblower information. It conducts swift verifications and timely follow-ups on reported matters and discloses Establish a compliance appraisal mechanism incorporating the results into overall

investigation outcomes and disciplinary actions in accordance with internal regulations thereby fully protecting the legitimate performance evaluations

rights and interests of whistleblowers.Set up internal whistleblowing channels to receive employee reports regarding

violations of anti-monopoly and anti-unfair competition regulations

SACA Whistleblowing Channels

Whistleblowing Hotline: 18923106016

Whistleblowing Email: xinghui@sh-abc.cn Implement anti-monopoly and anti-unfair competition requirements within their

All Business respective operational scopes

Departments

Identify and preempt related risks and collaborate with the Audit and Legal Affairs

Department in compliance management tasks

Upholding the principles of fair and free competition and adhering to relevant anti-monopoly and anti-unfair competition laws

and regulations SACA has formulated the Anti-Monopoly and Anti-Unfair Competition Policy. The Company strictly prohibits

reaching monopoly agreements with competing operators or counterparties forbids the abuse of market dominance and other

high-risk sensitive behaviors and conducts regular compliance reviews and training to regulate market competition behaviors.It remains committed to fostering an honest fair and free market order and business environment. In 2025 the Company

encountered no material litigation related to unfair competition or monopolistic practices.

39 40Responsible Governance:

Partnering for Future Prosperity

Compliance and Internal Control Management Enhancing Audit Efficacy

SACA has formulated the Risk Management Control Procedure and constructed a full-process closed-loop risk management SACA has always prioritized the construction of its internal audit system. While

system encompassing risk classification and identification risk planning risk control risk response implementation risk tracking enhancing internal audit governance mechanisms and formulating the Internal Audit

and monitoring risk verification and risk modification. Eleven core departments including the Marketing Center Financial Policy the Company has established a three-tier governance framework: the Board

Center Production Workshops and Quality Control Department work together to comprehensively screen for potential hazards of Directors provides overall leadership and coordination; the Audit Committee offers

such as natural social project and legal risks across all stages of the product lifecycle. This ensures comprehensive risk supervision and professional guidance; and the Audit Department takes concrete

identification without blind spots. The Company scientifically calculates risk coefficients based on their severity and frequency. actions. Staffed with dedicated professional auditors the Audit Department cements

Accordingly risks are clearly classified into three levels (Level I Level II and Level III). Differentiated risk control measures are the foundation of all audit endeavors. A vertical reporting mechanism allows for

then formulated and documented in the Risk Identification and Control Matrix fortifying the defense line of risk management. objective operations completely independent from daily business management

ensuring fair and authoritative audit conclusions. The Audit Department submits

The Company continues to promote organization-wide awareness of compliance and risk management responsibilities. Risk dedicated work reports to the Audit Committee at least on a quarterly basis

management review meetings are regularly convened to map out the core risk points of high-risk projects throughout the entire achieving normalized and standardized oversight of all audit activities.business and operational lifecycle and clarify risk drivers and potential impacts. In this way it can safeguard stable corporate

operations. The Company's internal audits encompass all internal functional departments

and holding subsidiaries as well as equity-participating companies that exert a

significant impact on the Company's operations and development. Focusing on the

Risk Control and Compliance Training Summary core areas of business activities the Company conducts in-depth audits of critical

links closely tied to the authenticity of financial reporting and the compliance of

information disclosure. Specifically this targets nine business aspects including

Indicator 2025 Value sales and collections procurement and payments inventory management and fixed

asset management. By identifying hidden management risks and tightening process

Risk Control 2 controls the Company has secured a better compliance trajectory. In 2025 the

Training sessions Company conducted 52 special audits achieving a rectification rate of 82.59%.Compliance 15

Risk Control 2 Audit Training Summary

Training hours

Compliance 30 Training sessions Training hours Attendances

Risk Control 30 56 32 600

Attendances

Compliance 150

414202

Environmental Stewardship

Safeguarding the Ecosystem

Addressing Climate Change

Environmental Compliance Management

Implementing Cleaner Production

Contribution to the UN Sustainable

Development Goals (SDGs)Addressing Climate Change Identification of and Responses to Risks and Opportunities

Risk Identification and Reponses

Climate change stands as one of the core risks facing the globe today. It pertains not only to the ecological environment and Value Chain

human health but also exerts a systemic impact on the long-term sustainable development of enterprises. Guided by the Risk Type Risk Description Timeframe Financial Impact Response MeasuresSegments Affected

national policy of carbon peaking and carbon neutrality SACA actively embeds climate factors into its end-to-end strategic

processes to pursue sustainable growth. With reference to the IFRS Sustainability Disclosure Standards issued by the ISSB and

strictly following the Self-Regulatory Guidelines for Listed Companies No. 17 – Sustainability Report (Trial) we conduct climate Extreme weather Optimize disaster recovery

triggers production

risk management across four dimensions: Governance Strategy Risk and Opportunity Identification and Metrics and Targets facilities at direct-operated interruptions supply

thereby laying a solid foundation for green development. bases and proactively chain disruptions and

formulate contingency plans;

warehousing losses

optimize overseas warehouse

thereby jeopardizing Manufacturing

Escalated management reinforce

operational stability Short to Warehousing

Physical Extreme operating costs protective facilities leverage across these areas; Medium- & Logistics

Risks weather and squeezed the ERP system for unified full-Foshan and the regions term Cross-Border

events such profit margins chain management of global along the supply chain Transportation

Governance as typhoons warehousing and real-time are highly sensitive and torrential cargo tracking thus significantly to climate-related

rains enhancing the disaster resilience disasters facing a high

of both the supply chain and

probability of frequent

warehousing infrastructure

To enhance its climate change response capabilities and drive effective strategy execution the Company formulated the risk events

Greenhouse Gas Management Policy. This outlines control standards for climate-related risks and opportunities standardizes

the end-to-end management of GHG emissions and provides institutional support for carbon management at direct-operated

factories and green compliance in cross-border businesses.The Carbon Border

Climate-related risks and opportunities are overseen by the Board of Directors. Meanwhile the President's Office orchestrates Adjustment Mechanism Construct a dynamic database for

their identification and impact assessment so as to formulate and aggregate response measures; the General Manager approves (CBAM) and tightening cross-border green regulations

policies for carbon emission management and appoints a GHG Management Representative. This representative together green regulations drive to track evolving green standards

up compliance costs and updates in target markets in

with the Administration Office and other departments oversees company-wide carbon emissions and reduction efforts: data Inflated exerting a significant Manufacturing real time; establish an end-to-

monitoring carbon accounting training supervision and evaluations. Furthermore carbon reduction targets are explicitly linked compliance impact on cross- R&D & Design end carbon data collection

costs and

to the capacity optimization of direct-operated factories cross-border product compliance and green supplier management. border business; Medium to Cross- and control mechanism across restricted

This scientifically drives GHG control at a practical level weaving climate change actions into the Company's strategic planning under traditional Long-term Border Sales production at direct-operated Policies and expansion

operations and long-term goals. Ultimately the Company has a solid foundation for green transformation. models carbon data is Supply Chain factories ensuring precise Laws in overseas

fragmented and difficult Management carbon accounting; propel green

markets

to trace leaving cross- retrofitting to existing production

border operations processes to ensure products can

vulnerable to green meet the green entry thresholds

regulatory barriers in of overseas markets

Strategy target markets

Transition

Risks

The Company regularly identifies and Leverage direct-operated

assesses cl imate-driven risks and The surging preference factories to rapidly iterate green

opportunit ies alongside the t ime for green procurement hardware products focusing

among downstream on the R&D of low-energy and

horizons over which they could exert clients imposes recyclable categories; refine

material impacts on the Company stricter requirements R&D & Design the ESG information disclosure

(Short-term: 0–1 year; Medium-term: on products and Marketing Eroded product framework regularly publish

1–5 years; Long-term: over 5 years). By brands diminishing Short to Client competitiveness ESG reports and fortify green Market and

formulating targeted climate response the competitiveness of Long-term Cooperation and escalated brand building; actively engage Technology products lacking green Financing financing costs with green financial institutions

measures SACA effectively seizes labels; stringent ESG Brand Building to optimize the financing

low-carbon transition opportunities and requirements from the structure. By leveraging stellar

bolsters its sustainable development financing end impact ESG performance to lower

capabilities. corporate valuation and financing costs the Company

the cost of capital consolidates relationships with

core clients

45 46Opportunity Identification and Responses

Management of Impacts Risks and Opportunities

Value Chain

Type Description Timeframe Financial Impact Response Measures

Segments Affected

To address climate-related impacts risks and opportunities the Company has established a management mechanism of

Utilize low-carbon eco-friendly identification assessment and response.Surging demand for materials (e. g. recycled steel bio-based

green procurement coatings) and optimize structural designs

broadens the market to maximize energy efficiency and

Boosted the

gap for low-energy recyclability thanks to rigorous production

added value

easily detachable controls of direct-operated factories; Referencing the recommended disclosure framework of the ISSB and in light of national

Short to R&D & design of products

and durable hardware expedite green certifications for core

Medium- manufacturing enhanced market conditions and corporate realities we identify the physical risks transition risks and Product products. Obtaining products; synergize R&D and production

term marketing competitiveness opportunities confronting the Company as well as the time horizons (short medium and upgrades green certifications departments to establish a rapid green Identification

and broadened long-term) and the specific value chain segments affected.erects competitive moats product iteration mechanism. By aligning

profit margins

perfectly aligning with the with the needs of the green building

trends of green buildings and smart home sectors the Company

and smart homes will forge a differentiated green product

portfolio

Collaborative

decarbonization across For each identified risk and opportunity we systematically ascertain its primary climate-

Prioritize existing partners with

green supply chains is

low-carbon certifications and propel Assessment related driver and evaluate its potential financial impacts.trending. Implementing Lowered supply

collaborative decarbonization among

green supplier Supply chain chain costs

suppliers; optimize routing to eliminate

management drives down management augmented

Medium- redundant transfer nodes in the existing

costs while shortening manufacturing operational

Supply chain term cross-border logistics process. A rationally cross-border e-commerce cross-border efficiency and

optimization planned distribution route allows the linkages slashes logistics fortified risk

Company to cut logistics-related carbon

carbon emissions from resilience

emissions and facilitate supply chain

intermediaries ultimately

response

elevating operational We analyze how climate-related impacts risks and opportunities influence the

efficiency and resilience Company's strategy and decision-making. We then formulate tailored response strategies

Response methodologies and roadmaps to ensure the Company possesses ample capabilities and

Capitalize on the existing cross-border resources to mitigate climate risks and seize emerging opportunities.e-commerce footprint to precisely

As overseas demand

pinpoint the green market demands

for green products

across different overseas regions and

expands cross-border Expanded

Cross-border roll out targeted green hardware listings;

e-commerce allows for overseas market

sales marketing refine the ESG organizational architecture

rapid responses to these Medium to share trimmed

Market financing and disclosure framework and intensify needs driving deeper Long-term financing costs

expansion activities brand the omni-channel (online and offline) Metrics and Targetsmarket penetration; stellar and amplified

building communication as a green brand. By

ESG performance unlocks brand value

tapping into green financial resources with

a more favorable financing

top-tier ESG performance the Company

environment

reduces capital costs and fuels sustained SACA remains committed to green development. In active response to the national goal of "carbon peaking and carbon

penetration in overseas markets neutrality" the Company focuses on GHG emission management driving carbon reduction across the entire production lifecycle

and establishing definitive targets for GHG emission intensity.Deploy eco-friendly and energy-efficient

Energy-saving

facilities such as PV equipment and Indicator 2026 Target

technological retrofits

energy-saving machine tools at new

and digitalization can Plunged operating

Manufacturing direct-operated production bases; and

slash energy costs boost costs elevated

Short to Operations push forward energy-saving retrofits in

management efficiency management

Medium- Management production processes to curtail energy GHG Emission

Operational and enhance production efficiency term Data expenditure; digital tools are used to GHG emission intensity A 4% reduction compared to 2025

efficiency resilience meeting the and solidified

Intensity Target

Management optimize production scheduling and

upgrades prerequisites of direct- profitability operations management at direct-

operated factories for

operated factories bolstering risk

refined management

resilience at the manufacturing end

47 48During the reporting period the Company standardized its GHG accounting and management rolled out carbon reduction

practices and elevated its overall GHG governance efficacy. Environmental Compliance Management

GHG Emissions Performance Environmental compliance management constitutes the bedrock for enterprises to fulfill their eco-environmental responsibilities.It establishes both the legal bottom line and the managerial foundation for green production and operations. SACA strictly

implements national environmental laws and regulations including the Environmental Protection Law of the People's Republic

Indicator 2025 Value of China and the Air Pollution Prevention and Control Law of the People's Republic of China. The Company has developed its

environmental responsibility framework seamlessly integrating and embedding environmental awareness across all operational

Direct (Scope 1) GHG emissions (tCO2e) 868.81 links to ensure that environmental protection initiatives are executed efficiently and systematically.Indirect (Scope 2) GHG emissions (tCO2e) 2201.96

Total GHG emissions (Scope 1 and Scope 2) (tCO2e) 3070.77 Environmental Management System

GHG emission (Scope 1 and Scope 2) (tCO2e / RMB millions of revenue) 2.05

SACA actively fulfills its primary responsibility for environmental protection. It has formulated a suite of policies such as the

Environmental Management Policy and the Contingency Plan for Environmental Emergencies. A dedicated organizational

structure for environmental accountability has been established. At the group level the Chairman and Vice Chairman of the EHS

GHG Emissions (Environment Health and Safety) Committee are formally designated. Concurrently dedicated EHS officers are appointed across

all departments and within the Qingyuan and Shunde manufacturing centers. This setup guarantees highly efficient cross-level

collaboration and ensures that environmental responsibilities are precisely assigned to specific individuals.

868.81

Environmental Management Organizational Structure

28%

Scope 1 GHG emissions (tCO2e)

Scope 2 GHG emissions (tCO2e) Provide overarching leadership over the Company's

Chairman and Vice Chairman environmental protection management; manage and make

2201.96 of the EHS Committee decisions on major environmental issues

72% Organize and execute applicable environmental protection Members of the EHS

initiatives as the "primary responsible persons" for

Committee

environmental management within their respective departments

EHS Executive Specifically execute and coordinate environmental protection

Officers management tasks across various plants and workshops

The Company strictly implements the "Three Simultaneities" system for environmental protection. All projects strictly follow

the specific requirements outlined in the EIA (Environmental Impact Assessment) approval documents realizing full-process

closed-loop management spanning from initial project construction and the final acceptance of environmental facilities all the

way through to official production. During the reporting period the Company conducted the requisite EIA for the new slide rail

production line. Notably zero major environmental emergencies occurred and the Company maintained a clean record with zero

administrative penalties for environmental violations.

49 50Guided by its long-term development strategy the Company has set quantitative environmental management targets

Key Performance Indicators and establishes definitive control standards across multiple fronts including accident control waste treatment and noise

management promoting its green and low-carbon development.In 2025 the Company spent RMB 2.1517 million in environmental Environmental Management Targets and Progress

protection accounting for 0.14% of total operating revenue.Target Indicator Progress范围单位2025年数值

Eliminate fire incidents Zero fire incidents √ Achieved

100% recovery and disposal rate for hazardous waste √ Achieved

During the reporting period the ISO Waste disposal meets

14001 Env i ronmenta l Management regulatory requirements 100% classification and disposal rate for

System certifications for the Company √ Achievedgeneral solid waste

and its subsidiaries SACA Innovation and

Qingyuan SACA remained fully valid and Prevent chemical

in effect. ≤3 chemical leaks or spills per year √ Achievedleaks and spills

Factory boundary noise: ≤ 65 dB (A) during the day

Compliant noise emissions √ Achieved

≤ 55 dB (A) at night

Effluent discharge complies Comply with the Discharge Limits of Water Pollutants

Achieved

with relevant standards (DB44/26-2001) √

Fume emissions comply with Comply with the Emission Limits of Air Pollutants

√ Achievedrelevant standards (DB44/27-2001)

Environmental Management System Certificate

Environmental Risk Control

Under the principle of "prioritizing prevention and enforcing comprehensive governance" SACA continues to improve its

environmental risk control mechanisms. The Company regularly identifies environmental aspects of activities in all departments

across such dimensions as time condition and environmental impact and issues an Environmental Aspect Identification and

Evaluation Form. Accordingly control measures are adopted against significant environmental risk factors thereby ensuring the

early detection and mitigation of various environmental risks.Beyond regular environmental risk identification the Company routinely conducts environmental hazard inspections. Once issues

are identified it acts quickly to implement targeted corrective measures and enforce rectification acceptance and effectiveness

reviews. A fully closed-loop management system spanning inspection correction and verification facilitates both production

operations and environmental protection.

51 52Case Studies of Environmental Hazard Inspections and Rectifications Case Annual Fire Emergency Drill

On June 9 2025 the Company conducted its 2025 annual fire emergency drill at the Shunde plant. The drill comprised

Lack of secondary containment three segments: on-site simulated fire evacuation practical fire extinguisher operations for incipient fires and outdoor

for chemical storage Installed spill containment fire hydrant operations. Fire brigade personnel were invited to explain fire safety protocols on-site enhancing fire

pallets safety awareness across the workforce and improving their evacuation escape and rapid-response skills during fire

Missing MSDS (Material Safety incidents.Hazards Corrective

Data Sheet) for LPG installations Re-posted the specific MSDS

Identified Measures

in cafeteria kitchens

Created and posted the zoning

Missing zoning diagram in the diagram

hazardous waste storage room

The Company has formulated the Contingency Plan for Environmental Emergencies and constructed a robust risk prevention

mechanism. Internally it has established an emergency rescue command center and specialized rescue teams and defined the

emergency handling procedures and response mechanisms. In this way a rapid scientific and effective emergency management

system for accident rescue and disaster relief is in place. 2025 Fire Emergency Drill

Emergency Rescue Organizational Structure

SACA places great importance on cultivating its employees' environmental awareness. By monitoring national environmental

policy trends and promoting these policy requirements among employees it has fostered an engaging culture where all

employees are involved in promoting supervising and implementing green development initiatives. In daily office operations

the Company improves environmental knowledge skills and awareness among employees through measures such as default

Incident Commander double-sided printing restricting color printing to necessities digitizing approval workflows and general office tasks and

scheduling air conditioner shutdowns. Employees can develop a mindset of ecological protection and put it into practice in daily

actions.Deputy Commander-in-Chief Driven by the concept of water conservation SACA enhances water resource management by strictly monitoring water usage

across all links and rolling out water management measures. Water-saving equipment is deployed wherever possible in its

operations water-use processes optimized on production lines and employees encouraged to conserve water in their daily work

and lives. These measures boost water utilization efficiency.Command Team Members

Posted Reminders for Air Conditioning Management SMOM Online System

5354

Aftermath Disposal Team

Emergency Repair and

Rescue Team

Medical Rescue Team

Disaster Rescue TeamDuring the report ing per iod the

C o m p a n y c o n d u c t e d t a r g e t e d Implementing Cleaner Production

environmental tra in ing on waste

sor t ing especia l ly class i f icat ion

standards disposal protocols and Guided by the principles of "efficient utilization circularity and low-carbon emission reduction" SACA integrates resource

the va lue of resource recycl ing. management into all facets of production operations strategic planning and corporate governance. In addition to an energy

Classified waste bins are deployed management system and a full-process pollutant control mechanism it continues to bring down resource consumption intensity

across all workshops. This ensures and standardize the disposal of various pollutants improving both resource utilization efficiency and ecological protection. This

that employees can effectively sort provides a robust foundation for building a green manufacturing system and realizing high-quality development.waste and promotes the categorized

recycling and utilization of resources. Classified Waste Bins in the Workshop

U l t ima te ly g reen concepts a re

translated into the conscious actions of Specialized Training on Waste Sorting

the entire workforce. Efficient Energy Management

Environmental Protection Performance Energy management is key to sustainable development. Aimed at "efficient energy use and green transition" the Company

gradually improves its energy structure and utilization efficiency by establishing a specialized management system defining

Indicator 2025 Value phased development targets and executing critical energy-saving projects.While formulating a suite of energy management policies the Company has constructed a three-tier energy management

Environmental emergency drills 2 system encompassing decision-making coordination and execution. By delineating the boundaries of responsibilities at each

level it has forged a management paradigm marked by clear authority and synergistic cooperation. This ensures the systematic

Environmental protection training sessions 2 standardized and highly efficient advancement of energy management initiatives and supports the fulfillment of its energy

targets.Environmental protection training attendances 80

Energy Management Organizational Structure

Environmental protection training hours 3

Office paper consumption (tonnes) 3.63 General Manager

Decision-making

Domestic water consumption (tonnes) 123051 Level Act as the ultimate decision-maker for energy management to authorize and approve key matters

(e. g. energy management system construction) and oversee overall energy targets.Energy Manager

Coordination

Level Serve as the core executive role in energy management to oversee the daily supervision

operational guidance and maintenance optimization of the energy management system;

coordinate and advance specific initiatives including energy utilization optimization energy-

saving technology promotion energy substitution and upgrades and the rollout of green power

applications.Manufacturing Center

Execution

Level Assume on-site energy management duties and execute various energy management policies and

measures; responsible for daily inspections and operational monitoring of energy equipment on

the shop floor to ensure its highly efficient and stable operation.

55 56Environmental Stewardship:

Safeguarding Our Ecosystem

Guided by its green development strategy the Company has articulated clear energy management goals and medium-to-long-

term plans steadily propelling the low-carbon transition of its energy structure. Case Energy-Saving Retrofit to Air Compressor System

Energy Consumption Summary In 2025 the Company started energy-saving retrofit to

its air compressor system for optimized energy efficiency

management. As the original system failed to meet

Indicator 2025 Value operational demands the Company phased out two

high-energy-consuming fixed-speed air compressors. In

Total purchased electricity (MWh) 5052.98 their place two energy-efficient variable-frequency air

compressors equipped with smart control systems were

Self-consumed PV power generation (MWh) 903.03 introduced. These dynamically adjust motor speeds to

deliver an "on-demand air supply" dramatically boosting

Gasoline consumption (tonnes) 14.96 system efficiency.After the retrofit the number of active air compressors

Diesel consumption (tonnes) 266.15

dropped significantly. Under the premise that maximum

air output remained essentially unchanged and perfectly

Total energy consumption (tce tonnes of coal equivalent) 1141.81 met production demands the system's operating power

decreased by roughly 7% unlocking an overall energy Air Compressor System

Energy consumption in tensity (tce / RMB millions of revenue) 0.76 saving rate of approximately 24.8%. This is a win-win

scenario for both economic and environmental benefits.Through PV system construction and the procurement of green power and Green Electricity Certificates (GECs) the Company

drives the low-carbon transition of energy consumption during production thereby cementing a solid foundation for green

manufacturing.Safeguarding Clean Emissions

Indicator 2025 Value

Green Electricity Certificates (GECs) purchased 527 SACA adheres to the principles of "reduction reuse and harmless disposal" in waste and pollutant treatment. The Company has

established a robust full-process control system for solid waste effluent and exhaust gases. It explicitly outlines the generation

Total green power purchased (MWh) 527 sources treatment standards abatement measures and responsible parties for each pollutant type ensuring their compliant

disposal. This minimizes ecological impacts to the greatest extent and faithfully fulfills the Company's corporate environmental

responsibilities.Focusing on pain points of energy waste across operational links the Company systematically deploys diversified energy-

Annually the Company engages qualified third parties to test its effluent exhaust gas and noise emissions. During the reporting

saving retrofits. It curbs energy consumption via measures like optimizing punch-press equipment upgrading lighting systems

period all test results strictly met relevant national standards with all emission categories fully compliant. Furthermore

and retrofitting air compressors. Notably the retrofit of the air compressor system stands as a priority project with remarkable

the Company does not operate its production activities or sites in ecologically sensitive zones. This proactive spatial layout

outcomes in energy-saving upgrade and energy efficiency management optimization.circumvents any potential impacts on ecologically fragile areas.Solid Waste Management

Solid waste control is a focal point of the Company's environmental management. Tailored to the characteristics of different solid

waste types the Company executes a management strategy rooted in classified control and targeted policymaking. This forges a

full-chain control system bridging "Source Process and End-of-pipe" guaranteeing compliant disposal procedures and effective

abatement measures.

57 58Solid Waste Treatment Measures

Solid Waste Category Treatment Measures Domestic waste is subject to mandatory sorting. Categorized waste bins are deployed

across office production and living areas to guide employees in compliant disposal;

Categorized Hazardous waste is stored strictly according to the national hazardous waste directory.Primarily waste cutting fluids waste cutting fluid/emulsion mixtures (sludge) Management Storage zones for different categories are distinctly demarcated to avert mixed storage

waste paint buckets waste oil-contaminated buckets and waste motor oil which could otherwise multiply the waste types or exacerbate hazards thus facilitating

generated during production; streamlined subsequent disposal.Hazardous Waste Dedicated storage facilities equipped with clear hazard warning signs have

been built in strict adherence to hazardous waste management regulations. The

Company delegates the transit and harmless disposal to certified third-party Both electronic and paper ledgers covering the end-to-end lifecycle of solid waste

specialized agencies tracking transit and disposal records end-to-end to ensure Management (generation transfer and disposal) have been established which comprehensively log key

full compliance and controllability. Enhancement data (generation volumes transfer destinations disposal methods and receiving entities)

to enforce total-quantity control targets and guarantee full traceability and verifiability.Primarily waste materials generated during the manufacturing process;

General Industrial These are managed via categorized collection and centralized storage and

Solid Waste similarly delegated to qualified third parties for transfer and treatment. Portions Effluent Management

of recyclable waste are reclaimed through compliant channels to boost resource

circulation. The Company's production process generates zero industrial effluent. The primary sources of domestic sewage are restrooms

in office buildings and workshops cafeteria kitchens and employee dormitories. Such simple effluent with low pollutant

concentrations is discharged into the municipal sewage network after tertiary sedimentation treatment.Solid Waste Abatement Measures

Air Emissions Management

Adopt lightweight recyclable product and packaging designs to curtail the consumption

of production raw materials; No complex industrial exhaust gas is generated and only a minimal amount of cooking fumes is produced in the cafeteria.Source Optimize production process parameters to elevate raw material utilization and minimize After purification with electrostatic fume purifiers in the kitchen the fumes are discharged in a controlled manner effectively

Reduction manufacturing waste generation; mitigating their impact on the surrounding environment.Deploy clean production technologies to replace toxic and hazardous raw materials

thereby eradicating the generation of hazardous waste at the source. Noise Control

Each year the Company commissions qualified professional third-party agencies to conduct comprehensive noise monitoring

Establish a comprehensive categorized collection system where industrial solid waste across production floors office areas and other workplaces. This ensures we accurately map noise distribution and identify any

is stored separately by type. Hazardous waste is strictly isolated by category and clearly points exceeding regulatory limits. For production equipment generating high noise levels we implement targeted mitigation

Process labeled with dedicated warning signs; measures such as installing protective covers and shock-absorbing pads optimizing equipment layout and erecting sound

Control Standardize operating procedures and transport management to prevent solid waste barriers; for positions where noise levels exceed standards the Company uniformly equips employees with compliant PPE such

surges caused by material leaks drips and spills effectively averting secondary pollution as earplugs. We have established a daily inspection mechanism to remind and educate employees who fail to wear protective

during transit. gear as required ensuring that protection is strictly enforced to safeguard employee occupational health and the tranquility of

the surrounding environment.Recovered metal scrap is repurposed for producing building and roadbed materials or Corporate Pollutant and Waste Emissions

subjected to remelting;

Recyclable hazardous wastes (e.g. waste solvents waste oils and spent catalysts) are Domestic effluent discharge General waste generated Hazardous waste

Resource collected purified and regenerated by specialized agencies before being re-injected into (tonnes) (tonnes) generated (tonnes)

Utilization the production system for circular use;

Recyclables (e.g. paper plastic and metal) are categorized and transferred to professional 61525.5 56.28 35.5

agencies for reprocessing. Kitchen waste is composted or undergoes anaerobic

fermentation to generate biogas fully realizing resource circularity.

596003

Innovation-Driven Growth

Fortifying Core Values

Strengthening Innovation Capabilities

Translating R&D Excellence

Protecting Intellectual Property Rights (IPR)

Contribution to the UN Sustainable

Development Goals (SDGs)Innovation-Driven Growth:

Fortifying Core Values

Strengthening Innovation Capabilities Regarding our digital transformation strategy and actions the Company has mapped out clear forward-looking goals and plans. We intend to increase our expenditure on upgrading automated and intelligent equipment reducing raw material waste

by improving production precision. Simultaneously we are planning the construction of a new smart factory designed for a

scale of RMB 10 billion optimizing resource utilization from the hardware foundation upward to provide a solid platform for the

SACA has consistently embedded innovation throughout its entire corporate development process. Guided by the principle of industrialization of our innovative achievements."consolidating innovation capabilities as the cornerstone forging R&D achievements as the core and protecting intellectual

property as the safeguard" we have built a comprehensive innovation ecosystem covering system development technological During the reporting period the Company boasted an R&D team of 193 employees accounting for 13.18 % of the total

breakthroughs and IP protection. Through continuous technological iteration and successful commercialization of results the workforce. R&D expenditure reached RMB 39.3567 million representing 2.63 % of our operating revenue ensuring ample

Company has established itself as a benchmark for innovation in the home hardware industry. human and financial resources for technological research and development. Furthermore to stimulate the innovative enthusiasm

of our R&D team the Company has established a dedicated patent reward mechanism. Bonuses are issued directly to the

Centered on building digital capabilities the Company has established a well-structured R&D inventors and designers of authorized patents creating a virtuous cycle of "motivated R&D resulting in rewarding outcomes."

and innovation management system with clearly defined roles and responsibilities. Our R&D

Directors R&D Engineers Researchers and R&D Project Managers operate under a "multi-level

division of labor and full-process collaboration" management model. This enables full-lifecycle

control of R&D projects from initiation and planning to execution acceptance and post-

evaluation ensuring a highly standardized innovation process. Translating R&D Excellence

During the reporting period the Company and its subsidiaries earned numerous authoritative

qualifications and honors for our solid innovation practices. Additionally Qingyuan SACA Relying on a robust innovation system and sustained resource allocation SACA has achieved significant results in the R&D field.obtained the GB/T 29490-2013 Intellectual Property Management System certification. Over the years the Company has led and participated in the formulation and revision of multiple industry group and local

Qingyuan SACA Intellectual

Property Management System standards guiding the industry's standardized development through technological authority.Certification

Participation in Standard Formulation

Scientific and Technological Innovation Honors & Qualifications (Selected)

SACA

Industry QB/T 2189-2013 Hardware for Furniture-Cup Hinges

High-tech Guangdong Province Specialized and

Standards

National Patent-Intensive QB/T 2454-2013 Hardware for Furniture-Guide Rails

Enterprise Sophisticated SMEs that Produce Novel Product Certification

and Unique Products

Guangdong Famous Hi-Tech Patent-Intensive Shunde High-Tech

Product Product Certification Product Certification

Foshan Standard ……

Product T/CNHA 1031-2020 Home Hardware for Full Decoration and Similar Uses - Drawer

Certification Runners

Qingyuan SACA T/FSS 43-2022 Foshan Standard: Home Hardware - Drawer Runners

High-tech Guangdong Province Specialized and T/FSS 44-2022 Foshan Standard: Home Hardware - Concealed Hinges

2025 Innovative SME

Enterprise Sophisticated SMEs that Produce Novel Group

and Unique Products T/FSS 94-2023 Foshan Standard: Household Stainless Steel SinksStandards

National Patent-Intensive Guangdong Famous Qingyuan City College Graduate T/FSS M001-2024 Implementation Guidelines for Lean Six Sigma Management

Product Certification Hi-Tech Product Employment Internship Base

T/SDHW 0004-2019 Smart Purifying and Cleaning Stainless Steel Sinks

SACA Innovation

2025 Sci-Tech SME 2025 Innovative SME

Guangdong Famous Shunde High-Tech

Hi-Tech Product Product

63 64Innovation-Driven Growth:

Fortifying Core Values

In terms of intellectual property reserves the Company has developed a large-scale high-quality portfolio of patents and In terms of core product innovation the Company is deeply user-oriented launching multiple patented products that combine

software copyrights erecting a solid technological protection barrier. safety practicality and aesthetic value.Intellectual Property Performance Inter-locking Self-closing Ball Bearing Slide

Indicator 2025 Value

Addressing core safety concerns we have innovatively adopted a multi-layer interlocking structure located at

Accumulated effective authorized patents 483 the head of the slide for easy installation. This mechanism ensures that only one drawer can be opened at a time

effectively preventing cabinet tip-overs. It is an ideal safety feature for children's furniture;

Invention patents 98 The tail of the slide features a damping cylinder mechanism. Combined with silent technology and a low-tension

dual-spring design it enables smooth noise-free and slow drawer closing. This eliminates pinch risks and fully

Utility model patents 274 reflects our commitment to user safety.Design patents 111

Newly authorized patents in the year 39

Invention patents 11

Locked Place

Utility model patents 19

Design patents 9

Total Industry Standards Led/Co-drafted 2

Total group standards led/co-drafted 1432

Synchronized Push-to-Open Mechanism

New group standards led/co-drafted in the year 49

Total R&D projects participated 29 To resolve common installation and usage challenges we developed an adjustable door gap feature. This significantly

reduces installation precision requirements and ensures uniform gaps between drawer panels perfectly balancing

the push-to-open function with a seamless minimalist aesthetic;

New R&D projects in the year 22

A specialized synchronization bar design solves the issue of incomplete unlocking when pressing one side of ultra-

wide drawers. Pressing anywhere on the panel simultaneously unlocks the slides on both sides. This prevents drawer

twisting and slide deformation delivering a stable smooth and premium user experience.Synchronizing Rod

65 66Innovation-Driven Growth:

Fortifying Core Values

Protecting Intellectual Property Rights We embed comprehensive intellectual property management into every stage of our R&D lifecycle through a standardized end-to-end workflow. By proactively conducting early patent searches rapidly securing rights for core technologies and

performing regular IP audits we successfully transform our technological achievements into valuable commercial assets.(IPR)

Project Initiation Phase R&D Phase Management Phase

The Company highly values intellectual property (IP) protection. We have built a comprehensive full-chain protection system

featuring robust policies clear responsibilities effective measures and continuous capacity building to safeguard our innovative

achievements. We have formulated a series of management policies including the Knowledge Management Control Procedures Conduct patent searches Ensure patent applications for

and Patent Management Measures. Our IP management framework is centralized under the Human Resources Department and infringement risk core technical achievements

Regularly conduct IP

coordinated by the General Manager and supported by all organizational centers to ensure systematic and standardized analysis to identify and are completed before public

inventory and value

assessments. By exploring IP

management. During the reporting period the Company allocated RMB 408600 to intellectual property. mitigate potential legal disclosure to secure a

risks in advance protective advantage asset capitalization through

In recent years our standardized management practices have earned us multiple honors including the title of Guangdong licensing and transfers we Implement tiered

Intellectual Property Demonstration Enterprise. maximize the commercial confidentiality measures for value of our achievements

technical secrets such as

Intellectual Property Management Framework core process parameters to

strictly prevent the leakage of

commercial secrets

General Manager

Management Representative IP Training Performance

IP training sessions Total training hours IP training attendances

1015218

Case IP Pledge Financing Training

Scientific and Technological Innovation Honors and Qualifications In October 2025 the Company organized a

training session on IP pledge financing. The

training covered IP value assessment pledge

financing processes and policy support

interpretations. It helped participants master

key methods for IP asset capitalization

and understand how to broaden corporate

f inancing channels through IP pledge

financing. This initiative further shifts our

IP strategy from mere "protection" to "value

addition" maximizing the commercial value

of our innovations.Guangdong Intellectual Property Enterprise with National Qingyuan Key Enterprise for IP Pledge Financing Training

Demonstration Enterprise Intellectual Property Advantage Intellectual Property Protection

6768

Quality and Operations

Management Department

IT Department

Finance Department

Supply Chain Management

Department

Manufacturing Center

Marketing Center

Technology Center

Human Resources

Department04

People-Centric

Development

Upholding the Safety Bottom

Line

Fostering Employee Growth

Fortifying Safety Foundation

Contribution to the UN Sustainable

Development Goals (SDGs)People-Centric Development:

Upholding the Safety Bottom Line

Fostering Employee Growth Risk Identification and Responses

Risk Type Risk Description Timeframe Financial Impact Response Measures

We adhere to a talent-driven growth strategy. We protect fundamental employee rights improve our talent recruitment and

training systems refine compensation and performance incentives and maintain open channels for democratic communication. Non-compliance could

By strengthening employee care and support we create a diverse inclusive and safe working environment to attract and retain As domestic and trigger consequences

top talent. international labor laws including the

tighten and key supply chain

termination of Establish an HR and human

anchors like IKEA strengthen

partnerships with rights management system that

their compliance oversight

anchor clients is both locally compliant and

our Precision Hardware and Medium to globally leading;

Governance in the precision Policy & compliance Cross-Border E-commerce long term hardware sector

risks (labor divisions face stringent Strengthen the monitoring of store closures and

standards) global scrutiny regarding

working hours to ensure strict

product delistings on

The Company strictly complies with relevant laws and regulations including the Labor Law of the People's Republic of China the forced labor working hour adherence to labor lawsoverseas e-commerce

Labor Contract Law of the People's Republic of China the Law of the People's Republic of China on the Protection of Women's management and human platforms plus fines

Rights and Interests and the Provisions on the Prohibition of Using Child Labor. We respect and protect the legitimate rights rights protection and litigation costs

of our employees and maintain a zero-tolerance policy regarding child labor illegal labor and forced labor. Through rigorous

identity verification procedures we strictly prevent employment risks. We firmly oppose any discrimination harassment or

threats based on gender region age race or religion ensuring all employees enjoy equal pay for equal work and equitable Fierce competition for Optimize equity incentive plans

development opportunities. top-tier R&D and brand and diversify compensation

operations talent exists Increased recruitment and benefits packages;

We have established a robust human resources management system covering recruitment compensation and benefits in both the precision costs delayed project

performance promotion training and communication. We extend these compliance requirements to our partners through the Build tailored advancement Market risks hardware and cross-border Short term timelines and a pathways for high-potential

Prohibition of Child Labor by Sub-tier Suppliers and Remedial Measures. We regularly review and revise our policies to enhance (Talent competition & e-commerce sectors. The diminished return on talent; implement robust

the standardization and execution efficiency of our HR management. retention) loss of key personnel risks R&D expenditure succession planning and

business disruption and the

We utilize a human capital governance framework coordinated by the Group and supported by our business units. The Group's training programs for critical leakage of core technologies roles

Human Resources Department oversees overall management while the Precision Hardware and Cross-border E-commerce

business units maintain their own HR departments. These units formulate differentiated policies based on their specific sector

characteristics ensuring our talent governance perfectly matches our operational needs.Opportunity Identification and Responses

Strategy Type Description Timeframe Financial Impact Response Measures

Lower recruitment

costs while boosting

Combining domestic and international employment policies with industry best practices the Company proactively identifies Forge a "Responsible brand equity Refine management systems for

human resources risks and opportunities along with their potential financial impacts actively formulating corresponding Employer" image through and trust among labor protection and D&I;

response strategies to ensure long-term organizational resilience. outstanding performance Reputational Long term clients (particularly

in labor protection and Transparently disclose workforce

opportunity ESG-conscious diversity & inclusion (D&I) diversity metrics in annual ESG

(employer branding) overseas anchor attracting top global talent reports

enterprises and

distributors)

Continuously allocate

resources for upgrading digital

Leverage Big Data and AI Optimize HR management systems like Lark;

for workforce analytics Medium allocation reduce Roll out smart scheduling

Technological talent profiling and smart overhead ratios and

term software;

opportunity scheduling to elevate overall maximize per capita

(HR digitalization) organizational efficiency output Digitize and streamline

onboarding offboarding and

employee benefit experiences

71 72Compliant & Inclusive Employment

Impact Risk and Opportunity Management

We are dedicated to fostering a diverse and inclusive workplace. Beyond merely adhering to compliance baselines we proactively

recruit underrepresented groups empowering them with equal career opportunities.SACA has established a robust HR management and risk prevention framework. By leveraging differentiated talent attraction

strategies compliant and equitable employment practices performance-driven compensation clear advancement pathways

comprehensive training systems diverse communication channels and compassionate employee support we are laying a rock- Hiring Special Demographics

solid talent foundation for sustainable growth.Poverty-alleviated & long-term People with disabilities

unemployed Military veterans

Talent Attraction

Answering the national call We champion a barrier-free We deeply value the specialized

we actively hire individuals hiring culture and our job skills and disciplined ethos

Recognizing the distinct needs of our two primary transitioning out of poverty postings explicitly welcome of our military veterans. We

business engines Precision Hardware and Cross-Border and those who have been candidates with disabilities actively recruit outstanding

E-commerce we have built a standardized tiered unemployed for over six months. and provide accessible support former officers and enlisted

and segmented recruitment mechanism. Coordinated In 2025 our initiatives positively in multiple formats (e. g. text personnel into our technical

centrally by our HR department this system clearly impacted 39 individuals earning and video). As of the end of the teams facilitating a seamless

defines the workflow from workforce planning and official government recognition reporting period we employ 17 transition from military to

approval to final onboarding. for "Enterprise Employment of staff members with disabilities civilian careers.Priority Demographic Groups." exceeding national statutory

requirements.Recruitment Procedures

Campus Hiring Employee Compensation & Performance

Precision Hardware: We engage youth talent through university job fairs and enterprise- Anchored by a "High Value High Return" philosophy our compensation and performance framework utilizes rigorous evaluations

academic partnerships offering a Management Trainee (MT) program for current students and and comprehensive grievance channels. This guarantees a fair and transparent distribution of rewards continuously driving both

recent graduates (within two years). The program blends grassroots internships with a structured talent efficiency and organizational vitality.development cycle to combine centralized training with hands-on projects culminating in final

role placement and salary determination.Compensation and Performance Management

Cross-Border E-commerce: We roll out an annual MT intake program featuring highly customized

development tracks tailored to specific e-commerce roles. Compensation management

We operate a diversified remuneration structure matched to various job families. Packages consist of base salaries

and variable pay (performance bonuses commissions and annual profit-sharing) tethered directly to divisional

Social Hiring financial results and individual performance.Precision Hardware: We formulate monthly tiered recruitment plans based on current headcount

and turnover metrics. The hiring workflow spanning initial interviews compensation negotiation Performance management

approval sign-offs and formal offers is strictly managed for absolute transparency and

compliance.Our strategy-driven performance system uses OKRs (Objectives and Key Results) as the primary engine for goal

Cross-Border E-commerce: This division operates on an annual headcount pre-approval system alignment and progress tracking. Assessment outcomes directly inform compensation promotions and career

where hiring for core positions requires final sign-off from the CEO and Chairman ensuring that development.top-tier talent acquisition aligns with our strategic vision.Standardized feedback and grievance channels are in place to protect employees' rights to stay informed and appeal

decisions.

73 74Employee Development & Training Case The "Safety First" Lesson for New Hires

Aligned with our dual business engines of Precision Hardware and Cross-Border E-commerce we have engineered a

comprehensive full-lifecycle talent development ecosystem. By establishing stratified promotion pathways and a systematic To ensure new team members integrate swiftly and safely safety training forms the cornerstone of our onboarding

talent cultivation framework we provide continuous momentum for both organizational evolution and individual career growth. process. During their very first week all new hires are mandated to complete the "Safety First" module which

comprehensively covers factory safety protocols fire safety occupational risk identification and emergency response

To ensure equitable advancement opportunities we have deployed a Five-Track Parallel Promotion System encompassing procedures.Management Technical Professional Sales and Operational pathways. Advancement is governed by a highly transparent

evaluation mechanism that holistically assesses performance technical proficiency and core competencies. We guarantee

fairness through a rigorous blend of psychometric testing practical skills assessments and multi-dimensional panel reviews.Career Development Management

Institutionalized via our Training Management Policy this sector uses a three-tier training hierarchy

(Headquarters → Manufacturing Center → Department).Precision

hardware It boasts a comprehensive curriculum spanning the entire career lifecycle across four pillars:

General Skills Marketing Production and Management. We utilize a hybrid online/offline teaching

model to ensure high-impact learning.Features an online knowledge-sharing hub called Qinwu Academy. Using our Internal Trainer New Hire "Safety First" Training

Cross-border Management and Incentive Plan we have built a sustainable pipeline of in-house educators heavily

e-commerce incentivizing employees to share their expertise.Case Standard Operating Procedures (SOPs) Rotational Training in the Hinge

SACA Precision Hardware Talent Development Framework Assembly Workshop

Driven by a commitment to operational efficiency and consistent product quality we regularly review and update

Standard Operating Procedures (SOPs) for critical roles. Recently we launched a comprehensive SOP rotational

SACA Talent Development Center training program for all staff in the hinge assembly workshop. Employing a closed-loop learning model of "Theoretical

Instruction + On-Site Demonstration + Practical Assessment" we ensure every frontline worker masters the latest

standards. This initiative achieved a 100% certified-to-work rate robustly underpinning the manufacturing excellence

of our Precision Hardware division.Comprehensive School Manufacturing School Marketing School School of Management

On-the-job Training in Hinge Assembly

Job Competency Standards | Resource Building & Development | Policy & Procedure Creation |

Culture & Atmosphere Shaping

7576

"SACA Future" Leap Program

"Star Power" Sustainability

Program

"Next-Gen" Nurturing

Program

Market Planning Series

Sales Management Series

Sales Growth Bootcamp

Production Improvement

Initiatives

Frontline Production

Management Series

Standard Operating

Procedures Series

Functional Professional

Series

Core Competencies

& Skills Series

New Hire Integration SeriesCase Management Empowerment Plan Democratic Management & Communication

We place paramount importance on our employees' rights to stay informed participate and be heard. By refining democratic

management protocols opening diverse communication channels and conducting comprehensive satisfaction surveys we

We have designed targeted empowerment pathways to address the specific capability gaps of our leaders across actively encourage staff to express their interests rationally and lawfully to foster a harmonious and transparent workplace.different echelons. Frontline Leaders: Our "Team Leader Bootcamp" focuses heavily on practical skills such as shop-

floor management team communication and efficiency optimization. Mid-to-Senior Management: We rolled out the

"3X Speed" Leadership Development Program. Centered on strategic thinking change management and business Democratic Communication Channels

innovation this program accelerates leadership maturation through executive coaching industry benchmarking and

real-world project assignments to ultimately drive exponential organizational growth.Chairman's

Routine

Anonymous

Employees' SymposiaMailbox

Representative "Open Door"

Congress Policy

We strictly adhere to the To guarantee that grassroots We host quarterly themed

organizational principles of voices reach the top we We champion cross- roundtables. Facilitated by

the Employees' Representative established a direct-to- hierarchical dialogue workshop leaders these

Congress. Supported executive mailbox. Employees by mandating sessions invite new employees

by frameworks like the can submit feedback on any regular one-on-one from various departments

Employees' Representative issue anonymously with the discussions between to openly discuss targeted

Congress Management Chairman's Office directly managers at all levels topics such as "work

System and Internal Grievance overseeing the resolution and their subordinates. intensity" or "dormitory & food

Management Guidelines process. quality" followed by tracked

"3X Speed" Leadership Co-creation Workshop External Instructor Management Training we ensure our democratic improvements.governance is firmly rooted in

policy.Case Chairman's Anonymous Mailbox: Listening to the Frontline

Case AI Agent Certification Training

Designed to ensure immediate executive visibility this channel allows for

anonymous feedback on any workplace matter. Overseen directly by the Chairman's

Office it guarantees that every raised issue receives effective resolution and

In 2025 we launched a specialized AI

transparent follow-up.Agent training initiative for all employees

utilizing a dual-track model of "6 hours of

offline practical application + 14 hours of

online learning." This equips our team with

core competencies in ERP automation and

process design. Employees who pass the

assessment earn official certification from

"Intelligence Indeed" with top performers

directly integrated into the company's

internal automation development projects.This strategic move drastically enhances

our workforce's d ig i ta l f luency and Chairman's Anonymous Mailbox

operational efficiency building a vital talent

pool for our intelligent transformation.AI Agent Learning & Training We view employee feedback as a critical barometer for assessing HR efficacy and optimizing our workplace. In 2025 our

segmented anonymous satisfaction surveys yielded strong results (Precision Hardware: 85.41%; Cross-Border E-commerce:

8.1/10). Acting directly on this feedback we launched a targeted cafeteria quality improvement campaign initiated union-led

stress relief programs and further refined promotion standards and empowerment plans for platform operations roles.

77 78Employee Care & Support

Prioritizing physical and mental well-being we have built a comprehensive welfare system tailored to the realities of the

manufacturing sector. Through foundational security dormitory outreach robust leave policies holiday celebrations and

vibrant cultural activities we cultivate an inclusive environment that safeguards rights while elevating employee belonging and

satisfaction.Foundational Care

Basic security

Full provision of "Five Insurances and One Fund" (social security and housing provident fund) alongside employee

dormitories and free meals for production staff. Dragon Boat Festival Zongzi

Distribution

Dormitory outreach

Management regularly visits dormitories to distribute essential living supplies check on physical and mental well-being

distribute mental health questionnaires and alleviate stress.Paid leave

Full entitlement to statutory holidays annual leave maternity leave and bereavement leave.Holiday care

Distribution of festive gifts (e. g. sweet dumplings Zongzi mooncakes Women's Day gifts) accompanied by festive

events.Cultural & sports activities

Weekly badminton and tennis matches across divisions plus annual sports meets at headquarters and regional plants Winter Solstice Celebration

to enrich personal time.Outdoor Team Building

Employee Skills Competition

Summer Heat Relief

79 80Case Empowering Women Building a Warm Workplace

On March 8 2025 our Qingyuan

Manufacturing Center hosted the

"Starlight Afternoon Tea" tasting

event treating female employees to

gourmet pastries and bespoke toiletry

gift sets. Across the company we

distributed festive gifts and organized

engaging activities. Through both

material care and moral support we

paid the highest tribute to the women

shining in our R&D operat ions

production and management teams.Going beyond standard benefits our specialized funds serve as a resilient organizational safety net for emergencies and major

life milestones.Employee Sports Meeting

Valuing diversity we take concrete action to deepen gender equality and support vulnerable groups. Hardship Support Fund Employee

Homeownership Fund

Governed by the union's

Assistance Fund Management

Targeted Demographic Care To help our people lay down Measures this provides timely

roots we established an RMB 5

financial and emotional support Financial million specialized fund to assist

to employees and their families Assistance & with local housing purchases.facing sudden critical illnesses Support

accidents natural disasters or

We actively encourage the utilization of state-mandated paid maternity

other severe hardships.and parental leave. For Women's Day 2025 we distributed care packages

Female employees to all female staff to elevate their sense of belonging through tangible

appreciation.Case Interest-Free Loans for the "Homeownership Plan"

SACA allocated RMB 5 million as a special fund to provide interest-free loans for active employees purchasing their

first commercial property. Eligible staff can apply for up to 30% of the property's total purchase price capped at RMB

Low-income We precisely identify and assist financially disadvantaged employees from 150000 per person. Managed as an exclusive revolving fund this continuously empowers our workforce to achieve

employees underdeveloped regions to aid them in securing government subsidies. their homeownership dreams where they work.

81 82Metrics and Targets

Guided by our "People-First Co-Created Value" philosophy we maintain a systematic HR performance monitoring framework.By dynamically tracking workforce demographics turnover training coverage and welfare metrics we relentlessly optimize

organizational talent efficiency.Workforce Turnover

Workforce Profile

Turnover rate

Total number of employees 1464 9.31%

939196415

Workforce Training Performance

By gender By age 30 and under

Male Expenditure on employee Total training sessions Total training hours31 to 50 training (RMB)

525 Female 853 >50 27000 192 155.55

Total training attendances Average training hours per employee

1142262572.62

By ethnicity By region

Ethnic majority (Han) Chinese Mainland

1323 Ethnic minorities 1442 Overseas Hong Foundational Security & Care

Kong Macau &

Taiwan

Labor contract signing Social insurance Financially disadvantaged

rate coverage rate employees assisted

39201257100%100%20

187

Special Assisted employees per RMB millions

employees By education Associate degree

and below

Poverty-alleviated & 0.01

long-term unemployed

17 Bachelor's degree

People with disabilities Master's degree

and above

83 84Fortifying Safety Foundation We set overarching and annual safety targets and track them relentlessly. In 2025 we successfully achieved all core objectives across incident rates hazard rectification and education coverage.

Navigating the complexities of precision hardware manufacturing and cross-regional operations SACA continuously fortifies

its Production Safety and Occupational Health management system. By perfecting our institutional architecture tightening risk Annual Core Safety Targets Progress

controls and deploying robust health safeguards we systematically protect the lives and well-being of our workforce. 零安全生产事故率 2025 年数值

Zero production safety accidents √ Achieved

Production Safety Management System

Zero occupational disease occurrences √ Achieved

In strict compliance with the Law of the People's Republic of China on the Prevention and Control of Occupational Diseases

and Provisions on the Administration of Occupational Health at Workplaces we rely on institutional building to drive safety Hazard rectification rate ≥ 98% √ Achieved

standardization. We have instituted a suite of policies including the Safety System Management Measures and Work-Related

Injury Management System forging a standardized mechanism that regulates behavior through policy and controls risk through

process. 100% occupational safety education coverage √ Achieved

Operating under the mandate that "managing business and production means managing safety" we deploy a three-tier

occupational health and safety architecture covering Leadership Management and Execution. By signing cascading safety

responsibility letters we anchor accountability at every level ensuring our safety net covers the organization from edge to core.Production Safety Organizational Architecture Production Safety Risk Control

Driven by a "Prevention First

Chairman and Vice Chairman of the EHS Committee Proactive Risk Management"

ethos we conduct rigorous hazard

Provide comprehensive leadership over corporate safety and make decisions identification and implement a

on major safety issues graded risk control mechanism.Through comprehensive

Members of the EHS Committee evaluations we maintain a Master

Safety Risk Register and a Four-

Act as the "First Person Responsible" for their respective Color Safety Risk Map. Color-

departments and are fully accountable for organizing and coded Workstation Safety Risk

executing unit-level safety management Notification Cards are posted at

Four-Color Safety Risk Map

respective workstations to clearly

detail hazard types potential

EHS Executive Officers incidents control measures and

emergency protocols. In high-

Handle the frontline day-to-day execution of safety risk zones we mitigate dangers

protocols across various plants and workshops through specialized inspections

equipment upgrades and

technological transformations.Workstation Safety Risk Notification Card

85 86Guided by our Hazard Identification and Evaluation Matrix we systematically catalog physical (electromagnetic) chemical Safeguarding Occupational Health

(flammables) biological (pathogenic microorganisms) psychological and behavioral (monitoring failures) risks. These are

indexed by status and severity to inform governance priorities.SACA places immense importance on safeguarding employee occupational health adhering strictly to the principle of

Backed by regular site safety inspections and the updated 2025 Production Safety Emergency Response Plan we run active drills

"Prevention First Integrating Prevention with Control." We conduct regular occupational health risk identification and

covering electrocution falls impacts fire mechanical injuries and natural disasters like earthquakes and floods.assessments culminating in the Occupational Disease Hazard Factor Detection Report. We enact targeted prevention and

control measures specifically against hazards like radiation noise and dust. By optimizing the production environment and

upgrading protective facilities we strive to eliminate occupational hazards at their source. Prominent safety warning signs

Safety Management Performance are posted across all production sites to remind employees of operational risks and protective requirements. We provide free

personal protective equipment (PPE including earplugs gloves safety goggles safety shoes and hard hats) and actively monitor

their proper usage.Indicator 2025 Value

We strictly enforce the "Three-Stage" occupational health examination requirement (pre-employment on-the-job and

off-boarding). We organize annual employee health checkups and maintain robust "Dual Files" (Occupational Health Files and

Safety hazard rectification rate (%) 99.5

Occupational Health Monitoring Files) to ensure complete traceability of health data.Number of safety emergency drills 5 We keep strengthening production safety training and capacity building. In 2025 we organized comprehensive work safety

management training for team leaders. The curriculum covered safety management responsibilities safety laws and regulations

execution of the three-tier safety training for new hires safety inspection standards occupational disease prevention PPE

Expenditure on work safety (RMB) 603000 management and the identification of "Three Violations" on the shop floor. Simultaneously we launched targeted operational

skills training for forklift operators. This covered daily inspections personal protection equipment hazard identification

operational standards and emergency response procedures thereby genuinely enhancing employees' safety awareness and

Major production safety accidents 0 standardized operational proficiency. All relevant training materials are securely archived in our corporate records.Major work-related injuries 0

Safety Education Performance

Work-related fatalities 0

Total training attendances Total training hours Total training sessions

Workdays lost to major injuries 0

4328326288

87 88Case Building Deep Defense in Production Safety: Targeted Tiered Training at the

Qingyuan Factory

The Qingyuan Factory systematically conducted specialized training on team leader safety management and forklift

operations to comprehensively reinforce safety standards and risk control capabilities from the management level

down to frontline execution.Work Safety Management Training for Team Leaders

Focused on safety management responsibilities safety laws and regulations execution of the three-

tier safety training for new hires safety inspection standards occupational disease prevention PPE

management and the identification of "Three Violations" on the shop floor. This significantly improved

team leaders' safety management capabilities strengthened management standards and ensured safe

operations.Forklift Skills Training

Targeted at forklift operators this covered daily checks PPE usage equipment hazard spotting standard

operating procedures and emergency response effectively raising safety awareness and operational

standards.Case Internal and External Empowerment: Building the Cornerstone of Client

Compliance: The Workshop Production Safety Training System

Recognizing the strict compliance requirements of our core clients our workshops have established a specialized

safety training system characterized by expert instructors universal coverage and closed-loop management. We

employ a merit-based instructor selection mechanism featuring experts in Equipment Safety (Equipment Department

Manager) Lean Management (Factory Manager) and EHS (EHS Engineer); by executing a monthly Training Plan and

utilizing a Training Effectiveness Evaluation Form we dynamically track and verify the impact of our training. Through

a combination of theoretical assessments and on-site observations we ensure employees accurately comprehend and

internalize core safety concepts laying a solid foundation for total safety production.Qingyuan Factory Training

On-site Workshop Safety Training

899005

Corporate Citizenship

Creating Shared Social Value

Implementing Stringent Quality Standards

Deepening Customer Service Excellence

Implementing Responsible Procurement

Committing to Social Contribution

Contribution to the UN Sustainable

Development Goals (SDGs)Corporate Citizenship:

Creating Shared Social Value

Implementing Stringent Quality Standards Strategy

SACA views product quality as the lifeblood of the enterprise. SACA actively identifies risks and opportunities related to product quality and proactively manages them to enhance brand

Through the construction of a robust quality management system reputation.we continuously optimize quality control processes across the

entire product lifecycle. We actively drive standardization and digital

upgrades in quality management across all business divisions Risk Identification and Reponses

dedicating ourselves to rewarding global customers with exceptional

products. Risk Type Risk Description Timeframe Financial Impact Response Measures

Consistency risks arising from Strictly execute the Process

fluctuations in raw material Lead to higher scrap rates Flow Chart and Control

(e.g. steel) quality mold wear increased rework costs and Plan; implement full-

or automated production line delayed deliveries for major lifecycle mold management;

Governance calibration errors; clients; promote automated Short term visual inspection systems

Quality stability Increased RMA (Return Drive up return logistics for rigorous process

Merchandise Authorization) costs and refund losses control; enforce the RMA

Adhering to a business philosophy of "Quality First Continuous Improvement" we strictly abide by the Product Quality Law of rates due to product defects in damaging brand reputation Improvement Management

the People's Republic of China and other relevant laws and standards. We have formulated differentiated quality management cross-border e-commerce Specifications

systems tailored to the operational characteristics of our various business divisions. Based on the Quality and Environmental

Management Manual and the Process Flow Chart and Control Plan the Precision Hardware division controls the entire quality Establish a dynamic

chain from raw material intake to finished product outbound logistics. The Cross-Border E-commerce division has established Iteration of international quality tracking mechanism for Failure to meet access

a finished goods inspection mechanism centered on the RMA Improvement Management Specifications to ensure exported standards (e. g. RoHS REACH) international standards; standards will lead to lost

and upgraded quality and manage updates

products meet international market access requirements and user experience standards. orders from core clients

environmental certification Medium to to mandatory and

blocked exports product

We have established a quality management architecture where the General Manager serves as the primary responsible person Compliance & market requirements from anchor long term recommended standards delistings and fines or

with the Management Representative exercising comprehensive oversight. Under the Quality Management Department four access clients/distributors for precision in target markets across litigation costs arising from

hardware and electronic different product lines to

specialized modules (Testing Center Quality Control Department Supplier Quality Management and System Management) compliance breaches

products ensure comprehensive

collaborate with the technical supply chain manufacturing marketing and HR departments. This achieves a closed-loop quality certification coverage

control system spanning the entire lifecycle: from R&D design supplier evaluation and raw material inspection to production

monitoring finished product shipping and after-sales feedback. During the reporting period the ISO 9001 quality management

system certifications for the company and its subsidiaries (SACA Innovation Qingyuan SACA and Guangdong SACA) remained Opportunity Identification and Reponses

valid covering the design production and sale of guide rails hinges and hardware accessories.Type Description Timeframe Financial Impact Response Measures

Reduce procurement losses Strictly enforce supplier

Deeply empower supplier

caused by quality defects (e.g. admission and quality

quality management

scrap rates and secondary inspection processes;

systems to build a robust

processing fees); improve conduct regular quality

high-standard global Short term

Supply chain synergy capital turnover and overall audits technical coaching supply ecosystem through

supply chain resilience through and risk assessments to

penetrative quality

the supply of high-quality achieve mutual benefits

management

materials across the industry chain

Strengthen the functions

of the Precision Hardware

Earn the trust of international Steadily increase order share

Testing Center; upgrade

anchor enterprises and the from highly sticky strategic

process control levels;

high-end home furnishings clients; improve overall

Medium to benchmark against

market through exceptional gross margins and market

Quality premium long term top-tier international stability and technological penetration through high-

quality standards to

innovation thereby increasing value-added differentiated

carry out intelligent

market share products

transformations of

Quality Management System Certification Certificates production lines

93 94Corporate Citizenship:

Creating Shared Social Value

Case Strengthening Internal Audit Capabilities and Deepening Quality System Impact Risk and Opportunity Management Construction

SACA strictly controls product quality to the highest standards striving to build a leading brand of high-quality home hardware In October 2025 the Quality Manager organized specialized ISO 9001 Quality Management System training for all

and enhance the global competitiveness of our cross-border e-commerce products through full-lifecycle quality management a members of the Quality Control Department. The curriculum covered critical nodes such as system audit preparation

leading automated manufacturing system and a deeply rooted quality culture. implementation procedures and improvement tracking aiming to equip personnel at all levels with a deep mastery of

quality management tools. Through video learning and practical demonstrations we ensured that system standards

We have constructed a differentiated full-lifecycle quality control framework that precisely empowers the nature of our business

are accurately implemented in daily quality control work.operations. Relying on the Process Flow Chart and Control Plan the Precision Hardware division integrates quality supervision

throughout the entire process from material warehousing and audit acceptance to finished product shipping. We set process

control points and dimensional chain controls at critical stages (molding stamping and assembly) and enforce full-standard

control through first-article inspection patrol inspection and final inspection. The Cross-Border E-commerce division has

defined a closed-loop process of "Sample Testing & Verification → Bulk Golden Sample Confirmation → Outgoing Quality Control

(OQC) → RMA Improvement & ECN Change Control" to guarantee the controllable quality of sold products.We drive quality control improvements through automated and intelligent manufacturing upgrades. An automated precision

manufacturing system is in place covering everything from processing to testing. A combination of advanced equipment like

imported fully automatic roll forming systems industrial robot workstations and 2D/3D precision measurement tools along

with the localized transformation and optimization of advanced international processes significantly elevates the automation

level of critical processes like stamping assembly and packaging. This reduces manual intervention precisely controls assembly

dimensional chain errors and lowers product defect rates.We embed quality awareness into our corporate DNA and foster a cultural atmosphere where all employees pursue excellence

and continuous improvement by establishing a multi-layered training system and quality management mechanisms. Routine Quality Management System Training

monthly quality training and employee skills competitions enhance quality control capabilities while strengthening on-site

guidance for suppliers empowers the supply chain. This not only resolves immediate production hazards but also builds a

proactive "prevention-first" mechanism to ensure a comprehensive elevation in quality management levels.Case Union Empowerment: Forging Skills in the Workplace Metrics and Targets

In November 2025 using the Employee Skills Competition as a core platform SACA launched targeted quality

skills training across multiple roles. The training focused on blueprint reading professional software operation and Always adhering to the operational policy of "Quality First" SACA has established a quality performance monitoring system. By

equipment performance mastery to solidify technical application fundamentals; it reinforced processing techniques breaking down quality targets across R&D production supply chain and after-sales we dynamically track and finely manage

precision manufacturing standards and dimensional accuracy control to guarantee product quality compliance; quality risks.integration of equipment maintenance troubleshooting and anomaly handling skills boosted the efficiency of

quality risk management; the standardized use of measuring tools and self-inspection/submission processes were Fulfillment of Annual Core Quality Targets

covered to fortify the full-process quality defense line; through "one person multiple machines" practical training and

process improvement capability building we are nurturing hybrid quality talent to inject powerful momentum into the Annual Core Quality Target Progress

company's sustainable development.Precision hardware

Client inspection first-pass yield ≥ 99% √ Achieved

Production pass rate ≥ 99% √ Achieved

Scrap rate ≤ 2.01% √ Achieved

Cross-border e-commerce

Employee Skills Competition Outgoing inspection batch pass rate 95% √ Achieved

95 96Corporate Citizenship:

Creating Shared Social Value

During the reporting period product quality control remained excellent with no product recall incidents.Product Quality Performance

Establish liaison offices in primary client locations to maintain close communication through

regular visits phone calls emails and online customer service.Indicator 2025 Value

Systematically record customer feedback on product usage and service needs to drive

Product pass rate (Precision Hardware)(%) 99.56 Customer internal service quality improvements and ensure rapid responses to customer demands.communication

Inspection batch pass rate (Cross-Border E-commerce)(%) 95.10 channels Conduct regular annual customer satisfaction surveys using the results as a vital input for

evaluating and optimizing the customer experience.Annual internal quality audits 2

Third-party agency spot checks 2

Product recalls 0 The Online Sales Department of the Cross-Border E-commerce division clearly displays

product warranty and privacy policies on brand official websites to protect consumers' right

Product recall ratio (%) 0 to know. We have also established a data analysis mechanism based on customer negative

reviews and return rates to specifically optimize product quality and customer service

Customer processes.rights

enhancement The Offline Sales Department of the Cross-Border E-commerce division ensures rapid

response and resolution of channel after-sales issues by preparing 3% of after-sales spare

Deepening Customer Service Excellence parts in advance.Upholding a "Customer-Centric" service philosophy SACA strictly abides by the Law of the People's Republic of China on the

Protection of Consumer Rights and Interests and the Personal Information Protection Law of the People's Republic of China.We have formulated a series of systems including the Sales Operation Process Customer Complaint and Return Handling and We have built a multi-layered information technology security defense system. By

Information Security Management Measures. Tailored to diverse customer groups across different business formats (B2B and comprehensively applying Huawei Cloud ERP (including bastion hosts backups and security

B2C online and offline) we have established differentiated customer rights protection mechanisms to ensure every step from suites) firewalls (Cisco ASA Huawei) endpoint antivirus software (Kaspersky) behavior

Customer

initial sales contact and transaction processing to after-sales feedback is regulated and documented. management (Sangfor) network access control and backup software we strictly protect

privacy the security of customers' personal information. No information security incidents occurred

Differentiated customer service governance architectures have been built to suit our various business formats. Both major protection during the reporting period.business divisions feature a Sales Department that coordinates customer rights management for their respective formats. The 客户隐私保护

Precision Hardware division has set up International Domestic Key Account (KA) Channel and Business Development groups for

different client segments. The Cross-Border E-commerce division is divided into Online and Offline departments based on sales

channels. This rational functional division ensures precise protection of customer rights.The Precision Hardware division has formulated the Customer Complaint and Return

SACA has established standardized customer rights protection mechanisms implementing standardized measures across critical Handling and Customer Complaint Handling Procedures clearly defining the processes and

stages of the customer lifecycle including responsible marketing customer communication privacy protection complaint responsibilities for handling customer complaints and product returns forming a complete

response and product accessibility. management closed loop from reception analysis and processing to verification and closure.Product recall

For the primarily B2C sales model of the Cross-Border E-commerce division the Company

Customer Rights Protection Measures procedures

strictly follows the after-sales policies of each platform to handle customer requests. To date

no product quality incidents requiring a mass recall have occurred.All performance data and textual claims regarding precision hardware and 3C products used

in marketing materials are backed by internal testing or authoritative third-party test reports

ensuring that promotional content is authentic and accurate.To improve product accessibility and user experience the Cross-Border E-commerce division

Responsible We clearly and comprehensively disclose product information through official brand websites has rolled out digital product guides. Customers can easily access electronic manuals and

marketing product packaging and other channels to entirely prevent any form of concealment Product operational demonstration videos by scanning a QR code on the product lowering the barrier

exaggeration or false advertising. accessibility to use and enhancing service convenience.

97 98Corporate Citizenship:

Creating Shared Social Value

Viewing the customer service experience as a cornerstone of sustainable development SACA has established a customer service

performance monitoring and evaluation mechanism. We translate the "Customer First" philosophy into quantifiable trackable

goals integrating them throughout the entire customer lifecycle management process from service touchpoints and relationship Governance

maintenance to closed-loop improvements.SACA has constructed a standardized regulated and information-driven full-lifecycle supplier management system. Adhering to

Fulfillment of Annual Core Customer Service Targets laws such as the Bidding Law of the People's Republic of China we have formulated management systems including the Supplier

Management Operating Procedures and Supplier Performance Evaluation and Assessment Management Regulations. We have

perfected a full-process management mechanism covering supplier admission evaluation classification and modification

Annual Core Customer Service Target Progress regular inspections dynamic control comprehensive evaluation and monitoring/improvement. For outsourced electroplating

and corrugated packaging material suppliers that specifically provide products for key major customers the control requirements

shall concurrently comply with relevant standards including the process specifications designated by such customers.Customer satisfaction ≥ 80% √ Achieved The General Manager leads a supplier governance architecture featuring multi-departmental collaboration. The General

Manager comprehensively coordinates supplier management work exercising final approval authority over major matters such as

supplier onboarding and performance evaluation; the Supply Chain Management Department SQE Quality Control Department

Customer satisfaction ≥ 80% √ Achieved and Planning & Logistics Department operate collaboratively. They coordinate core tasks such as supplier audits and rectification

tracking incoming material quality management supplier performance assessment engineering change interfacing and

delivery/service management; the Production Technology and R&D Center provides professional support from a technical

Customer-side return rate ≤ 3207 PPM √ Achieved dimension assisting with supplier technical audits sample and batch trial production verification and engineering/material

change assessments to ensure all supplier management requirements are effectively executed.Supplier Management Organizational Architecture

During the reporting period customer service performance metrics for the Precision Hardware division were as follows:

Comprehensively lead supplier management

Customer Service Performance and exercise final approval on major decisions

l (e. g. onboarding performance evaluations)Genera

Manage

r

Indicator3 2025 Value

Coordinate supplier audits/rectification incoming ain

Customer satisfaction (%) 98 Supply Chgement na material quality performance assessment Ma E

Departm

ent SQ

Control

engineering changes and delivery/service

uality ning

Percentage of surveyed customers (%) 91 Q ment Planepart artment managementD

Logistic

s Dep

&

Support technical audits sample/batch

and R&

D trial verification and engineering/material

nology

tion Te

ch

c ter change assessmentsProdu Cen

Implementing Responsible Procurement

SACA is dedicated to building a safe efficient and sustainable supply chain. By strengthening whole-chain synergy deepening

joint prevention and control of procurement risks and enacting sustainable development concepts we systematically enhance

supply chain quality efficiency and risk control capabilities achieving optimized resource allocation and the coordinated

development of the entire ecological chain.

3Customer satisfaction statistics apply to the Precision Hardware division.

99 100Corporate Citizenship:

Creating Shared Social Value

During the reporting period a total of 4 suppliers completed the FSC Chain of Custody (COC) certification.Strategy

SACA prioritizes identifying and managing potential risks and opportunities within the supply chain. We view this as a strategic

imperative for building supply chain resilience elevating our competitive standing in the industry and seizing catalysts for

innovation and value growth.Risk Identification and Responses

Risk Type Risk Description Timeframe Financial Impact Response Measures

Establish price-locking

mechanisms and scaled

The Precision Hardware Drive up raw material

procurement systems for

business faces price fluctuations procurement costs delay

core raw materials like

in raw materials like steel Short term core order deliveries

Supply chain steel. Implement robust alongside the risk of supplier cause stockout losses and

volatility emergency response capacity shortages negatively impact cash flow

protocols for supply chain

disruptions

Create export barriers due to

International markets and environmental compliance Proactively invest in green

anchor clients are continuously limits. Green supply chain technology R&D. Ensure

raising their demands for green rectifications require extra that green compliance

Medium to

Escalating Green production and low-carbon capital for technological requirements are strictly

long term

Compliance logistics pushing environmental upgrades and production implemented and fully

requirements compliance pressure down the line transformations exerting controlled across every tier

supply chain dual pressure on profitability of the supply chain

and cash flow

FSC Chain of Custody Certification

Opportunity Identification and Responses

Type Description Timeframe Financial Impact Response Measures

Capture green order Formulate a green supply

Responding to global

premiums from anchor chain development

low-carbon trends by building

enterprises strengthen blueprint. Drive upstream

a comprehensive green

Medium partnerships with highly suppliers to execute green

supply chain encompassing

to long sticky strategic clients production line upgrades.procurement production and

Sustainable supply term establish an industry Develop eco-friendly logistics aligning perfectly with

chain benchmark and boost both hardware products and fully the green sourcing criteria of

product gross margins and recyclable packaging for

clients

market competitiveness cross-border e-commerce

Continuous resource

allocation to supply chain

Leverage digital and intelligent Drastically improve

digitalization to upgrade

technologies to upgrade inventory turnover rates

smart management

the entire supply chain and and order response times

Medium systems for real-time

break down data silos across lower operational and

to long data monitoring and

Digital supply procurement production management costs precisely term analytics and introduce

chain logistics and sales for smart capture market demand advanced technologies like

matching of inventory and and maximize operational

AI-driven order forecasting

orders efficiency

and intelligent logistics

scheduling

101 102Corporate Citizenship:

Creating Shared Social Value

We are committed to constructing a secure sustainable digitally empowered and mutually beneficial supply chain ecosystem.Impact Risk and Opportunity Management By executing a diversified supply layout and deep inventory synergy alongside the active promotion of sustainable procurement and SME support policies we join forces with our partners to collectively enhance industrial chain resilience and value creation

capabilities.Guided by the rules of fairness justice and transparency SACA remains committed to standardizing its supplier ecosystem. We Supply Chain Management Initiatives

strictly control the end-to-end lifecycle spanning supplier development onboarding evaluation and phase-out. By establishing a

sound admission and exit mechanism we guarantee the effectiveness of our supply chain management.Supply chain stability

Sourcing & Development

Supplier diversification: The "1+1+N" strategy means that the Company introduces one primary backup supplier

and cultivates one strategic reserve supplier for core products neutralizing single-source dependency risks

Potential Supplier Development: Identify candidates based on rigorous

procurement demand research and add them to the resource pool following initial Deep synergy mechanism: Sign safety stock SLAs with core suppliers to erect a "Rolling Forecast + Safety Buffer"

qualification and capability assessments mechanism. The Company furnishes a 6-month rolling demand forecast while suppliers are obligated to hold a

Sourcing 1-month strategic safety bufferScreening & Auditing: Conduct comprehensive on-site factory audits covering

basic information quality control systems and documentation in-process quality Smart inventory strategy: Optimize the geographic footprint of platform and overseas warehouses. This ensures safety

management warehousing environments equipment and instruments and stock volumes effortlessly cover 30 days of sales demand absorbing sudden market shockwaves

procurement workflows

Diversified logistics routing: Construct 3D logistics corridors. The Company develops air freight express sea and

regular sea channels for the U. S. market and integrates ocean rail and trucking arteries for Europe guaranteeing

absolute logistics fluidity during emergencies

Certification: Conduct stringent sample testing and qualification verification

Admission & followed by the signing of mandatory Quality and Anti-Corruption Agreements

onboarding Maintenance: Dynamically update and manage supplier profiles via our electronic

ERP system

Sustainable Supply Chain

Green localized procurement: Rigorously audit suppliers for sustainability credentials predominantly ISO 14001

Routine Assessment: Conduct monthly quarterly and annual comprehensive Environmental Management System Certification ISO 45001 Occupational Health and Safety Management System

evaluations covering incoming material quality process quality delivery Certification and FSC Forest Certifications; we aggressively champion localized procurement with 87.65% of suppliers

punctuality and service levels. Grading System: Suppliers are classified into four from South China massively slashing transit-induced carbon emissions

Performance tiers: A (Excellent) B (Qualified) C (Mandatory Time-Bound Rectification) and D

evaluation (Pre-Elimination) Anti-corruption & compliance: All core suppliers are mandated to sign binding Anti-Corruption Agreements during

their initial onboarding phase

Actionable Linkage: Evaluation results directly dictate procurement volumes and

serve as the definitive basis for supplier incentives or phase-outs

Standard Phase-Out: Include voluntary withdrawal corporate deregistration shifts

in procurement needs or lapsed qualifications

Phase-out

& exit Punitive Exit: Triggered by severe quality inspection anomalies major client

complaints regarding quality or consecutive failing performance evaluations

where rectification targets are not met

103 104Corporate Citizenship:

Creating Shared Social Value

The Company prizes ecological synergy with its partners. Through regular training sessions profound industry exchanges and

Case Connecting Global Merchants with Precision Engineering: Global Outreach sharp market insights SACA drives the development of partners upstream and downstream. at the Canton Fair

Ecological Synergy Initiatives In October 2025 SACA showcased unparalleled precision manufacturing in China at the China Import and Export Fair

(Canton Fair) thanks to its over 31 years of prowess in the home hardware sector as well as authoritative certifications

and patents. To technologically keep pace with the world the Company exchanged industry and market insights

Supplier Empowerment and Communication with elite global merchants at the trade shows underpinning its global service network. SACA always works to move

forward with global partners. While driving prosperity across the supply chain both share opportunities in the global

home hardware market creating an ecosystem of win-win collaboration.Build an O2O (Online & Offline) supplier training architecture. During the reporting period quality training was

conducted covering systems management product QC standards and DOE (Design of Experiments) test cases

Institutionalize a routine C-suite communication mechanism for strategic partners

Host after-sales meetings (e. g. RMA debriefs) for flagship products solving chronic quality bottlenecks

Industry Exchange and Market Insights

Participate in industry expos and field research activities gauge competitor footprint and new-product specs SACA's Booth at the 2025 Canton Fair

through unofficial channels and regularly attend expos on charging tech energy storage and consumer

electronics to stay ahead of the technology evolution curve

By surveying the downstream market size to extrapolate upstream capacity and collecting user pain points via

field visits the Company merged channel interviews with competitor analysis. This crystallized a new-product

development vector aimed at the "Ultimate Localized Experience" successfully commercializing raw market

insights into tangible product innovations

Metrics and Targets

Case Empowering Suppliers with Quality CAPA Mentorship Mechanism

Targeting full-lifecycle vendor management SACA has established a supplier performance tracking system anchored on supplier

demographics ESG governance and capacity building. The targets are implemented across critical nodes including supplier

footprint qualification certifications anti-corruption compliance and training.SACA provided intensive corrective

mentorship and training to a key supplier During the reporting period the Company maintained a roster of 243 active suppliers in the South East and Southwest regions

introducing "Punch List Accountability" of China.for non-conformances in the material

feeding and cooling anti-rust processes.This not only assisted the supplier in Supplier Demographics Overview

swapping out damaged cross-arms and

redesigning the feeding racks but also

helped them institutionalize a self-audit Total supplier count Including: East China South China Southwest China

mechanism slashing the recurrence rate

of chronic defects right at the source. 243 29 213 1

105 106Corporate Citizenship:

Creating Shared Social Value

Supplier ESG Management Performance Summary4

Social Welfare and Volunteer Services

Indicator 2025 Value

Percentage of ISO 14001 certified suppliers（%） 90 With its CSR commitment SACA engages in diverse public welfare activities including medical aid and eldercare. As the

Company expands its commercial footprint it honors its civic duties via concrete actions building a brand image of warmth and

Percentage of ISO 9001 certified suppliers（%） 100 bringing hope to society.Percentage of ISO 45001 certified suppliers（%） 80 Summary of Public Welfare and Volunteer Activities

Indicator 2025 Value

Supplier Training Performance Summary

Total number of projects 6

Training sessions Training hours Total attendances Coverage rate for core suppliers Total attendances 16

135 240 450 100% Total hours volunteered 8

Total individuals benefited 308

Total donations (RMB) 148000

Committing to Social Contribution

Case

SACA remains committed to corporate social responsibility and upholds its mission to give back to the community organizing Caring for the Elderly at Beijiao Yuyin Nursing Home

social welfare programs and supporting community building wherever it operates. Through these concrete actions of warmth it

shares the fruits of its high-quality growth with society at large.In 2025 the Company's management and volunteers visited the Beijiao Yuyin Nursing Home providing daily

necessities for the elderly and offering emotional support through intimate one-on-one conversations. Its sustained

outreach activities involving material aid and spiritual companionship at the Yuyin Nursing Home for 20 years aim

Rural Revitalization to elevate the quality of life and happiness of local seniors rallying broader societal forces to champion the aging

population.Guided by the central provincial municipal and county-level policies on poverty alleviation and rural revitalization SACA helps

fuel stable income growth and drive sustainable rural growth in villages of Qiandongnan Prefecture via industrial/consumption

subsidies targeted labor employment and charitable endowments.Case SACA Innovation Provides Assistance for Geyi Village (Qiandongnan Prefecture) Case Bringing Love and Warmth to the Community: Voluntary Blood Donation Drive

In 2025 SACA Innovation signed an assistance agreement with Geyi Village. Both parties will collaborate on fortifying SACA catalyzed employee participation by extensively popularizing blood donation knowledge and ensuring

grassroots Party building deepening industrial alliances promoting labor exports executing consumption-based professional and safe blood collection. The drive advocated for 100% voluntary participation with abundant nutritional

poverty relief propelling rural revitalization and pioneering charity services. This alliance helps forge a model village replenishment and guaranteed rest periods for all donors. Many employees were actively involved in spreading the

for rural revitalization while guaranteeing sustained stable income bumps for the poverty-alleviated population. hope of life. This showcased its humanistic ethos and philanthropic spirit of integrating with the community and

bringing warmth to all.

4Note: Statistical data regarding the proportion of suppliers with ISO 14001 ISO 9001 and ISO 45001 certifications as well as the Anti-Corruption

Agreement signing rate are based on the Cross-Border E-commerce segment.

107 108Corporate Citizenship:

Creating Shared Social Value

While driving localized operations the overseas subsidiaries and plants roll out philanthropic projects aimed at marginalized

Community Building and Overseas CSR Fulfillment demographics cultivating a "compassionate" international brand.SACA provides sustained support to the communities where it operates. During the construction and operation of overseas Case SVJ's Seishuryo Youth Care Initiative

projects our domestic factories alongside subsidiaries in Japan the US France and Germany go far beyond mere legal and

compliant operations designed to minimize negative community impacts. They proactively pinpoint community needs. By

deploying diversified avenues like employment assistance and public charity they ensure local communities reap the absolute As Japan's very first support shelter for youth from impoverished or domestic violence-afflicted families Seishuryo

maximum benefit from our corporate footprint. takes in vulnerable adolescents aged 15–20 who are unable to lead normal lives. Since the shelter opened its doors

To provide better employment support for youth demographics the Company has included "Graduate Internship Bases" at its SVJ has been providing tangible material care for the youths e.g. the electronics it produces every Christmas

domestic plants to curate high-quality internship slots perfectly tailored for fresh graduates. ensuring these aided adolescents feel the warmth and unyielding support of society.Case Qingyuan Internship Base: Empowering Graduates to Launch Their Careers

In response to the calls of CPC Central Committee and Guangdong Province regarding "Youth Employment (Including

University Graduates)" the Company established the "Graduate Internship Base" at its Qingyuan plant curating

premium internships for grads. Seasoned and skilled professionals are assigned as mentors to impart hands-on

skills to graduates so that they can level up their practical experience and technical acumen. SACA protects the legal

rights of its interns. Beyond living allowances not lower than local minimum-wage baselines SACA provides Personal

Accident or Work-Injury Insurance as well as logistical support including catered meals and dormitories. By opening

up tech-intensive manufacturing internships the Company has prepared young interns with agility in employment and

career transitions thus contributing its part to regional employment stabilization and the strategic reserve of high-end

manufacturing talent.Graduate Internship Base

109 110Key Performance Indicators

Key Performance Indicators Indicator 2025 Value

Risk control training sessions 2

Risk control training hours 2

Governance performance

Risk control training attendances 30

Indicator 2025 Value Compliance training sessions 15

Board meetings 4 Compliance training hours 30

Proposals reviewed by the Board 28 Participants in compliance training 150

Expected attendances on Board meetings 28 Audit Training sessions 56

Attendance rate of Board meetings (%) 100 Audit Training hours 32

General Meetings 2 Audit Training attendances 600

Expected attendances of directors at General Meetings 14

Proposals reviewed at General Meetings 16

Environmental performance

Attendance rate of directors at General Meetings (%) 100

Strategy and ESG Committee meetings held 0 Indicator 2025 Value

Nomination Committee meetings 0 Expenditure on environmental protection (RMB millions) 2.1517

Remuneration and Appraisal Committee meetings 1 Environmental emergency drills 2

Proposals reviewed by the Remuneration and Appraisal Committee 2 Environmental protection training sessions 2

Audit Committee meetings 6 Environmental protection training attendances 80

Proposals reviewed by the Audit Committee 21 Environmental protection training hours 3

Anti-corruption training sessions for management 1 Office paper consumption (tonnes) 3.63

Anti-corruption training sessions for employees 1 Domestic water consumption (tonnes) 123051

Anti-corruption training hours for management 1 Direct (Scope 1) GHG emissions (tCO2e) 868.81

Anti-corruption training hours for employees 1 Indirect (Scope 2) GHG emissions (tCO2e) 2201.96

Management attendances in anti-corruption training 5 Total GHG emissions (Scope 1 and Scope 2) (tCO2e) 3070.77

Employee attendances in anti-corruption training 15 GHG emission (Scope 1 and Scope 2) (tCO2e / RMB millions of revenue) 2.05

111 112Key Performance Indicators

Indicator 2025 Value Indicator 2025 Value

Total purchased electricity (MWh) 5052.98 Invention patents 11

Self-consumed PV power generation (MWh) 903.03 Utility model patents 19

Gasoline consumption (tonnes) 14.96 Design patents 9

Diesel consumption (tonnes) 266.15 Total Industry Standards Led/Co-drafted 2

Total energy consumption (tce tonnes of coal equivalent) 1141.81 Total group standards led/co-drafted 1432

Energy consumption intensity (tce / RMB millions of revenue) 0.76 New group standards led/co-drafted in the year 49

Green Electricity Certificates (GECs) purchased 527 Total R&D projects participated 29

Total green power purchased (MWh) 527 New R&D projects in the year 22

Domestic effluent discharge (tonnes) 61525.5 Expenditure on intellectual property (RMB) 40.86

General waste generated (tonnes) 56.28 IP training sessions 10

Hazardous waste generated (tonnes) 35.5 Total IP training hours 15

IP training attendances 218

Employees

Social performance Total number of employees 1464

By gender

Indicator 2025 Value

Male 939

Technological innovation

Female 525

R&D professionals 193

By age

R&D expenditure (RMB millions) 39.3567

30 and under 415

Accumulated effective authorized patents 483

31 to 50 853

Including: Invention patents 98

>50196

Utility model patents 274

By ethnicity

Design patents 111

Ethnic majority (Han) 1323

Newly authorized patents in the year 39

Ethnic minorities 141

113 114Key Performance Indicators

Indicator 2025 Value Indicator 2025 Value

By region Major production safety accidents 0

Chinese Mainland 1442 Major work-related injuries 0

Overseas Hong Kong Macau & Taiwan 22 Work-related fatalities 0

By education Workdays lost to major injuries 0

Associate degree and below 1257 Total training attendances 4328

Bachelor's degree 187 Total training hours 326

Master's degree and above 20 Total training sessions 288

Special employees Quality Management

Poverty-alleviated & long-term unemployed 39 Product pass rate (Precision Hardware) (%) 99.56

Person with disability 17 Inspection batch pass rate (Cross-Border E-commerce) (%) 95.10

Turnover rate 9.31 Annual internal quality audits 2

Expenditure on employee training (RMB) 27000 Third-party agency spot checks 2

Total training sessions 192 Product recalls 0

Total training hours 155.55 Product recall ratio (%) 0

Total training attendances 6257 Customer satisfaction (%) 98

Average training hours per employee 2.62 Percentage of surveyed customers 91

Labor contract signing rate (%) 100 Supply Chain Management

Social insurance coverage rate (%) 100 Total supplier count 243

Financially disadvantaged employees assisted 20 Including: East China 29

Assisted employees per RMB millions of revenue 0.01 South China 213

Work Safety Southwest China 1

Safety hazard rectification rate (%) 99.5 Percentage of ISO 14001 certified suppliers 90

Number of safety emergency drills 5 Percentage of ISO 9001 certified suppliers 100

Expenditure on work safety (RMB) 603000 Percentage of ISO 45001 certified suppliers 80

115 116Appendix I: Indicator Index

Indicator 2025 Value Appendix I: Content Index

Training sessions 135

Sustainability Reporting SZSE Self-Regulatory Guidelines for Listed

Primary

Training hours 240 Secondary Heading Standards Companies No. 17 – Sustainability Report Heading

(GRI Standards) (Trial)

Total attendances 450 ABOUT THIS REPORT 2-1/2-2/2-3 /

Chairman's Statement 2-22 /

Coverage rate for core suppliers (%) 100 About SACA 2-1/2-6 /

ESG Management 3-1/3-2/3-3/2-14/2-29 Stakeholder communication

Social Responsibility

Embracing Green Growth with Low-Carbon

/ Innovation-driven Development

Initiatives

Total number of projects 6

Embarking on a New Digital Journey with

/ Innovation-driven Development

Total attendances 16 Intelligence as the Engine

Consolidating the

Responsible

Total hours volunteered 8 Foundation of / Stakeholder communicationGovernance: Governance

Partnering for

Total individuals benefited 308 Future Prosperity Standardizing Corporate Anti-unfair competition anti-corruption and/

Operations anti-bribery

Total donations (RMB) 148000 Addressing Climate 305-1/305-2/305-4/305-5 Climate Change Mitigation and Adaptation

Environmental Change

Stewardship: Environmental

/ Environmental compliance management

Safeguarding the compliance management

Ecosystem Implementing Cleaner Pollutant emissions; waste management;

302-1/302-3

Production energy utilization use of water resources

Strengthening Innovation

/ Innovation-driven Development

Capabilities

Innovation-Driven

Translating R&D

Growth for Core / Innovation-driven Development

Excellence

Values

Protecting intellectual

/ Innovation-driven Development

properties

People-Centric Fostering Employee 2-7/401-1/401-2/402-2/

Employees

Development: Growth 404-1/404-2/405-1

Upholding the

Safety Bottom Fortifying Safety 403-1/403-2/403-3/ Employees

Line Foundation 403-5/403-7/403-9

Implementing Stringent

417-1 Product and service safety and quality

Quality Standards

Corporate Deepening Customer Product and service safety and quality /

Citizenship: Service Excellence data security and customer privacy protection

Creating Shared Implementing

Social Value 308-1/308-2/414-1/414-2 Supply chain security and resilience due diligenceResponsible Procurement

Committing to Social

/ Social Contribution

Contribution

2-7/201-1/302-1/305-1/305-2/305-4/

Key Performance Indicators /

305-5/401-1/403-5/403-9/404-1

Content Index / /

Feedback Form 2-16 /

117 118Appendix II: Feedback Form

Appendix II: Feedback Form

Thank you for reading this report.To provide more valuable information to you and our stakeholders effectively advance the Company's ESG management and

practices and continuously improve the Company's ESG disclosures we welcome your valuable feedback.Your Information

Name: Organization:

Contact Number: E-mail:

1.What is your overall assessment of our ESG performance

□ Excellent □ Good □ Fair □ Poor □ Very Poor

2.What is your overall assessment of this report

□ Excellent □ Good □ Fair □ Poor □ Very Poor

3.How do you rate our performance in stakeholder communication

□ Excellent □ Good □ Fair □ Poor □ Very Poor

4.How do you rate our performance in green development

□ Excellent □ Good □ Fair □ Poor □ Very Poor

5.How do you rate our performance in social contribution

□ Excellent □ Good □ Fair □ Poor □ Very Poor

6.How do you rate the clarity accuracy and completeness of the information data and indicators disclosed in this report

□ Excellent □ Good □ Fair □ Poor □ Very Poor

7.Do you find the content arrangement and layout design of this report easy to read

□ Yes □ No

8.Do you have any comments or suggestions regarding our ESG performance or this report

Note: Please tick "√" in the corresponding "□"

119120