华测导航:2024年环境、社会和公司治理（ESG）报告（英文）

About This Report

This report presents the Environmental Social and Governance (ESG) disclosures of Shanghai Huace Navigation Technology Ltd. (hereinafter referred to

as “CHC Navigation” “the Company” or “we”) for our stakeholders. It offers a comprehensive overview of our 2024 performance and practices in economic

environmental social and corporate governance areas. The purpose of this report is to support clear communication with stakeholders and to systematically

address their expectations and needs.Reporting Period Reliability Assurance

The reporting period covers January 1 2024 to December 31 2024. To enhance comparability and forward-looking relevance certain sections may The Company affirms that the content of this report is true accurate and complete with no false statements misleading information or material

include data or information from previous years or anticipated future developments. omissions.Reporting scope Abbreviations

This report includes responsibility-related information from Shanghai Huace Navigation Technology Ltd. and its subsidiaries covering key aspects of CHC Navigation the Company or we refers to Shanghai Huace Navigation Technology Ltd.economic social environmental and corporate governance. Relevant case studies drawn from the Company and its subsidiaries are also provided.Preparation basis Report Access

United Nations Sustainable Development Goals (SDGs) This report is available in electronic format for your convenience and can be accessed on the Company's official website. For any questions or

feedback please contact us via email or phone.China Corporate Social Responsibility Reporting Guidelines (CASS -ESG 6.0) issued by Chinese Academy of Social Sciences

Company's official website: www.huace.cn

Guidance on Social Responsibility Reporting (GB/T 36001-2015) issued by China National Institute of Standardization

Email: huace@huace.cn

ISO 26000: Guidance on Social Responsibility (2010) issued by International Organization for Standardization

Tel: 021-64950939

Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report (For Trial Implementation) issued by

Shenzhen Stock Exchange

Reporting data This report is published in both Chinese and English. In the event of any discrepancy in interpretation between the two versions the Chinese version shall prevail.The information in this report is sourced from official internal documents statistical reports and annual reports of Shanghai Huace Navigation

Technology Ltd. The disclosed data reflects CHC Navigation’s actual operational performance supplemented by public government data financial

records internal statistics third-party surveys and evaluator interviews. All financial data is presented in RMB. In case of discrepancies the official

financial reports shall prevail.

01 02Message from the Chairman

The past year marked a pivotal period of embracing change and On the path of fulfilling corporate social responsibility we

pursuing innovation-driven development for CHC Navigation. actively fulfill our corporate citizenship based on a deep sense ofGuided by our vision of “Building an Intelligent World with responsibility and mission.Precise Spatiotemporal Information” we have been committed

to the field of high-precision navigation and positioning. Driven We firmly believe that employees are the most valuable asset of

by technological innovation we have made unremitting efforts to an enterprise and commit ourselves to creating a fair inclusive

tackle core technical challenges and expand the boundaries of and humane workplace. To this end we have established a

product applications. From traditional fields such as surveying complete set of compensation and benefits system provide

digital construction and emergency monitoring to emerging diversified training and personal development opportunities and

sectors like autonomous driving precision agriculture and smart strictly implement occupational health and safety measures in

cities our solutions can be found in diverse scenarios. These order to fully support the growth and development of employees

solutions fuel digital transition across industries showcasing our fully stimulate their creativity and increase their loyalty. At the

strong capabilities and commitment to innovation in science and same time we actively participate in public benefit work and

technology. take the lead in education support disaster relief and many

other social good activities. From improving educational equity

To all stakeholders: As for the corporate governance we hold to integrity as a to participating in emergency rescue we demonstrate our

Thanks for your kind attention! fundamental principle to build a solid foundation for business accountability of corporate citizenship through practical actions growth. and make contribution to social harmony and stability.As a trendsetter of the times we deeply

understand that the mission and We have established a “three meetings” governance structure Looking into the future CHC Navigation will stick to its original

responsibility of an enterprise have gone supporting efficient collaboration upon clearly defined rights intention and put ESG concepts into practice with higher

far beyond the traditional business and responsibilities to protect the rights and interests of all positioning wider vision and more practical measures. The way

concept and deeply integrated into the shareholders especially the legitimate rights and interests of forward of our Company is a sustainable development path that

grand narrative of social development. minority shareholders with scientific decision-making process. resonates with the national development of China facilitates

We Shanghai Huace Navigation Good corporate governance is the ballast stone of an enterprise and benefits from social progress and natural environment in a

Technology Co. Ltd. (“CHC Navigation”) for sailing forward steadily and the key support for resisting harmonious manner. The value of an enterprise lies not only in

hereby presents this sincere and risks and achieving long-term strategic goals. At the same creating economic wealth but also in creating comprehensive

responsible 2024 Environmental Social time we actively embrace the digital transformation optimize value for society safeguarding lucid waters and lush mountains

and Corporate Governance (ESG) organizational management methods and business processes for future generations and contributing to the building of a

Report to you and hope to witness with with advanced information technology promote the evolution of community with a shared future for mankind. We look forward

you the steady steps of CHC Navigation enterprise from scale development to a new stage of high-quality to working together with all stakeholders to leverage the precise

towards sustainable development as development and maintain superior governance efficiency to spatiotemporal positioning of CHC Navigation to explore the

well as our efforts devoted in creating a ensure high-quality development. amazing intelligent world and jointly embark on a promising

better future based on our wisdom and 03 journey to sustainable development.Faced with the challenge of global climate change we actively

insights. embrace the low-carbon concept and foster green transformation

with technology.Chairman of CHC Navigation

Yanping Zhao We strictly control environmental risks in business operation

by applying adequate environmental management policies and

systems and ensure that waste water waste gas and solid waste

are discharged after treated in compliance with all applicable

standards to safeguard our clean world. We inject green

genes into the design research and development stages of our

products ranging from chips and modules to complete systems

devote effort to achieving lightweight and low power consumption

help customers reduce their carbon footprint and contribute CHC

Navigation’s wisdom and strength to global climate governance.

03 04Shanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

About CHC Navigation

Company Overview

CHC Navigation specializes in research development manufacturing and commercialization

of high-precision navigation and positioning technologies. We are a leading company in

China’s high-precision spatiotemporal information industry.Guided by the vision of “Building an Intelligent World with Precise Spatiotemporal Information”

the Company has focused on high-precision navigation and positioning technologies.Over time it has gradually established two core technological pillars i.e. a high-precision

positioning chip technology platform and a global satellite-ground integrated enhancement

network service platform. Furthermore the Company has steadily developed a wide range

of high-precision navigation and positioning intelligent equipment systems and solutions

strengthening its competitiveness across various application areas including Resources &

Utilities Buildings & Infrastructure Geospatial and Robotics & Autonomous driving.We follow an innovation-driven development strategy and place strong emphasis on

scientific research. CHC Navigation has been awarded one National Medal of Technology

and Innovation and four State Scientific and Technological Progress Awards and holds over

900 intellectual property rights. We have also received the National May 1 Labor Medal and

are recognized as a National Enterprise Technology Center. For six consecutive years we

have been listed among the Top 100 Outstanding Enterprises in Shanghai’s Qingpu District.In 2020 our BeiDou high-precision positioning equipment successfully reached the summit

of Mount Everest as part of the Everest Elevation Measurement Project marking a major

milestone in precision navigation.By the end of the reporting period CHC Navigation operated 29 provincial-level service

offices across China and had established branches in 10 countries and regions including

Hungary Japan and Singapore serving customers in over 140 countries and regions

worldwide. Our products and solutions are widely used in industries such as natural

resources construction transportation water conservancy electricity agriculture

education and environmental protection. They are also increasingly applied in emerging

fields such as smart cities autonomous driving and artificial intelligence. Looking ahead we

will continue to invest in research and development strengthen our competitive advantage

and uphold our customer-first approach by delivering high-quality products and solutions to

meet the needs of society.CHC Navigation has been awarded 4 holds over

Main Products and Services

State Scientific and

1 CHC Navigation boasts a diversified product portfolio that encompasses surveying and mapping RTK products 3D intelligent solutions National Medal of Technology Technological Progress Awards 900 intellectual property rights. marine surveying and mapping equipment deformation monitoring systems navigation applications precision agriculture solutions and

and Innovation digital construction technologies. The Company has also developed a high-precision positioning service system that serves a wide range

of sectors including surveying and mapping agriculture geological disaster prevention water conservancy mining emergency response

transportation ocean forestry and electricity. With these strengths the Company provides high-precision positioning equipment system

applications and solutions to customers across various industries.CHC Navigation operated ad established branches in serving customers in over

29 provincial-level service offices 10 countries and regions 140 countries and regions

across China including Hungary Japan and worldwide

Singapore

0506

About CHC Navigation Integrity as the Foundation Innovation-Driven Collaborative Efficiency Smart Low Carbon Empowerment Working Together for Working Together for the Leading the Way with Smart Development Creating Value Partnerships for a Shared Smart Protection for a Green Progress Growing with Public Good Bringing Warmth

Navigation with Intelligence Future New Planet Intelligence to Society with InnovationShanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Our Journey

20242023202220212020

In June 2024 we along with five other In November 2023 the Company's In April 2022 we were honored with the In October 2021 we were honored with the Shanghai On May 27 2020 the Chinese Survey Team reached the

entities participated in the project automotive-grade integrated product National May 1 Labor Medal. May 1 Labor Medal. summit of Mount Everest with our BeiDou high-precision“Beidou High-Precision Real-Time achieved ASPICE Level 2 certification. In November 2021 we along with six other entities receiver being the only domestic BeiDou receiver used for theFusion Monitoring Technology and Major In October 2022 and February 2022 participated in the project “Key Technologies and summit’s elevation measurements by mountaineering teamEngineering Applications” which was CHC Navigation celebrated its 20th our two major facilities in Shanghai and Large-Scale Engineering Applications of Centimeter- members throughout the expedition.awarded the Second Prize of National anniversary. Wuhan were officially launched marking Level Specialized Mobile Measurement Equipment” In the same year we launched our “Xuanji” high-precision

Science and Technology Progress Award. key milestones in our operational

Establish post-doctoral research which was awarded the Second Prize of National baseband chip fully developed and protected by our

expansion.stations. Science and Technology Progress Award. independent intellectual property rights.In January 2020 together with six other entities weparticipated in the project “Beidou Performance Enhancementand Wide-Area Decimeter Satellite-Based AugmentationTechnology and Applications” which received the Second Prize

of National Science and Technology Progress Award.

201220152016201720182019In October 2012 we undertook the National In 2015 our self-developed Beidou In November 2016 our project “Key Technologies In March 2017 we completed our initial In October 2018 the Hong In October 2019 we were awardedHigh-tech R&D Program (863 Program)’s high-precision core board passed a and Applications of Multi-Mode Multi-Frequency public offering (IPO) and were officially Kong–Zhuhai–Macau Bridge the First Prize of the Shanghaimajor project—High-Precision Positioning review by six academicians. Beidou High-Precision Boards” won the third prize listed on the ChiNext board of the Shenzhen officially opened. We provided Key Product Quality Research

System and Application Demonstration. in the Shanghai Science and Technology Awards. Stock Exchange. surveying services bridge surface Achievement Award.In November 2016 our Beidou receiver i70 won In December 2017 our joint project paving solutions and automated In December 2019 we participateda Silver Award at the China International Industry “High-Precision and High-Reliability deformation monitoring for the in the Ministry of Natural Resources’Fair. Positioning and Navigation Technology and project. Universal Monitoring for GeologicalIn December 2016 our collaborative project Applications” developed in collaboration Disasters project.“Key Technologies and Industrialization of Beidou with five companies was awarded theNavigation and Positioning Services” won the Second Prize of National Science and

Special Prize in the Shanghai Science and Technology Progress Award.Technology Awards.

2010200920052003In April 2010 we participated in the In February 2009 our “Geodetic GPS Dual- In March 2005 we developed an integrate On September 12 2003 CHCRound Table Meeting on China-Africa Frequency Surveying System” was awarded dual-frequency RTK system. Navigation was established.Cooperation in Surveying and Mapping the third prize in the Shanghai Science and

and donated 12 sets of GNSS Technology Awards.equipment to African countries. In October 2009 we successfully developed

In December 2010 we were and localized the core motherboard for a

recognized as a Key High-Tech dual-frequency GPS surveying system.Enterprise of the National Torch Also in October 2009 our products

Program. accompanied China’s Antarctic research

team on its expedition to Antarctica marking

the first time a domestic GNSS system

reached the highest point in the Antarctic

interior.

0708

Navigation with Intelligence Future New Planet Intelligence to Society with InnovationShanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Our Milestones in 2024

In 2024 we moved forward with steady progress combining collective wisdom and shared strength. United in purpose we

remained focused on quality and continuous improvement laying a solid foundation for sustained success.Our Products Earned Trust and Recognition Driving Strong Sales and a Solid Reputation Our Journey of Industry-Academia Collaboration

In 2024 we engaged with over 100 universities across China to strengthen communication and collaboration.GNSS RTK sales exceeded 100000 units for the year. We supported the National Higher Education Competition for Surveying and Mapping Teaching Innovations and

Talent Development hosted the first national seminar on Surveying and Mapping Training Room Construction and

Our automotive-grade products achieved total deliveries exceeding Management and organized four 3D Data Collection and Processing Technology Workshops for university faculty.

300000 units. Our Strategic Journey to Industry Expansion Beginning in September our “Intelligent Surveying and Mapping on Campus” initiative reached 57 universities in

20 provinces helping upgrade training and teaching methods. The program received strong support from higher

The CHCNAV unmanned surface vessel smart platform equipped with With innovation at the core we expanded our education institutions nationwide.ADCP and HQ multi-beam integrated solutions continued to grow its

presence across multiple industries in marine surveying. network driving technological breakthroughs and enabling their successful application across multiple

Our agricultural auto-steering systems surpassed 60000 units in annual industries.sales.The RS series system powered by innovative laser SLAM and GNSS

2024 National Higher Education Competition for Vocational Education Training of Surveying and fusion technology played a leading role in advancing industry development. Surveying and Mapping Teaching Innovations and Mapping——3D Data Collection and Processing Technology Workshop Seminar on Surveying and Mapping Training Room Talent Development Construction and Management

Achieve success in both sales and reputation

Our Success on the Global Markets

In 2024 amid global changes we entered a new

Building an Open and Collaborative “Partner + CHC Navigation” chapter of international growth. We hosted the Our Path Marked by Achievement and Progress Our Path of Embracing Social Responsibility

Ecosystem for Accelerated Growth International Partner Conference strengthening In 2024 as we maintained our focus on product and In 2024 fully aware of our social responsibility we leveraged

relationships with partners around the world. We technological excellence CHC Navigation received our advanced technologies to support disaster relief and rescue

In 2024 we transformed our marketing approach by building an open also accelerated the establishment of overseas broad recognition from both industry and society operations across various regions. Through our technical expertise

growth-driven “Partner + CHC Navigation” ecosystem. Our partnerships subsidiaries deepening our presence in Asia- marking a year of significant achievements. We we contributed to disaster prevention mitigation and emergency

in many product lines doubled. This expansion unified efforts across Pacific and European markets while integrating were honored with one national-level award and response in critical situations. From flood protection at Dongting Lake’s

RTK marine 3D products and industry solutions fostering deeper with local communities to boost market share. We four awards at the provincial and ministerial levels. Tuanzhou Dyke to supporting relief efforts during the historic flood in

collaboration and creating a positive cycle of mutual benefit. At the same continue to expand our global product portfolio Guangdong’s Beijiang River conducting flood flow measurements in

time we rolled out a series of strategic initiatives and support systems to staying true to our strategy of evolving from local to Huangshan and providing landslide monitoring in Zhaotong Yunnan

offer our customers stronger market support and timely expert technical a global presence. and Shanghang Fujian—we stood ready wherever and whenever

services. technology was needed most.On-Site Inspection of the Once-in-

Dongting Lake Flood Protection and Landslide Monitoring in Shanghang a-century Flood in Guangdong’s

Dyke Monitoring Fujian Beijiang River

CHC Navigation at World-Class Exhibitions Around the GlobeOur project “Beidou High- Our project “Beidou High-Precision Real-Time Fusion Precision Real-Time Fusion

Monitoring Technology and Major Monitoring Technology and MajorEngineering Applications” won Engineering Applications” won

the Second Prize of National the Second Prize of National

Join hands with our partners to build a nationwide after-sales service network Science and Technology Science and Technology Huangshan Flood Flow Landslide Monitoring in Zhaotong National Emergency Drill

featuring the "Partner + CHC Navigation" model Progress Award. Progress Award. Measurement Yunnan

0910

AAbboouutt CCHHCC NNaavviiggaattiioonn IInntteeggrriittyy aass tthhee FFoouunnddaattiioonn IInnnnoovvaattiioonn--DDrriivveenn CCoollllaabboorraattiivvee EEffifficciieennccyy SSmmaarrtt LLooww CCaarrbboonn EEmmppoowweerrmmeenntt WWoorrkkiinngg TTooggeetthheerr ffoorr WWorokrinkgin gTo Tgoegtehtehre fro fro trh teh e LLeeaaddiinngg tthhee WWaayy wwiitthh SSmmaarrtt DDeevveellooppmmeenntt CCrreeaattiinngg VVaalluuee PPaarrttnneerrsshhiippss ffoorr aa SShhaarreedd SSmmaarrtt PPrrootteeccttiioonn ffoorr aa GGrreeeenn PPrrooggrreessss GGrroowwiinngg wwiitthh PuPbulibcl iGc oGoodod B rBinrgininggin gW Waramrmtht h

NNaavviiggaattiioonn wwiitthh IInntteelllliiggeennccee FFuuttuurree NNeeww PPllaanneett IInntteelllliiggeennccee tot oS oScoiectiey twy iwthit hIn InnonvoavtaiotnionShanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Our Corporate Culture Date Honors & Awards Award Description 荣誉证书

VISIONAs a company with vision “Building an Intelligent Building an Intelligent World withWorld with Precise Spatiotemporal Information” Precise Spatial-Temporal Information

we are committed to focusing on the challenges The First Prize of theThe project “Key Technologies forSpace Error Processing in Navigation

and needs that matter most to our clients Shanghai Science and Satellite Precision Positioning anddelivering competitive precise spatiotemporal July 2024 Technology Awards Star-Earth Integration Applications”

information solutions and services and creating won the First Prize of the Shanghai

maximum value for our clients while actively Science and Technology Awards.contributing to societal progress. MISSION Our Corporate

Values CORE VALUES

Focusing on the Challenges and

Needs Our Clients Care About Empowering Clients Striving

Focusing on the Challenges and for Excellence Self-Criticism

NDelivering Competitive Precise Openness to Growth Integrity and Top 100 Enterprises in We were honored as one of the

Spatial-Temporal Information Trust Teamwork.Solutions and Services August 2024 the 2024 Geographic“Top 100 Enterprises in China’sInformation Industry Geographic Information Industry Constantly Creating Maximum 2024” steadily climbing the rankings

Value for Our Clients from 10th to 3rd place in recent

years.Our Honors and Awards CIIFHigh-Tech The H7 Integrated GNSS Monitoring

September Engineering Award Station won the CIIF High-Tech

at the 24th China Engineering Award at the 24th China 2024 International Industry International Industry Fair.Date Honors & Awards Award Description 荣誉证书 FairThe Second Prize in The project “Beidou High-Precisionthe State Scientific and Real-Time Fusion Monitoring China Agricultural

The NX510 Auto-steering System

June 2024 Technological Progress Technology and Major Engineering October Machinery Annualwon the “China AgriculturalApplications” won the Second Prize TOP50+ Application Machinery Annual TOP50+ Award.of National Science and Technology 2024 Contribution Award Application Contribution Award.”

Progress Award.The projects: High-Precision GNSS

Positioning Measurement Theory

Innovation and Key Technologies

Key Technologies and Applications The Complex Scenario Beidou

The Second Prize in the of Shanghai 3D Spatial Geographic October The Second Prize High-Precision Spatio-temporal

Shanghai Science and Digital Base Construction and the of Jiangsu Province Key Technologies and Applications

Technology Awards Key Technologies for Space Error 2024 Science and

Processing in Navigation Satellite Technology Award

Project won the Second Prize of

the Jiangsu Province Science and

Precision Positioning and Star- Technology Award.July 2024 Earth Integration Applications were

awarded the Second Prize of the

Shanghai Science and Technology

Awards.Included in the Ministry The Acoustic Doppler Flow November Global Top 100 The Digital Construction Intelligent

of Water Resources’ Measurement System lightweight Guidance System won the Global

2024 Catalogue of Key unmanned surface vessel was

Intelligent Control

2024 Systems Award Top 100 Intelligent Control Systems

Promotion and Guidance successfully included in the Ministry award.for Advanced and of Water Resources’ 2024 Catalogue

Practical Technologies in of Key Promotion and Guidance for

Water Conservancy Advanced and Practical Technologies

in Water Conservancy.

1112

Navigation with Intelligence Future New Planet Intelligence to Society with InnovationShanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

ESG Governance Stakeholder Identification and Communication

* Sustainable Management Stakeholder Identification Expectations and Concerns Communication and Response

CHC Navigation attaches great importance to the identification and management of key ESG topics. To proactively respond to the Lawful and compliant operations Internal control management

concerns of stakeholders the Company has been dedicated to improving the processes for identifying and validating social responsibility Adequate information disclosure Information disclosure

topics enhancing stakeholder communication and research optimizing topic evaluation methods and developing a matrix of material

topics. These topics are disclosed in the report to meet the expectations of stakeholders. Protection of shareholder rights and interests Diverse investor communication

Investor relations management

Shareholders Intellectual property management

Adherence to business ethics Fair competition

Governance Topics

Corporate governance investor relations management anti-corruption and integrity internal control 01

of risks information security

Lawful and compliant operations Internal control management

Anti-corruption Information disclosure

Internal control Diverse investor communication

Government

and Regulatory Compliance with regulatory requirements Intellectual property managementEnvironmental Topics

02 Authorities Fair competitionEnvironmental management green operations and tackling climate change

High-quality products Innovative R&D

Social Topics Aftersales service High-quality customer service

Innovation in scientific research quality control high-quality services employee development 03

Customers Privacy protection Information security managementindustry collaboration and public welfare

Rights and interests and their protection

Compensation and benefits Compensation management and incentives

Protection of employee rights and interests

Training programs

Employee training and career development

Employees Democratic management

Employee health and safety

Occupational health management

Supplier management Supplier management system

Joint advancement of industries Participation in industry activities

Industry cooperation

Industries Contribution to drafting documents

Participation in community activities

Social welfare

Disaster relief support

Community

and the Public

1314

Navigation with Intelligence Future New Planet Intelligence to Society with InnovationShanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Integrity at our Core

Leading the Way with Smart NavigationAt CHC Navigation we operate with the principle of “Integrity at Our Core Leading theWay with Smart Navigation.” We have built a modern corporate governance model

featuring a collaborative system led by the Company’s three key governing bodies.This structure enhances governance effectiveness through clear organizational

roles and science-based decision-making. In investor relations we’ve developed

a comprehensive multi-layered communication system steadily increasing our

visibility and recognition in the capital markets. We have also established a long-term

anti-corruption framework and implemented comprehensive integrity monitoring

laying a strong governance foundation to support our vision of becoming a global

leader in navigation and positioning solutions.Corporate Governance

Investor Relations Management

Internal Controls

Business Ethics

Information Security

1516

Navigation with Intelligence Future New Planet Intelligence to Society with InnovationShanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Corporate Governance Governance by the Three Key Bodies

We strictly follow relevant laws regulations and guidelines such as the Company Law of the People’s Republic of China the Securities We have established a governance structure composed of the General Meeting of Shareholders the Board of Directors and the

Law of the People’s Republic of China the Rules Governing the Listing of Shares on the ChiNext Market of Shenzhen Stock Exchange Board of Supervisors. The General Meeting operates on the principle of equality safeguarding the legal rights of all shareholders

and the Self-Regulatory Guidelines No. 2 for Standardized Operations for ChiNext Listed Companies. We continuously enhance our with special attention to minority shareholders. The Board of Directors is formed through standardized procedures and supported

corporate governance structure by building robust internal management and control systems. Our governance framework clearly defines by well-defined internal management systems ensuring sound decision-making and responsible execution of duties. The Board of

the roles and responsibilities of rights organizations decision-making bodies supervisory bodies and management—ensuring checks Supervisors exercises its oversight independently and in accordance with the law monitoring key decisions financial performance

and balances informed decision-making and coordinated operations. The General Meeting of Shareholders Board of Directors and and the conduct of senior executives. This governance model provides a solid institutional foundation for corporate governance

Board of Supervisors operate in accordance with regulatory standards. Independent directors and specialized committees actively fulfill supporting stable development and the long-term protection of shareholder interests.their duties. We are committed to promoting standardized transparent operations and continuously improving our corporate governance

practices.In line with the Company Law of the People’s Republic of China the Rules Governing the

Listing of Shares on the ChiNext Market of Shenzhen Stock Exchange and our Articles of

Association we follow standardized procedures for convening and conducting shareholder

meetings including voting and related processes. We uphold the principle of equality

Board of Directors General Meeting ensuring that all shareholders especially small and medium-sized ones have the opportunity

of Shareholders to fully exercise their rights. This guarantees the legality and effectiveness of decisions made

at the General Meeting of Shareholders and protects shareholder interests.Audit Department

We strictly follow the procedures set out in the Company Law of the People’s Republic of

China and our Articles of Association to elect directors. The number and composition of the

EMT Board meet all legal and regulatory requirements. We have also established a comprehensive

internal management system that clearly defines the responsibilities and authority of the

Board of Directors. This ensures that all directors attend Board and Shareholder meetings

Board of with a responsible attitude diligently fulfilling their duties to protect the overall interests of

Directors the Company.Human Resources

Department Finance Department

The Board of Supervisors of the Company is elected in strict accordance with the Company

Law of the People’s Republic of China and our Articles of Association. The number and

composition of the Supervisors meet all legal and regulatory requirements. The procedures

Strategic Development for convening and holding Supervisory meetings of the Company comply with related

Department Legal Department regulations of the Rules of Procedure for the Board of Supervisors. All Supervisors actively

Board of fulfill their supervisory duties independently overseeing major corporate matters financial

Supervisors conditions and the performance of directors and senior executives to ensure legality and

compliance.Quality & Administration

Process IT Department Department

Board Diversity

Our Board of Directors consists of seven members—one female and

six male—with diverse academic and professional backgrounds in

Supply Chain Center Marketing Center business management accounting and law. This diversity brings

Our Board of Directors and

Product Lines Product & R&D Center a broad range of perspectives enhancing the quality and depth of consists of seven members

decision-making. We have also implemented Independent Director

Work Guidelines to ensure that independent directors carry out

their responsibilities impartially with a focus on protecting the

overall interests of the Company especially the rights of minority 1 female 6 male

shareholders. This system supports both the independence and

Corporate Structure objectivity of our governance process.

1718

Navigation with Intelligence Future New Planet Intelligence to Society with InnovationShanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Investor Relations Management Internal Control

We view the enhancement of our governance system as a key pillar of sustainable development. By strengthening our internal control

We place a high priority on managing information disclosure and investor relations fully complying with relevant laws regulations and mechanisms we aim to improve both operational management and risk prevention capabilities. We have established a comprehensive

our company’s articles of association. We have implemented the Information Disclosure Management System and the Investor Relations internal control system and implemented standardized management policies to ensure all business activities are legal compliant

Management System. These systems standardize our disclosure practices strengthen management processes protect investors’ legal and secure with accurate and reliable financial information. We strictly comply with tax laws and regulations maintain a sound tax

rights and clearly outline the principles responsibilities and communication methods for managing investor relations. This enhances management system standardize tax filing procedures and provide employee tax training to effectively manage tax risks and protect

corporate governance safeguards investors’ interests and provides institutional support for the Company’s sustainable growth. the Company’s reputation. In addition we continue to enhance our financial management system to ensure the quality of financial data

and protect the legitimate rights of the Company shareholders and creditors.Internal Control Management

Communication Channels

with Investors We strictly follow relevant laws regulations and guidelines such as the Company Law of the People’s Republic of China the

Securities Law of the People’s Republic of China the Rules Governing the Listing of Shares on the ChiNext Market of Shenzhen Stock

Exchange and the Self-Regulatory Guidelines No. 2 for Standardized Operations for ChiNext Listed Companies. We continuously

enhance our corporate governance structure by building robust internal management and control systems. Our governance framework

Announcements Shareholders’ Performance One-on-One Phone Mailing Advertising and Roadshows On-Site Company clearly defines the roles and responsibilities of rights organizations decision-making bodies supervisory bodies and management—Meetings Briefings Meetings Inquiries Materials Media Promotion Visits Website ensuring checks and balances informed decision-making and coordinated operations. The General Meeting of Shareholders Board

of Directors and Board of Supervisors operate in accordance with regulatory standards. Independent directors and specialized

Our Communication Channels with Investors committees actively fulfill their duties. We are committed to promoting standardized transparent operations and continuously improving

our corporate governance practices.Key Principles of Investor

Relations Management Establish and improve business processes and related regulatory requirements to ensure that our

Enhance process internal control and risk management cover the key aspects of our operational activities.and system

management

Strengthen cost accounting analysis promote technological innovation and conduct regular

Optimize cost inspections and evaluations; implement comprehensive budget management to ensure the rational

budget and use of funds; improve the monitoring of funds to ensure financial security.Compliance Equality Proactivity Integrity and financial controls

Honesty

Key Principles of Investor Relations Management Implement a robust information security system to protect critical data and systems. Manage

and control the development and changes of information systems to ensure system stability and

Improve functionality.information flow

Case Study Advancing Investor Relations Management and Enhancing Transparency Ensure compliance with laws regulations and industry standards maintaining legal and ethical

Focus on business practices. Provide regular compliance training to enhance employee awareness.compliance

In 2024 we actively conducted investor relations activities through multiple channels including performance briefings targeted Our Internal Control Management System

investor meetings offline investor reception days following regular report releases conference calls and responses via

Hudongyi the Shenzhen Stock Exchange’s online interactive platform. During the reporting period we responded to 86 inquiries

on Hudongyi and welcomed 265 investor visits during our offline reception days.Tax Management

we responded to 302 We fully comply with tax laws and regulations to ensure the legality and compliance of our tax activities. We ensure timely accurate A total of investor interactions were and complete tax filings and payments and cooperate with tax authorities during audits and investigations by providing the required

86 conducted through investor reception days information. We have clearly designated responsible parties and established workflows for tax management to ensure smooth tax inquiries on Hudongyi conference calls and other channels filings and payments. Additionally we prioritize tax education for our employees raising awareness of tax laws to ensure that they

act in accordance with the law during the tax process minimizing the risk of tax issues caused by individual actions. In short we

continuously enhance our management practices in tax compliance improve our tax management strengthen internal controls and

mitigate tax risks.

1920

Navigation with Intelligence Future New Planet Intelligence to Society with InnovationShanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Financial Management Anti-Fraud Management

In accordance with the Company Law of the People’s Republic of China and other relevant regulations tailored to our company’s specific In accordance with the Company Law of the People’s Republic of China the Insurance Law of the People’s Republic of China the

needs we have established a Financial Management System to strengthen financial management and economic accounting while Internal Control Standards for Insurance Companies the Basic Standards for Internal Control of Enterprises and the Insurance Audit

safeguarding the legitimate rights of the Company shareholders and creditors. Guidelines we have developed our Anti-Fraud Management Measures to prevent and resolve fraud risks standardize business

practices protect shareholder rights and ensure that the Company achieves its operational goals while maintaining sustainable

stable and healthy growth.Financial Management

Anti-fraud organizational

structure and responsibilities

Finance Business Financial Accounting Funds Operations

Partner (FBP) Tax ManagementManagement Management Management Board of Directors Executive

Office corporate functional Legal & Compliance and

Company

departments and All employees

departments and subsidiaries Audit Departments

Financial Management Key Focus Areas subsidiaries

Business Ethics As the unit responsible Establish anti-fraud In accordance with Ensure compliance with

for anti-fraud efforts policies manage fraud CHCNAV’s anti-fraud laws regulations and

reporting and oversee requirements develop company policies. Any

We view business ethics as a core pillar of sustainable growth and we are committed to fostering an environment that is honest investigations into fraud and continuously improve suspected fraud should be

transparent and responsible. We have established a comprehensive anti-fraud management system that covers the full process—from cases management systems reported through proper

risk prevention and detection to response and recovery after an incident. To reinforce ethical conduct we regularly conduct business and procedures for each channels to the Legal or

ethics training to raise employee awareness of compliance ensuring that all activities align with legal standards and industry regulations. department and designate Audit Department.In all interactions with clients suppliers and competitors we strictly comply with anti-monopoly laws and fair competition regulations. We personnel to oversee anti-

require all employees to uphold high ethical standards and avoid any form of unfair competition. By continuously enhancing our business fraud activities.ethics management system we effectively reduce operational risks strengthen compliance practices and support the long-term stable

development of the Company. Anti-Fraud Organizational Structure and Responsibilities

Integrity Building Case Study To strengthen integrity and self-discipline CHCNAV held various integrity awareness activities

We strictly adhere to anti-corruption and anti-bribery laws recognizing integrity as a fundamental pillar of our sustainable development. In 2024 CHC Navigation launched a series of integrity-focused initiatives including “Say NO to False Reimbursement”

We have established a robust anti-fraud management system and implemented our Anti-Fraud Management Measures which clearly the “Seven Principles of Self-Discipline” and Integrity Campaigns during the New Year Spring Festival and Mid-Autumn

define roles and responsibilities to effectively prevent and address fraud risks protect shareholder interests and support stable business Festival. We also held Domestic and International Integrity Briefings for both suppliers and employees during major holidays.growth. We maintain a zero-tolerance policy toward corruption and bribery enforce a comprehensive Business Ethics and Anti-Corruption These initiatives reflect CHCNAV’s core value of “Integrity and Trust” setting a benchmark for clean governance within

Policy and operate a whistleblower protection system that encourages employees to report violations. These efforts help us continuously the industry and laying a strong ethical foundation for building a globally competitive enterprise. They also support the

strengthen compliance awareness across the Company. development of a long-term integrity mechanism of “dare not corrupt cannot corrupt do not want to corrupt” helping drive

the Company toward high-quality sustainable growth.Key Achievements

During the reporting period there was 0 instance of employees being dismissed (or disciplined) investigated by authorities or having

contracts with business partners terminated or not renewed due to commercial bribery or embezzlement.During the reporting period there was 0 lawsuit involving the Company its directors management or employees related to commercial “Seven Principles of Self-Discipline” Promotional Activity New Year Integrity Mid-Autumn Festival Campaign Integrity Campaign

bribery or embezzlement.

2122

Navigation with Intelligence Future New Planet Intelligence to Society with InnovationShanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Business Ethics and Anti-Corruption Information Security

We are committed to doing our business with integrity maintaining high standards of honesty compliance fairness and transparency. We

have a zero-tolerance policy towards corruption and bribery. Our Business Ethics and Anti-Corruption Policy focuses on four key areas:

risk prevention risk identification risk response and post-incident recovery. It ensures that all employees comply with laws regulations To fully align with national information security

and our internal policies when interacting with government agencies and business partners and in their day-to-day operations. We strictly policies and classification requirements we

prohibit any form of corruption bribery or commercial bribery and continuously work to enhance our business ethics management system. have specially developed the Information

Security Policy and Strategy to enhance our

company’s information security management.This policy outlines the goals principles

Complaint and Reporting phone number;Reporting email address;Department and implementation steps for managing

Reportingchannels responsible for handling reports;Mailing address information security with the aim of building

a comprehensive multi-layered information

Whistleblowers should provide information about the individual security system. We have established a

Key Elements for being reported as much as possible such as their name strong information security management

EffectiveReporting department job title details of the fraudulent or unethical behavior framework strengthened data classification

and any supporting evidence. and management and implemented strict Reporting access controls and encryption technologies

Mechanism to ensure both the efficient operation of

If there are any discrepancies in the information provided by the information systems and the protection of data.Whistleblower Rewards whistleblower no liability will fall on them. If a report is made We also provide regular information security

anonymously and is confirmed to be accurate and meets the training to all employees to raise awareness

necessary criteria a reward may be offered. and improve risk prevention skills fostering a

culture of security across the Company.We are committed to protecting employees who make honest

Whistleblower Protection reports of violations or suspected violations of this policy ensuring Additionally to mitigate potential information

that they are shielded from any form of retaliation. security risks from third-party partners

personnel and systems we have

implemented the Third-Party Security

Reporting Mechanism for Corruption and Bribery Management Guidelines which define third-

party entry standards security responsibilities

and oversight requirements. This strengthens

We prohibit disclosing the whistleblower's name the security management of our external

department address or any personalinformation. partners and ensures the overall integrity and

sustainability of our company’s information

Whistleblower We also forbid sharing any materials related to the

security.Protection whistleblower including the report withthe person

being investigated their department or unrelated

parties.Whistleblower Protection Policy

Information Security Management Goals

Fair Competition

Maximize the protection of information systems’ integrity confidentiality and availability from threats.All employees are expected to respect the rights of customers suppliers and competitors and to engage in fair honest and transparent Ensure that the frequency of major information security incidents (Level II) remains as low as possible with a target of 0

business practices. Employees are strictly prohibited from exploiting others through manipulation concealment misuse of privileged incident per year.information distortion of facts or any other unlawful conduct. We ensure that all interactions with suppliers customers competitors and

government entities reflect fair and lawful business practices in full compliance with competition laws and regulations in the countries and

regions where we operate.We require all employees to follow these core principles when interacting with customers suppliers competitors and other stakeholders:

1. Fully respect the legal rights of all parties and adhere to the principle of fair trade. 2. Strictly prohibit any form of unethical business

behavior including but not limited to information manipulation abuse of privileges and distortion of facts. 3. Ensure all business activities Security-Driven Leadership Company-Wide Continuous

align with internationally recognized fair competition standards and comply with competition laws in the countries and regions where we Principle Accountability Participation Improvement

operate supporting a sustainable and equitable business environment for all.Legal Compliance Use of Proven

Balancing

Key Achievements Technologies Management and Technology

During the reporting period there was 0 instance of lawsuits or significant administrative penalties due to unfair competition.Information Security Management Principles

2324

Navigation with Intelligence Future New Planet Intelligence to Society with InnovationShanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Management System Management Team

We have successfully achieved ISO 27001 certification for our Information Security Management System creating a framework that meets We have established key policy documents including the Information Security Leadership Team Structure and Responsibilities

international standards to ensure the security of data throughout its collection storage transmission and processing. Through regular Authorization and Approval Management System and Security Inspection and Audit Management System to clearly define the

internal audits third-party assessments and vulnerability scans we quickly identify and address potential security risks continuously roles and responsibilities of our information security staff. This ensures that our information security strategy is effectively developed

optimizing our data security management processes. implemented and overseen ensuring the continuous operation of the information security management system. Our information

security team consists of a 14-person leadership group and a 6-person working group who manage the development and operation

of the information security management system together.Key Achievements

It is responsible for reviewing and approving the overall planning budget technical

standards management norms and related policies for information security construction

and application.It makes decisions on major matters related to the development of the information

security system and oversees the implementation of the information security framework.It resolves decision-making issues promptly in the project construction process and

provides guidance on all tasks.It approves and issues information security policies and the management system.Responsibilities of the

Leadership Team It approves information security plans and project approvals.It ensures the availability of resources for information security.It is responsible for reviewing and promoting information security strategies.ISO 27001 Certification for Information Security Management System

It establishes communication channels with internal and external experts authoritative

organizations partners and suppliers and manages external information release and

Our information security management framework is based on the ISO 27001 standard tailored to our specific needs. We use the “PDCA” announcements in a unified manner.(Plan-Do-Check-Act) model for ongoing improvements ensuring the system’s comprehensiveness effectiveness and adaptability

providing a strong security foundation for the continued growth of our business.It is responsible for the implementation and advancement of the information security

system regularly communicating with and reporting to the working group leader on

relevant matters.P (Plan)–Planning D (Do)–Implementation

It coordinates and communicates with consulting companies regarding project

It involves setting clear information This covers the management implementation and the progress of projects in the Company ensuring smooth knowledge

security goals and strategies providing requirements for daily information security transfer.guidance for the overall security tasks including organizing security teams

management across the Company. managing personnel securing systems It is responsible for establishing the security management system and supervising the

handling operations and overseeing asset execution of information security management policies.protection. Responsibilities of the

“PDCA” Working Group It plans and oversees information security-related projects ensuring the effective

Information implementation of information security risk assessments and management.Security It develops the annual review plan determining the scope of reviews and internal audit

Management content.Model

It is responsible for drafting reviewing and promoting information security strategies

C (Check)–Monitoring A (Action)–Response standards processes and regulations.

It focuses on continuous improvement It involves addressing security incidents It creates a business continuity plan.through activities like risk assessments and emergencies analyzing issues and

audits and security reviews ensuring that developing new policies and controls to It establishes communication channels with internal and external experts authoritative

the information security system evolves maintain the effectiveness and relevance organizations and stakeholders managing external information releases and

and improves. of the security system. announcements in a unified manner.Information Security Management Team Responsibilities

2526

Navigation with Intelligence Future New Planet Intelligence to Society with InnovationS华h测an导gh航ai Huace Navigation Technology Ltd. Environmental Social a环nd境 G、ov社ern会an和ce公 (E司S治G)理 Re报po告rt关于华测导航智诚领信导为航基筑根基智创创新价驱值动谱新篇

Emergency Management In-house Training

We have created a comprehensive emergency management system which includes policies like the Monitoring and Security Management This refers to training conducted in the Company provided either by internal staff or external instructors.Center Guidelines Network Security Management Policy System Security Management Policy Security Incident Reporting and Response

Storage Media Management Policy and Information System Emergency Response Plan. These documents are regularly updated to

ensure a systematic and organized approach to managing information security reducing risks minimizing losses and keeping business

operations running smoothly. External Training

On the technical side we have built a full-scale information security protection system that includes security defense strategies employee

access controls log analysis management server firewalls and a security awareness platform. These measures help reduce the risk of This refers to public courses or specialized programs (including seminars lectures etc.) held outside the Company which are arranged

information system failures and ensure quick responses to emergencies minimizing any potential impact on business operations. based on the training plan and employee development needs.Information Security Training Methods

Awareness Campaign and Training

To ensure effective implementation of our information security management we have developed the Information System Personnel

Management System and the Information Security Training Management System. These systems help maintain high professional

standards and skill levels among staff working with sensitive information reducing the risks of errors fraud and misuse of resources

while safeguarding information confidentiality integrity and availability.We regularly conduct privacy protection training to strengthen employees’ understanding and capabilities in data privacy and protection.This training covers topics like privacy policy interpretation data classification and privacy risk identification ensuring that all staff adhere

to privacy protection standards in their everyday work and build a solid foundation for data security.We also offer specialized training for middle and senior management helping them understand the importance of the information security

management system and ensuring their full support for its implementation. This support is critical for the smooth progress of the system. At

the start of each year we create a training plan based on our needs ensuring that every employee receives at least one basic information

security management training session. Afterward we assess the effectiveness of the training through testing to ensure knowledge

retention and skill improvement.Intranet Information Security Awareness Campaign

2728

A bout CHC Navigation Integrity as the Foundation

Innovation-Driven Collaborative Efficiency Smart Low Carbon Empowerment Working Together for Working Together for the

Leading the Way with Smart Development Creating Value Partnerships for a Shared Smart Protection for a Green Progress Growing with Public Good Bringing Warmth

Navigation with Intelligence Future New Planet Intelligence to Society with InnovationShanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Innovation-Driven Development

Creating Value with IntelligenceAt CHC Navigation our vision is to “Build an Intelligent World with Precise Spatio-temporal Information” driven by technological innovation. We specialize in high-

precision positioning and provide accurate reliable and intelligent solutions to

users worldwide. We continually advance our core technologies support the

digital transformation of the industry explore new applications and strive to build a

comprehensive high-precision positioning ecosystem.Innovation-Driven

Intellectual Property Protection

Product Quality

2930

Navigation with Intelligence Future New Planet Intelligence to Society with InnovationShanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Innovation-Driven Development R&D System

CHC Navigation has adhered to research and innovation as its core driving force. In line with our innovation-driven approach we have We have established a three-tier architecture based on the Integrated Product Development (IPD) system clearly defining business

built a multi-layered technology framework and a global R&D system forming an ecosystem that supports core technology development layers and focusing on enhancing product competitiveness and technical platform capabilities. Guided by a well-defined R&D strategy

international collaboration and specialized talent cultivation. We focus on applying cutting-edge technologies while incorporating green and technology roadmap we rely on a highly skilled R&D team to support our global expansion. In 2024 we launched a comprehensive

design principles into product development promoting a shift toward efficiency and low-carbon solutions across the industry. We also organizational transformation aimed at defining new business rules establishing unified language standards and designing solution

promote industry-academia-research collaboration partnering with universities and research institutions to accelerate the commercialization frameworks. These efforts have already brought improvements in product portfolio management and quality control further enhancing

and implementation of technological breakthroughs. Throughout our innovation journey we stay committed to technology ethics and social the efficiency and collaboration of our R&D system.responsibility ensuring that our progress supports sustainable development and delivers long-term value to society.Key Achievements

R&D Strategy

During the reporting period our total R&D investment reached RMB 469.0191million accounting for

14.43% Built on core high-precision navigation and positioning technologies the Company has established two fundamental platforms namely of our total revenue. a high-precision positioning chip technology platform and a global satellite-ground integrated enhancement network service platform.

It has also developed four major application sectors comprising Resources & Utilities Buildings & Infrastructure Geospatial and

Robotics & Autonomous driving. These application sectors span industries such as agriculture construction surveying and mapping

and autonomous driving offering precise positioning solutions while continuously strengthening technological barriers and market

competitiveness.Key Achievements

Our self-developed products have received numerous honors including the National Technology Invention Award (Second

Prize) 4 National Science and Technology Awards (Second Prize) 19 provincial and ministerial-level awards and 2 4

2 Platforms Application

Silver Awards at the China International Industry Fair. We have also earned several prestigious industry accolades such as Sectors

the Special Award for Excellence in Satellite Navigation and Positioning Engineering and Products. Resources & UtilitiesHigh-Precision Positioning Chip

Technology Platform Buildings & Infrastructure

Global Satellite-Ground Geospatial

Integrated Enhancement Network

Service Platform Robotics & Autonomous driving

Two Fundamental Platforms Four Application Sectors

High-Precision Positioning Chip Global Satellite-Ground Integrated Resources & Utilities

Technology Platform Enhancement Network Service Platform (Agriculture Forestry and Public Utilities)

Core Products Technical Support

Buildings & Infrastructure

GNSS chipboards modules and SWAS wide-area augmentation

antennas algorithm and global satellite-ground (Surveying Construction Operation &

integrated enhancement network Maintenance)

service platform

Technical Advantages Geospatial

Objectives

Independently controllable low cost (UAV aerial surveying LiDAR mobile

low power consumption and high Provide global customers with precise mapping and unmanned surface

performance reliable and secure positioning vessel water exploration)

enhancement services and solutions

Objectives Robotics & Autonomous driving

Continuously improve chip technology (High-precision positioning for passenger

and enhance competitiveness vehicles and positioning and navigation

Innovation-Related Awards for intelligent robots)

Core High-Precision Navigation and Positioning Technologies

3132

Navigation with Intelligence Future New Planet Intelligence to Society with InnovationShanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Technology Strategy R&D and Applications

As a leader in high-precision satellite navigation and positioning we are dedicated to BeiDou’s high-precision spatiotemporal intelligent Our products are designed with a strong focus on stability reliability and user-

information. Our primary focus is on areas such as integrated PNT，chip modules and terminals space-ground-sea intelligent perception friendliness. By continuously enhancing our multi-sensor fusion technologies andsystems and autonomous robots for automated tasks. We actively engage in the “Explorer Program” of the Science and Technology algorithms we deliver highly efficient solutions—from chips to modules and complete

Commission of Shanghai Municipality (STCSM) partnering with research institutions to drive innovation. Additionally we are increasing systems—while optimizing for lightweight design and low power consumption. Our

investments in R&D in AI industrial robotics and multi-source integrated navigation and positioning technologies aiming to push forward core technologies are highly adaptable meeting the needs of various industries.scientific breakthroughs support industry innovation and tackle future technological challenges. We also prioritize sustainable design refining hardware and algorithms to reduce

resource usage and achieve a balance between performance and energy efficiency.Space-ground- Autono1ols

Integrated PNT Chip Modules sea Intelligent Robots for

and Terminals Perception Automated

Systems Tasks Core Technology Applications

We specialize in the development and application of BeiDou high-precision satellite navigation and positioning technology building a

Technology Strategy comprehensive system that spans 2D to 3D and integrates space ground air and sea operations. Our core technologies are widely

applied in traditional industries such as surveying and land management as well as in emerging sectors like smart cities autonomous

driving and artificial intelligence. We have established four key application areas: Resources & Utilities Buildings & Infrastructure

R&D Team Geospatial and Robotics & Autonomous driving forming a complete product and solution ecosystem.Our R&D team comprises nearly 700 skilled professionals most of whom hold PhDs or master’s degrees in disciplines such as satellite

navigation computer science and technology and mechanical engineering. With deep technical expertise and a strong focus on innovation

our team is recognized for its industry leadership and holds a high level of international expertise. This solid foundation enables us to Green Design

remain at the forefront of technological innovation and product development.We are committed to the principles of green design making environmental protection a core focus in our product development.During the design and manufacturing process we carefully select RoHS-compliant raw materials ensuring our products are free

from harmful substances and have a minimal environmental impact. Our products are also certified by recognized authorities earning

environmental certifications that reflect our dedication to combining technological innovation with sustainable eco-friendly practices.International Expansion

As part of our international strategy we have established an R&D center in the UK dedicated to GNSS technology innovation. The center Key Honors

collaborates closely with leading UK universities to develop efficient cutting-edge GNSS solutions enhancing the performance and

reliability of high-precision positioning systems. Our research focuses on data analysis algorithm optimization and the advancement of

existing technologies to deliver more advanced and dependable positioning solutions.Type II Environmental Label Product Certification

3334

Navigation with Intelligence Future New Planet Intelligence to Society with InnovationShanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Case Study Developing the H7 integrated GNSS monitoring station with built-in power supply achieving breakthroughs in energy efficiency through low-power technology Recruited 2 postdoctoral researchers.Postdoctoral Recruit 3-5 postdoctoral researchers in 2025

Focusing on green design the Company adopted a sleep-wake mechanism for Research Station

energy-saving management during the research and development of the H7

integrated GNSS monitoring station with built-in power supply. The facility utilizes

a low-power NB-IoT narrowband communication solution replacing traditional

high-power 2G/3G/4G networks to further reduce energy consumption. The power Invited professors from top universities such as Shanghai Jiao Tong University Tongji University

consumption of the H7 station is controlled within 2W achieving an industry-leading and Wuhan University to serve as distinguished experts

standard and significantly outperforming similar products on the market. Equipped

with a built-in solar power system the H7 station reduces reliance on conventional Academician and Develop research and development plans define research topics and provide guidance for

energy sources and helps minimize environmental pollution. Its green design not H7 integrated GNSS monitoring station with Expert Workstation postdoctoral researchers and students

only enhances energy efficiency but also provides sustainable technical support for built-in power supply

such fields as geological disaster monitoring and traffic safety offering remarkable

environmental benefits and application value.Research Workstation

We are actively committed to nurturing talent through strong industry-university partnerships. We have established joint training

Industry-Academia-Research Collaboration programs with China’s top-tier institutions such as Shanghai Jiao Tong University and Tongji University aimed at cultivating master’s and doctoral students whose professional and practical skills closely align with our Company’s needs. Additionally we implement a

multi-tiered talent recruitment strategy to build a competitive and diverse talent pool supporting the Company’s long-term growth and

We maintain close partnerships with universities and research institutions establishing post-doctoral research stations and academic sustainable success.expert workstations to create an integrated industry–academia–research collaboration platform. This accelerates the transformation of

academic research into practical technologies. Through skill master and chief technician workshops we manage projects that convert

academic findings into product innovations. Our experienced technical teams play a key role in turning theoretical research into market-

ready solutions enhancing our technological competitiveness and ability to respond to market needs.Key Achievements

During the reporting period we launched 4 industry-university collaboration projects under the STCSM Explorer Program.we have jointly trained over we have

1doctoral student 10master’s students 1employee rated as Shanghai 1Industry Leader

Outstanding Talent Shanghai Jiao Tong University–CHC Navigation 2024 Joint Excellent Engineer Training Program Launch and 2023 Student Internship Welcome Event

Approximately Adherence to Scientific Ethics

1 1 1 270 individuals We adhere to scientific ethics throughout our product development process with a focus on high-precision navigation and positioning

member of the Shanghai Top Talent from the Qingfeng member of the Eastern have been granted technologies and their related products and solutions. By addressing real-world industry needs we apply intelligent technologies to

Leading Talent Program of Talent Program Youth Talent Project Shanghai household modernize traditional workflows enhance operational efficiency and deliver tangible value to our clients. At present our technology

Eastern Talent Plan registration (hukou) development and implementation do not involve any ethical concerns related to human safety decision-making or human-machine

through the city's talent interaction.attraction policies

3536

Navigation with Intelligence Future New Planet Intelligence to Society with InnovationShanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Intellectual Property Protection Timely Incentive Program of R&D Center

At CHC Navigation we place great emphasis on intellectual property protection and innovation-driven development having successfully In addition to intellectual property incentives we have developed a timely incentive program for our R&D center. This program covers

obtained a wide range of intellectual property rights. To foster innovation we implement an intellectual property incentive system that various types of rewards including quality performance bonuses value-driven rewards knowledge contribution awards and process

encourages our R&D teams to continuously overcome technical challenges. Additionally we prioritize the protection and management of optimization prizes ensuring that employees’ innovative achievements in different areas are recognized and rewarded. Every quarter

intellectual property by regularly offering training and awareness programs to educate our employees on intellectual property laws and we recognize outstanding performers based on their contributions and reward them accordingly. This helps boost the team’s creativity

regulations enhance confidentiality awareness and ensure that our technological innovations are effectively safeguarded. and drives continuous progress in our R&D efforts.Key Achievements Quarterly Star Value-Driven Timely Incentive Experience/Skill Knowledge Process

Reward of Quality Sharing Contribution Award Optimization

Recognizing top Award

CHC Navigation holds over 900 intellectual property rights including over 400 patents performers each employees For notable For valuable For teams or . quarter. whose ideas or improvements in contributions individuals who For impactful

suggestions are quality efficiency through technical excel in building process

adopted. and process as exchanges and departmental improvements

well as effective skill training. knowledge bases. and optimizations.use of tools

successful

implementation

R&D Incentives of improvements and full team

involvement.To support ongoing innovation and technological progress we have established a robust incentive system to motivate our scientific and

technical personnel. This includes both intellectual property rewards and timely incentives from our R&D center. The implementation Timely Incentive Program of R&D Center

of these measures not only boosts the Company’s ability to attract and retain top talents but also enhances the overall expertise of our

technical staff fueling continuous innovation and contributing to the long-term growth of the Company.Intellectual Property Training

As an innovation-focused company we place great importance on intellectual property protection. We regularly organize IP-related

activities such as comprehensive training sessions online quizzes and other initiatives to raise employees’ awareness of intellectual

Intellectual Property Incentives property. This encourages full participation from everyone and strengthens our ability to protect our innovative achievements providing

a solid foundation for the Company’s long-term growth.To strengthen our independent innovation capabilities and motivate our researchers we have developed the Intellectual Property Reward

Management Policy. This policy provides differentiated rewards for achievements such as software copyrights invention patents and

academic papers ensuring a steady stream of intellectual property output. This approach enhances our core competitiveness and drives

both technological innovation and long-term development. Case Study Intellectual Property Month–Enhancing IP Knowledge

In April 2024 we launched the Intellectual Property Month which included

distributing IP knowledge cards hosting themed seminars and holding online

quizzes. These activities aimed to educate employees on the basics of intellectual Over 200

property related laws and regulations and real-world applications. The goal was employees participated

to increase awareness across the Company and enhance our capacity to protect

our innovations. Over 200 employees participated in the event. in the event.We offer cash rewards to Intellectual property Each year we conduct If any employee attempts

employees who actively achievements are a key an awards program to to claim ownership of a

participate in intellectual factor in the evaluation recognize and reward job-related invention without

property applications of technical titles job departments and individuals authorization we will hold

and successfully secure appointments promotions who excel in meeting them legally accountable and

corresponding rights. and other forms of intellectual property goals. seek financial compensation

recognition. for any losses incurred by the

Company.Activities held during the Intellectual Property Month

Overview of Intellectual Property Incentive Policy

3738

Navigation with Intelligence Future New Planet Intelligence to Society with InnovationShanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Product QualityAt CHC Navigation we adhere to the philosophy of “making CHCNAV atrusted organization and CHCNAV products synonymous with high quality.”

We focus on continuous quality improvement through process optimization

and standardized procedures. By implementing system documents such as

the Non-Conformance Control Procedure and the Product Protection Control

Standard we provide a solid institutional foundation for quality management.We also established the Quality Management Committee to oversee quality-

related decisions including approving quality policies setting goals approving

major improvement projects and assigning responsibilities for resolving issues

ensuring a scientific and efficient approach to quality management.Quality Goal: To make CHC Navigation a benchmark for high quality in the geographic information and surveying industry.Key Achievements

Quality Policy

By the end of the reporting period the Company had 51 quality-related procedural documents and 372 process documents.Success through quality:We are always mindful that quality is the cornerstone of CHCNAV’s survival and the reason our

customers choose us. We ensure that customer requirements and expectations are accurately communicated across our

entire value chain building quality system together.Key Certification We respect processes get things right the first time unlock our employees’ potential and continuously improve. We work

alongside our customers to balance opportunities and risks quickly respond to their needs and achieve sustainable growth.CHCNAV is committed to delivering high-quality products services and solutions consistently creating value for every

customer.Quality Strategy

1.We see quality as the lifeblood of our company. It is the foundation of our brand and value proposition and plays a critical

role in fostering long-term loyal customer relationships.

2.We strive for excellence centering our focus on the end-user experience. We ensure quality through four dimensions:

systems products components and processes maintaining high standards for results processes and our reputation.

3.We aim to create a culture that respects rules and processes gets things right the first time and continuously improves.

4.We ensure that customer requirements and expectations are clearly communicated to our partners and effectively

managed working together to create high-quality and sustainable growth across our value chain.

5.We value expertise and promote a culture of collaboration building world-class teams of specialists in every field.

6.Everyone is dedicated to maintaining work quality ensuring that no subpar output is produced accepted or allowed. We

don’t cover up issues pass the blame or falsify results; all decisions and problem-solving are based on facts.

7.We hold management accountable for quality build a quality assurance system based on established processes and

develop a comprehensive quality management system that can support our future growth.Quality Management System Certification

3940

Navigation with Intelligence Future New Planet Intelligence to Society with InnovationShanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Quality Assessment System Communication and Communication and

Decision-Making Decision-Making

Step 1

Our quality assessment system focuses on developing strong quality leadership and strictly enforcing quality standards to ensure full PM Department Manager PQA Leader

participation and ongoing improvement. By assigning clear quality management responsibilities we have established a comprehensive

assessment framework that ensures that every stage meets high standards. When urgent quality issues arise we follow a set resolution

process to respond quickly and effectively ensuring product quality and customer satisfaction.Communication and

Step 2 Decision-Making

R&D Director Quality Director

Step 3 PMT leader

Our Process for Resolving Urgent Issues

Quality Assessment System

Key Achievements

We focus on precise control of product quality by setting clear quality

management goals identifying high-risk steps in production accurately and During the reporting period we successfully

making targeted inspections to increase the pass rate of finished products.To ensure consistent product quality we have implemented Material Lifecycle implemented 684 quality assurance

Management and Category Material Lifecycle Responsibilities and Business plans as part of our annual quality strategy

Guidelines. These policies oversee every stage of the material lifecycle consistently driving improvements in product

assigning clear responsibilities to each team member to ensure that materials quality.meet quality and compliance standards.Building Quality Awareness Key Achievements

To strengthen employee awareness of quality and encourage ongoing During the reporting period we held 5

improvements we organized targeted quality management training

programs. These included events such as “Quality Month” and specialized quality training sessions in collaboration

R&D workshops. By combining live presentations with on-site inspections with the Product Quality and Operations

we systematically communicated the key principles methods and objectives

of quality management to our employees aiming for comprehensive product Departments with over 170

quality improvement. participants.Key Initiatives of Quality Culture

Case Study FMEA Tool Application - Enhancing Product Quality and Risk Management

Product Management Responsibility In September 2024 we hosted a “Quality Month” event focusing on advancing product quality management. The training

covered essential tools like FMEA (Failure Modes and Effects Analysis) and DFMEA (Design Failure Modes and Effects

Analysis). By combining theory with practical case studies participants gained a deeper understanding of these tools’ coreWe strictly enforce product quality management responsibilities with a clear system where “the business leader is the primary responsible principles applications and best practices further enhancing our product quality management and providing strong supportperson for quality.” This strengthens accountability in quality management. If product quality issues cause the annual rework rate to fall for identifying and solving potential problems.short of the target and significantly affect customer satisfaction and the Company’s brand image the responsible business leader will be

held accountable. This system drives all employees to prioritize quality ensuring continuous product improvement and protecting our

company’s reputation and customer trust.Addressing Urgent Quality Issues

We prioritize customer feedback and have set up a fast-response mechanism for urgent quality issues. By creating standardized solutions On-site training session

and streamlining our processes we significantly improve the efficiency of issue resolution leading to higher customer satisfaction.

4142

Navigation with Intelligence Future New Planet Intelligence to Society with Innovation43 44Shanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Customer Rights

Customer rights are central to our operations. At CHC Navigation we are driven by customer needs—focused on addressing their pain

points expectations and key concerns. We prioritize the development of high-quality cost-effective products and services that ensure

reliable performance responsive service and optimized operational costs. Our well-established after-sales service system allows us to

respond quickly resolve issues efficiently and continuously improve customer satisfaction. We are committed to helping our customers

increase efficiency and reduce costs enhancing their competitiveness and profitability and supporting their long-term success.Our Mission

Focusing on the challenges and pressures that matter to our customers we provide competitive and precise spatiotemporal

information solutions and services continuously creating maximum value for our customers.Global Aftersales Service Locations

Our Mission

After-Sales Service

After-Sales Service Process

We uphold the principle of “Quality First Integrity Always Service Above All” in our after-sales service approach. Guided by a customer-

centric practical and forward-thinking culture we communicate our service values and mission to both employees and clients through

systematic training and outreach. To ensure consistent and reliable service we have implemented the CHC Navigation After-Sales Service Our after-sales service process consists of three key stages: acceptance resolution and closure. This process is supported by three

Policy which sets clear standards and procedures for all after-sales activities. Through standardized management and a strong service core modules: customer profiles work order data and a case database all working together to create an efficient data support system.mindset we have built a comprehensive service system establishing distinct service standards and practices that effectively protect Customer profiles ensure quick authentication and accurate information work order data enables control and full traceability of the

customer rights. process and the case database helps resolve issues quickly and builds expertise over time. Through modular data management

we increase service response speed and problem resolution efficiency ensuring an excellent customer experience and consistent

service quality.Acceptance Processing Closure

Service Policy

400 Hotline Create Service R&D Lifecycle Management Team (3rd Line)

Consultation Work Authentication

Quality First Integrity Order

Technical Support Expert (2nd Line)

Always Service Above All WeChat

Official Issue Technical Service Engineer (1st Line)

Account Severity Service Team Leader

Definition

Technical Upgrades

Online Consultation

Service Objectives Corporate Value of Official Websitevv

Dispatch Receive Technical Fault Develop Implement Customer Customer Follow- Review Close

Prompt Response Order Order Verification Diagnosis Plan Plan Confirmation Feedback UpCustomer-Centered Enterprise WeChat

Professional Service Practical and Consultation

Comprehensive Enterprising

Solutions Customer Equipment Repair Repair Engineer Technical Service Engineer

Satisfaction System Self-Check

Spare Parts Usage Return

GBT 27922-2011 After-Sales Service Certification Certificate —— Five-Star and Write-Off Warehouse Staff

Aftersales Service Policy and Objectives Employee Channels Third-Party Handling Third-Party

Technical Service Engineer On-Site Service On-Site Service Engineer

After-Sales Service Management System

Record

Voice Analyze

Channel Improve CloseOur after-sales service management system is a collaborative multi-level framework designed to deliver efficient and professional Feedback

technical support and after-sales service to our customers. With a well-defined organizational structure and clearly assigned roles and Customer Profile

responsibilities we ensure seamless service delivery and consistently high customer satisfaction.Work Order Data

Our after-sales service network covers all provinces across the country providing customers with quick and reliable support. In addition

we have established international service points to offer comprehensive technical assistance and after-sales coverage for our global Case Database

clients further enhancing their overall service experience and satisfaction.

4546

Customer

Navigation with Intelligence Future New Planet Intelligence to Society with InnovationShanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Acceptance Stage Acceptance Stage Closure Stage Customer Complaint Channel

Our technical service engineers work We have a dedicated customer complaint channel where customers can report issues by calling our customer service hotline at

to resolve the issue through four steps:

Customers report issues 4006206818. Every complaint is thoroughly investigated to ensure timely and proper resolution and we take appropriate action technical verification fault diagnosis

through various channels. The issue is closed against the responsible parties based on our policies. Additionally we develop improvement measures based on the nature of the solution development and solution which includes collecting complaint to continuously optimize our service processes and enhance the overall customer experience.implementation. Once the solution is feedback following up

ready it is sent to the customer for reviewing and finalizing

Our technical service approval. the case.engineers create a work Customer Satisfaction

order based on the reported If the issue cannot be resolved we Confirm the customer’s

issue authenticate it and escalate it to our technical experts and satisfaction with the

R&D team for further assistance. To better understand our customers’ needs we collect feedback and insights through a systematic approach identifying key factors assess its severity. resolution. that impact customer satisfaction. Since 2020 we have partnered with a qualified third-party provider to conduct an annual customer

If on-site support is needed we send satisfaction survey for five consecutive years ensuring objective and professional results. In addition we carry out ongoing follow-up

an on-site service engineer. surveys throughout the year including 400 hotline follow-ups and proactive outreach from our product line teams. This comprehensive

tracking system helps us continually improve service quality and optimize our products based on real customer input.After-Sales Service Workflow

Customer Satisfaction Survey Goals

Acceptance Stage To assess the performance of our products quality technical services and after-sales support

from the customer’s perspective.We place strong emphasis on protecting our customers’ after-sales rights and strictly adhere to our after-sales service policies. All To improve product quality control and management enhance customer perception and

customers who purchase our products are entitled to the legally mandated “Three Guarantees” within the specified time frame in the event strengthen the Company’s image.of a quality issue. In addition we provide comprehensive warranty services and maintain a dedicated after-sales support team to ensure

all issues are addressed promptly and effectively delivering a reliable and worry-free service experience. To evaluate employee performance.Customer Satisfaction Survey Goals

Warranty Policy Description

Survey results from 2024 show that our overall customer

Within 7 calendar days from the start of the warranty period if the main unit of the product satisfaction reached 74.9% a 3.7% increase from 2023 Survey results from 2024 increase from 2023

7-Day Free Return Exchange experiences a performance failure not caused by human error after verification by our indicating steady growth. Both customer loyalty and Net show that our overall customer

and Warranty technicians you can choose to have the product repaired or replaced with the same model Promoter Score (NPS) also saw significant improvement satisfaction reached

or return it. compared to 2023. Customer satisfaction remains at a

“Good” level while loyalty and NPS have reached “Excellent”

levels for the first time marking a significant achievement in 74.9% 3.7%

Within 15 calendar days from the start of the warranty period if the product encounters any of customer relationship management and service quality.the following issues you may choose to exchange it for the same model and specifications:

15-Day Free Exchange and 1.The main unit of the product experiences a performance failure not caused by human error.

Warranty

2.The product is damaged during shipping and you can provide a damage certificate from the

shipping company. Customer Satisfaction Survey Process

3.The product is found to have significant discrepancies from the original product description

in one or more important aspect. The survey is conducted primarily through questionnaires covering various aspects such as promotions products services

competition and overall satisfaction. The process includes questionnaire design customer research data collection and analysis.Ultimately the results provide us with customer satisfaction scores loyalty levels and NPS offering valuable insights that guide our

During the warranty period if the main unit of the product experiences a performance failure

1-Year Warranty improvement strategies.not caused by human error you are entitled to free repair services.

Customer “Three Guarantees” Rights

Design and

distribute the Evaluate and Prepare for the

questionnaire refine the Extract customer

Conduct the Analyze and

survey including

We also provide full technical training support for our customers. Upon product delivery we offer free technical training (available both questionnaire list survey

interpret data

to relevant staff training

online and offline) to the designated personnel outlined in the contract ensuring that they are well-versed in the equipment’s functions and departments

capable of operating it effectively. During the warranty period customers can also access free online technical training to further enhance

their operational skills and ensure the long-term efficient use of the equipment.Customer Satisfaction Survey Process

4748

Navigation with Intelligence Future New Planet Intelligence to Society with InnovationShanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Improving Customer Satisfaction Responsible Procurement

To continually enhance customer satisfaction we use systematic data analysis to identify customer needs and pain points and then create At CHC Navigation we take a meticulous approach to responsible procurement. By implementing the Procurement and Payment

targeted improvement plans. We also integrate customer feedback into performance evaluations to strengthen service awareness and Internal Control Management System and the Supplier Management System we have standardized the entire procurement process

offer specialized training to improve service quality. As a result our service quality has significantly improved customer satisfaction has ensuring transparency and fairness in supplier selection. We focus on the reputation supply capabilities and social responsibility of

consistently risen and we have received numerous written commendations and thanks from our clients. our suppliers carefully selecting our partners. We also promote open procurement practices ensuring that the process is transparent

fair and impartial. We give equal opportunities to small and medium-sized businesses providing them with a fair chance to compete

and supporting the sustainable development of our supply chain.Name Date Issued by

Thank You Letter for Wuhan Huace Satellite China Anneng Group First Engineering

Technology Co. Ltd.–Hunan Xiangtan Emergency August 19 2024 BureauGuangxi Anlan Technology Key Achievements

Rescue Development Co. Ltd.Zhaotong City Geological Disaster Monitoring and

Early Warning Project August 12 2024

Yunnan Geological Engineering Survey

Design & Research Institute Co.Ltd. During the reporting period we established stable mutually beneficial relationships with over 700 suppliers.Emergency Response for the Breached Dongting

Lake Dike in Huarong County Yueyang Hunan July 24 2024 China Anneng Group First Engineering

Province Bureau Co. Ltd.Thank You Letter for Wuhan Huace Satellite

Technology Co. Ltd -Hunan Tuanzhou Dike Piping July 11 2024 China Anneng Group Third Engineering Supplier Selection

Risk Treatment Bureau Wuhan Branch

Super Typhoon Prevention and Large-Scale Flood May 14 2024 China Anneng Group Second Engineering In the supplier selection process we are committed to building long-term stable relationships with high-quality suppliers. To ensure Rescue Drill Bureau Co. Ltd. this we have set up a dedicated Procurement Department and a procurement committee to oversee supplier management. Our

supplier management process involves scientifically categorizing suppliers and implementing a strict entry management system to

2024 Provincial Water and Drought Disaster Defense May 7 2024 Zhejiang Provincial Water Conservancy Flood ensure that all suppliers meet our quality and delivery standards. These steps have not only guaranteed the stability of our supply Drill Control Technology Center chain but also fostered long-term cooperation and mutual growth with our suppliers.

Letter of Appreciation from the China Association for

Disaster Prevention January 9 2024 China Association for Disaster Prevention

Supplier Selection System

Emergency Survey and Mapping Support for the Department of Natural Resources of Gansu

Earthquake in Jishishan County Linxia Prefecture January 3 2024 Provincial

The supplier selection process involves collaboration across multiple departments to ensure both efficiency and compliance. The

Thank You Letters from Customers Procurement Department as the central body for supplier management includes the Supplier Certification Department Procurement

Engineering Department and Procurement Execution Department each responsible for supplier certification technical requirements

and procurement execution respectively. The Quality Assurance Department inspects incoming materials production processes

and finished products to ensure that quality standards are met. The Planning Department releases procurement plans based on

Case Study Customer Satisfaction Training to Strengthen Relationships market demand and forecasts ensuring smooth operations within the supply chain. Additionally the Procurement Committee acts

as the collective decision-making body for procurement-related matters overseeing supplier selection and management category

management and the establishment of business rules ensuring procurement practices comply with regulations and align with

In 2024 we organized training to improve customer satisfaction with a focus on enhancing employees’ service awareness and strategic goals.communication skills while streamlining the process for resolving customer issues. Over 30 representatives from different fields participated

in the training. This enabled our employees to respond to customer needs more efficiently improve service quality and further strengthen

customer relationships ultimately increasing brand loyalty. Procurement Department

Supplier Certification Department Procurement Engineering Department Procurement Execution Department

(Sourcing Engineers) (Supplier Quality Engineers SQE) (Buyers)

Handle supplier certification and cost Oversee supplier quality management Manage the execution of

management including organizing which includes supplier qualification procurement orders which involves

the identification and evaluation audits and evaluations material contract management tracking

of potential suppliers building our process development at the supplier’s order status order reconciliation

supplier resource pool developing end daily quality monitoring order closure reverse orders and

procurement strategies managing PCN management performance evaluating delivery performance

material costs and maintaining assessments and supplier exits. as part of supplier performance

supplier relationships. reviews.Customer Satisfaction Training

Management Structure and Responsibilities of the Procurement Department

4950

Navigation with Intelligence Future New Planet Intelligence to Society with InnovationShanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Supplier Classification

Start

We classify our suppliers into four categories based on financial impact (procurement volume) and availability (supply risk): strategic

leverage bottleneck and general suppliers.* Strategic suppliers have high procurement volumes and high supply risks. They typically supply critical materials or technologies that

directly influence our core competitiveness. Monthly Performance Annual Strategic

Potential Assessment

* Leverage suppliers have high procurement volumes but low supply risks. They mainly supply standardized and highly substitutable Review

materials. Supplier Performance Strategic Potential

Data Summary Table Rating Table of

* Bottleneck suppliers have low procurement volumes but high supply risks. They are usually related to non-standard parts or scarce Suppliers

resources.* General suppliers have both low procurement volumes and low supply risks with limited strategic potential. Semi-Annual Supplier

Based on this classification we implement differentiated strategies in the selection of suppliers cooperation models and resource Classification

allocation to ensure that our supply chain is efficient stable and sustainable.Supplier Classification

Supplier Qualification Standards Management

Before onboarding a supplier we make a thorough evaluation of their quality management system and manufacturing capabilities. This

includes reviewing their development capabilities process capabilities delivery reliability quality assurance and service flexibility. This End

process ensures that we select the most suitable partners minimizing procurement risks.Supplier Performance Evaluation Process

Development Process Delivery Quality Service &

Capability Capability Capability Assurance Flexibility New product development will be prioritized for direct

assignment and in principle on-site investigation or

Ability to develop Core processes Ensure on-time Complete quality Timely response evaluation may not be required.projects cannot be delivery; adapt to framework;

outsourced; mastery small batch multi- comprehensive quality Additional procurement share opportunities are increased

of industry-leading variety production system in place adjust the purchasing shares among similar suppliers

processes according to their rankings and procurement share

Grade A adjustment happens in the next month/quarter;

Supplier Qualification Management 90 ≤ Supplier Annual recognition as an “Outstanding Supplier” at the

Performance supplier conference with awards trophies and certificates.Score≤100

Supplier Management

Grade B New Product Development can be directly assigned after

SQE and Sourcing review to decide whether an on-site

After selecting our suppliers we implement a systematic approach to ensure that they consistently meet our strategic development goals. 70 ≤ Supplier Performance investigation is necessary.We have established the Supplier Management System that outlines the expectations for managing suppliers. We focus on assessing Score < 90

supplier performance in areas such as product quality service quality cost control delivery times and product competitiveness while

driving continuous improvement. Through a structured performance management system we regularly evaluate supplier performance Reduction in procurement or suspension

identify improvement areas and provide training to enhance their technical expertise quality management capabilities and service Grade C

standards helping us build efficient long-term supply chain partnerships. A warning for more serious issues60 ≤ Supplier Performance

Score < 70 Payment suspension

Initiate a performance improvement initiative for

Grade D the supplier including reports on-site audits flying

Supplier Performance Management inspections and problem analysis meetings.Supplier Performance

Score < 60

Suppliers undergo monthly performance reviews and an annual strategic potential assessment. Performance is evaluated across three Elimination process;

key dimensions: quality delivery and service. The quality score includes factors like on-time delivery rate return rates and recurrence

of issues ensuring product quality. The delivery score is used to evaluate order fulfillment rates material management and cooperation Materials will be switched to other suppliers of the same

levels focusing on timely delivery and smooth collaboration. The service score is used to assess the supplier’s technical contributions category

innovation and problem-solving abilities. Initiate the supplier switch process and simultaneously start

sourcing potential new suppliers.Additionally we evaluate the strategic potential of suppliers annually categorizing them into different levels based on their operational

management capabilities technological innovation strength business coverage and cross-sector collaboration providing valuable

reference for long-term cooperation. Performance Rating Classification and Application

5152

Navigation with Intelligence Future New Planet Intelligence to Society with InnovationShanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Supplier Quality Management

Case Study Building Quality Together Winning the Future Through Collaboration

Attaching great importance to supplier quality management we require our suppliers to sign a quality goal commitment letter every

year and set clear objectives around key performance indicators. Through strict evaluation and selection processes we ensure that our

suppliers possess reliable quality control capabilities to guarantee component quality at the source. At the same time we continuously In May 2023 the CHC Navigation 2023 Supplier Conference was successfully held at the CHCNAV Smart Industry Base under the

optimize our management processes and strengthen quality control to enhance overall supplier performance and ensure product quality theme “CHCNAV 20 Years-Grateful for Your Support.” The conference with the theme “Building Quality Together Winning the Futureand supply chain stability thereby laying a solid foundation for long-term cooperation with our suppliers. Through Collaboration” brought together nearly 300 supplier representatives to discuss future development. The Chairman reflected

on the Company’s 20-year journey and expressed heartfelt thanks to our supplier partners for their ongoing support at the conference.The event also featured an award ceremony recognizing suppliers who excelled in joint innovation delivery efficiency and quality

control. Awards like the Joint Innovation Award Best Delivery Award and Excellent Quality Award were presented. Going forward

CHC Navigation will continue to collaborate closely with our supplier partners to deliver outstanding quality foster industry innovation

and provide superior products and services to our customers driving mutual success.·

Pre-Production Post-Production

Product quality must meet The production process must be

R&D Trial Production CHCNAV’s trial production Process Quality stable and consistent ensuring

requirements. Control adherence to standardized processes and manufacturing practices.Any design or engineering changes

Suppliers need to cooperate Change must be submitted to CHCNAV for Product Testing with CHCNAV for product

testing and trials. Management

approval and changes can only be

implemented once they are verified Supplier conference

and authorized.Suppliers must provide

products that match mass Issue Suppliers must actively cooperate with Transparent ProcurementSmall Batch Stage production standards for Resolution CHCNAV in analyzing and addressing

small batch trial runs. complaints and corrective actions.We continue to strengthen the integrity of

our supply chain procurement processes

aiming to meet high standards of compliance

Product Labeling and Product packaging Non-Conforming Suppliers should promptly handle

transparency and sustainability. In the process

Packaging must meet CHCNAV’s Products non-conforming products as per

of all our business activities we rigorously

requirements. CHCNAV’s requirements. follow applicable laws and regulations

establish clear ethical standards for the

supply chain and implement standardized

procurement bidding procedures along with

Shipments must be a strong anti-corruption oversight system

accompanied by a shipping Compensation should follow the to govern the behavior of procurement Product Acceptance Compensation staff. To ensure integrity and transparency

Criteria report with the content Supplier Quality Abnormality confirmed and aligned with Mechanism Compensation Standards. in our commercial activities we require all

CHCNAV’s specifications. external partners—including customers and

suppliers—with whom we have business

or financial dealings to sign a Transparent

Procurement Agreement and a Non-

Supplier Quality Management Requirements Disclosure Agreement. These agreements

help mitigate procurement-related corruption

risks and create a transparent fair Non-Disclosure Agreement and Transparent Procurement Agreement

procurement environment.Supplier Training Fair Treatment of SMEs

To continuously enhance the overall performance of our supply chain and ensure efficient delivery we are rolling out specialized training We are committed to fairness and impartiality in cooperation with all our partnerships ensuring equal treatment for all. In terms of

programs for our core suppliers. These initiatives are designed to raise awareness of quality streamline production processes and financial management we strictly adhere to contract terms ensuring timely settlement of payables and preventing overdue or unpaid

increase on-time delivery rates all while building an efficient and sustainable supply chain together. balances thereby protecting the legal rights and interests of all our partners.

5354

Navigation with Intelligence Future New Planet Intelligence to Society with InnovationShanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Industry Collaboration

Case Study Participating in Major Industry Exhibitions to Showcase Our Technological Expertise

To foster industry collaboration we actively integrate into the broader industry ecosystem by participating in events forums and exhibitions

continuously strengthening our influence and voice. We are also committed to advancing the standardized development of the sector by In October 2024 the Annual Conference and Exhibition of China Geographic Information Science and Technology of

actively contributing to the formulation of national and industry standards. Through these efforts we support the high-quality growth of the Surveying and Mapping was held in Zhengzhou. Our CEO attended the opening ceremony and delivered a keynote speech.industry and help build an open collaborative and mutually beneficial ecosystem. We showcased more than 60 self-developed smart surveying and mapping products including the new Xingzhe X500 drone

and the RuShi RS10 measurement system which drew significant attention. Our latest LiDAR technology advancements

were also featured in media coverage during the event. This conference not only highlighted our technological capabilities

but also helped strengthen industry partnerships and supported the advancement of a digital China.Industry Event Participation

We place strong emphasis on collaborative partnerships within the industry. By actively participating in exhibitions seminars and related

events we continuously strengthen communication and cooperation with industry peers. These activities help us stay informed on the

latest trends cutting-edge technologies and advanced management practices while also offering valuable platforms to showcase our

strengths and increase brand visibility. Through deep engagement with experts scholars and peer companies we gain clearer insight into

market needs drive technological innovation and respond more effectively to changing conditions—ensuring our path toward sustainable

development.Case Study Participating in International Exhibitions to Accelerate Global Brand Expansion

Exhibition Scene

In April 2024 Agrishow 2024 Brazil’s largest agricultural machinery exhibition was held at the Ribeir?o Preto Exhibition Center.As one of the most influential platforms for agricultural technology and machinery in Latin America Agrishow continues to

be a key venue for showcasing industry innovations and trends. As a global leader in precision agriculture we presented a Case Study Engaging in Academic Conferences of the Industry and Deepening Our Expertise

selection of high-end products and solutions drawing strong interest and engaging in in-depth discussions with numerous

visitors. Highlights included our NX510 series auto-steering system for agricultural machinery the X Series guidance system

and the IC100 satellite leveling system—all demonstrating our technological leadership in precision agriculture. In November 2024 the China Water Academic Congress was convened in Xi’an. Our General Manager for the Water

Conservancy sector delivered a specialized presentation at the “Smart Water Conservancy & Digital Twin” session

showcasing our innovative solutions in areas like comprehensive monitoring of medium and large reservoirs UAV inspection

water conservancy surveying and hydrological testing. Leveraging technologies such as high-precision positioning UAVs

and unmanned surface vessels these solutions support water safety disaster prevention and digital twin development. We

will remain committed to deepening our engagement in the water conservancy sector contributing to the industry’s high-

quality development and the advancement of digital China.Agrishow 2024 Exhibition Scene

In September 2024 the INTERGEO 2024 exhibition officially opened in Stuttgart Germany. We showcased our latest

advancements in high-precision positioning and intelligent applications including the CHCNAV Star-Earth Integrated GNSS

Augmentation Service and the RuShi RS10 Handheld LiDAR+GNSS RTK system among other innovations. Our regional

business manager took the stage to share recent breakthroughs and application cases in LiDAR technology. At INTERGEO

we engaged with industry experts innovators and global partners exchanging insights on emerging trends and exploring new

market cooperation opportunities—further expanding our international presence and influence.INTERGEO 2024 Exhibition Scene Water Academic Congress Scene

5556

Navigation with Intelligence Future New Planet Intelligence to Society with InnovationShanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Other Exhibitions

Case Study Showcasing Our Innovation at the CIIF

In September 2024 the 24th China International Industry Fair (CIIF) was held in Shanghai. At the Science and Technology

Innovation Exhibition we showcased our BeiDou high-precision smart equipment and solutions covering sectors such as

surveying marine agriculture and construction. Our booth attracted significant attention and sparked engaging discussions

with industry professionals. During the event our H7 integrated GNSS monitoring station—recognized for its adaptive frequency

modulation and ultra-long battery life—received the “CIIF High-tech Engineering Award” highlighting our technological

capabilities and further strengthening our industry influence.December 5 2024 Zhejiang International Intelligent

Transportation Industry Expo October 24 2024 International Summit on BDS Applications

December 6 2024 Seminar on Smart Hydrology Technology of

September 20 2024 Seminar on Multi-Beam Bathymetric System Yangtze River BasinTechnology

Technology

Standard Development

We are actively engaged in the formulation of national and industry standards contributing to the development of a more regulated

and unified industry landscape. Through our role in standardization we aim to advance technological capabilities promote industry

best practices and enhance our influence—supporting the high-quality growth of the sector.Category Standard Implementation Date Image

Number

Our Booth at the CIIF National

GB/T 43478-2023 July 2024

Standard

Group

T/CAMA 102—2023 January 2024

Standard

Standard Development

5758

Navigation with Intelligence Future New Planet Intelligence to Society with Innovation59 60Shanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Environmental Protection and Climate Response Monitoring Solutions

We have established a comprehensive environmental management policy and system with clearly defined responsibilities for each Radar-Visual Integrated Multi-Point Displacement Monitoring Instrument

department and role to ensure all environmental efforts follow structured and consistent guidelines. Based on our Infrastructure and Work

Environment Control Procedures and Environmental and Safety Operation Control Procedures we manage infrastructure workplace

environments and environmental matters systematically to ensure the effective functioning of our environmental management system. A p p l i c a t i o n S c e n a r i o This product combines radar and visual technologies to achieve comprehensive high-precision

monitoring of areas such as slopes reservoir embankments and road shoulders. It can capture displacement changes in real

We have obtained environmental management system certification and are committed to continuously optimizing our environmental time promptly detecting potential safety hazards.processes. Through regular internal audits and management reviews we ensure that all activities related to project development and

design meet applicable environmental standards and requirements. C l i m a t e C h a n g e R e s p o n s e V a l u e In the context of frequent extreme weather events triggered by climate change (such

as heavy rainfall and landslides) this device provides scientific and reliable data support for monitoring geological disasters

helping with disaster prevention and mitigation.Deformation Monitoring System Solution

Key Achievements Key Honors A p p l i c a t i o n S c e n a r i o L everaging IoT and BeiDou high-precision positioning technology we have developed a deformation

monitoring system that is widely used in fields such as geological disasters mining safety and transportation slope monitoring.It can collect 3D deformation data of the monitored object around the clock.During the reporting period we strictly

adhered to environmental regulations C l i m a t e C h a n g e R e s p o n s e V a l u e This solution offers real-time monitoring and early warning capabilities for infrastructure

with no major environmental incident or safety reducing disaster-related losses.administrative penalty.

3D Solutions

Drone Levee Inspection and Risk Detection Solution

A p p l i c a t i o n S c e n a r i o This solution integrates surveying-grade LiDAR high-resolution thermal infrared cameras and

visible light cameras along with intelligent seepage detection algorithms to conduct all-weather inspections of levees. It

can promptly detect and address risks such as seepage and leakage. With the introduction of LiDAR the false alarm rate is

reduced to below 30% significantly improving detection accuracy especially in nighttime and complex environments.We Have Been Certified with ISO 14001 Environmental Management System C l i m a t e C h a n g e R e s p o n s e V a l u e Through efficient monitoring and early warning this solution reduces the risk of disasters

caused by extreme weather events (such as heavy rain and flooding) enhancing climate adaptability.Grain Storage Measurement Solution

A p p l i c a t i o n S c e n a r i o U sing high-density laser point cloud technology this product enables precise 3D measurement of

Environmental Risk Management grain in storage avoiding errors and resource waste typically associated with traditional manual grain stacking.C l i m a t e C h a n g e R e s p o n s e V a l u e In light of the climate change threat to food security this solution improves the efficiency

To ensure our management policies and goals are effectively implemented and to control operations related to key environmental factors and accuracy of grain management reducing food losses and indirectly supporting climate adaptation.we have developed the Environmental and Safety Operations Control Procedures. This procedure provides a systematic approach to

managing environmental and occupational health and safety processes for engineering consulting design and general contracting

projects within our management system scope. It defines the methods and conditions required for controlled operations ensuring that Intelligent Surveying and Mapping Equipment

all activities are conducted in a safe and compliant manner. By following this procedure we can effectively manage or minimize potential

environmental impacts and apply scientific methods to address identified risks. A p p l i c a t i o n S c e n a r i o With the rapid advancement of surveying technology the demand for forest resource information

has become increasingly diverse. Intelligent equipment is being more widely adopted in forestry applications particularly in

forest pest control wildfire early warning and monitoring forest resource surveys and forestry digital twins.Tackling Climate Change C l i m a t e C h a n g e R e s p o n s e V a l u e The smart surveying and mapping equipment provides crucial technical support in addressing climate change. By integrating drones and high-precision LiDAR with such technologies as digital twins and image

recognition the Company has achieved efficient forestry surveys accurate identification and localization of forest pests and

We are committed to tackling climate change by promoting the adoption of clean technologies through innovation. Our high-precision diseases as well as monitoring and early warning of forest fires thus helping reduce carbon emissions caused by forest

navigation and positioning products and solutions are widely applied in smart transportation precision agriculture and natural resource degradation. The related solutions can significantly enhance the efficiency and accuracy of forestry surveys facilitate the

management helping clients reduce carbon emissions and enhance resource efficiency. Looking ahead we will continue to explore protection and management of forest resources safeguard the carbon sequestration capacity of forests and enable forests to

opportunities in clean technology and contribute actively to global climate governance. play a better role in climate regulation.CHCNAV’s Climate Change-Related Applications

6162

Navigation with Intelligence Future New Planet Intelligence to Society with InnovationShanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Energy Management and Resource Conservation Energy Utilization

Our company is dedicated to establishing an efficient energy management system by

To strengthen the management of energy and resources ensure their efficient and responsible use reduce costs and improve overall refining our energy management policies and optimizing energy usage processes to

business performance we have established the Resource and Energy Management Control Procedure. The Administrative Department meet our goals for energy savings and consumption reduction. In line with the Resource

is responsible for overseeing the planning monitoring and evaluation of energy and resource consumption across all departments and and Energy Management Control Procedure we conduct regular maintenance and

workshops ensuring the implementation of management measures. Each department is accountable for daily operations executing upgrades of office facilitiesand testing equipment while introducing advanced energy-

energy-saving and consumption-reduction initiatives and ensuring the proper use of energy and resources in line with their responsibilities. efficient technologies and equipment to enhance energy performance.Additionally the Administrative Department conducts regular comprehensive reviews organizing at least one energy and resource usage In day-to-day office operations we implement various initiatives to raise employee

audit across the company every six months. Through on-site inspections data analysis and other methods we identify potential areas awareness about energy conservation. For instance we place energy-saving signs in

of waste assess the effectiveness of energy-saving measures and develop corrective actions for any issues found ensuring that these office areas to remind employees to “lights off when leaving” and “power down equipmentcorrections are tracked and implemented. when not in use.” We also assign personnel for regular night patrols to ensure that

lights air conditioning and other devices are turned off when unoccupied. Furthermore

through internal training and awareness campaigns we encourage employees to adopt

energy-efficient habits and integrate green office practices into all aspects of daily work

and life aiming to foster a low-carbon eco-friendly workplace.Energy-Saving Signs in Office Areas

Energy Consumption Raw Materials and Auxiliary Office Supplies

Statistics and Allocation: Materials Management: Management:

At the end of each year the Departments must strictly Departments must adhere

Administrative Department follow quota management to the office supplies

compiles and analyzes the total guidelines use raw requisition system prioritize Night Patrols and Energy- Independent Switches and Equipment Updates and

energy consumption for the year materials and auxiliary conservation avoid Saving Reminders: Assigned Responsibility: Energy-Efficient Upgrades:

setting energy usage targets for the materials efficiently unnecessary waste and

following year for each department and eliminate wasteful improve the efficiency of We designate personnel for night The office building and power When upgrading

to ensure clear goals and assigned practices. resource use. patrols to ensure that lights air load areas are equipped equipment in the R&D and

responsibilities. conditioning and other devices with separate switches Manufacturing Departments

are powered off when unoccupied and designated staff are we prioritize replacing high-

helping to prevent unnecessary responsible for ensuring that energy-consuming devices

energy waste. the “lights off when leaving” with newer energy-efficient

policy is followed ensuring alternatives to reduce energy

Energy and Resource Consumption Management that energy-saving measures consumption from the outset.are implemented effectively.Furthermore we encourage the principles of water saving electricity saving energy saving land saving material saving throughout the

company. Tailored control measures are put in place for different spaces and activities including process optimization the adoption of

energy-efficient equipment and waste reduction. By doing so we support green and sustainable development continually improve our Energy Conservation Management

management systems and contribute to both economic and environmental benefits.Water Resource Management

Places and Control Control

Operations Content Measures We are committed to the efficient use and conservation of water resources integrating water-saving practices into our daily operations.The Administration Department sets clear water usage targets and assessment mechanisms for each department ensuring proper

Optimize paper usage turn off distribution and optimal use of water. Our maintenance team regularly inspects and services the water supply system quickly Office Areas (such as power promptly and enhance daily addressing any issues such as leaks or drips to prevent water waste from the source. Each department also studies the Water Law photocopying printing air Paper and electricity conservation of the People’s Republic of China and relevant conservation regulations implementing tailored water-saving measures refining water

conditioning and lighting) management use processes and improving efficiency. By optimizing water usage processes and upgrading equipment we have made significant

Improve process design strictly follow strides in water resource management helping to drive more sustainable water use.relevant regulations and standards

Engineering Design and General Energy saving consumption and prioritize efficiency rationality

Contracting Projects reduction and emission reduction and moderation. Implement clean Circular Economy

production technologies and apply the

“Four New” measures1

Water saving electricity saving We explore circular economy practices focusing on resource recycling and minimizing raw material waste during the R&D and design

Construction and Installation Sites energy saving land saving Strengthen management and monitoring stages. By recycling and reusing waste materials we aim to reduce our environmental impact.for General Contracting Projects material saving etc. throughout the entire project lifecycle Administrative statistical and office functions such as typing and photocopying are the primary areas where paper consumption

occurs in our company. To ensure efficient resource use and sustainable management we have implemented a strict paper-saving

Tailored energy and resource control measures have been developed for different locations and operations policy across these departments. We require double-sided printing and copying in all instances to eliminate paper waste at the source

ensuring more efficient use of office paper.

1The “Four New” measures refer to new technologies new processes new materials and new equipment.

6364

Navigation with Intelligence Future New Planet Intelligence to Society with InnovationShanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Air Pollution Control

Our company’s operations do not involve emissions of waste gases and there is no direct air pollution issue. Throughout our R&D

production and operations we focus on optimizing processes using eco-friendly materials and promoting green low-carbon

technologies to minimize our impact on the air. We are involved in supporting green and low-carbon development and relevant

environmental policies ensuring a harmonious relationship between our business and the environment.Noise Pollution Control

In our general contracting projects we strictly manage and control noise emissions at construction and installation sites ensuring

that noise levels from living areas and various construction machinery comply with national and local standards. By implementing

clear noise management measures we supervise and guide relevant parties to ensure that noise levels at construction sites meet the

required standards. We have also installed professional monitoring equipment at noise monitoring points and regularly conduct noise

level monitoring. Third-party authoritative agencies are commissioned to issue monitoring reports which indicate that noise levels at

all monitoring points strictly comply with national and local environmental protection standards.Waste Management

As a high-precision navigation and positioning technology company we produce minimal waste and strictly follow environmental

regulations to ensure proper treatment of wastewater exhaust gases and solid waste. In our engineering projects we prioritize managing Waste Management

waste emissions by using scientific planning and green construction practices to optimize resource use minimize waste and promote

sustainable development principles. This approach contributes to environmental preservation.We adopt strict waste management practices to ensure the proper disposal of both

hazardous and non-hazardous waste. For hazardous waste such as chemicals and

Water Pollution Control adhesives we comply with national regulations and entrust qualified professional ensuring agencies to handle all hazardous materials ensuring 100% compliant disposal. For 100%

non-hazardous waste including paper plastics and office waste we promote waste compliant disposal

classification and management. By optimizing our waste management processes we

We fully comply with national and local environmental regulations adopting a science- In 2024 we maintained a effectively increase the recycling rate of waste and reduce our environmental impact.based and standardized approach to managing water pollution. Through the construction

of advanced wastewater treatment facilities we ensure that wastewater discharges meet

environmental standards. 100% compliance rate for

In 2024 we maintained a 100% compliance rate for wastewater discharges with no wastewater discharges

instance of exceeding discharge limits. We also regularly engage third-party agencies to

test the wastewater and all test results meet the required environmental standards.Category Disposal Method

Non-toxic non-hazardous Collected and sent to regular waste collection stations

Recyclable for disposal

Standard domestic Toner control in office Hazardous material and Construction site

wastewater discharge: equipment: oil spill prevention: wastewater management: Toxic and hazardous

Collected regularly and sent to professional disposal

companies

We ensure that domestic When replacing printer and We tightly control the For our general contracting

wastewater is treated to photocopier cartridges we transport use and projects we closely Non-toxic and hazardous

Collected regularly and sent to professional disposal

companies

meet standards before strictly prohibit washing storage of hazardous manage muddy and sandy Non-recyclable

being released into the toner with water to avoid chemicals and oils to wastewater at construction Toxic and hazardous Collected and sent to specialized waste collection

municipal sewage system it entering stormwater or prevent leaks. In case of sites strictly controlling its stations for special treatment

preventing untreated sewage systems. Toner a spill we immediately discharge to ensure that

wastewater from being must be collected and report the incident and construction activities meet Old electronics toner cartridges ink (office Collected regularly and sent to professional disposal

discharged directly disposed of according take emergency action to environmental protection environment) companies for treatment

and preventing water to regulations to prevent prevent contamination of requirements and prevent Construction waste discarded building materials We strictly manage and control the handling of these

contamination at the water pollution. water sources. pollution of nearby water. discarded materials packaging materials auxiliary materials ensuring that they are transported to

source. packaging materials scrapped equipment etc. (on-site designated disposal sites. Open burning is prohibited

at general contracting projects) and toxic or hazardous waste cannot be used as fill

material

Water Pollution Control Measures Waste Disposal Methods

6566

Navigation with Intelligence Future New Planet Intelligence to Society with InnovationShanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Biodiversity Conservation

At CHC Navigation we take our corporate social responsibility in biodiversity conservation seriously leveraging technological innovation

and responsible management practices to minimize the environmental impact of our products and operations. We strictly comply with

ecological protection laws and regulations ensuring that all project development and operations preserve ecological balance and avoid

harm to natural habitats. We actively promote the use of high-precision navigation and positioning technologies in ecological monitoring

and conservation. Our solutions deliver accurate data to support biodiversity protection efforts in areas such as forest pest and disease

control forest fire early warning forestry surveys and digital forestry advancing the sustainable development of the forestry and grassland

sectors. In the field of hydrographic measurement our smart water conservancy solutions enable real-time monitoring and analysis of

hydrology water resources and water quality providing critical data for water resource management and protection. Looking ahead we

will continue to innovate and develop new solutions that support biodiversity conservation contributing to the long-term protection of the

Earth’s ecosystems.

6768

AAbboouutt CCHHCC NNaavviiggaattiioonn IInntteeggrriittyy aass tthhee FFoouunnddaattiioonn IInnnnoovvaattiioonn--DDrriivveenn CCoollllaabboorraattiivvee EEffifficciieennccyy SSmmaarrtt LLooww CCaarrbboonn EEmmppoowweerrmmeenntt WWoorrkkiinngg TTooggeetthheerr ffoorr WWoorrkkiinngg TTooggeetthheerr ffoorr tthhee LLeeaaddiinngg tthhee WWaayy wwiitthh SSmmaarrtt DDeevveellooppmmeenntt CCrreeaattiinngg VVaalluuee PPaarrttnneerrsshhiippss ffoorr aa SShhaarreedd SSmmaarrtt PPrrootteeccttiioonn ffoorr aa GGrreeeenn PPrrooggrreessss GGrroowwiinngg wwiitthh PPuubblliicc GGoooodd BBrriinnggiinngg WWaarrmmtthh

NNaavviiggaattiioonn wwiitthh IInntteelllliiggeennccee FFuuttuurree NNeeww PPllaanneett IInntteelllliiggeennccee ttoo SSoocciieettyy wwiitthh IInnnnoovvaattiioonn69 70Shanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Employee Employment and Rights Performance Implementation and Coaching

We encourage regular communication between supervisors and subordinates with supervisors actively tracking their team

At CHC Navigation we prioritize fairness in employment by building a comprehensive system that fully safeguards our employees’ legal members’ progress towards goals and providing guidance and support when issues arise.rights. To enhance engagement and career satisfaction we have developed a well-structured compensation system and continuously We also encourage managers to conduct formal one-on-one meetings with employees regularly documenting key discussion

refine our incentive programs aligning them with the Company’s evolving needs. These efforts not only improve our employment points in the OA system to support employee growth.framework and strengthen employees’ sense of belonging but also enhance our employer brand support the creation of a robust talent When new employees join or when an employee is promoted or transferred between departments managers should

pool and lay a strong foundation for sustainable talent development. provide performance coaching during the initial phase to help employees adjust to new environments and improve their work

performance.Employee Employment Performance Evaluation and Feedback

We follow the principle of objectivity and fairness conducting regular performance evaluations based on multiple factors such

We adopt a “talent-first” approach and in compliance with the Labor Law of the People’s Republic of China the Labor Contract Law of as annual performance and competency.the People’s Republic of China and the Social Security Law of the People’s Republic of China have created an Employee Handbook that The evaluation process includes an appeal mechanism allowing employees to challenge the results if they have concerns

clearly outlines recruitment processes contract termination and other key procedures. This ensures that all recruitment procedures are fully safeguarding their rights.conducted strictly according to regulations preventing fraud and discrimination. We also adhere to industry CSR standards including a

firm commitment to banning child labor and protecting minors’ rights. With a transparent recruitment process and a commitment to industry

norms we improve recruitment efficiency and ensure fairness in carrying out recruitment activities.Application and Improvement of Evaluation Results

Key achievements Performance evaluation results are key references for year-end bonuses performance-based pay instant rewards special

Recruitment

Principles incentives salary adjustments awards promotions job transfers skill development and even employee exits.File Additionally based on the evaluation results we provide feedback and improvement suggestions to help employees grow and

By the end of the reporting period we Management Conditions for develop further.and Social Not Hiring

Insurance

employ about 2046 people

both domestically and internationally.Job Recruitment

Responsibilities Performance Management MeasuresRecruitment Process

Of these 67.5% and Hiring Regulations Goal Setting Performance Execution

and Coaching

hold bachelor’s degrees while

Recruitment Reporting for

20.72% have master’s or Criteria Duty for New Departmental Goal Signing the PBCHires Breakdown Daily Coaching PBC Update

doctoral degrees. Probation and Signing the Individual Goal Setting Key Event

Regularization Employment Communication Mid-term Review Documentation

Contract

Recruitment and Hiring Regulations

Feedback Application of Employee Self- Group Evaluation

Discussion Results Assessment

Compensation Management Performance Direct Manager Public Announcement

Complaints Evaluation of Results

Guided by the principle of “rewarding effort and achievement” we have developed and strictly enforced Performance Management

Measures that link employee compensation to skills position job performance and work behavior. To ensure that our performance Performance Feedback Performance

management system remains aligned with the Company’s goals we review and adjust it annually. Based on team dynamics we use a mix Evaluation

of annual semi-annual quarterly and monthly assessments to encourage both organizational and personal growth. Performance Management Process

Setting Performance Goals Equity Incentive Program

We implement quarterly and annual PBC assessments and management with all employees presenting their performance.Our approach breaks down the Company’s overall strategic objectives step by step reinforcing the principle of goal alignment.We combine job functions KPIs critical events team and individual development goals and values and behaviors strengthening To strengthen the stability of our management and core technical teams and boost efficiency we have established a long-term

the performance-improvement-oriented principle. incentive program for our senior executives and key technical staff. Since our IPO we have continuously implemented the equity

incentive plan aligning the interests of our executives and core technical team with those of our shareholders. This motivates our

management and key employees to drive the Company’s growth and success together.

7172

Navigation with Intelligence Future New Planet Intelligence to Society with InnovationShanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Key achievements

Case Study Campus Recruitment Training to Help New Hires Transition Smoothly

In 2024 we granted the first portion of the 2023 Restricted Stock Incentive Plan (covering 870 individuals) and the

reserved portion of the same plan (covering 104 In July 2024 we launched the “Shenghua (Upgrading) Training” program for our new campus recruits. This program offers individuals). We also vested the first and second phases of the 2022 comprehensive onboarding and training across various areas including job-specific skills and knowledge. It helps new hires

1 quickly make the transition from students to professionals enabling them to integrate seamlessly into the company and Restricted Stock Incentive Plan (covering individual) the second portion of the 2021 Restricted Stock Incentive Plan perform effectively in their roles.

(covering 567 individuals) the reserved portion of the 2021 Restricted Stock Incentive Plan - First Phase Vesting (covering

103 individuals) and the third phase of the 2020 Restricted Stock Incentive Plan (covering 36 individuals). Since our

IPO we have rolled out 6 equity incentive plans granting stock to a total of 2723 individuals.Employee Training and Development

Shenghua Training 2024

At CHC Navigation we see our employees as a key driver of the Company’s continued growth. We place strong emphasis on employee

training and development actively fostering partnerships with educational institutions to help enhance skill sets across our workforce.To remain competitive we offer incentive mechanisms designed to retain core talent and boost long-term engagement. Through a

comprehensive training system an open collaborative work environment and hands-on learning opportunities we ensure every employee

has the chance to realize their full potential achieve personal goals and grow together with the Company.Case Study Management Training Program to Strengthen Leadership Skills

Employee Promotion In April 2024 we kicked off the “Dongche Leadership Training” program for newly promoted managers. This program

featuring a series of management courses helps these new leaders quickly adapt to their roles gain essential team-building

and management skills and lay a strong foundation for effective leadership.To support talent development reduce employee turnover and encourage continuous growth we have established an internal mobility

system outlined in our Employee Handbook. This system creates clear opportunities for advancement for high-performing individuals and

offers flexibility for employees seeking role changes based on personal career goals or other needs.By optimizing workforce allocation

and providing a fair transparent career development path we strengthen employees’ sense of belonging and loyalty to the Company.Employee Training

We believe that talent development is the cornerstone of long-term growth. Guided by a talent-first approach we are committed to building

a diverse multi-tiered development system. For new hires we offer professional onboarding training and structured probation management

to support smooth integration into the Company. For fresh graduates we have launched the “Shenghua (Upgrading) Training” program

which combines intensive training selection processes job rotations performance assessments and hands-on experience. This program

enables graduates to quickly adapt gain a solid understanding of our corporate culture and build a strong professional foundation

effectively nurturing the next generation of talent.Management Dongche Leadership Training 2024

Key achievements

Huace Business School an online learning platform currently offers nearly 300 courses providing employees with

a wealth of learning resources.

7374

About CHC Navigation Integrity as the Foundation Innovation-Driven Collaborative Efficiency Smart Low Carbon Empowerment WWoorrkkiinngg TTooggeetthheerr ffoorr WWoorrkkiinngg TTooggeetthheerr ffoorr tthhee Leading the Way with Smart Development Creating Value Partnerships for a Shared Smart Protection for a Green PPrrooggrreessss GGrroowwiinngg wwiitthh PPuubblliicc GGoooodd BBrriinnggiinngg WWaarrmmtthh

Navigation with Intelligence Future New Planet IInntteelllliiggeennccee ttoo SSoocciieettyy wwiitthh IInnnnoovvaattiioonnShanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

University-Industry Collaboration Employee Health and Safety

At CHC Navigation we place great importance on the health and well-being of our employees. In 2024 we took steps to continuously

To cultivate high-level application-oriented improve our safety management systems and provide more comprehensive and effective health protection. We focused on enhancing

talent with innovative thinking global employees’ safety awareness and skills to ensure safe production practices safeguard their rights and fulfill our corporate social

perspective and the ability to drive rapid responsibilities.industry growth we actively collaborate

with universities and research institutes.Through joint research projects and

collaborative initiatives we create

opportunities for students to develop

both professional expertise and broader Occupational Health

capabilities. We also invite distinguished

professors from top universities to serve as We fully comply with the Occupational

expert advisors contributing to research Disease Prevention and Control Law

strategy development and mentoring of the People’s Republic of China and

PhD students and postgraduates. These other relevant regulations. Our internal

partnerships strengthen our innovation occupational health management

capacity enhance employee skills and system is well-established ensuring

make more effective use of educational that health management processes

resources while supporting the cultivation are standardized. In the workplace

of high-quality talent for society. we have equipped our facilities with

AED devices and first aid kits to handle

both routine and emergency medical

situations ensuring the safety and

health of our employees. We also

regularly conduct health education

programs to help employees improve

their personal health management. AED Devices (Left) and First Aid Kits (Right) Available at the Company

Case Study Partnership with Shanghai Jiao Tong University to Promote Collaboration

Case Study Annual Health Checkups to Support Employee Health

We place a strong emphasis on talent development and external collaboration. As part of our efforts we have built a solid

partnership with Shanghai Jiao Tong University. Both parties signed the Engineering Master’s and PhD Training Reform Pilot

University-Industry Cooperation Agreement and the Engineering Master’s and PhD Joint Curriculum Development Agreement

which allows students to bridge their academic learning with real-world business practices. This partnership enables resource In October 2024 we arranged annual health checkups for employees who joined the company that year. To address the

sharing and co-development between the university and our company. Together we aim to cultivate high-level application- diverse health needs of our employees we offered four different checkup packages tailored to identify specific health risks

oriented talents while driving the industry’s high-end intelligent and sustainable development. for various groups. This approach helped improve the effectiveness of the health screenings.Signing Ceremony

Health Checkup Notification

7576

Navigation with Intelligence Future New Planet Intelligence to Society with InnovationShanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Employee Support and Activities

Case Study Traditional Chinese Medicine (TCM) Program for Employee Wellness

At CHC Navigation we place high importance on employee care and engagement striving to create a positive work environment that

In December 2024 we invited a professional Traditional Chinese fosters a strong sense of belonging and well-being. Through a range of structured initiatives we enhance the workplace experience

Medicine (TCM) team to visit our company and conduct wellness by providing dedicated event spaces and organizing holiday celebrations. We incorporate a human-centered approach into daily

activities. In the morning the doctors provided consultations operations helping to build a warm and supportive atmosphere. Additionally we maintain open communication channels to actively

and body assessments for employees offering personalized gather employee feedback and suggestions ensuring that their voices are heard valued and reflected in meaningful improvements.health advice. In the afternoon the TCM team hosted a wellness

seminar to teach employees how to prevent and manage common

work-related health issues. They also demonstrated traditional

techniques such as acupressure cupping and acupuncture Employee Communication and Feedback

helping employees improve their health awareness and maintain

a healthy lifestyle. TCM wellness event at the Company

We continuously improve our internal communication

and feedback system and have developed the

“Tongshiba (Colleague Hub)” online platform. This

provides employees with an anonymous channel

to voice their opinions offering them the chance to

contribute ideas to the Company’s growth. Employees

Safety Training can submit feedback on various topics including Key honors company products services and workplace matters

either anonymously or by revealing their identity.Additionally our corporate WeChat system enables

We are dedicated to improving our employees to communicate directly with colleagues

safety production standards. In 2024 at all levels including the Company’s chairman

we organized fire drills and conducted ensuring open and effective communication across the

various safety training sessions to give organization.employees practical experience in

handling emergency situations. These To further protect employee rights we have established

initiatives significantly enhanced their a legally compliant labor union which acts as a bridge

ability to respond to emergencies and between management and employees maintaining

protect themselves in unsafe conditions. close and constant communication with our staff.Level 2 Excellent Enterprise Certificate of Safety Production

Standardization Company Safety Production License “Tongshiba (Colleague Hub)” online platform development

Case Study Employee Satisfaction SurveyFire Safety Training and Drills to Improve Self-Rescue Skills

To better understand employee perspectives on company facilities and the overall work environment we developed and distributed

In April 2024 we organized fire safety training and hands-on drills to enhance employees’ emergency response and evacuation the 2024 Employee Satisfaction Questionnaire. The survey covered key areas such as the work environment benefits and support

skills. The training included both theoretical fire safety knowledge and practical experience with fire extinguishers. By combining facilities enabling us to gather comprehensive feedback. Following a detailed analysis of the responses we compiled a Survey

theory and practice we helped employees gain essential firefighting skills and boosted their safety awareness in case of Report outlining both strengths and areas for improvement. Based on this feedback we have implemented targeted enhancements to

emergencies. continually improve the employee experience.Issues with Apartment

equipment and event Daily office tasks Employee meals Public Facilities in the management and

organization Work Area services

Survey Topics Included in the Questionnaire

Fire safety training drill

7778

Navigation with Intelligence Future New Planet Intelligence to Society with InnovationShanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Employee Support and Activities We also focus on creating a warm welcoming work environment by organizing holiday events that increase employee engagement

and strengthen their connection to the Company showcasing our commitment to employee care.To enrich employees’ daily lives and boost their happiness we provide a variety of recreational spaces for employees to engage in sports

and activities. We also host regular sports competitions rewarding outstanding employees and teams with special prizes to encourage Case Study Aromatherapy Crafting for International Women’s Day: Caring for Our Female Employees

active participation and promote a healthy lifestyle.In March 2024 we organized an aromatherapy crafting

workshop for our female employees. They prepared materials

Employee Activities and Facilities and crafted their own aromatherapy products. This hands-on

activity not only enhanced their skills but also encouraged

interaction and bonding among employees fostering team

unity and a greater sense of belonging.Aromatherapy Crafting Session

Football field Case Study Zongzi and Sachet Making for Dragon Boat Festival – Building Festive Spirit

In June 2024 ahead of the Dragon Boat Festival we hosted

Fitness equipment an event where employees made Zongzi (traditional rice

Pool table

dumplings) and sachets at the company cafeteria. This activity

not only improved employees’ practical skills but also created

a festive atmosphere adding to the sense of community in the

workplace.Other recreational spaces

Basketball court

Dragon Boat Festival Activity at the Company

Varied Employee Activities

Case Study Santa Claus Visits: Fun Employee Engagement at Christmas

In December 2024 we organized a Christmas event where four employees dressed up as Santa Claus to deliver gifts and

cheer to their colleagues. The fun-filled activity maintained the holiday spirit while also fostering a positive and uplifting

image for the Company.Competitive events

Christmas Fun Activity

Annual Open Day for Families Team-building wall activities

7980

Navigation with Intelligence Future New Planet Intelligence to Society with Innovation81 82Shanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Heartfelt Social Welfare Disaster Relief Support

At CHC Navigation we believe in sharing the benefits of our success with society. Through volunteer work donations and other initiatives CHC Navigation leverages its expertise in positioning navigation and mapping technologies to support disaster response efforts

we aim to promote fairness and progress. We are particularly committed to supporting youth education taking tangible steps to fulfill our providing both equipment and skilled personnel to enable effective disaster monitoring. This helps reduce the risk of secondary losses

corporate responsibilities. to human life and property. We are committed to fulfilling our corporate social responsibility and making an ongoing contribution to the

sustainable development of society.Case Study Donate funds and supplies to extend warmth and care

Emergency underwater terrain Solutions for emergency survey

measurement solutions with unmanned surface vessels

Application Scenarios Application Scenarios

On the Double Ninth Festival in 2024 the Company

donated RMB 50000 to Dongfang Village in Qingpu flood rescue and relief and levee breach closure environmental monitoring systems for

District Shanghai. In addition the Company’s emergency rescue and systems for natural

wholly-owned subsidiary Shanghai Sinov Navigation Solutions for detection of hidden disaster monitoring and early warningrisks in water areas

Technology Co. Ltd. donated daily necessities worth

RMB 9450 to the elderly in the village. By delivering Application Scenarios Automated hydrological testing solutions

the donated supplies to the local area the employees levee inspection and emergency drills

of the Company brought warmth and care to the elderly. Application Scenarios

Targeted Assistance for Dongfang Village in Qingpu District Water

Conservancy Reservoir capacity solutions emergency river flow monitoring

Application Scenarios Solutions for small reservoir rainwater

reservoir capacity survey coastal mapping monitoring and forecasting and dam safety

Case Study Donating to Build Sports Facilities for a School in Yunnan and underwater surveys and restoration.monitoring

Application Scenarios

Solutions for safety monitoring of hydropower

station structures and reservoir bank slopes irrigation areas mountain pond detection

Application Scenarios watershed monitoring and reservoir safety

In March 2024 we donated RMB 50000 to the Toudaoshui Primary and Secondary monitoring

School in Aihua Town Yun County Linchang City Yunnan Province as part of a lope monitoring of dams

donation agreement. The funds will go toward building sports facilities including a

synthetic running track basketball court badminton court and volleyball court. This

initiative will address the growing need for physical activity among students promote

diverse physical education and raise awareness about fitness among young people. Online tailings pond safety monitoring Solutions for monitoring of subsidence in

solutions goaf areas

Donation Certificate

Application Scenarios Application Scenarios

flat terrain tailings ponds and valley-type metal mining areas

Mining tailings ponds

Open-pit mine slope safety monitoring solutions

Case Study Hosting Junior Reporters for an Industry Tour

Application Scenarios surface displacement and deformation groundwater level and internal

displacement

In July 2024 we welcomed a group of junior reporters from Xianghuaqiao Street in Qingpu District. Our Vice President personally

greeted them leading a tour of various hardware equipment and answering their questions. This event sparked the reporters’

creative thinking while helping them develop valuable skills like observation analysis communication expression and practical

abilities. Automated landslide monitoring and early Automated monitoring system for collapsewarning system

Application Scenarios

disaster monitoring and emergency response

landslide-prone areas

Emergency mapping solutions

Automated landslide monitoring and early

warning system Application Scenarios

Application Scenarios earthquake disaster forest fire prevention and

Geological

Disasters mudslide-prone areas flood disaster

System for identification and investigation of Forest and grassland fire prevention patrol

geohazard risk points and monitoring

Application Scenarios Application Scenarios

landslides mudslides ground subsidence all-time forest protection and forest ranger

ground cracks surface settlement and collapse patrol management systems

Junior Reporters’ Tour

Application of Our Products in Disaster Warning and Response Projects

8384

Navigation with Intelligence Future New Planet Intelligence to Society with InnovationShanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Supporting Talent Development

Case Study Technical Support for Disaster Relief and Social Responsibility

To support talent development and promote educational advancement CHC Navigation leverages its technology and resources to

assist universities by providing advanced experimental equipment and financial support. This initiative enhances students’ practical

In a landslide affected the Hexing and Heping skills while strengthening collaboration among industry academia and research. Through these efforts we contribute our expertise to

January villages in Liangshui Village Tangfang Town

addressing complex societal challenges reflecting our ongoing commitment to corporate social responsibility.

2024 Zhenxiong County Zhaotong City Yunnan. In

response we immediately deployed a team

of technical experts equipped with emergency Case Study Fund Donation to Support Scientific Research

surveying equipment to the site. Our team

worked closely with local authorities to support

rescue and relief efforts. In May 2024 Shanghai Taihexing Enterprise Development Partnership (Limited

Partnership) a person acting in concert with the Company’s controlling shareholder

donated RMB 2 million to the Education Development Foundation of a university in

Shanghai. The donation established the “Little Squirrel” project fund under the College

of Social Development and Public Policy supporting research on social support

PS-SAR1000 360 ° SAR Monitoring System Monitoring the Slope systems for children with ADHD. The fund aims to provide more effective science-

based support for these children and to contribute to building a more inclusive society.In April flooding struck the Beijiang River in Guangdong In 2024 Shanghai Taihexing Enterprise Development Partnership (Limited Partnership)

Province. Our technical team in collaboration a person acting in concert with the Company’s controlling shareholder donated RMB

with the National Institute for Natural Disaster 3 million to the education development foundation of a university in Nanjing. The

Prevention joined a levee inspection team donation is earmarked for the university’s CHC Navigation Talent Program aiming to

in Qingyuan City to assess potential risks. support the development of its talent cultivation initiatives.We promptly shared our findings with local

authorities providing critical data that enabled

the implementation of timely preventive

measures and helped reduce the impact of the

disaster.Case Study Instrument Donation to Fulfill Our Mission

Levee Inspection Site

In November 2024 we donated a handheld 3D laser scanner to a national-level experimental teaching demonstration center

at a university. This donation supports the training of future surveying professionals and enhances collaboration between

In June heavy rainfall and severe storms affected industry academia and research. It aims to help universities achieve more innovative outcomes in the field of surveying and

multiple areas of Huangshan City Anhui mapping.Province resulting in significant flooding. Our

technical team collaborated with the Huangshan

Hydrology and Water Resources Bureau to

conduct urgent river flow measurements

delivering essential data to support local flood

control and disaster response efforts.APACHE 4 Unmanned Surface Vessel in Operation

In July continuous rainfall triggered a piping risk at

pile number 19+800 along the Dongting Lake

frontline in Huarong County Yueyang City

Hunan Province. At 17:48 following a failed

emergency closure the levee breached. Our

team quickly joined the rescue efforts collecting

above-water and underwater terrain data

conducting levee inspections and identifying

risks such as piping and seepage. Our timely

support helped stabilize the defense line and

enabled a swift accurate closure of the breach.CHCNAV Technicians Processing Data RS30 laser Scanner Donation Event

8586

Navigation with Intelligence Future New Planet Intelligence to Society with InnovationShanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Key achievements

Total number of R&D personnel / 681 615 554

R&D department

Governance performance personnel Proportion of R&D personnel % 34 33.28 32Employee

employment

Number of employee resignations / 253 / /

Number and proportion of

Issue Indicator classification Name of quantitative indicator Unit 2024 2023 2022 employee resignations Employee turnover/resignation rate % 12 / /

Total number of Board of Directors members / 7 7 7

Protection of basic rights Employee social security payment % 100 100 100

Among them: Number of female directors / 1 1 1 and interests coverage rateCorporate

Board of Directors

governance

Among them: Number of executive directors / 4 4 4 Employee rights Discrimination Confirmed incidents of discrimination / 0 0 0& interests and

Among them: Number of independent directors / 3 3 3 welfares Forced labor Confirmed incidents of forced labor / 0 0 0

Commercial bribery and

Total number of confirmed corruption cases / 0 0 0

corruption incidents Child labor Confirmed incidents of child labor / 0 0 0

Total number of lawsuits/administrative penalties / 0 0 0 Occupational safety Number of safety drills (fire toxic gas Commercial against fair competition training / 2 1 /leak etc.)

ethics

Unfair competition cases Employee

RMB safety Number of work-related deaths / 0 0 0

Total fines for violation of fair competition 0 0 0

(10000) Work-related injury

Occupational disease incidence % 0 0 0

Total number of training sessions

/527396280

Environment performance throughout the yearTalent

training and Staff training assessment

development Number of employees trained / 2046 1844 1734

Issue Indicator classification Unit 2024 2023 2022 Employee training coverage % 100 100 100

Number of violations of environmental laws and regulations / 0 0 0 RMB R&D expenditure 46901.91 46211.31 40304.60

(10000)

Environmental

Amount of major administrative penalties imposed by relevant R&D investment

management RMB

departments such as the ecological environment department 0 0 0 Proportion of total R&D expenditure

(10000)%14.4317.2518.02

due to environmental incidents during the reporting period against operating revenue

R&D innovation

Energy utilization Total amount of purchased electricity MWh 5601429.2 5406212.34 / Number of patents held / 452 353 273

Intellectual property Number of invention patents held / 183 162 156

Society performance Number of software copyrights held / 333 315 253

Annual amount of damages involved

Product quality Product quality RMB in major safety/quality liability incidents 0 0 0(10000)

related to products and services

Issue Indicator classification Name of quantitative indicator Unit 2024 2023 2022

Number of employees Total number of employees / 2046 1844 1734 Number of confirmed incidents of data / 0 0 0

security

Number of newly-recruited

Total number of employees / 455 / /

employees Specific amount involved in incidents RMB

000

Data security of data security (10000)

Employee Number of female employees / 416 387 349 and customer Data security and customer

employment privacy

Number of male employees / 1630 1457 1385 privacy Number of confirmed incidents of

Number and proportion of / 0 0 0customer privacy breach

employees by gender

Proportion of female employees % 20 21 20

Specific amount involved in incidents RMB

000

Proportion of male employees % 80 79 80 of customer privacy breach (10000)

87 88Shanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Index of Indicators Level-1 topic Level-2 topic Related chapters

Risk management

Level-1 topic Level-2 topic Related chapters 12 Supply chain security Support measures Responsible procurement

Management of risks and opportunities related to Improvement measures

climate change

Treat small and medium- Unpaid amount

Assess the adaptability of the Company's strategy Environmental protection and climate 13 sized enterprises equally Responsible procurement

and business model to climate change response Specific situation

1 Combating climate change

Transformation plans and measures to address Management system

climate-related risks and opportunities and progress Product quality

Quality certification

Practices in reducing Greenhouse gas emissions Energy management and resource 14 Product and service safety conservation and quality Major accidents Not involved

Information of pollutant discharge After-sales service

Customer rights and interests

2 Pollutant emissions Pollutant discharge and treatment Waste emission management Accessibility

Emission reduction targets Management system

Data security and

Information of treatment 15 customer privacy Security incidents Information security

3 Waste disposal Waste emission management protection

Emission reduction targets Leakage

Ecosystem and Protective measures within the area Employee recruitment Employee employment and rights4 biodiversity conservation Biodiversity conservationProtective and restoration measures 16 Employees Occupational health and safety Occupational health and safety

5 Environmental compliance

Risk management Environmental protection and climate Career development and training Career development and training

management Emergency response

17 Stakeholder

Communication system

Status of use communication

Investor relations management

Suggested channels

6 Energy utilization Energy management and resource

Clean energy conservation Management system

Anti-commercial bribery

7 Water resource utilization Status of use Energy management and resource 18conservation and anti-corruption

Training performance Business ethics

Event

Specific measures

8 Circular economy Energy management and resource 19 Anti-unfair competition Administrative penalties Business ethicsconservation

Progress

9 Social contribution Contribution Heartwarming social welfare initiatives

Strategic goals Innovation driven

Specific situation Innovation driven

10 Innovation driven

R&D results Innovation driven intellectual property protection

Innovation impact Innovation driven

Internal management Innovation driven

11 Scientific and technological ethics

Violations Not involved

89 90Shanghai Huace Navigation Technology Ltd. Environmental Social and Governance (ESG) Report

Reader Feedback Form

Dear Reader 8. Are the information indicators and data disclosed in the report clear accurate and complete

Thank you for taking the time to read the 2024 Environmental Social and Governance (ESG) Report of Shanghai Huace Navigation □ Excellent □ Good □ Average □ Below average □ Poor

Technology Ltd. To better serve you and other stakeholders and to continuously improve our performance in fulfilling our corporate social

responsibility we sincerely welcome your feedback and suggestions. Your insights are valuable in helping us provide more meaningful

information and enhance our ESG practices.

9. Do you think the content arrangement and layout design of this report are easy to read

□ Yes □ No

Multiple Choice Questions (Please tick the appropriate box)

1. How would you rate the overall quality of this report

Open-ended Questions

□ Excellent □ Good □ Average □ Below average □ Poor

Do you have any comments or suggestions regarding CHC Navigation’s social responsibility performance and this report

2. How would you rate the report’s responses and disclosures on issues of concern to stakeholders

□ Excellent □ Good □ Average □ Below average □ Poor