2025

Sustainability Report &

Environmental Social and

Governance Report

Pursuing the carbon fiber dream and leading

the global advanced materials industry！

Company Address: 130 Tianjin Road High-tech Zone Weihai 264202

Shandong China

Company Email: info@gwcfc.cn

Contact Number: 0631-5298586

17:09 1CATALOGS

* About This Report 01 Strengthen the Foundation 02 Deepening Environmental Addressing Climate Change* Chairman’s Statement of Governance Responsibility 03

* The Operation of "Shareholders' Meeting * Energy Utilization Conservation and Emission * Climate Change Response Management System

About GW COMPOS Board of Directors and Senior Management" Reduction * Identification and Management of Climate Change

* Information Disclosure Management * Circular Economy Risks and Opportunities

* 2025 Year-End Milestones * Anti-commercial Bribery and Anti-corruption * Water Resource Utilization

* 2025 Awards * Internal Control * Pollutant Emissions

* Anti-unfair Competition * Waste Disposal

ESG Management * Tax Compliance * Environmental Compliance Management

* Green Products

* ESG Governance * Ecosystem and Biodiversity Conservation

* Sustainable Development Strategy

Quality Manufacturing Industry Practicing the People-Oriented Partners working together for

* ESG Management System and Risk 04 05 06 mutual benefit

Management Benchmark Philosophy

* ESG Capability Development and Stake

* Innovation-driven * Compliant Employment * Treat Small and Medium-sized Enterprises Equally

Holder Communication

* Product Safety and Quality * Protection of Employee Rights * Data Security and Customer Privacy Protection

* Customer-centric * Occupational Health and Safety * Responsible Supply Chain

* ESG Performance Table

* Responsible Marketing * Empowering Employee Development * Multi-party Collaboration

* Indicator Index

* Chemical Safety Management * Social Contribution and Rural Revitalization

* Major Domestic Associations and

* Digitalization and Intelligentization Construction

Organizations Involved

* Report Recommendations and FeedbackAbout This Report Basis of Preparation

The "2025 Sustainability Report and Environmental Social and Governance Report of Weihai Guangwei Composites Co. Ltd." This report is prepared mainly in accordance with Self-Regulatory Guidelines No.2 for Companies Listed on Shenzhen Stock

(hereinafter referred to as "this Report") is the first special report on sustainable development and environmental social and governance Exchange — Standardized Operation of ChiNext Listed Companies Self-Regulatory Guidelines No. 17 for Companies Listed on

(ESG) published by Weihai Guangwei Composites Co. Ltd. (hereinafter referred to as "GW COMPOS" "the Company" or "we"). Shenzhen Stock Exchange — Sustainability Report (Trial) and Self-Regulatory Guide No.3 for Listed Companies —

Compilation of Sustainability Report of the Shenzhen Stock Exchange ChiNext.This report systematically discloses core concepts governance structure strategic planning and practical achievements of GW COMPOS

in the ESG field. This report is not only an important reflection of the Company's commitment to sustainable development and fulfillment Meanwhile it refers to the Global Reporting Initiative (GRI) Standards of the Global Sustainability Standards Board (GSSB) the

of its information disclosure obligations as a listed company but also a self-examination and summary of the Company's efforts to improve United Nations Sustainable Development Goals (UN SDGs) the IFRS Sustainability Disclosure Standards of the International

its sustainable development capabilities. It facilitates stakeholders' understanding of relevant information and jointly promotes the steady Sustainability Standards Board (ISSB) Corporate Sustainability Disclosure Standards — Basic Standards (Trial) Application

implementation of sustainable development goals. Guidance to the Corporate Sustainability Disclosure Standards—Basic Standards (Trial) and Corporate Sustainability Disclosure

Standards No.1 – Climate (Trial) issued by the Ministry of Finance and eight other authorities as well as the EU Corporate

Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS) etc. Combined with industry-

Report Scope specific requirements the Company continuously enhances the disclosure specifications of this report to fully respond to the

expectations and demands of stakeholders.This report covers all entities within the scope of the Company's consolidated financial statements. Any discrepancies in the scope of

disclosure will be noted in the relevant section. For ease of expression and reading the references to titles used in this report are shown in

the table below:

Information and Data Description

Abbreviated name refer to Full name

The data cases and related information used in this report are all derived from GW COMPOS' official documents annual statistical

GW COMPOS the Company we our Company refer to Weihai Guangwei Composites Co. Ltd. reports and valid records from daily operations. We guarantee that there are no false records misleading statements or material

omissions. The Company's Board of Directors has reviewed and approved the content of this report and is responsible for the

Guangwei Group Controlling Shareholder refer to Weihai Guangwei Group Co. Ltd. truthfulness accuracy and completeness of the information. Financial information in this report is measured in RMB and

Composite Materials Technology refer to Weihai Guangwei Composite Materials Technology Co. Ltd. environmental and other related performance indicators are disclosed using internationally accepted standards and units of

measurement.Guangwei Precise Machinery refer to Weihai Guangwei Precise Machinery Co. Ltd.Tuozhan FIBER refer to Weihai Tuozhan FIBER Co. Ltd.Report Acquisition Methods and Contact Information

Advanced Energy Materials refer to Weihai Guangwei Advanced Energy Materials Co. Ltd.Inner Mongolia Guangwei refer to Inner Mongolia Guangwei Carbon Fiber Co. Ltd. This report is published in both Simplified Chinese and English. The electronic version can be viewed or downloaded online from

the Company’s official website (https://gwcfc.com/). In the event of any discrepancy in interpretation between the Chinese and

Guangsheng Technology refer to Weihai Guangsheng Aerospace Technology Co. Ltd.English versions please refer to the Simplified Chinese version.Beijing Lanke refer to Beijing Lanke Yingsheng Aviation Technology Co. Ltd.For any inquiries or feedback regarding this report please contact us through the channels below:

Reporting Period Company Address: 130 Tianjin Road High-tech Zone Weihai 264202 Shandong China

This report covers the period from January 1 2025 to December 31 2025 (hereinafter referred to as the "reporting period" or "this year"). Company Email: info@gwcfc.cn

This report adopts an annual report publication mechanism consistent with financial reports. Unless otherwise specified all data in this

report are statistical data for the aforementioned period. To enhance the continuity and comparability of this report some content extends Contact Number: 0631-5298586

beyond the above time frame as needed.

0102

About This ReportGreen symbiosis fulfilling the mission of sustainable development Dawei Gu was awarded the title of “National Model Worker” and as the only invited

Chairman's Statement Carbon fiber and its composite materials possess numerous advantages including lightweight model worker representative from Weihai participated in the commemoration of the

and long lifespan making them indispensable key materials for achieving lightweight and 80th anniversary of the victory of the Chinese People's War of Resistance Against

green low-carbon development across various fields. They can directly reduce energy Japanese Aggression and the World Anti-Fascist War demonstrating the responsibility

consumption and greenhouse gas emissions in production and daily life. We have been and glory of the Company’s employees.committed to promoting the application of carbon fiber and its composite materials in the In the Company employees are never just "cogs" on the production line but stars with

In 2025 all employees of GW COMPOS upheld the founding vision of Mr. circular economy hoping to provide new possibilities for building a green and sustainable unlimited potential. To enable all employees to transform from "operators" to "leaders"

Guangwei Chen to serve the nation through industry. Guided by the strategy of industrial ecosystem. In 2025 the Company’ s high-performance carbon fiber products were the Company has paved a visible path for advancement for employees in different

“advancing through innovation and pursuing quality-driven growth” we continued to selected as an outstanding case in the hydrogen energy industry. Featuring core advantages positions through a systematic training mechanism tiered talent development

overcome key bottlenecks in carbon fiber and composite materials making steady such as lightweight high strength and design flexibility these high-performance carbon fibers specialized skills competitions and generous innovation rewards. Whether they are

progress in technological innovation green development and corporate responsibility. provide critical support for the industrialization of hydrogen energy demonstrating the strong skilled workers dedicated to production or engineers devoted to research and

momentum generated by the integration of advanced materials and clean energy. Going

Breakthroughs in technology to solidify the foundation of development all can stand out through internal promotion project practice

forward we will continue to focus on technological innovation and application scenarios of the competitions and other channels within the Company. In the future we hope that every

self-reliance in the carbon fiber industry carbon fiber and composite materials industry with emphasis on key fields including new employee can realize their life value and career dreams on the platform of GW

In 2025 we continued to place technological innovation at the core of our energy high-end equipment energy conservation and environmental protection. We will work COMPOS and illuminate the journey of building a great modern socialist country with

development driving breakthroughs and industrial upgrading. Upholding a spirit of with upstream and downstream partners to build a collaborative innovative green and low- the brilliance of GW COMPOS employees! Dear partners every achievement in 2025

innovation and excellence we achieved a series of landmark results in carbon fiber and carbon industrial ecosystem contributing more to achieve China's "Carbon Peaking and is inseparable from the trust and support of our clients the steadfast companionship of

composite materials. Tuozhan FIBER was recognized as a National Manufacturing Carbon Neutrality Goals" and the high-quality development of the circular economy. our investors and above all the dedication and hard work of all employees. On behalf

Single Champion Enterprise and a Specialized and Sophisticated “ Little Giant ” of the Company I would like to express my sincerest gratitude to every partner who has

Enterprise. High-strength high-modulus carbon fiber was selected as one of the Top Passing on the torch empowering future development with walked alongside us.Ten Scientific and Technological Innovation Achievements in Shandong Province. responsibility

The “Ultra-thin Carbon Fiber Prepreg and Its Production Process” received the 2025 An enterprise cannot thrive without support from society. Only by shouldering responsibilities Looking to the future the Company will continue to uphold the core spirit of Mr.SAMPE China Innovation Award and the “High-Pressure Composite Structure Design proactively and carrying forward its mission from generation to generation can it achieve Guangwei Chen adhere to the original aspiration of serving the country throughand Application” project won the First Prize of the Science and Technology Progress sustainable development.The Company held the 9th "Guangwei Cup" Science and Technology industry and strive to overcome more key technologies in the carbon fiber field

Award from the Chinese Society for Composite Materials. These achievements reflect Innovation Competition for University Students organized by the Chinese Society for deepening technological innovation and the transformation of research results. We will

our continued commitment to independent control of core technologies and to breaking Composite Materials providing a fair platform for young students to compete and showcase promote green and low-carbon development with stricter standards fulfill our social

foreign technological monopolies. their talents guiding more young people to devote themselves to the materials industry and responsibilities with more concrete measures deeply cultivate rural revitalization

cultivating new blood for the industry's development.Inner Mongolia Guangwei and the School strengthen our talent advantages and strive to contribute more to the high-quality

The commercialization of R&D achievements empowering

of Materials Science and Engineering of Inner Mongolia University of Science and development of China's new materials industry the quality improvement and efficiency

the low-altitude economy and high-end equipment with core Technology jointly established a "University Student Internship and Training Base" further enhancement of the low-altitude economy and social progress. May all parties join

materials deepening university-enterprise cooperation and cultivating a fertile ground for practical talent hands in unity embark on a new journey together and write a new chapter of endeavor.Aligned with national strategies for the low-altitude economy the Company delivered development.strong results in 2025. We provided key material support for major domestic platforms People-oriented development enabling strivers to shine brightly Chairman of GW COMPOS

including the “Jiutian” UAV the world’s first 6-ton tiltrotor aircraft Lan Ying R6000

This year our employees continued to shine brightly in their respective roles. On November 28

and the RX4E four-seat electric aircraft demonstrating the reliability of domestically Zhaojun Lu

2025 the 2025 China National Textile and Apparel Council Science and Technology Awards

produced carbon fiber. The AR-500 unmanned helicopter project received the First

Conference was held at the Great Hall of the People in Beijing where organizations and

Prize of the Jiangxi Provincial Science and Technology Progress Award. Meanwhile

individuals receiving the 2025 CNTAC Science and Technology Awards were ceremoniously

Guangwei Precise Machinery was awarded the Third Prize in the High-end Equipment

honored. At the conference Zongjie Cong Chairman of Weihai Tuozhan Fiber Co. Ltd. was

Category at the 9th Shandong Provincial Science and Technology Workers Innovationawarded the “China National Textile and Apparel Council Science and Technology Award –Competition for its aerospace additive manufacturing integrated equipment. From

Sangma Scholar Award. Lei Zhang was awarded the honor of "Weihai Craftsman" in 2025 and

advanced materials to equipment capabilities GW COMPOS continues to support the

selected into the list of " Weihai Technicians with Outstanding Contributions"; Pursuing the

upgrading of the low-altitude economy.carbon fiber dream and leading the global advanced materials industry.Chairman's StatementAbout GW COMPOS

As the first A-share listed company in China’s carbon fiber industry and a National Manufacturing Single Champion Enterprise GW COMPOS has broken through foreign technological barriers and reshaped the global landscape of advanced materials.Over three decadesthe

Company has built a fully integrated industrial chain and aligned its development with national strategies providing critical material support for national industrial upgrading and global sustainable development.Empowering national strategic capabilities through high-performance carbon fiber laying the foundation for the industry

In the face of foreign technological barriers our founder Mr. Guangwei Chen remained committed to his original

aspiration of “serving the nation through industry.” Starting with limited resources he persevered through sustained

efforts with a cumulative investment of over RMB 4 billion. In 2005 the Company successfully developed China’s first

domestically produced T300-grade carbon fiber breaking through critical technological barriers filling a key gap in the 6 Business Segments: Carbon

industry achieving independent control over core equipment technologies and products fundamentally reversing

China’s long-standing reliance on foreign technologies in the carbon fiber sector. Fiber General New Materials(prepregs) Energy New Materials 2 National “Industry-(pultruded products such as carbon University-Research-Application” 1 Competitive FullWe uphold the mission of “serving the country through industry and adhering to planks) Aerospace Advanced R&D Platform Engines: The Industrial Chain.Composites Astronautics Advanced National Industrial Design Centerthe development of our main business” and implement the “621” development strategy Composites and Precision and the National Enterprise

striving to establish a leading position in the field of advanced composite materials in China. Machinery (production equipment for Technology Center.carbon fiber and its composite

materials tooling and molds).“621” Development Strategy

05 06A complete industry chain layout building core barriers through technological

innovationGW COMPOS has grown into an industry-leading enterprise with total assets exceeding RMB 9 billion and a workforce of more than 2200 employees. The Company has built an integrated full-industry-chain layout covering “precursor fiber - carbonfiber - fabrics - prepregs - composite material products - equipment manufacturing - testing and analysis - technical design” with multiple business segments including Tuozhan FIBER Carbon Fiber General New Materials (prepregs) Advanced

Energy Materials (pultruded products such as carbon planks) Aerospace Advanced Composites Astronautics Advanced Composites and Precision Machinery (production equipment for carbon fiber and its composite materials tooling and molds)

among other business segments. Through this layout the Company has achieved 100% independent control over core technologies and equipment becoming a leading enterprise in China’s carbon fiber industry with the most complete product portfolio

advanced technologies and a fully integrated industrial chain.Adhering to the core values of “taking technological innovation as the core and serving the country through industry as the guide” the Company remains deeply committed to its main business of high-performance carbon fiber and composite materials.Its products are widely used in aerospace wind turbine blades photovoltaic thermal fields high-pressure hydrogen storage sports and leisure and building reinforcement.

01 Technology Leadership

As a benchmark enterprise in China’s carbon fiber industry the Company has presided over the drafting of two national standards Polyacrylonitrile-Based Carbon Fiber and Carbon Fiber

Prepregs. Leveraging the National Industrial Design Center and the National Enterprise Technology Center the Company has opened up the entire innovation chain from basic research to

industrial application overcome the challenges of localization of core equipment broken foreign technological monopolies and built solid technological barriers.

02 Market Leadership

With superior product quality and reliable supply capability the Company has become a core supplier in the aviation and aerospace sectors safeguarding the

security of national defense materials. At the same time it has achieved large-scale applications in civilian fields such as wind power new energy and the low-

altitude economy seizing opportunities in emerging industries.

03 Ecosystem Building

As a leading enterprise the Company has actively driven the development of the carbon fiber and composite materials industrial cluster in

Weihai. Through the model of “leader-led coordinated support” it has built a complete industrial ecosystem and was recognized as a strategic

emerging industry cluster in Shandong Province laying a solid foundation for China's carbon fiber industry.Based in China with the vision of a world of great harmony benefiting

global development

With the vision of “ pursuing the carbon fiber dream and leading the global advanced materials industry ” we integrate our

corporate development with the destiny of the nation and the well-being of humanity. Through three decades of steadfast

commitment to innovation we have not only reshaped the global industrial landscape but also provided critical support to sectors

such as national defense new energy and the low-altitude economy contributing to sustainable development for humanity.

07 08Key Milestones of 2025

On January 7th Weihai Guangwei Composites Co. Ltd. passed the certification audit by the Aviation Special Process Evaluation Center affirming its On April 28th Dawei Gu the

technical excellence and quality management capabilities in aerospace manufacturing. workshop director of GW

COMPOS was awarded the title

On January 14th the RX4E Ruixiang four-seat electric aircraft independently developed by Liaoning General Aviation Academy of Shenyang of “National Model Worker”.Aerospace University successfully obtained its Type Certificate (TC) from the Civil Aviation Administration of China becoming China's first normal

category electric aircraft to receive type approval. This milestone marks a breakthrough in China's development of new-energy electric aircraft

technology. GW COMPOS played a key role in supplying the primary raw materials for the aircraft's certification process.From August 2nd to 3rd the Annual Meeting of the Rail Transit th

On July 29th the 2025 On June 11 GW COMPOS helped the

Composite Materials Committee of the Chinese Society for

Development Conference on AG600 a large amphibious aircraft

Composite Materials co-organized by the Rail Transit

FRP Composites in Civil independently developed by Aviation Industry

Composite Materials Committee of the Chinese Society for

Engineering hosted by GW Corporation of China Ltd. (AVIC) obtain the

Composite Materials CRRC Qingdao Sifang Co. Ltd. and

COMPOS was successfully held. production certificate (PC certificate) from the

GW COMPOS was successfully held in Baotou. Civil Aviation Administration of China in

Zhuhai Guangdong.From September 16th to 18th GW COMPOS On September 19th the 2025 China State On September 29th Mr.Wenyi Wang General

showcased a variety of products and innovative Shipbuilding Corporation Limited (CSSC) Manager of GW COMPOS participated in the

achievements at the 28th China International Industrial Chain and Supply Chain Conference "New Momentum from the 'Chain'" special session

Composites Exhibition exploring cutting-edge was held in Jiangsu Province. At the conference of the "Shandong Good Brands on the Industrial

technologies and discussing development Tuozhan FIBER once again won the "Gold Chain" press conference hosted by the Information

opportunities with industry peers. Supplier" honor from CSSC. Office of the People's Government of Shandong

Province.On December 11th the "Jiutian" Unmanned On December 9th Mr. Wenyi Wang general On November 11th GW COMPOS held the 38th

Aerial Vehicle （ UAV ） for which GW manager of GW COMPOS was appointed as the anniversary celebration with employees gathering

COMPOS provided material support chairman of the presidium of the Low Altitude to participate in various fun competitions.successfully completed its maiden flight. Economy Committee of the All-China Federation

of Industry and Commerce.

09 102025 Awards

Provincial and Ministerial-level Honors

GW COMPOS Advanced Energy Materials Guangwei Precise Machinery

* First Prize of Jiangxi Provincial Science and Technology Progress Award (The * Shandong Provincial Champion Enterprise in a Specific Field * Third Prize in the High-End Equipment Category of the

People's Government of Jiangxi Province) (Department of Industry and Information Technology of Shandong Shandong Provincial Science and Technology Workers

* Shandong Provincial Champion Enterprise in a Specific Field (Department of Province) Innovation Competition (Shandong Association for

Industry and Information Technology of Shandong Province) Science and Technology)

* Listed in the Cultivation Pool of Leading New Material Enterprises and Top 50 * National Manufacturing Single Champion Enterprise

Leading New Material Enterprises in Shandong Province ( Department of Industry Composite Materials Technology (Ministry of Industry and Information Technology of the

and Information Technology of Shandong Province) * Excellence Award in the Enterprise Group of the 10th "Maker in People’s Republic of China)

* "Shandong Manufacturing Qilu Excellence" (Department of Industry and China" Low-Altitude Economy SME Innovation and

Information Technology of Shandong Province) Entrepreneurship Global Contest (Ministry of Industry and Tuozhan FIBER

Information Technology of the People's Republic of China) * National Champion Manufacturing Enterprises (Ministry

of Industry and Information Technology of the People's

Industry-level Honors Republic of China)

* Nomination Award for Shandong Provincial Governor

GW COMPOS Composite Materials Technology Quality Award (The People's Government of Shandong

* First Prize for Science and Technology Progress from the Chinese Society for * Third Prize for Science and Technology from the Shandong New Province)

Composite Materials (Chinese Society for Composite Materials) Materials Industry Association (Shandong New Materials Industry * 2024 Top 10 Scientific and Technological Innovation

* SAMPE China Innovation Award in Materials (SAMPE China Mainland Association) Association) Achievements of Shandong Province (Department of

* Top 500 Private Enterprises in China for Invention Patents (All-China Federation of * Third Prize Enterprise Group Innovation and Entrepreneurship Science & Technology of Shandong Province)

Industry and Commerce) Competition of Shandong New Materials Industry Association

* 2025 Top 100 Innovative Private Enterprises in Shandong Province (Shandong (Organizing Committee of the Shandong New Materials Industry

Provincial Federation of Industry and Commerce) Innovation and Entrepreneurship Competition)

City-level Honors

GW COMPOS

* 2024 Advanced Unit for Scientific and Technological Innovation in Weihai City(Weihai

Municipal People's Government)

* 2024 Advanced Unit in Talent Work in Weihai City (Weihai Municipal People's Government)

11 122025 Awards

Third Prize in the High-End

Equipment Category of the

First Prize of Jiangxi Third Prize Enterprise Group

Shandong Provincial Science

Provincial Science and Innovation and Entrepreneurship 2025 Top 100 Innovative Private

and Technology Workers

Technology Progress Award Competition of Shandong New Enterprises in Shandong Province

Innovation Competition Materials Industry Association

2024 Top 10 Scientific and Third Prize for Science and 2024 Advanced Unit for

SAMPE China Innovation Technological Innovation Technology from the 2024 Advanced Unit in Talent Scientific and Technological

Award in Materials Achievements of Shandong New Materials Work in Weihai CityInnovation in Weihai City

Shandong Province Industry Association

13 14ESG Management

GW COMPOS deeply integrates the concepts of Environmental Social and Governance (hereinafter referred to as “ESG”) into the entire process of corporate strategy and operations establishing a systematic ESG management system. By anchoring to sustainable development goals

the Company comprehensively enhances its sustainable development capabilities and core competitiveness.ESG Governance Structure: Clear Authority and Responsibilities Efficient Collaboration

The Company has established a four-level ESG governance structure linking the Board of Directors ESG Working Leading Group ESG Working Implementation Team and various business units/subsidiaries. By clarifying the core responsibilities of each level a closed-loop

management mechanism of "decision-supervision-execution-implementation" has been formed.Board of Directors(Supreme Decision-Making and Oversight Body):

Board of Directors * Review and approve ESG strategies objectives and major policies; * Monitor ESG risk and opportunity management and evaluate ESG performance; * Review the sustainability report and monitor the

achievement of the goals.Oversight & Decision-making

ESG Working Leading Group (Senior Executives + Heads of Core Departments):

* Formulate the ESG strategic plan objectives and implementation plan; * Review the ESG management system and coordinate the allocation of key resources; * Monitor implementation progress and review the

ESG Working Leading Group

climate risk list; * Internally review the Company's sustainability report; * Promote ESG culture building and internal and external communication.Supervision Management &

Coordination ESG Working Implementation Team (Key Members of Functional Departments):

* Formulate the ESG target implementation plans coordinate daily operations and prepare sustainability reports; * Thoroughly understand and track domestic and international sustainable development policies and

ESG Working Implementation Team

respond accordingly based on the Company's situation; * Regularly inspect the completion of the ESG strategic plan and objectives; * Establish ESG management systems and propose optimization suggestions;

* Report recommendations for improving sustainability management to the ESG Working Leading Group.Organization & Implementation

Business Units/Subsidiaries:

* Execute ESG work in their respective domains and report progress regularly; * Conduct communication with stakeholders in their respective business segments and areas of expertise; * Carry out routine ESG

Business Units / Subsidiaries management work; * Regularly report the progress of ESG objectives to the ESG working group and cooperate in submitting relevant data and materials; * Put forward suggestions for improving sustainable

development management to the ESG Working Implementation Group based on actual implementation.ESG Governance Structure

1516

ESG ManagementSustainability Strategy: Forward-looking Planning Value-Driven

E/S/G Sustainable Development Goals SDGs Short-term goals (Until 2027) Medium-term goals (Until 2030) Long-term goals (Until 2035) Key practices up to 2025

Establish a comprehensive carbon emission data 1. Established a leading group for emergency response

Further reduce the greenhouse gas Continuously deepen greenhouse gas

accounting system and complete the carbon to heavy air pollution and incorporated climate

emission intensity per unit of output value emission reduction per unit of output value

footprint assessment of major products change risks into corporate governance;

1. Addressing climate 2. Completed the Greenhouse Gas (GHG) Accounting

change and achieving low- for Scopes 1 and 2 solidifying the foundational data

Explore and define emission reduction

carbon operations Steadily reduce the greenhouse gas emission Encourage core suppliers to conduct for emission reduction efforts;

pathways that align with the Scientific

intensity per unit of output value carbon emission checks 3. Distributed photovoltaic power generation were

Carbon Target (SBTi)

implemented and green electricity supply capacity

was improved.Significantly increase the proportion of

Steadily increase the proportion of renewable

renewable energy utilization ensure stable

energy consumption advance the implementation of Continuously increase the proportion of

operation of direct green power supply 1. The Company and certain subsidiaries have obtained

E green power projects and enhance green power renewable energy utilizationprojects and raise the absorption rate of ISO 50001 certification standardizing energy

n supply capacity green power management practices；

v 2. In 2025 renewable energy consumption increased by 2. Improve energy

i 50.51% year-on-year with a marked increase in the efficiency and expand the proportion of green power;

r use of renewable energy Complete energy-saving diagnostics and retrofitting 3. Multiple energy-saving technological upgrades have

The proportion of direct green electricity Establish demonstration sites for "zero-carbon

o of major high-energy-consuming equipment to been implemented resulting in continuous supply has increased significantly factories" or "near-zero-carbon factories"

n reduce energy consumption per unit product optimization of energy consumption per unit of

product.m

e

n

t Further elevate the recycling rate of Steadily improve the recycling rate of carbon fibers;

carbon fibers establish demonstration Establish demonstration sites for "zero-carbon

a establish ledgers for waste carbon fibers and production lines and realize commercial factories" or "near-zero-carbon factories" 1. Waste carbon fiber recycling technology won the first

l composite materials application prize of Shandong Provincial Award for Circular

Economy reaching an industry-leading technical

level;

3. Promote a circular Improve the reuse rate of water resources Continuously enhance the water reuse rate Continuously enhance the water reuse rate 2. In 2025 recycled water volume amounted to 316200

economy and achieve tons; utilization rate was improved through

efficient use of resources condensate recovery and wastewater treatment;

Promote the resource utilization of by-

Reduce the generation intensity of general industrial Further reduce the generation intensity of 3. The compliance disposal rate and harmless disposal

products and further reduce the generation

solid waste general industrial solid waste rate of hazardous waste both remained at 100%.intensity of general industrial solid waste

Specialized training on waste management is

Maintain a 100% harmless disposal rate for Explore deposit-refund schemes for Continuously explore deposit-refund schemes conducted on a regular basis.hazardous waste packaging materials or shared packaging for packaging materials or shared packaging

models models

Sustain a high recovery rate for organic solvents

1718

ESG ManagementSustainable

E/S/G Development Goals SDGs Short-term goals (Until 2027) Medium-term goals (Until 2030) Long-term goals (Until 2035) Key practices up to 2025

1. Domestically produced T800-grade carbon fiber has been

To achieve complete independent A national-level cutting-edge technology put into batches and high-strength high-modulus carbon

control over aerospace-grade high-end center for carbon fiber and composite fiber has been selected as one of the Top Ten Scientific and

Maintain high-intensity R&D carbon fiber and its composite materials has been established; Acquired Technological Innovation Achievements in Shandong

investment achieve breakthroughs in

4. Innovation-driven materials a number of additional invention patents Province;

key technologies in the field of high-end

advancement to tackle 2. By the end of 2025 the cumulative number of patents

carbon fibers and composite materials;

core key technologies reached 1094 with 174 new patents added during the year;

Lead or participate in formulating

3. Joint laboratories have been established with multiple

multiple national standards Acquired a number of additional Continuously lead or participate in the universities and new cooperative projects such as T1000-

invention patents formulation of national standards grade carbon fiber have been launched to promote the

transformation of scientific and technological achievements.

1. Held multiple certifications including AS9100 and

Maintain high rates of first-pass product Establish a full-process quality

IATF16949 and passed aviation special process

yield on-time delivery and customer traceability and intelligent testing

certification in 2025;

satisfaction system

5. Ensure product To become a global benchmark enterprise 2. Carbon beam non-destructive testing device enabling real-

safety and quality to for quality in the field of carbon fiber time defect alarm;

win customer trust composite materials 3. The customer satisfaction rate reached 98.26% in 2025. The

S The main risks were effectively Maintain consistently high customer Company supported key national projects and was awarded

controlled at a rate of 100% satisfaction

o the "Gold Supplier" title by China State Shipbuilding

c Corporation Limited.i

Promote core suppliers to obtain

a Build a green resilient and digital supply Enhance supply chain resilience multiple management system

l chain ecosystem6. Build a responsible certifications 1. Supplier admission covers multiple indicators across five

supply chain to achieve major ESG modules with 100% of core suppliers signing

symbiotic and win-win integrity commitment letters.results Increase the signing rate of ESG Obtain internationally recognized 2. Attained EcoVadis Bronze Rating in 2025.Conduct on-site ESG audits of key

agreements among newly admitted certification for sustainable supply chain

suppliers

suppliers management system

Maintain high employee satisfaction and Continuously improve employee 1. The employee satisfaction rate reached 99.07% with zero

achieve a zero rate of major workplace satisfaction and maintain zero major major work safety accidents recorded;

safety accidents work safety accidents 2. 226 training sessions totaling 5689 hours were held in 2025

7. People-oriented achieving 100% safety training coverage;

Become one of the best employers in the

approach empowering 3. Dawei Gu was awarded the title of National Model Worker

new materials industry

employee development and his studio was selected as a national-level institution

Enhance the coverage of employee Build a digital talent development training over 80 technical backbone personnel;

training with a sustained increase in per platform and continuously develop a 4. RMB 22.80 million was invested in work safety with a

capita training hours diversified talent system 100% rectification rate for potential safety hazards.

1920

ESG ManagementE/S/G Sustainable SDGs Short-term goals (Until 2027) Medium-term goals (Until 2030) Long-term goals (Until 2035) Key practices up to 2025Development Goals

Conduct ongoing public welfare

initiatives such as agricultural Establish a stable and long-term

S procurement assistance and rural mechanism for social welfare 1. Continue to carry out public welfare activities such as

o donations agricultural assistance procurement and rural donations;

c 8. Giving back to society To become a benchmark for practicing 2. Maintain employment support for disabled employees and

and contributing to rural

i regional social responsibility veterans; revitalization

a 3. Donated equipment to sub-districts and sponsor community Drive employment and economic

l Maintain employment support for

events.development of the local industrial

employees with disabilities and veterans

chain

E/S/G Sustainable Key practices up to 2025Development Goals SDGs Short-term goals (Until 2027) Medium-term goals (Until 2030) Long-term goals (Until 2035)

Promote the in-depth integration of ESG

Maintain the Shenzhen Stock Exchange's

governance into business operations and

A-level rating for information disclosure; 1. Rated Grade A in information disclosure by the Shenzhen

explore incorporating key ESG

Continuously improve the sustainable Stock Exchange for four consecutive years;

9. Improve corporate performance indicators into senior development governance framework Continuously strengthen the Company's 2. Formulate integrity codes and sign anti-corruption

G governance and solidify management assessment compliance management and build a agreements with customers and suppliers;

o the foundation of benchmark for corporate governance and 3. Continuously improved internal control systems; achieved

compliance

v Anti-corruption training coverage Anti-corruption training coverage

compliant operation zero litigation related to anti-monopoly and anti-unfair

reached 100% and there were zero reached 100% and there were zero competition; attended six tax training sessions to ensure

e corruption incidents corruption incidents compliant operations.r

n

a Introduce privacy computing technology The core business systems have 100%

n to realize the "usable but invisible" data encryption coverage

management of sensitive data Build an intelligent data security 1. 100% data encryption coverage in core business systems;

c 10. Strengthen data management platform and continuously 2. A data hierarchical management and control mechanism has

e security and privacy strengthen the management of information been established emergency drills have been conducted

protection

security and privacy protection and no information security incidents have occurred.Information security training coverage Obtain professional certification for data

rate is 100% security

2122

ESG ManagementESG Management System and Risk Management: System as the Foundation Risk Control as the Shield

Closed-loop management system for ESG

risk control throughout the entire process

Management System

ESG-related risks from four dimensions: industry technology policy and social governance:

The Company has established a systematic internal ESG management system covering key areas such as environmental * Industry dimension: Focus on identifying risks such as the stability of the carbon fiber supply chain

compliance social responsibility and governance standards ensuring that ESG work is conducted in a structured manner fluctuations in international logistics and changes in demand from downstream.with clear responsibilities. * Technology dimension: Addresses risks including the failure of high-performance carbon fiber R&D the

loss of core technical personnel and patent infringement.The Company conducts regular internal reviews and updates its systems to ensure continuous alignment with internal and Risk * Policy compliance dimension: Monitors risks associated with increasingly stringent regulations such as

identification

external changes providing a solid foundation for strengthening management and fulfilling its strategic commitments. carbon emission policies under the "dual carbon" goals environmental protection and export controls.* Social and governance dimension: Identifies risks related to labor standards in the supply chain

community relationship management data security and business ethics.ESG Risk Management

* Qualitative analysis: Assess the likelihood of risks occurring such as the frequency of policy changes and

The Company has established a closed-loop risk control system covering the entire process of "risk identification → risk the frequency of supply chain disruptions.analysis → risk assessment → risk response → monitoring and improvement" and systematically carries out ESG risk * Quantitative analysis: Measure the impact of risks on the company's finances reputation and sustainable

management. Taking into account industry characteristics such as fluctuations in the carbon fiber industry chain development goals such as cost fluctuations caused by raw material price fluctuations and losses caused by

technological iterations and policy changes the Company dynamically identifies risks and assesses their likelihood and technological research and development failures.impact through both qualitative and quantitative analysis forming a graded ESG risk list categorized as high medium and Risk Analysis

low.Based on the analysis results the risks are divided into three levels: "high" "medium" and "low" and a

comprehensive evaluation is conducted in conjunction with the company's risk tolerance.Based on the results of risk assessments annual business plans and the Company's risk tolerance each functional * High risk: Directly threatens core business or compliance bottom line requiring immediate activation of

department formulates targeted risk response strategies including risk avoidance mitigation transfer or acceptance. The

special response plan.ESG Working Implementation Team regularly tracks the effectiveness of these measures dynamically updates the risk list * Medium risk: Impact on business stability or reputation requiring continuous monitoring and the

and continuously optimizes the risk management process in response to changes in the internal and external environment

Risk development of mitigation measures.ensuring that risks remain controllable and management is maintained in a closed loop. Assessment * Low risk: Localized or short-term impact to be incorporated into daily management and reviewed regularly.For different levels of risk each responsible department shall formulate and implement differentiated response

strategies:

* High risk: Establish a special working group formulate emergency plans and clarify the responsible

persons and completion deadlines.Risk * Medium risk: Establish a routine monitoring mechanism and formulate an annual improvement plan.Response * Low risk: Incorporate into daily operations management and regularly assess changes in risk.* The ESG Working Implementation Team tracks and evaluates the effectiveness of risk management

measures and dynamically updates the risk list. Every year it conducts a comprehensive review and

optimization of risk management processes and contingency plans based on changes in industry policies

Monitor and business development and stakeholder feedback to ensure the adaptability and effectiveness of the system.Improve

2324

ESG ManagementESG Capability Development and Stakeholder Communication: Full Participation Collaborative Win-Win

ESG Training System Stakeholders categories Key issues to focus on Communication methods

* Addressing climate change

* Shareholders' Meeting

By establishing an ESG capability training system covering all departments specialized training is conducted in a tiered and * Environmental compliance management * Earnings briefing

categorized manner. * Circular economy

Shareholders/ * Disclosure Announcement

* Anti-commercial bribery and anti-corruption

Investors * Roadshow events

* Supply chain security

Core technologies and * Online investor briefing day

Core Management Team production departments All employees * Product and service safety and quality * Investor hotline/email

* Innovation-driven

Conduct ESG policy Organize specialized Through the Company’s

training to deeply training programs on "ESG daily operations and * Trade unions and employee

integrate low-carbon + Technology" and "ESG + management we representative assemblies

* Employee training

transformation and Production" to guide disseminate sustainable * Employee activities

supply chain resilience proactive identification and development awareness and Staff * Staff * Employee performance appraisal

with business objectives. mitigation of environmental embed the ESG philosophy and promotion

and social risks in the as the default guiding * Employee grievance channels

* Employee satisfaction survey

research and development principle for all routine

* Official website/WeChat official

and production processes. work activities.account

* Product and service safety and quality

Customers and * Customer service phone/email

* Data security and customer privacy

Consumers * Contact visits/User

ESG Capability Training System protection

communication meetings

* Customer satisfaction survey

* Supplier training

Stakeholder Identification and Communication * Supplier evaluation and audit* Supplier Conference

* Equal treatment for SMEs

Suppliers * Official website/WeChat official

* Anti-commercial bribery and anti-corruption

account

The Company values the needs of all stakeholders has established sound multi-dimensional communication channels to ensure * Phone/Email

smooth and efficient communication timely response and feedback and improved ESG governance transparency. * Field visit

* Addressing climate change

* Energy utilization * Official website/WeChat official

Stakeholders categories Key issues to focus on Communication methods * Water resource utilization accountESG practitioners

* Waste disposal * Phone/Email

* Staff * Field visit

* Supply chain security

* Environmental compliance management

* Pollutant emissions * Environmental compliance management * Industry exchange meetingIndustry

* Waste disposal * Government-enterprise exchange meeting * Product and service safety and quality * Industry standard settingassociations/peers

* Water resource utilization * Government-enterprise symposium * Anti-unfair competition * Strategic project cooperation

* Energy utilization * Research and inspection

Government and Regulatory * Data security and customer privacy protection * Information submission * Public welfare and

Authorities * Product and service safety and quality charity/volunteer activities* Pollutant emissions

* Anti-commercial bribery and anti-corruption The general public * Community activity support* Rural revitalization

community and media * Energy conservation and emission

* Social contribution

reduction projects

* Regular information disclosure

2526

ESG ManagementGW COMPOS' ESG Materiality Topics Matrix in 2025

Materiality Topics Matrix: Focusing on Core Issues and Achieving 10

Closed-Loop Implementation

GW COMPOS has benchmarked against the requirements of Self-Regulatory Guide No.3 for Listed Companies — 9

763

Compilation of Sustainability Report of the Shenzhen Stock Exchange ChiNext and referenced the guidelines issued by nine 2 5

ministries including the Ministry of Finance and the concept of Double Materiality of the EU ESRS to establish a materiality 8

topic identification system to provide a scientific basis for formulating sustainable development strategies. 2 2 3

61

The Company conducts its ESG materiality topic assessment with the core logic of "responding to regulatory requirements 7

3 8 E

aligning with industry characteristics matching corporate development stages and focusing on stakeholder concerns" and S

establishes our materiality topic matrix accordingly.

6 8 G

514管

4理

Stakeholder Identification and Preliminary Questionnaire Survey with Multiple 5

Topic Screening Participants 7

The ESG working implementation team first outlined a We invited key stakeholders to participate in an online

4

stakeholder map encompassing suppliers downstream assessment questionnaire prioritized the topics by

customers employees local communities investors weight and then collected and analyzed the

regulatory authorities and other parties. Simultaneously questionnaires. 3 1

based on policy analysis regulatory requirements

international reporting procedures the SASB Standards

2

and industry-specific analysis the team identifies

potential ESG factors screens material sustainable 4

development topics and forms an ESG topic list. 1

0

012345678910

Financial materiality to the Company Very Important

Materiality Ranking of ESG Topics Confirmation and Implementation of Material Topics

Based on the two dimensions of "financial materiality" The Company's management conducts a final review of Environmental Social Governance

and "impact materiality" the topics are evaluated the assessment results to determine the matrix of * Addressing climate change * Rural revitalization * Due diligence

qualitatively and quantitatively and expert opinions are materiality matrix. For financially material topics the * Pollutant emissions * Social contribution * Stakeholder communication

combined to assess and identify important IROs Company provides enhanced disclosure in this report in * Waste disposal * Innovation-driven * Anti-commercial bribery and anti-

(impacts risks and opportunities) related to ESG factors. compliance with regulatory requirements and * Ecosystems and biodiversity * Supply chain security corruption

The results of the materiality analysis of topics and incorporates such topics into the decomposition of conservation * Equal treatment for SMEs * Anti-unfair competition

ranking are formed through multi-dimensional annual strategic objectives. This ensures closed-loop * Environmental compliance management * Product and service safety and quality

comprehensive judgment. management throughout the full process from * Energy utilization * Data security and customer privacy

identification to practical implementation of all material * Water resource utilization protection

ESG topics. * Circular economy * Staff

2728

ESG Management

Very Important Impact materiality in the economy society and the environmentAnalysis of The Impacts Risks and Opportunities of Sustainable Development

To better respond to stakeholder concerns we systematically organize the identified financially material topics. Focusing on their potential risks development opportunities financial impacts on the Company and corresponding

management measures detailed explanations are set forth below:

Note: In the table below the number of stars (★) is used to quantify the financial impact of climate change related risks and opportunities. The more ★ there are the greater the potential impact on the Company's financial performance.Dimension Innovation-driven Product and service safety and quality

Risk Description:

Risk Description:

? Risk of R&D Failure: High-investment R&D projects may fail to meet expectations leading

? Quality Incident Risk: Product defects may cause customer equipment malfunctions leading to compensation

to a waste of resources；

Risks and opportunities related claims and order loss；? Technology Iteration Risk: Competitors launch more advanced products causing the

? Compliance Risk: Products do not meet industry standards and face market access restrictions.competitiveness of existing R&D results to decline.to the issue – impact description

Opportunity Description:

Opportunity Description:

? Increased Customer Loyalty: High-quality products and services enhance customer trust and promote long-term

? Product Premium: High-end carbon fiber products can obtain higher market pricing;；

cooperation；

? Market Expansion: New composite materials open up markets in emerging fields such as new

? Brand Premium: High-quality products and services can command prices higher than the industry average.energy.Risks and opportunities related to the ? Financial Impact of Risk : Medium and Long Term; Financial Impact ★★★★ ? Financial Impact of Risk: Short and Medium Term; Financial impact ★★★★

issue – financial impact ? Financial Impact of Opportunity: Medium and Long Term; Financial Impact ★★★★★ ? Financial Impact of Opportunity: Medium and Long Term; Financial Impact ★★★★

? R&D Planning: Focusing on "bottleneck" technologies and emerging field needs formulate ? Quality Control: Strengthen raw material inspection production process inspection and finished product testing

phased R&D plans; and improve the quality traceability system;

? Industry-Academia-Research Collaboration: Jointly building R&D platforms with ? System Certification: Continuously maintain quality management system certification track industry standard

Response measures universities and research institutions to reduce R&D risks; updates and optimize accordingly；

? Technology Transfer: Establish a rapid transfer mechanism from R&D to pilot production to ? Customer Service: Establish a rapid response mechanism for handling customer complaints and conduct regular

mass production to accelerate the commercial application of new technologies. customer satisfaction surveys.

2930

ESG ManagementDimension Addressing climate change Circular economy

Risk Description:

? Physical Risks: extreme high temperatures and heavy rainfall may impair the power generation efficiency of photovoltaic power stations and the

stability of on-site production facilities disrupt plant operations and cause delays in supply chain logistics； Risk Description:

? Transformation Risks: Tighter carbon emission standards may increase investment in environmental protection equipment and the iteration of new ? Insufficient Resource Recycling Technology: Low recovery rates for

energy technologies may lead to insufficient competitiveness of existing green electricity facilities. waste resin acetone and dimethyl sulfoxide along with increased

hazardous waste disposal costs and rising raw material procurement

costs.Opportunity Description:

? Immature circular supply chain: Insufficient capacity of upstream and

? Revenue from Green Power Projects: The distributed photovoltaic system adopting the “self-consumption plus grid feed-in of surplus power”

Risks and opportunities related to downstream partners in processing recycled resources results in unstable

model can reduce electricity costs and generate power sales income; recycling channels.? Premium for Low-carbon Products: Compared with traditional materials the Company's carbon fiber offers advantages such as high temperature

the issue – impact description resistance and lightweight which can effectively reduce energy consumption in photovoltaic production and enhance equipment stability. The Opportunity Description:

business is expected to further benefit from demand arising from photovoltaic capacity expansion and equipment upgrades. Green products such as

? Cost Savings: Resource recycling reduces the amount of raw materials

carbon planks for wind power are aligned with the “Dual Carbon” goals and are expected to gain market premiums and incremental orders; purchased and lowers hazardous waste disposal costs；

? Policy Advantages Unleashed: Under the 15th Five-Year Plan which promotes the high-end intelligent green and clustered development of the

? Green Brand Premium: Circular economy practices enhance the

new materials industry the Company will rely on its core technological barriers to accelerate the growth of its new materials business making it a Company's ESG image and increase customer willingness to cooperate.long-term growth driver. Mea nwhile increased policy support for clean energy sectors such as photovoltaic and wind power will help the Company

expand its presence in clean energy.Risks and opportunities related to ? Financial Impact of Risk: Short and Medium Term; Financial Impact

? Financial Impact of Risk: Medium and Long Term; Financial Impact ★★ ★★

? Financial Impact of Opportunity: Medium and Long Term; Financial Impact ★★★★ ? Financial Impact of Opportunity: Medium and Long Term; Financial

the issue – financial impact

Impact ★★★

? Technological Upgrades: Accelerate the research and development and

? Expanding Green Energy Projects: Continuously promote the construction of distributed photovoltaic to improve the self-sufficiency rate of green

application of new resin technologies to improve product recyclability;

energy;

introduce explosion-proof solvent recovery machines optimize waste

? Process Equipment Upgrade: Optimize production processes and introduce low-energy intelligent equipment to reduce carbon emissions per unit of

resin recovery processes and improve the purity of recovery rate；

production capacity;

Response measures ? Supply Chain Collaboration: Prioritize suppliers with the ability to

? Accelerated Product Deployment: Ensure the Company's development direction aligns with national strategies seize policy opportunities such as

process recycled resources and establish stable cooperative channels for

equipment upgrade demands driven by photovoltaic technology iterations and further promote the large-scale application of carbon fiber in

recycled materials；

photovoltaic manufacturing equipment;

? Packaging Optimization: Continuously promote the replacement of

? Risk Response Enhancement: Develop emergency plans for production and logistics in response to extreme weather conditions and conduct

packaging materials with recyclable ones and establish a packaging

regular safety inspections of photovoltaic and wind power facilities.recycling system.

3132

ESG ManagementDimension Environmental compliance management Data security and customer privacy protection

Risk Description:

? Compliance Penalty Risks: Failure to meet environmental protection standards may result in regulatory measures Risk Description:

Risks and opportunities such as fines and production restrictions； ? Data Breach Risk: Internal management oversights or external attacks can lead to data breaches resulting in

? Increased Compliance Costs: The implementation of new environmental standards requires increased investment customer claims and regulatory penalties;

related to the issue – impact in environmental protection equipment and maintenance costs. ? Trust Crisis: Leaks of privacy information may lead to customer loss and damage to the Company's brand image.Opportunity Description:

Opportunity Description: ? Enhanced Customer Trust: Robust data security measures increase customer willingness to cooperate;

description

? Market Access advantage: A good compliance record allows priority access to orders from downstream customers ? Compliance Advantages: Complies with data security regulations and can participate in projects with high

with high environmental protection requirements； privacy protection requirements.? Enhanced Brand Trust: Compliance practices enhance the Company's credibility among investors and the public.Risks and opportunities related to ? Financial Impact of Risk: Short and Medium term; Financial impact ★ ? Financial Impact of Risk: Short and Medium Term; Financial Impact ★

the issue – financial impact ? Financial Impact of Opportunity: Medium and Long term; Financial impact ★★★ ? Financial Impact of Opportunity: Medium and Long Term; Financial Impact ★★★

? Strengthen Facility Operation and Maintenance: Regularly inspect waste gas treatment and hazardous waste ? System Development: Establish data security and privacy protection management systems and clarify data

storage facilities to ensure stable compliance with standards； management responsibilities;

? Compliance Training: Organize environmental management personnel to study the latest regulations and carry out ? Technical Protection: Deploy security facilities such as data encryption and firewalls and conduct regular data

Response measures environmental compliance publicity for all employees； security testing;

? Hazard Identification: Establish a mechanism for regular environmental hazard identification promptly rectify ? Training and Promotion: Organize employees to learn about data security regulations and operating procedures

problems and follow up on implementation. to raise their awareness of data protection.Dimension Staff Supply chain security

Risk Description: Risk Description:

? Talent Loss Risk: The loss of key technical personnel may lead to the leakage of core technologies and high ? Raw Material Supply Disruption Risk: Insufficient production capacity and logistical disruptions from core raw

recruitment and replacement costs; material suppliers may lead to production stoppages.? Employment Compliance Risk: If labor practices compensation and benefits or occupational health management ? Supplier Concentration Risk: If a single supplier accounts for too much of the market the supplier has weak

Risks and opportunities do not comply with the requirements of laws regulations and normative documents there is a risk of legal bargaining power and may face price increases or supply instability.related to the issue – impact proceedings regulatory penalties and reputational damage. ? Geopolitical Risks: Imported raw materials are subject to trade policy restrictions affecting supply channels.description

Opportunity Description: Opportunity Description:

? Enhance Innovation Efficiency: Build a comprehensive training system and promotion channels to stimulate ? Self-Sufficiency and Controllability of the Supply Chain: Successful localization of key raw materials reduces

employee innovation and accelerate breakthroughs in new product development and process optimization; external dependence and enhances supply chain stability;

? Enhanced Employer Branding: Fostering an inclusive safe and caring corporate culture increasing employee ? Cost Advantage: Competition from multiple suppliers and strategic reserves can optimize procurement costs and

sense of belonging attracting top talent in the industry and reducing long-term human resource costs. enhance product price competitiveness.Risks and opportunities related ? Financial Impact of Risk: Short and Medium Term; Financial impact ★★ ? Financial Impact of Risk: Short and Medium Term; Financial impact ★★

to the issue – financial impact ? Financial Impact of Opportunity: Medium and Long Term; Financial Impact ★★ ? Financial Impact of Opportunity: Medium and Long Term; Financial Impact★★

? Supplier Diversification: Expand the pool of potential suppliers for core raw materials and equipment and

? Talent Pipeline: Establish a multi-level training system that spans the entire career cycle of employees enrich

establish a supplier evaluation and grading system;

employee development paths enhance employee loyalty and reduce the risk of talent loss;

? Strategic Reserves: Establish reasonable safety stock levels for core raw materials to cope with short-term supply

Response measures ? Rights Protection: Strictly abide by labor laws and regulations improve the salary and benefits system establish an fluctuations;

equal employment mechanism and anti-discrimination policies and ensure the legitimate rights and interests of

? Domestic Substitution: Increase efforts in the independent research and development/cooperative development

employees;

of key raw materials and equipment and promote the independent control of core resources;

? Care and Cohesion: Regularly conduct diverse employee care activities to enhance organizational cohesion and

? Logistics Support: Sign emergency transportation agreements with logistics service providers and establish

employee sense of belonging.multiple alternative transportation routes.

3334

ESG ManagementStrengthen the

Foundation of Governance

n The Operation of "Shareholders' Meeting n Internal Control

Board of Directors and Senior n Anti-unfair Competition

Management" n Tax Compliance

n Information Disclosure Management

n Anti-commercial Bribery and Anti-corruption

GW COMPOS has always regarded sound corporate governance as the core cornerstone of sustainable development placing

compliant operation and standardized governance at a strategic level and constructing a governance system with clear

responsibilities coordinated operation and effective checks and balances. In governance practice the Company strictly regulates

information disclosure anti-commercial bribery and anti-unfair competition work taking multiple measures to safeguard the

legitimate rights and interests of stakeholders and building a solid line of defense for operational security through a

comprehensive internal control and risk management system.The Operation of "Shareholders' Meeting Board of Directors

and Senior Management"

The Company management decision-making body

* It has Nomination Committee Audit Committee Compensation and Appraisal Committee and Strategy

GW COMPOS is rooted in a scientifically standardized modern corporate governance system with clearly defined rights and

Committee.responsibilities. The Company continuously improves its governance structure standardizes the operation mechanism of the Board of

Directors * The Company operates its Board of Directors efficiently and in accordance with the Articles of "Shareholders' Meeting Board of Directors and Senior Management" ensures the independent operation effective checks and

Association and the Rules of Procedure for the Board of Directors strictly implements the authorization

balances and efficient collaboration of each governance entity and comprehensively enhances governance efficiency and business

of the Shareholders' Meeting and conducts major decision-making and management prudently to ensure

management level.the scientific and compliant nature of the Board's decisions.Governance Structure

The Company management executive body

GW COMPOS strictly adheres to the requirements of the Company Law of the People's Republic of China the Code of Corporate Senior * Senior management personnel are appointed by the Company's Board of Directors and within the scope

Governance for Listed Companies and other laws regulations and normative documents as well as the Company's Articles of Management authorized by the Board rely on the Company's governance system to efficiently implement the Board's

Association. It has constructed a governance structure with clearly defined powers and responsibilities under the "Shareholders' resolutions and coordinate the promotion of daily production and operation activities.Meeting Board of Directors and Senior Management" governance structure consisting of the "Shareholders' Meeting - Board of

Directors - Senior Management" forming a closed-loop governance system characterized by "scientific decision-making robust

oversight and efficient execution."

The Company's"Shareholders' Meeting Board of Directors and Senior Management" governance structure is deeply integrated

Shareholders' Meeting Nomination Committee

(the supreme authority) with its ESG governance structure. The Board of Directors as the core hub incorporates ESG strategies and major policies into

its review scope to ensure that the concept of sustainable development is in sync with the Company's overall business strategy.While promoting daily operations senior management takes the lead in establishing an ESG working leading group to coordinate

Audit Committee

Four Special Committees resources ensuring the achievement of ESG goals. And each functional department serves as the execution carrier specifically

Board of Directors

(decision-making and oversight) implementing the integration requirements of operation and ESG management thus building an efficient and collaborative

governance pattern.Compensation and Appraisal Committee

Senior Management

(operation and execution) Strategy Committee

During the reporting period the convening and review status of the Company’s Shareholders’ Meeting and

Board of Directors are as follows:

“Shareholders' Meeting Board of Directors and Senior Management” governance structure

* Held 2 meetings (one annual and one extraordinary) deliberated and approved 9 proposals.The Company's highest authority

* Held 5 meetings deliberated and approved 24 proposals; including 9 meetings of the Audit Committee 1

* The Company strictly follows the rules and regulations such as the Articles of Association and the Rules of

Shareholders'

Procedure for Shareholders' Meetings to organize and convene Shareholders' Meetings and legally and

Meeting

compliantly fulfills the entire process of meeting notice proposal review and voting to protect the legitimate meeting of the Nomination Committee and 1 meeting of the Compensation and Appraisal Committee.rights and interests of shareholders and ensure transparency in decision-making.

3738

GovernanceDiversity Independence and Professionalism of the Board of Directors Investor Relations

Diversification GW COMPOS has always attached great importance to investor relations. The Company strictly follows the requirements of the

The Board of Directors maintains a diverse composition. The Company currently has 9 directors in total including 3 Securities Law of the People's Republic of China and other laws regulations and normative documents and formulates and improves

independent directors and 1 employee representative director. There are 2 female directors both of whom are relevant internal systems for investor relations management in combination with its own governance practices. It has built an investor

independent directors with female directors accounting for 22.22% and independent directors accounting for 33.33% of relations management system of "transparent disclosure diversified communication equal protection and long-term win-win" and

the Board. The independent directors possess expertise spanning multiple professional fields including accounting effectively protects the legitimate rights and interests of the Company all shareholders and other stakeholders.mechanics and law with reasonable age group structure creating complementary strengths.Shareholder Communication Management: Building an Omnichannel Interactive

System

Independence

The Company has established a multi-dimensional and regular shareholder communication mechanism to ensure that investors can

Independent directors do not hold positions in the Company or its subsidiaries hold shares of the Company or have any conveniently and efficiently obtain Company information and provide feedback:

affiliation with the controlling shareholder or actual controller that could impair their independent and objective

judgment. The Audit Committee Nomination Committee and Compensation and Appraisal Committee are each chaired

by an independent director ensuring the independence and objectivity of the decision-making process. Regular Communication Channels

The Company convenes Shareholders' Meeting and holds performance briefings every year. In

Professionalism 2025 the Company convened 2 Shareholders' Meetings and 1 annual performance briefing to

The Company's directors have expertise in fields such as law economics and materials science with approximately fully explain the Company's operating performance strategic planning and other core contents to

33.33% hold doctoral degrees and all have extensive relevant professional experience providing a solid professional shareholders. The Company actively participates in securities firm roadshows and investor

foundation for the Board to deeply analyze industry trends make informed decisions on technological innovation and research activities to proactively convey the Company's value to the market.oversee complex governance matters thereby enhancing the scientific rigor and forward-looking nature of the Board's

decision-making. Daily Communication Channels

Relying on online channels such as investor hotline dedicated email and Shenzhen Stock

Exchange “Interactive Easy” platform a rapid response mechanism has been established to ensure

Performance and Compensation Management for Senior Management that investor inquiries are "responded to and implemented in every matter"; an investor relations

column has been set up on the Company's official website to centrally disclose corporate

The Company has established a comprehensive performance and compensation management system for directors and senior announcements stock information investor Q&A and other information for investors to access at

management. The Compensation and Appraisal Committee as a specialized body is responsible for formulating the assessment any time.criteria and compensation policies for directors and senior management defining the compensation determination mechanism

decision-making process and claw back arrangements. The compensation plan for the Company's directors is reviewed by the Special Communication Initiative

Compensation and Appraisal Committee of the Board of Directors submitted to the Board for approval and ultimately presented to

For key events such as major events and changes in industry policies we will promptly explain the

the Shareholders' Meeting for deliberation.potential impact to investors through special explanations and online exchanges stabilize market

expectations and build a mutually trusting and win-win shareholder relationship.The entire performance and compensation management system adheres to the principles of fairness and impartiality ensuring that

incentives are closely linked to the Company's overall performance and individual performance contributions thereby safeguarding

the effectiveness and reasonableness of the incentive mechanism.

3940

GovernanceProtection of Small and Medium-Sized Investors: Strengthening the Rights

Information Disclosure Management

Protection Mechanism

The Company attaches great importance to the protection of the rights and interests of small and medium-sized investors ensuring that GW COMPOS strictly adheres to laws and regulations such as the Measures for the Administration of Information Disclosure of

they enjoy equal rights to information participation and decision-making: Listed Companies and has established specific systems such as the Regulations on the Registration of Insider Information Recipient

and the Internal Reporting System for Material Information to build a comprehensive and standardized information disclosure

Decision-making participation guarantee management framework ensuring the authenticity accuracy and completeness of disclosures. Furthermore the Company has

formulated the Regulations on Accountability for Material Errors in Periodic Report Disclosures under which individuals who fail

The Shareholders' Meeting provides online voting options to facilitate remote participation and voting by small and medium-sized to fulfill or improperly fulfill their duties—due to negligence dereliction of duty or other personal reasons—resulting in material

in vestors. When considering major matters that affect the interests of small and medium-sized investors the votes cast by such errors or adverse impacts in periodic financial disclosures shall be held accountable for administrative and economic liabilities.investors are separately tallied and the results are disclosed on a standalone basis fully reflecting the will of small and medium-

sized investors.Inquiry Response Protection The Company has maintained an A rating in Shenzhen Stock Exchange information disclosure assessments for 4

In investor relations management the Company follows the principle of "equal response and priority handling" for inquiries and consecutive years reflecting consistent recognition from regulators and the market.su ggestions from small and medium-sized investors. Through “Interactive Easy” platform telephone reception Q&A sessions at

performance briefings and other channels the concerns of small and medium-sized investors are fully answered to ensure that

their demands are fully expressed and reasonably responded to.Anti-commercial Bribery and Anti-corruption

With "advocating integrity and practicing thrift" as the core GW COMPOS has built a legacy-based system of integrity culture

continuously deepening the culture of integrity among our employees.Shareholder Returns: Implementing a Policy of Continuous and Stable Dividends To effectively strengthen the prevention and control of corruption risks and standardize corporate operation and management GW

COMPOS has created a clean and upright development environment established a robust system for anti-corruption risk control and

GW COMPOS has always adhered to the principles of prudent operation and sustainable development. Under the premise of ensuring

implemented regulations including the Code of Conduct for Ethical Business Interactions to strengthen the integrity safeguards.the daily operating capital needs ensuring medium and long-term development investment and ensuring financial security we strictly

Through systematic measures the Company has achieved anti-corruption risks that are preventable controllable and traceable.follow the regulatory requirements such as Self-Regulatory Guide No. 3 for Listed Companies—Cash Dividend Distribution of Listed

Companies and implement a continuous stable and transparent differentiated cash dividend policy.Internal Control and Integrity Integrity Management in Client

2025 Dividend Practice: On May 21 2025 the Company implemented the 2024 profit distribution plan distributing a cash dividend of Procurement Integrity Management

RMB 5 per 10 shares (inclusive of tax) totaling RMB 412.5 million (inclusive of tax) effectively sharing the operating results with all Management Partnerships

shareholders and demonstrating the Company's commitment to long-term returns to shareholders. Information access and usage are GW COMPOS includes separate integrity Integrity agreements or anti-

defined based on job responsibilities clauses in its procurement contracts corruption agreements are signed

and a multi-level approval mechanism regularly investigates supplier performance when establishing partnerships with

is established. Simultaneously the and collects feedback from the Company clients. These clearly define the

During the reporting period the Company achieved a 100% response rate on the "Easy Interaction" platform Company regularly conducts checks employees and relevant departments. ethical conduct guidelines for

on the implementation of regulations Suppliers are comprehensively evaluated business dealings between the

for investor inquiries；

and provides compliance training to based on their integrity performance and Company and its clients preventing

Hosted 2 sessions for external institutional investor interviews; and convened 2 Shareholders' Meetings and 1 strengthen employees' awareness of the evaluation results are directly linked to commercial bribery the transfer of

integrity. future cooperation. benefits and other violations.performance briefing.

4142

GovernanceCase Study: The Company organized a special Party lecture on the spirit of the Party's eight-point frugality code to Internal Control

continuously enhance Party members' awareness of integrity and self-discipline

Based on the characteristics of the carbon fiber industry chain which is characterized by its technology-intensive capital-intensive

In July 2025 the Company specially invited Professor Jincheng Li from the Party School of Weihai Municipal Party and compliance-critical nature GW COMPOS has constructed a multi-level internal control management structure with "overall

Committee to deliver a special Party lecture or all Party members on studying and implementing the spirit of the Party's coordination at the governance level support from professional committees execution by management and implementation by

eight-point frugality code focusing on two core questions: "What is the spirit of the Party's eight-point frugality code" and functional departments." With "sound system standardized processes and refined management" as the core the Company deeply

"How to implement the spirit of the Party's eight-point frugality code" The lecture profoundly explained the connotation embeds internal control requirements into all aspects of its business management forming an internal control management system

and significance of the spirit of the Party's eight-point frugality code to the Party members promoted all Party members to that is "comprehensive thorough with clear responsibilities and highly efficient" thus laying a solid foundation for the Company's

put the spirit of the Party's eight-point frugality code into practice and further strengthened the Party members' awareness compliant operation and sustainable development.of discipline and rules.Internal Control SystemGW COMPOS has established an internal control system covering four dimensions: “ governance decision-making businessoperations risk prevention and control and compliance management ” . We have formulated over 30 primary core systems and

numerous specific regulations which are dynamically optimized based on regulatory policy updates industry developments and

the Company's business expansion to ensure the applicability and timeliness of the systems.Category of

List of Core Systems and Regulations

Systems

Covering top-level rules of corporate governance such as the "Company Charter"

Governance & "Shareholders' Meeting Rules" "Independent Director Work System" etc. clearly

Decision-Making defining the company's decision-making structure and the boundaries of power and

responsibilities.Management System for External Guarantees Management System for External

Investment and

Investments Management System for Monetary Funds and Special Funds Management

Financing & Fund

System for Raised Funds Internal Control System for Sale and Purchase of Forward

Management

Foreign Currencies Against RMB Foreign Exchange Options and Swap Transactions.Scene of a special Party lecture on the spirit of the Party's eight-point frugality code

Management System for Information Disclosure Management System for Registration of

Insiders of Inside Information Management System for Related-Party Transaction

Compliance &

Accountability System for Major Errors in Periodic Report Information Disclosure

Information Disclosure

Internal Reporting System for Material Information and Management System for Public

Opinion.During the reporting period there were 0 corruption incidents in the Company; and 0 employees were

dismissed or disciplined for corruption. Management System for Subsidiaries Management System for Inventory Measures for

Operations

the Administration of Disposal of Material Assets Management System for

Management

Environmental Protection and Management System for Seal.

4344

GovernanceDynamic optimization mechanism

Category of Systems List of Core Systems and Regulations Based on the updates of regulatory policies industry changes audit results and business development needs the internal control

system and processes are revised and improved regularly to continuously improve the adaptability and effectiveness of the

internal control system.Management System for Internal Audit Appointment System for the Selection of Accounting

Supervision & Audit

Firms

Management System for Changes in Shareholdings of Directors and Senior Management

Personnel & Integrity Anti-Unfair Competition

Management System for the Departure of Directors and Senior Management and Code of

Management

Conduct for Integrity and Compliance

GW COMPOS strictly adheres to laws and regulations such as the Anti Unfair Competition Law of the People's Republic of China

Management System for Investor Relations and Management System for Reception of Specific

Investor Relations and upholds fairness impartiality and integrity.Targets

Remember to adhere to the bottom line of compliance. The company relies on technological innovation product quality

improvement and high-quality services to participate in market competition and resolutely prohibit false advertising commercial

Party Building System for the Work of Party Branches

defamation and infringement of trade secrets. During the reporting period the company conducted anti unfair competition themed

training.Train and strengthen the compliance awareness of all staff strictly prohibit behaviors such as infringing on others' trade secrets

and defaming competitors. Meanwhile relying on the 'Public Opinion'.Internal Control Supervision and Optimization Timely respond to false rumors.GW COMPOS has established an internal control supervision mechanism of "internal audit + special inspection + continuous

optimization" to ensure the effective operation of the internal control system:

Internal audit supervision

During the reporting period the Company received 0 complaints or penalties related to unfair competition.The internal audit department conducts regular audits on the implementation of internal controls in each business segment and

subsidiary in accordance with the Management System for Internal Audit. The audit focuses on verifying the effectiveness of the

system implementation and the compliance of the process and forms an audit report and tracks the rectifications.Special inspection mechanism

Regular special inspections will be carried out in key areas such as investment and financing related-party transactions and

information disclosure to promptly identify and rectify weak links in internal control.

4546

GovernanceTax Compliance

GW COMPOS adheres to the core principles of paying taxes in accordance with the law controlling risks and enabling targeted

empowerment. It strictly abides by the Enterprise Income Tax Law of the People's Republic of China and other relevant tax laws and Tax Policy Response and Capacity Building

regulations integrates tax compliance into its daily operations and internal financial control system and continuously strengthens the

foundation of tax management through three-dimensional efforts in system construction process control and capability enhancement.GW COMPOS ensures the accurate implementation of tax policies and the continuous optimization of tax management efficiency

This ensures the legality and compliance of the Company's operations while also proactively seizing tax policy dividends to provide

by creating a forward-looking and proactive mechanism for responding to tax policies and enhancing professional capabilities.solid tax support for the Company's high-quality development.The Company's finance department has established a regular communication and learning mechanism

Tax Compliance Management System 1 including communicating with tax authorities about policies conducting special internal briefings and Q&A

sessions on tax policies every quarter in conjunction with quarterly financial reports and continuously

monitoring the dynamics of tax incentives in areas such as environmental protection and emission reduction

GW COMPOS has formed a trinity closed-loop tax compliance management mechanism which integrates "system + organization + Policy tracking

and waste resource utilization laying the foundation for the accurate application of subsequent policies.process" to ensure the standardized and regulated operation of tax work.Institutional safeguard

Tax Management Business Process. 2 In 2025 the Company attended six tax-related training sessions covering key policies such as VAT

deductions for advanced manufacturing enhancing the policy understanding and practical skills of finance

Capacity building and business personnel.Organizational division of labor

The finance department takes the lead in tax management. The finance departments of branches and subsidiaries set up tax positions

and clarified their responsibilities. Each link of tax management is subject to multi-level review and control by the finance

department forming an internal control system in which positions are mutually restrained to ensure that each link is standardized and

orderly.Process control

1. Declaration and Accounting: A multi-person review mechanism of "filling out - reviewing - approving" is implemented.

Accounting strictly follows tax policies and the processing of deferred tax items must be reviewed by the finance manager.

2. Invoice Archives: Designated personnel are responsible for the purchase issuance safekeeping and authentication of invoices.

Dedicated tax control equipment is provided and tax-related archives are classified archived and destroyed in accordance with

regulations.

3. Risk self-assessment: Actively cooperate with tax authorities inspections and process inspection conclusions in a standardized

In March 2025 the Company employees participated in In September 2025 the Company employees participated in a

manner after confirmation by relevant personnel.training on individual income tax corporate income tax seminar on the integration of law finance and taxation as well

property and behavior tax and tax credit management as labor and employment knowledge

Our Tax Management System

4748

GovernanceDeepening

Environmental

Responsibility

n Energy Utilization n Waste Disposal

Conservation and Emission n Environmental Compliance

Reduction Management

n Circular Economy n Green Products

n Water Resource Utilization n Ecosystem and Biodiversity

n Pollutant Emissions Conservation

GW COMPOS consistently adheres to the strategic policy of energy conservation and emission reduction actively promoting a

circular economy by deeply integrating environmental compliance with sustainable operations to fully implement its

environmental responsibilities.The Company strictly abides by the Environmental Protection Law of the People's Republic of China and other relevant laws and

regulations. It has established a comprehensive environmental management system covering all critical elements including

wastewater exhaust gas solid waste and noise. Through measures such as stabilizing production processes deploying supporting

environmental protection facilities promoting cleaner production technologies and implementing classified and graded waste

management GW COMPOS ensures that all pollutant discharges consistently meet regulatory standards.Furthermore the Company continuously increases its environmental investment conducts regular environmental training and

emergency drills and strengthens the environmental awareness of all employees. By establishing a long-term environmental

compliance mechanism GW COMPOS achieves coordinated development between industrial operations and ecological

protection actively contributing to the green transformation of the industry.Energy Utilization Conservation and Emission Reduction

Energy Regulation and Management

GW COMPOS strictly adheres to relevant national laws and regulations including the Energy Conservation Law of the People's The Company integrates energy utilization optimization throughout the entire process by identifying energy-saving potential

Republic of China. By refining internal policies such as the Energy Management System and incorporating them into periodic implementing technical upgrades and promoting clean energy. Leveraging initiatives such as cleaner production audits digital

compliance reviews the Company has established a three-tier energy governance structure—comprising "Leadership Guidance management and awareness programs GW COMPOS has established a closed-loop energy management system driving a

Management Coordination and Operational Execution." This framework ensures that energy management initiatives are continuous transition toward high-efficiency clean and sustainable energy utilization.implemented systematically with clearly defined accountability.General Manager * Approves energy strategies annual targets and major energy management As of the end of the reporting period GW COMPOS and its subsidiaries Tuozhan FIBER and Inner Mongolia Guangwei have

(Leadership) decisions. all passed the GB/T23331-2020/ISO50001:2018 energy management system certification.* Coordinates policy formulation and execution;

EHS & Equipment * Conducts energy consumption statistics and monitoring;

Department * Drives energy-saving retrofits;

(Management) * Liaises with regulatory authorities.* Implements energy-saving and emission reduction tasks;

Production + R&D + * Manages daily equipment energy use and maintenance;

Procurement Department * Executes production-level energy initiatives;

(Execution) * Conducts energy awareness training.

The Company’s Energy Management Organizational Structure

ISO 50001 Energy Management System Certification Certificates of the Company and Some Subsidiaries

5152

EnvironmentalEnergy Utilization Risks and Opportunities

Based on its business development the Company systematically assesses risks and impacts related to energy utilization in its production and operations actively identifies opportunities for green development and promotes efficient energy utilization and sustainable

operations.Type Description Time Horizon Potential Financial Impact Response Measures

Extreme weather and natural environmental changes may damage energy infrastructure Short-to-Medium Operating costs↑; Conduct regular maintenance; implement energy risk grading and redundant power

Physical Risk disrupting core production processes and impacting delivery stability. Term Potential revenue loss in high-impact scenarios. solutions to minimize disruptions to production and delivery.Policy & Legal Risks: Under the national "Dual Control" mechanism for energy consumption

production bases face higher transition requirements. Non-compliance may increase Short-to-Medium Operating costs↑ Monitor national/local "Dual Control" policies; conduct compliance training and

environmental taxes or penalties. Term energy audits; establish energy ledgers to identify and rectify over-limit consumption.Transition Risk

Operational Risks: As carbon fiber production is energy-intensive continuous energy growth Short-to-Medium Operating costs↑ Explore clean energy; establish regular inspection mechanisms for high-energy may lead to technical upgrade pressures or capacity constraints. Term equipment; advance the digitalization of energy management.Market Opportunities: Amid the 15th Five-Year Plan's accelerated buildup of new energy Medium-to-Long Revenue↑; Enhance R&D for high-strength/high-modulus carbon fiber; empower wind power

systems rising demand for green products creates significant market opportunities. Term hydrogen and low-altitude economy sectors with high-performance lightweight R&D expenditure↑ materials.Energy procurement costs↓;

Technological Opportunities: Energy-saving technologies help reduce consumption and Medium-to-Long Implement automation retrofits and variable frequency controls; install power

Opportunities improve efficiency across both production and operational stages. Term Revenue↑; optimization and PV systems; apply carbon-reduction and lightweighting technologies.Technical investment↑

Reputational Opportunities: Efficient energy utilization and precision management enhance Medium-to-Long Leverage "National Green Factory" status to refine green manufacturing;

corporate image strengthening customer trust brand value and industry influence. Term Revenue↑ communicate sustainable values to solidify brand reputation and competitive advantage.Energy Utilization-related Risks and Opportunities and Potential Financial Impacts

Note: The time horizon in the above classified as short-term (0-3 years) medium-term (3-10 years) and long-term (over 10 years).

5354

EnvironmentalEnergy Conservation and Consumption Reduction Clean Energy

The Company strictly adheres to the Environmental Factor Identification and Assessment Control Procedure to regulate its The Company and its subsidiary Tuozhan FIBER have

production and operations identifying resource consumption and energy-saving potential as significant environmental factors. collaboratively deployed multiple distributed photovoltaic (PV)

Meanwhile through risk grading and assessments of high-energy-consuming equipment failures and supply fluctuations the projects in response to the "Dual Carbon" strategy.Company prioritizes operation maintenance and compliance management formulating contingency plans to ensure energy stability.* GW COMPOS completed a distributed PV project with a total

In response to the energy utilization-related risks identified through the Environmental Factor Identification and Assessment Control installed capacity of 6.5346 MWp.Procedure the Company has adopted the following measures: * Its subsidiary Tuozhan FIBER completed a 10.3 MW rooftop and

ground-mounted PV station generating 11.85 million kWh in 2025.* Regularly inspect and maintain equipment strengthen the operation and This initiative saved approximately RMB 1.66 million in electricity

Equipment maintenance of high-energy-consuming equipment replace outdated equipment costs and reduced CO? emissions by 6312 tons achieving a win-

optimization

in a timely manner and procure energy-efficient production equipment win for resource conservation and energy efficiency. Aerial view of the Company's photovoltaic

power station

* Implement energy-saving technological transformation projects such as condensate

recovery and reuse shaping box equipment improvement and upgrades to filter

Technological

improvement cleaning and circulation equipment

* Establish a steam waste heat recovery system to achieve cascaded energy

utilization

Case Study: Tuozhan FIBER Participates in Weihai Carbon Fiber Industrial Park’s "Source-Grid-Load-

* In accordance with the Energy Monitoring and Measurement Control Procedures Storage" Pilot to Drive Low-Carbon Transformation

Data monitoring energy consumption data is monitored on a dynamic basis energy metering

records are established and data analysis is conducted regularly to promptly

identify and rectify abnormal energy consumption issues

GW COMPOS' subsidiary Tuozhan FIBER is deeply involved in the "Source-Grid-Load-Storage" Integration Pilot

Project at the Weihai Carbon Fiber Industrial Park. This initiative is the first grid-connected project of its kind in

Measures to address risks in energy use Shandong Province and the first park-level pilot within the State Grid’s jurisdiction. By transitioning to a model of

"Direct Green Power Supply + Energy Storage Peak Shaving + Dual-Grid Backup" the project significantly drives

In 2025 through the continuous implementation of energy-saving technical retrofits and optimized operational management GW energy reduction and sustainable development.COMPOS effectively controlled its total comprehensive energy consumption. Notably total renewable energy consumption

Phase I achieved full-capacity grid connection in December 2025 supplying over 200 million kWh of green

reached 3218.37 tce representing a year-on-year (YoY) increase of 50.51% compared to 2024.electricity annually. Upon full completion the project will provide 450 million kWh of green power per year saving

175500 tons of standard coal and reducing CO? emissions by 468600 tons annually.

Indicator Unit 2025

Total energy consumption Ton of standard coal 47630.99

Of which: Total consumption of renewable energy Ton of standard coal 3218.37

Total energy intensity Ton of standard coal / RMB ’000 of revenue 0.02

Construction of the Source-Grid-Load-Storage Project

Energy Consumption in 2025

5556

EnvironmentalCircular Economy Circular Economy Management Measures and Achievements

GW COMPOS strictly adheres to the Circular Economy Promotion Law of the People's Republic of China and other regulations In response to the national circular economy development plan and "Carbon Peaking and Carbon Neutrality" goals the Company deeply

integrating the principles of "Reduction Reuse and Recycling" throughout the entire lifecycle from R&D and production to disposal. integrates circular concepts into all stages of production and operations. By systematically identifying compliance opportunities and

Leveraging technological innovation the Company has achieved tangible results in solvent recovery and waste carbon fiber reuse. By leveraging process innovation and management upgrades GW COMPOS improves resource recycling rates and builds a circular

reducing resource consumption and environmental impact we enhance our core competitiveness through circular value creation development model tailored to the carbon fiber industry striving to become a leading industry benchmark for the circular economy.earnestly fulfilling our commitment to green and sustainable development.Production & Operations Phase: Driving Resource. Efficiency and Process Decarbonization

* Resource Precision Management: Implementing real-time monitoring of energy and water consumption through digital metering

and dynamic control systems.* Process Circularity Enhancement: Optimizing manufacturing workflows to increase resource reuse rates.* Clean Production Advancement: Adopting closed-system design ordered emission control and pollution prevention at source.* Waste Valorization: Internal recycling of process scrap + external collaboration to resourceize trimmings and non-conforming

products.* Energy Structure Decarbonization: Scaling distributed photovoltaics and other renewables; actively participating in integrated

“source-grid-load-storage” projects to achieve operational carbon neutrality.Production &

Product R&D Phase: Embedding Circularity. Operations Logistics & End-Use Phas.e : Enabling Green Supply

from Design Inception Chains and Downstream Decarbonization

Circular Economy

* Lightweighting Innovation: Leveraging carbon * Green Logistics Implementation: Promoting JIT delivery

fiber ’ s exceptional strength-to-weight ratio to

Logistics & End- reusable packaging and biodegradable/recyclable

deliver lightweight solutions for wind turbine blades R&D Use packaging solutions.marine equipment aerospace components and low- * Client Carbon Abatement Enablement: Core composite

altitude economy applications—reducing embodied products serve as critical enablers—significantly reducing

energy and lifecycle emissions at source. downstream and end-user emissions.* Sustainable Material Development: Prioritizing eco- Recycling &

friendly material selection structural optimization Reuse

and design-for-recycling to enhance end-of-life

recoverability and minimize environmental impact.Recycling & Reuse Phase: Buildi.n g a Closed-Loop Recovery Ecosystem

* Actively developing thermal depolymerization (pyrolysis) technologies for carbon fiber recovery;

* Expanding collection and reprocessing capacity for carbon fiber-reinforced polymer (CFRP) waste;

* Establishing a circular value chain: Resources → Products → End-of-Life Waste → Regenerated Raw Materials.

5758

GW COMPOS incorporates a circular economy concept throughout the entire process

EnvironmentalCircular Economy Management Objectives

In 2025 GW COMPOS' specific circular economy management measures are as follows:

GW COMPOS has established medium-to-long-term circular development goals and detailed accountability metrics to ensure the

effective implementation of its initiatives. In alignment with the specific characteristics of carbon fiber composite production the

* Developing PV power stations and advancing energy-saving retrofits including dipping process Company plans to achieve the following targets between 2026 and 2030:

improvements and cold storage upgrades.Reduction * Installing water-saving fixtures and optimizing pipeline networks to achieve the recovery and reuse of steam

condensate from production.During the R&D and

Design Phase * Expand R&D investment in green product technologies and accelerate the

* Material Circularity: The Company reuses waste carbon fiber composites generated during production development of advanced r.e sin (e.g. thermoplastic resins like PEEK) prepreg

through an innovative "Downcycling + Shredding & Regeneration" dual-track model. Additionally the technologies to enhance recycling and utilization rates.Reuse

Company has implemented projects including coagulant recovery solvent distillation and improved filter

cleaning circulation systems.During the Production

and Operation Phase: * Continuously optimize the production process

* Explore the expansion of pho tovoltaic power stations

* Repurposing general industrial solid waste and waste resin; processing chopped carbon fibers and other

Resource scraps through shredding for use as high-performance reinforcement materials.Recovery

* Strengthening R&D and university-enterprise collaborations to optimize carbon fiber recycling technologies.Circular Economy Management Objectives

GW COMPOS' circular economy management measures

In addition the Company has formulated a Special Improvement Plan which clearly states the goals to be achieved in stages

within 1-3 years: implementing solvent recycling reducing solvent volatilization enhancing the performance of

environmental protection equipment and increasing emission treatment rates.

5960

EnvironmentalCase Study: Research on the Engineering Application of Carbon Fiber Composites in Wing Sail Propulsion Systems Water Resource Utilization

for Large Vessels to Drive Emission Reductions

GW COMPOS' subsidiary Guangsheng Technology is conducting the project "Research on the Engineering Application of

GW COMPOS attaches great importance to water conservation and recycling strictly adhering to laws regulations and standards such

Carbon Fiber Composites in Wing Sail Propulsion Systems for Large Vessels." Using waste carbon planks as the core raw

as the Water Law of the People's Republic of China and the Evaluation Standard for Water-Saving Enterprises. Leveraging the Water

material the project achieves the recycling and reuse of carbon fiber from the main structure after the sail blades' lifespan.Conservation Management System and other internal policies the Company defines responsibilities for water recycling and

requirements for consumption reduction. Water conservation is integrated throughout the entire production and operation process

This project achieves a weight reduction of over 35% compared to traditional steel structures. Equipping a single vessel with 4

achieving full employee participation and end-to-end control.sets of sail blades can reduce carbon emissions by 2970 tons annually (totaling 29700 tons over 10 years) and save 934 tons of

fuel per year resulting in fuel cost savings of RMB 50 million and carbon tax savings of RMB 52.52 million over 10 years

supporting the circular application of high-end composites and carbon reduction in industrial sectors.Water Consumption Control

01 Continuously improving sub-metering and energy measurement ledgers to achieve granular water resource

management.Water-Saving Technologies and Resource Recycling

02 Enhancing recycling rates and reducing unit consumption through diverse measures including water-saving

fixtures process optimization advanced wastewater treatment and reuse and the cascade utilization of

recovered steam and thermal condensate.Guangsheng Technology won the 2024 Guangsheng Technology won the 2024

Shandong Provincial Science and Shandong Provincial Circular Economy

Technology Award for Circular Innovation Achievement Award

Economy

Cultivating Water Conservation Awareness

03

Strengthening water conservation awareness through training and advocacy to foster water-saving behaviors

across the workforce.To further ensure efficient and scientific water use in its production and operations the Company systematically assesses water-

Scene of the award ceremony for the Shandong Provincial related risks and opportunities. By actively identifying potential for conservation and efficiency gains GW COMPOS promotes

Circular Economy Innovation Achievement Award of high-efficiency water resource utilization and sustainable operations.Guangsheng Technology

6162

EnvironmentalTime Potential In 2025 the Company and its subsidiaries achieved a total recycled water volume of 316174 tons and a total water savings Type Description Horizon Financial Response MeasuresImpact of 600056 tons representing year-on-year increases of 56.46% and 41.56% respectively. The detailed

performance is as follows:

* Establish water management ledgers

Natural environmental changes such

Physical Short-to- for granular controlas extreme weather and shifts in

Medium Operating costs↑ * Optimize processes to reduce high- Indicator Unit 2025

Risk water quality may disrupt water Term water-consumption stages

supply for production and operations.* Conduct water-saving training Total water consumption Tons (t) 2100428.05

Total water consumption intensity Tons (t) / RMB ’000 of revenue 0.735

Policy & Legal Risk: Under China's Total water saving Tons (t) 600056.00

* Continuously track water policies

modern water-saving industrial Short-to- Operating costs↑ * Upgrade and promote water Total water saving intensity Tons (t) / RMB ’000 of revenue 0.21

system policies adjusting water Medium

treatment and recycling facilities

allocation or restricting usage could Term

and technologies

impact operations.Transition Water consumption and saving performance in 2025

Risk

* Invest in R&D for water-saving

Technology Risk: Iteration of

Capital expenditure processes and reserve low-water-

water-intensive technologies may Medium-to-

for R&D and consumption technologies

render existing high-water- Long Term

retrofits↑ * Phase in water-saving retrofits for

consumption processes obsolete.production lines Water conservation target

To enhance water efficiency and circularity the Company has set the following water conservation goals for 2026-2030:

Policy Opportunity: Accessing * Financing * Actively apply for policy subsidies

Short-to- * Strive for a continuous reduction in per capita domestic water consumption.green finance and policy-based costs↓; for water-saving retrofits and Green

Medium

funding (e.g. energy-saving * Subsidies Factories * Explore wastewater and rainwater recovery technologies to increase resource recycling rates.Term

subsidies green credits). boosting profit↑ * Apply for green credits

* Strive to be recognized as a "Water-Saving Enterprise" at or above the provincial level benchmarking against

Oppor-

industry-leading standards.tunities

Reputational Opportunity: * Improve the digital monitoring system to achieve real-time tracking and anomaly alerts for wastewater discharge.Enhancing water conservation * Participate in regional collaborative

Medium-to-

performance to build sustainable Revenue↑ water governance to enhance

Long Term

management capabilities and gain corporate social image

customer loyalty.Risks and Opportunities Related to Water Resource Utilization and Potential Financial Impacts

6364

EnvironmentalPollutant Emissions

GW COMPOS strictly complies with national and local regulations including the Cleaner Production Promotion Law of the People's

After being collected through gas hoods and pipelines the exhaust gas is treated by pollution control

Republic of China the Air Pollution Prevention and Control Law of the People's Republic of China the Water Pollution Prevention and Organized Waste

facilities including regularly replaced activated carbon water spray scrubbing and a regenerative

Control Law of the People's Republic of China and the Environmental Protection Regulations of Shandong Province. The Company has Gas

thermal oxidizer (RTO) before being discharged through an elevated exhaust stack.formulated and regularly updates internal policies such as the Emergency Response and Emission Reduction Plan for Heavy Pollution

Weather achieving end-to-end control from environmental factor identification to emergency response.Unorganized Waste Emissions are controlled through negative-pressure collection in enclosed workshop areas and

The Company's production activities primarily involve the R&D and manufacturing of carbon fiber precursor carbon fiber prepreg and Gas ventilation-based dilution.composite products with waste gas and wastewater as the main pollutants. GW COMPOS and its subsidiaries—Tuozhan FIBER Guangwei

Precise Machinery Advanced Energy Materials and Inner Mongolia Guangwei—have all obtained pollution discharge permits and conduct

all discharge activities strictly within the licensed scope.In 2025 the Company and its subsidiaries including Guangwei Precise Machinery Guangsheng Technology and Composite Materials During the reporting period GW COMPOS and its subsidiaries discharged a total of 1513.92 million cubic meters of

Technology regularly commissioned external agencies to test wastewater waste gas and noise. waste gas.All the emissions in the exhaust gas are below the permitted emission concentration limits and the emission results comply with the

Of the total Tuozhan Fiber accounted for 619.3 million cubic meters while Inner Mongolia Guangwei accounted for

requirements of national and local regulations.

85.32 million cubic meters.

Waste Gas Inner Mongolia

Indicator Unit GW COMPOS Tuozhan FIBER

Guangwei

The Company's waste gas is mainly generated during the polymerization carbonization and pre-oxidation processes of carbon fiber VOCs Tonnes 17.53 15.33 -

production. The primary pollutants include Volatile Organic Compounds (VOCs) particulate matter and nitrogen oxides.Particulate matter Tonnes 0.60 - 0.16

Waste gas pollutant emissions of the Company and key subsidiaries in 2025

6566

EnvironmentalWastewater

GW COMPOS utilizes a hierarchical treatment model of "In-plant Pre-treatment + Municipal Wastewater Treatment

Plant (WWTP) Advanced Treatment" to regulate wastewater. Production wastewater is primarily generated during During the reporting period the total wastewater discharge of GW COMPOS was 999600 tons a decrease of

carbon fiber production; it is pre-treated at self-built wastewater treatment stations and upon reaching discharge

standards is discharged into the Weihai Lingang District Wastewater Treatment Plant. Wastewater treatment facilities 8.49% compared to 2024. Of this the total industrial wastewater discharge was 861900 tons a decrease of

operate in synchronization with production lines with weekly inspections conducted to ensure consistent compliance. 环7.22% compared to 2024. 境

Additionally the Company strictly implements a rain-sewage diversion system supported by independent pipeline 责

Of the total wastewater discharged by the company the total volume of wastewater discharged from the expansion fiber

networks and regular maintenance. 任

was 559300 tons and that from Inner Mongolia Guangwei was 351200 tons. 深

The Company strengthens wastewater monitoring and management in its operations commissioning third-party 耕

agencies annually to ensure stable and compliant discharge while reporting discharge data to environmental authorities All discharge indicators were below the permitted discharge concentration limits meeting the permit requirements and

as required. Certain subsidiaries have further increased monitoring frequencies conducting high-frequency testing of there were no exceedances throughout the year.industrial and domestic wastewater on a weekly monthly and quarterly basis.Wastewater Inner Mongolia

Unit GW COMPOS Tuozhan FIBER

Pollutant Guangwei

COD Tonnes 34.14 28.10 1.15

Ammonia nitrogen

(NH3-N) Tonnes 16.14 9.64 6.39

Total nitrogen Tonnes 5.17 4.83 -

Total phosphorus Tonnes 0.27 0.25 -

suspended solids Tonnes 23.80 22.04 -

BOD5 mg/L 25.69 25.69 -

Wastewater pollutant emissions of the Company and key subsidiaries in 2025

6768

EnvironmentalPollutant emission-related risks opportunities and potential financial impacts

To ensure environmental compliance across the entire production and operation process GW COMPOS consistently integrates requirements such as pollutant emission control into its daily operations and production management. This ensures that environmental management measures

can precisely respond to actual risks and regulatory changes.Type Description Time Horizon Potential Financial Impact Mitigation & Adaptation Measures

Sudden pollutant discharge events damaging the surrounding environment leading to risks such as Short-to- * Regularly monitor discharge and increase testing frequency to ensure comprehensive pollutant

Physical Risk Operating costs↑

impaired clean production environments. Medium Term compliance.Policy & Legal Risk: Stricter total emission control policies; risks of fines or administrative Medium-to- * Increase investment in environmental retrofits to reduce pollutants at the source;

Operating costs↑

penalties if discharge is non-compliant. Long Term * Track policies and strengthen employee awareness through training.Reputational Risk: Non-compliance issues may trigger negative evaluations from the public Medium-to- * Regularly publish ESG reports to disclose emission data and governance results;

Revenue↓

consumers or investors damaging brand image. Long Term * Strengthen communication with stakeholders to promote green achievements.Transition

Risk

Operating costs↑;

* Regularly assessing the technological advancement of existing equipment phasing out

Impairment loss of existing equipment↓;

Technology Risk: Immature management technologies or obsolete equipment leading to rising Medium-to- obsolete facilities and introducing high-efficiency eco-friendly equipment.Capital expenditures arise from

costs or non-compliant discharge. Long Term * Tracking cutting-edge environmental governance technologies and promptly adopting mature

technological upgrading and

industry solutions.transformation↑

Capital expenditures arise from

* Promoting synergistic technologies for pollution reduction and carbon mitigation.Tech & Market Opportunity: Adopting synergistic pollution and carbon reduction technologies; Medium-to- technological upgrading and

* Establishing collaborative pollutant disposal mechanisms with upstream and downstream

collaborating with the industry chain for co-disposal. Long Term transformation↑；

partners.Operating costs↓

* Systematically identifying national and local environmental subsidy policies and actively

applying for relevant special-purpose funding projects.Opportunities Policy Opportunity: Accessing green finance and low-cost funding; exploring additional revenue Short-to- Government subsidies and income from * Leveraging environmental management performance to apply for green credits and secure

through emission rights trading. Medium Term pollution discharge rights trading↑ low-cost financing.* Monitoring regional emission rights trading market dynamics and strategically planning

transactions.* Continuously upgrading pollutant treatment facilities and optimizing technologies for source

Reputational Opportunity: Enhancing governance performance to build a responsible green Medium-to- reduction.Revenue↑

image and increase stakeholder trust. Long Term * Regularly publishing ESG reports to proactively disclose pollutant emission data and convey a

transparent compliant philosophy of green development.Pollutant emission management objectives

Strictly abide by national and local environmental protection regulations as well as pollution Guided by green development we will continuously reduce the intensity of major pollutant emissions and

Emission discharge permits and regional total quantity control requirements to ensure that the total Active reduction

reduction targets targets continuously enhance the levels of clean production and environmental performance.emissions of major pollutants remain stable and meet the standards.

6970

EnvironmentalWaste Disposal

GW COMPOS strictly adheres to laws and regulations such as the Solid Waste Pollution Prevention and Control Law of the People's Republic of China and the Measures for the Administration of Hazardous Waste Transfer Manifests. The Company has formulated more than ten

regulations such as the Hazardous Waste Management System and the Responsibility System for the Prevention and Control of Solid Waste Pollution which define the management standards and division of responsibilities for waste in all links including classification collection

temporary storage transfer and disposal fully covering the prevention and control of pollution from hazardous waste and solid waste.The Company regularly identifies and updates regulatory requirements and conducts internal compliance evaluations to ensure the efficient operation of its management system and standardize the entire waste treatment process. Furthermore waste management topics including

"Laws Regulations and Standards" "Operating Procedures" and "Emergency Response Measures" are integrated into regular training sessions to enhance disposal capabilities.Waste generated by the Company is categorized into three types: domestic waste general industrial solid waste and hazardous waste. The specific disposal procedures are as follows:

Domestic waste Set up waste cans in a reasonable manner

(Primarily generated by We entrust an external third party to regularly transport the waste to the Weihai Municipal Waste Disposal Plant for harmless treatment ensuring daily within the factory area to collect domestic

employees' daily activities) collection and disposal and preventing waste accumulation.waste in a centralized manner.A management model of "categorized collection - recycling - compliant disposal" is adopted for control and relevant ledgers are established :

General industrial solid

Secondary use of selected production waste

waste

After waste is sorted and collected it is The remaining waste will be disposed of in

(Mainly includes waste

stored in a specially constructed temporary compliance with regulations by the company

precursor waste storage warehouse which is managed by Waste packaging materials are regularly The boiler ash is recycled by a local building through a "General Solid Waste Disposal

packaging materials etc.) designated personnel. collected and transported by licensed recycling materials factory for the production of Contract" signed with qualified entities.companies with a recycling rate of ≥90%. aerated concrete blocks.A hazardous waste management system covering the entire chain of "temporary storage – internal transfer and record-keeping – external transfer and disposal – supervision and emergency

Hazardous waste response" has been established for management and control.(Mainly includes waste Temporary storage: Hazardous waste is sorted collected sealed Internal transfer and recording: In accordance with the External transfer and recording : The company submits

resin waste engine oil and stored temporarily in a special hazardous waste warehouse. principle of "The producer is responsible for recycling" the transfer applications to the Ecology and Environment Bureau，waste testing reagents Standardized hazardous waste warning signs and labels are set up production workshop shall be responsible for collecting and

packaging hazardous waste and transporting it to the hazardous and contacts qualified units for transfer after approval; the

waste paint etc.) and important information such as waste name main components waste warehouse and establishing a hazardous waste transfer process strictly follows the "Regulations on the

and weight are strictly marked . Safety exit route maps are also management ledger to record information such as the name Management of Hazardous Waste Transfer Manifests" and fills

drawn up. quantity entry and exit time of the waste and the person in in relevant record information truthfully.charge.Waste categories and treatment processes

7172

EnvironmentalGW COMPOS incorporates waste reduction into its green development strategy. In alignment with national "Green Factory" * During the reporting period the Company generated a total of 1074.36 tons of general waste. Among them the

requirements the Company continuously optimizes production processes to reduce waste generation at the source while

Tuozhan FIBER was 264.10 tons and Inner Mongolia Guangwei was 680.44 tons.strengthening monitoring and management across the entire waste disposal lifecycle. By implementing measures such as regular

maintenance of waste gas treatment facilities optimization of raw material ratios and the enhancement of production automation the * The total amount of hazardous waste generated was 1095.06 tons representing a year-on-year increase of 62.70%

Company further reduces its waste emissions. mainly due to changes in the Company ’ s production capacity and output. Of this total Tuozhan FIBER accounted for

455.09 tons and Inner Mongolia Guangwei accounted for 273.60 tons.

Case Study: Standardized Hazardous Waste Management Training to Enhance Compliance Awareness * In 2025 the Company achieved a 100% compliance rate and a 100% harmless disposal rate for hazardous waste

disposal;

In June 2025 the Company's general new materials division organized a special training session on the standardized * No incidents of hazardous waste loss leakage or illegal disposal occurred.management of hazardous waste. The training covered employees and key positions in multiple production and functional

departments. It adopted a combination of legal publicity case warnings practical process explanations and emergency plan

simulation discussions to clarify the core requirements and work processes of the hazardous waste management system.This training included a joint assessment of employees to ensure they fully grasped relevant regulations and the Company's Environmental Compliance Management

internal management systems regarding hazardous waste clearly understood the operational procedures for key processes

such as classification collection transportation and temporary storage and were proficient in the core procedures of the GW COMPOS has production bases located in Weihai Shandong Province and Baotou Inner Mongolia Autonomous Region.emergency response plan. This effectively improved the standardized management capabilities of employees in various * The Company is designated as an enterprise subject to mandatory cleaner production audits in the High-tech District of Weihai

positions laying a solid foundation for the Company's compliant disposal of hazardous waste throughout the entire process Shandong Province.and helping to reduce environmental risks. * Its subsidiary Advanced Energy Materials is designated both as an enterprise subject to mandatory cleaner production audits

and as a key entity for environmental risk control in the High-tech District of Weihai Shandong Province.* Its subsidiary Tuozhan FIBER is designated in the Lingang District of Weihai Shandong Province as a key pollutant-

discharging entity a key water environment entity a key soil pollution supervision entity a key entity for environmental risk

control and an enterprise subject to mandatory cleaner production audits.* Its subsidiary Inner Mongolia Guangwei is classified as a key atmospheric environment supervision entity in Baotou Inner

Mongolia Autonomous Region.These entities regularly engage third-party institutions to conduct cleaner production audits while key pollutant-discharging and

supervised entities perform environmental monitoring and publicly disclose data in accordance with relevant regulations. During

the reporting period no major environmental incidents occurred at GW COMPOS or its subsidiaries.GW COMPOS strictly complies with national laws and regulations including the Environmental Protection Law

of the People's Republic of China and adheres to the environmental management policy of "Environmental

Protection for All Compliance and Law Abidance Pollution Prevention Energy Conservation and Consumption

Reduction and Continuous Improvement."

The Company has established a standardized environmental management system and formulated specialized

internal policies such as the Environmental Protection Management System and Environmental Protection

Standardization Documents. By integrating environmental protection into the entire production and operation

process and regularly conducting compliance evaluations the Company ensures the effective and continuous

On-site Specialized Training on Standardized Waste Management Practices

operation of its environmental management system.

7374

EnvironmentalEnvironmental Risk Management Emergency Response Plan for Sudden Environmental Incidents

GW COMPOS has constructed a three-tiered emergency response system strengthened its emergency organization and response

mechanisms and enhanced emergency capacity building to solidify the defense line for ecological and environmental safety.Environmental risk assessment

* Three-Tiered Emergency Response System: By formulating the Emergency Response Plan for Sudden Environmental

GW COMPOS has established a normalized environmental risk assessment mechanism. In accordance with the Risk Classification

Incidents the Company has established a framework comprising "1 Comprehensive Emergency Plan + 1 On-site Disposal

Method for Emergency Environmental Incidents of Enterprises we conduct comprehensive risk assessments across three

Plan + 1 Special Emergency Plan for Hazardous Waste Disposal." This system clearly defines the emergency organization

dimensions: substances facilities and regional environment to clarify risk levels and key prevention and control priorities.early warning response and disposal procedures.* Emergency Organization and Response Mechanisms: An Emergency Rescue Command Center has been established with the

Environmental risk sources include hazardous substances used in production leakage from production facilities failures of

General Manager serving as the Commander-in-Chief. It oversees specialized groups including Emergency Rescue Cordon

environmental protection equipment and hazardous waste leaks. GW COMPOS determines its risk level for sudden environmental

and Evacuation Medical Aid Communications and Logistics Support with clearly defined responsibilities to ensure the

incidents through quantitative analysis of the ratio between hazardous substance quantities and their threshold quantities the level

rapid transmission of instructions. Emergency responses are classified into three levels based on the incident's scope and

of process control and the sensitivity of environmental receptors.severity with specific disposal steps outlined for hazardous chemical leaks.* Emergency Capacity Building: The Company maintains reserves of emergency supplies such as fire extinguishers and gas

masks with regular inspections and maintenance. A 24-hour emergency hotline ensures uninterrupted communication.Risk prevention and management measures Furthermore GW COMPOS requires at least one emergency drill annually to continuously enhance employees' response

capabilities.Adhering to the principle of "Prevention First" GW COMPOS has constructed a comprehensive risk prevention and control system

* Hazard Identification and Incentive Mechanism: The Company has established a mechanism for identifying environmental

across three dimensions—source process and management—to minimize the probability of environmental risks.incident hazards conducting both regular special inspections and daily routine checks. Additionally an internal reward

system for hazard identification has been implemented to encourage proactive risk reporting.Hazardous material Management and

storage Production process operational aspects

Staff strictly follow procedures

Chemicals are stored in The production workshop is

wear personal protective

categories the warehouse is equipped with fire

equipment implement a patrol

staffed with professional extinguishers fire hydrants

inspection system regularly

managers safety warning and first aid kits. Safety

investigate environmental hazards

signs are set up and valves pressure gauges and

and maintain records. During

emergency supplies are other facilities are regularly

production operating procedures During the reporting period the Company strictly

provided for each position. inspected. Explosion-proof

are strictly followed to prevent implemented relevant environmental protection

electrical facilities are used

leaks and spills. During laws and regulations and internal management

and safety warning signs are

maintenance pollutants are systems. No environmental emergencies occurred.set up for toxic substances

properly collected and cleaned to No administrative penalties rectification notices or

and equipment.prevent secondary pollution. environmental complaints from the ecological and

environmental authorities.Environmental risk prevention and management measures Internal Hazard Investigation Reward

Announcement

7576

EnvironmentalEnvironmental Protection Training Green Production

GW COMPOS adheres to the concept of green production and clean manufacturing and continuously deepens environmental

GW COMPOS integrates environmental protection training into its routine employee education. By establishing the Personnel governance from three aspects: process optimization efficient use of resources and reduction of pollutants at the source.Education and Training System the Company implements a three-tiered training framework (Company-level Workshop-level and

Team-level) that covers new hires current employees and internally transferred personnel. The training curriculum includes laws

regulations and standards for hazardous waste management fundamental knowledge internal management systems and operating

procedures the use of protective equipment and emergency response measures.Furthermore GW COMPOS utilizes diverse channels such as bulletin boards internal broadcasts and training manuals to Process optimization Resource utilization Pollutant reduction

disseminate information regarding the hazardous characteristics of waste and pollution prevention knowledge employing multiple

measures to continuously enhance employees' environmental awareness. The resin production process * General industrial solid waste * By optimizing raw material

uses closed mixing and generated during production ratios and enhancing the

grinding equipment to reduce such as waste packaging efficiency of environmental

During the reporting period GW COMPOS organized 10 environmental knowledge competitions and training sessions the fugitive emissions of materials (e.g. waste cartons protection facilities.reaching 1830 person-times. Additionally the Company conducted 9 environment-related emergency drills with a total particulate matter and VOCs ; paper tubes) and waste PE * Hazardous waste is managed

in the production of composite film is entirely handed over through classified collection

of 269 participants significantly enhancing employees' environmental awareness and response capabilities. materials the PE film is reused to waste recycling companies and source reduction then

multiple times before being for recovery and reuse. entrusted to qualified third-

disposed of as general * R&D wastewater following party agencies for disposal.industrial solid waste. pre-treatment is reused for The disposal rate reached

Green Office Practices workshop floor cleaning. 100% with no illegal

transfer of hazardous waste

occurring.GW COMPOS systematically advances its environmental management through three key pillars: energy conservation and

consumption reduction resource recycling and green procurement actively practicing the philosophy of sustainable development.Green production practices

010203

Energy conservation and

emission reduction measures Resource recycling Green procurement

During the reporting period the Company's total investment in environmental protection reached RMB 10.7 million.LED energy-saving lighting fixtures Office waste is collected through Prioritize the procurement

are adopted in office areas and classified recycling and of environmentally certified

unnecessary electrical appliances are recyclables such as waste paper products such as low-

turned off during non-working hours. and cartons are handed over to VOCs office supplies and

The Company promotes paperless waste recycling companies for biodegradable garbage bags

office work and prioritizes the disposal. to reduce the environmental

circulation of internal documents impact of office processes.through the OA system. For official

vehicles new energy vehicles are

selected as the priority with

reasonable route planning to reduce

fuel consumption and carbon

emissions.

77 Green office practices 78

EnvironmentalGreen Products Empowering Downstream Customers with Energy Conservation and

Carbon Reduction via Green Products

GW COMPOS integrates green product promotion into its core development strategy. Closely aligning with the national "Carbon Leveraging the lightweight advantages of carbon fiber materials GW COMPOS products have generated significant indirect

Peaking and Carbon Neutrality" goals the Company is building a green product matrix spanning wind power new energy vehicles emission reduction benefits at the downstream application end.hydrogen energy and other sectors. Guided by the principles of "Technology Empowerment Customer Collaboration and Full-chain

Carbon Reduction" the Company scales up its low-carbon product offerings to assist downstream industries in achieving energy Green Shipping

conservation and carbon reduction for their terminal products.Following the installation of the wing-sail propulsion system on a single Very Large Crude Carrier (VLCC) an average of

934 tons of fuel is saved annually reducing carbon emissions by 2970 tons. Over a 10-year period the cumulative carbon

Core Green Product System and Promotion Progress reduction for a single vessel reaches nearly 30000 tons saving over 100 million RMB in fuel costs and carbon taxes.Product

Category Product Features Promotion Progress Supply Chain Collaboration Wind Power Energy

Wind turbine carbon planks facilitate the upsizing and lightweighting of wind turbine blades and promote the long-term

replacement of fossil fuels with clean energy.In 2025 selected for the "Shandong

Manufacturing · Qilu Fine Products"

High modulus list. Through dual breakthroughs in Deeply integrated with global wind power Low-altitude & Aviation

Pultruded lightweight and materials and processing the Company giants to respond rapidly to market demands

carbon planks fatigue-resistant; achieved reductions in both blade accelerating the development of global wind

Composite materials for new energy vehicles and electric aircraft assist in reducing vehicle weight by more than 20% which

certified by DNV. weight and cost driving the global power blades.corresponds to a 10% increase in endurance mileage and a reduction in energy consumption per unit of transport turnover.wind power industry toward large-

scale and high-efficiency upgrades.Photovoltaics &

Construction

Applications span outdoor facilities building

GE21B high- High-transparency photovoltaic prepregs enhance the power generation efficiency of modules. Additionally carbon fiber

roofs mobile power supplies new energy RVs

transparency resin reinforcement plates for buildings serve as an alternative to traditional steel significantly reducing the embodied carbon

Successfully applied in mass and 3C electronics. By enhancing the power

system featuring emissions associated with the production of construction materials.Photovoltaic production for high-efficiency generation efficiency throughout the PV

light transmittance

Prepreg photovoltaic module frames and module's lifecycle and extending equipment

>90% and UV-

brackets. service life the Company maximizes the

resistant/anti-

comprehensive value and market

yellowing properties.competitiveness of PV applications. Future Plans and Objectives for Green Product Promotion

By optimizing composite material selection

Extreme lightweight Empowered the maiden flight of the

Low- and structural design the Company reduces * By 2030: Continuously deepening material applications and market presence across sectors including green shipping wind

high strength and "Jiu Tian" UAV and assisted the RX4E

Altitude/Aeros aircraft weight enabling longer endurance and power energy low-altitude and aviation as well as photovoltaics and construction effectively empowering downstream

high modulus; electric aircraft in obtaining its TC

pace lower energy consumption for electric aircraft industries to achieve significant indirect carbon emission reduction benefits.supporting electrified (Type Certificate); supplied key

Composites thereby driving the transition of aviation * By 2035: Driving a leapfrog breakthrough in cumulative carbon emission reductions across the entire industry chain utilizing

flight. materials for the Lanying R6000.energy structures from fuel to electricity. high-performance composite materials to empower low-carbon transformation and sustainable development in various sectors.

7980

EnvironmentalEcosystem and Biodiversity Conservation

GW COMPOS integrates biodiversity conservation into the entire lifecycle of its business development minimizing the

impact of production activities on ecosystems and promoting sustainable coexistence between the Company and the

natural environment.The Company strictly adheres to the Environmental Protection Law of the People's Republic of China and the Convention

on Biological Diversity (CBD). We have established internal control procedures such as the Environmental Factor

Identification and Assessment Control Procedure and leveraged our environmental management system to build a risk

assessment mechanism covering biodiversity ensuring our operations remain eco-friendly.None of GW COMPOS's operating sites are located within ecological protection red lines. Our production and operations

are concentrated within industrial parks avoiding core ecological protection areas and ecologically sensitive zones such as

forests wetlands water source protection areas and nature reserves. For processes that could potentially affect the

surrounding environment we implement pollution prevention facilities and optimize production layouts to prevent adverse

impacts on local ecosystems.Within our factory premises we prioritize greening initiatives; permeable outdoor surfaces account for at least 30% of the

total outdoor area. We prioritize planting resilient weather-resistant species to improve the site environment and provide

habitats for local flora and fauna.During the reporting period there were no instances of habitat destruction or negative impacts on biological species

caused by the production activities of GW COMPOS or its subsidiaries. The regional ecosystems remained stable

achieving a harmonious balance between industrial operations and ecological protection.Company's factory area

8182

EnvironmentalAddressing Climate

Change

n Climate change response management system

n Identification and Management of Climate Change Risks and

Opportunities

Against the backdrop of accelerated global climate governance and the deepening implementation of

"Carbon Peaking and Carbon Neutrality" goals addressing climate change has become a core issue

for the green transformation of the manufacturing industry. GW COMPOS as a leading enterprise in

the carbon fiber and composite materials field deeply understands its responsibility in the low-carbon

development of the industrial chain and consistently integrates climate change response into its

corporate strategic planning and daily operations. The Company actively researches and promotes

green and low-carbon products to help upstream and downstream industries save energy and reduce

carbon emissions. While reducing our own carbon emission intensity we proactively assume

corporate responsibility for addressing climate change and promote the green and low-carbon

transformation of the economy and society.Addressing Climate Change

Identification and Management of Climate Change

GW COMPOS sets the optimization of its energy structure reduction of carbon emission intensity and enhancement of environmental Risks and Opportunities

performance as its core objectives. Adhering to the strategic positioning of "Empowering the Composite Materials Industry with Low-

Carbon Solutions and Assisting Customers in Lifecycle Carbon Reduction" the Company deeply integrates climate change response with GW COMPOS prioritizes the precise identification of climate-related risks and opportunities which defines the core

its long-term development. This has culminated in a dual-drive model: "Decarbonization of Internal Operations + Product-enabled direction and implementation priorities for the Company’s greenhouse gas (GHG) emission management. This proactive

Decarbonization for Customers." approach not only solidifies the Company’s own climate resilience but also drives low-carbon upgrades for downstream

customers through carbon reduction across the entire industry chain. By amplifying the climate-response value of carbon

fiber materials at a societal level GW COMPOS is positioned to seize green development opportunities amidst the

Climate Change Response Management System industry’s low-carbon transition achieving a synergistic empowerment of climate risk management and sustainable value

creation.GW COMPOS has established a well-structured climate change response management system with clearly defined responsibilities providing a

solid organizational and institutional foundation for addressing climate change. Risk Risk Sub- Specific Risk

Category category Scenarios Risk Impacts Response Measures

The Company has established the Heavy Pollution Weather Emergency Response Leading Group headed by the General Manager to ensure

Reinforce facilities improve

the efficient execution of emergency measures during periods of heavy pollution. Under this leadership specialized subgroups — including

Impact of extreme weather disaster warning systems

Pollution Reduction & Rescue Equipment Maintenance Evacuation Drills and Inspection—operate with clearly defined mandates to ensure

events such as high optimize production and supply

rapid implementation of emission reduction and maintenance protocols.Acute Risk Extreme Weather temperatures heavy rain and chain layouts and emergency

strong winds on factory plans and stockpile flood

A permanent Heavy Pollution Weather Emergency Response Office has been set up within the EHS & Equipment Management Department to

production and logistics. prevention and heatstroke relief

liaise with government authorities and promptly communicate instructions regarding the activation and termination of early warnings.supplies.Additionally dedicated management units carry out routine monitoring facility maintenance and training related to climate change ensuring

Physical

that all response measures are effectively executed and yield tangible results.Risks

Rising demand for cooling in

Promote the application of

offices and factory areas due

Heavy Air Pollution Emergency Response renewable energy and establish

Leading Group Long-term Climate to global warming and Chronic Risk early warning mechanisms for

Pattern Changes potential yield decreases or

raw material inventory and

price fluctuations of certain

diversified sourcing.Pollution Reduction and Equipment Maintenance chemical raw materials.Rescue Team Evacuation Drill Group

Inspection and patrol team

Team

Management Structure of the Company's Heavy Air Pollution Emergency Response Leading Group

Climate Change Risks and Countermeasures

In addition GW COMPOS has formulated an emergency emission reduction plan for heavy pollution weather. Based on yellow orange and

red alert levels the Company implements specific production restrictions of 20% 30% and 40% respectively. By clearly defining emission

reduction measures and execution workflows for each alert level the Company has established a governance framework characterized by

"Unified Leadership Collaborative Division of Labor and Standardized Operations."

8586

Environmentalecific

Risk Risk Sub- Risk

Category category Scenario Risk Impacts Response Measures Climate Change Opportunity Identification and Management

s

The demand for low-carbon materials Green manufacturing and energy efficiency improvement

Carbon emission intensity of and products is growing

Proactively invest in the R&D of first-mover advantage

existing production processes may

Tightening low-carbon processes and Driven by the global goal of carbon neutrality the demand The company's continued investment in renewable energy

Policy & Legal fail to meet new standards

Environmental continuously upgrade energy- for high-performance carbon fiber and composite materials applications and energy conservation and carbon

Risk requiring increased investment in

Standards saving and carbon-reduction from low-carbon industries such as wind power and new reduction in production processes will make it easier to

environmental equipment and

modules for production equipment. energy vehicles continues to expand. The company can obtain green credits low-carbon certifications and policy

leading to higher compliance costs.leverage its technological advantages to expand its market subsidies while meeting the stringent requirements of

share in areas such as wind turbine blades and lightweight downstream customers for a low-carbon supply chain and

structural components. improving its order acquisition capabilities.Establish diversified raw material

Rising raw material prices procurement channels and sign

Raw Material squeeze profit margins; customers long-term price stability The business value of carbon Opportunities for technological

Market Risk management capabilities innovation and industrial upgrading

Price Fluctuations increasingly demand low-carbon agreements with suppliers to

material solutions from suppliers. mitigate the impact of price By building a comprehensive carbon accounting and The technological iterations driven by climate change

volatility. management system the company can participate in have provided direction for the company's R&D

innovative mechanisms such as green finance to transform

Transition Risks breakthroughs in areas such as carbon fiber preparation

emission reduction results into economic benefits; at the

Increase R&D investment in green and recycling. The results can form new intellectual

same time leading climate performance will enhance

technologies deepen industry- property rights and business growth points consolidating

Competitors adopting more investor confidence improve ESG rating and broaden

university-research cooperation the company's leading position in the industry.New Technology advanced technologies leading to financing channels.Technology Risk and accelerate the intelligent and

Iteration a decline in product

green upgrading of existing

competitiveness. Opportunities arising from climate change

production lines to maintain

technological leadership.During the reporting period GW COMPOS experienced no significant business or financial impact resulting from climate-related

Rising stakeholder concern risks. There were no related litigations nor were any compliance costs incurred due to climate-related incidents.Establish mechanisms for

regarding the Company's climate

environmental public opinion

performance; major

monitoring and response and In 2025 the Company’s total greenhouse gas (GHG) emissions amounted to 81551.05 tons of CO2 equivalent (tCO2e) . The

Reputational Risk Brand Image environmental non-compliance

regularly publish sustainability GHG emission intensity was 0.029 tCO e/ RMB ’ 000 of revenue. Representing a year-on-year decrease of 10.68%.incidents could lead to negative 2

reports to enhance communication

public opinion and damage Specifically Scope 1 emissions totaled 30959.06 tCO2e while Scope 2 emissions totaled 50594.99 tCO2e.with stakeholders.corporate reputation.Climate Change Risks and Countermeasures

8788

EnvironmentalQuality Manufacturing

Industry Benchmark

n Innovation-driven n Responsible Marketing

n Product and service safety and quality n Chemical safety management

n Customer-centric n Digitalization construction

GW COMPOS is committed to becoming a benchmark for high-quality development in the manufacturing industry with "innovation-

driven quality-oriented" as its core principles. In terms of innovation the Company focuses on the field of carbon fiber and composite

materials improving R&D management and incentive mechanisms increasing R&D investment deepening industry-university-research

cooperation focusing on tackling core technologies and transforming research results strengthening patent and standard layout

cultivating new productivity and enhancing core competitiveness. Regarding quality the Company has built a comprehensive quality

management system covering R&D production inspection and after-sales service strictly controlling key links improving traceability

and customer service mechanisms continuously improving product reliability meeting market demands with meticulous manufacturing

and establishing a high-quality brand image.Innovation-driven Intellectual Property Protection

GW COMPOS’ innovation and R&D strategy is positioned for “three highs” development—high performance high quality and GW COMPOS strictly complies with the requirements of the Patent Law of the People’s Republic of China the Interim

high-end applications. Based on the carbon fiber and composite materials industry the Company promotes independent control of Measures for the Administration of Special Funds for Patent Development in Shandong Province and other relevant

core technologies and builds collaborative innovation advantages across the entire industry chain. The Company possesses two regulations. Internally it has formulated the“ Intellectual Property Management System ” to strengthen its intellectual

national-level scientific research platforms and as a drafter of national carbon fiber standards has presided over the drafting of two property management.The Company ’ s R&D Center serves as the centralized department for intellectual property

national standards. management and assumes primary responsibility for such management. All business segments and departments

cooperate in carrying out intellectual property-related work while designated personnel from the R&D Center are

responsible for communicating inquiry comments and following up on responses during the intellectual property

application process.Two National-Level "Industry-University-

Two National Standards The Company implements standardized process management for intellectual property applications. Key procedures are

Research-Application" Research Platforms

subject to approval through the OA system ensuring that the entire intellectual property management process is

compliant and controllable.* National Industrial Design Center * Polyacrylonitrile-Based Carbon Fiber

* National Enterprise Technology Center * Carbon Fiber Prepreg

Initiation Initiated by Inventor

Level

Development of national-level scientific research platforms and national standards

Tiered Approval by Department Head / Supervising

Approval Leader

Based on its " 621" development strategy the Company has made carbon fiber R&D a core business segment establishing a full Levelrange of carbon fiber products and a product development pattern of “developing one generation producing one generation andReview by Competentreserving one generation.” It also works in synergy with sectors such as general new materials and precision machinery to build a Review Departments

full-chain innovation ecosystem spanning from basic materials to end products. Level

Coordinated

Execution by theMeanwhile the Company has built a full-chain carbon fiber R&D system characterized by “clear architecture platform support Execution Centralized Coordinated Execution by the R&D Centerinstitutional guarantees and incentive empowerment. ” Internally it has formulated full-process R&D management documents Level R&D Center Coordination Management

including the Core Technology and Key Technology Management System. Through incentive measures such as a special project File Management Department

reward mechanism and participation of R&D personnel in internal and external training the Company continues to stimulate

innovation vitality and drive industrial upgrading through breakthroughs in core technologies. Intellectual Property Management Structure

* During the reporting period the Company's total R&D investment was RMB 219516000 representing a year-on-year

As of the end of the reporting period the Company had 1094 patents including 88 invention patents; 174 new patents

increase of 27.10%.were added in 2025 including 29 new invention patents; the Company had 20 software copyrights including 6 new software

* As of the end of the reporting period the Company had a total of 70 R&D projects of which 31 were newly added in copyrights in 2025.

2025.R&D Personnel: 322 employees accounting for 14.23% of the total workforce. Expert consultants: 38

individuals.

9192

SocialTechnological Breakthroughs and Results Transformation General New Materials segment

The Company’s General New Materials segment has actively promoted the iterative upgrade of key matrix materials such as epoxy

resins and specialty resins. Multiple new materials have achieved industrial application and import substitution fully meeting the

GW COMPOS adheres to a diversified innovation strategy continuously tackling key core technologies in the industry and promoting application requirements of high-end sectors including aviation aerospace marine vessels and the low-altitude economy.the transformation of technical achievements into real productivity. Simultaneously the segment has continued to strengthen its independent R&D capabilities for high-end equipment completing

technical upgrades for key machinery such as filament winding equipment. Related hardware and software products have achieved

Guided by market demand and industrial trends the Company focused its 2025 efforts on upgrading high-end carbon fiber models and engineering application in key research institutes.On this basis the Company has simultaneously pushed to convert fiber performance R&D across the entire industry chain. Key layouts include core areas such as high-end carbon fiber thermoplastic prepregs composite into superior composite materials performance continuously reinforcing its technical achievement transformation and large-scale

products and automated equipment. Simultaneously the Company has established forward-looking layouts for the R&D of materials production capabilities. Various structural components and molded parts have completed verification and achieved mass production

and systems in emerging application scenarios such as humanoid robots the low-altitude economy and commercial aerospace and delivery effectively enhancing the application value of products in terminal scenarios.achieving breakthrough progress in several key technologies.During the reporting period the General New Materials segment developed 15 new materials that reached batch application with 5

T u o z h a n F I B E R additional materials passing original equipment manufacturer (OEM) reviews. The GE2401 medium-temperature epoxy resin filled

the Company's gap in resins with high Compression After Impact (CAI) performance laying a foundation for the future promotion of

high-performance medium-temperature materials.GC235 resin completed installation review becoming the only domestic composite

The Company's subsidiary Tuozhan FIBER has undertaken several major national-level research projects driven by application material product capable of replacing imports for application in high-temperature thermal insulation sleeves.demands focusing on sectors such as large aircraft commercial aerospace marine vessels and the low-altitude economy. It has

advanced specialized R&D for the simultaneous improvement of fibers and composite materials to effectively meet the customized

and specialized application needs of high-end users for carbon fiber.The subsidiary continues to drive the engineering preparation of G u a n g s h e n g T e c h n o l o g y

high-performance carbon fibers including T800 grade T1100 gr ade and T1200 grade. Specifically T800 grade and T1100 grade

have completed 1000-ton line verification and 100-ton mass production respectively ensuring a stable supply of products.It tackled key technologies for the interchangeability of large-scale airframe components and the wing co-curing molding process

Furthermore T1100 grade carbon fiber has passed application verification in high-end fields such as aerospace and has commenced

achieving mass production and delivery.small-batch supply.During the reporting period based on project planning and national strategic needs the Company is conducting

research on a new type of T1200 grade carbon fiber characterized by large diameter high strength high modulus and high elongation

balancing both fiber and composite performanceestablish a solid technical foundation for subsequent engineering R&D. Additionally G u a n g w e i P r e c i s e M a c h i n e r y

the "high-strength and high-modulus carbon fiber" developed by Tuozhan FIBER was awarded the title of "Single Champion" by the

Ministry of Industry and Information Technology during the reporting period.Its high-end filament winding equipment continues to undergo iterative upgrades and relevant software products have been implemented

in aerospace research institutes.G u a n g w e i A d v a n c e d E n e r g y M a t e r i a l s

Through continuous technological accumulation and industrialization breakthroughs the Company's

innovation capabilities have gained high recognition from the government and society winning

Its Type 200 carbon planks received certification from international brand customers and secured orders. Additionally composite numerous important honors including "National Manufacturing Individual Champion Enterprise"" Top

material products for new energy vehicles obtained orders from well-known customers. 500 Private Enterprises with Invention Patents Nationwide" "Top 50 Leading New Materials Enterprises

in Shandong Province " " SAMPE China Innovation Award in Materials " and "Shandong Province

C o m p o s i t e M a t e r i a l s T e c h n o l o g y Single Champion Enterprise."

As of the end of the reporting period its subsidiaries Composite Materials Technology Guangsheng

It broke through key technologies for the industrialization of 3C electronics carbon fiber composite structural components. Products Technology Advanced Energy Materials Tuozhan FIBER and Guangwei Precise Machinery and

such as aircraft wheel chocks and various types of composite missile bodies have gradually entered mass production. Beijing Lanke obtained High-Tech Enterprise certificates while its subsidiaries Guangwei Precise

Machinery and Tuozhan FIBER received the honor of being "Little Giant" enterprises specializing in

specialized and innovative technologies.

9394

SocialProduct Safety and Quality Quality Risk Management

GW COMPOS regards superior product safety and quality as its core competitiveness and strategic cornerstone. With the core

strategy of “building high-quality advantages across the entire industrial chain and upholding the bottom line of product safety” the

GW COMPOS has established documents such as the Quality Management System and the Risk and Opportunity Control Procedure

Company strictly follows national laws regulations and industry requirements such as the Product Quality Law of the People's

requiring each functional department to identify risks and opportunities covering the entire product lifecycle within its business scope.Republic of China. The Company's Quality Management Department serves as the overall management department for product

The Company uses a semi-quantitative method to assess risks calculating risk values based on "frequency of occurrence" and

safety and quality coordinating the construction of the quality system inspection and testing risk control and other work forming a

"severity" and classifying them into three levels: "low" "medium" and "high."

management pattern of "quality department coordination business department execution and full participation." Each subsidiary

In response to the identified risks GW COMPOS has developed specific prevention and control measures and integrated them into its

simultaneously establishes a corresponding quality control structure to ensure the effective implementation of the Company's quality

existing quality management processes:

standards.The Company has established a comprehensive quality management system covering the entire process. Core systems include 44 Risk Type Countermeasures

procedural documents such as the Management Manual and the Core Technology and Key Technology Management System.Specific systems have also been developed for specific aspects such as laboratory management resin formulation and technical Customer Strengthen standard communication with customers unify testing methods and actively explore the market.documentation to ensure product traceability and quality control. Furthermore the Company conducts regular internal audits Standards

management reviews and performance evaluations to create a closed-loop monitoring system for product safety and quality

management. It also continuously increases investment in quality control resources equipping itself with advanced testing equipment * Control System: Managed in accordance with the Production Management Process Control Procedure and

and intelligent testing systems. the Process Audit Control Procedure.* Technical Monitoring: Apply Statistical Process Control (SPC) technology to ensure the Process

Production

The Company holds a range of professional management system certifications including AS9100 IRIS and IATF 16949. Its Capability Index (CpK) is greater than 1.33.Process

products are widely used in high-precision and high-tech fields such as aerospace wind power rail transportation and automotive. * Abnormal Response: Immediately initiate a reaction plan when the process is unstable including

Fluctuations production stoppage 100% full inspection and development of corrective actions.* Process Audit: Conduct annual full-coverage audits and dynamically increase audit frequency when

quality fluctuations occur.Post- Managed through the Nonconforming Product Control Procedure and the Product Delivery Control Procedure.Delivery Any nonconformity discovered after delivery must initiate a review process obtain customer approval when

Quality necessary and take traceability recall or remedial measures.Issues

Risk Response Measures of GW COMPOS

The Company accurately identified industry development opportunities formulated and implemented targeted action plans and

ensured that these opportunities were transformed into growth momentum. In 2025 through full-chain quality control analysis and

daily quality meetings the Company focused on and improved representative quality issues in each segment providing a guarantee

for achieving the above objectives.GW COMPOS AS Civil Aerospace System Certificate GW COMPOS Automotive System Certificate

No major quality issues occurred throughout the year and the external audit pass rate for all management systems was 100%.

9596

SocialCase Study: Advanced Energy Materials Develops Automated Non-Destructive Testing System for Carbon Planks

Workforce Competency Development

Strengthening Quality Defenses and Achieving "Zero Defect Complaints"

The company and its subsidiaries have established a multi-tiered targeted quality management training system. Each entity

As of the end of the reporting period the Company's subsidiary Advanced Energy Materials had deployed five conducts specialized training based on its specific business characteristics ensuring that training covers all links across the entire

automated non-destructive testing (NDT) devices for carbon planks which were placed in five workshops and were industry chain.capable of fully covering the NDT scanning tasks for existing carbon beam models in the workshops. After the devices

were put into use they could effectively handle alarms for defects detected during the rewinding process efficiently

implement real-time online inspection to assess product status and exercise effective control to prevent the outflow of non-

conforming products. Case Study: The Company conducts specialized quality training to continuously enhance its quality management level

In 2025 the Company organized a comprehensive quality training program for top management and all personnel with an

impact on product and service quality. The training covered basic quality concepts the organizational environment quality

management principles leadership planning and support. A total of 538 people participated in the training ， effectivelystrengthening the quality theory foundation of all employees enhancing their awareness of quality responsibility and

compliance and providing strong support for the continuous improvement of product and service quality as well as for

consolidating the foundation for high-quality development.Automated Non-destructive Testing System for Carbon Planks

Quality Activities

On-site quality training session

Intelligent Support

The Company has built a smart workshop featuring "automated material distribution streamlined packaging and processing

online information identification and intelligent system scheduling." By leveraging autonomous mobile robots (AMRs)

automated packaging and labeling equipment and a robotic control system (RCS) scheduling platform the company has During the reporting period there were 0 product recalls.established an integrated flexible and schedulable intelligent production logistics system along with a full-process digital

traceability system. These advancements lay the hardware and data foundation for the company's transition toward "Industry 4.0".To further ensure the safety and quality of products throughout their full life cycle the Company has established quantitative

Upon completion of the Company's smart workshop renovation project comprehensive packaging material costs are expected to

decrease by 10% – 15% labor costs associated with material handling loading/unloading and repetitive packaging tasks are performance targets that include first-time-through rates delivery punctuality customer satisfaction index and risk management

projected to be reduced by over 50% 24-hour continuous operation will be achieved overall logistics efficiency is anticipated to effectiveness. Through systematic data monitoring and analysis it drives the continuous improvement of product safety and

increase by 40%–60% and product quality and traceability will be comprehensively enhanced. quality.Customer-centric

GW COMPOS adheres to the customer-first customer service philosophy and has systematically built a comprehensive customer

Process Optimization relationship management system that includes a professional service system closed-loop complaint management and routine

satisfaction tracking. Through institutionalized service guarantees source-based quality control and a routine communication and

Improve the "measure formulation – verification and review" loop and establish a "Quality Knowledge Base" to prevent

feedback mechanism the Company is committed to providing customers with reliable products and high-quality services

recurrence of issues.continuously improving customer experience and consolidating and deepening long-term mutual trust with customers.

9798

SocialCustomer Service All customer feedback information is immediately entered into the Quality Management Department for

processing. The Company maintains a standardized complaint log and tracks and manages complaints. Once

Processing

a quality issue arises a closed-loop process of "initiation-analysis-zeroing" is initiated with a designated

GW COMPOS is guided by customer needs fulfillment and value creation. The sales center serves as a unified sales window Procedure person in charge coordinating and following up to ensure that measures are implemented effectively

responsible for the sales and after-sales service of products such as carbon fiber prepreg composite materials and machinery. Based

on a flat management structure the Company has established a three-tiered rapid response mechanism: "Sales Personnel - Department

Heads - Company Management." Key matters can be reported directly to the Sales General Manager (Deputy General Manager ) and

the General Manager ensuring efficient communication and execution of service instructions.Supervision The relevant supervision work is coordinated by the Company's audit department which receives feedback

The Company's customer service adopts a full-process service management mechanism covering pre-sales sales and after-sales

Mechanism

customer service. through channels such as the Company-level complaint mailbox forming a closed-loop management system

Pre-sales Coordination In-sales Management & Control Post-sales Guarantee

Customer Satisfaction Tracking and Optimization

Precise Requirement Transparent & Efficient Closed-loop Service

Matching Fulfillment Optimization

GW COMPOS focuses on high-end customers through a standardized customer satisfaction survey mechanism. The statistical method

* Form a cross-departmental * Implement the "Same-day * 24/7 on-call system for

of returning stamped confirmations ensures the authenticity and validity of the results. The survey is conducted every six months to

evaluation team (Production Planning & Dispatch" sales/business personnel

form a normalized tracking and evaluation mechanism.Technology Quality Finance mechanism * Rapid response to customer

etc.) * Real-time production tracking inquiries and issues The Company compiles customer satisfaction survey results into a "Special Customer Satisfaction Analysis Report" systematically

* Comprehensive evaluation: and dynamic synchronization * Establish customer service sorting out potential needs and optimization suggestions from customer feedback. This information is incorporated into product

Technical requirements + with customers archives and conduct regular development service process optimization and capability enhancement as important bases constructing a closed-loop management

Quality standards + Delivery * Establish customized dedicated follow-ups to create a system of "survey-analysis-improvement-enhancement" to drive continuous iteration and upgrading of customer service quality.timeline + Payment terms communication channels for "Requirement - Execution -

* Output service solutions to precise implementation Feedback - Optimization" closed In 2025 12 customer service training sessions were organized with a 100% pass rate.ensure alignment loop

During the reporting period there were 0 customer complaints 0 non-compliance reports (NCRs) from overseas customers

and no product recalls.Customer satisfaction reached 98.26% by 2025.Full-process Service Management Mechanism

Customer Information Security and Rights Protection

In addition the Company has established a regular training system ensuring training effectiveness through diversified assessment

methods such as examinations and on-site questioning. In 2025 the Company and its subsidiaries conducted a total of 12 customer

service-related training sessions covering key areas such as the application of carbon fiber composite materials precision plate GW COMPOS places great importance on customer information and privacy protection and has established a comprehensive

processes contract review and quality management continuously improving the professional skills and service awareness of business information security management system. By setting up dedicated customer information positions the Company implements unified

personnel. code management for customer information. Customer codes are used to replace specific information in all business processes

including contract review production planning product manufacturing warehousing and logistics strictly controlling the scope of

Regarding customer complaint management GW COMPOS has established and improved a comprehensive customer complaint customer information access and eliminating the risk of information leakage through process design.control mechanism clarifying standardized processes for complaint reception registration investigation processing feedback and

review. "Zero customer complaints" has been set as a long-term quality goal and incorporated into the core performance indicators of During the reporting period the Company did not experience any incidents of customer information leakage or information

the sales center. Through a flat management structure and rapid response mechanism potential service risks are anticipated in advance security-related disputes demonstrating significant effectiveness in protecting customer rights.customer concerns are addressed promptly and complaints are prevented from occurring at the source.

99100

SocialResponsible Marketing Chemical Safety Management

GW COMPOS adheres to the marketing philosophy of "integrity and compliance value co-creation and transparency" deeply GW COMPOS emphasizes the principles of “ source prevention and full-process control ” and has established a chemical safety

integrating sustainable development requirements into the entire marketing process ， improving its compliance system and management system featuring full-process coverage all-factor control and company-wide participation. Based on relevant laws andstrengthening execution GW COMPOS achieves the coordinated enhancement of commercial value and social responsibility. regulations such as the Regulations on the Safety Management of Hazardous Chemicals and the Law of the People ’ s Republic of

China on the Prevention and Control of Occupational Diseases and in accordance with the Strategic Approach to International

The Company strictly adheres to relevant national laws and regulations such as the Advertising Law of the People's Republic of China Chemicals Management the Company has formulated more than ten chemical safety management policies and systems including the

and the Anti-Unfair Competition Law of the People's Republic of China conducting marketing activities with legality and compliance “ Hazardous Chemicals Management System ” and the “ Safety Management Standards for Acetone and Alcohol. ” These measures

as the bottom line ensuring that marketing activities comply with legal norms and industry standards. The Company has formulated enable standardized control throughout the full process and entire life cycle of chemicals including procurement warehousing

relevant measures such as the Regulations on Customer Classification ensuring that different types of customers receive fair and high- storage use and waste disposal.quality service resources by standardizing customer classification management.The Company has established a “dual prevention system” for the full life cycle of chemicals integrating graded safety risk control

with hazard identification and remediation. This strengthens coordinated leadership over the full-process management of hazardous

establish a contract compliance mechanism. Before signing a contract the Company organizes chemicals at the decision-making level and effectively promotes the coordinated implementation of graded risk control hazard

In contract multiple departments to conduct a comprehensive assessment of product technology quality identification and remediation and emergency management.management delivery schedule payment terms and other relevant matters. The specific contents become

effective only after review by lawyers the Intellectual Property Office and the audit The Safety and Environmental Equipment Department is the department serves as the centralized department responsible for the

department thereby ensuring that marketing contracts are lawful and compliant. relevant work and is staffed with full-time personnel holding Registered Safety Engineer Certificates and Safety Training

Qualification Certificates to coordinate chemical safety management. Relying on comprehensive and full-factor safety assurance

measures we will uphold the bottom line of chemical safety and protect the health of employees and the stable operation of the

During the adheres to the principle of authenticity and truthfully introduces to customers such information enterprise.as product features performance indicators delivery schedules and pricing structure. In

marketing

addition the Company’s Sales Center regularly organizes training for business personnel to Dual Prevention System for Graded Safety Risk Control and Hazard Identification

process

continuously strengthen the sales team’s awareness of responsible marketing. and Remediation

Deputy Group Leader / Deputy Director: General Manager

Director / Group Leader: Chairman of the Board

Chief Safety Officer and other senior executivesIn 2025 there were 0 violations involving product and service information and labeling; there were 0 illegal or irregular

marketing incidents

Safe ty Safe ty Safe ty

Produc t ion Produc t ion S tandard iza t ion

Commit tee Commit tee Leading Group

Dual Prevention System for Graded Safety Risk Control and Hazard Identification and

Remediation

101102

SocialI n d i c a t o r U n i t O b j e c t i v e s P r o g r e s s

01 Full lifecycle compliance management b y 2 0 2 5

Strictly adhere to national and local laws and regulations related to chemical safety establish a standardized management

Chemical safety compliance rate % 100 Completed

system clarify operational procedures and responsibility boundaries for each stage and ensure that chemical

management is legal and compliant throughout the entire process.Coverage of special management system for

key chemicals % 100 Completed

02 Risk classification and precise prevention and control

"risk identification - assessment - control - hazard management" has been established to implement special Chemical safety training coverage % 100 Completed

management of key chemicals such as acetone and alcohol and differentiated prevention and control

measures have been adopted for different risk levels to reduce safety risks from the source. Chemical safety facility integrity rate % ≥98 Completed

03 Upgrade of facilities and technical support Frequency of risk identification and hazard

investigation Times/Year ≥4 Completed

Equip facilities with explosion-proof storage facilities ventilation and dust removal systems emergency rescue

equipment and other safety hardware; promote safe and efficient chemical handling technologies and tools; and improve

Frequency of emergency response drills Times/Year ≥1 Completed

the level of inherent safety.Chemical safety accident incidence % 0 Completed

04 Comprehensive Improvement of Employees' Capabilities

Establish a hierarchical and classified chemical safety training system strengthen employees' safety awareness and Hazardous waste standardized disposal rate % 100 Completed

operational skills ensure that personnel in key positions hold valid certificates to take up their posts and form a cultural

atmosphere where "everyone understands safety and everything emphasizes safety."

Chemical Safety Control Objectives and 2025 Completion Status

05 Emergency Response and Efficient Handling

Develop specific emergency response plans and conduct regular drills improve emergency material reserves and

SHORT-TERM GOALS（THE NEXT 1-2 YEARS） MEDIUM AND LONG-TERM GOALS（THE NEXT 3-5 YEARS）

response procedures enhance the ability to quickly handle emergencies such as chemical leaks and fires and minimize

accident losses.* Consolidate the achievements of full life-cycle * Build an intelligent chemical safety management system to achieve

compliance management; the incidence of chemical dynamic risk monitoring and early warning

Key Strategic Initiatives for Chemical Safety safety violations is 0 * To establish a replicable and scalable chemical safety management

* The upgrade of safety facilities for key chemicals has model becoming a benchmark for the industry

been completed at a 100% completion rate resulting in * Breakthroughs have been achieved in the innovation and application of

During the reporting period GW COMPOS and its subsidiaries were not subject to administrative penalties by emergency management

a significant improvement in the level of intrinsic safety chemical safety-related technologies improving risk prevention and

departments or environmental protection departments and no production safety accidents or hazardous chemical safety accidents occurred. * The pass rate for employee chemical safety knowledge control efficiency by more than 30%

The Company and its subsidiaries' chemical safety management indicators and future targets are as follows:

assessment is ≥ 98% and emergency response * We will maintain a zero-accident record for chemical safety incidents

capabilities fully meet the standards and achieve coordinated development of safety and efficiency

103104

SocialDigitalization and Intelligentization Construction

GW COMPOS has established an intelligent end-to-end operating system covering R&D procurement production management

and services and is committed to advancing the transformation toward lean digitalized management and lean intelligent Production Execution and Monitoring System

manufacturing. As of the end of the reporting period the Company had obtained the Assessment Certificate for the Integration of Through the deep integration of Manufacturing Execution System ( MES ) and Enterprise Resource Planning System ( ERP ) real-

Informatization and Industrialization Management System. Its subsidiary Tuozhan Fiber was recognized as a Shandong Province time monitoring precise traceability and remote management of equipment status of the production process are achieved

Intelligent Manufacturing Pilot Demonstration Project and a Shandong Province Digital Economy “ Morning Star Factory ”

among other honors. The Company’s achievements in digital and intelligent development have received high recognition from

both the industry and regulatory authorities.Construction of a Digital and Intelligent warehousing and logistics system

Intelligent Management System By applying a smart warehouse management system ( WMS ) and automated guided vehicle ( AGV ) the automated storage retrieval

handling and distribution of raw materials semi-finished products and finished products have been achieved significantly improving

the efficiency and accuracy of warehousing operations

GW COMPOS has established an integrated and intelligent internal management system to continuously improve the Company's digital

and intelligent operational capabilities. The core architecture of this system is as follows:

Integrated Operation and Management Platform

We have created "one center and three platforms" (namely the carbon fiber prepreg management and control center the production

supervision platform the operation management platform and the data mining and analysis platform) which enables centralized

Intelligent Manufacturing Management Platform collection analysis and intelligent decision support of production data operation data and market data

An intelligent production system centered on an "order-driven intelligent collaborative operation manufacturing scenario" has

been constructed. This system integrates sales order management production order management and intelligent production

scheduling and dispatching system realizing full-process automation and visualization from customer demand to production

delivery

Collaborative office and supply chain systems

OA system and a digital procurement (NC) system were deployed. The OA system enabled the online and standardized processing of

processes such as contract and price approval; the NC procurement system has real-time inventory monitoring and early warning

functions and is integrated with the production system to support the formulation of rolling procurement plans based on sales

forecasts thereby improving the responsiveness and resilience of the supply chain

GW COMPOS Internal Management System

105106

SocialGW COMPOS and its subsidiaries have established an integrated digital and intelligent management system forming a development

model of two-way empowerment between top-level design and grassroots practice. This has enabled each subsidiary to deepen the 01 Significant Optimization of 02 Sustained Stability of 03 Effective Control of Operational Efficiency Product Quality Compliance Risks

application of digital and intelligent technologies based on its business characteristics. Among them Tuozhan Fiber has taken the lead in

achieving digital and intelligent upgrades across management production and safety and its benchmark practices have provided an

important model for the Group’s overall transformation as detailed below: * Process standardization + * Real-time production monitoring * Standardized and traceable

automation to reduce manual + precise regulation process management and quality

Centered on ERP OA and ECM systems intervention * Improved precision of key control

it achieves the standardization and * System synergy across ERP OA

Achieve Fine- * Multi-system synergy process parameters to minimize * Data security protection to

automation of management processes grained and ECM (ERP/OA/DCS/MES) quality fluctuations prevent information leakage

Management such as procurement finance and Management & * Process standardization +

Control * Cost reduction and efficiency * Data traceability and analysis for * Transparent operational Digitalization documentation significantly enhancing automated approval gains; improved resource rapid optimization of potential compliance to strengthen the

cross-departmental synergy and providing * Precise resource allocation + data- allocation and scheduling issues foundation for development

precise data support for resource backed decision making efficiency

allocation and strategic decision-making

Through the deep integration of DCS and

MES systems it enables real-time

* DCS + MES system integration

monitoring and precise regulation of the Build a Benchmark for * Real-time production monitoring Results of the digital and intelligent transformation

Intelligent entire carbon fiber production process Smart

Manufacturing + precise parameter controlsignificantly improving the control Manufacturing

* Looking ahead the Company will continue to deepen its digital transformation strategy further increasing investment in areas such as End-to-end digital management

precision of key process parameters to

system of Tuozhan FIBER artificial intelligence big data analytics and the industrial internet and promoting the upgrading of digital systems towards

guarantee product quality stability and intelligence integration and flexibility. Key initiatives will include advancing the construction of digital twins for the entire

production efficiency production process optimizing data analysis models and promoting cross-industry chain data collaboration. The Company will also

Relying on the IP-Guard encryption continuously strengthen its data security capabilities using digitalization to empower technological innovation production upgrades

system it builds a full-lifecycle data * IP-Guard intranet behavior and management optimization thereby enhancing its core competitiveness and injecting lasting momentum into achieving high-quality

security barrier achieving encrypted Strengthen Full- management system development.lifecycle

storage of core business data full-process Protection * Encrypted data storage + full-Data Security

traceability of operational behaviors and Barriers process operation auditing

early warnings for anomalies to * Three-in-one defense: "Protection

comprehensively safeguard corporate data Monitoring and Auditing" * During the reporting period no major data security incidents occurred and the core data security protection coverage rate

assets

was 100%. The Company invested RMB 4.02 million in digitalization construction projects which were used for the

Expanding the End-to-End Digital Management & Control System for Fiber construction of intelligent warehousing production management systems and internal control management systems.After the implementation of digitalization construction projects the Company's cross-departmental collaboration

efficiency improved and the average time of approval processes was effectively shortened.Achievements of Digital

Transformation * According to a third-party assessment the Company's intelligent manufacturing capability maturity has reached Level 3

(integrated optimization level) surpassing nearly 95% of companies in the same industry nationwide.We focus on three core dimensions: "efficiency quality and compliance" and through end-to-end digital empowerment and system

collaboration we achieve simultaneous improvement in operational efficiency product quality and compliance levels.

107108

SocialPracticing the People-

Oriented Philosophy

n Compliant Employment n Occupationa l health and safety

n Employee rights protection n Empowering employee development

GW COMPOS deeply values a people-oriented management culture firmly believing that only by prioritizing people can the Company

solidify its foundation. The Company has established and continuously improves a comprehensive human resource management system

covering recruitment compensation and benefits training and development occupational health and safety and rights protection. This system

effectively safeguards the legitimate rights and interests of every employee promotes their all-round development and builds core human

resources for the Company's high-quality development. While strengthening its talent base the Company also promotes mutually beneficial

growth with society.Compliant Employment

Employee structure and stability

GW COMPOS upholds the core value of “people-oriented” and regards employees as the core asset for its sustainable development. It The Company has established a workforce system with a stable scale and a diverse structure forming a “foundational support +has established a full-cycle human resources management system covering recruitment compensation and benefits occupational professional advancement ” workforce layout centered on young and middle-aged employees and supported by a well-balanced

health and safety rights and interests protection and employee development effectively safeguarding employees’ legitimate rights educational profile. At the same time the Company emphasizes inclusive employment by providing job opportunities for employees

and interests and consolidating strong human capital support for high-quality development. with disabilities and military veterans.By age By education level

Standardize employment practices

191549

528327

The Company strictly complies with laws and regulations such as the Labor Law of the People’s Republic of China and the Labor

Contract Law of the People’s Republic of China as well as relevant initiatives of the International Labour Organization. Guided by the

principles of “openness equality competition and merit-based selection”the Company ensures that the entire employment process is

compliant and transparent.

1321561

Institutional safeguards and employment standards

Improve the system

01 Formulate special systems such as the Employee Relations Management System Recruitment and Resignation Management 1544

System and Labor and Human Rights Policy to clarify the management requirements for the entire process of recruitment

hiring contract signing and resignation and eliminate illegal practices such as child labor and forced labor. aged≤30 30＜aged＜50 aged≥50 Phd Master Undergraduate Associate Other

02 Standardize contract management:

All employees sign labor contracts in accordance with the law within 30 days of onboarding with a labor contract signing

rate of 100%.Fair recruitment mechanism In 2025，number of employees: 2263

03 The employment needs are subject to multi-level approval. The recruitment process distinguishes between industrial workers

and administrative and technical personnel. Both go through standardized procedures such as interviews approvals and proportion of disabled persons: 3.54%；proportion of veterans: 2.52%

hiring. A probationary period includes a formal evaluation process to ensure a good match between people and positions.Prohibition of forced labor and child labor

04

The Company strictly abides by laws and regulations such as the Provisions on the Prohibition of Using Child Labor and has

an internal Labor and Human Rights Policy. It conducts rigorous screening of applicants and strictly prohibits the recruitment

and use of children under the age of 18. All Company management systems resolutely oppose any form of forced or coerced GW COMPOS is committed to creating a work environment of equality respect diversity and inclusion for female employees with a

labor. focus on institutional safeguards rights and interests protection and development empowerment.In 2025 women accounted for

26.90% of the total workforce，female representation stood at 26.30% in the management track and 22.40% in the professional track.

During the reporting period the Company's labor contract signing rate was 100%; the number of cases involving child During the reporting period the company maintained a stable workforce with the local hiring rate remaining at a high level of 78%.labor was 0; and the number of cases involving forced labor was 0. While contributing to regional employment the Company further enhanced workforce stability and team cohesion thereby

strengthening the human resources foundation for its long-term development.

111112

SocialA comprehensive welfare system fosters care

Indicator Unit 2025-year

New employees person 206 The Company has established a comprehensive benefits system that goes beyond statutory requirements integrating employee care into

daily management and continuously enhancing employees’ sense of well-being and belonging.Local employment rate % 78.00

Total employee turnover rate % 5.90

Statutory extended Traditional festival

benefits benefits Special care and welfare Employee Care Initiatives

Employee turnover at GW COMPOS in 2025

* Seniority pay * Distribute cash or in-kind * Birthday cake voucher * Visit and comfort sick

* Professional title / skill benefits during festivals * We provide female employees and provide

Safeguarding welfare and ensuring certificate subsidies such as Spring employees with benefits material and emotional

compliant payments * Heatstroke prevention and FestivalDragon Boat and paid holidays on support when employees or

cooling expenses Festivaland Mid-Autumn International Women's Day. their families encounter

GW COMPOS believes that competitive compensation and comprehensive benefits are crucial sources of employee satisfaction * Overseas allowance

Festival. * On International Day of major difficulties.happiness and security. Upholding the principles of fairness incentive orientation and basic protection the Company has established Persons with Disabilities

in accordance with the Compensation and Benefits Management System a compensation system covering all job categories and and the International Day

balancing short-term incentives with long-term development. It has also built a multidimensional and people-oriented benefits of Persons with Disabilities

framework to stimulate employees ’ motivation for value creation and promote the coordinated development of employees and the special gifts or activities are

Company. provided for employees

with special needs.Compensation and performance are compliant and transparent

The Company has established a hierarchical categorized transparent and scientifically designed compensation system that ensures

alignment between job responsibilities and remuneration as well as linkage between performance and pay. Executive compensation is GW COMPOS Welfare System

linked to annual targets while all employees are covered by a standardized grading system to safeguard internal fairness. In accordance

with the Performance Evaluation Management System the Company has strengthened the linkage between performance and

compensation and has also established an“Incentive Management Assessment”mechanism to reward special contributions.Female employees are entitled to 158 days of maternity leave while male employees are entitled to 15

Compliant and transparent salary payment More favourable days of paternity leave which is extended to 25 days in Baotou. Clear payroll calculation standards are

than the statutory in place for marriage leave bereavement leave sick leave and work-related injury leave ensuring that

leave scheme employees receive financial support during special periods

Clear salary structure Payment is compliant (with explicit details of withholding and payment).Provide annual living gifts to employees with disabilities on the National Day for Helping the Disabled

Various

Job Performance allowances Personal Social Housing In terms of care and the International Day of Persons with Disabilities as well as free accommodation meals and Basic salary subsidies -based pay and income insurance provident household appliances. It also implements a flexible working system for pregnant employees and new

subsidies tax premiums fund

for special groups

mothers

GW COMPOS' salary and payment system

113114

SocialCase Study: The Company fulfills its responsibility to help people with disabilities and creates an equal diverse A comprehensive subsidy system

and inclusive employment environment.The Company provides employees with a comprehensive and considerate subsidy support system. These various subsidies collectively

In May 2025 GW COMPOS held a ceremony for the distribution of support supplies for employees with disabilities contribute to the Company's people-oriented culture that focuses on employee well-being and growth.during which the Chairman of the Labor Union extended sincere greetings and expressed gratitude to disabled employees.Based on the physical conditions and actual needs of employees with disabilities the Company provides diverse job

opportunities fair compensation and promotion channels while also offering free accommodation and meals accessible

facilities skills training and psychological care. Through these measures GW COMPOS has established a caring support Living and working environment allowance Growth incentive subsidies

system for growth and created a warmer and more inclusive environment for employees with disabilities.* Heatstroke prevention and cooling expenses * Seniority pay (increases with length of service)

* Regional subsidies for working in remote factory areas * Professional title / skill certificate subsidies

* Night shift allowance

GW COMPOS Subsidy System

During the reporting period the Company's social insurance coverage rate reached 100%; the cumulative amount of work-

Group photo at the GW COMPOS' event to support and assist people with disabilities. related injury compensation was RMB 56735 a decrease of more than 50% year-on-year; and RMB 851886.74 of

government living allowances were applied for for university graduate employees.In addition to further enhance team cohesion and enrich employees' lives the Company regularly organizes team-building activities

such as basketball games factory anniversary celebrations and annual meetings to create a harmonious working atmosphere and Protection of Employee Rights

enhance employees' sense of happiness and belonging.GW COMPOS understands that a sound system is the fundamental guarantee for the protection of employees' rights. The Company has

formulated and refined specialized management policies and systems including the Employee Relations Management System and the

Labor and Human Rights Policy thereby building a multidimensional and standardized framework that provides solid institutional

support for the protection of employees’ rights and interests.In terms of employee relations management GW COMPOS has established standardized procedures for the renewal and termination

of labor contracts as well as for the negotiation of contract terms. The Company has also put in place a three-tier progressive grievance

mechanism—consisting of the direct supervisor department head and supervising vice general manager—to resolve conflicts. At the

same time GW COMPOS has built a communication network that combines formal and informal channels including the General

Manager ’ s mailbox and dedicated reporting hotlines with both named and anonymous options. All feedback is handled with strict

confidentiality and through closed-loop management.Scene of Women's Day activities Scene of a basketball game

115116

SocialThe Labor and Human Rights Policy defines six core policy directions providing comprehensive protection for employee Occupational Health and Safety

rights and interests.GW COMPOS adheres to the principle of "safety first prevention foremost and comprehensive management" and has established a

systematic and standardized occupational health and safety management system to comprehensively protect the life safety and physical

Labor and Human Rights Policy health of its employees.Employee Health and Safety Working Conditions Labor Relations Construction of Occupational Health and Safety

Management System

The Company strictly abides by the Law of the People's Republic of China on Work Safety the Law of the People's Republic of

Career Management Child Labor and Forced Diversity Equality and China on the Prevention and Control of Occupational Diseases and other relevant laws and regulations as well as the Regulations of Labor Inclusion

Shandong Province on Work Safety and other relevant requirements and has established a clear occupational health and safety

governance structure and strategic management system.Management System Construction

The Administrative Management Department is responsible for organizing and coordinating policy drafting while relevant

functional departments are responsible for implementation. The Board of Directors and the General Manager are responsible The Company has established an occupational health and safety management system covering the entire business chain and all

for oversight and supervision forming a working framework with clear responsibilities and coordinated advancement. In functional departments ensuring that all work is governed by clear rules and procedures. Supported by a series of policies and systems

addition GW COMPOS has established an annual policy review and revision mechanism to ensure the timeliness and including the Safety Risk Assessment Management System the Occupational Disease Prevention and Control Responsibility System

applicability of its policies. the Hazard Identification and Remediation System and the Work Safety Management Systemthe Company ensures that all

management activities are carried out in a well-regulated and compliant manner.Organization and Responsibility

The Company has established a Safety Production Committee a Fire Safety Committee and an Occupational Health Committee

* During the reporting period a total of 3 employee satisfaction surveys were conducted; a total of 1650 which are directly led by the chairman or general manager and cover key areas such as risk control hazard investigation emergency

employees participated in the surveys; and the employee satisfaction rate was 99.07%. response and occupational disease prevention to ensure the effective operation of the occupational health and safety management

system.* During the reporting period the Company had 0 incidents of workplace discrimination bullying or harassment The Company has designated the Safety and Environmental Equipment Department as the responsible department for occupational

that infringed upon employee rights;1 labor dispute occurred a decrease of 66.67% year-on-year with a total health and safety management and has assigned dedicated management personnel to oversee coordinate and implement daily

operations. A three-tiered management responsibility system — Company-workshop-team — has been established decomposing

compensation amount of RMB 13600. There were no strikes or work stoppages.occupational health and safety responsibilities layer by layer to each department and position forming a management structure where

all employees participate and are responsible.

117118

SocialIn 2025 the coverage rate of occupational health check-ups reached 100%.Chairman / General Manager And the coverage rate of employee check-ups was 92.40%.The Company actively promotes the construction of a healthy enterprise and many employees have won awards in the provincial

Safety Production Committee Fire Safety Committee Occupational Health Committee and municipal "Occupational Health Expert" selection. The Company itself has also been awarded the title of "Weihai HealthyEnterprise” and continues to deepen its practice in occupational health promotion.Security Director Director Director

Minister of Safety and

Environmental Equipment Deputy Director Deputy Director

Department

Safety and Environmental

Equipment Department Member Deputy Director

Members

Subsidiary

Information on the Company's Occupational Health and Safety Management Committee The Company and its five subsidiaries have obtained ISO 45001 Occupational Health and

Safety Management System certification.Occupational Health Protection Safety Production Guarantee

Hazard control

The Company regularly commissions qualified third-party organizations to conduct occupational hazard factor testing in the

GW COMPOS has built a safety production guarantee network covering the entire process and all elements. Through the working

workplace. Comprehensive testing was conducted on chemical hazards such as total dust carbon monoxide and nitrogen oxides as

mechanism of safety risk classification and control and hidden danger investigation and management dual prevention system it

well as physical factors such as ultraviolet radiation and power frequency electric fields in the Company's workplace. According to

achieves advanced control of safety risks. The Company has formulated a series of safety production management systems such as

the test results all factors meet national occupational health standards.Safety Production Responsibility System Emergency Plan for Production Safety Accidents Management System for Production

Safety Accidents or Major Events and Emergency Rescue Management System.Health Monitoring

The Company strictly implements pre-employment on-the-job and post-employment occupational health examinations provides

employees with protective equipment such as safety shoes safety helmets and gas masks supervises their proper use and establishes

occupational health records for employees.

119120

SocialSafety Facility Construction

The "three simultaneous" system is strictly implemented during production project construction to ensure that safety facilities are

designed constructed and put into use simultaneously with the main project. The Company conducts regular maintenance and

inspection of production equipment firefighting facilities and safety protection devices to ensure that they remain in good operating

condition at all times.Risk Classification and Control

In accordance with the“Safety Risk Assessment Management System”GW COMPOS routinely uses methods such as Job Hazard Scene from the 2025 Safety Knowledge Competition

Analysis (JHA) and the Safety Checklist (SCL) to identify and assess risks and formulates dedicated lists of control measures for

major risks.Emergency Drills and Safety Training

Emergency Management GW COMPOS attaches great importance to improving emergency response capabilities and employee safety awareness. Through routine

emergency drills and systematic safety training it has built a solid "soft power" defense line for safe production.A comprehensive emergency response plan system for production safety accidents has been established including a general plan

specific plans and on-site handling procedures. The plans cover major accident types such as hazardous chemical leaks fires and

mechanical injuries. A combined full-time and part-time emergency rescue team has been established equipped with sufficient

emergency supplies and equipment and a 24-hour emergency alarm hotline is available to ensure rapid response and effective handling Systematic Training Routine Drills

of emergencies.* Systems and Coverage: In accordance with the Safety * Contingency Plan Framework:The company regards

Education and Training System the company emergency drills as a key means to test contingency

implements comprehensive safety training. plans and train its workforce and has developed

* Traning Requirements: New employees must receive specific emergency plans for fires and explosions

Safety Investment and Incentives safety training at three levels: company workshop and hazardous chemical leaks lifting injuries machinery

work team with a total training time of no less than 24 injuries electric shocks and confined spaces.In 2025 we have invested RMB 22797100 in safety production which will be used for designated purposes only; activities hours. On-the-job employees receive retraining * Frequency of Drills: We organize at least one

annually and 100% of special operations personnel

such as safety knowledge competitions will be carried out and cash rewards will be given to the winners to motivate employees to comprehensive or specialized emergency plan drill

hold validcertificates.participate in safety production. annually and all on-site response plans are practiced

* Content and Form: Training content includes laws and at least once a year.regulations on safe production rules and regulations * Continuous Improvement:After each drill an

emergency knowledge and occupational disease evaluation and summary are conducted and the

prevention. Training methods include centralized plans are revised in a timely manner to ensure their

During the reporting period the total number of employees who suffered serious work-related injuries or deaths was 0. training on-site practical exercises knowledge relevance and operability effectively improving

competitions and mentorship programs to ensure employees' emergency response capabilities and

training effectiveness. collaborative capabilities.

121

122

SocialCase Study: The Company conducts full-scenario realistic safety emergency drills to effectively improve employees'

Safety Hazard Investigation

emergency management capabilities

In June 2025 The Company carried out a safety emergency drill establishing an emergency rescue command GW COMPOS has established a comprehensive safety hazard investigation mechanism to promptly identify and eliminate safety risks

headquarters and six specialized working groups. Team leaders and machine operators served as the core participants and prevent accidents from occurring.and the drill covered seven types of scenarios including hazardous chemical leakage and poisoning electric shock Normalization of the Identification Mechanism

and lifting injuries. Through three specialized drills and three on-site response drills the Company completed the full

process of simulated accident reporting on-site response casualty rescue and personnel evacuation.A multi-level hazard identification system has been established at the post team

workshop and Company levels with clear responsibilities and standards covering

The drill effectively enhanced employees ’ emergency response and coordination capabilities with fire evacuation

dimensions such as equipment environment and operations so as to ensure that

completed in just 1 minute and 34 seconds. Following the drill the Company promptly conducted evaluation and

hazard identification has no blind spots or gaps.review activities and optimized emergency plans and response procedures based on the issues identified ensuring the Safety Hazard

continuous improvement of its emergency response mechanism. Identification

Mechanism For identified safety hazards the Company establishes a hazard ledger defines

responsibilities and deadlines and implements closed-loop management featuring

“ i dentification-registration-rectification-review-closure. ” At the same time

channels such as the General Manager ’ s mailbox and reporting hotlines remain

open to encourage employee feedback.Closed-loop Hazard Handling

The Company regularly compiles and analyzes the results of hazard identification and investigation identifies high-frequency hazards

and high-risk processes and formulates improvement measures in areas such as systems procedures equipment and training. Through

these efforts the Company continues to reduce safety risks and further optimize the work safety environment.Emergency drill scene

Through the systematic implementation of the aforementioned emergency drills and safety training measures the Company and its

subsidiaries achieved significant results in both safety production management and safety training performance in 2025 as detailed

below: The general manager of the company and the general manager of the General

New Materials Division conducted a site inspection in person

During the reporting period a total of over 2000 safety hazards were identified and rectified achieving a 100% rectification rate

with no major safety risks materializing.In 2025 the Safety Environmental Protection and Equipment Department had 41 full-time safety management personnel. The

signing rate of safety production target responsibility agreements at the manager level and above was 100%. The investment in

In the course of hazard identification activities 120 rationalization proposals were collected involving over 100 participant

safety production amounted to RMB 22.7971 million. The coverage rate of safety training for employees involved was occurrences. Teams that demonstrated outstanding performance across various divisions received monetary rewards commensurate

100%. with their level of contribution.

123124

SocialEmpowering Employee Development

GW COMPOS regards talent development as its core and has built a multi-level training system that runs through the entire career cycle of its

employees. Through systematic training diversified development channels and comprehensive incentive mechanisms it empowers

employees to achieve synergistic growth in personal value and corporate development.Talent Cultivation System

The Company has established a multi-level and systematic development system covering employees’ entire career life cycle. The Company

has defined a clear three-tier training organizational structure under which the heads of each department and subsidiary serve as the primary

persons responsible supported by dedicated training administrators. As the centralized coordinating function the human resources The Company’s training session

management department is responsible for overall planning and supervision forming an integrated development network featuring

coordinated linkage among the Company departments and mentors.* A tiered training mechanism is implemented. All new employees must receive company-wide culture introduction Case Study: Cultivating a Strong Talent Ecosystem and Building a Benchmark Through Development Platforms

and rules and regulations training upon joining the company. Subsequently their respective departments will

provide targeted training on job skills process knowledge and safety regulations. Only those who pass the At GW COMPOS every employee is regarded as a star with unlimited potential. Through a systematic training system tiered New employee

training examination are allowed to start work.talent pipeline development specialized skills competitions and innovation incentive mechanisms the Company has

* For administrative and professional technical personnel a "mentorship" system is implemented where established clear career development pathways for employees in all positions enabling them to fully demonstrate their talents

experienced employees provide one-on-one guidance and supervision to accelerate their integration and growth. and grow on the Company’s development platform.* The company encourages and supports employees' continuous learning and self-improvement. We have Gu Dawei Director of the Machining Workshop at GW COMPOS is one such example. Having remained dedicated to the

established a diverse range of training categories including regular and ad hoc company-wide general skills front line of production for nearly 30 years he has grown from an ordinary worker into a National Model Worker and a Great

training departmental professional skills training external specialized training and support for academic Country Craftsman through persistent study and continuous breakthroughs supported by the Company’s systematic training Employee

education and national vocational qualification certification. skills competitions and innovation incentives. By taking Gu Dawei as a role model GW COMPOS encourages employees to development

* For eligible academic upgrading and important external training the company can cover the relevant costs and transform the spirit of honor into motivation for innovation in their own positions driving technical breakthroughs a1nd4 ta0lent

sign service agreements with employees to jointly invest in long-term development. development. This fully reflects the Company’s corporate culture of valuing talent development and helping employees realize

their personal value.* The company has established a standardized internal transfer mechanism to support the orderly movement of

Practice and job employees between departments and subsidiaries. This initiative aims to "make the best use of everyone's talents

rotation and abilities" providing employees with cross-disciplinary and multi-positional practical opportunities

broadening their career horizons and cultivating versatile skills.Training Unit 2025-year

Total employee training hours Hour 5689Total investment in employee training RMB ’000 224 In April 2025 GW COMPOS employee Gu Dawei was awarded the title of “National ModelWorker” by the State Council

Total number of training sessions organized Session(s) 226

125 Overview of Employee Training in 2025 126

SocialStrengthen the talent cultivation

mechanism Employee Promotion and Selection Talent assessment and mobility

Internal Talent Market: By linking the Internal

To ensure the effectiveness and vitality of talent development the Company has established a performance-oriented training Transfer Management System with the

mechanism that emphasizes both incentives and evaluation creating a proactive and innovative organizational atmosphere. The Company consistently adheres to the Recruitment and Departure Management System

principles of "openness equality competition a cross-departmental and cross-subsidiary talent

and merit-based selection" in recruitment and allocation mechanism has been established. The

promotion and clearly stipulates that internal Human Resources Department can revitalize

Performance-oriented Implement a comprehensive performance appraisal system covering dimensions such as selection and promotion will be given priority human resources across the Company promote

dynamic management product quality process execution and safe production. The appraisal results are directly when vacancies arise. The Company has the orderly flow of key talent and optimize their

linked to salary and promotion. Adhere to the principle of "the capable rise and the mediocre established a dual-track promotion system with allocation.fall" to optimize the vitality of the management team. both management and technical tracks respecting Talent pipeline development: For administrative

and supporting the career choices of employees and professional technical personnel an internal

A comprehensive Establish diversified incentive methods to recognize outstanding employees and advanced with different characteristics. selection and allocation mechanism at the head

incentive system teams; provide subsidies to employees with long tenure; and provide faster development office level has been established to consciously

channels and advanced rewards for employees who have made achievements in research and cultivate and reserve reserve cadres. For industrial

innovation. workers the team assessment and team leader

subsidy mechanism in the "Performance

I n n o v a t i o n a n d S k i l l s a n d Management System" are used to identify and

cultivate front-line management backbone.C o n t r i b u t i o n A w a r d s J o b I n c e n t i v e s

* Cash rewards ranging from 2000 to RMB 20000 for * Employees who excel in professional skills team 01 02

authorized invention patents utility models etc. management and special positions are recognized

* New employees who propose effective process through various means such as skills competition

improvements technological innovations or help the subsidies team leader allowances and special

GW COMPOS Talent Reserve and Selection System

company recover losses will be offered the process subsidies.opportunity to be promoted or given early promotion.Talent Assessment and Promotion Overview Unit 2025

Employee year-end performance evaluation coverage % 96.40

Number of employees promoted internally person 11

GW COMPOS Employee Incentive System

Number of outstanding individuals selected person 121

Establish a talent reserve system Number of Advanced Groups to be Selected person 8

Guangwei Composites is committed to establishing an open transparent and resilient talent pool and selection system while The Company's Talent Assessment and Promotion in 2025

continuously strengthening the development of talent hierarchies to provide sustained talent support for technological innovation and

sustainable development.

127128

SocialPartners working together

for mutual benefit

n Treat Small and Medium-sized n Multi-party Joint Construction

Enterprises Equally n Social Contribution and Rural

n Data Security and Customer Revitalization

Privacy Protection

n Responsible Supply Chain

GW COMPOS adheres to the cooperative philosophy of openness collaboration symbiosis and mutual benefit. With responsibility as the bond

and value as the guide it integrates ESG requirements throughout the entire industrial chain. Together with the government customers suppliers

industry partners and all sectors of society it builds a sustainable ecosystem of "equal cooperation safety and compliance green collaboration and

common development." Through practical actions of enterprise-local government linkage and industrial collaboration it fulfills its corporate

mission and social responsibility.Treat Small and Medium-sized Enterprises Equally Data Security and Customer Privacy Protection

The Company regards SMEs as core partners in the value chain adheres to the cooperation principles of "fairness transparency and GW COMPOS strictly abides by laws and regulations such as the Data Security Law of the People's Republic of China and the

inclusiveness" and helps SMEs develop steadily and achieve win-win results through policy support standardized performance and Cybersecurity Law of the People's Republic of China. The Company established a three-in-one full-lifecycle protection system

capability empowerment. integrating systems technology and management. The Company ensures that data processing is compliant and transparent and

continuously safeguards its core data assets and customers’ privacy rights and interests.Fair cooperation and policy support

* No Size-Based Discrimination: GW COMPOS does not impose size-based discrimination in supplier

admission and evaluation. Small and medium-sized enterprises (SMEs) and large enterprises are subject to

Governance Structure and Institutional System

01 the same evaluation standards.* Priority for Innovators: Under the same conditions GW COMPOS gives priority to SMEs with innovation

potential.Multi-level governance responsibility

* Financial Support: In response to the short-term cash flow needs of SMEs GW COMPOS optimizes

payment procedures and provides reasonable payment support under controllable risk conditions thereby The Company has established a governance model of "management coordination - information office execution - departmental

helping to ease their financial pressure. collaboration - full employee participation":

* Management: Responsible for reviewing and approving strategies and major decisions.* Information Office (dedicated function): Responsible for taking the lead in systems development operation and maintenance

risk control and incident response.Contract performance and payment management * Business Departments: Responsible for fulfilling localized accountability and designating data specialists.* Balanced Rights and Responsibilities: Procurement contracts are subject to multi-department review and * All Employees: Responsible for complying with operating procedures and fulfilling confidentiality obligations.

02 clearly define key terms such as quality standards delivery schedules and payment terms.

* Zero Overdue Payment Commitment: GW COMPOS implements a monthly settlement reporting and cross-

department review mechanism and makes payments strictly in accordance with contractual terms striving "Institutions + Technology"

to achieve a zero overdue payment ratio. Dual governance model

Management Structure Technical Structure

Capacity building and development support

* Collaborative Advancement: Through technology empowerment support for green transformation and

collaborative evaluation mechanisms GW COMPOS helps SMEs enhance their overall competitiveness.

03 * Capability Building: For SME suppliers GW COMPOS regularly provides technical and management Information All

training. During supplier admission and annual evaluations the Company also offers practical training in Management Office departments Foundation: Core Business Key technology control coordinates work

areas such as production processes and quality inspection helping SMEs improve their technical capabilities oversight and together to Systems layer:IP-Guard Intranet

and compliance in operations. implements implement ( OA NC YonBIP IP- Security Management

Guard ) Software

GW COMPOS' Data/Information Security Governance Model

131132

SocialFull-process system and hierarchical management

Technical protection: a defense-in-depth barrier

The Company has established a specialized policy framework centered on the Computer Network Information System Security 01

Management System and the Data Import and Export Management System covering the entire process of data collection storage

* Storage security: Sensitive data is encrypted throughout its entire lifecycle and core

use transmission and destruction.business systems have 100% encryption coverage; distributed storage and backup

For customer information the Company has formulated the Special System for Customer Information Protection to regulate the mechanisms are adopted and recovery drills are conducted regularly;

scope and purpose of information collection. By adopting a management approach based on classification and graded protection * Access control: Access permissions are configured based on "least privileges + role-based

according to importance and sensitivity the Company implements targeted measures for different categories of data. During the authorization." Access to critical data requires secondary verification and operation logs are

reporting period no violations such as data leakage or privacy infringement occurred. kept throughout the entire process.* Transmission security: Secure channels are established through VPN and encryption

Data level Control measures protocols and sensitive data transmission is encrypted throughout the entire process;

Classified access permissions encrypted transmission and role-

Commercial Data (customer orders / technical solutions) * Endpoint protection: Deploy an endpoint security management system to control office

based authorization for access scope. equipment and network access and prevent data leakage.Collection on a minimum necessary basis desensitized storage and

Personal Information (customer privacy / employee

code substitution with any unauthorized disclosure strictly

information)

prohibited.Personal computers are prohibited unauthorized device connections

Work Secrets (matters not falling into the above are strictly forbidden accounts must be assigned to designated 02 Process protection: risk management and handling

categories but unsuitable for external disclosure) individuals on a one-person-one-account basis and externally Data flow:

transferred data must be rendered unrecoverable. * Customer information is accessed only upon authorization with internal use employing codes as

substitutes for identifiable data.Data Hierarchical Control Measures * Expired data and discarded media are destroyed in accordance with established specifications and

subsequently filed for record. External collaborations are conducted only upon signing a confidentiality

agreement.Full-process security protection system Risk Control:

* Weekly security inspections are carried out accompanied by real-time auditing using the IP-Guard

system.GW COMPOS has established a dual data security barrier of “ technical protection + process control. ” Through multi-level * Regular network security scans and penetration tests are performed with a vulnerability register

technical measures the Company has built a robust defense-in-depth system while using full-process standardized controls to maintained and timely rectifications implemented.prevent data security risks. * In 2025 a company-wide phishing email attack emergency drill was organized to optimize emergency

response procedures and protective measures.At the technical level

GW COMPOS has implemented encrypted protection and traceability across all stages involving sensitive data including

storage access transmission and endpoints.Capacity Building and Strategy Optimization

At the process level

GW COMPOS has standardized full-lifecycle management of data flows and regularly carries out risk inspections and emergency Targeted Training for All Employees: Customized training content is provided for different roles. In 2025 the training coverage

drills. rate for key positions reached 100% while the overall coverage rate reached 24%.

133134

SocialRole Customized Training Content Indicator Unit 2025-year

Information security maintenance investment RMB ’000 760

2025年

Percentage of business partners who have signed

Strategic and compliance training is confidentiality agreements % 100

Management provided

Number of information security training sessions conducted Person-time 21

Technical personnel Professional skills are further 指标 单位 2025年strengthened Information security training employee coverage % 100

Data security laws regulations and

All employees operating standards are promoted

through case-based awareness sessions Company Information Security Investment Performance

and online courses

Customized Training Content for Different Roles

Responsible Supply Chain

To further enhance the development of the company's information security capabilities the company has established the followingGW COMPOS has established a supply chain management framework that combines “ centralized procurement + independentobjectives:procurement by business segment.” Through systems such as the “Control Procedures for Externally Provided Processes Productsand Services” the Company defines the responsibilities of each department and the coordination mechanisms among them thereby

ensuring the efficient operation of the supply chain.Target type Core Objectives

Procurement Center (dedicated team): Responsible for the centralized procurement of strategically important materials under the

Company’s key control such as carbon fiber and resin.Encryption coverage of core business systems is 100%; training coverage is ≥ 98%;

Short-term goals (1-2 years) Six business segments (each equipped with procurement personnel): Responsible for the independent procurement of non-

there have been no major data security incidents. strategic materials for their respective business segments.Introducing privacy-preserving computing technology to achieve "data usable but not

Medium-term goals (3-5 years)

visible" across departments; passing military data security special certification. * Responsible for the identification of outsourced processes and the preparation of

Technical departments

technical documentation.Build an intelligent data security management platform; participate in the formulation

Long-term goals (5 years or more)

of industry standards.Quality management * Responsible for incoming inspection of purchased products supplier audits and

department follow-up on quality feedback.During the reporting period GW COMPOS recorded zero information security incidents and 0 related financial losses Warehouse * Responsible for the receipt storage safekeeping and issuance of purchased products.achieving its goal of “zero incidents” and incurring no operational losses or compliance risks arising from data security issues.The data encryption coverage rate of core business systems reached 100%. From external collaboration to internal core data

Finance department

the Company has built a comprehensive security protection network with no blind spots meeting data compliance requirements. * Responsible for fund su:pervision and payment review.Discipline inspection and * Inspection and internal audit departments: Responsible for anti-corruption

internal audit departments supervision in the suppl:y chain and supplier audits.Cross-departmental collaboration status

135136

SocialSupply Chain Management Daily Management and Exit Mechanism

Practices and Processes

Management Key initiatives

The Company has built a standardized supply chain management process around the entire lifecycle management of suppliers process

covering key aspects such as access daily management and procurement execution to ensure that the management process is

standardized and efficient.Conduct an annual comprehensive evaluation of qualified suppliers and assigns them A B or C ratings based

Dynamic

grading on dimensions such as quality delivery performance and after-sales service thereby implementing

Supplier Access Management Process differentiated management

01. 02. 03. When suppliers make changes to their production sites key processes or equipment they must notify the 04. Change

management supplier in advance and obtain review and approval from the technical department to ensure that the changes

Supplier Screening Assessment and Verification and Review Evaluation Contract Signing do not affect product quality and supply stability

Through channels such as The technology procurement For suppliers that pass the The Company signs

online searches peer quality and other departments preliminary review the contracts with suppliers to Suppliers whose products fail to meet quality standards or whose delivery is delayed will be given suggestions

Continuous

recommendations and jointly carry out on-site audits Company conducts sample clearly define core terms improvement for improvement. Those who fail to improve will be warned and those who still fail to improve will have their

customer referrals the focusing on key dimensions verification in small batches. such as quality delivery supply suspended or their qualified supplier status revoked

Company identifies high- such as operating The procurement department schedule pricing clauses

quality enterprises across qualifications production and completes the Supplier confidentiality requirements

multiple channels giving supporting capabilities Registration Form which is and anti-corruption

We immediately terminates cooperation with suppliers rated C or those involved in major compliance risks or

priority to potential suppliers staffing economic jointly approved by relevant responsibilities thereby Exit Mechanism

quality incidents

that are leaders in new performance and financial departments before the providing legal protection

materials and the chemical position. supplier is included in the List for cooperation.industry so as to ensure the of Qualified Suppliers.quality of supply chain

resources. Supply Chain Resilience and

Domestic Substitution

The Company continuously optimizes its procurement strategies actively cultivates high-quality supply chain resources and

establishes long-term and stable cooperative relationships with core suppliers thereby continuously enhancing supporting capabilities

Supplier Onboarding Management Flowchart

across the industrial chain and the level of supply assurance. At the same time the Company continues to strengthen the collaborative

responsiveness of its supply chain comprehensively improving supply chain resilience security and stable operations to support its

long-term and steady development.

137138

SocialSupply Chain Risk Management Supply Chain Sustainable Development Actions

The Company has fully incorporated ESG requirements into the core indicators of supplier access evaluation and assessment and has Measures:

built a systematic ESG management system. * GW COMPOS promotes the adoption of green materials by suppliers such as recyclable packaging and water-based paints.* Assessment System: GW COMPOS uses the Supplier On-site Audit Evaluation Form and adopts a combination of on-site audits * GW COMPOS has signed integrity commitment letters with 100% of its core suppliers. Anti-corruption clauses are incorporated

and document reviews covering 73 specific indicators across five modules: quality management R&D and process technology into procurement contracts and supervision is strengthened through annual audits and irregular random audits to ensure clean and

production and manufacturing business management and ESG. transparent procurement.* Certification Requirements: GW COMPOS gives priority to suppliers certified under ISO 14001 and ISO 45001 while Class A * Results: GW COMPOS’ achievements in sustainable supply chain management have received international recognition. In 2025

suppliers are required to obtain ISO 9001 certification. the Company was awarded the EcoVadis Bronze Medal.* Risk Identification and Control: GW COMPOS regularly conducts comprehensive risk identification for qualified suppliers

across dimensions such as supply stability price fluctuations quality compliance and ESG compliance supported by four core

control measures.Core Control Measures

In 2025 the Company won the ECOVADIS Bronze Medal.Tiered Inventory Supplier Counterfeit

Control Control Development Prevention Indicator Unit 2025

The Company strictly Number of suppliers unit 151The Company applies Through the NC digital For suppliers that

differentiated system the Company currently have implements supplier Number of key suppliers unit 15

management and monitors inventory shortcomings but admission standards

control measures based dynamics in real time demonstrate requires suppliers to

Percentage of transaction expenditures with key suppliers % 71

on different risk levels sets safety stock levels improvement potential provide qualification New supplier introduction and onboarding assessment coverage % 100

and supplier risk and dynamically the procurement documents and relevant

categories enabling adjusts procurement department together materials and conducts Supplier comprehensive assessment coverage % 100

precise identification of plans and inventory with the technical on-site inspections of Localization rate % 56

potential supply chain levels based on demand department puts Class A producers to

risks optimizing forecasts to address forward improvement verify production Number of suppliers participating in capacity building unit 151

resource allocation and supply fluctuation risks suggestions and capacity and quality

improving management provides technical management processes.The proportion of key suppliers involved in capacity building % 100

efficiency guidance and training It also regularly The proportion of suppliers who signed the Integrity Agreement % 100

support to help them evaluates supplier

performance to prevent The proportion of suppliers using environmentally friendly and recyclable enhance key packaging materials % 100

capabilities such as counterfeit components

from entering the The proportion of suppliers conducting environmental impact assessments % 100quality control and

delivery management supply chain Percentage of new suppliers screened using environmental assessment dimensions % 100

Four Core Control Measures Company Supplier Management

Note: The supplier count is based on the number of long-term suppliers that have cooperated over the past three years

139140

SocialMulti-party Collaboration

Case Study: Inner Mongolia Guangwei and Inner Mongolia University of Technology jointly establish an internship

and training base

Guided by open collaboration and value coexistence the company takes “ industry leadership and resource sharing ” as its core. It

incorporates ESG coordinated development requirements into the full process of university-enterprise and industrial interaction.Through standard formulation joint technological innovation and platform co-building we cultivate an industrial ecosystem driven by In September 2025 Inner Mongolia Guangwei a subsidiary of GW COMPOS jointly established a “ University“ university empowerment and industrial linkage ” advance the high-quality development of the composite materials industry and Student Internship and Practical Training Base” with Inner Mongolia University of Technology. Based on in-depth

realize multi-party win-win cooperation. cooperation in the field of materials Inner Mongolia Guangwei opened its advanced equipment technologies and

industrial resources to the School of Light Industry and Textile.University-Enterprise Co-development: Integrating Industry Academia Research and Application for Two-Way

This cooperation has enabled the enterprise to participate more deeply in talent cultivation promoted the integration

Empowerment

of professional theory with practical application continuously injected new talent into the carbon fiber industry and

accelerated the transformation of scientific research results into productive forces.The Company focuses on technological innovation and talent cultivation and has built a long-term and stable university-enterprise

cooperation system.Joint Technology Innovation

GW COMPOS has established joint laboratories with leading universities such as Beijing University of Chemical Technology

Harbin Institute of Technology Shandong University and Donghua University. Focusing on frontier fields such as the

development of domestically produced large-tow T1000-grade carbon fiber and the engineering application of thermoplastic

composites the Company carries out specialized research to accelerate the commercialization of scientific research results

Joint Talent Development

GW COMPOS has jointly organized the “Guangwei Cup” with multiple institutions providing university students with

关键技术管控层:

opportunities to showcase the信ir capabilities. Through talent programs such as the “Taishan ScholarI”P -inGituiaatirvde内 th网e C安om全p管any理 has 息

introduced leading university办 professors. It has also jointly established internship and practical trai软nin件g bases for university

students with institutions such统 as the School of Materials Science and Engineering of Inner Mongolia University of Science and筹

Technology providing studen执ts with practical platforms while building a pipeline of high-quality talent for the Company行

Resource Sharing

Photo of the unveiling ceremony for the university student training base

Relying on its two national-level scientific research platforms—the National Industrial Design Centre and the National

Enterprise Technology Center—GW COMPOS shares experimental equipment and scientific research data with universities

forming a closed-loop cooperation model in which universities generate research outcomes the Company commercializes

them and the market validates their effectiveness

141142

SocialIndustry Collaboration: Standards-Driven Development Ecosystem Prosperity Case Study: The 9th "Guangwei Cup" College Student Science and Technology Innovation Competition provides a

platform for college students to showcase their talents.In October 2025 the final of the 9th “Guangwei Cup” China Composite Materials Society Undergraduate Science and Technology

Innovation Competition was held in Chengdu Sichuan. A total of 360 entries from universities across China were received

covering fields such as aerospace new energy artificial intelligence green and low-carbon development intelligent

manufacturing and biomedicine.Standards Development: Platform co-construction

Core technical personnel are employed as Hosting the 2025 Civil Engineering Fiber Since its official launch in 2017 the competition has been held for nine consecutive years attracting nearly 400 universities

members of the National Carbon Fiber Reinforced Composite Materials Development 3000 teams and more than 12000 students nationwide with cumulative investment exceeding RMB 10 million. It has generated

Standardization Technical Committee and the Conference participating in industry events such broad influence among universities offering programs in materials mechanics chemistry engineering and other related

National Defense Science and Technology as the 28th China International Composites disciplines and has become one of the most influential top-tier science and technology innovation competitions in China ’ s

Industry Materials Professional Standardization Exhibition and the World Unmanned Aerial composite materials discipline.Technical Committee deeply involved in the Vehicle Conference and exploring cutting-edge

formulation revision and technical review of technologies and discussing development Through its university-enterprise collaborative competition model the “Guangwei Cup” has built a bridge connecting university

national and provincial industry standards and opportunities with upstream and downstream talent cultivation with industrial development helping young students showcase their innovative achievements while

leading the drafting of national standards such as enterprises and industry partners continuously building a talent pipeline and promoting innovation in high-performance composite materials especially in the field

Polyacrylonitrile-based Carbon Fiber and of carbon fiber.Carbon Fiber Prepreg guiding the upgrading of

industry technical specifications

Association Qualifications Resource synergy

As a Vice Chairman Unit of the China Leverage its advantages across the entire

Composites Industry Association a member of industry chain to establish technology-sharing

the Chinese Society for Composite Materials mechanisms with upstream and downstream

and a Vice Chairman Unit of the Shandong partners jointly promoting industrial upgrading

Advanced Materials Industry Association

among others GW COMPOS actively

participates in industry governance and

industrial collaboration

On-site photo of the 9th "Guangwei Cup" China Composites Society Undergraduate Science

and Technology Innovation Competition

143144

Social管理

Social Contribution and Rural Revitalization 层

监关键技术管控层:

Case Study:督 Spring Festival greetings warm hearts jointly painting a new picture of ruraIPl -liGfeu.ard内网安全管理软件

The Company actively fulfills its social responsibilities deeply integrates into national strategies gives back to society through

charitable actions and supports rural revitalization with concrete measures thereby achieving coordinated development between the

In January 2025 the Party Committee of GW COMPOS entrusted its Administrative Party Branch to visit Dianliyuan

enterprise and society.Village in Weihai City and carry out a Spring Festival outreach activity delivering holiday goods such as rice and pork

ribs to 375 households. In appreciation the villagers presented the Company with a silk banner inscribed with the words:

The Company makes multi-dimensional efforts to practice social responsibility and builds a diversified public welfare system:

“The Company offers caring support and stays close to the people like one family.”

0102

Ecological protection Community Co-building

Adhering to the concept of green development the Company Deepening community engagement and resource sharing with

organizes environmental protection(public welfare activities) such local areas the Company has donated carbon fiber sports

as tree planting and beach cleanups. equipment firefighting equipment and landscape facilities to

subdistrict communities and sponsored public wellbeing

activities such as fitness walking events. In recognition of these

efforts the Company has been awarded the honorary title of

"Most Admired Partner."

The Company focuses on improving people's livelihoods and increasing economic income implementing a coordinated set of targeted

assistance measures. Through an integrated model encompassing consumption assistance material assistance and employment assistance

the Company steadily advances rural revitalization.Scene of rural revitalization activities in Dianliyuan Village Weihai City

Through consumption assistance the Company facilitates the sale of agricultural products by

smoothing production and sales channels. In 2025 it procured local farmers' specialty products

such as apples and sweet potatoes in bulk providing agricultural assistance amounting to

approximately RMB 300000.Through material donations the Company improves villagers' living conditions. It donated In 2025 the Company's social welfare investment exceeded RMB 1000000 including RMB 4100 in sponsoring

approximately RMB 70000 worth of daily necessities including rice flour meat and fish to

assisted villages benefiting all 375 households in the villages. community activity materials RMB 300000 in purchasing agricultural assistance materials and over RMB 70000

in rural donations; it also helped more than 80 disabled people find employment and distributed assistance materials to the

disabled demonstrating its social responsibility.Through employment assistance the Company activates the endogenous driving force for rural

development. It actively recruits rural labor and provides professional skills training driving

income growth through stable employment.

145146

SocialESG Performance Table

Environmental Performance

Climate Change Energy and Resource Consumption

Indicator Unit 2025 2024 2023 Indicator Unit 2025 2024 2023

Total energy consumption Tons of Standard Coal Total greenhouse gas emissions Equivalent (tSCE) 47630.99 45681.00 35908.04

(Scope 1 + Scope 2) tCO2e 81551.05 78228.44 49935.61

Tons of Standard Coal

tCO e / Energy consumption intensity Equivalent (tSCE) / 2 0.02 0.02 0.014 Total greenhouse gas emission RMB ’000 of 0.03 0.03 0.02 RMB ’000 of revenueintensity (Scope 1 + Scope 2) revenue Total consumption of non- Tons of Standard Coal

renewable energy Equivalent (tSCE) 11638.74 11504.49 5603.15

Greenhouse of which: Greenhouse gas

emissions (Scope 1) tCO2e 30959.06 30601.96 14904.38 Non-renewable energy Tons of Standard Coal

Gas (GHG) consumption intensity Equivalent (tSCE) / 0.004 0.005 0.002

Greenhouse gas tCO2e/ RMB ’000 of revenueEmissions emission intensity(Scope 1) RMB ’000 of 0.01 0.01 0.01 revenue of which: Gasoline Tons of Standard Coal Equivalent (tSCE) 3.41 3.52 3.63

of which: Greenhouse gas

emissions (Scope 2) tCO2e 50594.99 47626.48 35031.23 Diesel fuel

Tons of Standard Coal

Equivalent (tSCE) 134.46 139.70 169.24

Greenhouse gas tCO2e/ RMB ’000 of Fuel oil

Tons of Standard Coal

0.02 0.02 0.01 Equivalent (tSCE) 24.40 15.10 23.96 emission intensity (Scope 2) revenue

Natural gas Tons of Standard Coal Equivalent (tSCE) 11476.47 19536.86 5406.32

Energy Total consumption of Tons of Standard Coal

Energy and Resource Consumption renewable energy Equivalent (tSCE) 3218.37 2138.39 2114.82

Indicator Unit 2025 2024 2023 Renewable energy Tons of Standard Coal

consumption intensity Equivalent (tSCE) / 0.001 0.001 0.001

Total water intake Tonnes 1691235.05 1503532.38 962838.78 RMB ’000 of revenue

Total water consumption Tonnes 2100428.05 1736618.38 1139057.78 of which: Wind power Tons of Standard Coal

Tonnes/ Equivalent (tSCE)

995.240.000.00

Water consumption intensity RMB ’000 0.735 0.709 0.452

of revenue Photovoltaics

Tons of Standard Coal

Equivalent (tSCE) 2223.13 2138.39 2114.82

Classified by different water usage purposes Total external energy Tons of Standard Coal 32773.88 32038.12 28190.07

Water purchases Equivalent (tSCE)

Resources Industrial water consumption Tonnes 1995550.05 1639720.38 1046867.78 of which: Purchased Tons of Standard Coal Electricity Equivalent (tSCE) 31818.85 30886.89 27558.90

Domestic water consumption Tonnes 104878.00 96898.00 92190.00

Purchased steam Tons of Standard Coal Total water saving Tonnes 600056.00 423881.00 227012.00 Equivalent (tSCE) 58514.63 53972.92 34759.97

Water reuse and recycling Tonnes 409193.00 233086.00 176219.00

Purchased heat Tons of Standard Coal Equivalent (tSCE) 533.95 676.25 596.41

Optimization-based water

savings in industrial water systems Tonnes 190863.00 190795.00 50793.00 Renewable energy utilization ratio % 5.50 3.97 5.89

147148

AppendixWastewater Waste Gas and Pollutants Management Wastewater Waste Gas and Pollutants Management

Indicator Unit 2025 2024 2023 Indicator Unit 2025 2024 2023

Number of times administrative Total amount of solid waste

generated Tonnes 2169.42 1692.84 1244.58 warnings or penalties were issued

for failing to meet standards for No. 0 0 0 Tonnes/

waste and pollutant emissions Solid waste gen关era键tion绩 int效ensity RMB ’000 of 0.0008 0.0007 0.0005 revenue

Major leak incident No. 0 0 0 of which:Total amount of

general waste generated Tonnes 1074.36 1019.79 620.30

Total exhaust emissions m3 1513924815.00 1595732192.00 1472849780.00

Solid Total amount of

Exhaust hazardous waste generated

Tonnes 1095.06 673.05 624.28

m3/ Waste

Gas Exhaust gas emission intensity RMB ’000 529.43 558.04 515.07 Total amount of solid waste

of revenue disposal

Tonnes 2168.99 1692.84 1244.58

of which:General waste disposal

volume Tonnes 1074.36 1019.79 620.30 Particulate matter emissions Tonnes 0.60 0.57 0.43

Hazardous waste

disposal volume Tonnes 1094.63 673.05 624.28 Nitrogen Oxides (NOx)

emissions Tonnes 18.10 11.80 9.46 Non-hazardous Waste Recycling % 12.08 33.46 7.18

VOCs (Volatile Organic Rate

Compounds) emissions Tonnes 17.53 15.10 9.36

Noise level (daytime) dB 58.00 55.00 57.50

Total wastewater discharge Tonnes 999646.30 921450.30 465088.50 Noise

Noise level (nighttime) dB 45.00 45.00 49.75

Tonnes/

Wastewater discharge intensity RMB ’000 0.35 0.376 0.185

of revenue

of which:Total industrial

wastewater discharge Tonnes 861909.00 803907.00 343412.00

Total amount of

domestic wastewater discharged Tonnes 137737.30 117543.30 121676.50

Wastewater discharge

Waste- volume - Chemical oxygen Tonnes 34.14 36.89 63.40

demand (COD)

water Wastewater discharge -

ammonia nitrogen (NH3-N) Tonnes 16.14 11.83 6.77 Environmental Management

Wastewater discharge -

Total nitrogen (as N) Tonnes 5.17 6.25 8.91 Indicator Unit 2025 2024 2023

Wastewater discharge -

Total phosphorus (as P) Tonnes 0.27 0.18 0.28 Environmental Environmental protection

investment RMB ’000 10703.1 11734.4 3900.1

Wastewater discharge - Investment

suspended solids (SS) Tonnes 23.80 38.84 20.84

Wastewater discharge - Environmental Environmental violations No. 0 0 0

5-day Biochemical Oxygen Tonnes 25.69 21.53 13.91

Demand Compliance

149150

AppendixSocial Performance

Labor Situation Sustainable Supply Chain关键绩效

Indicator Unit 2025 2024 2023 Indicator Unit 2025 2024 2023

Labor contract signing rate % 100 100 100

关键绩效 Number of suppliers No. 151 212 179

Number of disabled people Persons 80 81 84

Proportion of disabled persons % 3.54 3.62 3.90 Number of key suppliers No. 15 15 15

Employee

Female employee ratio % 26.90 27.10 27.80 Supplier Percentage of transaction expenditures with Recruitment key suppliers % 71 61 52

Female ratio in management positions % 26.30 24.00 20.00 Manage-

and ment New supplier introduction and onboarding Female ratio in professional channels % 22.40 22.90 21.40 assessment coverage % 100 100 100

Employment New employees Persons 206 327 299 Supplier comprehensive assessment coverage % 100 100 100

Local employment rate % 78.00 78.00 76.00

Total employee turnover rate % 5.90 10.50 10.40 Localization procurement rate % 56 54 55

Labor Situation Public Welfare

关键绩效 Indicator Unit 2025 2024 2023 Indicator Unit 2025 2024 2023关键绩效

Employee Public Public welfare investment RMB ’000 1000 2200 1700

Satisfaction Employee satisfaction results % 99.07 97.27 96.86 Welfare

Occupational Safety and Health

Indicator Unit 2025 2024 2023

Employee

Health Coverage of employee health check % 92.40 89.00 88.30

Check

Total number of safety hazards

discovered No. 2271 2072 1386

Total closed-loop rate of safety hazard

rectification % 100 100 100

Safety Total number of workplace accidents

Production involving employees

No. 20 15 18

Management Year-on-year change in number of accidents % 5 3 4

Total number of employees injured on

the job Persons 26 21 21

Lost working hours due to safety

accidents Hours 12696 16988 12680

151152

AppendixGovernance Performance

Economic Performance

Indicator Unit 2025 2024 2023

Operating revenue RMB ’000 2859519.7 2449934.9 2517697.3

Economic Net profit attributable to equity shareholders of the listed company RMB ’000 603403.1 741184.3 873168.5

Performance

Basic earnings per share RMB/share 0.73 0.90 1.05

Cash dividend amount (including tax) RMB ’000 412500 412500 412500

Board Governance

Indicator Unit 2025 2024 2023

Number of board members Persons 9 7 7

Board of

Directors Independent Director Ratio % 33.33 42.86 42.86

Percentage of Female Directors % 22.22 28.57 14.29

Number of Board Meetings No. 5 6 9

Board of Directors Attendance Rate % 100 100 100

Number of topics considered at board

Governance meetings No. 24 41 42

Structure Percentage of ESG-related proposals % 4.17 2.44 2.38

Number of Shareholders' Meetings No. 2 3 2

Shareholder participation rate % 41.04 42.72 42.60

Number of committees under the board of

directors No. 4 4 4

Compliance Governance

Indicator Unit 2025 2024 2023

Information Shenzhen Stock Exchange Information

Disclosure Disclosure Assessment Rating A A A

Internal

Control Number of times the Company conducts internal control self-assessments No. 4 4 2

System

Number of business processes involved in internal control evaluation No. 12 12 12

153154

AppendixIndicator Index

(2) GRI Index?

(1) Index to Self-Regulatory Guide No.3 for Listed Companies — Compilation

Disclosure

of Sustainability Report of the Shenzhen Stock Exchange ChiNext. Items Disclosure of issues Corresponding Chapters

General Standard

No. Disclosure requirements Corresponding chapter of this report

GRI 1: Foundation 2021

Environmental

GRI 2: General Disclosure 2021

1 Climate Change Response Climate Change Response

2 Pollutant Emissions Pollutant Emissions Organizations and Practices

3 Waste Disposal Waste Disposal 2-1 Organizational details About GW COMPOS

Ecosystem and Biodiversity 2-2 Entities included in the organization's sustainability 4 Conservation Ecosystem and Biodiversity Conservation report

About This Report

2-3 Reporting period reporting frequency and contact

5 Environmental Compliance Environmental Compliance Management person

About This Report

Management

6 Energy Utilization Energy Utilization Conservation and Emission

2-4 Restatements of information ESG Performance Table

Reduction

Activities and Workers

7 Water Resource Utilization Water Resource Utilization

2-6 Activities value chain and other business 8 Circular Economy Circular Economy relationships About GW COMPOS

Social 2-7 Employees Practicing the People-Oriented Philosophy

9 Rural Revitalization Social Contribution and Rural Revitalization Governance

10 Social Contribution Social Contribution and Rural Revitalization

2-9 Governance structure and composition The Operation of "Shareholders' Meeting Board of Directors and Senior Management"

11 Innovation-Driven Development Innovation-Driven Development

2-10 Nomination and selection of the highest governance The Operation of "Shareholders' Meeting Board

Not applicable. The Company's business does not body of Directors and Senior Management"

12 Technology Ethics involve scientific research or technological 2-11 Chair of the highest governance body

The Operation of "Shareholders' Meeting Board

development in ethically sensitive fields such as life of Directors and Senior Management"

sciences and artificial intelligence. 2-12 Role of the highest governing body in sustainability The Operation of "Shareholders' Meeting Board reporting of Directors and Senior Management"

13 Supply Chain Security Responsible Supply Chain

Ensure Fair Treatment of Small and Ensure Fair Treatment of Small and Medium-sized 2-13 Delegation of responsibility for managing impacts

The Operation of "Shareholders' Meeting Board

14 of Directors and Senior Management"Medium-sized Enterprises Enterprises

2-14 Role of the highest governing body in sustainability

The Operation of "Shareholders' Meeting Board

15 Product Safety and Quality Product Safety and Quality reporting of Directors and Senior Management"; ESG governance architecture

16 Data Security and Customer Privacy Protection Data Security and Customer Privacy Protection 2-15 Conflicts of interest

The Operation of "Shareholders' Meeting Board

of Directors and Senior Management"

17 Employee Practicing the People-Oriented Philosophy

2-16 Communication of critical concerns ESG Capacity Building and Stakeholder Communication

Sustainable Development Related Governance

2-17 Collective knowledge of the highest governance body The Operation of "Shareholders' Meeting Board

18 Due Diligence Internal Control of Directors and Senior Management"

2-18 Evaluation of the performance of the highest The Operation of "Shareholders' Meeting Board 19 Stakeholder Communication ESG Management governance body of Directors and Senior Management"

20 Anti-commercial Bribery and Anti- Anti-commercial Bribery and Anti-corruption 2-19 Remuneration policies

The Operation of "Shareholders' Meeting Board

corruption of Directors and Senior Management"

21 Anti-unfair Competition Anti-unfair Competition 2-20 Procedure for determining remuneration

The Operation of "Shareholders' Meeting Board

of Directors and Senior Management"

155156

AppendixDiscl Disclosure

osure Disclosure of issues Corresponding Chapters Items Disclosure of issues Corresponding Chapters

Items

Strategy Policy and Practice GRI 206: Anti-competitive Behavior 2016

2-22 Statement on sustainable development strategy Sustainable Development Strategy 206-1 Legal actions for anti-competitive behavior anti-trust and monopoly practices Anti-unfair Competition

2-23 Policy commitments ESG Management GRI 207: Tax 2019

2-24 Embedding policy commitments ESG Management 207-1 Approach to tax Tax Compliance

207-2 Tax governance control and risk management Tax Compliance

2-25 Procedures for remedying negative impacts Product Safety and Quality

ESG capacity building and stakeholder 207-3 Stakeholder(related to tax) engagement and management Tax Compliance

2-26 Mechanisms for seeking advice and raising concerns communication; practicing a people-centered

approach

2-27 Compliance with laws and regulations Strengthening the Foundation of Corporate

GRI 301: Materials 2016

Governance 301-1 Materials used by weight or volume Circular Economy

2-28 Membership associations Multi-party collaboration; major domestic associations and organizations involved 301-2 Recycled input materials used Circular Economy

Stakeholder Participation 301-3 Reclaimed products and their packaging materials Circular Economy; Green Products

2-29 Approach to stakeholder engagement ESG Capacity Building and Stakeholder

GRI 302: Energy 2016

Communication Energy Utilization Conservation and

GRI 3: Substantive Issues 2021 302-1 Energy consumption within the organization Emission Reduction; ESG Performance

Table

3-1 Process to determine material topics ESG Capacity Building and Stakeholder Communication 302-2 Energy consumption outside of the organization

Energy Utilization Conservation and

Emission Reduction

3-2 List of material topics ESG Capacity Building and Stakeholder Energy Utilization Conservation and Communication 302-3 Energy intensity Emission Reduction; ESG Performance

3-3 Management of material topics ESG Capacity Building and Stakeholder TableCommunication

302-4 Reduction of energy consumption Energy Utilization Conservation and

GRI 201: Economic Performance 2016 Emission Reduction

302-5 Reductions in energy requirements of products and Energy Utilization Conservation and

201-1 Direct economic value generated and distributed ESG Performance Table services Emission Reduction

GRI 303: Water and Effluents 2018

201-2 Financial implications and other risks and opportunities Climate Change Response; ESG capacity due to climate change building and stakeholder communication 303-1 Interactions with water as a shared resource Water Resource Utilization

303-2 Management of water discharge-related impacts Water Resource Utilization

201-3 Defined benefit plan obligations and other retirement plans Compliant Employment

303-3 Water withdrawal Water Resource Utilization; ESG

201-4 Financial assistance received from government Refer to the Company's annual report Performance Table

303-4 Water discharge Water Resource Utilization

GRI 203: Indirect Economic Impacts 2016

303-5 Water consumption Water Resource Utilization; ESG Performance Table

203-1 Infrastructure investments and services supported Social Contribution and Rural Revitalization GRI 304: Biodiversity 2016

GRI 205: Anti-corruption 2016

Operational sites owned leased managed in or adjacent

205-1 Operations assessed for risks related to corruption Anti-commercial Bribery and Anti-corruption 304-1 to protected areas and areas of high biodiversity value Ecosystem and Biodiversity Conservationoutside protected areas

205-2 Communication and training about anti-corruption policies and procedures Anti-commercial Bribery and Anti-corruption

304-2 Significant impacts of activities products and services on Ecosystem and Biodiversity Conservation

205-3 Confirmed incidents of corruption and actions taken Anti-commercial Bribery and Anti-corruption biodiversity

157158

AppendixDisclosure Disclosure of issues Corresponding Chapters Disclosure Items Items Disclosure of issues Corresponding Chapters

GRI 305: Emissions 2016 GRI 403: Occupational Health and Safety 2018

305-1 Direct (Scope 1) GHG emissions Climate Change Response; ESG Performance Table 403-1 Occupational Health and Safety management system Occupational Health and Safety

305-2 Energy indirect (Scope 2) GHG emissions Climate Change Response; ESG 403-2 Hazard identification risk assessment and incident Performance Table investigation Occupational Health and Safety

Identification and Management of

305-4 GHG emissions intensity Climate Change Risks and Opportunities; 403-3 Occupational health services Occupational Health and Safety

ESG Performance Table

403-4 Occupational health and safety matters: worker Identification and Management of participation consultation and communication Occupational Health and Safety

305-5 Reduction of GHG emissions Climate Change Risks and Opportunities;

ESG Performance Table 403-5 Worker training on occupational health and safety Occupational Health and Safety

305-7 Nitrogen oxides (NOx) sulfur oxides (SOx) and Pollutant Emissions; other significant air emissions ESG Performance Table 403-6 Promotion of worker health Occupational Health and Safety

GRI 306: Waste 2020

403-7 Prevention and mitigation of occupational health and Waste generation and significant waste-related safety impacts directly linked by business relationships Occupational Health and Safety306-1 impacts Waste Disposal

306-2 Management of significant waste-related impacts Waste Disposal 403-8 Workers covered by an occupational health and safety management system Occupational Health and Safety

306-3 Waste generated Waste Disposal 403-9 Work-related injuries Occupational Health and Safety; ESG Performance Table

306-4 Waste diverted from disposal Waste Disposal 403-10 Work-related health issues Occupational Health and Safety

306-5 Waste directed to disposal Waste Disposal GR1 404: Training and Education 2016

GRI 308: Supplier Environmental Assessment 2016 404-1 Average hours of training per year per employee Empowering Employee Development; ESG Performance Table

308-1 New suppliers that were screened using environmental criteria Responsible Supply Chain 404-2 Programs for upgrading employee skills and transition assistance programs Empowering Employee Development

308-2 Negative environmental impacts in the supply chain and actions taken Responsible Supply Chain 404-3 Percentage of employees receiving regular performance Empowering Employee Development;and career development reviews ESG Performance Table

GRI 401: Hiring 2016 GR1 405: Diversity and Equal Opportunity 2016

401-1 New employee hires and employee turnover Compliant Hiring; ESG Performance Table 405-1 Diversity of governance bodies and employees Compliant Employment

401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees Compliant Employment GR1 406: Non-discrimination 2016

401-3 Parental leave Compliant Employment 406-1 Incidents of discrimination and corrective actions taken Employee Rights Protection

159160

AppendixIFRS S2 Climate-related Disclosures

Disclosure

Items Disclosure of issues Corresponding Chapters Disclosure requirements

Corresponding

Chapters

Climate Change Response;

GR1 408: Child Labor 2016 Disclose the governance body(s) (which can include a board committee or ESG governance

Compliant Hiring; equivalent body charged with governance) or individual(s) responsible for oversight framework; ESG

408-1 Operations and suppliers at significant risk for of climate-related risks and opportunities. management systems and incidents of child labor Employee Rights Protection; Responsible Supply Chain Gover- risk managementnance Climate Change Response;

GR1 409: Forced or Compulsory Labor 2016 Disclose management ’ s role in the governance processes controls and procedures ESG governance

used to monitor manage and oversee climate-related risks and opportunities framework; ESG management systems and

risk management

409-1 Operations and suppliers at significant risk for

Compliant Hiring;

incidents of forced or compulsory labor Employee Rights Protection; Responsible Supply Chain Disclose the climate-related risks and opportunities that could reasonably be expected to affect the entity’s prospects. Climate Change Response

Climate Change Response;

GR1 413: Local Communities 2016 Disclose the current and anticipated effects of those climate-related risks and ESG capacity building

opportunities on the entity’s business model and value chain. and stakeholder

413-1 Operations with local community engagement impact assessments and development programs Social Contribution and Rural Revitalization

communication

Disclose the effects of those climate-related risks and opportunities on the entity’s

strategy and decision-making including information about its climate-related Climate Change Response

413-2 Operations with significant actual and potential transition plan.negative impacts on local communities Social Contribution and Rural Revitalization Strategy

Disclose the impact of climate-related risks and opportunities on the enterprise ’ s

GRI 414: Supplier Social Assessment 2016 financial position financial performance and cash flows as well as their expected

Climate Change Response;

impact in the short medium and long term taking into account how climate-related ESG capacity building

risks and opportunities have been incorporated into the enterprise ’ s financial and stakeholder

414-1 New suppliers that were screened using social criteria Responsible Supply Chain planning. communication

414-2 Negative social impacts in the supply chain and Responsible Supply Chain Disclose the climate resilience of the entity ’ s strategy and its business model to

Climate Change Response;

actions taken climate-related changes developments and uncertainties taking into consideration ESG capacity building

the entity’s identified climate-related risks and opportunities. and stakeholder

GRI 416: Customer Health and Safety 2016 communicationClimate Change Response;

Disclose the processes and related policies the entity uses to identify assess ESG management

416-1 Assessment of the health and safety impacts of Product Safety and Quality prioritise and monitor climate-related risks. systems and risk product and service categories management

416-2 Incidents of non-compliance concerning the health Risk

Disclose the processes the entity uses to identify assess prioritise and monitor Climate Change Response;

and safety impacts of products and services Product Safety and Quality Manage climate-related opportunities including information about whether and how the ESG management

ment entity uses climate-related scenario analysis to inform its identification of climate- systems and risk related opportunities. management

GRI 417: Marketing and Signage 2016

Disclosure the extent to which and how the processes for identifying assessing Climate Change Response;

Requirements for product and service information prioritising and monitoring climate-related risks and opportunities are integrated into ESG management

417-1 and labeling Responsible Marketing and inform the entity’s overall risk management process. systems and risk management

Incidents of non-compliance concerning product and

417-2 service information and labeling Responsible Marketing Disclose information relevant to the cross-industry metric categories. ESG Performance Table

Incidents of non-compliance concerning marketing

417-3 communications Responsible Marketing Metrics Disclose industry-based metrics that are associated with particular business models

and activities or other common features that characterise participation in an industry. ESG Performance Table

GRI 418: Customer Privacy 2016 Targets

Disclose targets set by the entity and any targets it is required to meet by law or

regulation to mitigate or adapt to climate-related risks or take advantage of climate- Sustainable Development

418-1 Substantiated complaints concerning breaches of Data Security and Customer Privacy related opportunities including metrics used by the governance body or management Strategycustomer privacy and losses of customer data Protection; Customer-centric to measure progress towards these targets.

161162

AppendixKey Domestic Associations and Organizations Participated in Report Recommendations and Feedback

Dear Readers

Entity Association / Organization Role

Thank you for your interest in the "2025 Sustainability Report and Environmental Social and Governance Report of Weihai

China Association for Public Companies Council Member Guangwei Composites Co. Ltd.". To continuously improve the quality of this report and deliver more in-depth and decision-

useful ESG information we sincerely invite you to share your valuable opinions and suggestions. Your feedback will provide

important guidance for the Company to deepen its sustainable development practices.China Society for Composite Materials Council Member

You may return the completed questionnaire to us by mail or email or you can directly provide your specific feedback. We will

strictly protect the confidentiality of your feedback and used solely for ESG report improvement and related enhancements not

China Composite Materials Industry Association Vice President Member

for any other commercial purposes. Thank you for your support and cooperation!

Shandong Association for Public Companies Council Member 1. Please indicate your stakeholder category of GW COMPOS:

□ Shareholders/Investors □ Employees □ Suppliers □ Customers □ Government and regulatory authorities □ Industry

Shandong New Materials Industry Association Vice President Member Associations/Peers □ General Public Community and Media □ Sustainability/ESG Industry Practitioners □ Other (Please

specify)

GW COMPOS Shandong Provincial Industrial Design Association Vice President Member 2. Your overall evaluation of this report:

□Excellent □Good □Average □Fair □Poor

Shandong Provincial Circular Economy Association Member

3. Your evaluation of the clarity accuracy and completeness of the information and data disclosed in this report:

□Excellent □Good □Average □Fair □Poor

Shandong Low-Altitude Economy Association Member

4. Your assessment of the Company's performance in fulfilling its responsibilities as reflected in this report:

* Environmental responsibility: □ Excellent □ Good □ Average □Fair □Poor

Shandong Provincial Marine Industry Association Member * Social responsibility: □ Excellent □ Good □ Average □Fair □Poor

* Governance responsibility: □ Excellent □ Good □ Average □Fair □Poor

Weihai Industrial Design Association President

5. What are your thoughts on the content layout and design of this report

□Excellent □Good □Average □Fair □ Poor

Weihai Carbon Fiber and Composite Materials Industry Chain Alliance Chairman

6. To what extent do you believe the information disclosed in this report addresses your concerns about the Company

□ Excellent □ Good □ Average □ Fair □ Poor

Our contact information: 7. What information would you like to see disclosed that is currently missing

_________________________________________

* Company Address: 130 Tianjin Road High-tech Zone

Weihai City Shandong Province 8. Your comments and suggestions regarding our Company's environmental social and governance (ESG) work and

* Company Email: info@gwcfc.cn reporting. Please provide: ________________________________________

* Contact Number: 0631-5298586

163164

Appendix