stock code：300850

Tel:0379-62811096

Fax:0379-62811095

E-mail: xql@lyxql.com.cn Luoyang Xinqianglian

Address: No. 8 Yingyun Road Luoxin Zone Economic and Technological

Development Zone Xin’an County Luoyang City Henan Province Slewing Bearing Co. Ltd.Content

01 Luoyang Xinq ianglian Slewing Bearing Co. Ltd. 1 7 Solid Foundation through Quality & Efficiency People-Oriented 01 About This Re port Governance Right Con- 45 Synergy & Win-Win 67 Empowering Sym-duct through Compliance biosis

03 Chairman's Messa ge

19 Party Building Guidance 47 Innovation-Driven 69 Employee Rights and

05 Introduction to X inqianglian

Interests Prot ection

20 Corporate Governance 53 Product Safety and Service Quality 73 Employee Training 11 Sustainability Governance and Development

21 Investor Relations Management and 60 Data Security and Customer Privacy Protection 76 Occupational Health and Shareholders’Rights and Interests Safety

27 Business Ethics 62 Responsible Supply Chain 82 Community Welfare

31 Green & Smart Growth for a Low-Carbon Future Appendix

83 Indicator Index

33 Climate Action 86 Key Performance Indicator (KPI)

36 Environmental Management 91 Feedback Form

41 Resource Management

44 Ecosystem and Biodiversity ConservationLuoyang Xinqianglian Slewi n g Bearing Co. Ltd. About This Report Chairman's Message Introduction to Xinqianglian Sustainability Governance

About This Report Report Quality Assurance

This report is the first Sustainability Report released by Luoyang Xinqianglian Slewing Bearing Co. Ltd. (hereinafter The Company endeavors to ensure the completeness materiality balance and comparability of the report’s content

referred to as“ Xinqianglian”“ the Company” or“ we”). Based on the principles of objectivity standardization trans- systematically elaborating on its philosophies systems actions and performance in pursuing development econom-

parency and comprehensiveness this report details the Company’ s environmental social and governance practices ic ecological and social progress. It ensures that the content of this report is objective accurate and complete free

and performance for the year 2025. from any false records misleading statements or material omissions. Through the release of this report the Company

aims to improve its social responsibility management level strengthen communication with stakeholders and

Report Scope promote its sustainable development.This report covers Luoyang Xinqianglian Slewing Bearing Co. Ltd. (the “Company”) as the main reporting entity Explanation of Terms

including its subsidiaries. Unless otherwise specified the scope of this report is consistent with that of the Company’s

Annual Report. This report is published on an annual basis.Definition Entry Explanation

Time Frame Xinqianglian、the Company、we Luoyang Xinqianglian Slewing Bearing Co. Ltd.Shengjiu Forging Luoyang Shengjiu Forging Co. LtdThe Reporting Period covered by this report is from January 1 2025 to December 31 2025 (referred to as the“ Re-Haipusen Luoyang Haipusen High Precision Rolling Element Co. Ltd.porting Period”). To enhance the comparability and forward-looking nature of this report some sections may appro-

priately include retrospective data from previous years or contain forward-looking statements. Haozhi Machinery Luoyang Haozhi Machinery Co. Ltd

Xinqianglian Heavy Industry Xinqianglian (Jiangsu) Heavy Industry Technology Co. Ltd

Compilation Basis

Xinsheng New Energy Luoyang Xinsheng New Energy Co. Ltd

Shenzhen Stock Exchange: Self-Regulatory Guidance No. ? for Companies Listed on the ChiNext Market of Shenzhen

Stock Exchange—Preparation of Sustainability Report

Self-Regulatory Guidelines No. ?? for Companies Listed on Shenzhen Stock Exchange—Sustainability Report (For Report Acquisition

Trial Implementation)

This report is published in an electronic version. You can access the electronic version by visiting the Company’s official

China Enterprise Reform and Development Research Association：China Enterprise Sustainability Report Guidelines

(CASS-ESG?.?) website (https://lyxqlbearing.com.cn/) or by browsing the Shenzhen Stock Exchange website (www.szse.cn) and

Juchao Information website (www.cninfo.com.cn). For any questions or suggestions regarding this report please

Global Reporting Initiative ：GRI Sustainability Reporting Standards (GRI Standards) email us at xql@lyxql.com.cn or call us at 0379-62811096.United Nations Sustainable Development Goals (SDGs)

IFRS S? General Requirements for Disclosure of Sustainability-related Financial Information Feedback

Data Statement If you have any comments or suggestions regarding the Company’s sustainable development you are welcome to

share your feedback through the following contact methods to help us continuously improve this report.The data sources used in this report include the Company’s actual operational raw data public data from government Company Tel: 0379-62811096 Company Fax: 0379-62811095

departments annual financial data internal statistical reports third-party questionnaire surveys and third-party Company Website: www.lyxqlbearing.com.cn Company Email: xql@lyxql.com.cn

evaluation interviews. The financial data in this report is presented in Renminbi (RMB). In the event of any discrepan- Address: No. 8 Yingyun Road Luoxin Zone Economic and Technological Development Zone Xin’an County Luoyang

cies with the Annual Report the Annual Report shall prevail. City Henan Province

01 02Luoyang Xinqianglian Slewi n g Bearing Co. Ltd. About This Report Chairman's Message Introduction to Xinqianglian Sustainability Governance

Chairman’s MessageDear Friends Plan” we have taken concrete actions to fortify the core customers such as Mingyang Smart Energy Sany rate citizen by promoting the employment of disabled

As time progresses new chapters continually unfold. In security of the high-end equipment industry chain Renewable Energy Envision Energy Goldwind and individuals veterans and female workers. Focusing on

2025 a year marked by accelerated breakthroughs in the providing reliable bearing products for critical sectors Windey but also enhance the overall competitiveness rural revitalization in Luoyang we have promoted the

domestic production of high-end equipment such as including wind power tunnel boring machines and of the industrial chain through technology sharing and construction of PV power stations in collaboration with

large slewing bearings Xinqianglian has consistently marine engineering equipment. production capacity coordination. In our international rural households and helped cherry growers expandadhered to its development philosophy of “Openness In terms of green development and low-carbon transi- expansion we consistently uphold the corporate sales channels adopting multiple measures to boostInclusiveness Cooperation and Win-Win.” While tion we have deeply embedded the “dual carbon” vision of “Bringing Xinqianglian to the World Letting farmers’ incomes. We actively engage in public welfaredeeply cultivating our core business and pursuing excel- goals into every aspect of our production and opera- the World Know Xinqianglian” actively exploring causesorganizing charitable donations and other

lence we have integrated social responsibility into our tions. By establishing subsidiaries to produce forgings international markets. We have earned recognition in social benefit activities conveying warmth and respon-

developmental DNA responded to the call of the times and rolling elements we have extended upstream in the the global market through high-quality products and sibility through concrete actions.with technological innovation and interpreted corpo- industrial chain effectively reducing logistics-related integrity-based service promoting our bearing brand Looking back on 2025 every achievement of the

rate value with concrete actions and a strong sense of energy consumption and carbon emissions. We have worldwide. Company would not have been possible without the

responsibility. On behalf of the Company and all employ- optimized production equipment by utilizing energy-ef- In the realm of employee growth and value sharing we trust and support of our customers suppliers inves-ees I would like to extend our sincere gratitude to ficient machinery and circulating water systems. Lever- firmly believe that “talent is the Company’s most tors and friends from all sectors nor without the hardfriends from all walks of life who have consistently cared aging our core strength in wind power bearings our valuable asset.” We continuously improve our talent work and dedication of every Xinqianglian employee.for and supported us. products support downstream wind turbine manufac- development system by establishing training models Looking ahead Xinqianglian is willing to work hand in

In 2025 we remained steadfast in our development goal turers injecting strong momentum into the global clean involving university-industry collaboration internal hand with all partners investors and the widerof “Supporting High-End Equipment with Precision energy transition. Our subsidiary Xinsheng New Energy practical training and technological project tackling community. We will remain true to our original aspira-Manufacturing and Contributing to Dual Carbon Goals is actively expanding its photovoltaic (PV) + energy allowing our core technical personnel to enhance their tion and forge ahead courageously jointly writing awith Green Production Capacity” moving forward with storage business offering low-carbon distributed and value through innovative practices. The Company has new chapter in the sustainable development of

determination on the path of social responsibility. With digital PV energy solutions to clients across various optimized its compensation benefits and incentive high-end equipment supported by precision manufac-

strong technological capabilities and the ability to industries supporting their transition to a low-carbon mechanisms advanced the standardization of safe turing and contributing even greater strength to indus-

conduct independent R&D and industrialization the green model. production and created a safe inclusive and diverse trial upgrading and social progress!

Company has achieved breakthroughs in several key Regarding industrial chain win-win and ecosystem working environment for employees ensuring that the Thank you all.processes. Core products such as main shafts for wind co-construction we have joined hands with upstream fruits of the Company’s development are shared with

turbines and main bearings for tunnel boring machines and downstream partners to build a stable and sustain- them. Luoyang Xinqianglian Slewing Bearing Co. Ltd.have reached internationally advanced levels. Actively able industrial ecosystem. Facing industry opportuni- Regarding our social responsibility and public welfareresponding to the call of the national “15th Five-Year ties we not only solidify long-term cooperation with initiatives we proactively fulfill our duties as a corpo- Chairman：03 04Luoyang Xinqianglian Slewi n g Bearing Co. Ltd. About This Report Chairman's Message Introduction to Xinqianglian Sustainability Governance

Introduction to Xinqianglian Corporate Culture

Company Profile

Luoyang Xinqianglian Slewing Bearing Co. Ltd. (hereinafter referred to as “Xinqianglian”) was established in 2005.In July 2020 the Company was listed on the ChiNext Market of the Shenzhen Stock Exchange (stock abbreviation:

“Xinqianglian” stock code: 300850). Located in the Luoxin Industrial Park Xin'an County Economic and Technologi-

cal Development Zone Luoyang City Henan Province—a historic capital of nine dynasties—the Company is a national

high-tech enterprise. Xinqianglian is dedicated to advancing the domestic substitution process for wind power

bearings. Its main products include wind turbine main shaft bearings yaw bearings pitch bearings slewing bearings

for marine engineering equipment cranes tunnel boring machine (TBM) bearings and key components gearbox Vision Mission

bearings and components wind turbine locking discs wind turbine high-speed couplings as well as rolling elements

for slewing bearings slewing bearing cages and industrial forgings. Focusing on the R&D manufacturing and sales of

bearing products the Company serves industries such as wind power generation marine engineering equipment and Bringing Xinqianglian to the World

TBM equipment. Innovation Shapes the FutureLetting the World Know Xinqianglian

In terms of product portfolio the Company’wind power bearing products cover main shaft bearings yaw bearings

pitch bearings gearbox bearings and other key components for wind turbines market position is at the forefront of

the industry. In the marine engineering equipment sector the Company’s independently developed products such as

the integral slewing bearing for full-revolving floating cranes and the split slewing bearing for wind power installation

vessels have achieved industry-leading technological levels successfully breaking long-standing foreign technologi-

cal monopolies and establishing a prominent market advantage. Regarding TBM bearings the Company has made

multiple significant breakthroughs in the field of ultra-large TBM main bearings and key components forming stable

and in-depth cooperative relationships with leading industry customers.In technology R&D the Company and its subsidiaries hold 160 patents including 33 invention patents. It has partici-pated in formulating the national machinery industry standard “Rolling bearings—Main bearings for tunnel boringmachines” and was awarded the second prize of the “China Machinery Industry Science and Technology Award” for

its project “Development and Application of Series Main Bearings for Tunnel Boring Machines.” Representative Quality Policy

achievements include a 14-meter diameter class ultra-large TBM main bearing a 12MW offshore anti-typhoon main Values

bearing and an 18-meter diameter class split three-row cylindrical roller slewing bearing for a 3500-ton crane. Multi-

ple products and technologies have been recognized as internationally advanced. The Company has been honored as Market-Oriented Customer-Centric

a “National Intellectual Property Advantage Enterprise”“Henan Provincial Manufacturing Individual Champion Customer Satisfaction isEnterprise”and a “Henan Province Manufacturing Single Champion Enterprise” underscoring its technological Practical and Realistic Cooperation

strength and industry influence. Xinqianglian’s Eternal Pursuit

Facing the domestic market while reaching out to the world Xinqianglian consistently keeps pace with the national and Win-Win

strategic emerging industries that are prioritized for cultivation and development. The Company actively researches

and develops high-end equipment supporting products and continuously promotes the optimization and upgrading

of its product structure. Leveraging its exceptional technology quality and service and against the backdrop of

economic globalization and the implementation of the Belt and Road Initiative Xinqianglian guided by its develop-

ment philosophy of “Openness Inclusiveness Cooperation and Win-Win” is steadily advancing its internationaliza-

tion strateg.

05 06Luoyang Xinqianglian Slewi n g Bearing Co. Ltd. About This Report Chairman's Message Introduction to Xinqianglian Sustainability Governance

Development History

Taking Shape: A Promising Start Continuous Improvement In September 2023 the Company issued shares to

Achieving Grand Ambitions specific investors and paid cash to purchase assets and raise matching funds. Upon completion of this

transaction Shengjiu Forging became a whol-

2005-2011 2020-2025 ly-owned subsidiary from a controlling subsidiary.

In 2023，the Company comprehensively built a digital

In August 2005 Luoyang Xinqianglian Slewing Forging Ahead with Determination In 2020，Xinqianglian was successfully listed on the management platform carrying out digitalization Bearing Co. Ltd. was established with its head- ChiNext Market of the Shenzhen Stock Exchange. The construction for internal management manufactur-

quarters settling in the Luoxin Industrial Park Building a Brand proceeds from its initial public offering were primarily ing and other scenarios.Xin'an County Economic and Technological Devel- used for the construction project of bearings for large

opment Zone Luoyang City. Henan Province 2012-2019 capacity wind turbine generators rated at 2.0MW and In February 2024 established Luoyang Haipusen High focusing on the R&D manufacturing and sales of above and to supplement working capital. This Precision Rolling Elements Co. Ltd. successfully

large-scale slewing bearing products. became a significant milestone for the Company ush- achieving self-supply of rolling elements further

On January 16 2012，received the Enterprise Legal ering in a new phase of large-scale expansion and enhancing cost control and quality assurance. At the

Person Business License issued by the Luoyang global strategic positioning empowered by capital. same time established Luoyang Da Vinci Precision In 2008，successfully supplied thin-section slewing Administration for Industry and Commerce mark- Bearings Co. Ltd. focusing on the R&D and manufac-

bearings for Ferris wheel cabins to the French ing the official establishment of Luoyang Xinqian- In August 2021 the Company issued shares to specific turing in the field of gearbox bearings.company POMA and provided marine crane slewing glian Slewing Bearing Co. Ltd. and the successful investors. The funds raised were mainly used for the In 2024，established Luoyang Xinqianglian Import and

bearings for Japan’s IHI brand achieving the first completion of the Company’s joint-stock reform. construction of bearing production lines supporting Export Co. Ltd. focusing on exploring overseas mar-

breakthrough in overseas high-end markets. 3.0MW and above high-power wind turbines the R&D kets.In 2013，Luoyang Shengjiu Forging Co. Ltd. estab- center construction project and to supplement work- In 2024，successfully developed an ultra-large TBM

In 2009，invested RMB 200 million to build a wind lished through investment commenced opera- ing capital. main bearing with a diameter of 14 meters class

power bearing production line. Developed the tions achieving self-sufficiency in forging supply In December 2021 the Company acquired Luoyang receiving a Scientific and Technological Achievement

then-largest domestically produced three-row and laying the foundation for subsequent cost Haozhi Machinery Co. Ltd. formally entering the field Identification Certificate from the Henan Society of

s lewing bearing with an outer diameter of control and production capacity assurance. of wind turbine couplings and locking discs achieving Mechanical Engineering filling a domestic gap.

6210mm. Successfully entered the tunnel boring a strategic breakthrough in the key components busi- In July 2024 launched an 18-meter diameter class

machine (TBM) field with the official delivery of In 2017，successfully developed China’s largest ness for wind turbines. split three-row cylindrical roller slewing bearing for a

TBM turntable bearings for China Railway Engi- diameter three-row cylindrical roller slewing 3500-ton crane reaching an international ly

neering Equipment Group establishing a founda- In 2022，the Company issued convertible corporate bearing with a diameter of 10 meters.tional position in the high-end equipment support- bonds to unspecified objects. The funds raised were

advanced level.ing industry. primarily allocated for the gearbox bearings and pre- In October 2025 the project Key Technology R&D and In 20018，approved to establish the“ Henan Prov- cision components project and to supplement work- Industrialization of Extra-Large Turntable Bearingsince Engineering Research Center for High-Power ing capital. was awarded the second prize of the Science andIn 2011，successfully developed and installed the Offshore Wind Turbine Main Shaft Bearings.” Technology Progress Award jointly presented by the

2MW direct-drive wind turbine three-row cylindri- In 2023，participated in formulating the national ma- China Machinery Industry Federation and the Chinesecal roller main bearing marking the Company’s chinery industry standard“ Rolling bearings—Main Mechanical Engineering Society.technological breakthrough in the field of core In 2019，successfully developed medium-carbon bearings for tunnel boring machines.”

alloy steel medium frequency quenching technolo- In December 2025 the Company proposed to apply wind power components. In 2023，delivered a TBM main bearing with a diame-

gy without soft bands. for issuing shares to specific investors. The funds ter. raised are primarily intended for the construction

In April 2023 established Xinqianglian (Jiangsu) project of 6MW and above high-power wind turbine

Heavy Industry Technology Co. Ltd. primarily main bearings yaw and pitch bearings and compo-

focused on manufacturing core precision equipment nents and to supplement working capital.for large offshore wind turbines supporting marine

engineering equipment and large tunnel boring ma-

chines.

07 08Luoyang Xinqianglian Slewi n g Bearing Co. Ltd. About This Report Chairman's Message Introduction to Xinqianglian Sustainability Governance

Company Honors 2025 MilestonesOn February 8 the“ Three-Row Cylindri-cal Roller Main Shaft Bearing for WindTurbines” was recognized as a Patent

Intensive Product by the Patent Protec-

tion Association of China comprising 8

invention patents and 8 utility model pat-

On February 13 the Department of ents.Science and Technology of Henan

P r o v i n c e i s s u e d t h e N o t i c e o n

Announcing the List of Henan Provin-

cial Innovative Leading Enterprises in

which the Company was recognized as

a Henan Provincial Innovative Leading

2025 Henan Province First Set (First Unit) Goldwind Green Supplier Enterprise (with a validity period of

of Major Technical Equipment Designation three years from 2025 to 2027).China Railway Engineering Equip- On February 26 the China Bearing Industry

ment Group Tunneling Boring Ma- Association organized experts in Luoyang

chinery Co. Ltd. awarded the Com-pany the honor of“ 2024 Excellent to appraise the achievements of Xinqiangli-Supplier.” an’s “Research and Application of KeyTechnologies for Main Shaft Bearings ofOffshore High-Power Wind Turbines”

project. The expert panel concluded that“the project holds independent intellectu-al property rights demonstrates strong

Henan Provincial Innovative Leading Enterprise Second Prize of Scientific innovation in key generic technologies for

and Technological main shaft bearings of high-power offshore

Progress Award wind turbines and has reached an interna-tionally advanced level overall.”T h e“ 1 4 - m e t e r d i a m e t e r c l a s sultra-large TBM main bearing (Φ

7.6m)” by Luoyang Xinqianglian

Slewing Bearing Co. Ltd. was namedamong the“ 2024 Luoyang Top TenSymbolic High-End Equipment in theEquipment Manufacturing Industry.”

This marks the second consecutive

year the Company has received this

honor.First Prize of Henan Province National Intellectual Property 2025 Strategic Partner of

Machinery Industry Science and Advantage Enterprise Dongfang Electric

Technology AwardOn September 11 the Company’s “18-me-On October 17 the“ Qianglian Con- ter diameter class split three-row cylindri-vertible Bonds” (Bond Code: 123161) cal roller slewing bearing for a 3500-ton

issued by the Company were delisted

from the SZSE. As the early redemp- crane" was designated as a 2025 Henan

tion condition was triggered the Province First Set (First Unit) of Major Tech-

“Qiangl ian Convert ible Bonds” nical Equipment by the Department of

ceased trading on September 26. Industry and Information Technology of

After the completion of the ful l Henan Province and the Department ofMingyang Smart Energy Mingyang Smart Energy Goldwind 2025 Outstanding Goldwind 2025 Outstanding redemption no“ Qianglian Convert-

2025 Innovation 2025 Strategic Supplier Innovation Award Innovation Achievement ible Bonds” remained in circulation Finance of Henan Province.

Excellence Award Award or trading.

09 10Luoyang Xinqianglian Slewi n g Bearing Co. Ltd. About This Report Chairman's Message Introduction to Xinqianglian Sustainability Governance

Sustainability Governance Double Materiality Assessment

To further promote the Company’s sustainable development and strengthen strategic synergy the Board of Directors The Company places significant emphasis on the management and assessment of ESG issues and their double materi-

has established a Strategy and ESG Committee. This integrates ESG governance concepts with the Company’s actual ality conducting regular materiality issue identification and analysis. In accordance with the Self-Regulatory Guide-

operations building a governance model that aligns with international standards while reflecting the Company’s lines No. ?? for Companies Listed on Shenzhen Stock Exchange—Sustainability Report (For Trial Implementation) and

unique characteristics. with reference to the Global Reporting Initiative (GRI) Standards mainstream rating agency criteria (such as MSCI ESG

Ratings) and the Sustainability Accounting Standards Board (SASB) Standards the Company periodically compilesThe Company has established a three-tier ESG governance structure comprising the “Decision-Making Level and summarizes annual material issues. This is achieved through methods including discussions within internal ESGManagement Level and Execution Level” with clear responsibilities defined for each tier. Through the strategic working groups external consultations and stakeholder questionnaires. Considering the characteristics of the wind

decisions and guidance of the Board of Directors the overall planning and coordination of the Strategy and ESG power equipment components industry the Company analyzes and confirms both the “impact materiality” and

Committee and the implementation of specific tasks by various departments and subsidiaries the Company has “financial materiality” of each issue. Identified material issues are then ranked according to double materiality to

forged a closely linked and highly efficient governance chain. This optimizes the top-down responsibility transmission form a Double Materiality Matrix thereby advancing the Company’s ESG strategic development.and supervision system effectively standardizing the management of ESG work. Concurrently the Company regularly

conducts specialized exchanges and business optimization follow-ups with external experts on key issues steadily

advancing its ESG governance practices. Identification of Stakeholder Impact Importance Financial Impor-Potential Issues Research Analysis tance Analysis Materiality Matrix

Annually review and summarize the Company’s progress on environmental Materiality Assessment Process

Decision- Main social and governance (ESG) goals for the year; regularly communicate

Making Respon- progress; and based on this progress arrange key tasks and objectives for

Level sibilities ESG work in the following year.Review and study the Company’s ESG goals and plans ESG governance

structure and related systems relevant policies in the ESG field ESG Identification of Potential Issues

Manage- Strategy and ESG reports ESG-related information disclosure documents and other ment Committee matters and submit recommendations to the Board of Directors; identify Level and supervise ESG-related risks and opportunities that have a significant The Company begins with the 21 issues outlined in the Self-Regulatory Guidelines No. ?? for Companies Listed on Shen-

impact on the Company’s business and guide management in adopting zhen Stock Exchange—Sustainability Report (For Trial Implementation). By integrating other sustainability disclosure

appropriate response measures to ESG risks and opportunities. standards applicable to Xinqianglian industry standards and peer analysis the Company identifies sustainability

issues relevant to its operations forming an ESG issue list aligned with the Company’s strategic objectives.Execution Functional Departments and Responsible for carrying out ESG management work and imple-

Level Subsidiaries menting the Company’s sustainable development strategy.Stakeholder Survey

In addition to ongoing communication with various stakeholders during daily operations the Company also con-

ESG Training ducted surveys using questionnaires. These surveys targeted a wide range of stakeholders including members of the Board of Directors heads of functional departments and subsidiaries employees suppliers customers to gauge

The Company consistently regards ESG management as a core strategic pillar for achieving sustainable development their level of concern and perspectives on each issue. We collected over 170 valid responses.and places high importance on the construction and practical implementation of the ESG system. To deepen all employ-

ees’ understanding of ESG concepts build a consensus for development and ensure all work is carried out in compliance

and an orderly manner the Company regularly organizes specialized ESG training sessions. These sessions invite indus-

try professional lecturers to participate laying a solid foundation for the Company to align with policy directions meet

market and customer demands attract green capital and enhance its brand image. This helps the Company achieve Impact Materiality Analysis

high-quality sustainable long-term development while fulfilling its social responsibilities.Case Study ESG Empowers Long-Term Development: Xinqianglian’s Special Training Practice By analyzing the survey results the Company ranked the impact materiality of each issue based on factors such as

the degree of stakeholder concern the scale of impact and the scope of impact.To promote the implementation of its sustainable development strategy

meet the ESG compliance requirements of domestic and international

customers’supply chains and deepen all personnel’s understanding and

practice of Environmental Social and Governance (ESG) work on

December 10 2025 the Company engaged external experts to hold a

special ESG training meeting. Participants included over 20 heads from

various core departments and subsidiaries. This training effectively

strengthened management and execution layers’understanding and

management of ESG helped enhance the Company’s brand image and

laid a solid foundation for the Company’s ESG information disclosure ESG Training Session

long-term development and fulfillment of social responsibilities.

11 12Luoyang Xinqianglian Slewi n g Bearing Co. Ltd. About This Report Chairman's Message Introduction to Xinqianglian Sustainability Governance

Double Materiality Matrix Stakeholder Communication

By integrating the analysis results of both impact materiality and financial materiality the Company developed a Xinqianglian pays close attention to the rights and interests of its stakeholders including customers shareholders

Double Materiality Matrix. Issues identified as having double materiality include: Climate Action Product and Service employees suppliers government and the community. It systematically gathers and effectively responds to their

Safety and Quality Supply Chain Security Innovation-Driven and Occupational Health and Safety among others. key concerns related to environmental social and governance (ESG) issues.Double Materiality Issues Matrix Stakeholders Stakeholder Concerns Communication Channels and Frequenc

Shareholders’ Meeting (Annual and ad hoc)

Compliance in Operations

Product and Service Safety and Quality Performance Briefing (Annual)

Pollutant Discharge Business Ethics Annual/Half-Year/Quarterly Reports (Regular)

Data Security and Internal Control

Customer Privacy Environmental Shareholders Other Temporary Announcements (ad hoc)

Anti-Commercial Protection Compliance Management

Bribery and Waste Management Occupational Health and Safety

Technological Innovation

Anti-Corruption Investor Exchange Meetings (ad hoc)Anti-Unfair Competition

rural Environmental Compliance

revitalization Water Resource Utilization Interactive Easy Platform (Real-time)

Innovation-Driven Social Responsibility

Stakeholder Communication Energy Utilization Investor Hotline Email and Official Website (ad hoc)

Protection of Employees’

Rights and Interests

Circular Economy Tax Compliance

Social Contribution Climate Action Disclosure in Regular and Temporary Announcements (ad hoc)

Employee Training Social Responsibility

Due Diligence and Development Government and Regulatory Assessments (Annual)

Regulatory Bodies Environmental Compliance Telephone and Email (ad hoc)

Supply Chain Security Climate Action

Product Quality

Data Security

Equal Treatment of Small and Medium Enterprises On-site Communication (ad hoc)

Technological Innovation

Customers Customer Satisfaction Survey (Regular)

Ecosystem and Biodiversity Conservation Sustainable Supply Chain

Telephone and Email (ad hoc)

Customer Service Quality

Scientific and Technological Ethics

Environmental Compliance

Employee Welfare

Employees’ Congress (Annual)

Financial Materiality Occupational Health and SafetyEmployees Face-to-face Communication (ad hoc)

Talent Development

Employee Satisfaction Survey (Annual)

Diversity and Equality

Community and Social Responsibility Charitable Donations (Annual and ad hoc)

Public Welfare Environmental Compliance

Organizations Exchanges and Visits (ad hoc)Occupational Health and Safety

Sustainable Supply Chain

Business Visits (ad hoc)

Suppliers Integrity in Supply Chain Telephone and Email Communication (ad hoc)

Product Quality

Industry Associa- Technological Innovation Industry Conferences (ad hoc)

tions and Research

Organizations Occupational Health and Safety Site Visits (ad hoc)

Social Responsibility Media Interviews (ad hoc)

Media

Compliance in Operations Telephone and Email (ad hoc)

1314

very important Impact MaterialitySustainability Goals

Xinqianglian pursues sustainable corporate operations and responds to the United Nations Sustainable Develop-

ment Goals (SDGs). By closely aligning its corporate development with the SDGs the Company is committed to its

own sustainable growth while contributing to the global sustainable development process.

1 Community Engagement Innovation-Driven 9

Making donations to charitable organizations and sports events and supporting local specialty industries. By building a high-level open platform for scientific and technological innovation and a comprehen-

sive innovation system the Company conducts technological innovation research and tackles key

technologies through methods such as independent R&D and collaborative R&D. This has yielded a

number of advanced achievements with independent intellectual property rights effectively trans-

forming scientific and technological achievements into new quality productive forces.

3 Occupational Health and Safety

Through the EHS system implementing four-level management

responsibilities conducting graded risk control and hidden danger Employee Rights and Interests Protection 10

management regularly organizing safety training emergency drills Embracing and accepting employee diversity irrespective of religion nationality

and occupational health check-ups and standardizing the occupa- marital status gender or disability status.tional safety of hazardous chemicals and related parties.

5 Community Engagement Product Safety and Service Quality 12

Protecting the legitimate rights and interests of female employees The Company implements measures such as tiered eco-friendly packag-

and upholding equal pay for equal work. ing for its products the recovery and reuse of tooling and standardized

loading. These actions facilitate efficient material utilization ensure

safe management and promote a green circular economy.

6 Water Resource Utilization Resource Management 13

By recycling production water for reuse recovering cleaning solutions Continue to strengthen greenhouse gas emission reductions actively

ensuring compliant discharge of domestic sewage and identifying develop renewable energy and accelerate the establishment of low-car-

potential sources of waste the Company has established a compre- bon value chains.hensive end-to-end water resource control system pursuing a

win-win outcome between development and ecological protection.

7 Resource Management Business Ethics 16

By implementing energy-saving retrofits and promoting clean By regulating conduct through internal integrity policies employee commit-

energy the Company has created a green operation model to achieve ments risk assessments and anti-corruption clauses for suppliers the Company

efficient energy utilization. fortifies its defenses for business ethics.

8 Employee Training and Development Innovation-Driven 17

By enhancing skills through tiered and specialized training and establishing five career paths including Establishing close cooperative relationships with domestic and international partners universities

management and technical tracks the Company ensures that employees have broad prospects for career and research institutions to jointly promote the sustainable development of the industry.development.

15 16Solid Foundation through

Governance Right Con-

duct through Compliance

19202127

Party Building Corporate Governance Investor Relations Business Ethics

Guidance Management and

Shareholders’Rights and

Interests

2025 Sustainability ReportLuoyang Xinqianglian Slewi n g Bearing Co. Ltd. Party Building Guidance Corporate Governance Investor Relations Management and Shareholders’Rights and Interests Business Ethics

Party Building Guidance Corporate Governance

Organizational Development Governance Structure

Xinqianglian consistently adheres to the guidance of Xi Jinping Thought on The Company strictly complies with the Company Law of the People’s Republic of China the Securities Law of the

Socialism with Chinese Characteristics for a New Era fully implements the People’s Republic of China the Listing Rules of the ChiNext Market of Shenzhen Stock Exchange and other relevant

general requirements of Party building in the new era and the organizational regulations. It has formulated the Articles of Association of Luoyang Xinqianglian Slewing Bearing Co. Ltd.and other

line of the Party in the new era deeply integrates the leadership of the Party supporting internal control systems to improve its internal corporate governance structure enhance internal manage-

into all aspects of corporate governance and embeds it into the entire ment systems and standardize corporate conduct. The Company clearly defines the responsibilities and authorities for

process of enterprise development. It strengthens the foundation of Party decision-making execution and supervision and has established a corporate governance framework consisting of the

building with high standards and standardized organizational construction Shareholders’ Meeting the Board of Directors and the Management forming a mechanism of clear responsibilities standardized operations and mutual checks and balances.providing solid political and organizational guarantees for the Company to

practice the concept of sustainable development and achieve high-quality The Company’s governance structure designates the Shareholders’Meeting as the highest authority exercising powers

development. At the same time the Company continuously improves and such as electing directors approving profit distribution capital increases or reductions mergers and divisions.perfects its Party building system focusing on key areas such as the rules for Ordinary resolutions require approval by a majority of voting rights while special resolutions require approval by

Party organizations to deliberate the development and education manage- two-thirds or more. The Board of Directors serves as the decision-making body composed of 7 directors (including 1

ment of Party members and anti-corruption and integrity building. It refines employee representative director). The Chairman of the Board is elected by a majority of the directors. The Board has

system provisions clarifies work standards and standardizes implementa- established special committees including the Audit Committee the Strategy and ESG Committee the Nomination

tion processes solidifying the achievements of Party building through Committee and the Remuneration and Appraisal Committee. Independent directors are required to maintain indepen-

institutionalization. This ensures that the leadership role of Party organiza- dence and exercise special functions and powers. Senior management (General Manager Deputy General Managers

tions in setting the direction managing the overall situation and ensuring etc.) are appointed by the Board and are responsible for daily operations and management.implementation’ is fully brought into play promoting the organic integra- Organizational Chart of the

tion and coordinated effort of Party building and corporate governance Company’s Party Branch

mechanisms. It empowers the Company’s development with the soft Shareholders’ Meeting

strength of Party building providing robust support for its hard infrastruc-

ture. The Company’s Shareholders’Meetings are classified into annual and extraordinary meetings. The convener shall notify all shareholders by public announcement at least twenty days prior to the annual shareholders' meeting and fifteen

days prior to the extraordinary shareholders' meeting. The regulations stipulate that shareholders can vote through

Party Building Practices on-site and online methods related shareholders must abstain and the votes of small and medium investors are counted separately. Ordinary and special resolutions are passed according to the corresponding proportion of voting

rights. The meeting requires the engagement of a lawyer to issue a legal opinion. Resolutions and legal opinions are

During the Reporting Period the Company’s Party branch solidly advanced various Party-building tasks focusing on publicly announced promptly after the meeting. Meeting minutes are organized and archived by the Secretary of the

integrating theoretical study with practical implementation. It fully implemented the decisions and deployments of Board and must be kept for no less than ten years. This comprehensive system ensures the standardized and efficient

higher-level Party organizations strengthened ideological guidance among Party members through regular study operation of the Shareholders’Meeting. During the Reporting Period the Shareholders’ Meeting operated in a standard-

sessions and enhanced the cohesion and combat effectiveness of the Party organization. In terms of practical activi- ized manner with efficient decision-making effectively safeguarding the legitimate rights and interests of shareholders

ties the Company effectively promoted the organic integration of Party-building work with production operations and and providing solid decision-making support for the Company’s stable development and the implementation of its ESG

the fulfillment of social responsibilities through a series of Party-building initiatives injecting red momentum into the strategy.Company’s sustainable development.During the Reporting Period，Case Study Party Day Activity with the Theme“ Inheriting the Red Gene and Bravely Undertaking the Mission of Development” the Company convened 2 Shareholders’Meetings comprising 1 annual Shareholders’ Meet-

ing and 1 extraordinary Shareholders’Meeting. A total of 13 proposals were reviewed and

On July 4 2025 the Company’s Party branch organized its Key Performance

members to visit the Xi Zhongxun Memorial Museum in Luoy- approved at these meetings.ang for a study tour reflecting on the firm ideals and beliefs

tenacious fighting spirit and lofty revolutionary sentiments

of the older generation of proletarian revolutionaries. At the

same time the company’s Party members conducted a Board of Directors

thematic study and discussion centered on the important

speech delivered by General Secretary Xi Jinping during his The Company’s Board of Directors strictly adheres to the Rules of During the Reporting Period

inspection in Henan. At the end of the event all Party mem- Procedure for Board of Directors and relevant laws and regulations

bers solemnly reaffirmed their admission vows expressing to ensure standardized operation. As the Company’s decision-mak- the Company convened 7

their loyalty to the Party and their unwavering determination ing body the Board is composed of seven directors (including one

to strive for the cause of communism for life. employee representative director and three independent direc- Board of Directors meetings

tors). It has one Chairman who is elected by a majority of all direc- Key

tors. The Board fulfills its decision-making responsibilities through Performance at which a total of 39pro-Themed Party Building Activity Photo regular meetings and extraordinary meetings ensuring scientific posals were reviewed and

decision-making for the Company’s operational management and

strategic development. approved.

19 20rate citizen by promoting the employment of disabled

individuals veterans and female workers. Focusing on

rural revitalization in Luoyang we have promoted the

construction of PV power stations in collaboration with

rural households and helped cherry growers expand

sales channels adopting multiple measures to boost

farmers’ incomes. We actively engage in public welfare

causesorganizing charitable donations and other

social benefit activities conveying warmth and respon-

sibility through concrete actions.Looking back on 2025 every achievement of the

Company would not have been possible without the

trust and support of our customers suppliers inves-

tors and friends from all sectors nor without the hard

work and dedication of every Xinqianglian employee.Looking ahead Xinqianglian is willing to work hand in

hand with all partners investors and the wider

community. We will remain true to our original aspira-

tion and forge ahead courageously jointly writing a

new chapter in the sustainable development of

high-end equipment supported by precision manufac-

turing and contributing even greater strength to indus-

trial upgrading and social progress!

Thank you all.Luoyang Xinqianglian Slewi n g Bearing Co. Ltd. Party Building Guidance Corporate Governance Investor Relations Management and Shareholders’Rights and Interests Business Ethics

Special Committees of the Board of Directors Independence of the Board of Directors

The Company places high importance on the critical role of independent directors in corporate governance. In accor-

The Company has established four special committees: the Audit Committee the Strategy and ESG Committee the dance with laws and regulations such as the Opinions on the Reform of the Independent Director System for Listed

Nomination Committee and the Remuneration and Appraisal Committee. Corresponding rules of procedure have Companies the Administrative Measures for Independent Directors of Listed Companies and the Governance Guide-

been formulated for each committee. lines for Listed Companies the Company has formulated the Working System for Independent Directors. Through this

institutionalized approach the Company clarifies the responsibilities performance methods and safeguard mea-

During the Reporting Period sures for independent directors aiming to fully leverage their independence and professional expertise to effectively Establishment of Special Committees enhance the corporate governance level and the scientific nature of decision-making.the Company convened 3 Strategy and ESG

6 Special Committees Proportion of Independent Directors The Company strictly adheres to independence requirements and qualification standards. As of the end of the Committee meetings at which a total of Reporting Period the Board of Directors comprised 3 independent directors accounting for three-sevenths of the

Key Strategy and ESG Independent directors Board. The current independent directors are professionals in the fields of accounting law and engineering technol-

Performance proposals were reviewed and approved; 6 Committee account for 1/3 ogy possessing the necessary knowledge and experience to perform their duties.Audit Committee meetings at which a total of Independent directors

19 Audit Committee account for 2/3 (Chaired by During the Reporting Period the independent directors diligently fulfilled their duties participating deeply and com- proposals were reviewed and approved; an Independent Director) prehensively in corporate governance through various means including attending Board meetings engaging in the 1 Nomination Committee meeting at which a work of special committees issuing independent opinions and conducting site visits. Concurrently independent

1 Nomination Independent directors directors undertake significant responsibilities in the special committees under the Board such as the Audit Commit-total of proposal was reviewed and Committee account for 2/3 (Chaired by tee the Nomination Committee the Remuneration and Appraisal Committee and the Strategy and ESG Committee. 3 an Independent Director) They provide professional oversight and advice particularly in reviewing financial information supervising internal approved; and Remuneration and Appraisal

6 Independent directors controls selecting directors and senior management and formulating remuneration policies.Committee meetings at which a total of pro- Remuneration and Appraisal account for 2/3 (Chaired by

posals were reviewed and approved. Committee an Independent Director)

Directors’ and Senior Management’s Remuneration Man-

agement

Diverse Composition of the Board of Directors The Company adheres to a remuneration management philosophy that combines responsibility rights and interests

aligns with market conditions and ties rewards to the Company’s long-term interests continuously optimizing and

improving the remuneration management system for directors and senior management. According to regulations

The Company constructs its Board of Directors by taking full account of strategic development needs and the principle such as the Remuneration Management System for Directors and Senior Management and the Rules of Procedure for

of diversified selection. By continuously optimizing the Board’s composition across multiple dimensions including the Remuneration and Appraisal Committee of the Board approved by the Board remuneration plans for directors and

professional backgrounds and age structure the Company aims to continuously enhance the quality and effectiveness senior management are formulated reviewed and recommended by the Remuneration and Appraisal Committee.of the Board’s decision-making. The remuneration plan for non-independent directors and the subsidy standards for independent directors are imple-

mented after review and approval by the Board and the Shareholders’Meeting while the remuneration plan for senior

management is approved by the Board and explained to the Shareholders’ Meeting.Male 7 Persons Non-independent 4 Persons

Female 0 Person Directors Remuneration Management System for Directors and

Independent 3 Persons

Directors Senior Management

Gender PositionThe Company has established a standardized and transparent remuneration management system for directors and senior management guided by the core principles of “matching the Company’s scale and performance reflectingposition value and contribution maintaining market competitiveness and aligning with long-term development.”

According to the Remuneration Management System for Directors and Senior Management remuneration manage-

ment is coordinated by the Remuneration and Appraisal Committee which formulates assessment standards and

conducts appraisal work with implementation support from departments such as Human Resources and Finance

Center. The remuneration structure focuses on core incentives and safeguards with remuneration standards adjusted

based on the Company’s operating results market salary changes and strategic adjustments.Ages 41-50 4 Persons Master’s Degree 2 Persons

Ages 51-60 2 Persons Bachelor’s Degree 5 Personsor Below Remuneration and Sustainable Development

Age Ages 61-70 0 Person Education The Company places high importance on the deep integration of sustainable development with its operational man-

Ages 71-80 1 Person agement. In the future it will continue to promote the alignment of the senior management appraisal system with

Environmental Social and Governance (ESG) related goals. The Company plans to gradually incorporate more

assessment dimensions related to sustainable development into senior management KPIs. Through remuneration

incentives it aims to guide senior management to focus on long-term value creation encouraging the Company to

prioritize ecological environment protection employee rights and interests protection and social contribution while

Diverse Composition of the Board of Directors pursuing economic benefits.

21 22Luoyang Xinqianglian Slewi n g Bearing Co. Ltd. Party Building Guidance Corporate Governance Investor Relations Management and Shareholders’Rights and Interests Business Ethics

Investor Relations Management and Investor Relations Management

Shareholders’ Rights and Interests The Company has established a comprehensive investor relations management system. Centered on the Investor

Relations Management System it clearly defines the principles of compliance equality proactiveness and honesty

The Company places high importance on investor relations management and the protection of shareholders’rights and trustworthiness for investor relations management. It standardizes end-to-end requirements including the con-

and interests. Strictly complying with the requirements of relevant laws and regulations such as the Securities Law of tent and methods of communication implementation organization and file management. The system designates

the People’s Republic of China and the Administrative Measures for Information Disclosure of Listed Companies as the Secretary of the Board as the person responsible for investor relations management. The Board Office as the exe-

well as the Articles of Association of Luoyang Xinqianglian Slewing Bearing Co. Ltd. the Company has built a transpar- cuting body is equipped with dedicated staff to coordinate tasks such as investor communication demand process-

ent fair and efficient investor relations system. This is achieved by improving information disclosure systems ing and channel maintenance. It also requires regular systematic training for relevant personnel to ensure profes-

standardizing communication mechanisms and safeguarding shareholders’ participation rights effectively protect- sional competence in performing their duties.ing the legitimate rights and interests of all shareholders especially small and medium-sized investors. During the Reporting Period the Company conducted investor communication activities through multiple channels

Information Disclosure and in various formats.The Company has formulated the Information Disclosure Affairs Management System which clearly stipulates that During the Reporting Period

information disclosure must adhere to the fundamental principles of truthfulness accuracy completeness timeli-

ness and fairness. It covers the scope and standards for various types of information to be disclosed including regular Number of Investor Number of Site Visits for Investors Number of Participants in Site Visits

reports major events and related-party transactions. Regarding the management process the Board of Directors Reception Activities

provides unified leadership for information disclosure work clarifying the responsibilities of various information Key

disclosure obligors. After major information is approved by Board resolutions or relevant approval procedures Performance 15 Times 10 Times 88 Persons

announcements are promptly disclosed through the Shenzhen Stock Exchange website (www.szse.cn) or Cninfo

website (www.cninfo.com.cn). Regarding shareholder communication the Company ensures that shareholders Exchange Meeting Investor Calls Received Questions Answered on the Interac-

receive timely information about the Company’s operations and governance through channels such as information tive Easy Platformdisclosure announcements Shareholders’ Meetings and investor consultation hotlines ensuring the standardization

and effectiveness of communication. 1 Time 520 Calls 44 Responses

Capital Market Public Opinion Management Investor Email Inquiries

Replied to

The Company has established a standardized capital market public opinion management mechanism integrating

relevant management requirements into its policy documents such as the Investor Relations Management System

the Market Value Management System and the Public Opinion Management Policy. The Company has formed a Public 64 Inquiries

Opinion Handling Working Group (hereinafter referred to as the "Public Opinion Working Group") chaired by the

Chairman of the Board with the Board Secretary serving as the Deputy Head to provide unified leadership over the

Company's handling of various public opinion matters. The Board Office acts as the executive department leading Case Study Research Activity for Specified Investors

daily public opinion monitoring. The information collection scope encompasses various internet information carri-

ers including the official websites and WeChat official accounts of the Company and its subsidiaries online media

television radio WeChat Weibo investor interaction platforms (e.g. Interactive Easy) forums and stock discussion On October 23 2025 the Company organized a research and site visit

forums. This enables the timely capture of public opinion dynamics that may impact investor decisions or the Com- activity for specified investors combining both offline and online

pany's stock trading. participation. Core management personnel including the Chairman and the Secretary of the Board participated in the exchange providing

The Company categorizes public opinion information into major public opinion incidents and general public opinion detailed answers to investors’ questions regarding the Company’s

incidents. For general incidents the Board Secretary and the Securities Representative shall handle them flexibly production capacity product advantages and other areas of interest.based on specific circumstances. In the event of a major incident the Head of the Public Opinion Working Group shall Scene from the Research Activity

convene a meeting as appropriate to make decisions and deploy response measures thereby initiating emergency

protocols.Specific measures include: promptly investigating to ascertain the true facts of the incident; communicating timely

with the relevant media to prevent the situation from escalating; strengthening communication with investors fully

leveraging the investor relations interactive platform and effectively guiding and resolving concerns; and issuing

clarification announcements through channels such as Cninfo as necessary. For media that fabricate or disseminate

false or misleading information about the Company the Company will take measures such as issuing Lawyer's Let-

ters and initiating litigation to stop such infringing activities.Case Study “Public Opinion Management Training Session”

In November 2025 the Company organized and conducted a public opinion

management training session. Combining theoretical instruction case analysis

and practical drills the session effectively enhanced the team’s professional

capability in managing public opinion building a strong public opinion safety

barrier to support the Company’s high-quality development.Scene: Public Opinion

Management Training Session

23 24Luoyang Xinqianglian Slewi n g Bearing Co. Ltd. Party Building Guidance Corporate Governance Investor Relations Management and Shareholders’Rights and Interests Business Ethics

Shareholder Returns Compliant Operations

The Company upholds the bottom line of compliant operations and has established a comprehensive end-to-end

The Company places high importance on the protection of shareholders’ rights and interests and on providing compliance management system to ensure that all business activities are conducted in a standardized legal and

long-term returns. It has established a multi-tiered policy system related to shareholder returns. The Articles of Asso- compliant manner. Concurrently it actively fulfills its industry responsibilities promoting compliance collaboration

ciation of Luoyang Xinqianglian Slewing Bearing Co. Ltd. specifies the principles forms and decision-making proce- across the industrial chain to help foster a healthy business ecosystem.dures for profit distribution as well as the conditions and ratio requirements for cash dividends providing a funda-

mental institutional guarantee for shareholder returns. The Implementation Rules for Cumulative Voting System safe- During the Reporting Period the Company focused on the core needs of compliance risk prevention and regularly

guards the right of small and medium shareholders to participate in corporate governance by standardizing the conducted legal training aiming to enhance employees’ and managers’ understanding and application ability of legal

voting mechanism for director elections. Additionally the Articles of Association of Luoyang Xinqianglian Slewing knowledge.Bearing Co. Ltd. stipulates the applicable circumstances and decision-making procedures for share repurchases pro-

viding a compliance basis for the Company to reward shareholders through share buybacks. Case Study Special Training on the Contract Part of the Civil Code

During the Reporting Period the Company strictly adhered to relevant policy requirements consistently rewarding During the Reporting Period the Company organized legal personnel contract manage-

shareholders through cash dividends. The dividend distribution over the past three years is shown in the table below: ment staff procurement and sales personnel as well as middle and senior managers in

key positions to conduct specialized training on the Contract Section of the Civil Code.Cash Dividend per Total Cash Dividend Proportion of Net Profit Attributable to The training adopted a format of “lectures + case analysis + interactive Q&A” to popu-

Year Share (RMB (Including Tax) (10 Shareholders of the Parent Company in the larize legal knowledge on contracts helping participants systematically grasp the legal

yuan/share) thousand yuan) Consolidated Financial Statements (%) key points in critical stages such as contract formation and performance. This initiative enhanced their ability to prevent and control contract risks and collaborate across

2023 0.104 3730.92 9.95 departments laying a solid foundation for the Company’s compliant operations. Legal Training Session

20240.0923300.4550.48

2025 (Proposed) 0.295 12215.53 14.93 Tax Management

Risk Management To standardize tax management and prevent tax risks the Company has formulated the Tax Management Measures defining four key principles: legality standardization efficiency and risk control. It has established a management

structure coordinated by the Finance Center and managed by dedicated tax personnel covering end-to-end control

The Company has formulated the Internal Control Evaluation Management Measures establishing a systematic risk processes including tax registration tax declaration and record keeping.control system covering the entire business chain including corporate governance human resources management

financial management procurement and sales production and R&D as well as safety and environmental protection. The Company implements several key measures to effectively prevent tax risks maintain a good tax profile and

It defines four core principles: comprehensiveness materiality objectivity and risk-orientation. The Company has ensure a compliant operational stance.established a risk management organizational structure led by the Board of Directors supervised by the Audit

Committee executed by the Internal Audit Department and collaboratively participated in by all units ensuring that Engaging a professional certified tax agent firm to conduct the annual audit and final settlement of corporate

risk control responsibilities are clearly defined and enforced at every level. Internal control evaluation work revolves income tax ensuring the truthfulness and compliance of declaration data.around five key elements including the internal environment risk assessment and control activities. Through various

scientific methods risks are comprehensively investigated design and operational deficiencies are accurately identi- Regularly organizing financial personnel to participate in internal training and quarterly specialized training pro-

fied and classified according to a three-tier standard: major important and general. Concurrently specific rectifica- vided by the certified tax agent firm to promptly keep up with updates in tax laws and regulations.tion plans are formulated for various types of deficiencies clarifying responsibilities and timelines forming a

closed-loop management mechanism of “Assessment-Identification-Rectification-Supervision.” This continuously Closely monitoring the risk indicator logic of the Golden Tax System Phase IV improving key control points and

optimizes the effectiveness of internal controls providing a solid guarantee for the Company’s compliant operations launching the invoice cloud system to achieve full-lifecycle digital and intelligent management of invoices.and sustainable development.Strictly standardizing tax document management retaining documents such as tax payment certificates and dec-

The Company regularly conducts specialized risk management training sessions covering employees at all levels laration statements in categories as per regulations to ensure records are complete and traceable.and positions to continuously strengthen risk prevention awareness among all staff.Case Study Special Training on Internal Risk Control Related Party Transactions

On December 30 2025 the Company in collaboration with Dahua Cer-

tified Public Accountants conducted a special training session on

internal risk control. The training covered topics including the con-

struction of the internal control system audit focus areas and case The Company has formulated the Measures for the Management of Related Party Transactions which systematically

studies of common deficiencies. This effectively enhanced employees’ define the scope of related parties and the types of related party transactions providing institutional support for stan-

risk management awareness and laid the foundation for the orderly dardizing the entire transaction process. The Company strictly implements the abstention voting mechanism for

and efficient execution of the internal control audit work during the related directors and related shareholders and has established a hierarchical review and information disclosure pro-

Reporting Period. Internal Risk Control Training Session cess setting differentiated approval standards for related party transactions of different amounts. Through institu-tionalized control and end-to-end standardization the Company ensures that related party transactions between the

Company and related parties adhere to the principles of fairness and justice effectively safeguarding the legitimate

rights and interests of all shareholders particularly small and medium shareholders.

25 26Luoyang Xinqianglian Slewi n g Bearing Co. Ltd. Party Building Guidance Corporate Governance Investor Relations Management and Shareholders’Rights and Interests Business Ethics

Business Ethics During the Reporting Period

the Company actively organized anti-corruption training covering a total of

1436 employees for a total of 5744 hours. A total of 8 directors and

Anti-Commercial Bribery and Anti-Corruption Key Performance senior managers of Xinqianglian participated in anti-corruption training with a

total training duration of 8 hours. The Company required over 80 employees

Anti-Corruption Management System in certain key positions to sign integrity-related agreements and other docu-

ments concerning business conduct.To create a clean and upright working environment build an honest and efficient team establish a good corporate

image and promote the Company’s steady operations the Company has formulated internal management systems

such as the Ten Provisions on Integrity Management. The Company has clearly designated the Board of Directors as the

leading body for anti-fraud efforts and the Internal Audit Department as the permanent executing body. The systems

explicitly prohibit various violations including using positions to embezzle company property commercial bribery Whistleblowing and Whistleblower Protection

accepting bribes disclosing company secrets and engaging in fraud. All employees are required to comply with

relevant regulations and accept supervision and inspection. Employees in certain key positions are required to sign Adhering to the principle of “combining prevention with punishment with emphasis on prevention” the Company

documents such as the Anti-Commercial Bribery Commitment Letter. has formulated the Anti-Fraud and Whistleblowing Management Regulations. It has established a comprehensive

end-to-end anti-fraud management system covering organizational structure fraud definition prevention and

Anti-Corruption Risk Management control whistleblowing investigation and remedial punishment. The Company defines in detail the specific circum-stances of two types of fraudulent behavior: those damaging the Company’s economic interests and those seeking

improper economic benefits for the Company. It strengthens prevention and control by advocating a corporate culture

In accordance with relevant regulations such as the China Securities Regulatory Commission’s Self-Regulatory Guide- of integrity conducting fraud risk assessments and improving internal control mechanisms.lines No. ? for Companies Listed on Shenzhen Stock Exchange—Standardized Operation of Companies Listed on

ChiNext the Company’s Internal Audit System the Anti-Fraud and Whistleblowing Management Regulations and the The Company also maintains unimpeded multi-channel whistleblowing avenues including hotlines emails and

Ten Provisions on Integrity Management the Internal Audit Department regularly conducts internal anti-corruption letters. It has established a whistleblowing mechanism that prioritizes handling of real-name reports implements

risk assessments. During the Reporting Period the Company was not involved in any major litigation cases or incidents tiered investigations (non-senior management cases reported to the General Manager senior management cases

related to corruption bribery extortion or fraud. reported to the Board of Directors) and provides a response on the acceptance status of the report within 15 working

days. The Company strictly implements confidentiality and protection measures for whistleblowers strictly prohibits

retaliation and may offer rewards for verified reports. It clearly defines the managerial and direct responsibilities of

Integrity Management of Business Partners those held accountable for fraud imposing penalties such as warnings financial sanctions or termination of labor contracts depending on the severity of the case. Cases suspected of constituting crimes are referred to judicial authori-

ties. Through this comprehensive system design the Company regulates the professional conduct of all employees

The Company is committed to building a clean supply chain. By stipulating integrity clauses in signed Supplier Coop- reduces operational risks safeguards the legitimate rights and interests of the Company and its shareholders and lays

eration Agreements and other measures it ensures that supplier behavior conforms to business ethics standards a solid institutional foundation for compliance and integrity building within the Company’s ESG governance.preventing and curbing supplier violations of discipline regulations and laws at the source. The Company explicitly

requires suppliers to comply with relevant laws and regulations in their business activities and to eliminate any form

of bribery and unfair competition.Anti-Corruption Education

To enhance the business ethics awareness of all employees the Company conducts multi-level and multi-form train-

ing and publicity activities. Whistleblowing Hotline 19864721130

Case Study “Upholding Professional Ethics Preventing Integrity Risks” Anti-Corruption Themed Training” Whistleblowing Email LYXQLSJ@163.com

On December 22 2025 the Human Resources Department of Xin- Mailing Address for Internal Audit Department Office 608 6/F Xinqian-

qianglian organized and conducted an anti-corruption themedtraining titled“ Upholding Professional Ethics Preventing Integrity Whistleblowing glian Slewing Bearing Headquarters Building No. 8Risks.” The training adopted a theoretical lecture format with Yingyun Road Xin’an County Luoyang City

relevant personnel from the Internal Audit Department and the

Administration Department serving as instructors. Participants

included heads of various subsidiaries factory managers depart-

ment heads and other interested employees. The training content

focused on core modules such as integrity risks and case analysis. Integrity Training Session

This training successfully helped participants establish an aware-

ness of integrity prevention and achieved the expected training

objectives.

27 28Luoyang Xinqianglian Slewi n g Bearing Co. Ltd. Party Building Guidance Corporate Governance Investor Relations Management and Shareholders’Rights and Interests Business Ethics

Anti-Unfair Competition

Start Case Study Anti-Monopoly and Anti-Unfair Competition Compliance Training

Xinqianglian strictly complies withthe Anti-Monopoly Law of the Reporter submits report through designated channels On December 20 2025 the Company conducted relevant training focusing on the theme of“ Anti-Unfair Com-People’s Republic of China the Guide- petition.” Relevant personnel from the Audit Department and the Administration Department served as instruc-lines for Business Operators’ Compe- Channels: Written/Email/Phone/Online Platform tors delivering the training from perspectives including“ National Laws and Regulations (Common Illegal Actstition Compliance and relevant laws of Enterprises).” This series of training sessions achieved significant results with an active classroom atmo-Report reception and registration screening

and regulations in its operating sphere. Post-training random Q&A sessions successfully helped participating employees establish a sense of

locations. It has formulated relevant compliance regarding anti-monopoly and anti-unfair competition as well as awareness of integrity risk preven-

systems such as the Management Is it within tion. This effectively achieved the training objectives of standardizing professional conduct and enhancing the scope of

System for Fair Competition and reporting compliant operation capabilities.Anti-Monopoly and the Whistleblow- No (e.g. labor disputes Yes

ing Procedure for Anti-Unfair Compe- general litigation)

tition and Anti-Monopoly. These

systems specify the requirements for Inform the reporter and explain process terminates Preliminary verification (initiated within 5 working days)

fair competition in areas such as

product pricing quality innovation

advertising and partnerships. They Is the report information

also define preventive measures authentic/worthy of

against monopolistic behaviors the investigation

obligation to cooperate with anti-mo- No (Inaccurate/Seriously insufficient evidence) Yes

nopoly investigations and the rules

for internal and external penalties for Provide feedback to reporter (except for Establish a formal investigation team

violations. anonymous cases) terminate investigation (within 10 working days)

Conduct investigation: collect evidence (documentary

The Company has established an evidence/electronic data etc.) may involve external experts

independent internal supervisory

body and a feedback mechanism. The Issue investigation results report (within 15 working days)

whistleblowing procedure focuses on

managing reports of anti-unfair Investigation team reviews and amends the report

competition and anti-monopoly Anti-Monopoly Training Session

violations adhering to the principles

of legality confidentiality fairness Are there any violations

impartiality and timeliness. An accep-

tance panel led by the Administrative No Yes

Department with participation from

the Audit Department has been Provide feedback to Internal handling (disciplinary

formed. It clarifies the scope of reporter (except for action/departmental rectification) anonymous cases) · · External transfer (involves legal

whistleblowing including monopoly Internal Clarification liability law enforcement agencies)

agreements abuse of market

dominance and unfair competition.Multiple reporting channels such as Feedback to real-name reporter (within 10 working days)

written submissions email

telephone and online platforms have Does the

been opened. The procedure reporter have any objection

standardizes the entire process of

report reception preliminary verifica- Yes

tion formal investigation result No

handling and feedback. Measures to Submit appeal within 15 working days re-review

strengthen whistleblower confidenti-

ality and protection are in place and a Re-review and provide feedback on results Process advancement

whistleblowing reward system has

been established. Reporting channels Audit department regularly supervises and inspects (acceptance

are made public through internal compliance/investigation fairness/handling reasonableness)

announcements cooperation agree-

ments and other means forming a Process termination

comprehensive management chaincombining “institutional regulation+ whistleblowing supervision.” Flowchart of the Whistleblowing Procedure for Anti-Unfair Competition and Anti-Monopoly

During the Reporting Period the

Company was not involved in any

major litigation or penalties related to

monopoly and unfair competition.

29 30Green & Smart Growth for

a Low-Carbon Future

33364346

Climate Action Environmental Resource Ecosystem and Biodiversity

Management Management Conservation

2025 Sustainability ReportLuoyang Xinqianglian Slewi n g Bearing Co. Ltd. Climate Action Environmental Management Resource Management Ecosystem and Biodiversity Conservation

Climate Action Strategy

Xinqianglian deeply practices the concept of green and low-carbon development integrating climate action into its In response to climate change-related risks and opportunities the Company has formulated corresponding mea-

core strategic layout. Focusing on energy conservation greenhouse gas emission control and low-carbon technology sures. These include proactively adjusting production processes to reduce carbon emissions and exploring green

innovation the Company has built a full-chain climate action system. By optimizing production processes promoting projects to promote sustainable development.energy-efficient equipment and strengthening greenhouse gas emission review and management through multiple

parallel measures it continuously reduces its operational carbon footprint responding to the “dual carbon” goals

with concrete actions and contributing to the industry’s green transformation and sustainable development. Potential Impact Impact Likeli-

Category SpecificType Description Financial Time Magni-

hood of

Occur- Response MeasuresImpact Horizon tude rence

Governance Large investments in low-carbon technology R&D with long pay-

back periods; insufficient adapt- ·Collaborative R&D with

ability in implementing key tech- scientific research institu-

nologies such as energy conserva-

The Company has established a climate action governance system with clear responsibilities and authorities. With the Technolog- tion and carbon capture which Increase in

tions

Long Medium ·Introduction of mature

Board’s Strategy and ESG Committee as the core supervisory body it regularly reviews the effectiveness of climate risk ical Risk may lead to delays in emission Operating -term -High Medium low-carbon technologies

control and related performance progress ensuring the effective implementation of governance measures. Further- reduction progress; short win- Costs ·Phased promotion of ener-

more the Company has defined core commitments including greenhouse gas emission reduction renewable energy dows of opportunity for retrofit- g y - s a v i n g r e t r o fi t t i n g o f ting traditional production equip-

application and low-carbon value chain development. This forms an institutional safeguard covering multiple aspects equipmentment resulting in significant pres-

such as energy management R&D and logistics. Concurrently it has established mechanisms for dynamic policy sure for technological iteration.revision and progress disclosure to ensure the governance system’s adaptability and information transparency

providing solid governance support for preventing climate-related risks. Implementation of international regulations such as the EU CBAM carbon tariff; increased low-car- ·Apply for green product and

The Company regularly conducts specialized training on carbon emissions effectively enriching employees’ knowl- Risk bon requirements from down- Fluctuation in factory certifications

edge base on carbon emissions and continuously improving the Company’s carbon emission management level. Market stream clients for the supply

Operating

Revenue / Medium Medium

·Optimize the product life

Risk chain. If the product carbon foot- -term -High High cycle carbon footprint

print does not meet standards or Increase in · A l i g n w i t h c u s t o m e r s ’

lacks green certification it may Costs low-carbon procurement

result in lost orders or premium requirements

Case Study Carbon Emissions and Greenhouse Gas Management Training competition.Risks of extreme weather events ·Reinforce factory drainage

On March 312025 the Company organized relevant employees to participate in carbon in the Luoyang area such as Repair and disaster-resistant facili-

emissions and greenhouse gas management training. The training covered core knowl- h e a v y r a i n a n d r a p i d s h i f t s costs/Shut- Short to ties

edge including carbon emission policies the ISO 14064 standard carbon emission Physical between drought and flood. These down losses ·Develop emergency trans-

reduction technologies and carbon footprint specifications. This effectively enhanced Risk may damage production facilities Increase in

Medium Medium Medium

-term portation plans for extreme disrupt logistics transportation Operating weather

employees’ awareness and skills in addressing climate change laying a solid founda- and trigger secondary disasters Costs ·Purchase climate-related

tion for standardizing the Company’s carbon emission management and practicing affecting production continuity. property insurance

green and sustainable development.Carbon Management

Training Session Low-carbon technology innova-tions such as energy-saving equip- ·Layout of photovoltaic and

ment green power application Operating energy storage systems in

Technolog- and digital energy consumption management can reduce produc- Cost

the plant area

ical Longtion energy consumption and Savings / -term High Medium

·R&D of low-carbon produc-

Innovation tion processescarbon emissions enhance the Premium Revenue ·Construction of a digital green competitiveness of prod- energy consumption moni-

ucts and open up high-end mar- toring platform

kets.Opportu-nity The national“ dual carbon” poli- ·Promoting green manufac-

cies provide green factory subsi- turing energy conservation

dies technical transformation and carbon reduction and

Policy funds and other support. Green Subsidies/- Short to building green low-carbon

Support credit can reduce financing costs. Financing Medium High High factoriesLocal supporting policies for Incentives -term ·Leverage policy dividends

low-carbon transition offer multi- f o r g r e e n f a c t o r i e s t o

ple benefits for corporate trans- advance the sustainable

formation. development of the company

Note: We define the impact time horizon as Short-term (1-3 years) Medium-term (3-5 years) and Long-term (5+ years).Impact magnitude is defined as High (significant impact on the Company’s production and operations) Medium (mod-

erate impact) and Low (minor impact). Likelihood of occurrence is defined as High (very likely to occur) Medium

(reasonably likely to occur) and Low (unlikely to occur). The same definitions apply throughout the report.

33 34Luoyang Xinqianglian Slewi n g Bearing Co. Ltd. Climate Action Environmental Management Resource Management Ecosystem and Biodiversity Conservation

Impact Risk and Opportunity Management Environmental Management

The Company has established a standardized process to identify assess and manage climate change risks and regu-

larly reviews the effectiveness of the process implementation to ensure that risk response strategies are timely and Xinqianglian places high importance on environmental compliance management and adheres to the environmental

effective. policy of“ Energy Saving and Consumption Reduction Pollution Prevention and Environmental Purification.” It inte-grates environmental responsibility into the entire process of production and operation establishing a standardized

control system covering key areas such as wastewater and exhaust gas. Through institutional regulations technolog-

Referring to the recommended disclosure framework of the Task Force on Climate-related ical prevention and control and regular monitoring the Company strengthens environmental risk control and con-

Financial Disclosures (TCFD) the Company identifies its risk and opportunity types from

Risk Identification three major categories: physical risks transition risks and opportunities. Based on nation-

tinuously promotes green and compliant operations.al laws regulations and policy requirements domestic and international sustainable

development trends and the Company’s actual situation it defines and describes the risks

and opportunities brought to the Company by climate change. Environmental Compliance Management System

For each identified risk and opportunity the Company identifies the primary climate-re-

Risk Assessment lated drivers causing that risk or opportunity as well as their potential major financial

The Company has established a compliant and comprehensive environmental man-

impacts the impact time horizon and the impact magnitude. agement system forming an institutional framework centered on the EHS Manage-ment Manual and EHS Procedure Documents. This covers the entire process man-

agement including environmental aspect identification hazard control emergency

Based on the identification and assessment results the Company formulates correspond- response and compliance evaluation. Organizationally the General Manager pro-

ing response measures to ensure it has sufficient capacity and resources to address vides overall leadership and the Management Representative regularly reports to

Risk Response climate change risks and seize climate change opportunities forming a closed-loop man- the General Manager on the environmental management system’s performance and

agement mechanism for climate change risks. needs for improvement. Responsibilities are clearly defined for departments such

as the Quality Assurance Department the Safety and Environmental Protection

Department and the Manufacturing Department.ISO 14001 Environmental

During the Reporting Period the Company obtained the ISO 14001 Environmental Management System

Indicators and Objectives Management System certification. Certification

Indicator Unit 2025

Indicator Unit 2025 Incidents of Major Administrative Penalties from Ecology and Environment Authorities or Other Relevant Depart- Incidents 0

Total Greenhouse Gas (GHG) Emissions tons of carbon dioxide equivalent (tCO e) 224425.90 ments Due to Environmental Incidents2

Direct GHG Emissions (Scope 1) tCO2e 119053.61 Amount of Major Administrative Penalties from Ecology and Environment Authorities or Other Relevant Depart- 10000 yuan 0

Indirect GHG Emissions (Scope 2) tCO2e 105372.29 ments Due to Environmental Incidents

GHG Emission Intensity tCO2e/ million yuan 48.49

Note: GHG emissions data includes Xinqianglian and its subsidiaries: Shengjiu Forging Haipusen Haozhi Machinery

and Xinsheng New Energy.Guided by the vision of“ Green Factory Caring for the Earth” the Company integrates energy conservation and emis-

sion reduction into the entire process of production and operation. It has clearly defined quantitative carbon reduc-

tion targets and continuously promotes the efficient use of resources and pollution prevention. The Company focus-

es on two core areas: electricity and water consumption. Through targeted control measures it steadily fulfills its

emission reduction commitments contributing to the fight against climate change.Objective Type Specific Emission Reduction Target Core Implementation Pathway

Reduce electricity consumption per Carry out electricity-saving initiatives;

Energy Consumption Reduction 10000 tons of finished product by inspect and replace high-power elec-

1% annually. trical appliances and circuits.

35 36Luoyang Xinqianglian Slewi n g Bearing Co. Ltd. Climate Action Environmental Management Resource Management Ecosystem and Biodiversity Conservation

Environmental Training Emergency Plans and Drills

During the Reporting Period the Company conducted multiple environmental protection-related training sessions. The Company places high importance on environmental emergency management. It has formulated the Emergency

The training content covered areas such as hazardous waste emergency response and environmental safety require- Plan for Environmental Emergencies establishing an environmental emergency management system encompassing

ments. This helped to enhance employees’theoretical knowledge and practical skills in environmental management “prevention beforehand emergency preparedness emergency response and post-event management.” An Emer-

laying a solid talent foundation for the efficient implementation of the Company’s environmental protection work. gency Command Center has been established comprising core personnel from multiple departments including the

Safety and Environmental Protection Department Equipment Management Department Administration Department

and Human Resources Department. Under the Center five specialized teams are formed: Information Liaison Team

Case Study Special Training on Hazardous Waste Basic Knowledge and Leak Emergency Response Accident Rescue Team Logistics Support Team Evacuation and Rescue Team and Accident Investigation Team.On May 14 2025 the Company organized employees to participate These teams cover various potential environmental emergencies such as hazardous waste leaks and excessive waste-

in a special training session on hazardous waste basic knowledge water discharge detailing the end-to-end response mechanism including early warning reporting on-site disposal

and leak emergency response. The training covered topics such as and post-recovery procedures. Through system improvement practical drills and continuous optimization the

environmental regulations the Company's environmental protec- Company’s environmental emergency response capabilities are steadily enhanced effectively preventing the risk of

tion systems environmental risk sources and emergency measures. environmental emergencies and building a solid barrier for ecological and environmental safety.This effectively enhanced employees’capabilities in environmental

risk prevention and emergency response laying a solid foundation

for the compliance and safety of the Company’s environmental Hazardous Waste Training Session

Luoyang Xinqianglian Slewing Bearing Co. Ltd. Environmental Emergency Command Center

management.Technical Support

Emergency Command Center OfficeCase Study Q3 Safety Committee Training on Environmental Protection and Occupational Health Precautions

In October 2025 the Company held a training session on environ-

mental protection and occupational health precautions for the third Company Functional Departments Incident-Related Units Expert Team

quarter safety committee. The session addressed issues identified

during environmental inspections such as improper storage of

waste oil uncontained iron scraps and dust pollution. It also clari- Technical Support Technical Support

fied requirements for the operation of environmental protection Luoyang Xinqianglian Slewing Bearing Co. Ltd. On-Site Emergency Command Post

facilities hazardous waste management vehicle control and key

tasks for the fourth quarter. These measures further reinforced envi- Training site

ronmental responsibilities helping the Company cope with frequent Emergency Response Team

regulatory inspections and strengthening the foundation for green

and compliant production.Information and Liaison Group Emergency Rescue Group Logistics Support Group Evacuation and Medical Group Incident Investigation Group

Indicator Unit 2025 Emergency Organizational Structure Chart for Environmental Emergencies

Number of Environmental Training Sessions Sessions 4

Total Participants in Environmental Training Person-times 80 The Company regularly conducts environmental emergency drills simulating real accident scenarios to test the fea-sibility of plans and team coordination capabilities. Simultaneously it continuously improves the stockpile of emer-

Total Hours of Environmental Training Hours 210 gency supplies and equipment maintenance.Note: Environmental training data includes Xinqianglian and its subsidiaries: Shengjiu Forging Haipusen Haozhi Case Study Hazardous Waste Leak Emergency Response DrillMachinery and Xinsheng New Energy.On May 14 2025 the Company organized employees to

participate in a hazardous waste leak emergency

Environmental Risk Management response drill. On-site the drill followed standardized

procedures including containment collection and

The Company has established a systematic environmental risk management system supported by the core document cleaning to complete the disposal of leaked waste oil.Procedure for Identification and Evaluation of Environmental Aspects. Under the overall leadership of the Management This effectively enhanced employees’emergency

Representative the Quality Assurance Department serves as the centralized management department leading the response and coordinated handling capabilities for

procedure’s formulation and implementation with all departments collaborating on the identification and evaluation environmental incidents further improving the Compa-

Containment and clean-up of leaked lubricating oil

of environmental aspects. The Manufacturing Department is responsible for the specific control of significant environ- ny’s hazardous waste management emergency plan

mental aspects. The identification process comprehensively covers three states (normal abnormal and emergency) and providing practical support for strengthening

and three time perspectives (past present and future) encompassing seven major types including emissions to air environmental safety defenses.water and land. Significant environmental aspects are determined using direct judgment methods combined with

single-factor and multi-factor comprehensive scoring methods. When changes occur in laws and regulations produc-

tion processes raw materials etc. the Company promptly updates the environmental aspects register to ensure the

dynamic adaptability of the management system. By formulating targeted environmental objectives targets and

management programs the Company strengthens the end-to-end control of significant environmental aspects effec- Inspection of storm- Collection and

tively preventing environmental risks and providing a solid guarantee for the compliance and sustainability of the water and sewage clean-up of settled

Company’s environmental management. inspection wells oily waste

37 38Luoyang Xinqianglian Slewi n g Bearing Co. Ltd. Climate Action Environmental Management Resource Management Ecosystem and Biodiversity Conservation

Hazard Identification and Rectification Three Wastes Management

The Company conducts monthly inspections for wastewater exhaust gas dust and hazardous waste. When hazards Exhaust Gas Management

are identified workshops are required to rectify them immediately. For issues that cannot be rectified on the spot

rectification is required within a specified timeframe effectively consolidate the safety defense line for the ecological To reduce environmental pollution from exhaust gas and strengthen emission management the Company has for-environment and fully lay a solid foundation for green production and operation. mulated the Exhaust Gas Management System establishing an end-to-end management system of“ source control -classified collection?precise treatment?compliant discharge.” During the process design and equipment selection

Green Operations stages low-pollution technologies are prioritized to minimize exhaust gas generation at the source. Dedicated treat-ment facilities are equipped for different types of exhaust gas to ensure comprehensive collection and efficient treat-

ment. Concurrently mechanisms for the simultaneous operation of exhaust gas treatment facilities regular inspec-

Green Transportation tions and maintenance and fault emergency response are established to ensure the treatment system operates stably and meets standards effectively controlling various exhaust gas emissions and contributing to green produc-

The Company promotes the construction of a green transportation chain by optimizing processes and upgrading tion.hardware to effectively reduce energy consumption and carbon emissions in the transportation phase. By scientifi-

cally planning transportation routes based on cargo characteristics and traffic conditions it avoids circuitous and Exhaust Gas Type Core Treatment Process

duplicate transportation. Concurrently it promotes the consolidation of shipments with compatible attributes and

similar destinations significantly improving vehicle load rates and reducing empty-load rates. Regarding vehicle

selection the Company strictly uses vehicles meeting China V emission standards or higher and prioritizes the Acid Mist Exhaust Equipped with an acid mist spray absorption tower to treat acid mist emitted from

deployment of new energy vehicles fully complying with national environmental requirements. the pickling line.Green Office Alkali Mist Exhaust Equipped with a dilute sulfuric acid spray absorption tower to treat alkali mist emitted from the blackening line.The Company deeply integrates the concept of a green office into its ESG practices building a comprehensive The paint mixing room spray painting room and drying room are enclosed for col-

low-carbon office system covering energy conservation and consumption reduction resource recycling green pro- Volatile Organic Compounds

(VOCs) Exhaust lection. Emissions are treated by a dry-type three-stage filter + activated carbon curement and culture cultivation. Through equipment upgrades behavioral norms process optimization and full adsorption/desorption + catalytic combustion unit.employee participation it continuously reduces energy consumption and the environmental footprint of office activi-

ties striving to create an environmentally friendly and efficient office atmosphere. Natural Gas Exhaust Natural gas heating furnaces are equipped with low-nitrogen combustion devices.Practice Area Key Initiatives Dust-Laden Gas Dust from enclosed zinc spraying/sandblasting rooms is collected and treated by a double cyclone + cartridge dust collector.Fully utilize LED lighting and energy-efficient office equipment.Air conditioners are operated with standards of ≥26 ° C in Oil mist generated from gearbox oil quenching and tempering is treated by asummer and ≤20° C in winter. Implement the policy of“ turn off Oil Mist Exhaust wet-type demisting + oil fume purification system.Energy Saving and Consumption Reduction lights when leaving turn off devices when away.” Encourage

taking stairs for floors within three levels. Wastewater Management

Set double-sided printing as default; promote digital office.Install water-saving devices and post water-saving labels. Set To control sewage discharge and promote water reuse and recycling the Company has formulated the Wastewater Resource Conservation and Recycling up waste sorting facilities for three categories; cooperate with Management System. Wastewater is classified into two categories: industrial wastewater and domestic sewage. The

organizations to recycle used electronics consumables etc. Company strictly implements source control requirements prohibiting the direct dumping of waste oil and waste materials into drains as well as the discharge of wastewater into the stormwater pipe network. Industrial wastewa-

ter primarily consists of low-concentration acid and alkali rinsing water from the pickling line which is treated

Prioritize procurement of office supplies with environmental through multi-stage processes to meet discharge standards before release. Domestic sewage is pretreated in septic

Green Procurement certifications and refillable stationery. Select office furniture tanks before being connected to the municipal sewage pipeline network. Additionally through dedicated personnel

made of durable and recyclable materials. management daily inspections regular monitoring and log record-keeping the Company ensures the stable opera-

tion of wastewater treatment facilities achieving standardized water resource management and pollution control.Disseminate green office knowledge through Office Automation Wastewater

System and WeChat groups. Decorate the office with green Type Source Core Treatment Process Discharge RequirementsGreen Culture and Employee Engagement plants and encourage employees to adopt green commuting Low-concentration acid Collection Tank → pH Adjustment Tank

methods such as cycling and using public transportation. and alkali rinsing water → Iron-Carbon Reaction Tank → pH Treated clean water discharged

Industrial from the pickling line Readjustment Tank → Flocculation Sed- up to standard; main pollutants

Wastewater (discharged and replaced imentation Tank → Hydrolytic Acidifica- (pH COD NH3-N SS) comply

Cleaner Production approximately every 4 tion Tank → Buffer Tank → Aerobic with national standardsmonths) Tank → Secondary Sedimentation Tank

The Company deeply practices the concept of cleaner production integrating green and low-carbon requirements Discharged via the main outlet of

into the entire production process. Through technological upgrades process optimization and resource recycling it Generated from daily the plant to the Luoxin Industrial

continuously reduces energy consumption and pollutant emissions during production. Focusing on the core goals of Domestic office activities and em- Pretreated in existing septic tanks Park Wastewater Treatment

energy conservation consumption reduction and emission reduction with increased efficiency the Company con- Sewage ployee living quarters on Plant Xin'an County Economic

stantly improves its cleaner production management system promoting the green transformation of industrial pro- site and Technological Development

duction with concrete actions and contributing to sustainable development. Zone Luoyang City.

39 40Luoyang Xinqianglian Slewi n g Bearing Co. Ltd. Climate Action Environmental Management Resource Management Ecosystem and Biodiversity Conservation

Solid Waste Management Material Utilization

To more effectively control waste generation during production and promote reasonable recycling the Company has The Company has formulated the Warehouse Management System and the Management Measures for Raw Material

formulated the Hazardous Waste Management System. This system clearly defines the division of responsibilities Warehousing to ensure that materials issued from the warehouse meet specified requirements. Warehouse manage-

among departments such as the Safety and Environmental Protection Department the Administration Department ment adheres to the principles of first-in first-out (FIFO) and daily settlement. Warehouse keepers are responsible for

and the Logistics Department forming a closed-loop management process from source reduction classified storage daily management and inventory counts inspectors oversee material quality and various departments collaborate

and recycling disposal to logbook statistics. to submit requisitions and handle relevant procedures. Concurrently the systems specify special storage require-

ments for various types of materials strengthen safety prevention and control and define the handling of non-con-

Non-Hazardous Waste: This category includes materials such as waste packaging and waste paper from office sce- forming products.narios as well as scrap metal shavings and waste equipment parts from production scenarios. These are stored in

designated areas by each department according to classification. The Manufacturing Department regularly cleans up Case Study Material Packaging Management

metal scraps while the Logistics Department and Administration Department are responsible for classified central-

ized recycling. Recyclable materials like metal scraps shavings are sold uniformly to achieve resource reuse. The Company implements tiered packaging for its products based on power rating: products rated below 5.5MW are packaged using a

Hazardous Waste: This category includes waste oil and contaminated materials from production as well as waste combination of three layers of plastic film and kraft paper while

lamps batteries printer cartridges etc. from office activities. These are stored in dedicated sealed containers with products rated above 5.5MW use blue woven bags for the outer

clear classification labels. The Safety and Environmental Protection Department coordinates the recycling of waste layer ensuring adequate protection. Packaging materials are select-

oil entrusting it to qualified third-party professional organizations. Office hazardous waste is recycled through coor- ed from environmentally friendly sources. Tooling such as transport

dination by the Procurement Department with relevant units. Transfer records and registration logs are maintained pallets is returned to the factory for recovery and reuse through

throughout the process to ensure compliant disposal. communication with customers. During loading materials are Example of Wrapping Clearly Marked Lifting stacked by type supported with nylon or wooden blocks and with Blue Plastic Film Information

securely fastened with ropes. This ensures loss-free material trans-

port while adhering to the principle of green circular economy.Environmental Objective Planning

Energy Utilization

The Company has established environmental management objectives covering areas such as noise discharge waste

discharge and environmental training. During the Reporting Period all of the Company’s environmental management The Company has formulated the Energy Management System comprehensively cover-

objectives were achieved. ing the management and control of water electricity and gas. The Equipment Manage-

ment Department is responsible for overall coordination and end-to-end management.Regarding water usage energy-saving requirements such as turning off water when

leaving are clearly defined and water supply pipelines valves and other facilities are

Indicator Objective regularly maintained to ensure stable water supply. Regarding electricity usage stan-

dards for power supply and distribution are strictly implemented and power distribu-

Noise Discharge Meeting national standards tion equipment and main power supply cables in the plant area are regularly inspected

and repaired. Regarding gas usage gas leakage and waste are strictly controlled with

Solid Waste Classification Recycling and Disposal Rate 100Percent clear operating procedures requiring timely valve closure during prolonged shutdowns.The Equipment Management Department concurrently conducts regular cleaning and

Wastewater Discharge Compliant discharge maintenance of various energy facilities achieving effective energy conservation

through standardized end-to-end control.ISO 50001 Energy

Iron Scrap Recovery Rate 100Percent

During the Reporting Period the Company obtained ISO 50001 Energy Management Management System Certification

Conservation of Water Electricity and Paper No wastage of water electricity or paper System certification and regularly undergoes audits and assessments by third-party organizations.Integrity Rate of Stored Chemical Items 100Percent Case Study Energy-Saving Retrofit of Refrigeration Equipment

Environmental Knowledge and Awareness Training Rate 100Percent During the Reporting Period addressing issues such as inadequate cooling performance of the original system

(e.g. quenching machine temperature/pressure alarms being easily triggered unstable air conditioning per-

formance) the Company implemented three retrofit measures: First enlarged the chilled water storage tank to

increase cooling capacity. Second retrofitted the chilled water supply pumps with variable frequency drives

while simultaneously elevating the tanks reducing the number of pumps in operation and their load achieving

daily electricity savings of approximately 2880 kWh. Third relocated the cooling towers to a well-ventilated

Resource Management area to resolve heat short-circuit issues improving refrigeration efficiency by approximately 4%.Case Study Energy Conservation and Climate Action Training

On March 10 2025 the Company organized relevant employees to participate in energy conservation and

Xinqianglian has established a management and control system centered on materials energy and water resources. climate action training. The training covered topics including industry policies energy efficiency standards

Supported by specific policies the Company implements multiple measures including standardized operations energy-saving technologies green management digital transformation and circular economy practices. It

energy-saving retrofits and recycling to create a green operation model achieving efficient utilization and circular achieved comprehensive coverage of knowledge related to energy conservation and carbon reduction deep-

development of various resources. ening employees’ understanding of energy-saving technologies.

41 42Luoyang Xinqianglian Slewi n g Bearing Co. Ltd. Climate Action Environmental Management Resource Management Ecosystem and Biodiversity Conservation

Indicator Unit 2025 Indicator Unit 2025

Natural Gas 10000 cubic meters 5471.23 Photovoltaic (PV) Power Generation kWh 58605801.59

Gasoline tons 24.59 Renewable Energy Consumption tce 7202.65

Diesel tons 220.73 Total Clean Energy Consumption tce 7202.65

Total Purchased Electricity kWh 195314710.29 Proportion of Renewable Energy Consumption Percent 6.90

Fossil Fuel Consumption tons of standard coal equivalent (tce) 73125.17

Total Direct Energy Consumption tce 73125.17 Note: Energy consumption data includes Xinqianglian and its subsidiaries: Shengjiu Forging Haipusen Haozhi Machinery and Xinsheng New Energy.Total Indirect Energy Consumption tce 24004.18

Total Consumption tce 104332.00 Water Resource Utilization

Note: Energy consumption data includes Xinqianglian and its subsidiaries: Shengjiu Forging Haipusen Haozhi The Company has formulated the Water Resource Management System focusing on water resource protection and

Machinery and Xinsheng New Energy. sustainable utilization and establishing an end-to-end management and control system. In the production process

a circulating cooling water system is implemented where water is reused after sedimentation and filtration. Concur-

rently cleaning solutions are recovered through multi-step cleaning processes reducing fresh water consumption

and wastewater discharge. Domestic sewage is managed in accordance with the Integrated Wastewater Discharge

Standard with regular testing to ensure compliant discharge thereby contributing to a win-win outcome between

Indicators and Targets corporate development and ecological protection.The Company was guided by national strategic frameworks such as the Green Factory Project Implementation Guide Case Study Procurement of Pure Water Equipmentand Made in China ???? and centered around the Company’s green development vision of “Controlling EnergySaving Resources Utilizing Clean Energy and Creating New Energy” the following energy management targets and During the Reporting Period the Company installed 4 sets of pure water equipment and customized 2T/H

plans have been established: industrial-grade reverse osmosis (RO) pure water machines. Compared to ordinary pure water machines with

the same output this equipment offers superior water-saving performance. Its core advantages include con-

trollable recovery rates and a mature comprehensive plan for recycling concentrated water raising the com-

Energy Management Indicators and Plans prehensive water utilization rate to 70%-80% significantly higher than the 50%-60% level of ordinary pure water machines.Specific Indicator Planned Direction

Management System To improve the energy management system complete system certification and establish an

Development energy efficiency control and metering monitoring model covering production and office scenarios achieving end-to-end traceability and controllability of energy consumption. Ecosystem and Biodiversity Conservation

Implement energy-saving measures such as refined control of central air conditioning and Xinqianglian has always adhered to the development philosophy of synergizing commercial value with social respon-Energy Efficiency green commuting for official vehicles to reduce energy usage at the source continuously sibility guided by the requirements of relevant documents such as the United Nations Sustainable Development Improvement improve energy utilization efficiency and promote the development of a circular economy. Goals and the Convention on Biological Diversity. Upholding the principles of green development and innovation

leadership the Company leverages its business advantages to steadily advance towards strategic goals related to

Promote the application of renewable energy sources such as solar power in plant areas and green development contributing to the realization of the 2030 Sustainable Development Goals and the 2050 vision of

Promotion of office buildings advance the implementation of photovoltaic power generation projects ‘Harmonious Coexistence between Humans and Nature.’

Clean Energy and gradually expand the scale of clean energy usage achieving a leap from self-consump-

tion to industrialized and scaled development.Implement green supplier management embedding energy conservation requirements Core Ecological Protection Policies

Supply Chain throughout the entire chain of raw material procurement production processing and pack-

aging transportation to promote the collaborative utilization of green energy within the Natural Resource Strictly complying with forest protection laws and regulations prohibiting operations in Collaboration

supply chain. Conservation sensitive areas such as forested regions and nature reserves and actively advocating for afforestation green space protection and the restoration of degraded forest ecosystems.Requiring suppliers to avoid key biodiversity areas; conducting biodiversity due diligence

Ecological Management for new projects of the Company itself and within its supply chain ensuring the complete-Clean Energy of the Supply Chain ness of relevant documents such as Environmental Impact Assessment (EIA) reports and environmental permits; and encouraging suppliers to participate in public welfare proj-

ects such as biodiversity conservation through incentive mechanisms.The Company deeply implements the strategy of green low-carbon transformation and energy substitution with Conducting operations in compliance with regulations integrating biodiversity consider-

photovoltaic power generation projects as the core carrier deepening the scenario-based application of renewable Minimizing ations into assessments during the project planning phase and selecting sites to avoid

energy achieving significant breakthroughs in energy structure optimization and carbon reduction effectiveness. Environmental sensitive areas; strictly controlling noise pollution during the construction phase by opti-

The specific implementation paths and phased results are as follows: Impact mizing machinery layout and working hours; and promptly carrying out the restoration of

surface soil and vegetation after project completion.

43 44Quality & Efficiency

Synergy & Win-Win

49556264

Innovation-Driven Product Safety and Data Security and Customer Responsible Supply

Service Quality Privacy Protection Chain

2025 Sustainability ReportLuoyang Xinqianglian Slewi n g Bearing Co. Ltd. Innovation-Driven Product Safety and Service Quality Data Security and Customer Privacy Protection Responsible Supply Chain

Innovation-Driven Risk Potential Impact Impact Likeli-/Oppor- Category Description Financial Time Magni- hood of

tunity Impact Horizon tude Occur-

Response Measures

rence

Domestic policies support the

localization of high-end equip- ·Accelerate the expansion ofment. As a “bottleneck" area market share for wind power Governance Import wind power bearings and TBM Increase in Long bearings and shield tunneling Substitution bearings currently have significant operating -term High High machine bearingspotential for import substitution revenue ·Part ic ipate in formulat ing

offering a broad market space for industry standards to consoli-

the Company’s products. date technological advantage

Xinqianglian has established an innovation governance system centered Oppor-

on the Management Measures for Technology Projects and the Financial tunity ·Expand market share for wind

Management Measures for Technology Project Funds. Organizational Under the“ dual carbon” goals the power bearings and increase

structures are reasonably set up in line with the Company’s product R&D Technology installed capacity of wind power is production capacity to meet cus-

characteristics. The Finance Center is responsible for budget review and Upgrade & increasing leading to higher Increase in Medium tomer carbon reduction needs.accounting the Audit Department supervises the use of funds and the Carbon demand for wind power bearings . operating Medium High ·Align with market demands Reduction Core customers’ demand for revenue -term strengthen product technology project responsible units and leaders undertake specific execution Synergy carbon reduction is also increas- and process optimization and

duties. Technology projects are managed on a project basis covering ing. promote green development in

models such as independent R&D and industry-university-research the industry

collaboration. Standardized processes like expert reviews and bidding/- National High-tech Enterprise Certificate

negotiation ensure the compliance and effectiveness of R&D activities

forming an innovation governance structure with clear responsibilities

and closed-loop processes.Leveraging technological innovation platforms such as the provincial Impact Risk and Opportunity Management

high-tech enterprise the provincial enterprise technology center and

the CNAS-accredited laboratory the Company has built a high-level The Company ensures effective response to potential risks during the R&D and innovation process through risk iden-

open platform for scientific and technological innovation and a com- tification assessment monitoring and management thereby promoting technological innovation and enhancing

prehensive innovation system. Through methods such as independent market competitiveness.R&D and collaborative R&D the Company conducts technological inno-

vation research and tackles key technologies yielding a number of Comprehensively conduct regular risk identification with special attention paid to

advanced achievements with independent intellectual property rights. technical risks policy risks and market competition risks in fields such as wind power

These achievements are effectively transformed into new quality pro- Risk Identification bearings and their components and new energy projects to ensure better identifica-

ductive forces continuously contributing to the development of the Laboratory Accreditation Certificate tion of potential threats during the innovation process.industry.Assess the specific financial and operational impacts of various identified risks. For

Strategy example technological risks may lead to increased R&D expenses without rapid con-Risk Assessment version into revenue among other potential outcomes. The results of the risk assess-

ment will be used for priority ranking and strategic adjustments.Risk Potential Impact Impact Likeli- Establish a dynamic risk monitoring system to regularly analyze policy changes

/Oppor- Category Description Financial Time Magni- hood of Response Measures market trends and competitor activities especially in the areas of wind power bear-Risk Monitoring

tunity Impact Horizon tude Occur- ings and their components and green projects in order to timely adjust corporate rence strategy and prevent risks from materializing into actual losses.R&D progress for main Decrease in ·Increase R&D investment in 20MW+ shaft and shield operating bearings and collaborate with exter-

Techno- machine main revenue nal institutions to accelerate break-

Establish targeted risk management plans to ensure effective control and diversifica-

logical bearings is below Medium Medium Medium throughs in material technology tion of risks when implementing technological innovation and market expansion. For

expectations; risk of decrease in -term

-High

Risk ·Establish a strategic presence in the Risk Management example by cooperating with scientific research institutions and communicating with

substitution by sliding gross profit field of precision bearings and their industry associations the Company ensures that new products and services meet

bearing technology margin core components. market demands and regulatory requirements.Risk

·Further strengthen vertical integra-

Wind power/TBM Fluctuations in tion of the industry chain and contin-

Supply bearings are signifi- raw material uously optimize cost control.Chain cantly affected by prices increase Short High High ·Formulate an annual procurement

Risk fluctuations in raw

-term

in production plan for raw materials make sched-

material prices. costs uled purchases in advance and miti-gate the risks of short-term price fluc-

tuations.

47 48Luoyang Xinqianglian Slewin g Bearing Co. Ltd. Innovation-Driven Product Safety and Service Quality Data Security and Customer Privacy Protection Responsible Supply Chain

Indicators and Objectives By Educational Background

Master’s Degree Persons 7

Indicator Unit 2025 Bachelor’s Degree Persons 78

R&D Investment 10000 yuan 27959.35 By Age Group

R&D Investment as a Percentage of Revenue from Main Operations percent 6.04 Under 30 Years Old Persons 130

Cumulative Number of Authorized Patents Patents 161 Ages 30-40 Persons 176

Cumulative Number of Authorized Invention Patents Patents 33 Over 40 Years Old Persons 56

Cumulative Number of Authorized Utility Model Patents Patents 128

Cumulative Number of Authorized Design Patents Patents 0

The Company conducts specialized training in areas such as process optimization product development and inno-

Specialized and Sophisticated Enterprises that Produce Novel and Unique Products Items 2 vative methods laying a solid talent foundation for maintaining its technological leadership in the industry and

enhancing its core competitiveness.National High-tech Enterprises Items 4

Innovation Achievements Showcase

Innovation-Driven Measures The Company has been continuously deepening its focus on core business areas. Leveraging its comprehensive strengths in technological R&D resource integration and R&D platforms it concentrates on tackling key industry

technologies and green development needs. Through these efforts the Company has achieved fruitful R&D results

spanning multiple dimensions including technology patents process optimization and product upgrades. This has

Innovation R&D Incentives further strengthened the market competitiveness and industry influence of its core businesses laying a solid techno-logical foundation for the Company’s sustainable and high-quality development.The Company has formulated the Measures for Rewards and Punishments for Technology Projects to standardize the Project/Achievement Introduction (including

implementation of technology projects. These measures clearly define the responsibilities and authorities of project Business Area Project/Achievement Name but not limited to features key technologies Honors and Awards

leaders for the entire project process including team member allocation assessment and the distribution of application scenarios etc.)

rewards and penalties. The Project Office is responsible for organizing the assessment and implementation of

rewards and penalties. Incentives include awards for patents and papers project acceptance and appraisal awards Targeting the localization of 2MW-5MW wind

achievement transformation and promotion awards and matching awards for provincial municipal and national R&D and Application of turbine main shaft bearings overcoming

prizes. The specific amounts accounting standards and distribution rules for each type of award are clearly defined. Main Shaft Bearings for Key Technologies for technical bottlenecks in high precision and

Concurrently work requirements for activities such as convening meetings submitting materials and maintaining Large Wind Turbines Main Shaft Bearings of high reliability. Utilizing domestically pro-

logbooks are established with corresponding penalty standards for relevant personnel who fail to comply. Large Wind Turbines duced materials to replace imports reducing costs by 30%. Optimizing heat treatment

processes increasing fatigue life by 35%.Innovation Team Talent Development Systematically innovating material proper-

t ies and heat treatment processes for

Materials and Heat R&D and Application of extra-large bearings (diameter ≥ 2000mm)

The Company places high importance on internal talent cultivation focusing on building a highly skilled and innova- Treatment Technology M a t e r i a l s a n d H e a t breaking through the bottlenecks of tradi-

tive R&D team to provide strong support for the Company’s technological breakthroughs and the transformation of for Extra-Large Treatment Technology tional materials in strength and wear resis-

innovation achievements. Bearings for Extra-Large Bearings tance. Achieving an extension of bearing life

by over 30% and hardness uniformity ≥

HRC60±2.R&D Team Structure

Indicator Unit 2025 R&D of an Anti-Typhoon Specifically designed for high offshore wind

5MW Direct-Drive Wind speeds and high salt spray environments.

Total Number of R&D Personnel Persons 362 Offshore Wind Utilizing a three-row cylindrical roller struc-Power Bearings T u r b i n e T h r e e - R o w Cylindrical Roller Main ture to enhance load capacity (single-row

Proportion of R&D Personnel in Total Employees Percent 15.22 Shaft Bearing load capacity increased by 40%) and improve anti-typhoon stability.

49 50Luoyang Xinqianglian Slewin g Bearing Co. Ltd. Innovation-Driven Product Safety and Service Quality Data Security and Customer Privacy Protection Responsible Supply Chain

Project/Achievement Project/Achievement Introduction (including Business Area Name but not limited to features key technologies Honors and Awards Intellectual Property Protectionapplication scenarios etc.)

Focusing on 10MW+ high-power offshore

wind power main shaft bearings addressing Intellectual Property Management SystemR&D and Industrializa-

tion of Key Technologies core issues of high load long life and low High-Power Offshore for High-Power Offshore failure rates. Implementing intelligent man- Xinqianglian places high importance on the management and protection of intellectual Wind Power Bearings Wind Power Main Shaft ufacturing processes (automated produc- property having established a comprehensive policy system and governance structure to

Bearings tion l ines achieving precision error ≤ safeguard its innovation achievements. At the policy level core documents such as the 0.005mm) and achieving localization of Intellectual Property Manual and Intellectual Property Procedure Documents have been

main shaft bearing materials. formulated covering the entire process of intellectual property acquisition maintenance

utilization and risk management. These strictly comply with laws and regulations such as

the Patent Law of the People’s Republic of China and the Trademark Law of the People’s

Republic of China as well as the requirements of the GB/T 29490-2023 standard. In terms of

R&D and Industrializa- Overcoming generic technical difficulties of governance structure the top manager is clearly designated as the primary responsible

Extra-Large Turntable tion of Key Generic Tech- extra-large turntable bearings (diameter ≥ person. A management representative is appointed to coordinate the operation of the

Bearings nologies for Extra-Large 3000mm) to achieve design standardization system. The Quality Assurance Department leads the formulation of policies and compli-

Turntable Bearings and large-scale manufacturing. ance reviews the Technology Center is responsible for the entire process management of

intellectual property and various departments implement related responsibilities accord-

ing to their functions forming a management structure with clear responsibilities and

authorities. The Company has currently obtained certification for the Intellectual Property

Compliance Management System. Certificate of Intellec-

Industry-University-Research Cooperation tual Property Compli-

As of the end of the Reporting Period the Company has accumulated 160 authorized ance Management

patents. Multiple core products and technologies developed independently have passed System Certification

The Company highly values industry-university-research collaboration with universities and research institutions scientific and technological achievement appraisals reaching internationally advanced

and is committed to transforming cutting-edge scientific and technological achievements into practical productivity levels and filling domestic gaps. The conversion rate of intellectual property implementa-

to promote technological progress in the industry. The Company has established long-term industry-university-re- tion and operational achievements is steadily increasing. Patented technologies are widely

search cooperation relationships with Henan University of Science and Technology and has signed industry-univer- applied in core products such as wind power main shaft bearings and TBM main bearings

sity-research cooperation agreements with Luoyang Vocational College of Science and Technology and Luoyang contributing to import substitution and enhancing core competitiveness. In the future the

Institute of Science and Technology forming a school-enterprise alliance. The collaboration includes multi-level Company will continue to advance its intellectual property strategy striving to accumulate

cooperation in key technology research transformation of scientific and technological achievements joint establish- over 200 intellectual property rights within 10 years maintaining an average annual IP

ment of talent training bases co-construction and sharing of laboratories and sharing of results. Leveraging the application volume of at least 5 items and further enhancing IP quality and conversion

advantages of universities in talent cultivation and basic research the Company aims to promote the development efficiency.of industry-university-research applications. Intellectual Property Protection Measures

Case Study Development and In-Situ Manufacturing of MEMS-Based Multi-Sensor Fusion Intelligent

The Company has established multi-level intellectual property protection management measures integrating intel-

Rollers for Wind Turbine Main Bearings lectual property into all aspects of daily operations. In terms of personnel management the ownership of intellectu-

al property rights confidentiality obligations and non-compete restrictions are stipulated through labor contracts.This project is jointly implemented by the Company Henan University of Science and Technology and Luoy- For personnel involved in confidential matters the Company implements background checks upon hiring confiden-

ang LYC Bearing Co. Ltd. It addresses key industry pain points including inadequate intelligentization of wind tiality training during employment and confidentiality management upon resignation. Concurrently regular intel-

turbine main bearings poor compatibility between sensing elements and curved roller substrates suscepti- lectual property training is provided to all employees covering intellectual property laws and regulations applica-

bility to aging and failure of patch-type sensors and low diagnostic accuracy caused by imbalanced fault tion processes and risk prevention to enhance their awareness and professional capabilities in intellectual property

samples to develop an MEMS-based intelligent roller with multi-sensor fusion. The project focuses on achiev- protection. In terms of risk prevention and control an intellectual property risk identification and monitoring mech-

ing breakthroughs in three core technologies: the integrated design of multi-modal sensors in-situ manufac- anism has been established. Intellectual property search analysis and risk assessments are conducted during project

turing of sensing elements on curved substrates via electrohydrodynamic jet printing and multi-modal mem- initiation R&D procurement and sales stages to prevent infringement risks. Dispute handling procedures are formu-

ory-enhanced deep intelligent fault diagnosis. These technologies enable real-time monitoring of multiple lated clarifying the processes and measures for responding to disputes to safeguard legitimate rights and interests.physical quantities (load temperature and vibration) of wind turbine main bearings as well as accurate Simultaneously a supporting intellectual property reward and punishment mechanism is in place providing special

full-life cycle fault diagnosis. The project will ultimately realize the industrialization and commercial applica- rewards for achievements such as patent applications and paper publications and implementing penalties for viola-

tion of the intelligent roller and effectively advance the domestic substitution and intelligent upgrading of tions. This comprehensively stimulates the enthusiasm of all employees for innovation and protection.wind turbine main bearings in China. Scientific and Technological Ethics

As an innovative leading enterprise in the field of high-end bearing manufacturing Xinqianglian’s main business

focuses on the R&D production and sales of core components such as large slewing bearings wind power bearings

and TBM bearings serving key industries including wind power generation marine engineering equipment and

construction machinery. The nature of its business has no direct connection with cutting-edge scientific and techno-

logical fields such as artificial intelligence or genetic technology. Therefore at the current stage the Company is not

involved in issues related to scientific and technological ethics review. The Company consistently and strictly complies

with national laws regulations and industry norms continuously improving its technology R&D and application risk

assessment mechanisms. It maintains prudent management over aspects such as manufacturing and technology

transformation resolutely preventing risks associated with improper technology application and ensuring that

business operations are conducted in compliance and an orderly manner.

51 52Luoyang Xinqianglian Slewin g Bearing Co. Ltd. Innovation-Driven Product Safety and Service Quality Data Security and Customer Privacy Protection Responsible Supply Chain

Product Safety and Service Quality Risk Potential Impact Impact Likeli-/Oppor- Category Description Financial Time Magni- hood of Response Measures

tunity Impact Horizon tude Occur-rence

Governance ·Strengthen employee quality awareness training and Internal management technical team building

requires continuous ·Introduce more advanced

The Company strictly complies with laws and regulations such as the Product Quali- Management improvement and the Increase in equipment and management

ty Law implements the GB/T19001-2016 and CCSR9001-2011 quality management Risk Efficiency and pace of the production operating Long Meidium Meidium technologiessystem requirements and adheres to the quality policy of“ Customer satisfaction is Intelligence workshop’s entry into the -termcosts ·Further improve managementthe eternal pursuit of Xinqianglian.” It has established a quality management field of intelligent systems such as ISO 9001 and

system centered on the Quality Manual and supported by specialized management equipment needs to be information systems to

procedures clarifying the quality responsibilities of each department: The Quality accelerated. promote intelligent and

Department as the designated management department for non-conforming prod- paperless management

uct control is responsible for the judgment confirmation identification isolation Leverage national policy

statistical analysis and supervision of quality improvement execution for non-con- The“ 15th Five-Year Plan” opportunities fully utilize the

forming products. The Technical Department authorizes engineers to review for renewable energy

development and subse- Company’s advantages in non-conforming items (key items require approval by the director of the Technical Market and advanced manufacturing

Center or the general manager and scrapped products must be approved by the Policy quent policies will promote Increase in equipment and its listed

general manager). The Purchasing Department and Manufacturing Department are Dividend continuous growth in wind operating

Medium

-term Significant High company financing platform to

respectively responsible for managing non-conforming purchased materials and Opportunity power installed capacity revenueleading to strong market develop advanced productive waste products during production. The Testing Center is responsible for the weekly forces expand production

inspection of testing equipment and the verification of product testing. The Human ISO 9001 Quality Management

Resources Department ensures 100% completion of training plans to enhance per- System Certification

demand for wind power

bearings. capacity and grow and strengthen the enterprise

sonnel quality control capabilities. Optimize product process

Concurrently the Company has established a non-conforming product control process covering all scenarios Demand for high-quality

technology and procedures to

enhance product competitive-

including raw materials the production process warehouses and after-sales service specifying requirements for Product bearings in large-scale

Upgrade and equipment is growing and Increase in ness and promote industrial identification segregation review disposal and traceability throughout the entire chain.Import the trend towards localiza- operating Medium to Long-term Significant High

upgrading

Actively develop new products

During the Reporting Period the Company obtained ISO 9001:2015 Quality Management System certification. Substitution tion of gearbox bearings revenue

Opportunity and key components is such as gearbox bearings and

Oppor- clear. key components to expand

tunity product variety and market

Strategy share·For existing core customers in

the three business segments

Based on industry development trends market competition landscape and its own operational realities the Compa- deeply explore their needs and

ny systematically identified risks and opportunities related to its products and services. In accordance with the Amid multiple opportuni- develop new business areas.requirements of the ISO 9001 quality management system it conducted risk/opportunity assessments and formulat- ties such as external policy ·While serving existing

ed targeted response measures. The specific list is as follows: stimuli the Company can customers well actively expand

leverage its deep techno- new customers within the three

Likeli- Market logical expertise and

Increase in the segments and promote

Risk Potential Impact Impact hood of market foundation in its

Company’s high-value-added new

/Oppor- Category Description Financial Time Magni- Response Measures Expansion

Medium to

three core business operating Long-term Significant High products.tunity Impact Horizon tude Occur-rence Opportunity segments: wind power revenue and

·Continue to invest in R&D to

With the phase-out of wind bearings TBM bearings profit scale consolidate technological

power subsidies the ·Enhance R&D capabilities to and marine engineering advantages; accelerate the

Risk of Cost company faces increased Gross lower development costs progress of production

Competition Mediumcost pressures and must profit -term Significant High ·Improve the product industry

equipment to achieve equipment and process

Pressure reduce costs to maintain decrease chain to reduce procurement

comprehensive growth. transformation to ensure

market competitiveness. and manufacturing costs high-volume delivery capabili-ties and improved quality

·Further leverage the existing consistency for products.Risk The demand for localized quality performance of

Quality bearings is increasing. In products and the advantages of advanced processing equip- Impact Risk and Opportunity ManagementBenchmark- terms of product design and Decrease in

ing and manufacturing quality the operating Medium to Significant Medium ment capabilities to consolidate Long-term

Localization Company faces challenges revenue existing customers·Continue to improve bearing The Company has established and operates a product and service safety risk management process that is deeply Challenge in improving technology product quality reduce costs integrated with its quality management system. This process follows a systematic approach covering all aspects of and quality. and increase efficiency and risk identification assessment monitoring and management. It aims to prevent and control risks that may affect

develop new customers product quality delivery and customer satisfaction ensuring the continuous effectiveness of the management

system.

53 54Luoyang Xinqianglian Slewin g Bearing Co. Ltd. Innovation-Driven Product Safety and Service Quality Data Security and Customer Privacy Protection Responsible Supply Chain

Management Process Management Measures Product Quality Control

Company risk identification runs through all stages of product design and development

procurement production delivery and after-sales service combining internal process The Company regards product quality as the cornerstone of its corporate development and has established a sys-

Risk Identification analysis and historical quality data review to identify risks. At the same time cross-de- tematic quality control system throughout the entire product life cycle. Using the ISO 9001 quality management

partmental teams are organized to use tools such as SWOT analysis to identify potential system as a framework the Company implements standardized management of the product realization process

risk points forming and dynamically updating a risk register. through documented procedures such as the Non-Conforming Product Control Procedure and the Production Order Management Process. Concurrently it sets multi-level quality objectives and drives continuous improvement

through internal audits management reviews and data analysis ensuring that every stage from product design and

The Company employs mature assessment tools such as risk matrices to conduct development to after-sales service is under effective control thereby providing a solid guarantee for the high reli-

multi-dimensional evaluations of identified quality risks. Based on their impact severity ability of its products.and probability of occurrence risk levels are categorized thereby clearly defining key

Risk Assessment control risks and general attention risks to achieve differentiated risk classification man-

agement. Simultaneously opportunities related to quality improvement are systematical-

ly assessed analyzing their potential value implementation pathways and feasibility to

provide a scientific basis for subsequent resource allocation and action plans. Product Quality Full Lifecycle Management and Control

The Company sets Key Risk Indicators (KRIs) and dynamically monitors the risk status The Company has established a quality management system covering the entire product lifecycle including design

through multiple channels such as tracking daily operational data collecting customer procurement manufacturing inspection delivery and after-sales service with procedures and control specifica-

Risk Monitoring feedback and conducting process quality inspections. Concurrently combined with regu- tions for key processes. At each stage specific quality control measures are deployed: At the incoming material larly conducted internal audits it continuously verifies changes in risks and the actual stage inspect externally procured materials such as steel and seals. During the production process each process

effectiveness of related control measures forming a normalized closed-loop risk monitor- must be operated in accordance with drawings and process documents with self-inspection by operators and spe-ing system. cial inspections by inspectors with the inspection results recorded to ensure traceability. For non-conforming prod-

The Company formulates differentiated response strategies for risks of different priorities. ucts returned after sale they are reviewed and disposed of according to the Non-Conforming Product Control Proce-

For high-priority risks measures such as avoidance and mitigation are adopted; emergen- dure.Risk Management cy plans are established for low-priority risks. Concurrently responsible departments and persons are designated for each risk. Through management reviews the implementation

of various measures is promoted forming a closed-loop risk management process of

“Identification-Assessment-Response-Monitoring-Improvement.” Product Recall

The Company has formulated the After-Sales Service Control Procedure which defines the classification standards for

quality issues occurring at the customer’s site (classified into levels A B and C for main engine manufacturers and

Indicators and Objectives levels S A B and C for wind farms) and defines “major issues” and “batch issues.” When a quality event meeting the definition of a major issue or batch issue occurs the after-sales procedure is initiated. The procedure requires that

for customer complaints above Level B problems must be solved using the 8D methodology an improvement plan

The Company places customer needs and expectations first. Integrating its strategic development direction in fields must be formulated and the report must be communicated to the customer and internally within the Company. This

such as slewing bearings along with high industry standards it has systematically established a multi-level quality process forms a complete closed loop from receiving the customer complaint rapid response problem investigation

target system covering the Company departments and key processes. These targets aim to guide all employees in solution formulation customer confirmation to implementing improvements. Its core lies in “correction” and

continuously focusing on product and service quality driving the effective operation and continuous improvement of “prevention” aiming to eliminate the root cause of problems and prevent recurrence. During the Reporting Period

the quality management system. the Company had no product recalls.The Company’s quality targets are divided into core targets at the Company level and specific targets at the depart-

mental level: At the Company level core requirements are defined: Customer Satisfaction Rate ≥ 95% First-pass yield

of parts ≥ 96% First-pass yield of finished wind power bearings ≥ 98% Scrap rate ≤ 0.2% and After-sales PPM for Quality Culture Development

wind power bearings ≤ 1000. At the departmental level key processes such as design and development manufactur-

ing procurement and supply and after-sales service specific targets have been formulated: New Product Develop-

ment Completion Rate 100% Production Task Completion Rate 100% Supplier Product Qualification Rate ≥ 98% The Company regards the cultivation of a quality culture as a systematic and long-term strategic project. It is commit-

and On-time/Intact Delivery Rate for shipment transportation quality 100%. ted to internalizing the quality policy—“Customer Satisfaction is Xinqianglian’s Eternal Pursuit”—into the behavioral

norms and conscious actions of every employee through continuous education and advocacy systematic training empowerment active atmosphere creation and effective incentive guidance. This aims to build a strong endogenous

driving force for quality within the organization characterized by prevention first continuous improvement and the

Indicator Unit 2025 pursuit of zero defects.Product Release Qualification Rate Percent 99.74

Number of Quality Internal Audits Conducted Times 18 Case Study “BIQ Quality Management Training”

Number of Products Recalled Units 0

Units 0 On June 13 2025 the Company organized a“ BIQ Quality Manage-Quantity of Sold (or Shipped) Products Requiring Recall ment Training” for its quality R&D and process personnel. The

Quantity of Products Requiring Recall Due to Health or Safety Reasons Units 0

training enhanced participants’ product quality control capabili-

ties and team collaboration efficiency.Product Recall Rate Percent 0

Percentage of Products Requiring Recall Due to Health or Safety Reasons Percent 0 Quality Training Session

55 56Luoyang Xinqianglian Slewin g Bearing Co. Ltd. Innovation-Driven Product Safety and Service Quality Data Security and Customer Privacy Protection Responsible Supply Chain

Case Study FMEA Training Customer Service Assurance

On July 14 2025 the Company held an“ FMEA Training” for man-

agement and key personnel from the quality R&D process and The Company consistently regards customer service as a vital pillar of its corporate development. It is committed to

manufacturing departments. The training enabled trainees to protecting customer rights and enhancing customer experience through a systematic and standardized service

master the use of this risk prevention tool aiming to identify and system and continuously optimizes service processes and quality to create long-term value for customers.assess potential risks in product design and manufacturing at an

early stage.FMEA Training Session Customer Service Management

The Company has established a clear governance structure and policy system for customer service. It designates the

Case Study Practical Training on Full-Process Quality Control and Supplier Quality Management Sales Department as the primary responsible department for after-sales service management responsible for the

entire after-sales service process control and communication and coordination with customers. Institutional docu-

ments such as the After-Sales Service Control Procedure have been formulated to standardize the entire process

From November 20 to November 21 2025 the Company organized a management from service planning execution to evaluation and improvement ensuring orderly service response“Practical Training on Full-Process Quality Control and Supplier and clear responsibilities.Quality Management.” Participants included personnel from various

departments such as quality management technology procure-

ment and production. The training focused on the practical applica-

tion of quality tools promoting the application of learned skills by Customer After-Sales

trainees in their actual work with the aim of enhancing the Compa- Service Request

ny’s product quality stability supplier reliability and customer Supplier Quality Management Training

satisfaction. Session Quick Response Emergency Handling

During the Reporting Period Problem Investigation

the Company conducted 20 quality training sessions with a total of 491 participants and

Key Performance the total training hours reached 16589.5 hours. Yes

On-site Required On-site Survey

Improving Product Accessibility After-Sales Service

Planning Service Confirmation and Evaluation

The Company is committed to continuously improving the market accessibility of its products through a combina-

tion of optimizing internal operational processes and expanding external market channels. On one hand optimizing

internal operational processes provides a foundational guarantee for improving product accessibility. By leveraging Customer Communi- Determine Improvement No cation Confirmation Plan with Customer

digital information systems the Company optimizes production orders material planning and manufacturing exe-

cution processes enhancing production and delivery efficiency to ensure products can respond to market demands

on time and with guaranteed quality. On the other hand the Company is actively formulating and implementing Initiate 8D

overseas marketing and branding strategies to address trade barriers explore diversified international markets and Approval

increase its overseas market share. Concurrently by deepening strategic cooperation with domestic and internation-

al main engine manufacturers and relying on its position and technological advantages in the field of wind power Progress Report

bearing localization the Company continues to expand its supply share to key customers effectively improving the

penetration rate and availability of its core products in the mainstream domestic market. In the future the Company Basic After-Sales Service On-site Service Request No

will continue to explore innovative business models and service network development further enhancing the cover- Planning

age breadth and delivery agility of its products and services striving to become a more accessible and reliable part-

ner for global customers. Basic After-Sales Service After-Sales Service

Issue Closure

Preparation Preparation

Environmentally Friendly Green Products After-Sales Service Control After-Sales Issue Report

The Company deeply recognizes that as a supplier of core components for high-end equipment its products are key

vehicles for driving the green transformation of downstream industries. The Company is committed to providing Yes

“products that solve environmental problems.” Concurrently it systematically implements the concept of“ green Exception Handling Service Exception Report Transmissiondesign.” Through the application of core technologies such as“ soft-skin-free induction hardening” it significantly

enhances the wear resistance and fatigue strength of its products under extreme operating conditions reducing

resource consumption and replacement frequency throughout the entire lifecycle. In the future Xinqianglian will

continue to deepen its R&D in lightweighting long life and low-carbon processes contributing solid product After-Sales Service Control Flow Chart

strength to the low-carbon development of the industrial chain.

57 58Luoyang Xinqianglian Slewin g Bearing Co. Ltd. Innovation-Driven Product Safety and Service Quality Data Security and Customer Privacy Protection Responsible Supply Chain

Customer Complaint Management Data Security and Customer Privacy Pro-

The Company has established a customer complaint handling mechanism with tiered response and closed-loop tection

management. For after-sales issues the Sales Department responds to general issues within 24 hours and major

issues within 12 hours. Problem investigations utilize the 5W2H method with on-site inspections conducted when Xinqianglian places high importance on data security and customer privacy protection strictly complying with

necessary. For customer complaints above Level B an 8D analysis is initiated an improvement plan is formulated relevant laws and regulations such as the Cybersecurity Law of the People’s Republic of China and the Data Security

and reports are communicated to the customer and internally to ensure the problem is thoroughly resolved. Law of the People’s Republic of China. By establishing strict protection mechanisms and management systems the

Company continuously strengthens its information security capabilities effectively safeguarding customer rights and

the Company’s information asset security.Customer Satisfaction Survey Data Security Management

The Company conducts an annual customer satisfaction survey covering ten dimensions: product installation opera- To continuously improve its data security and customer privacy protection management system the Company has

tion packaging transportation personnel service after-sales problem resolution delivery pricing after-sales service formulated systematic information management policies covering areas such as the Computer Management System

and technical service. In 2025 the overall customer satisfaction score was 96.79 points demonstrating a high level of and the Network Security Management Measures. The Information Department is clearly designated as the central-

customer recognition of the Company’s products and services. ized management department responsible for the overall operation maintenance and security assurance of infor-

mation systems and related infrastructure. The Company further defines the responsibilities and division of labor for

key positions such as system administrators network administrators and data center duty officers ensuring that Customer Service Training data security management responsibilities are effectively implemented. During the Reporting Period the Company experienced no data security or customer information leakage incidents.The Company consistently upholds the“ customer first” service philosophy and places high importance on the pro- Data Security Risk Management

fessional competence and comprehensive quality development of its service team. To this end the Company has

established a regular training mechanism aimed at continuously strengthening the professional skills safety aware-

ness and customer communication abilities of service personnel through diversified learning and development pro- The Company regularly conducts data security risk identification screening for potential risks in various business

grams. This ensures the ability to provide efficient professional and safe service experiences to customers and con- segments and information systems. Through methods such as equipment inspections operational monitoring rou-

tinuously earn their trust. tine maintenance vulnerability scanning and security analysis it detects the security status of its information sys-

tems identifies weak links and promptly implements remediation. Additionally the Company conducts at least one

network security risk assessment annually to proactively identify system vulnerabilities providing a basis for risk

Case Study Customer Service Training assessment and subsequent rectification.From November 25 to 28 2025 the Company’s after-sales personnel To ensure the stable operation of core infrastructure and information systems the Company implements a graded

participated in GWO training organized by Envision Energy. The response mechanism for system disaster events based on the Data Backup and Disaster Recovery Management

training covered practical safety skills such as working at heights System and the System Disaster Recovery Emergency Plan. It has defined emergency response procedures and per-

fire safety first aid and manual handling. This effectively enhanced sonnel responsibilities and regularly organizes specialized drills.the safety assurance capabilities of on-site services and reduced

safety hazards during service operations.Training site Case Study IT Audit

In January 2025 the Company commissioned Dahua Certified Public Accountants to conduct a special IT

audit which identified a total of 12 risks and hidden dangers within the software systems and information

infrastructure. The Company has promptly formulated and implemented corresponding corrective measures Responsible Marketing based on the audit results.During the Reporting Period

The Company upholds the principle of integrity in its operations and is committed to conducting responsible market

publicity and customer communication. Through internal training and review mechanisms we ensure that all external the Company conducted 1 information security drill with a total of 50 employees partici-

publicity content is truthful and accurate avoiding misleading customers and safeguarding the Company’s reputation

and customer trust. pating and the average training duration per person was 1 hour.Key Performance

59 60Luoyang Xinqianglian Slewin g Bearing Co. Ltd. Innovation-Driven Product Safety and Service Quality Data Security and Customer Privacy Protection Responsible Supply Chain

Data Security Practices Case Study Data Security and Information Protection Training

The Company has established a security system covering network isolation intrusion prevention data backup access On July 15 2025 the Company conducted data security and informa-

control and data center management and protection comprehensively safeguarding data security from both techni- tion protection training for key production personnel. The training

cal and physical aspects. This ensures that the Company’s data and customer privacy data are effectively protected. covered the importance of information privacy protection data securi-

ty risks in production positions data security and privacy protection

measures and awareness enhancement. This training effectively

reduced the Company’s data security risks and laid a solid foundation

The Company’s network is divided into zones: office area server/storage area and security manage- for compliant operations.ment area. Data Security Training Session

Network Access permissions between different departments in the office area are controlled via ACL configu-

Zoning and ration.Access Control High-availability network firewalls are deployed at the front end of the server/storage area and secu-rity management area.Firewall or VLAN technology is used for logical isolation between different services within the inter-

nal network adhering to the“ principle of least privilege.”

Security Responsible Supply Chain

Equipment and Equipment and systems such as bastion hosts vulnerability scanners log audit systems database

System audit systems Web Application Firewalls (WAF) and situational awareness platforms are deployed

Deployment in the network security management area.Xinqianglian is committed to building a sustainable supply chain system based on value co-creation and fostering

System responsible partnerships. By continuously optimizing its procurement mechanisms and management practices the

Architecture The server/storage system adopts a UIS hyper-converged architecture supporting business migra-

and Data tion without interruption and reducing the impact of hardware failures on business operations. Company collaborates with upstream and downstream partners to jointly promote the sustainable development of

Migration the industrial chain.Critical data is backed up offline and via intra-city disaster recovery.Data Backup An intra-city disaster recovery backup data center is established in a remote plant area equipped

and Disaster with data backup machines and application servers are backed up multiple times daily. Governance

Recovery The data backup strategy includes full daily backups of core data stored locally in the off-site disas-

ter recovery center and in offline storage. The Company has formulated the Supplier Management Control Procedure which defines the structure of supplier

management and the responsibilities of various departments. It implements controls over products and services pro-

vided by suppliers to ensure the introduction of suppliers with standardized production management reliable quali-

ty and good reputation thereby promoting high-quality development in the safety and stability of the supply chain.System Users of each system have independent accounts and passwords; sharing is prohibited.Permissions Applications cancellations and changes to system accounts require approval.and Account Allocation changes and revocation of user permissions require approval.Management High requirements for password complexity are enforced. Supply Chain Management Structure

Department Responsibilities

Data Encryption Financial data must be encrypted and the scope of access strictly controlled.and Secure Transmitting sensitive information in plain text is prohibited; methods such as data encryption must Procurement Department Manages the Company’s suppliers.Transmission be used for control.Quality Assurance Department Conducts quality inspection of products supplied by suppliers.Monitoring and Information security is ensured through network monitoring vulnerability scanning annual risk Procurement Department Quality The Procurement Department organizes relevant departments to inspect

Auditing assessments and system audits. Assurance Department Technology and evaluate suppliers’ delivery capabilities and quality assurance Center Quality Department capabilities.Change System configuration network adjustments and data maintenance all require approval; configura-

Management tion files are backed up before and after changes. To continuously improve supplier quality the Company has formulated and implemented the Supplier Performance

Data Center Evaluation Method. A comprehensive evaluation of suppliers is conducted monthly based on four dimensions: prod-

Access Control Access control systems entry/exit registration and visitor escorts are implemented. uct quality delivery price and service. The Procurement Department calculates the total score and ranks suppliers

accordingly forming the basis for an annual comprehensive score. Based on the annual score results suppliers are

Equipment and classified into three tiers: A B and C. Tier C suppliers must cease supply and complete rectification.Environmental Regular equipment inspections cable organization and data center environmental controls ensure

Management the equipment operating environment.Supplier Tier Supplier Score

Security and Surveillance cameras locking consoles when personnel leave and closing doors and windows are

Monitoring standard. Tier A: Excellent Supplier Score ≥ 90

Power and Fire Tier B: Qualified Supplier 75 ≤ Score < 90

Safety Manage- UPS systems and precision air conditioners are deployed.ment Fire safety equipment is regularly inspected; open flames and smoking are prohibited. Tier C: Supplier Needing Improvement Score < 75

6162

System Protection Measures Physical Protection MeasuresLuoyang Xinqianglian Slewin g Bearing Co. Ltd. Innovation-Driven Product Safety and Service Quality Data Security and Customer Privacy Protection Responsible Supply Chain

Strategy Indicators and Objectives

The Company regards the supply chain as a key component of its core competitiveness. It actively assesses risks and

opportunities across all supply chain segments and through continuous analysis of market trends technological

evolution and external environments it strategically plans development paths and resource allocation to drive Indicator Unit 2025

high-quality and sustainable growth.Total suppliers Suppliers 78

Risk Suppliers 52Potential Likeli- Number of Suppliers with Quality Management System CertificationImpact Impact

/Oppor- Category Description Financial Time Magni- hood of Occur- Response Measurestunity Impact Horizon tude Number of Suppliers with Environmental Management System Certification Suppliers 41rence

·Actively sign long-term Number of Suppliers with Occupational Health and Safety Management System Certification Suppliers 40Increase in agreements with suppliers

Fluctuation in raw material ·Improve the inventory Proportion of Procurement Expenditure Spent on Local Suppliers Percent 21.48

Raw Material Price fluctuations of major costs Short-term Medium Highraw materials pressure on warning mechanism and Prices optimize procurement ESG Training Sessions Conducted for Suppliers Times 2profits strategies

Risk Total Hours of ESG Training Conducted for Suppliers Hours 8

As business scale expands

the complexity of supply

Supply Chain ·Advance digital supply

Note:Supply chain data scope mainly covers major suppliers of 1-2 categories of raw materials and its subsidiaries:

chain management increas- Increase in

Management Medium Medium Medium chain management Xinqianglian Shengjiu Forging Haipusen Haozhi Machinery and Xinsheng New Energy.es potentially leading to operating costs -term

Risk · S t r e n g t h e n s u p p l i e r fluctuations in delivery evaluation

timeliness and quality.·Increase efforts to culti- Supplier Full Lifecycle ManagementEnhance

Supplier Actively develop new raw bargaining power vate high-quality local

Diversification material suppliers and and reduce risks Short

In accordance with the Supplier Management Control Procedure the Company has established a supplier full lifecy-

-term Medium High suppliers cle management system covering access review tiered evaluation exit and change management. It monitors the

and Localization diversify the supplier base. of supply chain ·Actively explore interna- product quality of suppliers defines clear evaluation standards and exit procedures ensuring that suppliers who fail

Oppor- fluctuations tional suppliers to meet requirements or ignore quality issues are promptly removed from the supply chain. Additionally the Compa-

tunity ny actively promotes the development of a digital supplier management system. Functions such as intelligent price

Deepen the construction of Increase in comparison procurement platforms and supplier collaboration have now been integrated into the Supplier Rela-

Supply Chain digital systems to achieve inventory

Medium ·Increase IT investment tionship Management system.Digitalization data connectivity across turnover rate; -term Medium MediumManagement procurement production reduction in ·Train digital talent The Company has formulated the Supplier Investigation and Evaluation Form. The

and inventory. operating costs Procurement Department conducts due diligence on manufacturers selecting those

Supplier Access with standardized production management reliable quality and good reputation as

potential suppliers. When a new supplier is needed the Procurement Department

completes the evaluation form and submits it to the General Manager for approval.Impact Risk and Opportunity Management The Company audits suppliers’ business qualifications and their quality environ-mental and occupational health and safety system certification certificates. A com-

prehensive score is assigned based on the Scoring Standard for Quality Assurance

The Company values the stability and security of its supply chain. By conducting supplier qualifications audits iden- Supplier Audit Capability of New Supplier Access. Suppliers that pass the audit or pass conditionally

tifying and assessing potential risks in each link and adopting corresponding prevention and control measures it may proceed with small-batch trial supply. After the Quality Assurance Department

continuously optimizes its supply chain management mechanisms to adapt to business development needs and inspects and confirms the products are qualified and upon approval by the Head of

ensure the smooth operation of the supply chain. the Procurement Department the supplier is added to the Qualified Supplier List.At the beginning of each year the Procurement Department formulates the Annual Supplier Audit Plan. All cooperating suppliers undergo a quality assurance re-audit

Risk Identification Conduct a detailed analysis of the supply chain to identify potential risk points. Supplier Tiering and are rated into three tiers: Excellent Mediocre and Supply Suspended. Suppliers classified as Supply Suspended must complete rectification and achieve a rating of

Mediocre or above before supply can be resumed. Excellent suppliers are given priori-

Analyze in depth the formation mechanisms modes of action influencing factors and ty for procurement volume.Risk Assessment potential impacts of relevant risks and prioritize them accordingly. In accordance with the Supplier Performance Evaluation Method the Company regu-

larly assesses existing suppliers. A comprehensive evaluation is conducted based on

Risk Control and Formulate different strategies for different risks develop emergency plans and con- Supplier Evaluation four dimensions: product quality delivery price and service. Suppliers failing to

Prevention duct drills. meet performance standards are subject to supply suspension measures.Monitor the status of supply chain operations dynamically track changes in risk When a supplier meets the exit conditions the Procurement Department issues a

Risk Monitoring points and continuously optimize and adjust risk control strategies. Supplier Exit written notice to the supplier. Concurrently the annual Qualified Supplier List is updated canceling the qualification of the relevant supplier. Business cooperation

with them will not be resumed for two years.

63 64Luoyang Xinqianglian Slewin g Bearing Co. Ltd. Innovation-Driven Product Safety and Service Quality Data Security and Customer Privacy Protection Responsible Supply Chain

Case Study SA8000 Internal Auditor Training Green Supply Chain

On May 292025 the Company conducted a two-day SA8000 internal

auditor training program for heads of social responsibility depart-

ments system managers HR managers supply chain managers and Adhering to the principle of sustainable development the Company has formulated the Procurement Control Proce-

EHS managers. The training covered an overview of the social respon- dure. It prioritizes the selection of suppliers and products that utilize recycled materials have high energy efficiency

sibility system interpretation of its requirements health safety and ratings and demonstrate good environmental performance continuously encouraging and urging suppliers to

hygiene (HSE) standards and relevant labor laws and regulations. enhance their environmental management capabilities. The Company requires that suppliers do not provide raw and

Through this training participants gained expertise in system devel- auxiliary materials containing toxic and hazardous substances prohibited or restricted by domestic and international

opment internal audit and continuous improvement methods regulations such as those banned under the RoHS and REACH directives. Furthermore the Company actively

laying a solid foundation for advancing supplier social responsibility encourages suppliers to establish and maintain environmental management systems such as ISO 14001 and pays

management. attention to their specific practices in areas like environmental permit compliance eco-design pollution prevention SA8000 Internal Auditor Training and resource conservation.Responsible Supply Chain

Case Study Comprehensive Quality Control and Internal Supplier Training

On November 222025 the Procurement Department staff participat- The Company places high importance on human rights and ethical responsibilities within its supply chain. Through

ed in the Company’s training program on comprehensive quality

the Supplier Cooperation Agreement it requires suppliers to trace the origin of metals contained in their products control and internal supplier management. The training covered key such as tin tantalum tungsten and gold and commits to not procuring metals originating from the Democratic

topics including the definition of “internal customers” process Republic of the Congo (DRC) or its adjoining conflict regions particularly from mines controlled by armed forces.quality accountability and supplier performance evaluation with Concurrently it ensures that the extraction smelting and processing of such metals do not involve the aforemen-incentive mechanisms. Through this training employees gained tioned areas. If a supplier cannot prove their compliance the Company reserves the right to suspend or terminate

systematic knowledge of internal supplier management and provided the cooperation thereby promoting transparency and ethical standards in the supply chain and diligently fulfilling

optimization suggestions laying a solid foundation for future supplier its corporate social responsibility within the global supply chain.management improvements.Total Quality Control and Internal

Supplier Quality Management Training Equal Treatment of Small and Medium Enterprises (SMEs)

Supplier ESG Management During the Reporting Period Xinqianglian consistently adhered to the principles of fairness and justice focusing on the equal treatment of small and medium enterprises. In supply chain management contract performance and busi-

ness cooperation the Company strictly complied with the requirements of regulations such as the Regulation on

Ensuring Payment for Small and Medium Enterprises. By establishing an open and transparent supplier evaluation

system the Company ensured the equal participation of SMEs in procurement competition and their fair access to

The Company is committed to integrating sustainability into its business strategy and daily operations. Through the business opportunities. The Company did not have any accounts payable (including notes payable) balance exceed-

Supplier Cooperation Agreement it explicitly requires suppliers to adhere to ethical conduct and ESG-related claus- ing 30 billion yuan or accounting for more than 50% of total assets.es. For suppliers who violate these regulations the Company reserves the right to terminate contracts ensuring all

partners comply with its ten principles in human rights labor environmental protection and anti-corruption.An Ethical and Transparent Supply Chain

To foster an honest transparent and fair environment for supply chain cooperation the Company has incorporated

integrity and compliance as core requirements in its supplier management. It explicitly requires all suppliers to elimi-

nate any form of improper benefit transfer prevent conflicts of interest and fulfill internal supervision responsibilities.Any conduct involving dishonesty violations of laws or regulations should be reported to the Company’s Audit depart-

ment through designated channels.

65 66People-Oriented Em-

powering Symbiosis

71757885

Employee Rights and Employee Training Occupational Health Community Welfare

Interests Protection and Development and Safety

2025 Sustainability ReportLuoyang Xinqianglian Slewi n g Bearing Co. Ltd. Employee Rights and Interests Protection Employee Training and Development Occupational Health and Safety Community Welfare

Employee Rights and Interests Protection Case Study Henan Polytechnic University 2025 Spring Campus Job Fair

On October 232025 Xin Qiang Lian visited Henan University of Science

The Company consistently regards its employees as its most valuable asset and is committed to building a harmoni- and Technology to participate in the 2026 Graduates Autumn (Offline)

ous equal and respectful working environment protecting the legitimate rights and interests of employees and Job Fair. The Company engaged in face-to-face exchanges with students

promoting the common growth of employees and the Company. We strictly comply with national labor laws and reg- providing detailed introductions to its development platform and talent

ulations continuously improve the human resources management system and provide all employees with fair em- requirements aiming to attract outstanding young talents.ployment opportunities competitive compensation and benefits and comprehensive social security.

2026 Fall Double Selection Fair of Henan

University of Science and Technology (Offline)

Labor Relation Management Staff turnover

The Company adheres to labor standards and strictly complies with laws and regulations such as the Labor Law of the Indicator Unit 2025

People’ s Republic of China and the Labor Contract Law of the People’s Republic of China. It has formulated and imple-

mented systems such as the Recruitment Management Measures and the Management Measures for Labor Contracts Total Number of New Hires Persons 830

and Personnel Files to standardize and orderly implement the recruitment process. The professional ability and techni-

cal level of applicants are taken as the core criteria for employment ensuring that any applicant meeting the job Total Number of Employee Departures Persons 200

requirements has an equal opportunity for an interview. The Company attracts talents globally through various chan-

nels such as media headhunters and job fairs and provides employees with wages commensurate with their Total Employee Turnover Rate Percent 10

positions reasonable working hours and benefits offering them good working conditions. In 2025 the Company had

no incidents of illegal or non-compliant employment.Equality and DiversityIndicator Unit 2025

The Company is committed to building a diverse equal and inclusive workplace environment advocating respect for

Total number of employees Persons 2379 individual differences and uniqueness and ensuring every employee can realize their personal value in a fair and just

atmosphere. We strictly adhere to international standards such as the Universal Declaration of Human Rights and have

Number of disabled employees Persons 28 established and implemented internal policies including the Anti-Discrimination and Harassment Policy and Labor

Employment Management Procedures. We strictly prohibit discrimination against employees based on race gender

retired military personnel Persons 57 religion region or physical condition in areas such as recruitment compensation promotion training and benefits.Additionally the Company actively responds to government initiatives by establishing stable working relationships

Number of ethnic minority employees Persons 6 with institutions such as the County Disabled Persons’ Federation and the County Veterans Affairs Bureau. We regular-

ly post job openings receive and screen recommended candidates and take concrete actions to fulfill corporate social

minority staff percentage Percent 0.25 responsibility.Case Study New Strong Alliance’s Anti-Employment Discrimination

Xin qianglian uses its official WeChat account to educate employees and

the public about lawful and compliant recruitment practices preventing

employment discrimination from the interview stage onward and

Gender Education level Age promoting the Company’s values of equality and respect in the work-

place.Female 406 persons Doctoral Degree 0 persons Under 30 years old 678 persons

Male 1973 persons Master’s Degree 11 persons Ages 30-40 1067 persons

Bachelor’s Degree 259 persons Ages 40-50 420 persons Anti Employment Discrimination Campaign

Below Bachelor’s Degree 2109 persons Ages 50 and above 214 persons

Anti-Child Labor and Anti-Forced Labor

Furthermore the Company places high importance on the protection of minors’ rights and interests. It has established

Region Rank Function and implements the Procedure for the Prohibition of Child Labor and Control Measures for Child Labor Remediation

and the Policy on Non-Forced Labor and Non-Use of Child Labor. The Company firmly opposes any form of forced or

compulsory labor and ensures that all employees are employed under the principles of voluntariness and fairness.During the recruitment process identity information is strictly verified to prohibit the employment of child laborers

Chinese Mainland 2379 persons Senior Management 2 persons Technology 346 persons Finance 28 persons under the age of 16. The Company also conducts child labor risk surveys on suppliers through the Procurement Depart-

Overseas 0 person Middle Management 93 persons Administration 234 persons

Hong Kong Macao and 0 person ment and terminates cooperation with any violators to prevent related risks. In the event that child labor is discovered Other Employees 2284 persons Production 28 persons

Taiwan (regions of China) 1743 persons Sales the Company will proactively implement remedial measures including health checks covering medical and educa-

tional expenses and arranging for their safe return home.

69 70Luoyang Xinqianglian Slewi n g Bearing Co. Ltd. Employee Rights and Interests Protection Employee Training and Development Occupational Health and Safety Community Welfare

Protection of Female Employees’ Rights and Interests Employee Management

To safeguard the legitimate rights and interests of female employees and to reduce and resolve the special difficul-

ties faced by women in the workplace due to their physiological characteristics the Company has formulated the To build a harmonious and stable labor relationship the Company has formulated the Implementation Measures for

Management Procedure for the Protection of Female Employees and the Risk Assessment Procedure for New Mothers. the Employees’ Congress and established a sound democratic management mechanism. The Company’s Trade Union

All departments are strictly prohibited from treating female employees unfairly based on their marital or maternal Committee serves as the working body of the Employees’ Congress responsible for its daily operations safeguarding

status. In terms of employee career development the Company firmly prohibits gender discrimination and is com- employees’ rights to information participation and supervision. By distributing satisfaction survey questionnaires

mitted to providing female employees with an equal pay system and fair career development channels supporting and care questionnaires for new employees the Company actively listens to employees’ voices soliciting opinions on

them in achieving both personal and professional growth. departmental coordination processes and systems compensation and benefits and the working environment. The

survey results are used to improve company and departmental management enhance employee well-being further

Case Study On International Women’s Day strengthen their sense of belonging and promote positive interaction between the Company and its employees. During the Reporting Period employee satisfaction was 90%.On International Women’s Day Xinqiang lian organized a special cele-

bration for female employees and distributed holiday gifts demon- During the Reporting Period

strating respect and care for them through concrete actions. the Company’s staff congress approved 3 items while the trade union reviewed and approved 3

items. The trade union has 562 members accounting for 24% of the total active workforce.Key Performance

Employee Care

March 8th Women’s Day Activities

The Company places high importance on employee physical and mental health and the building of team cohesion. It

is committed to creating a warm harmonious positive and uplifting working atmosphere. Through diverse employ-

ee activities it supports the comprehensive development of employees and enhances corporate cohesion. During

Indicator Unit 2025 the Reporting Period the Company organized a variety of rich and diverse employee activities covering team build-

ing activities health education sessions and festival-themed events comprehensively meeting the spiritual cultural

Number of Female Employees in Management Persons 20 and social needs of employees.Proportion of Female Employees in Management Percent 21.51 Case Study “Summer Cooling Care Activity”

Total Number of Employees Entitled to Parental Leave Persons 16 On July 16 the Company treated its employees to refreshing ice cream showing

Total Number of Employees Who Took Parental Leave Persons 9 thoughtful care during the sweltering summer heat.Return-to-Work Rate of Employees After Parental Leave Percent 100

Compensation and Benefits Management Summer Cooling Care Activity

To meet the needs of corporate development the Company strictly complies with relevant laws and regulations and

has formulated policies such as the Compensation and Benefits Management System and the Performance Manage- “Health Together Building the Future” Joint Health Culture

ment System. It has built a scientific reasonable efficient and orderly compensation management and performance Construction Event

management system. Performance management implements a differentiated assessment mechanism. If employees On October 16 the Company collaborated with the Supply Chain

have objections to the assessment results they can appeal to their superiors according to procedures or formally and Health Team of Goldwind Science & Technology to organize asubmit their appeal to the Human Resources Department. The Compensation and Performance Appraisal Manage- joint cultural health construction event themed“ Health Togetherment Committee holds the final decision-making authority. Concurrently the Company ensures smooth internal and Building the Future.” Focusing on common cervical and lumbar

external communication through channels such as suggestion boxes and discussion meetings ensuring that the discomfort and suboptimal health issues among employees the

compensation system does not discriminate based on factors such as employee gender religion political affiliation event provided practical health management knowledge to staff.or marital status. Jointly Building a Healthy Culture:Furthermore the Company has established a systematic benefits protection mechanism. It pays social insurance “Health Together Building thecontributions for all employees in accordance with the law and provides a variety of benefit programs including Future”

strictly implementing the paid leave system providing meal allowances and organizing health check-ups. The Com- Large-scale Team Building Event in Zhangjiajie

pany is committed to enhancing employees’ sense of belonging and well-being achieving shared growth between

the enterprise and its employees. To strengthen team cohesion and energize employees the Compa-

ny organized a large-scale team-building activity in Zhangjiajie

Indicator Unit 2025 Hunan during the Reporting Period. Employees explored natural wonders and participated in collaborative projects rejuvenating

Number of Employees Receiving Regular Performance and Career Development Reviews Persons 1581 their minds and bodies amidst the scenic beauty while deepening teamwork through interactive exchanges. This initiative not only

Proportion of Employees Receiving Regular Performance and Career Development Reviews Percent 66 demonstrated the Company’s commitment to employees’ spiritual and cultural well-being but also reinforced team spirit and corpo-

rate belonging injecting humanistic vitality into the Company’s Zhangjiajie Team Building Activities

ongoing development.

71 72Luoyang Xinqianglian Slewi n g Bearing Co. Ltd. Employee Rights and Interests Protection Employee Training and Development Occupational Health and Safety Community Welfare

Employee Training and Development Case Study External Certification - Non-Destructive Testing Training

From September 11 to 202025 the Company organized non-destructive testing

personnel to participate in professional skills training conducted by a third-party

The Company regards its talent team as a key force driving the enterprise forward and shaping future competitiveness. institution. The training covered four methods: magnetic particle testing ultrasonic

It earnestly promotes talent development efforts by establishing a comprehensive multi-level employee training testing penetrant testing and visual inspection with instruction delivered at two

system and constructing dual career development paths in management and professional tracks. This supports levels. Through a “theory + practice” integrated approach participants significantly

employees in realizing their personal value alongside the Company’s development jointly writing a beautiful chapter enhanced their professional skills and job application capabilities. A total of 31 train-

of progress and shared success. ees passed the assessment and obtained professional qualification certificates further

strengthening the Company’s talent foundation in quality inspection. Nondestructive Testing Training

Employee Training Case Study Management Training on Labor Law Risks

On January 172025 the Company conducted a specialized training session titledGuided by strategic development and employee growth the Company has established the Employee Training Man- “Management Training on Labor Law Risks: Prevention and Handling of Work-Relatedagement Measures and Internal Trainer Management Measures forming an internal trainer team. Through a combi- Injury Risks” for its management team. The training covered scenarios for work-related

nation of online and offline approaches the Company delivers tiered training programs covering onboarding injury recognition compensation standards and accident response plans. This initia-

on-the-job vocational skills and management capabilities. These programs cater to the diverse needs of employ- tive effectively enhanced managers’ understanding of work injury laws and regula-

ees at different levels and positions enhancing their professional skills and overall competence to support career tions as well as their risk prevention capabilities thereby safeguarding the legitimate

success. As of the Reporting Period the internal trainer team comprised 22 instructors. rights and interests of both employees and the Company. Management Labor

Legal Risk Training

Key Performance

Indicator Unit 2025

Employee Training Investment 10000 yuan 85.10

Number of Employee Training Sessions Sessions 137

Total Number of Trained Employees Persons 1601

Total Participants in Training Persons 13670

Employee Training Coverage Rate Percent 67

Total Training Hours Hours 1452

Average Training Hours per Employee per Year Hours/Persons 0.61

Training System

During the Reporting Period

the Company conducted 59 new employee training sessions organized 27 management training Gender Rank

sessions and held 36 training sessions on quality environmental and safety system standards. It

Key Performance

also issued vocational skill level certificates to 317 individuals. Additionally 101employees

participated in external training and obtained relevant professional certifications. Female 225 persons Senior Management 2 persons

Male 1376 persons Middle Management 56 persons

Other Employees 1543 persons

73 74Luoyang Xinqianglian Slewi n g Bearing Co. Ltd. Employee Rights and Interests Protection Employee Training and Development Occupational Health and Safety Community Welfare

Occupational Health and Safety

Function Gender Xinqianglian consistently prioritizes employee health and safety as the core mission of its safety management.Adhering to the fundamental principles of“ safety as the foundation prevention before occurrence and systematicmeasures” the Company pursues a safety vision of“ zero occupational diseases zero safety incidents and zero per-sonal injuries.” It continuously improves its occupational health and safety management system strengthens the

Technology 346 persons Finance 28 persons accountability for production safety at all levels enhances the prevention and systematic governance of occupation-Female 176 hours

Administration 234 persons Sales 28 persons al diseases and comprehensively safeguards the health and safety of its employees.Male 1276 hours

Production 1743 persons

Governance

The Company has established a comprehensive occupational health and safety

governance system including specialized regulations such as the EHS Manage-

Rank Function ment Manual and the Compilation of Safety Production Management Systems.Dedicated departments like the Safety and Environmental Protection Depart-

ment have been set up to clarify the four-tier control responsibility framework (company-department-team-position). Safety risks are mitigated through mea-

sures including risk classification closed-loop hazard management and special

Senior Management 10 hours Technology 70 hours Finance 14 hours operation permits. Additionally the Company conducts occupational health

Middle Management 32 hours Administration 71 hours examinations provides personal protective equipment and enhances safetyEmployees 1410 hours Production 1289 hours Sales 8 hours training for all employees. Emergency response plans are established and regu-larly practiced. Guided by the principle of“ safety production with full participa-tion” the Company strives to achieve zero major accidents and other occupa-

tional safety objectives.Vocational Development During the Reporting Period the Company obtained ISO 45001 certification for ISO 45001 Occupational Health its occupational health and safety management system. and Safety Management

System Certification

To achieve the organic integration of employee growth Employee discusses with

and corporate strategic development the Company has supervisor to clarify career Strategy

established the Employee Career Planning Management development intentions

System. By creating five major career tracks—manage-

ment marketing technology functional roles and pro- Personal skills assessment complete Career Development The Company consistently prioritizes employee occupational health and safety as its strategic cornerstone. Through duction—diverse advancement pathways and equal Planning Form systematic risk assessment and opportunity identification across all operational processes it implements

career opportunities are provided for different talent closed-loop response strategies based on established management systems and accountability frameworks. By pre-

types. Through career interest assessments performance Complete Ability Development venting occupational injuries and accidents at their source the Company establishes a solid safety foundation for its

evaluations practical work experience and mentorship Needs Form against job responsi- high-quality and sustainable development.programs employees are guided to clarify their career bilities and qualifications

directions and develop personalized development plans. Likeli-

The HR department regularly conducts career assess- Human Resources Department Risk Potential Impact Impact hood of

ments using the Competency Development Needs Form reviews and evaluates /Oppor- Category Description Financial Time Magni- Response Measurestunity Impact Horizon tude Occur-

and Career Development Plan Form to provide systematic rence

support. Additionally the Company has implemented an Feedback and revision

internal promotion review mechanism. Through transpar- ·Implement a tiered control system

ent and fair evaluation procedures outstanding talents of“ Work Permit + Dual Supervision”

are guaranteed career advancement opportunities based Employee development measures Some work involves for high-risk operations such as hot

on performance and capability enhancement fostering a high-risk activities such work and confined space work.virtuous cycle of talent echelon development. as machining and hot

work. High-load Increase in

·Establish a three-level mainte-

Occupa- equipment repair nance checklist for slewing bearing

Risk tional operation of slewing Short- Significantequipment:“ Daily Spot ChecksInjury Risk bearing equipment may

costs partial term Medium Weekly Inspections Monthly Main-

Training Performance Work Developmental pose risks of wear and

productionshutdown losses tenance” and simultaneously evaluation practice relationships failure. Untimely hazard record fault warning data.identification can easily ·Conduct quarterly emergency

lead to accidents. drills for high-risk operation scenar-

Employee Career Planning Process ios (e.g. mechanical injury first aid

equipment shutdown handling).

75 76Luoyang Xinqianglian Slewi n g Bearing Co. Ltd. Employee Rights and Interests Protection Employee Training and Development Occupational Health and Safety Community Welfare

Risk Potential Impact Impact Likeli-

/Oppor- Category Description Financial Time Magni- hood of Occur- Response Measures

Indicators and Objectives

tunity Impact Horizon tude rence

·Relevant parties must pass a The Company has established the ES Target Assessment Record Sheet to conduct occupational safety performance

safety knowledge assessment assessments for different departments.When external personnel and sign a“ Safety ResponsibilityRisk of such as contractors/suppliers Agreement for Cross-Opera-Collabora- are working on site there Accident tions” before site entry. Key Indicator Target Value Achievement status

tive may be inconsistencies in compensa- ·Full-time safety supervisors

Risk Manage- safety standard understand- tion costs Short-term Medium Medium conduct on-site supervision

Major Casualty Accident 0 Achieved

ment with ing and inadequate imple- reputation throughout the entire operation

Relevant mentation of work permits repair costs of external personnel confirming Electric Shock Accident in the Factory Area 0 Achieved

Parties increasing the difficulty of daily operational compliance.managing cross-operations. ·Conduct quarterly safety stan- Fire and Explosion Accident 0 Achieved

dard synchronization training for

cooperating relevant parties. Traffic Accident 0 Achieved

·Update the EHS Management Occupational Health Examination Once per year Achieved

Improvement of the policy Handbook continuously linking

system enhances compliance safety responsibility assessment Major Equipment Accident 0 Achieved

and brand value: Relying on Reduction with departmental performance

Occupation- closed-loop systems such as in accident and employee compensation. Periodic Inspection Rate of Special Equipment 100 Percent Achieved

al Safety the EHS Management Manual occurrence ·Disclose safety indicators sepa-

Standard- and Responsibility Target loss Long Significant High rately in the ESG report (e.g. Minor Injury Rate in the Factory 0.3 Percent Achieved

ization Letters the Company -termreduction hazard rectification rate training

Opportunity strengthens the assessment enhanced coverage rate).of the“ dual responsibility for brand value ·Participate in industry safetyone position” and improves standard discussions and share Indicator Unit 2025

Oppor- compliance performance. enterprise practice cases to

tunity Workplace Safetyenhance industry influence.Digital upgrades empower ·Build a digital platform for Number of Safety Emergency Drills Conducted Sessions 11

Reduction

Digital safety management safety training configure posi-

Safety efficiency improvement:

in manual tion-specific courses and auto- Workplace Safety Investment 10000 yuan 1685.16

Manage- Relying on the existing

control matically archive learning data.foundation introduce digital costs

Medium to

Long-term Medium Medium

ment ·Pilot the networking of equip-

Workplace Safety Investment as a Percentage of Operating Revenue Percent 0.36

reduction in

Opportunity tools to achieve dynamic ment operation data to visualize risk monitoring and digital accident and control high-risk equipment

losses Safety Education and Trainingmanagement of training. through a risk heat map.Total Investment in Safety Training 10000 yuan 20.52

Impact Risk and Opportunity Management Safety Training Sessions sessions 71

The Company has formulated the Hazard Identification and Risk Assessment Control Procedure establishing a com- Number of Participants in Safety Training Persons 4559

prehensive risk management process. This covers occupational health and safety hazards related to production pro-

cesses and facility operations. Targeted control measures are implemented to prevent safety risks and hazard infor- Number of Participants in Safety Training Persons 2278

mation is promptly updated in response to changes in internal and external conditions.Total Safety Training Duration Hours 16435

A professional evaluation team was established to conduct a comprehensive inspection through

Hazard nine diversified methods covering six categories of activities including workplaces and production processes. The assessment integrated three temporal states three operational statuses and seven Average Safety Training Hours per Person Hours 7.21Identification types of hazardous factors ultimately resulting in the Hazard Identification and Evaluation Record

Form and the Preliminary Hazard List. Safety Training Employee Coverage Percent 95.75

The dual-track approach of“ qualitative + quantitative” is adopted where special cases are directly

Risk classified as critical hazards while routine cases undergo risk assessment via the LEC formula. Risk Occupational Health

Assessment levels are then determined against established criteria generating a tiered classification list to pro-

vide a scientific basis for differentiated control measures. Number of Certified Special Operation Personnel Persons 86

General hazard sources shall have their elimination/reduction measures established by the respec-

tive departments. Critical hazard sources require the development of specialized emergency Total Number of Personnel Holding Special Operation Certificates for Special Operations Persons 86Risk

Management response plans which must be filed and supervised by the Safety and Environmental Protection Department throughout the implementation process to ensure effective measures are implement- Certification Rate of Special Operation Personnel Percent 100

ed with complete operational records maintained.When changes occur in seven categories including policies activities and regulations the depart-

Updating ment will conduct a reassessment. After consolidation by the Safety and Environmental Depart- Note: Workplace safety data includes Xinqianglian and its subsidiaries: Shengjiu Forging Haipusen Haozhi Machinery

Maintenance ment and approval by the management representative the List of Critical Hazards will be revised to and Xinsheng New Energy.enable dynamic risk management.

77 78Luoyang Xinqianglian Slewi n g Bearing Co. Ltd. Employee Rights and Interests Protection Employee Training and Development Occupational Health and Safety Community Welfare

Workplace Safety Measures Case Study Occupational Health Training

On April 212025 the company invited a professional

occupational health examination institution to conduct

Emergency Management and Drills occupational health knowledge training for employees.Participants included occupational health management

personnel section chiefs team leaders as well as em-

The Company has formulated the Emergency Plan for Workplace Safety Accidents establishing a three-tier emergency ployees working in high-temperature noise-exposedmanagement system comprising the “Comprehensive Emergency Plan + Specific Emergency Plans + On-site Disposal dust-exposed and electrical roles. The training coveredPlans.” The Comprehensive Emergency Plan serving as the master document defines the emergency organization the importance of occupational health types of occupa-

structure (coordinated by a leading command group under which four specialized disposal working groups are estab- tional diseases and their prevention mental health edu- Training Venue

lished) establishes graded emergency response standards and standardizes key processes throughout the entire cation and demonstrations of first aid methods. It aimed

chain including information reporting emergency response and post-event support. to disseminate health knowledge focus on employees’

physical and mental well-being and enhance their

During the Reporting Period the Company conducted regular emergency drills to strengthen employees’ safety aware- self-protection awareness and capabilities.ness and emergency response skills thereby reinforcing the emergency preparedness for production safety and

continuously enhancing the Company’s overall self-protection and self-rescue capabilities. Training on Safety Risk Management and Hazard Identification

On June 112025 the Company conducted a training program on

Case Study “Fire Prevention for All Life First” Fire Drill safety risk management and hazard identification for frontline section

leaders and full-time/part-time safety officers. The training covered the

On November 7 2025 the Company conducted a practi- fundamentals of risk control hazard identification and assessment

cal evacuation and fire extinguishing drill simulating a control measures team-based hazard inspection methods and report-

chemical leak-induced fire scenario in the workshop. ing mechanisms supplemented by accident case analyses to highlight

The exercise enhanced employees’emergency response key preventive measures. Participants gained practical skills in risk

capabilities for fires while exposing issues such as inade- classification and hazard management while deepening their under-

quate maintenance of fire protection facilities and standing of the entire process from hazard identification to remedia-

unskilled use of fire extinguishers. Subsequent measures tion and reporting. Training venue

included improving facility maintenance strengthening

equipment operation training implementing observa- Chemical leakage in simulation workshop

tion-based learning and requiring corrective actions. During the Reporting Period

the Company conducted 58 safety training sessions for new employees.key performance

Safety Management of Relevant Parties

The Company has formulated the Management System for Relevant Parties in accordance with regulations such as the

Fire Fighting Training Evacuation and Escape Drill Workplace Safety Law and the Company’s safety management systems. It aims to standardize the safety management

of relevant parties operating within the Company’s premises clarify the responsibilities of all parties and prevent

Heatstroke Emergency Response Drill workplace safety accidents.On July 252025 the Company organized a full-staff This system applies to all relevant parties including contractors suppliers service providers and visitors. It adheres

live drill for high-temperature working scenarios to principles such as “Safety First Site-Based Management and End-to-End Control” covering the entire process

during summer. The core procedure simulated the from access operations supervision emergency response to exit. It clearly defines the division of responsibilities

management of heatstroke cases in employees work- among the Safety and Environmental Protection Department the competent business departments the territorial

ing under extreme heat following the protocol of call management departments and the relevant parties themselves with a focus on controlling various major hazardous

for help and report—transfer to a shaded area—physi- and harmful factors such as mechanical injury and electric shock.cal cooling—administration of saline and heatstroke

prevention medications—follow-up observation. The Case Study Stakeholder On-site Training

drill validated the effectiveness of the emergency Emergency Treatment Drill of Heat Stroke in Simulation Workshop

response. The Company conducted on-site training for two con-

tractors on October 14 and December 132025 respec-

Occupational Health and Safety Training tively.In strict accordance with laws and regulations such as the Workplace Safety Law of the People’s Republic of China and

the Law of the People’s Republic of China on the Prevention and Control of Occupational Diseases and taking into

account the risk scenarios of production operations and the characteristics of different positions the Company has

formulated detailed safety training and occupational health training plans covering both company employees and Training Venue

relevant parties.

79 80Luoyang Xinqianglian Slewi n g Bearing Co. Ltd. Employee Rights and Interests Protection Employee Training and Development Occupational Health and Safety Community Welfare

Hazardous Chemicals Management

The Company has formulated the Regulation on the Safety Management of Hazardous Chemicals and the Emergency Community Welfare

Plan for Hazardous Chemical Leaks. These focus on the core aspects of safety control for hazardous chemicals and

explosive precursors covering all key stages of their lifecycle—from procurement transportation and storage to

usage. This achieves standardized end-to-end control and reinforces safety defenses. Xinqianglian upholds its original aspiration of “established for the people serving the people” putting social

responsibility into practice through concrete actions: In the field of rural revitalization the Company takes industrial

Stage Management Measures support as its core focus injecting development momentum through pragmatic measures such as resource connec-

1.Procure from legally operating and qualified units; obtain a purchase permit for hazardous chemicals as tion and demand matching thereby helping to improve the quality and efficiency of the rural economy. At the level of

required by national regulations. social services it takes tangible actions to lay a solid foundation for social harmony stability and sustainable develop-

Procurement 2.Specify chemical requirements clearly when signing procurement contracts and request the Material Safety ment demonstrating the responsibility and warmth of the Company’s brand.Data Sheet (MSDS) and precautions for use.

3.Warehouse keepers submit procurement plans based on inventory levels and production needs.

1.Strictly comply with the Regulations on the Safety Management of Hazardous Chemicals. Handle with care Rural Revitalization

Transportation preventing impact and dragging; do not mix with incompatible goods or mix with passengers.

2.Require relevant parties or internal transport personnel to comply with regulations. Non-compliance can be

corrected through contract terms or by terminating cooperation.

1.Inspect chemicals for conformity with quantity and specification requirements ensure packaging is intact As an enterprise deeply rooted in the local community the Company consistently stays grounded in its native soil

Acceptance and labeling is complete. and strengthens its development foundation. It takes employment support as its core focus empowering rural em-

2.Handle non-conforming items through exchange or return; maintain acceptance records. ployment revitalization through precise and diversified measures. This not only helps the rural workforce achieve

stable income growth but also injects lasting momentum into regional development.

1.Store in dedicated areas classified and labeled in Chinese. Maintain a safe distance between chemicals that

may react with each other.Storage 2.Equip with ventilation fire-fighting facilities and MSDS.

3.Designate specific personnel for hazardous chemicals management; implement double-person management Case Study Returning to Start Businesses Unites Strengths Establishing Local Employment Platform.

for explosive precursors. Management personnel must be trained and qualified.Issuance Use 1.Implement approval and supervision procedures for requisition and use according to relevant regulations.& Return 2.Strictly follow usage instructions and operating procedures; reseal opened but unused containers for storage.The Company established a local employment platform which employed 85 key groups including veterans

3.Promptly return unused chemicals to the warehouse. and disabled individuals in the first half of 2025.

1.Immediately evacuate personnel cordon off the scene and prevent unauthorized entry.

Leak Emergency 2.Control leaks by patching containers transferring remaining chemicals and diking to contain. Diversified Training Enhances Skills Flexible Employment Warms Hearts.Response 3.For small leaks collect with non-combustible absorbents like sand; for large leaks divert to a safe area and use suppressants to inhibit evaporation if necessary. The Company has established a“ Theoretical + Practical” skills training system offering training for five core

4.If response capacity is exceeded contact external professional agencies and report to relevant authorities if

needed. occupations and implementing school-enterprise cooperative classes. By adopting flexible employment models it has facilitated stable employment for over 400 individuals in the county achieving the goal of

“working near home while balancing family and career.”

Occupational Health Assurance

The Company places high importance on occupational health assur- The industrial support

ance having established a comprehensive end-to-end managementsystem covering“ institutional regulation + hazard prevention and The Company supports local specialty industries by purchasing agricultural products such as cherries fromcontrol + protective equipment guarantee + health monitoring.” In The dust is collected by the gas Wet demisting and oil fume Xin’an County’s Tianxing Ecological Park and Xincheng Tian Tan Supermarket in May 2025 thereby boosting collection system and then purification system with

terms of hazard prevention and control occupational disease the development of local industries through tangible procurement.directed to the dual cyclone + quenching and tempering

hazard testing is conducted to accurately identify risk factors such cartridge dust collector.as dust zinc and its compounds hydrochloric acid and noise with

targeted measures implemented accordingly. Concurrently in the

form of a Notification of Occupational Disease Hazards the hazard

factors occupational contraindications and protective measures Social Contribution

for each position are clearly defined and truthfully communicated to

employees when signing their labor contracts safeguarding em- Gas furnace waste gas black line alkali fog

ployees’ right to know. collection facility collection system The Company actively engages in social contribution initiatives demonstrating corporate social responsibility

through concrete actions to support the development of local sports and advance social welfare programs.The Company strictly implements the occupational health examination system conducting standardized health

examinations for employees before during and upon leaving their posts and establishing occupational health

records. Additionally the Company has formulated the Personal Protective Equipment Management System provid-

ing comprehensive protective facilities such as dust-proof anti-toxic and heat-resistant equipment for employees in

various positions. This strengthens occupational health management at the workplace ensuring comprehensive pro- During the Reporting Period

tection of employees’ occupational health and life safety. the Company donated 50000 yuan to the 15th Luoyang City Games and 30000

During the Reporting Period yuan to the Luoyang Charity Federation.Key Performance

The Company conducted on-the-job occupational health examinations for 581 workers exposed

to occupational hazards on February 112025. Tailored to different hazard types such as dust noise

and acid mist 11 targeted physical examination packages were provided covering risk-specific

Key Performance tests including pulmonary function tests pure-tone audiometry and electrocardiograms (ECG).

81 82Luoyang Xinqianglian Slewi n g Bearing Co. Ltd. Indicator Index Key Performance Indicator (KPI) Feedback Form

Appendix Self-Regulatory Guidelines No. ?? for China Corporate Social

Level 1 Heading Level 2 Heading Level 3 Heading Companies Listed on Shenzhen Stock （GRI Standards） Responsibility Exchange—Sustainability Report (For GRI Standards Reporting Guidelines

Trial Implementation) (CASS-ESG 6.0)

Environmental

Indicator Index Compliance

Management / E2.1.1

System Environmental Compliance

Environmental Management

Self-Regulatory Guidelines No. ?? for China Corporate Social Risk Manage- / E2.4.1/E2.4.2

Level 1 Heading Level 2 Heading Level 3 Heading Companies Listed on Shenzhen Stock （GRI Standards） Responsibility Environmental mentExchange—Sustainability Report (For GRI Standards Reporting Guidelines Management

Trial Implementation) (CASS-ESG 6.0) Green Operations / / /

About this

Report / / / 2-1/2-2/2-3 P1.1/P1.2 Three Wastes E1.1.13/E2.1.2/E2.1.5./

Management Pollutant Emission/Disposal 303-2/305-7 E2.1.6/E2.2.1/E2.2.3/Chairman’s

Message / / / 2-22 P2.1 Green & Smart

E2.2.5/E2.2.6

Growth for a

Company

Profile / / 2-1/2-6 P3.1/P3.3 Low-Carbon Material Future Utilization Circular Economy 301-1/301-3 E3.3.2/E3.3.4/E3.3.6Corporate

Culture / / / P3.2

Introduction to Development Resource

Xin qianglian History / / / / Management Energy Energy Utilization 302-1/302-2/302-4/302-5 E3.1.1/E3.1.2./Company Utilization E3.1.4/E3.1.5

Honors / / / /

2025

Milestones / / / / Water Resource Utilization Water Resource Utilization / E3.2.3

Double / 2-9/2-12/2-13/2-17/ G1.1.1/G1.1.2/G1.1.3/Materiality / G1.1.5/G1.1.6/G1.1.7/

Assessment 3-1/3-2/3-3 Ecosystem and G1.1.9/G1.1.10 Biodiversity / Ecosystem and Biodiversity Conservation / E2.3.1/E2.3.3

Sustainability Stakeholder Conservation

Governance Communica- / Stakeholder communication 2-16/2-29 G1.3.1/G1.3.2

tion Governance

Sustainability 203-2 S2.2.2/S2.2.12

Goals / / 2-22 G1.1.11

Strategy / S2.1.1

Organizational / / Impact Risk

Party Building Development /

Party Building and Opportuni- /GuidanceGoals S2.1.1

Practice / / / ty Management

Governance / / Innova- Indicators and

Innovation-Driven S2.1.4/S2.1.5/S2.1.6/

Structure 405-1 tion-Driven Objectives / S2.1.7/S2.1.8/S2.1.9/Shareholders' / / / S2.1.10/S2.1.11

Corporate Meeting Innova-

Governance Board of / / / tion-Driven / S2.1.3Directors Measures

Directors’ and Senior Intellectual

Management’s / 2-18/2-19/2-20 / Property

Remuneration

Management Protection

//

Scientific and

Solid Founda- Information Technological Scientific and Technological / /

tion through Disclosure / / / Ethics Ethics

Governance Investor Risk Manage- Governance S3.3.1/S3.3.2Right Conduct /Relations ment

//

Responsible Investigation Quality &

through Management Efficiency Compliance Compliance and Sharehold- Synergy &

Strategy / /

Operation / /

ers’ Rights and Win-Win Impact Risk

Interests Tax Manage- /ment 207-2

/ and Opportuni- / /

Related Party ty Management

Transaction / 2-15 / Product Safety and Service Indicators and Product and Service Safety and Objectives Quality / /Anti-Commer- G2.1.1/G2.1.2/G2.1.3 Quality

cial Bribery and Anti-Commercial Bribery and 205-2/205-3 /G2.1.4/G2.1.5/G2.1.6

Anti-Graft Anti-Graft /G2.1.7 Product Quality Business Ethics Control / S3.3.5

Anti-Unfair Anti-Unfair Competition

Competition / G2.2.1/G2.2.2/G2.2.3 Customer

Service / S3.3.4/S3.3.6

Assurance

Governance /

Data Security

Management / S3.4.1/S3.4.3Green & Smart Strategy /

Growth for a Data Security

Low-Carbon Climate Action Impact Risk Addressing Climate Change and Customer Data Security Data Security and Customer Privacy

Future and Opportuni- 201-2 E1.1.3/E1.1.6 Privacy Risk Manage- Protection

/ S3.4.2

ty Management Protection ment

Indicators and E1.1.4/E1.1.7 Data Security / /

Objectives 305-1/305-2/305-4 /E1.1.8/E1.1.15 Practices

83 84Luoyang Xinqianglian Slewin g Bearing Co. Ltd. Indicator Index Key Performance Indicator (KPI) Feedback Form

Self-Regulatory Guidelines No. ?? for China Corporate Social

Level 1 Heading Level 2 Heading Level 3 Heading Companies Listed on Shenzhen Stock （GRI Standards） Responsibility Key Performance Indicator (KPI)Exchange—Sustainability Report (For GRI Standards Reporting Guidelines

Trial Implementation) (CASS-ESG 6.0)

Governance 2-6 S3.1.2 Indicator Unit 2025

Strategy / / Governance Dimension Indicators

Impact Risk Supply Chain Security

and Opportuni- / E2.4.1/E2.4.2 Operating Revenue 10000 yuan 462783.93

ty Management

Quality & Indicators and Net Profit 10000 yuan 81815.92

Efficiency Responsible Objectives 2-6/204-1 /

Synergy & Supply Chain Supplier Full Total Tax Payment 10000 yuan 30984.72Win-Win Lifecycle / / S3.1.3

Management Total Number of Shareholders’ Meetings Held Times 2

Supplier ESG

Management / 308-1/414-1 S3.1.4 Total Number of Annual Shareholders’ Meetings Held Times 1

Equal Treatment

of Small and Equal Treatment of Small and Total Number of Extraordinary Shareholders’ Meetings Held Times 1

Medium / /

Enterprises(SMEs) Medium Enterprises(SMEs) Items Reviewed and Approved Items 13

Labor Relations 2-7/2-8/401-1/401-3/ S4.1.1/S4.1.3/S4.1.4/

Management 405-1/408-1/409-1 S4.1.6/S4.1.9/S4.1.11 Number of Board Members Persons 7

Employee

Rights and Compensation

Interests and Benefits 402-2 S4.1.12 Number of Board Meetings Held Times 7

Protection Management

Items 39

Employee Care / / Items Reviewed and Approved

Employee S4.3.1/S4.3.3/S4.3.4/ Board Specialized Committees

Employee Training 404-1 S4.3.6

Training and

Development Vocational Strategy and ESG Committee Meetings Held Times 3

Development 404-2 S4.3.2

Governance 403-1 S4.2.2/S4.2.3 Proposals Reviewed and Approved Items 6

Employee

Strategy / / Audit Committee Meetings Times 6People-Oriented

Empowering

Symbiosis Impact Risk Proposals Reviewed and Approved Items 19and Opportuni- 403-2 S4.2.1

ty Management

Occupational Nomination Committee Meetings Times 1

Health and Indicators and Targets 403-9/403-10 S4.2.5Safety Proposals Reviewed and Approved Items 1

Workplace

Safety 403-3/403-5 S4.2.4/S4.2.6

Measures Compensation and Evaluation Committee Meetings Times 3

Occupational

/ Proposals Reviewed and Approved Items 6Health 403-6/403-7

Assurance

Number of Investor Reception Activities Times 15

Rural

Revitalization Rural Revitalization / S1.1.2/S1.1.4Community

Welfare Number of Site Visits For Investors Times 10Social

Contribution Social Contribution / S1.2.2 Number of Participants In Site Visits Person-Time 88

Indicator Index / / / A2 Exchange Meeting Times 1

Appendix Key Performance / A3 Investor Calls Received

Calls 520

//

Indicator (KPI)

Questions Answered on the Interactive Easy Platform Times 44

Feedback Form / / / A6

Investor Email Inquiries Replied to Percent 64

Cash Dividend Per Share(Proposed) yuan/Share 0.295

Total Cash Dividend (Including Tax) 10000 yuan 12215.53

Percentage of Net Profit In Consolidated Financial Statements Percent 14.93

85 86Luoyang Xinqianglian Slewin g Bearing Co. Ltd. Indicator Index Key Performance Indicator (KPI) Feedback Form

Indicator Unit 2025 Indicator Unit 2025

Total Number of Participants In Anti-Commercial Bribery and

Persons 1436 Social Dimension IndicatorsAnti-Corruption Training

Total Duration of Anti-Commercial Bribery and Anti-Corrup-

tion Training Provided Hours 5744

r&d Investment 10000 yuan 2025 27959.35

Total Number of Directors and Senior Management

Persons 8 r&d Investment As a Percentage of Revenue From Main Operations Percent 6.04Personnel Trained Unit 2025

Total Training Duration For Directors and Senior Manage- Cumulative Number of Authorized Patents Patents 161

ment Personnel Hours 8

Number of People Who Signed Integrity Agreements and

Persons 82 Cumulative Number of Authorized Invention Patents Patents 33Other Commercial Conduct Documents

Environmental Dimension Indicators Cumulative Number of Authorized Utility Model Patents Patents 128

Penalty Incidents of Major Administrative Penalties Imposed Cumulative Number of Authorized Design Patents Items 0

By Ecological Environment and Other Relevant Departments Items 0

Due To Environmental Incidents Specialized and Sophisticated Enterprises That Produce Novel and Unique Products Items 2

Penalty Amount of Major Administrative Penalties Imposed By

Ecological Environment and Other Relevant Departments Due 10000 yuan 0 National High-Tech Enterprises Items 4

To Environmental Incidents

Total Greenhouse Gas Emissions Tons of Co2 Equivalent 224425.90

Total Number of r&d Personnel Persons 362

Direct Greenhouse Gas Emissions (Scope 1) Tonnes of Co Equivalent 119053.61 Proportion of r&d Personnel To Total Employees Percent 15.222

Indirect Greenhouse Gas Emissions (Scope 2) Tonnes of Co2 Equivalent 105372.29 By Educational Background

Greenhouse Gas Emission Intensity Tonnes of Co2 Equivalent/Million yuan 48.49 Master’s Degree

Persons 7

Number of Environmental Protection Training Sessions Times 4 Bachelor’s Degree Persons 78

Number of Participants In Environmental Protection Training Person-Time 80 By Age Group

Duration of Environmental Protection Training Hours 210 Under 30 Years Old Persons 130

Natural Gas 10000 cubic meters 5471.23 Ages 30-40 Persons 176

Gasoline tons 24.59 Over 40 Years Old Persons 56

Diesel tons 220.73 Product Release Qualification Rate Percent 99.74

Total Purchased Electricity kWh 195314710.29 Number of Quality Internal Audits Conducted Times 18

Fossil Fuel Consumption tons of standard coal equivalent (tce) 73125.17 Number of Products Recalled Units 0

Total Direct Energy Consumption tce 73125.17 Number of Sold (Or Shipped) Products Requiring Recall Units 0

Total Indirect Energy Consumption tce 24004.18 Including: Number of Products Recalled Due To Health Or Safety Reasons Units 0

Total Consumption tce 104332.00 Product Recall Rate Percent 0

Photovoltaic Power Generation Kilowatt-Hour 58605801.59

Including: Percentage of Products Recall Due To Health Or Safety Reasons Percent 0

Renewable Energy Consumption Ton of Standard Coal 7202.65

Number of Quality Training Sessions Held Times 20

Total Clean Energy Usage Ton of Standard Coal 7202.65

Number of Participants Persons 491

Proportion of Renewable Energy Consumption Percent 6.90

Total Training Hours Hours 16589.5

Number of Information Security Drills Held Times 1

Number of Participants Persons 50

Average Training Hours Per Employee Hours 1

87 88Luoyang Xinqianglian Slewin g Bearing Co. Ltd. Indicator Index Key Performance Indicator (KPI) Feedback Form

Indicator Unit 2025 Indicator Unit 2025

Total Suppliers Suppliers 78 Total Number of Training Attendances Person-Time 13670

Number of Suppliers With Quality Management System Certification Suppliers 52 Employee Training Coverage Rate Percent 67

Number of Suppliers With Environmental Management System Certification Suppliers 41 Total Training Hours Hour 1452

Number of Suppliers With Occupational Health and Safety Management System Certification Suppliers 40 Average Training Hours Per Employee Per Year Hours/Person 0.61

Ratio of Procurement Expenditure To Local Suppliers Percent 21.48 Number of Safety Emergency Drills Conducted Sessions 11

Esg Training Conducted For Suppliers Times 2 Investment In Work Safety 10000 yuan 1685.16

Duration of Esg Training Conducted For Suppliers Hours 8 Workplace Safety Investment As a Percentage of Operating Revenue Percent 0.36

Total Number of Employees Persons 2379 Total Investment In Safety Training 10000 yuan 20.52

Number of Disabled Employees Persons 28 Number of Safety Training Sessions Session 71

Retired Military Personnel Persons 57 Number of Safety Training Sessions For New Employees Session 58

Number of Ethnic Minority Employees Persons 6 Number of Participants In Safety Training Person-Time 4559

Percentage of Ethnic Minority Employees Percent 0.25 Number of Participants In Safety Training Persons 2278

Total Number of New Employees Persons 830 Total Safety Training Duration Hours 16435

Total Number of Employee Departures Persons 200 Average Safety Training Hours Per Person Hours 7.21

Overall Employee Turnover Rate Percent 10 Safety Training Employee Coverage Percent 95.75

Number of Female Managers Persons 20 Number of Certified Special Operation Personnel Persons 86

Proportion of Female Managers Percent 21.51 Total Number of Personnel Holding Special Operation Certificates For Special Operations Persons 86

Total Number of Employees Eligible For Parental Leave Persons 16 Certification Rate of Special Operation Personnel Percent 100

Total Number of Employees Taking Parental Leave Persons 9

Return-To-Work Rate of Employees After Parental Leave Percent 100

Cumulative Number of Items Approved By the Staff Congress Items 3

Number of Items Approved By the Labor Union Items 3

Number of Labor Union Members Persons 562

Proportion of Active Employees Percent 24

Number of Employees Regularly Evaluated For Performance and Career Development Persons 1581

Proportion of Employees Regularly Evaluated For Performance and Career Development Percent 66

Investment In Employee Training 10000 yuan 85.10

Number of Employee Training Sessions Sessions 137

Number of New Employee Training Sessions Sessions 59

Total Number of Employees Trained Persons 1601

89 90Luoyang Xinqianglian Slewin g Bearing Co. Ltd. Indicator Index Key Performance Indicator (KPI) Feedback Form

Feedback Form 8. Any other opinions on Xinqianglian's environmental social and governance (ESG) efforts

Thank you for reading the ???? Sustainability Report of Luoyang Xinqianglian Slewing Bearing Co. Ltd. To improve

Xinqianglian’s work in environmental social and governance aspects further enhance the Company’s capacity and

level of sustainable development and strengthen communication with all sectors of society we sincerely hope you

can take time from your busy schedule to provide valuable comments and suggestions on our work and this report

and share them with us through the following channels.Company phone: 0379-62811096

Company fax: 0379-62811095

Company website: www.lyxqlbearing.com.cn

Company email: xql@lyxql.com.cn

Contact address: No.8 Yingyun Road Luoxin Park Economic and Technological Development Zone Xin’an County

Luoyang City Henan Province

Your information

Name:___________________ Contact Number:___________________

Organization:___________________ Email:___________________

Multiple Choice (Please tick √ in the appropriate position)

1. Your overall evaluation of Xinqianglian's 2025 Environmental Social and Governance (ESG) Report:

□ Good □ Average □ Needs Improvement □ Not Familiar

2. How do you think Xinqianglian performs in customer service

□ Good □ Average □ Needs Improvement □ Not Familiar

3. How do you think Xinqianglian performs in technological innovation

□ Good □ Average □ Needs Improvement □ Not Familiar

4. How do you think Xinqianglian performs in corporate governance

□ Good □ Average □ Needs Improvement □ Not Familiar

5. How do you think Xinqianglian performs in employee team building

□ Good □ Average □ Needs Improvement □ Not Familiar

6. How do you think Xinqianglian performs in social welfare

□ Good □ Average □ Needs Improvement □ Not Familiar

7. How do you think Xinqianglian performs in sustainable supply chains

□ Good □ Average □ Needs Improvement □ Not Familiar

9192