Stock Code：300939

Contact：Securities Affairs Department Tel：0755-86106838

Address：No. 39 Jinyuan Road He’ao Yuanshan Subdistrict Fax：0755-86106838 Environmental Social and

Longgang District Shenzhen

Email：qiutw@av-display.com Governance (ESG) Report

Shenzhen AV-Display Co. Ltd.CONTENTS

01 Report Preface 01 Deepening Governance: 04 Unite as One: 05 Public Welfare:Laying a Solid Foundation Empower Talent Growth United Hearts for 01 About This Report for Development Goodness

03 Chairman’s Message

Corporate Governance Regulation 25 Occupational Health and Safety 93 Rural Revitalization 119

Investors’ Rights and Interests Protection 31 Protection of Employees’ Legitimate Public Welfare and Charity 120

Rights and Interests 102

Maintaining Integrity and Clean Governance 33

Employee Training and Development 113

05 Glance at AVD

05 Company Profile

13 2025 Performance Highlights

02 Green Innovation:Painting an Ecological Picture

15 ESG Management

Response to Climate Change 39

15 ESG Goals and Vision

Ecosystem and Biodiversity Conservation 44

17 ESG Governance

Environmental Compliance Management 45

19 Communication with Stakeholders

Resource Management 53

20 Management of Key Issues

121 Future Outlook 03 Meticulous Efforts:Forging Quality Benchmarks

123 Appendix

Innovation as the Driver 61

Supply Chain Management 70

Product and Service Safety and Quality 77

Data Security and Privacy Protection 87Report Preface

About This Report Data Sources

The financial data in this report is extracted from the 2025 Annual Report of Shenzhen AV-Display Co. Ltd. Other information and

data are sourced from statistical summaries from the Company’s relevant departments or public documents. The report

Report Introduction contains no false records misleading statements or material omissions. Unless otherwise specified all monetary amounts in

this report are expressed in RMB.This report is the third Environmental Social and Governance (ESG) Report disclosed by Shenzhen AV-Display Co. Ltd

(Stock Code: 300939; Stock Abbreviation: AVD). Adhering to the principles of objectivity standardization transparency and

comprehensiveness the report details the actions and achievements in environment society and corporate governance by

AVD and its wholly-owned subsidiaries and holding subsidiaries (hereinafter referred to as “holding subsidiaries”) in 2025. Definition and Explanations

For ease of expression and reading “Shenzhen AV-Display Co. Ltd” in this report may also be referred to as “AVD” “theReporting Scope Company” or “we” . The above terms may also include wholly-owned subsidiaries and holding subsidiaries consolidated in

the financial statements of Shenzhen AV-Display Co. Ltd. The following are some of the subsidiaries covered in this report

along with their abbreviations:

Timeframe: The report covers the period from January 1 2025 to December 31 2025. To improve the comparability and

completeness of the report some descriptions and data have been appropriately traced back or extended.Organizational Scope: Unless otherwise specified this report covers AVD and its holding subsidiaries (for details please Term Interpretation

refer to the 2025 Annual Report of Shenzhen AV-Display Co. Ltd.).Ganzhou AVD Ganzhou AV-Display Co. Ltd

Release Cycle

This ESG Report is published annually.Beijing AVD Beijing AV-Display Technology Co. Ltd

Preparation Basis

Ruidisheng Shenzhen Ruidisheng Technology Co. Ltd

No. 2 Guidelines of the Shenzhen Stock Exchange for the Self-discipline Regulation of Listed Companies on

Growth Enterprise Market (GEM) Board

No. 3 Guidelines of the Shenzhen Stock Exchange for the Self-discipline Regulation of Listed Companies on Report Access and Feedback

Preparation of Sustainability Reports

No. 17 Guidelines of the Shenzhen Stock Exchange for the Self-discipline Regulation of Listed Companies on This report is published in both Chinese and English. In case of any discrepancy or conflict between the two versions the

Sustainable Development Report (Trial Implementation) Chinese version shall prevail. You can access and download the electronic version of the report on the official website of the

Shenzhen Stock Exchange (http://www.szse.cn/) CNINFO (http://www.cninfo.com.cn/) and the official website of Shenzhen

China Enterprise Sustainability Reporting Guide (CASS-ESG 6.0) by the China Enterprise Reform and AV-Display Co. Ltd. (https://av-display.com.cn/).Development Research Association For any comments or suggestions regarding the report please contact us through the following channels:

Global Reporting Initiative (GRI) Sustainability Reporting Standards (GRI Standards) Address: No. 39 Jinyuan Road He’ao Yuanshan Subdistrict Longgang District Shenzhen

Tel: 0755-86106838

Sustainable Development Goals (SDGs) of the United Nations

Fax: 0755-86106838

Task Force on Climate-related Financial Disclosures (TCFD) Framework Email: qiutw@av-display.com

Sustainability Accounting Standards Board (SASB) Standards

01 02“Chairman’s MessageDear Shareholders Partners Employees and Friends from All Walks of Life： Governance Responsibility: Compliance and Transparency Safeguarding Long-Term Value

Welcome to the 2025 Environmental Social and Governance (ESG) Report of Shenzhen AV-Display Co. Ltd. On the occasion Standardized and efficient corporate governance is the fundamental guarantee for the Company’s steady and long-

of this report’s release I would like to extend on behalf of the Board of Directors our sincere gratitude to all parties term progress. The Company always adheres to the principles of compliance transparency integrityand efficiency

who have long cared for supported and accompanied AVD’s development. It is your trust and partnership that have continuously improving its governance structure and internal control system strengthening risk prevention and

provided lasting momentum for AVD’s long-term growth. decision-making scientificity to ensure stable operations in a complex market environment. In 2025 the Company

formulated and implemented a series of systems including the Management System for Resignation of Directors and Senior

In 2025 the global economic landscape is complex and volatile with a marked increase in uncertainties. The wave of Management Management System for Disclosure Suspension and Exemption Internal Review System for Information Release and Reply

artificial intelligence is surging forward profoundly reshaping the pathways of industrial upgrading and the models of on the Interactive Easy Platform and Market Value Management System further enhancing the standardization and refinement

corporate development. Sustainable development has become a core imperative and an inescapable responsibility for of governance. The Company places great emphasis on protecting shareholders’ rights and interests focusing on

high-quality corporate growth. As a public company and a responsible corporate citizen AVD adheres steadfastly to its core business improving quality and continuously optimizing returns to investors. Based on truthful accurate

a long-termism approach deeply integrating ESG principles into its strategic planning and full-spectrum operations. complete timely and fair information disclosure it continuously improves the quality and efficiency of investor relations

It proactively embraces the trends in AI technology exploring a synergistic development model of "ESG-led + AI- management enhancing the capital market’s value recognition of and long-term confidence in the Company.empowered" growth. By leveraging innovation-driven strategies green transformation and AI-enabled synergies

AVD continuously strengthens its foundation for sustainable development steadily enhances its core competitiveness Looking Ahead: Responsibility Leads to Long-Term Success Acting for Good

and capacity for long-term sustainability fulfills its corporate social responsibilities through concrete actions and

contributes to the advancement of ecological civilization and the comprehensive green transformation of the economy The road ahead is long and arduous but with sustained actions we will reach our destination. Perseverance leads to aand society. promising future. In 2026 AVD will continue to uphold its corporate mission: “Presenting the world restoring the truth;connecting things and creating value.” It will persistently embrace the wave of AI development explore scenario-based

Environmental Responsibility: Green and Low-Carbon Protecting Our Planet applications of AI technology in production R&D management and other areas empower sustainable development

with intelligent innovation and deepen ESG governance and practices with higher standards and more concrete

Environmental protection is a crucial cornerstone of corporate sustainable development. In 2025 the Company adhered measures transforming responsible competitiveness into a long-term development advantage. We are willing to work

to the principles of green manufacturing and low-carbon operations continuously increasing investment in green hand in hand with all stakeholders united in heart and mind using responsibility as an anchor innovation as a sail and

technology R&D optimizing production processes and energy management systems improving resource utilization intelligence as wings to jointly build a more resilient and inclusive sustainable future!

efficiency and promoting the application of renewable energy to provide the market with more environmentally friendly

products and solutions. Actively responding to global climate governance initiatives and based on its business realities

the Company established quantifiable and executable carbon neutrality goals systematically advanced climate change Chairman of AVD Huang Zhiyi

response and management continuously enhanced climate resilience and contributed its corporate strength to the

construction of a Beautiful China and global ecological protection.Social Responsibility: People-Oriented Creating Shared Value

Corporate growth is rooted in social progress industrial prosperity and employee dedication. The Company always

adheres to a people-oriented philosophy regarding employees as its most valuable asset. It is committed to creating

an equal inclusive and diverse career development platform providing employees with fair development opportunities

and comprehensive growth support. In 2025 the Company successfully implemented an Employee Stock Ownership

Plan further refining the long-term incentive and restraint mechanism to achieve shared interests risk-sharing

and mutual growth between employees and the Company. Simultaneously the Company actively fulfills its social

responsibilities by giving back to society through public donations consumption assistance volunteer services and

other forms. It insists on synergizing economic and social benefits promoting the benefits of development to more

stakeholders.

03 ” 04Glance at AVD Product Introduction

Product Type Product Description Product Application Diagram Application Fields

Company Profile

A flat ultra-thin

Corporate Profile monochrome display

device that uses

voltage to drive liquid

Shenzhen AV-Display Co. Ltd. was established in 2004 and was listed on the Growth Enterprise Market of the Shenzhen Monochrome crystal molecules

Stock Exchange on January 28 2021 (Stock Abbreviation: “AVD” Stock Code: “300939”). As a national high-tech enterprise LCD changing their

it specializes in the R&D design production and sales of LCD and touch products. Upholding the corporate mission of alignment state to

“presenting the world restoring the truth connecting things and creating value” the Company provides customers with produce display

customized touch display integrated solutions and is committed to becoming a leading one-stop service provider for images.human-machine interface and intelligent control products. The Company headquarters is located in Shenzhen Guangdong

with production bases in Shenzhen and Ganzhou (construction of the production base in Thailand is proceeding smoothly)

and has established marketing networks in South China East China North China West China Taiwan (China) Europe

North America and the Asia-Pacific region. The Company’s products are exported to North America (the United States and

Canada) Europe (Germany the United Kingdom France Belgium Switzerland the Netherlands Turkey etc.) Asia (Japan Composed of

South Korea etc.) and Taiwan China enjoying a strong reputation in the market. a monochrome

LCD supporting

Monochrome components and

LCM other electronic

parts enabling

monochrome graphic

display. Various fields including

industrial control and

automation IoT and

smart living medical

health automotive

electronics

Composed of a color

LCD supporting

Color components and

LCM other electronic

parts enabling color

Ganzhou Factory Shenzhen Headquarters and Factory graphic display.A human-machine

interaction device

that uses the

capacitive sensing

Capacitive between the

human body and

Touch Panel the touch screen

for positioning

enabling display and

Shenzhen Industrial Base (Under Construction) Thailand Production Base (Under Construction) information input/

output.

05 062025 Environmental Social and Governance (ESG) Report

Corporate Culture

Mission Core Values Vision Enterprise Spirit Code of Conduct

Presenting the World Treat People with Warmth To Be the Leader of the Integrity Initiative Comply with Laws Be Diligent

Restoring the Truth; Handle Matters with Human-Computer Interface Teamwork Innovation and Responsible; Unite and

Connecting Things and Precision Industry Collaborate Treat Others with

Creating Value Sincerity; Learn and Innovate

Strive for Excellence

Chongqing Ganzhou

Denmark Beijing South Korea

United Kingdom Germany

United States

Japan

Hangzhou

Taipei Hong Kong

India

Thailand

France

Shenzhen (Headquarters) & Factory

Italy Turkey

Headquarters and Sales Subsidiaries and Sales Office Partner / Representative

Manufacturing Base Manufacturing Bases

07 08Milestones

20042009201320142015

AVD Established Capacitive Touch Panel Ground Breaking Ceremony Held New Investment in TFT TP Full Lamination

Production Commenced for the New Factory in Ganzhou Production Workshop Production

Commenced

2019201820172016

IoT Product Line Installed Set up 2nd LCD Panel COG Production Line 1st LCD Line put into

Production Line in Ganzhou Set up in Ganzhou Operation in Ganzhou

20202021202320242025

Set up 3rd LCD Panel IPO in Stock Exchange Shenzhen Industrial EPD Product Line Set up Construction of

Production Line in Ganzhou Park Building Thailand Production

Base Started

09 10Partial Corporate Honors in 2025 ESG Ratings

In 2025 the Company’s continuous improvements in environmental protection social responsibility and corporate

AVD AVD governance (ESG) were recognized by multiple rating agencies and it achieved favorable evaluations in various ESG rating

systems. As of public data from April 2026 the Company received a Wind ESG rating of A (30th/508) a SynTao Green

The 20th China Listed Company Board of Dun & Bradstreet Registered Finance ESG rating of A and a Huazheng ESG rating of AA.Directors “Golden Round Table Award”--- Certification Enterprise

Excellent Board of Directors

Board of Directors Magazine Dun & Bradstreet Inc.AVD Ganzhou AVD

Wind ESG Rating SynTao Green Finance ESG Rating Huazheng ESG Rating

Technology Innovation Award Green Factory

Ministry of Industry and Information

Shanghai Securities News Technology Jiangxi Provincial Department

of Industry and Information Technology

AVD AVD

Agile Response Award Best in Class Quality Award

Wuhan Shengfan Investment Genus Power Infrastructures Ltd.-

Group Co. Ltd. India

AVD AVD

2025 Best ESG Practice Award for Listed 2025 “Best Practice in CorporateCompanies Sustainable Development” Excellent Case

Shenzhen Value Online Information Shenzhen Green Finance Association

Technology Co. Ltd.

11 122025 Environmental Social and Governance (ESG) Report

2025 Performance Highlights

Economic Performance Environmental Performance

Operating Income Net Profit Attributable to Parent Company Investment in Environmental Facilities Number of Environmental Emergency Drills Conducted

129178.81 RMB 10000 7969.68 RMB 10000 350.94 RMB 10000 5 Times

Basic Earnings per Share Total Assets Total Factory Electricity Consumption Renewable Energy Generation

0.67 RMB/share 192386.37 RMB 10000 3856.61 10000 kWh 25.44 10000 kWh

Total Taxes Paid Total Greenhouse Gas Emissions Reclaimed Water Reuse Volume

2983.38 RMB 10000 196627.18 tCO2e 4.20 10000 tons

Reclaimed Water Recovery Efficiency Waste Recycling and Reuse Proportion

Corporate Governance Performance 68.21 % 72.16 %

Number of Shareholders’ Meetings Held Number of Board of Directors Meetings Held

2 Times 4 Times Social Performance

Proportion of Female Directors on the Board Proportion of Independent Directors on the Board R&D Investment Number of Granted Patents Owned

28.57 % 42.86 % 9409.32 RMB 10000 155 Items

Investor Communication Activities Replies on Interactive Easy Platform Data Security Investment Total Number of Employees

11 Times 141 Items 91.65 RMB 10000 2484 Persons

Anti-Bribery and Anti-Corruption Training Sessions Anti-Monopoly Training Sessions Number of Female Employees Employee Benefits Coverage Rate

2 Times 2 Times 1221 Persons 100 %

Employee Signing Rate of Integrity and Self-Discipline Commitment Letter Safety Hazard Rectification Rate Number of Safety Emergency Drill Sessions Conducted

100 % 100 % 23 Sessions

13 14ESG Management Focus Areas Corresponds to the Following Titles AVD 2025 Initiatives SDGs

The Company continuously strengthens

its own innovation and R&D capabilities

ESG Goals and Vision building a comprehensive talent support

mechanism and technological innovation

system; constructs a sustainable supply

Meticulous Efforts: chain incorporating sustainability content

AVD actively implements the new development philosophy of innovation coordination green openness and sharing Forging Quality into supplier audits; implements strict full

integrating it into all areas and processes of its business operations. While fulfilling social responsibilities and contributing to Benchmarks lifecycle quality management for products

society the Company steadily promotes environmentally friendly development taking concrete actions to help achieve the continuously improves the after-sales

United Nations Sustainable Development Goals (SDGs). service management system; strengthens

the information security management

system to safeguard the privacy of the

Corresponds to the

Focus Areas Company and its customers.Following Titles AVD 2025 Initiatives SDGs

The Company continuously improves

its governance structure and operating

mechanisms strengthens compliance

Deepening

risk management and internal control

Governance:

Corporate system construction; values investor rights

Laying a Solid

Governance protection communicates with investors The Company establishes an incentive-

Foundation for

through multiple channels; strictly fulfills based compensation mechanism

Development

information disclosure obligations protecting safeguards employees’ rights to democratic

the legitimate rights and interests of minority communication strengthens rights

shareholders. Social Unite as One: protection and humanistic care; builds a

Responsibility Empower Talent comprehensive training and development

Growth system to create a learning organization;

continuously optimizes the EHS

management system to comprehensively

build a strong line of defense for employee

occupational health and safety.The Company actively responds to the “dualcarbon” strategy orderly carries out carbon

inventory and carbon footprint certification

work systematically manages climate risks

and seizes climate opportunities; promotes

the substitution of fossil fuels with renewable

energy explores green packaging solutions

Green Innovation:

Sustainable improves energy and resource utilization

Painting an

Manufacturing efficiency and implements the concept

Ecological Picture

of circular economy; steadily upgrades

pollution prevention facilities and promotes

environmental protection technologies; The Company actively assumes social

systematically promote the protection and responsibility promoting rural revitalization Public Welfare:

management of biodiversity throughout the through consumption assistance United Hearts for

entire process from site selection and layout educational support and other means; Goodness

project construction to daily operation. joins hands with all sectors of society to

jointly foster good community relations.

15 16ESG Governance ESG Performance Evaluation Mechanism

To further implement the ESG development concept and establish a scientific and effective incentive and restraint

mechanism the Company formulated the Compensation Management System for Directors and Senior Management incorporating

Governance Framework ESG indicators (including production safety product quality business ethics anti-corruption etc.) into the performance

evaluation system for directors and senior management linking them to compensation determination distribution and

To further strengthen the Company’s social responsibility managementpromote sustainable economic social and adjustments.environmental development and actively fulfill ESG responsibilities AVD optimized its ESG management system during the

Reporting Period revised the Environmental Social and Governance (ESG) Management System and established a top-down ESG Risk Management

governance structure with clear rights and responsibilities.AVD formulated the Guidelines for Control Measures to Address Risks and Opportunities established a comprehensive risk and

AVD ESG Governance Framework and Responsibilities opportunity management system simultaneously improved the internal control structure comprehensively enhanced the

Company’s risk resistance capability and ensured the stability and sustainability of business operations. Bench marking

against the International Sustainability Standards Board (ISSB) IFRS S1 S2 and relevant domestic guidance requirements

Levels Governing Body Responsibilities the Company systematically identifies and assesses risks in areas such as environment energy carbon emissions

occupational health and safety labor ethics and social responsibility develops specific risk response measures continuously

monitors implementation progress regularly evaluates the effectiveness of risk management and reports to management.The Board of Directors as the top-level core for ESG risk management promotes the deep integration and synergistic

implementation of risk management and corporate sustainability.Responsible for determining the Company’s ESG

strategy objectives reviewing and approving the ESG Due Diligence

Board of Directors

Management System and evaluating ESG Reports and

Decision-making significant ESG-related matters. The Company attaches great importance to the identification and management of ESG risks striving to deeply integrate

Level the concept of sustainable development into the entire process of business operations and value creation. In key areas

such as supply chain management and major collaborations we proactively assess the performance and potential risks of

relevant parties in areas including energy conservation and emission reduction the use of conflict minerals protection of

labor rights occupational health and safety and integrity and compliance. Through these efforts we continuously enhance

our overall risk resilience and work together with all stakeholders to build a responsible transparent and long-term resilient

sustainable development ecosystem.Responsible for coordinating internal and external

ESG-related efforts researching laws regulations ESG Training

policies and material ESG issues applicable to the

Strategy and ESG

Company identifying and managing ESG-related risks

Committee AVD consistently regards ESG professional capability building as a core support for high-quality development. During the

and opportunities with significant impacts on business

Management Reporting Period the Company invited third-party experts to conduct ESG-specific training for management and employees operations and guiding the daily implementation of

Level from various departments comprehensively reviewed the achievements and shortcomings of ESG work in 2024 identified ESG initiatives as well as the preparation of ESG reports.priorities and improvement paths for ESG work in 2025 helped relevant teams enhance ESG management efficiency and

promoted the deep integration of sustainable development concepts into all aspects of business operations. In 2025 the

Company conducted 2 ESG training sessions covering 29 participants.The ESG Special Task Force is divided into the ESG

Leadership Team and the ESG Execution Team.Members of the ESG Leadership Team are the

Chairman General Manager and Board Secretary;

members of the ESG Execution Team are appointed or

ESG Special Task invited by the ESG Leadership Team primarily heads of

Force relevant functional departments of the Company and

Execution its subsidiaries. The ESG Special Task Force assumes

Level primary responsibility within its scope of duties

responsible for implementing ESG tasks according to

the Company’s overall plan and regularly reporting on

execution status. 2024 ESG Project Summary and 2025 Work 2025 ESG Report Project Kick-Off

Improvement Meeting Meeting

17 18Communication with Stakeholders Management of Key Issues

AVD values communication with stakeholders establishing smooth and diverse communication channels with various The Company has fully referenced Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 17 – Sustainability

stakeholder groups to share the Company’s latest developments. We actively respond to stakeholder expectations and Reporting (Trial) (hereinafter referred to as the Guidelines) and closely integrated industry-specific characteristics with its

requests through concrete actions working together to build a sustainable future. operational realities. It conducted a comprehensive evaluation of its performance across relevant sustainability Issues to

determine whether these Issues could exert significant impacts on economic social and environmental dimensions (Impact

Materiality) while also assessing whether each issue might substantially affect the Company’s business model operations

Communication Channels strategic development financial status cash flow financing methods and costs and value chain (Financial Materiality). By Stakeholders and Frequency Expectations and Requests Our Response applying this dual materiality analysis and aligning with international mainstream sustainability reporting standards the

Company systematically prioritized Issues within its sustainability agenda through the following steps:

Daily Communication Corporate Governance Regulation

(Non-scheduled) Corporate Governance Regulation

Compliance and Risk Management

On-Site Visits (Non-scheduled) Maintaining Integrity and Clean

Tax Compliance Governance

Work Reports (Non-scheduled)

Government Anti-Bribery and Anti-Corruption Promoting Energy Conservation Issue Evaluation Process Analysis Method

and Regulatory Information Disclosure (Non- and Emission Reduction

scheduled) Environmental Compliance Authorities Management

Interactive Easy Platform Conduct an analysis grounded in global megatrends China’s industrial development

(Real-time) Step 1: Learn About

Protecting Shareholders’ Rights Stakeholder Engagement trends within the macro-environmental context industry-specific dynamics and the Investor Hotline the Company and Interests Company’s business model to identify stakeholders and assess the impacts risks

Email (Real-time) Investors’ Rights and Interests Background

Anti-Bribery and Anti-Corruption Protection and opportunities faced by the Company.Performance Briefing (Annual)

Encouraging R&D and Innovation

Shareholders Stakeholder EngagementOnline Collective Reception

and Investors Day for Investors (Annual) R&D and Innovation R&D Platform Development

On-Site Research Receptions

(Non-scheduled) Use the 21 issues set out in the Guidelines as the base for the issue list. Reference

Employee Representative Step 2: Initial Issue international mainstream sustainability reporting standards and peer industry issues. Occupational Health Protection

Congress (Non-scheduled) Screening Align with the UN SDGs to establish the Company’s 2025 ESG issue pool totaling 29

Occupational Health and Employee Rights ProtectionOfficial WeChat Account issues.(Non-scheduled) Production Safety Compensation and Benefits

Management

Employee Suggestion Box Employee Training and

(Real-time) Development Employee Training Management

General Manager Mailbox Protection of Employees’ Employee Career Development

Employees (Real-time) Legitimate Rights and Interests Pathways

Employee Communication Strengthening Democratic Impact Materiality Assessment

Meetings (Non-scheduled) Management and Employee Care

Identify potential or actual positive or negative impacts of each issue on the external

After-Sales Service

(Non-scheduled) environment society and economy. Analyze stakeholder input through surveys (511

Satisfaction Surveys Data Security and Privacy Information Security Management questionnaires collected) combined with expert judgment to assess issues with

(Annual) Protection Step 3: Issue

Product Quality Management impact materiality.Company Website and Product and Service Safety Materiality Email (Non-scheduled) and Quality Customer Service Management Assessment Financial Materiality Assessment

Official WeChat Account

Customers (Non-scheduled) Through impact analysis dependency assessment and evaluation of other

contributing factors coupled with expert judgment and risk assessment checklists

Daily Communication

(Non-scheduled) from various departments we systematically identify and evaluate risks and

Supply Chain Management

Specialized Training opportunities under relevant themes prioritizing those with financial materiality.

(Annual) Supply Chain Security Responsible Procurement

Service Hotline (Real-time)

Conflict Minerals Management

Suppliers Email (Real-time)

Public Welfare and Charity

Activities (Annual)

Volunteer Services Assisting in the Rural Step 4: Issue

(Non-scheduled) Rural Revitalization Revitalization of Partner Areas Develop a list of impact materiality and financial materiality issues ensuring Confirmation and

Cultural Exchanges transparent balanced and comprehensive disclosure of these issues in the report.Social Contribution Participating in Social Welfare Approval

(Non-scheduled) Activities

Communities Paired Assistance

(Non-scheduled)

19 20AVD Materiality Matrix AVD Material Issue Identification List

20 Issues

28 3 Materiality

Description

17 Environmental Social Governance 27

29 Dimension Dimension Dimension19 7

4 6 Response to Climate

5 1626 24 12 2 Change Occupational Health and

15 Safety25 23 14 Environmental Compliance

Issues with both Management Innovation as the Driver

21 11 Financial and Impact Energy Utilization Product Safety and Quality /

10 9 Materiality

22 1 Pollutant Emissions Responsible Supply Chain Management

Waste Management

1318

8

Issues with Financial

Materiality but No / / /

Impact Materiality

Materiality to Corporate Finance Very High

Protection of

Shareholders’ Rights and

Issues with Impact Materiality but No Issues with both Financial and Impact Interests

Financial Materiality Materiality Protection of Employees’

Legitimate Rights and Regulation of Corporate

Issues with neither Financial nor Impact Issues with Financial Materiality but No Interests Governance

Materiality Impact Materiality

Employee Training and Anti-Bribery and Anti-

Development Corruption

Issues with Impact Water Resource Utilization Customer Rights Anti-Unfair CompetitionProtection

1 Environmental Compliance 9 Protection of Employees’ Legitimate Protection of Shareholders’

Materiality but No

Management Rights and Interests 21 Rights and Interests Financial Materiality Circular Economy

Tax Compliance

Information Security and

2 Energy Utilization 10 Employee Training and Development 22 Regulation of Corporate Governance Privacy Protection Risk Management

3 Response to Climate Change 11 Occupational Health and Safety 23 Anti-Bribery and Anti-Corruption Social Contribution Due Diligence

4 Circular Economy Anti-Unfair Competition Rural Revitalization Communications with 12 Innovation as the Driver 24 Stakeholders

5 Water Resource Utilization 13 Technology Ethics 25 Tax Compliance ESG Governance

6 Pollutant Emissions 14 Product Safety and Quality 26 Risk Management

7 Waste Management 15 Customer Rights Protection 27 Due Diligence

8 Ecosystem and Biodiversity Information Security and Privacy Conservation 16 Protection 28 Communications with Stakeholders

17 Responsible Supply Chain Management 29 ESG Governance Issues with neither Technology Ethics

18 Equal Treatment of Small and Financial nor Impact Ecosystem and Biodiversity Medium-Sized Enterprises Conservation Equal Treatment of /

Materiality Small and Medium-Sized

19 Social Contribution Enterprises

20 Rural Revitalization

2122

Very High Importance to the Economy Society and Environment Impacts01

Deepening Governance:

Laying a Solid Foundation

for Development

Our Philosophy

AVD is committed to establishing a governance system with clear rights

and responsibilities and standardized operations. With a scientific and

rational structure we clarify the roles and responsibilities of the Board

of Directors management and various special committees to ensure

efficient decision-making and effective execution. We continuously improve

internal control and risk management mechanisms value investor relations

management always uphold the principle of integrity in operations adhere

to business ethics and laws and regulations and steadily advance towards

sustainable high-quality development goals.Our Actions

Corporate Governance Regulation Strengthening Internal Control

Managing Related-Party Transactions Investors’ Rights and Interests

Protection Upholding Business Ethics

23 24Corporate Governance Operating Mechanism

Regulation Shareholders’ Meeting

Governance Framework The Company strictly adheres to the relevant provisions of the Company Law the Rules for Shareholders’ Meetings of Listed

Companies and the Articles of Association formulating and implementing the Rules of Procedure for Shareholders’ Meetings. The

Company convenes annual and extraordinary shareholders’ meetings in accordance with regulations. The meeting

AVD strictly complies with the requirements of the Company Law of the People’s Republic of China (hereinafter referred to as the notification proposal review and voting procedures strictly follow established rules. The Company provides shareholders

Company Law) the Securities Law of the People’s Republic of China (hereinafter referred to as the Securities Law) the Shenzhen Stock with both on-site and online voting channels. For major matters affecting the interests of minority investors the Company

Exchange Listing Rules and other relevant laws and regulations. It has formulated the Articles of Association of Shenzhen AV-Display counts the votes of minority investors separately and promptly discloses the results effectively safeguarding their

Co. Ltd. (hereinafter referred to as the Articles of Association) and established a governance structure with the Shareholders’ participation and voting rights.Meeting as the supreme authority the Board of Directors as the decision-making body and Senior Management as the

executive body. The Company continuously improves its governance structure refines its internal control system and

enhances its level of standardized operation and governance efficiency. Key Performance

During the Reporting Period the Company convened 2 shareholders’ meetings including 1 annual meeting

Shareholders’

Meeting and 1 extraordinary meeting reviewing and approving 1 7 proposals.Board of

Directors

Strategy and Nomination Audit Remuneration General Office of the

ESG Committee Committee Committee and Appraisal Manager's Committee Office Board Secretary Board of Directors

Strategic Securities

Development ESG Task Force Internal Audit Affairs The Company strictly convenes Board of Directors meetings in accordance with the Articles of Association and the Rules of

Department Department Department Procedure for the Board of Directors regulating the internal structure deliberation and decision-making procedures to ensure

efficient and orderly operation of the Board. During the Reporting Period directors diligently fulfilled their duties attended

Board meetings on time and safeguarded the legitimate rights and interests of the Company and all shareholders. The

Monochrome

Finance Center Ganzhou Display Sales Center Board has four special committees: the Strategy and ESG Committee the Audit Committee the Nomination Committee and Av-display Business Unit the Remuneration and Appraisal Committee. Each committee performs its duties in accordance with the Working Rules for the

Special Committees of the Board of Directors providing professional support for the Board’s decision-making. The Company no

Management Beijing Touch Display Technology longer has a Supervisory Board and the Audit Committee exercises the powers of the Supervisory Board as stipulated in the

Center Av-display Business Unit Center Company Law.Hong Kong IoT Business

Av-display Unit Product Center

Diversity

Thailand E-paper

Av-display Business Unit Quality Center

When electing Board members the Company comprehensively considers factors such as gender age educational

Procurement background professional experience and skills. The Board consists of 7 directors including 1 newly added employee

Center representative director. Currently there are 2 female directors accounting for 28.57%. Each Board member possesses

extensive work experience and diverse professional backgrounds covering skills in applied chemistry fine chemicals

AVD Organizational Chart electrical engineering English electronic engineering law financial management etc. providing support and assurance for

the Company’s decision-making.

25 26Independence Compliance Development

The Company emphasizes the independence of the Board and has formulated the Working System for Independent Directors.Independent directors do not hold any positions in the Company other than directors and members of Board committees. Compliance Management

They independently perform their duties playing roles in participating in decision-making supervision and balance and

professional consultation within the Board to safeguard the overall interests of the Company and protect the legitimate To ensure timely and accurate identification of applicable laws regulations and other requirements corresponding internal

rights and interests of minority shareholders. To ensure the performance of independent directors’ duties the Company implementation and monitoring and evaluation of conformity and to establish robust management systems for quality

formulated the Working System for Independent Directors’ Special Meetings providing convenience and support for convening such environment occupational health and safety medical devices HSF ESD intellectual property RBA and AEO the Company

meetings. As of the end of the Reporting Period the Company had 3 independent directors accounting for 42.86% of the formulated the Compliance Obligations Control Procedure.Board.The Company has established a clear division of compliance responsibilities: the Sales Center is responsible for customer

requirements and business ethics-related regulations; the Product Department is responsible for product-related

Key Performance regulations and standards; the Technology Center is responsible for intellectual property regulations; the Quality Center

is responsible for reviewing testing standards quality HSF medical devices and ESD regulations; the Human Resources

4 36 100 Department is responsible for human rights/labor regulations; the Environmental Protection Office is responsible for During the Reporting Period the Company held Board meetings reviewing proposals with a % environmental regulations; the Safety Office is responsible for occupational health and safety regulations; the Legal

Department is responsible for contract and dispute resolution regulations; the Shipping Department is responsible for

2 3 customs and import/export regulations; the Information Technology Department is responsible for information technology attendance rate; held Independent Director Special Meetings reviewing proposals; the Strategy and ESG security regulations. Each department is responsible for converting relevant requirements into internal rules and supervising

their implementation. The System Department together with the Legal Department is responsible for verification and

assessment and the General Manager’s Office is responsible for approving compliance evaluation results.Committee held 4 meetings reviewing 8 proposals; the Nomination Committee held 0 meetings reviewing

Simultaneously the Company uses regular compliance training as a core approach to guide all employees to deeply

internalize compliance standards and externalize them in their actions effectively promoting compliance requirements to

00 proposals; the Audit Committee held 5 meetings reviewing 1 8 proposals; the Remuneration and Appraisal become instinctive professional habits and behavioral guidelines building a strong compliance defense for the Company’s

high-quality development.Committee held 3 meetings reviewing 5 proposals.Case Study Corporate Legal Compliance Management Training

I n N ove m b e r 202 5 t h e

Company’s Legal Department

Remuneration Management he ld a Co rpo ra te Lega l

Compliance Management

The Company’s Board has a Remuneration and Appraisal Committee. Based on the Company’s actual operating conditions Training. The training focused

and referencing the remuneration levels for similar positions in listed companies in the same region and industry the on corporate legal compliance

Committee formulates and reviews remuneration policies and plans for directors and senior management according to their m a n a g e m e n t o v e r v i e w

positions duties and scope of work. It annually reviews the performance of directors and senior management in fulfilling core e lements pract ica l

their duties conducts annual performance evaluations drafts the annual remuneration plan and further reward/punishment app l i ca t i on cha l l enges

plans based on evaluation results submits them to the Board for review and supervises the implementation of these plans. and responses and future

During the Reporting Period the Company organized relevant meetings to review and approve the Remuneration Plan for d e v e l o p m e n t h e l p i n g

Directors Supervisors and Senior Management for 2025 and also reviewed the compensation for directors supervisors and senior employees so l id i fy the i r

management for 2024. theoretical foundation and

enhance practical operational

skills.To further improve the remuneration management for directors and senior management implement the Environmental

Social and Governance (ESG) development concept establish scientific and effective incentive and restraint mechanisms Corporate Legal Compliance Management Training

maintain the stability of the core management team effectively motivate the work enthusiasm of directors and senior

management and improve the Company’s operational efficiency and management level the Company formulated the

Compensation Management System for Directors and Senior Management during the Reporting Period.

27 28Internal Control Case Study Contract Affairs and Risk Prevention Training

The Company formulates the Internal Control Management System in accordance with the Basic Standards for Enterprise Internal Control

and other relevant laws and regulations. This covers environmental control business control accounting system control

information system control information transfer control internal audit control etc. The Board of Directors is responsible In April 2025 the Company’s General Manager’s Office held a Contract Affairs and Risk Prevention Training.for establishing and effectively implementing internal control while the Audit Committee oversees and evaluates the The training focused on risk prevention related to contract signing parties and specific contract clauses

effectiveness of internal control. Various functional departments and subordinate organizations bear primary responsibility using case studies and practical discussions to help participants strengthen their contract risk prevention

for internal control execution cooperating with the Board and management to continuously improve risk identification awareness and skills.monitoring and prevention mechanisms and regularly inspecting and evaluating the effectiveness of the internal control

system. The Company conducts a comprehensive and in-depth evaluation of internal control effectiveness annually and

truthfully discloses the Internal Control Evaluation Report. Additionally the Company engages external independent third-party

agencies annually to audit the effectiveness of its internal control and issue an Internal Control Audit Report.Internal audit is a key mechanism for monitoring the effective operation of internal controls. The Company formulated

the Internal Audit System. The Audit Department independently conducts audits under the guidance of the Audit Committee

of the Board of Directors with the annual audit plan covering the Company’s key business activities and processes. The Key Performance

Company conducts internal audits quarterly and produces work reports. During the Reporting Period the Company carried

out 14 audit projects identifying 19 issues. As of the disclosure date of this report all issues had been rectified achieving a

100.00% rectification rate.

During the Reporting Period the Company conducted 1 internal risk training sessions with 1 4 participants;

Risk Management

the total hours of internal risk control training was 2 8 . 0 0 hours.The Company identifies and manages risks through systematic audits and evaluation activities. It regularly identifies

analyzes and evaluates internal and external factors in business operations that may prevent the achievement of internal

control objectives determining their impact and likelihood to reasonably formulate risk response strategies. Simultaneously

based on risk assessment results the Company ensures the implementation of relevant policies and procedures through

multiple control measures such as approval verification adjustment review periodic inventory record reconciliation

segregation of duties asset security protection and comparison with plans and budgets keeping risks within acceptable

levels. During the Reporting Period the Company had no major litigation or serious illegal or dishonest conduct. Related-Party Transaction Management

The Company continuously strengthens risk management training to solidify risk awareness across all employees. Through a

combination of regular and ad-hoc specialized training it comprehensively enhances the enterprise’s risk management level To regulate related-party transaction decisions and protect the interests of the Company and minority shareholders the

and response capabilities building a solid foundation for stable operations. Company in accordance with the Company Law and the Articles of Association has formulated the Related-Party Transaction Decision-

Making System and the System for Preventing Capital Occupation by Major Shareholders and Other Related Parties. These documents

specify the review procedures disclosure requirements and pricing principles for related-party transactions. The Company

strictly implements the related-party recusal mechanism requiring related directors and shareholders to abstain from

voting when reviewing related-party transactions. The Company always conducts related-party transactions based on the

principles of fairness justice and openness effectively safeguarding the interests of the Company and all shareholders.Tax Management

The Company strictly complies with national laws regulations and policies such as the Tax Collection and Administration Law of

the People’s Republic of China the Provisional Regulations of the People’s Republic of China on Value-Added Tax and the Enterprise Income Tax

Law of the People’s Republic of China formulating the Financial Management System and Tax Management System. Tax management is

uniformly handled by the Finance Center. The Company diligently fulfills its tax obligations covering tax registration filin3g0

accounting and planning. It regularly identifies internal and external tax risk factors prepares tax risk assessment reports

and develops targeted response plans. Additionally the Company monitors and provides early warnings for tax risks

effectively reducing tax liabilities and enhancing its tax management capabilities.

29 30Investors’ Rights and Information Disclosure

Interests Protection The Company strictly complies with laws regulations and regulatory requirements such as the Administrative Measures for Information Disclosure of Listed Companies and the Shenzhen Stock Exchange Listing Rules and has formulated internal regulations

including the Information Disclosure Management System and the Major Information Internal Reporting System. These clearly define

Protection of Shareholders’ Rights and Interests the scope of major information disclosure standards management processes and accountability mechanisms. The Company designates the Board Secretary as the primary contact for external information release and clarifies the personnel

responsible for reporting major information in each relevant department. During the Reporting Period the Company

The Company formulated the Market Value Management System to firmly establish a sense of responsibility towards shareholders disclosed periodic reports and interim announcements in accordance with the law received a ‘B’ rating for its information

effectively promote the enhancement of the Company’s investment value further standardize market value management disclosure work and was not penalized for any violations in information disclosure.behaviors and safeguard the legitimate rights and interests of the Company investors and other stakeholders. The

Company’s shareholder return policy strictly implements the profit distribution clauses of the Articles of Association formulated

the Shareholder Return Plan for the Next Three Years (2023-2025) and established a sustained and stable dividend decision-making Key Performance

and supervision mechanism. The Company’s profit distribution adheres to the principle of balancing returns to investors with

the sustainable development of the enterprise comprehensively considering factors such as the current operational status

profit scale cash flow situation development stage project investment capital needs and external financing environment. In 2025 the Company issued a total of 1 3 5 announcements and related documents.Profit distribution plans must be reviewed by the Board of Directors and submitted to the Shareholders’ Meeting for

approval.Indicator1 Unit 2023 2024 2025

Investor Relations Management

Cash Dividend Per Share RMB 0.40 0.40 0.20 The Company places great importance on investor relations management and has formulated the Investor Relations Management

System to effectively protect the legitimate rights and interests of investors especially public investors. The Company has

established diversified communication channels maintaining regular communication with investors through the Shenzhen

Stock Exchange Interactive Easy Platform investor hotline email performance briefings online collective reception days for

investors and on-site research receptions. The Company always ensures that all channels are open and efficient building a

two-way communication bridge with investors and treating all investors equally.Total Cash Dividend Payout RMB10000 4742.96 4742.96 2400.00

Key Performance

During the Reporting Period the Company held 1 1 investor communication activities including 1 performance

Proportion of Net Profit briefing 1 online collective reception day for investors and 9 on-site research receptions; it hosted

Attributable to Shareholders of the

%38.7852.3530.11

Listed Company in Consolidated

8

Financial Statements 4 investors for on-site research answered 1 0 8 investor questions with a 1 0 0 % response rate; replied

to1 4 1 questions on the Interactive Easy Platform with a1 0 0 % response rate; and answered 2 1 4 investor

phone calls.1The statistical scope is based on the year to which the cash dividend pertains consistent with the scope used in the annual report.

31 32Maintaining Integrity and Case Study Integrity and Self-Discipline Training

Clean Governance In 2025 the Company’s General Manager’s Office and relevant departments regularly conducted Integrity

and Self-Discipline Standards Training. The main training content included definitions of integrity terms

integrity requirements for key positions external and internal integrity norms and the consequences of

Anti-Bribery and Anti-Corruption violating integrity codes of conduct. The training helped employees clarify the requirements for integrity in

their work and consciously abide by the Company’s ethical code of conduct.Integrity Management System

AVD strictly complies with relevant laws and regulations and has formulated internal regulations such as the AVD Code of

Conduct Ethical Management Guidelines and Labor Ethics Risk Assessment Procedures to regulate the conduct of all employees. These

incorporate principles related to stakeholders such as investors and suppliers ensuring that employees uphold the principles

of integrity and dedication in their daily operations protecting the interests of the Company and related parties from harm.The Company established a Code of Conduct Working Group with an office subordinate to it. This office comprises

the General Manager Deputy General Manager and department heads from the Securities Affairs Department Audit

Department and General Manager’s Office. Additionally each department has appointed Integrity and Self-Discipline

Supervisors to comprehensively oversee and promote the development of integrity initiatives. During the Reporting Period

the Company had no incidents of commercial bribery or corruption was not investigated by relevant authorities and faced

no lawsuits against the Company its directors management or employees for commercial bribery or corruption.Preventing Corruption Risks

The Company regularly conducts special audits and supervision of business activities prepares and updates the Ethical Integrity and Self-Discipline Training

Risk Assessment Control Form systematically advancing the prevention and control of corruption risks. We conduct ethical risk

assessments for key business segments and positions such as procurement sales finance R&D and human resources.For various potential risks we implement multiple preventive measures including signing Integrity Commitment Letters with

employees conducting regular integrity training establishing internal supervision teams and performing special audits

forming a compliance constraint system covering all business processes. Simultaneously the Company incorporates the

signing rate of integrity agreements into its performance appraisal program. The Human Resources Department calculates

the proportion of key personnel who have signed the integrity agreement monthly. In 2025 the signing rate for the Integrity Indicator Unit 2025

and Self-Discipline Commitment Letter was 100%.Number of Anti-Bribery and Anti-Corruption Training Sessions Times 2

Fostering an Integrity Culture Number of Management Personnel Participating in Anti-Bribery

Person-times 92

and Anti-Corruption Training

The Company values the development of an integrity culture conducting regular integrity and self-discipline training for

employees actively promoting the integration of integrity governance and employee behavior and fostering a culture of

integrity compliance and lawfulness providing solid cultural support and institutional guarantees for the Company’s healthy Total Hours of Anti-Bribery and Anti-Corruption Training Provided Hours 184.00

and sustainable development. to Management

Number of Employees Participating in Anti-Bribery and

Person-times 1616

Anti-Corruption Training

Total Hours of Anti-Bribery and Anti-Corruption Training Provided

Hours 3211.00

to Employees

33 34Anti-Monopoly and Anti-Unfair Competition Responsible Marketing

AVD always adheres to the concept of responsible marketing committed to building a healthy and transparent market

Anti-Monopoly Management System communication environment. The Company formulated the Responsible Marketing System insisting on conducting business

with high ethical standards ensuring that all marketing activities are legal proper and honest and that all marketing

content is truthful and non-misleading. Simultaneously the Company continuously conducts education and training for

AVD consistently upholds the principle of fair and free competition strictly complies with relevant laws and regulations on marketing personnel key personnel involved in external communications and third-party personnel embedding the specific

anti-monopoly and anti-unfair competition and has formulated the Anti-Monopoly and Fair Competition Management System. The requirements of responsible marketing into every business process.Legal Department is responsible for overseeing the Company’s fair competition management. The Company has established

an anti-monopoly and fair competition risk control mechanism regularly identifying potential violations in business activities

producing the Anti-Monopoly and Unfair Competition Risk Identification and Evaluation Report and formulating corresponding response

measures. Simultaneously the Company continuously conducts public education on anti-monopoly laws and regulations Reporting Channels

actively fostering a market environment characterized by honest operations and fair competition. During the Reporting

Period the Company had no lawsuits or administrative penalties resulting from violations of anti-monopoly or anti-unfair

competition laws.The Company places high importance on the construction of its internal control supervision system continuously ensuring

open channels for internal monitoring reporting and complaints. Employees suppliers customers and other stakeholders

are encouraged to report either openly or anonymously any illegal or disciplinary violations or violations of the Company’s

Key Performance business ethics system through the official website consultation and complaint hotline and email. For reported conduct

the Company has established a robust whistleblower protection mechanism strictly maintaining the confidentiality of

whistleblowers’ personal information resolutely safeguarding their legitimate rights and interests and prohibiting any form

During the Reporting Period the Company conducted 2 anti-monopoly and fair competition training of retaliation.Simultaneously the Company has established a comprehensive complaint and grievance management mechanism.activities with 7 3 5 participants and a total training duration of 2 5 8 6 . 0 0 hours. Employees suppliers and customers have the right to report unethical behavior of employees to the Company’s senior

management. The Company ensures the confidentiality of the reporting person’s identity and may provide appropriate

rewards for substantiated and effective reports. Employees can also report openly or anonymously to the General Manager

via phone SMS or email. Upon receiving a report the General Manager will arrange for personnel from the General

Manager’s Office or two or more cross-functional personnel without conflicts of interest to conduct an independent

investigation. The investigation results are reported to the General Manager and the Company will handle the matter strictly

in accordance with laws and regulations and the Guidelines for Handling Disciplinary Actions.Case Study Anti-Monopoly Compliance Management Measures Training

For all reports the Company strictly adheres to information confidentiality requirements detailing protective measures for

whistleblowers and strictly prohibits any retaliation against whistleblowers or those providing leads.In 2025 the Company conducted Anti-

Monopoly Compliance Management

Measures Training for employees from

various departments. The training Reporting Channels:

introduced key concepts of ant i-

monopoly and fair competition clarified

the requirements of the Anti-Monopoly Reporting Hotline: 0755-86106838

Law and the Company’s Anti-Monopoly

and Fair Competition Compliance Measures

enhancing employees’ awareness of Contacting Email: COC@av-display.com

anti-monopoly and fair competition.Anti-Monopoly Compliance Management Measures Training

353602

Green Innovation:

Painting an Ecological

Picture

Our Philosophy

AVD adheres to the principle of green development strategy integrating

the concept of green operations into the entire production and operation

process. We continuously promote energy conservation and emission

reduction effectively implement resource recycling actively contribute to

global climate action ecological environment improvement and biodiversity

conservation and foster harmonious coexistence between industry and

nature.Our Actions

Climate Action Greenhouse Gas Emission Management Environmental

Management System Pollutant Emissions Waste Management Energy

Utilization Water Resource Utilization Circular Economy Green Office

Ecosystem and Biodiversity Conservation

37 38Response to Climate Change Risk/Opportunity Risk/Opportunity Likelihood of Impact Expected Type Description Occurrence2 Duration3 Financial Impact Countermeasures

1. Implement constant

Governance Extreme high temperature and humidity temperatures caused Affects factory management in production

Physical Chronic by global warming Medium production workshops provide heat relief

Risks Risks may affect production Medium and Long efficiency leading benefits for employees;

environment control Term to decreased 2. Adjust working hours and work

AVD integrates responsibilities related to climate change risks and opportunities into its ESG governance structure and employee health. revenue. environment appropriately based on temperature changes and

establishing a top-down climate governance work system led by the Board of Directors. The Board of Directors is employee needs.responsible for guiding the formulation and improvement of climate-related strategies supervising and reviewing the Domestic and

implementation of climate change response actions and identifying assessing and managing significant climate risks 1. Continuously monitor international changes in relevant policies

and opportunities. The Strategy and ESG Committee is responsible for identifying climate-related risks and opportunities organizations require Requires the and laws assess their impact enterprises to reduce Company to

assessing their impact on the Company’s business and formulating development plans related to green production and and formulate response plans Policy and their carbon emissions Short and strengthen accordingly;

operations. The ESG Special Task Force is responsible for benchmarking against industry best practices designing climate Legal Risks creating pressure on High Medium carbon emissions 2. Actively carry out energy the Company’s carbon Term management

risk response measures tailored to the Company’s actual situation identifying and conducting preliminary assessments of conservation and emission reduction efforts. leading to reduction management based

climate risks and carrying out climate change risk management work. Failure to comply on increased costs. on actual production and time may result in operations.fines.The Company formulated the Greenhouse Gas Quantification and 1. Strengthen internal

Reporting Management Procedure and established a Greenhouse Gas management to reduce Rising raw material

Management Team with the Director of the Safety Committee material costs; optimize Rising raw material and and energy prices product structure phase

serving as the team leader bringing together personnel from Transition energy prices; failure to Short increase product out high-energy-consuming Market timely and effectively Medium costs; reduced

various departments to form a dedicated team to advance Risks products;Risks meet customer demand High and Long customer demand 2. Improve resource utilization

greenhouse gas quantification and reporting. The Company for green and low- Term leads to loss of efficiency and recycling rates;carbon products. revenue and

conducts specialized training on carbon fundamentals 3. Closely monitor customer market share. needs seize new opportunities

establishes an energy-saving and carbon reduction statistical in green development.monitoring system and a performance appraisal and reward/

punishment system linking carbon reduction effectiveness to 1. Strengthen internal talent development and external

the compensation of relevant departments and responsible Carbon Fundamentals Training Slow progress in recruitment increase R&D

R&D of low-carbon Short

individuals creating a long-term carbon management mechanism investment enhance the Technology technologies or green Reduced sales

Risks products leading to High

Medium volume decreased Company’s R&D capabilities;

with full participation and clear rights and responsibilities. and Long 2. Strengthen market research

decreased product Term sales revenue. actively engage in industry

competitiveness. collaborations explore low-power

display technologies.Strategy 1. Accelerate the development of Green production green and low-carbon products;

energy saving and 2. Enhance relevant management

Products carbon reduction are Short Increased sales systems and methods to improve

AVD refers to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) to systematically and becoming trends with High Medium professional service levels in Services increasing market Long Term revenue response to customer needs

identify various climate change-related risks and their potential impacts formulate and implement targeted response demand for low-carbon for low-carbon and sustainable

measures and actively engage in climate risk prevention and control. products and services. development.Opport- Through energy 1. Conduct energy-saving

unities management process retrofits on production

optimization and equipment adopt high-

Risk/ Risk/Opportunity Likelihood of Impact Expected renewable energy

efficiency and energy-saving

Opportunity Description Occurrence2 Duration3 Financial Impact Countermeasures Resource application reduce Short

equipment;

Type electricity consumption High Medium Reduced operating 2. Construct distributed Efficiency carbon emissions Long Term costs. photovoltaic power generation projects increase the

Extreme weather events and operating costs 1. Establish an emergency while enhancing proportion of clean energy such as typhoons used;

floods heavy rains Facility repairs management organization the Company’s ESG

and heat waves and transportation to strengthen response performance.

3. Conduct product carbon

mechanisms; footprint verification.may lead to facility disruptions can affect 2. Use weather forecasts and

Physical Acute damage transportation Short and raw material supply difficulties supply Medium Medium causing production or other information to issue timely Risks Risks chain disruptions Term service interruptions warnings and strengthen hazard 2Likelihood of Occurrence refers to the frequency interval and probability of a risk or opportunity occurring assessed primarily based on historical probability external

and operational leading to increased inspections; scenarios policy implementation progress and expert forecasts. Likelihood of occurrence is categorized from “Low” to “High”.interruptions affecting costs and reduced 3. Build a diversified supply

the Company’s normal revenue. chain develop alternative suppliers and logistics channels. 3Impact Time Frame refers to the different time periods during which various climate-related risks and opportunities may affect the Company. The Company classifies production and the impact time frame into short-term (within 1–2 years after the current year) medium-term (within 3–9 years after the current year) and long-term (10 years or

operations. more after the current year).

39 40Impact Risk and Opportunity Management Indicators and Goals

AVD formulated the Guidelines for Control Measures to Address Risks and Opportunities establishing standardized processes for The Company continuously improves its climate change management system establishes phased climate goals and

identifying assessing and managing climate risks and opportunities to ensure that all types of risks and opportunities are commits to achieving carbon peak by 2030 and carbon neutrality by 2060. The Company regularly tracks and discloses

accurately identified scientifically evaluated and effectively addressed. progress towards these goals actively accepting supervision from internal and external stakeholders demonstrating its

responsibility in addressing climate change through transparent management.Climate Change Risk and Opportunity Management Process

Risk and Opportunity Identification Goal Content Achievement Status

Referring to the TCFD’s recommended disclosure framework based on national laws regulations policy requirements Using 2020 as the baseline reduce carbon emissions per unit of industrial added

and domestic and international sustainable development trends and fully considering the Company’s actual value for Scope 1/2 by 16.00% by 2025 compared to 2020; achieve a 30.00% The 2025 target was not

operational situation identify risks and opportunities the Company faces in addressing climate change. reduction by 2030; achieve net-zero carbon emissions per unit of industrial achieved ?，while the 2030added value for Scope 1/2 by 2050. target is underway.By 2030 the proportion of suppliers participating in Scope 3 emission reduction The 2025 target was not

Risk and Opportunity Assessment actions will reach 30.00%; meanwhile the unit carbon emissions for Scope 3 achieved ?，while the 2030need to achieve an annual average reduction of 3.50%. target is underway.Based on risk and opportunity identification the Company assesses the likelihood impact timeframe and potential

major financial impacts of climate change risks and opportunities.Greenhouse Gas Emission Management

Risk and Opportunity Response Greenhouse Gas Emissions

Develop targeted risk response strategies based on risk assessment results filling out the Risk and Opportunity The Company has established a routine mechanism for collecting

Response Measures Table and assign dedicated personnel to follow up on implementation progress and effectiveness and analyzing carbon emission data. It engages qualified third-party

thereby reducing or eliminating the adverse effects of climate change risks on its own operations and financial institutions to conduct greenhouse gas inventories and proactively

condition. discloses relevant reports ensuring professionalism and transparency in

carbon management. During the Reporting Period both the Company

and Ganzhou AVD completed the comprehensive greenhouse gas

inventory for 2024 strictly in accordance with the ISO14064-2018

standard. As of the disclosure date of this report the greenhouse gas

Risk and Opportunity Review inventory for the Company and Ganzhou AVD for 2025 is progressing in Liquid Crystal Display Touch Display Module

Product Carbon Footprint Product Carbon Footprint

an orderly manner. Verification Statement Verification Statement

The Company regularly organizes relevant departments to conduct internal reviews and external verifications of

climate change risks and opportunities to verify their effectiveness. Simultaneously benchmarking against the ISO14067-2018 carbon footprint accounting standard the Company conducts

lifecycle carbon footprint accounting and certification for its produced liquid crystal display modules and touch display

module products. This data-driven approach supports iterative optimization of production processes drives green upgrades

of products from the source and implements the concept of low-carbon product development.? Driven by growing downstream market demand the Company's production capacity and operating rates have continued to increase. Meanwhile the

implementation of green power procurement photovoltaic projects and energy-saving retrofits has been delayed due to the construction cycle of new factories

and the low-carbon transformation benefits of core production lines have not been realized in a timely manner. As a result the reduction in carbon emissions per

unit of industrial value added fell short of expectations for the period. Going forward the Company will accelerate the implementation of ongoing projects promote

green power substitution and energy efficiency upgrades across production lines optimize its carbon reduction pathways and steadily advance its carbon emission

reduction efforts.? The Company failed to meet its 2025 Scope 3 carbon emission intensity target primarily due to the growth in downstream demand and the rigid increase in overall

supply chain emissions. Scope 3 data relies on external suppliers and the decarbonization progress of some partners fell short of expectations. In addition the

industry's supply chain collaboration mechanisms for carbon reduction are not yet mature resulting in emission reduction outcomes that did not meet the plan. The

Company will further improve its supply chain carbon management drive key suppliers to reduce emissions optimize green logistics and continuously enhance its

Scope 3 emission reduction management capabilities.

41 42Indicator Unit 2023 2024 2025 Case Study Electronic Paper Display Products

Electronic paper (E-paper) is an innovative display technology that holds a

Total GHG Emissions (Scope 1+2+3) ? tCO2e 141716.84 186205.27 196627.18

significant position in the display technology field due to its unique reflective

display principle significantly low energy consumption characteristics wide

viewing angles eye-friendly display effects thin and flexible physical properties

Warehouse Management Label

excellent durability and environmental advantages.Direct (Scope 1) GHG Emissions ? tCO2e 1459.65 664.14 786.52

The Company’s E-paper R&D focuses on small and medium-sized products

which can be applied in areas such as price tags name badges and smart

homes. Through early collaborations with Shenzhen Tsinghua Research Institute

Southern University of Science and Technology and Hong Kong University of

Indirect (Scope 2) GHG Emissions ? tCO2e 17458.17 19370.61 20013.82 Thermometer/Science and Technology the Company completed the R&D of key optoelectronic Hygrometer Name Badge

materials and has achieved full-chain independent R&D from pigment particle

modification electrophoretic liquid compounding capsule synthesis and film

coating to E-paper module processing. As of December 31 2025 the Company

Total GHG Emissions (Scope 1+2) tCO2e 18917.82 20034.74 20800.35 has filed 49 patents for E-paper technology obtained 8 invention patents and 11

utility model patents. Word Card

tCO2e/ RMB 10000

GHG Emission Intensity (Scope 1+2) ? 0.207 0.199 0.170 The Company actively builds a full-chain emission reduction system collaborating with customers to optimize reasonable

sales sleep functions for display products and cooperating with suppliers to improve logistics transportation plans and implement

resource-saving measures guiding upstream and downstream partners in the industrial chain to jointly undertake

greenhouse gas emission reduction efforts. During the Reporting Period the Company applied to join the National Blue

Carbon Trading Alliance actively integrating into the blue carbon trading market system to further broaden its pathways for

Other Indirect GHG Emissions (Scope 3) ? tCO2e 122799.02 166170.53 175826.83 achieving carbon neutrality.Ecosystem and

Greenhouse Gas Emission Reduction Measures Biodiversity Conservation

AVD implements multi-faceted energy conservation and emission reduction practices. By adopting photovoltaic power AVD places great emphasis on the impact of its production and operational activities on ecosystems and biodiversity.generation procuring clean energy and promoting high-efficiency energy-saving equipment it reduces dependence on Adhering to the principle of synergistic development between production operations and ecological protection the

fossil fuels and improves energy utilization efficiency. Simultaneously it focuses on green technology R&D developing Company strictly complies with national and local ecological and environmental protection laws and regulations

green low-carbon and environmentally friendly products. It also conducts lifecycle carbon inventories for core products systematically advancing biodiversity conservation management.providing data support for precise emission reduction efforts.? The total greenhouse gas emissions include Scope 1 Scope 2 and Scope 3 emissions. The calculation of Scope 1 Scope 2 and Scope 3 greenhouse gas emissions

references ISO 14064-1:2018 "Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals." The data for 2023

and 2024 in this report have been adjusted after verification and therefore differ from the figures disclosed in the ESG reports for those years. In the event of any Site Selection and Layout Project Construction Daily Operations

discrepancy or conflict between the greenhouse gas emission data presented in this report and the 2025 Greenhouse Gas Inventory Report the 2025 Greenhouse Gas Inventory

Report shall prevail.All of the Company’s production areas are During the construction phase scientific The Company strictly implements the

? Scope 1 covers greenhouse gas emissions from facilities directly owned by the Company including emissions from fossil energy used by official vehicles and trucks located within designated industrial land planning of operational routes is carried requirements of pollutant discharge

refrigerant fugitives methane fugitives from septic tanks and the use of CO2 fire extinguishers. Emission factors refer to the IPCC 2006 Guidelines for National Greenhouse zones where the risk of direct interference out actively avoiding ecologically sensitive permits standardizes environmental

Gas Inventories combined with GB/T 2589 General Rules for Calculation of Comprehensive Energy Consumption to obtain net calorific values of fuels. Fuel carbon oxidation rates from production activities with local natural areas such as ecological reserves and basic monitoring and information disclosure and

refer to the Guidelines for Accounting and Reporting of Greenhouse Gas Emissions for Enterprises in Other Industrial Sectors (Trial). Scope 2 covers emissions from purchased electricity

consumed in the Company’s production and office activities. The electricity emission factor uses the "2022 China Grid Average Emission Factor." Scope 3 covers ecosystems and important habitats is farmland thereby minimizing the impact of continuously improves its environmental

indirect emissions from transportation purchased goods and services employee commuting business travel and the use of sold products. Emission factors refer to relatively low meeting the requirements for construction on the original landforms and emergency response mechanism

the UK Government GHG Conversion Factors for Company Reporting – 2024 and the Simapro database. Global Warming Potential (GWP) values are taken from the IPCC Sixth biodiversity conservation. surrounding ecology. effectively safeguarding the environmental

Assessment Report (2023). health rights and interests of employees

? GHG Emission Intensity (Scope 1+2)=Total GHG Emissions (Scope 1+2)÷10000 yuan of sales revenue. and surrounding communities.In 2025 the Company’s production and operations did not cause any significant adverse impact on surrounding ecosystems

or biodiversity effectively safeguarding regional ecological security.

43 44Environmental Compliance Strategy

Management AVD is designated as a key pollutant discharging unit by Shenzhen. It places high importance on environmental risk control systematically identifying and assessing environmental risks and opportunities and concurrently formulating targeted

response measures.Environmental Management System

Risk/

Opportunity Risk/Opportunity Likelihood of Impact Expected Description Occurrence Duration Financial Impact CountermeasuresType

Governance

1. Closely monitor and

AVD strictly complies with the Environmental Protection Law of the People’s Republic of China and other relevant laws regulations With increasingly strictly comply with laws and

and local environmental requirements. It steadily advances the development of its environmental management system stringent government regulations related to pollutants

formulating a series of environmental management regulations such as the Environmental Management Operation Guidelines environmental policies and waste management;

and regulations non- 2. Regularly maintain and

establishing a standardized environmental management system. The Company has established an Environmental Protection Policy Risk compliant emissions High Short Term Increased operating costs update environmental Office as a specialized management body to coordinate the implementation of environmental protection work across the could lead to significant protection facilities;

Company clarify responsibilities for environmental safety management set environmental protection-specific KPI indicators fines and litigation 3. Conduct comprehensive

compensation for the environmental hazard

and conduct regular performance assessments of responsible individuals. The Equipment Department Process Department Company. inspections regularly.Manufacturing Department and Administration Department based on their respective responsibilities collaborate with

the Environmental Protection Office to manage and control pollutants such as exhaust gas wastewater and solid waste

throughout the process. In 2025 the Company’s wholly-owned subsidiary Ganzhou AVD was successfully selected for

the 2025 Green Manufacturing List by the Jiangxi Provincial Department of Industry and Information Technology being

recognized as a provincial-level “Green Factory.” In February 2026 Ganzhou AVD passed the national assessment for "Green 1. Strengthen communication with stakeholders timely and

Factory". accurately disclose information

on pollutant and waste

emissions;

During the Reporting Period the Company has passed the ISO 14001 Environmental Management System certification and Risk 2. Establish an emergency

had no major environmental accidents or violations in the environmental field. response mechanism for

Issues in the treatment abnormal pollutant emissions

of pollutants and quickly address sudden

waste could cause issues during treatment

public dissatisfaction and simultaneously disclose

Reputational potentially leading Decreased progress;

Risk to public protests Low Long Term revenue 3. Proactively gather

boycotts and feedback from the public

significant public and stakeholders respond

opinion pressure on the to environmental concerns

Company. promptly and implement improvements;

4. Regularly conduct

environmental compliance

training and publicity to

strengthen awareness of

proper pollutant and waste

management among all

employees.AVD Environmental Management Ganzhou AVD Environmental Management

System Certification Certificate System Certification Certificate

Reduce pollutant and 1. Optimize production

Indicator Unit 2023 2024 2025 waste emissions and processes introduce advanced

improve resource technologies and equipment to

Opport- Resource utilization efficiency High Long Term Reduced improve resource utilization;unity

Environmental Protection Investment RMB 10000 169.00 297.70 350.94 Efficiency through equipment operating costs 2. Strengthen waste resource optimization utilization enhance recycling

technological upgrades rates.etc.Environmental Protection Tax Paid RMB 5922.43 14559.35 16633.99

45 46Impact Risk and Opportunity Management Indicators and Goals

AVD implements strict monitoring of emission indicators for various pollutants and waste throughout the entire process

Environmental Factor Identification and Evaluation ensuring that all emission indicators are compliant and controlled within permitted limits thereby guaranteeing the

standardized and effective implementation of the Company’s environmental management work.The Company formulated the Environmental Factor Identification and Evaluation Work Guidelines which clarify the standards and

processes for identifying and evaluating environmental risks. Through regular internal environmental inspections and

cooperation with external regulatory agencies for specialized environmental audits the Company comprehensively identifies

and evaluates environmental factors compiling the Summary and Evaluation Table of Significant Environmental Factors. It implements Goal Content Achievement Status

tiered control over identified significant environmental factors and develops targeted risk prevention measures.

100.00% compliance rate for the number of waste emission

Hazard Inspection Achievedconcentration standards met √

The Company has established a routine environmental hazard inspection mechanism conducting comprehensive internal

inspections monthly. These inspections focus on verifying the operational status of exhaust gas and wastewater treatment

Zero instances of non-compliant pollutant emissions Achieved

systems the compliance of hazardous waste storage and disposal and potential environmental risks in raw material √

usage phases. Specific rectification plans are developed for identified issues clarifying responsible parties and deadlines

effectively preventing and controlling environmental risks at the source.Wastewater reuse rate ≥ 65% √ Achieved

Key Performance

In 2025 the Company conducted 2 7 special environmental inspections identified 2 6 potential hazards

Total emission intensity of wastewater exhaust gas pollutants and

100 hazardous waste per RMB 100 million of output value ≤ 13.00 tons/ with a hazard rectification rate of %. √ AchievedRMB 100 million

Emergency Drills Environmental Protection Training

The Company has formulated specialized emergency management regulations such as the Emergency Plan for Environmental The Company’s Safety Committee regularly organizes environmental protection training activities educating employees on

Emergencies clearly defining the emergency response procedures and handling processes for various environmental incidents environmental protection knowledge and conducting targeted training on topics such as hazardous waste management and

to ensure clear responsibilities and efficient response. Simultaneously the Company conducts comprehensive feasibility cleaner production. The training content covers relevant environmental laws and regulations basic professional knowledge

assessments on the identified plan items integrates emergency drills into its annual work plan and implements them. Based and specialized knowledge and practical skills for key positions ensuring participants comprehensively grasp the knowledge

on the drill results it continuously optimizes the emergency mechanism effectively enhancing overall emergency response and application requirements related to environmental management thus strengthening the Company’s talent foundation in

and risk control capabilities. environmental management.Key Performance

Key Performance

5 2 In 2025 the Company organized a total of 1 8 environmental protection training sessions with 55In 2025 AVD and its subsidiaries organized and conducted environmental emergency drills including chemical

spill drills and 1 drill for secondary environmental pollution caused by fire. participants and a total training duration of 2 6 7 5 . 0 0 hours.

47 48Case Study Pollutant Management Training Wastewater Management

AVD has formulated wastewater management system documents such as the Wastewater Discharge Operation and Maintenance

On July 28 2025 the Company conducted a specialized training on Pollutant Management. The training Guidelines and the Wastewater Testing Operation Guidelines. It has constructed wastewater treatment stations of corresponding

focused on explaining the scientific understanding classification identification and related policies and scale at its Shenzhen and Ganzhou production bases with total treatment capacity matching the wastewater treatment

regulations concerning new pollutants. It also provided an in-depth interpretation of documents such as the needs of the Company’s daily production operations. Production wastewater is collected separately through pipelines and

Action Plan for New Pollutant Management. Through this training employees gained a clearer understanding of treated normatively through processes such as Fenton anaerobic aerobic and sedimentation. After treatment part of the

the environmental risks and control requirements for pollutants effectively enhancing their environmental water meets standards and is reused in production while the remainder is discharged into the municipal pipe network for

awareness and compliance operation capabilities. further treatment at water purification plants. The quality of the discharged water consistently meets local environmental

emission standards.The Company’s production wastewater mainly originates from production processes such as cleaning etching developing

and stripping. To ensure continuous and stable compliance of wastewater discharge COD automatic monitors are installed

Case Study Cleaner Production Training at the front and middle sections of the wastewater treatment system and an automatic online monitoring system is installed

at the comprehensive wastewater discharge outlet. This enables real-time data monitoring throughout the wastewater

In 2025 the Company conducted Cleaner Production Training treatment process and at the discharge point ensuring 100% compliant wastewater discharge. In 2025 the Company

for employees. This training centered on the theme of cleaner implemented specialized treatment for small volumes of high-concentration wastewater entrusting qualified third-party

production covering the significance and policy background institutions to transport and dispose of 95 tons effectively reducing the operational pressure on the internal wastewater

of cleaner production audit processes and implementation treatment system and improving overall wastewater disposal efficiency and compliance.methods relevant technical standards and acceptance

requirements systematically introducing the framework and

promotion arrangements for cleaner production. Through this Indicator Unit 2023 2024 2025

training employees gained a deeper understanding of the

importance of cleaner production in the Company’s operations

and enhanced their professional ability to implement cleaner Cleaner Production Training Wastewater Treatment Volume Tons 135739.00 201955.00 227726.00

production in their daily work.Wastewater Treatment Intensity Tons/ RMB 10000 1.36 1.86 1.89

Pollutant Emissions Chemical Oxygen Demand (COD) Tons 2.75 11.39 8.05

AVD has formulated pollutant management system documents such as the Environmental Pollutant Emission Standards and the

Control Procedures for Three Wastes and Noise strictly implementing environmental compliance management requirements. All Ammonia Nitrogen (NH3-N) Tons 0.05 1.23 1.67

new construction renovation and expansion projects are subject to environmental impact assessment and completion

acceptance in accordance with laws and regulations and corresponding environmental protection administrative permits are

obtained. The Company’s Safety Committee Equipment Department and Administration Department collaborate to oversee

pollutant self-monitoring and outsourced monitoring control of pollutant emissions and daily operation and maintenance Exhaust Gas Management

of environmental protection facilities. During the Reporting Period all pollutant emission indicators of the Company met

standards and no adverse effects were caused to employee health or the production and life of surrounding residents. AVD has formulated exhaust gas management system documents such as the Exhaust Gas Discharge Operation and Maintenance

Guidelines. It has constructed 5 sets of specialized exhaust gas treatment facilities at its Shenzhen and Ganzhou production

bases establishing a comprehensive exhaust gas collection and treatment system. Exhaust gas generated in production

workshops is collected through the exhaust gas collection system then conveyed via high-altitude pipelines to the rooftop

Indicator Unit 2023 2024 2025 treatment facilities for standardized treatment. After meeting standards it is discharged compliantly through high-altitude

emission outlets.Pollutant Monitoring Compliance Rate % 100.00 100.00 100.00

The exhaust gas generated during the Company’s production process mainly includes organic exhaust gas from processes

Environmental Protection Facility such as screen printing baking coating and exposure; soldering exhaust gas from the reflow soldering process; and

%100.00100.00100.00

Synchronous Operation Rate acidic exhaust gas from the etching process. To ensure continuous compliance of exhaust gas emissions the Company has

established a routine monitoring mechanism engaging qualified third-party institutions semi-annually to conduct exhaust

“Three Simultaneities” Implementation

% 100.00 100.00 100.00 gas emission tests. The results consistently meet local exhaust gas emission standards ensuring compliance throughout the

Rate for Construction Projects exhaust gas emission process.

49 50Indicator Unit 2023 2024 2025 The Administration Department is responsible for coordinating the standardized

external disposal of general waste.General solid waste is uniformly sent to the on-site waste sorting area and stored by

Exhaust Gas Emission Volume Tons 59044.00 48024.20 74173.20 category.Subsequently it is either recycled by cooperative suppliers or handed over to compliant

General Waste waste recycling institutions for centralized disposal achieving standardized and

resource-efficient treatment of general solid waste.Organic Waste Gas Treatment Volume Tons 46566.00 28692.20 53776.20

The Environmental Protection Office of the Safety Committee is responsible for

coordinating the full-process compliance management of hazardous waste disposal for

the Company.Acidic Waste Gas Treatment Volume Tons 11478.00 19332.00 20397.00 Regularly conduct special inspections on the storage status of hazardous waste

promptly clean storage facility floors and replace damaged or leaking hazardous waste

storage containers to ensure safe and compliant storage.Hazardous Waste Strictly screen qualified professional institutions with legal permits for hazardous waste

Exhaust Gas Emission Intensity Tons / RMB 10000 0.58 0.44 0.61 recycling and disposal. Cooperative suppliers must obtain hazardous waste operation

permits issued by government authorities and the Company signs formal hazardous

waste disposal agreements with them to ensure that the entire hazardous waste

disposal process is legal compliant and traceable.Noise Management

Indicator ? Unit 2023 2024 2025

AVD strictly adheres to national noise control standards for plant boundary noise management. Adhering to the principle

of source control it prioritizes the selection of low-noise and silent production equipment. It also establishes a routine

equipment maintenance mechanism to ensure stable low-noise operation. Specialized sound insulation and enclosure General Waste Generation Volume Tons 223.00 238.00 266.00

controls are implemented for core operational areas to further reduce noise impact during transmission. The Company

annually engages qualified third-party institutions to conduct plant boundary noise testing. Historical test results have

consistently met standards complying with national and local noise emission limit requirements thereby fulfilling its

corporate environmental protection responsibility and effectively reducing noise interference with the surrounding

General Waste Disposal Volume Tons 223.00 238.00 266.00

community from its production operations.Waste Management Hazardous Waste Generation Volume Tons 69.07 111.06 102.60

AVD has formulated waste management system documents such as the Solid Waste Classification List and Hazardous Waste Hazardous Waste Disposal Volume Tons 69.64 111.33 96.92

Management Regulations ensuring that the entire process of solid waste collection recycling and disposal strictly complies

with laws regulations normative documents and internal management requirements related to hazardous waste

management. The Company continuously strengthens waste recovery control vigorously promotes waste resource

utilization and has established an abnormal waste emission response mechanism. If a significant increase in waste

emissions is detected it is immediately reported to the relevant responsible department which formulates and implements

targeted control or recycling measures to effectively reduce waste emissions. For hazardous waste the Company prioritizes

assessing the feasibility of on-site consumption and treatment through internal wastewater treatment facilities and other

supporting infrastructure to minimize the volume of hazardous waste requiring off-site disposal. In 2025 the Company ? The statistical scope for waste-related data covers Shenzhen AVD and Ganzhou AVD. If any discrepancies exist between the waste-related data disclosed in previous

years and this report the latest data contained in this report shall prevail.achieved a total waste recycling and reuse volume of 266.00 tons with a recycling and reuse rate of 72.16%.

5152

Waste Management MeasuresResource Management Impact Risk and Opportunity Management

The Company has established a routine energy review mechanism formulating the Energy Review Control Procedure. It utilizes

professional methods and tools such as direct measurement on-site investigation energy balance energy audit energy

Resource Management System efficiency benchmarking energy-saving monitoring and statistical model analysis to conduct energy reviews. These reviews

identify the Company’s energy usage management status and improvement opportunities. Using methods like yes-no

judgment comparative analysis and scoring it evaluates and prioritizes identified major energy performance improvement

Governance projects clarifying the key projects to advance. Simultaneously the Company has formulated energy management

documents like the Energy Operation Control Procedure and Energy Monitoring and Measurement Management Procedure to standardize

AVD establishes and improves its energy management system based daily energy use management. It sets energy consumption standards and control targets establishing a daily weekly

on the ISO 50001 Energy Management System standard formulating monthly and annual full-cycle energy consumption statistical and control system tracking and providing feedback on

management documents such as the Energy Operation Control Procedure energy usage status and target achievement in real time to ensure the implementation of energy management requirements

to systematically manage resource and energy consumption across and the effective advancement of control targets.the Company’s production and operation processes. The Company has

established a dedicated Energy Management Team with the production

management leader serving as the team leader and key personnel from Indicators and Goals

various departments as core members responsible for controlling energy

consumption quotas conducting daily consumption data statistics and Based on its actual situation AVD has established energy management targets and water resource management targets for

analyzing optimization opportunities. It also assigns dedicated energy 2025 simultaneously preparing dedicated energy and water conservation implementation plans to continuously improve the

consumption statisticians to perform routine and detailed energy Company’s energy efficiency management level.AVD Energy Ganzhou AVD

consumption data accounting. The Company’s production and operations Management Energy Management

primarily consume electricity (including photovoltaic power generation) System Certification System Certification

Certificate Certificate

while production and domestic water are sourced from the municipal Energy Energy Performance Parameters 2025 Target1? 2025 Achievement

water supply system. As of the end of the Reporting Period the Company Consumption Unit

has passed the ISO 50001 Energy Management System certification Comprehensive energy consumption per unit of ≤ 0.145 0.133

achieving standardized and normalized energy management operations. production kgce/pcsCompany

Comprehensive energy consumption per unit of

output value kgce/RMB 10000 ≤ 23.3777 21.5

Strategy Comprehensive energy consumption per unit of

production kgce/pcs ≤ 1.618 1.469

The Company regularly analyzes its energy structure. Through systematic identification and assessment of energy Ganzhou AVD Comprehensive energy consumption per unit of

management risks and opportunities it continuously promotes the optimization and upgrade of its energy management output value kgce/RMB 10000 ≤ 158 156

system employing multiple measures to reduce energy consumption intensity and effectively control risks throughout the

energy use process.Risk/ Goal Content Achievement Status

Opportunity Risk/Opportunity Probability of Impact

Expected

Description occurrence Duration Financial CountermeasuresType Impact

Standard unit consumption for TFT decrease by 3% √ Achieved

1. Strengthen refined energy

management scientifically set energy

consumption control targets;

2. Optimize energy usage structure Standard unit consumption for TP decrease by 2% √ Achieved

Energy Price Rising energy Increased

continuously advance the

prices lead to Short costs implementation and operation of Risk Fluctuation higher energy costs Medium Term reduced photovoltaic power generation projects;Risk for the enterprise. profits 3. Regularly analyze the rationality Annual reclaimed water reuse volume > 3200.00 m3 Achieved

of energy consumption promptly √

identify and rectify abnormal energy

consumption issues promoting improved

energy utilization efficiency. Annual tap water consumption < 1800.00 m3 √ Achieved

Enterprises can

reduce energy

consumption Annual reclaimed water recovery efficiency > 65.00% √ Achieved

Oppor- and improve Short 1. Continuously optimize production

tunity Technological energy utilization High Medium Cost processes;Opportunity efficiency by and Long reduction 2. Implement technology-focused

adopting advanced Term energy-saving projects.production

technologies and

equipment. 1? This target is the 2025 energy target set by the Company in its 2024 Environmental Social and Governance (ESG) Report and is addressed in the current year’s report.

53 54Energy Utilization Indicator11 Unit 2023 2024 2025

The Company places high importance on energy conservation and emission reduction systematically carrying out full-

process energy-saving and consumption-reduction activities around the two core scenarios of production operations Total Factory Electricity Consumption 10000 kWh 2999.13 3419.10 3856.61

and office life. In daily operations it strictly implements energy-saving practices such as “turn off lights when leaving.” In

production it enforces immediate equipment shutdown controls and conducts specialized optimization assessments of

temperature settings in workshops for various processes. Through multi-dimensional refined control it comprehensively

reduces total energy consumption in both production and office activities.Total Large-Scale Manufacturing

10000 kWh 2687.67 2642.05 3403.53

Electricity Consumption

Energy-Saving Technological Energy-Saving Document Daily Inspection and Audit

Upgrades Management Management

Air Conditioning System Power Collect relevant measured data Compile energy consumption Water Resource Utilization

Saving: Improve equipment operating to form documents for parameter statistics for all areas of the plant

efficiency and reduce electricity settings corresponding to ambient monitoring for abnormal fluctuations. AVD strictly complies with the Water Law of the People’s Republic of China and other relevant laws and regulations

usage by increasing the temperature temperatures in the future regularly comprehensively promoting refined management throughout the water resource utilization process. Adhering to

at each stage of the chiller using fixed inspect and improve situations Conduct irregular inspections of the concept of scientific water use the Company continuously improves its water metering management system

frequency and variable frequency of running leaking dripping and various plant areas weekly promptly regularly analyzes and compares monthly water consumption data and deeply explores water-saving potential

differential pressure for air handling seepage in various areas. reporting issues to the energy-saving in each segment. During the Reporting Period Shenzhen AVD continued its water-saving efforts reusing 42000

units and cleaning and maintaining and consumption-reduction working tons of reclaimed water from production lines with a reclaimed water recovery efficiency of 68.21%.the central air conditioning system. group.Air Compression System Power Organize relevant departments

Saving: Save electricity by using “zero” to ho ld energy-sav ing and

air consumption adsorption dryers consumption-reduction meetings.adding end buffer tanks to stabilize Water-Saving Measures

Promote energy-saving awareness

supply pressure and regularly

and training post energy-saving

(quarterly) checking for air leaks in the

labels. Implement classified collection and specialized treatment of rinsing water from workshops to increase

air compressor system pipelines. reclaimed water recovery and reduce tap water consumption.Treat and recover concentrated water from pure water equipment for reuse further reducing tap water

usage.Continuously optimize the operational efficiency of the reclaimed water reverse osmosis system to

Case Study Photovoltaic Power Generation enhance water reuse efficiency.Regularly conduct overflow inspections on equipment such as ultrasonic preheating tanks and spray

storage tanks; promptly repair equipment with leaks to strictly prevent water waste.The Company has invested in rooftop photovoltaic

power generation equipment actively promoting Strengthen water conservation management in dormitories canteens and office areas.the use of clean energy and continuously

advancing carbon reduction efforts. In 2025

the Company utilized 254400 kWh of solar

photovoltaic power.Photovoltaic Construction Plan

11Factory electricity consumption includes electricity consumption from large-scale manufacturing. The consolidated scope for electricity consumption covers

Shenzhen AVD (the disclosure scope of Shenzhen AVD covers its Shenzhen headquarters and factory) Ganzhou AVD and Ruidisheng.

55 56Indicator Unit 2023 2024 2025 Furthermore the Company strengthens the recovery management of packaging materials. In 2025 it recovered 4.80 tons of

packaging materials achieving a recovery rate of 80.00%.Industrial Water Consumption m3 318918.00 397783.00 459058.70

Firefighting Water Consumption m3 104.00 68.00 206.00

Recycled Water Consumption m3 47842.00 47864.00 42029.00

Domestic Water Consumption m3 117908.00 139241.00 131662.30

Carton Manufacturer FSC Packaging Material Training

Total Water Consumption m3 436930.00 523451.00 590721.00 Certification Certificate

Circular Economy Green Office

AVD actively promotes the development of a green culture formulating the Office Management Work Guidelines to specify

Material Management requirements for green office practices. It guides all employees to comprehensively and deeply embrace green office

concepts and green lifestyles fostering a culture of energy conservation responsible consumption and green healthy

living injecting solid green momentum into the Company’s sustainable development.AVD integrates circular economy principles into all aspects

of production and operations. It formulates management

documents such as the Material Storage Work Guidelines and

Material Development Work Guidelines specifying classified storage

standards for various materials such as hardware plastics Promptly turn off faucets to prevent water from running unnecessarily.and electronic components. Through differentiated control

measures like temperature control anti-static and dry sealing Water Post water-saving signs to promote water conservation concepts.it minimizes material loss and waste. In material development Conservation

it prioritizes materials that meet environmental requirements

like ROHS REACH and halogen-free control as well as

recyclable and renewable materials promoting raw material

Encourage all employees to save electricity setting office air conditioning temperature

recovery and reuse to improve resource utilization efficiency

no lower than 26° C for scientific energy management.at the source. During the Reporting Period the Company

conducted training on the Warehouse Management Work

Guidelines system strengthening employees’ awareness of Training on Warehouse Management Work Guidelines Electricity

Advocate for double-sided printing and paper reuse to minimize paper consumption

Conservation and unnecessary waste.standardized operations to ensure compliant and efficient

material management.Fully implement paperless office practices relying on digital methods to reduce the

Circular Packaging use of paper documents.Paper Advocate for double-sided printing and paper reuse to minimize paper consumptionAVD emphasizes full lifecycle management of packaging with the core principles of “reduction reuse and resource Conservation and unnecessary waste.recovery.” The Company formulates standardized documents such as the Packaging Design Rules Empty Box Packaging Process

Work Guidelines and Green Ecological Design Rules defining the selection design and usage specifications for packaging

materials. It selects carton manufacturers holding FSC certification to ensure the green traceability of packaging materials

from the source. Simultaneously the Company adjusts packaging methods by simplifying packaging layers consolidating Strictly implement waste sorting and recycling management requirements

packaging units and eliminating fragile labels to reduce packaging weight and volume thereby decreasing packaging standardize sorting collection and recycling processes to reduce environmental

material consumption and transportation costs. During the Reporting Period the Company actively conducted specialized Waste Sorting pollutant emissions.training on packaging materials helping employees master green packaging management skills.

575803

Meticulous Efforts:

Forging Quality

Benchmarks

Our Philosophy

AVD is committed to becoming a leader in the human-machine interface

industry actively exploring cutting-edge technologies closely tracking

industry development trends and enhancing independent innovation

capabilities. It practices responsible procurement and establishes long-

term stable and honest cooperative relationships with suppliers. The

Company continuously improves product quality control measures to

provide customers with high-quality products and services strengthens

information security management and effectively safeguards the stable

operation of information systems and data security.Our Actions

Uphold R&D Innovation Intellectual Property Rights Protection Enhanced

Supply Chain Management Responsible Procurement Stringent Quality

Control Hazardous Substances Management Optimized Customer Service

Information Security and Privacy Protection

59 60Innovation as the Driver 49.22%

44.57%

Innovation Management System By Educational

Background

Governance

AVD has established a governance mechanism for R&D innovation in accordance with institutional documents including 6.20%

the Advanced Product Quality Planning (APQP) Control Procedures and the New Project Development Operation Guidelines. Under

the coordination of the Technology Center and the IoT Business Unit multiple departments such as the Sales Center Bachelor’s Degree Master’s Degree

Procurement Center and the Process NPI collaborate to define the development processes and reporting routes for project

initiation design prototyping trial production and other phases. As of the end of the Reporting Period Shenzhen AVD is Below Bachelor’s Degree

a national high-tech enterprise and Ganzhou AVD is a high-tech enterprise a provincial-level Specialized Sophisticated

Unique and New small and medium-sized enterprise and an Excellent Enterprise in Key Industrial Development.Strategy

Relying on its R&D-related departments the Company conducts risk and opportunity analysis focusing on key innovation

links such as product design and development as well as advanced product quality planning. Integrated with industry

technology development trends and the requirements of the Company’s quality management system it has established an

innovation-driven risk and opportunity control list.Risk/ Expected

Opportunity Risk/Opportunity Probability of Impact

Type Description Occurrence Duration

Financial Countermeasures

Impact

High-Tech Enterprise Certificate 1. Inadequate identification

of customers’ usage

environments and performance

Innovation is the primary driving force and talent is the primary resource. The Company continuously strengthens testing requirements during 1. Establish a customer demand database and improve the

the development of its R&D team attaches great importance to the cultivation of core technical teams increases the the demand review stage

has resulted in insufficient demand collection template;

introduction of high-end technical talents optimizes the structure of the talent pool and ensures the steady growth and alignment between product 2. Introduce a customer-

long-term stability of the core technical workforce. Procedural design and actual market Short and Increased participatory design review Risk Risk needs； Medium Medium operating mechanism;

2. Oversight of new standard Term costs 3. Establish a backup mechanism

requirements such as software for key processes and conduct

R&D Team management error-proofing parallel R&D along multiple

management and alternative technical routes.Indicators Unit 2023 2024 2025 solutions has led to insufficient

technical compliance of

products.

1. Increase investment in R&D

resources for segmented sectors;

Number of R&D Personnel Persons 228 261 258 2. Establish an industry-

university-research collaborative

innovation mechanism to jointly

Niche market technological

Oppor- Market upgrade demands bring Medium Increased

tackle key core technologies

with universities and research

tunity Opportunity opportunities for high-value- Medium and Long operating institutes;

added product development. Term revenue 3. Introduce professionals in

Percent of R&D Personnel % 11.91 11.45 10.39 the field of display technology to strengthen the professional

competence and talent reserve

of the R&D team.

61 62Impact Risk and Opportunity Management Goals

AVD proactively collects internal and external risk management information related to its operating environment and

establishes a full-process risk and opportunity management mechanism to ensure the steady implementation of its The Company has formulated medium- and long-term development goals for intellectual property rights: continuously

innovation strategy. improve the intellectual property management system strengthen the creation protection and application of intellectual

property rights fully stimulate innovation vitality effectively protect innovation achievements and promote the

industrialization of innovation achievements. In the entire business process of the enterprise the Company comprehensively

Risk Identification carries out the sorting identification avoidance and prevention of intellectual property risks in advance and formulates

special risk response plans for each link. To promote the achievement of the goals the Company regularly follows up on the

The IoT Product Division and Touch Display Product Division serve as the responsible process of goal completion and annually counts and registers the number and types of intellectual property applications to

departments collecting risk and opportunity-related information from internal and external ensure the orderly progress of all work.sources across such dimensions as technical compliance customer requirements intellectual

property rights and process implementation.Intellectual Property 5-Year Goals (2025-2030) Achievements Status

Risk Assessment Continuously ensure the effectiveness and operational vitality of the

intellectual property compliance management system. Through regular system

The responsible departments quantitatively score identified items against three dimensions: maintenance and supervision standardize the intellectual property compliance In Progressseverity frequency and detectability. Risk levels (Low General High) are classified based on management work and effectively achieve the management goal of “havingthe calculated risk coefficient: Low risk: scores of 1-27; General risk: scores of 28-45; High risk: rules to follow and operating in accordance with the rules”.scores of 46-125.In all operational links including R&D project approval technical route selection

market strategy formulation personnel management and procurement

management 100% proactive sorting and identification of intellectual property

Risk Monitoring In Progressrisks shall be implemented systematic avoidance and prevention shall be

carried out and special risk response plans shall be formulated in a targeted

Regularly update the Risk and Opportunity Analysis and Assessment Form to track changes in the status manner.of identified risks and opportunities.We will continue to increase R&D investment steadily enhance our

Risk Management independent R&D innovation capabil it ies and orderly advance the In Progress

implementation of new intellectual property application targets.Leverage industry-university-research cooperation talent introduction and timely tracking of

standard updates to amplify the value of opportunities and mitigate the impact of risks.We will introduce and cultivate talents in intellectual property rights (IPR)

provide specialized training on IPR knowledge and skills for R&D personnel

strengthen the IPR layout and protection throughout the entire technical In Progress

development process deepen the transformation and application of IPR

Indicators and Goals achievements and ensure that the transformation rate of new patented

technologies reaches more than 50% within the 5-year period.Indicators

R&D Innovation Initiatives and Achievements

Indicator Unit 2023 2024 2025

R&D Investment RMB 10000 6426.01 8037.32 9409.32 Encourage R&D Innovation

AVD attaches great importance to R&D innovation and intellectual property protection. It has formulated the Patent Reward

R&D investment as a percent of

% 6.46 7.41 7.28 Work Guidelines and by establishing a sound reward system for patents and technological innovation it fully stimulates

operating income employees’ innovation vitality.

63 64Incentive Category Incentive Content

Project Name Core Technology Highlights Application Scenarios

Patent Filing Tiered rewards are set according to patent type distributed in three phases: review 1. RV1126 chip heterogeneous Security Monitoring Industrial

Reward filing and grant with proportions adjusted based on cooperation performance. computing architecture (quad-core

Dual-channel Production Medical Surgery Traffic Cortex-A7 + NPU + VPU);

Video Recorder Management2. Dual-channel video hardware

with Multiple synchronization;

Patent Control Methods 3. Multimodal control(touch control/

Implementation Special rewards will be granted upon the commercialization and profitability of patents infrared remote control/physical

Reward and continuous rewards may be enjoyed for sustained profitability. buttons/network control).Human-Machine 1.QT113 domestic chip solution(dual- New Energy Vehicle Charging Piles For patents transferred or licensed to others for implementation with corresponding

Patent Transfer Interaction Module core Cortex-A7); Smart Energy Infrastructure

Reward fees obtained relevant rewards shall be granted in accordance with applicable for AC Charging 2. Four-dimensional communication provisions.Piles with Multiple redundant architecture(WiFi/4G/BT/

Communication TTL);

3. Linux real-time kernel + QT graphical

Methods interface.Technical For technical secrets that meet the protection criteria tiered rewards shall be granted

Secret Reward based on the scoring grade and the corresponding patent type.Case Study AVD Unveils Innovation Products at Display Week 2025

Annual Special bonuses shall be established to recognize technical personnel with outstanding

Outstanding

Inventor contributions to annual R&D innovation. In May 2025 AVD participated in Display Week 2025 a global grand event in the field of display technology

with a number of R&D display technologies. Focusing on innovative display technologies it presented a

variety of forward-looking solutions to the participating guests and explored the future of human-machine

interaction together.Product Innovation Training

To help the team accurately grasp the core

competitiveness of products the Company

launched a monochrome product knowledge

t ra in ing in November 2025. The t ra in ing

systematically covered the full-chain innovation

highlights of LCD and LCM elaborated on the

product innovation directions in terms of display

effect control experience and environmental

adaptability helped the team fully understand

the technical architecture and innovation logic

and strengthened the in-depth integration of

innovation thinking and business practice. Monochrome Product Knowledge Training

R&D Achievements Exhibition

At the Display Week 2025 Exhibition Site

In 2025 in the field of innovation R&D AVD focused on the integration of core display and touch technologies with multi-

scenario applications and achieved a series of solid achievements.

65 66Case Study AVD Unveils E-Paper Display Solutions at IOTE International IoT Exhibition Intellectual Property Protection

In August 2025 AVD participated in the 24th IOTE International IoT Exhibition in Shenzhen where it focused

on showcasing the full-chain independent innovation achievements in the field of electronic paper display. Management System

The exhibition covered independently developed electronic paper films multi-size electronic paper modules

as well as terminal products such as smart electronic desk nameplates and smart office systems which can AVD strictly complies with the Patent Law of the People’s Republic of China the Copyright

meet customized demands in various fields. Law of the People’s Republic of China and other relevant laws and regulations. It has

formulated and implemented a series of documents and systems including

the Procedures for the Control of Intellectual Property Acquisition Procedures for the

Control of Intellectual Property Dispute Resolution Procedures for the Control of Intellectual

Property Maintenance and Utilization and Procedures for the Control of Intellectual

Property Risk Management establishing a scientific and standardized intellectual

property management system. The Company’s Technology Center serves as

the competent department in charge of patents copyrights and trademarks

responsible for their administration and evaluation as well as the review and

control of changes assignments abandonments and licensing matters related to

patents copyrights and trademarks. During the Reporting Period the Company

has obtained certification under the intellectual property management system Intellectual Property Management

standard GB/T 29490-2023. System Certification

Intellectual Property Protection Training

During the Reporting Period the Company actively carried out internal and external training related to intellectual property

protection which was led and implemented by the Technology Center. The training content covers core modules such as

patent search patent infringement and patent mining helping employees improve their ability to identify and respond

to intellectual property risks and strengthening their awareness of patent protection and practical operation capabilities

At the IOTE International IoT Exhibition Site throughout the entire R&D process.Key Performance

During the Reporting Period the Company was granted 1 2 new patents. As of the end of the Reporting

Period the Company held 1 5 5 granted patents including 2 5 invention patents 1 2 7 utility model

patents and 3 design patents. In addition it held 2 0 software copyrights 2 4 trademarks and had 3 3 Patent Search Training Patent Infringement Training

papers published. As of the disclosure date of this report 3 5 patents are pending.Promoting Industry Development

AVD actively fulfills its social responsibilities deeply participates in the construction of the industrial ecosystem

and empowers the coordinated development of the industry. The Company is a member of the China Electric Power

Development Promotion Association the China Association of Automobile Manufacturers and the Flat Panel Display

Industry Association. It shares technological application and practical experience with industrial partners jointly explores

paths for the industrialization of technologies and scenario innovation and facilitates the standardized upgrading and Patent Mining Training External Patent Infringement Training

technological innovation of the industry.

67 68Protection Measures Supply Chain Management

AVD attaches great importance to intellectual property management integrating intellectual property protection throughout

the entire process of R&D production and operation. It not only strictly safeguards the legitimate rights and interests of

its own innovative achievements but also adheres to the bottom line of compliance effectively preventing the risk of

intellectual property infringement. Supply Chain Management System

Management Direction Specific Measures Governance

The Company has established a system covering the entire lifecycle of suppliers and formulated policies including the

Procedures for Supplier Evaluation and Control and Guidelines for Supplier Management Operations so as to standardize the supplier

Consolidate core technological achievements through patent applications evaluation and control process. This ensures that qualified suppliers can stably provide high-quality materials products and

and trademark registration. services that comply with HSF regulatory requirements and feature a reasonable price-quality ratio. The Company clearly

assigns the Procurement Center the overall responsibility for supplier screening evaluation and raw material procurement

Formulate intellectual property application objectives and layout strategies while technical process equipment quality and other relevant departments conduct collaborative comprehensive capability

for key technologies such as embedded hardware architecture software assessments of suppliers. It strictly adheres to the bottom lines of ethics environmental protection safety and quality in

algorithms and touch display optimization.Protection of Its Own selecting partners. Meanwhile the Company has set special ESG work objectives for the supply chain and incorporated

Intellectual Property Establish and improve an intellectual property rights protection response relevant requirements into the performance appraisal system of the Procurement Center. Through regular supervision and

mechanism and safeguard legitimate rights and interests through litigation continuous improvement it has been steadily enhancing the level of supply chain ESG management.and other legal channels to prevent the infringement of R&D achievements.Supplier Management Process

Supplier Admission

In the course of business operations AVD uses legitimate software and

instruments for research and development and clarifies the procurement Conduct multi-link assessments including supplier preliminary selection supplier investigation supplier

procedures for production equipment and software to avoid infringing the qualification confirmation sample submission management and supplier review to ensure that the products

intellectual property rights of others. and services provided by suppliers meet the Company’s requirements.Non-Infringement of The Company has established a tracking and search mechanism for

Others’ Intellectual

Property domestic and foreign intellectual property rights during the R&D process

conducting regular searches on the technological progress and IP

application status of R&D projects both at home and abroad so as to

effectively avoid redundant R&D. Supplier Audit

Supplier audits are divided into two categories: QSA (Quality System Audit) which audits quality environmental

social responsibility trade security and other management systems; and QPA (Quality Process Audit) which

covers the whole process including design and development procurement production inspection and

Scientific and Technological Ethics warehousing.Audit methods are implemented in a differentiated manner according to supplier types. On-site audits are

In the conduct of technological R&D application and various business activities AVD has always taken compliant operation carried out for Class I to III manufacturing suppliers led by SQE with participation from multiple departments.as its core principle strictly abiding by the current national laws and regulations as well as relevant industry standards and For suppliers where on-site audits are inconvenient written or remote audits are adopted with judgments

norms. The Company’s business does not involve areas related to tech ethics and there are no potential risks or hidden based on self-evaluation materials and corrective action documents. Audits for traders agents and solution

dangers arising from tech ethics issues. providers focus on creditworthiness scale and services and an Environmental Guarantee Letter is signed

simultaneously. Customer-designated suppliers are evaluated in accordance with normal procedures. Those

that fail the evaluation but are insisted on by customers shall be managed as specially approved suppliers.

69 70Supplier Evaluation Strategy

Monthly performance evaluation: Monthly performance evaluations are conducted for key controlled suppliers. Building on its core position in the value chain and characteristics of its main business the Company integrates supply

The quality procurement and technical departments carry out assessments from the dimensions of incoming

material quality delivery timeliness pricing level and service capability respectively and issue a Supplier chain risk and opportunity management into its overall strategic layout for coordinated advancement. By systematically

Comprehensive Performance Notice. identifying potential risk points in various links of procurement and supplier management the Company continuously

addresses management weaknesses optimizes supplier admission criteria dynamic performance monitoring and multi-

Semi-annual regular review: The procurement department takes the lead in conducting semi-annual supplier party collaboration mechanisms. It strives to build a more resilient and socially responsible supply chain system effectively

reviews carries out comprehensive performance ratings for Class I to IV material suppliers and updates the respond to market uncertainties and accurately seize opportunities for sustainable development.supplier list. Sample suppliers and public service suppliers are not included in the review.Annual audit plan: SQE formulates the Annual Supplier Audit Plan based on factors such as suppliers’ quality history Risk/ Expected

and HSF risk levels. The annual audit focuses on QPA and special audits on trade security social responsibility Risk/Opportunity Opportunity Probability of Impact Description Occurrence Financial Countermeasures

and other aspects may be carried out as needed. Type Duration Impact

Supplier Classification Management

Qualified Suppliers: Suppliers that pass all evaluations or the comprehensive evaluation are included in the

Qualified Supplier List. 1 . In accordance wi th the

If the HSF test reports HSF Compliant Product Control

Special-Approved Suppliers: Suppliers that do not fully meet certain criteria but whose materials are usable provided by suppliers are Procedures an early warning

may be onboarded with special approval and listed in the Special-Approved Supplier List with restricted purchasing. expired or not updated in and closed-loop follow-up

They may be reclassified as qualified after subsequent improvements. Risk Compliance a timely manner it may Medium

Increased

Low operating mechanism for the validity Risk lead to the products failing Term period of HSF reports has been

to meet environmental costs established explicitly requiring

Unqualified Suppliers: Suppliers that fail evaluations and still do not meet requirements after corrective actions protection regulations or suppliers to complete renewal

will be rejected from onboarding and listed in the Unqualified Supplier List. customer requirements. and filing before the reports

expire.Sample Suppliers: Suppliers used only for samples or small-batch trial production exempt from full evaluation

are included in the Sample Supplier List.Dynamic Classification Adjustment: The lists are updated based on semi-annual performance evaluation results.Special-approved suppliers with a performance rating of D or above may be upgraded to qualified suppliers.Supplier Elimination

The Company provides guidance and follow-up for the improvement of special-approved suppliers unqualified

suppliers and Class C suppliers so as to avoid direct elimination. Unqualified suppliers that are still assessed as

unable to meet the Company’s requirements after re-evaluation following improvement guidance and follow-up

By improving the supplier 1 . S t r i c t l y imp lement the

shall be prohibited from use. a d m i s s i o n a n d a u d i t Procedures for Supplier Evaluation

system and implementing and Control develop backup

Oppor- Enhancement a diversified procurement of Supply strategy the Company Long Reduced

suppliers for key materials

tunity and conduct regular on-site Chain reduces reliance on single High Term operating audits and comprehensive risk

Key Performance Resilience suppliers or regions and

costs assessments on cooperative

s t r e n g t h e n s t h e r i s k suppliers to build a solid line

resilience of the supply of defense for supply chain

In 2025 AVD cooperated with a total of 3 5 3 suppliers across the country. Among them 2 6 7 suppliers chain. stability.were located in Guangdong and 1 5 in Jiangxi. The localization rate of suppliers reached 7 9 . 8 9 % and

the localized procurement ratio was 7 0 . 2 3 %.

71 72Impact Risk and Opportunity Management Goals

The Company has established a systematic process for supply chain risk and opportunity management. In strict accordance

with the Guidelines for the Control of Measures to Address Risks and Opportunities it carries out multi-dimensional risk identification

and opportunity exploration across all links of the supply chain effectively ensuring the stable and efficient operation of the

supply chain system. Goal Content Achievement Status

Management

Process Management Measures

Number of delayed HSF report updates by suppliers: ≤ 3 √ Achieved

The Procurement Center has established a supplier risk assessment system which identifies

potential risks of qualified suppliers and collects relevant information including supplier details

Risk and raw material sources. It regularly updates the supplier risk map.Identification Coverage rate of signed procurement agreements code of Achieved

conduct and other agreements: ≥ 90% √

For identified risks a standardized quantitative assessment model is adopted for risk classification

and prioritization. Scoring is conducted based on the three dimensions of risk event severity

frequency of occurrence and detectability and a risk coefficient is calculated accordingly. Risks

Risk

Assessment are then classified and prioritized according to the ranges of the risk coefficient. Conflict minerals audit rate for newly onboarded suppliers: ≥ 90% √ Achieved

Based on the risk assessment results the Company selects strategies of risk acceptance

mitigation or avoidance including requiring suppliers to implement corrective actions developing

Risk alternative sources and launching emergency procurement. Pass rate of quality system certification among manufacturing

Response Achievedsuppliers: ≥ 90% √

Risk and Risk and opportunity reviews shall be conducted at least once a year to verify their effectiveness. Pass rate of environmental health and safety (EHS) system

Opportunity

Review certification among manufacturing suppliers: ≥ 45%

√ Achieved

Indicators and Goals By 2030 the share of suppliers participating in Scope 3 emission In Progress

reduction activities shall reach 30%

Indicators

Supplier ESG Management

Key Indicators Unit 2025

Number of suppliers with quality management system certification Items 191 The Company fully integrates the ESG philosophy into the entire lifecycle of supplier management. It gradually incorporates

environmental social and governance factors into its supplier evaluation system. Relying on a systematic management

Number of suppliers with environmental management system Items 103 framework strict admission and review procedures regular performance monitoring and capacity building the Company certification works with partners to build a transparent compliant and green-prospering supply chain ecosystem. The Company

Number of suppliers with occupational health and safety management gives priority to suppliers with outstanding performance in energy conservation and emission reduction labor rights

system certification Items 28 protection and honest and compliant operations proactively addressing multiple challenges such as global climate change

resource constraints and the fulfillment of social responsibilities. Meanwhile the Company continuously promotes supply

Number of suppliers terminated due to non-compliance Items 0 chain information sharing and collaborative communication. It regularly organizes ESG-specific training for its internal

procurement team and cooperative suppliers sharing ESG practices and management methods to enhance their ESG

Number of potential suppliers rejected due to non-compliance Items 0 management awareness and practical capabilities. Together with all supply chain stakeholders the Company practices the

concept of sustainable development and creates greater value for the environment and society.

73 74Case Study AVD & Suppliers: Jointly Promoting Sustainable Development Transparent Procurement

AVD is committed to building a supply chain ecological environment of “transparent cooperation” and signs Supplier Code of

In May 2025 the Company’s System Department organized a Conduct containing integrity and transparent cooperation clauses with cooperative suppliers clarifying the integrity and self-

sustainable development training session for both the internal discipline codes of conduct for both parties and strictly prohibiting any form of commercial bribery interest transfer and

procurement team and cooperative suppliers. The training unfair competition. The Company sets clear liability for breach of contract clauses in the manual and at the same time sets

was closely integrated with the Company’s supply chain up an independent integrity report dedicated email address (avdisplay@av-display.com) encouraging internal and external

management practices systematically covering ESG concepts personnel to participate in supervision and reporting and adhering to the “zero tolerance” principle for all kinds of violations.updates in international and domestic regulations (including

the EU CSRD and CBAM) as well as key global supply chain

management areas such as social responsibility audit practice Key Performance

conflict minerals due diligence trade security and AEO

certification and hazardous substance control (HSF). This In 2025 Shenzhen AVD signed integrity agreements with 2 8 8 suppliers in total with a 1 0 0 . 0 0 %

training effectively deepened the understanding of ESG among

the procurement team and suppliers. It laid a solid foundation signing rate; Ganzhou AVD signed integrity agreements with 3 6 suppliers in total with a 1 0 0 . 0 0 %

for the Company’s subsequent efforts in conducting on-

site supplier audits driving suppliers to improve their ESG

performance and efficiently collecting key data such as carbon AVD Supplier Sustainable signing rate.emissions marking a critical step in building the Company’s Development Training

internal ESG management capabilities.Smart Procurement

AVD takes digital and intelligent construction as the starting point to improve the efficiency and transparency of

Key Performance

procurement management continuously iterates and optimizes information management systems such as OA SAP and

MES unblocks the cross-departmental production and operation collaboration link further optimizes the procurement

1 3 process and ensures the efficient execution and precise control of raw material procurement.In 2025 AVD held ESG training session for suppliers with a training duration of hours covering

145 suppliers. Conflict Minerals

AVD adheres to the principle of responsible mineral procurement and strictly follows the Conflict-Free Sourcing Initiative

(CFSI) in the product procurement link to ensure that mineral sources comply with the OECD Due Diligence Guidance

for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas and other equally recognized due diligence

Responsible Procurement frameworks. The Company formulates Code of Practice for Conflict Minerals Due Diligence establishes a systematic and procedural

conflict minerals management and control system strictly controls the source compliance of core metal minerals such as

gold tantalum tungsten and tin in the supply chain as well as extended minerals such as cobalt mica copper graphite

lithium and nickel to ensure that all kinds of minerals come from legal and compliant channels.AVD fully integrates the concept of sustainable development into the entire procurement management process formulates

Supplier Code of Conduct clarifies core compliance requirements such as environmental protection anti-discrimination The Company has established a clear cross-departmental collaborative management structure to ensure the implementation

occupational health and safety labor rights and interests salary and welfare and business integrity and establishes a and closed-loop management of conflict minerals due diligence work. The Procurement Center is responsible for the overall

standardized and sustainable procurement management process and operational capabilities. organization of supply chain due diligence collecting and maintaining RMI_CMRT Conflict Minerals Report and RMI_EMRT Extended

Minerals Report submitted by suppliers and strictly reviewing the validity of the reports; The Supplier Quality Department is

responsible for conducting special audits on suppliers’ conflict minerals investigation work incorporating the audit results

into Supplier Quality System Audit Report (QSA-SCR) and following up the rectification and implementation of non-conformities

throughout the process; The System Department is dedicated to connecting and responding to the conflict minerals

investigation requirements initiated by customers and is also responsible for the monitoring of the validity period of

smelters’ relevant qualifications and the verification of qualification validity.The Company has fully embedded the conflict minerals management requirements into the whole life cycle of supplier and

material management established a normalized supply chain mineral compliance management mechanism and conducted

a comprehensive general survey of conflict minerals in the supply chain every year. During the Reporting Period the

Company issued specific requirements for conflict minerals due diligence to 324 cooperative suppliers.

75 76Equal Treatment of Small and Medium-Sized Enterprises

AVD adheres to the cooperation principles of fairness transparency and mutual benefit and win-win results does not

implement differentiated treatment due to the differences in the scale of cooperative enterprises in business cooperation

and earnestly fulfills the responsibility of supporting the development of small and medium-sized enterprises. By providing

equal business opportunities stable cooperation expectations and necessary growth support for small and medium-sized

enterprises the Company establishes long-term and stable win-win partnerships with them and jointly promotes the

inclusive development and sustainable upgrading of the industrial chain. During the Reporting Period the Company had no

overdue payments to small and medium-sized enterprises.IATF 16949:2016 Certificate of AVD ANSI/ESD S20.20:2021 Certificate of ANSI/ESD S20.20:2021 Certificate of

Shenzhen AVD Ganzhou AVD

Product and Service

Safety and Quality

Quality Assurance System

Governance ISO 9001:2015 Quality Management System Certification Certificates of AVD Ganzhou AVD and Ruidisheng

AVD always abides by the quality policy of “Customer First Quality Supreme Innovative Development Pursuit of Perfection”

and strictly complies with the requirements of relevant laws and regulations such as the Product Quality Law of the People’s

Republic of China. The Company sets up the Quality Center as the centralized department for quality management which Strategy

comprehensively plans all quality management work of the Company and takes the lead in building the enterprise quality

culture and quality strategic planning system. The Company formulates a complete set of quality management documents

such as Advanced Product Quality Planning (APQP) Control Procedure Product Design and Development Control Procedure and Product AVD bases on the internal and external operating environment and the core demands of relevant parties systematically

Monitoring and Measurement Control Procedure and builds a quality control mechanism covering the whole process of R&D carries out the identification and assessment of risks and opportunities and formulates and implements targeted response

production and delivery. measures to continuously improve product quality and market competitiveness.Risk/ Risk/Opportunity Expected

Opportunity Probability of Impact Description

Type Occurrence Duration

Financial Countermeasures

Quality Center Impact

In the production link

product quality may fail 1.Strengthen the incoming

to meet standards due inspection process of raw materials

Touch Display System Supplier Product Quality Assurance Ganzhou AVD to raw material quality Short and Reduction and continuously optimize

Quality Department Department Quality Department Department Quality Department Risk Quality Risk production process deviation High Medium in production process parameters;

or inadequate quality Term Operating 2. Improve the whole-process

control which in turn affects Income quality management system and

customer experience and conduct regular special product quality inspections.Organizational Structure Chart of the Quality Center brand reputation.Promote intelligent and

digital transformation relying 1. Increase R&D resource

In terms of the construction of quality management system during the Reporting Period the Company continued to on cutting-edge technologies investment and introduce

deepen the implementation of the system and the certification upgrade work and has successfully passed a number of such as big data and artificial advanced technologies and

Oppor- Technological intelligence optimize Medium Increase in equipment;

authoritative certifications such as ISO 9001:2015 Quality Management System IATF 16949:2016 Automotive Industry Quality tunity Transformation production and operation High and Long Operating 2. Improve the construction of

Management System and ANSI/ESD S20.20:2021 Electrostatic Discharge Protection Management System; Its subsidiaries Opportunity processes continuously Term Income quality management system

Ganzhou AVD and Ruidisheng have also successfully passed the ISO 9001:2015 Quality Management System certification iterate product quality and and strengthen product quality

performance and improve inspection and after-sales

laying a solid foundation for the stability of product quality with standardized system construction and further improving the customer satisfaction and service guarantee.market recognition and core competitiveness of products. market recognition.

77 78Management of Impacts Risks and Opportunities Goals

The Company formulates Code of Practice for the Control of Measures to Address Risks and Opportunities and builds and continuously

improves the risk and opportunity management process for the whole life cycle of products and services.

2025 Goals Achievement Status

The identification of risks and opportunities related to system certification is led by the System

Department and carried out in collaboration with all relevant business departments to ensure

Risk

Identification comprehensive identification. Product Delivery Timeliness Rate ≥ 90.00% √ Achieved

In accordance with the established evaluation criteria the identified risks are quantitatively

evaluated from three dimensions: severity occurrence frequency and detectability and the

Risk risk level is determined by calculating the risk coefficient to provide a basis for formulating

Assessment subsequent response measures.Product Shipment Qualification Rate ≥ 97.00% √ Achieved

After the responsible departments assess the identified risks they adopt adaptive response

strategies combined with the risk levels including risk acceptance (applicable to risks with small

losses and high occurrence frequency) risk reduction (reducing risk losses through special

Risk measures) and risk avoidance (eliminating potential risks through process optimization or plan

Response adjustment) so as to achieve the risk control objectives.Customer Satisfaction ≥ 90.00 Points √ Achieved

The Company conducts a special review of risks and opportunities at least once a year to

verify the effectiveness of management measures. After the review documents such as risk

and opportunity analysis and evaluation form residual risk analysis report and improvement

Risk measures/plans are formed to provide support for the continuous optimization of the

Management management system.Key Performance

During the Reporting Period the Company conducted 2 annual internal quality audits and no major safety

and quality liability accidents related to products or services occurred.Indicators and Goals

Indicators

Indicator Unit 2025

TP Product Qualification Rate % 90.77

TFT Product Qualification Rate % 95.35

79 80Product Quality Management Measures Hazardous Substance Management

To ensure that products fully comply with the requirements of standards and relevant laws and regulations such as RoHS

REACH IEC61249-2-21 and GB26572-2025 AVD formulates management documents such as HSF Product Testing Code of

Whole Life Cycle Management Practice and HSF Compliance Product Control Procedure conducts full-category hazardous substance testing on raw materials

tooling and fixtures semi-finished products and finished products in the whole production process and builds a sound

AVD has built a whole life cycle quality management system covering four modules: product R&D material supply hazardous substance management and control system to ensure product compliance.production and manufacturing and market operation with the core goal of creating high-quality products satisfying users

laying a solid foundation for the sustainable development of the Company. The system clearly defines the division of responsibilities of relevant departments such as the management representative

the System Department and the Supplier Quality Department and builds a management and control mechanism with

clear rights and responsibilities and efficient collaboration. The scope of control covers the whole process of supply chain

Quality Management Process management new material development and procurement product design and manufacturing and delivery. By formulating

List of Restricted Hazardous Substances and List of Customer-Specific Requirements for Hazardous Substances the HSF compliance

Product Design and Development Stage standards for various products are clarified; Carry out regular pollution source identification and risk assessment form a risk

control list and incorporate it into the daily testing system. During the Reporting Period both AVD and Ganzhou AVD have

After fully collecting market demands the Technical Department conducts a comprehensive feasibility analysis passed the IECQ QC080000 Hazardous Substance Process Management System certification and the hazardous substance

implements refined control over the whole process of product R&D and service supply and lays a solid foundation for management and control capability has been recognized by authoritative institutions.product quality compliance from the source.Production and Manufacturing Stage

Strictly follow the specifications and requirements such as DFMEA Code of Practice and PFMEA Code of Practice and

standardize the whole process of sample production and product trial production; for products involving the

application of new materials and new processes strictly implement in accordance with the Material Development Code of

Practice. Conduct multi-dimensional and full-factor product inspection and testing throughout the production process

to ensure that product quality meets audit standards and relevant compliance requirements.IECQ QC080000 Certificate of AVD IECQ QC080000 Certificate of Ganzhou AVD

Product Quality Training and Publicity

Feedback and Evaluation StageDuring the order execution period the Quality Center takes the lead in organizing special corrective and rectification In September 2025 AVD carried out the 2025 Quality Culture Month activity with the theme of “Improve Quality andactions for internal quality abnormalities and customer feedback problems systematically summarizes the experience Efficiency Forge Ahead Steadily” systematically deepening the construction of quality culture which covered all employees

and methods in the correction process and updates them to the relevant management documents simultaneously. of AVD Ganzhou AVD as well as the core supplier system.The Quality Center in conjunction with the Sales Center conducts a comprehensive review and in-depth analysis

of the achievement of customer objectives and demands every year to continuously promote the optimization and

improvement of product quality.Rework and Repair Management

In the production process and finished product inspection link unqualified products found in self-inspection

mutual inspection and random inspection are identified and isolated immediately. For products determined to need

rework/repair a strict re-inspection process is implemented after the treatment is completed; at the same time by

continuously improving the professional operation ability of employees in rework/repair the management objectives

of reducing process loss shortening production and delivery cycle and full control of the quality of reworked products

are achieved. Quality Month Launch Meeting “Required Knowledge and Skills” Activity

81 82Product Recall

AVD formulates Unqualified Product Control Procedure establishes a standardized product recall management process clarifies

the recall trigger conditions implementation specifications and subsequent disposal requirements to ensure the timely

control of quality risks. When the Company internally identifies that products have HSF non-conformities involve safety/

health risks and other circumstances requiring recall the product recall process is initiated immediately. The recall process

is led by the Quality Center which is responsible for sorting out and providing core information such as the model batch

involved quantity recall reason and associated customers of the recalled products formulating and issuing Product Recall

Notice accurately transmitting it to relevant customers through the Sales Center and following up the progress of the recall

of products at the customer end and terminal throughout the process.After the recalled products are recovered they are first isolated and disposed of in strict accordance with the unqualified

product management requirements a root cause analysis is organized and targeted corrective and improvement measures

“Clean Room Clothing Wearing PK” Activity “Eagle Eye” Activity are formulated and then in accordance with the specific categories of non-conformities rework repair recovery or

scrapping are adopted in accordance with regulations to ensure the complete elimination of quality risks. If a product recall

is triggered by unqualified random inspection the test results are officially fed back to the relevant certification institutions

simultaneously to ensure the full-process compliance and traceability of products.Key Performance

During the Reporting Period the number of product recalls of the Company was 0 Item and the product

recall ratio was 0 %.Supplier Quality Publicity Quality Month Activity Site

Customer Service Management

Customer Service Management System

Key Performance

144 AVD has established a scientific and sound customer service management system formulated internal management During the Reporting Period the Company carried out times of quality training and publicity norms such as Customer Service Control Procedure Customer Service Code of Practice and Sales Business Conduct Code of Practice and

continuously improved the quality of customer service. The Company has built a customer service process system covering

4354.00 1960 the whole pre-sales in-sales and after-sales cycle with clear rights and responsibilities and efficient collaboration at activities with a total training duration of hours and a total of Person-times each stage. The pre-sales stage is responsible for by the Business Department including the filing of new customers and

the standardized entry of customer information; The in-sales stage is participated in by the Business Department Sales

of training participants. Department and R&D Department in collaboration including the construction of project information forms the whole-

process progress tracking of orders and the timely communication and feedback of customer demands; In the after-

sales stage for the return of unqualified products the Customer Service Department leads the joint disposal of relevant

departments and provides customers with professional and standardized supporting solutions such as return and repair.

83 84Customer Service Management Measures Customer Satisfaction Survey

Customer Complaint Response Mechanism AVD formulates Customer Satisfaction Survey Code of Practice to implement standardized and standardized management of

satisfaction survey work and conducts a comprehensive annual customer satisfaction survey covering the whole year every

year. The survey focuses on core dimensions such as product quality after-sales service and compliance with environmental

AVD always adheres to the principle of customer first formulates Customer Complaint Handling Code of Practice and establishes a protection requirements. The Customer Service Department uniformly issues the Customer Satisfaction Questionnaire according

standardized customer complaint management mechanism. Customer complaints are subject to hierarchical control and are to the list of surveyed customers determined annually and follows up the recovery progress throughout the month after the

divided into three categories: general customer complaints major customer complaints and quality accidents according to questionnaires are sent out with a clear requirement that the questionnaire recovery rate shall not be less than 80.00%.the loss caused by the complaint and the impact on the Company’s brand reputation and are efficiently disposed of through

cross-departmental collaboration and linkage. The Company has established a normalized channel where the Sales Center

is responsible for understanding the customer’s situation at the customer end giving handling opinions and coordinating

the information transmission and communication such as customer delivery. At the same time the Quality Center regularly Key Performance

conducts a systematic review of customer complaint matters forms a special analysis and summary report formulates

targeted improvement measures transforms mature improvement plans into standardized management documents and During the Reporting Period the Company issued a total of 7 3 Copy of customer satisfaction

organizes relevant personnel to carry out special training to continuously improve the quality and response efficiency of

customer service and reduce the occurrence of similar customer complaints from the source. questionnaires and the customer satisfaction rate was 9 2 . 3 1 %.Operation Process of Customer Complaint Mechanism

Customer Service Training

After receiving the customer complaint information the CQE engineer records the complaint in

the Daily Customer Complaint Record Summary Table confirms the matter registration according to the

impact and investigates and analyzes the cause together with the responsible department; AVD continuously deepens the construction of customer service capabilities to help the sales and relevant business teams

build a professional and efficient customer service system. During the Reporting Period the Sales Center carried out a total

of eight special training sessions adopting a training model dominated by internal training and supplemented by external

training. The training effect acceptance is carried out through various methods such as on-site evaluation assessment and

After the preliminary analysis and investigation by the CQE if the complaint is deemed untrue testing and one-on-one interviews to effectively improve the overall service professionalism and execution efficiency of the

communicate with the customer in an appropriate way such as E-mail telephone WeChat or the team.form provided by the customer;

For verified customer complaints the CQE organizes a problem-solving team (relevant units such

as NPI Production Department Electronic Department Project Department Quality Department

Manufacturing Department) to communicate clearly define the division of responsibilities and

completion time for customer complaint handling. The team leader investigates the root cause of

the customer complaint according to his/her responsibilities and formulates corrective measures.Introduction to Basic Knowledge of Introduction to Basic Knowledge of

Industrial Intelligence Industrial Intelligence

Indicator Unit 2023 2024 2025

Number of Customer Complaints Times 80 71 45

Number of Resolved Customer

Times 80 71 45

Complaints Quality-Related Sales Training Basic Knowledge of Display & Touch Training

85 86Data Security and Normalized Information Security Assurance Measures

Privacy Protection To effectively prevent information security risks ensure the continuous operation of business and the security of information

assets the Company has established and implemented a systematic information security management and control system.Information Security Management System

Information Security and Data Privacy Protection Measures

AVD strictly abides by relevant laws and regulations such as the Cybersecurity Law of the People’s Republic of China the Data The computer room is equipped with access control and environmental monitoring systems which

Security Law of the People’s Republic of China and the Personal Information Protection Law of the People’s Republic of China formulates can push alarm information to managers in real time; the construction of the computer room

internal norms such as Information Security Incident Control Code of Practice and Confidentiality System Management Code of Practice to strictly follows the standard specifications and multiple protection measures such as anti-static

ensure the stable and safe operation of the Company’s information systems and related equipment. The Company sets up fire prevention lightning protection and anti-theft are set up simultaneously; special personnel are

the Information Technology Department which is responsible for the overall disposal of information security incidents; All arranged to conduct daily normalized inspections of the computer room to fully ensure the safe and

departments strictly implement the responsibility of information security prevention and control take the initiative to prevent stable operation of the computer room.the occurrence of information security incidents report sudden information incidents in a timely and accurate manner and

fully cooperate with the investigation evidence collection rectification and implementation of relevant work. In addition the The Company implements an automated data backup mechanism builds an off-site backup system

Company signs Confidentiality Agreement with all employees to strengthen the confidentiality awareness and responsibility of and formulates differentiated backup strategies for different operating systems; conducts regular data

all staff protect the security of the Company’s key information in an all-round way and effectively safeguard the legitimate recovery tests to verify the availability and integrity of backup data and protects the security of data

rights and interests of the Company. assets in an all-round way.All office computers and servers of the Company are installed with genuine operating systems and

anti-virus protection software with security patches updated in a timely manner and daily normalized

Key Performance security checks are implemented.Without permission electronic devices of third-party visitors outside the Company are strictly

During the Reporting Period the Company’s investment in data security was 9 1 6 5 0 0 . 0 0 RMB prohibited from accessing the Company’s internal network.and no data security incidents or customer privacy leakage incidents occurred. Through the regular conduct of special information security training comprehensively strengthen the

information security awareness and protection capabilities of all employees.Enable the file encryption system to implement full-process data encryption for office files and at

the same time conduct standardized management of terminal USB interfaces strictly prohibiting the

private reading of external storage devices and building a solid defense line for the Company’s data

leakage prevention from the technical level.EDR Security Software Security Management Platform

87 88Information Security Risk Assessment Customer Privacy Protection

To fully identify and respond to information security risks and opportunities in production and management activities the The Company attaches great importance to the protection of customer privacy and data rights and interests formulates

Information Technology Department of the Company strictly follows the Company’s Code of Practice for the Control of Measures to Confidentiality System Management Code of Practice clearly includes customer-related information such as customer lists

Address Risks and Opportunities establishes a standardized risk identification and response management method systematically customer files cooperation plans and meeting minutes into the scope of confidentiality and implements hierarchical

sorts out and confirms the information security risk points in the areas under the jurisdiction of the department and confidentiality management and control in accordance with the system. At the same time exclusive confidentiality clauses

compiles the Risk and Opportunity Analysis and Evaluation Form based on the risk assessment results to realize the standardized are set in various agreements signed with customers clearly defining the rights and responsibilities boundary of information

and listed management of risks. For all kinds of identified risks a number of targeted management and control measures protection for both parties protecting the security of customer privacy and trade secrets in an all-round way and effectively

have been implemented including conducting a comprehensive information security risk assessment every year deploying safeguarding the legitimate rights and interests of customers.an information security management system and a security defense system for all terminals of the Company and promoting

the realization of automated backup of all categories of data building an all-round information security risk prevention and

control system. Emergency Event Management

Information Security Training

AVD formulates special emergency plans and response mechanisms such as Cybersecurity Emergency Plan Code of Practice and

The Company regularly carries out network security and data security education and training continuously improves the builds a scientific standardized efficient and agile information security emergency management mechanism to ensure

confidentiality awareness of all staff as well as the basic literacy and practical skills of information security and systematically that when sudden security incidents such as information system abnormalities occur the emergency disposal process can

builds the overall risk prevention and emergency response capabilities of the organization. During the Reporting Period the be started quickly and control measures can be taken accurately to minimize the incident losses and adverse effects. The

Company carried out 2 times of information security training with 96 Person-times of participating employees. Company has established a normalized emergency drill mechanism and organizes practical emergency drills irregularly

every year to verify the feasibility of the emergency plan and the effectiveness of emergency response. In 2025 the

Company carried out special information technology emergency drills in June and December respectively focusing on

practical drills for core emergency scenarios such as file recovery and system data recovery. After the drills the whole

Case Study Information Security Training process was reviewed evaluated summarized and optimized. The two emergency drills have effectively improved the

information security emergency disposal capability and collaborative operation capability of all staff accumulated practical

experience for the efficient disposal of sudden security incidents and fully achieved the expected drill objectives.In November 2025 the Company invited external lecturers to carry out information security training for

employees. The training theme focused on core contents such as national network security laws and

regulations national key network and data security work requirements domestic and foreign network

security situation and network security cases phishing email prevention password security etc. effectively

strengthening the network and data security protection awareness of the participants.Information Security Training

899004

Unite as One:

Empower Talent

Growth

Our Philosophy

AVD has always adhered to the people-oriented philosophy respected

and safeguarded employees’ legitimate rights and interests and strived

to build an equal inclusive safe and orderly workplace. We not only focus

on the improvement of employees’ professional capabilities but also

attach importance to their spiritual needs and work-life balance and place

the protection of employees’ physical and mental health in an important

position in enterprise operation and management. By establishing a sound

occupational health and safety guarantee mechanism a comprehensive

salary and welfare system carrying out a variety of corporate culture

activities and implementing regular employee care measures we enhance

employees’ sense of belonging and happiness.Our Actions

P ro te c t O cc u p a t i o n a l H e a l t h a n d S a fe t y A d h e re to E q u a l

EmploymentImprove the Salary and Welfare System Strengthen

Democratic Management Attach Importance to Employee Training and

Development

91 92Occupational Health and Safety The Company has set up a Work Safety Committee to comprehensively plan and lead the Company’s work safety management supervise the implementation of major work safety decisions and arrangements and adhere to the bottom

line of work safety. We have established a sound safety responsibility system consolidated the main safety management

responsibilities at all levels and signed work safety responsibility letters. Regular evaluations are conducted in accordance

with the requirements of work safety standardization construction and a comprehensive assessment is made on the

Occupational Health and Safety Management System completion of work safety objectives and indicators. Meanwhile to effectively improve the efficiency of safety management the Company carries out special training on work safety responsibilities for management personnel strengthens their

awareness of the safety red line and the rule of law thinking and continuously promotes the construction of the safety

leadership system laying a solid foundation for work safety with professional management.AVD has always adhered to the safety management policy of “Safety First Prevention First; Fulfill Responsibilities EnsureSafety; Comply with Laws and Regulations Strengthen Management; Improve Environment Protect Health” and strictly

abides by the requirements of national laws and regulations such as the Work 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. We prevent and resolve major safety

risks from the source providing a reliable safety guarantee for the orderly operation of the Company. No safety accidents

occurred during the Reporting Period.Huang Zhiyi

Primary Legal

Governance Responsible Person

(Legal Representative)

The Company has formulated a series of occupational health and safety management documents including the Occupational

Health Operation & Monitoring and Control Procedure Hazard Source Identification and Risk Assessment Management Regulations and Safety Primary Executive

Inspection Assessment and Accident Reward and Punishment Management Regulations establishing a sound occupational health and Responsible Person Chen Wenjian(General Manager)

safety management system to comprehensively protect employees’ health and safety. As of the end of the Reporting

Period both AVD and Ganzhou AVD have obtained the ISO 45001 Occupational Health and Safety Management System

Operational Responsible

certification. Person (Chairman of Work Zheng Rong

Safety Committee)

Work Safety Leadership Group

Department Heads and All Employees

Work Safety Management Organizational Structure of AVD

Occupational Health and Safety Occupational Health and Safety

Management System Certification Management System Certification

Certificate of AVD Certificate of Ganzhou AVD

93 942025 Environmental Social and Governance (ESG) Report

Strategy Impact Risk and Opportunity Management

The Company evaluates and identifies potential risks and opportunities in the production process conducts regular The Company has formulated institutional documents such as the Hazard Source Identification and Risk Assessment Management

investigations on various safety hazards in the workplace and formulates and implements targeted corrective and Regulations and Safety Inspection Assessment and Accident Reward and Punishment Management Regulations and continuously improved

rectification measures in a timely manner for identified problems. We realize the source control and minimal disposal of the Company’s risk management process.safety risks and effectively build a protective barrier for employees’ life safety and occupational health.Management Process Management Measures

Risk/ Risk/Opportunity

Opportunity Likelihood of Impact

Expected The Work Safety Committee organizes all relevant departments of the Company

Description

Type Occurrence Duration

Financial Countermeasures to identify and assess hazard sources in production and operation activities

Impact and office premises every year and compile the Company’s List of Hazard Source

Identification and Risk Assessment.I n t h e e v e n t o f a n

occupat ional health or 1. Conduct safety hazard

work safety accident the investigations and strengthen If hazard sources change during the identification process re-organize

Company’s production and source control of risks; formulate Increased emergency plans and conduct risk assessment immediately and update and revise the List of Hazard Source Operational business activities may face Short

Risk interruption risks and a Low Term operational regular emergency drills.Identification and Risk Assessment simultaneously.large amount of funds need costs/fines 2. Implement occupational health

to be invested in accident protection measures and provide The Work Safety Committee shall timely organize re-identification and re-

disposal and subsequent employees with protective Hazard Source Identification assessment of the hazard source identification and assessment results

rectification. equipment. and Assessment submitted by various departments for review.Risk After the completion of hazard source identification and assessment implement

differentiated hierarchical control in strict accordance with risk levels and

1. Strictly carry out equipment formulate and implement corresponding control measures in a targeted Equipment failures process

defects and inadequate transformation and maintenance manner.safety protection facilities Medium Increased to improve the stability of Technical Risk may lead to production Medium and Long operating equipment and facilities.accidents or occupational Term costs 2. Regularly inspect protective equipment and facilities to ensure Carry out in-depth special rectification actions and improvement actions for diseases. their safety and effectiveness. work safety and refine and implement internal regular hazard investigations

and cross-regional mutual hazard investigations in accordance with the

Company’s internal regulations to promote the implementation of safety hazard

rectification in work safety.

1. Improve the occupational

health management system Focus on the investigation and rectification of risk hazards in key areas such as

and systematically identify and electricity use fire protection chemicals and electrical engineering deepen the

control various hazard factors in source governance systematic governance and comprehensive governance of

the working environment. Safety Hazard work safety and build a comprehensive safety defense line for work safety.

2. Equip employees with Investigation

compliant protective equipment

and strengthen occupational During the Reporting Period Shenzhen AVD conducted 11 special safety

health protection. inspections identified and rectified 251 safety hazards with a 100.00% Th e i m p l e m e n t a t i o n

of occupat ional health 3. Conduct regular occupational rectification rate; Ganzhou AVD conducted 23 special safety inspections

m a n a g e m e n t e n a b l e s health examinations for identified and rectified 199 safety hazards with a 100.00% rectification rate.e n t e r p r i s e s t o m o r e employees and establish Short exclusive files to realize dynamic

Oppor- Management effectively prevent and control potential hazard High Medium Reduced monitoring and intervention of tunity Efficiency factors in the work ing and Long expenditure occupational health prevent

env i ronment improve Term occupational health problems The Company has formulated the Work Safety Accident Emergency Plan including

employees’ work efficiency from the source protect special emergency plans for fire hazards hazardous chemical leakage forklift

and avo id l a rge-sca le employees’ physical and mental health improve work accidents pressure vessel explosions etc.financial expenditures. efficiency and avoid large

financial expenditures caused by Organize regular training and drills conduct a comprehensive review and

occupational health accidents. summary of the whole drill process evaluate the effectiveness and optimize

4. Introduce more advanced and improve the plan comprehensively enhance employees’ safety awareness

production equipment improve Emergency Plan and emergency response capabilities for sudden safety incidents and

process flows and actively effectively build a protective barrier for employees’ life safety.promote digital construction to

enhance enterprise management In 2025 the Company organized a total of 23 safety emergency drills.efficiency.

95 96Indicator Unit 2023 2024 2025

Total Duration of Safety Training Hours 3279.00 4191.00 4836.00

Per Capita Safety Training

Duration Hours/Persons 1.71 1.84 1.95

Safety Training Coverage Rate % 100.00 100.00 100.00

Work Safety Investment Amount RMB10000 274.21 229.50 83.08

Fire Evacuation Drill of Shenzhen AVD Hazardous Chemical Leakage Accident

Drill of Shenzhen AVD Work-Related Fatalities Persons 0 0 0

Total Number of Work-Related

Injuries Persons 10 6 5

Work-Related Injury Insurance

Investment RMB10000 / 87.54 101.68

Certification Rate of Special

Operation Personnel % / 100.00 100.00

Employee Physical Examination

Coverage Rate % 100.00 100.00 100.00

Fire Emergency Drill of Ganzhou AVD

New Occupational Diseases Cases 0 0 0

Indicators and Goals

Goals

Indicators

The Company conducts a comprehensive evaluation of the implementation of work safety standardization at least every

quarter and simultaneously makes a comprehensive assessment of the completion of work safety objectives and indicators

standardizes the Company’s work safety management and improves the long-term work safety management mechanism.Indicator Unit 2023 2024 2025

Total Investment in Safety

Training RMB10000 3.36 5.04 5.17 Goals Content Achievement Status

Number of Safety Training Sessions 146 141 264 100.00% Rectification Rate of Safety Hazards AchievedSessions √

Number of Participants in Safety Person-Times 7669 9374 5823 100.00% Implementation Rate of Emergency Plans √ AchievedTraining

97 98Occupational Health and Safety Management Measures Case Study Work Safety Month Training

The Company practices the work safety policy of “Safety First Prevention First” and formulates management documents In June 2025 the Company’s Safety Office

such as the Safety Training Management Regulations Occupational Safety Protection Operation Regulations and Work-related Injury Accident organized special training activities around the

Management Regulations to strengthen the management of employees’ work safety continuously improve employees’ safety theme of “Work Safety Month”. The training

awareness and practical operation capabilities avoid various potential safety hazards and risks from the source and protect content included basic knowledge of work safety

the safety of the enterprise’s production and operation and employees’ life and health rights and interests. interpretation of major laws and regulations and

practical methods of on-site safety inspection.Through case analysis and practical operation

explanation employees’ safety awareness and risk

prevention capabilities were further strengthened

laying a solid foundation for the Company to

Ensure that all relevant parties entering the Company’s operation areas comply with continuously build a strong safety defense line.Relevant the Company’s safety standards and procedures by signing safety agreements and

Safety Production Month Training

Party Safety conducting safety education and training.Management

Safety operating procedures and relevant visual warning signs for production facilities Case Study Safety Main Responsibility Training for Middle and Senior Managers

Production and equipment are fully covered in all scenarios; new equipment must be strictly

Equipment accepted by the safety department before being put into use at the factory and can

Management only be activated after passing the acceptance inspection. In 2025 the Company carried out safety main responsibility training for middle and senior managers. Through

this training the main position of production and business units in work safety training was clarified the

training responsibilities at all levels from the principal person in charge to ordinary employees were refined

On-site management personnel and operators shall strictly operate in accordance with to avoid the suspension of responsibilities and ensure that the training work is managed and supervised by

safety operating procedures and safety management regulations and strictly prohibit specific personnel.illegal command illegal operation and violation of labor discipline.After the completion of engineering construction it can only be put into use after

passing the acceptance inspection by the safety department.Operation

Management Formulate and implement the work safety on-duty plan and system and implement the

leader on-duty system during important periods.Formulate the approval system for high-risk operations; high-risk operations are strictly

prohibited without signing a safety agreement filing valid certificates and obtaining

approval from the safety department.The Company regularly organizes the publicity and education of laws and regulations

related to work safety knowledge of work safety standardization and post operation

knowledge and solidly carries out theme safety publicity activities such as the national

“Work Safety Month” and “Fire Protection Publicity Month”.Formulate and implement the annual safety training plan specifying the training

content and time.Improving

Safety Organize annual safety re-training for all employees to continuously improve their safety

Awareness literacy and practical operation capabilities.Before the put into use of new technologies new equipment new processes and new

materials conduct special safety training on the “Four News” for relevant personnel to

ensure that they are put into use only after the completion of training. Training on Work Safety Primary Responsibility for Middle and Senior Management

99 100Occupational Health Protection Protection of Employees’

The Company has formulated institutional documents such as the Occupational Health Operation & Monitoring Procedure and

Occupational Health Monitoring Standards to systematically identify analyze and control potential occupational hazard factors in Legitimate Rights and Interests

the operation process. At present the main occupational hazard factors in the Company’s production workshops include

hydrochloric acid noise sodium hydroxide acetone etc. The Company entrusts qualified third-party institutions to conduct

detection of occupational disease hazard factors in industrial places every year and immediately implements targeted Protection of Employees’ Rights and Interests

protection measures based on the detection results. Meanwhile we strengthen the daily monitoring of occupational hazard

factors and on-site inspections urge all employees to strictly implement occupational health protection measures and

The Company strictly follows international standards such as the Universal Declaration of Human Rights of the United Nations and

effectively build a protective barrier for employees’ occupational health.the human rights-related provisions in the Responsible Business Alliance (RBA) Code of Conduct abides by national laws

and regulations such as the Labor Law of the People’s Republic of China (hereinafter referred to as the Labor Law) and the provisions

of overseas operation locations. We have formulated institutional documents including the Employee Handbook Personnel

Management Operation Guidelines Labor Ethics Standard Risk Assessment Operation Guidelines and AVD Code of Conduct continuously

strengthened employee management resolutely eliminated any acts that infringe upon employees’ human rights and

The Company arranges pre-job annual on-job and pre-resignation effectively respected and protected employees’ basic human rights. No illegal and irregular incidents such as employment

occupational health examinations for employees engaged in posts with discrimination child labor employment and forced labor occurred during the Reporting Period and the signing rate of labor/

occupational hazard factors helping employees effectively monitor their service contracts reached 100.00%.Occupational physical conditions and strengthen their awareness of self-protection of

Health occupational health.Examination

Anti-Discrimination and Diversity

The Company firmly opposes all forms of discrimination and differential treatment. In terms of employee employment salary

and welfare training and development and promotion and appointment we do not implement discrimination or unfair

In accordance with the requirements of occupational disease risk prevention

and control provide operating employees with corresponding protective treatment on the basis of race color age gender sexual orientation ethnicity disability pregnancy religious belief political

equipment such as protective masks earplugs and labor protection shoes stance trade union affiliation marital status and other factors and effectively protect employees from sexual harassment Equipping with

Occupational for operation posts with potential occupational disease hazards and urge

threats intimidation and other inappropriate treatment at work.Disease Protection employees to use them.Equipment The Company strictly implements the principle of equal pay for equal work for male and female employees. In the employee

recruitment stage except for the types of work or posts that are not suitable for women as stipulated by the state we

will never refuse to employ women or raise employment standards for women on the basis of gender and there is no any

In accordance with the requirements of laws and regulations determine the discriminatory behavior against female employees regarding their marriage and childbearing status. In terms of housing

detection points of occupational hazards in the Company by comparing the

Company’s existing occupational hazard sources and combining with the allocation and welfare benefits we fully protect the equal rights and interests of male and female employees.Detection of occupational health evaluation report of third-party institutions and conduct

Occupational daily safety inspections. During the Reporting Period the Company’s The Company has established a sound complaint and appeal mechanism for discrimination and unfair treatment. When

Hazard Factors detection rate of occupational disease hazard factors reached 100.00%. employees encounter unfair treatment they can appeal to management personnel level by level who shall give a reasonable

reply in a timely manner according to the actual situation and formulate a treatment plan within one week. Meanwhile

employees can feed back problems through the employee suggestion box the Company’s official WeChat official account

and other channels. The Company’s human resources department trade union and management level jointly accept relevant

In the design and review stage evaluate the environmental and occupational

health and safety risks that may be caused by the use or production appeal incidents conduct investigation and verification immediately and make a fair handling in strict accordance with laws

of products advocate the adoption of non-toxic and harmless process and regulations and the Company’s relevant provisions.Product technologies and replace toxic substances with non-toxic ones and highly

Design Stage toxic substances with low-toxic ones.Key Performance

Replace high-noise equipment with low-noise ones and set up vibration As of the end of the Reporting Period the Company has 1 2 employees with disabilities and 1 9 0 ethnic

and noise reduction facilities such as adopting sound insulation/absorption

measures for noise to prevent excessive noise; carry out planned renewal

transformation or elimination of equipment that does not meet the

Equipment minority employees including 1 ethnic minority employee in the management level.Transformation requirements of safety regulations.

101102

Key Measures for Occupational Disease PreventionProhibition of Child Labor Talent Recruitment and Retention

The Company resolutely safeguards the legitimate rights and interests of minors and explicitly prohibits the employment

of child labor (persons under the age of 16). In the employee recruitment stage we strictly verify authenticate and retain

legally valid age certification documents. In case of mistaken recruitment of child labor we will report to the local labor Employee Recruitment Channels

administrative department immediately provide free physical examination services for them; if the child labor suffers In accordance with the Company’s business development plan and changes in post requirements AVD formulates a

from illness we will provide free medical treatment until recovery and at the same time cooperate with the local labor targeted talent recruitment plan every year and introduces outstanding talents through various recruitment channels

department to safely send them back to their original places of residence and entrust them to their parents or legal such as campus recruitment social recruitment and internal recommendation continuously injecting new vitality into the

guardians for proper care. Company’s innovative development.Opposition to Forced Labor

The Company firmly prohibits all forms of forced and compulsory labor standardizes the leave management and overtime

approval process fully protects employees’ legitimate rights and interests of rest and vacation in accordance with the law

and ensures that all employees work on a voluntary and equal basis.Protection of Women's Rights and Interests

In accordance with the relevant laws regulations and policies such as Campus Recruitment Special Session of AVD at Campus Recruitment Special Session of AVD

the Labor Law the Trade Union Law of the People's Republic of China and the Changsha University of Science and Technology at Guilin University of Electronic Technology

Special Provisions on the Labor Protection of Female Employees the Company

has signed the Special Collective Contract for Female Employees with the

trade union committee to effectively safeguard the legitimate rights

and interests and special interests of female employees.Upholding the principle of respect and care the Company fully

protects the legitimate rights and interests of female employees

during menstruation pregnancy childbirth and lactation. We provide

exclusive nutritious meals and a dedicated dining area for pregnant

female employees set up breastfeeding rooms in both office areas

and production workshops to facilitate lactating female employees.We strictly implement the special labor protection requirements for

female employees and are strictly prohibited from arranging female Social Recruitment Activity of AVD Campus Recruitment Activity of Ganzhou AVD

employees to engage in high-altitude low-temperature cold water

operations and the third level of physical labor intensity as stipulated

by the state during menstruation. In addition the Company actively

organizes theme activities for International Women’s Day every International Women’s Day Activities

year and issues exclusive holiday red envelopes and bouquets for

0.69%

female employees to enhance their sense of belonging and work 58.28%

enthusiasm.

23.29%

New New

Key Performance Employees by Employees by

Gender Recruitment Channel

41.72%

During the Reporting Period 1 employee enjoyed parental leave. 76.02%

Female Campus Social Male Other Recruitment Recruitment Channels

103 104Employee Structure Salary and Welfare Management

Indicator Unit 2025

Employee Salary and Assessment

Total Number of Employees Persons 2484

The Company has formulated the Salary Management Operation Guidelines and Objective Management Evaluation and Reward Measures

establishing an incentive salary mechanism based on performance results to provide employees with a fair reasonable and

competitive salary and welfare system. Employee salary consists of basic income and floating income of which the floating

income is directly linked to the results of individual performance appraisal.

0.08%0.85%

50.85% 9.90% In accordance with the annual business objectives reviewed and approved by the board of directors the Company organizes

all employees to conduct quarterly and annual KPI performance appraisals focusing on key dimensions such as employees’

work performance. The appraisal results serve as an objective basis for the distribution of employee performance bonuses

By Educational

By Gender salary adjustments job level promotions and demotions selection of annual advanced individuals and post adjustments. Background During the Reporting Period the proportion of employees receiving regular performance and career development appraisals

reached 100%.

49.15%

89.17% Employee Welfare

Female Male Doctoral Degree Master’s Degree

Bachelor’s Degree Below Bachelor’s Degree The Company has formulated the Welfare Operation Guidelines to build a comprehensive welfare system for employees. We

pay the five social insurances and housing fund in full and on time in accordance with regulations provide employees with

special welfare such as post subsidies technical subsidies and high temperature subsidies and legally protect employees’

2.82% 7.69% right to enjoy various statutory holidays such as annual leave marriage leave sick leave and maternity leave. On traditional

34.30% 0.32% 3.06% 1.05% festivals such as New Year’s Day Spring Festival Lantern Festival Dragon Boat Festival and Mid-Autumn Festival as well

10.39% as employees’ birthdays the Company presents exclusive festival benefits and birthday gifts to all employees making all

22.95%

employees truly feel the care and warmth of the enterprise family.

2.86%

By Age By Job Level By Profession

39.94%96.62%78.02%

Under 30 Years Old Senior Management Production Sales

30-40 Years Old (Including 30

Excluding 40) Middle Management

Technology Finance

Administration

40-50 Years Old (Including 40 Other Employees

Excluding 50)

50 Years Old and Above

Key Performance

As of the end of the Reporting Period the total employee turnover rate of Shenzhen AVD was 3 . 6 6 %

Ganzhou AVD 5 . 5 9 % Ruidisheng 8 . 1 9 % and Beijing AVD 0 . 0 0 %.

105 106Diversified Welfare System Strengthening Democratic

Management

Welfare Category Types of Welfare Scope of Employees Employee Communication Channels

The Company strictly abides by the requirements of laws and

Endowment Insurance Medical regulations such as the Trade Union Law of the People’s Republic of

Insurance Work-Related Injury

Basic Welfare All Employees China and the Provisions on Democratic Management of Enterprises. It has Insurance Unemployment Insurance

Maternity Insurance Housing Fund established an open and democratic communication mechanism for

employees and safeguards employees’ democratic rights including

the right to information participation expression and supervision by

Festival Benefits Post and Position holding congresses of employee representatives signing Trade Union

Subsidies Birthday Parties High Collective Contracts and other means. The Company actively supports

Temperature Subsidies Night Shift trade unions in carrying out their work in accordance with the law

Care Welfare Subsidies Technical Subsidies Female All Employees gives full play to the positive role of trade unions in protecting

Employee Benefits Team Building employees’ interests and internal coordination enhances employees’

Dining Benefits Physical Examination sense of belonging and loyalty and fosters a sound corporate

atmosphere.Household Registration Transfer The Company encourages employees to offer suggestions and ideas

and Recruitment Talent Housing

Special Welfare Academic Promotion Subsidies Eligible Employees and has established and improved multi-dimensional communication

Couple Dormitories Marriage channels for employees including the official WeChat Official

Subsidies Service Awards Account employee suggestion boxes general manager mailboxes

employee communication meetings and other forms. The Company

attaches great importance to employees’ demands and suggestions

and regularly collects employee feedback through satisfaction

surveys. It promptly formulates and implements rectification

Indicator Unit 2023 2024 2025 measures for the feedback issues and rational suggestions so as to

continuously optimize the internal management system.Social Insurance Coverage Rate % 100.00 100.00 100.00

Key Performance

Employee Welfare Coverage Rate % 100.00 100.00 100.00

Employee Welfare Expenditure RMB10000 / 285.74 356.35 During the Reporting Period the Company convened a total of 3 Staff Representative Congresses.Equity Incentive

Employee Grievance Mechanism

To further improve the Company’s governance structure establish a sound long-term and effective incentive and restraint

mechanism and ensure the long-term and stable development of the Company the Company launched the 2025 Employee The Company has formulated the Guidelines for the Management of Employee Complaints and Grievances established and improved a

Stock Ownership Plan (Draft) for the first time in August 2025 which fully mobilizes employees’ sense of responsibility to the standardized complaint and grievance mechanism and built smooth and confidential grievance channels for employees. All

Company attracts and retains outstanding talents and core technical (business) backbones and enhances the cohesion of employees are supported to promptly file grievances and reports regarding incidents such as corruption abuse of power for

employees and the development vitality of the Company. personal gain disclosure of confidential information unauthorized command abuse of authority and other matters causing

dissatisfaction. Meanwhile the Company has constructed a comprehensive whistleblower protection mechanism clearly

To ensure the smooth implementation of the employee stock ownership plan and safeguard the legitimate rights and stipulating that no entity may retaliate against employees who file legitimate grievances. Once such acts are verified the

interests of the holders the Company has formulated the 2025 Employee Stock Ownership Plan Management Measures and set Company will impose severe penalties in accordance with laws and regulations; for serious cases the labor contract will

up the 2025 Employee Stock Ownership Plan Management Committee of the Company as the daily supervision and be directly terminated. If the act involves violations of laws the case will be transferred to the relevant authorities for legal

management institution of the employee stock ownership plan to exercise rights on behalf of the holders. liability investigation in accordance with the law.

107 108Employee Care

Department If Unresolved

General Grievances Supervisor (Section Human Resources

Chief/Manager) Department

Employee Activities

If Resolved: OK Investigation

concluded and results

announced within five

days The Company attaches great importance to the balanced development of employees’ work and life regularly organizes a

If Unresolved variety of rich and diverse cultural and sports activities effectively enhances employees’ sense of happiness and belonging

Employee Human Resources

Grievance Process Major Grievances General ManagerDepartment and continuously strengthens the enterprise’s centripetal force and cohesion.If Resolved: OK Investigation concluded with

results announced

Special Grievances General Manager If Resolved: OK

Investigation

concluded with

Appeal Process results announced

General

Manager

Employee Tug-of-War Competition Employee Singing Competition

Department HR Manager Employee Relations

Manager Specialist

Department

Supervisor

Team Leader Employee Relations

Employee

Communication WeChat Official Care Hotline Employee Specialist Meeting Account Suggestion Box

123456

Employees Employee Basketball Game Employee Table Tennis Competition

Appeal Channel

Employee Satisfaction Survey

The Company attaches great importance to and continuously monitors changes in employee satisfaction. It conducts an

annual Employee Satisfaction Survey promptly responding to or addressing the problems opinions suggestions put forward

by employees as well as their satisfaction level with the Company. This approach fosters a sense of ownership among

employees and continuously improves the Company’s human resource management capabilities. During the Reporting Internal Trainer Appreciation Event Company Annual Gala

Period Shenzhen AVD conducted a satisfaction survey covering dimensions such as compensation and benefits career

development and employee care with an employee participation rate of 68.44% and an overall satisfaction score of 82.03.Ganzhou AVD carried out a full-staff satisfaction survey achieving an overall satisfaction score of 76.30.

109 110Safeguarding Employees’ Mental Health

The Company attaches great importance to employees’ mental health. It has established a Psychological Assistance

Association and set up a Spiritual Home Station. The Company regularly carries out publicity and education on mental health

knowledge and conducts activities such as psychological counseling and mental health guidance to help employees relieve

work pressure improve their psychological adjustment ability and mental resilience. This supports the harmonious physical

and mental development of employees and facilitates their synchronous growth and joint development with the enterprise.Case Study Workplace Stress and Emotional Management Training

The Company’s Human Resources Department organized training on workplace stress and emotional

management on June 26 2025. Through case analysis and explaining stress relief methods the training helped

employees improve their mental health literacy and better cope with the pressure in work and daily life.Fun Sports Meet Team-Building Activity

Employee Birthday Party Retiree Farewell Party

Assistance for Employees in Need

The Company attaches great importance to employee care initiatives regularly conducting annual condolence and

assistance activities for employees in need. Focusing on addressing employees’ most pressing concerns and difficulties the Workplace Stress and Emotional Management Training

Company takes concrete actions to deliver practical benefits and solutions ensuring that the assistance efforts accurately

cover employees in need and the families of special-needs employees. During the Reporting Period Ganzhou AVD provided

assistance to 1 employee in need with a total assistance amount of RMB 12000.

111 112Employee Training and

Development The Company’s pre-job training includes new employee orientation training and on-the-job training. The training content mainly covers introductions to the Company rules and regulations code of conduct basic knowledge of positions operation

instructions and other related content. It is designed to help employees gain a deeper

understanding of the Company and the working environment quickly integrate into

Pre-Job

Employee Training Management Training the team understand job requirements and rapidly get into work mode thereby enhancing employees’ professional skills and building a high-potential talent reserve

for the Company.Talent Development System

Let the Company closely integrate talent cultivation with its development strategies formulating systems such as the Training

Management Guidelines. It provides all employees with rich flexible and diverse training courses including training on basic The employee on-the-job training programs are divided into two major categories:

literacy job skills safety and leadership. This meets employees’ learning needs for improving professional knowledge and Company-level and department-level. Company-level training is organized and

basic occupational skills encourages independent learning and promotes the Company’s sustainable development while implemented by the Human Resources Department. It offers customized curricula

enhancing individual value. The Human Resources Department is responsible for continuously improving the internal training tailored to employees across all ranks and positions primarily covering general

system and overall managing the Company’s training-related affairs including the development of annual training plans On-the-Job education professional skills management safety and systematic courses.training evaluation assessments and improvements. Training Department-level training is conducted by individual departments. Based on their

specific functions these departments provide professional theoretical knowledge

The Company attaches great importance to training effectiveness and has established a sound training quality monitoring technical skills training and practical operation guidance to their in-house employees.mechanism. Following internal training employees can be evaluated through four assessment methods: written tests

oral exams practical operations and experience reports. This ensures the effective transformation and implementation of

training outcomes.The Company establishes training objectives formulates training plans implements

Internal Trainer Management training programs and monitors the post-transfer training effectiveness of employees

based on their training needs in new positions which shall serve as the assessment

Position Transfer basis for transfer and promotion. After returning to work following an extended leave

The Company continuously promotes the development of its internal instructor team taps into the potential of internal and Return-to-

Work Training employees shall complete pre-return training arranged by the supervisor of their

training enriches training resources and drives the Company’s training system toward standardization systematization and respective department.standardization. The Company has clearly stipulated in the Training Management Guidelines the selection criteria assessment

and certification teaching procedures responsibilities incentive standards and daily management of internal instructors so

as to further improve the professional quality and overall level of the internal instructor team. During the Reporting Period

the Company had a total of 164 internal instructors with 21 newly certified instructors.The Company recommends eligible personnel to receive off-job training outside the

Company for the purpose of work professional development further education or job

promotion prior to taking up a new role. Trainees who have completed the external

Hierarchical Training training shall compile all acquired knowledge into a structured manual and submit

Development it to the Human Resources Department for filing. This manual shall be classified as

Training an internal training teaching material. Based on the actual internal training needs if

According to different management levels business functions and educational backgrounds the Company formulates corresponding training courses are developed the trained personnel shall serve as

tailored training plans for employees in various positions such as management personnel technical personnel and instructors to teach or share relevant knowledge with the Company’s employees.production staff. Employee training can be categorized into pre-job training on-job training return-to-work training

and development training. Adopting a combination of internal and external approaches the Company leverages internal

instructors externally hired professional lecturers external training programs and team development workshops to

comprehensively enhance employees’ comprehensive quality and work competence.

113 114Employee Career Development Pathways

The Company has formulated the Personnel Promotion Management System and the College Student Reserve Cadre Training and

Management Measures establishing three career development paths: the Management Track (M) Technical Track (T) andMarketing Track (S). It has built a post management system featuring “structured positions clear growth paths and broaddevelopment space” realizing “vertical connection and horizontal intercommunication” among the three tracks (management

technical and marketing). Through the “multi-path” model the Company continuously optimizes employee development

routes and provides comprehensive development opportunities for employees. The Company has abolished the post

management system of “one position for a lifetime” clarified the promotion requirements for each rank and continuously

motivates employees to enhance their professional and management capabilities. During the Reporting Period a total of 41

employees participated in internal transfers or internal applications.Systematic R&D Methodology Training for New Growth Drivers Training for

Ganzhou AVD Ganzhou AVD Tube Row No. (M) Tube Row No. (T) Tube Row No. (S)

Remarks

Position

Grade Management

Position R&D/Equipment/ Position

Grade Process/Quality Grade Sales

Indicator Unit 2023 2024 2025

M7 General Manager

Employee Training Investment RMB 10000 43.69 77.32 41.04

M6-2 Senior Deputy General Manager T6-2 S6-2 Senior VP SalesSenior Chief

Engineer

Number of Employee Training Deputy General Times 323 538 585 M6-1 Manager T6-1 S6-1 VP SalesSessions

M5-2 Senior Director T5-2 S5-2 Senior Sales Director

Total Person-Times of Training

Participation Person-Times 13236 / 23871 Chief Engineer

M5-1 Director T5-1 S5-1 Sales Director Promotion

Pathways

Employee Training Coverage Rate % / 100.00 100.00 Available across

M4-2 Senior Manager Sales Manager / Three Sequences

T4 Principal Engineer S4 Customer Service Manager / Marketing

Total Training Duration Hours 32721 66281.84 94000.35 M4-1 Manager Manager

M3 Section Chief T3 Senior Engineer S3 Customer Service Supervisor

Sales Representative

Academic Qualification Upgrade Support M2 Supervisor T2 Engineer S2 / Customer Service

Supervisor

Assistant / Customer Service

AVD encourages employees to pursue academic qualification enhancement education and provides academic qualification M1 Team Leader T1 Assistant Engineer S1 Representative /

upgrade subsidies to eligible employees to support their self-development. Employees can independently choose Marketing Specialist

various forms of on-the-job academic qualification improvement such as self-study examinations adult college entrance Clerk/Technician

examinations and on-the-job postgraduate examinations. During the Reporting Period a total of 14 employees of the

Company participated in academic qualification enhancement and a total subsidy of RMB23000 was issued.

10-3 Team Leader/Quality Controller/Material Management Officer/Machine Debugging Officer

Grassroots

Position

10-2 Multi-Skilled Operator/Machine Operator

10-1 General Operator (including Cleaning Personnel/Caterer/Security Staff)

Employee Career Development Pathways

11511605

Public Welfare:

United Hearts for

Goodness

Our Philosophy

AVD prioritizes the fulfillment of corporate social responsibility as a core

part of its development strategy. It actively supports the national rural

revitalization strategy remains committed to social welfare initiatives

and strives to foster synergy and harmonious coexistence between the

Company and society.Our Actions

Enhance Contributions to Local Communities Support Rural Revitalization

Engage In Social Welfare and Charity

117 118Rural Revitalization Public Welfare and Charity

To further promote the Company’s active fulfillment of social responsibility and regulate donation activities the Company

Consumption Assistance has established the Administrative Measures for External Donations strengthening the management of donation matters to make its charitable initiatives more targeted transparent and sustainable. The Company remains committed to participating

in a wide range of public welfare and charitable activities. While striving for growth and development it stays true to its

founding mission forges ahead with dedication and joins hands with all sectors of society to cultivate positive community

With the in-depth advancement of the rural revitalization strategy poverty alleviation agricultural products play an important relations and promote harmonious social development. During the Reporting Period the Company donated RMB 50000 to

role in increasing farmers’ income and promoting rural economic development. To actively respond to the national call the earthquake-stricken area of Dingri County in Shigatse City Xizang and contributed HKD 50000 to the victims of the fire

and fulfill corporate social responsibility the Company has carried out activities related to purchasing poverty alleviation disaster at Fook Yuen Estate in Tai Po Hong Kong.agricultural products to implement consumption assistance.Education Assistance Case Study 2025 AVD Public Welfare Care Program

The Company attaches great importance to the development of rural education. To enhance students’ awareness of

The Company joined hands with Shenzhen Longgang Chunnuan Social Work Service Center to launch the 2025

independent learning in poverty-stricken areas the Company invites students from the Daliangshan to participate in study

Qiutiwei Public Welfare Care Program — "Qiutian Blossoms" Inclusive Care Activity. The project was prepared in

tour activities at the Company every year. It is hoped that these students can broaden their horizons beyond the mountains

2025 and held at Longcheng Park Longgang District Shenzhen on March 21 2026 (World Down Syndrome Day).

and envision more possibilities for their future.

20 families of adolescents with intellectual disabilities members of the Xiaohua Choir and over 40 volunteers from

the Company participated in the event. With the characteristics of "sports rehabilitation and music therapy" the

activity was held in the form of a sports carnival and concert providing a platform for adolescents with intellectual

disabilities to demonstrate themselves and integrate into society helping them enhance confidence and grow

healthily. The Company’s total public welfare investment in this activity reached RMB 33900.

2025 Daliangshan Student Study Tour Program

119 120Future Outlook

As the country ushers in the “15th Five-Year Plan” period in 2026 it marks a pivotal moment for AVD to deepen its ESG

The Company will increase investment in environmental technology research and development and the introduction of

practices and drive sustainable development. Adhering to its core mission and assuming social responsibility AVD will be

environmental protection equipment focus on the research and development of green products and launch products

guided by sustainable development. It will continue to deeply cultivate the three core areas of ESG elevate the Company’s

with greater environmental benefits and in line with the requirements of low-carbon development. It will fully integrate

ESG governance standards to new heights and ensure the Company’s high-quality and sustainable development moves

ecological and environmental requirements into the supply chain management system strengthen collaborative guidance

forward steadily and far.on environmental management and control for upstream and downstream partners promote the green transformation of

the supply chain and jointly reduce the carbon footprint of the entire industrial chain. AVD is committed to becoming an

In the area of governance AVD will continue to refine its corporate governance mechanisms strengthen its internal control environment-friendly enterprise most trusted by stakeholders.and risk management systems strictly comply with laws regulations and regulatory requirements uphold the bottom line

of business ethics and ensure that compliance management runs through the entire course of its operations. At the same

In the social domain AVD will always stay true to its original aspiration of social responsibility comprehensively improve

time the Company will further enhance the timeliness accuracy and completeness of information disclosure strengthen

the quality and efficiency of fulfilling social responsibilities and achieve coordinated development between the enterprise

investor relations management and fully safeguard the legitimate rights and interests of its shareholders. It will continue

and society. The Company will continuously increase R&D investment empower product iteration and upgrading throughto optimize its ESG governance structure reinforcing the three-tier management system comprising “leadership by thetechnological innovation strictly implement product quality standards and build a solid product safety line. It will provideBoard of Directors guidance by the Strategy and ESG Committee and execution by the ESG Special Task Force” and will

customers with more intelligent reliable and competitive products and services and continuously improve customer

more closely integrate ESG performance into the performance appraisal systems of senior management and all business

satisfaction. AVD will continue to improve the talent development system optimize talent training mechanisms and career

departments thereby establishing a long-term mechanism to ensure the effective implementation of its sustainable

development paths create a fair open inclusive and innovation-encouraging environment for talent growth strengthen the

development strategy.introduction cultivation and echelon construction of core talents protect the legitimate rights and interests of employees

and promote the common growth and progress of employees and the Company.In the environmental domain AVD will deeply practice the concept of green development. With greenness low carbon

and sustainability at its core it will promote the quality improvement and upgrading of green practices and contribute

Always adhering to its social responsibility AVD will carry out diversified charitable and public welfare activities to convey

to the achievement of the “Dual Carbon” goals. The Company will fully implement the green manufacturing model

the warmth of the enterprise. It will actively respond to the national rural revitalization strategy continue to exert efforts in

continue to promote the standardized construction of “Green Factories”. Through measures such as optimizing production

consumption assistance and educational assistance and support rural construction and coordinated regional development.processes upgrading energy-saving equipment and adjusting the energy structure it will steadily improve production

energy efficiency increase the proportion of renewable energy use and continuously reduce carbon emission intensity

energy consumption and water consumption during operations. AVD will strengthen environmental management and

control throughout the entire operation process. It will enhance the resource recycling and utilization in all links such as

raw material procurement production processing product packaging and waste disposal reduce material loss promote

packaging reduction standardization and recyclability and minimize the negative impact of the Company’s operations on

the ecological environment.

121 122Appendix Sustainability Reporting Standards of the Global Self-Regulatory Guidelines for

Report Section Reporting China Corporate Sustainability Listed Companies No. 17 –

Initiative (GRI Reporting Guidelines (CASS-ESG 6.0) Sustainability Reporting (Trial)

Standards)

Indicator Index Table

Sustainability Reporting

Standards of the Global Self-Regulatory Guidelines for 201-2/305-1/305-

E1.1.1/E1.1.2/E1.1.3/E1.1.4 Article 11

Report Section Reporting China Corporate Sustainability

Climate Action /E1.1.5/E1.1.6/E1.1.7/E1.1.8 Articles 20-24

Listed Companies No. 17 – 2/305-3/305-4

Reporting Guidelines (CASS-ESG 6.0) /E1.1.9/E1.1.12/E1.1.16/E1.1.19 Articles 26-28Initiative (GRI Sustainability Reporting (Trial)

Standards)

About This Report 2-2/2-3 P1.1/P1.2 Article 4Article 6

Chairman’s Message / P2.1 / Environmental E2.1.1/E2.1.2/E2.1.3/E2.1.5

Compliance 303-4/306-1/306- /E2.1.6/E2.1.8/E2.2.1/E2.2.3

Article 11

Green Management 2/306-3/306-4/306-5 /E2.2.5/E2.2.6/E2.4.1/E2.4.2/E2.4.3/

Articles 29-31

Corporate Innovation: E2.4.4/E3.3.4/E3.3.5

Article 33

Profile 2-1 P3.1/P3.3 / Painting an

Ecological

Corporate Picture

Culture / P3.2 /

Glance at

AVD

Honors / / / Resource 301-3/302-1/302-

E3.1.1/E3.1.2/E3.1.4/E3.1.5

/E3.2.1/E3.2.3/E3.2.4 Article 11Management 4/303-5 /E3.3.1/E3.3.2/E3.3.4 Articles 34-37

2025

Performance 201-1 A2 /

Highlights

ESG Goals

and Vision / G1.1.11 / Ecosystem and

Biodiversity 101-2/101-8 E2.3.2/E2.3.3 Article 32

Conservation

ESG 2-14/2-17/2-18 G1.1.1/G1.1.2/G1.1.3/G1.1.5Governance /G1.1.6/G1.1.8/G1.2.4 Article 12

ESG

Management

Stakeholder 2-16/2-29 G1.3.2 Article 9Engagement Article 53

Innovation as S2.1.1/S2.1.2/S2.1.3/S2.1.4// S2.1.5/S2.1.6/S2.1.7/S2.1.8/ Article 11the Driver

Management S2.1.10/S2.1.11/S2.1.12/S2.1.13

Article 42

of Key Issues 3-1/3-2/3-3 G1.1.9 Article 5

Corporate 2-9/2-10/2-11/2-12/2- Supply Chain 2-6/308-1/308-2/414-13/2-18/2-19/2-20/2- / Article 51 Meticulous Management 1/414-2 S3.1.1/S3.1.2/S3.1.3/S3.1.4/S3.2.1

Article 11

Governance Article 45-4627/207-2 Efforts:

Forging

Deepening Investors’ Quality

Governance: Rights and Benchmarks2-16 / Article 53 Product and Laying a Solid Interests Service Safety 416-1 S3.3.1/S3.3.2/S3.3.4/ Article 11

Foundation Protection and Quality S3.3.5/S3.3.6 Article 47

for

Development

Maintaining

Integrity 2-25/2-27/205-2/205- G2.1.1/G2.1.2/G2.1.3/G2.1.4 Data Security

and Clean 3/206-1/417-1 /G2.1.6/G2.1.7/G2.1.8/ Articles 54-56G2.2.1/G2.2.2/G2.2.3 and Privacy 418-1 S3.4.1/S3.4.2/S3.4.3/S3.4.4 Article 48Governance Protection

123 124Sustainability Reporting Feedback Form

Standards of the Global Self-Regulatory Guidelines for

Report Section Reporting China Corporate Sustainability Listed Companies No. 17 –

Initiative (GRI Reporting Guidelines (CASS-ESG 6.0) Sustainability Reporting (Trial)

Standards) Thank you for reading the 2025 Environmental Social and Governance (ESG) Report of Shenzhen AV-Display Co. Ltd. To enhance our ESG

performance strengthen sustainable development capabilities and improve communication with stakeholders we sincerely

invite your valuable feedback and suggestions on our initiatives and this report.Occupational 403-1/403-2/403-

Health and 3/403-4/403-5/403- S4.2.1/S4.2.2/S4.2.3/ Article 11

Safety 6/403-7/403-8/403- S4.2.4/S4.2.5/S4.2.6 Articles 49-509/403-10 Your Information

Name: Phone:

Organization: Email:

Unite

as One: Protection of

Empower Employees’ 2-7/201-3/401-1/401- S4.1.1/S4.1.2/S4.1.3/S4.1.4 Multiple Choice (Please tick √ the appropriate option)

Talent Legitimate 2/401-3/405-1/406-1 /S4.1.5/S4.1.6/S4.1.7/S4.1.8 Articles 49-50Grow Rights and /S4.1.9/S4.1.10/S4.1.11/S4.1.12

Interests /408-1/409-1 1. Your overall evaluation of Shenzhen AV-Display Co. Ltd.’s 2025 ESG Report:

□ Excellent □ Average □ Needs Improvement □ Not Familiar

2. How do you assess AV-Display Co. Ltd.’s performance in customer service

Employee □ Excellent □ Average □ Needs Improvement □ Not Familiar

Training and 404-2 S4.3.1/S4.3.2/S4.3.3

Development /S4.3.4/S4.3.5/S4.3.6

Articles 49-50

3.How do you assess AV-Display Co. Ltd.’s performance in technological innovation

□ Excellent □ Average □ Needs Improvement □ Not Familiar

4.How do you assess AV-Display Co. Ltd.’s performance in corporate governance

Rural

Revitalization 203-1/203-2 S1.1.2/S1.1.4 Articles 38-39 □ Excellent □ Average □ Needs Improvement □ Not Familiar

Public

Welfare: 5.How do you assess AV-Display Co. Ltd.’s performance in workforce development

United

Hearts for □ Excellent □ Average □ Needs Improvement □ Not Familiar

Goodness

Public

Welfare and 203-1/203-2 S1.2.1/S1.2.2/S1.2.5/S1.2.6 Article 38 6.How do you assess AV-Display Co. Ltd.’s performance in social responsibility

Charity Article 40

□ Excellent □ Average □ Needs Improvement □ Not Familiar

7.How do you assess AV-Display Co. Ltd.’s performance in environmental protection

Future Outlook / A1 /

□ Excellent □ Average □ Needs Improvement □ Not Familiar

8.How do you assess AV-Display Co. Ltd.’s performance in sustainable supply chain management

Indicator

Index Table / A3 Article 57 □ Excellent □ Average □ Needs Improvement □ Not Familiar

Appendix 9.Additional comments/suggestions on AV-Display Co. Ltd.’s ESG efforts:

Feedback

Form / A6 /

125126