Sinofuse Sustainability Report Tel.TABLE OF CONTENTS COMPANY PROFILE SUSTAINABLE DEVELOPMENT TECHNOLOGICAL INNOVATION PARTNERSHIPS & SOCIAL (ESG) MANAGEMENT & PREMIUM SERVICES RESPONSIBILITY CHAIRMAN'S SPEECH 5 ESG GOVERNANCE STRUCTURE 11 TECHNOLOGICAL INNOVATION 49 RESPONSIBLE SUPPLY CHAIN 59 ABOUT SINOFUSE ELECTRIC 7 MATERIALITY ANALYSIS 13 QUALITY-CENTRIC SERVICE & INDUSTRY COLLABORATION & PRODUCT DESIGN 53 SHARED GROWTH 63 COMMUNICATIONS WITH STAKEHOLDER 14 CUSTOMER SERVICE ENHANCEMENT 55 SOCIAL WELFARE AND RURAL REVITALIZATION 64 MATERIALITY ISSUE MATRIX 15 CORPORATE GOVERNANCE CLIMATE ACTION & PEOPLE-CENTRIC COMMON REPORT APPENDICES & STABLE MANAGEMENT GREEN SYNERGY DEVELOPMENT CORPORATE GOVERNANCE CLIMATE RISK ADAPTATION 33 EMPLOYEE DEVELOPMENT & 69 QUANTITATIVE PERFORMANCE STRUCTURE 19 CAREER GROWTH METRICS TABLE 85 ENVIRONMENTAL MANAGEMENT 38 BUSINESS ETHICS & SYSTEM OCCUPATIONAL HEALTH & SAFETY 76 REPORT INDEX TABLE 88 ANTI-CORRUPTION 22 POLLUTANT TREATMENT 40 COMPLIANCE MANAGEMENT & RISK MITIGATIONL 25 RESOURCE UTILIZATION AND CONSERVATION 42 DATA SECURITY & PRIVACY PROTECTION 28 ECOLOGICAL CONSERVATION & BIODIVERSITY PROTECTION 45 001 002Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 About the Report COMPANY PROFILE Reporting Period January 1 2024 to December 31 2024. To enhance comparability aaJanuary 1 2024 to December 31 2024. To enhance compa- rability and forward-looking insights certain sections may be appropriately extended to both preceding and subsequent years.nd forward-looking insights certain sections may be appropriately extended to both preceding and subsequent years.Report Boundary aspects. All case studies cited are sourced from the Company and its subsidiaries.Report Standards and the issued by the Team on Climate-re- lated Financial Disclosures (TCFD).Report Reliability Assurance The Company guarantees that the content of this report is true accurate and complete without any false records misleading statements or material omissions.Report Access 003 004Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 CHAIRMAN'S SPEECH Dear Colleagues Partners and Friends from All Walks of the Company.ecosystem.We prioritize employee health and safety with 100% of In 2024 global energy transition and climate change chal- autonomy while next-generation EV fuses (deployed across lenges coexisted while geopolitical shifts and technological I. Innovation-Driven: Solidifying Technological Leadership - and Safety Management System supported by comprehen- - scapes. Against this backdrop Sinofuse Electric remains that only by growing together with employees can we global competition and inject strong momentum into industry -- sustainability principles into our corporate DNA through ties—spanning materials structures and smart systems—in III. Mutual Prosperity: Building a Sustainable Supply Chain Ecosystem global responsibilities forging new milestones amid chal- the past year we empowered sustainable infrastructure lenges.Since its establishment in 2007 Sinofuse Electric has jour- world-class performance to secure critical energy autono- and the industry.my while next-generation EV fuses (deployed across 20+ path the Company has consistently adhered to a long-term - Dear colleagues and friends responsibility compliance from the source. Meanwhile the sustainability principles. On one hand the Company - in global competition and inject strong momentum into Electric will join hands with our global partners harnessing mechanism guaranteeing 100% supply chain traceability ronmental impact across all operations from product R&D and fostering shared prosperity across the industrial chain. - and production processes to packaging and logistics with - tionally secure and socially responsible! the commitment to building a sustainable green supply II. Green Manufacturing: Delivering on Our Dual-Carbon ration with an open mindset making sustainability the - Strategy Commitment common language connecting all our partners. Thank you! As of the end of 2024 Sinofuse Electric had expanded its IV. People-Centric: Cultivating a Caring Corporate Culture capabilities—spanning materials structures and smart becoming a global leader in the fuse industry through inde- -employees offering a dual-track promotion mechanism of ” 005 006Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 ABOUT SINOFUSE ELECTRIC Global Presence - tronic fuses and excitation fuses with power fuses being the leading product.Leading positions in industries such as new energy power generation (wind and solar) energy storage and rail transit Detroit USA VALID PATENTS MARKET POSITION EMPLOYEES PRESENCE IN 20+ COUNTRIES AND REGIONS Corporate Culture Reutlingen Germany Vision - Seoul South Korea Japan Tokyo Mission R & D Manufacturing Shanghai Suzhou Shenzhen Hong Kong and employees! Thailand Rayong Values 1. NPAC (Next-Process-as-Customer) Principle under Customer-Cen- tric Approach; Global Branch Subsidiaries Sub- Regional Subsidiaries in subsidiaries Representative Establishment 2. Respect Trust Unity Mutual Support 3. 4. Integrity Passion 5. Sense of Mission Responsibility Honor Urgency 007 008Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 Product Models & Partnerships Passive Index Index Code Name New Energy Electric Vehicle Industry Battery packs DC charging piles MSD 931994.CSI CSI Grid Equipment Theme Index - Rail transit industry 931591.CSI 866501.WI Wind Energy Theme Index Communications Industry and other industrial power distribution equipment protection facilities. 931468.CSI Wind-Solar Power Generation and 866503.WI Wind Smart Grid Theme Index Energy Storage Industry 866400.WI Wind Strategic Emerging Industries Index Social Awards Awards / Honors Certifying Authority China Electrotechnical Society Science and Technology Award China Electrotechnical Society High-Tech Enterprise Science and Technology ESG Rating Science and Technology Agency Rating Champion Enterprise and Information Technology QuantData A Ministry of Industry and Information Technology Wind BB CCXI BB 009 010Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 Sustainable Development (ESG) ESG ESG Structure Responsibilities 1. ES Ggovernance System 2. 3. Propose sustainability strategies and target resolutions Board of Directors the 4.policies In 2024 the Company continued to deepen the integration of ESG principles into its operations. On one hand it further 5. - ing with other standing committees - 1. Exercise ESG-related duties on behalf of the Board of Directors dards and progress toward targets. On the other hand the Company strengthened sustainability management practices in 2.areas such as carbon neutrality human rights optimization and supply chain compliance.Sustainable 3.against targets ESG Governance Structure of Sinofuse Electric Committee 4. 5. 6. corresponding mitigation measures 1. 2. Deliberate on material ESG matters 3. Assist internally in compiling the sustainability report ESG Team 4. 5. 1. ESG Team 2.- Functional ational domains Departments 3.Finance Department Human Resources Department General Adminis- 4.Testing and Inspection Center Strategic Promotion Department Market Department Engineering and Manufacturing Headquarters - ing Center Thailand Factory 011 012Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 Materiality Assessment Process Communications with Stakeholders Dual materiality analysis is the core of preparing annual sustainability reports formulating long-term sustainability strategic - and issued by the Shenzhen Stock Stakeholder Channels Material Response Segments Concerns prioritization results from industry peers. General Meeting of Enhanced Product Quality Shareholders Shareholders Safety and Quality Board of Directors Meeting structure Earnings Presentation Information disclosure Standardized Periodic and transparency Disclosures Anti-commercial bribery Anti-Corruption Training and anti-corruption Implementation Establishment of ESG Issue List: Clear Emission Climate Resilience Strategy Reduction Targets Conference calls Rigorous Quality Emails and Quality Control Process Customers Data Security and Encryption Technology Customer seminars Application Product training Stakeholder Engagement Transparent Communication 12 10 5 Mechanism Emails Climate Resilience Strategy Green Energy Transition Social issues Conference calls Energy Utilization Issues Suppliers Supply Chain SecuritySupplier conferences Data Security and Supply Chain Instant messages Resilience Building Use of eco-friendly materials Data Encryption ProtectionEco-material Procurement Employment and Workforce Employee Conferences AnalysisMobility Departmental Internal Meeting Employee Training Materiality Assessment and Validation: Employee Performance Feedback Meeting Training Plans Occupational Health & Safety and Facilities - Climate Resilience Strategy Carbon Footprint Reduction - Meetings Sustained R&D Industry Policy Seminars Anti-commercial bribery and Industry-related anti-corruption Eradication of Regulators Exchange Forums Commercial Bribery Special Policy Dialogues Management Issue Reporting: Social Media Update Climate Resilience Strategy Carbon Footprint Reduction Community Engagement Use of eco-friendly materials Adopting Renewable Communities Waste Disposal Materials & Reports Pollutant Emissions Implementing report focuses on highly material issues. Online Forum Interaction Water Resource Utilization Recycling ProgramsMedia Email Communications Reducing Emissions Multi-stakeholder Dialogue 013 014Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 Materiality Assessment Findings Material Issues List No. Issues Field - 1 Society 2 Materiality Issue Matrix 3 Supply Chain Security Society 1 - Core Issues 4 Response to climate change 1 Data Security and Customer 10 2 5 Society 3 6 Management 9 4 2 - Financially 7 Intellectual property protection Society 5 Materiality Issues6 8 Employee Society 8 10 9 9 Waste Disposal 14 10 Pollutant Emissions 7 17 16 15 12 11 Green products and design 13 12 Stakeholder communication 11 6 18 3 - Impact Material 13 Circular Economy 22 21 Issues 14 Water Resource Utilization 5 19 15 Equal Treatment of Smes Society 7 Hazardous substance 16 4 management 17 Use of eco-friendly materials 242320 3 18 Clean technology opportunities 19 25 2 20 Anti-Commercial Bribery and 8 Anti-Corruption 26 21 Industry Collaboration &Shared Growth Society 27 1 22 Technology ethics Society Not Material Highly Material 4 - General Issues 23 Anti-unfair competition 1 2 3 4 5 6 7 8 9 1 0 24 Society 25 Social Contribution Society Financial Materiality 26 Society-related 27 Noise monitoring 015016 Impact Materiality Highly Material03 Corporate Governance & Stable Management Sinofuse Electric. We continuously standardize operational processes clarify the responsibilities and authorities of each Externally the Company maintains information transparency process compliance. Furthermore the Company aligns with core ESG principles by enhancing information disclosure regularly sharing key updates with shareholders and the public to progress.In 2024 all directors of the Company diligently performed their duties with a total of attendance rate at board meetings.In 2024 independent directors accounted for of the Strategic Committee of the Audit Committee and of the Nomination Committee and Remuneration & Appraisal Committee. 19 ratings. Business Ethics & Anti-Corruption 22 Compliance Management & Risk Mitigation 25 employees reached and the signing rate of the Integri- 28 ty Agreement by employees was also .Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 Corporate Governance Structure Diligent Duty Performance & Implementation The The Board of Directors of Sinofuse Electric demonstrates ongoing commitment to safeguarding the legitimate rights of the Com- - - agement and standardizes information disclosure practices.Directors Work Report 2023 Internal Control Self-Assessment Report Proposal on Establishing the Independent Directors Spe- cial Meeting System Proposal on Adjusting the Members of the Third Board of Directors Special Committees and Proposal on Governance Structure Strictly adhering to laws and regulations such as the Company Law of the People's Republic of China Securities Law of the Peo- Indicators (times) 2022 2023 2024 The Board of Directors has established four specialized committees (Strategy Remuneration & Appraisal Nomination and Audit General Meeting of Shareholders 3 4 2 Board of Directors thereby ensuring robust shareholder rights protection and standardized corporate operations. Meeting 10 8 5 Meeting 8 8 4 General Meeting of Shareholders Committee Board of Directors General Manager Advancing Diversity and Independence 66.7% Specialized Committee As of the end of 2024 the Company has 9 directors including 3 independent directors 2 female directors and 7 directors with industry experience. The Board shall include at least one independent director with accounting expertise and one with industry-specif- Audit Committee Independent Director Committee The Company's independent directors comprise seasoned professionals with special- and the 66.7% Internal Audit Department - torship within the organization; no material relationships with the Company or its con- The members of the Board of Directors are elected by the shareholders' meeting with each board term lasting three years. - Sinofuse has stipulated the nomination methods and procedures for directors in documents such as the . To Independent Directors of the shall constitute at least 66.7% of Remuneration and Appraisal Committee Audit Com- Nomination Committee and Remuneration & Appraisal external positions. For details please refer to the Company's mittee and Nomination Committee. Committee 019 020Remuneration and Appraisal Committee Audit Committee Nomination Committee Strategy CommitteeXi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 Standardized Remuneration Management Integrated with Sustainability Principles In 2024 the Company successfully completed the preparation of the 2023 annual report 2024 Q1 report interim report and Q3 report issuing 82 temporary announcements with zero disclosure errors. Additionally the Company responded to 83 exchange - - understanding and recognition of the Company. Through these measures the Company has established standardized direct - - support for standard position operations and team maintenance performance pay is linked to strategic KPIs including corpo- - Sinofuse Electric strictly complies with China's anti-corruption laws the upholding integrity commitments for both the Company and its business partners while continuously strengthening ethical Protection of Investor Rights and Avoidance of corporate culture. The Company maintains a zero-tolerance policy against corruption bribery fraud and money laundering applicable to all personnel (including contract and temporary staff) across all jurisdictions. This prohibition extends to suppliers - by the China Securities Regulatory Com- mission and the employee awareness of corporate anti-corruption policies and ethical business practices empowering personnel to maintain - anti-corruption training program was primarily organized and managed by the Human Resources Department including training 6627758.17 with the payment completed on September 27 2024. KEY PERFORMANCE - Disclosure and Investor Engagement KEY PERFORMANCE 100% 0 0 - Anti-corruption training Valid Reports Employees transferred to judicial authorities holders' rights. During this reporting period while maintaining high-quality compliance A Exchange disclosure - ratings of the Company ship. 021 022Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 SINOFUSE ELECTRIC ANTI-CORRUPTION TRAINING PROGRAM In June 2024 the Company organized an anti-corruption training program for all employees. The training program focuses on legal compliance education with in-depth analysis of the S compliance through regular legal training for senior management teams.clarifying legal con- or corruption.Whistleblower Protection - - nisms. Concurrently the Company implements multi-dimensional whistleblower protection mechanisms to safeguard reporting - ensure that the whistleblower's information is not leaked. No one may disclose the whistleblower's information to any third party without the whistleblower's written consent.Safety assurance - sary security support for whistleblowers including facilitating job position or workplace adjustments to mitigate potential risks and seeking police assistance when required.Protection against retaliation Any form of retaliation against whistleblowers is strictly prohibited. The Company enforces zero-tolerance retaliation policies imposing disciplinary actions (including warnings demotions and termination) per internal regulations and refers criminal cases to judicial authorities.KEY The Company established the PERFORMANCE mitment with Clause 10 specifying anti-corruption requirements for Sinofuse - with the Company. The Company implemented the 100% - tices in tendering. Employee signing rate 023 024Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 Whistleblowing Channels Risk Control - nance structure led by the Board of Directors with cross-functional business team collaboration. Concurrently the Company Hotline A dedicated whistleblower hotline 029-68590655 is established offering manual answering implementation of risk management principles and sustain corporate health.Risk Category Risk Description Countermeasures - Email lated reports.. A designated person from the Company's compliance management depart- enhance strategic risk management - ment regularly checks this mailbox to ensure timely handling of reported information.the Company's strategic direction and market demand.Dynamically monitor the macro-external Mailing Strategic Risk the enterprise operates prudently study Address the opportunities and risks brought corruption-related leads.them in a timely manner.- nology and products independently build leading core technological capabilities Compliance Management & Risk Mitigation and continuously enhance product com- The Company's senior management Sinofuse Electric integrates compliance management into all aspects of business operations planning with the Procurement Depart- empowering growth while optimizing compliance systems to align with laws regulations ment leading decision-making and imple- industry standards and internal policies. mentation.Risks of business disruption due to natu- Supply Chain ral disasters accidents system failures Disruption or supply chain interruptions.the supply chain relying on information platform to support digital supply chain Compliance Governance System small-batch products.Supply Chain Risks All suppliers must strictly adhere to the and issued by ESG issues in the supply chain such as Company's rights health and safety leading to .Supply instability in production cycles non-com- - Chain pliance and safety issues with products ESG Risk unpredictable economic losses and brand impact.including the Optimize supplier portfolio and strength- en ESG risk management practices. 025 026Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 Tax Compliance The Company strictly adheres to laws and regulations such as the Law of the People's Republic of China on Enterprise Income Tax Establish robust organizational struc- and the Law of the People's Republic of China on the Administration of Tax Collection - Risks of legal liability regulatory penal- tures rules processes and operational Compliance standards for managing compliance Risks damage arising from non-compliant inc idents . Enhance capabi l i t ies to operations or conduct by the Company - or its employees.mitigation. during contract signing to facilitate tax planning and risk control from the source of business operations to ensure no arrears or underpayment of taxes. At the same time the Company has established a training mechanism for tax personnel to continuously enhance the Company's tax compliance management capability.Legal and Compliance Risks The risk that employees or their associ- Data Security & Privacy Protection Integrity and or position or embezzle Company prop- and other business Ethical erty through deception concealment ethics management systems were estab-Compliance Risk collusion or other means for personal gain causing damage to the Company's eliminate bribery and corruption.interests.The Company maintains strict adherence to laws such as the.Establish systematic quality risk manage-. With a clearly Quality uncertainty risks arising from the project life cycle.inadequate production technology insuf- Quality Risks - trols. Form a closed-loop risk management system through risk management report - - Conduct thorough inspect ions and Operational Risks Workplace hazards.Safety Risks during the use or storage of hazardous chemicals. equipment implement a production safety accountability system enhance staff training programs and institutional- ized safety awareness.- ronment and impact on nearby residents Properly store raw materials required by from chemical raw materials production business operations in accordance with Pollution noise and discharge of industrial waste regulations and properly handle produc- Risks water and gas required by or generated tion noise and discharge of waste water during business operations. and gas. 027 028Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 Information Security Management Measures of Sinofuse Electric Emergency Management Measures mechanism and formulated the . The Company has set up an emergency response team to backed up using a strategy of real-time incremental backups and periodic full backups; quarterly data restoration drills are conducted to ensure the integrity Security Emergency Response Measures * strategies.* - cy response drills.Data Recovery Strategy - es prohibiting unauthorized installation of third-party applications; Enhance the current Optimize the Increase backup Enhance the - backup and installation equipment. backup system to ed backup and procedures for - ensure accuracy critical application ities in data storage and reliability; data. and backup.establish training and drill mecha- nisms.prior authorization; 7. Enhance information security awareness among all employees through training; timely detection and resolution of issues. Registration is required for all external 9. Sinofuse Electric implements a tiered access control system for corporate cloud 02903004 Climate Action & Green Synergy - green manufacturing deployment and low-carbon transition sustainable industrial upgrading. Concurrently we optimized operational management through digital means strengthened methodologies for our dual-carbon goals and completed carbon the Company remains steadfast in anchoring its strategic road- - ing sustainability across business operations.In 2024 the Company fully implemented the Task Force on Climate-related Financial Disclosures (TCFD) framework com- opportunities.emissions tons of CO2 emissions tons of CO2 Climate Risk Adaptation 33 In 2024 the Company generated MWh through self-built MWh of solar-based 38 green electricity. Pollutant Treatment 40 42 45Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 Stakeholders including customers and To mitigate this risk the Climate Risk Adaptation Company has established -Reputa- ESG Nega- ronmental information disclosure. When Decreased management system Short tion this disclosed information falls short of integrating ESG manage- Term Risk - ment into our risk control Sinofuse Electric places great importance on the impact of climate change on our operations and has disclosed this information ly affect the Company's corporate image occurrence of ESG-related in accordance with the TCFD recommendations this year. and reputation. issues.- With the increasing frequency of extreme Capital tion emergency manage- Climate Risk Governance Framework Rains- Expenditure ment protocols. Equip Short- term torms emergency equipment Medium change the Company faces heightened Increased and and supplies conduct TermRisks risks of exposure to these disasters and Costs and Floods potential losses. Decreased and establish emergency drill mechanism.operations through its ESG structure under the joint leadership of the Board and Strategy Committee. Physi- cal Risks - Stakeholders including customers and - measures including establishing Reputa- ESG - Nega- ronmental information disclosure. When tion Decreased Long this disclosed information falls short of cooling systems in factories and - TermRisk - gency plans for heatstroke and ly affect the Company's corporate image - consumption reduction in cooling and reputation. systems.- Types of Climate- Opportunity Description Financial TimeRelated Opportunities Implications Countermeasures Range Types of Climate- Opportunity Description Financial Countermeasures Time The Company has built Related Opportunities Implications Range Resource The Company regularly Resource Utilization - -Decreased Short ESG Increased ments through operational optimization agement of electricity information in compli- Costs TermPolicy Repor- - Expenses and EnhancedMedium low-carbon technology adoption and and water resources and ting ance with laws and regu-sure structure presents enhanced ESG Non-Operating lations and formulates Term monitoring and early Legal Obliga- reporting requirements for enterprises. Expenditures warning.Risk tions and publishes indepen- dent susta inab i l i ty reports.The Company optimizes its energy mix The Company continu- and increases the proportion of renew- ous ly opt imizes i t s The Company has estab- Energy Utilizing able energy in total consumption to Decreased Short Nowadays dual carbon goals has been a l ished a robust R&D Sources Renewable reduce reliance on fossil fuels enhance embracing green energy Energy Costs TermNew climate resilience and lower carbon emis- and the circular econo- Trans- Techn- Techn- intensifying competition in the industry. sions.my.ition Increased industry-leading techno- Long Risks ological ology Risk new technology R&D to maintain its Costs logical expertise and Term ment market position potentially facing risks of Risks new technology R&D failure. maintain low-risk expo- sure in new technology -gic roadmap the Company maintains its focus on the mid-to-high-end power fuse The Company continues Products Green low-carbon transformation of the Compa- - Products ny's industry the Company can launch Increased ing into emerging industrial - and sectors including telecommu- ment in product and and products that better align with dual Medium nications renewable energy Market process design enhanc- carbon goals through technological inno- Term Market Policy Increased - Medium and rail transit with prioritized strategic deployment in the Risk Chang- impact the operational performance of the Costs ment and iteration capa- Term es Company's downstream customers.energy storage markets.its downstream demand - able industrial solutions. 033 034Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 The Company attaches KEY importance to expanding PERFORMANCE - Interna- technology and manage- tional can further enhance its international repu- Increased - Markets tation and meet the sustainability require- - Short Scope 1 carbon emissions Scope 2 carbon emissions duction measures to meet ments of international customers facilitat- - Term tal protection policies thereby obtaining recogni- 195.18 tons 4209.13 tons tion in the international market. of CO2 of CO2 Markets The Company is proac- - print in the new energy New Energy expansion of the new energy market Increased - Market fueling rapid growth in the Company's Short core business. Term customer resources to gradually broaden its market presence. Sinofuse Electric engaged an accredited third-party institution to conduct a carbon footprint assessment for its fuse products in - ples and procedures) culminating in an audited . The Company conducted an in-depth analysis of i ts c l imate r isk and - opportunity manage- m e n t s t r u c t u r e t o Enterprise The Company enhances its adaptability to - Resilience Resilience climate change to better manage related Increased Short risks and seize opportunities. - Term Decreased Costs magnitude of impacts and formulate targeted mitigation and adapta- tion measures.Carbon Emission Management Indicators - - - - - mal transfer generating reclaimed hot water for staff amenities while simultaneously reducing heating expenditures and - reductions of 39.89 tons of CO2 In terms of indirect carbon emissions management the Company primarily relies on purchased electricity to support daily oper- 035 036Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 Carbon Emission Management Goals Environmental Management System Sinofuse Electric commits to the - ing with and related regulations while systematically enhancing its Carbon . The Company Neutrality for Sinofuse Electric Sinofuse Electric production base has carbon-neutral product to market renewable energy adoption across all SINOFUSE ELECTRIC ISO14001:2015 CERTIFICATION manufacturing operations.Sinofuse Electric's First Year of Climate Action 2023202520392050 Carbon Emission Reduction Initiatives Energy Conservation and Project Implementation Plan Emission Reduction Volume The Company has implemented a distributed In 2024 the system generated a power utilizing factory rooftop space with an total of 189.76 MWh of renewable generation installed area of 722.18 m2 and a total electricity resulting in 105.66 tons of capacity of 155.6 kW.Procurement of Green The Company purchased 3263.43MWh Electricity through green electricity trading. reduction Air Compressor The system employs three high-performance Waste heat exchangers to facilitate oil-to-water heat System 037 038Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 Management Structure Pollutant Treatment safety accountability system operating a cross-functional Safety Committee and deploying dedicated EHS professionals. The Sinofuse Electric strictly adheres to laws and regulations such as the Control Law of the People's Republic of China as well as national and industry standards like the - (GB12348-2008) and ditions for employees. (GB 18599-2020). the Company has implemented rigorous pollutant control measures maintaining procedural documents such as the to guide the management of wastewater emissions noise and solid waste disposal.Environmental Risk Management and Response - Wastewater Management For wastewater discharge management Sinofuse Electric established the at the corporate - Environmental Risk Management & Response of Sinofuse Electric Wastewater Management of Sinofuse Electric Activities Environmental Environmental Covered Aspects Impacts Control Measures The Company implements operational controls in strict accor- Soil dance with KEYPERFORMANCE Wastewater and Discharge Water ensuring compliance with statutory and regulatory require- Pollution - water discharge. InstitutionalDocuments The Company implements operational controls in strict accordance with the Atmo- Waste Gas spheric Emissions Pollution control. Compliance with statutory discharge standards is rigor- 36836.80 The main pollutants are COD BOD5 ammonia nitrogen Total domestic Production particulate emissions. MonitoringMetrics SS total phosphorus total nitrogen etc. wastewater discharge The Company implements operational controls in strict accor- Soil dance with the Solid Waste and and Disposal Water with centralized disposal of both general and hazardous waste Pollution The Company's wastewater primarily consists of con- Handling system and condensate from the steam curing process Methods The Company operates in full compliance with its and wastewater undergoes oil-water separation before Noise Noise Optimization being discharged along with concentrated water con-and implementing noise mitiga- Emissions Pollution Measures densate and domestic sewage into municipal pipelines - discharges meet regulatory requirements. ing local water bodies directly. 039 040Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 Waste Gas Pollution Control 2024 KEY PERFORMANCE For the management of air pollutant emissions Sinofuse Electric strictly adheres to relevant laws and regulations to control pollutants such as exhaust gases generated during the Company's production processes ensuring compliance air pollutant emission standards. Concurrently all manufacturing facilities actively implement customized emission reduction initiatives based on their operational contexts. 49.30 tons 5.93 tons Total generation of Total generation of Waste Gas Pollution Control of Sinofuse Electric non-hazardous waste hazardous waste Institutional 指数代码 Documents Pollutant Emission Control Procedure The Company's was gases primarily consist of tinning fumes from solder-coating processes Resource Utilization and Conservation Main Types of welding particulates volatile organic compounds (VOCs) from printing/curing operations and Waste Gas injection molding emissions.Sinofuse Electric adheres to the and ISO 50001 standards optimizing energy and material management across operations. The Company has established internal regulations like the Resource and Handling The Company's manufacturing emissions are systematically controlled through engineered .Methods solutions: tinning fumes and welding particulates are captured by hooding systems and treat- and ed via triple-stage filtration before elevated stack discharge while injection molding emissions Through source reduction process control and end-of-pipe treatment the Company has achieved clean production and energy Optimization and VOCs undergo dual-stage activated carbon adsorption prior to release through dedicated decarbonization earning dual recognition as both a "Shaanxi Provincial Green Factory" and a "National-Level Green Factory" in Measures stacks. 2023. In 2023 the Company obtained ISO 50001:2018 certification and maintained stable production operations with continu- ous energy management improvements in 2024 achieving 100% compliance in supervisory audits.Waste Management Solid waste generated during operations is disposed of in strict compliance with relevant laws and regulations. During the reporting period all general industrial solid waste and hazardous waste generated by the Company were entrusted to qualified third-party contractors for compliant disposal with comprehensive assessments confirming that input activity and output SINOFUSE ELECTRIC AWARDED GREEN FACTORY CERTIFICATION processes were evaluated to have neither generated nor potentially caused material environmental or social impacts. Domestic waste generated from operations was subjected to classified collection followed by centralized transfer and treatment/disposal protocols with operational reviews confirming no resultant environmental or social impacts.Solid Waste Management of Sinofuse Electric Institutional Documents Pollu指tan数t E代mis码sion Control Procedure Waste Control Procedure Recyclable general waste: non-hazardous waste that can be reprocessed into new materials Main types of through recycling methods.waste gas Non-recyclable general waste: non-hazardous waste that cannot be feasibly recycled due to contamination or material composition.Handling The Company's general waste is disposed of as domestic refuse transported daily to designat- Methods ed waste stations by waste management staff.and Hazardous waste was disposed through engagement with licensed hazardous waste treat- Optimization ment contractors who undergo mandatory "Hazardous Waste Operator Competency Evalua- Measures tion" protocols and adhere to the Company's environmental governance structures. 041 042Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 Water Resource Management KEYPERFORMANCE Green Manufacturing and Circular Economy The Company sources all water from municipal supplies with - domestic sewage discharged into municipal pipelines. The Compa- ny has established the 46046 -tons al upgrading. Concurrently we optimized operational management through digital means strengthened the factory's green - Total water withdrawal - pollution emissions and increased the proportion of green products.grated human-digital management system.Energy Management - - - posite round pipes ceramic round pipe materials etc. are recycled by the enterprise. For materials that the Company cannot agement system (EnMS) by formulating the and supporting procedural documents promulgating the recycle they will be properly handled by professional third parties.- Energy Conservation * The Company implements intelligent lighting * - sumption; -*- ments shall prepare budgets and consumption plans by material type; * The Company continues to strengthen its green electricity adoption and infrastructure deploy- * ment to accelerate low-carbon operations; management protocol; * - * The Company prioritizes the procurement of tion protocols for all electrical equipment elimi- nating idle operation through real-time work- load monitoring; emissions and fossil fuel consumption; * The factory prioritizes technical upgrades for * - electrical equipment implementing phased elim- cal upgrades for production equipment and process optimization to reduce raw material KEY PERFORMANCE consumption thereby embracing green manu- facturing. 1341.85 tons 10124.67MWh * All departments implement mandate automatic Electricity consumption - consumption of the Company ers copiers) to low-power sleep modes during - 81086 189.76 MWh 3263.43 agement plans;MWh * Natural gas consumption Solar energy consumption Purchased green electricity (solar) temperature controls. 043 044Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 ECOLOGICAL ENVIRONMENT green space maintenance efforts. In accordance with the the Regulations on Groundwater - ments.- production bases near such areas. 04504605 Technological Innovation & Premium Services Sinofuse Electric places high importance on product responsibil- ity and technological R&D. We strictly control product quality— multiple inspection stages ensure product reliability meeting customer needs ensuring safety and reducing after-sales risks.The Company demonstrates its ESG commitment by strategical- ly allocating substantial R&D resources to establish specialized - into corporate DNA.As of December 2024 the Company maintained a robust R&D workforce of professionals representing of total employees including 1 PhD and master's degree holders - By the end of 2024 the strategic IP deployment included trade- including China the United States the European Union the United Kingdom Japan and South Korea with formal authoriza- 49 tions secured. 53 As of the end of 2024 the Company held 55 patents with sessions on intellectual property protection were conducted during the year.Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 Technological Innovation Exchange and Collaboration Innovation System - - - - - - NORTHWEST UNIVERSITY-SINOFUSE ELECTRIC JOINT TECHNOLOGY R&D - - ing. As of the end of 2024 the Company had a total of 296 R&D personnel accounting for 21.5% of the total workforce includ- ing 36 master's degree holders. The team structure is stable with experienced professionals and leading R&D capabilities in the industry. 2024 Innovation & Technology Achievements by Sinofuse Electric SINOFUSE ELECTRIC 2024 COLLABORATIVE R&D ACTIVITIES WITH UNIVERSITIES Awards & Honors Issuing Authority China Electrotechnical Society Science and Technology Award China Electrotechnical Society High-Tech Enterprise of Science and Technology of Science and Technology Champion Enterprise Industry and InformationTechnology Ministry of Industry and Information Technology Manufacturing Enterprise Xi'an High-Tech Industries 049 050Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 Technological Innovations including China the United States the European Union the United Kingdom Japan and South Korea with formal authorizations secured.- OVERSEAS TRADEMARK REGISTRATION AND AUTHORIZATION - ufacturing further enhancing industrial manufacturing capabilities in sectors such as rail transit and nuclear power.LOCALIZED INDEPENDENT DEVELOPMENT OF SAFETY-CLASS HIGH-VOLTAGE CURRENT-LIMITING FUSES FOR NUCLEAR POWER APPLICATIONS technical support Xi'an High Voltage Apparatus Research Institute Co. Ltd. and Fujian - - tions in motor and transformer protection systems thereby enhancing supply chain - - try upgrades through import substitution. Intellectual Property Protection concern- ing intellectual property protection and fully implements IP protection measures. With the Global Expansion in Full Swing - ty Management System. This system implements categorized management of patent rights trademark rights copyrights and - operational processes.- ble global expansion.INTELLECTUAL PROPERTY MANAGEMENT SYSTEM CERTIFICATION & KEY PATENTS OF SINOFUSE ELECTRIC OVERSEAS BUSINESS EXPANSION STRATEGY OF SINOFUSE ELECTRIC 051 052Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 Sinofuse Electric's Intellectual Property Protection Initiatives Lifecycle ProductSINOFUSE ELECTRIC ISO 9001:2015 CERTIFICATION Quality Control Organizing During the product R&D phase the Company Exchanging The Company conducts regular specialized training programs to enhance employee implements rigorous quality control by conducting and awareness of intellectual property protection. against quality benchmarks prior to each release Training Sessions Systems - and - Processes which was implemented within 2024. cause analysis (RCA).During the product operation phase the Company Enhancing strictly implements business continuity manage- protection awareness across management tiers and operational teams necessitating ment (BCM) incorporating multiple safeguards in Awareness - tion cycles.Strengthening Rewards in strict compliance with and - and mitigated losses are recognized and rewarded accordingly.- such as power outages communication failures KEY PERFORMANCE 266 38 2 Sinofuse Electric Product Quality Control Process Valid domestic Training sessions on intellectual patents held property protection during the reporting period Early-Stage Quality Control Planning Product Quality Control Planning Early-stage Quality Early-Stage Process Capability Monitoring & Analysis Management and . We maintain a Quality Management Com- Execution of Quality Planning to minimize risks and ensure safe reliable offerings. Quality monitoring and analysis Process Quality Management Quality Management System Finished product inspection shipment inspection Handling of Customer Complaints 053 054Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 Sinofuse Electric Customer Service Channels Alignment of Customer Quality Requirements Customer Quality Transmission and follow-up of customer quality information Management Hotline Support We maintain a dedicated hotline for customer inquiries and feedback. Customers can call us Customer document requirements stakeholder engagement through transparent communication channels. Customers can Social Media - er feedback.- Questionnaire - operational stages ensuring product quality compliance. Concurrently it has established and rigorously enforced systems such tionnaires enabling us to systematically capture customer insights.as the reinforcing process controls Online Platform - - out the year.Customer Satisfaction Tracking Customer Service Enhancement to enhance customer satisfaction. To enhance customer satisfaction and product quality all business units conduct regular cus- experiences to inform R&D and quality management teams in product optimization and upgrades.- Responsible SINOFUSE ELECTRIC PARTICIPATED IN THE MUNICH Marketing TRADE FAIR IN EUROPE AND THE WOLFSBURG AUTOMOTIVE SUPPLY CHAIN EXHIBITION IN GERMANY.satisfaction. Sinofuse Electric takes a approach to responsible - marketing strictly adhering ny Munich Expo and IZB Wolfsburg. At IZB Wolfsburg Sinofuse Electric show- -- tions including the The booth attracted attention from key customers establishing connections with and Product Quality global customers.Customer Service System Law of the People's Republic of China. We are committed to responsible sales and Sinofuse Electric recognizes that listening to customer feedback is critical for continuous m a r k e t i n g p r o m o t i o n s - and other channels to gain real-time insights into customer needs and expectations. This customer sales and product labeling management. In 2024 S inofuse E lec t r i c recorded zero marketing 05505606 Partnerships & Social Responsibility We are committed to fairness transparency and impartiality in ensure supplier compliance and build a responsible sustainable - grates ESG principles to enhance green and compliant supply Philanthropy is a core part of Sinofuse Electric's corporate impact fostering a compassionate and harmonious society and expressing care and warmth through meaningful actions.As of the end of 2024 the total number of Company suppliers reached .In 2024 all our suppliers signed the integrity clause.Responsible Supply Chain 55 Industry Collaboration & Shared Growth 59 60Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 Responsible Supply Chain - - es systematically integrating ESG risk considerations.- Risk Type Monitoring Methods Countermeasures Supply Chain Governance KEY PERFORMANCE Risks Related to 1. - 1.Supplier Quality tions 2. Strict control and inspection of throughout their lifecycle emphasizing compliance and impartiality. Regu- 117 2.- mechanism Suppliers - 40 Risks Related to 1. Monitor the signing rate of supplier green plier management system. To support our supply chain security strategy 1.Suppliers within and Climate 2. Track carbon emissions and material 2. Reduce toxic material use and waste generation carry out related functions. Change Risks Related to 1. 1. Create a safe and healthy working Occupational system Health And 2. 2. Conduct occupational health and Safety rate safety training and awareness campaigns 1. 1. Foster an transparent and upright Risks Related to culture training and learning 2. Regularly notify the latest training 2. Strengthen communication and Business Ethics requirements 1. Conduct regular supplier questionnaires 1. Risks Related to mineral management policies 2. Require suppliers to regularly report 2. Minerals supply chain 059 060Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 - - ness ethics as part of our supplier onboarding process. These standards are embedded throughout all key stages of supplier Protection Waste Management & Circular Economy Energy Consumption & Climate Change Hazardous Chemicals Management Supplier Selection when existing resources are inadequate. Candidates undergo preliminary screening followed Labor Rights Supply Chain Management Supplier Product Notes to- Supply Chain Child & Forced Labor Prohibi-Quality - ESG tion Management Management Occupational Health & Safety Supplier CSR Stewardship Respon- Freedom of Association & Supplier Code of Ethics sibility Equal Opportunity Employment Supplier - Performance Reassessment audit reports performance metrics and compliance assessments. Business Ethics Anti-corruption & Bribery Dynamic Tiering Data Protection Commitments and Based on supplier performance assessment outcomes the Company conducts periodic tiered Fair Competition Practices Management of - Suppliers tracking and optimized logistics routing all designed to reduce waste cut costs and increase supply chain transparency and KEY PERFORMANCE Supplier Integrity and Compliance Supply Chain ESG Responsibilities The Company is committed to upholding integrity and compliance by signing and We adhere to international labor standards including the . These reinforce our dedication to business ethics and anti-corruption 100% the and SA8000 practices ensuring honesty and transparency in all transactions. We enforce - strict internal procurement controls to reduce corruption risks ensuring Signing rate of supplier - fairness and compliance throughout the procurement process. Together integrity clause priority to suppliers with established EHS management systems. healthy ethical partnerships with our suppliers. 061 062Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 KEY Social Welfare and Rural Revitalization Sinofuse Electric does not currently use any 3TG minerals in its produc- PERFORMANCE tion processes. In line with our commitment to responsible sourcing areas. Suppliers are required to ensure that their products do not con- - ny policies.We are fully committed to complying with the 100% Public Welfare and Volunteer Services regarding the sourcing of 3TG minerals. - totaling 16 hours.XI'AN SINOFUSE ELECTRIC WINTER CHARITY EVENT On December 7 2024 led by the Company's Party branch and labor union in partnership with the Green Leaf Charity Industry Collaboration & Shared Growth Town Lantian County bringing warmth and comfort during the winter season.Supplier Training KEY PERFORMANCE 8 well-supported throughout the cold weather.sessions Internal capability enhancement training for the supply chain organized by the Company Equal Treatment of SMEs In 2024 the Company strictly adhered to contractual terms with SMEs (Small and Medium-sized Enterprises) ensuring timely - ners. 063 064Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 - Rural Revitalization - CARING FOR RURAL AREAS SUPPORTING EDUCATION for the future of the nation by reaching out to primary school students in remote mountainous areas. With the sup- port and coordination of the Xi'an Lüye Public Welfare Sunshine Education Assistance Department on May 30th the - tionary base areas across western China. Philanthropy is a core part of Sinofuse Electric's corporate culture. While fostering a compassionate and harmonious society and expressing care and warmth through meaningful actions.public good! 06506607 Development - - - ple promotion pathways we continually support employee protect their physical and mental well-being and ensures work- growth.As of the end of 2024 the Company strictly prohibits any form of employment discrimination forced labor or child labor with a employment contract signing rate.employee participating in training programs. The total training time reached hours per employee.in 2024. 65 Health and Safety 74 During the year the Company recorded zero major safety incidents and no work-related fatalities.By the end of 2024 all of the Company's production facilities had obtained occupational health and safety management systemXi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 Employee Development Employee Development Risk Management - Employee Development Management structure - Employee Development Management structure Equal and Diverse Hiring Strategy - nities. The Company has put in place a R that explicitly embraces and respects employees of all genders ages races religions sexual orientations physical abilities and backgrounds throughout recruitment training promo- Top The Company's Board of Directors and General Manager are responsible for setting the Decision-making - - ment in resources to support this commitment.that strictly prohibits all forms of discrimination including but not limited to discrimination based on gender race age or religion. The Company has set up dedicated reporting channels to based on senior leadership's direction clearly outlining the process and timeline for are met with strict disciplinary measures ranging from warnings and demotions to termination while ensuring appropriate sup- each role.Maintains and expands recruitment channels by partnering with major job portals and culture.- ties.Compiles recruitment data and regularly reports progress and results to senior manage- Commitment and Measures to Prohibit Child HR Department ment. Labor and Forced Labor The Company strictly adheres to all domestic and international laws prohibiting child labor and forced labor. We uphold the principles of fairness justice and respect for human dignity Commitment Statement our Company.new hires meet the legal working age. Recruiters are required to thoroughly check each appli- Departmental Participate in resume screening and use professional expertise to identify candidates Recruitment Responsibilities who meet technical criteria. Process Management professional skills and teamwork.employment and pursue legal accountability where applicable. 069 070Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 Gender structure Employee age Employee education of employees (Persons) structure (Persons) structure (Persons) Maintain thorough management of all employee personal records ensuring key information— Employee 32 Records - 72 Management cies or inconsistencies to minimize the risk of child labor issues arising from inadequate record-keeping. 621 310416 758890 1037 Number of male Number of female Number of employees Number of employees Number of employees Number of employees employees aged 30-50 with associate degree Employees Conduct regular inspections of all company workplaces to ensure compliance with health and or below with Bachelor's Work safety standards and to eliminate any conditions that might suggest forced labor. This includes Number of employees Degrees monitoring reasonable workloads ensuring working hours comply with legal requirements and under 30 years old Number of employees Number of with master's degree Employees Monitoring maintaining safe and comfortable facilities. Establish dedicated reporting channels that with DoctoralDegrees Talent Retention: - - Supplier and Include clear prohibitions against child labor and forced labor in contracts with suppliers and Employees Partner Management -tract termination if necessary—to ensure full compliance. 1379 100% Employees and enjoy housing fund contributions.Employee Training and Education -practices across the organization.- - 071 072Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 Compensation & Incentive Measures EMPLOYEE CARE ACTIVITIES - ute placing strong emphasis on recognizing high performers and those who make exceptional Short-Term growth.- Medium- to Long-Term Statutory - 2024 Annual Meeting & Awards Ceremony housing subsidies as well as in-kind perks such as labor protection gear and special holiday demonstrating our commitment to employee care.canteen that support employee well-being and foster a strong sense of community.Targeted Additional protections like work injury insurance for rehired retirees and interns further 073 074Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 Assessment and Promotion and . This structure offers employees a wide KEY PERFORMANCE - 100% 24806 hours 18 hours - tion Assessment Committee. Promotion criteria include factors such as educational background area of study years of experi- Annual employee Total hours of employee expectations emphasize strong job performance. Professional skills should demonstrate cross-disciplinary expertise. Additional- Occupational Health & Safety Manag- Five Major Health and Safety Management Structure ement Categories Skills The Company has established systems and control procedures including the and - - response plans for production incidents fostering a strong safety culture and ensuring that employees work and grow in a safe Function Techn-ology Marketing Board Strategy Formulation of Directors Training and Development General Manager - and Jointly Responsible for ExecutionManagement Team through standardized onboarding guidance and a mentorship system; in the growth phase we conduct specialized training and Assume direct responsibility for OHS affairs including formulation and enforcement of safety protocols organi- zation of safety training programs and implementation of hazard inspections and risk mitigation measures 075 076Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 SINOFUSE ELECTRIC OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT SYSTEM CERTIFICATION inspection to systematically identify Field Inspection latent occupational risk factors.Field Inspection and Monitoring Contract a specialized testing institu- tions to conduct periodic assessments Field Monitoring 5.03 of occupational health hazard factors.RMB million Conduct categorization and exposure hazard factors.Risk Assessment health hazard factors in accordance Risk Rating Assessment with applicable national regulatory standards.Safety and Health Risk Management data and assessment results Data Analysis Result Analysis and Reporting - ment report on occupational disease Report Preparation hazards Process Content Methodology -ness for occupational health hazard factors Establish Occupational Health Manage- Continuous ment Organization with Part-Time Establish a Management Team Managers Continuously monitor changes in occu- pational health hazard factors and Dynamic Management adjust management measures accord- ingly Preliminary Plan Formulation Preparation Conduct Occupational Health Training For Managers and Employees Training and Promotion 077 078Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 2024 Sinofuse Electric Safety Training Program (Partial) Risk Type Sources / Examples Training Topic Training Participants Frequency Training Time Coverage Safety Safety ManagementNoise From Production Equipment Management Personnel and SafetyMachining etc.Training Key Responsible Annual March Management Persons Personnel Vibration Industrial Machinery Operation Emergency Physical Risks Drills Quarterly All Departments High temperature Curing Chamber Education (for New New Employees Per batch Ongoing Newly Hired Employees Employees) Inadequate lighting Some Warehouses or Remote Work Areas Occupational Health Knowledge Frontline Employees Annual April Positions Chemical Risks Ethanol ink etc. Training Specialized Safety Annual June Key Positions Training Occupational Health & Safety Strategy Safety WarningEducation All Employees Continuous promotion Monthly Rotation All Employees Safety Culture Development To strengthen and standardize workplace safety education while boosting employees' safety skills and awareness the Compa- ny has established formal policies including the . Occupational Disease Prevention KEY PERFORMANCE 100% 100% is excellent Safety Emergency Occupational Safe Major The Company has also completed Organized specialized training duringoperating occupational hazard assessments in the Occupational Health Awareness WeekManagement Drills Health Procedures risk Control workplace ensuring full compliance withsafety standards. Occupational health 079 080Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 2024 Sinofuse Electric Emergency Drill Occupational Health Protection Training Project Method Time Department Water and Power Outage Tabletop July 12 2024 Fire July 30 2024 Vehicle Failure or Engineering & Logistics Abnormalities Tabletop July 15 2024 Manufacturing Material Shortage or Supply Interruption due to Quality Issues Tabletop July 17 2024 Procurement Department Virus Infection July 18 2024 IT Department the Company for health consultations System failure July 18 2024 IT Department Cyberattack July 18 2024 IT Department Cybersecurity Data Loss July 18 2024 IT Department Maintenance July 18 2024 IT Department Penetration Testing & July 18 2024 Vulnerability Scanning IT Department Natural Disasters July 18 2024 IT Department Emergency Management Mass Returns due to Quality Issues Tabletop July 15 2024 Quality Department Human Resources Labor Shortage Tabletop July 15 2024 Department 081 082Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 Tabletop July 12 2024 General Manager Infrastructure Damage Such as Failures In Power Distribution Equip- Tabletop July 16 2024 Engineering &ment (Transformers) Air Compressors etc.Snowstorms Torrential Rains Tabletop Natural General Manager disasters Earthquake Tabletop July 12 2024 High Temperature Tabletop Tabletop July 19 2024 Engineering & Automation Equipment Failure Tabletop July 19 2024 Engineering & SUMMARY OF SINOFUSE ELECTRIC FIRE EMERGENCY DRILL drill on the afternoon of July 31 2024. The drill was jointly organized by the Company and the industrial park's proper- - ed all Company employees industrial park staff and supplier personnel.Plan to ensure safety and practicality.detailed on-site arrangements to ensure each phase of the drill ran smoothly.- 083 084Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 Report Appendices Number of male employees Persons 758 Number of female employees Persons 621 Number of employees under 30 years old Persons 310 Quantitative Performance Metrics Table Number of employees aged 30-50 Persons 1037 Persons 32 Environmental Performance Number of employees with associate degree or below Persons 890 Number of Employees with Bachelor's Degrees Persons 416 Indicator Unit 2024 Number of employees with master's degree Persons 72 10000 yuan 503.00 Number of Employees with Doctoral Degrees Persons 1 Ton Standard Coal 1341.85 Labor contract signing rate % 100 Direct energy consumption Ton Standard Coal 97.53 Social insurance and housing fund % 100 Indirect energy consumption Ton Standard Coal 1244.32 Persons 26 Natural gas Cubic Meter 81086.00 % 100 Electricity MWh 10124.67 Total employee training sessions Number of Sessions 162 Solar energy MWh 189.76 Hours 24806 Total greenhouse gas emissions Tonnes CO2 4404.29 Hours 18 Scope 1 direct greenhouse gas emissions Tonnes CO2 195.18 %100 Scope 2 energy indirect greenhouse gas emissions Tonnes CO2 4209.13 %100 Total Water Withdrawal Tons 46046.00 Number of major safety incidents Cases 0 Total water consumption Tons 46046.00 Hours 8 Total domestic wastewater discharge Cubic Meter 36836.80 %100 Total waste generated Tons 55.23 Occupational disease incidence rate % 0 Total generation of non-hazardous waste Tons 49.30 %100 Total generation of hazardous waste Tons 5.93 Number of work-related fatalities Persons 0 Social Performance Product recall rate % 0 Complaint handling rate % 100 Indicator Unit 2024 Number of R&D personnel Persons 296 Total number of employees Persons 1379 Ratio of R&D personnel to total employees % 22 085 086Xi'an Sinofuse Electric Co. Ltd. Sustainability Report 2024 Items 38 Report Index Table Items 20 the reporting period Items 37 during the reporting period Items 20 Dimension Issues Corresponding Chapter Total number of suppliers Suppliers 117 1. Addressing Climate Change Climate Action & Green Synergy Suppliers 40 2. Pollutant Emissions %34 Proportion of suppliers signing integrity clauses % 100 3. Waste Disposal internal supply chain capabilities Number of sessions 8 Number of suppliers undergoing responsible mineral supply chain due diligence Suppliers 6 Hours 16 Resource Utilization and 6. Energy Utilization Governance Performance Resource Utilization and7. Water Resource Utilization Resource Utilization and 8. Circular Economy Indicator Unit 2024 Social Welfare and Rural Number of board members Persons 9 Social Welfare and Rural Number of independent directors Persons 3 Proportion of independent directors % 33.3 Ethics in Science and Technology and Proportion of independent directors in the Audit Committee % 66.7 Algorithm Application Strategy Proportion of independent directors on the % 66.7 13. Supply Chain Security Responsible Supply ChainNominating Committee Society-related Proportion of independent directors on the Remuneration and Appraisal Committee % 66.7 14. Equal treatment of SMEs Equal treatment of SMEs Proportion of female directors % 22.2 Product Design Number of Board of Directors meetings Number of Sessions 5 Number of Sessions 21 17. Employees Director attendance rate % 100 Due Diligence & Stakeholder 18. Due Diligence Engagement Number of Sessions 4 19. Stakeholder Communication Due Diligence & StakeholderEngagement Number of Sessions 16 sustainable 20. Anti-Commercial Bribery and Anti-Corruption Business Ethics & Anti-Corruption %100 on exchange platforms Number of Sessions 83 21. Anti-Unfair Competition Business Ethics & Anti-Corruption Number of public announcements issued Pieces 82 087088