Introduction
ComplianceGovernance,
UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
Introduction
ComplianceGovernance,
UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
Introduction
ComplianceGovernance,UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
OverviewIntroduction
This is the second Environmental, Social, and Governance Report published by GreeElectric Appliances Inc. of Zhuhai. The Report mainly discloses the Company’s efforts toactively respond to the opportunities and challenges of sustainable development, and createcomprehensive economic, social and environmental value for its stakeholders.
Unless otherwise indicated, the scope of organization of this Report covers Gree ElectricAppliances, Inc. of Zhuhai and its branches.
The Report covers the period from January 1, 2024 to December 31, 2024. To enhance thecompleteness of the Report, some content may be beyond the above time period.
For ease of expression, “Gree Electric Appliances, Inc. of Zhuhai” is referred to as “GreeElectric”, “GREE”, “the Company” or “we” in this Report.
This Report has been prepared with reference to the “GRI Standards” issued by theGlobal Sustainability Standards Board (GSSB), the Sustainable Development Goals(SDGs) of the United Nations, the Guidelines No.3 of the Shenzhen Stock Exchangefor the Self-Regulation of Listed Companies - Preparation of Sustainability Reports, andaddressed the concerns of MSCI.
The qualitative and quantitative information used in this Report comes from publiclyavailable information, internal documents, and relevant statistics of Gree Electric,and the disclosure scope is consistent with the scope of the consolidated financialstatements. Other contents that di?er from this scope will be explained in the Report.Unless otherwise stated, all amounts mentioned hereunder shall be denominated inCNY.
This electronic version of this Report can be accessed on the Company website (http://www.gree.com.cn), Shenzhen Stock Exchange website (http://www.szse.cn) andCNINFO (www.cninfo.com.cn).
Scope
Time Period
Executive Summary
References
Data
Acquisition
Introduction
ComplianceGovernance,UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
Strong governance as the foundation for growth. In 2024, we
continuously enhanced our corporate governance, and held twosessions of General Meetings of Shareholders, with all proposalsbeing approved; eight meetings of the Board of Directors and sixmeetings of the Board of Supervisors, with 100% attendance bydirectors and supervisors. For consecutive years, the Companyhas been awarded an A-level evaluation for information disclosureby the Shenzhen Stock Exchange, reecting the compliance ande?ciency of our operations. Additionally, the Company places greatimportance on investor communication and shareholder returns.Through performance briefings, the Shenzhen Stock Exchange’s“Easy Interaction” platform, investor hotlines, and other channels,we have conducted effective communication with our investors.During the reporting period, the Company distributed a total cashdividend of CNY16.755 billion, demonstrating our commitment torewarding shareholders and promoting the healthy development ofthe capital markets.Technological innovation driving high-quality development.With the mission of “Made in China, Loved by the World”, GreeElectric insists on independent R&D, driving breakthroughs in coretechnologies and product innovations to create a better life forpeople. In 2024, the Company achieved six R&D outcomes that
reached “internationally leading” levels. Among these, the “120℃+Industrial Large-capacity Efficient High-temperature CentrifugalHeat Pump” and “COP7.0+ Two-stage Permanent-magnetInverter Screw Chiller Technology and Application” demonstratedsignificant energy-saving effects, contributing to low-carbonenergy development and industrial carbon neutrality, and to thenational energy conservation and emissions reduction strategy.The “Research and Application of Key Technologies for Low-carbon Dynamic Operation of Inverter Air Conditioners” improvedthe dynamic energy efficiency of air conditioners by more than
15.8%, with annual electricity consumption reduced by more than
13.6%. In addition, the GMV9 Zhiyue VRF Unit pioneered indoor
unit dynamic monitoring technology. Through real-time powermeasurement and intelligent allocation, the unit has achieved acomprehensive energy-saving rate exceeding 25% for commercialspaces, redefining the energy efficiency standards of central ACsystems. The reversible air supply central AC system, which doesnot blow air directly onto people, provides a signicant advantageover traditional side air supply units. It can achieve non-directcold air flow during cooling and a 53% faster temperature riseduring heating, with more even vertical temperature distribution,resulting in a 42.7% energy-saving e?ect. Gree Electric continuesto contribute to sustainable social development through constanttechnological innovation.Talent pool breeding core value. The Company has always placedtalent development as a top priority. Through a comprehensivetalent introduction, training, and incentive mechanism, it hasattracted and retained massive outstanding professionals. In2024, the Company recruited over 6,000 graduates, reflecting itsresponsiveness to societal needs and, more importantly, its strongdesire to nurture young talent. In 2024, the total training hoursfor all employees reached 1.18 million hours, with the averagetraining time per employee exceeding 50 hours. This commitmentto continuous learning enhances the professional skills andoverall competencies of employees. Furthermore, the Companyimplemented the third phase of its Employee Stock Ownership Plan(ESOP) in 2024, bringing the total number of employees benetingfrom this incentive to 12,824. This plan strengthens the mechanism
In this era of transformation and opportunity, Gree Electricaims to “Build a World Class Company and GREE into aCentury-old Brand” as its vision, using innovation as thepen and quality as the ink to write a new chapter for Chinesemanufacturing. Over the past year, through relentlessinnovation efforts, the Company achieved a total revenue ofCNY190.038 billion and a net prot attributable to the parentcompany of CNY32.185 billion, with earnings per share ofCNY5.83. The Company has accumulated 46 “world-leading”technologies and filed 129,524 patents, making it the onlyhome appliance company to be ranked in the top ten forthe number of Chinese invention patents granted for nineconsecutive years. These achievements are the result of ourunwavering commitment to high-quality development and thegradual culmination of technical innovations.
of shared interests and joint risks between shareholders, themanagement team, middle-level cadres, and key employees. TheCompany also enhances employee satisfaction and happinessby offering support measures, such as talent subsidies, housingassistance, and policy-based public school placements, ensuringthat employees can share in the Company’s developmentdividends.Green transformation demonstrating responsibility of theera. The Company’s globally pioneering “zero-carbon source” PVenergy-storage AC system provides a Chinese solution for globalcarbon neutrality. This innovative technology has been deployedin 35 countries and regions worldwide, achieving a reduction of115,000 tons of carbon emissions annually. In 2024, the systemwon the “Terawatt Diamond Award” and the “Excellence Awardfor Energy Storage Applications” at the SNEC 17th InternationalPhotovoltaic Power Generation and Smart Energy (Shanghai)Conference. The Company has established six major recyclingresource bases, creating a circular development model of“green design - green manufacturing - green recycling”. Thismodel effectively realizes the resource utilization of electronicwaste and sets a benchmark for sustainable development in theindustry. In addition, the Company is committed to building ane?cient, energy-saving, and environmentally friendly supply chainsystem, actively promoting green manufacturing and sustainabledevelopment. As of the end of the reporting period, five of theCompany’s subsidiaries were included in the Ministry of Industryand Information Technology’s List of Green Manufacturing andGreen Supply Chain Management Enterprises, including GREE(Shijiazhuang) Small Home Appliances Co., Ltd, GREE ChangshaHVAC Equipment Co., Ltd, and GREE (Zhongshan) Small HomeAppliances Co., Ltd. This effort contributes positively to thedevelopment of a green supply chain system.Looking ahead, Gree Electric will remain committed to its missionof “Made in China, Loved by the World”, adhering to innovation-driven and green development principles, and continue to enhanceits core competitiveness and sustainability capabilities.
A Message from Management
Introduction
ComplianceGovernance,UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Value
for Society
About Gree Electric
In terms of industrial layout, Gree Electric promotes thecoordination of multiple industries. It has established 77production bases across provinces and cities such as Guangdong,Chongqing, and Anhui, as well as in countries including Brazilcovering air conditioning, home appliance, and industrial products.In addition, the Company has also set up six recycling facilities,covering the entire industrial chain from upstream productionto downstream recycling, achieving a green, recycling, andsustainable development model.About innovation, Gree Electric focuses on strengtheningits R&D capabilities. It has set up 16 R&D centers, 152 researchinstitutions, 1,411 laboratories, and an academician workstation (formotors and control). It is equipped with one National Engineering
Technology Research Center, one National Industrial DesignCenter, one National Enterprise Technology Center, and oneRobotics Engineering Technology R&D Center. Additionally, theCompany has been designated as a research and evaluationbase for refrigeration equipment by the National Notification andEnquiry Center, as well as a national standard verification pointfor energy-efficient refrigeration equipment. As of the end of thereporting period, Gree Electric has received 2 National Science andTechnology Progress Awards, and a total of 122 major awards atnational, provincial and industrial levels. It holds 46 “world-leading”technologies, and has applied for 129,524 patents, including70,844 invention patient applications.with 25,883 invention patentsgranted. It is the only home appliance company to have ranked inthe top 10 in China for invention patent grants for nine consecutiveyears. The Company has received 81 China Patent Awards,including 3 Gold Awards for Invention, 4 China Appearance DesignGold Awards, 15 Geneva International Exhibition of Inventions GoldAwards, and 12 Nuremberg International Exhibition of InventionsGold Awards. In addition, the Company is among the batch ofnational demonstration units for intellectual property in enterprisesand institutions, and a “National Patent Operation Pilot Enterprise”.It has also won the China Trademark Gold Award. The Company’spatent quantity and quality have steadily increased, fullyshowcasing Gree Electric’s inventive capabilities and internationallyleading R&D strength.
Regarding quality management, Gree Electric has set anindustry benchmark for quality. It adheres to the principle ofhonest operation, customer-oriented approach, and strict controlover quality and system construction, maintaining a leading positionin the industry in terms of quality. This commitment to quality hasearned the Company a good reputation in the market, winningthe third “China Quality Award” in 2018 and the “National QualityAward” and “National Quality Benchmark” honors, demonstrating
Gree Electric Appliances, Inc. of Zhuhai was establishedin 1991 and listed on the Shenzhen Stock Exchange inNovember 1996. The Company has now evolved into adiversified and technologically oriented global industrialgroup, with three major consumer brands: GREE, TOSOT,and Kinghome, as well as industrial brands such as Landa,Kaibang, and Xinyuan. Its industries span householdconsumer goods and industrial equipment. For theconsumer sector, this includes products such as residentialair conditioners, heating, ventilation and air conditioning(HVAC) systems, refrigerators, washing machines, waterheaters, kitchen appliances, environmental appliances,and smart buildings and smart-home. For the industrialsector, the Company’s industrial offerings cover high-end equipment, precision molds, refrigeration and coldstorage equipment, motors, compressors, capacitors,semiconductor devices, precision casting, basic materials,industrial energy storage, and renewable resources, withproducts served for a total of over 600 million customers,and sold in over 190 countries and regions.
its strong capabilities and inuence in product quality management.Additionally, Gree Electric actively participates in the formulation ofnational standards, to promote the improvement of industry qualitylevels.With respect to transformation and upgrading, Gree Electricvigorously promoting smart manufacturing. By drivingdigitalization, the Company aims to improve efficiency, createvalue, and enhance business objectives. It has developed a leansmart manufacturing system centered around dual e?ectiveness,facilitating the system optimization and overall upgrade of thefull product lifecycle, production processes, and all supply chainlinks, thus advancing the Company’s transformation into smartmanufacturing. Through the integration of information systemsplatforms, the Company enhances exible automation capabilities,optimizes production operations, and improves managemente?ciency. During the reporting period, the Company’s project on“Building and Implementing a Lean Smart Manufacturing Systemfor Large Home Appliance Enterprise Groups” was awarded rstplace in the 31st National Enterprise Management ModernizationInnovation Achievement Award. Additionally, its Jinwan Factory wasselected as one of the rst “Outstanding Smart Factories” by theMinistry of Industry and Information Technology of China.GREE will continue to uphold the corporate vision of “Build aWorld Class Company and GREE into a Century-old Brand”, andalways adhere to the guidance of Xi Jinping Thought on Socialismwith Chinese Characteristics for a New Era, remains true to itsoriginal aspiration, keeps its mission firmly in mind, sticks to thereal economy, and follows the path of self-reliance and innovation.Through innovation, responsibility, and green development, it aimsto contribute to the progress of human society, becoming a brandtrusted by global consumers and working together to create abrighter future.
Introduction
ComplianceGovernance,UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
1991: Brand 1.0
2010: Brand 3.0
2015: Brand 5.0
Brand slogan: “GREE Creates Much Sales Chance”Brand positioning: Turbo CoolingBrand development strategy: Initially establish ahigh-quality image of GREE air conditioners, andcreate core advantages of product
Brand slogan: “GREE, the Master of Core Technologies”Brand positioning: Leading in Science and TechnologyBrand development strategy: Transfer from “Made inChina” to “Created in China”
Brand slogan: “Made in China, Loved by the World”Brand positioning: Serve the WorldBrand development strategy: Reshape the image of“Made in China”, to introduce Chinese independent brandsto the worldCategory slogan: GREE, Making Better ElectricAppliances (2022)Category positioning: Changing from single air
conditioner to fullspace health appliances in the consumercategoryCategory development strategy: Demonstrate GREE’stechnological innovation strength and diversied industriallayout in the eld of household appliances
Brand slogan: “GREE, Making Better Air Conditioners”Brand positioning: Quality Takes PriorityBrand development strategy: “Excellent strategy”of producing excellent products and creating famousbrands
Brand slogan: “For the Clearer Sky and Greener Earth”Brand positioning: Undertake ResponsibilityBrand development strategy: Shoulder the
responsibility of environmental protection and greendevelopment
2013: Brand 4.0
1997: Brand 2.0
Corporate Culture
Brand Development Journey
Build a World ClassCompany and GREE into aCentury-old Brand.
Vision
Mission
BusinessPhilosophy
ServicePhilosophyCarry forward the industrial spirit,master core technology;Pursue perfect quality, providerst-class service;Strive for “Made in China, Lovedby the World”.
Less empty talk, more practicalwork, quality rst, customersatisfaction, loyalty and friendly,diligent enterprising, honestmanagement, multi-win-win,dedication, pioneering andinnovative, law-abiding, honest.
An enterprise without innovation is theone that without soul;An enterprise without core technologyis the one that without spine;An enterprise without high-endproducts is one without a future.
Your Satisfaction is OurTop Priority.
CoreValues
Introduction
ComplianceGovernance,UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
Total operating revenue
Total cash dividends (taxinclusive)
Percentage of R&Dexpenses in revenue
Total patents led
Total China Parent Awards received:
Conducted conict minerals investigations with
suppliers; traced
rening plants and smeltingplants, with over
40%
obtaining RMAP certicationincluding invention patents
representing a year-on-yeargrowth of
Cash dividend of
Attendance rate of boardmembers
Percentage of independentdirectors
Customer feedback responserate reached
Customer satisfaction reached Over
Percentage of femaledirectors
Coverage of business ethics training foremployees
Number of signed Integrity CommitmentLetter
Successfully completed
major safety and qualityresponsibility accidentsrelated to product services
Net prot attributable to theparent companyCNY
190.038
billion
3.77%
100%CNY
32.185
billion
1.9%
22.22%
100%
CNY
16.755
billion
129,524
44.44%
10,332copiesCNY
per 10 shares
70,844
quality improvementprojects
Economic performance
Innovation R&DSupply chain managementProduct quality
Corporate governanceCorporate Behavior
99.99%99.88%
15,000
authorized after-salesservice outlets
Performance Highlights in 2024
Customer service
Introduction
ComplianceGovernance,
UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
No
2024 Forbes World's Best Employers
all employees
No72,808
100%
CNY
134.794
million
1.18
million hoursover
hours
CNY
45.808
million
121.3
MW
100%
96.85
million kWh
5.6%
of the Group’stotal electricity consumption
56.9
MW
58.344
millionkWh of electricity
Total number of green factory certications
,including
national-level green factory certications,
provincial-level green factory certications, and
municipal-level green factory certications
8.13
million units/sets157,600tons
64.77
million units/sets
Employee management
Talent trainingE-waste management
Environmental managementResource utilization
Total number of employees
strikes or lock-outs occurredListed in
Total employee traininghours nearly
Average training hours peremployee
Employee health checkup coverageNon-compensation benetscoverage for
major layo?s occurred
Collective bargainingagreement coverage
Total environmental protection investmentTotal number of energy-
saving technologicalrenovation projects
Total number of products awarded the national “GreenDesign Product” title
saving
Total photovoltaic installedcapacity
Photovoltaic powergeneration
newly installed photovoltaiccapacity in 2024
accounting for
Including energy-saving technologyrenovation investment
Number of emergency response drills forenvironmental incidents
Number of discarded electrical andelectronic products recycled and processed
converted into recycled materials(copper, iron, aluminum, plastics)
Total number of electrical and electronicproducts processed
Introduction
ComplianceGovernance,UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
Honors and Awards
2024 Geneva International Exhibitionof Inventions Gold Award
2024 First Prize of TechnologyProgress Award of China National
Light Industry Council
2024 Model Enterprise for Green
Technology Innovation
SNEC 17th International Photovoltaic PowerGeneration and Smart Energy Conference &
Exhibition “Terawatt Diamond Award”
SNEC 17th International Photovoltaic Power
Generation and Smart Energy Conference& Exhibition “Energy Storage Application
Excellence Award”
AWE 2024 Gold Award
Gold Award at 2024 Canton FairDesign Award (CF Award)
2024 Nuremberg International Exhibitionof Inventions Gold Award, in Germany
First Prize of 2023 Guangdong Scienceand Technology Progress AwardWorld Intellectual Property Organization,Swiss federal government
China National Light Industry Council
Patent Protection Association of ChinaExpert Committee of SNEC Photovoltaic
Power Conference & Exhibition
SNEC 17th (2024) InternationalPhotovoltaic Power Generation andSmart Energy (Shanghai) Conference &
Exhibition
Organizing Committee of Appliance &Electronics World Expo
CF Award O?ce
Organizing Committee of Nuremberg InternationalExhibition of Inventions, in Germany
Guangdong Provincial People’s Government
Innovation Awards
Introduction
ComplianceGovernance,
UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
Brand Awards
2024 Forbes Global 2000——the 334
th
2024 Household Appliance IndustryIndustry User Satisfaction Index: “GREEHousehold Air Conditioners Ranked First”
Guangdong Province StandardizationOutstanding Contribution Award,
Standardization Organization Award
2024 Top 100 Chinese Overseas
Brands Index2024 People’s Craftsman Brand
2024 World Internet of Things 500
List (Gold)——the 46
th
2024 Top 500 Private Enterprises
in China——the 31
st
Market Quality Credit Rating Certicate
AAA Level
User Satisfaction BenchmarkFive-Star RatingForbes
China Association for Quality User Committee
Guangdong Provincial Department of Human
Resources and Social Security, Guangdong
Provincial Market Supervision Administration
People's Daily Overseas Network, GYBrandGlobal Brand Research Institute
People’s Daily Online (people.cn)
Organizing Committee of the World Internet
of Things Convention
All-China Federation of Industry and
Commerce
China Association for QualityChina Association for Quality
Introduction
ComplianceGovernance,
UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
Focus on Sustainable Development
Gree Electric actively carries out communication with various stakeholders, collects the requirements and expectations of stakeholders through various channels, and realizes common development with them.
Majorstakeholder
Key issue
Communicationand channels
Government department
and regulatory authority
Shareholder and investorCustomerPartnerEmployeeSociety and the publicLaw-biding and compliantoperationTransparent disclosureImproving corporategovernanceAdherence to businessethicsAddressing climate change
Law-biding and compliantoperationIntellectual propertyprotectionTransparent disclosureRisk managementImproving corporategovernanceAdherence to businessethicsTechnological innovation
Customer managementProduct quality and safetyAccessibility of products andservices
Adherence to businessethicsIndustry exchange anddevelopmentSupply chain management
Occupational health andsafetyOccupational training anddevelopmentProtection of employees’rights and interestsEmployee communicationand democraticmanagementEmployee careDiversity and equalopportunity
Responding to nationalstrategiesPracticing socialresponsibility
Inspection by leaders andcompetent authoritiesCompliance patrols andinspectionsRegular meetings with localgovernment representativesForums, conferences andseminarsDaily policy implementationCarrying out carbonfootprint verication, energyconservation and emissionreductionDeveloping clean energy
General meeting ofshareholdersInvestor exchange meetingsOnline performance briengShenzhen stock exchangeeasy interaction Q&AInvestor hotlineCompany researchTelephone consultationE-mailRegular reports andinformation disclosure ono?cial website
Customer satisfactionsurveyE-mail and daily phonecommunicationCustomer e-mailResponding to customercomplaintsCustomer visits
Selection assessmentProcurement processPerformance evaluationRegular communicationwith business partners (e.g.e-mails, meetings)
Training and inductiontrainingE-mail and suggestion boxRegular meetingEmployee performanceevaluationEmployee activities
E-mailTelCompany announcementSocial network platformCompany websiteSocial mediaCharitable donations andvoluntary servicesCommunity activities
Stakeholder Identication and Communication
Introduction
ComplianceGovernance,
UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
During this reporting period, we orderly carried out the research on material issues based onthe process of “stakeholder communication - issue identification - issue evaluation - materialityconfirmation” to effectively response to the expectations and demands of various stakeholders,continuously improving the level of ESG management.
Stakeholdercommunication
Issue
identication
Issue
evaluation
Materiality
conrmation
Law-abiding andcompliant operationImproving corporategovernanceTransparent disclosureRisk managementProtecting investor’srights and interestsBusiness ethics andanti-corruption
Occupational health andsafetyCareer training anddevelopmentProtection of employees’rights and interestsEmployeecommunication anddemocratic managementEmployee careOptimization of customerserviceSafety and quality ofproducts and services
Intellectual propertyprotectionData security andcustomer privacyprotectionInnovation-drivendevelopmentSupply chainmanagementRural revitalization andcontribution to societyConict mineralsmanagement
Energy usageWater resourceutilizationWaste disposalAddressingclimate changeEnvironmentalcompliancemanagementCircular economyPollutantemissions
We maintained regular communication with investors, customers,government agencies, and employees, among other stakeholders.We recorded the issues and specic content of di?erentstakeholders’ concerns and responded to their demands.Based on the Guidelines No.3 of the Shenzhen Stock Exchangefor the Self-Regulation of Listed Companies - Preparation ofSustainability Reports, the United Nations’ 17 SustainableDevelopment Goals (SDGs), “GRI Standards”, mainstream ESGratings, national policies, industry benchmarking, and the resultsof stakeholder communications, we identied 26 issues highlyrelevant to the Company.In 2024, we conducted interviews with nearly 30 internaldepartments on environmental, social, and corporate governanceissues, listening extensively to their opinions and feedback.Based on the survey results from stakeholders, we created amaterial issue analysis matrix to identify the signicant issuesmatrix for the year and the disclosure highlights for this Report.Combining the Company’s development strategy, interviewcommunications, external inquiries, and industry trends, themanagement conrmed the material issues.
GovernanceEnvironmentSocial
Material Issues Assessment
Importance to external stakeholders
Importance to internal stakeholdersHighLow
High
GREE’s Matrix of Material Issues in 2024
2225
Introduction
ComplianceGovernance,
UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Value
for Society
Introduction
ComplianceGovernance,
UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Value
for Society
Solidifying Corporate GovernanceThe Company strictly adheres to the requirements of laws and regulations such as theCompany Law of the People’s Republic of China, the Securities Law of the People’s Republic ofChina, and the Stock Listing Rules of the Shenzhen Stock Exchange. It standardizes companyoperations, continuously improves its corporate governance structure, and fully utilizes the rolesof the General Meeting of Shareholders, Board of Directors, and Board of Supervisors in majordecision-making, business management, and supervision to ensure the Company’s complianceand proper operation.
is the highest governing body of the Company, responsiblefor electing the members of the Board of Directors and theBoard of Supervisors, as well as hearing reports on the workof both boards.is responsible for the Company’s overall strategic decision-making and supervising the Business Management. Ithas several specialized committees, including the AuditCommittee, the Remuneration and Evaluation Committee,and the Nomination Committee, which are responsiblefor financial audits, compensation management, and thenomination of directors and senior executives, respectively.is responsible for overseeing the performance of the Board ofDirectors and the Business Management to ensure that theCompany operates in compliance with laws, regulations, andthe Company’s articles of association. It is also responsiblefor reviewing the Company’s financial reports and internalcontrol systems, as well as preventing potential risks.is responsible for the Company’s daily operations andfor implementing the strategies and policies set by theBoard of Directors. It is also tasked with developinginternal management systems and methods to ensure theCompany’s operations are standardized and e?cient.
Board of Directors
Audit CommitteeRemuneration andEvaluation Committee
Special Committee ofthe Board of Directors
Nomination Committee
Business Management
Report
ReportReportReportElectElectEstablish
Supervise and Guide
SuperviseFormulate
ImplementSupervise
General Meeting of Shareholders
ReportAppoint Supervise, GuideFormulate Internal Management Systemsand Management MethodsBoard of Supervisors
GeneralMeeting ofShareholders
Board of
Directors
Board ofSupervisors
BusinessManagement
Corporate Governance Structure Diagram
Introduction
ComplianceGovernance,UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Value
for Society
The Company’s directors, supervisors, and senior management strictly comply withregulatory requirements and regularly participate in compliance training organized byregulatory authorities, the Shenzhen Stock Exchange, and the Company itself. Thisensures zero violations and zero errors in key areas such as major decision-making,information disclosure, and related-party transactions. The management team leadsby example, integrating compliance, integrity, and business ethics into the corporateculture, establishing a strong model for corporate governance.During the reporting period, the procedures for convening and holding meetingsof the Board of Directors and the Board of Supervisors strictly adhered to theprovisions of the Company Law of the People’s Republic of China and the Articles ofAssociation. The attendance rate of all incumbent directors and supervisors at boardmeetings and board of supervisors meetings reached 100%. They diligently andresponsibly fullled their duties, fully reecting the standardization and e?ectivenessof the corporate governance.
General Meeting ofShareholders Convened
Meetings of the Audit Committee underthe Board of Directors Convened
Meetings of Remuneration andEvaluation Committeeunder the Board of Directors Convened
Meetings of theBoard of SupervisorsConvened
times
times
times
times
deliberated
proposals
deliberated
proposalsMeetings of theBoard of DirectorsConvened
times
Convening of Meetings of General Meeting of Shareholders, the Meetings of the Board of Directors,and the Board of Supervisors of Gree Electric in 2024
Governance through the General Meeting ofShareholders, Board of Directors, and Board ofSupervisors
Introduction
ComplianceGovernance,
UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
The diverse backgrounds and experiences of the membersof the Board of Directors provide multiple perspectives andvalue to the Company’s strategic planning, enabling thevarious committees to evaluate issues from broader anglesand fully consider the best interests of all stakeholders.The Company’s Nomination Committee comprehensivelyconsiders factors such as gender, age, and professionalbackground when nominating members for the Board ofDirectors and the Board of Supervisors, with a focus onselecting experts in areas such as corporate governance,finance, law, and the home appliance and electronicsindustry.As of the end of the reporting period, the Company’sBoard of Directors consisted of 9 directors, including fourindependent directors (44.44%) and 2 female directors(22.22%).
The Board of Directors conducts a comprehensive evaluation of the executives’ overall performance in areas such as “virtue, ability,diligence, and performance” based on the Company’s 2024 business goals and the completion of individual executive objectives. Theresults of the performance evaluation are then used to determine the executives’ performance bonuses and annual salaries for 2024,which are submitted to the Board of Directors for review and decision. During the reporting period, the total remuneration received byall directors, supervisors, and senior management was CNY45.0518 million.
44.44%
independent
directors
22.22%
female directors
Specialization and Diversity of theBoard of Directors
Executive Compensation Policy
Members of the Board of Directors in Gree Electric
NamePosition Gender Age
Date of the FirstAppointment ofDirectors
Professional
Ability
Serving on Special
CommitteesDong Mingzhu
Chairwoman & President
Female702012.05Industry Expert/
Zhang Wei
Secretary of theParty Committeeand Director
Male482019.01Industry Expert
Audit Committee,Remuneration andEvaluation CommitteeGuo ShuzhanDirectorMale682019.01Industry Expert/Zhang JunduDirectorMale642012.05Industry Expert/Deng Xiaobo
Director and Vice
President
Male492020.12Industry ExpertNomination CommitteeLiu ShuweiIndependent DirectorFemale722019.01Financial Expert
Audit Committee,Remuneration and Evaluation
CommitteeWang XiaohuaIndependent DirectorMale632019.01
Legal RiskControl Expert
Audit Committee,Remuneration and Evaluation
CommitteeXing ZiwenIndependent DirectorMale622019.01Industry ExpertNomination CommitteeZhang QiushengIndependent DirectorMale572022.03Financial ExpertNomination Committee
Introduction
ComplianceGovernance,
UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
In accordance with the Company Law of the People’sRepublic of China and relevant laws and regulations,as well as the Company’s internal control systems, theCompany has established an effectively functioninginternal control mechanism. Based on internal controlguidelines and its actual situation, it continuouslyimproves its internal control systems to ensure theire?ectiveness. The objectives of the Company’s internalcontrol work are as follows:
Ensure the implementation of relevant national laws,regulations, and the Company’s internal rules andregulationsImprove the Company’s operational e?ectivenessand e?ciency, enhance the quality of the listedcompany, and increase returns to its shareholdersSafeguard the security and integrity of theCompany’s assets;Ensure the Company’s information disclosure istruthful, accurate, complete, and fair.
In accordance with the Basic Specications for Internal Control of Enterprises and Guidelines for Enterprise Internal Control Evaluation,the Company earnestly carries out internal control and compliance assessment. The Audit Committee, Board of Supervisors and BusinessManagement clearly dene their roles and responsibilities, so as to closely link the internal control work with daily operations and realize theclosed-loop operation of risk management.The Company adheres to the principles of “risk-based, comprehensive coverage, and focus on key areas”. Through thorough research, itformulates an annual audit plan and conducts special audits, economic responsibility audits, and operational management audits, coveringimportant business areas such as procurement, production, sales, nance, infrastructure, and asset management, ensuring comprehensiveoversight. The Company regularly conducts full audits of subsidiaries to ensure compliant and e?ective operations, further strengtheninggroup-wide management. Based on audit findings, it issues audit reports and implements a full-chain corrective process of “issueidentication, responsibility assignment, corrective action supervision, and e?ectiveness verication”. Through systematic audit supervisionand internal control optimization, the Company continuously enhances its internal control level and audit e?ciency.Meanwhile, the Company engages a third-party professional organization to conduct self-assessment of the compliance and e?ectivenessof the Company’s internal control system every year, and timely updates and improves the internal control system in accordance with theprovisions of the Basic Specications for Internal Control of Enterprises and its accompanying guidelines, taking into account the Company’sinternal and external environments, changes in its internal organization and management requirements, etc. This ensures a dynamic andadaptive control mechanism that supports the Company’s high-quality development.
Strict Risk Management
Internal Control ObjectivesInternal Control Management Measures
In order to clarify the Company’s management responsibility for the prevention and control of various risks and opportunities, enhance the risk awareness of cadres and employees, and improve theCompany’s risk control capability, Gree Electric has formulated the Measures for Administration of Risks and Opportunities, which identies, monitors, and evaluates internal and external environmentsrelated to the Company’s purpose and strategic direction, and at the same time identies and evaluates relevant parties’ expectations or requirements related to the Company’s management systems ofquality, environment, occupational health and safety, hazardous substances process, energy, information security.
Introduction
ComplianceGovernance,UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
Strengthening Communication with Investors
The Company has established comprehensive investor communicationchannels. Through platforms such as the Shenzhen Stock Exchange’s“Easy Interaction” platform, the Company promptly responds toinvestor inquiries. Additionally, the Company regularly holds theGeneral Meeting of Shareholders, performance briefings, operatesan investor hotline, sets up a dedicated email address to receive andrespond to investor queries, and organizes investor communicationevents to actively engage with investors. Furthermore, the Companyarranges investor visit activities to help investors gain a deeperunderstanding of the Company’s operational status and developmentstrategy, fostering a positive and constructive interaction with investors.The Company strictly adheres to the information disclosure regulationsset by the China Securities Regulatory Commission (CSRC) and theShenzhen Stock Exchange, ensuring the fairness, accuracy, andcompleteness of information disclosure to protect the legitimate rightsand interests of investors.
The company strictly complies with laws and regulations such as the Guidelines No. 1 of the Shenzhen Stock Exchange for the Self-regulation of Listed Companies - Standard Operation of CompaniesListed on the Main Board, the Guidelines for Investor Relations Management of Listed Companies as well as internal regulations including the Measures for Administration of Information Disclosureand the Investor Relations Management System. These e?orts further strengthen the management of information disclosure and investor relations, enhance corporate governance standards, andprotect the legitimate rights and interests of the company, investors, and other stakeholders.
The Company held
performance brieng
answered
questions onthe Easy Interaction platform ofthe Shenzhen Stock Exchange
answer about
calls from investors
During the reporting period
“Easy Interaction” platform
General meeting of
shareholdersPerformance
briengs
Investor hotline
EmailOn-site visits
InvestorCommunication
Methods
Protecting Investor’s Rights and Interests
Introduction
ComplianceGovernance,
UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
The Company strictly abides by the principles ofinformation disclosure, fullls its information disclosureobligations truthfully, accurately, completely, timely andfairly, and continues to deepen the institutionalizationand standardization of its information disclosure work,strengthen the disclosure of environmental, social andcorporate governance information, and continuouslyenhance the transparency of the Company. Duringthe reporting period, the Company released 72announcements to the public, including 4 periodicreports and 68 interim reports.
While the Company continues to promote its ownsound development, it has always placed animportant position on rewarding its shareholders.Since 1996, the Company has raised a total ofCNY5.269 billion through equity nancing and paidcumulative dividends more than CNY 172 billion,of which cash dividends amount to over CNY 142billion, with share repurchases totaling approximatelyCNY30 billion. During the reporting period, the totalcash dividends distributed amounted to CNY16.755billion, including: (1) a proposed cash dividend ofCNY5.585 billion (tax inclusive) for the 2024 interimprot distribution; and (2) a proposed cash dividendof CNY11.17 billion (tax inclusive, subject to reviewand approval by the Company’s General Meeting ofShareholders) for the 2024 annual prot distribution.
2020-2023
Information Disclosure
Shareholder Returns andDividends
the Company was
rated“A” for fourconsecutive years
in the annual informationdisclosure assessment by the Shenzhen StockExchange
Gree Electric's annual dividends (including repurchases) / CNY 100 million
2018
126.33
72.19
278.56
51.82
218.18
30.00
384. 28
112. 28
161.42
55.22
201920202021202220232024
DividendsRepurchases
Introduction
ComplianceGovernance,
UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
Adherence to Business Ethics
The Company strictly complies with laws and regulations such as the Anti-Unfair Competition Law of the People's Republic of China,the Interim Provisions on Prohibiting Commercial Bribery, and the provisions of the Articles of Association. It upholds the principlesof integrity and self-discipline in its business activities. To prevent unethical practices such as bribery, bride-taking, fraud, moneylaundering, unfair competition, and conicts of interest during management processes, the Company has established managementsystems such as the Measures for Administration of Discipline Inspection and Supervision. These measures aim to enhance theCompany’s ability to govern in accordance with the law and manage business ethics, ensuring adherence to business ethics.The company's management team serves as the top governing body for business ethics and anti-corruption issues. The Companyhas set up the Discipline Inspection and Supervision O?ce, which is specically responsible for carrying out the Company’s disciplineinspection and supervision management, conducting integrity education, preventing corruption risks, and implementing the investigationand handling of suspected violations of the law, to ensure the legal and compliant business operations.Integrity-BuildingTo strengthen compliance and ethical conduct,enhance the Company’s management of businessethics standards, prevent corruption in the productionand management processes, and protect theCompany’s brand value, it has established the Code ofBusiness Ethics. The Company requires all employeesat the headquarters and subsidiaries (includingbranches) to adhere to the provisions of the Code ofBusiness Ethics. Additionally, it encourages upstreamand downstream partners and other stakeholders,to support, accept, and implement this code. Allparties are expected to strictly comply with the ethicalstandards, conduct business in line with the principlesof commercial ethics, and comply with all applicablelaws, regulations, and internationally recognized ESGstandards.The Company requires employees, management,and partners to commit to ensuring their own integrityand clearly dene their responsibilities in maintainingethical conduct. Senior management, middle-levelmanagers, and key personnel sign an IntegrityCommitment Letter annually to fulfill their individualresponsibility for integrity, prevent violations, andaddress corruption risks from the source.
The number of Integrity Commitment Letters
6,959
7,123
10,332
In 2024, totaling10,332
copies202420232022The Company conducts annual checks and supervision to ensure theeffectiveness of its business ethics, anti-corruption, and anti-commercialbribery management measures by reviewing the establishment andimplementation of its internal control mechanisms, the accuracy andcompleteness of nancial information, and conducting integrity investigationon key positions and personnel involved in critical processes. In addition, itassesses the risks of commercial bribery and corruption across diversiedbusiness areas, identies where business ethics are more likely to occur,and focuses its audits on these high-risk areas.
Business Ethics Audit
The Company upholds the principles of integrity, legality, andhonest business practices, integrating the development ofan integrity culture with business risk prevention. Throughbusiness ethics training for all employees, disciplinary educationduring monthly learning sessions, and enhanced promotion ofintegrity culture, the Company ensures that 100% of employeesparticipate in relevant training programs. These efforts aim tocomprehensively improve employees’ awareness of businessethics and e?ectively prevent business ethics risks.
Business Ethics Training
the Company ensures that
100%
of employees participate in relevant trainingprograms
Introduction
ComplianceGovernance,UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
In order to maintain the principles of “threeopennesses and three stresses” of the enterprise,Gree Electric adheres to the principles of fairnessand impartiality, openness and transparency, andclear distinction between public and private intereststo carry out production and operation. The Companyhas formulated the Measures for Administration ofReporting, to standardize the duties and contentof reporting information acceptance, investigationand processing, file management, protection,reward and punishment of reporting. The Measuresclearly stipulate the investigation and handlingof reported incidents, whistleblower rewards andpunishments, investigator recusal and whistleblowerprotection mechanism, to ensure the effectivenessof the reporting throughout the whole process, andsafeguard the rights and interests of employees.
President’s mailboxThe Company has established over 30 president’smailboxes in various departments, canteens, gates,and factories to facilitate real-time complaints andreports by employees.Complaint and reporting e-mail concerningprofessional integrityjiancha@cn.gree.comComplaints and reporting phone0756-8669807
The Measures for Administration of Reportingformulated by the Company mandate strict protectionof the personal rights and other legal rights ofthe whistleblowers; no one may retaliate againstwhistleblower or employees cooperating with theinvestigation.
Threeprinciples ofstressesThreeprinciplesof equity
Fairness
andimpartialityOpennessandtransparencyClear distinctionbetween public
and private
interests
Stress thetruth to dopracticalthings
tressprinciplesto do gooddeedsStressdedication tomake greatachievements
Reporting Channels and Whistleblower Protection
Reporting Channels
Whistleblower Protection
The Company strictly complies with relevant laws and regulations, such as the Anti-Unfair Competition Law of the People’s Republic of China, the Anti-Trust Law, and theEU Competition Law, ensuring that its business operations are legal and compliant. TheCompany is committed to preventing unfair competition and monopolistic behaviors,actively maintaining market order, and promoting a fair competition environment. TheCompany pledges to adhere to the principles of fair competition in all commercial activities,refraining from any monopolistic or unfair practices, and encourages, supports, and protectsorganizations and individuals in supervising such activities.
Fair Competition
The Company’s marketing activities strictly adhereto the Advertising Law of the People’s Republic ofChina and other relevant laws and regulations, aswell as the Company’s internal review systems.The Company consistently practices responsiblemarketing, aligning corporate social responsibilitywith business goals. It rigorously controls thereview of external marketing information, prohibitingany exaggeration or distortion in marketingcommunications. The Company has establishedstandardized management requirements and labelingprocesses for product labeling to ensure compliance.During the reporting period, the Company has notencountered any significant incidents of violationsrelated to product and service information, labeling,or market promotion (including advertising, sales,and sponsorship) regulations.
Responsible Marketing
The Company consistently upholds the philosophyof “fair competition and common development”,actively fulfilling its social responsibilities by treatingsmall and medium-sized enterprises (SMEs) equally.By providing open supply chain resources, offeringtechnical support, and sharing market channels, theCompany helps SMEs enhance their competitivenessand promotes collaborative development across theupstream and downstream sectors of the industrychain. Gree Electric recognizes the signicant role ofSMEs in the national economy and is committed tocreating a fair and transparent business environment.Through concrete actions, the Company practicescorporate social responsibility and contributesto building a harmonious and win-win industrialecosystem.
Equal Treatment of Small andMedium-Sized EnterprisesThe Company strictly adheres to the Criminal Law of the People’s Republic of China, theAnti-Money Laundering Law of the People’s Republic of China, and relevant laws andregulations. It has established the Code of Business Ethics to clearly define the natureof anti-money laundering practices. It requires all employees, as well as any partnersengaged in business activities with GREE, to comply with anti-money laundering laws, avoidinvolvement in any money laundering activities, and enhance internal anti-money launderingcompliance management. This ensures the compliant operation of the business and upholdsnancial security.
Anti-money Laundering
Introduction
ComplianceGovernance,UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
Information Security Protection
Gree Electric strictly complies with laws and regulations such as the Cybersecurity Law and the Personal Information Protection Law, and has established systems such as the Measures for Administrationof Information Security. These measures ensure the security of its own information while respecting the privacy protection of customers, employees, and other stakeholders. During the reporting period, theCompany did not experience any information security incidents or user privacy breaches, and thus su?ered no economic losses as a result.
The Company continues to improve its user privacy protection and information security management system. By formulating and revisingrelevant policies, the Company further strengthens its practices in managing privacy data and ensuring information security. Specic measuresinclude:
Establishment of the Measures forAdministration of User Privacy Protection
Revision of Measures for Administration ofApplication Software Development Safety
These measures clearly dene the management requirementsfor the full lifecycle of user privacy data, including collection,storage, use, transmission, and destruction, ensuring thatpersonal information is adequately protected. Additionally,these measures specify key provisions such as the dataminimization principle, the user informed consent mechanism,and access control for data, reecting Gree Electric’s highregard for user privacy.
The Company strengthens cybersecurity managementthroughout the full lifecycle of application software development,fully considers security requirements during the developmentprocess, and implements secure coding practices. Before goinglive, the software undergoes necessary security testing tominimize potential security vulnerabilities from the outset. Thisapproach helps prevent system attacks after launch and ensuresthe protection of customer data.
Revision of the Measures for Administration ofInformation Security Risk AssessmentBuilding on the original framework for information securityrisk assessment, the Company has introduced contentrelated to Privacy Impact Assessments (PIA). The PIArequires an enterprise to assess the potential impact onuser privacy when launching new businesses, products,or technologies, and to take appropriate risk mitigationmeasures. This revision reects Gree Electric’s foresightand systematization in privacy protection.
Enhancement of Employee Training andAwarenessTo ensure the e?ective implementation of the new andrevised policies, the Company plans to conduct company-wide privacy protection and information security training.This will raise employee awareness and capabilities inprotecting privacy data, ensuring that all measures arecarried out in daily operations.
the Company has obtained the ISO 27701Privacy Information Security ManagementSystem Certication for its privacy informationmanagement system.
ISO 27001 Information SecurityManagement System Certicate
ISO 27701 Privacy Information SecurityManagement System Certication
During the reporting period
Enhancing the Information Security System
Introduction
ComplianceGovernance,UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
The Company places a high priority on managing information security incidents and their evolving situations, andhas clearly dened the response, communication, and handling procedures for information security incidents andsituations. These measures also specify the reporting, response, and handling of personal information securityincidents, including how and when to notify relevant parties. The Company identies and analyzes informationsecurity incidents, categorizing them based on severity, including general information security incidents, seriousinformation security incidents, and information security breaches, with tiered response measures in placeaccordingly.The Company’s IT Center has established an Information Security Emergency Response Team, responsible forthe prevention, monitoring, reporting, and emergency response operations of information security incidents. Thisteam is tasked with activating the emergency response plan for information security incidents and implementinginterim emergency measures based on the evolving situation of such incident.
Emergency ResponseTeam Leader
Emergency ResponseTeam Deputy Leader
Emergency ResponseTeam members
Oversees overall coordination and command of emergency incidents,organizes recovery operations for the Emergency Response Team;promptly reports personal information security incidents to the Company’sPersonal Information Protection O?cer.Directs on-site incident containment, control, and coordination, ensuressmooth execution of emergency response operations, and organizesincident investigations and lesson-learnt summaries; coordinates withteam members and relevant units in responding to personal informationsecurity incidents.Execute tactical emergency response operations, including investigationand reporting, technical root cause analysis, fault analysis, businessrecovery, etc.; trace the source of personal information security incidents,reproduce issues, restore processes, analyze and evaluate impacts, andcollect, verify, and preserve relevant evidence of personal informationsecurity incidents.
The Company has established a ConnectedProducts & Information Security Task Force fullyresponsible for the compliance managementof information security and privacy protection.The task force has developed a standardizedinformation security audit process andconducted pilot programs in critical productlines, implementing full lifecycle informationsecurity controls for programs involving personalinformation and IoT modules. At the sametime, the Company has strengthened datatransmission security management, utilizingencryption technology to encrypt transmittedles, ensuring data security.Network security scanning and penetration testing initiative
In 2024, Gree Electric has repeatedly engaged professional third-partyorganizations to conduct a comprehensive scanning and penetrationtesting of its internal information systems, aimed at identifying andremediating potential security vulnerabilities to enhance the overallsecurity of its information systems. The testing scope covered theCompany’s core business systems, financial systems, customer datamanagement systems, and internal communication platforms. The third-party testing team employed advanced penetration testing tools andtechniques to simulate various malicious attack methods and networkattack scenarios, assessing system and network security. Duringthe process, the testing team worked closely with Gree Electric’s ITdepartment to ensure that identied issues were promptly addressed.Upon completion of the initiative, the third-party organization provided adetailed security assessment report and improvement recommendations,helping Gree Electric further refine its information security strategiesand defense mechanisms. Through these testing, Gree Electric not onlystrengthened the security of its information systems, preventing systemdisruptions and the leakage of sensitive information, but also enhancedemployee awareness of security, reflecting the Company’s strategicvision of safeguarding trust with technology and empowering the futurewith security.
Information Security Incident Response OperationsInformation Security Compliance Actions
Information Security Emergency Organization
Introduction
ComplianceGovernance,UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
Introduction
ComplianceGovernance,UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
Innovation-Driven TransformationGree Electric has established technological innovation as the core driver of its development, steadfastly adhering to independent research and development of core technologies and upholding the principlesof “investing on demand without setting a ceiling”. Over the years, the Company has continuously optimized organizational structure for R&D management, established a multi-level and high-standard R&Dplatform system based on national-level scientic research platforms, and formed a technology innovation system that is “enterprise-led, market-oriented, and integrates industry, academy and research”.
refers to the guiding philosophy, which is the abbreviation for “adhering toindependent innovation and implementing a core leadership strategy”
refers to the organizational system, which is the abbreviation for “high-level technological innovation platforms, comprehensive innovationmanagement mechanisms, and high-quality R&D talent teams” as thethree fundamental supports.refers to the outcome system, which is the abbreviation for “self-transcending innovation culture, sound R&D system, leading coretechnologies and standards, and comprehensive product systems” createdthrough GREE’s innovation practices.
One Core
FourOutcomes
ThreeFoundations Dual Chains refer to the activity system, which is the abbreviation for “innovation.
Activitysystem
InnovationchainSustainablevalue chain
R&Dinternationalization
Designuniversality
Leanmanufacturing
Automatedmassproduction
Full-sta?qualityengagementGreenpurchasing
Sustainablemanufacturing
Win-winmarketing
Demandcreation
Air conditioning variable frequency technology innovationDynamic operation energy savingEnvironmentally friendly refrigerant replacementFrom single household appliance product intelligence to thedevelopment of multi-device, multi-scenario smart homeplatforms, and to the construction of smart hardware andecosystemAir health: research on key technologies such as sterilization,bacteriostatic, virus elimination, and room-temperature catalyticformaldehyde removalWater health: whole-house water purication system solutionsFood health: fresh-keeping technology for fruits and vegetables,natural convection overcooling technology for meat preservation,wide-frequency fully-sealed piston compressors for ultra-low-temperature meat storage, smart health cooking technology, etc
Low carbon
Intelligence
Health
StrategyDirection
Technological
Path
Core Strategies for R&D InnovationStrategy Direction of R&D Innovation
“One Core, Dual Chains, Three Foundations, Four Outcomes”“Low Carbon - Intelligence - Health” Integrated High-Quality Development Strategy Direction
Introduction
ComplianceGovernance,UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
national-levelresearch platforms
research institutions
research institutes
Provide platform support for R&D activities,establishing the cornerstone of an open andcollaborative innovation ecosystem;
National-level research platforms
Focus on specialized technological research,forging the core competitive advantage for in-depth technological breakthroughs;Relevant research institutes
Leverage new technologies to drive productR&D, e?ciently converting innovative outcomesinto commercial value.Product development departments
The Company’s R&D innovation subject includes
Motor and Control Academician Workstation
National Engineering Technology Research CenterNational Industrial Design CenterNational Enterprise Technology CenterObotics Engineering Technology R&D Center
Electrical Engineering andElectrical Materials InstituteFreezing and RefrigerationTechnology InstituteHealth Technology InstituteRobots Research InstituteIntelligent Equipment TechnologyInstituteNew Energy EnvironmentTechnology InstituteBuilding Environment and EnergyConservation InstituteInternet of Things TechnologyInstitute
1 academician
workstation16 research institutes152 research institutions
1,411 laboratories
hosts 4national-level research
platforms
Construction of R&D and Innovation System
Pyramid System of Research Platforms
Washing Technology InstituteCommunication TechnologyInstituteEquipment Power TechnologyInstituteMotor System Technology InstituteMechanical and ElectricalTechnology InstituteRefrigeration Technology InstituteTwo Home Appliances TechnologyInstitutes
Introduction
ComplianceGovernance,
UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
As a technology-driven enterprise, the Companyhas always regarded talent cultivation as a criticalstrategic resource for corporate development, fuelingtechnological innovation. To incentivize breakthroughs,the Company established the “Science and TechnologyProgress Award”, which recognizes teams andindividuals who complete major R&D projects anddeliver outstanding achievements. Each year, theCompany rewards over 100 innovative projects. In 2024,a total of 189 award-winning projects were selected.
Project-based evaluations and “Science and Technology Progress Award” rewarding mechanism to driveinnovation motivation;Talent subsidies: Support for high-level experts and Zhuhai Outstanding Industrial Youth Talents;Employee stock ownership plan (ESOP): Launch the ESOP, covering core R&D teams, to fully unleashemployees' potential and promote the high-quality development of the company;“GREE Innovation Hub”: Host tech salons, forums, exhibitions, and competitions and other technologicalinnovation activities to facilitate knowledge-sharing and project incubation;Open innovation mechanism: By implementing proposal improvement initiatives and open call forbreakthrough solutions, we aim to create a thick scientic and creative atmosphere;Provide attractive workplace & benets to retain top-tier talents;Encourage employees to attend domestic and international academic meetings and technologyexchanges, broadening horizon and expertise.
Fostering Full-sta? Innovation through Comprehensive Incentivization
representing a year-on-year growth ofof R&D revenue of 2024
3.77%
1.9%
Proportion of R&D investment
R&D Innovation Team Building
Introduction
ComplianceGovernance,
UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Value
for Society
Xi’an Jiaotong University,
Zhejiang University
Screw Refrigeration Compressor Technology R&D
Jointly conducted the project “Key Technologies and Industrialization of High-Performance ScrewRefrigeration Compressors for Complex Environments”, which introduced the innovative smallcompression ratio, two-stage, permanent magnet variable frequency adaptive variable compressionratio screw compressor. The system’s coe?cient of performance (COP) exceeds 7.0 under nationalstandard operating conditions. Hence, this breakthrough achievement earned the First Prize forTechnological Innovation in Guangdong Province.University of Macau,Guangdong Power Grid
Co., Ltd.
Foundational Theory and Applied Research of QualityStandards
Jointly established the “Provincial Quality Standard Laboratory for Advanced Photovoltaic-EnergyStorage-Direct Current-Flexibility (PEDF) Systems”, conducted foundational and applied research onquality standards, resolved key technical challenges, and developed an advanced quality standardsystem with breakthroughs in testing and inspection methodologies.Shenzhen MetroGreen and Smart Subway Construction
Jointly established a new benchmark for green and smart subway systems. The integratedrefrigeration energy e?ciency of the refrigeration rooms exceeds 5.0 annually, while the AC systemsachieve a yearly integrated refrigeration energy e?ciency of over 3.0. These remarkable energy-saving outcomes place our e?orts at the “internationally leading” standards.China Unicom5G base stations, photovoltaics, energy storage applications
Jointly built up China’s rst end-to-end hard slicing solution, the rst provincial 5G LAN commercial-grade pilot site; selected for two national innovation projects by the Ministry of Industry andInformation Technology (MIIT) and the National Development and Reform Commission (NDRC).
China Pingmei ShenmaHolding Group Co., Ltd.
Research and industrialization cooperation on refrigerationand cooling system of deep mining working spaceJoint application for major scientic and technologicalprojects at or above the provincial and ministerial levelHigh-level R&D platform construction
Jointly developed “key technologies and applications for new registration equipment systems for deepmine heat hazard control” was certied as “Internationally Leading” and awarded the First Prize ofScience and Technology Award by China National Coal Association.
The Company has established comprehensive, long-term partnerships with more than 100 higher education institutions, scientic research institutions and institutes, and upstream/downstream enterprises.These collaborations are structured through three primary mechanisms: joint platforms for technology R&D and talent development, collaborative research to address national strategic needs, andestablishment of technology alliance to promote the innovations conversion and sharing, aiming to advance corporate technological innovation; support the intelligent transformation of manufacturing, andlead the industry toward high-quality development.Industry-university-research Cooperation
2024 Selected Industry-Academia-Research Collaboration Cases
PartnerCollaboration AreaCollaboration Objectives/Achievements
Introduction
ComplianceGovernance,UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
In 2024, aligned with its three strategic focus areas - green & low-carbon, personalized intelligence, and health & comfort, the Company pursued innovative technology and product development to meetconsumers’ aspirations for better living. It made technological breakthroughs in residential/commercial air conditioning (AC), home appliances, and core components, significantly enhancing productcompetitiveness. These accomplishments were recognized through multiple prestigious domestic and international awards.
The product incorporates AI algorithm-based variable frequency energy-saving control technology and a highly adaptable AI chip,signicantly improving annual dynamic energy e?ciency and reducing yearly power consumption by over
13.6%
.
Based oncurrent sales volume, it is estimated to save
3.08
million kWh of electricity annually, equivalent to
reducing CO?emissionsby approximately
306,700
tons. This breakthrough represents a major advancement in dynamic operational energye?ciency for AC systems, achieving genuine energy conservation and carbon reduction in real-world usage.AI energy-saving residential
AC series
Achievement
Category
Achievement NameAchievement Impact
COP7.0+ Two-stage Permanent-magnet
Inverter Screw Chiller
Green andlow carbon
High-e?ciency PV energy-storage
AC for export
R&D Innovation Achievements and Awards
The PV energy-storage AC system integrates clean photovoltaic power generation, safe energy storage and load management,high-efficiency AC operation, and smart system control. Featuring company’s proprietary “Cascade Heat Exchange ParallelCompression Refrigeration Technology”, the system signicantly enhances high-temperature refrigeration performance, deliveringe?cient and stable refrigeration even under extreme conditions. These products have been widely applied in regions such asAfrica, the Americas, and Southeast Asia, and successfully used in various scenarios including residential, industrial, and o?cespaces in Saudi Arabia. The use of these products results in a carbon emissions reduction of at least
110,000
tonsannually.
This product is equipped with a two-stage compression, intermediate gas injection refrigeration cycle system, and a new screwrotor prole. It integrates a multi-parameter linked adjustment and control method, signicantly enhancing performance across alloperating conditions. With a national standard COP of 7.0+ under standard conditions, it meets the user needs in various sectors,including public buildings, rail transportation, and data centers. The product has been extensively applied in public buildings,metro stations, industrial refrigeration projects, and exported to countries and regions such as Singapore and Russia.
Introduction
ComplianceGovernance,
UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Value
for SocietyE?cient and Intelligent EnvironmentalControl System for Subway Stations under
All Working Conditions
GMV9 Zhiyue VRF Units
This product utilizes real-time performance calculation technology, exible refrigerant control technology, and full-scenario AIenergy-saving technology to address the industry challenge of accurately detecting, regulating, and optimizing energy e?ciencyin commercial multi-split systems for large buildings. It is the rst in the industry to achieve online measurement of indoor unitcapacity and real-time power measurement, with an average energy-saving rate of
25%
. Based on three years of sales, itis estimated that the product can reduce carbon dioxide emissions by
74,800
tons.
This product addresses several issues present in traditional metro stations, such as the di?culty in replicating e?cient systemsacross multiple lines, large uctuations in operating conditions, and the inability to self-adjust operating parameters. The systemhas been successfully applied across all
stations on Shenzhen Metro Line 12. It is estimated that the system will save
17.36
million kWh of electricity annually and reduce carbon emissions by
13,636
tons for the entire line.
The “Taishan” Smart Building Platform, through its fully self-developed software and hardware system, supports the integrationof a large number of electromechanical devices, providing exible and e?cient networking capabilities to meet the needs foronline, digital, and intelligent construction of building electromechanical systems. The platform integrates technologies such asenergy e?ciency simulation, global optimization, and cloud-edge collaboration to ensure e?cient management and intelligentoperation of buildings, facilitating smart building upgrades.
Personalizedintelligence
Taishan Smart Building
Platform
Achievement
Category
Achievement NameAchievement Impact
Introduction
ComplianceGovernance,UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
Health and
comfort
Fresh air residential air conditioner
Central air conditioner with gentle air
comfort technology
This product incorporates several breakthrough technologies including high airow with low noise operation, e?cient condensate-based air purification and sterilization, AI-powered dynamic energy-saving chip to address the user needs of low noise ande?cient fresh air replacement, sterilization and purication, increase airow by
15%
at equivalent noise levels compared toconventional units, and achieve professional-grade air circulation with purication and sterilization. It boasts
13.6%
annualenergy savings through real-time dynamic optimization across all operating conditions, and signicantly enhances user experiencefor fresh air functionality.
This product features the industry-rst reversible air supply technology, addressing long-standing issues such as poor heatinge?ciency and cold air blowing directly at people in traditional air conditioning systems. It ensures that no cold air blows at peopleduring cooling, while rapidly warming the human activity area during heating. Compared to traditional ducted systems, it achievesa
42.7%
energy-saving rate.
This product incorporates three freshness preservation technologies, namely self-balancing fruit & vegetable freshnesspreservation technology, natural convection meat freshness preservation technology, and super-freeze meat storage technologyto e?ectively resolve complex storage challenges, including produce dehydration, and addresses diverse consumer preservationrequirements for both fruits/vegetables and meats.
The product adopts rinse+ technology to addresses critical consumer demands for deep cleaning, high-e?ciency sterilization, andsmart home integration, achieve comprehensive interior coverage through optimized spray systems, and save
40%
of timethan traditional soak-rinse methods, greatly reducing the washing duration. This product is integrated with WiFi for enhanced userexperience.
Refrigerator with all-round freshness preservation
“Zhenrou” washing machine series
Achievement
Category
Achievement NameAchievement Impact
Introduction
ComplianceGovernance,UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
Gold Award
Science and Technology AwardFirst Prize
Gold Awards
ExcellenceAwards
Appearance DesignExcellence Award
Silver Awards
China Appearance Design
China National LightIndustry Council
First Prize
Gold Award
Second Prizes
Silver AwardBronze Award
Technology Progress of Guangdong Scienceand Technology Progress Award
49th Geneva International Exhibition of Inventions
Certicate of Gold Award of GREE at the 76th Nuremberg
International Exhibition of Inventions in Germany
76th Nuremberg International Exhibition ofInventions (in Germany)
Certicate of Award of GREE at the 49th Geneva International Exhibition of Inventions
Major New Awards of Gree Electric in 2024
Introduction
ComplianceGovernance,
UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
Aligned with its corporate vision, Gree Electric has established a comprehensive intellectualproperty (IP) strategy and management system, integrating IP planning into its overall businessstrategy. The Company actively promotes the development and implementation of its IP framework.In strict accordance with local IP regulations in all operational markets, and in combination withits IP strategy, the Company has formulated and implemented the Measures for Administrationof Enterprise Intellectual Property, Measures for Administration of Patent, and Measures forAdministration of Trademark to standardize the IP management. The Company has established adedicated IP department with 500+ patent professionals assisting patient o?cers in technology-to-patent conversion.
Full Lifecycle IP Management System of Gree Electric
Gree Electric’s IP training initiatives
The Company is dedicated to cultivating a robust IP culture within the organization,fostering an innovation protection ethos, enhancing patent quality awareness, andelevating IP management standards. In 2024, the Company launched a series ofinitiatives, including the “4.26 Intellectual Property Awareness Week”, comprehensiveIP training courses, and patent quality enhancement programs, targeting technicalpersonnel across its primary R&D units. These initiatives are designed to strengthenemployees’ IP protection awareness, solidify foundational IP knowledge, and enhancecapabilities in patent technology innovation and protection by focusing on three keyareas: awareness building, professional skill development, and quality improvement.
4.26 Intellectual Property Awareness Week
Company-level IP course training
It is among the rst national demonstration units for IPwithin enterprises and institutions.National Patent Operation Pilot EnterpriseNational Intellectual Property Demonstration EnterpriseNational Intellectual Property Advantage Enterprise
Gree Electric
subsidiaries
subsidiaries
IP management risks
Business activities
IP control measures
DesignProcurementProductionSalesAfter-salesPre-researchInfringement of
inadequatelyprotected productProject search andpatent analysis
Patent layoutavoidance design
Materialinfringement risk
verication
Equipmentinfringementrisk verication
Solving quality
problems
Improper useof promotionalmaterialsRepeated
R&D
Materialinfringement
Equipmentinfringement
Compliancereview
Quality risks
Gree Electric establishes itself as a leader in the IP sector
Intellectual Property Management
Introduction
ComplianceGovernance,UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Value
for Society
As a critical element in the new wave of technological and industrial transformation, IP plays an increasingly vital role in economic development. As anindustry leader, Gree Electric actively fullls its responsibilities in the eld of IP protection, demonstrating its commitment and leadership.
GREE understands the challenges ofinnovation and has established a multi-tiered IP risk verication system to ensurethat each product undergoes thoroughIP risk assessment before leaving thefactory, thereby safeguarding againstinfringement of others’ patents.
As a leading enterprise in the ACindustry, GREE has formed theIntellectual Property Alliance of ChinaAir Conditioning Industry to activelypromote IP respect within the industry.The Company provides IP hostingand support to upstream enterprisesto enhance patent quality and reduceinfringement risks; for peer enterprises,GREE facilitates technology developmentthrough patent licensing and transfers; fordownstream enterprises, patent licensingimproves consumer experience.
GREE advocates for “respecting others’IP, safeguarding one’s own legitimaterights, and jointly fostering a favorablebusiness environment”. To protect itsrightful interests, GREE rmly pursueslitigation against repeated and maliciousinfringements. The purpose of GREE’s IPlitigation is not to seek compensation butto convey a message: Only by respectingIP can innovation be further stimulated.
Respect for other’s IP rightsGuiding the industry to respect IPCourageously defending its own IP
The Company has developed a comprehensive enterprise IP management system platform, integrating functionalities such as patent search, applicationand maintenance, value assessment, product patent navigation, and patent operation processes. This platform encompasses 16 management modules,spanning from the initial proposal to the termination of a patent’s lifecycle. It facilitates the electronic management of processes and IP documents,ensuring seamless integration with project management platforms, PDM management platforms, and patent agency platforms, signicantly reducing thepatent application cycle and elevating the overall IP management standards.
Intellectual Property Protection
Intellectual Property Management Platform
Introduction
ComplianceGovernance,UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
The Company has assembled a dedicated standardpatent research team and established a robustinnovation system. By leveraging IP protection andstandard leadership, the Company enhances itsinuence in setting international and industry standards.It has led multiple international standard proposals forphotovoltaics, driving the convergence of photovoltaictechnology with household appliances, therebycontributing Chinese expertise. This initiative has alsopromoted the global application and dissemination ofphotovoltaic direct-drive inverter air conditioners andother photovoltaic direct-drive appliances. Furthermore,the Company has strategically focused on patentstandardization, ling numerous related patents in theelds of photovoltaics and smart home technology.
Gree Electric prioritizes patent quality, implementing a multi-level patent quality inspection system to rigorously control patent qualityand eliminate substandard patents
Gree Electric applied for a total ofAt the end of the reporting period
wonincludingand
including
129,524
patents
China Patent Awards in total
China Patent Gold Awards
China Appearance Design Gold Awards
70,844
invention patents
and25,883
granted invention patents
Patent application and granting
1. Pre-application
search quality check:
excluding technicallyinsu?cient solutions atthe source;
2. Application
document qualitycheck: ensuring thattechnical solutions areadequately protected;
3. Post-application
examination responsequality check: furthercontrolling the scopeof patent protection,ensuring each GREEpatent is of high quality.
4. Dedicated quality
inspection team:
establishing a specializedquality inspection team toconduct comprehensivequality checks at everystage, ensuring theoverall quality of patentapplications.
Patent Applications
Patent application process
Introduction
ComplianceGovernance,UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
Lean Intelligent ManufacturingGree Electric adheres to the philosophy of “Pursuing Lean Excellence, Creating the Future with Smart Manufacturing’, embedding this approach into every link of R&D, production, testing, and service. TheCompany leverages innovation to drive lean manufacturing, ensuring the stability and reliability of product quality. At the same time, it actively embraces the call for “digital transformation”, accelerating thedigitalization and smart manufacturing upgrades, and is dedicated to integrating digital technologies deeply into all aspects of its operations.
Gree Electric focuses on innovation in its management systems and has established the GREE Lean Smart Manufacturing System integrating lean management with smart manufacturing technologies.During the reporting period, the Company took innovative measures in four key areas - management, design, production, and logistics, to enhance the e?ciency and intelligence across the entire valuechain, driving a comprehensive upgrade of its lean manufacturing capabilities.
The Company has developed its own intelligent management model, integrating HR, MES, ERP, and MPM systems to build a GREE E?ciency Management Information System.This system enables real-time data collection, computation, and analysis for dual-e?ect management, with data details rened down to the unit level, and data at the group,base, factory and unit are derived from the same source, with management e?ciency upgraded to a system that enables minute-by-minute oversight, ensuring that dual-e?ectmanagement is timely, accurate, transparent, and executed through to completion.Dual-EffectManagementInnovation
In terms of process innovation, the Company focuses on materials and process methods, and centers innovation e?orts around lean organization and manufacturing models.Regarding automation innovation, the Company has achieved automation in assembly, testing, and production lines, and is advancing low-cost intelligent automation to reducelabor intensity for employees; in terms of smart manufacturing innovation, the Company starts with data structuring and leverages intelligent decision-making to optimize di?erentproduction stages. It has also developed standards for intelligent factory systems, driving the production system toward exibility, e?ciency, and intelligence. Additionally, theCompany has independently developed an automated production line for both the indoor and outdoor units of home air conditioners, improving model compatibility and automationrates for various positions. It has also launched the low-cost intelligent automation (LCIA) “Three Zeroes” project, achieving zero-turning, zero-bending, and zero-walking in itsoperations.ProductionTechnologyInnovation
The Company has established a “Five Transformations, One Integration, Multi-Dimensional, Full Lifecycle” lean design innovation system. This system fosters comprehensivecross-departmental collaboration, driving innovation and improvements from the very source of design to signicantly reduce later-stage change costs. The lean design systemencompasses the entire product line, including air conditioners, home appliances, and refrigeration and washing products, leading to an average annual e?ciency improvement of10% for new products.Lean DesignInnovation
Guided by the “low inventory-high turnover” concept, with standardized material packaging as the foundation, the Company promotes e?cient supply chains to reduce materialinventory. It integrates various IoT technologies and has independently developed the “IoT Logistics Technology Application Service Platform”, which is innovatively applied inthe production logistics process. The platform has been rapidly deployed and promoted across the entire group, enhancing the digital management e?ciency of the Company’slogistics operations.LogisticsTechnologyInnovation
Innovation Driving Lean Manufacturing
Introduction
ComplianceGovernance,
UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Value
for Society
Based on the “multi-matrix nesting” concept, the Company has developed a lean and high-performance application platformencompassing core business areas such as production, supply chain, sales, and inventory. This platform breaks down data silos andenables end-to-end data integration and collaboration. The Company has also designed review and execution standards across allbusiness segments. Through a systematic internal loop supervision mechanism, GREE continuously optimizes management evaluationmodels and platform functionalities, driving dynamic iteration and upgrading of the management system. This promotes the deepoptimization and continuous improvement in the overall internal control system.In the production system, the Company has achieved integrated data management across production, sales, and inventory. Real-timedata monitoring and analysis enhance data transparency, ensuring consistency, accuracy, and reliability of data. By leveraging data-driven management transformation, the Company optimizes production and operation models, reduces operational costs, and improvesproduction e?ciency. Additionally, data empowerment supports precise market decision-making, enabling rapid responses to marketdemands and enhancing market competitiveness. Looking ahead, Gree Electric will continue to deepen its digital transformation,fostering the deep integration of intelligence, digitalization, and manufacturing to establish itself as an industrial leading digitalbenchmark.Group business standardization and modeling, achieving “one-network unied management” of subsidiaries byheadquarters
In 2024, Gree Electric made signicant breakthroughs in group operation management by successfully launching the“Group Manufacturing Operation Decision Platform”. This platform integrates key data such as material inventory,logistics status, production progress, and quality status from various production bases, enabling transparent and real-time management of over 70 production bases by the headquarters. This has significantly enhanced operationale?ciency and decision-making accuracy. This initiative marks a new phase in Gree Electric’s digital transformation andgroup control, laying a solid foundation for comprehensive management digitalization and real-time command. It alsoadvances the fulllment of green production and SDGs.
Gree Electric awarded the rst place for nationalenterprise management modernization innovationachievementOn December 31, 2024, the China EnterpriseConfederation announced the list of the 31st NationalEnterprise Management Modernization InnovationAchievements. Gree Electric’s project, Building andImplementing a Lean Smart Manufacturing Systemfor Large Home Appliance Enterprise Groups, stoodout from 1,033 entries and was awarded first prize.This project demonstrates the Company’s innovativeachievements in lean manufacturing systems andmanufacturing technologies, highlighting its commitmentto “mastering core technologies independently andempowering the high-quality development of theenterprise”.
Digital Empowerment in Manufacturing
Introduction
ComplianceGovernance,
UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Value
for Society
Intelligent after-sales monitoringIn 2024, the Company developed a Multi-Split Unit Big Data Management System, establishing a comprehensive and intelligent after-sales quality monitoring system. This system not only enables real-time collection and analysis of AC unit operation data nationwide but also classies, predicts, and diagnoses faults by intelligent means, ensuring rapid response and resolution, thereby improving after-sales service quality and e?ciency.
Leveraging advanced big dataanalysis technologies, the system conducts in-depthanalysis of collected data, identies potential issues,predicts possible faults, and takes preventive actionsin advance.
Gree Electric usesthe Multi-Split Unit Big Data Management Systemto collect real-time operation data of AC unitsnationwide, ensuring data comprehensiveness andtimeliness.
Comprehensive data collection
Intelligent analysis
Data collection and analysis
The system seamlesslyconnects product development and after-salesprocesses, forming a closed-loop managementsystem that enhances after-sales quality analysisand service feedback e?ciency.
Utilizing intelligent faultdiagnosis technology, the system quickly locates theroot cause of issues, providing precise solutions andreducing fault resolution time.
The system automaticallyclassies fault information and uploads it in real-timeto the after-sales maintenance system and designevaluation system, ensuring rapid response andresolution.
The big data system monitorsproduct operation status in real-time, promptlyidentifying abnormalities.
Closed-loop managementIntelligent diagnosis
Automatic classicationReal-time monitoring
Fault classication and uploadingReal-time monitoring and diagnosis
During the reporting period, the Company has received numerous national and provincial honors in the eld of intelligent manufacturing:
During the reporting period
Jinwan GREE was awarded the national“Excellence Level”
smart factory title
Luoyang GREE was recognized as a
provincial-level excellentintelligent application scenario
Ganzhou GREE was designated as a
provincial-levelintelligent manufacturingbenchmark enterprise
First Prize
in the 31st National EnterpriseManagement Modernization and
Innovation Achievements
Honors in Intelligent Manufacturing
Introduction
ComplianceGovernance,UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Value
for Society
The Company strictly adheres to the Product Quality Law of the People’s Republic of China,consistently positioning high-quality product strategy as one of its long-term strategies.Guided by the quality policy of “pursuing supreme quality, establishing an international brand,and building a century-old enterprise”, the Company aims for “zero defects” and “the bestservice is no service needed” as its quality goals. It upholds a “strict, practical, and innovative”quality culture driven by customer needs and social responsibility.
Rooted in GREE’s “real” culture and its commitment to self-transcendence in innovation, the Company has developed a qualityculture centered around “strictness, reality, and innovation”.
Implement the Chief Quality O?cer (CQO) system and the Quality Director (FactoryDirector) system, establishing a top-down quality responsibility structure;The Quality Control Department has complete and independent nal authority to rejectquality, implementing a “one-vote veto system” for quality;Launch the “Quality Inspection Action”, encouraging all links and positions to adopt themindset of “everyone is a quality inspector”, and foster a courageous, self-reectiveapproach to rigorously manage quality.
Seek truth from facts, stay grounded, and eradicate any tendency toward dishonestyor falsication in work;Establish company-level and branch-level quality meeting systems, held weekly, tothoroughly analyze the causes of quality incidents and implement corrective actions;Set up multiple company-level quality improvement teams in specialized areas,guided by customer needs, and integrate feedback from after-sales quality informationto drive systematic quality improvements.
Strive for Excellence in Quality
Quality Policy
Pursue perfectquality
Quality goalThe best service is noservice neededStrictnessRealism
Innovation
Strictness
Realism
Adhere to independent innovation, continuously innovate in management concepts,quality technologies, quality methods, etc., to achieve rapid and sustained quality levelprogress;Combine the positive ve-step quality method with the reverse quality innovation-driven loop to create the pioneering PQAM (Perfect Quality Assurance Model)that makes the world love “Made in China” GREE products, focusing on proactiveprevention and post-incident quality control.Innovation
Quality Culture of Gree Electric
Introduction
ComplianceGovernance,
UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
The company aims for “zero defects” and is committed to becoming a benchmark enterprise for highquality in the global household appliance industry. Through precise control throughout the entireproduct lifecycle, it has established a comprehensive product quality management system.TheCompany places great emphasis on managing product production quality. It has established andstrictly implements the Measures for Administration of Product Quality Inspection and ProductionProcess Quality, effectively standardizing the inspection and management of product quality ateach branch factory to ensure high-quality products flow into the market. Currently, all of theCompany’s production factories have obtained ISO 9001 quality management system certication.Regular system audits are conducted annually to promptly identify issues and make improvements,ensuring continued compliance with standards to maintain certication validity. During the reportingperiod, the Company also obtained the ISO 10012 measurement management system certication,further ensuring the accuracy and reliability of product measurement data and improving productquality consistency. This also enhanced customer trust in the brand, optimized internal operationale?ciency, and reduced measurement errors and costs.
Gree Electric has built a full lifecycle quality risk management system centered on products.Through a multi-level quality management structure, the Company ensures that every step fromdesign to production is strictly controlled. The Company President, as the highest authority forproduct quality, oversees the work, with a CQO responsible for implementing quality management.The Quality Director, Quality Factory Director, and Quality General Manager supervise and managekey quality positions, regularly reporting to the CQO. Additionally, the Company has established aquality leadership constraint mechanism, implementing a “one-vote veto system” for quality, withquality responsibilities broken down from top to bottom. This enables e?ective identication andmanagement of quality risks, continually improving product quality and customer satisfaction.
Company President
CQOQuality Factory
Director
Quality GeneralManagerQuality DirectorKey positionKey positionKey positionKey positionKey positionKey positionKey position
Quality-centered full lifecycle quality risk control systemQuality honesty culture construction integrated into theorganization’s overall quality culture
ISO 9001 Quality Management System CerticateISO 10012 Measurement Management System Certicate
Quality Management System
Full lifecycle quality risk control structure
Broken-down quality responsibility organization system from top to bottom
Introduction
ComplianceGovernance,
UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
The Company is committed to achieving perfect quality as its mission, adhering to honest businesspractices. With national and international standards as the baseline and consumer needs as thehighest standard, the Company relentlessly strives to “Made in China, Loved by the World” andcontribute to China’s grand goal of becoming a manufacturing and quality powerhouse.The Company employs the “Five Steps to Quality Prevention” which drives quality plans positivelythrough quality objectives. This method involves ve steps: demand research, planning, execution,inspection, and improvement. It ensures strict process control over the value creation stages suchas R&D, procurement, manufacturing, and after-sales service, eliminating quality issues beforeproducts reach consumers. The “D-CTFP Quality Technology Innovation Cycle” is a reverse quality-driven approach guided by customer needs. By collecting and analyzing customer demands (C),and implementing actions such as inspection technology driving (T), failure mechanism research(F), and process system optimization (P), it forms a closed-loop around standards. This approachcontinually drives quality technology innovation to meet customer demands. Both systems areinterlinked and organically combined to jointly promote the steady improvement of the Company’sproduct quality.
“Made in China, Loved by the World”
R&D processTarget driven
Integratedinnovation
Guaranteeprevention
Procurement processManufacturing processSales & service process
Perfect quality
R&D process
Organizationalsystem
Technologysystem
Standard system
Informationsystem
FeedbackSupport
Customerdemand led
Process systemoptimization
Inspectiontechnology driven
Failuremechanism research
1.C
2.T3.F
4.P
1.Demand research
2.Planning
3. Execution
4.Inspection
5.Improvement
Internal andexternal
In its quality management practices, the Company has established a quality responsibility system,clearly defining quality management responsibilities at every level, from workshop workers,department sta?, and department heads to quality supervisors and ultimately the Chairwoman of theBoard. This ensures that quality activities have designated responsible individuals and that qualityissues are promptly addressed.
Gree Electric actively responded to the national“Quality Month” initiative and carried out the“Quality Month” and Fourth Quarter QualityImprovement Special Campaign from October toDecember 2024. The aim was to comprehensivelyenhance the quality levels of all productcategories and services, reduce after-salesfailure rates and repair costs, and improve marketcompetitiveness and customer satisfaction.Each participating unit diligently advancedaccording to the plan, successfully completing249 quality improvement projects, significantlyenhancing both product quality and service levels.The campaign resulted in expected effect, withexemplary projects being selected and awarded.
Enhancing production process quality control
Strengthening quality testing duringproduct use
The products of the Company undergo inspectionby hundreds of quality control sta? at everystage, including material procurement, assemblyline production, and delivery. This includesinspections of appearance, performance, andtype testing for outsourced materials upon arrivalat the factory, quality inspections during nalassembly and production at supporting factories,and tests for performance, noise, reliability, andsafety compliance during laboratory testing.These comprehensive quality testing processesensure high-quality products.
The Company has independentlydeveloped the Tianwang IntelligentMonitoring System, which is equippedwith remote monitoring software and high-denition display technology to enableremote, real-time monitoring of theproduct testing process. Quality test datais aggregated, categorized, and analyzedon a unied quality data platform andautomatically uploaded to the quality datamanagement system, enabling remote real-time monitoring and data sharing.
During the reporting periodthe Company
did notexperience anymajorsafety quality accidents related toproduct servicesand there wereno relatedeconomic losses
Key Performance
Product Quality Improvement
Strengthening Product Testing Capabilities
Product Quality Improvement Actions
GREE’s “Perfect Quality” management model diagram of
“Made in China, Loved by the World”
Introduction
ComplianceGovernance,UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Value
for Society
The Company has established the Measures for Administrationof Product Traceability and Recall Control, which define thetraceability and recall processes for Company products. Thesemeasures ensure traceability from raw materials to finishedproducts and effectively control product recalls and properhandling. The management system covers all stages fromsuppliers to product sales to consumers, ensuring traceabilitythroughout the product’s lifecycle.
All raw materials and components must have traceabilityrecords and markings, including batch numbers, productiondates, specications, and suppliers;All products are managed using barcodes, with eachbarcode number corresponding to the actual product.These barcodes serve as the primary identication markersfor the products. The Measures for Administration ofBarcode and Certicate have been formulated as the basisfor this management system;For export products, batch management is alsoimplemented, with export batch numbers corresponding toproduction order numbers;The Company’s Quality Control Department records andmanages quality information for all products, documentingdetails such as barcode numbers, export product batchnumbers, production dates, shifts, and specications of keycomponents.
The Company has established a product recall managementsystem in accordance with the Interim Provisions on ConsumerProduct Recall Management. This system enables the Companyto quickly and effectively recall any batch of non-conformingor safety-risk products from the market when necessary. TheCompany clearly denes that when any of the following issuesoccur with products already sold in the market or to distributors,a recall must be initiated:
The Company conducts at leastone simulated drill of the producttraceability and recall systemannually to ensure traceabilityand recallability from rawmaterials to nished products.
For recalled products, the Quality Control Department, TechnicalDepartment, Production Department, Operations Department,and Customer Service Center coordinate to determine theproduct handling strategy, including repair, rework, or disposal.In addition, the Company’s Customer Service Center conductsregular follow-up visits with users of recalled products, gathersfeedback, and maintains user satisfaction records.
Products that do not comply with relevant laws andregulations in the sales region;Products with dangerous quality defects that could harmthe safety of users or others’ personal or property safety;Products with mass quality issues;Products that, after delivery, show HSF non-complianceand require a recall according to laws, regulations, orcustomer requirements.
Gree Electric’s “simulated” product recall drill
In 2024, to ensure the e?ectiveness of the productrecall process and the Company’s ability to respondto sudden quality issues, Gree Electric organized a“simulated” product recall drill. The drill simulateda failure caused by insufficient strength of theinternal valve plate of the compressor, involvingcross-departmental collaboration. During thedrill, each department responded swiftly, strictlyfollowing the process from customer complaintreception, issue verification, recall confirmation toproduct quarantine and information dissemination,ensuring the smooth execution of the exercise.Through this drill, Gree Electric further enhanced itsproduct quality management and emergency recallresponse capabilities, laying a solid foundation forsafeguarding customer interests and maintainingthe Company’s reputation.
Product Traceability and Recall
Product Traceability Management
Product Recall ManagementProduct Recall Drills
Introduction
ComplianceGovernance,
UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
Enhancing User ExperienceGree Electric is committed to “customer satisfaction” as its service purpose, adhering to the servicephilosophy that “Your satisfaction is our top priority”, and establishing the concept of “service withoutlimits”. The Company provides comprehensive training for service personnel, including technicalskills, behavioral norms, and service safety, to achieve refined management and professionalservice. The goal is to achieve “zero complaints in after-sales service”.
The Company strictly complies with laws and regulations such as the Law of the People’s Republicof China on the Protection of Consumer Rights and Interests, and the Implementation Regulationsof the Law of the People’s Republic of China on the Protection of Consumer Rights and Interests.It continuously upgrades service policies and standards to better safeguard consumer interests,eliminate users’ concerns regarding after-sales services, and set higher demands for product quality.During the reporting period, the Company received CRAA installation and maintenance servicecertification for centralized refrigeration air conditioning equipment (Class A), air purifying airconditioning equipment (Class B), and domestic (commercial) refrigeration air conditioning equipment(Class D), with service level certication rated at six stars.
The Company continuously optimizes servicesacross all stages including pre-sale, in-sale, andafter-sale, committed to providing customers withquality-first pre-sale consultations, a welcomingin-sale experience, and worry-free after-saleservices.
During the reporting period, the Companylaunched several information technology projects,including intelligent work order assignment,service personnel mobility analysis, and systemlogic optimization, significantly improving theefficiency and quality of after-sales service andenhancing user satisfaction and loyalty.
Class A CerticateClass B CerticateClass D Certicate
Intelligent workorder assignmentsystem
Real-timeinformation
feedback
Transparentmanagement ofspare parts
Data monitoring
and analysis
User informationinteraction
Dissatisfactionhandlingmechanism
Comprehensiveservice networkcoverage
Customer Service Management System
Optimizing Customer Service Actions
Implementation of Smart CustomerService
Introduction
ComplianceGovernance,UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
In 2024, the Company launched its self-developed B2Be-commerce platform - the GREE Online Bulk Ordering System.This platform aims to comprehensively integrate the entiresupply chain for distributors, including procurement, warehousingand logistics, terminal sales, and after-sales services, throughdigital solutions. It addresses the issue of fragmented distributionchannels and promotes deep integration between online andoffline channels. The system provides distributors with a one-stop service, including online ordering, logistics delivery, projectmanagement, and business analysis functions. This helpsbusinesses efficiently manage products, orders, shipments,settlements, and customer relationships, enabling thedigitalization and automation of the sales process.
The Company pays close attention tothe increasingly refined service needs ofusers. To address challenges such as airconditioner cleaning di?culties and pricingissues, GREE has introduced initiativeslike the “GREE Spring Breeze in March”campaign. This campaign offers free airconditioner inspections and testing servicesto hundreds of thousands of consumers,as well as on-site maintenance services,including cleaning air conditioner lters andexterior components. Additionally, GREEengages with consumers through the“GREE Service” WeChat public account,offering interactive activities such as airconditioner cleaning knowledge quizzesand special promotions, enhancingcustomer satisfaction and engagement.
GREE Online Bulk Ordering System
“Spring Breeze in March” service campaignFor many years, Gree Electric hasorganized nationwide “3.15” (March 15)activities or o?-season “Spring Breeze”service campaigns, o?ering free ltercleaning, maintenance, and inspections.These initiatives have signicantlyenhanced users’ long-term serviceexperiences.
Gree Electric has established a comprehensive after-sales servicesystem that radiates the entire country and extends deeply intourban and rural areas. By the end of the reporting period, theCompany had set up customer service centers at sales companiesin 31 regions across the country, with over 15,000 authorized after-sales service points, achieving 100% service network coverage.The Company has assembled a service team of more than 110,000professional service personnel, ensuring timely and professionalservice, effectively enhancing service efficiency and quality, andcontinuously improving customer satisfaction. This strong after-sales service infrastructure provides robust support for the marketcompetitiveness of GREE products.The Company has implemented a “Four-Hub” strategy - rening theservice network, standardizing service processes, professionalizingservice personnel, and digitizing service management, to establishan e?cient after-sales service system. Specic measures include:
Establishing anationwide uniedcustomer complainthandling mechanism toensure swift response;
Optimizing the spareparts supply chainto ensure timelyavailability of repairparts;
Implementing a quicksettlement mechanismfor service fees toenhance the motivationof service providers.
Improving the qualityinformation collectionand feedback systemfor closed-loop servicemanagement;
Strengthening After-Sales Service
Service Management InnovationValue-Added Services
Introduction
ComplianceGovernance,
UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
The Company strictly adheres to the “three guarantees” policy (repair,replacement, and return), ensuring quick response and resolutionfor customer complaints and negative feedback, thus protectingcustomer rights. Additionally, the Company has developed andimplemented the Measures for Administration of Rapid Response toCustomer Service, authorizing customer service representatives toprovide remedies such as store credits, extended warranty services,or free cleaning when necessary to enhance customer satisfaction.For special customer complaints, personalized consolation plansare offered to effectively alleviate customer dissatisfaction. Duringthe reporting period, the Company implemented a 24-hour rapidresponse standard to customer inquiries, successfully resolvingclient issues, with a customer feedback response rate of 99.99%.The Company values customer complaints and feedback,considering them valuable insights for the high-quality developmentof the business, with multiple communication channels, includingphone, WeChat public account, online platform customer service,email, and postal mail available to protect consumer rights.Furthermore, the Company has established a standardized customerservice information handling process, creating a closed-loopmanagement system that includes problem reception, classication,tracking and supervision, and result feedback, ensuring that everycomplaint is resolved promptly and e?ectively.
The Company regularly conducts statistical analysis ofcomplaint data to identify service gaps and continuouslyoptimizes service processes to enhance customer satisfaction.In addition, it conducts annual customer satisfaction surveys,with results showing that customer satisfaction has remainedabove 99% for three consecutive years, demonstrating aconsistent year-on-year improvement trend.
Professional after-sales service personnel are the fundamentalguarantee of product quality and service. With years of experienceand a strong installation team, along with a rigorous supervisionsystem, the Company ensures the effective guarantee of GREEair conditioner installation quality. During the reporting period, theCompany strengthened the promotion and education of installationstandards, enhancing the installation skills and professional ethicsof installers; implemented a quality inspection and supervisionmechanism, with sales companies and service points assigninginspectors to conduct irregular inspections to ensure installationquality. The headquarter compiles and reviews the after-salesservice performance KPIs of nationwide sales companies andservice points on a monthly basis, providing commendations orcritiques based on the results.
Customer Satisfaction
2022
99.05%
99.61%
99.88%
Year20232024
100%
Awarded “National Enterprise (After-SalesService) Competitiveness 5A Benchmark Unit”title
In March 2024, at the “First National StandardEnterprise Competitiveness Evaluation NormsPromotion Conference and New Era EnterpriseCompetitiveness Development Forum”, Gree Electricwas awarded the title of “National Enterprise (After-Sales Service) Competitiveness 5A Benchmark Unit”.
Handling of Customer ComplaintsCustomer Satisfaction
Improvement in Professional After-Sales Service
Introduction
ComplianceGovernance,UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Value
for Society
In terms of enhancing the professional skills of after-sales service personnel, the Company develops management documentseach year, including the On-Site Service Manual and Technical Guidance Manual for New Products, to guide after-salesservice teams across various regions in keeping up with new products, technologies, and requirements. The Companyorganizes irregular technical skills training sessions nationwide every year to enhance service capabilities. Additionally,through the “GREE After-Sales Engineer” WeChat public account, the Company provides frontline service personnel with self-service features such as national standards, product services, installation specications, and fault handling. The platform alsoperiodically releases materials on product introductions, installation guidance, and more, empowering service personnel toengage in self-learning and skill improvement, ultimately o?ering higher-quality service to end customers.
2024 Top 100 Chinese Service Brands
2024 Annual Household Appliance Industry
User Satisfaction Index:
“GREE After-Sales Satisfaction Ranked First”
2023 Household Appliance After-SalesService Leading Enterprise Certicate
A Letter from Consumer to Dong MingzhuNational Standard Five-Star After-Sales Support EnterpriseNational Top 10 After-Sales Support Enterprises
Customer Service Awards
Introduction
ComplianceGovernance,
UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
Building Sustainable SupplyChainsThe Company adheres to the principles of sustainabledevelopment and is committed to building an efficient, green,and responsible supply chain system to enhance social andenvironmental well-being. Through continuous optimization ofsupply chain management processes, the Company aims toimprove resource utilization efficiency, reduce environmentalimpact, and actively fulll its social responsibilities, respects andsafeguards labor rights, and collaborate with suppliers to createa sustainable future.
To fully guarantee the Company’s production and satisfycustomer needs as much as possible, the Company hasestablished and improved the supplier lifecycle managementsystem encompassing admission assessment, categorizationcontrol, regular audit and elimination. It also has establishedand strictly follows the Measures for Administration of Suppliers,controlling the supply chain from the source to ensure stableproduct quality and supply chainThe Company has implemented a robust supplier admissionsystem, conducting comprehensive evaluations throughstrict assessments, on-site inspections, and other methods.It thoroughly assess factors such as product quality controlcapability, production capacity, technical level, and pricing.Additionally, the Company analyzes potential risks in supplierpartnerships, including supply stability and nancial health, andformulates appropriate risk management strategies to addresspotential challenges.
The Company has established the Measures for Administration of Supplier Quality Evaluation to implement a tiered managementapproach for suppliers, ensuring that their quality performance meets the Company’s requirements. Adhering to the principles ofcomprehensiveness and fairness, the Company regularly evaluates suppliers’ performance across different dimensions, includingquality, delivery, and service. This e?ectively monitors supplier performance and ensures the stability and high quality of the supplychain. For underperforming suppliers, the Company provides specific improvement recommendations and support to help themenhance management levels and product quality.The Company enforces a strict periodic audit and elimination mechanism, conducting annual reviews and human rights risk auditsfor high-risk suppliers, as well as some Tier 2 (components) and Tier 3 (raw materials) suppliers to ensure continued compliance withthe Company’s requirements, demonstrating its commitment to protecting product quality and consumer rights. Through reviews, theCompany identies and addresses issues with suppliers in a timely manner, ensuring the stability and sustainability of the supply chain.For suppliers failing to meet requirements, the Company will take corrective actions and, if necessary, initiate the elimination process tomaintain the overall quality of the supply chain.
Basic information
change
Finished product
warehousing
Quality control
ESG standards
Work safety
Inspection equipmentand capability
Change in name, productionaddress, and production
qualication
Management and controlmeasures for nished productwarehousing
Including the implementationof quality control measuresand inspection standardsduring production
Including the protectionof workers’ rights and
interests
Work safety protectionmeasures
Inspection equipmentcondition and its inspection
capability
Supplier Management
Supplier Categorization
Supplier Audit
Admission of Suppliers
Main content of Gree Electric’s supplier audit
Introduction
ComplianceGovernance,
UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
The Company strictly prohibits any involvement in or initiation of activities that contributeto human rights violations or environmental degradation caused by armed conicts. Tothis end, the Company adheres to and requires its suppliers to comply with both domesticand international conventions, regulations, and industry initiatives regarding responsibleminerals. It has developed and published Gree Electric Conict Mineral Policy, pledgingto not using minerals directly or indirectly sourced from conflict-affected and high-riskareas in its products, including but not limited to minerals such as tin, tantalum, tungsten,and gold (3TG). The Company has communicated to its suppliers and require them tocomply with it. In addition, it mandates that suppliers provide written declarations andestablish a raw material traceability system to ensure that the products supplied to theCompany do not contain the above mentioned conict minerals.The Company conducts annual conict minerals due diligence on suppliers of productscontaining conict minerals, following the Conict Minerals Reporting Template (CMRT/EMRT) provided by the Responsible Mineral Initiative (RMI). Suppliers are requiredto perform due diligence on their upstream suppliers concerning conflict minerals;by regularly disclosing the results of its due diligence investigations, the Companycontinuously enhances the transparency of its conict minerals due diligence outcomes.During the reporting period, the Company investigated a total of 652 suppliers and traced360 smelters and reneries, of which over 40% have obtained RMAP certication.The Company places signicant emphasis on the sustainable development of its supplychain. The agreements with suppliers incorporate clauses covering environmentalprotection, labor practices, and other areas to promote the growth of a green supplychain. In addition, the Company actively promotes integrity, signing integrity agreementswith suppliers and providing channels for feedback. In addition, it strengthens themanagement of conflict minerals, establishing a traceability system to ensure thecompliance of raw materials. Through various communication activities, the Companyfosters in-depth interactions with suppliers, striving for mutual benefits and shareddevelopment.The Company is committed to building an e?cient, energy-saving, and environmentally-friendly supply chain system, actively promoting green manufacturing and sustainabledevelopment. By the end of the reporting period, ve of the Company’s subsidiaries havebeen included in the Ministry of Industry and Information Technology’s list of green supplychain management enterprises, including GREE (Shijiazhuang) Electric Appliances Co.,Ltd, GREE Changsha HVAC Equipment Co., Ltd and GREE (Zhongshan) Small HomeAppliances Co., Ltd.
During the reporting period
During the reporting period
The Company
did not
reject any potential suppliers orterminate relationships
with anysuppliers due to non-compliancewith environmental or socialrequirements.
The Company places significant importance on theESG performance of its suppliers and has issued theSupplier Code of Conduct, which outlines specificmanagement requirements for suppliers regardingbusiness ethics, health and safety, employee rightsprotection, and environmental protection. The Companyconducts comprehensive environmental and socialimpact assessments for all suppliers. Additionally,the Company requires all new suppliers to commit toadhering to the Business Social Compliance Initiative(BSCI) Code of Conduct, ensuring compliance withinternational standards on social responsibility, laborrights, and environmental protection, thus promotingthe sustainable development of the supply chain.
Conict Minerals Management
Sustainable Supply Chains
Supplier ESG Management
The Company investigated atotal of
Of which over
Traced
suppliers
40%
have obtained RMAP certication
smelters and reneries
Introduction
ComplianceGovernance,
UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Value
for Society
The Supplier Code of Conduct includes the following social responsibility-related content:
The Supplier Code of Conduct includes the following environmental protection-related content:
Environmental protection requirements
Toxic and hazardous substance control
Warehouse, materials handling, and production line management
Green supplier management
?Evidence of compliance with environmental laws and regulations: Suppliersare required to provide documents or reports demonstrating their compliancewith national and regional environmental regulations, including compliance withwastewater discharge, air emissions, waste disposal, and other related aspects.?Plans and objectives to reduce environmental impact: Suppliers must providespecic improvement plans and objectives, such as reducing carbon footprints,improving energy e?ciency, and minimizing waste generation.?Presence of toxic and hazardous substances in products: Suppliers arerequired to provide relevant test reports proving that their products contain no toxicand hazardous substances regulated by laws such as the EU RoHS (Restriction ofHazardous Substances).?Hazardous substance testing equipment: Suppliers must possess necessaryhazardous substance testing equipment or send samples to third-party accreditedtesting agencies for testing and provide corresponding test reports.?Identication and segregation of toxic and non-toxic substances: Suppliersmust ensure that toxic and non-toxic substances are clearly identied and storedseparately in warehouses, material handling areas, and production lines to preventcross-contamination.?Identication of pollution risks in the production process: Suppliers mustidentify potential environmental pollution points in the production process andimplement corresponding control measures.?Green supplier certication process and list: Suppliers should have a cleargreen supplier certication process and maintain a list of certied green suppliers.?Hazardous substance control agreement: Suppliers must sign hazardoussubstance control agreements with green suppliers or require the suppliers to providerelevant commitment letters, ensuring that these suppliers are provided with e?ectivethird-party accredited test reports on hazardous substance content led.Note: Under the same conditions, the company will give priority to supplierswho meet the aforementioned labor management requirements and ensure thatemployees' rights and interests are fully protected.
Environmental and social responsibility system certication: Acquisition of ISO 14001
and ISO 45001 certications is one of the manifestations of a company’s responsiblebehavior. Furthermore, holding certicates such as SA8000 (Social Responsibility), BSI(Business Social Indicators), and C-TPAT (Customs-Trade Partnership Against Terrorism)further demonstrates the company’s e?orts in social responsibility.
Compliance with labor laws and regulations:This includes, but is not limited to, theprohibition of any form of forced labor, ensuring that employees’ fundamental human rightsare respected. The use of child labor should be avoided, and it must be ensured that allworkers are at least 16 years old. Furthermore, there should be no discrimination based onfactors such as age, gender, race, religious belief, sexual orientation, or physical conditionduring processes such as recruitment and promotion.Workplace health and safety:Providing a safe and healthy working environment is afundamental requirement. This includes, but is not limited to, providing necessary personalprotective equipment, implementing special protective measures for toxic or hazardousjobs, conducting regular health check-ups to monitor employee health, establishinge?ective accident prevention and management systems, regularly inspecting specialequipment and maintaining relevant records, ensuring re safety and fully equippedfacilities, and conducting re evacuation drills.Working hours and rest/leave system:Companies shall comply with national regulationsregarding working hours, reasonably arrange for employee rest and leave, and abide bylocal labor laws regarding paid overtime to ensure proper compensation for overtime work.Working hours and rest/leave system:Companies shall cover social insurance foremployees, ensure that each employee’s income meets or exceeds the local government’sminimum wage standard, and provide relevant wage structure and payment records asproof.Freedom of association:Companies shall respect employees' rights to freedom ofassociation and collective bargaining.
Introduction
ComplianceGovernance,
UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
The Company is committed to fostering an open, fair, healthy, andtransparent competitive environment within its supply chain. To thisend, the Company has established a self-recommendation platform forsuppliers and requires both suppliers and relevant internal personnel tosign Integrity Agreement, Self-Discipline Declaration, and CommitmentLetter. Additionally, the Company regularly conducts anti-corruption andanti-bribery awareness campaigns and training, reinforcing the foundationof business ethics.
The Company places a high value on empowering its suppliers. Forsuppliers identified as having risks during regular evaluations, theCompany proactively assists them with corrective actions. Additionally,the Company regularly organizes supplier training and communicationactivities, promoting continuous improvement in suppliers’ quality controland sustainability awareness and capabilities.
Complaint Hotline:
(0756)8669807Complaint E-mail:
jiancha@gree.com.cn；caigoujicha@cn.gree.com
Gree Electric Hosts O?ine Training on Hazardous Substances for Suppliers
In 2024, the Company organized an offline training session forsuppliers focused on hazardous substances, aiming to enhancesuppliers’ understanding and implementation capabilities regardingglobal hazardous substance control laws and regulations, ensuringthat the supply chain meets green and environmental standards.The training incorporated detailed explanations of internationalregulations such as the EU RoHS Directive, key REACH compliancerequirements, new packaging material TPCH requirements, updateson France’s mineral oil legislation, POPs management regulations,the US Toxic Substances Control Act (TSCA), and the Battery Act.The training also included a comprehensive introduction to GREE’sown restricted substances environmental requirements. The trainingreceived signicant attention and support from suppliers, with 120suppliers participating. After the training, the Company conducted anassessment, with 245 participants taking the exam. The pass ratewas 91%, indicating that the majority of suppliers had mastered thecore knowledge covered in the training.
During the reporting period, in terms of supplier training, the Company
held
covering
the cumulative training duration was
with more than
training sessions
suppliers
hours
1,300
participant
Supplier Integrity Construction
Feedback Channels
Supplier Communication and Training
Introduction
ComplianceGovernance,UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
Industry Collaboration and DevelopmentIn the ever-changing waves of the industry, the Company has been adhering to the philosophy of openness, cooperation, and mutual benet, considering industry collaboration as a key engine to drive bothits own development and the advancement of the industry. The Company actively engages in di?erent industry seminars and conferences, sharing experiences and exchanging ideas with peers, exploringnew pathways for industry development. It proactively establishes deep strategic partnerships with upstream and downstream enterprises, collaborating closely across various aspects such as raw materialsupply, product research and development, and market expansion, achieving e?cient resource integration and complementing each other’s advantages. The Company also actively participates in theformulation of industry standards, contributing to the regulation of market order and the improvement of the overall industry level.
Gree Electric Co-hosts Technical Exchange Conference within the Industry
Gree Electric Participates in the SNEC 17th International Photovoltaic Power Generation and Smart Energy(Shanghai) Conference
To thoroughly implement the decisions made by the Central Government, State Council, and provincial andmunicipal governments regarding large-scale equipment updates and the replacement of old consumer goods,the Company, together with the Sichuan Energy Conservation Association and Sichuan Construction TechnologyAssociation, co-hosted the “Sichuan Province 2024 Large-Scale Equipment Update and HVAC Industry TechnicalExchange Summit”, aiming to explore methods for equipment upgrades in the HVAC and refrigeration sectors withinexisting buildings, promote technological advancements, and encourage the transformation and upgrading of keyindustries, thus driving high-quality development in the HVAC sector.
In June 2024, Gree Electric participated in the SNEC 17th International Photovoltaic Power Generation and SmartEnergy (Shanghai) Conference & Exhibition at the National Exhibition and Convention Center in Shanghai. At theevent, Gree Electric showcased a variety of green products, including the PEDF system, energy storage temperaturecontrol, and industrial and commercial energy storage solutions. The Company also held presentations centeredon GREE’s PEDF technology and engineering cases related to photovoltaic-storage AC applications. Additionally,the Company was invited to participate in the “Top Ten Highlights” presentation event, where it shared the standouttechnologies of the GREE PEDF Air Conditioning System and the GREE PEDF Zero-Carbon+ system. The “GREEPEDF Zero-Carbon+” system won the “Terawatt Diamond Award”, while the “GREE PEDF Energy Station” wasawarded the “Energy Storage Application Excellence Award”. These accolades received high praise from industryexperts and attendees, further showcasing Gree Electric’s technological strength in the photovoltaic-storage sector.
“Sichuan Province 2024 Large-Scale Equipment Update and HVAC Industry
Technical Exchange Summit”
The SNEC 17th International Photovoltaic Power Generation and Smart Energy
(Shanghai) Conference
Introduction
ComplianceGovernance,UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
As of the end of the reporting period, Gree Electric has formulated 14,000 corporate standardsand has shared over 3,600 GREE component standards with the industry chain. The Companyhas led or participated in the formulation and revision of 873 national and international standards,including 64 international and foreign standards. Additionally, the Company actively undertakes orparticipates in 153 domestic and international standardization organizations, including 40 foreignstandardization organizations. It holds 37 expert positions in organizations such as ISO and IEC. In2024, GREE participated in and released 73 new standards.
International and foreign standard64
National standard341Industry standard186Group standard24Group standard258
Total873
Zhuhai GREE Intelligent Equipment Co., Ltd. establishes strategic partnershipwith OmronIn July 2024, Gree Electric’s subsidiary, GREE Intelligent Equipment, signed astrategic partnership agreement with Omron Automation. Both parties will collaboratein various fields, including rail transportation, automotive, electronics, photovoltaiclithium batteries, robotics applications, automation engineering system integration, andsmart warehousing logistics.By combining GREE Intelligent Equipment’s R&D capabilities with Omron’s automationtechnologies, both parties will leverage their respective strengths to jointly provideefficient, reliable, and professional smart manufacturing solutions. This partnershipaims to drive automation upgrades across industries and support the high-qualitydevelopment of China’s manufacturing sector through “precision craftsmanship”.
Scene of signing ceremony of strategic partnership
Standard Formulation
Standard Formulation and Revision of Gree Electric
Type of StandardQuantity (Nos)
Introduction
ComplianceGovernance,UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
GREE Was Selected for 38 National StandardVerication Points Approved for the First Time
The Company’s national standard verication point forrefrigeration equipment energy conservation has beenincluded in the list of approved verification points,making it one of the 38 national standard vericationpoints approved for the rst time in the country. It isalso the only company from the refrigeration industryto be included. This marks another achievement inthe Company’s implementation of the “StandardizationLeadership Strategy”, further contributing to the high-quality development of the industry.
On September 10, 2024, Chairperson Dong Mingzhu, as therst entrepreneur from China’s refrigeration industry to serve asthe Chairman of the Refrigeration Compressor Subcommittee,held the 13th plenary meeting of the International RefrigerationCompressor Subcommittee (ISO/TC86/SC4) in Hefei. Themeeting was attended by 32 representatives from 8 countries,including China, the United States, Japan, Germany, and theUnited Kingdom. The Company presented its rst proposal for astandard on Compressor Vibration and Noise Evaluation.
On June 27, 2024, the Company was approved to establish the Guangdong Provincial Advanced Photovoltaic, Energy Storage, DirectCurrent System Quality Standard Laboratory.
In May 2024, Gree Electric was awarded the Guangdong ProvinceStandardization Outstanding Contribution Award for StandardOrganization with a high score. At the same time, the Company’sleadership in formulating the standards GB/T 38356-2019 QualityManagement - Guideline for Customer-Oriented Innovation Cycleand GB/T 37227.1-2018 Evaluation Method and Testing Methodfor Energy Performance of Refrigerating Systems - Part 1:
Energy-Storage Air Conditioning Systems earned the Second and ThirdPrizes, respectively, in the Guangdong Province StandardizationOutstanding Contribution Award for Standard Projects.
In July 2024, the Company earned the titleof “Leading Standardization Enterprise inGuangdong Province.”On December 25, 2024, the Companywas honored with the title of “OutstandingContribution to Standardization in 2024”by the National Technical Committee onRefrigeration and Air Conditioning EquipmentStandardization.
Introduction
ComplianceGovernance,
UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Value
for Society
Introduction
ComplianceGovernance,UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
Talent Recruitment andEmploymentThe Company, in strict accordance with the relevantlaws and regulations, including the Labor Law of thePeople’s Republic of China, the Labor Contract Law ofthe People’s Republic of China, and the Provisions onthe Prohibition of Using Child Labor, has establisheda comprehensive employment management system toensure compliance in recruitment, hiring, termination,compensation and benefits, working hours, holidays,and other employment matters.
The Company is committed to respecting and caring forevery employee. It has revised and implemented theMeasures for Administration of Employee Recruitment,standardizing the management of employees acrossthe Company and its subsidiaries. Adhering to theprinciples of “open recruitment, equal competition, andmerit-based selection”, it ensures equal employmentopportunities, equal pay for equal work, and iscommitted to preventing the use of child labor orforced labor. It also actively works to avoid any formof discrimination based on nationality, race, religion,ethnicity, gender, age, disability, marital or parentalstatus, and respects employees’ rights to freelyassemble and associate in accordance with the law.This guarantees that each employee can thrive in adiverse, equitable, and inclusive work environment.Furthermore, the Company ensures that labor contractsare signed based on equality and willingness. It strictlyfollows legal provisions and contractual agreementswhen performing, renewing, or terminating laborcontracts, thereby ensuring that all employmentpractices are compliant with laws and regulations.
Gree Electric places great emphasis on collectivenegotiation, continuously improving negotiationskills and capabilities, strengthening thedevelopment of a professional workforce,and promoting the efficient implementation ofcollective bargaining activities. These effortseffectively protect the legal rights and interestsof employees, ensuring mutual benefit andcollaboration between the Company and itsworkforce, laying a solid foundation for theestablishment of harmonious and stable laborrelations. The Company has been recognizedas a model for enterprise labor and capitalcommunication and negotiation in GuangdongProvince in 2023, a typical enterprise for collectivebargaining in Zhuhai City in 2022, and has wonthe first prize for excellent cases in collectivebargaining. Upon deliberation and voting forapproval at the employees' representativecongress, the collective agreements were signedby the legal representatives of both parties,achieving 100% coverage of the collectiveagreements.
Compliant Employment
During the reporting period
Named to Forbes’ 2024 List of the World’s Best Employers
The Company did not experience any incidents of employment discrimination,harassment, child labor, or forced labor that violated labor human rights policies
no strikes
or lock-outs in the last three years
The employee laborcontract signing ratewas100%
and the social insurancecoverage rate for employees wasalso100%
Employer Honors
Collective negotiation
Introduction
ComplianceGovernance,UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
Indicator/Total number of employeesUnit/Person
202272,10072,30072,50072,70072,900
20232024
72,380
72,610
72,808
Number of employees by gender
Number of employees byage
Number of employees by joblevel
Number of employees by
employment type
21,075Numberof femaleemployees
23,83330 years oldand below16,34440 years old or
above
51,733Number of maleemployees
32,631
31 to 40years old
67,186Grassroots
Senior management
72,808
Number ofemployees under
labor contracts
5,373Mid-levelmanagement1,402Number of femaleemployees in mid-level management
Number of femaleemployees in seniormanagement
The Company adheres to the concept that “talent is the primaryresource”, establishing a scientific remuneration managementsystem and continuously promoting employee stock ownershipplans, offering special benefits for high-tech talents. Througha scientifically structured remuneration system and incentivemechanisms, it effectively stimulates employee enthusiasm,helping both employees and itself grow together and sharedevelopment achievements, achieving a win-win result.The Company strictly complies with national laws andregulations and, in line with its actual situation, has developedthe Measures for Administration of Wages, establishing astandardized and systematic salary management systemthat ensures employees to receive the legal and rightfulremuneration for their labor. It is committed to building a fairand competitive remuneration system consisting of fixed andvariable income. The variable portion of the salary is linked topersonal performance assessments and other dynamic factors,and this salary structure covers all employees.In addition, the Company continues to advance its talentincentive policies, fully leveraging the role of outstandingemployees as role models. To this end, the company hasestablished a diverse bonus system, including awards fortechnological progress, management innovation, rationalizationsuggestions, performance, and year-end bonuses. It alsoorganizes various honors activities, such as selectingoutstanding individuals, worker pioneers, gold medal employees,distinguished employees, and skill model workers, to encourageemployees to innovate and demonstrate their strengths.
The Company has established a long-term, e?ective incentivemechanism, continuously implementing the ESOP to attractand retain outstanding talents. This plan aims to incentivize andstabilize the retention of middle and senior management andbackbone employees, forming a community of interest betweenemployees and the Company, thereby enhancing employeecohesion and the Company’s competitiveness. Since 2021, theCompany has successively launched the rst, second, and thirdphases of its ESOP. The incentive scope of all three phasesincludes company directors (excluding independent directors),supervisors, senior management, and middle-level managersand key employees identified by the Board of Directors ashaving an important role in the Company’s overall performanceand medium- to long-term development.As of the end of the reporting period
the number of employees covered by the
Company’s ESOP is as follows
The rst phase ofthe ESOP covered employees
4,513
The second phase of the ESOP covered
3,170
employeesThe third phase of the ESOP covered
5,141employees
Remuneration Management
Remuneration Management System
Employee Stock Ownership PlanEmployee Structure
Introduction
ComplianceGovernance,
UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
The Company fosters a learning organization and promotes mechanismssuch as regular learning for grassroots management cadres to facilitate theinheritance of management experience, the sharing of R&D technology,and the enhancement of skill levels. For key groups, it focuses on keyprograms such as the “Cornerstone Program” for supervisor trainingcamps, the “Spark Program” for team leader training camps, and theuniversity talent development program, providing comprehensive and multi-level training support for grassroots managers and fresh graduates. Relyingon the national high-skilled talent training base construction project, theCompany continues to nurture high-skilled professionals, further enhancingits core competitiveness.
The Company is committed to creating a comprehensive growth platform for employees, building a practical and e?cienttalent culture, and consistently adhering to the concept of self-driven talent development. To support the Company’sstrategic goals and the business development needs of each unit, the Company has formulated and implemented acompany-wide learning and development plan, covering four levels: company-level, department-level, office-level, andindividual-level. The annual training demand survey is conducted from four dimensions: organizational strategy, businessdevelopment, personnel skills, and cultural literacy. It adopts a “dual-track linkage” approach at both the Company andunit levels. This method helps identify training needs for the strategic goals from top to bottom, while also rening trainingrequirements for business skills improvement from bottom to top, nally resulting in a four-level training plan. The contentof the training plans at each level complements each other and focuses on key areas, ensuring that the learning anddevelopment objectives of “connecting strategy with performance” are e?ectively implemented. This framework providesstrong support for both the Company’s strategic implementation and the enhancement of employee capabilities.
During the reporting period
Four-level learning training plan
system involving all staffLevelStrategic level
Business level
Performance level
Individual level plan
(level 4)
Working performance
improvement
Occupational developmentchallenge
Knowledge and skillreserves
Department level plan(level 2)
Project operation of key businessBusiness innovationdevelopment
Team developmentconstruction
Management
experienceinheritance
Technical experienceinheritanceIn-depth training of key groupsDevision level plan (level 3)
Company-level plan (level 1)
Strategy supportfor implementation
Key grouptraining
Key businessdevelopment
Promotion ofcultural qualityTraining planTraining focus
the total training hours for all employees reachednearly
1.18
million hourswith the average training hours per employee over
hours
Employee Development and TrainingThe Company has always considered talent development as the corestrategy for its business growth, continuously performing comprehensivetraining programs and effectively promoting the quality building of talentteams. By carrying out all-encompassing training, implementing scienticperformance evaluations, and ensuring smooth promotion channels, it fullyunleashes employees’ potential. At the same time, it deepens cooperationwith universities and industries, promoting the integration of production andeducation to reserve innovative forces for the Company’s development.Employee Training
Training Plan System
Four-Level Training Plan
Introduction
ComplianceGovernance,UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Value
for Society
The Company continues to deepen its talent developmentstrategy by empowering employee growth and businessdevelopment through a systematic and efficient trainingsystem. During the reporting period, the company-level trainingplan focused on five core dimensions, namely the strategicimplementation support, key group training, building a learningorganization, business development priorities, and systemmanagement operations. These plans were jointly boosted andimplemented by the HR Department and various units. Duringthe training implementation process, the Company places greatemphasis on the practical application and transformation of thetraining outcomes. Each project is assigned a dedicated personfor supervision, and the Company strictly adheres to the Plan-Do-Check-Act (PDCA) cycle management mechanism to ensurecontinuous improvement in the training e?ectiveness.
“Cornerstone Program” Supervisor Training CampIn 2024, Gree Electric’s supervisor training camp was targeted and problem-oriented, focusing on 160 grassrootsbackbones across 68 units within the Company. By establishing a unique training model and reconstructing the coursesystem, the camp emphasized three main directions: “solidifying fundamental management knowledge, fostering a sense ofresponsibility and accountability, and learning risk avoidance methods”. The program adopted a blended learning approach,combining both online and o?ine activities, including team-building exercises, management experience seminars, and visitsto well-known enterprises, to comprehensively enhance supervisors’ overall competence. The purpose of this training campis to build a grassroots management team “aware of positioning, skilled in management, excels in team performance, andstrong in compliance knowledge”. This serves as a solid talent guarantee for fullling the Company’s strategic goals andensuring its sustainable development.
the Company successfully completed
level 1 training programstraining over
43,000 participantswith an average annual training satisfactionrate of
96.85%
“Cornerstone Program” supervisor training camp of 2024Program” supervisor training camp of 2024
Training Program Construction
As of the end of the reporting period
Introduction
ComplianceGovernance,UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Value
for Society
The Company always adheres to the concept of “self-cultivating talent” and views fresh graduates as the driving force for the Company’s future development. To help new employees quickly t in and becomecompetent in their roles, the Company has developed a systematic and comprehensive training plan. At the beginning of their employment, new employees undergo centralized training covering corporateculture, management systems, and core business processes to help them fully understand the Company’s operations. Additionally, the HR Department closely collaborates with relevant departments todesign departmental training plans based on the competency models for each role. The Company also employs mentorship programs and “master-apprentice” systems to accelerate new employees’ learningand transformation, helping them to quickly acquire the necessary skills in performing their work duties e?ectively.
During the reporting period
the Company provided reimbursement support foreducational and skill level improvement expensesto over
1,100
employeeswith a total reimbursement amount exceedingCNY
million
The Company highly values the personal growth anddevelopment of its employees, actively encouraging themto enhance their educational qualifications and professionalcertications. It has established the Measures for Administrationof Training Funds, specifying that employees who have obtaineda diploma (associate, bachelor’s, or master’s degree) or earneda professional qualication certicate related to their current jobfrom the national vocational qualification directory may applyfor reimbursement of the related expenses after meeting theeligibility requirements through the approval process.
Scene of Class of 2024 Graduates’ Onboarding Training
“Starry GREE” Class of 2024 College Graduate Onboarding and Training Program
In response to the Company’s rapid development needs and to foster high-quality talent deeply aligned with theCompany’s culture and strong in professional abilities, Gree Electric launched the “Starry GREE” class of 2024 collegegraduate training program. This program targets all newly graduated college students at the Company’s headquarters andsubsidiaries. The program includes specialized, customized, and distinctive training projects, and organizes onboardingceremonies to enhance the sense of occasion and fulllment for new employees, helping graduates transition from campuslife to becoming part of the GREE family, facilitating their smooth integration into the workplace.
New Employee Training
Educational and Professional QualicationSupport
Introduction
ComplianceGovernance,
UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
Gree Electric has established a scientificand transparent performance evaluationand promotion system based on fairnessand justice, motivating employees to makecontinuous improvement. In addition, itplaces great emphasis on the enhancementof feedback and appeal mechanisms toensure that employees receive timely andeffective feedback during the performanceevaluation process.To standardize and strengthen employeeperformance management, improve workperformance and capabilities, and drive therealization of the Company’s strategic goals,GREE has revised and implemented theMeasures for Administration of EmployeePerformance. Additionally, each userdepartment has formulated its own secondaryperformance management guidelines to betteraddress specic management requirements.Employee performance evaluations areconducted on a monthly and annual basis,focusing on goal achievement and workoutcomes, with actual performance output asthe core criterion for evaluation. The resultsare distinctly differentiated and objectivelyreflect the performance differences amongemployees. This forms a basis for applyingresults such as “rewarding the top performersand penalizing underperformers”, whilemotivating continued improvement in bothorganizational efficiency and employeecompetence.
If employees have any objections to the current performance evaluation results, they can rst provide feedback and communicate with their immediatesupervisor; if after communication, an agreement is not reached, employees may submit a written appeal to the corresponding user department during theperformance announcement period. The user department receiving the appeal should promptly communicate with the employee and provide feedback onthe handling of such matter to ensure proper resolution.If employees have concerns regarding the fairness or impartiality of the performance management process by their department or supervisor, they maysubmit a written request to the HR Department for review. The HR Department will conduct an investigation, verify the facts, and take fair and appropriateaction based on the ndings, ensuring transparency and credibility in the performance management process and safeguarding the legal rights of employees.
The Company has always regarded talent as its most valuable asset and is committed to building a scientic and well-structured talent pipeline system.For technical and management employees, the Company has innovatively created three career development pathways: “Professional, Administration,and Comprehensive Development”, o?ering employees a diversied range of growth options. For frontline employees, the Company has established acomprehensive skills grading mechanism to encourage them to rene their skills and enhance their professional expertise. At the same time, for employeeswith excellent performance, the Company will prioritize the provision of promotion opportunities or support for them in applying for internal competitions,ensuring that outstanding talent is recognized and can emerge successfully. This system aims to achieve a win-win situation where both individual careerdevelopment and the Company’s strategic objectives are met.
Vertical developmentExecutivesExpert designers
Senior designers
AdvanceddesignersDesignersDesign o?cers
Managementdirection
Professionaldirection
Middle-level
cadresDivision headsTeam leaders
Specialists
Vertical development
Performance Evaluationand Promotion
Performance Evaluation
Performance Feedback and Appeals
Promotion Channels
Employee Career Development Pathways
P
rod
u
ct
ion
oper
a
tion
Adm
inistration
function
Marketing
and
salesNewemployeesLateral developmentProcess
quality
Technology
R&D
Introduction
ComplianceGovernance,
UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
The Company actively explores a new model of university-enterprisecooperation based on “resource sharing and mutual integration”, establishinga comprehensive and multi-level industry-academia-research collaborationecosystem. Currently, the Company has built deep partnerships with over 40key universities, regularly hosting university-enterprise exchange conferencesto establish efficient communication channels between both parties; inaddition, the Company has partnered with several universities to jointlydevelop specialized courses integrating cutting-edge industry technologies intoeducational practices, deepening the integration of industry and education.This collaboration aims to foster versatile talents that meet the demands of theindustry. Furthermore, the Company successfully hosted its first “UniversityStudent Innovation Practice Camp”, attracting hundreds of outstandingstudents from across the country to the Company headquarters for in-depthexchanges and practical explorations, igniting innovative thinking. Throughdiverse campus recruitment collaborations, the Company has proactivelyidentied and reserved a pool of high-quality and innovative talents, ensuring acontinuous infusion of energy into the Company’s long-term development.
Class of Special CoursesKey Universities and Enterprises Exchange Meeting
University Student Innovation Practice Camp
University-Enterprise Cooperation
Gree Electric’s 2024 College Student Innovation Practice Camp, empowering 100 students’ career development
In August 2024, Gree Electric held the “Create and Share” GREE Week - the2024 College Student Innovation Practice Camp - in Xiangzhou District, Zhuhai.This event gathered 100 outstanding students from top universities across China,including Shanghai Jiao Tong University, Xi'an Jiaotong University, HuazhongUniversity of Science and Technology, and Zhejiang University. The practice campincluded activities such as exhibition hall visits, hands-on workshops, technologyinnovation courses, career planning sessions, and one-on-one (1v1) interviews,helping the students clarify their career plans and providing opportunities forexceptional students to be recruited through campus recruitment. In addition, theevent allowed the students to gain in-depth knowledge of GREE’s product portfolio,technological capabilities, and corporate culture. Gree Electric will continueto provide a broad development platform for young talents passionate aboutinnovation and contribute to the high-quality development of the manufacturingindustry by injecting continuous vitality.
Introduction
ComplianceGovernance,
UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
The Company strictly complies with legal and regulatory requirements and has developed andimplemented a series of policies, including the Measures for Administration of Work SafetyResponsibility, Measures for Administration of Work Safety Inspection and Assessment, Measuresfor Administration of Occupational Disease Prevention, and Measures for Administration ofOccupational Health and Safety Education. The Company adheres to the management philosophy
The Company adheres to the occupational health and safety policy of “people-oriented, worksafety, health protection, and life care”. It has established a Work Safety Committee, led by theChairwoman of the Board of Directors, to oversee, guide, and supervise all work safety activities.The Company strictly follows the principles of “graded responsibility and local management” and“whoever is in charge is responsible, whoever approves is responsible” ensuring the implementationof the “dual responsibility” work safety system. The Company conducts an annual review, revision,and improvement of the EHS Responsibility Agreement and ensures that all organizational levelssign such agreement. This process reinforces safety accountability at all levels, ensuring thatresponsibilities are assigned, measures are implemented, and robust protections are in place for thehealth and safety of employees. During the reporting period, the Company organized the signingof the EHS Responsibility Agreement by the primary safety responsibility holders across all units,totaling 105 copies. At the unit level, internal agreements were signed based on specic job roles toensure the safety responsibility implementation.
The Company has established and implemented the Measures for Administration of Hazard Sourceand Environmental Factor, which systematically identies, assesses, and controls internal hazards(sources) and environmental factors according to the safety risk identification and managementprocess. For identied risks, the Company adopts multi-level control measures such as elimination,substitution, engineering controls, labeling/warning/administrative controls, and personal protectiveequipment. For signicant or critical hazards that cannot be eliminated or substituted, it developsspecialized control plans. To ensure the continuous e?ectiveness of hazard source management,the Company conducts annual reviews of hazard source/environmental factor identification, riskassessments, and control measures, and promptly updates the evaluation results. This ensures thathazard sources remain under control, safeguarding the health and safety of employees.
Safety Risk Identication and Management Process FlowchartDivision ofworkplace andactivity scope
Hazard (source)
identication
Risk evaluation
Establishmentof risk controlmeasures and plans
Review of e?ectiveness
of measures and
plans andimplementation of
improvementsThe Company has been certied to ISO 45001 OccupationalHealth and Safety Management System
Occupational Health and Safety
The Company places great emphasis on occupational health and safety, continuously improvingits management systems by reinforcing responsibility implementation, optimizing processes, andenhancing technical measures. These e?orts comprehensively elevate the work safety standards,safeguarding the health and safety of employees.
of “equally emphasizing safety and production”and works on addressing weaknesses andstrengthening areas in safety responsibility,standards, technology, and safety competence.It actively advances the systematization andstandardization of work safety, with the goalof building a solid “safety culture”. Duringthe reporting period, the Company and itssubsidiaries have all received the OccupationalHealth and Safety Management Systemcerticate.
Occupational Health and Safety System
Work Safety Responsibility Management
Safety Risk Identication and Management
Introduction
ComplianceGovernance,UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
The Company has established a dual prevention system for safety risk classication and hazard identication. Each year, it organizes the identication and classication of potential hazards, and updatesand maintains the hazard source registry. It also draws a four-color safety risk distribution chart prominently displayed in the workshops to help employees identify and understand risk points, therebyfostering a culture of heightened safety awareness. In addition, the Company conducts hazard investigations regularly at the company, department/factory, and workshop levels, based on the risk levels.It shares ndings through corrective action notices, and timely conducts follow-up inspections to ensure compliance, forming a closed-loop management system for hazard identication, rectication, andverication, thereby ensuring comprehensive work safety across the organization.
Highlights of hidden hazard identication and elimination of the Company during the reporting period:
To effectively guide the safety management effortsacross the Company and establish a unified set ofsafety management standards, the Company’s safetymanagement team was tasked with developing andreleasing the Safety Management Manual to strengthenthe professionalization and standardization of safetymanagement. This manual is divided into two sections:
General Standards and Specialized Standards,encompassing a total of
safety managementstandards.
To prevent dust explosion accidents, the Company investedCNY
5.8
million to upgrade the powder coating lineswith explosion-proof upgrades and renovations. Byimplementing explosion venting, explosion isolation,and other control measures, it additionally installedflame arresters, one-way explosion isolation valves, andmonitoring control systems; set up real-time monitoringand automatic interlock shutdown alarms to monitortemperature, wind pressure difference, blowing gaspressure, and lock-air ash unloading status, ensuring worksafety on the powder coating lines.
The Company has continued its work to improve positionswith “high risk, high noise, high temperature, and high laborintensity”, implemented a total of
improvementprojects, utilizing automation technologies, ventilationsystem installation, and self-initiated modications toaddress challenges on the production site. These e?ortshave optimized working conditions, reduced labor intensity,and enhanced the overall working environment foremployees.
Preparation and Publication of the Safety
Management Manual
Enhancement of dust explosion prevention and
intrinsic safety
Improvement of “Four High” positions
Improvement of ventilation at workshopDust explosion prevention device
Safety Management Manual
Hidden Hazard Identication and Elimination
During the reporting period
Introduction
ComplianceGovernance,
UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
The Company places great emphasis on occupational disease prevention management and hasformulated the Measures for Administration of Occupational Disease Prevention. For employeesworking in occupational hazard positions, the Company provides appropriate personal protectiveequipment, such as safety shoes, earplugs, protective masks, AED automatic defibrillators, andfirst aid kits. In addition, it organizes annual occupational health checks and job-specific hazardassessments to effectively prevent occupational risks and injuries, maximizing the protection ofemployees’ physical health and safety. Additionally, in response to the Implementation Plan forPromoting Employee Mental Health Services by the Guangdong Provincial Federation of TradeUnions, the Company’s Labor Union, in collaboration with the Qianshan Sub-district O?ce in Zhuhai’sXiangzhou District, established an Psychological Well-being Station for employees in the rst halfof 2024. This initiative aims to support employees in maintaining both physical and mental health,cultivating positive psychological resilience.
To standardize the management and response procedures for production safety accidents,clearly dene the rescue responsibilities of each unit, and enhance employees’ ability to handleunexpected incidents, the Company has developed a comprehensive emergency plan along withseventeen specialized contingency plans. These plans were reviewed and validated through internaldiscussions and expert evaluations before being led with the emergency management department.In response to issues identied during drills, such as insu?cient professionalism, low participantengagement, and lack of practicality, the Company has made improvements across four key areas:
personnel organization, resource utilization, command methods, and process documentation,aiming to improve drill e?ectiveness and rene the emergency response framework.
Key Performance
During the reporting period, the Companyachieved a
100%
employeehealth check rate
maintained a
100%
coverage of employees' work injuryinsurance
The Company actively promotes the construction of safety culture and organizes regular,specialized, and phased work safety-related activities, such as fire-fighting skills competitions,emergency drills, work safety knowledge contests, work safety month series of activities,comprehensive safety training, and theoretical fire safety training for new employees. Theseinitiatives aim to universally enhance employees’ safety awareness and improve their emergencyresponse capabilities, with a particular focus on improving the organizational and command skills ofkey leaders and safety o?cers and their ability to execute safety measures e?ectively.
Six AED installation points in Gree Electric (partially
displayed)
Scene of re-ghting skill competition
Safety Culture Construction
Occupational Disease Prevention and Health Checks
Safety Emergency Drills
Introduction
ComplianceGovernance,
UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
During the reporting period, the Companyorganized
emergency drillsin total
with15,461
participants
The Company places a high priority on work safety training and has established a multi-tiered safety training system. During the reportingperiod, the Company conducted several key safety training programs, including training for key personnel and safety management staffaiming to enhance senior management’s ability to control and make decisions regarding safety production; safety management backbonetraining camp focusing on developing practical safety management skills for middle management; “GREE Safety Cup” Work SafetyKnowledge Competition organized to encourage all employees to engage in safety knowledge learning, creating an environment that fostersa culture of safety.
Emergency response drill in factory
Emergency response drill for accident
Training Program for Key Personnel and Safety Management Sta?
During the reporting period, the Company organized targeted training for di?erentgroups, including leadership, safety o?cers, and team leaders, covering variousaspects such as work safety, occupational health, and re safety. A total of 86,000training hours were completed for key personnel and safety management sta?.
Training for key personnel and safety management sta?
“GREE Safety Cup” Work Safety Knowledge Competition
During the reporting period, the Company organized a company-wide worksafety knowledge competition that lasted 42 days, participated in by over 40,000employees. Through this competition, which encouraged learning throughcompetition and application through learning, the Company enhanced employees’work safety knowledge while strengthening their practical work safety abilities,e?ectively combining work safety theory with practice.
“GREE Safety Cup” Work Safety Knowledge Competition
Safety Management Backbone Training Camp Program
To strengthen the foundation of work safety management and build a high-qualitysafety management team that ensures high-level safety to support the Company’shigh-quality development, the Company organized a safety management backboneskills enhancement training camp during the reporting period, aiming to improve theprofessionalism of the team, strengthen leadership responsibility, implement keycontrol measures, advance the standardization of safety management, and developa group-wide safety information management system.Safety management backbone training camp
Work Safety Training
Key Performance
Introduction
ComplianceGovernance,UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Value
for Society
Employee Care and ActivitiesThe Company has always adhered to an employee-centeredapproach, actively promoting the development of humanisticcare. Through the establishment of effective communication andfeedback mechanisms, the creation of a competitive benefitssystem, and the development of diverse cultural activities, theCompany continuously enhances employees’ sense of well-beingand recognition, injecting sustainable energy into the Company’ssustainable development.The Company places great emphasis on employee well-being,aiming to enhance employees’ happiness and sense of belonging.It offers a competitive benefits system that incorporates statutorybenefits such as public holidays, social insurance, and housingprovident fund, as well as non-compensation benefits such ashousing, shuttle buses, special cafeterias, and customized workuniforms, ensuring comprehensive support for employees’ livingneeds.The Company continuously strives to “create a comprehensiveemployee benefits system”, constantly improving and enhancingit. To address issues such as employee transportation, housing,healthcare, and children’s education, the Company has investedin building well-equipped facilities such as the GREE LeisurePark Phase I and Phase II projects, and is in the process ofconstructing GREE Hospital; in 2018, the Company establishedGREE School, e?ectively resolving the issue concerning employeechildren’s education. In daily life, the Company provides cafeteriasoffering a variety of regional cuisines to accommodate the diningneeds of all employees across the group; it also provides fullyequipped employee dormitories for convenient “move-in ready”accommodations, and free shuttle buses covering Zhuhai City andthe locations of all subsidiaries to ensure convenient commuting.Additionally, it offers benefits such as customized work uniforms,comprehensive communication packages, and health checkups.These e?orts collectively create a fullling life for GREE employees,covering all aspects of clothing, food, housing, transportation, anddaily needs, significantly enhancing employee satisfaction andsense of belonging.
Employee living quarterSta? book houseNew GREE School’s teaching building
Sta? canteen o?ering cuisines in both north and south avorsGREE’s huge shuttle systemCustomized work uniforms
Science and technologyprogress awardProposal improvement awardSkill allowanceStatutory holidaysStatutory leavesSocial insuranceHousing provident fund
Security housing for employeesEmployee dormitoryFree shuttle busCommunication packageCustomized work uniformsSta? canteen
Health checkupConsolation benetCultural development activitySeniority payWorking meal allowanceTransportation allowance
Employee Benets
Benet system of Gree Electric
Statutory benetsNon-compensation benets available for all employees
Conditioned non-compensation
benets
Introduction
ComplianceGovernance,
UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
The Company adheres to the principle of “people-centered” and is committed to promoting labor-management communication and negotiation. By establishing and improving labor-managementcommunication mechanisms and expanding channels for employee feedback, the Companylistens to employees’ voices through various methods, such as Employees’ Congress, smart LaborUnion, democratic life meetings, and employee satisfaction surveys. These efforts foster mutualunderstanding and support between the Company and its employees, laying a solid foundation for thestable corporate development.
Employees’ Congress
Democratic Life Meeting
Caring for employees in need
The Company conducts an annual employee satisfaction survey, focusing on such aspects as workand career development, team management, work compensation, logistical support, companyoperations, and party-building activities, in combination with both online and on-site methods togather feedback. In response to areas with lower satisfaction scores, the Company takes a series oftargeted improvement measures, including enhancing the working environment and o?ce resourcesfor frontline sta?, diversifying employee training formats and content, upgrading shuttle bus routesand improving the quality of employee accommodations and meals, as well as organizing a varietyof enriching cultural and recreational activities that promote physical and mental well-being. Theseinitiatives aim to signicantly improve the employee experience and support mutual growth betweenemployees and the Company.
The Company consistently implements the care system of “visiting all who are injured, comforting allwho are seriously ill, and caring for all who are hospitalized”, making support and warmth a normal,frequent, and everyday occurrence. It actively explores effective ways and measures to assistemployees in need, ensuring precise and dynamic management, ensuring that “support is providedto those who need it, with precision, and with dynamic management”.
The Company places great importance on providing assistance to the families of employeesin need. For employees facing hardship due to unforeseen events, accidents, major illnesses,disabilities, or challenges like their children’s education, the Company has implemented precisesupport measures. This includes building a support le before o?ering assistance, ensuring the workis targeted and e?ective. During holidays and festivals, the Company organizes visits and supportactivities, distributing consolation funds and consolation items to families in need, o?ering warmthand care. For employees in di?culty su?ering from serious illnesses, the Company also applies formajor illness assistance, further alleviating their nancial burdens.
Employee Communication and Democratic ManagementSupport for Employees in Need
Employee Satisfaction Survey
Normalization of Care for Employees in Need
Precise Support for Employees in Need
Introduction
ComplianceGovernance,UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
The Company has established the Sunshine Mutual Aid Fund (the “Sunshine Fund”) system. Inaddition to the precise support provided through the establishment of support les, the Company’slabor unions at all levels actively monitor the living conditions and status of employees facingnancial di?culties due to illness, o?ering support through the Sunshine Fund policy. The “SunshineFund” was established by Gree Electric in the second half of 2009 to safeguard the health ofGREE’s employees and to build and improve the employee major illness medical assistancesystem. The Labor Union reviews the Sunshine Fund materials for employees on a monthlybasis. For employees, their spouses, and children under the age of 18 who require outpatient orinpatient treatment due to illness, the Fund provides secondary reimbursement following socialsecurity insurance reimbursements, in accordance with the Implementation Rules of Measures forAdministration of Sunshine Mutual Aid Fund of Gree Electric. This system enhances employees’sense of gain, happiness, and satisfaction, ensuring that employees in need truly feel the warmth oftheir “family”.
During the reporting period,the Company provided consolation to over400 injured or ill employees
and the Sunshine Fund assisted
with the total expenditure amounted to
injured or ill employees
employees in total
The Company strictly adheres to the Law on the Protection of Women’s Rights and Interests andthe Regulations on Prohibited Labor for Female Employees, ensuring that female employees arenot assigned to work prohibited by national laws. The Company legally provides female employeeswith maternity check-up leave, pregnancy check-up leave, special breastfeeding time, dedicatedtransportation services for “caring mothers”, and flexible work benefits, while also reducing theworkload for breastfeeding employees.For female employees during the breastfeeding period, the Company actively promoted andsuccessfully established two caring mother’s rooms at the municipal level and above. Theserooms are equipped with essential maternal and child supplies and a comfortable breastfeedingenvironment, o?ering female employees a private, safe, and warm space to rest during this specialperiod. The two caring mother’s rooms have respectively been awarded the titles of “GuangdongProvince Caring Mother’s Room” and “Zhuhai City Caring Mother’s Room”, fully reflecting theCompany’s tangible actions in caring for its employees and its emphasis on protecting the rightsand interests of female employees.
Guangdong Province Caring Mother’s Room
Zhuhai City Caring Mother’s Room
Care for Female EmployeesSunshine Fund System
Key Performance
1.12
million
Introduction
ComplianceGovernance,UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
The Company advocates for a healthy and happy work-life balance and strives to create a relaxed and dynamic working environment to enhance employees’ sense of happiness at work. Tailoringto its own situation, the Company has organized various unique cultural and sports activities for employees.
“Green Future, Building Dreams with Childlike Hearts” - Gree Electric 2024 Children’s Day Parent-Child Outing Activity2024 “GREE Cup” Sports Festival Closing Ceremony
Healthy Walk Socializing and Friendship Event
“United in Celebrating the National Day, Striving for the New Era”
Grand Chorus
“Auspicious Serpent Brings Blessings, Welcoming the Spring” - Spring Couplets Distribution Activity
10th “GREE Cup” Fun Sports Games
10th “GREE Cup” Fun Sports GamesTo enrich employees’ cultural life and strengthen team cohesion, Gree Electric held the 10th “GREE Cup” FunSports Games on December 1, 2024, attracting over 600 employees from 31 departments. Through six funcompetition events, employees worked together, demonstrating the spirit of GREE people with their enthusiasm,teamwork, and perseverance. This event not only enhanced employees’ teamwork and sense of collectivehonor but also deepened their sense of identity with the corporate culture and their sense of belonging, injectingvitality into the Company’s sustainable development.
Employee Activities
Introduction
ComplianceGovernance,
UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
Social Contribution and PublicWelfareAs a company with a strong sense of social responsibility, GreeElectric not only pursues business excellence but also activelyparticipates in public welfare and charity activities, contributingto rural revitalization and giving back to society through tangibleactions.
The Company actively engages in various public welfareactivities, focusing on charitable causes, and supportingeducation undertaking, environmental protection, and culturaland sports projects. This demonstrates the social responsibilityexpected of a large-scale enterprise.During the reporting period
The Company launched the“GREE Greater Bay Area (Hong) Kong
Scholarship”
aimed at promoting the development of talentin Hong Kong’s innovation and green sectors.
The Company provided a batch of
portable air conditioners for theParis Olympic Village, o?eringa cool breeze made in China to Paris.
2024 GREE UCI World Tour - Tour of Guangxi successfully heldFrom October 15 to 20, 2024, the 2024 GREE UCIWorld Tour - Tour of Guangxi was held across sixcities in the Guangxi Zhuang Autonomous Region:
Fangchenggang, Chongzuo, Baise, Hechi, Laibin, andNanning. The event aimed to showcase the region’snatural beauty, cultural heritage, local culture andtourism resources, while promoting the developmentof the tourism industry and local economy. As an“advocate for green living”, Gree Electric promotesthe concepts of environmental protection, health,and innovation through cooperation with this world-class top-tier event. This collaboration not onlydemonstrated Gree Electric’s commitment to fulllingits social responsibility but also infused new vitalityinto the local economy by integrating sports eventswith green technology.
Charity and Public Welfare Practices
Introduction
ComplianceGovernance,
UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
“GREE Cup” 2024 Zhuhai-Macau University Students FootballChampionship, promoting cultural and sports exchange in the GreaterBay Area
Gree Electric donates AC equipment to improve teaching environments in Zunyi primaryand secondary schools
On October 26, 2024, to celebrate the 25th anniversary of Macau’s returnto China and to promote cultural and sports exchange between Zhuhaiand Macau, the “GREE Cup” 2024 Zhuhai-Macau University StudentsFootball Championship, sponsored by Gree Electric, o?cially kicked o? atthe Zhuhai Campus of Beijing Institute of Technology. Through sponsoringthis event, Gree Electric demonstrated its active support for sports, youthexchange, and utilized the platform to spread its brand philosophy of “eco-friendly, low-carbon, and healthy”. In the future, this event will be heldannually, further strengthening sports and cultural exchanges betweenZhuhai and Macau and contributing to the development of the Guangdong-Hong Kong-Macau Greater Bay Area.
On July 2, 2024, Gree Electric, through the Zhuhai Mingzhu Charity Foundation, donated a batchof AC units to Zhongxin Primary School in Daozhen County and the Second Middle School ofChishui City in Zunyi. The donation aims to improve the schools’ teaching environments, providingstudents and teachers with comfortable learning conditions, warm in winter and cool in summer.The event was attended by key leaders, including Huang Zhihao, Deputy Secretary of the ZhuhaiMunicipal Committee and Mayor, and Dong Mingzhu, Chairwoman of Gree Electric. The donatedAC units were transported by special vehicles, covering over a thousand miles to reach Zunyi.This initiative not only demonstrates Gree Electric’s social responsibility but also promotes east-west cooperation and paired assistance, contributing to rural revitalization and the development ofeducation undertaking.
As a leading enterprise in China’s manufacturing industry, Gree Electric has been adhering to the philosophyof “For the Clearer Sky and Greener Earth”, committed to promoting green development through innovativetechnology. In recent years, with the country’s strong push for the rural revitalization strategy, Gree Electrichas actively responded to the call and is exploring new pathways to empower rural development throughtechnology.During the reporting period, Gree Electric continued its role as the exclusive partner of the third season ofHomes in Beautiful China. Through visits to beautiful rural villages, the program showcases the ecologicalbeauty, cultural charm, and development changes in rural areas in the new era. Gree Electric providedhigh-efficiency, energy-saving green technology products, such as photovoltaic air conditioners and smartequipment, helping improve living conditions in rural areas, reduce energy consumption, and promotesustainable development. At the same time, through the program’s wide inuence, it further tapped into ruralunique resources, supporting rural tourism, agricultural product promotion, and the development of specialtyindustries, injecting new vitality into the rural economy.
Supporting Rural Revitalization
“GREE Cup” 2024 Zhuhai-Macau University Students Football ChampionshipGree Electric’s Donation of AC equipment to Zunyi Primary and Secondary Schools
Introduction
ComplianceGovernance,UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
2024 Environmental, Social, and Governance Report
Introduction
ComplianceGovernance,
UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
2024 Environmental, Social, and Governance Report
Environmental Compliance Management
In its production and operation processes, the Companyimplements the Environmental Protection Law of the People’sRepublic of China, the Law of People’s Republic of China onEnvironmental Impact Appraisal, as well as national and localenvironmental protection regulations and emission standards,including the Emission Standard of Volatile Organic Compoundsfor Furniture Manufacturing Operations and the EmissionStandards for Odor Pollutants. The Company has formulatedenvironmental protection management systems, includingthe Measures for Administration of Environmental ProtectionResponsibility. This system clarifies the environmentalprotection responsibilities of each department, ensuring the fullimplementation of environmental protection responsibilities. TheCompany is committed to improving the group’s environmentalmanagement level and steadfastly fulfilling its environmentalresponsibilities.
The Company continues to improve its environmentalmanagement system and actively advances the certificationand audit processes for the system, ensuring the effectiveimplementation of environmental management e?orts. As of theend of the reporting period, Gree Electric and its subsidiaries havesuccessfully obtained ISO 14001 environmental managementsystem certication for a total of 17 entities. To assess the practicaloperation of the Company’s environmental management systemand identify areas for improvement, the Company conducted anannual internal audit of the environmental management systemand an annual supervisory audit by an external third-partycertication body. The audit covered environmental, health, andsafety (ESH) process control, compliance of documentation andrecords, pollutant treatment levels, and environmental protectiontraining. It promptly addressed all non-conformities identified,ensuring strict compliance with environmental managementpractices and safeguarding the effective operation of theCompany’s environmental management system.The Company has set an annual environmental managementgoal of “zero environmental pollution incidents and zeroadministrative penalties”. During the reporting period,Gree Electric and its subsidiaries did not experience anyenvironmental pollution accidents or administrative penalties,achieving its annual goals.
Environmental Management Goals
Total Investment inEnvironmental ProtectionIncluding: investment in energy-saving technology upgrading
13,479.444,580.82
To ensure a timely, orderly, efficient, and proper responseto sudden environmental incidents, protect the safety ofemployees, and minimize property damage, the Companystrictly implements the requirements of the national Measuresfor Emergency Management of Sudden Environmental Incidentsand related laws and regulations. It has also developed anEmergency Response Plan for Sudden Environmental Incidents,carried out emergency drills and training activities focused onthemes such as “fire and explosion”, “excessive emissions ofwaste gases”, “excessive discharge of wastewater”, “chemicalleaks”, and “hazardous waste leaks”. During the reportingperiod, the Company organized 197 emergency drills in total forvarious types of sudden environmental incidents across its units.
Emergency Management of SuddenEnvironmental Incidents
The Company is committed to e?ectively reducing environmentalrisks and improving overall environmental protectionperformance. Through a series of measures, the Company aimsto prevent and mitigate potential environmental risk incidents,including identifying key environmental factors related tooperations and activities, establishing environmental protectiondocuments for operational control to ensure compliancewith environmental protection requirements, and monitoringenvironmental factors such as on-site and factory boundarynoise, toxic and harmful smoke and vapors, radiation, heatradiation, high temperatures, waste gas emissions, wastewaterdischarges, and inspections of special equipment. It hasestablished an environmental management plan and emergency
Environmental Risk FactorManagement
response plans to address potential environmental issues andoffers environmental safety training to enhance employee’sawareness and response capabilities regarding environmentalrisks.
Environmental protection investment of Gree
Electric in 2024
Investment Type
Investment Amount
(in CNY’0000)
Introduction
ComplianceGovernance,
UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
2024 Environmental, Social, and Governance Report
Gree Electric focuses on driving the intelligent and green transformation of traditional industries through technological innovation. Duringthe reporting period, the Company and its subsidiaries continued to make green factory certification efforts, with 4 new units achievingcertication. Notably, the Company’s headquarters was selected as both a national “Green Factory” and a “Green Supply Chain ManagementEnterprise”, highlighting GREE’s strong technological capabilities and leadership in the green manufacturing sector. As of the end of thereporting period, the Company had obtained a total of 20 green factory certications, including 10 national-level green factory certications, 6provincial-level certications, and 4 municipal-level certications.
the Company had obtaineda total of
greenfactory certications
including
national-level green factory certications
provincial-levelcertications
municipal-levelcertications
Green Factory
The Company develops and implements an annualenvironmental protection training plan tailored to di?erentemployee groups. For new employees, the focus of thetraining is on basic environmental protection knowledge. Forcurrent employees, the Company conducts environmentalprotection training for key personnel, including primaryenvironmental protection heads, environmental specialists,and general employees. The training content primarilycovers environmental protection laws and regulations,typical social cases, and issues found in the Company’smanagement processes.Environmental “Three Wastes” compliancemanagement training
In June 2024, the Company organized anenvironmental “Three Wastes” compliancemanagement training session, attended by 24environmental protection heads from various unitsof the Company. This training, in conjunction withthe Company’s Measures for Administration ofEnvironmental Protection Responsibility, focusedon topics such as solid waste management, wastegas treatment management, and wastewatertreatment management. The session aimed tofurther enhance the environmental managementcapabilities of each responsible person.
Environmental Protection Training
During the reporting period
Scene of Environmental Protection Training
Introduction
ComplianceGovernance,UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Value
for Society
2024 Environmental, Social, and Governance ReportE?cient Resource UtilizationThe Company places great emphasis on resource conservationand integrates the concept of sustainable development throughoutits entire production process. Through process optimization,technological transformation and equipment upgrades, the Companyimplements standardized and systematic management measures tocontinually improve the efficiency of energy, water resources, andother resources, actively promoting green development principles.
The Company consistently adheres to the energymanagement philosophy of “every drop of water, everysheet of paper”, aiming to reduce fossil fuel consumptionand lower carbon dioxide emissions. It has implementeda dual approach to carbon reduction, with a strong focuson promoting photovoltaic power generation projects tocontinuously increase the proportion of green electricity; atthe same time, the Company continues to invest in energy-saving technological upgrades and deepens efforts inresource recycling and regeneration processes, e?ectivelyreducing the total carbon emissions.To improve the energy utilization e?ciency
During the reporting period, theCompany carried out
energy-saving technological upgradessaving
58.344
million kWh ofelectricitysaving
28.5
cubic meters of natural gasand reducing carbon dioxide equivalentemissions by31,925
tons
Energy Management Goals and Achievements
The Company has set a goal to improve energy e?ciency. In2024, the Company aims to reduce energy consumption perunit of output by
3%
compared to 2023.Through the implementation of energy-saving technologicaltransformation projects, the Company’s energy consumptionper CNY10,000 of output value decreased by
3.1%
compared to 2024.
The Company actively implements thenational “Dual Carbon” strategy, andin accordance with relevant laws andregulations, it has developed systemssuch as the Measures for Administration ofEnergy and Resource Conservation, andcreated a comprehensive and robust energymanagement system by reference to the ISO50001: 2018 Energy Management Systemstandard. This is part of the Company’sstrong commitment to promoting energyconservation, reducing energy consumption,and advancing green development. Duringthe reporting period, the Company obtainedthe ISO 50001 Energy Management SystemCerticate.
ISO 50001 Energy ManagementSystem Certication Certicate
Independent technological transformation ofcompression heat for externally heated dryerThe Company has carried out a comprehensivetechnological transformation on its high-energy-consuming blower-based externally heated dryer.This transformation involved the independent designof an electrical control system, a pneumatic drivecontrol system, and process flow optimization. Byrecovering compression heat and reducing gasconsumption during the processing stage, the projectsignificantly lowers the energy consumption of thecompressed air system. According to statistics,this project is expected to save 1.57 million kWhof electricity annually, resulting in a reduction ofapproximately 842 tons of carbon dioxide emissions.
Energy e?ciency improvement from compression heat technology
transformation project for externally heated dryer
this project is expected to save
1.57
million kWh of electricity annuallyresulting in a reduction of approximately
tons of carbon dioxide emissions
Energy Management
Introduction
ComplianceGovernance,UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
2024 Environmental, Social, and Governance Report
Energy e?ciency improvement of injection molding air conditioning system at Zhuhai park area
Green assembly process project
Cooling water supplementation softeningimprovement project
The Company replaced the low-e?ciency air-cooled units with high-e?ciency water-cooled units and implemented variablefrequency water pumps to dynamically adjust the operating speed based on actual cooling loads, achieving precise coolingand effectively avoiding energy waste; the AC system is equipped with an intelligent group control system, additionallyfitted with inverters and variable frequency control cabinets to address issues such as excess cooling capacity, highenergy consumption of units, and low overall system e?ciency. As a result, the comprehensive energy e?ciency ratio ofthe injection molding machine room at the park area increased from 3.2 to over 6.5 in 2024. This improvement saves 3.09million kWh of electricity annually and reduces carbon dioxide emissions by approximately 1,658 tons.
In 2024, the Company implemented a new process for the co-planarwelding of controllers, focusing on innovative changes in the overallprocess layout. By integrating flip-chip technology and adjusting reflowsoldering techniques, the process allows for double-sided, one-time reowsoldering of the PCBA board, completing the soldering and xation of allsurface-mounted components. According to statistics, the application ofthis technology saves approximately 285,000 kWh of electricity annually.
Previously, the cooling towers maintained properwater quality by adding chemicals, which requiredlarge amounts of water to be discharged in order tokeep the conductivity within the normal range. Byintroducing soft water equipment to supplement softwater, the input of calcium and magnesium ions wasreduced, thereby lowering the discharge of coolingwater. This project has been implemented acrossvarious production bases through group promotion,including in Zhuhai, Shijiazhuang, Ganzhou, andChangsha. The annual water savings from thisinitiative amount to 50,000 tons.Co-planar welding process innovation project for controller
Energy e?ciency improvement of injection molding air conditioning system
at Zhuhai Park Areareduces carbon dioxide emissions byapproximately1,658
tons
This improvement saves
3.09
million kWh of electricity annually
saves approximately
285,000kWh of electricity annually
the comprehensive energy e?ciency ratio of theAC system at the headquarters increased from
3.2
to over
6.5
in 2024
Water Resource Management Goals and Achievements
The Company, in strict accordance with the Water Law of thePeople’s Republic of China and other national and local lawsand regulations, has established an overall water resourcemanagement policy, objectives, and action plan. The Companyactively implements water-saving measures, introduces andapplies advanced technologies and processes to minimize waterconsumption intensity, and e?ectively reduces water withdrawalthrough water recycling.
The Company set a water-saving goal ofreducing water usage by 3% in 2024, using2023 as the baseline year. Through theimplementation of water-saving projects, theactual reduction achieved was
4.1%
Water Resource Management
Introduction
ComplianceGovernance,
UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
2024 Environmental, Social, and Governance Report
Zhuhai Renewable Resources GuangdongShijiazhuang Renewable Resources Hebei, Beijing, Tianjin, Shandong, Shanxi, Liaoning, Jilin, HeilongjiangWuhu Renewable Resources Fujian, Anhui, Jiangsu, Zhejiang, Shanghai, HainanHunan Renewable Resources Guangxi, Yunnan, Chongqing, Sichuan, Guizhou, Jiangxi, HunanZhengzhou Renewable Resources Henan, Hubei, Gansu, Shaanxi
Promotion of Pollutant andWaste Prevention and Control
The Company is ommitted to complyingwith international environmental and wastetransportation conventions, agreements, andlocal laws and regulations, and respects andactively adheres to the Basel Convention onthe Control of Transboundary Movements ofHazardous Wastes and Their Disposal, whichstrictly prohibits the direct or indirect exportof electronic waste for disposal and recyclingfrom Organization for Economic Co-operationand Development (OECD) countries or theEuropean Union (EU) to non-OECD or non-EUcountries through intermediaries.
The Company is committed to improving the recycling system for used home appliances, enhancing the convenience of trade-in programs,promoting resource recycling, and contributing to the high-quality development of the home appliance industry while supporting the fulllmentof the “dual carbon” goals. As a diversied, technology-driven global industrial manufacturing group, Gree Electric has always adhered tothe strategic philosophy of balancing environmental protection with production. It has established a “green design - green manufacturing -green recycling” circular development model, providing consumers with integrated services for “delivery, installation, and collection” of homeappliances. This approach promotes a green, circular, and sustainable development model.
Our Commitment
Electronic Waste Management
Responsibility for electronic waste recycling by each subsidiary divided by regions
Leveraging its strong after-sales system, the Company has set up electronic waste collection points at its stores nationwide. In cities such asZhuhai, Changsha, Shijiazhuang, Zhengzhou, Wuhu, and Tianjin, it has established recycled resource bases responsible for the collection andrecycling of electronic waste in the provinces and cities where they are located, as well as in surrounding areas. This initiative aims to achieveresource utilization from waste materials such as plastics.
Electronic waste (e-waste) take-back program management measures of Gree ElectricScope of electronic waste take-back programCost or incentives to theconsumer of e-waste take-back
programMeans available for returningend-of-life electronicsFacilities that handle recycling ofcollected electronicsThird-party recycling suppliermanagement
Disused household appliances of all brands are eligible for collection and recycling.Consumers can make an appointment through the website, submit the relevant information to obtain the price ofrecycling, and the sta? will provide door-to-door service;Provide consumers with a credit for a trade-in.Adopt diversied means for recycling, including setting up recycling points, mail recycling, door-to-door recycling,trade-in recycling, “Internet +” recycling, and regional central site recycling, to realize the e-waste recycling across allchannels.The recycling is carried out by in-house facilities and third-party recycling suppliers. All the collected e-waste istransported to recycling plants for environmentally friendly and harmless dismantling.The Company conducts annual audits and verication of third-party recycling suppliers to ensure compliance withinternal management requirements, with a 100% supplier audit rate.
Introduction
ComplianceGovernance,UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
2024 Environmental, Social, and Governance Report
Green Renewable Resources Recycling Co., Ltd. hadcumulatively processed over 64.77 million units/setsof various waste electrical and electronic products,effectively avoiding potential environmental harmcaused by discarded appliances. In the future, theCompany will continue to focus on further processing,efficient resource recycling, and the implementation ofthe producer responsibility system for recycling, drivingthe healthy and sustainable development of the homeappliance industry.
Note: The amount of electronic waste recycled is the electronic waste generated by the Company itself.
Centered around the trade-in program, the Company aligns withnationwide trade-in policies, leveraging the advantage of dispersedsales that are easily accessible for centralized collection. Thisenables the creation of a comprehensive trade-in and recyclingnetwork and establishment of an integrated reverse logistics systemthat combines “new product delivery with old product collection”, toachieve the full industry chain coverage for GREE’s home appliancesector, from the production of new appliances to the recycling ofold appliances at the end of their lifecycle.
In collaboration with sanitation enterprises, GREE has establisheda highly e?cient “2+1” recycling and utilization model for urbanhousehold waste. This model integrates an “Internet Big Data SmartCloud Platform” and an “Ecological Resource Utilization Center” tocreate a “Resource Circular Closed Loop System”. By leveraginginformation technology to empower resource recycling, and expandingthe industrial chain through technological R&D, GREE aims to addresschallenges such as the di?culty of transporting, processing, andutilizing recyclable materials.
GREE has established its own secondary distribution centers inZhengzhou, Changsha, and Wuhu. Targeting end consumers, itdirectly engages with customers to carry out the recycling of allcategories of old home appliances, meeting the actual needs of users.
Expansion of the trade-in and recycling channels
Innovation of urban waste resource recycling andutilization model based on the integration of twonetworksIn line with the commitment to green development and promotingsustainable development, GREE has launched a specializedplatform for the recycling of old home appliances, “Mingzhu GreenLoop Recycling”. This platform, in collaboration with GREE’s o?ineafter-sales service network, has created a recycling and processingnetwork covering 95% of provinces, cities, and towns across thecountry. The platform has attracted over 130,000 registered users,with total orders surpassing 10,000.
Establishment of the online “Internet+ recycling”channel
Optimization of the reverse logistics recycling modelfor old appliances and improvement in the o?inerecycling system
Recycling and disposal of waste electrical and
electronic products (unit: ‘0000 units/sets)
670995813
Conversion of recycled copper, iron, aluminum,
and plastics (unit: 10,000 tons)
8.3015.3415.76
As of the end of the reporting period
Saving an estimated
2.932
billion kWh of energy(360,100 tons of standard coal equivalent)
saving
4.715
millioncubic meters of water
reducing carbon dioxide emissions by
1.092
million tons (555 million cubic meters)
Highlights of Electronic Waste Recycling Programs
Electronic waste recycling achievements of Gree Electric
Investment Type202220232024
Introduction
ComplianceGovernance,UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
2024 Environmental, Social, and Governance Report
The Company strictly adheres to environmental protection laws, regulations, and requirementssuch as the pollutant discharge permit, establishing a comprehensive three wastes operationmanagement system. It has formulated a waste management and monitoring plan, and investsin environmental protection equipment and facilities as needed. Additionally, it commissionsprofessional third-party organizations to conduct regular monitoring of pollutants such as exhaustgases, wastewater, and noise. Monitoring results indicate that the emissions of all pollutants complywith national and regional discharge standards.
In accordance with the environmental protection requirements ofconstruction projects, the Company has installed correspondingwastewater treatment facilities and assigned dedicated environmentalmanagement, operation, and monitoring personnel. During thereporting period, the Company’s wastewater treatment facilitiesoperated normally, with discharge indicators remaining stable andmeeting the standards, without any instances of excessive discharges.
The Company implements a hazardous waste classification andcollection system and entrusts qualified disposal units with thetreatment of hazardous waste; it classifies general industrial solidwaste within the factory and then sends to resource recyclingcompanies for proper recycling and disposal, with no instances ofillegal disposal.
The Company implements corresponding pollution control measuresat various stages, including source collection, process control, andend treatment. This includes the installation of pollution controlsystems such as injection molding exhaust gas treatment systems,drying equipment exhaust gas treatment systems, and spray paintingexhaust gas treatment systems. During the reporting period, theCompany’s waste gas pollution control facilities operated normally,and the exhaust gas monitoring indicators met national and localemission standards, with no instances of excessive emissions.
WastewaterTreatment
Waste Gas
Control
Management
of Wastes
GREE (Chongqing) RTO project
To enhance the purification efficiency of the drying exhaust gas treatment equipmentand reduce the emissions of volatile organic compounds, GREE (Chongqing) replacedthe original Phase I drying exhaust gas treatment equipment with a “Filtration + RTO(Regenerative Thermal Oxidation)” treatment process for in-depth treatment. Theequipment were installed during the reporting period, with a total investment of CNY2.3million.
RTO Treatment Equipment
The Company has invested a total of CNY
39.1
million in
sets of RTOtreatment equipment
Management of Three Wastes
Introduction
ComplianceGovernance,
UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
2024 Environmental, Social, and Governance Report
The Company actively promotes the recycling and reuse of waste materials, cooperates with recycled copper plants and scrapsteel recycling manufacturers on processing the recovered and dismantled scrap metal through smelting for reuse, therebyreducing resource waste and supporting the achievement of circular economy goals. At the same time, it continues to innovatein recycling technologies, obtaining multiple patents and participating in the development of standards. This has enabled thetransformation of technological achievements in plastic recycling, metal recovery, and other areas, driven the product iteration andupdating, and fostered market consumption growth.
Recycling and reprocessing of waste plasticproducts
Green Renewable Resources Recycling Co.,Ltd. obtains recycled materials by collecting andreprocessing discarded plastic products. The useof Post-Consumer Recycled (PCR) material plastichelps reduce the demand for new plastics, therebylowering resource consumption and carbonemissions. Currently, PCR-PP materials areextensively used in AC grilles, with a total supplyof 5,944.1 tons for the year. The Company hasalso obtained PCR certication from the EuropeanUnion and the Global Recycled Standard (GRS)certication.
Clean Technology R&D
In 2024, Green Renewable Resources Recycling Co.,Ltd. developed a crushing and sorting technology forwaste electrical and electronic equipment. Using a “multi-stage crushing + sorting” method, the technology enablesthe automated dismantling of waste electrical andelectronic equipment. The purity of the crushed copperproduced by this technology can reach over 99%, nearlywithout copper contamination in the crushed aluminum.Green Renewable Resources Recycling Co., Ltd.introduced a complete set of deep processing equipment,which has been applied in the recycling resources facilityin Changsha. The material purity after sorting is over98%, significantly enhancing the efficiency of resourcerecycling and utilization.
Automatic crushing and sorting technology for wasteelectrical and electronic equipment
Complete set of deep processing equipment
Since 2013, when the Company proposed the environmentalprotection concept of “For the Clearer Sky and Greener Earth”, it hasconsistently integrated green design principles into the entire productdevelopment and production process. The Company has establishedand implemented corporate standards such as the Green ProductDesign Specications, rigidly regulating the design and developmentof green products in areas such as raw material selection, componentselection, process equipment, energy consumption, performancerequirements, and the use of auxiliary materials.
As of the end of the reporting period
a total of
products from Gree Electrichave received national certication as“Green Design Products”
Set specic managementindicators for productrecyclability and reuse/recycling rates
Use non-toxic or low-toxicmaterialsPrioritize materials with highrecyclability and reusability
Improve the standardizationand versatility ofcomponentsAdopt easily removable andmodular designs
Utilize green technologiesand processesReduce the quantity andvariety of raw materials
Give priority to clean andrenewable energy
Circular Economy
Green Product Design
Highlights of Gree Electric's green product design
Introduction
ComplianceGovernance,
UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
2024 Environmental, Social, and Governance Report
GREE’s self-developed internationally leading AI dynamic energy-saving technology
GREE’s self-developed AI dynamic energy-saving technology for air conditionersis a great combination of AI and air conditioning. Its powerful computing capabilityensures energy efficiency, and the air conditioners equipped with this technologyachieve outstanding energy-saving performance. The technology enables a dynamicimprovement in energy efficiency of over 15.8% annually, helping consumers reduceelectricity consumption by more than 13.6% throughout the year. It functions withoutbeing limited by environmental conditions, duration, temperature, wind speed, orwind direction. Upon startup, the system automatically identifies the optimal energy-saving path, breaking through the traditional single-condition energy-saving evaluationstandards in the industry, and providing real-time dynamic energy-saving across alloperating conditions.
AI dynamic energy-saving technology of GREE
After more than a decade of technological R&D, the Company has revolutionized AC by transformingit from a simple electrical appliance into an integrated system for power generation, storage, andusage. It has pioneered the world’s first “zero-carbon source” photovoltaic energy storage ACsystem. This system boasts exceptional low carbon emissions, economic benets, and scalability,aligning perfectly with the national “Dual-Carbon” goals. It has received the highest award at theGlobal Refrigeration Innovation Awards and the first-ever China Patent Gold Award in the homeappliance industry. By the end of 2024, the “zero-carbon source” photovoltaic energy storageAC system series has expanded to 15 categories and 101 models, successfully addressing thetechnical challenges of on-site photovoltaic power consumption and peak shaving and valleyfilling in electricity. The application of this technology has been included in the Opinions of theCentral Committee of the Communist Party of China and the State Council on Accelerating theComprehensive Green Transformation of Economic and Social Development. As the leading entityfor international standards in photovoltaic energy storage AC, Gree Electric has provided a Chinesesolution for achieving the global “Dual-Carbon” goals.
countries and regions
12,000
projects
11,000 tons
Photovoltaic energy storage AC system
Company’s “zero-carbon source”photovoltaic energy storage ACsystem has been deployed in over
More thanAnnual reduction of
carbon emissions by
Introduction
ComplianceGovernance,
UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
2024 Environmental, Social, and Governance Report
The Company supports the Task Force on Climate-related FinancialDisclosures (TCFD) initiative and, in reference to its disclosurerecommendations and framework, actively conducts climate riskmanagement analysis. It has identified potential physical risks andclimate transition risks and assessed their impact on the Company’soperations and other aspects. Based on the actual businessdevelopment direction, the Company has developed targeted riskresponse strategies. To strengthen climate change risk management,the Company’s Board of Directors and environmental managementunits are also actively making preparation, including establishingan organizational framework for climate change risk management,studying and learning scenario analysis methods, and organizingclimate-related training activities.
Climate Change Risks and Responses
Addressing Climate Change
Global warming is an environmental crisis faced by human society asa whole. The Company deeply understands the far-reaching impactof climate-related risks on its business and supply chain and activelyresponds to the national “Dual Carbon” strategy. It is committed topromoting the clean and low-carbon transformation of energy used inproduction and operations, creating a healthy and green quality of lifefor consumers and society.In recent years, it has continuously conducted greenhouse gasemissions verification at the corporate level. During the reportingperiod, the Company verified the Company’s 2023 greenhouse gasemissions data in accordance with the ISO 14064-1: Specication withGuidance at the Organization Level for Quantication and Reporting ofGreenhouse Gas Emissions and Removals, ISO 14064-3: Specicationwith Guidance for the Verification and Validation of Greenhouse GasStatements, and other applicable laws, regulations, and standards. Theverication process resulted in the issuance of a verication certicate.This verification helps GREE better identify climate change-relatedrisks (such as policy changes or market pressures), detect hotspots ingreenhouse gas emissions, set scientically based emission reductiongoals, develop e?ective reduction measures, improve energy e?ciency,and promote the implementation of its sustainable developmentstrategy.
Climate risk identication and response of Gree Electric
Physical
risks
Acuterisks
Chronic
risks
Rising sea levels:
Operations in coastal areas may need torelocate inland, and xed assets may bedamaged or prematurely decommissioned,leading to increased production costs.
Risk TypeRisk Description and ImpactRisk Response Strategy
Continuously monitor the trend of rising sealevels;Consider the impact of rising sea levels whenselecting operational locations;Develop multiple regional suppliers for the sameproduct category to ensure a stable supply ofraw materials.
High temperature:
High temperatures increase the risk of reaccidents, which can lead to personnelcasualties and damage to production facilitiesand equipment, resulting in increased capitalexpenditures.Typhoons, heavy rain, and ooding:
Extreme weather events can cause interruptionsin logistics and transportation, a?ectingproduction and on-time delivery, leading toincreased operational costs;The destructive power of extreme weatherevents can damage production equipment andcause operational disruptions, resulting in higherequipment repair costs;Employee safety and occupational health maybe threatened, and workplace accidents couldreduce production e?ciency.
Install cooling facilities as needed;Equip comprehensive re safety facilities;Conduct re safety emergency drills and providerelevant training to enhance employees’ safetyawareness and capabilities.Plan multiple transportation methods and,based on weather alerts, arrange logistics andtransportation in advance to ensure materialinventory reserves;Continuously improve the emergency responsemechanism for natural disasters, reserveemergency supplies, and strengthen safetyinspections;Regularly conduct emergency drills andtraining for extreme weather events to enhanceemployees’ safety awareness and capabilities.
Introduction
ComplianceGovernance,UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
2024 Environmental, Social, and Governance Report
Stricter carbon emission management policies and regulations:
Due to the national deployment requirements for carbon peaking and carbon neutrality, aseries of energy-saving and carbon reduction action plans, policies, and standards havebeen introduced, leading to increased compliance costs for carbon emissions;The trend of carbon taxes on international trade imports and exports is becoming moreapparent, which may result in higher costs.Transition to low carbon emission technologies:
The early phase-out of high energy consuming equipment leads to increased operationalcosts;The R&D and application of clean energy or innovative low-carbon technologies result inincreased R&D expenses.Customer preferences shifting toward energy-e?cient products:
As consumer awareness of environmental protection increases, there is a greaterpreference for selecting green, low-carbon, and environmentally friendly products, whichmay lead to higher costs for raw materials and the production process.
Social attention to the Company’s response to climate change and sustainabledevelopment:
As a leading manufacturing enterprise, stakeholders expect the Company to assume onmore emission reduction responsibilities. If the Company does not initiate low-carbontransformation planning in advance, it may su?er reputation damage.
Monitor the dynamic changes in carbon policies and regulationsin operational locations to respond appropriately to policy andlegal updates;Develop photovoltaic projects to increase the share of renewableenergy;Use low-energy consumption production equipment, optimizeproduction processes, and explore and implement energy-savingand emission-reduction projects to reduce energy consumption;Strengthen carbon reduction across the entire production,operations, and logistics processes;Use clean electricity.Technology
risks
Market risks
Transformation
risks
Reputation
risks
Policy risks
Risk TypeRisk Description and ImpactRisk Response Strategy
Introduction
ComplianceGovernance,UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
2024 Environmental, Social, and Governance Report
Total emission ofgreenhouse gases
tCO
e1,450,0801,314,4383,173,251
Direct (scope 1)
greenhouse gas
emission
tCO
e709,422726,6542,682,418
Direct (scope 2)
greenhouse gasemission
tCO
e740,658587,784490,833
Greenhouse gas
emission intensity
tCO
e/CNY'0000revenue
0.07670.06410.1670
Photovoltaic generation project of Ganzhou Base
Photovoltaic generation project of Nanjing Base
Photovoltaic generation project of Hangzhou Base
Photovoltaic generation project of Changsha Base
Increasing the proportion of clean energy: In 2024, the Company used
million kWh ofnuclear power and generated
96.85
million kWh from photovoltaic power, representinga245%
increase in photovoltaic generation compared to 2023, resulting in a carbondioxide emission reduction of
51,969
tons. It also utilized its self-developed titanium acidlithium storage cabinets for peak shaving and valley lling, with a total energy storage capacity of
MWh, and accumulated peak-shaving of
million kWh of electricity.
Clean Energy Utilization
Greenhouse gas emissions of Gree Electric in 2022-2024
*
IndicatorUnit202220232024
As of the end of the reporting period
During the reporting period
the company's total installed capacity ofphotovoltaic power stood at
the Company generated
*Note: 1. The carbon dioxide emission factor for electricity is the national average carbon dioxide emission factor for electricity of 0.5366 tCO
/MWh, aspublished by the Ministry of Ecology and Environment and the National Bureau of Statistics on December 23, 2024.
2. The scope of data accounting in 2024 includes the Company’s headquarters and all its subsidiaries, whereas the scope of data accounting for the years
2022-2023 was limited to the company's headquarters.
achieved a carbon dioxideemission reduction ofapproximately
with
accounting forof the Group’s totalelectricity consumption
121.3
MW
96.85
million kWhof photovoltaic electricity
51,969tons
56.9
MW of newphotovoltaic power generationprojects constructed in 2024
5.6%
Introduction
ComplianceGovernance,UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
2024 Environmental, Social, and Governance Report
Looking to the Future, Gree Electric will unswervingly implement the strategy of green development, continuously practice green principles, and empower theimprovement of product quality and factory efficiency, striving to become a pioneer in green manufacturing. In the meantime, the Company will build on thefoundation of “green factories” and “green supply chain management”, sharing high-quality experiences to better empower the industry, co-build ecosystems, andcontribute to the overall transformation and upgrading of China’s manufacturing industry.
Introduction
ComplianceGovernance,
UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
Appendix I: Table of Key Performance Indicators
Total operating revenueCNY’000019,015,067.2520,501,812.3819,003,807.16Net prot attributable toshareholders of listedcompanies
CNY’00002,450,662.382,901,738.763,218,457.04Total cash dividends (tax
included)
CNY’00001,122,768.321,314,222.591,675,541.62Cash dividends for every10 shares
CNY20.0023.8030.00
IndicatorUnit20222023
Total number of board
members
Person
Including: number of
female directors
Person
Including: number ofexecutive directors
Person
Including: number ofindependent directors
Person444Number of boardmeetings convened
Session1266Attendance rate ofboard members
%100100100
Comprehensive energy
consumption
tce214,216.38 256,892.14 265,978.03Direct energyconsumption
tce51,463.99 56,461.33 54,550.32Including: natural gas’0000 m
2,960.93 3,341.40 3,167.66Including: liqueedpetroleum gas
Ton7,048.72 7,012.02 7,245.20Indirect energy
consumption
tce162,752.39 200,430.81 211,427.71Including: electricity’0000 kWh129,871.68 160,278.47 162,347.31
Anti-commercialbribery and anti-corruption training
Session474032Number of employees
signing the IntegrityCommitment Letter
Person6,9597,12310,332
Economic Performance
Governance PerformanceEnvironmental Performance
Board of Directors, Board of Supervisors and Senior Management
Business Ethics
Energy Usage
Number of sessionsof General Meeting of
Shareholders
Session
2024
IndicatorUnit202220232024
IndicatorUnit202220232024
IndicatorUnit202220232024
IndicatorUnit202220232024
Introduction
ComplianceGovernance,UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
Total wastewater
discharge
m
3,042,655.053,526,745.373,147,635.11Chemical oxygen
demand (COD)
mg/L79.0176.56
54.34
Five-day biochemicaloxygen demand(BOD5)
mg/L30.8432.68
23.79
Suspended mattermg/L23.1122.60
23.64
Ammonia nitrogenmg/L
7.51
8.00
8.10
Total phosphorusmg/L
1.01
1.16
1.12
pH-
7.577.54
6.45
Total general solid
wastes
Ton323,848.72466,865.10474,261.15Total hazardous wasteTon15,375.7417,571.3415,614.13Recycled andprocessed wasteelectrical andelectronic products
’0000 tons670995813Conversion ofrecycled copper,iron, aluminum, andplastics
’0000 units/sets
8.3015.3415.76
Waste Discharge
Wastewater Discharge
Consumption of self-generated and self-consumed renewableelectricity
’0000 kWh2,5552,8069,685Consumption ofrenewable energy(photovoltaic powergeneration)
’0000 kWh2,5552,8069,685Consumption ofrenewable energy(nuclear powerconsumption)
’0000 kWh057,212.770,876.3Proportion ofrenewable energyconsumption
%1.528.737.2
Total emission ofgreenhouse gases
Ton (CO
equivalent)
1,450,0801,314,4383,173,251
Direct (scope 1)
greenhouse gasemission
Ton (CO
equivalent)
709,422726,6542,682,418
Indirect (scope 1)
greenhouse gasemission
Ton (CO
equivalent）
740,658587,784490,833
Greenhouse gas
emission intensity
Ton (CO
equivalent）
0.07670.06410.0641
Greenhouse Gas EmissionsIndicatorUnit202220232024
IndicatorUnit202220232024
IndicatorUnit202220232024
IndicatorUnit202220232024
Introduction
ComplianceGovernance,UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor SocietyTotal WaterConsumption
m
9,374,76310,191,75410,435,347
Number ofincidents penalizedfor violations ofenvironmentalprotection laws and
regulations
Times000
Water Resource Utilization
Environmental Management
Particlesmg/m
5.405.526.09Non-methane
hydrocarbon
mg/m
8.49
6.115.17
Nitrogen oxidemg/m
18.32
17.5516.01
Sulfur oxidesmg/m
4.31
4.792.27
VOC emissionsmg/m
3.45
5.202.32
Number of product
recalls
Piece
Product Performance
Product Responsibilities and Services
Intellectual Property and Innovation
Proportion of productrecalls
%
Amount involved in thedamage caused bymajor liability accidentsrelated to product andservice safety andquality in the year
CNY’0000
Complaint resolution
rate
%100100100Customer satisfaction%
99.0599.6199.88
R&D investmentCNY’0000642,970.21700,649.74714,685.00Total number ofpatents held (granted)
Nos.61,60168,05577,898Total invention patentsheld (granted)
Nos.16,15919,56825,883Total softwarecopyright patents held(granted)
Nos.108698Annual increase inpatents (granted)
Nos.8,6506,4548,130Number of patentsunder examination
Nos.32,80633,84528,179
Total waste gas
emissions
m
28,284,810,418.
28,114,666,183.
34,534,420,049Waste Gas EmissionsIndicatorUnit202220232024
IndicatorUnit202220232024
IndicatorUnit202220232024
IndicatorUnit202220232024
IndicatorUnit202220232024
Introduction
ComplianceGovernance,UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
Total number of employeesPerson72,38072,61072,808Number ofemployees bygender
MalePerson50,82951,92351,733FemalePerson21,55120,68721,075Number ofemployees byemploymenttype
Labor contractPerson72,38072,61072,808Labor dispatchingPerson000
OtherPerson000Number ofemployees byage
30 years old and belowPerson//23,83331 to 40 years oldPerson//32,63140 years old and abovePerson//16,344
Number ofemployees byjob level
Senior managementPerson//249Number of femaleemployees in seniormanagement
Person//37Middle managementPerson//5,373Number of femaleemployees in middlemanagement
Person//1,402GrassrootPerson//67,186
Healthand safetytraining and
drill
Total duration of training onoccupational health and work safety
Hour101,34674,61286,720Number of safety drills (such as re,toxic gas leakage, etc.)
Session1914
Work safety investmentCNY’00002,406.32,325.72,458.1Employeecasualties
Number of employees injured at work(with minor injuries or above)
Person544Number of work-related deathsPerson000Number of working days lost due to
work-related injuries
Day3,5393,0791,997Occupational disease incidence rate%000
Employee turnover rate*%12.85Employee turnover rate by gender
Male%
13.13
Female%
12.18
Employee turnover rate by age group
30 years old and below%
19.80
31 to 40 years old%
9.53
40 years old or above%
5.75
*Employee turnover rate = Number of employees who left at the end of 2024 / Number of employees at the beginning of 2024
Employee PerformanceEmployee Composition
Employee Turnover Rate
Occupational Health and Safety
2024
Total training hoursHour1,183,968.65Training hours per capitalHour55.13
Employee Training and Development
IndicatorUnitIndicatorUnit202220232024
IndicatorUnit202220232024
2024IndicatorUnit
Introduction
ComplianceGovernance,
UpholdingIntegrity and
Sincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Value
for Society
Appendix II: Report Standard Index
Environmental Information DisclosureSection I Addressing Climate ChangeAddressing
ClimateChange
Article 20, Article 21, Article22, Article 23, Article 24,Article 25, Article 26, Article27, Article 28
GRI 201: EconomicPerformance 2016, GRI302: Energy 2016, GRI 305:
Emissions 2016
AddressingClimate ChangeAnnex I: Table ofKey PerformanceIndicatorsSection II Pollution Control and Ecosystem Protection
PollutantEmissions
Article 29, Article 30
GRI 2: General Disclosures2021, GRI 303: WaterResources and Wastewater
2018
Promotion ofPollutant andWaste Prevention
and Control,Annex I: Table ofKey Performance
Indicators
WasteDisposal
Article 29, Article 31
GRI 306: E?uents and Waste
2020
Promotion ofPollutant andWaste Prevention
and Control,Annex I: Table ofKey Performance
IndicatorsEcosystem
andBiodiversityConservation
After assessment by the Company, this topic is neither of nance materiality nor
impact materiality
Sustainability Report IndexGRI Content Index
Location in Report
and Description
Environmental
ComplianceManagement
Article 29, Article 33
GRI 302: Energy 2016, GRI303: Water Resources andWastewater 2018, GRI 306:
E?uents and Waste 2020
EnvironmentalComplianceManagementSection III Resource Utilization and Circular EconomyEnergyUtilization
Article 34, Article 35GRI 302: Energy 2016
E?cient ResourceUtilization, AnnexI: Table of KeyPerformanceIndicatorsWaterResourceUtilization
Article 34, Article 36
GRI 303: Water Resourcesand Wastewater 2018
E?cient ResourceUtilization,Promotion ofPollutant andWaste Preventionand Control,Annex I: Table ofKey PerformanceIndicatorsCircularEconomy
Article 34, Article 37
GRI 306: E?uents and Waste
2020
Promotion ofPollutant andWaste Prevention
and Control,Annex I: Table ofKey PerformanceIndicatorsSocial Information Disclosure Section I Rural Revitalization and Contribution to SocietyRuralRevitalization
Article 38, Article 39
GRI 203: Indirect EconomicImpacts 2016
SocialContribution andPublic Welfare
Sustainability Report IndexGRI Content Index
Location in Reportand Description
Introduction
ComplianceGovernance,
UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
Contribution
to Society
Article 38, Article 40
GRI 203: Indirect Economic
Impacts 2016
SocialContribution and
Public WelfareSection II Innovation Driven Development and Science & Technology EthicsInnovationDrivenDepartment
Article 41, Article 42/
Innovation-Driven
Transformation,Annex I: Table ofKey Performance
IndicatorsScience &TechnologyEthics
Not involved. The Company’s core business does not involve scientic research,technological development and other activities in sensitive elds such as life
sciences and articial intelligence ethics.Section III Suppliers and CustomersSupply ChainSafety
Article 44, Article 45
GRI 308: SupplierEnvironmental Assessment2016, GRI 414: Supplier SocialAssessment 2016
BuildingSustainableSupply ChainsEqualTreatmentof Small andMedium-Sized
Enterprises
Article 46/
Adherence toBusiness EthicsSafety andQuality ofProducts andServices
Article 44, Article 47
GRI 416: Customer HealthSafety 2016, GRI 417:
Marketing and Labeling 2016
Pursuing PerfectQuality, ImprovingUser Experience,Annex I: Table ofKey PerformanceIndicatorsData Securityand CustomerPrivacyProtection
Article 44, Article 48
GRI 418: Customer Privacy
2016
Protection
Section IV Employees
EmployeesArticle 49, Article 50
GRI 401: Employment 2016,GRI 403: Occupational Health
and Safety 2018, GRI 404:
Training and Education 2016,GRI 405: Diversity and EqualOpportunity 2016, GRI 406:
Non-Discrimination 2016, GRI409: Forced or CompulsoryLabor 2016
TalentRecruitment andEmployment,EmployeeDevelopmentand Training,OccupationalHealth and Safety,Employee Careand Activities,Annex I: Table ofKey PerformanceIndicatorsSustainability Related Governance Information Disclosure Section I Sustainability Related Governance MechanismDue DiligenceArticle 52/
Strict RiskManagementStakeholderCommunication
Article 53
GRI 2: General Disclosures2021, GRI 3: Material Topic
2021
Focus on
SustainableDevelopmentSection II Business ConductAnti-CommercialBriberyand Anti-Corruption
Article 54, Article 55GRI 205: Anti-Corruption 2016
Adherence toBusiness Ethics,Annex I: Table ofKey Performance
IndicatorsAnti-UnfairCompetition
Article 54
GRI 206: Anti-CompetitiveBehavior 2016
Adherence toBusiness Ethics
Sustainability Report IndexSustainability Report IndexGRI Content IndexGRI Content IndexLocation in Reportand Description
Location in Reportand Description
Introduction
ComplianceGovernance,
UpholdingIntegrity andSincerity
GreenDevelopment,Leading withLow Carbon
Conclusion
Innovation-
Driven,Quality-BaseDevelopment
People-
CenteredApproach,Creating Valuefor Society
Appendix III: Readers’ FeedbackDear readers,Hello!Thank you for taking your time to read this report. In order to provide more comprehensive, professional, and valuable ESG information to you and other stakeholders, and to improve the quality of our ESGreport, we sincerely invite you to assist us by completing the relevant questions in the feedback form. Your valuable insights would be greatly appreciated.
1. Are you satised with this report on overall?
Yes□Average□ No□
2. Do you think this report comprehensively reects Gree Electric’s signicant impacts on the
ESG?Yes□Average□ No□
3. Do you think the stakeholders identied in this report and the analysis of their relationship
with Gree Electric are accurate and comprehensive?Yes□Average□No□
4. Do you think the information provided in this report is comprehensive?
Yes□Average□No□
5. Do you think the information provided in this report is readable?
Yes □ Average □ No □
6. Are you satised with the overall design of this report?
Yes□Average□ No□
7. Any other comments or suggestions regarding the 2024 Environmental, Social, and
Governance Report of Gree Electric are welcome.
If you have any questions, suggestions, or comments regarding this report, please contact us at:
：
Jinji West Road, Qianshan, Zhuhai City, Guangdong Province
：
0756-8669232