维峰电子(301328)_公司公告_维峰电子：2024Environmental,Social and Governance(ESG)Report_公司公告

维峰电子：2024Environmental,Social and Governance(ESG)Report（下载公告）
公告日期:2025-04-26
Sustainable DevelopmentGovernance Strengthen Complianceto Solidify Governance Low-Carbon Operationsfor a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout theReport AboutWCON2024 Environmental, Social, andGovernance Report Message fromChairman Appendix CONTENTS About the ReportMessage from Chairman AppendixKey Performance FormMetric IndexFeedback Standardize Governance for StableOperationEnhance Investor Relations to ProtectShareholders' InterestsReinforce Compliance for BusinessEthicsPrioritize Data Security to PreventPrivacy Breach Strengthen Complianceto Solidify Governance Low-Carbon Operationsfor a Green World Low-Carbon Initiatives to AddressClimate ChangeStrengthen Pollution ControlOptimize Energy Management 3 1 Innovation-DrivenTransformation Human-CentricCommitment Co-accelerate Industrial EcosystemsPremium Brand from QualityReinvent Sourcing Governance 4 1 Safeguard Employees' RightsUnblock Development ChannelsHealth Protection Network for PublicSafetySocial Engagement for a SustainableFuture About WCON Performance in 2024Company ProleIndustrial LayoutCorporate CultureHonorsShareholding StructureDevelopment Course Sustainable DevelopmentGovernanceSustainability GovernanceObjectivesSustainability GovernanceStructureCommunications withStakeholdersManagement of Material Topics 1 1 Sustainable DevelopmentGovernance Strengthen Complianceto Solidify Governance Low-Carbon Operationsfor a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout theReport AboutWCON2024 Environmental, Social, andGovernance Report Message fromChairman Appendix About the Report The2024 Environmental, Social and Governance (“ESG”) Report of WCON Electronics (Guangdong) Co., Ltd.(hereinafter referred to as “the Report”) is the first ESG report issued by WCON Electronics (Guangdong)Co., Ltd. (hereinafter referred to as “WCON” or “the Company”). In the principles of objectivity, standardization, transparency, and comprehensiveness, the Report provides a detailed disclosure of the Compa-ny’s practices and performance in social responsibilities such as environment, society, and corporate governance for 2024.Reporting Scope Data ExplanationAppellation DescriptionConrmation and ApprovalAccess to the Report TermDenition WCON, the Company, WeWCON Electronics (Guangdong) Co., Ltd.WCON AutomotiveDongguan WCON Automotive Electronics Co., Ltd.State/Government e People's Republic of China andits administrative agenciesSZSEShenzhen Stock ExchangeCompany LawCompany Law of the People's Republic of ChinaSecurities LawSecurities Law of the People's Republic of ChinaArticles of Association Articles of Association of WCON Electronics (Guangdong) Co., Ltd. Unless otherwise indicated by the context, the following terms in the Re-port have the meanings as below: Data sources used in the Re-port include the Company’sactual operational data, an-nual financial data, internalstatistical reports, third-partyquestionnaire surveys, etc.The nancial data in the Re-port is expressed in RMB. Thefinancial statements shallprevail in any discrepancybetween the Report and thenancial statements. ◎ The Company’s Board approved the Re-port of Directors on April 25, 2025, and wassubsequently released in conjunction withthe Company's Annual Report for 2024. TheBoard pledges to exercise oversight over thecontents of the Report, ensuring its absenceof any false records or misleading representa-tions and assuming responsibility for its truth-fulness, accuracy, and completeness.◎ The Report is published in Chinese, withthe English version derived from the Chineseversion. For any discrepancy between the twoversions, the Chinese version shall prevail. The electronic version of theReport is available for refer-ence and download from theinformation disclosure websitedesignated by the ShenzhenStock Exchange, CNINFO (www.cninfo.com.cn), or the Com-pany's website (www.wcon.com). If you have any questionsor suggestions about the Re-port, you can send an email tocwdg@wcon.com or call 0769-85358915. Preparation Basis The Report focuses on WCON Electronics (Guangdong) Co.,Ltd. and its branches and subsidiaries. The scope of theReport is consistent with the Company’s Annual Reportunless otherwise stated. The Report covers from January1, 2024, to December 31, 2024 (the “Reporting Period”) andis released annually, consistent with the financial year. Toimprove comparability and completeness, some sections ofthe Report may be appropriately referred to previous yearsor contain forward-looking statements. The Report is prepared according to the guidelines of the stock exchange where the Company is listed and international information disclosurestandards, and the reference disclosure documents are as follows: ◎Shenzhen Stock ExchangeSelf-Regulatory Guidance No. 3 for Companies Listed on ChiNext Market of Shenzhen Stock Exchange—Preparation of Sustainability Report◎Shenzhen Stock ExchangeSelf-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange - Sustainability Report (For Trial Implementation)◎ Global Reporting InitiativeSustainability Reporting Standards (GRI Standards)◎ China Enterprise Reform and Development SocietyGuide to Corporate Sustainability Reporting in China (CASS-ESG 6.0)◎UN Sustainable Development Goals (SDGs)◎ Task Force on Climate-related Financial Disclosures (TCFD) Recommendations of the Task Force on Climate-related Financial Disclosures Message from Chairman Sustainable Development Governance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-Driven Transformation Human-CentricCommitmentAbout theReport AboutWCON2024 Environmental, Social, andGovernance Report Appendix Message from Chairman Hello! I am deeply honored to present WCON's rst Environmental, Social, and Governance (ESG) Report. On behalf of WCON, I would like toexpress my sincere gratitude to all stakeholders who have given us rm support and trust.2024 was full of challenges and the rst year for WCON to launch its ESG strategic deployment ofcially. Amidst intensifying industry compe-tition and market volatility, we forge ahead with unwavering resolve, anchored in our core strategy of “Quality as our Cornerstone, Innovation asour Driver, and Customer Primacy as our Compass.” In the past year, we completed the commissioning of the projects funded by the initial publicoffering of shares and took a historic step towards manufacturing overseas. At the same time, we thoroughly implemented the corporate visionof “becoming a global high-end precision connectors and customer solution service provider” and continuously invested in research and devel-opment innovation and intelligent manufacturing construction. We unswervingly followed the development path driven by both innovation andquality. In addition, we actively responded to the global trend of sustainable development and committed to improving corporate governance. Westrived to achieve harmonious coexistence among economic growth, social welfare, and environmental protection and to explore and enhancethe multi-faceted internal value of the enterprise.WCON is committed to building a green, intelligent, equal, and transparent modern industrial park and deeply implanting the ESG concept intothe Company's strategic decision-making and long-term planning.In terms of the environment and green development, we actively introduced green energy technologies such as chilled water storage systems, photovoltaic devices, and energy storage facilities and established an energy management system to achieve rened classication mon-itoring and management of the plant's resources, continuously optimize energy allocation, and repeatedly set new lows in carbon emissions. Regarding social responsibility, WCON adheres to “humanism” by fully respecting and protecting employees' rights and interests, creat-ing a safe and healthy working environment, and guiding employees' growth with a positive corporate culture. We provide high-quality working,living, and dining conditions, hold monthly birthday parties, and offer abundant festival and family visit benets. In 2024, we implemented anemployee stock ownership plan, comprehensively reformed the compensation system, and broaden the channels for employee training and pro-motion. By combining short-term benets with long-term incentives, we promoted the synchronous growth of employees and the enterprise. In terms of corporate governance, we strictly abide by national laws, regulations, and international industry standards and meticulouslyconstruct and optimize the internal control system to enhance the effectiveness of risk management, improve the transparency of informationdisclosure, and ensure that the decision-making process is scientic, fair, and transparent. By continuously rening the corporate governancestructure, we strive to maximize value creation while ensuring all stakeholders' legitimate rights and interests are embedded in our governanceprocesses with complete respect and protection. Looking ahead, WCON will continue to deepen its sustainable development practices, leveraging the dual engines of “Quality Leadership”and “Innovation-Driven Growth” to comprehensively elevate its core competitiveness, steering toward a new phase of synergistic co-developmentamong economic, social, and environmental benets. We sincerely invite all partners to join hands to create a brilliant and sustainable future. WCON Electronics (Guangdong) Co., Ltd.Chairman & General Manager: Li Wenhua Governance Strengthen Complianceto Solidify Governance Low-Carbon Operationsfor a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout theReport AboutWCON2024 Environmental, Social, andGovernance Report Message fromChairman Appendix About WCONPerformance in 2024 Environmental Performance 240.20 RMBTotal Environmental Investment timesNumber of Environmental Training Sessions 4,336.63 tCO eTotal Emission of Greenhouse Gases 100% Waste Disposal Compliance Rate Economic Performance 53,417.23 (in RMB 10,000) Total Operating Income 8,546.64(in RMB 10,000) Net Prot Attributable to Shareholders ofthe Parent Company 2,688.32(in RMB 10,000) Total Taxes Sustainable DevelopmentGovernance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout the Report AboutWCON2024 Environmental, Social, andGovernance Report Message fromChairman Appendix Governance Performance hoursDuration of Ofine Legal Training for Directors,Supervisors, and Senior Executives 100% Signing Rate of the Business Ethics Agreements time Number of Reports of Corruption or Bribery Incidents 100% Proportion of Management Personnel Attended the Anti-commercial bribery and Anti-corruption Training 100% Reply rate to investors’ inquires Material Legal Non-compliance Incidents Social Performance Cumulative Patents Granted 100% Coverage Rate of PhysicalExaminations for Employees 100%Percentage of Suppliers that HaveSigned the Integrity Agreement Number of case Labor Disputes case Number of Safety Production Accidents100%100% Employee Training Coverage 99.66% Product Percent of Pass 12.05% Percentage of R&D Investment in Operating Income (in RMB 10,000)6,435.57 Investment in R&D Percentage of Contract Workers Governance Strengthen Complianceto Solidify Governance Low-Carbon Operationsfor a Green World Innovation-Driven Transformation Human-CentricCommitmentAbout theReport AboutWCON2024 Environmental, Social, andGovernance Report Message from Chairman Appendix Company ProleWCON Electronics (Guangdong) Co., Ltd., es-tablished in November 2002, was listed on theChiNext Market of the Shenzhen Stock Exchangeon September 8, 2022 (Stock Short Name: WconElectronics, Stock code: 301328). The companyprovides board-to-board (BTB) and wire-to-board(WTB) precision connectors and cable assem-blies. Its main business focuses on research,development, design, production, and sales ofconnectors and cables in industrial control, auto-motive electronics, and new energy industries.Committed to providing customers with custom-ized, intelligent, and efficient connectivity solu-tions, the Company offers 17 prominent productfamilies with over 50,000 active trading SKUs andover 100,000 reserved product SKUs. These serveapplications across industrial automation control,three-electric systems (motor/battery/electroniccontrol system) of electric vehicles, ADAS, smartcockpits, and solar inverter systems. Prominent product families Active trading SKUs 50,000+ Reserved product SKUs 100,000+ Governance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout theReport AboutWCON2024 Environmental, Social, andGovernance Report Message fromChairman Appendix WCON Headquarters (Nov. 2002) Building area: 60,228 m Kunshan (July 2006)Building area: 46,000 m Hefei (Oct. 2022)Building area: 1,800 m Hengyang (Nov. 2022)Building area: 4,000 m ailand (under construction)Building area: 45,000 m Global distribution of enterprises WCON Electronics (Guangdong) Co., Ltd.(Headquarters)Dongguan WCON Automotive Electronics Co., Ltd. WCON ELECTRONICS EUROPE SRL WCON ELECTRONICS (SINGAPORE) PTE. LTD. WCON HARDWARE ELECTRONICS LIMITED Hengyang WCON Electronics Co., Ltd. Hefei WCON Electronics Co., Ltd. Dongguan Kunshan WCON Electronics Co., Ltd. Kunshan WCON ELECTRONICS (THAILAND)CO.,LTD. (under construction) Thailand Hengyang Singapore Italy HongKong Hefei Governance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-Driven Transformation Human-CentricCommitmentAbout the Report AboutWCON2024 Environmental, Social, andGovernance Report Message fromChairman Appendix Industrial Layout Industrial Control ConnectorsIn the industrial control eld, the Company's products mainly includeBTB connectors and WTB connectors. Automotive ConnectorsIn the automotive eld, based on different application scenarios, theCompany strategically focuses its deployment on the medium andlow-voltage signal transmission connectors and, at the same time,complements and synergizes its business operations with high-fre-quency and high-speed connectors. New Energy Connectors In the new energy eld, the Company's products are mainly used forsignal control transmission, and applied to solar and wind energyinverter systems. Moreover, the Company continues to expand theconnectors required for household and commercial energy storageand charging applications and provides photovoltaic energy storagesystem solutions, forming a comprehensive coverage of the threeelds of photovoltaics, energy storage, and charging, to strengthenthe business layout of new energy connectors.◎ New Energy ConnectorsThe products are mainly used for signal control transmission, with pitches rang-ing from 1.27 mm, 2.0 mm to 5.08 mm,and 7.62 mm. With a dual-contact andmulti-contact terminal structure design,they can achieve reliable connectionand extend the service life simulta-neously, and can work stably in anenvironment with a large temperaturedifference. Main ProductsIntroduction ◎ Industrial control BTB connectors The products are primarily used for sig-nal transmission and power supply, withpitches ranging from 0.4mm, 0.5mm to 3.96mm, 5.08mm, and transmission rates ranging from 5Gbps to 30Gbps. They canprovide various PCB installation methodssuch as SMT and THT. Application elds: They can be applied explicitly to industrial controland automation equipment such as servo motors, programmable logiccontrollers (PLCs), robotic arms, and industrial computers. The products are mainly used for signalinput and output, with pitches rangingfrom 0.8mm, 1.0mm, 1.27mm to 5.08mm, 7.5mm, and transmission rates ranging from 5Gbps to 30Gbps. They can providemultiple wire diameter specication solu-tions of 18-36AWG. ◎ Industrial control WTB connectors Main Products Main Products ◎Medium and low- voltage signaltransmission connectors Application elds: The medium and low-voltage signal transmission con- nectors are primarily used for the three-electric systems (battery, motor,and electronic control system) of new energy vehicles; the high-frequencyand high-speed connectors are primarily used for intelligent cockpit sys-tems, autonomous driving systems, and body domain control systems. Introduction The products are primarily used for sig-nal transmission and power supply, withpitches ranging from 0.5 mm, 0.8 mm, 2.2mm to 3.0 mm, 4.0 mm, 6.0 mm, and thewaterproof grade reaching IP67, IP68, andIP6K9K. Equipped with terminal reinforce-ment, mating anti-misinsertion, and sec-ondary locking designs, they exhibit stronganti-vibration performance, stable contact,and reliable transmission capabilities whileproviding multiple mounting design options.We have already offered products suchas FAKRA, MINI FAKRA, HSD, Ethernet,automotive TYPE-C, radar housings, andlarge-current stud terminals.◎ High-frequency and high-speed connectors Introduction Sustainable DevelopmentGovernance Strengthen Complianceto Solidify Governance Low-Carbon Operationsfor a Green World Innovation-Driven Transformation Human-CentricCommitmentAbout the Report AboutWCON2024 Environmental, Social, andGovernance Report Message fromChairman Appendix Corporate Culture Shareholding Structure WCON Electronics (Guangdong) Co., Ltd. WCON ELECTRONICS EUROPE SRL (lncorporated in ltaly)WCON ELECTRONICS (SINGAPORE) PTE.,LTD (Incorporated in Singapore)WCON ELECTRONICS (THAILAND) CO.,LTD(Incorporated in Thailand) 100%52% 95% 5% WCON Hardware Electronics Co., Ltd. 100% Hengyang WCONElectronics Co., Ltd. 100%Dongguan WCON Automotive Electronics Co., Ltd. 60% Hefei WCON Electronics Co., Ltd. 51%Kunshan WCONElectronics Co., Ltd. 100% Honors National “Little Giant”Enterprise (Specialized and Sophisticated SMEs)Ministry of Industry and Informa- tion Technology National High-Tech Enterprise Ministry of Science and Technolo-gy, Ministry of Finance, State Taxa- tion Administration Dongguan “Double Increase Enterprise” in 2024Dongguan Double Increase Plan Working Leadership Group Innovative Enterprise in Guangdong ProvinceIndustry and Information Technol-ogy Department of Guangdong ProvinceCorporate Vision：Become a global high-end precision connectors and customer solution service provider to lead technological innovation and application development.Corporate Mission：Meet the diverse needs of global customers and create sustainablevalue for the connector industry and society.Values：Integrity-Driven Operations, Quality First, Innovation-Driven Growth, Collaboration for Win-Win Outcomes. Message fromChairman Appendix Development Course 2002The predecessor ofthe Company, Dong-guan WCON Hard-ware Electronics Co.,Ltd., was established. 2010We developed au-tomotive electron-ics series products,began to enter theautomotive field,and obtained theITAF16949 qualitysystem certicationin the automotiveindustry. 2015We successively launchedsuch products as Boxheaders and Ejectorheaders, which are mainlyused for solar inverters,entered the new energyfield, and developed I/Oseries products, furtherenriching the applicationscenarios of industrialcontrol connectors. 2019We increased investmentin high-end stampingand injection moldingequipment and expand-ed the mold processingcenter. Meanwhile, theCompany held the found-ing conference of thejoint stock company andunanimously resolved toconvert and establish asa joint stock company. 2023 Through our holding subsidiary WCONAutomotive, we developed high-fre-quency and high-speed automotive con-nectors such as Fakra, mini Fakra, andEthernet to expand our business eld. 2022We were listed on theChiNext Market ofthe Shenzhen StockExchange.2017 We moved our Dongguan HQto the Humen Plant, increas-ing the premise area to morethan 30,000 square meters. 2004 We secured UL (US)and CUL (Canada)safety certicationswhile launching theWafer series prod-ucts, significantlyexpanding the port-folio. 2013 We introduced the leanproduction managementmode, CAE product de-velopment, and Mod-el3D mold flow analysissimulation software tooptimize productionmanagement efficiencyand strengthen productdevelopment capabilities. 2024As the projectsfunded by the initialpublic offering ofshares were putinto production, wemoved our Donggu-an HQ to the DaningPlant and increasedthe premise area tomore than 60,000square meters, fur-ther improving thecapacity of intelli-gent manufacturingproduction. Appendix 2024 Environmental, Social, andGovernance Report Sustainable DevelopmentGovernance Strengthen Complianceto Solidify Governance Low-Carbon Operationsfor a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout theReport AboutWCONMessage from Chairman Sustainable DevelopmentGovernance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout theReport AboutWCON2024 Environmental, Social, andGovernance Report Message fromChairman Appendix Sustainable Development GovernanceSustainabilityGovernance Objectives The Company actively aligns with the UN Sustainable Development Goals (SDGs), formulating sustainability management objectives based on SDG princi-ples and its operational context. These objectives span five key areas: production operations, supply chain, employees, products, and social engagement.By collaborating with global enterprises and governmental agencies, the Company aims to address critical global challenges, including environmental pro-tection, social equity, and economic prosperity, to co-create a sustainable future landscape. SDGs Management Level Production/OperationSocial Engagement ActionObjectives ◎Further, refine and implement the envi- ronmental and hazardous substance processcontrol standards and systems under the ISO14001 and QC080000 systems ◎Optimize the energy structure and increasethe share of clean energy◎Establish a carbon emission managementsystem and achieve the ISO 14064 certifica-tion for carbon emission system◎Meet the standards for sewage detection◎Strictly implement the waste managementsystem and explore new channels for wasteconversion◎Implement the 3R concept◎Improve the corporate governance andinternal control system and reduce the risk ofinformation leakage ◎Strengthen the business ethics manage-ment and training systems, ensure unimpededaccess to anti-corruption reporting platformsand channels, and establish a feedback loopfor reporting and resolution◎Regularly conduct multi-channel communi-cation with stakeholders ◎Require suppliers to sign integrity and confidentiality agreements and continuouslymonitor their certications of social responsi-bility-related systems.◎Integrate the requirements of sustainable development actions into supplier audit crite-ria and establish a regular communication andsupervision mechanism◎Provide supplier training resources andplans Employees ◎Improve the EHS management system toachieve the goal of zero work-related acci-dents◎Ensure unimpeded access to employeecomplaint and reporting channels while regu-larly conducting anonymous employee satis-faction surveys◎Engage a third-party company to conductworkplace environment assessments to preventoccupational diseases regularly◎Intensify professional training in informa-tion security and privacy protection ◎Continuously conduct the anti-corruptionand integrity training and achieve 100% em-ployee sign-off on the Anti-Corruption andIntegrity Agreement for Employees ◎Implement a comprehensive employee per-formance reform, clarify the promotion path-ways for each position, and create all-aroundon-job training opportunities◎Improve the level of employee benets Product ◎Establish and optimize innovative man-ufacturing bases while introducing indus-try-leading manufacturing and quality man-agement software ◎Further rene and implement the internalquality control standards and systems underthe ISO 9001 and IATF 16949 systems◎Intensify R&D investment, comprehen-sively optimize the R&D environment, andsignificantly drive technological innovationand product upgrading◎Encourage R&D and technology iterationin green products and clean technologies ◎Regularly organize community volunteeractivities◎Create high-quality job opportunities◎Advocate peace and justice on a global scale Supply Chain Sustainable DevelopmentGovernance Strengthen Complianceto Solidify Governance Low-Carbon Operationsfor a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout the Report AboutWCON2024 Environmental, Social, andGovernance Report Message from Chairman Appendix Sustainability Governance Structure The Company integrates sustainability into its overall governance framework by developing theSustainability Management Handbook and establishing a three-tier governance structure: Board of Directors - Strategy Commit-tee - Sustainability Task Team (decision-making level - planning level - implementation level). With clear responsibilities dened for each tier, this structure ensures that ESG-related impacts, risks, and opportunities are ade-quately considered in business decision-making processes.The Board of Directors oversees the overall decision-making of the Company’s ESG strategy and action plans. The Strategy Committee leads the formulation of ESG strategies and medium-to-long-term plans and manages andsupervises the Sustainability Task Team’s annual work plans. The Sustainability Task Team handles day-to-day ESG operations, deploys and tracks sustainability initiatives, reports progress to the decision-making level, ensuresthe smooth deployment and effective implementation of annual work plans, coordinates with third-party consulting and rating agencies, organizes ESG-related training, and manages the archiving of all ESG documents andreports. The implementation level consists of functional departments, each responsible for establishing and enforcing ESG-related policies and organizing and supervising the implementation of departmental ESG initiatives. Operations CenterR&D CenterEngineering CenterMarketing CenterQuality CenterFinance CenterSecuritiesDepartment AuditDepartmentHuman ResourcesDepartment Administration Department IT Management Department Procurement Management Department Decision-making Level Planning Level Implementation Level ChairmanBoard of DirectorsStrategy CommitteeSustainability Task Team The Company has established internal and external audit systems for sustainability management to ensure effective implementation and continuous improvement of sustainability initiatives. Annual audits are conducted inaccordance with these systems, improvement tracking plans are developed based on audit reports, and the Sustainability Task Team is tasked with supervising and urging responsible units to implement improvement meas-ures until full completion. Governance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-Driven Transformation Human-CentricCommitmentAbout theReport AboutWCON2024 Environmental, Social, andGovernance Report Message fromChairman Appendix Communications with StakeholdersThe Company prioritizes stakeholder engagement by conducting a stakeholder identication process based on business operations. Key stakeholders include shareholders and investors, employees, suppliers, customers, indus-try associations or research institutions, and government or regulatory bodies. Multiple communication channels are established to gather and respond to stakeholders’ expectations and suggestions systematically. ◎Special Reports◎Cooperate withGovernment Research◎Compliance Supervi-sion Investigation ◎Community Public Wel- fare Activities ◎Media Communication◎Industry Exchanges◎Industry-university-re-search Cooperation ◎Customer Communica-tion and Feedback Channels◎After-sales Support◎Customer Satisfaction Survey◎Industry Exchanges ◎Supplier Assessmentand Audit ◎Supplier Communica- tion ◎ Labor Union Commit- tee ◎ Employee Training◎ Employee Activities◎ Employee SatisfactionSurveys Communication Methods and Channels Response ◎Improve the Environ- mental ManagementSystem◎Compliant Operation ◎Provide Local Job Opportunities◎Strengthen InnovationCapabilities◎Adhere to ProductQuality Management◎Adhere to productQuality Management◎Improve CustomerService Management◎Strengthen InnovationCapabilities◎Strengthen InformationSecurity Management ◎Improve the SupplierManagement System◎Implement TransparentProcurement◎Supplier ESG Manage-ment ◎Improving Compensa-tion and Benet Systems◎Establishing an Em-ployee Training System◎Offering Clear CareerDevelopment Channels◎Ensuring Employees’Occupational Health andSafety ◎Improvement of Corpo-rate Governance◎Strengthen investorrelations management ◎Improvement of Prot- ability ◎Improve the Sus- tainable DevelopmentManagement System ◎Shareholders’ Meeting◎Information Disclosure◎Performance Briengs◎Investor Research Reception ◎Corporate Governance Compliance ◎Protection of Share- holders’ Rights andInterests◎Compliance and RiskControl ◎ESG Governance ◎Protection of Employ- ees' Legal Rights andInterests ◎Training and Develop- ment ◎Occupational Health and Safety ◎Supply Chain Security◎Anti-commercial Brib- ery and Anti-corruption ◎Product and Service Safety and Quality ◎Innovation-Driven Growth ◎Data Security and Privacy Protection ◎Innovation-Driven Growth ◎Product and Service Safety and Quality ◎Contribution to Society ◎ESG Governance ◎Environmental Com- pliance Management ◎Corporate Govern-ance Compliance Topics of Concern Stakeholders Shareholders and Investors EmployeesSuppliersCustomers Industry Associationsor ResearchInstitutions Social Organizations, Media and the Public Governmental orRegulatory Agencies Governance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout theReport AboutWCON 2024 Environmental, Social, andGovernance Report Message from Chairman Appendix Management of Material Topics The Company refers to the assessment methods stated in domestic and international disclosure standards such as the Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange - Sustainability Re-port (For Trial Implementation).It introduces the analytical perspectives of impact materiality and nancial materiality to identify and assess material topics, with the specic implementation steps as follows: Step 1: Understand theCompany's backgroundAssessmentProcess of Material Topics Assessment Method Step 2: Conductpreliminary topic screening Step 3: Assess the materiality of topics 1-1：Analyze based on global trends and conduct macro-environment anal-ysis of China's industry developmenttrends1-2：Analyze based on the industry1-3：Analyze based on the Company'sbusiness model1-4：Identify the stakeholders of theCompany and the impacts, risks, andopportunities the Company faces Drawing on theSelf-Regulatory Guide-lines No. 17 for Companies Listed onShenzhen Stock Exchange - Sustainabil-ity Report (For Trial Implementation),UNSustainable Development Goals (SDGs),SASB, MSCI, and related topics fromdomestic and international peers, theCompany identified 23 material topicsbased on its conditions and establisheda sustainability topic library. 3-1：Assess impact materialitySort through the potential or actual positive ornegative impacts of each topic on the externalenvironment, society, and economy, and con-duct a survey analysis of stakeholders usinga questionnaire. A total of 194 questionnaireswere collected, and based on the survey results,17 topics with impact materiality were identi-ed.3-2：Assess nancial materialityThrough the analysis of impacts, dependencies,and other factors, in combination with question-naires (74) and expert judgments and risk iden-tication and evaluation lists from departments,identify and assess risks and opportunitiesunder each relevant topic and identify 5 issueswith nancial materiality. Form a topic list based on im-pact materiality and financialmateriality, and ensure that therelevant topics are transparent-ly, fairly, and comprehensivelydisclosed in the report. Step 4: Conrmmaterial topics Analysis Steps of Material Topics Governance Strengthen Complianceto Solidify Governance Low-Carbon Operationsfor a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout theReport AboutWCON2024 Environmental, Social, andGovernance Report Message fromChairman AppendixMaterial Topic LibraryAssessment Result of Topic Materiality Based on the analysis results of industry standard and stakeholder feedback from returned surveys, weidentied key issues in two dimensions of "impact materiality" and "nancial materiality" to form a matrix ofmaterial topics in 2024. Note: Topics such as technological ethics, ecosystem and biodiversity conservation, and equal treatment of smalland medium-sized enterprises fall under disclosure topics for specic stakeholders that the Company does not cur-rently engage in, and thus relevant content will not be disclosed. DimensionTopics -Dual Materiality Assessment and Analysis- Materiality to corporate nance Materiality to economic, social, and environmental impacts Very high General Materiality Very highGeneral Materiality ◎Ecosystem and Biodiversity Protection◎Contribution to Society◎Rural Revitalization◎Due Diligence◎Communications with Stakeholders◎ESG Governance ◎Energy Utilization◎Response to Climate Change◎Innovation-Driven Growth◎Product and Service Safety and Quality◎Supply Chain Security ◎Environmental Compliance Management ◎Water Resource Utilization◎Pollutant Emissions◎Waste Disposal ◎Protection of Employees'Legal Rights and Interests ◎Training and development◎Occupational Health and Safety ◎Data Security andPrivacy Protection◎Protection ofShareholders’ Rights andInterests◎Corporate GovernanceCompliance◎Compliance and RiskControl◎Anti-commercial Briberyand Anti-corruption Environmental ◎ Environmental ComplianceManagement◎ Energy Utilization◎ Response to Climate Change◎ Water Resource Utilization ◎ Pollutant Emissions◎ Waste Disposal◎ Ecosystem and Biodiversity Protection Social ◎ Protection of Employees' Legal Rights and Interests◎ Training and development◎ Occupational Health andSafety ◎ Innovation-Driven Growth◎ Product and Service Safe- ty and Quality ◎ Data Security and PrivacyProtection◎ Supply Chain Security◎ Contribution to Society◎ Rural Revitalization CorporateGovernance ◎ Protection of Sharehold- ers’ Rights and Interests ◎ Corporate Governance Compliance◎ Compliance and Risk Con-trol ◎ Anti-commercial Briberyand Anti-corruption ◎ Due Diligence◎ Communications with Stake- holders◎ ESG Governance Message fromChairman Sustainable Development Governance Strengthen Complianceto Solidify Governance Low-Carbon Operationsfor a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout theReport AboutWCON 2024 Environmental, Social, andGovernance Report Appendix WCON remains steadfastly committed to fulllinglegal obligations and ensuring regulatory com-pliance in corporate governance. It continuouslyimproves its corporate governance structure,strengthens internal control and risk managementsystems, protects shareholders' legitimate rightsand interests, and strictly upholds business ethics.These efforts solidify the Company’s developmentfoundation and safeguard its comprehensive andstable operations. Strengthen Complianceto Solidify Governance ◎Standardization of Corporate Governance◎Protection of Shareholders' Rights and Interests◎Compliance and Risk Control◎Anti-commercial Bribery and Anti-corruption◎Data Security and Privacy Protection Responded Topics Sustainable DevelopmentGovernance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout theReport AboutWCON2024 Environmental, Social, andGovernance Report Message fromChairman Appendix The convening, holding, and voting procedures of the Company’s Shareholders’ Meeting comply with the re-quirements of theCompany Law,Articles of Association, andRules of Procedure for Shareholders’ Meeting.Professional lawyers were retained to witness the proceedings on-site and issue legal opinions on their le-gality. The Shareholders’ Meeting adopts on-site and online voting methods to provide convenient conditionsfor shareholders to participate in the meeting. Separate vote tabulation is carried out for material mattersaffecting the interests of minority shareholders to ensure that all shareholders, particularly minority share-holders, can fully exercise their rights and safeguard the legitimate rights and interests of shareholders. Shareholders’ Meeting Standardize Governance for Stable Operation Governance through the Shareholders’ Meeting, Board of Directors, and Board of Supervisors During the Reporting Period, the Company strictly adhered to laws and regulations, including theCompanyLaw, Securities Law, andGovernance Code for Listed Companies. It revised key governance documents suchas theArticles of Association, Related Party Transaction Decision-Making System, andInformation DisclosureManagement System, continuously improving corporate governance frameworks to standardize operationsfurther and enhance governance standards.The Company has established a corporate governance structure with a clear division of responsibilitiesamong the Shareholders’ Meeting, Board of Directors, Board of Supervisors, and the Management, ensuringeach entity fullls its distinct roles while maintaining checks and balances. This structure enables scienticdecision-making and standardized operations by implementing scientic and practical governance frame-works and operational processes, maximizing the roles of governance bodies in strategic decision-making,operational management, and oversight to safeguard stable and efcient corporate operations. The Board of Directors convened meetings, deliberated and approved items;The Board of Supervisors convened meetings, deliberated and approved items, of which, items were approved by the Board of Supervisors and items were submitted to the Share-holders’ Meeting for approval. The Shareholders’ Meeting convened meetings, deliberated and approved items; Board of SupervisorsThe Company’s supervisors strictly adhere to theArticles ofAssociationandRules of Procedure of the Supervisory Board,attend the meetings of the Board of Supervisors, partici-pate in the Board of Directors and Shareholders’ Meeting asnon-voting observers, review periodic reports prepared bythe Board of Directors, and issue written verication opinions.They effectively oversee the Company’s daily operations, ma-terial matters, nancial status, and the legality and compli-ance of directors’ and senior management’s duties, ensuringstandardized corporate operations. During the Reporting Period Board of DirectorsThe Company has formulated theRules of Procedure for the Board of Directors to strictly regulate meeting proce-dures and decision-making processes, ensuring directors and the Board of Directors fulll their duties effectively.The Board of Directors consists meets the requirements for board size and composition. The Board of Directorshas established four specialized committees: the Nomination Committee, Compensation and Appraisal Commit-tee, Strategy Committee, and Audit Committee, each with adopted rules of procedure. Each committee comprisesat least one independent director, which enhances the operational capacity and professional expertise of theBoard of Directors while ensuring its scientic and standardized decision-making processes. Business managementAccountingEngineeringProfessionaldistributionof directors the Company held special committee meetingsto deliberate proposals.The Board of Directors consists of directors,including independent directors. During the Reporting Period the Board of Supervisors comprised members, including employeerepresentative supervisor. During the Reporting Period Board of DirectorsShareholders’ Meeting Board of Supervisors Nomination Committee Compensation and Appraisal Committee Strategy CommitteeAudit Committee Sustainable DevelopmentGovernance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout theReport AboutWCON 2024 Environmental, Social, andGovernance Report Message fromChairman Appendix Collect internal and external initial information related to corporate risks and riskmanagement based on the analysis of risk types, including historical and predictivedata. Among them, the risk types include but are not limited to strategic, nancial,market, operational, and legal compliance risks.RiskIdentication Monitor and analyze various factors in the Company's operational process to iden-tify potential risks in advance and trigger timely warnings.RiskEarly Warning Each functional department conducts regular self-assessments and inspectionsto implement the risk management solutions, while the Internal Audit Departmentprovides oversight and evaluation. RiskControlling Through continuously monitoring and tracking the identied risks, the Companymaintains real-time awareness of evolving risk proles to enable timely adaptationand implementation of responsive measures for effective risk control.◎ Clarify the specic risk indicators of different risk types;◎ Establish a risk monitoring system and improve the efciency and accuracy of risk tracking through the automatic collection and analysis of real-time data;◎ Regularly conduct a comprehensive assessment of risks, analyze the develop-ment trends of risks, and evaluate the effectiveness of the measures taken by theenterprise to deal with risks to adjust strategies promptly. RiskTracking the Company made a total tax paymentof RMB26,883,155.63. In accordance with theCompany LawandArticles of Association, the Company has formulated theRemu-neration Management System for Directors, Supervisors, and Senior Managers, establishing a remunerationand performance evaluation framework for directors, supervisors, and senior executives. This system aimsto rationally determine their compensation levels and payment structures, ensure active and effective dis-charge of responsibilities and duties, and promote the Company’s healthy, sustainable, and stable develop-ment.Based on operational performance during the Reporting Period, the Company formulated and deliberated theRemuneration Plan for Directors, Supervisors, and Senior Managers in 2024. It is comprehensively evaluatedand conrmed according to their specic job positions in the Company, in accordance with the remunerationmanagement regulations and performance assessment. None of the Company's independent directors holdother positions in the Company, and their allowance standards are implemented in accordance with theresolution of the Company's second extraordinary shareholders’meeting in 2022, that is, RMB 120,000/year(including tax).The remuneration of the Company's non-independent directors, supervisors, and senior managers basic salaryyear-end bonus Remuneration Management of Directors, Supervisors and Ocers Risk Management and Internal Control The Company places signicant emphasis on risk management, continuously establishing a comprehensiverisk management framework that integrates risk identification into corporate decision-making processes,strengthens risk controls, and enhances risk mitigation capabilities to provide a solid foundation for sustaina-ble development.The Company has established a dedicated risk management function that periodically inspects and assessesthe implementation and effectiveness of risk management practices across departments and business units.It evaluates cross-functional risk management solutions, provides recommendations for adjustments or im-provements, and issues evaluation and recommendation reports. The Company’s Internal Audit Departmentconducts at least one annual supervisory evaluation of risk management practices and their effectivenessacross all departments, preparing and submitting evaluation reports to the Audit Committee for oversight. Risk Management To standardize the Company's internal control, reasonably prevent and effectively control the risks in theCompany's operations and management, and promote its sustainable development, the Company hasformulated theInternal Control Management Systemand established a long-term mechanism for internalcontrol evaluation. During the Reporting Period, under the leadership of the Board's Audit Committee, theCompany's Audit Department actively carried out audit oversight in accordance with the Company's 2024 in-ternal audit work plan, completing the 2024 annual internal audit work. No material irregularities were identi-ed upon review. Internal Control The Company strictly complies with relevant tax lawsand regulations, implementing rigorous manage-ment of all tax-related operations. The Company'sFinance Department is responsible for tax lings, taxaccounting, and tax planning activities, supported bya dedicated General Ledger Tax position that handlesnational and local tax declarations, duty drawbacklings, monitors changes in tax policies, and mitigatesenterprise tax-related risks. Tax Management During the Reporting Period Sustainable DevelopmentGovernance Strengthen Complianceto Solidify Governance Low-Carbon Operationsfor a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout theReport AboutWCON2024 Environmental, Social, andGovernance Report Message from Chairman Appendix Enhance Investor Relations to Protect Shareholders' Interests After a comprehensive evaluationby the Shenzhen Stock Exchange,the Company received a ratingof A for its information disclosurework from 2023 to 2024. 32.703,663.12 The proportion of Net ProtAttributable to Shareholders of the Parent Company(%)Total Cash Distribution(Including Tax)(In 10,000 yuan)Cash Dividend PerShare (Including Tax)(yuan/share) 2022 Annual 0.50 25.06 3,267.332023 Annual 0.30 64.065,475.030.50 2024 Annual Note 1: It includes the actual dividend distribution in the rst half of 2024 and the total amount of the proposed dividend distribution for the year 2024 Dividends in the Past Three Years To standardize the management of investor relations, the Company has formulated theInvestor Relations Management Systemand theMeasures forthe Management of Media Interviews and Investor Research Engagement Receptionin accordance with the requirements of laws and regulations suchas theCompany Law, theSecurities Law, and theGuidelines on Investor Relations Management of Listed Companies. The Company adheres to the prin-ciples of full information disclosure, compliant information disclosure, equal opportunities for investors, integrity and trustworthiness, high efciency andlow consumption, interactive communication, etc. It communicates with investors through multiple channels and at various levels to objectively, truthful-ly, accurately, and completely introduce and reect the company's actual situation, enhance investors' understanding of the Company and value recog-nition, and effectively safeguard investors' right to know. Web ConferencesShareholders’ MeetingPerformance BriengsCompany's WebsiteOne-on-one CommunicationsCompany AnnouncementTeleconferencesInteractive Easy PlatformEmailTelephone ConsultationsInvestor Reception Days Investor Relations Management The Company strictly complies with the laws and regulations, such as theAdministrative Measures for Dis-closure of Information by Listed Companies, and formulates theInformation Disclosure Management System to standardize the information disclosure behaviors of the Company and relevant information disclosureobligors and ensure that the information disclosure is true, accurate, complete and timely. Meanwhile, theCompany has formulated an Insider Registration System to strengthen the condentiality of inside informa-tion and maintain the principle of fairness in information disclosure, which can ensure that the processes oftransmission, review, and disclosure of undisclosed information are legal and compliant to prevent insidertrading.During the Reporting Period, the Company further revised theInformation Disclosure Management System and continuously improved the transparency and quality of information disclosure. Beyond mandatory disclo-sures, the Company proactively and timely discloses all information that may materially impact stakeholders’decisions, ensuring equal access to information for all shareholders. Information Disclosure While paying attention to its development, the Company attaches great importance to shareholder returnsand actively formulates and effectively implements the prot distribution plans. In line with the guidanceof the China Securities Regulatory Commission to encourage enterprises to distribute cash dividends andprovide investors with stable and reasonable returns, the Company implemented the 2023 prot distributionplan. To further increase the frequency of dividends and enhance the level of investor returns, the Companypromoted and implemented the semi-annual equity distribution plan for 2024. Dividend Return the Company held performance briengs in total, partic-ipated in reception day event, received investors' on-siteresearch engagement activities many times,Replied to over investor calls and emails;Published records of in-vestor relations activity and answered questions onthe Interactive Easy platform with a reply rate of100%. During the Reporting Period announcements were disclosed, including periodicreports and temporary announcements. penalties im-posed for violations related to information disclosure. During the Reporting Period Investorcommunication channels A level Sustainable DevelopmentGovernance Strengthen Complianceto Solidify Governance Low-Carbon Operationsfor a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout theReport AboutWCON2024 Environmental, Social, andGovernance Report Message from Chairman Appendix Reinforce Compliance for Business Ethics The Company always adheres to honest operation and establishes a sound compliance management system. To effectively prevent and control the compliance risks and improve the Company's compliance-driven operationalmanagement capabilities, the Company has formulated theInternal Control Management Systemand established a dedicated Compliance Management Department according to the requirements of laws and regulationssuch as theCompany Law.The Company’s principal responsible person serves as the primary driver for advancing the rule of law and bears ultimate accountability for compliance. The Compliance Management Departmentleads and coordinates compliance-related initiatives, while functional departments implement compliance risk assessments, reviews, and other measures in line with their respective functions.The Company continuously strengthens its compliance management system by standardizing the compliance operation mechanism, cultivating a compliance culture, enhancing the information system's control, reinforcing su-pervision and accountability, raising overall compliance awareness, and ensuring lawful and compliant business operations. Standardize the Operation Mechanism ◎ Establish a compliance risk identication, assessment, and early warning mechanism◎ Embed compliance review as a necessaryprocedure in the operation and manage-ment process ◎ Each functional department establishes arectication mechanism for non-complianceissues◎ Establish and improve a coordinated op- eration mechanism for compliance manage-ment, legal affairs management, internalcontrol, risk management, etc., in combina-tion with the actual situation◎ Regularly carry out an effectivenessevaluation of the compliance managementsystem ◎ Incorporate compliance management into the annual special learning topic ◎ Establish a normalized compliance train-ing mechanism◎ Strengthen the compliance publicity andeducation, promptly release compliancemanuals, and organize the signing of com-pliance commitments ◎ Incorporate the compliance regulations, typical cases, compliance training, recordsof non-compliant behaviors, etc., into theinformation system◎ Regularly review the business processesto identify the compliance risk points andstrengthen compliance reviews at criticaljunctures◎ Realize the interconnection, data sharing,and common use between the compliancemanagement information system and otherinformation systems for nance, investment,and procurement The Company's Audit Department and Se-curities Department monitor the implemen-tation of compliance requirements, investi-gate non-compliant behaviors, and pursueaccountability in accordance with relevantregulations and within their respective au-thorities. Compliance Management Cultivate a Compliance CultureStrengthen Information ControlStrengthen Supervision and Accountability Sustainable DevelopmentGovernance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-Driven Transformation Human-CentricCommitmentAbout theReport AboutWCON2024 Environmental, Social, andGovernance Report Message fromChairman Appendix The Company and its afliated companies are committed to responsible business behaviors and strictly abide by relevant laws, regulations, and business ethics. The Integrity and Anti-bribery Policyhas been formulated torequire all employees and external third parties engaged in business with the Company to comply with the Policy while expressly prohibiting all forms of bribery and corrupt practices. The Company establishes an audit teamresponsible for formulating and implementing the Company's anti-bribery policy and supervising and facilitating the execution of relevant compliance initiatives.The Company proactively adopts and implements control measures to prevent and detect bribery and corrupt practices, promoting clean management.During the reporting period, no litigation events occurred as a result ofcommercial bribery or corruption. To ensure the effective implementation of the anti-bribery management system, the Company carries out anti-bribery-related training programs. It integrates the Integrity and Anti-bribery Policy into the new employee on-boarding so that employees can understand the anti-corruption laws, requirements, and obligations of the Company's anti-bribery management. By aligning integrity culture with corporate governance and job functions, theCompany strives to foster an environment of ethical business conduct. During the Reporting Period, the Company held 2 special training sessions on theIntegrity and Anti-bribery Policy for employees in key and sensitive posi-tions. The trainees encompassed all the staff at middle and senior management levels. ◎ Sign theAgreement for Integrity and Self-discipline of Employeeswith employees and theIntegrity Agreement with business partners to institutionalize the prevention of corrupt practices; ◎ Interview employees in key departments and sensitive executives, including middle-level managers and senior leaders, and conduct questionnaires on corporate integrity, ethics, and commercial bribery for employees in key departments at different levels to gain in-depth insights into employees’ genuine perspectives and actual situations and strictly control and prevent any potential conicts of interest; ◎ Conduct self-examinations by irregularly reviewing relevant contracts, reimbursement vouchers, and other documentation and analyzing the business data of key positions and sensitive processes;◎ Standardize the management of the gift acceptance and entertainment expenses to prevent commercial bribery through improper gifts and entertainment;◎ Implement the job rotation system and the nepotism avoidance policies for key positions to prevent the abuse of power and commercial bribery. Anti-Commercial Bribery and Anti-Corruption Total duration of anti-commercial bribery and anti-corruption trainingprovided to directors: hoursprovided to the Management: hoursprovided to employees: hours During the Reporting Period Anti-Commercial Anti-Commercial BriberyBribery Governance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout the Report AboutWCON2024 Environmental, Social, andGovernance Report Message fromChairman Appendix To standardize marketing management and prevent unfair competition behaviors, the Company hasformulated systems such as theAnti-monopoly Compliance Management Systemand theMeasuresfor Management of Market and Competition Analysisin accordance with theAnti-Monopoly Law ofthe People's Republic of China and the Anti-monopoly Compliance Guide for Operators, explicitly pro-hibiting unfair practices such as false advertising, maliciously slandering competitors, and stealingtrade secrets in marketing. By doing so, the Company continuously enhances its ability to prevent,control, and deal with anti-monopoly compliance risks and solidies the foundation for law-abidingand compliant operations. The Company adheres to the principles of problem orientation, practicalityand high efciency, and comprehensive coverage in anti-monopoly compliance management, estab-lishing a continuous supervision mechanism to monitor the market dynamics, industry competitionconditions, changes in laws and regulations, and the Company's internal practices. It periodicallyreviews the effectiveness of risk management measures and adjusts strategies based on the actualsituation to ensure ongoing compliance with anti-monopoly and anti-unfair competition requirements.The Company regularly organizes anti-unfair competition training for marketing personnel, includingrelevant laws and regulations, internal corporate rules, and case studies to strengthen awareness offair competition. Anti-unfair competition compliance is integrated into the performance assessment,with the results directly linked to employees' salary adjustments, bonus distributions, promotions, andjob adjustments. Employees demonstrating excellence in anti-unfair competition will receive commen-dations and incentives, and those who violate the regulations will be punished proportionately to theseverity of the offense.No incidents of unfair competition took place during the reporting period.The Company establishes a unique whistleblowing channel through which reporting information canbe received. Any relevant party aware of any actual or suspected violations of theIntegrity and An-ti-bribery Policymay report the relevant incidents according to the established process. The AuditTeam will initiate appropriate actions for alleged misconduct, improper behavior, or fraud. The Compa-ny supports both named and anonymous whistleblowing, rmly safeguarding whistleblowers’ safetyand interests from any negative impacts while ensuring the condentiality of reported information isstrictly protected. Rewards are provided to individuals whose recommendations are implemented orwhose reports are veried to be true. Channels The Audit Team receives the whis-tleblowing information and con-ducts a preliminary verication;Abnormalities in fund flows areidentied during the internal auditor nancial inspection; Evaluate the impact caused bythe incident and impose appro-priate disciplinary actions on thepersons involved based on theinvestigation ndings and impactassessments. In cases involvingillegal or criminal acts, the caseshall be referred to the judicialauthorities for handling. The Audit Team expeditiously con-ducts information gathering andother related tasks, launching afurther in-depth investigation intoincidents with profound integrityor bribery problems identified inthe preliminary investigation. Ifnecessary, external professionalinstitutions are enlisted to assistin the investigation; Occurrence of theIncidents and Receipt ofWhistleblowing Incident Investigation Evaluation and Handling Whistleblowing Handling Process Audit Department, WCON Electronics (Guang-dong) Co., Ltd., No. 15 Wenming Road, Dan-ing, Humen Town, Dongguan, Guangdong Written or in-person reportsHrdg02@wcon.comEmail Clean WCONWeChat Public Account 0769-85358920-6075Phone Anti-Unfair Competition Whistleblowing and Whistleblower Protection Anti-Unfair CompetitionAnti-Unfair Competition Sustainable DevelopmentGovernance Strengthen Complianceto Solidify Governance Low-Carbon Operationsfor a Green World Innovation-Driven Transformation Human-CentricCommitmentAbout theReport AboutWCON2024 Environmental, Social, andGovernance Report Message fromChairman Appendix Prioritize Data Security to Prevent Privacy Breach The Company regards data security as an essential cornerstone of its development. It adopts a multi-pronged ap-proach covering technology, management, and personnel awareness to construct a comprehensive, multi-layeredprotection system. This effectively guarantees the security of corporate data assets, maintains the corporate repu-tation and customer trust, and lays a solid foundation for the Company's sustainable development.The Company regards data security as an essential cornerstone of its development, upholding the datasecurity management philosophy of “prevention orientation, comprehensive governance, security andcontrollability, and continuous improvement.” A multifaceted approach covering technology, management,and personnel awareness constructs a comprehensive, multi-layered protective system to strictly safe-guard the absolute security of internal core business data, operational information, and customer privacy.The Company continuously optimizes and improves its security management strategies to adapt to thechallenges posed by new technologies and emerging business models. During the reporting period, no inci-dents of data security breaches or customer privacy breaches were reported at the Company. Data CenterTipray Green Shield Encryption SystemSangfor Firewall ◎ Adopt the Tipray Green Shield Encryption System to encrypt data;◎ Implement a multi-factor authentication mechanism and role-based access controlpermissions. Establish a DataSecurity ProtectionPlatform ◎ Deploy rewalls and intrusion detection/prevention systems;◎ Provide security development training for various business applications developed by the Company; deploy web application rewalls for applications.Implement System SecurityProtection ◎ The data center is equipped with physical protection facilities such as automatic alarm systems and surveillance cameras; an environmental monitoring system is deployed to ensure that the equipment operates in suitable environmental conditions; ◎ Establish a secure network architecture and deploy server security protection software.Build a DataCenter ◎Regularly conduct health checks on servers, storage devices, and network equipment that store key data; ◎ Adopt redundant design for key data hardware equipment; ◎Regularly test data backup devices and check the integrity and recoverability of backup data.Periodically TestCritical Data Hardware Equipment ◎ Regularly conduct functional and performance tests on key data systems; ◎ Establish a security vulnerability management mechanism to track and manage identied security vulnerabilities; ◎ Regularly conduct security vulnerability tests.PeriodicallyTest Key Data Systems Management Measures The Company strictly follows laws and regulations such as theNetwork Security Law of the People's Re-public of China, theData Security Law of the People's Republic of China, and thePersonal Information Pro-tection Law of the People's Republic of China, formulating theInformation Security Protection Systemtostandardize the scientic and secure data management strategies and processes. It implements effectivedata security technologies and management measures to safeguard the condentiality, availability, andintegrity of data during the processes of collection, transmission, exchange, processing, and storage.The Company establishes an IT Department led by an information security ofcer and supported by opera-tions and maintenance personnel. It is responsible for the daily security management of corporate systemsand data to conduct information security risk assessments, implement security projects, and organize con-tingency drills. Through well-dened institutional frameworks and organizational structures, the Companyensures clear functional demarcation and effective implementation of data security management. In orderto strengthen the information security expertise of relevant personnel, the Company organizes specializedtraining programs on relevant knowledge of information data security and continuously improves theirprofessional capabilities. Governance of Data Security Data Security Protection The Company conducted information data securitytraining sessions,investing RMB97,000 in data security. During the Reporting Period Sustainable DevelopmentGovernance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout the Report AboutWCON 2024 Environmental, Social, andGovernance Report Message fromChairman Appendix The Company attaches great importance to customer information security, protects customer information assets, maintains customer privacy, avoids information security incidents, and ensures the security and condentialityof customer information. Control File Access Permissions Control the permissions of the le directories storing user data in-formation, set different permission categories, and allocate themaccording to business needs. File Access AuditRecord the operation activities related to user data and the cor-responding users. The audit system will trigger alerts and recordnon-compliant operations to ensure the security of user le directo-ries. Encrypt Customer Data Adopt an automatic encryption strategy to save customer data andset the control level for decryption permissions. If the permissionlevel does not match, the le's content will remain encrypted andunreadable after opening it. ProtectiveMeasures Customer Privacy Protection Governance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout theReport AboutWCON2024 Environmental, Social, andGovernance Report Message from Chairman Appendix WCON has always adhered to the concept of greendevelopment, proactively responded to the challengesof climate change, continuously improved the level ofenvironmental management, strengthened the pre-vention and control of pollution and waste, improvedthe efciency of energy and resource utilization, and iscommitted to building a green and low-carbon modernindustrial park, promoting the green and sustainabledevelopment of the enterprise, and making contribu-tions to the national “dual carbon” goal. Low-Carbon Operationsfor a Green World ◎Response to Climate Change◎Environmental Compliance Management◎Pollutant Emissions◎Waste Treatment◎Energy Utilization◎Water Resource Utilization Responded Topics Governance Strengthen Complianceto Solidify Governance Low-Carbon Operationsfor a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout the Report AboutWCON 2024 Environmental, Social, andGovernance Report Message from Chairman Appendix Low-Carbon Initiatives to Address Climate ChangeClimate change is one of today's most signicant global risks, threatening human health and enterprises' long-term sustainable development. To implement the national “dual-carbon” policy, by drawing on the recommenda-tions of the Task Force on Climate-related Financial Disclosures (TCFD), the Company manages climate-related risks and opportunities through four dimension, namely governance structure, risk and opportunity identication,risk management, and metrics and targets. General Manager’s Ofce Environmental and Climate Change Management Committee General Manager Member ofthe HumanResourcesDepartment Member ofMarketing Center Member ofR&D Center Member ofthe QualityManagementDepartment Member of theManufacturing Department Member ofHardwareand PlasticDepartment Member of theProductionPlanningDepartment Memberof ProjectManagementDepartment Member of theManufacturingEngineeringDepartment The Company formulates theControl Procedure for Combating Climate Change to standardize the management and response measures of the enterprise in addressing the environmental and climate variability issues. It pro-gressively constructs a climate governance system to tackle challenges posed by climate change proactively. The General Manager's Ofce of the Company is responsible for formulating climate strategies and objectives toensure the proactive alignment of overall corporate development strategies with climate change trends. The Environmental and Climate Change Management Committee is responsible for the specic formulation of climatepolicies, risk assessment, and supervision of implementation to ensure the effective implementation of climate strategies. The Management integrates climate strategies into daily operations and supervises the implementa-tion of climate adaptation measures across all business units. Each business unit formulates and implements specic climate adaptation measures according to its characteristics and business scope to ensure that the enter-prise fully considers climate change factors in daily operations and achieves sustainable development.To improve climate variability governance, the Company established positions of Carbon Emission Administrators and Verication Process Inspectors, enforcing strict requirements for personnel's years of professional experi-ence, general knowledge and skill prociency, and specialized knowledge and expertise. Climate Change Governance The Company systematically evaluates the array of risks and op-portunities confronting the Company, classifying them into physicalrisks, transition risks, and opportunities. Drawing on national laws andregulations, policy directives, domestic and international sustainabledevelopment trends, and organizational context, we dene and de-scribe the risks and opportunities climate change precipitates. Basedon identified risks and opportunities, the Company analyzes theirlikelihood and severity in light of daily operational activities, furtherevaluates potential nancial impacts on the Company, and formulatescorresponding management and response measures to address cli-mate change while seizing opportunities proactively. Risk and Opportunity Identication Process During the Reporting Period, the Companyorganized knowledge training sessionsfor carbon management personnel and con-ducted question-based assessments on thetrainees. The overall assessment results wereall qualied . Governance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-Driven Transformation Human-CentricCommitmentAbout theReport AboutWCON 2024 Environmental, Social, andGovernance Report Message fromChairman Appendix RiskType RiskDescription Description Risk Analysis Explanation of Potential Financial Impact Management MeasuresSeverityFrequency Transition Risks Market Risks Increase in Raw Material Costs52 Factors such as climate changemay lead to an increase in rawmaterial prices and purchasecosts. ◎Screen alternative suppliers to reasonably control the purchase costs.◎Promote suppliers' transition towards energy conservation and emission reductionthrough supplier communication, implementation programs, and investigation.◎Establish a low-carbon monitoring mechanism for upstream raw materials.◎Accelerate the green transformation and introduce new technologies and materials. Change in Consumer Behavior52 The change in consumer pref-erences leads to a decreasein the demand for goods andservices, a reduction in operat-ing income, and an increase inoperating costs. ◎Advocate for using clean energy, building rooftop photovoltaics, purchasing green elec-tricity and certicates, etc., to accelerate the green transformation.◎Introduce new technologies and materials.◎Establish a low-carbon monitoring mechanism for upstream raw materials. Policy andRegulatory Risks Carbon Emission Control Policy52 Policy changes lead to thewrite-off, impairment, or earlyretirement of existing assets;failure to promptly respond tocontrol policy may lead to ille-gal nes and increased compli-ance operation costs. ◎Pay attention to policy changes in various regions and adjust based on the situationand customer needs.◎Use clean energy such as rooftop photovoltaics and purchase green electricity to re-place traditional fossil energy and promote the transformation of the energy structure. ◎Set the objectives of energy conservation and consumption reduction, promote energyconservation and emission reduction, and improve energy use efciency from the man-agement and technical levels.◎Analyze the future change trends of energy efciency standards to ensure that the Company's production equipment and processes meet the requirements of new stand-ards.The government, socialorganizations, and residents donot accept excessive pollution emissions The pollution emissions maylead to illegal nes and causea negative reputation. ◎The EHS management plan shall be strictly implemented to ensure that the company'swastewater, exhaust gas, and perimeter noise emissions meet the standards, with atleast compliance monitoring once a year. Climate Change Strategy Sustainable DevelopmentGovernance Strengthen Complianceto Solidify Governance Low-Carbon Operationsfor a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout the Report AboutWCON2024 Environmental, Social, andGovernance Report Message fromChairman Appendix RiskType RiskDescription Description Risk Analysis Explanation of Potential Financial Impact Management MeasuresSeverityFrequency TransitionRisks Policy andRegulatoryRisks There is a lack of proper identi-cation, collection, and publicityof applicable EHS laws and reg-ulations. Moreover, the environ-mental factors and hazards re-lated to the Company's internalactivities are not clearly dened,and some employees have aweak sense of compliance withthe law Failure to promptly identify andrespond to policy control may leadto illegal nes; inadequate internalrisk identification increases oper-ating costs. ◎Strengthen the identication, collection, and periodic updates of applicable EHS laws and regulations, with key provisions incorporated into training programs or institutional-ized in company policies. TechnologyRisks Technology Substitution Risk52 Increase in R&D expendituresand procurement costs. ◎Pay close attention to green innovations such as clean energy and energy-saving tech-nologies, and evaluate whether the enterprise can adapt to technological changes. ◎Establish diversied relationships with technology suppliers to mitigate reliance on asingle technology supplier and minimize the risks associated with technology transition. ReputationRisks Increased Concerns or NegativeFeedback from Stakeholders The decrease in customers' trustin the Company leads to a declinein product demand and a reduc-tion in revenue. ◎Publicly disclose policies and information related to climate change to ensure all stake-holders can obtain relevant information and supervise and evaluate the Company's per-formance.◎Evaluate the possible impact of climate change on the enterprise's brand image andcustomer loyalty and formulate response strategies for maintaining and enhancing thebrand reputation.◎Conduct a customer satisfaction survey in the form of a questionnaire once a year andsummarize the customer satisfaction survey results to let relevant departments take cor-responding corrective and preventive measures. PhysicalRisks Climate Risks Extraordinary Climate Emergen-cies (such as Typhoons, Rain-storms,Floods, Earthquakes, etc.) Sudden weather causes damageto infrastructure and equipment,leading to an increase in operatingcosts; it may affect the productionschedule and cause a decrease inoperating income. ◎ Formulate theControl Procedure for Emergency Response.◎ Provide training programs for employees on such emergency response plans. Remarks：1、Severity: 1) Extremely Severe, 2) Severe, 3) Signicant, 4) Moderate, 5) Minor 2、Frequency: 1) Rare, 2) Unlikely, 3) Occasionally, 4) Likely, 5) Frequent Governance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-Driven Transformation Human-CentricCommitmentAbout the Report AboutWCON 2024 Environmental, Social, andGovernance Report Message fromChairman Appendix DescriptionOpportunity ContentManagement MeasuresFinancial ManagementSufcient Funds for the Company's EHS Management System ◎Establish a special fund for EHS management to ensure the source of funds for EHS man- agement investment.Resource EfciencyRecycling Technology ◎Optimize the design of green products and reduce the use of materials from the source. ◎Advocate the recycling of materials and the transformation of waste. ◎Implement water recycling practices and establish a reclaimed water reuse system. Energy SourceLow-emission Energy Sources ◎Build rooftop photovoltaics, purchase green electricity, certicates, etc., to accelerate the green transformation. ◎Set the objectives of energy conservation and consumption reduction, promote energy con- servation and emission reduction, and improve energy use efciency from the management and technical levels. ◎Accelerate the construction of the energy management system to create a green manufac- turing system.Compliance Provisions The Company has not received any complaints or penalties from government authorities or surrounding residents. ◎Comply more strictly with regulatory requirements. Requirements and Expectationsof Stakeholders Some customers require the Company to establish an ESG manage- ment system. ◎Continuously implement the ESG management system and accept a third-party institution's certication audit to ensure the ESG certicate's effectiveness.The audit institution requires the Company to meet the requirementsof the ESG management system and continuously improve the ESG management system. ◎Accept the review of the audit institution and promptly improve and track any identied problems. Make the ESG management system operate effectively. In alignment with the national initiative for a green, low-carbon circular economy, the Company has proactively advanced energy conservation and carbon reduction by formulating theEnterprise Low-Carbon Action Planduring the Reporting Period. The Company has enhanced environmental and energy management capabilities through continuous investment in green resources for decarbonization efforts. We are fully managing its carbonemission pathways with the ambition to reduce carbon emissions by 35% by 2035 and achieve a net-zero carbon factory within the next decade. Reduce the proportion of green-house gas emissions: carbon emis-sions will be reduced by 5% in 2024and 35% in 2035. Promote energy-saving and environ-mental protection technologies andimprove the overall environmentalprotection level of the enterprise.Reduce dependence on traditionalenergy, proactive utilization of re-newable, clean energy, such as so-lar, wind, and air, is recommended.Improve energy utilization efciencyand ensure that the proportion ofcarbon emissions relative to outputduring production continues to de-crease. Low-carbon Goals Sustainable DevelopmentGovernance Strengthen Complianceto Solidify Governance Low-Carbon Operationsfor a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout theReport AboutWCON 2024 Environmental, Social, andGovernance Report Message fromChairman Appendix The Company establishes a data monitoring system to conduct real-time comprehensive monitoring of greenhouse gas(“GHG”) emissions, energy consumption during production, and wastewater and exhaust gas emissions.It regularly evaluates the emission reduction work and promptly discovers and solves problems. According to the evaluation results, the Company summarizes and analyzes the experience of emission reduction, promptly ad-justs and optimizes the emission reduction plan, learns from the experience of advanced enterprises, and introduces new emission reduction technologies and concepts. Main Production and Operation Activities of Carbon Emissions CategorySubcategoriesEmission Source Corresponding Activities/ Facilities Forms of Emission SourcePotential Types of GHG Category 1(Direct GHG Emissions) Direct Emissions GasolineCompany carsTransportationCO , CH , N Fugitive Emission of GHG SewageSeptic TanksFugitiveCH Category 2(Indirect GHG Emissions from Energy) Indirect Emissions from Purchased Electricity Electric power Energy Consumption ofEquipment and Lighting EnergyCO Statistical Explanation: Scope 1 GHG emissions are calculated based on default values of common fossil fuel char-acteristic parameters issued by the National Development and Reform Commission of the People's Republic of Chi-na; Scope 2 GHG emissions are calculated based on average carbon dioxide emission factors for China's regionalpower grids issued by the National Development and Reform Commission of the People's Republic of China. Carbon Asset Management To standardize the Company's carbon asset trading behavior, improve the transparency and credibility ofcarbon asset trading, and promote the healthy development of the carbon market, the Company formulatestheProcedure for Carbon Asset Trading Management, establishes a Carbon Finance Department to manageand carry out the carbon asset trading activities, the supervision department supervises and inspects thecompliance and fairness of the Company's carbon asset trading, and the environmental protection depart-ment supervises the situation of carbon assets and carries out emission reduction work. The Company strictlystipulates the processes and requirements, supervision and review, risk management, information disclosure,and penalties for violations of carbon asset trading. It claries that the Carbon Finance Department shallstrengthen the early warning, monitoring, and prevention of carbon asset trading risks. The carbon assettrading institution shall establish and improve the internal control system and promptly report the tradinginformation to the Carbon Finance Department. Greenhouse Gas Management During the Reporting Period Total GHG Emission4,336.63tCO eDirect GHG Emissions (Scope 1) 73.93 tCO eIndirect GHG Emissions (Scope 2)4,262.71tCO e Governance Strengthen Complianceto Solidify Governance Low-Carbon Operationsfor a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout theReport AboutWCON2024 Environmental, Social, andGovernance Report Message fromChairman Appendix Specic ActionsLow-carbon Measures ◎Build dust-free workshops and CNAS laboratories that can meet theGeneral Requirements for the Competence of Testing and Calibration Laboratories of the ISO/IEC17025:2017 Laboratory Management System;◎ Solar photovoltaic and energy storage charging canopy; solar light guiding system installed in the basement; solar-powered streetlights; enclosed cooling tower;heat-insulating lm applied to factory and dormitory windows; and double-glazed windows installed.Optimize Production Pro-cesses, Promote Clean Tech-nologies and Energy-saving EquipmentImplement Low-carbon-re-lated Systems to ImproveEnergy Eciency Manage- ment ◎Currently implement the ISO14064-1:2018 carbon verication system. It is expected to complete the third-party certication in Q4 of 2025◎Strengthen energy management and establish an energy informatization monitoring and management system Promote Clean Energy ◎ Encourage employees to use public transportation to reduce vehicle exhaust emissions.◎ Build solar power generation facilities to provide clean energy for the Company's electricity consumption. Promote Recycling and Reuse ◎Collect and utilize the condensed water of air conditioners◎Reuse the material reels ◎ Recycle the material packaging PE bags/cartons, etc. Green Oce ◎Set up waste classication and recycling facilities con- venient for employees◎Save electricity for ofce equipment and air conditioners ◎ Reuse ofce supplies such as le bags and data bags◎ Use Lark and other systems to implement a paper- less ofce ◎Advocate water conservation Promote the Concept ofEnergy Conservation andEnvironmental Protection ◎Conduct publicity and education on energy conservation and environmental protection knowledge to improve employees' and the public's awareness of energy con- servation and environmental protection.◎Cooperate with relevant departments to strengthen the publicity of environmental protection policies and supervise compliance. Implement Carbon Reduction Initiatives Sustainable DevelopmentGovernance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout the Report AboutWCON 2024 Environmental, Social, andGovernance Report Message from Chairman Appendix Strengthen Pollution ControlThe Company adheres to the EHS management policy of “complying with environmental regulations, committing to pollution prevention and control; making rational use of resources, manufacturing green products; improvingenvironmental protection awareness, continuously improving the environment; caring for employees' health and attaching importance to work safety,” and strictly complies with the requirements of national laws and regula-tions such as theEnvironmental Protection Law of the People's Republic of Chinaand theEnvironmental Protection Tax Law of the People's Republic of Chinato carry out the environmental management. During the ReportingPeriod, the Company reported zero environmental incidents or zero violations of laws and regulations concerning environmental protection. ISO 14001:2015 Certication Emergency Planfor EnvironmentalManagement EcologicalPollutionAccidents Leakage ofToxic andHazardousSubstances Other Incidentsthat may causeEnvironmental Pollution HazardousChemicalAccidents The Company establishes an EHS management system based on the ISO 14001:2015 and ISO45001:2018 standards, clarifies each department's environmental responsibilities, and formulatesand implements the Environmental/Occupational Health and Safety Manual. At least once annually,internal audits and management reviews are conducted to identify corrective and preventive actionsfor continuous improvement. Currently, the Company has passed the ISO 14001 environmental man-agement system certication. Environmental Management System The Company formulates theControl Procedures for Identication and Evaluation of Environmental Fac-tors, identifying and determining the environmental factors that may impact the Company's activities,products, and services to effectively control the critical ecological impact factors. The company estab-lished an ISO 14001 Implementation Committee to evaluate environmental and signicant environmentalfactors. It engages a third-party institution to assess its construction projects' environmental impact. Management of Environmental Risks To effectively prevent and respond to sudden environmental incidents andreduce the harm caused by incidents to the environment and society, the Com-pany formulates the EmergencyPlan for Environmental Management accord-ing to relevant laws and regulations such as the Emergency ResponseLaw ofthe People's Republic of Chinaand local environmental protection policies. TheCompany established an Environmental Management Emergency CommandCenter, which is responsible for organizing, coordinating, and commanding theemergency handling of sudden ecological incidents. By strengthening environ-mental monitoring, maintaining environmental protection facilities, strengthen-ing employees' environmental awareness education, and promoting and train-ing emergency plans, the Company comprehensively improves its emergencyhandling ability. Environmental Emergency Management The Company formulates standard documents such as the Regulations onthe Management of Hazardous Substances to investigate, label, and man-age the hazardous substances to the environment, throughout the wholeprocess from incoming materials to product shipment, to ensure that theproducts are healthy and safe and can continuously meet the requirementsfor the use and management of hazardous substances to the environmentput forward by customers or relevant domestic and foreign organizations.The Company strictly implements the national laws and regulations, localpolicies, decrees of the customer's country, and appropriate customerrequirements, and formulates the Restriction Standard for Hazardous Sub-stances to standardize the “Control List of Hazardous Substances.” This listdetails all hazardous substances used, managed across three managementlevels, and classied by applicable product categories, with real-time up-dates to prevent non-environmentally friendly materials, components, andproducts from entering the supply chain and mitigate environmental impact.During the reporting period, all the identied hazardous substances of theCompany passed third-party testing and certication. Hazardous Substances Monitoring Investigate, LabelManage Materials Component AuxiliaryMaterials Tools,Packaging Materials Sustainable DevelopmentGovernance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-Driven Transformation Human-CentricCommitmentAbout theReport AboutWCON2024 Environmental, Social, andGovernance Report Message fromChairman Appendix The disposal of hazardous solidwaste complies with relevant reg-ulations, with 100% categorizedstorage and handling by qualied units.The emission of wastewater,waste gas, and noise complieswith relevant regulatory require- ments. The Company strictly complies with laws and regu-lations such as theLaw of the People's Republic ofChina on the Prevention and Control of Water Pollu-tion, theLaw of the People's Republic of China on thePrevention and Control of Atmospheric Pollution, theLaw of the People's Republic of China on Preventionand Control of Environmental Pollution by Solid Wastes and theRegulations of Guangdong Province on thePrevention and Control of Environmental Pollution bySolid Wastes, formulates procedure documents suchas theControl Procedure for Water Pollutionand the Control Procedure for Waste Gas Emission and Noise,establishes and improves the pollution and wastemanagement system, proactively takes measures toreduce the emission of wastewater, waste gas andwaste, and is committed to reducing the impact of itsoperation on the environment. MetricsPerformance in 2024 76,748.79tons 0.66 tons tons tons tons tons Wastewater Discharges Waste Gas EmissionsQuantity of General Waste GeneratedQuantity of Hazardous Waste GeneratedQuantity of General Waste Disposed ofQuantity of Hazardous Waste Disposed of Environmental Management ObjectivesAchievements in 2024 Achieved Achieved Disposal MethodWaste Categories Recyclable waste: Waste electronic wires, waste metal scraps,waste packaging materials, etc. Non-recyclable waste: Domestic waste garbage Collected by the Company and then sold to professional recycling entities for recy-cling and reuse Handed over to the Sanitation Department for disposal Entrusted to a qualied third party for waste collection and treatmentEmulsion, waste engine oil, etc. GeneralWaste Hazardous Waste Strengthen Pollutant and Waste Prevention and Control The Company implements waste management in accordance with the principles of “classied recycling and reduction,” formulating theWaste Management Control Procedure. Waste is divided into two major categories: general waste (recyclable and non-recyclable) and hazardous waste. Corresponding treatment measures are adopted based on waste categories, with each department implementing classied collection and storage man-agement of generated waste in compliance with regulations. During the Reporting Period, the Company formulates a hazardous waste management plan, evaluates the annual expected generation and transfer volume ofhazardous waste, and determines hazardous waste's receiving units and qualication capabilities. Waste Management Sustainable DevelopmentGovernance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-Driven Transformation Human-CentricCommitmentAbout the Report AboutWCON2024 Environmental, Social, andGovernance Report Message from Chairman Appendix Treatment MeasuresTypes of Pollutants and Waste Wastewater Waste Gases Noise Mainly domestic sewage, a small amount of equip-ment cleaning wastewater, and cooling water for thefactory building construction project. Both sewage and wastewater are centrally treated, and the cooling water for the project can be re-cycled and will not be discharged outside. Domestic sewage is pretreated by a septic tank and thendischarged into the municipal sewage interception pipeline network. It will not directly enter the waterbody, which complies with the national requirements for emission management standards. Specic waste gas is generated in steps such as theinjection molding and grinding processes. By strengthening the ventilation in the workshop and collecting the waste gas for centralized treat-ment, the generated organic waste gas is treated by a two-stage activated carbon adsorption deviceand discharged at a high altitude after meeting the standards. In addition, the primary air pollutantsemitted during the factory building construction project are mainly VOCs. Through accounting, the to-tal VOCs emission of the project is 0.0863t/a, which is a small amount, and the emission concentrationcan meet the ambient air quality standard, with little impact on the surrounding atmospheric environ-ment, and complies with the national emission standards. Specic noise will be generated during the operationof machinery and equipment, such as high-speedpunching machines and mixers. Strictly control and manage the noise in accordance with the requirements of the Emission Standardfor Industrial Enterprises Noise at Boundary (GB 12348-2008), and prevent and control the noise bymeasures such as installing vibration damping foundations for high-noise equipment and sound insu-lation of the factory building. During the Reporting Period, the noise detection outside the Company'sfactory boundary met the standards, which was lower than the Class 2 emission limit of 60dB(A) anddid not cause any adverse impacts on the environment. Wastewater, Waste Gas and Noise Management Governance Strengthen Complianceto Solidify Governance Low-Carbon Operationsfor a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout the Report AboutWCON2024 Environmental, Social, andGovernance Report Message from Chairman Appendix Optimize Energy ManagementThe energy and resources used within the Company mainly include municipal water supply, purchased elec-tricity, gasoline, paper, raw materials, etc. The Company strictly complies with relevant laws, regulations, andrules such as the Energy Conservation Law of the People's Republic of China and the Law of the People'sRepublic of China on the Prevention and Control of Water Pollution. It proactively promotes the efcient useof energy and resources. Risk TypeDescriptionFrequency Explanation ofPotential FinancialImpact Management MeasuresExtremeweatherevents Extreme storms orheavy precipitationmay cause dam-age to energy-re-lated facilities,thus leading to theinterruption of en-ergy supply. Low Result in poweroutages or inter-ruptions of energysupply, which mayaffect production. ◎Strengthen equipmentmaintenance and overhaulto ensure the effective oper-ation of equipment. ◎Formulate emergencyprocedures and implementtraining on emergency re-sponse plans. Opportunity Type Description Explanation ofPotential FinancialImpact Response MeasuresEnergyalternatives By utilizing clean energy or inte-grating renewable energy. Increase the devel-opment costs andreduce the energyexpenses ◎Improve the productionprocess to reduce energy con-sumption. ◎Self-invest in the develop-ment of energy-saving renova-tion projects.ResourceEfciency Adopting an intelligent energymanagement system can effi-ciently improve energy manage-ment efciency and standardizeenergy utilization procedures. Reduce energyexpenses ◎Develop a digital energymanagement system to unifythe Company's energy con-sumption management. The Company formulates system procedures such as the Control Procedure for Energy and Resource Con-servation, the Regulations on Domestic Electricity Management, and the Management Measures for the AirConditioning System and implements rened management of the energy and resources used in operationlinks such as production workshops, ofces, warehouses, and employee dormitories to improve overall ener-gy utilization efciency.The Company delegates the energy management responsibilities and powers to the key energy-consumingand maintenance management departments, including the Product R&D Department, the Human ResourcesDepartment, and the Procurement Department. Each department implements energy management meas-ures according to the Company's overall energy management objectives, organizes training on energy con-servation for the employees in its department, and continuously improves the professional ability of the teamin energy and resource management. By establishing an energy efciency reward and punishment system,the Company encourages employees to put forward effective energy conservation and emission reductionsuggestions, which promotes the achievement of the Company's energy management objectives. The Company establishes a core indicatormanagement platform based on a unifieddata standard and an energy consumptionanalysis indicator model repository. This plat-form enables real-time monitoring, collection,statistics, and analysis of energy consump-tion data, conducts comprehensive visualmanagement, enhances data traceability,and improves energy control. Energy Management System The Company proactively takes a series of energy management measures to control the energy consumptionfrom the source, reduce the energy consumption, optimize the energy structure, and increase the proportionof green electricity to improve the Company's energy management level continuously.Energy Management Measures During the Reporting Period Direct Energy Consumption Gasoline 4.36 tonsIndirect Energy Consumption Purchased Electricity8,069,948kWh Energy Management Strategy Digital Energy Management Governance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout theReport AboutWCON2024 Environmental, Social, andGovernance Report Message fromChairman Appendix Water-Saving RetrotProject Renovation EffectRecycling of Wastewaterfrom the Kitchen Purified Water System The kitchen puried water system generates 1.5T of wastewater everyday. A water tank collects this wastewater for cleaning purposes,which can save 547.5T of water every year.Condensed Water Re-covery Technology of theCentral Air ConditioningSystem with Chilled Water Storage A 12T stainless steel water tank is built in the factory area to collect theair conditioning condensed water through the pipe network. An automaticwater level control system regulates the operation of the pressure pump,transferring the collected water to the air conditioning cooling tower asmakeup water. The daily collection amount of condensed water is about21T, with annual cost savings of about RMB 31,500. The Company's chilled water storage projectwas completed and put into operation in May2024. It is expected to achieve annual peakshaving and valley lling of approximately 3.1million kWh of electricity for air conditioningand production equipment, transferring peakand flat-rate electricity to off-peak periods.This reduces peak load on thermal power gen-eration, equivalent to reducing annual CO2emissions by 2.41 million kilograms. The Company invests in the construction of auser-side energy storage project. The energystorage battery unit of the project employs na-no-silicon solid lead batteries, which have theadvantages of high safety, long service life, andrecyclability and can effectively solve the indus-try pain point that electrochemical energy stor-age batteries are prone to fire and explosion.After being put into use, the project can fullyuse the peak-valley price difference in indus-trial electricity tariffs between day and night.The system automatically charges during off-peak nighttime periods and discharges to meetdemand during peak daytime hours, effectivelyaddressing the enterprise's instantaneous pow-er load demand for electricity during the day,reducing its instantaneous power consumption,and lowering its base electricity costs. Energy Storage Project Chilled Water Storage Project Photovoltaic Power Generation Relying on the relatively abundant solar energyresources in Daning, Humen, the Company fol-lows the consumption mode of “self-generationfor self-use and surplus electricity fed into thegrid” and has installed a distributed photovoltaicpower generation system on the rooftops of theNo. 1 factory building, No. 2 factory building andNo. 3 dormitory building at its factory complex,covering a total area of about 4,000 squaremeters. After the project is implemented, it isexpected to generate about 860,000 kWh ofelectricity annually, reducing carbon emissionsby 857 tons. Energy-saving Project RenovationOptimize the Energy Structure Reduce CO emissions by 2.41 million kilograms annually. Water Resource Utilization The Company formulates theRegulations on Do-mestic Water Management and implements con-trol measures for daily water consumption to avoidwaste. The Company has improved the water re-cycling rate and reuse efciency by implementingwater-saving renovation projects to reduce waterresource consumption. The total water consumption is 50,682 tons. During the Reporting Period CASE CASECASE Sustainable DevelopmentGovernance Strengthen Complianceto Solidify Governance Low-Carbon Operationsfor a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout the Report AboutWCON 2024 Environmental, Social, andGovernance Report Message fromChairman Appendix WCON upholds “honest operation, quality first, in-novation-driven, and win-win cooperation.” Throughcontinuous innovation and R&D efforts, the Companyenhances product and service quality to meet customerneeds and create greater customer value. Meanwhile,it also proactively builds a sustainable supply chain, col-laborating with upstream and downstream partners toforge a new chapter of shared success and contributehigh-quality productivity to China's connector industry. Innovation-DrivenTransformation ◎Innovation-driven◎Product and Service Safety and Quality◎Supply Chain Safety Responded Topics Sustainable DevelopmentGovernance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-Driven Transformation Human-CentricCommitmentAbout the Report AboutWCON 2024 Environmental, Social, andGovernance Report Message fromChairman Appendix Co-accelerate Industrial EcosystemsThe Company has always regarded technology research and development as its core competitiveness. It hascontinuously stepped up efforts in core technology research, continuously promoted the reform and inno-vation of the research and development system, strengthened the cultivation of scientic and technologicaltalents, stimulated the driving force for innovation, and used the power of value creation to boost the Com-pany's high-quality development. After years of development, the Company has gathered a group of core technicians with rich industry ex-perience who have good professional qualities and technical strength in product design, mold development,connector manufacturing process development, and other technologies. The Company actively transformsthe talent advantage into the driving force for high-quality development. To fully mobilize the enthusiasm ofemployees for technological innovation, the Company has formulated such incentive systems as theProce-dure of Employee Incentive and Authorization Controland theMeasures for Patent & Copyright Management to encourage employees to give full play to their creative and innovative abilities, engage in invention activ-ities, and contribute to technical standard documentation, further stimulating their autonomous innovationpotential. R&D CenterProduct R&D DepartmentProduct Engineering Department ProductEngineering SectionIntegrated ProductSectionPrecisionConnectorDevelopmentSectionPrincipal Functions: Development ofPrecision Connectors IndustrialConnectorDevelopment SectionPrincipal Functions: Development ofIndustrial Connectors Automotive ProductDevelopment SectionPrincipal Functions: Development of NewEnergy Products Principal Functions: Integrated ProductSupport PrincipalFunctions: ProductTechnical Support 202220232024R&D Investment (yuan)58,904,472.1572,336,311.2464,355,742.49Number of R&D Personnel (persons)224267210 Proportion of R&D personnel18.62%19.32%13.60%R&D Personnel by Gender (in persons) 202 / 96.20%8 / 3.80% MaleFemale (in persons) R&D Personnel by Age 30 (inclusive) to 40 (exclusive) years old 41 / 19.52%107 / 50.95%62 / 29.52%Under 30 (exclusive) years oldAbove 40 years old (inclusive) During the reporting period, the company's integrated product section organized 16 R&D empowermenttraining programs for product engineers, packaging engineers, and assistant engineers, steadily improv-ing the comprehensive quality and professional skills of R&D personnel. The Company has established an R&D center as the core department for technological innovation, and itis engaged in developing products such as electronic connectors. Through continuously optimizing and up-grading the R&D organizational structure, the Company enhances experience accumulation and knowledgetransfer among design teams while strengthening the dedicated focus on product design. The Company hasformulated regulations, including theMeasure for Management of Product Design and Developmentand theProject Management Control Procedure, to improve the rigor and standardization of each process in the R&Dprojects, ensuring the smooth implementation of R&D projects and reinforcing the Company's sustained in-dependent R&D capabilities. R&D Innovation Governance R&D Empowerment Training Sustainable DevelopmentGovernance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-Driven Transformation Human-CentricCommitmentAbout theReport AboutWCON 2024 Environmental, Social, andGovernance Report Message fromChairman Appendix Risk Identication List CategoryDescriptionTime Range Explanation of PotentialFinancial Impact Response MeasuresTechnologyRisks Technology Outow ◎Competitors in the same industry may reverse-engi-neer or adopt our technologies, eventually emerging asdirect rivals. Medium andlong-term Competitors may quicklylaunch similar products, eat-ing into market share andcausing a drop in revenue. ◎Sign condentiality agreements with employees;◎Maintain customer relationships and expand other customers' busi-nesses. MarketRisks Uncertaintyof MarketDemand ◎The Company's connector products are primarily tar-geted at industrial control, automotive, and new energysectors, where the operating environments are inherentlycomplex and market demands are diverse. This resultsin an operational model characterized by “multi-variety,small-batch, and customization.” Medium andlong-term The product or service maynot be widely accepted bythe market, leading to a de-cline in revenue. ◎Proactively track market trends, make forward-looking assessments ofindustry changes, swiftly respond to and precisely capture market trends,sustainably increase R&D investment, and encourage R&D innovation andthe commercialization of outcomes.MarketCompetition ◎Market competition may intensify with the changesin the domestic and foreign economic and political en-vironments. If the Company fails to make continuousimprovement and innovation in terms of technology andproducts, its market competitiveness may decline Medium andlong-term Reduction in market shareand decline in revenue. ◎The Company maintains a competitive market position through multiplestrategies, including continuously increasing R&D investments, enhancingproduct innovation capabilities, expanding product portfolio diversity, op-timizing production processes, efciently operating the quality manage-ment system to ensure product quality and service responsiveness, andintensifying market expansion efforts.Policy andLegal Risks ComplianceRisks ◎The Company needs to pay attention to changes indomestic and foreign regulations and industry standardsand differences in local labor laws where new factoriesare located to ensure that its R&D and business activitiescomply with relevant laws and regulations. Otherwise, itmay face legal risks such as nes and lawsuits. Short- tomedium-term Increase in operating costsand decrease in revenues. ◎The Company strengthens the identification, collection, and regularupdate of domestic and foreign regulations and industry standards, withkey provisions incorporated into training programs or institutionalized incompany policies.Opportunity Identication List CategoryDescriptionTime Range Explanation of PotentialFinancial Impact Response Measures Market opportunities ◎With the continuous iterative development in variousemerging fields, including emerging demands in down-stream markets such as communication equipment,cloud computing, automotive electronics, industrial con-trol, smart home, and AI applications, the connectors, askey essential components, are facing substantial marketopportunities.◎The photovoltaic industry will enter a stage of large-scale, high-speed, and high-quality development, drivingthe continuous technological progress of new-energyconnectors and increasing market demand. Medium andlong-term Augmented operating income. ◎The Company must continually innovate and enhance product perfor-mance to meet market demands for high-quality, high-reliability, high-in-tegration connectors while capitalizing on market opportunities to capturemarket share.◎Select high-quality customers and cultivate potential customers. R&D Innovation Strategy Sustainable DevelopmentGovernance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-Driven Transformation Human-CentricCommitmentAbout theReport AboutWCON2024 Environmental, Social, andGovernance Report Message from Chairman Appendix The Company has formulated theControl Procedure for Design Potential Failure Mode and EffectsAnalysis. The DFMEA management method systematically analyzes each product component to pro-actively identify and evaluate potential failures and their effects during the design planning phase.Based on prioritized analysis results, targeted measures are taken to avoid or mitigate these risks ofpotential failure. The entire process is documented, continuously updated, and improved to provideempirical references for subsequent designs. The Company continuously increases the intensity of R&D investment and invests in professional 3D design soft-ware, simulation testing systems, and high-end electrical and material testing equipment in the technical R&Dstage, which effectively shortens the product R&D cycle, reduces the material consumption in the R&D stage oftraditional connector products by leveraging the considerable data computing power for simulation testing, andeffectively ensures the rapid delivery of new products. During the reporting period, the company developed 70new products, further enriching its product portfolio to meet the customized needs of different customers. The newconnector products have reached the technical level of similar imported products regarding service life, product re-liability, and electromagnetic interference resistance. MetricsAchievements in 2024Goals for 2024 ◎50 R&D tasks werecompleted ◎61 new product developmentprojects were initiated, and 58 pro-jects were completed and enteredmass production. R&D Tasks ◎2 CECA group stand-ards◎1 corporate technicalstandard ◎2 national industry group stand-ards are formulated: the WD andBSC series.◎1 corporate technical standard iscompleted: e Technical Standardfor Non-Magnetic Pin Header hasbeen nalized.StandardDevelopment ◎3 invention patents◎20 utility model patents◎2 design patents ◎e Company applied for 30patent applications, including 3inventions and 27 utility modelpatents.IntellectualProperty 3D Design SoftwareSimulation Testing SystemsHigh-end Electrical and Material Testing EquipmentEffectively shorten the product R&D cycle, reduce the material consumption in the R&D stage of traditional connector products, and effectively ensure the rapid delivery of new products. During practical applications of connectors, long dimen-sion chains in assembly mechanisms often lead to instal-lation deviations and misalignment of connection inter-faces. Additionally, scenarios such as high transmissionspeeds and mechanical vibrations in real-world use cancause distortion of signal transmission. The Company hasdeveloped a 0.5 mm pitch oating BTB connector with upto 120 contacts, featuring X, Y, and Z three-axis oatingcapabilities. This design effectively accommodates instal-lation deviations and ensures stable signal transmission.Its high precision and contact reliability meet the strin-gent requirements of automotive-grade environments,making it widely applicable in automotive ADAS, ECU,infotainment systems, and industrial PLCs. 0.5 mm Floating BTB Connector Development ProjectThe Company's 1.0 mm-pitch FFC con-nector adopts a flat design. The productweighs no more than 8 g, effectively re-ducing the volume and weight, making itmore suitable for electronic and mechan-ical equipment with strict weight require-ments. Meanwhile, it forms a exible con-nection solution with FFC/FPC, achievinga more compact product design. It can bewidely applied to elds such as automotivedriving assistance information entertain-ment systems and industrial automationsystems to meet the industry's demandfor components that can quickly adapt tocomplex shapes and environments. FFC ConnectorDevelopment Project R&D Risk Management The Company adheres to independent R&D, benchmarks against leading international con-nector enterprises, and aims at connector miniaturization, integration, and intelligence devel-opment trends. Innovations in connectors are pursued in complex structure design, electricalperformance simulation, precision mold design, and new material applications to consolidateits development pattern of “industrial control as the core pillar, automotive and new energy astwin wings,” steadfastly pursuing the path of domestic substitution.The Company formulates an annual development plan based on overall business performance andcustomer needs to accelerate the commercialization of R&D achievements. R&D Goals and Achievements CASECASE Governance Strengthen Complianceto Solidify Governance Low-Carbon Operationsfor a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout theReport AboutWCON2024 Environmental, Social, andGovernance Report Message fromChairman Appendix The Company actively utilizes its strengths, devotes itself to research in specialized elds, actively partici-pates in industry and standardization development, and takes the initiative to engage in industry exchangesand cooperation. Doing so strengthens communication with industry associations and jointly promotes theindustry's progress. By the end of the Reporting Period, the Company has participated in 9 industry-relatedorganizations and associations, including the Electrical Connectors Branch of China Electronic ComponentsAssociation, the Guangdong Association for Quality, the Shenzhen Robot Special Wire and Cable Industry As-sociation, and the Shenzhen Connectors Industry Association. The Company attaches great importance to independent innovation and the protection of intellectual proper-ty rights, continuously enhancing its capabilities in creating, utilizing, and managing intellectual property. Tostrengthen the enterprise's intellectual property rights management, the Company strictly complies with rel-evant laws and regulations such as thePatent Law of the People's Republic of China and the Code for Man-agement of Intellectual Property Rights of Enterprises. In compliance with the requirements of the standardGB/T 29490-2023, the Company has established an intellectual property management system and formulat-ed a series of institutional and procedural documents, including theIntellectual Property Management Man-ual,Procedure for Control of Intellectual Property Acquisition, and Procedure for Management and Control ofIntellectual Property Risk, which ensured the scientic and standardized implementation of IP managementand safeguarded the Company's legitimate rights and interests.The Company has developed an Intellectual Property Training Plan, conducting targeted IP training sessionswith evaluations for different employee groups to strengthen IP compliance awareness and risk prevention.This ensures IP protection becomes embedded into the daily operations of every employee, safeguarding theCompany's long-term development. The Company also enters into Non-Disclosure Agreements, Non-CompeteAgreements, and Intellectual Property Assignment Agreements with employees to ensure standardized man-agement of trade secrets and technical secrets in business operations and clearly dene intellectual propertyownership, rights, and obligation clauses. A pre-classication review is conducted before formal secret classi-cation, followed by post-classication monitoring to avoid losses from potential disclosures.The Company obtained the certication of GB/T 29490-2013 intellectual property management system. Therewere no intellectual property disputes in 2024. Type of StandardNames of Standards Led/Participated in Development and RevisionNational Standard ◎Diecasting zinc alloys (GB/T 13818-2024)◎Die-casting aluminum alloys (GB/T 15115 - 2024) Group Standards ◎2.00 mm Pitch SIC High-Performance Connector◎1.27 mm Pitch Small Computer System Interface Connector◎Ejector header lock series connectorDuring the Reporting Period, the Company actively participated in industry activities such as the Smart Pro-duction Solutions and ITES Exhibition, demonstrating the Company's latest technologies and achievements inconnectors. Through in-depth communication with on-site guests and industry experts, the Company contin-uously enhanced the market application capabilities of its products, strengthened cooperative relationshipsin the industry, and jointly promoted the development of the connector sector. Smart Production SolutionsGuangzhou Shenzhen ITES ExhibitionOE Auto Smart New Energy Vehicles Cost Reductionand Eciency Enhancement Technology Exhibition Electronica ChinaShanghai International New Energy Vehicle Exhibition Electronica Munich Strengthen Industry ExchangesProtection of Intellectual Property Rights As of the end of the reporting period, theCompany had amassed patentedauthorizations, comprising grantedinvention patents, utility model pat-ents, design patents, and overseaspatent. In addition, the Company has ob-tained software copyrights. During the Reporting Period Sustainable DevelopmentGovernance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-Driven Transformation Human-CentricCommitmentAbout the Report AboutWCON2024 Environmental, Social, andGovernance Report Message fromChairman Appendix Premium Brand from QualitySince its establishment, the Company has consistently upheld its philosophy of “Building Brand Reputation Through Quality, Gaining Market Trust Through Service, and Driving Growth Through Professionalism.” It strictly ad-heres to laws and regulations, such as theLaw of the People's Republic of China on Product Quality, continuously innovates with relentless pursuit of excellence, and provides customers with professional and efcient solu-tions. Moreover, the Company implements a quality policy of “Quality First, Continuous Improvement, and Customer Satisfaction.” The company did not experience signicant liability, quality, or safety issues during the report-ing period. Quality Training IATF 16949:2016ISO 9001:2015 Quality Center Quality Assurance DepartmentQuality Management Department QualityRepresentatives The Company has established a high-standard quality supervision system, integrating quality managementinto the entire chain process from product design and manufacturing to testing. The UL Witness Test DataProgram recognizes the Company's laboratory. It is equipped with various advanced testing equipment, in-cluding lm thickness testers, hardness testers, high-temperature aging testers, salt spray testers, etc., whichcan fully ensure that the product performance and quality meet the relevant standards.The Company's Quality Center has a Quality Management Department and a Quality Assurance Department,responsible for implementing the requirements of the Company's major quality systems. These departmentsensure strict compliance with system guidelines, review and evaluate actual operational performance andquality objectives, and continuously optimize system documentation and quality improvements. By the endof the reporting period, the company had obtained certications for the IATF 16949:2016 quality manage-ment system and ISO 9001:2015 quality management system. RiskType TriggerProbability Risk Analysis Explanation of PotentialFinancial Impact Response Measures Legalrisks Low◎Updates to product-relatedlaws and regulations, notablystricter restrictions on hazard-ous substance limits, requirethe Company to promptlyadapt to and comply withthese changes to avoid compli-ance issues. ◎Increase incompliance costs orpotential decline inprots ◎The Company regularly collectsdomestic and international laws,regulations, standards, and industrycodes, promptly revises its inter-nal hazardous substance controlstandards, and strictly implementsthese updates. Additionally, it signsthe declarations on the non-use ofhazardous substances with suppliers.SupplierRisks Low◎The product quality may beaffected by supplier qualica-tions, material performance,supplier transportation routes,and changes in packaging andtransportation. ◎Product qualityissues and delayeddelivery may damagethe Company's repu-tation, affect customertrust, and reduce salesrevenue. ◎Formulate procedure doc- uments such as the SupplierControl Procedure, Sample ControlProcedure, and packaging speci-cations; ◎Sign quality and condentiality agreements with suppliers. Operational Risks Average ◎ The delivered products do not meet the customer’srequirements; ◎Undetected bulk raw mate- rial defects lead to defectiveproducts leaking to customers;defective products are nottimely labeled and controlled; ◎Inadequate labeling of production materials resultedin mixing and misplacement ofconforming and non-conform-ing products, compromisingproduct quality. ◎The costs of han- dling complaints andcompensation leadto increased costs; ◎Product qualityproblems may leadto customer ordercancellations and re-duced sales revenue. ◎Formulate quality control sys-tems and management measuresto strengthen quality control in theproduction process;◎Strictly enforce the incomingand outgoing quality inspections ofnished products;◎Formulate theProcedure forControl of Corrective and PreventiveActionsand theContinuous Improve-ment Control Procedureto driveongoing improvement;◎Standardize the customer com-plaint response system to ensureprompt resolution of customer needs. Quality Management SystemQuality Management Strategy quality training sessions were carriedout, with participants in attendance. During the Reporting Period Sustainable DevelopmentGovernance Strengthen Complianceto Solidify Governance Low-Carbon Operationsfor a Green World Innovation-Driven Transformation Human-CentricCommitmentAbout theReport AboutWCON2024 Environmental, Social, andGovernance Report Message fromChairman Appendix The Company formulates theObjectives, Targets, and Implementation Management Proceduresto establish,monitor, and continuously improve Key Performance Indicators (KPIs) for processes related to the qualitymanagement system. This ensures process effectiveness and product quality compliance with requirements,fullls customer expectations, and achieves organizational quality objectives. Annually, the Company setsannual objectives and targets systematically cascaded down to specic departments through a hierarchicaldecomposition mechanism. Adjustments are implemented promptly based on target achievement status. Performance Indicators 2024 ActualAchievement Values2024 Target Values 99.20≥ 98 99.83≥ 98.5 99.83≥98.5 0.115≤ 0.5 100≥ 99 98.49≥ 97 1.75≤ 3 0.25≤ 3 761.571500 99.67≥ 99.6 100≥ 100 C3-2 Stamping Process Inspection Pass Rate (%)C3-3 Molding Process Inspection Pass Rate (%)C3-5 Assembly Process Inspection Pass Rate (%)Cost of Poor Quality (COPQ) Loss Rate (%)Number of Continuous Improvement Projects (Count)Document Distribution Accuracy Rate (%)Incoming Material Inspection Pass Rate (%)Incoming Batch Missing Quantity (Pieces) Assembly Batch Non-conforming Quantity (Pieces)Customer Return PPMCustomer Acceptance Pass Rate (%)HSF Incoming Inspection Pass Rate (%)HSF Monthly Product Complaint Rate (%) QualityObjectives Pursue zero defects and make WCON a byword for high quality in the connec-tor industry.HSFObjectives HSF customer complaint rate — zero. Quality Metrics and Targets The company's product qualication rate is 99.66% .During the Reporting Period Sustainable DevelopmentGovernance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout theReport AboutWCON2024 Environmental, Social, andGovernance Report Message fromChairman Appendix Non-conformance Category Incoming InspectionNon-conformance IPQC In-process Inspection Non-conformance / FQC Sampling Inspection Non-conformance OQC Sampling Inspection Non-conformance Customer ReturnNon-conformanceStock Re-inspectionNon-conformance Engineering Change Non-conformance Post-Test VericationNon-conformance RoHS Non-conformance To enhance product quality control, the Company has implemented an integrated full-lifecycle quality manage-ment system that comprehensively governs every stage, from incoming material inspection, manufacturing pro-cesses, and nished product inspection to post-sales service tracking. This end-to-end framework ensures precisequality monitoring at each phase, enabling systematic management and continuous product quality optimization.The system guarantees consistent product delivery that meets regulatory standards and customer expectations.TheIncoming Material InspectionControl Procedureis established tostandardize the inspection processfor externally procured or outsourcedproduction materials. This protocol en-compasses supplier qualication veri-cation, statistical sampling inspection,material identication, and segregatedstorage protocols. Materials passing in-spection are authorized for warehouseentry, while non-conforming itemsare processed in accordance with theNon-conforming Product Control Pro-cedure. TheFinished Product Inspec-tion Control Procedurehasbeen established to stringentlystandardize incoming inspec-tion (pre-warehousing verifica-tion) and outgoing inspection(pre-shipment validation)processes based on productcategories, ensuring the outgo-ing products comply with therequirements. TheIn-Process Inspection Control Procedure has been established to standardize criticalcontrol protocols, including sample reception,first-article inspection, and last-article sam-pling verification. This framework ensuresthat all production stages operate undercontrolled conditions, maintaining consist-ent quality stability. Additionally, dedicatedcontrol procedure documents for stamping,injection molding, and copper wire productionhave been developed to dene standardizedworkflows across all manufacturing work-shops, ensuring product quality through doc-umented process compliance. Incoming Material InspectionProduction ProcessFinished Product Inspection The Company places high importance on product and service quality, establishing proceduressuch as theProduct Recall Control ProcedureandCorrective & Preventive Actions ControlProcedureto standardize the supervision and management of its product portfolio. The VicePresident convenes a task force to conduct recall evaluations for products with serious environ-mental non-compliance, quality defects, or potential safety hazards. If a recall is necessary, theCompany promptly noties relevant stakeholders to implement product retrieval, ensuring swiftand complete control over affected items to prevent or minimize corporate losses. No productsmust be withheld or recalled during the reporting period due to health and safety concerns. Recall Procedure Triggering CircumstancesProduct Identication & Evaluation Traceability & Recall Planning Information Disclosure Product RetrievalDisposal/Remediation Documentation Corrective Actions Quality Management Measures Whole-Life-Cycle Management of ProductsProduct Recall Management To ensure the control and handling of non-conforming products and suspected items throughout the entire process ofraw material input, production, product output, and service delivery, and to prevent the mixing of defective productswith qualied ones that could enter subsequent processes or shipments, the Company has established procedural doc-uments such as theNon-conforming Product Control Procedure and the Defective Product & ROHS Disassembly Man-agement Specication. These documents standardize the Company's defective product disassembly and processingworkow and clarify the criteria for non-conforming products and disposal requirements, including rework processes. Dispose Non-conforming Products Governance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout the Report AboutWCON2024 Environmental, Social, andGovernance Report Message fromChairman Appendix The Company adheres to a customer-centric philosophy, committed to delivering high-quality products and providing professional services to earn customer trust. Through its establishedSales Management Control Procedure,the Company implements standardized controls across the entire sales cycle – encompassing pre-sales, in-sales, and post-sales processes. A coordinated effort involving the Marketing Center, Production Planning Department,R&D Center, Quality Assurance Division, and Project Management Ofce forms a customer demand-driven team structure. This cross-departmental collaboration ensures a comprehensive understanding of client requirementsand market dynamics, enabling efcient order fulllment and continuous improvement in customer satisfaction. Optimization of Customer Service 8D Customer Complaint Handling Process Most LikelyCause SelectionPotential Cause Identication Root Cause Conrmation Root Cause Analysis Initial ProblemUnderstanding Team Formation ProblemDescription Interim Containment Actions PermanentCorrective Actions Recurrence Prevention Effectiveness Verication Lessons Learned Root CauseVerication YESNO The customer complaint resolution rate was100%.Carry out special training sessions on customer complaint response.During the Reporting Period The Company has established theCustomer Complaint Handling Control Procedure to standardize identify-ing and resolving client grievances, ensuring prompt responses and effective solutions to enhance customersatisfaction. Complaints are systematically addressed through an 8D methodology to achieve root cause res-olution and prevent recurrenceCustomer Complaint Handling The Company places high importance on customer feedback and suggestions. It has established theCus-tomer Satisfaction Management Procedures to systematically collect and understand customer satisfac-tion levels regarding services, products, delivery timelines, quality, and systems. This is achieved throughmultiple channels, including monthly proactive monitoring of customer satisfaction, annual customersatisfaction surveys, and, for automotive clients specically, monthly collection of customer scorecards ormonthly performance appraisal data by business personnel. All collected data undergoes timely compilingand analysis to drive continuous improvements in our quality management system's performance, withthe ultimate goal of consistently exceeding customer expectations. Customer Satisfaction Survey The Company's customer satisfaction score was 95.84 .During the Reporting Period Governance Strengthen Complianceto Solidify Governance Low-Carbon Operationsfor a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout the Report AboutWCON2024 Environmental, Social, andGovernance Report Message fromChairman Appendix “Excellent Supplier” in 2024 from Bronze Technologies“Excellent Partner Award” in 2024 from Enpower2024 China New Energy Vehicle Technology and Supply ChainEnterprise Online Selection -“Top 10 Industry Leader Award” “Certied Quality Supplier” in 2023 from OE Automotive“Excellent Supplier” in 2023 from RSPower Tech“Excellent Quality Award” in 2021 from FinDreams Powertrain “Excellent Partner Award” in 2022 from Enpower“Technological Innovation Award” in 2022 from Midea“Excellent Supplier” in 2021 from Cal-Boz “Excellent Supplier” in 2020 from Evoc Intelligent Technology Honors And Recognitions Governance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-Driven Transformation Human-CentricCommitmentAbout the Report AboutWCON2024 Environmental, Social, andGovernance Report Message fromChairman Appendix Reinvent Sourcing Governance The Company strictly complies with theLaw of the People's Republic of China on Tendering and Biddingand other relevant laws and regulations, having established internal procurement management systems, including the Supplier Management Control ProceduresandProcurement Control Proceduresto standardize purchasing processes and supplier governance. The Company implements rigorous selection criteria, qualication assessment,evaluation, and performance reviews for suppliers providing production materials, equipment, tooling components, and related services. This ensures the engagement of competent suppliers and service providers capable ofdelivering qualied raw materials, precision components, and superior services. These measures enhance the Company's supplier management capabilities, maintain improved collaboration with suppliers, and guarantee com-pliance with stipulated quality requirements throughout the supply chain. ◎Responsible for supplier quality assessment, judgment, and formulation of quality standards◎Verify incoming material quality from suppliers◎Participate in initial evaluations of new supplier development and prelimi-nary approval of qualied suppliers◎Assess and guide suppliers in product control, quality management capabili- ties, and inspection equipment competency 0102 0403 ◎Participate in reviewing and auditing newly developed suppliers to deter- mine qualied suppliers◎Conrm, evaluate, trial-assemble, and approve production parts for supplier samples and product drawing compliance R&D Center General ManagerQuality Center ◎Develop and evaluate new suppliers◎Organize relevant departments to recommend and review potential suppliers◎Approve qualied suppliers, document registration, and management◎Conducted comprehensive evaluations of existing suppliers, including perfor-mance reviews for guidance and support◎Negotiate procurement orders, delivery contracts, and related agreementswith suppliers Procurement Department ◎Approve nal decisions on qualied supplier certication ◎ Make critical decisions on signicant issues arising during the procurement process Supply Chain Security Governance Governance Strengthen Complianceto Solidify Governance Low-Carbon Operationsfor a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout theReport AboutWCON 2024 Environmental, Social, andGovernance Report Message fromChairman Appendix The Company implements a comprehensive supply chain risk management system that enables preciseidentication, scientic evaluation, and real-time monitoring of risks across critical phases, including sup-plier selection, raw material procurement, and production processes. Risk-tiered mitigation strategies areformulated with operational contingency plans, supported by periodic risk assessments and scenario sim-ulations to enhance organizational resilience against supply chain disruptions systematically.RiskType Risk Description ImpactDuration PotentialFinancial Impact Response Measures Supplierrisks Issues with suppliers'production capacity,quality performance,or delivery schedulesmay result in pro-duction interruptionsor product qualitydefects. higher Delayed deliverytriggers produc-tion interrup-tions, leading toeconomic lossesand revenuereduction dueto client ordercancellations, in-curring additionalprocurementcosts. ◎Implement rigorous supplierqualication screening and perfor-mance evaluation; ◎Enhance incoming/inbound quality inspection procedures; ◎Cultivate high-performance sup- pliers and establish relatively stableprocurement channels;◎Establish a multi-level suppliersystem and activate emergencyplans in case of emergencies;◎Closely monitor productionprogress and proactively discussrevised delivery timelines withaffected clients. LogisticsRisks Problems in trans-portation, ware-housing, and otherlinks may lead toproduct damage,delayed delivery, etc. higher PoliticalandEconomicRisks External factors suchas political instabilityand economic crisesmay lead to supplychain disruptions. higher PriceRisks Price volatilitystems from com-mercial negotia-tions, geographicpricing discrepan-cies, emerging tech-nologies/materials,and environmentalcompliance low Price risesincrease procure-ment costs. ◎Enhance business negotiationcapabilities;◎Conduct thorough marketresearch;◎Strengthen the timing of procure-ment;◎ “Conduct multi-vendor compar- ative analysis” and “implement theinquiry and quotation system.” Establish tiered mecha-nisms covering supplierperformance evaluation,real-time logistics moni-toring, and cybersecuritycompliance audits, ena-bling proactive identifi-cation and mitigation ofsupply chain risks. Prevention First Once a supply chainsecurity problem occurs,quickly activate theemergency plan, take ad-equate measures to solvethe problem, and reducelosses. Rapid Response Regularly evaluate andoptimize the supply chainsecurity managementsystem to continuouslyimprove the supply chainsecurity level. Continual ImprovementManagement Principles Supply Chain Security StrategySupply Chain Risk Management The Company has developed anEmergency Drill Plan for Externally Sourced Processes to address sig-nicant supply chain risks. This plan outlines targeted emergency measures and establishes a Procure-ment-Supply Emergency Response Team tasked with coordinating responses to sudden material shortag-es or considerable quality issues. Regular drills are conducted under the plan to strengthen departmentalpreparedness, ensuring teams can effectively mitigate disruptions. These efforts prevent material short-ages, delays in customer deliveries, and unexpected losses caused by inadequate or defective supplies.By doing so, the Company guarantees that materials are procured timely, efciently, and to the requiredquality and quantity standards. Supply Chain Emergency Drills On March 12, 2024, the Company’s Procurement Department conducted an emergency drill simulatinga critical supply chain scenario: abnormal terminal electroplating in the T2150T-S4W02 product and asudden supplier failure threatening customer delivery deadlines and urgent production line requirements.The Procurement Department swiftly collaborated across departments—including business, production,planning, and the emergency response team—to coordinate resources and timelines. To resolve thecrisis, the department activated vetted backup suppliers capable of meeting strict quality and deliverystandards, ensuring seamless material substitution. The drill concluded with successfully executing thecontingency plan, averting potential delays, and safeguarding production continuity. Emergency Drill for External Supply InterruptionCASE Governance Strengthen Complianceto Solidify Governance Low-Carbon Operationsfor a Green World Innovation-Driven Transformation Human-CentricCommitmentAbout theReport AboutWCON 2024 Environmental, Social, andGovernance Report Message fromChairman Appendix The Company continuously enhances its supplier management framework by implementing rigorous oversight of supplier entry, performance assessment, and supplier audit. This structured approach ensures consistent qualitystandards and strengthens supply chain reliability while mitigating operational risks. 90-100 points Grant prioritized procure-ment status with discretion-ary increases in purchaseorders and manufacturingallocations. Grade A Supplier Management The Company operates a tiered supplier evaluation framework, conducting periodic performance reviews across supplier categories. Assessments focus on four core performance metrics: quality compliance, qualityperformance, delivery reliability, and collaborative engagement. Based on cumulative evaluation scores, suppliers are classied into four tiers: Grade A, Grade B, Grade C, and Grade D. The Procurement Department alignssourcing strategies with these ratings. Supplier Assessment For materials used in automotive products, the Companyprefers to use suppliers certied by IATF16949 to ensurethat the materials, processes, and services related to thepurchased automotive products comply with the currentlaws and regulations in the receiving country, the country ofdispatch, and the country of destination determined by thecustomer. All direct material suppliers are required to signthe following agreements with the Company: Supplier Quali-ty Assurance Agreement,Supplier Material PCN Agreement,andSupplier Environmental Compliance Agreement. Supplier Entry Identify potentialsuppliersBased on material supplystatus, supplier evaluationoutcomes, and supplierdevelopment plans Determine the suppliersmeet the qualications Complete the SupplierCapital Information Form Suppliers with strong compre-hensive capabilities, cooperationcommitment, and alignmentwith the Company’s standards Supply chain reliability,technical expertise, andquality assurance systems 12345 Preliminarily identifythe suppliers Collect supplierdata Preliminarily screensuppliers Supplierevaluation 80-89 points Maintain the current orderquantity, and the suppliershould continue to im-prove. Grade B 70-79 points Appropriately reduce the procurementquantity or suspend procurement. Issue awarning to the supplier for some relativelyserious problems and notify the supplierto rectify the deficiencies, follow up onthe rectication results, and at the sametime, strengthen the inspection of the ma-terials from this supplier.A supplier rated as Grade C for over threeconsecutive months will be downgradedto Grade D. Grade C 60-69 points The Procurement Department notifies the sup-plier to come to attend on-site review meetingsor receive technical guidance at its facility. If asupplier is rated as Grade D twice in a row, theProcurement Department will issue an officialcorrective action notice (CAR); if the supplierfails to improve within the rectification period,the supplier will be disqualified. If a supplier israted as Grade D for three consecutive months,its qualification as an approved supplier will becanceled, and its business will be terminated. Grade D Governance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-Driven Transformation Human-CentricCommitmentAbout the Report AboutWCON2024 Environmental, Social, andGovernance Report Message from Chairman Appendix Supplier EvaluationQualied Continue to purchase or increase the procurement quantity and give thesupplier priority in new projects. Suppliers listed in the “Supplier Elimination Plan” orthose without business transactions for two years Go through the entire new supplierapproval process to restart their business. Audit scorerate ＜ 80%or 85% Notify the supplier to make improvements within one month. After providingmaterials for improvement, the supplier can apply for re-review. If the supplieris still unqualied after the re-review, its qualication will be canceled and noteligible for review within one year.Unqualied The supplier can be given a rectication period of four months. After passingthe re-review four months later, it can be included in the list of qualifiedsuppliers again. Otherwise, it will be listed in the “Supplier Elimination Plan.” Supplier Audit Category A suppliers (key raw materials) andCategory B suppliers (auxiliary materials) Annual mandatory on-site auditsGenerally qualied suppliersUnscheduled audits or corrective guidanceMajor quality nonconformities, C/D graderatings, or critical delivery delays/servicedisruptions impacting production On-site evaluations The Company establishes an audit team to audit the leading qualied suppliers annually.Supplier Audit The Company places high importance on supply chain innovation and application initiatives, actively re-sponding to national policy calls. Through digital transformation in the supply chain, it empowers the enter-prise and its partners to achieve compliance transparency, cost reduction with efciency improvement, andhigh-quality, sustainable growth. The Company uses the Supplier Relationship Management(SRM)systemas an internal supplier management platform. The system integrates various functions such as the procure-ment process, supplier evaluation, and cooperation and collaboration, and effectively manages the entirelife cycle of suppliers, from screening and admission to transaction cooperation, performance evaluation,and subsequent relationship maintenance. It standardizes and automates the procurement process, realizesinformation sharing and collaborative work between the enterprise and suppliers, such as sharing productionplans, inventory levels, and other information, and enhances the trust and transparency of cooperation; atthe same time, it can monitor supplier performance and risks in real-time, such as delivery delays, qualityproblems, etc., issue early warnings and take measures to reduce the risk of supply interruption. Empower with Digitalization the Company completed auditing suppliers, and the results showed all were qualied. qualied suppliers with quality management system certication qualied suppliers with environmental management system certication qualied suppliers with occupational health and safety management system certication potential qualied suppliers rejected due to non-compliance qualied suppliers whose cooperation was suspended due to non-compliance During the Reporting Period Sustainable DevelopmentGovernance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout theReport AboutWCON 2024 Environmental, Social, andGovernance Report Message fromChairman Appendix Supplier ESG management is critical for companies to achieve sustainable development goals. To effectively implement ESG practices across supply chains, enterprises adopt a systematic approach encompassing the followingmeasures: formulating clear ESG policies and standards, selecting ESG-compliant suppliers, establishing a regular communication mechanism, providing training and support, setting clear ESG improvement goals and indica-tors, conducting supervision and audits, and establishing an incentive mechanism. At the same time, the Company maintains a vigilant focus on market dynamics, regulatory updates, and internal growth trajectories. It contin-uously renes ESG management frameworks and standards for supplier networks, fostering a mutually benecial ecosystem that drives collaborative development. This commitment ensures joint progress toward co-creatingan eco-conscious, socially responsible, and sustainable future with supply chain partners. The Company takes the initiative to explore supply chain energy conservation and emission reduction measures. It continues to work hard in logistics, transportation, and warehousing to minimize carbon emissions and con-tribute to environmental protection. In supplier selection, the Company adopts the “proximity principle” to avoid excessive energy consumption caused by long-distance transportation. During the Reporting Period, the Compa-ny had 41 qualied suppliers, and the ratio of procurement expenditures from local suppliers was 48.77%. Topics SupplierManagementStandards Environmental◎Require suppliers to take necessary environmen- tal protection measures, such as reducing emis-sions, protecting resources, and recycling waste;◎Encourage suppliers to use renewable energyand energy-saving factory technologies; ◎Require suppliers to implement water resourcemanagement controls, take adequate measuresto reduce water withdrawals, and process waterand wastewater in an environmentally compatiblemanner. Social ◎Require suppliers to respect and protect internation- al human rights and not engage in acts that violate orinfringe on human rights.◎Suppliers should be prohibited from using child labor,forced labor, or any form of compulsory labor to protectthe legitimate rights and interests of employees.◎Encourage suppliers to provide employees with aworking environment that respects diversity and inclu-siveness and advocates equal and fair business ethics. Corporate Governance ◎Require suppliers to comply with all applicable national and international laws to ensure the legalityand compliance of their business activities. ◎Encourage suppliers to develop and implementappropriate training so employees can understandgenerally accepted principles of behavior and inter-national standards.◎Supervise the implementation of suppliers' policiesrelated to anti-monopoly, anti-bribery, and anti-cor-ruption to ensure the fairness and transparency oftheir business activities. Build Sustainable Supply Chains The Company proactively pioneers a “Transparent Procurement” model characterized by legal compliance,operational transparency, and ethical efciency. It has institutionalized a comprehensive procurement gov-ernance framework with standardized operational protocols, ensuring open, equitable, and transparentprocedures that eliminate backdoor operations. This strategic approach drives continuous enhancement ofprocurement management sophistication across the organization. The Company signs theIntegrity and Hon-esty Agreement with suppliers, rmly resists commercial bribery and unfair competition, opposes commercialfraud, and safeguards the legitimate rights and interests of both parties. Transparent Procurement 100% of our suppliers signed the Integrity and Honesty Agreement.During the Reporting Period Governance Strengthen Complianceto Solidify Governance Low-Carbon Operationsfor a Green World Innovation-DrivenTransformationAbout theReport AboutWCON Human-CentricCommitment 2024 Environmental, Social, andGovernance Report Message from Chairman Appendix WCON consistently regards employees as a crucial pillarin value creation, remaining committed to fostering anequal, inclusive, and diverse workplace environment. Itsafeguards employees' legitimate rights and interestswhile establishing a high-quality talent development sys-tem. Through supporting career advancement, prioritizingemployee well-being, and enhancing workplace fulllment,the organization strives to cultivate a profound sense ofbelonging among its workforce, ultimately achieving mutu-al growth for both employees and the enterprise. Human-CentricCommitment ◎Safeguarding Employees' LegitimateRights and Interests◎Employee Training and Development◎Occupational Health and Safety◎Social Contribution Responded Topics Governance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-DrivenTransformationAbout theReport AboutWCON Human-CentricCommitment2024 Environmental, Social, andGovernance Report Message fromChairman Appendix Safeguard Employees' Rights The Company strictly adheres to relevant laws and regulations, including theLabor Law of the People's Republic of Chinaand theLabor Contract Law of the People's Republic of China, carrying out labor governance in com-pliance with legal requirements to establish a standardized employment management system. This compliance framework ensures lawful and orderly operations in employee administration while protecting workers' funda-mental rights and interests. The Company adheres to the systematic development of its human resources management framework, establishing institutional documents such as theEmployee Handbook,Child Labor ProhibitionPolicy, andForced Labor Prevention and Freedom of Employment Regulations. These policies standardize employee conduct, rigorously prohibit child labor and coercive labor practices, and comprehensively safeguard workers'rights and interests. During the Reporting Period, no child labor or forced labor incidents occurred in the Company, and the labor contract signing rate was 100%.The Company upholds the principles of “merit-based recruitment and selective hiring” principles, formalized through itsRecruitment Management Policy to standardize employment procedures. Functional departments period-ically assess workforce demands based on actual stafng conditions and organizational strategic plans, systematically determining departmental stafng quotas and talent requirements. These evaluations are documented in Human Resource Requisition Formsfor tiered approval processes. The HR Department subsequently conducts needs assessments and authorization reviews in accordance withPosition Descriptionsand approved requisitionforms, thereby implementing structured recruitment activities.As of the end of the Reporting Period, the Company had1,459 employees. By gender 52.16% 47.84% By age 37.15% 42.22% 20.63% By academicqualication 17.82% 1,065 73.00% 0.82% 8.36% By job level 1,364 93.49% 5.35% 1.16% 8.64% 1,028 70.46% MaleFemaleUnder 30 (exclusive) years old 30 (inclusive) to 40 (exclusive) years old40 years old or above Master’s degree or aboveBachelor’s degreeCollege degreeBelow associate degree Non-managerial StaffSenior managementMiddle management ProductionTechnologyAdministration SalesFinance 14.46% 5.35% 1.09% Byprofession Recruitment and Employment Governance Strengthen Complianceto Solidify Governance Low-Carbon Operationsfor a Green World Innovation-Driven TransformationAbout theReport AboutWCON Human-CentricCommitment 2024 Environmental, Social, andGovernance Report Message fromChairman AppendixThe Company actively diversies its recruitment channels through collaboration with local human resourcesand social security authorities, regularly participating in government-organized ofine job fairs and onlinelive-streamed recruitment events. It implements cloud-based campus recruitment platforms for digital hiringcampaigns and engages in seasonal campus recruitment activities at universities during autumn and springsemesters. During the Reporting Period, the Company participated in or held 8 campus recruitment activities,covering 8 institutions in Guangdong, Hunan, and Hubei provinces. Invitation to Hunan Financial and Industrial Vocationaland Technical College Career Fair for the Class of 2025 “Searching for Talents in Hanjiang, Adding Wings to the Tigers”-- 2024 Humen-Wuhan Campus Recruitment Matching Eventhosted by Humen Human Resources and Social Security Bureau Statistical scope: Newly recruited employees include both active and separated employees recruitedwithin the year, excluding those who left within 7 days of joining. The Company recognizes international norms and guidelines such as theUniversal Declaration of HumanRightsand theTen Principles of the United Nations Global Compact. It has established the Anti-Discriminationand Prohibition of Employee Abuse Regulations and the Human Rights Policy Statement to implement thesecommitments. These policies ensure equitable opportunities for employees across all stages of employment,including recruitment, compensation, training, promotion, benets, and termination. The Company strictlyprohibits discriminatory practices based on race, religion, region, gender, age, physical ability, or height andactively fosters a diverse, equal, and inclusive workforce. The Company places a high priority on safeguarding the rights and interests of female employees, strictlyadhering to theLaw of the People's Republic of China on the Protection of Rights and Interests of Women.By legally guaranteeing the implementation of maternity leave, lactation breaks, and other statutory protec-tions for female workers, the Company ensures full compliance with wage standards when providing com-pensation during these periods. Through these efforts, the Company fosters an inclusive environment thatstrengthens female employees’ sense of belonging and trust.IMeasures for the Protection of Female Rights and Interests◎It is strictly prohibited to assign female workers to perform tasks that endanger physical andmental health, jeopardize reproductive health, or pose safety risks;◎It is strictly prohibited to require pregnancy tests or contraceptive use as conditions of employ-ment, to reduce base salaries, or to terminate employment contracts during female employees'pregnancy, maternity leave, or breastfeeding periods. Number of new employees1,003 , in whichSocial recruitment personsOn-campus recruitment persons During the Reporting Period The Company had disabled employees, 154ethnic minority employees, in which in themanagement.During the Reporting Period 14.74% of the Company's management were female, employees enjoyed maternity leave,and employees enjoyed parental leave.During the Reporting Period Diversity, Equality, and Inclusion Sustainable DevelopmentGovernance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-DrivenTransformationAbout theReport AboutWCON Human-CentricCommitment2024 Environmental, Social, andGovernance Report Message fromChairman Appendix Employee Birthday PartyThe Company hosts a monthly birthday cele-bration for employees celebrating birthdays inthe current month. Each employee participatesin a dedicated celebration ceremony and re-ceives a personalized gift, fostering a strongersense of belonging and happiness among staff. The company cares about its employees, attaches importance to the balance between employees' work andlife, and organizes various employee activities, which enhances employees' happiness and sense of belong-ing to the enterprise and increases the company's cohesion. On November 27, 2024, the Company disclosed the2024 Employee Stock Ownership Plan (Draft)and2024 Employee Stock Ownership Plan Management Measures, proposing to implement an employeestock ownership program targeting directors (excluding independent directors), supervisors, senior ex-ecutives, core management personnel, key technical (business) personnel, and other eligible incentiverecipients within the Company (including consolidated subsidiaries and controlled subsidiaries). Followingapproval at the Shareholders’ Meeting, the non-trading transfer of shares was completed on January 22,2025. Employee Stock Ownership Plan The Company holds an employee basketballgame and provides a bonus of 30,000 yuanas an incentive. Each department selects 10people to participate, aiming to improve em-ployees' physical tness and enrich their sparetime. Employee Basketball Game The Company organized an outdoorteam-building activity themed “Step Out ofthe Office, Embrace Nature. " The activityled employees to Xiachuan Island via a stopat the historic Chikan Old Town. Participantsimmersed themselves in breathtaking naturallandscapes and cultural heritage throughoutthe journey, fostering a deeper connection withthe Company’s values and collective spirit. Outdoor Team-Building In January 2024, the Company organized a fare-well party for retired employees. Company lead-ers and personnel from relevant departmentsparticipated together to express gratitude for theretiring employees' hard work and promote thecompany's harmonious and stable development. Retirement Sta Farewell Party The Company adheres to the principle of distribution according to labor, establishing a Compensation Man-agement System and Performance Management System. Employee compensation is determined based onindividual capabilities, contributions, and regional living standards. Employees who deliver outstanding per-formance are awarded bonuses through a structured evaluation process. The Company has established anAll-Excellence Performance Team to ensure the effective implementation of the KSF (Key Success Factors)performance plan. Each department independently calculates monthly performance results, while the All-Ex-cellence Performance Team oversees the verication of performance-based salaries, data collection for rele-vant metrics, public disclosure of outcomes, and resolution of any disputes. Leave Entitlements Employees are entitledto legal holidays, paidannual leave, marriageleave, bereavementleave, maternity leave,and other holidays in ac-cordance with the law. Living Security Pay the five social insur-ances and one housingfund in accordance withthe law, and provide freeaccommodation and mealsfor on-the-job employees. ++Bonuses Employees are granted performance-based incentives,such as performance awards, full-attendance bonus-es, and performance commissions, based on their jobperformance evaluations and attendance records. Team-building InteractionRegularly organize team dinners and com-pany trips and hold a collective birthdayparty for employees every month. Provide various allowances foremployees who have complet-ed at least one year of servicewith the organization, such asmarriage congratulatory mon-ey, a funeral subsidy, a travelsubsidy for visiting relatives,and an annual living allowance. AllowancesEmployee Benets Compensation and Benets Employee Care CASE CASE CASE CASE CASE Governance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-Driven TransformationAbout theReport AboutWCON Human-CentricCommitment2024 Environmental, Social, andGovernance Report Message fromChairman Appendix Job position safetyassurance 93.08% Timeliness and accuracy of salary payment 97.32% 98.89% Working environment and working conditions 95.28% Cross-departmentalcommunication Items with High Employee Satisfaction（Satisfaction） The Company continuously enriches employee communication channels and methods and conducts regularemployee satisfaction surveys. The survey content is designed from the employee's perspective and coversaspects such as work environment, behavioral etiquette, timeliness of salary payments, workload, rest andvacation time, methods to enhance recognition, internal promotions, training, daily management, and caf-eteria satisfaction. The Company listens to employees' opinions, actively seeks measures to address theirreasonable demands, and continuously improves employee satisfaction.The Company respects and safeguards employees' rights to exercise democratic management. It continuous-ly improves the employee democratic management system led by the Labor Union Committee of the Com-pany and streamlines multi-dimensional communication channels. It ensures timely collection, processing,response, and reporting of employee feedback and suggestions. The Company advocates equality in dignityand obligations across all hierarchical levels, emphasizing that every employee is responsible for autono-mously participating in corporate governance. The Company respects employees’ rights to self-organize andform groups to collectively express, advance, pursue, and safeguard their shared interests, upholding theirfreedom of peaceful assembly and association. Simultaneously, it protects employees’ freedom of speech byestablishing platforms for diverse viewpoints and actively encouraging staff to contribute ideas for WCON’sdevelopment. Employee Democratic GovernanceEmployee Satisfaction Surveys Following theTrade Union Law of the People’s Republic of China, theConstitution of the Chinese Trade Un-ions, and relevant regulations, the Company established a labor union committee composed of employeerepresentatives in 2021. This body organizes employees to lawfully exercise democratic participation, deci-sion-making, management, and oversight, safeguarding their rights to information access, involvement ingovernance, and supervisory authority—core democratic entitlements under Chinese labor frameworks. Establish Labor Union Committee The Company encourages employees to report on the Company's management drawbacks and employees'improper behaviors at work. Employees can submit written appeals to the human resources department orlodge appeals through ofcial accounts, emails, telephone calls, etc. The persons responsible for correspond-ing to the channels will handle the appeals according to the process specications and promptly respondto the complainants' demands. For complaints that do not require investigation and evidence collection, theinvestigation committee needs to reply to the complainants with the results within one working day. Forcomplaints involving investigation and evidence collection, the investigation committee needs to reply to thecomplainants with the results within seven working days after clarifying the situation. The Company handlesall reasonable demands from employees impartially and severely punishes false accusations such as takingcredit for others' achievements and retaliation. Employee Grievance Mechanism 71.10% of employees were union members.The committees convened meeting reviewed and approved proposal.During the Reporting Period Governance Strengthen Complianceto Solidify Governance Low-Carbon Operationsfor a Green World Innovation-Driven TransformationAbout theReport AboutWCON Human-CentricCommitment 2024 Environmental, Social, andGovernance Report Message fromChairman Appendix Unblock Development Channels The Company positions employee training as a core strategy for its development, establishing management policies for employee training, continuously rening the training system framework, and empowering employees togrow professionally. Department-level units formulate annual employee training plans based on the Company's talent development strategy, and personalized training needs across positions, creating systematic training pro-grams to enhance employee competencies and professional technical capabilities continuously.The Company incentivizes employees to develop internal training materials aligned with their work experience by offering monetary rewards proportionate to the length of such materials. An internal mentorship program fa-cilitates talent cultivation and retention for new hires or employees undergoing role transitions. This initiative customizes career development pathways while enhancing mentors' communication skills, managerial capabilities,and sense of honor, achieving mutual professional advancement. Training Framework Development Plan New Employee Orientation Post QualicationTraining Functional Training ManagementCompetency Training Quality System Training Internal LecturerTraining SafetyTraining Onboarding GuidanceOperation Process Training, OperationInstruction ManualTraining Quality InspectionPersonnel Training,Manufacturing Personnel Training, MarketingPersonnel Training,Procurement PersonnelTraining Frontline SupervisorTraining, Mid-levelManagement Training,Senior ExecutiveLeadership Development Quality Skills andConcepts Training, ISOTraining TTT (Basic, Intermediate,Advanced), TWI JobInstruction, Training Toolsand Methods Industrial Safety Training,Occupational Health andSafety System Training,Hygiene and SafetyTraining, Process SafetyManagement Training Employee Training System The Company prioritizes employee career development, providing equal promotion opportunities and clearcareer advancement pathways for all staff. The Company establishes a hierarchical promotion assessmentsystem by implementing internal grade advancement mechanisms across all positions to standardize em-ployee promotion workows and conducts regular evaluations based on predened assessment cycles andgrade-specic criteria. It aims to motivate employees to continuously enhance their professional knowledgeand comprehensive capabilities through structured career development paths. At the same time, the Compa-ny formulates a job transfer management system. When the Company needs to transfer relevant positionsdue to organizational expansion, changes, or development, excellent and suitable employees are selectedinternally through self-recommendation and department recommendation. Employee Promotion Mechanism There were internal employee training sessions, covering100%of employees. Theinvestment in external training was163,400yuan, and the total training duration was14,129 hours. During the Reporting Period Governance Strengthen Complianceto Solidify Governance Low-Carbon Operationsfor a Green World Innovation-DrivenTransformationAbout theReport AboutWCON Human-CentricCommitment 2024 Environmental, Social, andGovernance Report Message fromChairman Appendix Health Protection Network for Public Safety The Company profoundly recognizes the importance of workplace safety and occupational disease prevention and strictly implements legal requirements, including theLaw of the People's Republic of China on Work Safety and theLaw of the People's Republic of China on the Prevention and Control of Occupational Diseases. To fulll our commitments, the Company has established a comprehensive occupational disease prevention and controlaccountability framework, developed 12 institutional documents, such as theOccupational Disease Prevention and Control Responsibility Systemand theOccupational Health “Three Simultaneities” Management System forConstruction Projects, and formed an occupational health management team and assigned dedicated personnel to implement these measures. The objectives are to resolve, control, and eliminate occupational hazards, pro-tect employees’ health and legal rights, improve production and working environments, and promote the Company’s sustainable economic development. At the same time, according to the internal Environmental/OccupationalHealth and Safety Manual, the Company establishes an EHS Safety Committee, which is responsible for ensuring the continuous improvement of all employees' awareness of occupational health and safety and ensuring thetimely and orderly procedures for notication, command, control, rescue, evacuation, etc. in emergencies. Achievements in 20242024/2025 Targets To ensure employees' safety, reduce or even eliminate the occurrence of work-related injuries, and enhancethe safety responsibility awareness of each department, the Company formulates theControl Procedure forHandling Work-related Injury Accidents, purchases work-related injury insurance for all employees, conductspre-job training on relevant knowledge for each employee. Employees engaged in special types of work mustundergo job skill training, pass the assessment, and hold valid certications for their positions. Personnel ofall trades are prohibited from cross-operating or using machinery/equipment from other trades without au-thorization. Supervisors may temporarily reassign job duties only after ensuring full safety compliance.Chief CommanderWork Safety Manager Evacuation Group Communication Group Security GroupMedical Aid GroupFireghting Group Achieved Major Work-related Injury Accidents Achieved OccupationalDiseases Safety Management System Safety Management Objectives Percentage of special operators licensed: 100%Total investment in work-related injury insurance was475,900 yuan. During the Reporting Period Governance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-DrivenTransformationAbout the Report AboutWCON Human-CentricCommitment 2024 Environmental, Social, andGovernance Report Message fromChairman Appendix The Company prioritizes preventive control of occupational diseases at the source, continuously conductshazard identication and occupational disease prevention education, and implements preventive protectionmeasures and standardized work practices for employees in high-risk positions. The Company entrusts ac-credited occupational health service agencies for workplaces with occupational hazards to conduct annualmonitoring of occupational hazard factors and triennial occupational hazard status evaluations. During thereporting period, the Company engaged an accredited third-party institution to monitor occupational hazardfactors in the workplace. It implemented corrective actions to address non-compliant factors based on themonitoring results. To further strengthen employees' awarenessof re safety, test the ability of all employees,management personnel, and volunteer fire-fighters to respond to sudden fire incidents,enhance staff capabilities in re extinguishing,evacuation, self-rescue, and escape, as wellas improve management's organizational, co-ordination, and command skills at re scenes,the Company organized a comprehensive redrill across the entire factory on November 29,2024. The Company rigorously enforces safety production management and occupational disease prevention &control following regulatory requirements, safeguarding employees' physical/mental well-being and work-place safety while striving to establish an accident-free and injury-free operational environment. The Company attaches importance to the safety management of contractors. The main external contractorsare security services and staff cafeteria operations. The Company has established theSecurity ManagementRegulationsand theCafeteria Operating Procedures, which explicitly allocate safety accountability to con-tracted parties. The Company conducts contractor-associated risk assessments through systematic hazardidentication and control processes. Contractors must perform competency-based emergency response drillsto maintain operational readiness for incident management. Fire Drill Safety Risk Management Occupational Disease Hazard Detection The Company proactively conducts workplace safety hazard identications, establishes clear risk assessmentand rectication protocols, and implements timely corrective actions to ensure a safe and stable workingenvironment for employees. The Company has implemented a multi-frequency, categorized hazard man-agement system with hierarchical controls across the entire plant. This system enforces daily, weekly andmonthly inspections to ensure comprehensive risk mitigation. During the Reporting Period, the safety hazardinspection and rectication rate was 100% Safety Hazard AssessmentContractor Safety Management The Company has established theEmergency Rescue and Management System for Occupational DiseaseHazardsin compliance with relevant laws and regulations. This system standardizes emergency responseand management procedures during major occupational hazard incidents, ensuring effective control andmitigation of various occupational disease-related accidents to minimize harm to personnel. The Companyadheres to the principle of “rapid response and proper management” by regularly conducting re drills andother emergency safety exercises. These initiatives aim to enhance employees' familiarity with emergencyprocedures and strengthen their comprehensive capabilities in responding to accident risks, thereby improv-ing overall workplace safety preparedness. Safety Emergency Drills The Company proactively implements various comprehensive protective measures to mitigate occupationalexposure risks, including issuing certied PPE (personal protective equipment) to employees in high-risk posi-tions. The establishedMaintenance and Overhaul System for Occupational Disease Prevention FacilitiesandtheManagement System for Occupational Disease Prevention Supplies ensure continuous operation of occu-pational disease prevention equipment and emergency equipment. Giving priority to employees’ health, theCompany mandates annual occupational health surveillance for personnel exposed to workplace hazards.The 2024 monitoring program covered a total of 351 at-risk workers through required assessments and iden-tied zero new occupational disease cases. Occupational Disease Prevention The detection rate of occupational disease hazards: 100%The pass rate of occupational disease hazard detection: 100%The coverage rate for safety risk protection training: 100% During the Reporting Period Safety Management Measures CASE Governance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-Driven TransformationAbout theReport AboutWCON Human-CentricCommitment2024 Environmental, Social, andGovernance Report Message from Chairman Appendix In November 2024, the Company appointed Professor Tan Feng, a nationally accredited veteran TCM(Traditional Chinese Medicine) expert, as its Chief Wellness Consultant. This engagement included cus-tomized health education workshops for designated employee cohorts. The Company has established a comprehensive social responsibility vision centered on spearheading con-nector technology innovation, fueling regional economic growth, and broadly enhancing societal well-being.Guided by its long-term development strategy, the Company dynamically allocates resources across criticalareas encompassing regional economic revitalization, industrial advancement, educational/cultural develop-ment, healthcare improvement, environmental sustainability, and diversied philanthropic initiatives, whichare essential directions for fullling the Company’s social responsibilities and making public welfare invest-ments.The Company upholds the harmonious integration of economic returns and social value creation, rigorouslycomplying with national statutory requirements and aligning with governmental policy orientations. TheCompany is committed to generating quality employment opportunities by maintaining operation integritywithin legal frameworks and fostering sustainable, well-structured growth for regional economic ecosystems.The Company will continue to fulll its social responsibilities steadfastly. By continuously enhancing brandinuence and industry leadership, the Company is committed to creating more excellent value for all stake-holders, including all sectors of society, investors, and employees. Social Engagement for a Sustainable FutureHealth Training The Company has established theHazardous Chemicals Management Regulationsto dene the inventory ofhazardous chemicals. The Human Resources Department is responsible for chemical storage managementand daily supervision, while the chemical usage department oversees the operational management of chemi-cal handling. All hazardous chemicals are required to have standardized Material Safety Data Sheets (MSDS)documentation. Employees must strictly adhere to established procedures when handling hazardous chem-icals, with designated supervisors monitoring operations to prevent violations. In the event of potential haz-ards, employees must immediately implement emergency protocols to eliminate or minimize workplace risks. Management of Hazardous Chemicals The Company conducts annual safety education and training programs covering occupational safety knowledge,workplace safety protocols, and safety management competency development. Employees must demonstratecompetency through written exams to enhance their safety awareness, thereby strengthening the Company'soverall safety governance framework.Cultivation of Safety Culture There were safety education and training sessions, with3,300participants, totaling 41.50 training hours, achieving a100% coverage rate for safety education. During the Reporting Period CASE Sustainable DevelopmentGovernance Strengthen Complianceto Solidify Governance Low-Carbon Operationsfor a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout the Report AboutWCON Appendix2024 Environmental, Social, andGovernance Report Message fromChairman AppendixKey Performance Form MetricsUnit202220232024Total OperatingIncome RMB 10,00048,029.2248,663.4053,417.23Net Prot Attributableto Shareholders of the Parent Company RMB 10,00011,203.2613,035.468,546.64Total TaxesRMB 10,0001,491.922,677.692,688.32 MetricsUnit202220232024Remuneration for directors,supervisors, and senior managers RMB 10,000360.67420.58395.50Number of legal training sessionsTimes111Duration of Ofine Legal Training forDirectors, Supervisors, and Senior Executives 小时8888104Total participants in legal training programs Person111111 The amount involved in litigation orsignicant administrative penalties caused by the Company's unfair competition behavior during the Reporting Period RMB 10,000000Signing Rate of Integrity and OtherRelated Business Ethics Agreements %100100100Total instructional hours dedicated toanti-commercial bribery and anti-graftcompliance training delivered to board members Hour--6Total instructional hours dedicated toanti-commercial bribery and anti-graftcompliance training delivered to the management Hour--80Total instructional hours dedicatedto anti-commercial bribery and anti-graft compliance training delivered to employees Hour--238Number of performance briengs heldTimes-22Number of company open days held Times221Number of interactions with investors at irm.cninfo.com.cn Times7668105Reply rate on irm.cninfo.com.cn%10098.53100Number of periodic reports disclosed externally Copy166Number of interim announcementsdisclosed externally Copy376154Note 1: Including collective investor engagement day initiatives, and corporate visitation programs MetricsUnit202220232024 Economic Performance Governance Performance Governance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-Driven Transformation Human-CentricCommitmentAbout the Report AboutWCON Appendix2024 Environmental, Social, andGovernance Report Message fromChairman MetricsUnit202220232024Total environmental investmentRMB 10,00010.0015.00240.20Compliance rate observed in pollutant monitoring %100100100Synchronized operation rate of environmental facilities %100100100The compliance rate of “threesimultaneities” in environmentalprotection for construction projects %100100100Number of environmental training sessions Times111414Number of participants inenvironmental training Person-times313405525Total hours of environmental trainingHour344.5458689.5 GasolineTon4.884.544.36Total purchased electricitykWh6,747,7006,993,3548,069,948Total emission of greenhouse gases tCO e3,222.703,373.184,336.63Direct greenhouse gas emissions (scope 1) tCO e41.6575.8173.93Indirect greenhouse gas emissions (scope 2) tCO e3,181.053,297.374,262.71 Note 1: Scope 1 GHG emissions are calculated based on default values of common fossil fuel characteristicparameters issued by the National Development and Reform Commission of the People's Republic of China; Scope2 GHG emissions are calculated based on average carbon dioxide emission factors for China's regional power gridsissued by the National Development and Reform Commission of the People's Republic of China. Total water consumptionTon45,68851,39450,682 Waste gas emissionsTon0.250.300.66Wastewater dischargesTon56,457.3963,508.3076,748.79Quantity of general waste generatedTon333Recycling rate of general waste%505050Quantity of general waste disposed ofTon333Quantity of hazardous waste generated Ton222Quantity of hazardous waste disposed of Ton222Waste disposal compliance rate%100100100Waste engine oilTon0.60.60.6Waste oil drumsTon0.20.20.2Domestic waste garbageTon481.8481.8481.8 MetricsUnit202220232024Environmental Performance Governance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-Driven Transformation Human-CentricCommitmentAbout theReport AboutWCON Appendix 2024 Environmental, Social, andGovernance Report Message fromChairman MetricsUnit202220232024 Percentage of contract workers%100100100Number of dispatched workersPerson000Number of part-time employeesPerson000 Total number of employeesPerson1,2031,3821,459 Including: By job levelSenior management Person141717Middle management Person636878Non-managerial StaffPerson1,1261,2971,364 Including: By genderFemalePerson579664698MalePerson624718761 Including: By ageUnder 30 (exclusive) years oldPerson27334261630 (inclusive) to 40 (exclusive) years oldPerson61470254240 years old or abovePerson316338301 ◎ Labor Relations Management Including: By academic qualicationMaster’s degree or abovePerson4912 Bachelor’s degreePerson5980122College degreePerson187227260Below associate degreePerson9531,0661,065 Including: By professionProductionPerson8639751,028SalesPerson546478TechnologyPerson224279211FinancePerson161716AdministrationPerson4647126Number of employees with disabilitiesPerson122Number of employees of minority nationalities Person155149154 MetricsUnit202220232024 Social Performance Governance Strengthen Complianceto Solidify Governance Low-Carbon Operationsfor a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout theReport AboutWCON Appendix2024 Environmental, Social, andGovernance Report Message fromChairman Number of employees of minoritynationalities in the management Person234Number of new employeesPerson8699761,003 Including: By recruitment channelSocial recruitmentPerson842957982On-campus recruitmentPerson271921The proportion of female managers%15.5814.1214.74Number of employees on maternity leavePerson374Number of employees who took parental leave Person136Social insurance coverage rate%999797Number of projects reviewed andapproved by the trade union Item011Proportion of labor union members toin-service employees %203071.10Number of cases of labor disputesItem000Employee turnover rate%41.1636.6236.69 Including: By genderFemale%53.1657.8952.11 Male%46.8442.1147.89 Including: By ageUnder 30 (exclusive) years old%39.9445.6145.3730 (inclusive) to 40 (exclusive) years old%47.1445.4947.0930 (inclusive) to 40 (exclusive) years old%12.078.276.6350 years old or above%0.580.630.91 Note 1: Director level, Note 2: Section Chief + Manager level, Note 3: Deputy Section Chief level and above MetricsUnit202220232024Investment in employee trainingRMB 10,000--16.34Number of employee training sessionsSession231256400 Total number of persons trainedPerson1,2031,3821,459Total number of persons trainedPerson-times8,2929,98410,744Employee training coverage%100100100Total hours of employee trainingHour9,749.511,669.514,129Average training hours per employee per year Hour11.4711.6713.59Number of employees having successfullytransitioned or applied internally Person199172175Proportion of internal transfers orapplications by employees %23.4117.2016.83 MetricsUnit202220232024MetricsUnit202220232024 ◎ Employee Development and Training Governance Strengthen Complianceto Solidify Governance Low-Carbon Operationsfor a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout theReport AboutWCON Appendix 2024 Environmental, Social, andGovernance Report Message fromChairman ◎ Innovation-Driven GrowthMetricsUnit202220232024Number of safety production accidentsCase000Number of work-related deathsPerson000Total number of work-related injuriesPerson000 Hidden danger investigation and rectication rate %100100100Safety education and training sessionsTimes323638 Number of participants in safetyeducation and training sessions Person-times3,0603,2003,300Total hours of safety education and training Hour384741.50Coverage rate of safety education and training %100100100Coverage rate of safety risk protection training %100100100Percentage of special operators licensed %100100100Investment in work-related injury insurance RMB 10,00018.7726.647.59Coverage rate of work-related injuryinsurance for employees %100100100Coverage rate of physicalexaminations for employees %100100100The detection rate of occupational disease hazards %100100100Pass rate of occupational diseasehazard detection %100100100 MetricsUnit202220232024Investment in R&DRMB58,904,472.1572,336,311.2464,355,742.49R&D investment as a percentage ofprimary business revenue %12.2614.8612.05Total R&D team membersPerson224267210Proportion of R&D personnel%18.6219.3213.60 Including: By ageUnder 30(exclusive) years oldPerson70816230 (inclusive) to 40 (exclusive) years oldPerson10713110740 years old or abovePerson475541 Including: By academic qualicationBachelor’s degree or belowPerson200232176Bachelor’s degrePerson243132Master’s DegreePerson042Core technical personnel of the Company Person151818Total number of authorized patentsItem143167201Cumulative number of authorizedinvention patents Item81121Cumulative number of authorizedutility model patents Item132153168Cumulative number of granteddesign patents Item3311Number of valid patents per million yuan in revenue Item0.300.340.38 ◎ Occupational Health and Safety Sustainable DevelopmentGovernance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-Driven Transformation Human-CentricCommitmentAbout theReport AboutWCON Appendix2024 Environmental, Social, andGovernance Report Message fromChairman◎ Product and Service Safety and Quality MetricsUnit202220232024Number of risk assessments conductedTimes111 Product percent of pass%99.4199.5299.66Times of annual quality internal auditsTimes111Number of times third-party agencies were engaged for sampling Times111Number of products that are requiredto be withdrawn and recalled for health and safety reasons Case000Amount involved in accidents withsignicant safety or quality responsibilitiesrelated to products or services RMB 10,000000Number of participants in quality training Person-times98105119Total hours of quality trainingHour2,3522,5202,737Number of quality training sessionsTimes242423 ◎ Supply Chain Security and Sustainability MetricsUnit202220232024 Number of suppliersUnits414141The proportion of spending onpurchasing from local suppliers was %44.5045.0048.77Number of suppliers certied underquality management systems Units-3939Number of suppliers certied underenvironmental management systems Units-1515Number of suppliers certied under occupational health and safetymanagement systems Units-22Number of suppliers suspended due to non-compliance Units-00Number of prospective suppliersrejected due to non-compliance Units-00Percentage of suppliers that havesigned theIntegrity Agreement %100100100The number of incidents withsignicant risks and impacts on the supply chain was Case000◎ Protection of Customers’ Rights and Interests MetricsUnit202220232024 Customer complaint resolution rate%100100100Number of participants in special trainingon responding to customer complaints Person-times166230192Total hours of special training on customer complaint response Hour166230192Number of sessions of special trainingon customer complaint response Times233Total sessions of responsible marketing trainingTimes243238Number of customer informationleakage incidents Case000 ◎ Data Security and Privacy Protection MetricsUnit202220232024Number of training sessions carried outTimes111212Total investment in data securityRMB 10,000142.72.49.7Number of incidents of informationsecurity and privacy protection violations Times000 Note: The number of suppliers is counted based on the list of qualied suppliers. Governance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-DrivenTransformation Human-CentricCommitmentAbout theReport AboutWCON Appendix2024 Environmental, Social, andGovernance Report Message from Chairman Disclosure RequirementsCorresponding Sections of This Report Disclosure RequirementsCorresponding Sections of This Report Response to Climate Change Low-Carbon Operations for a Green World – Responding to Climate Change, Implementing Low-Carbon InitiativesPollutant Emissions Low-Carbon Operations for a Green World – Advancing EnvironmentalStewardship, Reinforcing Pollution & Waste Mitigation ControlsWaste Disposal Low-Carbon Operations for a Green World – Advancing EnvironmentalStewardship, Reinforcing Pollution & Waste Mitigation ControlsEcosystem and BiodiversityConservation Not InvolvedEnvironmental ComplianceManagement Low-Carbon Operations for a Green World– AdvancingEnvironmental Stewardship, Reinforcing Pollution & Waste Mitigation ControlsEnergy Utilization Low-Carbon Operations for a Green World – Optimizing Energy Management, Enhancing Resource EfciencyWater Resource Utilization Low-Carbon Operations for a Green World – Optimizing Energy Management, Enhancing Resource EfciencyCircular Economy Low-Carbon Operations for a Green World – Optimizing Energy Management, Enhancing Resource EfciencyRural Revitalization Human-Centric Commitment – Proactive Social Engagement, Co- building a Sustainable FutureContribution to Society Human-Centric Commitment – Proactive Social Engagement, Co- building a Sustainable FutureInnovation-Driven Growth Innovation-Driven Transformation – Leveraging Innovation Catalysts, Co-accelerating Industrial EcosystemsTechnology EthicsNot Applicable Shenzhen Stock ExchangeSelf-Regulatory Guidelines No.17 for Companies Listed on Shenzhen StockExchange - Sustainability Report (For Trial Implementation) Supply Chain Security Innovation-Driven Transformation – Reinventing SourcingGovernance, Strengthening Supply Resilience & Guarantee ProvisionEqual Treatment of Small andMedium-Sized Enterprises Not ApplicableProduct and Service Safety and Quality Innovation-Driven Transformation – Strengthening Quality-Centric Foundation, Forging Premium Brand ExcellenceData Security and Customer Privacy Protection Strengthen Compliance to Solidify Governance – Prioritizing Data Integrity, Fortifying Privacy SafeguardsEmployees Human-Centric Commitment – Safeguarding Employees' Rights and Interests, Creating a Fair WorkplaceHuman-Centric Commitment – Unblocking Development Channels to Assist Employees' GrowthHuman-Centric Commitment – Strengthening the Health ProtectionNetwork and Reinforcing the Defense Line for Public SafetyDue Diligence Human-Centric Commitment– Safeguarding Employees' Rights and Interests, Creating a Fair WorkplaceInnovation-Driven Transformation – Strengthening Quality-Centric Foundation, Forging Premium Brand ExcellenceCommunications with Stakeholders Sustainable Development Governance - Communications with StakeholdersAnti-commercial Bribery and Anti- corruption Strengthen Compliance to Solidify Governance – ReinforcingCompliance Governance, Fortifying Ethical BedrockAnti-unfair Competition Strengthen Compliance to Solidify Governance – ReinforcingCompliance Governance, Fortifying Ethical BedrockProtection of Shareholders’ Rights and Interests Strengthen Compliance to Solidify Governance – StrengtheningInvestor Relations Management, Protecting Shareholder RightsCorporate Governance Compliance Strengthen Compliance to Solidify Governance – StandardizingCorporate Governance, Promoting Prudent OperationCompliance and Risk Control Strengthen Compliance to Solidify Governance – StandardizingCorporate Governance, Promoting Prudent OperationStrengthen Compliance to Solidify Governance – ReinforcingCompliance Governance, Fortifying Ethical BedrockESG GovernanceSustainable Development Governance Metric Index Sustainable DevelopmentGovernance Strengthen Complianceto Solidify Governance Low-Carbon Operationsfor a Green World Innovation-Driven Transformation Human-CentricCommitmentAbout the Report AboutWCON Appendix2024 Environmental, Social, andGovernance Report Message fromChairman Thank you for reading the2024 Environmental, Social, and Governance (ESG) Report of WCON Electronics (Guangdong) Co., Ltd. We greatly value and eagerly anticipate your opinions and suggestions on oursustainability efforts and sustainable development management. Your feedback is essential for continuously improving and enhancing our sustainability management practices. We kindly invite you to complete thequestions in the “Feedback” section and share your responses through the modes provided below. Once again, thank you for your strong support of our sustainability initiatives! 1. Your overall assessment of this year’s ESG report: □ Excellent □ Good □ Average □ Below Average □ Poor 2. Do you think the information disclosed in the report is accurate, clear, and complete? □ Excellent □ Good □ Average □ Below Average □ Poor 3. Do you nd the report readable? □ Excellent □ Good □ Average □ Below Average □ Poor 4. Do you think the report comprehensively reflects the Company’s significant economic, societal, and environmental impacts? □ Excellent □ Good □ Average □ Below Average □ Poor 5. What is your evaluation of the report’s logical reasoning, structural arrangement, and layout design? □ Excellent □ Good □ Average □ Below Average □ Poor 6. Which topics in this year’s ESG report most captured your attention? 7. What additional information would you like to see in the report? 8. Your opinions on our ESG report or sustainable development work and sustainable development management. Tel.: 0769-85358915Email: cwdg@wcon.comCompany address: No. 15 Wenming Road, Daning Community, Humen Town, Dongguan City,Guangdong Province Which of the following stakeholders is most relevant to you about WCON? □Employee □Customer □ Shareholder and Investor □Supplier □Government and Supervisory Agency □ Industry Association or Scientic Research Institution □Social Organization, Media and the Public □Others (please specify) Feedback Governance Strengthen Complianceto Solidify Governance Low-Carbon Operations for a Green World Innovation-DrivenTransformation Human-CentricCommitmentMessage from Chairman Appendix
附件： ↘公告原文阅读

Sustainable DevelopmentGovernance

Strengthen Complianceto Solidify Governance

Low-Carbon Operationsfor a Green World

Innovation-DrivenTransformation

Human-CentricCommitmentAbout theReport

AboutWCON2024 Environmental, Social, andGovernance Report

Message fromChairman

Appendix

CONTENTS

About the ReportMessage from Chairman

AppendixKey Performance FormMetric IndexFeedback

Standardize Governance for StableOperationEnhance Investor Relations to ProtectShareholders' InterestsReinforce Compliance for BusinessEthicsPrioritize Data Security to PreventPrivacy Breach

Strengthen Complianceto Solidify Governance

Low-Carbon Operationsfor a Green World

Low-Carbon Initiatives to AddressClimate ChangeStrengthen Pollution ControlOptimize Energy Management

3 1

Innovation-DrivenTransformation

Human-CentricCommitment

Co-accelerate Industrial EcosystemsPremium Brand from QualityReinvent Sourcing Governance

4 1

Safeguard Employees' RightsUnblock Development ChannelsHealth Protection Network for PublicSafetySocial Engagement for a SustainableFuture

About WCON

Performance in 2024Company ProleIndustrial LayoutCorporate CultureHonorsShareholding StructureDevelopment Course

Sustainable DevelopmentGovernanceSustainability GovernanceObjectivesSustainability GovernanceStructureCommunications withStakeholdersManagement of Material Topics

1 1

Sustainable DevelopmentGovernance

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AboutWCON2024 Environmental, Social, andGovernance Report

Message fromChairman

Appendix

About the Report

The2024 Environmental, Social and Governance (“ESG”) Report of WCON Electronics (Guangdong) Co., Ltd.(hereinafter referred to as “the Report”) is the first ESG report issued by WCON Electronics (Guangdong)Co., Ltd. (hereinafter referred to as “WCON” or “the Company”). In the principles of objectivity, standardization, transparency, and comprehensiveness, the Report provides a detailed disclosure of the Compa-ny’s practices and performance in social responsibilities such as environment, society, and corporate governance for 2024.Reporting Scope

Data ExplanationAppellation DescriptionConrmation and ApprovalAccess to the Report

TermDenition

WCON, the Company, WeWCON Electronics (Guangdong) Co., Ltd.WCON AutomotiveDongguan WCON Automotive Electronics Co., Ltd.State/Government

e People's Republic of China andits administrative agenciesSZSEShenzhen Stock ExchangeCompany LawCompany Law of the People's Republic of ChinaSecurities LawSecurities Law of the People's Republic of ChinaArticles of Association

Articles of Association of WCON Electronics

(Guangdong) Co., Ltd.

Unless otherwise indicated by the context, the following terms in the Re-port have the meanings as below:

Data sources used in the Re-port include the Company’sactual operational data, an-nual financial data, internalstatistical reports, third-partyquestionnaire surveys, etc.The nancial data in the Re-port is expressed in RMB. Thefinancial statements shallprevail in any discrepancybetween the Report and thenancial statements.

◎ The Company’s Board approved the Re-port of Directors on April 25, 2025, and wassubsequently released in conjunction withthe Company's Annual Report for 2024. TheBoard pledges to exercise oversight over thecontents of the Report, ensuring its absenceof any false records or misleading representa-tions and assuming responsibility for its truth-fulness, accuracy, and completeness.◎ The Report is published in Chinese, withthe English version derived from the Chineseversion. For any discrepancy between the twoversions, the Chinese version shall prevail.

The electronic version of theReport is available for refer-ence and download from theinformation disclosure websitedesignated by the ShenzhenStock Exchange, CNINFO (www.cninfo.com.cn), or the Com-pany's website (www.wcon.com). If you have any questionsor suggestions about the Re-port, you can send an email tocwdg@wcon.com or call 0769-85358915.

Preparation Basis

The Report focuses on WCON Electronics (Guangdong) Co.,Ltd. and its branches and subsidiaries. The scope of theReport is consistent with the Company’s Annual Reportunless otherwise stated. The Report covers from January1, 2024, to December 31, 2024 (the “Reporting Period”) andis released annually, consistent with the financial year. Toimprove comparability and completeness, some sections ofthe Report may be appropriately referred to previous yearsor contain forward-looking statements.

The Report is prepared according to the guidelines of the stock exchange where the Company is listed and international information disclosurestandards, and the reference disclosure documents are as follows:

◎Shenzhen Stock ExchangeSelf-Regulatory Guidance No. 3 for Companies Listed on ChiNext Market of Shenzhen Stock Exchange—Preparation of Sustainability Report◎Shenzhen Stock ExchangeSelf-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange - Sustainability Report (For Trial Implementation)◎ Global Reporting InitiativeSustainability Reporting Standards (GRI Standards)◎ China Enterprise Reform and Development SocietyGuide to Corporate Sustainability Reporting in China (CASS-ESG 6.0)◎UN Sustainable Development Goals (SDGs)◎ Task Force on Climate-related Financial Disclosures (TCFD)

Recommendations of the Task Force on Climate-related Financial Disclosures

Message from

Chairman

Sustainable Development

Governance

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Low-Carbon Operations

for a Green World

Innovation-Driven

Transformation

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AboutWCON2024 Environmental, Social, andGovernance Report

Appendix

Message from Chairman

Hello! I am deeply honored to present WCON's rst Environmental, Social, and Governance (ESG) Report. On behalf of WCON, I would like toexpress my sincere gratitude to all stakeholders who have given us rm support and trust.2024 was full of challenges and the rst year for WCON to launch its ESG strategic deployment ofcially. Amidst intensifying industry compe-tition and market volatility, we forge ahead with unwavering resolve, anchored in our core strategy of “Quality as our Cornerstone, Innovation asour Driver, and Customer Primacy as our Compass.” In the past year, we completed the commissioning of the projects funded by the initial publicoffering of shares and took a historic step towards manufacturing overseas. At the same time, we thoroughly implemented the corporate visionof “becoming a global high-end precision connectors and customer solution service provider” and continuously invested in research and devel-opment innovation and intelligent manufacturing construction. We unswervingly followed the development path driven by both innovation andquality. In addition, we actively responded to the global trend of sustainable development and committed to improving corporate governance. Westrived to achieve harmonious coexistence among economic growth, social welfare, and environmental protection and to explore and enhancethe multi-faceted internal value of the enterprise.WCON is committed to building a green, intelligent, equal, and transparent modern industrial park and deeply implanting the ESG concept intothe Company's strategic decision-making and long-term planning.In terms of the environment and green development, we actively introduced green energy technologies such as chilled water storage

systems, photovoltaic devices, and energy storage facilities and established an energy management system to achieve rened classication mon-itoring and management of the plant's resources, continuously optimize energy allocation, and repeatedly set new lows in carbon emissions.

Regarding social responsibility, WCON adheres to “humanism” by fully respecting and protecting employees' rights and interests, creat-ing a safe and healthy working environment, and guiding employees' growth with a positive corporate culture. We provide high-quality working,living, and dining conditions, hold monthly birthday parties, and offer abundant festival and family visit benets. In 2024, we implemented anemployee stock ownership plan, comprehensively reformed the compensation system, and broaden the channels for employee training and pro-motion. By combining short-term benets with long-term incentives, we promoted the synchronous growth of employees and the enterprise.

In terms of corporate governance, we strictly abide by national laws, regulations, and international industry standards and meticulouslyconstruct and optimize the internal control system to enhance the effectiveness of risk management, improve the transparency of informationdisclosure, and ensure that the decision-making process is scientic, fair, and transparent. By continuously rening the corporate governancestructure, we strive to maximize value creation while ensuring all stakeholders' legitimate rights and interests are embedded in our governanceprocesses with complete respect and protection.

Looking ahead, WCON will continue to deepen its sustainable development practices, leveraging the dual engines of “Quality Leadership”and “Innovation-Driven Growth” to comprehensively elevate its core competitiveness, steering toward a new phase of synergistic co-developmentamong economic, social, and environmental benets. We sincerely invite all partners to join hands to create a brilliant and sustainable future.

WCON Electronics (Guangdong) Co., Ltd.Chairman & General Manager: Li Wenhua

Governance

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Appendix

About WCONPerformance in 2024

Environmental Performance

240.20

RMBTotal Environmental Investment

timesNumber of Environmental Training Sessions

4,336.63

tCO

eTotal Emission of Greenhouse Gases

100%

Waste Disposal Compliance Rate

Economic Performance

53,417.23 (in RMB 10,000)

Total Operating Income

8,546.64(in RMB 10,000)

Net Prot Attributable to Shareholders ofthe Parent Company

2,688.32(in RMB 10,000)

Total Taxes

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Appendix

Governance Performance

hoursDuration of Ofine Legal Training for Directors,Supervisors, and Senior Executives

100%

Signing Rate of the Business Ethics Agreements

time

Number of Reports of Corruption or Bribery Incidents

100%

Proportion of Management Personnel Attended the Anti-commercial bribery and Anti-corruption Training

100%

Reply rate to investors’ inquires

Material Legal Non-compliance Incidents

Social Performance

Cumulative Patents Granted

100%

Coverage Rate of PhysicalExaminations for Employees

100%Percentage of Suppliers that HaveSigned the Integrity Agreement

Number of case Labor Disputes

case

Number of Safety Production Accidents100%100%

Employee Training Coverage

99.66%

Product Percent of Pass

12.05%

Percentage of R&D Investment in Operating Income

(in RMB 10,000)6,435.57

Investment in R&D

Percentage of Contract Workers

Governance

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Transformation

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Appendix

Company ProleWCON Electronics (Guangdong) Co., Ltd., es-tablished in November 2002, was listed on theChiNext Market of the Shenzhen Stock Exchangeon September 8, 2022 (Stock Short Name: WconElectronics, Stock code: 301328). The companyprovides board-to-board (BTB) and wire-to-board(WTB) precision connectors and cable assem-blies. Its main business focuses on research,development, design, production, and sales ofconnectors and cables in industrial control, auto-motive electronics, and new energy industries.Committed to providing customers with custom-ized, intelligent, and efficient connectivity solu-tions, the Company offers 17 prominent productfamilies with over 50,000 active trading SKUs andover 100,000 reserved product SKUs. These serveapplications across industrial automation control,three-electric systems (motor/battery/electroniccontrol system) of electric vehicles, ADAS, smartcockpits, and solar inverter systems.

Prominent product families

Active trading SKUs

50,000+

Reserved product SKUs

100,000+

Governance

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Appendix

WCON Headquarters (Nov. 2002)

Building area: 60,228 m

Kunshan (July 2006)Building area: 46,000 m

Hefei (Oct. 2022)Building area: 1,800 m

Hengyang (Nov. 2022)Building area: 4,000 m

ailand (under construction)Building area: 45,000 m

Global distribution of enterprises

WCON Electronics (Guangdong) Co., Ltd.(Headquarters)Dongguan WCON Automotive Electronics Co., Ltd.

WCON ELECTRONICS EUROPE SRL

WCON ELECTRONICS (SINGAPORE) PTE. LTD.

WCON HARDWARE ELECTRONICS LIMITED

Hengyang WCON Electronics Co., Ltd.

Hefei WCON Electronics Co., Ltd.

Dongguan

Kunshan WCON Electronics Co., Ltd.

Kunshan

WCON ELECTRONICS (THAILAND)CO.,LTD. (under construction)

Thailand

Hengyang

Singapore

Italy

HongKong

Hefei

Governance

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Appendix

Industrial Layout

Industrial Control ConnectorsIn the industrial control eld, the Company's products mainly includeBTB connectors and WTB connectors.

Automotive ConnectorsIn the automotive eld, based on different application scenarios, theCompany strategically focuses its deployment on the medium andlow-voltage signal transmission connectors and, at the same time,complements and synergizes its business operations with high-fre-quency and high-speed connectors.

New Energy Connectors

In the new energy eld, the Company's products are mainly used forsignal control transmission, and applied to solar and wind energyinverter systems. Moreover, the Company continues to expand theconnectors required for household and commercial energy storageand charging applications and provides photovoltaic energy storagesystem solutions, forming a comprehensive coverage of the threeelds of photovoltaics, energy storage, and charging, to strengthenthe business layout of new energy connectors.◎ New Energy ConnectorsThe products are mainly used for signal

control transmission, with pitches rang-ing from 1.27 mm, 2.0 mm to 5.08 mm,and 7.62 mm. With a dual-contact andmulti-contact terminal structure design,they can achieve reliable connectionand extend the service life simulta-neously, and can work stably in anenvironment with a large temperaturedifference.

Main ProductsIntroduction

◎ Industrial control BTB

connectors

The products are primarily used for sig-nal transmission and power supply, withpitches ranging from 0.4mm, 0.5mm to

3.96mm, 5.08mm, and transmission rates

ranging from 5Gbps to 30Gbps. They canprovide various PCB installation methodssuch as SMT and THT.

Application elds: They can be applied explicitly to industrial controland automation equipment such as servo motors, programmable logiccontrollers (PLCs), robotic arms, and industrial computers.

The products are mainly used for signalinput and output, with pitches rangingfrom 0.8mm, 1.0mm, 1.27mm to 5.08mm,

7.5mm, and transmission rates ranging

from 5Gbps to 30Gbps. They can providemultiple wire diameter specication solu-tions of 18-36AWG.

◎ Industrial control WTB

connectors

Main Products

◎Medium and low-

voltage signaltransmission connectors

Application elds: The medium and low-voltage signal transmission con-

nectors are primarily used for the three-electric systems (battery, motor,and electronic control system) of new energy vehicles; the high-frequencyand high-speed connectors are primarily used for intelligent cockpit sys-tems, autonomous driving systems, and body domain control systems.

Introduction

The products are primarily used for sig-nal transmission and power supply, withpitches ranging from 0.5 mm, 0.8 mm, 2.2mm to 3.0 mm, 4.0 mm, 6.0 mm, and thewaterproof grade reaching IP67, IP68, andIP6K9K. Equipped with terminal reinforce-ment, mating anti-misinsertion, and sec-ondary locking designs, they exhibit stronganti-vibration performance, stable contact,and reliable transmission capabilities whileproviding multiple mounting design options.We have already offered products suchas FAKRA, MINI FAKRA, HSD, Ethernet,automotive TYPE-C, radar housings, andlarge-current stud terminals.◎ High-frequency and

high-speed connectors

Introduction

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Appendix

Corporate Culture

Shareholding Structure

WCON Electronics (Guangdong) Co., Ltd.

WCON ELECTRONICS EUROPE SRL

(lncorporated in ltaly)WCON ELECTRONICS (SINGAPORE) PTE.,LTD

(Incorporated in Singapore)WCON ELECTRONICS (THAILAND) CO.,LTD(Incorporated in Thailand)

100%52%

95%

WCON Hardware Electronics Co., Ltd.

100%

Hengyang WCONElectronics Co., Ltd.

100%Dongguan WCON Automotive

Electronics Co., Ltd.

60%

Hefei WCON Electronics

Co., Ltd.

51%Kunshan WCONElectronics Co., Ltd.

100%

Honors

National “Little Giant”Enterprise (Specialized and

Sophisticated SMEs)Ministry of Industry and Informa-

tion Technology

National High-Tech Enterprise

Ministry of Science and Technolo-gy, Ministry of Finance, State Taxa-

tion Administration

Dongguan “Double Increase

Enterprise” in 2024Dongguan Double Increase Plan

Working Leadership Group

Innovative Enterprise in

Guangdong ProvinceIndustry and Information Technol-ogy Department of Guangdong

ProvinceCorporate Vision：Become a global high-end precision connectors and customer solution

service provider to lead technological innovation and application development.Corporate Mission：Meet the diverse needs of global customers and create sustainablevalue for the connector industry and society.Values：Integrity-Driven Operations, Quality First, Innovation-Driven Growth, Collaboration

for Win-Win Outcomes.

Message fromChairman

Appendix

Development Course

2002The predecessor ofthe Company, Dong-guan WCON Hard-ware Electronics Co.,Ltd., was established.

2010We developed au-tomotive electron-ics series products,began to enter theautomotive field,and obtained theITAF16949 qualitysystem certicationin the automotiveindustry.

2015We successively launchedsuch products as Boxheaders and Ejectorheaders, which are mainlyused for solar inverters,entered the new energyfield, and developed I/Oseries products, furtherenriching the applicationscenarios of industrialcontrol connectors.

2019We increased investmentin high-end stampingand injection moldingequipment and expand-ed the mold processingcenter. Meanwhile, theCompany held the found-ing conference of thejoint stock company andunanimously resolved toconvert and establish asa joint stock company.

2023

Through our holding subsidiary WCONAutomotive, we developed high-fre-quency and high-speed automotive con-nectors such as Fakra, mini Fakra, andEthernet to expand our business eld.

2022We were listed on theChiNext Market ofthe Shenzhen StockExchange.2017

We moved our Dongguan HQto the Humen Plant, increas-ing the premise area to morethan 30,000 square meters.

2004

We secured UL (US)and CUL (Canada)safety certicationswhile launching theWafer series prod-ucts, significantlyexpanding the port-folio.

2013

We introduced the leanproduction managementmode, CAE product de-velopment, and Mod-el3D mold flow analysissimulation software tooptimize productionmanagement efficiencyand strengthen productdevelopment capabilities.

2024As the projectsfunded by the initialpublic offering ofshares were putinto production, wemoved our Donggu-an HQ to the DaningPlant and increasedthe premise area tomore than 60,000square meters, fur-ther improving thecapacity of intelli-gent manufacturingproduction.

Appendix

2024 Environmental, Social, andGovernance Report

Sustainable DevelopmentGovernance

Strengthen Complianceto Solidify Governance

Low-Carbon Operationsfor a Green World

Innovation-DrivenTransformation

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Sustainable DevelopmentGovernance

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for a Green World

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Appendix

Sustainable Development GovernanceSustainabilityGovernance Objectives

The Company actively aligns with the UN Sustainable Development Goals (SDGs), formulating sustainability management objectives based on SDG princi-ples and its operational context. These objectives span five key areas: production operations, supply chain, employees, products, and social engagement.By collaborating with global enterprises and governmental agencies, the Company aims to address critical global challenges, including environmental pro-tection, social equity, and economic prosperity, to co-create a sustainable future landscape.

SDGs

Management

Level

Production/OperationSocial Engagement

ActionObjectives

◎Further, refine and implement the envi-

ronmental and hazardous substance processcontrol standards and systems under the ISO14001 and QC080000 systems

◎Optimize the energy structure and increasethe share of clean energy◎Establish a carbon emission managementsystem and achieve the ISO 14064 certifica-tion for carbon emission system◎Meet the standards for sewage detection◎Strictly implement the waste managementsystem and explore new channels for wasteconversion◎Implement the 3R concept◎Improve the corporate governance andinternal control system and reduce the risk ofinformation leakage

◎Strengthen the business ethics manage-ment and training systems, ensure unimpededaccess to anti-corruption reporting platformsand channels, and establish a feedback loopfor reporting and resolution◎Regularly conduct multi-channel communi-cation with stakeholders

◎Require suppliers to sign integrity and

confidentiality agreements and continuouslymonitor their certications of social responsi-bility-related systems.◎Integrate the requirements of sustainable

development actions into supplier audit crite-ria and establish a regular communication andsupervision mechanism◎Provide supplier training resources andplans

Employees

◎Improve the EHS management system toachieve the goal of zero work-related acci-dents◎Ensure unimpeded access to employeecomplaint and reporting channels while regu-larly conducting anonymous employee satis-faction surveys◎Engage a third-party company to conductworkplace environment assessments to preventoccupational diseases regularly◎Intensify professional training in informa-tion security and privacy protection

◎Continuously conduct the anti-corruptionand integrity training and achieve 100% em-ployee sign-off on the Anti-Corruption andIntegrity Agreement for Employees

◎Implement a comprehensive employee per-formance reform, clarify the promotion path-ways for each position, and create all-aroundon-job training opportunities◎Improve the level of employee benets

Product

◎Establish and optimize innovative man-ufacturing bases while introducing indus-try-leading manufacturing and quality man-agement software

◎Further rene and implement the internalquality control standards and systems underthe ISO 9001 and IATF 16949 systems◎Intensify R&D investment, comprehen-sively optimize the R&D environment, andsignificantly drive technological innovationand product upgrading◎Encourage R&D and technology iterationin green products and clean technologies

◎Regularly organize community volunteeractivities◎Create high-quality job opportunities◎Advocate peace and justice on a global

scale

Supply Chain

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Appendix

Sustainability Governance Structure

The Company integrates sustainability into its overall governance framework by developing theSustainability Management Handbook and establishing a three-tier governance structure: Board of Directors - Strategy Commit-tee - Sustainability Task Team (decision-making level - planning level - implementation level). With clear responsibilities dened for each tier, this structure ensures that ESG-related impacts, risks, and opportunities are ade-quately considered in business decision-making processes.The Board of Directors oversees the overall decision-making of the Company’s ESG strategy and action plans. The Strategy Committee leads the formulation of ESG strategies and medium-to-long-term plans and manages andsupervises the Sustainability Task Team’s annual work plans. The Sustainability Task Team handles day-to-day ESG operations, deploys and tracks sustainability initiatives, reports progress to the decision-making level, ensuresthe smooth deployment and effective implementation of annual work plans, coordinates with third-party consulting and rating agencies, organizes ESG-related training, and manages the archiving of all ESG documents andreports. The implementation level consists of functional departments, each responsible for establishing and enforcing ESG-related policies and organizing and supervising the implementation of departmental ESG initiatives.

Operations CenterR&D CenterEngineering CenterMarketing CenterQuality CenterFinance CenterSecuritiesDepartment

AuditDepartmentHuman ResourcesDepartment

Administration

Department

IT Management

Department

Procurement Management

Department

Decision-making Level

Planning Level

Implementation

Level

ChairmanBoard of DirectorsStrategy CommitteeSustainability Task Team

The Company has established internal and external audit systems for sustainability management to ensure effective implementation and continuous improvement of sustainability initiatives. Annual audits are conducted inaccordance with these systems, improvement tracking plans are developed based on audit reports, and the Sustainability Task Team is tasked with supervising and urging responsible units to implement improvement meas-ures until full completion.

Governance

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Appendix

Communications with StakeholdersThe Company prioritizes stakeholder engagement by conducting a stakeholder identication process based on business operations. Key stakeholders include shareholders and investors, employees, suppliers, customers, indus-try associations or research institutions, and government or regulatory bodies. Multiple communication channels are established to gather and respond to stakeholders’ expectations and suggestions systematically.

◎Special Reports◎Cooperate withGovernment Research◎Compliance Supervi-sion Investigation

◎Community Public Wel-

fare Activities

◎Media Communication◎Industry Exchanges◎Industry-university-re-search Cooperation

◎Customer Communica-tion and Feedback Channels◎After-sales Support◎Customer Satisfaction

Survey◎Industry Exchanges

◎Supplier Assessmentand Audit

◎Supplier Communica-

tion

◎ Labor Union Commit-

tee

◎ Employee Training◎ Employee Activities◎ Employee SatisfactionSurveys

Communication

Methods and

Channels

Response

◎Improve the Environ-

mental ManagementSystem◎Compliant Operation

◎Provide Local Job

Opportunities◎Strengthen InnovationCapabilities◎Adhere to ProductQuality Management◎Adhere to productQuality Management◎Improve CustomerService Management◎Strengthen InnovationCapabilities◎Strengthen InformationSecurity Management

◎Improve the SupplierManagement System◎Implement TransparentProcurement◎Supplier ESG Manage-ment

◎Improving Compensa-tion and Benet Systems◎Establishing an Em-ployee Training System◎Offering Clear CareerDevelopment Channels◎Ensuring Employees’Occupational Health andSafety

◎Improvement of Corpo-rate Governance◎Strengthen investorrelations management

◎Improvement of Prot-

ability

◎Improve the Sus-

tainable DevelopmentManagement System

◎Shareholders’ Meeting◎Information Disclosure◎Performance Briengs◎Investor Research

Reception

◎Corporate Governance

Compliance

◎Protection of Share-

holders’ Rights andInterests◎Compliance and RiskControl

◎ESG Governance

◎Protection of Employ-

ees' Legal Rights andInterests

◎Training and Develop-

ment

◎Occupational Health

and Safety

◎Supply Chain Security◎Anti-commercial Brib-

ery and Anti-corruption

◎Product and Service

Safety and Quality

◎Innovation-Driven

Growth

◎Data Security and

Privacy Protection

◎Innovation-Driven

Growth

◎Product and Service

Safety and Quality

◎Contribution to Society

◎ESG Governance

◎Environmental Com-

pliance Management

◎Corporate Govern-ance Compliance

Topics of Concern

Stakeholders

Shareholders and

Investors

EmployeesSuppliersCustomers

Industry Associationsor ResearchInstitutions

Social Organizations,

Media and the Public

Governmental orRegulatory Agencies

Governance

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Appendix

Management of Material Topics

The Company refers to the assessment methods stated in domestic and international disclosure standards such as the Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange - Sustainability Re-port (For Trial Implementation).It introduces the analytical perspectives of impact materiality and nancial materiality to identify and assess material topics, with the specic implementation steps as follows:

Step 1: Understand theCompany's backgroundAssessmentProcess of Material

Topics

Assessment

Method

Step 2: Conductpreliminary topic screening

Step 3: Assess the materiality

of topics

1-1：Analyze based on global trends

and conduct macro-environment anal-ysis of China's industry developmenttrends1-2：Analyze based on the industry1-3：Analyze based on the Company'sbusiness model1-4：Identify the stakeholders of theCompany and the impacts, risks, andopportunities the Company faces

Drawing on theSelf-Regulatory Guide-lines No. 17 for Companies Listed onShenzhen Stock Exchange - Sustainabil-ity Report (For Trial Implementation),UNSustainable Development Goals (SDGs),SASB, MSCI, and related topics fromdomestic and international peers, theCompany identified 23 material topicsbased on its conditions and establisheda sustainability topic library.

3-1：Assess impact materialitySort through the potential or actual positive ornegative impacts of each topic on the externalenvironment, society, and economy, and con-duct a survey analysis of stakeholders usinga questionnaire. A total of 194 questionnaireswere collected, and based on the survey results,17 topics with impact materiality were identi-ed.3-2：Assess nancial materialityThrough the analysis of impacts, dependencies,and other factors, in combination with question-naires (74) and expert judgments and risk iden-tication and evaluation lists from departments,identify and assess risks and opportunitiesunder each relevant topic and identify 5 issueswith nancial materiality.

Form a topic list based on im-pact materiality and financialmateriality, and ensure that therelevant topics are transparent-ly, fairly, and comprehensivelydisclosed in the report.

Step 4: Conrmmaterial topics

Analysis Steps of Material Topics

Governance

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AppendixMaterial Topic LibraryAssessment Result of Topic Materiality

Based on the analysis results of industry standard and stakeholder feedback from returned surveys, weidentied key issues in two dimensions of "impact materiality" and "nancial materiality" to form a matrix ofmaterial topics in 2024.

Note: Topics such as technological ethics, ecosystem and biodiversity conservation, and equal treatment of smalland medium-sized enterprises fall under disclosure topics for specic stakeholders that the Company does not cur-rently engage in, and thus relevant content will not be disclosed.

DimensionTopics

-Dual Materiality Assessment and Analysis-

Materiality to corporate nance

Materiality to economic, social, and environmental impacts

Very high

General Materiality

Very highGeneral Materiality

◎Ecosystem and Biodiversity Protection◎Contribution to Society◎Rural Revitalization◎Due Diligence◎Communications with Stakeholders◎ESG Governance

◎Energy Utilization◎Response to Climate Change◎Innovation-Driven Growth◎Product and Service Safety and Quality◎Supply Chain Security

◎Environmental Compliance

Management

◎Water Resource Utilization◎Pollutant Emissions◎Waste Disposal

◎Protection of Employees'Legal Rights and Interests

◎Training and development◎Occupational Health and

Safety

◎Data Security andPrivacy Protection◎Protection ofShareholders’ Rights andInterests◎Corporate GovernanceCompliance◎Compliance and RiskControl◎Anti-commercial Briberyand Anti-corruption

Environmental

◎ Environmental ComplianceManagement◎ Energy Utilization◎ Response to Climate Change◎ Water Resource Utilization

◎ Pollutant Emissions◎ Waste Disposal◎ Ecosystem and Biodiversity

Protection

Social

◎ Protection of Employees'

Legal Rights and Interests◎ Training and development◎ Occupational Health andSafety

◎ Innovation-Driven Growth◎ Product and Service Safe-

ty and Quality

◎ Data Security and PrivacyProtection◎ Supply Chain Security◎ Contribution to Society◎ Rural Revitalization

CorporateGovernance

◎ Protection of Sharehold-

ers’ Rights and Interests

◎ Corporate Governance

Compliance◎ Compliance and Risk Con-trol

◎ Anti-commercial Briberyand Anti-corruption

◎ Due Diligence◎ Communications with Stake-

holders◎ ESG Governance

Message fromChairman

Sustainable Development

Governance

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Appendix

WCON remains steadfastly committed to fulllinglegal obligations and ensuring regulatory com-pliance in corporate governance. It continuouslyimproves its corporate governance structure,strengthens internal control and risk managementsystems, protects shareholders' legitimate rightsand interests, and strictly upholds business ethics.These efforts solidify the Company’s developmentfoundation and safeguard its comprehensive andstable operations.

Strengthen Complianceto Solidify Governance

◎Standardization of Corporate Governance◎Protection of Shareholders' Rights and Interests◎Compliance and Risk Control◎Anti-commercial Bribery and Anti-corruption◎Data Security and Privacy Protection

Responded Topics

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Appendix

The convening, holding, and voting procedures of the Company’s Shareholders’ Meeting comply with the re-quirements of theCompany Law,Articles of Association, andRules of Procedure for Shareholders’ Meeting.Professional lawyers were retained to witness the proceedings on-site and issue legal opinions on their le-gality. The Shareholders’ Meeting adopts on-site and online voting methods to provide convenient conditionsfor shareholders to participate in the meeting. Separate vote tabulation is carried out for material mattersaffecting the interests of minority shareholders to ensure that all shareholders, particularly minority share-holders, can fully exercise their rights and safeguard the legitimate rights and interests of shareholders.

Shareholders’ Meeting

Standardize Governance for Stable Operation

Governance through the Shareholders’ Meeting, Board of Directors, and Board of Supervisors

During the Reporting Period, the Company strictly adhered to laws and regulations, including theCompanyLaw, Securities Law, andGovernance Code for Listed Companies. It revised key governance documents suchas theArticles of Association, Related Party Transaction Decision-Making System, andInformation DisclosureManagement System, continuously improving corporate governance frameworks to standardize operationsfurther and enhance governance standards.The Company has established a corporate governance structure with a clear division of responsibilitiesamong the Shareholders’ Meeting, Board of Directors, Board of Supervisors, and the Management, ensuringeach entity fullls its distinct roles while maintaining checks and balances. This structure enables scienticdecision-making and standardized operations by implementing scientic and practical governance frame-works and operational processes, maximizing the roles of governance bodies in strategic decision-making,operational management, and oversight to safeguard stable and efcient corporate operations.

The Board of Directors convened

meetings, deliberated and approved

items;The Board of Supervisors convened

meetings, deliberated and approved

items, of which,

items were approved by the Board of Supervisors and

items were submitted to the Share-holders’ Meeting for approval.

The Shareholders’ Meeting convened

meetings, deliberated and approved

items;

Board of SupervisorsThe Company’s supervisors strictly adhere to theArticles ofAssociationandRules of Procedure of the Supervisory Board,attend the meetings of the Board of Supervisors, partici-pate in the Board of Directors and Shareholders’ Meeting asnon-voting observers, review periodic reports prepared bythe Board of Directors, and issue written verication opinions.They effectively oversee the Company’s daily operations, ma-terial matters, nancial status, and the legality and compli-ance of directors’ and senior management’s duties, ensuringstandardized corporate operations.

During the Reporting Period

Board of DirectorsThe Company has formulated theRules of Procedure for the Board of Directors to strictly regulate meeting proce-dures and decision-making processes, ensuring directors and the Board of Directors fulll their duties effectively.The Board of Directors consists meets the requirements for board size and composition. The Board of Directorshas established four specialized committees: the Nomination Committee, Compensation and Appraisal Commit-tee, Strategy Committee, and Audit Committee, each with adopted rules of procedure. Each committee comprisesat least one independent director, which enhances the operational capacity and professional expertise of theBoard of Directors while ensuring its scientic and standardized decision-making processes.

Business managementAccountingEngineeringProfessionaldistributionof directors

the Company held

special committee meetingsto deliberate

proposals.The Board of Directors consists of

directors,including

independent directors.

During the Reporting Period

the Board of Supervisors comprised

members, including

employeerepresentative supervisor.

During the Reporting Period

Board of DirectorsShareholders’ Meeting

Board of Supervisors

Nomination Committee

Compensation and Appraisal

Committee

Strategy CommitteeAudit Committee

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Appendix

Collect internal and external initial information related to corporate risks and riskmanagement based on the analysis of risk types, including historical and predictivedata. Among them, the risk types include but are not limited to strategic, nancial,market, operational, and legal compliance risks.RiskIdentication

Monitor and analyze various factors in the Company's operational process to iden-tify potential risks in advance and trigger timely warnings.RiskEarly Warning

Each functional department conducts regular self-assessments and inspectionsto implement the risk management solutions, while the Internal Audit Departmentprovides oversight and evaluation.

RiskControlling

Through continuously monitoring and tracking the identied risks, the Companymaintains real-time awareness of evolving risk proles to enable timely adaptationand implementation of responsive measures for effective risk control.◎ Clarify the specic risk indicators of different risk types;◎ Establish a risk monitoring system and improve the efciency and accuracy of

risk tracking through the automatic collection and analysis of real-time data;◎ Regularly conduct a comprehensive assessment of risks, analyze the develop-ment trends of risks, and evaluate the effectiveness of the measures taken by theenterprise to deal with risks to adjust strategies promptly.

RiskTracking

the Company made a total tax paymentof RMB26,883,155.63.

In accordance with theCompany LawandArticles of Association, the Company has formulated theRemu-neration Management System for Directors, Supervisors, and Senior Managers, establishing a remunerationand performance evaluation framework for directors, supervisors, and senior executives. This system aimsto rationally determine their compensation levels and payment structures, ensure active and effective dis-charge of responsibilities and duties, and promote the Company’s healthy, sustainable, and stable develop-ment.Based on operational performance during the Reporting Period, the Company formulated and deliberated theRemuneration Plan for Directors, Supervisors, and Senior Managers in 2024. It is comprehensively evaluatedand conrmed according to their specic job positions in the Company, in accordance with the remunerationmanagement regulations and performance assessment. None of the Company's independent directors holdother positions in the Company, and their allowance standards are implemented in accordance with theresolution of the Company's second extraordinary shareholders’meeting in 2022, that is, RMB 120,000/year(including tax).The remuneration of the Company's non-independent

directors, supervisors, and senior managers

basic salaryyear-end bonus

Remuneration Management of Directors, Supervisors and Ocers

Risk Management and Internal Control

The Company places signicant emphasis on risk management, continuously establishing a comprehensiverisk management framework that integrates risk identification into corporate decision-making processes,strengthens risk controls, and enhances risk mitigation capabilities to provide a solid foundation for sustaina-ble development.The Company has established a dedicated risk management function that periodically inspects and assessesthe implementation and effectiveness of risk management practices across departments and business units.It evaluates cross-functional risk management solutions, provides recommendations for adjustments or im-provements, and issues evaluation and recommendation reports. The Company’s Internal Audit Departmentconducts at least one annual supervisory evaluation of risk management practices and their effectivenessacross all departments, preparing and submitting evaluation reports to the Audit Committee for oversight.

Risk Management

To standardize the Company's internal control, reasonably prevent and effectively control the risks in theCompany's operations and management, and promote its sustainable development, the Company hasformulated theInternal Control Management Systemand established a long-term mechanism for internalcontrol evaluation. During the Reporting Period, under the leadership of the Board's Audit Committee, theCompany's Audit Department actively carried out audit oversight in accordance with the Company's 2024 in-ternal audit work plan, completing the 2024 annual internal audit work. No material irregularities were identi-ed upon review.

Internal Control

The Company strictly complies with relevant tax lawsand regulations, implementing rigorous manage-ment of all tax-related operations. The Company'sFinance Department is responsible for tax lings, taxaccounting, and tax planning activities, supported bya dedicated General Ledger Tax position that handlesnational and local tax declarations, duty drawbacklings, monitors changes in tax policies, and mitigatesenterprise tax-related risks.

Tax Management

During the Reporting Period

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Enhance Investor Relations to Protect Shareholders' Interests

After a comprehensive evaluationby the Shenzhen Stock Exchange,the Company received a ratingof A for its information disclosurework from 2023 to 2024.

32.703,663.12

The proportion of Net ProtAttributable to Shareholders

of the Parent Company(%)Total Cash Distribution(Including Tax)(In 10,000 yuan)Cash Dividend PerShare (Including Tax)(yuan/share)

2022 Annual

0.50

25.06

3,267.332023 Annual

0.30

64.065,475.030.50

2024 Annual

Note 1: It includes the actual dividend distribution in the rst half of 2024 and the total amount of the proposed dividend distribution for the year 2024

Dividends in the Past Three Years

To standardize the management of investor relations, the Company has formulated theInvestor Relations Management Systemand theMeasures forthe Management of Media Interviews and Investor Research Engagement Receptionin accordance with the requirements of laws and regulations suchas theCompany Law, theSecurities Law, and theGuidelines on Investor Relations Management of Listed Companies. The Company adheres to the prin-ciples of full information disclosure, compliant information disclosure, equal opportunities for investors, integrity and trustworthiness, high efciency andlow consumption, interactive communication, etc. It communicates with investors through multiple channels and at various levels to objectively, truthful-ly, accurately, and completely introduce and reect the company's actual situation, enhance investors' understanding of the Company and value recog-nition, and effectively safeguard investors' right to know.

Web ConferencesShareholders’ MeetingPerformance BriengsCompany's WebsiteOne-on-one CommunicationsCompany AnnouncementTeleconferencesInteractive Easy PlatformEmailTelephone ConsultationsInvestor Reception Days

Investor Relations Management

The Company strictly complies with the laws and regulations, such as theAdministrative Measures for Dis-closure of Information by Listed Companies, and formulates theInformation Disclosure Management System

to standardize the information disclosure behaviors of the Company and relevant information disclosureobligors and ensure that the information disclosure is true, accurate, complete and timely. Meanwhile, theCompany has formulated an Insider Registration System to strengthen the condentiality of inside informa-tion and maintain the principle of fairness in information disclosure, which can ensure that the processes oftransmission, review, and disclosure of undisclosed information are legal and compliant to prevent insidertrading.During the Reporting Period, the Company further revised theInformation Disclosure Management System

and continuously improved the transparency and quality of information disclosure. Beyond mandatory disclo-sures, the Company proactively and timely discloses all information that may materially impact stakeholders’decisions, ensuring equal access to information for all shareholders.

Information Disclosure

While paying attention to its development, the Company attaches great importance to shareholder returnsand actively formulates and effectively implements the prot distribution plans. In line with the guidanceof the China Securities Regulatory Commission to encourage enterprises to distribute cash dividends andprovide investors with stable and reasonable returns, the Company implemented the 2023 prot distributionplan. To further increase the frequency of dividends and enhance the level of investor returns, the Companypromoted and implemented the semi-annual equity distribution plan for 2024.

Dividend Return

the Company held

performance briengs in total, partic-ipated in

reception day event, received investors' on-siteresearch engagement activities many times,Replied to over

investor calls and emails;Published

records of in-vestor relations activity and answered

questions onthe Interactive Easy platform with a reply rate of100%.

During the Reporting Period

announcements were disclosed, including

periodicreports and

temporary announcements.

penalties im-posed for violations related to information disclosure.

During the Reporting Period

Investorcommunication

channels

A level

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Reinforce Compliance for Business Ethics

The Company always adheres to honest operation and establishes a sound compliance management system. To effectively prevent and control the compliance risks and improve the Company's compliance-driven operationalmanagement capabilities, the Company has formulated theInternal Control Management Systemand established a dedicated Compliance Management Department according to the requirements of laws and regulationssuch as theCompany Law.The Company’s principal responsible person serves as the primary driver for advancing the rule of law and bears ultimate accountability for compliance. The Compliance Management Departmentleads and coordinates compliance-related initiatives, while functional departments implement compliance risk assessments, reviews, and other measures in line with their respective functions.The Company continuously strengthens its compliance management system by standardizing the compliance operation mechanism, cultivating a compliance culture, enhancing the information system's control, reinforcing su-pervision and accountability, raising overall compliance awareness, and ensuring lawful and compliant business operations.

Standardize the Operation Mechanism

◎ Establish a compliance risk identication,

assessment, and early warning mechanism◎ Embed compliance review as a necessaryprocedure in the operation and manage-ment process

◎ Each functional department establishes arectication mechanism for non-complianceissues◎ Establish and improve a coordinated op-

eration mechanism for compliance manage-ment, legal affairs management, internalcontrol, risk management, etc., in combina-tion with the actual situation◎ Regularly carry out an effectivenessevaluation of the compliance managementsystem

◎ Incorporate compliance management into

the annual special learning topic

◎ Establish a normalized compliance train-ing mechanism◎ Strengthen the compliance publicity andeducation, promptly release compliancemanuals, and organize the signing of com-pliance commitments

◎ Incorporate the compliance regulations,

typical cases, compliance training, recordsof non-compliant behaviors, etc., into theinformation system◎ Regularly review the business processesto identify the compliance risk points andstrengthen compliance reviews at criticaljunctures◎ Realize the interconnection, data sharing,and common use between the compliancemanagement information system and otherinformation systems for nance, investment,and procurement

The Company's Audit Department and Se-curities Department monitor the implemen-tation of compliance requirements, investi-gate non-compliant behaviors, and pursueaccountability in accordance with relevantregulations and within their respective au-thorities.

Compliance Management

Cultivate a Compliance CultureStrengthen Information ControlStrengthen Supervision and Accountability

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Appendix

The Company and its afliated companies are committed to responsible business behaviors and strictly abide by relevant laws, regulations, and business ethics. The Integrity and Anti-bribery Policyhas been formulated torequire all employees and external third parties engaged in business with the Company to comply with the Policy while expressly prohibiting all forms of bribery and corrupt practices. The Company establishes an audit teamresponsible for formulating and implementing the Company's anti-bribery policy and supervising and facilitating the execution of relevant compliance initiatives.The Company proactively adopts and implements control measures to prevent and detect bribery and corrupt practices, promoting clean management.During the reporting period, no litigation events occurred as a result ofcommercial bribery or corruption.

To ensure the effective implementation of the anti-bribery management system, the Company carries out anti-bribery-related training programs. It integrates the Integrity and Anti-bribery Policy into the new employee on-boarding so that employees can understand the anti-corruption laws, requirements, and obligations of the Company's anti-bribery management. By aligning integrity culture with corporate governance and job functions, theCompany strives to foster an environment of ethical business conduct. During the Reporting Period, the Company held 2 special training sessions on theIntegrity and Anti-bribery Policy for employees in key and sensitive posi-tions. The trainees encompassed all the staff at middle and senior management levels.

◎ Sign theAgreement for Integrity and Self-discipline of Employeeswith employees and theIntegrity Agreement with business partners to institutionalize the prevention of corrupt practices;

◎ Interview employees in key departments and sensitive executives, including middle-level managers and senior leaders, and conduct questionnaires on corporate integrity, ethics, and commercial bribery for employees in key departments at different levels to gain in-depth insights into employees’ genuine perspectives and actual situations and strictly control and prevent any potential conicts of interest;

◎ Conduct self-examinations by irregularly reviewing relevant contracts, reimbursement vouchers, and other documentation and analyzing the business data of key positions and sensitive processes;◎ Standardize the management of the gift acceptance and entertainment expenses to prevent commercial bribery through improper gifts and entertainment;◎ Implement the job rotation system and the nepotism avoidance policies for key positions to prevent the abuse of power and commercial bribery.

Anti-Commercial Bribery and Anti-Corruption

Total duration of anti-commercial bribery and anti-corruption trainingprovided to directors:

hoursprovided to the Management:

hoursprovided to employees:

hours

During the Reporting Period

Anti-Commercial Anti-Commercial

BriberyBribery

Governance

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To standardize marketing management and prevent unfair competition behaviors, the Company hasformulated systems such as theAnti-monopoly Compliance Management Systemand theMeasuresfor Management of Market and Competition Analysisin accordance with theAnti-Monopoly Law ofthe People's Republic of China and the Anti-monopoly Compliance Guide for Operators, explicitly pro-hibiting unfair practices such as false advertising, maliciously slandering competitors, and stealingtrade secrets in marketing. By doing so, the Company continuously enhances its ability to prevent,control, and deal with anti-monopoly compliance risks and solidies the foundation for law-abidingand compliant operations. The Company adheres to the principles of problem orientation, practicalityand high efciency, and comprehensive coverage in anti-monopoly compliance management, estab-lishing a continuous supervision mechanism to monitor the market dynamics, industry competitionconditions, changes in laws and regulations, and the Company's internal practices. It periodicallyreviews the effectiveness of risk management measures and adjusts strategies based on the actualsituation to ensure ongoing compliance with anti-monopoly and anti-unfair competition requirements.The Company regularly organizes anti-unfair competition training for marketing personnel, includingrelevant laws and regulations, internal corporate rules, and case studies to strengthen awareness offair competition. Anti-unfair competition compliance is integrated into the performance assessment,with the results directly linked to employees' salary adjustments, bonus distributions, promotions, andjob adjustments. Employees demonstrating excellence in anti-unfair competition will receive commen-dations and incentives, and those who violate the regulations will be punished proportionately to theseverity of the offense.No incidents of unfair competition took place during the reporting period.The Company establishes a unique whistleblowing channel through which reporting information canbe received. Any relevant party aware of any actual or suspected violations of theIntegrity and An-ti-bribery Policymay report the relevant incidents according to the established process. The AuditTeam will initiate appropriate actions for alleged misconduct, improper behavior, or fraud. The Compa-ny supports both named and anonymous whistleblowing, rmly safeguarding whistleblowers’ safetyand interests from any negative impacts while ensuring the condentiality of reported information isstrictly protected. Rewards are provided to individuals whose recommendations are implemented orwhose reports are veried to be true.

Channels

The Audit Team receives the whis-tleblowing information and con-ducts a preliminary verication;Abnormalities in fund flows areidentied during the internal auditor nancial inspection;

Evaluate the impact caused bythe incident and impose appro-priate disciplinary actions on thepersons involved based on theinvestigation ndings and impactassessments. In cases involvingillegal or criminal acts, the caseshall be referred to the judicialauthorities for handling.

The Audit Team expeditiously con-ducts information gathering andother related tasks, launching afurther in-depth investigation intoincidents with profound integrityor bribery problems identified inthe preliminary investigation. Ifnecessary, external professionalinstitutions are enlisted to assistin the investigation;

Occurrence of theIncidents and Receipt ofWhistleblowing

Incident Investigation

Evaluation and

Handling

Whistleblowing Handling Process

Audit Department, WCON Electronics (Guang-dong) Co., Ltd., No. 15 Wenming Road, Dan-ing, Humen Town, Dongguan, Guangdong

Written or in-person reportsHrdg02@wcon.comEmail

Clean WCONWeChat Public Account

0769-85358920-6075Phone

Anti-Unfair Competition

Whistleblowing and Whistleblower Protection

Anti-Unfair CompetitionAnti-Unfair Competition

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Prioritize Data Security to Prevent Privacy Breach

The Company regards data security as an essential cornerstone of its development. It adopts a multi-pronged ap-proach covering technology, management, and personnel awareness to construct a comprehensive, multi-layeredprotection system. This effectively guarantees the security of corporate data assets, maintains the corporate repu-tation and customer trust, and lays a solid foundation for the Company's sustainable development.The Company regards data security as an essential cornerstone of its development, upholding the datasecurity management philosophy of “prevention orientation, comprehensive governance, security andcontrollability, and continuous improvement.” A multifaceted approach covering technology, management,and personnel awareness constructs a comprehensive, multi-layered protective system to strictly safe-guard the absolute security of internal core business data, operational information, and customer privacy.The Company continuously optimizes and improves its security management strategies to adapt to thechallenges posed by new technologies and emerging business models. During the reporting period, no inci-dents of data security breaches or customer privacy breaches were reported at the Company.

Data CenterTipray Green Shield Encryption SystemSangfor Firewall

◎ Adopt the Tipray Green Shield Encryption System to encrypt data;◎ Implement a multi-factor authentication mechanism and role-based access controlpermissions.

Establish a DataSecurity ProtectionPlatform

◎ Deploy rewalls and intrusion detection/prevention systems;◎ Provide security development training for various business applications developed

by the Company; deploy web application rewalls for applications.Implement

System SecurityProtection

◎ The data center is equipped with physical protection facilities such as automatic alarm

systems and surveillance cameras; an environmental monitoring system is deployed to

ensure that the equipment operates in suitable environmental conditions;

◎ Establish a secure network architecture and deploy server security protection software.Build a DataCenter

◎Regularly conduct health checks on servers, storage devices, and network equipment

that store key data;

◎ Adopt redundant design for key data hardware equipment;

◎Regularly test data backup devices and check the integrity and recoverability of backup data.Periodically TestCritical Data Hardware

Equipment

◎ Regularly conduct functional and performance tests on key data systems;

◎ Establish a security vulnerability management mechanism to track and manage

identied security vulnerabilities;

◎ Regularly conduct security vulnerability tests.PeriodicallyTest Key Data

Systems

Management Measures

The Company strictly follows laws and regulations such as theNetwork Security Law of the People's Re-public of China, theData Security Law of the People's Republic of China, and thePersonal Information Pro-tection Law of the People's Republic of China, formulating theInformation Security Protection Systemtostandardize the scientic and secure data management strategies and processes. It implements effectivedata security technologies and management measures to safeguard the condentiality, availability, andintegrity of data during the processes of collection, transmission, exchange, processing, and storage.The Company establishes an IT Department led by an information security ofcer and supported by opera-tions and maintenance personnel. It is responsible for the daily security management of corporate systemsand data to conduct information security risk assessments, implement security projects, and organize con-tingency drills. Through well-dened institutional frameworks and organizational structures, the Companyensures clear functional demarcation and effective implementation of data security management. In orderto strengthen the information security expertise of relevant personnel, the Company organizes specializedtraining programs on relevant knowledge of information data security and continuously improves theirprofessional capabilities.

Governance of Data Security

Data Security Protection

The Company conducted

information data securitytraining sessions,investing RMB97,000 in data security.

During the Reporting Period

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The Company attaches great importance to customer information security, protects customer information assets, maintains customer privacy, avoids information security incidents, and ensures the security and condentialityof customer information.

Control File Access Permissions

Control the permissions of the le directories storing user data in-formation, set different permission categories, and allocate themaccording to business needs.

File Access AuditRecord the operation activities related to user data and the cor-responding users. The audit system will trigger alerts and recordnon-compliant operations to ensure the security of user le directo-ries.

Encrypt Customer Data

Adopt an automatic encryption strategy to save customer data andset the control level for decryption permissions. If the permissionlevel does not match, the le's content will remain encrypted andunreadable after opening it.

ProtectiveMeasures

Customer Privacy Protection

Governance

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WCON has always adhered to the concept of greendevelopment, proactively responded to the challengesof climate change, continuously improved the level ofenvironmental management, strengthened the pre-vention and control of pollution and waste, improvedthe efciency of energy and resource utilization, and iscommitted to building a green and low-carbon modernindustrial park, promoting the green and sustainabledevelopment of the enterprise, and making contribu-tions to the national “dual carbon” goal.

Low-Carbon Operationsfor a Green World

◎Response to Climate Change◎Environmental Compliance Management◎Pollutant Emissions◎Waste Treatment◎Energy Utilization◎Water Resource Utilization

Responded Topics

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Low-Carbon Initiatives to Address Climate ChangeClimate change is one of today's most signicant global risks, threatening human health and enterprises' long-term sustainable development. To implement the national “dual-carbon” policy, by drawing on the recommenda-tions of the Task Force on Climate-related Financial Disclosures (TCFD), the Company manages climate-related risks and opportunities through four dimension, namely governance structure, risk and opportunity identication,risk management, and metrics and targets.

General Manager’s Ofce

Environmental and Climate Change Management Committee

General Manager

Member ofthe HumanResourcesDepartment

Member ofMarketing

Center

Member ofR&D Center

Member ofthe QualityManagementDepartment

Member of theManufacturing Department

Member ofHardwareand PlasticDepartment

Member

of theProductionPlanningDepartment

Memberof ProjectManagementDepartment

Member of theManufacturingEngineeringDepartment

The Company formulates theControl Procedure for Combating Climate Change to standardize the management and response measures of the enterprise in addressing the environmental and climate variability issues. It pro-gressively constructs a climate governance system to tackle challenges posed by climate change proactively. The General Manager's Ofce of the Company is responsible for formulating climate strategies and objectives toensure the proactive alignment of overall corporate development strategies with climate change trends. The Environmental and Climate Change Management Committee is responsible for the specic formulation of climatepolicies, risk assessment, and supervision of implementation to ensure the effective implementation of climate strategies. The Management integrates climate strategies into daily operations and supervises the implementa-tion of climate adaptation measures across all business units. Each business unit formulates and implements specic climate adaptation measures according to its characteristics and business scope to ensure that the enter-prise fully considers climate change factors in daily operations and achieves sustainable development.To improve climate variability governance, the Company established positions of Carbon Emission Administrators and Verication Process Inspectors, enforcing strict requirements for personnel's years of professional experi-ence, general knowledge and skill prociency, and specialized knowledge and expertise.

Climate Change Governance

The Company systematically evaluates the array of risks and op-portunities confronting the Company, classifying them into physicalrisks, transition risks, and opportunities. Drawing on national laws andregulations, policy directives, domestic and international sustainabledevelopment trends, and organizational context, we dene and de-scribe the risks and opportunities climate change precipitates. Basedon identified risks and opportunities, the Company analyzes theirlikelihood and severity in light of daily operational activities, furtherevaluates potential nancial impacts on the Company, and formulatescorresponding management and response measures to address cli-mate change while seizing opportunities proactively.

Risk and Opportunity Identication Process

During the Reporting Period, the Companyorganized

knowledge training sessionsfor carbon management personnel and con-ducted question-based assessments on thetrainees. The overall assessment results wereall qualied

Governance

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RiskType

RiskDescription

Description

Risk Analysis

Explanation of Potential

Financial Impact

Management MeasuresSeverityFrequency

Transition

Risks

Market

Risks

Increase in Raw Material Costs52

Factors such as climate changemay lead to an increase in rawmaterial prices and purchasecosts.

◎Screen alternative suppliers to reasonably control the purchase costs.◎Promote suppliers' transition towards energy conservation and emission reductionthrough supplier communication, implementation programs, and investigation.◎Establish a low-carbon monitoring mechanism for upstream raw materials.◎Accelerate the green transformation and introduce new technologies and materials.

Change in Consumer Behavior52

The change in consumer pref-erences leads to a decreasein the demand for goods andservices, a reduction in operat-ing income, and an increase inoperating costs.

◎Advocate for using clean energy, building rooftop photovoltaics, purchasing green elec-tricity and certicates, etc., to accelerate the green transformation.◎Introduce new technologies and materials.◎Establish a low-carbon monitoring mechanism for upstream raw materials.

Policy andRegulatory

Risks

Carbon Emission Control Policy52

Policy changes lead to thewrite-off, impairment, or earlyretirement of existing assets;failure to promptly respond tocontrol policy may lead to ille-gal nes and increased compli-ance operation costs.

◎Pay attention to policy changes in various regions and adjust based on the situationand customer needs.◎Use clean energy such as rooftop photovoltaics and purchase green electricity to re-place traditional fossil energy and promote the transformation of the energy structure.

◎Set the objectives of energy conservation and consumption reduction, promote energyconservation and emission reduction, and improve energy use efciency from the man-agement and technical levels.◎Analyze the future change trends of energy efciency standards to ensure that the

Company's production equipment and processes meet the requirements of new stand-ards.The government, socialorganizations, and residents donot accept excessive pollution

emissions

The pollution emissions maylead to illegal nes and causea negative reputation.

◎The EHS management plan shall be strictly implemented to ensure that the company'swastewater, exhaust gas, and perimeter noise emissions meet the standards, with atleast compliance monitoring once a year.

Climate Change Strategy

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RiskType

RiskDescription

Description

Risk Analysis

Explanation of Potential

Financial Impact

Management MeasuresSeverityFrequency

TransitionRisks

Policy andRegulatoryRisks

There is a lack of proper identi-cation, collection, and publicityof applicable EHS laws and reg-ulations. Moreover, the environ-mental factors and hazards re-lated to the Company's internalactivities are not clearly dened,and some employees have aweak sense of compliance withthe law

Failure to promptly identify andrespond to policy control may leadto illegal nes; inadequate internalrisk identification increases oper-ating costs.

◎Strengthen the identication, collection, and periodic updates of applicable EHS laws

and regulations, with key provisions incorporated into training programs or institutional-ized in company policies.

TechnologyRisks

Technology Substitution Risk52

Increase in R&D expendituresand procurement costs.

◎Pay close attention to green innovations such as clean energy and energy-saving tech-nologies, and evaluate whether the enterprise can adapt to technological changes.

◎Establish diversied relationships with technology suppliers to mitigate reliance on asingle technology supplier and minimize the risks associated with technology transition.

ReputationRisks

Increased Concerns or NegativeFeedback from Stakeholders

The decrease in customers' trustin the Company leads to a declinein product demand and a reduc-tion in revenue.

◎Publicly disclose policies and information related to climate change to ensure all stake-holders can obtain relevant information and supervise and evaluate the Company's per-formance.◎Evaluate the possible impact of climate change on the enterprise's brand image andcustomer loyalty and formulate response strategies for maintaining and enhancing thebrand reputation.◎Conduct a customer satisfaction survey in the form of a questionnaire once a year andsummarize the customer satisfaction survey results to let relevant departments take cor-responding corrective and preventive measures.

PhysicalRisks

Climate Risks

Extraordinary Climate Emergen-cies (such as Typhoons, Rain-storms,Floods, Earthquakes, etc.)

Sudden weather causes damageto infrastructure and equipment,leading to an increase in operatingcosts; it may affect the productionschedule and cause a decrease inoperating income.

◎ Formulate theControl Procedure for Emergency Response.◎ Provide training programs for employees on such emergency response plans.

Remarks：1、Severity: 1) Extremely Severe, 2) Severe, 3) Signicant, 4) Moderate, 5) Minor 2、Frequency: 1) Rare, 2) Unlikely, 3) Occasionally, 4) Likely, 5) Frequent

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DescriptionOpportunity ContentManagement MeasuresFinancial ManagementSufcient Funds for the Company's EHS Management System

◎Establish a special fund for EHS management to ensure the source of funds for EHS man-

agement investment.Resource EfciencyRecycling Technology

◎Optimize the design of green products and reduce the use of materials from the source.

◎Advocate the recycling of materials and the transformation of waste.

◎Implement water recycling practices and establish a reclaimed water reuse system.

Energy SourceLow-emission Energy Sources

◎Build rooftop photovoltaics, purchase green electricity, certicates, etc., to accelerate the

green transformation.

◎Set the objectives of energy conservation and consumption reduction, promote energy con-

servation and emission reduction, and improve energy use efciency from the management

and technical levels.

◎Accelerate the construction of the energy management system to create a green manufac-

turing system.Compliance Provisions

The Company has not received any complaints or penalties from

government authorities or surrounding residents.

◎Comply more strictly with regulatory requirements.

Requirements and Expectationsof Stakeholders

Some customers require the Company to establish an ESG manage-

ment system.

◎Continuously implement the ESG management system and accept a third-party institution's

certication audit to ensure the ESG certicate's effectiveness.The audit institution requires the Company to meet the requirementsof the ESG management system and continuously improve the ESG

management system.

◎Accept the review of the audit institution and promptly improve and track any identied

problems. Make the ESG management system operate effectively.

In alignment with the national initiative for a green, low-carbon circular economy, the Company has proactively advanced energy conservation and carbon reduction by formulating theEnterprise Low-Carbon Action Planduring the Reporting Period. The Company has enhanced environmental and energy management capabilities through continuous investment in green resources for decarbonization efforts. We are fully managing its carbonemission pathways with the ambition to reduce carbon emissions by 35% by 2035 and achieve a net-zero carbon factory within the next decade.

Reduce the proportion of green-house gas emissions: carbon emis-sions will be reduced by 5% in 2024and 35% in 2035.

Promote energy-saving and environ-mental protection technologies andimprove the overall environmentalprotection level of the enterprise.Reduce dependence on traditionalenergy, proactive utilization of re-newable, clean energy, such as so-lar, wind, and air, is recommended.Improve energy utilization efciencyand ensure that the proportion ofcarbon emissions relative to outputduring production continues to de-crease.

Low-carbon Goals

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The Company establishes a data monitoring system to conduct real-time comprehensive monitoring of greenhouse gas(“GHG”) emissions, energy consumption during production, and wastewater and exhaust gas emissions.It regularly evaluates the emission reduction work and promptly discovers and solves problems. According to the evaluation results, the Company summarizes and analyzes the experience of emission reduction, promptly ad-justs and optimizes the emission reduction plan, learns from the experience of advanced enterprises, and introduces new emission reduction technologies and concepts.

Main Production and Operation Activities of Carbon Emissions

CategorySubcategoriesEmission Source

Corresponding Activities/

Facilities

Forms of Emission SourcePotential Types of GHG

Category 1(Direct GHG Emissions)

Direct Emissions GasolineCompany carsTransportationCO

, CH

, N

Fugitive Emission of

GHG

SewageSeptic TanksFugitiveCH

Category 2(Indirect GHG Emissions from

Energy)

Indirect Emissions from Purchased

Electricity

Electric power

Energy Consumption ofEquipment and Lighting

EnergyCO

Statistical Explanation: Scope 1 GHG emissions are calculated based on default values of common fossil fuel char-acteristic parameters issued by the National Development and Reform Commission of the People's Republic of Chi-na; Scope 2 GHG emissions are calculated based on average carbon dioxide emission factors for China's regionalpower grids issued by the National Development and Reform Commission of the People's Republic of China.

Carbon Asset Management

To standardize the Company's carbon asset trading behavior, improve the transparency and credibility ofcarbon asset trading, and promote the healthy development of the carbon market, the Company formulatestheProcedure for Carbon Asset Trading Management, establishes a Carbon Finance Department to manageand carry out the carbon asset trading activities, the supervision department supervises and inspects thecompliance and fairness of the Company's carbon asset trading, and the environmental protection depart-ment supervises the situation of carbon assets and carries out emission reduction work. The Company strictlystipulates the processes and requirements, supervision and review, risk management, information disclosure,and penalties for violations of carbon asset trading. It claries that the Carbon Finance Department shallstrengthen the early warning, monitoring, and prevention of carbon asset trading risks. The carbon assettrading institution shall establish and improve the internal control system and promptly report the tradinginformation to the Carbon Finance Department.

Greenhouse Gas Management

During the Reporting Period

Total GHG Emission4,336.63tCO

eDirect GHG Emissions (Scope 1)

73.93

tCO

eIndirect GHG Emissions (Scope 2)4,262.71tCO

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Specic ActionsLow-carbon Measures

◎Build dust-free workshops and CNAS laboratories that can meet theGeneral Requirements for the Competence of Testing and Calibration Laboratories of the ISO/IEC17025:2017 Laboratory Management System;◎ Solar photovoltaic and energy storage charging canopy; solar light guiding system installed in the basement; solar-powered streetlights; enclosed cooling tower;heat-insulating lm applied to factory and dormitory windows; and double-glazed windows installed.Optimize Production Pro-cesses, Promote Clean Tech-nologies and Energy-saving

EquipmentImplement Low-carbon-re-lated Systems to ImproveEnergy Eciency Manage-

ment

◎Currently implement the ISO14064-1:2018 carbon verication system. It is expected to complete the third-party certication in Q4 of 2025◎Strengthen energy management and establish an energy informatization monitoring and management system

Promote Clean Energy

◎ Encourage employees to use public transportation to reduce vehicle exhaust emissions.◎ Build solar power generation facilities to provide clean energy for the Company's electricity consumption.

Promote Recycling and

Reuse

◎Collect and utilize the condensed water of air conditioners◎Reuse the material reels

◎ Recycle the material packaging PE bags/cartons, etc.

Green Oce

◎Set up waste classication and recycling facilities con-

venient for employees◎Save electricity for ofce equipment and air conditioners

◎ Reuse ofce supplies such as le bags and data bags◎ Use Lark and other systems to implement a paper-

less ofce

◎Advocate water conservation

Promote the Concept ofEnergy Conservation andEnvironmental Protection

◎Conduct publicity and education on energy conservation and environmental protection knowledge to improve employees' and the public's awareness of energy con-

servation and environmental protection.◎Cooperate with relevant departments to strengthen the publicity of environmental protection policies and supervise compliance.

Implement Carbon Reduction Initiatives

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Strengthen Pollution ControlThe Company adheres to the EHS management policy of “complying with environmental regulations, committing to pollution prevention and control; making rational use of resources, manufacturing green products; improvingenvironmental protection awareness, continuously improving the environment; caring for employees' health and attaching importance to work safety,” and strictly complies with the requirements of national laws and regula-tions such as theEnvironmental Protection Law of the People's Republic of Chinaand theEnvironmental Protection Tax Law of the People's Republic of Chinato carry out the environmental management. During the ReportingPeriod, the Company reported zero environmental incidents or zero violations of laws and regulations concerning environmental protection.

ISO 14001:2015 Certication

Emergency Planfor EnvironmentalManagement

EcologicalPollutionAccidents

Leakage ofToxic andHazardousSubstances

Other Incidentsthat may causeEnvironmental Pollution

HazardousChemicalAccidents

The Company establishes an EHS management system based on the ISO 14001:2015 and ISO45001:2018 standards, clarifies each department's environmental responsibilities, and formulatesand implements the Environmental/Occupational Health and Safety Manual. At least once annually,internal audits and management reviews are conducted to identify corrective and preventive actionsfor continuous improvement. Currently, the Company has passed the ISO 14001 environmental man-agement system certication.

Environmental Management System

The Company formulates theControl Procedures for Identication and Evaluation of Environmental Fac-tors, identifying and determining the environmental factors that may impact the Company's activities,products, and services to effectively control the critical ecological impact factors. The company estab-lished an ISO 14001 Implementation Committee to evaluate environmental and signicant environmentalfactors. It engages a third-party institution to assess its construction projects' environmental impact.

Management of Environmental Risks

To effectively prevent and respond to sudden environmental incidents andreduce the harm caused by incidents to the environment and society, the Com-pany formulates the EmergencyPlan for Environmental Management accord-ing to relevant laws and regulations such as the Emergency ResponseLaw ofthe People's Republic of Chinaand local environmental protection policies. TheCompany established an Environmental Management Emergency CommandCenter, which is responsible for organizing, coordinating, and commanding theemergency handling of sudden ecological incidents. By strengthening environ-mental monitoring, maintaining environmental protection facilities, strengthen-ing employees' environmental awareness education, and promoting and train-ing emergency plans, the Company comprehensively improves its emergencyhandling ability.

Environmental Emergency Management

The Company formulates standard documents such as the Regulations onthe Management of Hazardous Substances to investigate, label, and man-age the hazardous substances to the environment, throughout the wholeprocess from incoming materials to product shipment, to ensure that theproducts are healthy and safe and can continuously meet the requirementsfor the use and management of hazardous substances to the environmentput forward by customers or relevant domestic and foreign organizations.The Company strictly implements the national laws and regulations, localpolicies, decrees of the customer's country, and appropriate customerrequirements, and formulates the Restriction Standard for Hazardous Sub-stances to standardize the “Control List of Hazardous Substances.” This listdetails all hazardous substances used, managed across three managementlevels, and classied by applicable product categories, with real-time up-dates to prevent non-environmentally friendly materials, components, andproducts from entering the supply chain and mitigate environmental impact.During the reporting period, all the identied hazardous substances of theCompany passed third-party testing and certication.

Hazardous Substances Monitoring

Investigate,

LabelManage

Materials

Component

AuxiliaryMaterials

Tools,Packaging Materials

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The disposal of hazardous solidwaste complies with relevant reg-ulations, with 100% categorizedstorage and handling by qualied

units.The emission of wastewater,waste gas, and noise complieswith relevant regulatory require-

ments.

The Company strictly complies with laws and regu-lations such as theLaw of the People's Republic ofChina on the Prevention and Control of Water Pollu-tion, theLaw of the People's Republic of China on thePrevention and Control of Atmospheric Pollution, theLaw of the People's Republic of China on Preventionand Control of Environmental Pollution by Solid Wastes

and theRegulations of Guangdong Province on thePrevention and Control of Environmental Pollution bySolid Wastes, formulates procedure documents suchas theControl Procedure for Water Pollutionand the

Control Procedure for Waste Gas Emission and Noise,establishes and improves the pollution and wastemanagement system, proactively takes measures toreduce the emission of wastewater, waste gas andwaste, and is committed to reducing the impact of itsoperation on the environment.

MetricsPerformance in 2024

76,748.79tons

0.66

tons

Wastewater Discharges

Waste Gas EmissionsQuantity of General Waste GeneratedQuantity of Hazardous Waste GeneratedQuantity of General Waste Disposed ofQuantity of Hazardous Waste Disposed of

Environmental Management ObjectivesAchievements in 2024

Achieved

Disposal MethodWaste Categories

Recyclable waste: Waste electronic wires, waste metal scraps,waste packaging materials, etc.

Non-recyclable waste: Domestic waste garbage

Collected by the Company and then sold to professional recycling entities for recy-cling and reuse

Handed over to the Sanitation Department for disposal

Entrusted to a qualied third party for waste collection and treatmentEmulsion, waste engine oil, etc.

GeneralWaste

Hazardous

Waste

Strengthen Pollutant and Waste Prevention and Control

The Company implements waste management in accordance with the principles of “classied recycling and reduction,” formulating theWaste Management Control Procedure. Waste is divided into two major categories:

general waste (recyclable and non-recyclable) and hazardous waste. Corresponding treatment measures are adopted based on waste categories, with each department implementing classied collection and storage man-agement of generated waste in compliance with regulations. During the Reporting Period, the Company formulates a hazardous waste management plan, evaluates the annual expected generation and transfer volume ofhazardous waste, and determines hazardous waste's receiving units and qualication capabilities.

Waste Management

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Treatment MeasuresTypes of Pollutants and Waste

Wastewater

Waste Gases

Noise

Mainly domestic sewage, a small amount of equip-ment cleaning wastewater, and cooling water for thefactory building construction project.

Both sewage and wastewater are centrally treated, and the cooling water for the project can be re-cycled and will not be discharged outside. Domestic sewage is pretreated by a septic tank and thendischarged into the municipal sewage interception pipeline network. It will not directly enter the waterbody, which complies with the national requirements for emission management standards.

Specic waste gas is generated in steps such as theinjection molding and grinding processes.

By strengthening the ventilation in the workshop and collecting the waste gas for centralized treat-ment, the generated organic waste gas is treated by a two-stage activated carbon adsorption deviceand discharged at a high altitude after meeting the standards. In addition, the primary air pollutantsemitted during the factory building construction project are mainly VOCs. Through accounting, the to-tal VOCs emission of the project is 0.0863t/a, which is a small amount, and the emission concentrationcan meet the ambient air quality standard, with little impact on the surrounding atmospheric environ-ment, and complies with the national emission standards.

Specic noise will be generated during the operationof machinery and equipment, such as high-speedpunching machines and mixers.

Strictly control and manage the noise in accordance with the requirements of the Emission Standardfor Industrial Enterprises Noise at Boundary (GB 12348-2008), and prevent and control the noise bymeasures such as installing vibration damping foundations for high-noise equipment and sound insu-lation of the factory building. During the Reporting Period, the noise detection outside the Company'sfactory boundary met the standards, which was lower than the Class 2 emission limit of 60dB(A) anddid not cause any adverse impacts on the environment.

Wastewater, Waste Gas and Noise Management

Governance

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Optimize Energy ManagementThe energy and resources used within the Company mainly include municipal water supply, purchased elec-tricity, gasoline, paper, raw materials, etc. The Company strictly complies with relevant laws, regulations, andrules such as the Energy Conservation Law of the People's Republic of China and the Law of the People'sRepublic of China on the Prevention and Control of Water Pollution. It proactively promotes the efcient useof energy and resources.

Risk TypeDescriptionFrequency

Explanation ofPotential FinancialImpact

Management MeasuresExtremeweatherevents

Extreme storms orheavy precipitationmay cause dam-age to energy-re-lated facilities,thus leading to theinterruption of en-ergy supply.

Low

Result in poweroutages or inter-ruptions of energysupply, which mayaffect production.

◎Strengthen equipmentmaintenance and overhaulto ensure the effective oper-ation of equipment.

◎Formulate emergencyprocedures and implementtraining on emergency re-sponse plans.

Opportunity

Type

Description

Explanation ofPotential FinancialImpact

Response MeasuresEnergyalternatives

By utilizing clean energy or inte-grating renewable energy.

Increase the devel-opment costs andreduce the energyexpenses

◎Improve the productionprocess to reduce energy con-sumption.

◎Self-invest in the develop-ment of energy-saving renova-tion projects.ResourceEfciency

Adopting an intelligent energymanagement system can effi-ciently improve energy manage-ment efciency and standardizeenergy utilization procedures.

Reduce energyexpenses

◎Develop a digital energymanagement system to unifythe Company's energy con-sumption management.

The Company formulates system procedures such as the Control Procedure for Energy and Resource Con-servation, the Regulations on Domestic Electricity Management, and the Management Measures for the AirConditioning System and implements rened management of the energy and resources used in operationlinks such as production workshops, ofces, warehouses, and employee dormitories to improve overall ener-gy utilization efciency.The Company delegates the energy management responsibilities and powers to the key energy-consumingand maintenance management departments, including the Product R&D Department, the Human ResourcesDepartment, and the Procurement Department. Each department implements energy management meas-ures according to the Company's overall energy management objectives, organizes training on energy con-servation for the employees in its department, and continuously improves the professional ability of the teamin energy and resource management. By establishing an energy efciency reward and punishment system,the Company encourages employees to put forward effective energy conservation and emission reductionsuggestions, which promotes the achievement of the Company's energy management objectives.

The Company establishes a core indicatormanagement platform based on a unifieddata standard and an energy consumptionanalysis indicator model repository. This plat-form enables real-time monitoring, collection,statistics, and analysis of energy consump-tion data, conducts comprehensive visualmanagement, enhances data traceability,and improves energy control.

Energy Management System

The Company proactively takes a series of energy management measures to control the energy consumptionfrom the source, reduce the energy consumption, optimize the energy structure, and increase the proportionof green electricity to improve the Company's energy management level continuously.Energy Management Measures

During the Reporting Period

Direct Energy Consumption Gasoline

4.36

tonsIndirect Energy Consumption Purchased Electricity8,069,948kWh

Energy Management Strategy

Digital Energy Management

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Water-Saving RetrotProject

Renovation EffectRecycling of Wastewaterfrom the Kitchen Purified

Water System

The kitchen puried water system generates 1.5T of wastewater everyday. A water tank collects this wastewater for cleaning purposes,which can save 547.5T of water every year.Condensed Water Re-covery Technology of theCentral Air ConditioningSystem with Chilled Water

Storage

A 12T stainless steel water tank is built in the factory area to collect theair conditioning condensed water through the pipe network. An automaticwater level control system regulates the operation of the pressure pump,transferring the collected water to the air conditioning cooling tower asmakeup water. The daily collection amount of condensed water is about21T, with annual cost savings of about RMB 31,500.

The Company's chilled water storage projectwas completed and put into operation in May2024. It is expected to achieve annual peakshaving and valley lling of approximately 3.1million kWh of electricity for air conditioningand production equipment, transferring peakand flat-rate electricity to off-peak periods.This reduces peak load on thermal power gen-eration, equivalent to reducing annual CO2emissions by 2.41 million kilograms.

The Company invests in the construction of auser-side energy storage project. The energystorage battery unit of the project employs na-no-silicon solid lead batteries, which have theadvantages of high safety, long service life, andrecyclability and can effectively solve the indus-try pain point that electrochemical energy stor-age batteries are prone to fire and explosion.After being put into use, the project can fullyuse the peak-valley price difference in indus-trial electricity tariffs between day and night.The system automatically charges during off-peak nighttime periods and discharges to meetdemand during peak daytime hours, effectivelyaddressing the enterprise's instantaneous pow-er load demand for electricity during the day,reducing its instantaneous power consumption,and lowering its base electricity costs.

Energy Storage Project

Chilled Water Storage Project

Photovoltaic Power Generation

Relying on the relatively abundant solar energyresources in Daning, Humen, the Company fol-lows the consumption mode of “self-generationfor self-use and surplus electricity fed into thegrid” and has installed a distributed photovoltaicpower generation system on the rooftops of theNo. 1 factory building, No. 2 factory building andNo. 3 dormitory building at its factory complex,covering a total area of about 4,000 squaremeters. After the project is implemented, it isexpected to generate about 860,000 kWh ofelectricity annually, reducing carbon emissionsby 857 tons.

Energy-saving Project RenovationOptimize the Energy Structure

Reduce CO

emissions by

2.41

million kilograms annually.

Water Resource Utilization

The Company formulates theRegulations on Do-mestic Water Management and implements con-trol measures for daily water consumption to avoidwaste. The Company has improved the water re-cycling rate and reuse efciency by implementingwater-saving renovation projects to reduce waterresource consumption.

The total water consumption is

50,682 tons.

During the Reporting Period

CASE

CASECASE

Sustainable DevelopmentGovernance

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WCON upholds “honest operation, quality first, in-novation-driven, and win-win cooperation.” Throughcontinuous innovation and R&D efforts, the Companyenhances product and service quality to meet customerneeds and create greater customer value. Meanwhile,it also proactively builds a sustainable supply chain, col-laborating with upstream and downstream partners toforge a new chapter of shared success and contributehigh-quality productivity to China's connector industry.

Innovation-DrivenTransformation

◎Innovation-driven◎Product and Service Safety and Quality◎Supply Chain Safety

Responded Topics

Sustainable DevelopmentGovernance

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for a Green World

Innovation-Driven

Transformation

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Appendix

Co-accelerate Industrial EcosystemsThe Company has always regarded technology research and development as its core competitiveness. It hascontinuously stepped up efforts in core technology research, continuously promoted the reform and inno-vation of the research and development system, strengthened the cultivation of scientic and technologicaltalents, stimulated the driving force for innovation, and used the power of value creation to boost the Com-pany's high-quality development.

After years of development, the Company has gathered a group of core technicians with rich industry ex-perience who have good professional qualities and technical strength in product design, mold development,connector manufacturing process development, and other technologies. The Company actively transformsthe talent advantage into the driving force for high-quality development. To fully mobilize the enthusiasm ofemployees for technological innovation, the Company has formulated such incentive systems as theProce-dure of Employee Incentive and Authorization Controland theMeasures for Patent & Copyright Management

to encourage employees to give full play to their creative and innovative abilities, engage in invention activ-ities, and contribute to technical standard documentation, further stimulating their autonomous innovationpotential.

R&D CenterProduct R&D DepartmentProduct Engineering Department

ProductEngineering

SectionIntegrated

ProductSectionPrecisionConnectorDevelopmentSectionPrincipal Functions:

Development ofPrecision Connectors

IndustrialConnectorDevelopment

SectionPrincipal Functions:

Development ofIndustrial Connectors

Automotive

ProductDevelopment

SectionPrincipal Functions:

Development of NewEnergy Products

Principal Functions:

Integrated ProductSupport

PrincipalFunctions: ProductTechnical Support

202220232024R&D Investment (yuan)58,904,472.1572,336,311.2464,355,742.49Number of R&D Personnel (persons)224267210

Proportion of R&D personnel18.62%19.32%13.60%R&D Personnel by Gender

(in persons)

202 / 96.20%8 / 3.80%

MaleFemale

(in persons)

R&D Personnel by Age

30 (inclusive) to 40 (exclusive) years old

41 / 19.52%107 / 50.95%62 / 29.52%Under 30 (exclusive) years oldAbove 40 years old (inclusive)

During the reporting period, the company's integrated product section organized 16 R&D empowermenttraining programs for product engineers, packaging engineers, and assistant engineers, steadily improv-ing the comprehensive quality and professional skills of R&D personnel.

The Company has established an R&D center as the core department for technological innovation, and itis engaged in developing products such as electronic connectors. Through continuously optimizing and up-grading the R&D organizational structure, the Company enhances experience accumulation and knowledgetransfer among design teams while strengthening the dedicated focus on product design. The Company hasformulated regulations, including theMeasure for Management of Product Design and Developmentand theProject Management Control Procedure, to improve the rigor and standardization of each process in the R&Dprojects, ensuring the smooth implementation of R&D projects and reinforcing the Company's sustained in-dependent R&D capabilities.

R&D Innovation Governance

R&D Empowerment Training

Sustainable DevelopmentGovernance

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Appendix

Risk Identication List

CategoryDescriptionTime Range

Explanation of PotentialFinancial Impact

Response MeasuresTechnologyRisks

Technology

Outow

◎Competitors in the same industry may reverse-engi-neer or adopt our technologies, eventually emerging asdirect rivals.

Medium andlong-term

Competitors may quicklylaunch similar products, eat-ing into market share andcausing a drop in revenue.

◎Sign condentiality agreements with employees;◎Maintain customer relationships and expand other customers' busi-nesses.

MarketRisks

Uncertaintyof MarketDemand

◎The Company's connector products are primarily tar-geted at industrial control, automotive, and new energysectors, where the operating environments are inherentlycomplex and market demands are diverse. This resultsin an operational model characterized by “multi-variety,small-batch, and customization.”

Medium andlong-term

The product or service maynot be widely accepted bythe market, leading to a de-cline in revenue.

◎Proactively track market trends, make forward-looking assessments ofindustry changes, swiftly respond to and precisely capture market trends,sustainably increase R&D investment, and encourage R&D innovation andthe commercialization of outcomes.MarketCompetition

◎Market competition may intensify with the changesin the domestic and foreign economic and political en-vironments. If the Company fails to make continuousimprovement and innovation in terms of technology andproducts, its market competitiveness may decline

Medium andlong-term

Reduction in market shareand decline in revenue.

◎The Company maintains a competitive market position through multiplestrategies, including continuously increasing R&D investments, enhancingproduct innovation capabilities, expanding product portfolio diversity, op-timizing production processes, efciently operating the quality manage-ment system to ensure product quality and service responsiveness, andintensifying market expansion efforts.Policy andLegal Risks

ComplianceRisks

◎The Company needs to pay attention to changes indomestic and foreign regulations and industry standardsand differences in local labor laws where new factoriesare located to ensure that its R&D and business activitiescomply with relevant laws and regulations. Otherwise, itmay face legal risks such as nes and lawsuits.

Short- tomedium-term

Increase in operating costsand decrease in revenues.

◎The Company strengthens the identification, collection, and regularupdate of domestic and foreign regulations and industry standards, withkey provisions incorporated into training programs or institutionalized incompany policies.Opportunity Identication List

CategoryDescriptionTime Range

Explanation of PotentialFinancial Impact

Response Measures

Market opportunities

◎With the continuous iterative development in variousemerging fields, including emerging demands in down-stream markets such as communication equipment,cloud computing, automotive electronics, industrial con-trol, smart home, and AI applications, the connectors, askey essential components, are facing substantial marketopportunities.◎The photovoltaic industry will enter a stage of large-scale, high-speed, and high-quality development, drivingthe continuous technological progress of new-energyconnectors and increasing market demand.

Medium andlong-term

Augmented operating income.

◎The Company must continually innovate and enhance product perfor-mance to meet market demands for high-quality, high-reliability, high-in-tegration connectors while capitalizing on market opportunities to capturemarket share.◎Select high-quality customers and cultivate potential customers.

R&D Innovation Strategy

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The Company has formulated theControl Procedure for Design Potential Failure Mode and EffectsAnalysis. The DFMEA management method systematically analyzes each product component to pro-actively identify and evaluate potential failures and their effects during the design planning phase.Based on prioritized analysis results, targeted measures are taken to avoid or mitigate these risks ofpotential failure. The entire process is documented, continuously updated, and improved to provideempirical references for subsequent designs.

The Company continuously increases the intensity of R&D investment and invests in professional 3D design soft-ware, simulation testing systems, and high-end electrical and material testing equipment in the technical R&Dstage, which effectively shortens the product R&D cycle, reduces the material consumption in the R&D stage oftraditional connector products by leveraging the considerable data computing power for simulation testing, andeffectively ensures the rapid delivery of new products. During the reporting period, the company developed 70new products, further enriching its product portfolio to meet the customized needs of different customers. The newconnector products have reached the technical level of similar imported products regarding service life, product re-liability, and electromagnetic interference resistance.

MetricsAchievements in 2024Goals for 2024

◎50 R&D tasks werecompleted

◎61 new product developmentprojects were initiated, and 58 pro-jects were completed and enteredmass production.

R&D Tasks

◎2 CECA group stand-ards◎1 corporate technicalstandard

◎2 national industry group stand-ards are formulated: the WD andBSC series.◎1 corporate technical standard iscompleted: e Technical Standardfor Non-Magnetic Pin Header hasbeen nalized.StandardDevelopment

◎3 invention patents◎20 utility model patents◎2 design patents

◎e Company applied for 30patent applications, including 3inventions and 27 utility modelpatents.IntellectualProperty

3D Design SoftwareSimulation Testing SystemsHigh-end Electrical and Material Testing EquipmentEffectively shorten the product R&D cycle, reduce the material consumption in the R&D stage of traditional

connector products, and effectively ensure the rapid delivery of new products.

During practical applications of connectors, long dimen-sion chains in assembly mechanisms often lead to instal-lation deviations and misalignment of connection inter-faces. Additionally, scenarios such as high transmissionspeeds and mechanical vibrations in real-world use cancause distortion of signal transmission. The Company hasdeveloped a 0.5 mm pitch oating BTB connector with upto 120 contacts, featuring X, Y, and Z three-axis oatingcapabilities. This design effectively accommodates instal-lation deviations and ensures stable signal transmission.Its high precision and contact reliability meet the strin-gent requirements of automotive-grade environments,making it widely applicable in automotive ADAS, ECU,infotainment systems, and industrial PLCs.

0.5 mm Floating BTB Connector

Development ProjectThe Company's 1.0 mm-pitch FFC con-nector adopts a flat design. The productweighs no more than 8 g, effectively re-ducing the volume and weight, making itmore suitable for electronic and mechan-ical equipment with strict weight require-ments. Meanwhile, it forms a exible con-nection solution with FFC/FPC, achievinga more compact product design. It can bewidely applied to elds such as automotivedriving assistance information entertain-ment systems and industrial automationsystems to meet the industry's demandfor components that can quickly adapt tocomplex shapes and environments.

FFC ConnectorDevelopment Project

R&D Risk Management

The Company adheres to independent R&D, benchmarks against leading international con-nector enterprises, and aims at connector miniaturization, integration, and intelligence devel-opment trends. Innovations in connectors are pursued in complex structure design, electricalperformance simulation, precision mold design, and new material applications to consolidateits development pattern of “industrial control as the core pillar, automotive and new energy astwin wings,” steadfastly pursuing the path of domestic substitution.The Company formulates an annual development plan based on overall business performance andcustomer needs to accelerate the commercialization of R&D achievements.

R&D Goals and Achievements

CASECASE

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The Company actively utilizes its strengths, devotes itself to research in specialized elds, actively partici-pates in industry and standardization development, and takes the initiative to engage in industry exchangesand cooperation. Doing so strengthens communication with industry associations and jointly promotes theindustry's progress. By the end of the Reporting Period, the Company has participated in 9 industry-relatedorganizations and associations, including the Electrical Connectors Branch of China Electronic ComponentsAssociation, the Guangdong Association for Quality, the Shenzhen Robot Special Wire and Cable Industry As-sociation, and the Shenzhen Connectors Industry Association.

The Company attaches great importance to independent innovation and the protection of intellectual proper-ty rights, continuously enhancing its capabilities in creating, utilizing, and managing intellectual property. Tostrengthen the enterprise's intellectual property rights management, the Company strictly complies with rel-evant laws and regulations such as thePatent Law of the People's Republic of China and the Code for Man-agement of Intellectual Property Rights of Enterprises. In compliance with the requirements of the standardGB/T 29490-2023, the Company has established an intellectual property management system and formulat-ed a series of institutional and procedural documents, including theIntellectual Property Management Man-ual,Procedure for Control of Intellectual Property Acquisition, and Procedure for Management and Control ofIntellectual Property Risk, which ensured the scientic and standardized implementation of IP managementand safeguarded the Company's legitimate rights and interests.The Company has developed an Intellectual Property Training Plan, conducting targeted IP training sessionswith evaluations for different employee groups to strengthen IP compliance awareness and risk prevention.This ensures IP protection becomes embedded into the daily operations of every employee, safeguarding theCompany's long-term development. The Company also enters into Non-Disclosure Agreements, Non-CompeteAgreements, and Intellectual Property Assignment Agreements with employees to ensure standardized man-agement of trade secrets and technical secrets in business operations and clearly dene intellectual propertyownership, rights, and obligation clauses. A pre-classication review is conducted before formal secret classi-cation, followed by post-classication monitoring to avoid losses from potential disclosures.The Company obtained the certication of GB/T 29490-2013 intellectual property management system. Therewere no intellectual property disputes in 2024.

Type of StandardNames of Standards Led/Participated in Development and RevisionNational Standard

◎Diecasting zinc alloys (GB/T 13818-2024)◎Die-casting aluminum alloys (GB/T 15115 - 2024)

Group Standards

◎2.00 mm Pitch SIC High-Performance Connector◎1.27 mm Pitch Small Computer System Interface Connector◎Ejector header lock series connectorDuring the Reporting Period, the Company actively participated in industry activities such as the Smart Pro-duction Solutions and ITES Exhibition, demonstrating the Company's latest technologies and achievements inconnectors. Through in-depth communication with on-site guests and industry experts, the Company contin-uously enhanced the market application capabilities of its products, strengthened cooperative relationshipsin the industry, and jointly promoted the development of the connector sector.

Smart Production SolutionsGuangzhou

Shenzhen ITES ExhibitionOE Auto Smart New Energy Vehicles Cost Reductionand Eciency Enhancement Technology Exhibition

Electronica ChinaShanghai International New Energy

Vehicle Exhibition

Electronica Munich

Strengthen Industry ExchangesProtection of Intellectual Property Rights

As of the end of the reporting period, theCompany had amassed

patentedauthorizations, comprising

grantedinvention patents,

utility model pat-ents,

design patents, and

overseaspatent. In addition, the Company has ob-tained

software copyrights.

During the Reporting Period

Sustainable DevelopmentGovernance

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Premium Brand from QualitySince its establishment, the Company has consistently upheld its philosophy of “Building Brand Reputation Through Quality, Gaining Market Trust Through Service, and Driving Growth Through Professionalism.” It strictly ad-heres to laws and regulations, such as theLaw of the People's Republic of China on Product Quality, continuously innovates with relentless pursuit of excellence, and provides customers with professional and efcient solu-tions. Moreover, the Company implements a quality policy of “Quality First, Continuous Improvement, and Customer Satisfaction.” The company did not experience signicant liability, quality, or safety issues during the report-ing period.

Quality Training

IATF 16949:2016ISO 9001:2015

Quality Center

Quality Assurance

DepartmentQuality Management

Department

QualityRepresentatives

The Company has established a high-standard quality supervision system, integrating quality managementinto the entire chain process from product design and manufacturing to testing. The UL Witness Test DataProgram recognizes the Company's laboratory. It is equipped with various advanced testing equipment, in-cluding lm thickness testers, hardness testers, high-temperature aging testers, salt spray testers, etc., whichcan fully ensure that the product performance and quality meet the relevant standards.The Company's Quality Center has a Quality Management Department and a Quality Assurance Department,responsible for implementing the requirements of the Company's major quality systems. These departmentsensure strict compliance with system guidelines, review and evaluate actual operational performance andquality objectives, and continuously optimize system documentation and quality improvements. By the endof the reporting period, the company had obtained certications for the IATF 16949:2016 quality manage-ment system and ISO 9001:2015 quality management system.

RiskType

TriggerProbability

Risk Analysis

Explanation of PotentialFinancial Impact

Response Measures

Legalrisks

Low◎Updates to product-relatedlaws and regulations, notablystricter restrictions on hazard-ous substance limits, requirethe Company to promptlyadapt to and comply withthese changes to avoid compli-ance issues.

◎Increase incompliance costs orpotential decline inprots

◎The Company regularly collectsdomestic and international laws,regulations, standards, and industrycodes, promptly revises its inter-nal hazardous substance controlstandards, and strictly implementsthese updates. Additionally, it signsthe declarations on the non-use ofhazardous substances with suppliers.SupplierRisks

Low◎The product quality may beaffected by supplier qualica-tions, material performance,supplier transportation routes,and changes in packaging andtransportation.

◎Product qualityissues and delayeddelivery may damagethe Company's repu-tation, affect customertrust, and reduce salesrevenue.

◎Formulate procedure doc-

uments such as the SupplierControl Procedure, Sample ControlProcedure, and packaging speci-cations;

◎Sign quality and condentiality

agreements with suppliers.

Operational

Risks

Average

◎ The delivered products

do not meet the customer’srequirements;

◎Undetected bulk raw mate-

rial defects lead to defectiveproducts leaking to customers;defective products are nottimely labeled and controlled;

◎Inadequate labeling of

production materials resultedin mixing and misplacement ofconforming and non-conform-ing products, compromisingproduct quality.

◎The costs of han-

dling complaints andcompensation leadto increased costs;

◎Product qualityproblems may leadto customer ordercancellations and re-duced sales revenue.

◎Formulate quality control sys-tems and management measuresto strengthen quality control in theproduction process;◎Strictly enforce the incomingand outgoing quality inspections ofnished products;◎Formulate theProcedure forControl of Corrective and PreventiveActionsand theContinuous Improve-ment Control Procedureto driveongoing improvement;◎Standardize the customer com-plaint response system to ensureprompt resolution of customer needs.

Quality Management SystemQuality Management Strategy

quality training sessions were carriedout, with

participants in attendance.

During the Reporting Period

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The Company formulates theObjectives, Targets, and Implementation Management Proceduresto establish,monitor, and continuously improve Key Performance Indicators (KPIs) for processes related to the qualitymanagement system. This ensures process effectiveness and product quality compliance with requirements,fullls customer expectations, and achieves organizational quality objectives. Annually, the Company setsannual objectives and targets systematically cascaded down to specic departments through a hierarchicaldecomposition mechanism. Adjustments are implemented promptly based on target achievement status.

Performance Indicators

2024 ActualAchievement Values2024 Target

Values

99.20≥ 98

99.83≥ 98.5

99.83≥98.5

0.115≤ 0.5

100≥ 99

98.49≥ 97

1.75≤ 3

0.25≤ 3

761.571500

99.67≥ 99.6

100≥ 100

C3-2 Stamping Process Inspection

Pass Rate (%)C3-3 Molding Process Inspection

Pass Rate (%)C3-5 Assembly Process Inspection

Pass Rate (%)Cost of Poor Quality (COPQ)

Loss Rate (%)Number of Continuous Improvement

Projects (Count)Document Distribution Accuracy Rate (%)Incoming Material Inspection Pass Rate (%)Incoming Batch Missing Quantity (Pieces)

Assembly Batch Non-conforming

Quantity (Pieces)Customer Return PPMCustomer Acceptance Pass Rate (%)HSF Incoming Inspection Pass Rate (%)HSF Monthly Product Complaint Rate (%)

QualityObjectives

Pursue zero defects and make WCON a byword for high quality in the connec-tor industry.HSFObjectives

HSF customer complaint rate — zero.

Quality Metrics and Targets

The company's product qualication rate is

99.66%

.During the Reporting Period

Sustainable DevelopmentGovernance

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Non-conformance Category

Incoming InspectionNon-conformance

IPQC In-process Inspection Non-conformance / FQC Sampling Inspection

Non-conformance

OQC Sampling Inspection

Non-conformance

Customer ReturnNon-conformanceStock Re-inspectionNon-conformance

Engineering Change

Non-conformance

Post-Test VericationNon-conformance

RoHS Non-conformance

To enhance product quality control, the Company has implemented an integrated full-lifecycle quality manage-ment system that comprehensively governs every stage, from incoming material inspection, manufacturing pro-cesses, and nished product inspection to post-sales service tracking. This end-to-end framework ensures precisequality monitoring at each phase, enabling systematic management and continuous product quality optimization.The system guarantees consistent product delivery that meets regulatory standards and customer expectations.TheIncoming Material InspectionControl Procedureis established tostandardize the inspection processfor externally procured or outsourcedproduction materials. This protocol en-compasses supplier qualication veri-cation, statistical sampling inspection,material identication, and segregatedstorage protocols. Materials passing in-spection are authorized for warehouseentry, while non-conforming itemsare processed in accordance with theNon-conforming Product Control Pro-cedure.

TheFinished Product Inspec-tion Control Procedurehasbeen established to stringentlystandardize incoming inspec-tion (pre-warehousing verifica-tion) and outgoing inspection(pre-shipment validation)processes based on productcategories, ensuring the outgo-ing products comply with therequirements.

TheIn-Process Inspection Control Procedure

has been established to standardize criticalcontrol protocols, including sample reception,first-article inspection, and last-article sam-pling verification. This framework ensuresthat all production stages operate undercontrolled conditions, maintaining consist-ent quality stability. Additionally, dedicatedcontrol procedure documents for stamping,injection molding, and copper wire productionhave been developed to dene standardizedworkflows across all manufacturing work-shops, ensuring product quality through doc-umented process compliance.

Incoming Material InspectionProduction ProcessFinished Product Inspection

The Company places high importance on product and service quality, establishing proceduressuch as theProduct Recall Control ProcedureandCorrective & Preventive Actions ControlProcedureto standardize the supervision and management of its product portfolio. The VicePresident convenes a task force to conduct recall evaluations for products with serious environ-mental non-compliance, quality defects, or potential safety hazards. If a recall is necessary, theCompany promptly noties relevant stakeholders to implement product retrieval, ensuring swiftand complete control over affected items to prevent or minimize corporate losses. No productsmust be withheld or recalled during the reporting period due to health and safety concerns.

Recall Procedure

Triggering CircumstancesProduct Identication & Evaluation

Traceability & Recall Planning

Information Disclosure

Product RetrievalDisposal/Remediation

Documentation

Corrective Actions

Quality Management Measures

Whole-Life-Cycle Management of ProductsProduct Recall Management

To ensure the control and handling of non-conforming products and suspected items throughout the entire process ofraw material input, production, product output, and service delivery, and to prevent the mixing of defective productswith qualied ones that could enter subsequent processes or shipments, the Company has established procedural doc-uments such as theNon-conforming Product Control Procedure and the Defective Product & ROHS Disassembly Man-agement Specication. These documents standardize the Company's defective product disassembly and processingworkow and clarify the criteria for non-conforming products and disposal requirements, including rework processes.

Dispose Non-conforming Products

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The Company adheres to a customer-centric philosophy, committed to delivering high-quality products and providing professional services to earn customer trust. Through its establishedSales Management Control Procedure,the Company implements standardized controls across the entire sales cycle – encompassing pre-sales, in-sales, and post-sales processes. A coordinated effort involving the Marketing Center, Production Planning Department,R&D Center, Quality Assurance Division, and Project Management Ofce forms a customer demand-driven team structure. This cross-departmental collaboration ensures a comprehensive understanding of client requirementsand market dynamics, enabling efcient order fulllment and continuous improvement in customer satisfaction.

Optimization of Customer Service

8D Customer Complaint Handling Process

Most LikelyCause SelectionPotential Cause

Identication

Root Cause

Conrmation

Root Cause Analysis

Initial ProblemUnderstanding

Team Formation

ProblemDescription

Interim Containment

Actions

PermanentCorrective Actions

Recurrence

Prevention

Effectiveness

Verication

Lessons Learned

Root CauseVerication

YESNO

The customer complaint resolution rate was100%.Carry out

special training sessions on customer complaint response.During the Reporting Period

The Company has established theCustomer Complaint Handling Control Procedure to standardize identify-ing and resolving client grievances, ensuring prompt responses and effective solutions to enhance customersatisfaction. Complaints are systematically addressed through an 8D methodology to achieve root cause res-olution and prevent recurrenceCustomer Complaint Handling

The Company places high importance on customer feedback and suggestions. It has established theCus-tomer Satisfaction Management Procedures to systematically collect and understand customer satisfac-tion levels regarding services, products, delivery timelines, quality, and systems. This is achieved throughmultiple channels, including monthly proactive monitoring of customer satisfaction, annual customersatisfaction surveys, and, for automotive clients specically, monthly collection of customer scorecards ormonthly performance appraisal data by business personnel. All collected data undergoes timely compilingand analysis to drive continuous improvements in our quality management system's performance, withthe ultimate goal of consistently exceeding customer expectations.

Customer Satisfaction Survey

The Company's customer satisfaction score was

95.84

.During the Reporting Period

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Appendix

“Excellent Supplier” in 2024 from Bronze Technologies“Excellent Partner Award” in 2024 from Enpower2024 China New Energy Vehicle Technology and Supply ChainEnterprise Online Selection -“Top 10 Industry Leader Award”

“Certied Quality Supplier” in 2023 from OE Automotive“Excellent Supplier” in 2023 from RSPower Tech“Excellent Quality Award” in 2021 from FinDreams Powertrain

“Excellent Partner Award” in 2022 from Enpower“Technological Innovation Award” in 2022 from Midea“Excellent Supplier” in 2021 from Cal-Boz

“Excellent Supplier” in 2020 from Evoc

Intelligent Technology

Honors And Recognitions

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Reinvent Sourcing Governance

The Company strictly complies with theLaw of the People's Republic of China on Tendering and Biddingand other relevant laws and regulations, having established internal procurement management systems, including the

Supplier Management Control ProceduresandProcurement Control Proceduresto standardize purchasing processes and supplier governance. The Company implements rigorous selection criteria, qualication assessment,evaluation, and performance reviews for suppliers providing production materials, equipment, tooling components, and related services. This ensures the engagement of competent suppliers and service providers capable ofdelivering qualied raw materials, precision components, and superior services. These measures enhance the Company's supplier management capabilities, maintain improved collaboration with suppliers, and guarantee com-pliance with stipulated quality requirements throughout the supply chain.

◎Responsible for supplier quality assessment, judgment, and formulation of

quality standards◎Verify incoming material quality from suppliers◎Participate in initial evaluations of new supplier development and prelimi-nary approval of qualied suppliers◎Assess and guide suppliers in product control, quality management capabili-

ties, and inspection equipment competency

0102

0403

◎Participate in reviewing and auditing newly developed suppliers to deter-

mine qualied suppliers◎Conrm, evaluate, trial-assemble, and approve production parts for supplier

samples and product drawing compliance

R&D Center

General ManagerQuality Center

◎Develop and evaluate new suppliers◎Organize relevant departments to recommend and review potential suppliers◎Approve qualied suppliers, document registration, and management◎Conducted comprehensive evaluations of existing suppliers, including perfor-mance reviews for guidance and support◎Negotiate procurement orders, delivery contracts, and related agreementswith suppliers

Procurement Department

◎Approve nal decisions on qualied supplier certication

◎ Make critical decisions on signicant issues arising during the procurement process

Supply Chain Security Governance

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Appendix

The Company implements a comprehensive supply chain risk management system that enables preciseidentication, scientic evaluation, and real-time monitoring of risks across critical phases, including sup-plier selection, raw material procurement, and production processes. Risk-tiered mitigation strategies areformulated with operational contingency plans, supported by periodic risk assessments and scenario sim-ulations to enhance organizational resilience against supply chain disruptions systematically.RiskType

Risk Description

ImpactDuration

PotentialFinancial Impact

Response Measures

Supplierrisks

Issues with suppliers'production capacity,quality performance,or delivery schedulesmay result in pro-duction interruptionsor product qualitydefects.

higher

Delayed deliverytriggers produc-tion interrup-tions, leading toeconomic lossesand revenuereduction dueto client ordercancellations, in-curring additionalprocurementcosts.

◎Implement rigorous supplierqualication screening and perfor-mance evaluation;

◎Enhance incoming/inbound

quality inspection procedures;

◎Cultivate high-performance sup-

pliers and establish relatively stableprocurement channels;◎Establish a multi-level suppliersystem and activate emergencyplans in case of emergencies;◎Closely monitor productionprogress and proactively discussrevised delivery timelines withaffected clients.

LogisticsRisks

Problems in trans-portation, ware-housing, and otherlinks may lead toproduct damage,delayed delivery, etc.

higher

PoliticalandEconomicRisks

External factors suchas political instabilityand economic crisesmay lead to supplychain disruptions.

higher

PriceRisks

Price volatilitystems from com-mercial negotia-tions, geographicpricing discrepan-cies, emerging tech-nologies/materials,and environmentalcompliance

low

Price risesincrease procure-ment costs.

◎Enhance business negotiationcapabilities;◎Conduct thorough marketresearch;◎Strengthen the timing of procure-ment;◎ “Conduct multi-vendor compar-

ative analysis” and “implement theinquiry and quotation system.”

Establish tiered mecha-nisms covering supplierperformance evaluation,real-time logistics moni-toring, and cybersecuritycompliance audits, ena-bling proactive identifi-cation and mitigation ofsupply chain risks.

Prevention First

Once a supply chainsecurity problem occurs,quickly activate theemergency plan, take ad-equate measures to solvethe problem, and reducelosses.

Rapid Response

Regularly evaluate andoptimize the supply chainsecurity managementsystem to continuouslyimprove the supply chainsecurity level.

Continual ImprovementManagement Principles

Supply Chain Security StrategySupply Chain Risk Management

The Company has developed anEmergency Drill Plan for Externally Sourced Processes to address sig-nicant supply chain risks. This plan outlines targeted emergency measures and establishes a Procure-ment-Supply Emergency Response Team tasked with coordinating responses to sudden material shortag-es or considerable quality issues. Regular drills are conducted under the plan to strengthen departmentalpreparedness, ensuring teams can effectively mitigate disruptions. These efforts prevent material short-ages, delays in customer deliveries, and unexpected losses caused by inadequate or defective supplies.By doing so, the Company guarantees that materials are procured timely, efciently, and to the requiredquality and quantity standards.

Supply Chain Emergency Drills

On March 12, 2024, the Company’s Procurement Department conducted an emergency drill simulatinga critical supply chain scenario: abnormal terminal electroplating in the T2150T-S4W02 product and asudden supplier failure threatening customer delivery deadlines and urgent production line requirements.The Procurement Department swiftly collaborated across departments—including business, production,planning, and the emergency response team—to coordinate resources and timelines. To resolve thecrisis, the department activated vetted backup suppliers capable of meeting strict quality and deliverystandards, ensuring seamless material substitution. The drill concluded with successfully executing thecontingency plan, averting potential delays, and safeguarding production continuity.

Emergency Drill for External Supply InterruptionCASE

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Appendix

The Company continuously enhances its supplier management framework by implementing rigorous oversight of supplier entry, performance assessment, and supplier audit. This structured approach ensures consistent qualitystandards and strengthens supply chain reliability while mitigating operational risks.

90-100 points

Grant prioritized procure-ment status with discretion-ary increases in purchaseorders and manufacturingallocations.

Grade A

Supplier Management

The Company operates a tiered supplier evaluation framework, conducting periodic performance reviews across supplier categories. Assessments focus on four core performance metrics: quality compliance, qualityperformance, delivery reliability, and collaborative engagement. Based on cumulative evaluation scores, suppliers are classied into four tiers: Grade A, Grade B, Grade C, and Grade D. The Procurement Department alignssourcing strategies with these ratings.

Supplier Assessment

For materials used in automotive products, the Companyprefers to use suppliers certied by IATF16949 to ensurethat the materials, processes, and services related to thepurchased automotive products comply with the currentlaws and regulations in the receiving country, the country ofdispatch, and the country of destination determined by thecustomer. All direct material suppliers are required to signthe following agreements with the Company:

Supplier Quali-ty Assurance Agreement,Supplier Material PCN Agreement,andSupplier Environmental Compliance Agreement.

Supplier Entry

Identify potentialsuppliersBased on material supplystatus, supplier evaluationoutcomes, and supplierdevelopment plans

Determine the suppliersmeet the qualications

Complete the SupplierCapital Information Form

Suppliers with strong compre-hensive capabilities, cooperationcommitment, and alignmentwith the Company’s standards

Supply chain reliability,technical expertise, andquality assurance systems

12345

Preliminarily identifythe suppliers

Collect supplierdata

Preliminarily screensuppliers

Supplierevaluation

80-89 points

Maintain the current orderquantity, and the suppliershould continue to im-prove.

Grade B

70-79 points

Appropriately reduce the procurementquantity or suspend procurement. Issue awarning to the supplier for some relativelyserious problems and notify the supplierto rectify the deficiencies, follow up onthe rectication results, and at the sametime, strengthen the inspection of the ma-terials from this supplier.A supplier rated as Grade C for over threeconsecutive months will be downgradedto Grade D.

Grade C

60-69 points

The Procurement Department notifies the sup-plier to come to attend on-site review meetingsor receive technical guidance at its facility. If asupplier is rated as Grade D twice in a row, theProcurement Department will issue an officialcorrective action notice (CAR); if the supplierfails to improve within the rectification period,the supplier will be disqualified. If a supplier israted as Grade D for three consecutive months,its qualification as an approved supplier will becanceled, and its business will be terminated.

Grade D

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Supplier EvaluationQualied

Continue to purchase or increase the procurement quantity and give thesupplier priority in new projects.

Suppliers listed in the “Supplier Elimination Plan” orthose without business transactions for two years

Go through the entire new supplierapproval process to restart their business.

Audit scorerate ＜ 80%or 85%

Notify the supplier to make improvements within one month. After providingmaterials for improvement, the supplier can apply for re-review. If the supplieris still unqualied after the re-review, its qualication will be canceled and noteligible for review within one year.Unqualied

The supplier can be given a rectication period of four months. After passingthe re-review four months later, it can be included in the list of qualifiedsuppliers again. Otherwise, it will be listed in the “Supplier Elimination Plan.”

Supplier Audit

Category A suppliers (key raw materials) andCategory B suppliers (auxiliary materials)

Annual mandatory on-site auditsGenerally qualied suppliersUnscheduled audits or corrective guidanceMajor quality nonconformities, C/D graderatings, or critical delivery delays/servicedisruptions impacting production

On-site evaluations

The Company establishes an audit team to audit the leading qualied suppliers annually.Supplier Audit

The Company places high importance on supply chain innovation and application initiatives, actively re-sponding to national policy calls. Through digital transformation in the supply chain, it empowers the enter-prise and its partners to achieve compliance transparency, cost reduction with efciency improvement, andhigh-quality, sustainable growth. The Company uses the Supplier Relationship Management(SRM)systemas an internal supplier management platform. The system integrates various functions such as the procure-ment process, supplier evaluation, and cooperation and collaboration, and effectively manages the entirelife cycle of suppliers, from screening and admission to transaction cooperation, performance evaluation,and subsequent relationship maintenance. It standardizes and automates the procurement process, realizesinformation sharing and collaborative work between the enterprise and suppliers, such as sharing productionplans, inventory levels, and other information, and enhances the trust and transparency of cooperation; atthe same time, it can monitor supplier performance and risks in real-time, such as delivery delays, qualityproblems, etc., issue early warnings and take measures to reduce the risk of supply interruption.

Empower with Digitalization

the Company completed auditing

suppliers, and the results showed all were qualied.

qualied suppliers with quality management system certication

qualied suppliers with environmental management system certication

qualied suppliers with occupational health and safety management system certication

potential qualied suppliers rejected due to non-compliance

qualied suppliers whose cooperation was suspended due to non-compliance

During the Reporting Period

Sustainable DevelopmentGovernance

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Supplier ESG management is critical for companies to achieve sustainable development goals. To effectively implement ESG practices across supply chains, enterprises adopt a systematic approach encompassing the followingmeasures: formulating clear ESG policies and standards, selecting ESG-compliant suppliers, establishing a regular communication mechanism, providing training and support, setting clear ESG improvement goals and indica-tors, conducting supervision and audits, and establishing an incentive mechanism. At the same time, the Company maintains a vigilant focus on market dynamics, regulatory updates, and internal growth trajectories. It contin-uously renes ESG management frameworks and standards for supplier networks, fostering a mutually benecial ecosystem that drives collaborative development. This commitment ensures joint progress toward co-creatingan eco-conscious, socially responsible, and sustainable future with supply chain partners.

The Company takes the initiative to explore supply chain energy conservation and emission reduction measures. It continues to work hard in logistics, transportation, and warehousing to minimize carbon emissions and con-tribute to environmental protection. In supplier selection, the Company adopts the “proximity principle” to avoid excessive energy consumption caused by long-distance transportation. During the Reporting Period, the Compa-ny had 41 qualied suppliers, and the ratio of procurement expenditures from local suppliers was 48.77%.

Topics

SupplierManagementStandards

Environmental◎Require suppliers to take necessary environmen-

tal protection measures, such as reducing emis-sions, protecting resources, and recycling waste;◎Encourage suppliers to use renewable energyand energy-saving factory technologies;

◎Require suppliers to implement water resourcemanagement controls, take adequate measuresto reduce water withdrawals, and process waterand wastewater in an environmentally compatiblemanner.

Social

◎Require suppliers to respect and protect internation-

al human rights and not engage in acts that violate orinfringe on human rights.◎Suppliers should be prohibited from using child labor,forced labor, or any form of compulsory labor to protectthe legitimate rights and interests of employees.◎Encourage suppliers to provide employees with aworking environment that respects diversity and inclu-siveness and advocates equal and fair business ethics.

Corporate Governance

◎Require suppliers to comply with all applicable

national and international laws to ensure the legalityand compliance of their business activities.

◎Encourage suppliers to develop and implementappropriate training so employees can understandgenerally accepted principles of behavior and inter-national standards.◎Supervise the implementation of suppliers' policiesrelated to anti-monopoly, anti-bribery, and anti-cor-ruption to ensure the fairness and transparency oftheir business activities.

Build Sustainable Supply Chains

The Company proactively pioneers a “Transparent Procurement” model characterized by legal compliance,operational transparency, and ethical efciency. It has institutionalized a comprehensive procurement gov-ernance framework with standardized operational protocols, ensuring open, equitable, and transparentprocedures that eliminate backdoor operations. This strategic approach drives continuous enhancement ofprocurement management sophistication across the organization. The Company signs theIntegrity and Hon-esty Agreement with suppliers, rmly resists commercial bribery and unfair competition, opposes commercialfraud, and safeguards the legitimate rights and interests of both parties.

Transparent Procurement

100% of our suppliers signed the Integrity and Honesty Agreement.During the Reporting Period

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Appendix

WCON consistently regards employees as a crucial pillarin value creation, remaining committed to fostering anequal, inclusive, and diverse workplace environment. Itsafeguards employees' legitimate rights and interestswhile establishing a high-quality talent development sys-tem. Through supporting career advancement, prioritizingemployee well-being, and enhancing workplace fulllment,the organization strives to cultivate a profound sense ofbelonging among its workforce, ultimately achieving mutu-al growth for both employees and the enterprise.

Human-CentricCommitment

◎Safeguarding Employees' LegitimateRights and Interests◎Employee Training and Development◎Occupational Health and Safety◎Social Contribution

Responded Topics

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Safeguard Employees' Rights

The Company strictly adheres to relevant laws and regulations, including theLabor Law of the People's Republic of Chinaand theLabor Contract Law of the People's Republic of China, carrying out labor governance in com-pliance with legal requirements to establish a standardized employment management system. This compliance framework ensures lawful and orderly operations in employee administration while protecting workers' funda-mental rights and interests. The Company adheres to the systematic development of its human resources management framework, establishing institutional documents such as theEmployee Handbook,Child Labor ProhibitionPolicy, andForced Labor Prevention and Freedom of Employment Regulations. These policies standardize employee conduct, rigorously prohibit child labor and coercive labor practices, and comprehensively safeguard workers'rights and interests. During the Reporting Period, no child labor or forced labor incidents occurred in the Company, and the labor contract signing rate was 100%.The Company upholds the principles of “merit-based recruitment and selective hiring” principles, formalized through itsRecruitment Management Policy to standardize employment procedures. Functional departments period-ically assess workforce demands based on actual stafng conditions and organizational strategic plans, systematically determining departmental stafng quotas and talent requirements. These evaluations are documented in

Human Resource Requisition Formsfor tiered approval processes. The HR Department subsequently conducts needs assessments and authorization reviews in accordance withPosition Descriptionsand approved requisitionforms, thereby implementing structured recruitment activities.As of the end of the Reporting Period, the Company had1,459 employees.

By gender

52.16%

47.84%

By age

37.15%

42.22%

20.63%

By academicqualication

17.82%

1,065

73.00%

0.82%

8.36%

By job

level

1,364

93.49%

5.35%

1.16%

8.64%

1,028

70.46%

MaleFemaleUnder 30 (exclusive) years old

30 (inclusive) to 40 (exclusive) years old40 years old or above

Master’s degree or aboveBachelor’s degreeCollege degreeBelow associate degree

Non-managerial StaffSenior managementMiddle management

ProductionTechnologyAdministration

SalesFinance

14.46%

5.35%

1.09%

Byprofession

Recruitment and Employment

Governance

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AppendixThe Company actively diversies its recruitment channels through collaboration with local human resourcesand social security authorities, regularly participating in government-organized ofine job fairs and onlinelive-streamed recruitment events. It implements cloud-based campus recruitment platforms for digital hiringcampaigns and engages in seasonal campus recruitment activities at universities during autumn and springsemesters. During the Reporting Period, the Company participated in or held 8 campus recruitment activities,covering 8 institutions in Guangdong, Hunan, and Hubei provinces.

Invitation to Hunan Financial and Industrial Vocationaland Technical College Career Fair for the Class of 2025

“Searching for Talents in Hanjiang, Adding Wings to the Tigers”-- 2024 Humen-Wuhan Campus Recruitment Matching Eventhosted by Humen Human Resources and Social Security Bureau

Statistical scope: Newly recruited employees include both active and separated employees recruitedwithin the year, excluding those who left within 7 days of joining.

The Company recognizes international norms and guidelines such as theUniversal Declaration of HumanRightsand theTen Principles of the United Nations Global Compact. It has established the Anti-Discriminationand Prohibition of Employee Abuse Regulations and the Human Rights Policy Statement to implement thesecommitments. These policies ensure equitable opportunities for employees across all stages of employment,including recruitment, compensation, training, promotion, benets, and termination. The Company strictlyprohibits discriminatory practices based on race, religion, region, gender, age, physical ability, or height andactively fosters a diverse, equal, and inclusive workforce.

The Company places a high priority on safeguarding the rights and interests of female employees, strictlyadhering to theLaw of the People's Republic of China on the Protection of Rights and Interests of Women.By legally guaranteeing the implementation of maternity leave, lactation breaks, and other statutory protec-tions for female workers, the Company ensures full compliance with wage standards when providing com-pensation during these periods. Through these efforts, the Company fosters an inclusive environment thatstrengthens female employees’ sense of belonging and trust.IMeasures for the Protection of Female Rights and Interests◎It is strictly prohibited to assign female workers to perform tasks that endanger physical andmental health, jeopardize reproductive health, or pose safety risks;◎It is strictly prohibited to require pregnancy tests or contraceptive use as conditions of employ-ment, to reduce base salaries, or to terminate employment contracts during female employees'pregnancy, maternity leave, or breastfeeding periods.

Number of new employees1,003 , in whichSocial recruitment

personsOn-campus recruitment

persons

During the Reporting Period

The Company had

disabled employees, 154ethnic minority employees, in which

in themanagement.During the Reporting Period

14.74%

of the Company's management were female,

employees enjoyed maternity leave,and

employees enjoyed parental leave.During the Reporting Period

Diversity, Equality, and Inclusion

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Employee Birthday PartyThe Company hosts a monthly birthday cele-bration for employees celebrating birthdays inthe current month. Each employee participatesin a dedicated celebration ceremony and re-ceives a personalized gift, fostering a strongersense of belonging and happiness among staff.

The company cares about its employees, attaches importance to the balance between employees' work andlife, and organizes various employee activities, which enhances employees' happiness and sense of belong-ing to the enterprise and increases the company's cohesion.

On November 27, 2024, the Company disclosed the2024 Employee Stock Ownership Plan (Draft)and2024 Employee Stock Ownership Plan Management Measures, proposing to implement an employeestock ownership program targeting directors (excluding independent directors), supervisors, senior ex-ecutives, core management personnel, key technical (business) personnel, and other eligible incentiverecipients within the Company (including consolidated subsidiaries and controlled subsidiaries). Followingapproval at the Shareholders’ Meeting, the non-trading transfer of shares was completed on January 22,2025.

Employee Stock Ownership Plan

The Company holds an employee basketballgame and provides a bonus of 30,000 yuanas an incentive. Each department selects 10people to participate, aiming to improve em-ployees' physical tness and enrich their sparetime.

Employee Basketball Game

The Company organized an outdoorteam-building activity themed “Step Out ofthe Office, Embrace Nature. " The activityled employees to Xiachuan Island via a stopat the historic Chikan Old Town. Participantsimmersed themselves in breathtaking naturallandscapes and cultural heritage throughoutthe journey, fostering a deeper connection withthe Company’s values and collective spirit.

Outdoor Team-Building

In January 2024, the Company organized a fare-well party for retired employees. Company lead-ers and personnel from relevant departmentsparticipated together to express gratitude for theretiring employees' hard work and promote thecompany's harmonious and stable development.

Retirement Sta Farewell Party

The Company adheres to the principle of distribution according to labor, establishing a Compensation Man-agement System and Performance Management System. Employee compensation is determined based onindividual capabilities, contributions, and regional living standards. Employees who deliver outstanding per-formance are awarded bonuses through a structured evaluation process. The Company has established anAll-Excellence Performance Team to ensure the effective implementation of the KSF (Key Success Factors)performance plan. Each department independently calculates monthly performance results, while the All-Ex-cellence Performance Team oversees the verication of performance-based salaries, data collection for rele-vant metrics, public disclosure of outcomes, and resolution of any disputes.

Leave Entitlements

Employees are entitledto legal holidays, paidannual leave, marriageleave, bereavementleave, maternity leave,and other holidays in ac-cordance with the law.

Living Security

Pay the five social insur-ances and one housingfund in accordance withthe law, and provide freeaccommodation and mealsfor on-the-job employees.

++Bonuses

Employees are granted performance-based incentives,such as performance awards, full-attendance bonus-es, and performance commissions, based on their jobperformance evaluations and attendance records.

Team-building InteractionRegularly organize team dinners and com-pany trips and hold a collective birthdayparty for employees every month.

Provide various allowances foremployees who have complet-ed at least one year of servicewith the organization, such asmarriage congratulatory mon-ey, a funeral subsidy, a travelsubsidy for visiting relatives,and an annual living allowance.

AllowancesEmployee Benets

Compensation and Benets

Employee Care

CASE

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Job position safetyassurance

93.08%

Timeliness and accuracy

of salary payment

97.32%

98.89%

Working environment and

working conditions

95.28%

Cross-departmentalcommunication

Items with High Employee Satisfaction（Satisfaction）

The Company continuously enriches employee communication channels and methods and conducts regularemployee satisfaction surveys. The survey content is designed from the employee's perspective and coversaspects such as work environment, behavioral etiquette, timeliness of salary payments, workload, rest andvacation time, methods to enhance recognition, internal promotions, training, daily management, and caf-eteria satisfaction. The Company listens to employees' opinions, actively seeks measures to address theirreasonable demands, and continuously improves employee satisfaction.The Company respects and safeguards employees' rights to exercise democratic management. It continuous-ly improves the employee democratic management system led by the Labor Union Committee of the Com-pany and streamlines multi-dimensional communication channels. It ensures timely collection, processing,response, and reporting of employee feedback and suggestions. The Company advocates equality in dignityand obligations across all hierarchical levels, emphasizing that every employee is responsible for autono-mously participating in corporate governance. The Company respects employees’ rights to self-organize andform groups to collectively express, advance, pursue, and safeguard their shared interests, upholding theirfreedom of peaceful assembly and association. Simultaneously, it protects employees’ freedom of speech byestablishing platforms for diverse viewpoints and actively encouraging staff to contribute ideas for WCON’sdevelopment.

Employee Democratic GovernanceEmployee Satisfaction Surveys

Following theTrade Union Law of the People’s Republic of China, theConstitution of the Chinese Trade Un-ions, and relevant regulations, the Company established a labor union committee composed of employeerepresentatives in 2021. This body organizes employees to lawfully exercise democratic participation, deci-sion-making, management, and oversight, safeguarding their rights to information access, involvement ingovernance, and supervisory authority—core democratic entitlements under Chinese labor frameworks.

Establish Labor Union Committee

The Company encourages employees to report on the Company's management drawbacks and employees'improper behaviors at work. Employees can submit written appeals to the human resources department orlodge appeals through ofcial accounts, emails, telephone calls, etc. The persons responsible for correspond-ing to the channels will handle the appeals according to the process specications and promptly respondto the complainants' demands. For complaints that do not require investigation and evidence collection, theinvestigation committee needs to reply to the complainants with the results within one working day. Forcomplaints involving investigation and evidence collection, the investigation committee needs to reply to thecomplainants with the results within seven working days after clarifying the situation. The Company handlesall reasonable demands from employees impartially and severely punishes false accusations such as takingcredit for others' achievements and retaliation.

Employee Grievance Mechanism

71.10%

of employees were union members.The committees convened

meeting reviewed and approved

proposal.During the Reporting Period

Governance

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Low-Carbon Operationsfor a Green World

Innovation-Driven

TransformationAbout theReport

AboutWCON

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2024 Environmental, Social, andGovernance Report

Message fromChairman

Appendix

Unblock Development Channels

The Company positions employee training as a core strategy for its development, establishing management policies for employee training, continuously rening the training system framework, and empowering employees togrow professionally. Department-level units formulate annual employee training plans based on the Company's talent development strategy, and personalized training needs across positions, creating systematic training pro-grams to enhance employee competencies and professional technical capabilities continuously.The Company incentivizes employees to develop internal training materials aligned with their work experience by offering monetary rewards proportionate to the length of such materials. An internal mentorship program fa-cilitates talent cultivation and retention for new hires or employees undergoing role transitions. This initiative customizes career development pathways while enhancing mentors' communication skills, managerial capabilities,and sense of honor, achieving mutual professional advancement.

Training Framework Development Plan

New Employee

Orientation

Post QualicationTraining

Functional

Training

ManagementCompetency Training

Quality System

Training

Internal LecturerTraining

SafetyTraining

Onboarding GuidanceOperation Process

Training, OperationInstruction ManualTraining

Quality InspectionPersonnel Training,Manufacturing Personnel

Training, MarketingPersonnel Training,Procurement PersonnelTraining

Frontline SupervisorTraining, Mid-levelManagement Training,Senior ExecutiveLeadership Development

Quality Skills andConcepts Training, ISOTraining

TTT (Basic, Intermediate,Advanced), TWI JobInstruction, Training Toolsand Methods

Industrial Safety Training,Occupational Health andSafety System Training,Hygiene and SafetyTraining, Process SafetyManagement Training

Employee Training System

The Company prioritizes employee career development, providing equal promotion opportunities and clearcareer advancement pathways for all staff. The Company establishes a hierarchical promotion assessmentsystem by implementing internal grade advancement mechanisms across all positions to standardize em-ployee promotion workows and conducts regular evaluations based on predened assessment cycles andgrade-specic criteria. It aims to motivate employees to continuously enhance their professional knowledgeand comprehensive capabilities through structured career development paths. At the same time, the Compa-ny formulates a job transfer management system. When the Company needs to transfer relevant positionsdue to organizational expansion, changes, or development, excellent and suitable employees are selectedinternally through self-recommendation and department recommendation.

Employee Promotion Mechanism

There were

internal employee training sessions, covering100%of employees. Theinvestment in external training was163,400yuan, and the total training duration was14,129 hours.

During the Reporting Period

Governance

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Low-Carbon Operationsfor a Green World

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Appendix

Health Protection Network for Public Safety

The Company profoundly recognizes the importance of workplace safety and occupational disease prevention and strictly implements legal requirements, including theLaw of the People's Republic of China on Work Safety

and theLaw of the People's Republic of China on the Prevention and Control of Occupational Diseases. To fulll our commitments, the Company has established a comprehensive occupational disease prevention and controlaccountability framework, developed 12 institutional documents, such as theOccupational Disease Prevention and Control Responsibility Systemand theOccupational Health “Three Simultaneities” Management System forConstruction Projects, and formed an occupational health management team and assigned dedicated personnel to implement these measures. The objectives are to resolve, control, and eliminate occupational hazards, pro-tect employees’ health and legal rights, improve production and working environments, and promote the Company’s sustainable economic development. At the same time, according to the internal Environmental/OccupationalHealth and Safety Manual, the Company establishes an EHS Safety Committee, which is responsible for ensuring the continuous improvement of all employees' awareness of occupational health and safety and ensuring thetimely and orderly procedures for notication, command, control, rescue, evacuation, etc. in emergencies.

Achievements in 20242024/2025 Targets

To ensure employees' safety, reduce or even eliminate the occurrence of work-related injuries, and enhancethe safety responsibility awareness of each department, the Company formulates theControl Procedure forHandling Work-related Injury Accidents, purchases work-related injury insurance for all employees, conductspre-job training on relevant knowledge for each employee. Employees engaged in special types of work mustundergo job skill training, pass the assessment, and hold valid certications for their positions. Personnel ofall trades are prohibited from cross-operating or using machinery/equipment from other trades without au-thorization. Supervisors may temporarily reassign job duties only after ensuring full safety compliance.Chief CommanderWork Safety Manager

Evacuation Group

Communication

Group

Security GroupMedical Aid GroupFireghting Group

Achieved

Major Work-related

Injury Accidents

Achieved

OccupationalDiseases

Safety Management System

Safety Management Objectives

Percentage of special operators licensed:

100%Total investment in work-related injury insurance was475,900 yuan.

During the Reporting Period

Governance

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Low-Carbon Operations

for a Green World

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Report

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Appendix

The Company prioritizes preventive control of occupational diseases at the source, continuously conductshazard identication and occupational disease prevention education, and implements preventive protectionmeasures and standardized work practices for employees in high-risk positions. The Company entrusts ac-credited occupational health service agencies for workplaces with occupational hazards to conduct annualmonitoring of occupational hazard factors and triennial occupational hazard status evaluations. During thereporting period, the Company engaged an accredited third-party institution to monitor occupational hazardfactors in the workplace. It implemented corrective actions to address non-compliant factors based on themonitoring results.

To further strengthen employees' awarenessof re safety, test the ability of all employees,management personnel, and volunteer fire-fighters to respond to sudden fire incidents,enhance staff capabilities in re extinguishing,evacuation, self-rescue, and escape, as wellas improve management's organizational, co-ordination, and command skills at re scenes,the Company organized a comprehensive redrill across the entire factory on November 29,2024.

The Company rigorously enforces safety production management and occupational disease prevention &control following regulatory requirements, safeguarding employees' physical/mental well-being and work-place safety while striving to establish an accident-free and injury-free operational environment.

The Company attaches importance to the safety management of contractors. The main external contractorsare security services and staff cafeteria operations. The Company has established theSecurity ManagementRegulationsand theCafeteria Operating Procedures, which explicitly allocate safety accountability to con-tracted parties. The Company conducts contractor-associated risk assessments through systematic hazardidentication and control processes. Contractors must perform competency-based emergency response drillsto maintain operational readiness for incident management.

Fire Drill

Safety Risk Management

Occupational Disease Hazard Detection

The Company proactively conducts workplace safety hazard identications, establishes clear risk assessmentand rectication protocols, and implements timely corrective actions to ensure a safe and stable workingenvironment for employees. The Company has implemented a multi-frequency, categorized hazard man-agement system with hierarchical controls across the entire plant. This system enforces daily, weekly andmonthly inspections to ensure comprehensive risk mitigation. During the Reporting Period, the safety hazardinspection and rectication rate was 100%

Safety Hazard AssessmentContractor Safety Management

The Company has established theEmergency Rescue and Management System for Occupational DiseaseHazardsin compliance with relevant laws and regulations. This system standardizes emergency responseand management procedures during major occupational hazard incidents, ensuring effective control andmitigation of various occupational disease-related accidents to minimize harm to personnel. The Companyadheres to the principle of “rapid response and proper management” by regularly conducting re drills andother emergency safety exercises. These initiatives aim to enhance employees' familiarity with emergencyprocedures and strengthen their comprehensive capabilities in responding to accident risks, thereby improv-ing overall workplace safety preparedness.

Safety Emergency Drills

The Company proactively implements various comprehensive protective measures to mitigate occupationalexposure risks, including issuing certied PPE (personal protective equipment) to employees in high-risk posi-tions. The establishedMaintenance and Overhaul System for Occupational Disease Prevention FacilitiesandtheManagement System for Occupational Disease Prevention Supplies ensure continuous operation of occu-pational disease prevention equipment and emergency equipment. Giving priority to employees’ health, theCompany mandates annual occupational health surveillance for personnel exposed to workplace hazards.The 2024 monitoring program covered a total of 351 at-risk workers through required assessments and iden-tied zero new occupational disease cases.

Occupational Disease Prevention

The detection rate of occupational disease hazards:

100%The pass rate of occupational disease hazard detection:

100%The coverage rate for safety risk protection training:

100%

During the Reporting Period

Safety Management Measures

CASE

Governance

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for a Green World

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TransformationAbout theReport

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Message from

Chairman

Appendix

In November 2024, the Company appointed Professor Tan Feng, a nationally accredited veteran TCM(Traditional Chinese Medicine) expert, as its Chief Wellness Consultant. This engagement included cus-tomized health education workshops for designated employee cohorts.

The Company has established a comprehensive social responsibility vision centered on spearheading con-nector technology innovation, fueling regional economic growth, and broadly enhancing societal well-being.Guided by its long-term development strategy, the Company dynamically allocates resources across criticalareas encompassing regional economic revitalization, industrial advancement, educational/cultural develop-ment, healthcare improvement, environmental sustainability, and diversied philanthropic initiatives, whichare essential directions for fullling the Company’s social responsibilities and making public welfare invest-ments.The Company upholds the harmonious integration of economic returns and social value creation, rigorouslycomplying with national statutory requirements and aligning with governmental policy orientations. TheCompany is committed to generating quality employment opportunities by maintaining operation integritywithin legal frameworks and fostering sustainable, well-structured growth for regional economic ecosystems.The Company will continue to fulll its social responsibilities steadfastly. By continuously enhancing brandinuence and industry leadership, the Company is committed to creating more excellent value for all stake-holders, including all sectors of society, investors, and employees.

Social Engagement for a Sustainable FutureHealth Training

The Company has established theHazardous Chemicals Management Regulationsto dene the inventory ofhazardous chemicals. The Human Resources Department is responsible for chemical storage managementand daily supervision, while the chemical usage department oversees the operational management of chemi-cal handling. All hazardous chemicals are required to have standardized Material Safety Data Sheets (MSDS)documentation. Employees must strictly adhere to established procedures when handling hazardous chem-icals, with designated supervisors monitoring operations to prevent violations. In the event of potential haz-ards, employees must immediately implement emergency protocols to eliminate or minimize workplace risks.

Management of Hazardous Chemicals

The Company conducts annual safety education and training programs covering occupational safety knowledge,workplace safety protocols, and safety management competency development. Employees must demonstratecompetency through written exams to enhance their safety awareness, thereby strengthening the Company'soverall safety governance framework.Cultivation of Safety Culture

There were

safety education and training sessions, with3,300participants, totaling

41.50

training hours, achieving a100% coverage rate for safety education.

During the Reporting Period

CASE

Sustainable DevelopmentGovernance

Strengthen Complianceto Solidify Governance

Low-Carbon Operationsfor a Green World

Innovation-DrivenTransformation

Human-CentricCommitmentAbout the

Report

AboutWCON

Appendix2024 Environmental, Social, andGovernance Report

Message fromChairman

AppendixKey Performance Form

MetricsUnit202220232024Total OperatingIncome

RMB 10,00048,029.2248,663.4053,417.23Net Prot Attributableto Shareholders of the

Parent Company

RMB 10,00011,203.2613,035.468,546.64Total TaxesRMB 10,0001,491.922,677.692,688.32

MetricsUnit202220232024Remuneration for directors,supervisors, and senior managers

RMB 10,000360.67420.58395.50Number of legal training sessionsTimes111Duration of Ofine Legal Training forDirectors, Supervisors, and Senior Executives

小时8888104Total participants in legal training

programs

Person111111

The amount involved in litigation orsignicant administrative penalties caused

by the Company's unfair competition

behavior during the Reporting Period

RMB 10,000000Signing Rate of Integrity and OtherRelated Business Ethics Agreements

%100100100Total instructional hours dedicated toanti-commercial bribery and anti-graftcompliance training delivered to board

members

Hour--6Total instructional hours dedicated toanti-commercial bribery and anti-graftcompliance training delivered to the

management

Hour--80Total instructional hours dedicatedto anti-commercial bribery and anti-graft compliance training delivered to

employees

Hour--238Number of performance briengs heldTimes-22Number of company open days held

Times221Number of interactions with investors

at irm.cninfo.com.cn

Times7668105Reply rate on irm.cninfo.com.cn%10098.53100Number of periodic reports disclosed

externally

Copy166Number of interim announcementsdisclosed externally

Copy376154Note 1: Including collective investor engagement day initiatives, and corporate visitation programs

MetricsUnit202220232024

Economic Performance

Governance Performance

Governance

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for a Green World

Innovation-Driven

Transformation

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Appendix2024 Environmental, Social, andGovernance Report

Message fromChairman

MetricsUnit202220232024Total environmental investmentRMB 10,00010.0015.00240.20Compliance rate observed in pollutant

monitoring

%100100100Synchronized operation rate of

environmental facilities

%100100100The compliance rate of “threesimultaneities” in environmentalprotection for construction projects

%100100100Number of environmental training

sessions

Times111414Number of participants inenvironmental training

Person-times313405525Total hours of environmental trainingHour344.5458689.5

GasolineTon4.884.544.36Total purchased electricitykWh6,747,7006,993,3548,069,948Total emission of greenhouse gases

tCO

e3,222.703,373.184,336.63Direct greenhouse gas emissions

(scope 1)

tCO

e41.6575.8173.93Indirect greenhouse gas emissions

(scope 2)

tCO

e3,181.053,297.374,262.71

Note 1: Scope 1 GHG emissions are calculated based on default values of common fossil fuel characteristicparameters issued by the National Development and Reform Commission of the People's Republic of China; Scope2 GHG emissions are calculated based on average carbon dioxide emission factors for China's regional power gridsissued by the National Development and Reform Commission of the People's Republic of China.

Total water consumptionTon45,68851,39450,682

Waste gas emissionsTon0.250.300.66Wastewater dischargesTon56,457.3963,508.3076,748.79Quantity of general waste generatedTon333Recycling rate of general waste%505050Quantity of general waste disposed ofTon333Quantity of hazardous waste

generated

Ton222Quantity of hazardous waste disposed

Ton222Waste disposal compliance rate%100100100Waste engine oilTon0.60.60.6Waste oil drumsTon0.20.20.2Domestic waste garbageTon481.8481.8481.8

MetricsUnit202220232024Environmental Performance

Governance

Strengthen Complianceto Solidify Governance

Low-Carbon Operations

for a Green World

Innovation-Driven

Transformation

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Appendix

2024 Environmental, Social, andGovernance Report

Message fromChairman

MetricsUnit202220232024

Percentage of contract workers%100100100Number of dispatched workersPerson000Number of part-time employeesPerson000

Total number of employeesPerson1,2031,3821,459

Including: By job levelSenior management

Person141717Middle management

Person636878Non-managerial StaffPerson1,1261,2971,364

Including: By genderFemalePerson579664698MalePerson624718761

Including: By ageUnder 30 (exclusive) years oldPerson27334261630 (inclusive) to 40 (exclusive) years oldPerson61470254240 years old or abovePerson316338301

◎ Labor Relations Management

Including: By academic qualicationMaster’s degree or abovePerson4912

Bachelor’s degreePerson5980122College degreePerson187227260Below associate degreePerson9531,0661,065

Including: By professionProductionPerson8639751,028SalesPerson546478TechnologyPerson224279211FinancePerson161716AdministrationPerson4647126Number of employees with disabilitiesPerson122Number of employees of minority

nationalities

Person155149154

MetricsUnit202220232024

Social Performance

Governance

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Appendix2024 Environmental, Social, andGovernance Report

Message fromChairman

Number of employees of minoritynationalities in the management

Person234Number of new employeesPerson8699761,003

Including: By recruitment channelSocial recruitmentPerson842957982On-campus recruitmentPerson271921The proportion of female managers%15.5814.1214.74Number of employees on maternity leavePerson374Number of employees who took

parental leave

Person136Social insurance coverage rate%999797Number of projects reviewed andapproved by the trade union

Item011Proportion of labor union members toin-service employees

%203071.10Number of cases of labor disputesItem000Employee turnover rate%41.1636.6236.69

Including: By genderFemale%53.1657.8952.11

Male%46.8442.1147.89

Including: By ageUnder 30 (exclusive) years old%39.9445.6145.3730 (inclusive) to 40 (exclusive) years old%47.1445.4947.0930 (inclusive) to 40 (exclusive) years old%12.078.276.6350 years old or above%0.580.630.91

Note 1: Director level, Note 2: Section Chief + Manager level, Note 3: Deputy Section Chief level and above

MetricsUnit202220232024Investment in employee trainingRMB 10,000--16.34Number of employee training sessionsSession231256400

Total number of persons trainedPerson1,2031,3821,459Total number of persons trainedPerson-times8,2929,98410,744Employee training coverage%100100100Total hours of employee trainingHour9,749.511,669.514,129Average training hours per employee

per year

Hour11.4711.6713.59Number of employees having successfullytransitioned or applied internally

Person199172175Proportion of internal transfers orapplications by employees

%23.4117.2016.83

MetricsUnit202220232024MetricsUnit202220232024

◎ Employee Development and Training

Governance

Strengthen Complianceto Solidify Governance

Low-Carbon Operationsfor a Green World

Innovation-DrivenTransformation

Human-CentricCommitmentAbout theReport

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Appendix

2024 Environmental, Social, andGovernance Report

Message fromChairman

◎ Innovation-Driven GrowthMetricsUnit202220232024Number of safety production accidentsCase000Number of work-related deathsPerson000Total number of work-related injuriesPerson000

Hidden danger investigation and

rectication rate

%100100100Safety education and training sessionsTimes323638

Number of participants in safetyeducation and training sessions

Person-times3,0603,2003,300Total hours of safety education and

training

Hour384741.50Coverage rate of safety education and

training

%100100100Coverage rate of safety risk protection

training

%100100100Percentage of special operators

licensed

%100100100Investment in work-related injury

insurance

RMB 10,00018.7726.647.59Coverage rate of work-related injuryinsurance for employees

%100100100Coverage rate of physicalexaminations for employees

%100100100The detection rate of occupational

disease hazards

%100100100Pass rate of occupational diseasehazard detection

%100100100

MetricsUnit202220232024Investment in R&DRMB58,904,472.1572,336,311.2464,355,742.49R&D investment as a percentage ofprimary business revenue

%12.2614.8612.05Total R&D team membersPerson224267210Proportion of R&D personnel%18.6219.3213.60

Including: By ageUnder 30(exclusive) years oldPerson70816230 (inclusive) to 40 (exclusive) years oldPerson10713110740 years old or abovePerson475541

Including: By academic qualicationBachelor’s degree or belowPerson200232176Bachelor’s degrePerson243132Master’s DegreePerson042Core technical personnel of the

Company

Person151818Total number of authorized patentsItem143167201Cumulative number of authorizedinvention patents

Item81121Cumulative number of authorizedutility model patents

Item132153168Cumulative number of granteddesign patents

Item3311Number of valid patents per million

yuan in revenue

Item0.300.340.38

◎ Occupational Health and Safety

Sustainable DevelopmentGovernance

Strengthen Complianceto Solidify Governance

Low-Carbon Operations

for a Green World

Innovation-Driven

Transformation

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Appendix2024 Environmental, Social, andGovernance Report

Message fromChairman◎ Product and Service Safety and Quality

MetricsUnit202220232024Number of risk assessments conductedTimes111

Product percent of pass%99.4199.5299.66Times of annual quality internal auditsTimes111Number of times third-party agencies

were engaged for sampling

Times111Number of products that are requiredto be withdrawn and recalled for

health and safety reasons

Case000Amount involved in accidents withsignicant safety or quality responsibilitiesrelated to products or services

RMB 10,000000Number of participants in quality

training

Person-times98105119Total hours of quality trainingHour2,3522,5202,737Number of quality training sessionsTimes242423

◎ Supply Chain Security and Sustainability

MetricsUnit202220232024

Number of suppliersUnits414141The proportion of spending onpurchasing from local suppliers was

%44.5045.0048.77Number of suppliers certied underquality management systems

Units-3939Number of suppliers certied underenvironmental management systems

Units-1515Number of suppliers certied under

occupational health and safetymanagement systems

Units-22Number of suppliers suspended due to

non-compliance

Units-00Number of prospective suppliersrejected due to non-compliance

Units-00Percentage of suppliers that havesigned theIntegrity Agreement

%100100100The number of incidents withsignicant risks and impacts on the

supply chain was

Case000◎ Protection of Customers’ Rights and Interests

MetricsUnit202220232024

Customer complaint resolution rate%100100100Number of participants in special trainingon responding to customer complaints

Person-times166230192Total hours of special training on

customer complaint response

Hour166230192Number of sessions of special trainingon customer complaint response

Times233Total sessions of responsible marketing trainingTimes243238Number of customer informationleakage incidents

Case000

◎ Data Security and Privacy Protection

MetricsUnit202220232024Number of training sessions carried outTimes111212Total investment in data securityRMB 10,000142.72.49.7Number of incidents of informationsecurity and privacy protection violations

Times000

Note: The number of suppliers is counted based on the list of qualied suppliers.

Governance

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Low-Carbon Operations

for a Green World

Innovation-DrivenTransformation

Human-CentricCommitmentAbout theReport

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Appendix2024 Environmental, Social, andGovernance Report

Message from

Chairman

Disclosure RequirementsCorresponding Sections of This Report

Response to Climate Change

Low-Carbon Operations for a Green World – Responding to

Climate Change, Implementing Low-Carbon InitiativesPollutant Emissions

Low-Carbon Operations for a Green World – Advancing EnvironmentalStewardship, Reinforcing Pollution & Waste Mitigation ControlsWaste Disposal

Low-Carbon Operations for a Green World – Advancing EnvironmentalStewardship, Reinforcing Pollution & Waste Mitigation ControlsEcosystem and BiodiversityConservation

Not InvolvedEnvironmental ComplianceManagement

Low-Carbon Operations for a Green World– AdvancingEnvironmental Stewardship, Reinforcing Pollution & Waste

Mitigation ControlsEnergy Utilization

Low-Carbon Operations for a Green World – Optimizing Energy

Management, Enhancing Resource EfciencyWater Resource Utilization

Low-Carbon Operations for a Green World – Optimizing Energy

Management, Enhancing Resource EfciencyCircular Economy

Low-Carbon Operations for a Green World – Optimizing Energy

Management, Enhancing Resource EfciencyRural Revitalization

Human-Centric Commitment – Proactive Social Engagement, Co-

building a Sustainable FutureContribution to Society

Human-Centric Commitment – Proactive Social Engagement, Co-

building a Sustainable FutureInnovation-Driven Growth

Innovation-Driven Transformation – Leveraging Innovation Catalysts,

Co-accelerating Industrial EcosystemsTechnology EthicsNot Applicable

Shenzhen Stock ExchangeSelf-Regulatory Guidelines No.17 for Companies Listed on Shenzhen StockExchange - Sustainability Report (For Trial Implementation)

Supply Chain Security

Innovation-Driven Transformation – Reinventing SourcingGovernance, Strengthening Supply Resilience & Guarantee ProvisionEqual Treatment of Small andMedium-Sized Enterprises

Not ApplicableProduct and Service Safety and

Quality

Innovation-Driven Transformation – Strengthening Quality-Centric

Foundation, Forging Premium Brand ExcellenceData Security and Customer Privacy

Protection

Strengthen Compliance to Solidify Governance – Prioritizing Data

Integrity, Fortifying Privacy SafeguardsEmployees

Human-Centric Commitment – Safeguarding Employees' Rights

and Interests, Creating a Fair WorkplaceHuman-Centric Commitment – Unblocking Development Channels

to Assist Employees' GrowthHuman-Centric Commitment – Strengthening the Health ProtectionNetwork and Reinforcing the Defense Line for Public SafetyDue Diligence

Human-Centric Commitment– Safeguarding Employees' Rights

and Interests, Creating a Fair WorkplaceInnovation-Driven Transformation – Strengthening Quality-Centric

Foundation, Forging Premium Brand ExcellenceCommunications with Stakeholders

Sustainable Development Governance - Communications with

StakeholdersAnti-commercial Bribery and Anti-

corruption

Strengthen Compliance to Solidify Governance – ReinforcingCompliance Governance, Fortifying Ethical BedrockAnti-unfair Competition

Strengthen Compliance to Solidify Governance – ReinforcingCompliance Governance, Fortifying Ethical BedrockProtection of Shareholders’ Rights

and Interests

Strengthen Compliance to Solidify Governance – StrengtheningInvestor Relations Management, Protecting Shareholder RightsCorporate Governance Compliance

Strengthen Compliance to Solidify Governance – StandardizingCorporate Governance, Promoting Prudent OperationCompliance and Risk Control

Strengthen Compliance to Solidify Governance – StandardizingCorporate Governance, Promoting Prudent OperationStrengthen Compliance to Solidify Governance – ReinforcingCompliance Governance, Fortifying Ethical BedrockESG GovernanceSustainable Development Governance

Metric Index

Sustainable DevelopmentGovernance

Strengthen Complianceto Solidify Governance

Low-Carbon Operationsfor a Green World

Innovation-Driven

Transformation

Human-CentricCommitmentAbout the

Report

AboutWCON

Appendix2024 Environmental, Social, andGovernance Report

Message fromChairman

Thank you for reading the2024 Environmental, Social, and Governance (ESG) Report of WCON Electronics (Guangdong) Co., Ltd. We greatly value and eagerly anticipate your opinions and suggestions on oursustainability efforts and sustainable development management. Your feedback is essential for continuously improving and enhancing our sustainability management practices. We kindly invite you to complete thequestions in the “Feedback” section and share your responses through the modes provided below. Once again, thank you for your strong support of our sustainability initiatives!

1. Your overall assessment of this year’s ESG report:

□ Excellent □ Good □ Average □ Below Average □ Poor

2. Do you think the information disclosed in the report is accurate, clear, and complete?

□ Excellent □ Good □ Average □ Below Average □ Poor

3. Do you nd the report readable?

□ Excellent □ Good □ Average □ Below Average □ Poor

4. Do you think the report comprehensively reflects the Company’s significant

economic, societal, and environmental impacts?

□ Excellent □ Good □ Average □ Below Average □ Poor

5. What is your evaluation of the report’s logical reasoning, structural arrangement,

and layout design?

□ Excellent □ Good □ Average □ Below Average □ Poor

6. Which topics in this year’s ESG report most captured your attention?

7. What additional information would you like to see in the report?

8. Your opinions on our ESG report or sustainable development work and sustainable

development management.

Tel.: 0769-85358915Email: cwdg@wcon.comCompany address: No. 15 Wenming Road, Daning Community, Humen Town, Dongguan City,Guangdong Province

Which of the following stakeholders is most relevant to you about WCON?

□Employee □Customer □ Shareholder and Investor □Supplier □Government and Supervisory Agency □ Industry Association or Scientic Research Institution

□Social Organization, Media and the Public □Others (please specify)

Feedback

Governance

Strengthen Complianceto Solidify Governance

Low-Carbon Operations

for a Green World

Innovation-DrivenTransformation

Human-CentricCommitmentMessage from

Chairman

Appendix

爱股网

维峰电子(301328)_公司公告_维峰电子：2024Environmental,Social and Governance(ESG)Report