This Report

This Report discloses in detail the practices and performance of Jack Technology Co., Ltd. in the areas of economic,environmental, social and corporate governance responsibilities in 2024, aiming to communicate e?ectively with stakeholdersand systematically respond to their expectations and requirements.

This Report is an annual report, covering the period from January 1, 2024 to December 31, 2024.Reporting period

The data sources used in this Report include original data from the Company's actual operations, public data from governmentdepartments, annual ¬¤nancial data, internal relevant statistical reports, third-party questionnaires, and third-party evaluation interviews.The ¬¤nancial data in this Report is in RMB. In case of any inconsistency with the ¬¤nancial report, the ¬¤nancial report shall prevail.

Data description

PeriodThe period covered is from January 1, 2024 to December 31, 2024. To enhance the comparability and forward-looking nature ofthis Report, some contents are appropriately extended to the previous and subsequent years.

Reliability assuranceThe Company guarantees that the contents of this Report are true, accurate and complete, and are free of any false records,misleading statements or major omissions.

Scope

This Report discloses the information on ful¬¤llment by Jack and its subsidiaries of their economic, social, environmental andcorporate governance responsibilities, with relevant typical cases coming from a?liates of the Company.

Title descriptionFor the convenience of expression and reading, "Jack Technology Co., Ltd." is also referred to as "Jack", "the Company" or "we" in thisReport.

Preparation basisGuidelines No.14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies - Sustainability Report (for TrialImplementation)United Nations Sustainable Development Goals (SDGs)Global Reporting Initiative Standards (GRI Standards) of Global Sustainability Standards BoardGuidelines for China's Corporate Social Responsibility Reporting (CASS-ESG 6.0) of Chinese Academy of Social SciencesGuidance on Social Responsibility Reporting (GB/T 36001-2015) of China National Institute of StandardizationISO 26000: Guidance on Social Responsibility (2010) of International Organization for Standardization

Access method

This Report is available for your reading in electronic form. You can visit the Company's o?cial website (https:/www.chinajack.com) orthe website of Shanghai Stock Exchange (www.sse.com.cn) to access it. In case of any questions or suggestions about this Report,please send an email to IR@chinajack.com or call 0576-88177757

AI

0201

This Report

Message from the Chairman

The year 2024 witnessed the complex and volatile global economic situation, increasingly ¬¤erce market competition, andcontinuous breakthroughs in technological innovation. In such an era, Jack has always been ¬¤rm in its mission that "intelligentconnection for total solution grants intelligent garment manufacturing unlimited possibilities". Driven by innovation, withintelligent manufacturing as the core and sustainable development as the goal, Jack has promoted the industry towardshigher quality, higher e?ciency and more intelligence. Faced with the trend of global industrial chain restructuring, we havecontinuously optimized management models, deepened global supply chain collaboration, improved production e?ciency,strengthened green manufacturing, and worked with partners in a more open manner to jointly create a sustainable intelligentmanufacturing ecosystem.Innovation breakthroughs: build corecompetitiveness

Technological innovation is the core driving force forthe Company's development. In 2024, we continuedto develop key areas such as intelligent sewing, digitalfactories, and automated production lines. Throughthe hot product strategy, we successfully launchedflagship products such as "A.M.H" and "Urus", leadingthe garment manufacturing industry into the era ofintelligent quick response. We continued to accelerateSKU streamlining, improved R&D efficiency, optimizedproduct structure, and promoted the development of theCompany's products towards high-end, intelligent, andflexible. Meanwhile, we expanded into new businessareas such as software and intelligent warehousing,and accelerated the layout of cutting-edge technologiessuch as humanoid robots, injecting new impetus into theCompany's long-term growth.In terms of management improvement, focusing onend-to-end business optimization, we accelerated theCompany's digital transformation, and improved supplychain collaboration e?ciency. At the same time, relyingon Business School, we strengthened managementsystem innovation, promoted management upgrades ofupstream and downstream companies in the industrialchain, and empowered partners, to jointly create first-class comprehensive competitiveness of the industrialchain.Supply chain optimization: help industrycollaborative developmentA strong industrial chain system is the cornerstone of theCompany's stable growth. In 2024, we comprehensively

deepened the reform of the industrial chain, optimizedresource allocation through end-to-end high-qualitymanagement, and promoted the localization, intelligenceand standardization of core components, to enhancethe stability and efficiency of the industrial chain. Interms of industrial chain collaboration, we continued tooptimize the global procurement system, strengthenedpartnerships, and built an efficient, flexible andsustainable industrial ecosystem with higher qualitystandards and faster response speeds. With a zero-defect quality management system, we enhanced qualityawareness, and optimized manufacturing processes, toensure that product quality reaches the world's leadinglevel.Meanwhile, we actively improved the service systembased on customer needs, to provide more competitivesolutions for global garment manufacturers. We furtherstrengthened localized operations overseas, improvedservice capabilities in key markets such as Bangladesh,Cambodia, and Vietnam, optimized the logistics network,improved delivery efficiency, and helped customersreduce costs and increase efficiency, enhancing theirmarket competitiveness.Green manufacturing: practice sustainabledevelopmentLow carbon and environmental protection have becomeimportant trends in the global manufacturing industry. In2024, we continued to promote green manufacturing,comprehensively optimized production processes,improved energy efficiency, and reduced carbonemissions, contributing to the sustainable developmentof the industry. We carried out photovoltaic powergeneration projects, achieving 17.5015 million kWh

of electricity generation throughout the year, reducing14,500 tons of carbon dioxide equivalent, and e?ectivelyreducing the Company's environmental impact. Inaddition, we actively adopted non-toxic and harmlessgreen raw materials and environmentally friendly newmaterials, and accelerated green technology innovationsuch as green design, energy-saving manufacturing, andrecycling, realizing a win-win situation of economic andenvironmental bene¬¤ts.Responsibility-driven leadership: build acollaborative ecosystemThe success of a company is not only about commercialvalue, but also about social responsibility. Jack alwaysadheres to the development concept of people firstand value sharing, actively practices corporate socialresponsibility, and promotes the fair development ofsociety and the healthy growth of the industry. In 2024,we continued to deepen the "¬¤lial piety culture". We notonly engaged in public welfare undertakings throughthe Zhejiang Filial Piety Sewing Foundation, but alsoactively leveraged our own advantages to actively carryout a number of social responsibility projects such asrural revitalization, talent cultivation, and educationalassistance, conveying the Company's warmth andcontributing to the sustainable development of society.Meanwhile, we were committed to building a win-win industrial ecosystem. We worked with partnersto promote technological innovation and intelligentmanufacturing upgrades, so as to enhance the overallcompetitiveness of the industry, and contribute tothe high-quality development of the global garmentmanufacturing industry.Looking forward to the future: work together tocreate brillianceThe year of 2025 is a critical year for Jack to achieveits goal of "Surpassing RMB 10 Billion, and thenAccelerating Toward RMB 100 Billion", and a newstarting point for promoting globalization, intelligence andsustainable development strategies. In the future, Jackwill continue to deepen the Six Core Commitments, fullypromote the Five Critical Campaigns, and acceleratethe promotion of the three major growth curves, namely,

H1 intelligent single machine, H2-1 digital intelligent total solution, H2-2green digital intelligent total solution, and H3 AI unmanned intelligent totalsolution, driving the Company to a new stage of intelligence, digitalization,and greening.We will keep in mind the customer-centric approach, solve users' painpoints and industry problems, focus on creating hot products, continueto innovate product categories, accelerate high-end breakthroughs, startwith the end in mind, act with unwavering resolve to honor our users anduphold our industry, and move towards comprehensive and high-qualitydevelopment through value marketing. The hardest road is the road tovictory! Standing at a new starting point, we are willing to work hand inhand with global customers, partners, suppliers and all sectors of societyto jointly promote high-quality and sustainable development of the industryand create a more brilliant future!

0403

Message from the Chairman

Jack

Jack Technology Co., Ltd. (stock code: 603337), founded in 1995, isone of the companies with the largest production and sales scale andthe strongest comprehensive strength in the global intelligent sewingequipment industry. The Company is the industry's only one with theintelligent manufacturing software system integrating PDM, APS, MES,WMS, and artificial intelligence. The Company is a service providerof intelligent total solutions for intelligent garment manufacturing thatintegrates software and hardware such as intelligent warehousing ofclothing fabrics and accessories, intelligent cutting, AI scheduling andhanger system, intelligent sewing, intelligent sorting, and digital ¬¤nishedproduct warehousing. The company has more than 8,000 dealersworldwide, and a marketing network covering more than 170 countries andregions around the world, and serve many ¬¤elds such as garment, shoe,luggage, furniture, leather, auto, and aviation.

Jack is one of the global listed companies with the largest production and sales volume and thestrongest comprehensive strength in the global intelligent storage and production equipment industry;the Company has more than 8,000 channels, and more than 600 suppliers in more than 170countries; its global sales of industrial sewing machines have been ranked ¬¤rst for 14 consecutiveyears since 2010, export volume ranked ¬¤rst in the industry since 2011, and global sales ranked ¬¤rstin the industry since 2020*Global salesranks ¬¤rst inthe industry for14 consecutive

years

Jack has established the world's largest smart factory in the intelligent storage and productionequipment industry, invested RMB 100 million to build the world's ¬¤rst intelligent production line formachine casings, and explored intelligent solutions for the entire sewing manufacturing process. TheCompany empowers manufacturing with AI, builds a full-scenario digital platform for enterprises, andcontinuously meets customer needs.Empowerintelligentsewing machine

manufacturingwith the digital

platform

Jack recruits local talents from all over the world, carries out customized training, and organizesemployees to come to China for training and exchanges on a regular basis, helping employeesimprove their professional skills. At the same time, the Company builds a comprehensive incentive3+3 system to improve the salary competitiveness of overseas employees in all respects. TheCompany also sets up an internal promotion channel for overseas talents and provides mentorguidance for employees to help them grow in their careers.Attach greatimportance tothe cultivationand retention of

global talents

In terms of R&D innovation, Jack insists on long-term high R&D investment; the Company cooperatesin innovation with well-known universities, technology and innovation-based enterprises, and leadingcustomers to continuously improve comprehensive R&D capabilities and iterate new products; theCompany owns 3,254 valid patents and software copyrights, far leading the industry in terms ofpatent holdings.

Long-terminvestment inR&D, industry-leading patents

Jack has pioneered the concept of strategic suppliers in the industry, and closely integrated theCompany's overall development strategy with strategic suppliers. Through digitalization andmanagement output, the Company continuously empowers the supply chain, improves suppliers'intelligent manufacturing and business management levels, and builds a supply chain ecosystem.Continuously

empowersuppliers to builda supply chain

ecosystem

Jack acquired the world-renowned benchmark companies including Germany's Bullmer andTOPCUT, in 2009, and successively acquired several industry-leading companies such as Italy'sMaica and Vibemac from 2017 to 2020, obtaining a number of world-leading technologies; theCompany realizes R&D linkage among Germany, Italy and China, and builds a global technologyplatform, helping the Company develop rapidly.

Achieve great

results ininternational M&A,and promotedevelopment

throughcollaborative R&D

Jack insists on the customer-centric approach, deeply gains insight into customer needs, graspsindustry trends, strengthens joint innovation with major customers, focuses on creating hot products,promotes the digital transformation of the garment industry, and empowers new quality productiveforces.Build an industrybenchmarkto help thetransformationof intelligent

garmentmanufacturing

Company pro¬¤le

Company pro¬¤le

Outstanding performance

The Company hasmore than

8,000

dealers worldwide

Marketing network coversmore than

countries andregions around the world

* Source from: Research of Frost & Sullivan, global and China sewing machinery associations, and industrial sewing product data disclosed by sewingcompanies

0605

Jack

Development history

Internationalization stage (2004-2009)

Globalization stage (2010-2018)

Global leadership stage (2019-present)

International trade stage (1995-2003)

1995Taizhou Feiqiu Sewing Machine Co., Ltd. wasestablished1996

The ¬¤rst baby overlocker metalworking production linewas put into operation

1999

The ¬¤rst self-developed overlocker was successfullylaunched. The "three-day and three-night" meeting onenterprise management transformation was held

2000

Two modern factories were completed

2001

"Feiqiu" was o?cially renamed "Jack"Jack trademark was successfully registered

2003

New Jack Company, the Company's predecessor, wasestablished

2013

Comprehensive strength ranked ¬¤rst in the industry.The construction of the headquarters at Jiaojiangstarted

Relocation of headquarters in HangzhouUrus, the ¬¥agship hot product, was released globallyObtained the certi¬¤cation of "No.1 in Global Sales for 14Consecutive Years"

2024

2002

The ¬¤rst national dealer meeting was held inYandangshan Chaoyang Manor Hotel, setting aprecedent in the industry

2015

A4 led the industry into the "talking" eraThe industry's ¬¤rst intelligent production line waso?cially launched in Jack

A.M.H was released globallyJack was rated as a national green factory

2023

2007

The construction of Jack Linhai Industrial Park o?ciallystarted

2017

A-share listingAcquired Italy's Maica

Won the title of Future Factory in Zhejiang Province

2022

2009

Acquired Germany's TOPCUT and Bullmer, enteringthe pre-sewing ¬¤eld Exclusively sponsored the "AnnualAward for China Garment Brand"

2018

Acquired Italy's VibemacAcquired Anhui Jieyu, entering the shoemaking ¬¤eldThe foundation stone for Jack Smart Factory was laidEntered the intelligent total solutionJack Sewing Machine Co., Ltd. was renamed Jack TechnologyCo., Ltd.

2021

2011

Jack took an invincible lead in global sales

2019

Entered the intelligent hanger system industryJack moved its headquarters from Xiachen factory toJiaojiang factory

Entered the intelligent fabric inspectionmachine industryJack Intelligent High-end SewingEquipment Manufacturing Base waso?cially put into production

2020

0807

Jack

Events

January 2024

April 2024

February 2024

March 2024

Jack held a signing ceremony for brand strategic cooperation withDentsu, a world-renowned 4A advertising and communicationgroup.RUAN Jixiang, the founder and Chairman of Jack, attendedthe "Longpan-2024 Asian Business University Annual SummitForum" held in Hong Kong.Jack held its 2023 Annual Management Meeting with greatfanfare. RUAN Jixiang, the founder and Chairman of Jack,delivered a keynote report entitled Focus on Creating HotProducts, Comprehensively Improve Efficiency; Develop NewBusiness, Jointly Make E?orts to Break Through RMB 10 Billion,which for the first time proposed the guiding ideology of "SixCore Commitments and Four Critical Campaigns" for businesstransformation.

The Intelligent, E?cient, Digital Automatic Cutting Line jointlysubmitted by Jack and Bullmer and Zhejiang University wonthe ¬¤rst prize of the 2023 Science and Technology ProgressAward of China National Light Industry Council.

RUAN Jixiang, the founder and Chairman of Jack, led all EMTmembers and core management staff of the first and secondlevel departments to start the three-year "Jack Red Tour" againafter the "65 New Long March" in 2004, with the ¬¤rst stop beingGutian, Longyan, Fujian.Jack and Shenzhen Siyu Vision Technology Co., Ltd. officiallylaunched the MTM lean project together.

Jack held the kickoff meeting for the Performance ExcellenceProject at its headquarters in Jiaojiang.Jack held a briefing on the Notice on 2024 ComprehensiveIncentive System and Salary.The book Hidden Champion Jack, jointly planned and publishedby GEONOL CONSULTING and BLUE LION, was launchedon platforms such as Dangdang, Taobao, JD.com, and XinhuaBookstore.The national "2024 Vocational Capacity Building Symposium"was grandly held in Taizhou. Directors general and divisiondirectors of human resources and social security departmentsfrom provinces across the country visited Jack to learn about theconstruction of its skill-based wealth-creating enterprise.

Jack¡¯s Unveiling as a Hidden Champion

Jack's Revolutionary Journey

Longpan - 2024 Asia Business Academy Annual Summit

Jack won the ¬¤rst prize of the 2023 Science and Technology Progress

Award of China National Light Industry Council

August 2024

The theme release conference of Soul of the Enterprise:

Excellent Cases of Corporate Culture in Zhejiang Province in2023 was held in Hangzhou. Jack's corporate culture case,Culture as the Core: Promoting High-Quality Development ofEnterprises, was selected as an excellent case of corporateculture construction in Zhejiang Province in 2023.

Jack's corporate culture case was selected as an excellent case ofcorporate culture construction in Zhejiang Province in 2023

June 2024

Jack's 2024 global new product launch event under the themeof "To Be the King of Cross Seam" kicked o? at the ChimelongInternational Exhibition Center, with more than 30 parallelvenues in China, Cambodia, Vietnam and other countries,grandly launching a new product - "Urus", with order amountexceeding RMB 480 million within 5 hours.Jack signed a strategic cooperation agreement with DassaultSyst¨¨mes, a world-leading provider of digital industrialsolutions.

Jack and Dassault Syst¨¨mes signed a strategic cooperation agreementJuly 2024

Jack and Crosby jointly launched a zero-defect systemeducation project.The China's Future Star Enterprises Annual Conference 2024,hosted by the China Entrepreneur Magazine, was held inShanghai. RUAN Jixiang, the founder and Chairman of Jack,attended the conference and delivered a keynote speechentitled Stick to the Original Intention and Create the Futurewith Innovation.

Jack and Crosby jointly launched a zero-defect system education project

1009

Jack

December 2024

Yi Lianhong, former Secretary of the Zhejiang ProvincialParty Committee, visited Jack to inspect the industrialInternet platform of the sewing industry and the constructionof future factories, and learn about the development of digitalempowerment of new quality productive forces. He praisedJack as a model of "sweet potato economy".Jack ranked 78th on the 2024 List of 500 Private Enterpriseswith Invention Patents.The grand relocation ceremony of Jack's headquarters inHangzhou was held at the Linping Chamber of CommerceBuilding, with the theme of "Moving towards the New andPursuing Dreams on the Way"

Jack welcomed two heavyweight new members, Nick(American), a Ph.D. from Harvard University, and LIYuanheng, a postdoctoral fellow from Harvard University.The Supplier Conference of Jack was grandly held inChizhou, Anhui. At the conference, the proposal to cancelacceptance on deviation and implement a supplier eliminationmechanism was put forward for the ¬¤rst time.Witnessed by Jack's global dealers and representatives frommore than 100 garment enterprises, Frost & Sullivan, a world-renowned enterprise growth consulting firm, awarded Jackthe certificate of "No.1 in Global Sales for 14 ConsecutiveYears".Wind, a well-known ¬¤nancial data and analysis tool serviceprovider, released the 2023 ESG rating results, and Jack wasrated "AA".The Company was awarded the annual brand of 2024 GreatBrand, becoming the only enterprise in the industry to receivethis honor.The Organization Department of the Zhejiang Provincial PartyCommittee announced the second batch of typical cases ofprovincial joint party building. Jack was selected as a case of"Joint Party Building in Sewing Industry Common ProsperityRed Chain of Jiaojiang District, Taizhou City" as a leadingenterprise of the industrial chain.

The "Home in China ¡¤ Changning Cultural and EconomicExchange Conference" was grandly held in Shanghai. RuanJixiang, the founder and Chairman of Jack, delivered akeynote speech entitled Jack's Path to Global Growth, whichvividly demonstrated Jack's outstanding achievements and¬¤rm beliefs in the global market.The Ministry of Industry and Information Technology o?ciallyannounced the 2024 list of 5G factories, and Jack wassuccessfully selected for its outstanding 5G technologyapplication and intelligent manufacturing.Zhang Zhenfeng, Deputy Governor of Zhejiang Provinceand Secretary of the Wenzhou Municipal Party Committee,led a Wenzhou municipal party and government delegationon an inspection tour to Jack. During the visit, he urged theCompany to steadfastly leverage technological innovationas a growth driver, accelerate its transformation towardspremium, intelligent and sustainable development models,and spearhead high-quality corporate advancement.

The second technology conference of Jack was grandly heldat its headquarters in Hangzhou, attracting the participation ofleaders of industry associations and many industry experts.The 40th Anniversary Celebration and the 11th Council's4th Expanded Meeting of the China Sewing MachineryAssociation were held in Beijing. Jack was awarded thetitle of "Meritorious Enterprise", and its President of HumanResources, Qiu Yangyou, and President of Product Team,Hu Wenhai were awarded the honorary title of "AdvancedIndividual".The Economy and Information Technology Department ofZhejiang announced the second batch of Eagle enterprisesin Zhejiang Province, including Jack, marking an importantbreakthrough for Jack in technological innovation, industrialdevelopment and market competitiveness.

Jack was awarded the title of "Meritorious Enterprise"

Frost & Sullivan, a world-renowned enterprise growthconsulting ¬¤rm, awarded Jack the certi¬¤cate of "No.1 inGlobal Sales for 14 Consecutive Years"

Leaders visited Jack

Jack was successfully included into the 2024 list of national 5Gfactories of the Ministry of Industry and Information Technology

RUAN Jixiang, founder and chairman of Jack, delivered a

keynote speech entitled Jack's Path to Global Growth

Jack welcomed two new heavyweight members from Harvard University

September 2024

October 2024

November 2024

1211

Jack

Corporate cultureJack takes Taizhou's Hehe culture and Dachen Island's reclamation spirit as its corporate culture genes. In long-term practical exploration,the Company integrates Chinese traditional cultural genes with Western management culture, considers corporate culture at a strategic level,enhances core competitiveness through corporate culture innovation, continuously enriches and improves the connotation of corporate culture,and actively practices customer-oriented culture, focusing & concentration culture, continuous change culture, hard working culture and ¬¤lialpiety and gratitude culture, injecting inexhaustible power and source into Jack's comprehensive and high-quality development.The Company's senior leaders have always adhered to the mission of "intelligent connection for total solution grants intelligent garmentmanufacturing unlimited possibilities", pursued the vision of "becoming the most trusted partner in the global garment industrial chain",carried forward the corporate spirit of "harmony, integrity, ¬¤ghting and rising", and adhered to the core values of "customer ¬¤rst, focusing &concentration, hard working, co-creation and sharing", creating value for customers, welfare for employees, market for suppliers, returns forshareholders, and bene¬¤ts for society.In 2024, Culture as the Core: Promoting High-quality Development of Enterprises, a corporate culture case of Jack, was selected as anoutstanding case of corporate culture construction in Zhejiang Province in 2023.

"Intelligent connectionfor total solution grantsintelligent garment

manufacturing unlimitedpossibilities"

"Harmony, integrity,¬¤ghting and rising"

MissionEntrepreneurial spiritValues"Becoming the mosttrusted partner in theglobal garment industrial

chain"

Customer ¬¤rstFocusing & concentrationHard workingCo-creation and sharing

Vision

Development strategy

Jack formulates medium- and long-term plans based on thecorporate vision, mission and values, focusing on the mainchannel, customer value, and creation of hot products. Withbusiness portfolio as a guide and management system asa support, the Company builds product strength, marketingstrength, organizational strength and operation strength in acoherent manner, promoting Jack's sustainable, high-qualityand e?cient growth.Strategic approach

Business portfolio

Honors

Top 100 Enterprises in Creativity

in Zhejiang Province (No.24)

Red Dot Winner 2024 for

Product S80 & X5

Zhejiang Intellectual Property AssociationDesign Zentrum Nordrhein

WestfalenDecember 19, 2024June 24, 2024

Single Champion Enterprise

in Manufacturing

Ministry of Industry and Information

TechnologyApril 9, 2024

National 5G Factory

Information and CommunicationsAdministration of the Ministry of Industry and

Information Technology

November 2024

National Key R&D Program

(Intelligent Robot)Industry Development and Promotion Centerof the Ministry of Industry and Information

Technology

December 23, 2024

Eagle Enterprise in Zhejiang

ProvinceEconomy and Information Technology

Department of Zhejiang

December 18, 2024

Science and Technology ProgressAward of China National LightIndustry Council (First Award)China National Light Industry Council

February 26, 2024

China Council for Brand Development

May 2024

5G Fully Connected Factory in

Zhejiang Province

Economy and Information TechnologyDepartment of Zhejiang

Economy and Information Technology

Department of ZhejiangDecember 16, 2024

Manufacturing QualityBenchmark in Zhejiang

ProvinceDecember 27, 2024

500 Chinese PrivateEnterprises with InventionPatents in 2024 (No. 78)Zhejiang Provincial KeyEnterprise Research InstituteEconomy and Information TechnologyDepartment of ZhejiangDecember 31, 2024

All-China Federation of Industry and

Commerce

2024

Create hot products based on users, create valuethrough innovation, build a vertical and horizontalindustry ecosystem, and deeply serve globalcustomers

Basic business

H1: Single machine business

Sewing machine, cutting, etc.

H2: Digital intelligent total solution

High-end sewing machines/hanger system/software/warehousing, etc.

H3: AI unmanned intelligent total solution

Humanoid robots, frameless torque motors, etc.

Growing businessFuture business

Intelligent garment manufacturingindustry ecosystem

Uncertainty

Chinese Brand Value Assessment(Strength of 893, brand value of RMB

2.284 billion)

1413

Jack

ESG

ESG strategy

Maintain innovation vitality and lead a

sustainable future

While promoting the pursuit of economic benefits, Jack also takes into account social responsibility and sustainable development. Byidentifying and evaluating the Company's business strategy, key risks, development opportunities, relevant laws and regulations, andstakeholder needs, and combining national policies and industry development directions, we have formulated ESG strategic guidelines, goals,and implementation paths.

Protect employees' interestsFul¬¤ll employees' ideals

ESG StrategicGuidelines

Promote co-creation and sharingEnsure a win-win situation for both

suppliers and demanders

Meet customer needsCreate customer valueProduct-basedQuality ¬¤rst

Operate honestly and legallyAchieve steady development

Protect shareholders' rightsImprove investor relations

Dedicated to social goodFul¬¤ll social responsibilities

Green, low-carbon and intelligentEnvironmentally friendly

ESG concept and management structure

ESG management framework

The ESG Working Group is composed of the rotating executive president, president of theR&D Team, president of the Marketing Team, president of the Supply Chain Team, president ofHuman Resources, president of Finance, president of Strategy and Investment ManagementDepartment, etc., responsible for promoting and coordinating the Company's ESG work,identifying ESG risks and topics, and reviewing and evaluating ESG work reports.ESG Working Group

The Strategy and Sustainability Committee is consisted of members of the Board ofDirectors led by the chairman, mainly responsible for researching and making suggestionson the Company's long-term development strategy (long-term development plan, businessstrategy, development policy, major investment and ¬¤nancing, and ESG-related matters),and reviewing the Company's ESG strategy, policies, risks, and target performance, etc.Strategy and Sustainability

Committee

The Board of Directors is the highest decision-making body for ESG matters of Jack,responsible for reviewing and supervising the Company's ESG strategy, policies, risks, andtarget performance, and controlling the Company's ESG strategic direction, and ultimatelyresponsible for ESG matters.Board of Directors

Overallobjectives

of ESG

strategy

Key method

Capability

support

SDGsbenchmarking

Build an incorruptible culture

InnovationResearchInstitute

BusinessSchool

Long-terminvestment

Ecologicalchainconstruction

Filial Piety Sewing

Foundation

Sound corporate governance

ESG systemESG data management

ESG information

disclosure

Improve governance e?ciency

E?cient and low-carbonsolutions to improve quality,reduce costs and increasee?ciencyRemote services based on AIand IoT technologiesBuild a training system for globalemployeesDevelop new business andcreate more developmentopportunities

Innovation vitalityGlobal public welfare

Filial Piety Sewing: Five ThousandPlanBuild an industrial community andpromote the university-enterpriseintegrationHold 2,000 public welfare trainingsessions per year, and providefree services to 10,000 companiesLocalized operation, and culturalintegration, promoting globaldevelopment

Achieve a 20% reductionin carbon emissions fromoperation managementAchieve a 20% reduction incarbon emissions per unit ofoutput valueHelp core suppliers reduceemissions by 15%

Green development

1615

ESG

ESG-related honors

Global 100 ESG Classic Cases ofZhejiang Enterprises in 2024

Wind ESG "AA" rating in

2024

Selected as an excellent practice case of sustainable development oflisted companies in 2024 by China Association for Public Companies

ESG Value Delivery Award for Listed

Companies in 2024

The Company attaches greatimportance to the significant impactthat ESG risks may bring, and hasincorporated ESG managementinto the Company's overall riskassessment and managementsystem. The Company regularlyassesses important ESG topicsand reports them to the Board ofDirectors for review. The Boardof Directors discusses anddetermines the Company's ESGrisks and opportunities, regards themanagement and improvement ofimportant topics as key ESG tasksand incorporates them into theCompany's overall strategic planning.

The Company holds ESG trainingfrom time to time to interpret ESGdevelopment trends and excellentpractices and implement ESG in allrelevant positions. Through variousmeans such as internal employeetraining, corporate culture building,and exchange and learning ofindustrial excellent practices, theCompany will continue to createa corporate culture of sustainabledevelopment and enhance ESGmanagement capabilities.

The Company has incorporated ESGperformance into the performanceevaluation indicators for seniorofficers, mainly including worksafety (including but not limited tosafety accidents and safety penaltyincidents), environmental protection(including but not limited to pollutantemissions, energy efficiencymanagement, and environmentalpenalties), anti-corruption, legaland compliant operations, and riskmanagement, etc., such as the one-vote veto system for work safety,and the review and adjustment ofperformance assessment resultsand performance-based annualsalary by members of the MajorAccident Management DecisionCommittee (EMT), etc. In thefuture, the Company will continue toimprove the sustainable developmentperformance evaluation mechanismand strengthen the implementation ofthe sustainable development strategy,thereby ensuring the smooth andhealthy operation of the Company andachieving sustainable development.

ESG risk management

ESG performance and remuneration

of senior o?cers

ESG training

1817

ESG

Substantive topic analysisStakeholder identi¬¤cation and communicationIn order to further understand the expectations and requirements of stakeholders and guide the implementation of daily environmental, socialand governance work, the Company actively invites stakeholders to participate in the assessment of substantive topics, sorts out topics thatare important to the Company's business and stakeholders, and discloses them in detail in the report.

Jack attaches great importance to communication and exchanges with internal and external stakeholders of the Company, conducts dialogueswith stakeholders through various channels, deeply understands the demands and expectations of stakeholders, strives for their trust andsupport, and promotes the continuous improvement of social responsibility management.

Substantive topic matrix

Based on the national macro-policy

orientation, domestic and overseas

research on social responsibility

standards, annual hot topics, industry

trends, rating concerns, and the

Company's actual development,

identify substantive topics that have a

signi¬¤cant impact on the Company's

own development and stakeholders.

Communicate with internal andexternal stakeholders of the Companythrough online questionnaires.The 2024 stakeholder researchcovers stakeholders includingemployees, customers, investors,suppliers, partners, communities andthe public.

Based on the research results,conduct statistical analysis on thescores of the topics, adjust thesubstantive topics based on theopinions of internal managementand external experts, confirmthe importance ranking, form asubstantive topic matrix, and respondin a focused manner to the topics ofconcern to stakeholders in the report.

Financial importance

Combating climate change

Anti-discrimination, forcedlabor, harassment and abuse

Establishment of environmentalmanagement system

Employee care and motivation

Energy/resource conservationand renewable energy utilization

Occupational healthand safety

Employee equality and diversehiringEmployee communication anddemocratic management

Product quality and safety

Promotion of environmentalprotection concept

Industry-university-research cooperation

Digital and intelligenttransformation

Reducing carbon emissions

Employee engagement andsatisfaction

Waste and pollutionmanagement

Employee trainingand development

Research and development andapplication of clean technologyEmployment of highlyeducated/professional talents

Rural revitalization

Green office

Industry cooperationand exchange

R&D and innovation

Development of green products

Social and publicwelfare undertakings

Protection of customersand consumers' rights andinterests

High

High

Stakeholder researchComprehensive analysis

of results

Topic identi¬¤cation

and screening

Substantive topic analysis process

Party buildingleadershipESG management

CompliantoperationCorporategovernanceBusiness ethics andanti-corruption

Supply chainmanagementResponsiblesourcing

IntellectualpropertyprotectionRisk control andinternal control

StakeholderExpectations and demandsCommunication and response

Employees

Employee remuneration and bene¬¤tsEmployee training and developmentOccupational health and safetyEmployee care and motivation

Equality and diverse hiringProtect employees¡¯ rights and interestsPerfect salary systemSmooth promotion systemRich employee activitiesPerfect health and safety system

Partners

Supplier managementDealer managementIndustry developmentUniversity-enterprise cooperation

Responsible sourcingSupply chain managementSunshine procurementWin-win cooperation with dealersIndustry cooperation and exchangeIndustry-university-research cooperation

Customers

Product R&D and innovationProduct quality and safetyCustomers' rights and interestsprotectionData security and privacyprotectionTimely and professional service

Technological innovationDigital and intelligent transformationQuality assuranceCustomer feedback handlingCustomer satisfaction surveyInformation security management

Shareholders

Stable performance growthShareholders' rights and interestsprotectionTransparent information disclosureComplete risk control and compliance

Compliant operationComprehensive risk managementRegular and ad interim informationdisclosureSmooth investor communicationchannelsIntellectual property protection

Government andregulatory authorities

Compliance with regulatory requirementsResponding to national developmentpoliciesBusiness ethics and anti-corruptionComplete risk control and compliance

Compliance with laws and regulationsCooperation in regulatory inspectionsRegular and ad interim informationdisclosureStrengthening publicity of integrity inprofessional practice and self-disciplineComprehensive risk managementCommunity and thepublic

Social and public welfare undertakingsRural revitalizationCommon prosperity

Volunteer activitiesCharitable donationsStarlink Cloud alliance

Impact importance

Low

2019

ESG

the Company continuously carries out charity activities to return bene¬¤ts to society. With a persistent pursuit for forging an in¬¥uential brand withpublic welfare concern, it actively practices corporate social responsibility, and shares development results with the community.

Upholding the concept of openness and cooperation, the Company actively participates in exchanges and cooperation with various industryassociations. By participating in various activities of industry associations, the Company not only has an in-depth grasp of industry developmenttrends, but also explores cooperation opportunities with other companies, bringing new vitality to the development of the industry.

With the focus of "innovating the future through innovation" as its core, and the R&D concept of "insisting on innovation-driven and creating high-qualityhot products", Jack has built a R&D system with a high strategic level.

Jack Shares adheres to the concept of "contributing to common prosperity" and plays a positive role in ruralrevitalization. It empowers rural development through industrial support, consumer assistance, povertyalleviation donations and other means.

The Company consistently adheres to a people-oriented approach, prioritizingemployees' occupational health, psychological well-being, and life welfare, whilesafeguarding their democratic rights.

The Company has established a "Business School" to implement the concept of"using the best people to train better people" and focus on business operations toreplicate and promote successful experience. Additionally, a business school training-to-action plan was formulated to provide all employees with training programs frominduction to various development stages.

The Company upholds the concept of diversity, equity and inclusiveness in strictcompliance with the Law of the People's Republic of China on the Protection ofWomen's Rights and Interests, prohibiting discrimination based on gender, age,education, ethnicity, religion or physical condition. All employees are guaranteedequal employment and career development opportunities.Attaching importance to water resource management, the Company implemented thewater-saving concept of multiple uses and recycling of water, formulated the ManagementRegulations for Rational Use of Water, took a number of measures to reduce water resourceconsumption, and comprehensively promoted the e?cient management and recycling ofwater resources.

Jack Technology adopted green and low-carbon development as its core strategy,leveraging technological innovation, systematic equipment upgrades, and green initiatives toadvance the R&D and application of carbon reduction technologies. By optimizing resourcee?ciency and reducing carbon emissions, the Company provided innovative sustainabilitysolutions, reinforcing its leadership and commitment to the green transition while supportingChina's carbon peak and carbon neutrality goals.

The Company has established a strict quality management system to ensure that allemployees take "doing things right the ¬¤rst time" as the principle in their daily work, andstrive for excellence in every link from design, production to service, striving for zero-defect delivery. The Company regards quality not only as the lifeline of its products,but also as an important part of its core competitiveness. The Company is committedto providing customers with excellent product experience and long-term value, andcontinuously promoting the improvement of industry quality standards.

In response to the country's "dual carbon policy", Jack Technology formulated andimplemented climate change response plans and climate transformation plans tomeet the challenges of climate change, striving to achieve carbon neutrality by 2060based on its energy use, carbon emissions status and strategic development plans.The Company continued to contribute to global climate governance by practicing theconcept of energy conservation and emission reduction, promoting the application ofclean technologies and improving resource utilization e?ciency.

The Company managed wastewater discharge in compliance with regulations, installed watermeters in each workshop to implement daily water consumption measurement, controlledsewage treatment, and invested in the construction of sewage treatment stations to separaterainwater and sewage, ensuring that sewage discharge complied with local water pollutionprevention and control regulations, and wastewater pollution to the environment was reduced.

Jack Technology actively practiced its corporate social responsibility in biodiversity conservation andminimized the impact of production activities on the ecological environment through technologicalinnovation and scienti¬¤c management. The Company strictly abode by relevant laws and regulationson ecological protection, paid attention to ecological balance in project development and operation,and avoided damage to natural habitats.

The Company is convinced that adhering to business ethics is the cornerstone of the Company's long-termdevelopment and the key to winning the trust of customers, employees and society. The Company upholds theprinciples of integrity, fairness, accountability, and transparency, establishing a strong reputation in the fiercelycompetitive market and driving sustainable societal development.

The Company has always regarded energy conservation and emission reduction as an important measure forsustainable development, and has comprehensively promoted e?cient resource utilization and environmentalprotection through technological innovation, equipment upgrades and green energy applications. In the processof environmental protection practice, the Company actively adopted non-toxic and harmless green raw materialsand environmentally friendly new materials, broke through key technologies, and promoted green design. At thesame time, the Company used smart equipment and intelligent connection solutions to improve the productione?ciency of downstream industries, reduced resource waste, striving to achieve a win-win situation of economicand environmental bene¬¤ts.

Attaching importance to the employment of persons with disabilities, the Company has launched the "SunshineHome" initiative, providing dedicated positions and barrier-free facilities to ensure workplace accessibility andequal bene¬¤ts for employees with disabilities. In addition, the Company has provided special care for pregnantemployees, adjusted work arrangements, and optimized the working environment to ensure their health and safetyduring pregnancy. Through these initiatives, the Company aims at creating an equal, respectful and inclusiveworking environment for every employee, ful¬¤lling its social responsibility and promoting harmonious development.Guided by its value-creation paradigm, the Company is committed to building a comprehensive and e?cient incentive system. Through scienti¬¤ccompensation management and performance evaluation mechanisms, the Company continuously optimizes its talent structure, achievingsynchronous growth between individual careers and organizational objectives. Equity incentives closely align employees' interests with theCompany's long-term development, enhancing their sense of belonging and responsibility.

Contribution to SDGs

2221

ESG

In the wave of intelligent and digital transformation of the garment industry, Jack continued to inject new quality productive forces into theindustry with its forward-looking strategic layout and technological innovation. In 2024, the Company continued the upgrades for its productmatrix through the "Hot Product Strategy". While consolidating the market leading position of "A.M.H" (hot product in 2023), the Companyinnovatively launched "Urus" hot product, which not only solved the industry's pain point of "Small Order Quick Response", but also promotedthe transformation and upgrading of the garment industry from traditional manufacturing to intelligent manufacturing, helping customersmaximize their values. In the future, Jack will continue to uphold the innovation-driven development concept, promote the garment industry toa higher level of intelligent manufacturing, and make contribution to the sustainable development of the industry.Hot product strategy: activate new qualityproductive forces in the garment industry

Promote the hot product strategy and activate newquality productive forces in intelligent garmentmanufacturing

Special topics

"A.M.H" is an intelligent productionequipment launched by the Companyafter 5 years of research and developmentand an investment of over RMB 100million to meet the rapid response needsof the garment industry. With the AMHfabric adaptive system, it can accuratelyidentify fabrics and adjust parameters inreal time; with the Nine-Brain Octopus AIchip, it achieves microsecond responseand seamlessly switches sewing; with thepowerful PowerApe motor, it achieves acomprehensive torque of up to 8.4 Nmthrough high torque density technology, andcopes with complex sewing in combinationwith through-axis technology. It realizesthe adaptability of small-order flexible andquick response, and significantly shortensthe production delivery cycle. Since itslaunch, "A.M.H" has successfully helpedmany garment enterprises realize thetransformation from traditional manufacturingto intelligent manufacturing, becominga benchmark product for the industry'sintelligent transformation.

"A.M.H": small order quick response, leading the market trend"Urus": Full speed cross seam, improving production e?ciency

In the garment production under the modeof "small order quick response", fabric knotsrestrict efficiency and quality. The Companylaunched the "Urus" intelligent overlockerafter 4 years of cooperation with top scientificresearch forces. It has an AI full-speed feedingsystem, and two core technologies: PresserFoot Transformer and Smart Rhino Feeding,supporting implementation of instructions basedon the calculation parameters. The pressingforce could be adjusted instantly and the feedingforce could be accurately outputted, accordingto the di?erent extreme characteristics of fabricssuch as thick, thin, elastic and sti?. The productachieved great success once it was launched.It effectively solved the problems of crossseam, improving e?ciency, reducing costs, andleading the intelligent transformation of garmentproduction.

Win the market position of "No.1 in Global Sales for 14 Consecutive Years"

On October 16, 2024, witnessed by overseas dealers around the world and withthe authoritative certi¬¤cation of Frost & Sullivan, the President of Human Resourcesof Jack and the Executive Director of Frost & Sullivan China held a certificationceremony for "No.1 in Global Sales".Source from: Frost & Sullivan completed the survey in September 2024 at the annualnumber of industrial sewing machines sold by major industrial sewing machineenterprises in the world between 2010 and 2023.

No.1 in global sales for 14consecutive years

2423

Special Topics: Promote the hot product strategy, Activate new quality productive forces in intelligent garment manufacturing

Case: Global New Product Launch Event under the Theme of "To Be the King of Cross Seam"On June 16, 2024, Jack held a global new product launch event under the theme of "To Be the King of Cross Seam" at theGuangzhou Chimelong International Exhibition Center, with more than 30 parallel venues in China, Cambodia, Vietnam andother countries. The live event attracted more than 1,000 representatives from garment enterprises, more than 100 globalmedia and nearly 5 million online viewers.At the event, the Company launched the "Urus" intelligent overlocker, marking the in-depth application of AI technology inthe ¬¤eld of sewing equipment. In order to overcome the problems of traditional overlockers in processing mixed fabrics, suchas jamming and needle breakage, Jack ¬¤nally successfully launched "Urus" after 4 years of R&D under cooperation with topuniversities such as Stanford University, Chinese Academy of Sciences, Tsinghua University, and Zhejiang University.During the live demonstration, "Urus" seamlessly handled thick, thin, elastic, and sti? fabrics without speed reduction, evenwhen transitioning between materials with 100x thickness variations, which garnered enthusiastic acclaim from attendees.The order amount exceeded RMB 480 million within 5 hours after product launch, underscoring Jack's innovation strength andmarket in¬¥uence in the sewing equipment ¬¤eld. Finally, the product launch event was reported by more than 30 media includingXinhua Net, People's Daily app, and Guangming Online, hailing "Urus" for empowering new quality productive forces.

Global launch of "Urus"

Urus' world record for the longest continuous sewing of multiple fabrics without thread breakage cross seam and machine stoppage.

"Urus" set a world record for continuous sewing by overlocker

On November 27, 2024, under global attention and the strict supervision of the Forbes World Record Certi¬¤cation (FWRC),Jack's "Urus" continuously sewed 1,001.98 meters of extreme fabrics, setting a world record for the longest continuous sewingof multiple fabrics without thread breakage cross seam and machine stoppage.

2625

Special Topics: Promote the hot product strategy, Activate new quality productive forces in intelligent garment manufacturing

R&D innovation drivenWith the focus of "innovating the future through innovation" as its core, and the R&D concept of "insisting on innovation-driven andcreating high-quality hot products", Jack has built a R&D system with a high strategic level. The Company is determined to increaseits investment in innovation. The Company spends more than 7% of its sales revenue on R&D each year, and plans to increase thisproportion to 10% in the next 3-5 years, fully demonstrating the Company's high attention and long-term commitment to technologicalinnovation. In 2024, the Company achieved a number of technological breakthroughs in the ¬¤eld of intelligent sewing equipment, andlaunched revolutionary products such as Urus, bomber 5000, template machine M5/M9, hanger system Q7/V7, and auto-cutter S80/F80, etc., which signi¬¤cantly improved production e?ciency and industry competitiveness.

R&D strategy and planning

Management system and policy

Jack insists on long-term investment in innovation. The Company invests more than 7% of sales revenue in R&D every year, and will increasethis proportion to 10% in the next 3-5 years, under the "433" strategy, of which 40% will be used for development generation, 30% for pre-research generation, and 30% for exploration generation. The investment in the exploration generation will increase by 0.5%-1% of therevenue, mainly used for humanoid robots, AI digital production lines and other areas. This strategy not only promotes the continuous iterationand upgrading of existing products, but also lays a solid foundation for the disruptive innovation of future technologies and the reconstruction ofthe industrial ecosystem, injecting strong impetus into the intelligent and digital transformation of the global manufacturing industry.

The Company has established a complete R&D management structure and system to support the implementation of its innovation-drivendevelopment strategy. The Company has built a global R&D network, with established 14 R&D centers covering multiple countries andregions including China, Germany, and Italy, and proposed innovation centers in Europe, the United States, and Japan, forming a R&D patternfeaturing "global collaboration and resource sharing".Based on a R&D model featuring global perspective, multi-professional integration, and multi-field collaboration, the Company promotescustomer-centric product innovation. Through joint innovation with world-class customers, major universities around the world, and world-renowned technology-based enterprises, the Company accurately de¬¤nes product needs and enables SP planning and CBB construction.Meanwhile, the Company builds a deeply interlocking system of technology and products to achieve a high degree of adaptation betweenproduct approval and development processes, increases talent and technology investment in the fields of automation and AI, and fullyintegrates AI, software, controllers and machinery through independent R&D and external cooperation, to create a triathlon that Jack controlsindependently. The Company continuously innovates new categories, rede¬¤nes rules, solves users' pain points, creates greater value forcustomers, promotes the development of garment manufacturing towards small orders and unmanned operations, and enhances Jack'soverall competitive advantage.Relying on the IPD system, the Company deeply connects the product competitiveness shaping and market-oriented operation and buildsa close coordination mechanism. With the help of a unique hot product development model, the Company e?ectively integrates innovationinsight methodology, Sany value model and other tools to accurately identify and e?ectively solve customers' core pain points.The Company develops a new generation of product life-cycle management PLM system in depth, and builds a uni¬¤ed R&D data platform toe?ectively integrate and manage the entire process data of products from demand planning, conceptual design, detailed design, productionand manufacturing, sales, after-sales service to ¬¤nal delisting. By measuring and evaluating the indicators of R&D process management fromdemand to planning, technology to ¬¤nished product development, the Company ensures the controlled design and development process, theadvanced product technology and the reliable quality, and creates leading technology and hot products.Through a complete R&D management system and innovation mechanism, the Company has not only achieved e?cient transformation oftechnological achievements, but also continued to lead industrial technological innovation and provided intelligent and digital solutions forglobal customers.

Develop the third-generation product strategySoftware: connect front-end,mid-end and back-end data

Software: AI large modelapplication

Flagship hot automatic

machine productsTwo ´agship hot produtcts

Other hot productsBefore sewing + during sewing +

after sewing

AI empowerment of production

linesUniversal IoTDigital twinProduction simulation

Digitalmanagement

MasterhumanexperienceIntelligent logisticsData analysisLean for e?ciencyimprovement

AI auto-cutter andspread machineAI single machineAI hanger system

A.M.H

FullyelectronicAl largemodelUrus

Intelligent

totalsolution

1.0

Intelligenttotalsolution

2.0

Focus

on hotproducts

Modular+ digitaladjustment

Machinein lieu ofpeople +automaticproductionlinesFutureproduction line+ Metaversefactory

New trends in the garment industryQuick response and adaptation riseof technological fabrics

New trends in garmentproduction AI ´exible quickresponse (de-skilling)

New production trends + industry

changesLess manned unmanned&digital intelligentDevelopment generationPre-research generationExploration generation

Ultimate goalLet 120 million garment workers around the world work easily and happily!

Three-generationproduct strategy

Product Team

Product Strategy Marketing Department

Lockstitch Product Line

Overlock Product LineInterlock Product LineHeavy duty Product Line

Intelligent Hang system Product LineBasic Machine Product Line

Special Machine Electronic ControlProduct Line

Intelligent Warehousing Product LineFrameless Torque Motor Product LineEconomical Auto-cutter Product LineTechnology Platform DepartmentMotor and Pilot Test Platform DepartmentExpert Room

Technological Innovation ManagementDepartmentCOE RoomAutomatic Machine Product LineSpecial Machine Product LineHigh-end Product Line

2,705

patents

1,1251,334246

As at the end of the reporting period,the Company had a total of

Total number of softwarecopyrights

Number of invention patentsapplied to primary business

Including: invention patents of

1,289

Number of R&D personnel

487.99

millionR&D investment amount

Utility model patents ofDesign patents ofKey performance

3029

Create quality with craftsmanship, and empower society with technological innovation

R&D innovation incentive mechanismThe Company has always been committed to creating a scienti¬¤cand diversi¬¤ed incentive mechanism for R&D personnel to fullystimulate their enthusiasm and creativity. Under the frameworkof the "comprehensive incentive 3+3 system", the Companyhas continuously improved its incentive system. This year, theCompany took an important step to incorporate value evaluationinto the assessment system, instructing R&D personnel to focusnot only on technological innovation, but also on alignment withthe Company's core values, and promoting synchronized growthresonance.

Innovation incentive system

Aim to encourage the application for patent rights of innovative achievements, improve the quality of invention patents, promote theimplementation and application of invention patents, and motivate employees to actively apply for patentsManagement measures for patent incentives

Commercial success reward system for product developmentAim to motivate the work enthusiasm of members of the product development project team, encourage outstanding personnel togrow quickly, and promote the rapid development of the Company

Aim to stimulate the enthusiasm and sense of urgency of the team, expedite the capture of strategic ´agships, seize the initiative,

promote the achievement of the Company's strategic goals, and enhance the cohesion and combat e?ectiveness of the teamFlagship project award

Aim to encourage R&D personnel to make positive contributions in the process of technology project R&D and mobilize the

enthusiasm and creativity of all R&D personnel

Technology development project awardLayout of R&D center

Jiangxi R&DCenter

GuangzhouR&D Center

Anhui R&DCenterBeijing R&DCenter

Shanghai R&DCenter

Hangzhou R&DCenterTaizhou R&D CenterLinhai R&D Center

Xi'an R&D Center

Hefei R&DCenterWuhan R&DCenterGerman R&DCenterItaly Maica R&D CenterItaly Vibemac R&D Center

3231

Create quality with craftsmanship, and empower society with technological innovation

Intellectual property protectionThe Company established a complete intellectual property policysystem, including the Implementation Rules of Patents, the ManagementMeasures for Patent Incentives, the Intellectual Property EmergencyResponse System and the Management Measures for Technical Secrets,to ensure standardized and systematized intellectual property work.The Company established a dedicated Intellectual Property Departmentwith 9 full-time employees, fully responsible for patent mining, retrieval,review, application, analysis and avoidance, and held annual intellectualproperty training to continuously enhance employees' intellectual propertyawareness and professional capabilities. In addition, the Companyobtained the intellectual property management system certification,and further strengthened the standardization and internationalizationof intellectual property management, providing solid guarantees for theprotection and transformation of technological innovations.

Comply with scienti¬¤c ethics

The Company's R&D activities do not involve artificial intelligence ethics, biotechnology or environmentally sensitive areas, and alltechnological improvements are centered around improving the production e?ciency and sustainable development capabilities of the garmentindustry. The Company practices corporate social responsibility with a pragmatic and innovative attitude.The Company fully understands that technological development must follow ethical principles, so the Company will uphold correcttechnological ethics to ensure that R&D activities are in line with human interests and values.

Intellectual Property Management System Certi¬¤cation

Core technologyTechnical advantagesAMH fabric adaptive technology

Able to quickly sense fabric changes, and adju? the coordination between feeding forceand puncture force in real time, adaptive to fabrics and the world's ¬¤r? sy?em that cancontinuously sew di?erent fabrics without adju?ing the machine

Nine-brain Octopus AI chip

technology

With intelligent AI algorithm, able to achieve intelligent perception and real-time responsefor di?erent fabrics such as thick, thin, and ela?ic through multi-task parallel updatecalculations up to 10,000 times per secondPresser Foot Transformertechnology

Solve core pain points of cu?omers such as needle breakage over seam, skip ?itch, and?itch crowding

Smart Rhino Feeding technology

Has the combined torque as high as 9.2N.m, and the precision of the feeding forcecontrolled at 0.01N.m; like a sports car with excellent performance, whether it is ?raight-line acceleration or corner overtaking, able to match the optimal power output, ensuringaccurate output of the feeding force according to the needs of the seam position at every 1degree of 360 degrees

AI full speed feeding sy?em

Able to perform multi-modal intelligent detection at a speed of 32,000 times per second,and calculate the be? pressure-feed ratio once the fabric changes slightlyThrough Presser Foot Transformer, output the precise pressing force, and e?ectivelycooperate with Smart Rhino Feeding technology to output the precise feeding force,achieving full speed cross seam

0 degree line technology

Relying on thread quantity model simulation and by optimizing the motion coordination ofeach mechanism, able to accurately control the movement ?ate and tightness changes of?itches, minimizing sewing defects such as thread breakage and skipped ?itches By usingnano coating, able to reduce line resi?ance by 30%, and enhance wear resi?ance andru? resi?ance

Metis control technology

Through multi-axis interpolation and precise positioning, ensure cutting accuracyThrough HSC high-speed cutting technology, fa? positioning and sharpening technology,optimized control logic and other technologies, achieve ultra-high-speed cutting Throughmicrosecond-level ultra-high-speed response, ensure precise execution of the controlsy?em

Short thread tail technology

With the ultra-short thread tail technology, able to achieve ultra-short thread ends byreducing the di?ance from the needle plate to the bottom shear, which solves the painpoint of cu?omers that the thread ends of high-end garment from ?raight buttonholemachines need to be repaired twice, improves garment production e?ciency, and meetsthe needs of high-quality shirt sewingBottom thread detectiontechnology

With the bottom thread detection technology, sense the bottom line capacity through thesensor and replace the bobbin in time; able to avoid sewing failures caused by insu?cientbottom line margin and improve sewing quality and e?ciency

DCP intelligent pressure sensing

technology

The DCP intelligent pressure sensing device ampli¬¤es the change in fabric thicknessthrough a mechanical device during sewing, senses it through a sensor, and automaticallyreduces the speed of the spindle motor at the time of approaching a seam, ensuringperfect ?itches at the cross crotch

Key performance

3433

Create quality with craftsmanship, and empower society with technological innovation

Ensure product quality

Jack takes "zero defect - meeting customer requirements and doing the right things right the first time" as the core policy of qualitymanagement and fully implements the four basic principles of zero defect. The Company has established a strict quality management systemto ensure that all employees take "doing things right the ¬¤rst time" as the principle in their daily work, and strive for excellence in every link fromdesign, production to service, striving for zero-defect delivery. The Company regards quality not only as the lifeline of its products, but also asan important part of its core competitiveness. The Company is committed to providing customers with excellent product experience and long-term value, and continuously promoting the improvement of industry quality standards.

99.43%00.039%

During the reporting period,the Company's productpercent of pass reached

The number of major qualityincidents in the year was

The product recall ratewasIroning tableL5

A new benchmarkfor green intelligentmanufacturing

InterlockK7

New intelligentsewing technology

ProductsProducts

Auto-cutterS80

Precision cuttingtechnology

Hangersystem Q7Enhanced e?ciency instyle changeover andthroughput increase

ProductsProducts

Templatemachine M5Flexible intelligentmanufacturingassembly linerevolution

Templatemachine M9

ProductsProducts

Urus

Full speed crossseam

A.M.HNon-stop sewing of100 styles daily

ProductsProducts

Innovative product matrix for Intelligent sewing equipment

Four basic principles of zero defect

Quality means meeting requirementsThe working principle is zero defect

Prevention creates qualityQuality is measured with value

IS09001 Quality Management System Certi¬¤cationCCC Certi¬¤cation

Key performance

3635

Create quality with craftsmanship, and empower society with technological innovation

Management strategy and planning

Management system and policy

Quality management objectives

Quality red line management

Jack takes "Eight Major Campaigns, Three Strategic Theaters" as the implementation pathway, comprehensively covering the eight modulesof R&D and design, product quality, quality tools, process quality, parts quality, talent training, service quality and quality digitization, with afocus on the three areas of R&D, manufacturing and services. Through a systematic and re¬¤ned quality management system, the Companyis committed to making the "Jack Brand" synonymous with industry quality and continuously promoting the high-quality development of theCompany.

The Company adhered to the customer-oriented principle, gained a deep insight into customers' expectations for product quality, strictlyimplemented internal regulations such as the End-to-End Quality Management Process, the Full Manufacturing Quality Management Process,the Management Regulations on Quality Red Line and the Non-conformity Control Management System, and continuously optimized theclosed-loop management mechanism for quality issues to ensure continuous improvement in product quality. The Company set up a "ChiefQuality O?cer", implemented a "one-vote veto system for quality and safety", incorporated quality and safety performance into the assessmentsystem for the Company's senior management, and established quality and safety KPIs at the workshop and job levels to achieve a deepbinding of quality and safety with economic bene¬¤ts and form a quality culture with the participation of all employees.At the same time, the Company's Quality Process IT Department consisted of the Quality System Department, the Process IT Departmentand the Quality Management Department that work together to build a quality management system covering the entire process, ensuring thesystematic, standardized and e?cient quality management, and providing a solid guarantee for the Company to create high-quality products.

With the core concept of "adhering to end-to-end quality management to build Jack's high-quality brand", the Company has formulated a 3-5year quality strategy plan, clearly taking NPS (Net Promoter Score) and quality satisfaction as core quality goals, and breaking them down stepby step to organizations and positions at all levels.

In order to standardize the daily behavior of all employees, strengthen quality management and enforce strict work discipline, the Companyformulated Jack's ten quality principles, ensuring the full implementation of the "customer-oriented" concept and instructing all employees topay attention to work quality and product quality. At the same time, the principles require management sta? at all levels to ensure no excusesand proactive root cause ownership during the problem-solving process, thereby increasing the enthusiasm, timeliness and e?ectiveness ofproblem solving.

During the reporting period, the Company participatedin the quality management innovation activityorganized by the China National Light IndustryCouncil, and was awarded the title of "NationalExcellent Quality Manager in Light Industry" for oneperson, the title of "National Trustworthy Team forQuality in Light Industry" for one team, and the titleof "National Excellent Quality Management Team inLight Industry" for two teams.The Company participated in Taizhou City's 2024Quality Innovation Achievement Release Conferenceand QC Group and Advanced Quality MethodApplication Competition, and won the First Awardfor QC Group Achievement Release with the ErrorReporting of Template Machine E225.

List of winners in the evaluation and selection of excellentachievement report on quality improvement

Adhere to the strategy of high-quality development to lead thedevelopment of the industry withthe comprehensive performance ofproducts

Adhere to end-to-end qualitymanagement to create anexperience that exceeds userexpectations

Adhere to the construction of thezero-defect management systemto create brand advantages of Jack

Performance indicator

Actual performance202220232024

NPS454849Cu?omer satisfaction8.368.528.85

Jack's ten quality

principles

Adhere to customer ¬¤rst and eliminate self-

centeredness

Adhere to the authenticity of data and

eliminate fraudAdhere to root cause ownership and avoid

making excusesAdhere to quick response and avoidprocrastination and delayAdhere to quality benchmarking and avoid

blind actionAdhere to the sense of crisis and avoid

stagnation

Adhere to the quality red line and avoidsacri¬¤cing quality for the sake of costAdhere to repeated veri¬¤cation and eliminate

batch problemsAdhere to doing things right the ¬¤rst time and

avoid rework and repairAdhere to the one-vote veto and avoidcompromise and concessionQuality management planning

Ten quality principles

Major honors

3837

Create quality with craftsmanship, and empower society with technological innovation

Product quality improvementComplaints management measures

Quality Culture Construction

With systematic quality management as the core, Jack created an all-round quality improvement system. By implementing quality risk control,the Company identi¬¤ed and avoided potential risks in advance, and at the same time, promoted life-cycle quality management and achievedend-to-end quality monitoring from R&D to after-sales services. In addition, the Company encouraged all employees to participate in qualityimprovement and consolidated its market competitiveness by carrying out QCC (quality control circle) activities.

Carry out the same during the product development process to ensure the full implementation of qualitystandards.

Carry out the same during the product development process to ensure the full implementation of qualitystandards.Develop a Risk and Opportunity Response Plan and combine it with the risk and opportunity assessmentanalysis table to systematically manage quality risks.

Use quality tools such as DFMEA (Design Failure Mode and E?ects Analysis), PFMEA (Process Failure Modeand E?ects Analysis), SPC (Statistical Process Control), and CP (Control Plan) to carry out quality planning,and focus on quality prevention management, to ensure stable quality performance at the time of massproduction.

Establish a physical and chemical laboratory to conduct material analysis and physical and chemical analysison each batch of raw materials.Require suppliers to provide a quality guarantee for each batch of raw materials.Establish process qualification conditions from six aspects: people, machines, materials, technology,environment and monitoring.Set up 77 quality control points in the six manufacturing links to strictly control the quality of the productionprocess and ensure the quality stability of the product throughout its life cycle.

The Company strengthened quality complaints management through various measures to protect customer interests and enhance corporatereputation. The Company formulated the Closed-Loop Quality Management Process, requiring a rapid response to external customercomplaints within 4 hours, and realizing intelligent analysis through T-management and a digital cockpit. At the same time, the process clari¬¤esthe closed-loop management by six steps, namely, root cause analysis, measure execution, effect confirmation, standardization, single-point education and implementation con¬¤rmation, to ensure that problems are e?ectively resolved. In addition, the Company implementedhierarchical and graded management for major quality issues, and established a system for reporting bad news directly to senior managementto speed up the handling of major customer complaints.In 2024, the Company further upgraded the Jack's Product Recall System, re¬¤ning the recall process and implementation method, and directlylinking product quality performance with remuneration of senior o?cers to strengthen the quality responsibility awareness of all employees.Through digital tool empowerment, process optimization and management accountability mechanism, the Company e?ectively protected therights and interests of consumers, signi¬¤cantly improved the Company's quality management e?ciency and brand credibility, and set a qualitymanagement benchmark for the industry.

Through internal and external training, "Quality Month" activities and other quality-related training, the company builds a quality managementsystem with full participation, deepens the concept of "zero defect", improves quality awareness and execution, and builds corporatecompetitiveness. At the same time, the company extends quality culture training to suppliers to achieve coordinated quality improvement of thewhole industrial chain.

The Company conducts a QCC (Quality Control Circle)publication activity every quarter. As at 2024, the Companysuccessfully held 54 sessions. The Company held a total of319 publications, including 109 publications in 2024, achievingeconomic bene¬¤ts of approximately RMB 18 million. ThroughQCC activities, the Company created an atmosphere in whichmanagement sta? at the team leader level or above proactivelysolve problems, promoting continuous quality improvement.

The Company systematically promoted the construction of a quality training system from both external and internal dimensions tocomprehensively improve employees' quality management capabilities, and deepen the concept of quality culture.Through a combination of external and internal training, the Company built a team with high-quality awareness and professionalcapabilities, laying a solid foundation for continuously improving product quality and corporate competitiveness.

Case: QCC (Quality Control Circle) Activities - Stimulating the Vitality of All Employees inQuality Improvement

Case: Construction of Quality Training System

Full-processzero-defectprocess review

Introductionof the 16949process system

Electroniccontrol qualitycontrol upgrade

Quality riskmanagement

Quality control of raw materials:

Quality control of production process:

Life-cyclequalitymanagement

Quality management measures

The Company specially set up a "training class" for new recruited college students to help them quicklyintegrate into the Company's quality management system through a combination of theory and practice. At thesame time, the Company's senior management led a series of special training, including "Quality is Value","End-to-End Quality Management", "Zero-Defect Management", "PONC System Promotion", "Five ToolsApplication", and "8D Working Method", covering multiple levels from concept to practice. Through internaltraining, the Company not only improved the professional capabilities of employees, but also built a qualitymanagement atmosphere featuring full participation and shared responsibility.

The Company actively organized grassroots managers to participate in the "Jianfeng Team LeaderTraining Class" to enhance the leadership and execution capabilities of team leaders in qualitymanagement through courses and practical training. Through external training, the Company not onlyintroduced advanced industry experience, but also further strengthened the quality awareness andproblem-solving ability of the grassroots management team.

Internaltraining

ExternaltrainingInternal and External Quality Training

4039

Create quality with craftsmanship, and empower society with technological innovation

To implement the company's "Zero-Defect Quality" developmentstrategy, achieve steady improvement in product quality, enhanceoverall quality awareness among employees, re¬¤ne Jack Technology'squality culture, strengthen quality execution at all levels, and boostmarket competitiveness, the Company organized the "Quality Month"Event in September 2024. Through diversified activities such as the"Quality Exposure Exhibition", "Quality Knowledge Competition", "Zero-Defect Debate Contest", "Defective Product Destruction Campaign","Improvement Project Implementation" and "Quality ManagementExperience Sharing", the Company aimed to embed the principles of"quality management is everyone's responsibility" and "identify rootcause through self-re¬¥ection" into the corporate ethos.

Case: "Quality Month" Event -- Building a Zero-Defect Quality Culture

Digital strategy

The Company actively responded to the national digitaltransformation strategy by establishing a digital management andcontrol system and building an integrated information managementplatform to comprehensively optimize business processes. In termsof information security, the Company has obtained ISO 27001Information Security Management System Certi¬¤cation. It has setup a multi-layered protection mechanism, encompassing front-endaccess controls, mid-end transmission encryption, and back-endstorage safeguards to ensure all-round data security. In addition, theCompany conducted regular information security training and riskassessments to continuously elevate employee security awareness.This ensured dynamic optimization and efficient operation of theinformation security management system, providing a solid safetyfoundation for the Company's digital transformation and supportingsustainable business growth.

ISO27001 Information Security Management System Certi¬¤cation

Digital construction architecture

Connotation of the zero-defect quality culture

Smartoperations

IT infrastructure

IOT

Data assets

Main value streamDigital platformData security systemData management system

AI-poweredanalysis forBI intelligentdecision-makingTag data TDMUni¬¤ed datawarehouse BW

Integrated productdevelopment process

Lead-to-cashprocess

Integrated supplychain process

Issue-to-resolutionprocess£¨IPD£©£¨LTC£©£¨ISC£©£¨ITR£©Product digitalization

platform (PLM/IPD)

Digital marketingplatform (CRM/DMS)

Supply chaindigitalization platform(MOM/SRM)

Service digital platform(ITR)

Digitalmarketing

5G networkCloud desktopDevelopment platformData desensitizationData assets±¾µØ»ú·¿

Customertaggingsystem

Suppliertaggingsystem

Raw material

taggingsystemDealertaggingsystem

Producttaggingsystem

Employeetaggingsystem

Smart R&DFinancialdomainQualitydomain

SmartfactoryProcurement

domainMarketingdomain

FactorydomainDistributordomain

OrderdomainCustomerdomain

BusinessanalysisO?cedomainProductdomain

Precisionmarketing

Leadacquisition

CustomersegmentationBusinessopportunitycultivation

Secondarysales

Precisionservice

Predictivemaintenance

E?cientserviceNPSimprovement

SalesimprovementPrecisiondelivery

Delivery timelineforecast

InventoryguidanceProgressfeedback

PrecisionpromotionPrecisionR&D

Qualityenhancement

Hot productcreationFast launch

Satisfactionimprovement

Industrial digitalization operation platform

Demandmanagement

Customermanagement

Productionplanning

ServicerequestsProjectmanagement

Eventmanagement

Productionimplementation

Service ticketsProductmanagement

Inventorymanagement

Digitalassembly

ServicerecordsCBB shelves

Ordermanagement

Productinventory

EvaluationmanagementCon¬¤gurationmanagement

Contractmanagement

Qualitytraceability

Intelligentcustomer serviceProductmanagement

Receivablesmanagement

Procurement

plans

Knowledge

database

One "root cause":you are the root cause of all problems and the answer to all solutions; meanwhile, you are boththe cause and the resultTwo "in-depths":in-depth learning, which requires to translate learning capabilities into productivity; in-depth

thinking, which requires to break cognitive inertia and expand intellectual boundariesThree "musts":leaders must exemplify what they require employees to do; if employees struggle to meetstandards, leaders must provide support; if employees make errors, leaders must make self-re´ection

Major honors

ProductionmanagementDevicemanagementQualitymanagement

IoT device unit IIoT device unit IIIoT device unit III

Production linemanagement

ProcurementmanagementInventorymanagementPayrollmanagementOtherapplicationsIntelligent garment manufacturing IoTPlatformGatewayGatewayGateway

Automated storage &retrieval system

4241

Create quality with craftsmanship, and empower society with technological innovation

Comprehensive BusinessDigitalization 1.0

Build Smart Operations 2.0

Build Industry Ecosystem 3.0

Guided by the strategic objectives of "customer-oriented principle, business growth incentive, organizational e?ciency enhancement, and wholeindustrial chain empowerment", the company has comprehensively established a digitization control system. On the production side, the Companyoptimized resource allocation and re¬¤ned operations by collecting and analyzing real-time data, thereby signi¬¤cantly improving product quality andcapacity to ensure e?cient delivery; In sales and marketing segments, the Company leveraged digital marketing tools to gain in-depth customerneeds, precise target key consumer groups, and quickly respond to market dynamics, allowing the Company to tailor solutions for customers andimprove customer satisfaction. In addition, the Company used the digital o?ce system to break down departmental barriers, allowing e?cientcross-departmental collaboration, and realizing improvement in organizational e?ectiveness and operating cost reduction. This approach not onlydelivered exceptional customer experiences but also drove sustained business growth and value creation across the entire industrial chain.

Customer-

orientedprinciple

The Company continuously reviewed its 10 corporate-level L1 processes, adhering to customer-oriented principle and insisting on modeling, modularizing and digitizing business activities toachieve "fostering capabilities within the organization"

Businessdecisionsupport

The Company continued to build data standards, establish data warehouses, construct datamodels, and introduce BI digital platforms to support business decision-making

Global data

support

The Company established international data transmission, storage and processing capabilities,and continued to build data security protection to ensure data security and compliance

Business

growthsupport

The Company persistently developed 3 core business processes, namely IPD, LTC and ITR,which enabled end-to-end client operations and secured business victories

Organizational

e?ciencyimprovement

The Company constantly built ISC, strategic management, financial management, humanresources management and other functions and supporting processes, and adhered to improvee?ciency through digitalizationThe Company insisted on the "Iron Triangle" team structure composed of process experts,process BP and process owner, ensuring e?ective implementation of strategies and operations

Process and digitalization strategy

Digitalization Implementation Roadmap2024-20262027-20282029-2034

Process digitalizationstrategyWithin 3 years,the Company expects to achieveend-to-end digitalization of allbusiness processes centeredon customer value realization;explore digital empowermentacross the industrial chain

Within 5 years,through e?ective data valuemining, the Company expectsto initially establish 4 digitalstandards

Within 10 years,the Company expects to realizea fully connected Digital Jack,driving business through datavalue from customers to Jack

The Company continued to build digital systems such as DMS, supplier-oriented cloud MES, andPubLink, and persisted in empowering the upstream and downstream industries with digitalizationWholeindustrial

chainempowerment

Process Integration Relationship Diagram and System Framework

8. Decision support platform (BI)

1. R&D management platform PLM

Customers

2. Service management platform

4. Human

resourcesmanagementplatform HCM

5. Financial

managementERP

6. Master data

integration andIT governance

7. Collaborative

o?ce platform

2. Marketing management platform

DMS/CRM

3. Production management

platform MOM

Customerdemands

LeadsContracts

Issues

Customers

4443

Create quality with craftsmanship, and empower society with technological innovation

Data security managementTo strengthen information security management, standardize data security operations, enhance data protection capabilities, and safeguard datasecurity while advancing digital construction, the Company established the Data Security Management Policy. The Policy encompasses full life-cycle management of data security, with explicit requirements for data backup management to ensure protection across all data processingstages. In addition, the Policy de¬¤ned the speci¬¤c requirements for organizational structure, management content and data backup, providingsystematic guidelines and standardized operational basis for data security management, and laying a solid foundation for informatizationdevelopment.

The IT Departmentis responsiblefor the backup,inspection, andsupervision ofapplication systemdata and devicecon¬¤gurationinformationThe ArchivesO?ce isresponsible for thestorage of o?inebackup media

Non-data managementcenter personnel are strictlyprohibited from entering thecomputer room's data centerwithout permission to preventdamage to hardware facilitiesand leakage of confidentialinformation

Offline media storingapplication systems or criticaldata are strictly forbidden tobe lent out. If necessary forwork, it is required to obtainapproval from the first-leveldepartment's leader

Data requiring long-termretention must be transferredto new offline media withinthe old one's quality warrantyperiod to prevent loss due todata failure

All departments mustconduct self-inspectionsand corrective actions ondata security managementimplementation at least onceevery year

All personnel are strictlyprohibited from performingoperations beyond theirauthority to avoid destructionof the information system andthe leakage of confidentialinformation

Documents containingpasswords must be stored andshall not be disclosed arbitrarily.Such documents must bepromptly destroyed when nolonger needed

Important information andfiles must be properly keptto prevent loss or leakage.Waste materials in the datacenter, such as printed papersand magnetic storage, mustbe destroyed immediately

Establish backup¬¤le recordsand archives,comprehensivelyrecord the backupinformation

The content shallcomprehensivelycover applicationsystem data, criticalnetwork systemdata and operatingenvironmentIncludingoperating systems,applicationsoftware,system data,application dataand con¬¤gurationinformation

At least two copiesof key system datashall be stored,with one in the datacenter and anotherone in the disasterrecovery center;at least one copy ofother systems shallbe stored

Regular fullbackup,incrementalbackup, anddi?erential backupThe backup time isscheduled duringthe o?-peak periodof business (suchas 0:00 AM - 5:00AM)

Before softwareinstallation,system upgrades,or con¬¤gurationchanges, asnapshot or backupshall be performedto ensure rapidrecovery in case offailure

System administratorshall check backupstatus dailyIf the backup fails,identify the causeand perform amanual backup

Unauthorizeddisclosure,lending, or transferof backup data isstrictly prohibited

O?ine backupmedia mustbe stored in alocation equippedwith ¬¤reproof,heatproof,moisture-proof,dust-proof, anti-magnetic and anti-theft facilities

Data backup

Data security management

Data Security Management Organizational Structure

Division ofresponsibilities

Backup contentBackup methodsBackup check

Backup storageData security

O?ine backupmanagementSystem changebackupBackup mediastorage

Quality Process IT Committee

Person in Charge of Process IT

Person in Chargeof Data Security in

Marketing Team

Person in Chargeof Data Securityin Product Team

Person in Chargeof Data Security inSupply Chain Team

Persons in chargeof data security in

other functionaldepartments

4645

Create quality with craftsmanship, and empower society with technological innovation

Excellent customer servicesExceptional customer service is a key driver in shaping the Company's brand image and strengthening market competitiveness. The Companydeepens its ITR service system based on a customer-oriented approach. In 2024, the Company consolidated social repair resources to establishthe "Expedited Rabbit" Club, building a localized "Three Fast" service network; established a three-tier remote expert system to achieve "local+ cloud" dual service guarantees; created a "Bad News Straight to the Management" mechanism where critical issues trigger recalls; continuedto conduct third-party NPS surveys, use data to drive continuous service optimization, and comprehensively improve customer satisfaction andbrand competitiveness.

The Company adheres to a "customer rights ¬¤rst" principle, establishing a closed-loop full-process service system; strictly enforces the "ThreeGuarantees Policy" (warranty, replacement, refund); sets up a "straight to the Management" channel, ensuring "24-hour decision-makingresponse" for customer issues and triggers "proactive recalls" for major quality issues; the Company continuously optimizes service throughmulti-channel complaint resolution and third-party surveys, building a dual-metric evaluation system featuring "NPS + customer satisfaction".

Timeliness:build a three-in-one localized fastservice system combining online-o?ine + predictiveservice platform to achieve "Three Fast" (10-minuteresponse, 1-hour onsite arrival, 30-minuteresolution)Professionalism:excellent skills, high-quality parts,and satisfactory repairs

Standardization:systematic processes,standardized operations, visible procedures,transparent pricing

Service marketing model innovation:focus oncustomer needs, create the "Expedited RabbitClub" to establish one-hour service circles whichcan save customers money, time and hassleAfter-sales service:

develop popular spare parts,promote global adoption of OEM parts, advancefast service, value marketing and sustainableservice

Five-Star After-Sales Service

Certi¬¤cation

ITR service system

Customers' rights and interests protection

Services support brands and create customer valueIncrease NPS by 2 points every year: building a service ecosystem combined with Innovation

Rapid Response Rate 100%Service marketing

Continuous improvement of NPSManagement responsibilities

Service strategyTeam & Organizational ManagementTransformation and Process Management

Measurement, analysis and

improvement

Customer satisfactionmeasurement and analysisSatisfaction survey

Customer voiceTOPN improvementmanagement

Resource management

Human resourcesIT and tools

CapacityenhancementKnowledgemanagement

Issue handling

MarketingProductsSupply chainTechnical servicesSpare parts support

Internal improvementsKey customer

voice

Bad news straightto the Management

VOC analysis andmanagement

PONC analysis

Zero-defectmanagement

Strategic goals

Strategicdirection

Support

Process digitalization: create omni-channel digital service processes (ITR, global intelligent customer service, etc.)Organization and talent:

build a customer-oriented service organization and cultivate globalized, youthful, andversatile talent skilled in both service software and hardware.

Customer service strategy

Global customer service network

Global customer service

network

Marketplaceservice teamGlobal Customer Service

Advisory DepartmentGlobal Customer Technical

Support Department

Global Intelligent CallCenter

Global Customer Parts

Service DepartmentKey Account Integrated

Delivery Department

Global end customers

Expedited RabbitClub

GlobaldistributorsGlobalmarketplaces

Overseasbusiness o?ces

Authorizedservice outletsGlobal Customer ServiceDepartmentCustomer requests

Product recall

When a product defect meets the "recall mechanism" threshold, the Quality Committee immediately issues a recall. The Product Team led therapid resolution for products, followed by the Service Department's follow-up to form a closed loop and ensure customer satisfaction.

Issue solutions

Handling

SolutionsProgressfollow-up

Closure

Result veri¬¤cationClosed-loopfollow-upIssue originResponsibilityallocationAcceptance

Customer

surveyVOC

ServiceRequests

Fast

service

Major honors

Customer satisfaction

5049

Serve the world through intelligent solution, Help upgrade intelligent garment manufacturing

Customer Service ResponseProfessional services

The Company has established a global service network, achieving full coverage of 10-minute response times for customer requests. For majorquality issues, the Company has launched the "Bad News Straight to the Management" mechanism, with mid-to-senior management takingthe lead, providing solutions within 7 days and closing the loop within 30 days. Through global deployment and ´attened decision-making,the Company has built a service closed-loop featuring "rapid response - efficient handling - continuous optimization", ensuring ongoingimprovement in customer service experience.

The Company is committed to building professional customer service, launching the "Expedited Rabbit Club" to gather and empower socialrepair technicians. By enhancing their technical skills and establishing a collaborative support mechanism, the Company provides customerswith the "Three Fast" services featuring fast response, fast on-site arrival and fast resolution. In addition, the Company has established a three-tier remote expert system, leveraging industry experts to o?er timely and precise remote guidance, further expanding service coverage andconvenience.

55,403

customer cases

99.94%98.2%

During the reporting period, the Companyhandled

With a customer feedbackresponse rate of

Severeissues

directly sent to the Top Management for handling

directly sent to the VP-level o?cers for handling

directly sent to the LPDT for handlinghandled by department managers

Major issues

Signi¬¤cant issuesGeneral issues

A ¬¤rst-time resolution rate of

Quality issue management by level

Service response

channels

7/24 Jack service hotline: 4008876858WeChat service account: Jack Fa? ServiceInternational service email: sales@chinajack.com

Online cu?omerservice and AIAgent Xiao Jie:

In 2024, the Company founded the "Expedited Rabbit Club", implementing a standardized service process of "10-minute response,1-hour on-site arrival, and 30-minute resolution". At the same time, it launched a global skills competition, training and certifyingover 2,000 repair technicians. Through the club and skills league, the Company enhanced technicians' service capabilities andprofessional level, strengthening customers' perception of the "Three Fast" services.

Case: "Expedited Rabbit Club" Launched Nationwide, with "Three Fast" ServicesBoosting Comprehensive Customer Experience Upgrade

Case: Technical Training + Remote Experts Continuously Empower Frontline Fast andProfessional Services

Key performance

5251

Serve the world through intelligent solution, Help upgrade intelligent garment manufacturing

Customer satisfaction survey

Customer Satisfaction Improvement

NPS Survey

The Company conducted ongoing customer satisfaction follow-ups via the Call Center, while entrusting third-party consultants for NPS-speci¬¤csurveys to continuously gather improvement feedback, optimize product and service experiences, and systematically elevate customersatisfaction.

The company holds annual customer satisfaction meetings with cross-functional teams (e.g., Product, Supply Chain) to discuss feedback andset improvement goals. Regular analysis of quality feedback and complaint resolution ensures open issues are tracked and corrected. Forrecurring issues, dedicated meetings are held to drive cross-departmental corrective actions and full resolution.

In 2024, the company launched NPS surveys in China and India, with overall NPS performance remaining consistently high.

During the reporting period, the Company conducted

customer satisfaction surveys, sent over

10,000

questionnaires with a

95%

questionnaire return rate. The customer satisfaction rate reached

88.5%

.

The Company built an efficient service system centered on customer needs, regularly organizing service activities to listen to customerfeedback and respond promptly. Through proactive on-site service inspections, designated "Monthly Service Days" and other activities,potential issues were resolved preemptively. In addition, the Company rapidly activated emergency protocols during unexpected events,providing immediate assistance to ensure sable operations of the customer business. Through continuously re¬¤ned service systems and long-term technical support, the Company has earned customers' trust, reinforcing customers' brand loyalty.

Proactive service

To address customers' challenges in complex manufacturing processes and talent recruitment, we established a systematic trainingprogram combining theoretical instruction, hands-on demonstrations and on-site guidance to help employees quickly master coreskills. Through the "3+3+3 Global Process Inspection" Mode (3-day on-site diagnosis, 3-day intensive sampling, 3-day follow-up), theCompany e?ectively resolved customers' process bottlenecks.

Case: "Enhance Quality and E?ciency, Customer Reward" Initiative Launched, with Closed-loopImplementation from Skills Training to Process Breakthroughs

The Company and dealer service teams conducted regular and proactive follow-ups with customers, dynamically monitoredequipment operating conditions, and proactively dispatched engineers to perform on-site inspections, maintenance, and repairs.Through fast and attentive services, the Company ensured e?cient and stable operations of the customers' equipment.

Case: Service Inspection: Proactive On-site Inspection and Maintenance to Ensure Worry-freeProduction for Customers

Key performance

5453

Serve the world through intelligent solution, Help upgrade intelligent garment manufacturing

In August 2024 Liaoning Jianchang ´oods, the Company immediately activated the emergency plan and dispatched a professionalteam to the disaster area to check and repair equipment. The team checked and repaired nearly 1,000 damaged devices within5 days, enabling customer to resume production rapidly. Concurrently, the team provided maintenance guidance and improvedmanagement level, minimizing customers' losses with e?cient service and earning customers' recognition.

Case: Disaster Response: Rapid Equipment Repair Enables Customers toResume Production

Service accessibilityWith 8,000+ channels across 170+ countries and a 20,000+ member service team, the Company operates over 30 self-built service o?cesand has established a global knowledge base platform that integrates over 2,000 operational guides and troubleshooting solutions. Combinedwith the three-level remote expert system and 1-minute remote video response, the resolution rate reached 98%.

New supplier development and onboardingTo deepen strategic collaboration with suppliers and build a stable community of shared interests, the Company revised and improved theSupplier Management Regulations based on the Annual Supplier Conference and Strategic Supplier Meetings, achieving standardizedmanagement of supplier activities. Additionally, the Company optimized the Supplier Onboarding Process, established supplier onboardingprinciples to ensure new suppliers meet the Company's standards. For new suppliers' onboarding, the Company implemented a suppliercapability assessment mechanism and developed the Supplier System Assessment Checklist, focusing on reviewing the electronic suppliers'compliance of raw materials and the e?ectiveness of green materials to ensure compliance with green procurement policies and achieveresource conservation and recycling. In 2024, 100% of newly onboarded suppliers underwent audits.

Supply chain managementSustainable development of the supply chain is critically important for the Company, as it relates to resource stability, operational resilience,and market competitiveness. To mitigate supply chain risks and enhance management e?ciency, Jack Technology strictly controls supplieronboarding, improves evaluation mechanisms, implements green procurement, and strengthens environmental and social responsibility audits.In 2024, through standardized management, digital supervision, and comprehensive reviews, the Company ensured supply chain compliance,e?ciency, and sustainability, achieving synergistic development of economic and environmental bene¬¤ts.

During the reporting period, a total of

new suppliers were certified, of which

suppliers passedenvironmental, social, quality and other sustainable development-related system certifications, accounting for100%

of total.

Sustainable centralized procurement control model

The Company has established the Procurement Management Department, fully responsible for supplier sourcing, quality management, costcontrol and supplier ESG promotion. The Procurement Management Department ensures partners align with the Company's sustainabledevelopment goals through a strict supplier screening mechanism, while implementing a quality monitoring system to enhance supply chainstability. In addition, the department actively promotes suppliers to fulfill their ESG responsibilities, encourages green production, socialresponsibility practices and compliance operations, aiming to build an eco-friendly, e?cient, and responsible procurement system and supportthe Company's sustainability.

Purchasing Management

Department

EquipmentProcurement PositionGeneral ProcurementPosition

ESG SpecialistPositionHigh-end ProcurementDepartment

Cost-OptimizedAuto-cutterProcurementDepartment

Cost Veri¬¤cationPositionSupplier ManagementDepartmentProcurementDepartment IProcurementDepartment II

Organizational Structure of Procurement Management Division

Key performance

5655

Serve the world through intelligent solution, Help upgrade intelligent garment manufacturing

To optimize supplier management, the Company has established a standardized Supplier Evaluation, Guidance and Elimination ProcessDocumentation, clearly de¬¤ning the standardized procedures for supplier rating, quality guidance, and optimization & elimination, while embeddinga risk management mechanism to identify and address potential risks. During evaluations, the Company's SQE organizes a professional team toconduct audits and guidance at suppliers' sites, conducting comprehensive assessments of their overall capabilities, with a focus on supply chainquality, delivery performance, and compliance risks. Ultimately, the Decision Committee determines whether to eliminate the suppliers based onaudit results and risk assessment reports, ensuring e?cient, reliable, and risk-controlled supply chain management.In accordance with the QSA Supplier Audit Standards, Supplier Management Regulations and Supplier Delivery Audit Checklist and other relevantregulations, the Company has taken a series of measures to e?ectively control supplier risks. The Company further strengthens risk managementcapabilities by raising the review threshold for new suppliers, establishing a digital management system, and implementing a "one material, multiplesources" management strategy. The SQE members of the Company's Procurement Department conducts audits and evaluations on the environment,safety, personnel and other aspects of suppliers based on the annual audit plan and temporary plans. Suppliers failing audits are terminated from furthercooperation. The implementation of these measures has signi¬¤cantly reduced supply chain risks and ensured stable business operations.

Supplier Risk Management Measures

? Supplier policies and compliance requirements are incorporated into the QSA Supplier Audit Standards as one

of the audit criteria for new suppliers? For existing suppliers, the Company has formulated an annual supplier audit plan. Suppliers failing to meet

requirements will receive guidance and will be given a time frame for recti¬¤cation. The Company will provideprioritized assistance or on-site guidance to suppliers failing to meet the standards after recti¬¤cation.? The Company has formulated the Supplier Delivery Audit Checklist based on the principle of "one material,

multiple sources" to eliminate policy compliance risks? The Company has established a digital system, ensuring clear and transparent supplier information

? Supplier production environment management is incorporated into the QSA Supplier Audit Standards as one ofthe audit criteria for new suppliers

? Supplier production environment management is also incorporated into the Relevant Notification Letterregulations. The Company signs agreements with suppliers to make this as one of the qualification reviewrequirements for new suppliers? A Supplier 14001 System Certi¬¤cate is required as one of the conditions for onboarding new suppliers

? Suppliers' employee welfare, development channels, and training programs are incorporated into the QSA

Supplier Audit Standards as one of the audit criteria for new suppliers.

? Suppliers are required to use standardized turnover boxes speci¬¤ed by Jack and the requirement has beenincluded in the Supplier Management Regulations.? When onboarding new suppliers, the Company will sign a Relevant Noti¬¤cation Letter signed with the supplierand strictly conduct quali¬¤cation review to prevent the impact on the environment and society caused by materialissues? When onboarding new suppliers, the Company will include the logistics risks in the QSA Supplier AuditStandards as one of the audit requirements for new suppliers Supplier risk management countermeasures

Supplier policies andcompliance risks

Supplier productionenvironment management risks

Supplier personnelmanagement risks

Supplier logistics risks

Supplier ESG

The company rigorously controls supplier access, implements green procurement, and conducts environmental and social audits to promotesustainable supply chain development, achieving a win-win outcome for both economic and environmental bene¬¤ts. To ensure standardizedmanagement, the company adopts ISO 9001 and ISO 14001 standards and has established the "Jack Supplier Sustainable DevelopmentManagement Regulations."Additionally, the company issues the "Stakeholder Noti¬¤cation Letter" to suppliers and relevant parties, clearly de¬¤ningenvironmental management requirements.Through unannounced inspections, the company ensures corrective actions are implemented,guaranteeingenvironmental accountability. During supplier onboarding, 100% of suppliers in 2024 signed the "Relevant Acknowledgment Letter."

No suppliers were rejected due to non-compliancewith environmental or social factors.

suppliers underwent social impact assessments.

During the reporting period,

suppliers underwent environmental protectionassessments.

Supplier Goals, Policies, and Commitments

Increase the proportion of suppliers with ISO 14001certi¬¤cation by 3%.Enhance environmental awareness, reducepollution emissions, and elevate the industry'soverall environmental standards.For compliant suppliers, the company willpropose corrective actions. For those failing orrefusing to rectify issues that may lead to majorenvironmental pollution or safety incidents,measures such as order reduction or supplierreplacement will be enforced.

Among the

main suppliers,

heldISO 14001 certification (

42.39%

), a

4.39%

increase from 2023 (38%).

Increase the proportion of local suppliers by 8%.Promote local economic growth and socialstability by forming strategic partnerships withlocal suppliers.Under equal conditions, localized suppliersdesignated as Annual Key Supplier, AnnualExcellent Supplier, or Annual Strategic Supplierwill receive priority support in "precisionproduction," technical guidance, and "5S"initiatives to jointly optimize and develop thesupply chain.

In the reporting period, the company had

main suppliers, including

localized suppliers(60%). Compared to 2023 (

56.5%

), thelocalized supplier ratio increased by

3.5%

.

Goals

policies

Commitments

CompletionStatus

Localized SuppliersSupplier Environmental Awareness

Supplier Code of Conduct Signing

Key performance

5857

Serve the world through intelligent solution, Help upgrade intelligent garment manufacturing

Noti¬¤cation Letter to Relevant Parties

The products and related raw materials, production processes and services provided bysuppliers shall comply (or strive to comply) with national, local, and industry environmental lawsand regulations; reduce packaging materials while ensuring quality.For pollutants (wastewater, waste gas, solid waste, noise, etc.) that exceed the standard duringproduction, activities or processes, make plans and take measures to meet national or localemission standards (with signi¬¤cant annual reductions until compliance is achieved).During the production and construction process, prioritize the use of low-pollution or pollution-free production processes, production and construction equipment, and advanced constructionmethods. It is prohibited to use production processes or production and construction equipment thathave been banned by the state or local authorities. During the construction process, take necessarymeasures to reduce noise pollution and properly handle the waste at the construction site.Flammable, explosive, or toxic materials must be stored properly. Strictly observe relevantnational laws, regulations and standards, and take preventive measures to ensure thatpractitioners possess required quali¬¤cations and professional skills, to prevent accidents such as¬¤re, explosion or leakage during storage and transportation, and to avoid environmental pollutionand safety accidents.

During the reporting period, the suppliers systematically advanced quality management training, quality awarenesspromotion, and quality counseling. Over

on-site supplier training sessions were conducted annually, alongsidemore than

large-scale supplier training programs,

supplier study and research activities, and

supplierworkshops. These efforts empowered suppliers to improve lean practices, quality awareness, and digital-drivenmanagement, thereby achieving a comprehensive enhancement of the supply chain system.

In October 2024, the Company organized a supplier conference to discuss theoptimization and innovation of supply chain management with supplier representatives.A total of 213 suppliers nationwide attended the conference. The conference focused ondeepening strategic exchanges and cooperation in ¬¤ve dimensions: supplier ESG system,quality, delivery, service, and new products. The conference promoted improvement ofsuppliers' capabilities in technology, quality, delivery and other processes. At the sametime, it emphasized the improvement of suppliers' ESG management capabilities ingreen production, labor rights, compliance and anti-corruption management, etc., jointlypromoting the sustainable development of both parties and laying the foundation forbuilding a stable and e?cient supply chain system.

Case: 2024 Supplier Conference, deepening strategic cooperation toempower high-quality development of the supply chain

SRM¹©Ó¦É̹ÜÀíϵͳ½çÃæ

Digital empowerment of suppliers

Upholding the concept of "long-term cooperation, mutual benefit andwin-win results", and taking the SRM (supplier relationship management)system as the core, the Company comprehensively promotes the digitalempowerment of suppliers. By building delivery collaboration modulessuch as supplier admission and exit, supplier evaluation, delivery, return,and quality inspection, the Company has achieved digital managementof the entire supplier life cycle. This system not only improves thetransparency and efficiency of the supply chain, but also strengthenscollaboration with suppliers, ensuring e?cient online operation of everylink from admission to exit of suppliers, facilitating online management ofthe entire supply chain, and promoting e?cient operation and continuousoptimization of the overall business.

Dimensions for

rating of ?arand excellent

suppliers

Quality pass rate

ServiceperformanceProductdevelopment

Timely deliveryrate

Supplier qualitysystem and ESGassessment

Timely delivery rateSupplier quality system and

ESG assessment

Quality pass rate

Service performanceProduct development

Assessment of the averageannual system ordercompletion rate and downtimeAssessment of suppliersbased on their quality system,raw material procurementand process environmentalawareness, anti-fraudactions, labor rights, materialenvironmental protection andother dimensions

Assessment of the average qualitypass rate of parts submitted forinspection for the year

The Company's scoring on serviceperformance of suppliersAssessment of the suppliers' timeliness inthe development of new parts

The Company established a supplier industrial park to optimizesupplier management. By concentrating suppliers within theindustrial park, it effectively reduced transportation costs for rawmaterials and components and facilitated close collaboration inareas such as production planning and inventory management.This aimed to ensure product quality, facilitate quality monitoring,achieve unified quality standards, promote innovation andtechnology exchanges, accelerate technology sharing, promotejoint R&D, and enable mutual support and common developmentamong suppliers, thereby building a more stable businessnetwork for the Company, and jointly promoting the prosperity anddevelopment of the regional economy.

Case: Building an Industrial Park Ecosystem to Drive Regional Economic Prosperity

Key performance

6059

Serve the world through intelligent solution, Help upgrade intelligent garment manufacturing

Sunshine procurementThe Company is committed to building a transparent and fair procurement system for comprehensively promoting supply chain compliancemanagement, so as to advocate observation of fundamental principles of integrity, eliminate fraud, and work with suppliers to create a fair andsustainable supply chain ecosystem. The Company enters into anti-fraud agreements with all suppliers, with a signing rate of 100%. At theannual supplier conference, the Company strengthened anti-fraud advocacy and required all suppliers to sign an integrity commitment letter toenhance compliance awareness and implement transparent procurement.In addition, the Company formulated the Material Bidding Process and related regulations to clarify the key points and operationalrequirements of bid opening, bidding and evaluation. By standardizing procedures and issuing tender documents, openness, transparency andfair competition are ensured in the procurement process, e?ciently promoting compliance management.

In January 2024, the Company organized an anti-fraud oath ceremony for supplier representatives and procurement departmentemployees. All participants jointly studied anti-fraud policies and related regulations, and committed to upholding the fundamentalprinciples of integrity, resisting commercial bribery and other misconduct, and fostering a fair and just business environment. TheCompany emphasized that it will continue to improve its anti-fraud system, have zero tolerance towards fraudulent behavior, andwork together to build a clean supply chain ecosystem.

Case: supply chain anti-fraud oath ceremony, promoting supply compliance through integritycommitment

SRM system portal

My platformMy platformTasks

Collaborative ordermanagementCollaborative ordermanagementCollaborative quality

managementCollaborative ¬¤nancial

managementMy noti¬¤cationsPassword retrieval

request

Plastic crate

managementSupplier name change

management

Feeding managementDrawing managementCollaborative inventory

managementInquiry information

managementContract managementNoti¬¤cationmanagement

Performance assessment

management

System portalSupplier portal

Supplier admission

and ¬¤lesSample delivery

managementDrawing managementCollaborative inventory

managementPerformance assessment

managementInquiry information

managementContract management

Supplier management

Collaborative order

managementVMI materialmanagementCollaborative quality

managementProcurement report

managementCollaborative ¬¤nancial

management

Quality report

management

Plastic crate

managementCollaborative return

management

Procurement information

management

Basic SAP dataBasic procurement

data

Basic warehouse data

Basic quality data

Basic data management

Basic scheduling

and log

SMS log

Interface

synchronizationSystemmanagement

Tools

Processmanagement

SystemmanagementBackstagemanagement

SRM supplier management system

Participation in standard preparationGiving full play to its experience in the development of standardized management systems, the Company actively participates in thepreparation and improvement of industry standards. By integrating internal resources and combining market demands, the Company not onlyparticipates deeply in standard preparation, but also plays a leading role in key links, leading the standardized development of the industryand contributing to improving the overall development level of the industry. Hu Wenhai, President of the Product Team, was honored the"National Advanced Worker in Standardization of Industrial Machinery Electrical System Industry in 2023" for his outstanding performance instandardization work.

Help industry development

The Company is deeply involved in the industry ecosystem, actively participating in standard-setting and the establishment of industry norms.Leveraging its professional expertise, it empowers industry development and sets new benchmarks for the sector. By actively participating inhigh-level industry conferences at home and abroad, the Company engages in forward-looking dialogues with leading global companies andexperts to jointly chart the blueprint for the future of the industry. Moreover, the Company continues to expand its high-end cooperation networkthrough joining a number of authoritative industry associations and leveraging multi-dimensional collaborative platforms, promoting industrialchain integration and innovation, and injecting new impetus into the high-quality development of the industry.

During the reporting period, the Company participated in the drafting of

standards (including project approval),including

national standards,

industry standards and

association standards.Standard referenceNameClassi¬¤cation

Role of theCompanyGB/T 30420.1-2024Sewing Machinery Terminology - Part 1: General TerminologyNational standardsMain drafterGB/T 30420.1-2024Sewing Machinery Terminology - Part 1: General Terminology (English version)National standardsMain drafterGB/T 30420.3-2023

Sewing Machinery Terminology Part 3: Spreading and Cutting Machines

Terminology (English version)

National standardsMain drafterGB/T 30420.4Sewing Machinery Terminology - Part 4: Functional Parts TerminologyNational standardsParticipated inQB/T 2046-2024

Industrial Sewing Machine Test Method for Thread Tightening Rate of Single

Needle Straight Line Lockstitch Machine

Industry standardsMain drafterQB/T4391Industrial Sewing Machine Feed-o?-the-arm and Chain-Stitch Sewing Machine HeadIndustry standardsMain drafterQB/T 4304-2024Industrial Sewing Machine Computer Controlled Pattern Sewing MachineIndustry standardsParticipated inQB/T2529-2024Computer Controlled Simple Interlock Sewing MachineIndustry standardsParticipated inQB/T 2148-2024Industrial Sewing Machine Medium Speed Zigzag Sewing MachineIndustry standardsParticipated inQB/T 4384.2

Test Method for Energy Consumption of Sewing Machines - Part 2: Post-bed

machine

Industry standardsParticipated inQB/T 4384.3

Test Method for Energy Consumption of Sewing Machines - Part 3: Overlock

Machines

Industry standardsParticipated inPlan No.20242287-T-604

Mechanical and Electrical Equipment - Sewing Machinery Digital Control

System - Part 2: Data Dictionary

National standardsParticipated inPlan No.2023-0283T-QB

Preparation of the standard General Principles for Evaluation of Smart Parks in

Light Industry

Industry standardsMain drafterPlan No.2023-1699-QBSeam Material Glue DispenserIndustry standardsParticipated inPlan No.2023-1701-QBThread Trimming MachineIndustry standardsParticipated inPlan No.2024-1843T-QBInspection Rules for Sewing Machinery ProductsIndustry standardsParticipated inPlan No.2024-1844T-QBSewing Machine Terminology Control System TerminologyIndustry standardsParticipated inPlan No.2024-1764T-QBGeneral Technical Requirements for Sewing Machine FramesIndustry standardsParticipated inPlan No.2024-1765T-QBGeneral Technical Requirements for Sewing Machine TablesIndustry standardsParticipated in

Summary of standards that the Company has participated in the preparation

Key performance

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Serve the world through intelligent solution, Help upgrade intelligent garment manufacturing

Major industry eventsUpholding the concept of openness and cooperation, the Company actively participates in exchanges and cooperation with variousindustry associations. By participating in various activities of industry associations, the Company not only has an in-depth grasp of industrydevelopment trends, but also explores cooperation opportunities with other companies, bringing new vitality to the development of the industry.

In April 2024, the Company participated in the Frankfurt International Exhibition in Germany with its international brands includingBullmer, Vibemac and Maica.Case: the Company participated in the Frankfurt Exhibition in Germany, making a newbreakthrough in brand internationalization and technical cooperation

In August 2024, Jack Technology, together with the Vietnam Textile and Apparel Association and several companies, held the"Artificial Intelligence and Intelligent Manufacturing" Summit Forum in Vietnam. The event brought together more than 150representatives from garment companies in China, South Korea and Vietnam to discuss the path of digital transformation in theindustry. At the event, the Company spotlighted its smart sewing equipment such as the "A.M.H" products, shared digital practicalexperience, and exchanged views with brand owners on ´exible production trends.

In December 2024, the Company brought a complete set of intelligent connection solutions to the Myanmar International Textile& Garment Machinery Exhibition. With the excellent performance and innovative technology of star products such as "A.M.H" and"Urus" products, the Company attracted attention of many customers and media. In addition, "Urus" products stunned the audiencewith a world record of 1001.98 meters, winning wide recognition and fully demonstrating the Company's intelligent manufacturingstrength and international in´uence.

In September 2024, the Company held a new product launch event in Bangladesh, spotlighting it smart sewing equipment such as"A.M.H" and "Urus", attracting the attention of many local large clothing company leaders. "Urus" sewing machines demonstratedcontinuous sewing of complex fabrics at the event, showing excellent stability and efficiency, and earned rounds of applause.This launch event not only demonstrated the Company's technical strength, but also injected strong impetus into the high-qualitydevelopment of Bangladesh's garment industry.In October 2024, the Company organized an overseas distributorconference in Taizhou with the theme of "Blockbuster ProductsCreate Value and Technology Wins the Future". The event attractedoverseas distributors and representatives from over one hundredoverseas clothing companies to deepen cooperation consensusthrough smart factory visits, hot product strategy discussions andother activities. During the event, the Company highlighted innovativeproducts such as A.M.H and Urus series, as well as complete sets ofintelligent connection solutions, further consolidating the Company'sstrategic partnership with global partners.

In June 2024, the Company successfully held a launch event inCambodia as part of its global launch campaign for Urus products.At the event, through speed racing, off-road races (processing onextreme fabrics), and other activities, Urus intelligent sewing machinesdemonstrated supreme performance on various extreme fabrics andwon unanimous praise from participants. The leaders of the associationsaid that this product will provide important support for the sustainabledevelopment of the textile industry. Through this launch event, theCompany not only showcased its technical strength in the field ofsewing equipment, but also received extensive coverage from localmedia, e?ectively boosting the brand's international in´uence.

Case: the Company joined hands with partners in the industry to promote the intelligent

upgrading of Vietnam's garment industry

Case: the Company brought two best-selling products, namely A.M.H and Urus, to the Myanmarexhibition, and won wide acclamation and enhanced its international in´uence

Case: the Company held a new product launch event in Bangladesh, and A.M.H and Urusseries won high recognition

Case: the Company organized a global distributor conference for exploring overseas markets

Case: the Company held a global launch campaign for its Urus products, gaining wide

recognition from the Cambodian textile industry

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Name of associationsTitleChina National Garment AssociationVice PresidentChina Textile Planning Research AssociationChairmanChina Sewing Machinery AssociationVice ChairmanZhejiang Veterans Support AssociationExecutive Vice PresidentThe Listed Company Association of ZhejiangVice PresidentYouth Entrepreneurs Association of ZhejiangVice PresidentZhejiang New Generation Entrepreneurs AssociationVice PresidentZhejiang Federation of Industry and CommerceStanding Committee MemberTaizhou Import and Export Enterprises AssociationPresidentTaizhou Sewing Equipment Industry AssociationPresidentTaizhou Association for Party A?airs Responsible Persons in NewEconomic Organizations and New Social Organizations

PresidentTaizhou Human Resources Service AssociationPresidentTaizhou Merchants Research AssociationRotating PresidentTaizhou Federation of Industry and CommerceVice ChairmanTaizhou Federation of Enterprises, Taizhou Entrepreneurs AssociationExecutive Vice President

Taizhou New Generation Entrepreneurs AssociationExecutive Vice PresidentTaizhou Youth Entrepreneurs AssociationVice PresidentTaizhou RCCK Enterprise AssociationVice PresidentTaizhou Bay New Area Youth Entrepreneurs AssociationPresidentJiaojiang District Youth Entrepreneurs AssociationPresidentJiaojiang District New Generation Entrepreneurs AssociationPresident

Membership of associations

In December 2024, the Company wasawarded the title of "Meritorious Member"of the China Sewing Machinery Associationat the 40th Anniversary CommemorationConference of the China Sewing MachineryAssociation and the 4th Expanded Meetingof the 11th Council. This honor is a fullrecognition of the Company's long-termcontribution to the development of theindustry and re´ects the Company's statusand in´uence in the industry.

Case: honored as "Meritorious Member", demonstrating the Company's contribution to the industry

In June 2024, as the only corporate representative from ZhejiangProvince, the Company participated in the national demonstrationand exchange activity held in Danyang, Jiangsu. The event wasaimed at deepening the building and reform of the industrialworker team in the light industry and promoting the developmentof new quality productive forces through trade unions. At theconference, the Company shared its innovative practices andexperience in building an industrial workforce and improvingproductivity, which was highly recognized by all parties present.

Case: the Company's representative delivered a speech at the National Light Industry ExchangeConference as a representative of Zhejiang enterprises and was highly praised by the All-ChinaFederation of Trade Unions Zhejiang Provincial Committee

In November 2024, the Company was invited to attend the 7thWorld Zhejiang Entrepreneurs Convention held in Hangzhouas an outstanding corporate representative. At the "EaglesSoaring" Zhejiang Entrepreneurs Embarking on A NewJourney Ceremony, the Company's representatives took thestage, showcasing the Company¡¯s outstanding achievementsin innovation-driven and high-quality development, whileembodying the heritage and evolution of the ZhejiangEntrepreneurial Spirit.

Case: the Company attended the 7th World Zhejiang Entrepreneurs Convention and became anew benchmark for high-quality development

In 2024, the national "2024 Vocational Capacity Building WorkSymposium" was held in Taizhou. Leaders such as directorsand section chiefs of the Department of Human Resources andSocial Security from provinces across the country visited Jack tolearn about the development of Jack's expertise-based wealth-creating enterprise. As the main site for visiting, the Companyshowcased relevant achievements of expertise-based wealthcreation to the whole country.

Case: on-site meeting with leaders of human resources and social security nationwide, leadingthe industry toward a new trend with the achievements of expertise-based wealth creation

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Protect employees¡¯ rights and interestsThe Company is committed to creating a fair and transparent employment mechanism to ensure that the rights and interests of employeesare fully protected. The Company upholds a talent philosophy of "pragmatism, self-motivation, and positive energy", o?ering ¬¥exible workmodels, personalized career development paths and internal innovation incentives. This enables every employee to maximize their strengthsin the right role. Through a sound welfare system, career development support and innovation incentives, we provide employees with a broadspace for growth. In addition, attaching importance to pragmatism, self-motivation and positive energy, the Company is committed to creating apositive working environment and to enhancing employees' sense of happiness and belonging.

The Company's average salary incomethis year was aboutRMB

144,800

Per capita income was about

Be positive and enterprising,proactive, have a sense ofachievement and ambitions

Be confident, optimistic andhighly stress-resistant

Demonstrate solid work ethic with hands-on approach, exceptionalendurance in challenging situations, strong execution capabilities,and unwavering resilience

Self-motivation

Our talent philosophy

Flexible working

mode

Eligible professionals

are allowed to work

remotely with a focus

on deliverable-based

evaluation, enhancing

operational ´exibility

Personalized careerdevelopment planning

We design individualizedcareer development pathsaligned with employees'competencies, interests,and strengths.

Internal innovation

mechanismWe incentivizeintrapreneurship byproviding corporateresources for employee-initiated ventures, withpro¬¤t-sharing upon successto drive innovation

Iron triangle team

We form cross-functionalteams to tackle breakthroughprojects, capitalizing on corecompetencies to elevatesolution-delivery capacity andcollaborative performance.

Distinctive Practices

RecruitmentThe Company has built a talent supply system through multiple channels such as campus recruitment, social recruitment and internalrecruitment, promoting employment of local talents and special groups, and contributing to community development. Additionally, we haveformulated the Management Regulations for Talent Recruitment in accordance with the Company Law of the People's Republic of China, theLabor Law of the People's Republic of China and the Labor Contract Law of the People's Republic of China to standardize the recruitmentprocess and ensure fair and just employment opportunities.

GrassrootsMiddleSenior

90% of our new hires are high-achieving graduates from campus recruitment

80% of our middle management are cultivated

from the grassroots level

95% of our senior management are cultivated

from middle management

The remaining 10% arefrom social recruitment

The remaining 20%are from socialrecruitmentThe remaining 5%are from socialrecruitmentTalents composition

Total number of employees7,163

Number of new employees

1,561

Employee turnover rate was10%Proportion of labor contracts signed100%

During the reporting period

Number of maleemployees4,873Number of female

employees2,290Gender structureof employees

Number of employeesof 41-50 years of age

31-40

1,750

2,401

Number of employeesof 50 years of age and

above

Under 302,028Agedistribution ofemployees

Educationbackground

Below Bachelor'sdegree5,719

Bachelor's degree

1,300

Master's degree

Doctoral degree

Employee structure

Key performance

RMB

895,400

Pragmatism

Positive energy

Key performance

7069

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Diversity and equalityThe Company upholds the concept of diversity, equity and inclusiveness in strict compliance with the Law of the People's Republic of Chinaon the Protection of Women's Rights and Interests, prohibiting discrimination based on gender, age, education, ethnicity, religion or physicalcondition. All employees are guaranteed equal employment and career development opportunities. Attaching importance to the employmentof persons with disabilities, the Company has launched the "Sunshine Home" initiative, providing dedicated positions and barrier-free facilitiesto ensure workplace accessibility and equal bene¬¤ts for employees with disabilities. In addition, the Company has provided special care forpregnant employees, adjusted work arrangements, and optimized the working environment to ensure their health and safety during pregnancy.Through these initiatives, the Company aims at creating an equal, respectful and inclusive working environment for every employee, ful¬¤llingits social responsibility and promoting harmonious development.

Case: our employment plan for people with disabilities o?ered tailor-madepositions for equitable workplace integrationAttaching great importance to the disabled group in employeerecruitment, the Company actively provides them with equal employmentopportunities. So far, 90 disabled people have been recruited. TheCompany tailors suitable positions for each disabled employee based ontheir characteristics and abilities, and strives to create a well-equippedworking and living environment for them to meet their daily needs.Additionally, necessary rehabilitation support is given to help them betterintegrate into society.

Protection of the rights and interests of employeesThe Company attaches great importance to the protection of the rights and interests of employees in strictcompliance with laws and regulations to ensure that the legitimate rights and interests of every employee arefully respected and protected, such as the Law of the People's Republic of China on the Protection of Minors,the Regulations on Paid Annual Leave for Employees, the Regulations on Work-related Injury Insurance and theRegulations on the Prohibition of Child Labor. The Company strictly prohibits child labor and forced labor andsafeguards employees' rights to free choice of employment, freedom of association and collective bargaining,while maintaining zero tolerance for discrimination or harassment to ensure an equitable workplace.Our onboarding system integrates automated ID veri¬¤cation with manual audits, implementing dual safeguardsagainst underage employment. If an employee is found to be under the age of 16, his/her work will beimmediately stopped and necessary assistance provided. In addition, employee separation procedures strictlyadhere to voluntary principles, with multi-tiered confirmation dialogues to safeguard departing employees'legitimate rights and interests throughout the o?boarding process. In addition, the Company has establisheda variety of complaint channels, such as the "I have something to say" employee feedback QR code andmailbox in each factory, strictly prohibiting forced labor and ensuring that the rights and interests of employeesare safeguarded and fully protected.

Compensation incentivesGuided by its value-creation paradigm, the Company is committed to building acomprehensive and efficient incentive system. Through scientific compensationmanagement and performance evaluation mechanisms, the Company continuouslyoptimizes its talent structure, achieving synchronous growth between individualcareers and organizational objectives. Equity incentives closely align employees'interests with the Company's long-term development, enhancing their sense ofbelonging and responsibility. By fostering a fair, transparent, and dynamic workenvironment, the Company continuously enhances employees' sense of ful¬¤llmentand motivation, achieving shared value creation between talent and the enterprise.

zeroDuring the reporting period, the Company maintainedinstances of child labor employment

No violationsof laws and regulations onchild labor and forced labor

During the reporting period,the Company issued employeeincentive bonuses and personaldividends totalingRMB

175.54

million

The Company has established the Management Regulations on Compensation Incentives and the Compensation Incentive System, adheringto the philosophy of "shared rewards, enabling dedicated employees to co-create and share alongside the Company, with compensation andopportunities favoring outstanding employees". Compensation followed the principle of "role-based grading, grade-based pay, person-positionmatching, and pay changes with role changes". Through the "3+3" comprehensive incentive system, the Company enhances employees'sense of gain through salaries, bonuses, performance sharing and equity incentives. In terms of non-material incentives, the Companyprovides employees with growth opportunities, respect and recognition through training, activities, and performance appraisals, thereby fullystimulating their enthusiasm and creativity.

Comprehensive compensation incentives

Role-based grading, and grade-based payPerson-position matching, and paychanges with role changes

Business bonus package: performancegrowth, bonus growthSummit Project Award: incentivizing toptalents to tackle key challengesSpecial Incentive Award: incentives forprojects

Pro¬¤t sharing: rewards growwith pro¬¤tsIncrease cash rewards for keypersonnel to retain outstandingtalents

Restricted stock incentives:

inspire executive entrepreneurship;share pro¬¤ts and take risksEquity participation plan for criticalpersonnel in group subsidiaries:

Stimulate innovation andentrepreneurial enthusiasm andempower subsidiariesFixed salary (job value)

GrowthRespect

Short term:

1 year

Medium term:

1-3 years

Medium to long term:

3 years+

Bonus (earn & share)

Strivers incentive programa

Equity incentive

"Earn & Share" - enabling dedicated employees to co-create and

share the fruits of its business success"More pay for more contribution" - unwaveringly favoring outstanding

employees in both compensation and opportunities

Non-material incentives: growth, respect, recognition - the secret to strengthen employees' self-motivation

High PotentialDevelopment Program

Leadership style

Rotation and

authorization

Welfare & care

Promotion and

development

Organizationalatmosphere

Honors andincentivesPraise andappreciationaCounseling and trainingTeam building

Key performance

Key performance

Recognition

7271

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3+3 Incentive System

A three-dimensional incentive approach - "material &compensation, opportunity & growth, recognition &honor" - to ignite both organizational and employeemotivation.

A three-tier incentive structure - "short-term fixedsalary & bonus sharing, medium-term StriversIncentive Program, and long-term equity incentives& new venture partnership mechanisms" - to enableemployees to co-create and share the fruits of thebusiness success of the Company.

Growth, honor and compensation

Salary, bonus and shareholding

We adhere to the principle of "high returns for high performance", unwaveringly favoring "employees with outstanding

performance" in both rewards and opportunities.Performance managementTo improve organizational e?ciency, stimulate employees' potential and achieve strategic goals, the Company formulated the PerformanceManagement System and established a closed-loop performance management process. Through scienti¬¤c goal setting, process tracking andresults evaluation, performance management helps the Company optimize resource allocation, improves employees' work e?ciency, andprovides clear direction and support for employees' career development.

Performanceapplication

Performance

plan

Performanceevaluation

Performancecounseling

Corporatestrategy

Performanceresults application

BonusdistributionCompensationadjustmentJobadjustment

Promotion anddevelopmentLong-termincentives

Performance plan

Set goals for the Company,departments and individualsRepeated communication andconsensus building

Performance

evaluation

Organizational performanceevaluationIndividual performanceevaluationCommunication and consensus

Performance

counseling

Observation and recordingGuidance and feedback

Four cycles of PDCA in performance managementPerformance management is a management process, not just performance evaluation!

Closed-loop performance management process

Victory

HighperformanceTeam motivation

Compensationand materialincentives

Growth andopportunityincentives

Honor and

spiritualincentives

If an employee disagrees with the performance director's evaluation results or believes that they are unfair, heor she may ¬¤le a complaint with the Performance COE of the Human Resources Department and submit writtencomplaint materials. The Human Resources Department will organize an investigation, including peripheralinterviews and collecting opinions from directors and political commissars, and submit the results of theinvestigation to the department AT for review. If performance results need to be adjusted, they will be handledaccording to the principle of "up and down". The Human Resources Department will provide feedback on theinvestigation results to the employee within one week of receiving the complaint.

Equity incentiveWe have introduced equity incentive measures to grant equity or options to core employees, management and outstanding talents, closelytying their personal interests to the long-term development of the Company. This measure enhances employees' sense of belongingand responsibility, stimulates team enthusiasm, and helps the Company attract and retain outstanding talents, creating greater value forshareholders.

The third phase of the Employee Stock Ownership Plan in 2021The total funds raised were RMB

154.2

million, with ¬¤nancing fundsand self-raised funds at a ratio of

1:1

.They held

4,397,901

sharesof the Company and covered

employees, including

belowsenior management, accounting for

99.12%

of the total number, and isstill in the vesting period.

¢ÙThe number of shares granted for the ¬¤rst time was

8.192

million. The ¬¤rst grantprice was RMB

10.62

per share, and the number of employees granted for thefirst time was

, including

below the senior management, accounting for

97.72%

of the total number.¢ÚThe reserved grant quantity was

495,000

shares.The reserved grant price was RMB

10.12

per share, and the reserved grant quantitywas

, all of whom are non-senior management.

Restricted Stock Incentives Plan in 2023

Number of ¬¤rst batch of grantees

Among them, employees belowsenior management

Number of employeescovered

Among them, employeesbelow senior management

Shareholdingstructure ofemployees

Shareholding

structure ofemployees

Key performance

7473

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Business School Annual Project Plan

Sta? training

The Company has established a "Business School" to implement the concept of "using the best people to train better people" and focus onbusiness operations to replicate and promote successful experience. Additionally, a business school training-to-action plan was formulated toprovide all employees with training programs from induction to various development stages. The training system covers di?erent levels andpositions, aiming to comprehensively enhance the professional capabilities and comprehensive quality of employees. Additionally, the businessschool closely integrates with the Company's key projects and implements hierarchical management to ensure that the training content alignsperfectly with business needs, which not only helps employees grow, but also promotes the realization of the Company's strategic goals,forming a virtuous circle of talent training and business development.

Online learning platform training

1,257

person-timesThe total learning duration was1,942

hours

During the reporting period

On-the-job training sessions held

200+

Total class time wasmore than

8,000

hours

all employees

Participants involved

Trainingmanagementsystem

Iron Triangle Training Camp

Innovation Boot Camp

Business LeadershipTraining-to-Action Camp

Domestic Marketing "Iron Army"

Training-to-Action Camp

Overseas Marketing "Iron Army" Training-to-Action Camp

"Future Star" Training Camp

VIP Customer Management

Training-to-Action Camp

Excellent Enterprise Production Management Training Course

Businessoperations

Talent team

Marketingempowerment

New employeeonboarding

Supplierempowerment

Dealerempowerment

High Potential Growth

Training-to-Action

Camp

Young SeedlingsTraining-to-ActionCamp

Domestic Marketing General

Training-to-Action Camp

Social Recruitment ¡¤ Orientation

Training-to-Action Camp

Product Sales Skills Training-to-

Action Camp

Trainingoperationprocess

Yidian KnowledgeManagementPlatform

Ten majormethods

Coursedevelopment

Business School Training-to-Action Plan

Twosessions

Sixsessions

Threesessions

Fivesessions

Two sessions

Two sessions

Lecturertraining

Talent Training and Development

Key performance

7675

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Case: held the Orientation Training Camp to help new employees recruited fromsociety integrate into the teamTo help new employees quickly integrate into the team and improvetheir job competency, the Company successfully organized in 2024four orientation training sessions, covering a total of 160 employees,with a total learning duration of 1,600 hours. Covering various aspectssuch as company culture, business processes, professional skillsand professional qualities, the training adopted diversified teachingmethods, including classroom lectures, case analysis and practicaldrills, which effectively improved the comprehensive abilities of newemployees and laid a solid foundation for their future work.Case: held the High Potential Talent Training Camp to empower growth andstimulates potential

In 2024, the Company successfully organized the High Potential TalentTraining Camp, with a total of 3 sessions. 110 employees participatedin the training, with a total learning duration of 1,760 hours. Throughsystematic course setting and practical drills, the training helpedtrainees improve their strategic thinking, business capabilities andleadership, enhancing their job competence.Case: held the Business Leadership Training Camp to enhance strategic thinkingand leadershipIn 2024, the Company successfully organized the Business LeadershipTraining Camp, with 2 sessions attracting a total of 70 trainees. Thetotal training duration reached 1,680 hours. Focusing on businessstrategy, leadership improvement and decision-making ability training,the training helped trainees grow into business leaders with a globalvision and innovative thinking.

Other training

Employee developmentThe Company established a multi-level talent training system, improved career channel management, and de¬¤ned the development directionof employees. Through echelon construction and optimization of the cadre management system, we promoted the growth of management,professional and technical talents, enhanced team competitiveness and corporate adaptability, and ensured the long-term and stable operationof the Company.

Based on the position valuematrix, a M-series and P-seriesdual-channel rank managementsystem is formed to show paths foremployees' career development

Encourage employees' growthand development through multiplechannels

Focusing on the echelonconstruction of the talent teamand based on the Company'sstrategic roadmap, we formulateda talent growth path to acceleratethe training of management,professional, technical and otherreserve and cadre echelonsand to enhance the sustainablecompetitiveness of the talent team.

A preliminary cadre managementsystem was established, focusingon mechanisms such as cadrerotation and performance-basedelimination to cultivate well-rounded leaders. This initiativeaimed to address the growingdemand for versatile cadres drivenby business expansion, enhancethe vitality of the leadership teamand strengthen rapid adaptabilityto evolving external environmentsEmployee career development

Level-1 technicianLevel-2 technicianLevel-3 technicianLevel-4 technicianLevel-5 technicianLevel-6 technicianLevel-7 technician

P1P2P3P4P5P6P7P8P9P10P11P12

R&D engineer(probationary)

Junior R&D

engineerIntermediate R&D

engineerSenior R&D

engineerR&D expertSenior R&D expert

Chief scientist

InternshipMarketing Manager

Junior marketing

manager

Senior marketing

managerIntermediatemarketing manager

Marketing expertSenior marketing

expertChief marketing

expert

Internship Production

TechnicianJunior productiontechnology engineerIntermediate

production

technology

engineer

Senior production

technology

engineer

Productiontechnology expertSenior productiontechnology expert

XX specialist(probationary)XX specialist

Intermediate XX

directorSenior XX director

Supervisor XXManager XXXX directorManager/DirectorDepartment level-2directorDepartment level-1directorDepartmentGeneral ManagerDeputy GeneralManagerVice Chairmanand CEOChairman

Career development

channel formanagement cadres

Professional track career development path

Skilled track careerdevelopment path

Talent development channel

Multi-faceted talent trainingmechanism

Cadre management andcon?ruction

Department DeputyGeneral Manager

7877

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University-enterprise cooperationUniversity-enterprise cooperation is an important way to promote enterprise development and talent training. The Company actively carries outcollaborative innovation cooperation with colleges and universities to strengthen the connection between industry and education and to jointlycultivate high-quality talents. Through technological breakthroughs and resource sharing, we explore diversi¬¤ed collaboration models to driveindustry advancement and contribute to society.

Taizhou UniversityTaizhou Vocational and Technical CollegeTaizhou Technician College

Local colleges and universitiesOther colleges and universities

Harvard UniversityStanford UniversityTsinghua UniversityZhejiang UniversityShanghai Jiao TongUniversityHuazhong University ofScience and Technology

Central South UniversityDonghua UniversityJiangnan UniversityZhejiang University ofTechnologyJilin International StudiesUniversityWuhan Polytechnic University

Case: university-enterprise collaborative innovation and cooperation promoted thehigh-quality development of intelligent manufacturing in textile and apparel industryIn 2024, the Company signed the "University-Enterprise Collaborative Innovation and Cooperation Agreement" with ChangzhouVocational Institute of Textile and Garment, with both parties committing to strengthen industry-education integration andestablish substantive operational mechanisms. Through joint talent training, technological research and teaching resourcedevelopment, the Agreement aimed to promote the integration of vocational and general education, industry and education, andscience and education. The cooperation provided support for intelligent manufacturing of textile and apparel industry, especiallyin jointly building technology innovation and application platforms, further promoting university-enterprise cooperation andindustry development.

University-enterprise cooperation

Care for employees' healthThe Company consistently adheres to a people-oriented approach, prioritizing employees' occupational health, psychological well-being, andlife welfare, while safeguarding their democratic rights. In accordance with the relevant provisions of the Labor Law of the People's Republicof China, the Trade Union Law of the People's Republic of China, the Trial Measures for Collective Wage Negotiation, etc., the Companyestablished a comprehensive Regulations on Occupational Safety and Health to ensure the work safety of employees, provide diversi¬¤edwelfare policies and cultural and entertainment activities, strengthen employee cohesion, prioritize democratic management, encourageemployees to actively participate in company management, and build a harmonious and stable corporate environment.In order to implement the main responsibility for work safety as mandated by the Work Safety Law of the People's Republic of China and otherlaws and regulations, improve its intrinsic safety standards, prevent work safety accidents, and build a long-term mechanism, the companyformulated a medium-to-long-term development plan on occupational safety and health in accordance with the Enterprise Commitment onSafety. Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era in work safety, the Company adheres to theconcept of safety development, upholds the principle of "Safety ¬¤rst, prevention foremost, and comprehensive management," and follows theguidelines of "People-Oriented" and "Whoever is in charge bears responsibility." We implement national work safety laws, regulations andmandatory standards, strengthen supervision, management, and performance evaluation, and enhance safety management standards. Wealso embrace the philosophy of "Life ¬¤rst, health priority, hygiene compliance, and environmental protection in sync", thereby solidifying thesafety foundation for the stable and sustainable development of the Company.

Zero incidences of seriousinjuries and above

Prevent serious

accidents

Zero ¬¤re accidents

Eliminate ¬¤re hazards

The employee work safetyeducation and training rate reached100%

Safety training for all

employees

The regular inspection rate ofspecial equipment reached100%

Special equipmentcompliance operation

The timely recti¬¤cation rate ofaccident hazards reached

100%Timely recti¬¤cation ofhidden dangers

The number of new cases ofoccupational diseases was

Prevention and control of

occupational diseases

The accident rate of direct economicloss exceeding RMB50,000 was

Strictly controleconomic losses

The certi¬¤cation rate of safety directors,safety management personnel andspecial equipment operators reached

100%Key positions require

certi¬¤cation

The intact rate of major equipment

and facilities reached

100%Ensure the equipmentis in good condition

The pass rate of occupational health

inspection in the workplace reached

100%Working environment

met standards

Occupational health and work safety objectives

8079

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Strengthen the implementation

of principal responsibilities

Carry out in-depth actions to implementthe main responsibility for work safety.Strengthen the work foundation andimprove the level of intrinsic safety.Prevent accidents and establish long-term mechanisms.

Improve safety management

systemsStrengthen the responsibility system and system building.Improve safety regulations and systems, and adhere to the principle of no productionunless it is safe.Strengthen the responsibilities of leaders and team members at all levels, and improvesystems and operating procedures.Implement safeguard measures and carry out risk identi¬¤cation, inspection and recti¬¤cationof hidden dangers.Sign safety responsibility agreements at each level to clearly de¬¤ne rewards andpunishments.Improve the systems and records for hidden danger investigation and control, majorhazard source monitoring, education and training, etc.

Deepen team safety

construction

Strictly implement the "three regulations" andregularly maintain testing equipment.Establish a competition and assessment mechanismfor team leaders.Carry out "zero accident" activities and promote theconstruction of safety culture.

E?ciently investigate and

manage hidden dangers

Establish a working mechanism for identifying and rectifyinghidden dangers.Implement the "Five In-Place Measures" by ensuring thatall employees ful¬¤ll their responsibilities for hidden hazardinvestigation, recti¬¤cation, and management.Establish a system for evaluating the e?ectiveness of hiddendanger recti¬¤cation and subsequent assessment.Those who fail to rectify hidden dangers shall be held accountable.

Optimize employee safety

training

Develop annual training plans and ensurefunding.Ensure that personnel are certi¬¤ed andquali¬¤ed before taking up their posts.Sign the labor contract strictly.

Promote safetystandardization

Improve safety standardssystems and assessment andincentive mechanisms.Deepen the construction ofwork safety standardization.

Strengthen the prevention andcontrol of occupational hazardsImprove occupational safety and health facilitiesand equipment.Carry out declaration of occupational hazardprojects.Strengthen education, equip with protectiveequipment, and conduct regular health checks.Improve the emergency

plan mechanism

E?ectively align emergency plans with governmentcounterparts and carry out regular drills.Give on-site management personnel the decision-making power to suspend production and evacuatepersonnel.Those who fail to evacuate personnel in a timelymanner shall be held accountable for legal liability.

Build a work safety early

warning mechanism

Establish a dynamic monitoring and earlywarning system.Conduct regular risk analysis and assessment,and issue early warning information in a timelymanner.Report major hidden dangers to the regulatoryauthorities in a timely manner.Promote innovation in

safety technology

Carry out research and development ofsafety technology and rectify dangerousprocesses.Promote applicable technologies, newequipment, new processes and newstandards.Improve the level of automatedproduction.

Build a safety information

platformBuild a multifunctional safety informatization platform.Use big data analysis to accurately identify risks.Build a safety education and training module to improve traininge?ectiveness.Set up information sharing and communication functions to createa new landscape of safety management with the participation ofall employees.Key points for work safety

Occupational health and safety

The Company always puts the occupational health and safety of employees ¬¤rst. We established a complete occupational health and safetymanagement system, e?ectively preventing safety accidents and ensuring the work safety of employees through comprehensive measuressuch as risk identi¬¤cation, emergency drills, and safety training.

Input of the Company in employeework-related injury insuranceRMB

3.28

millionOccupational disease incidence

During the reporting period

Employee work-related injuryinsurance coverage rate100%

Number of generalaccidents

Nofatal and serious injuryaccidents

Nofood poisoning incidentsSigning rate of safetyresponsibility agreements100%

Safety-certi¬¤ed utilizationrate100%

Certi¬¤cation rate of specialoperation personnel and specialequipment operators100%E?ective con¬¤guration rate of ¬¤re-¬¤ghting equipment and facilities100%

Completion rate of periodicinspection of special equipment100%

The percentage of principalpersons in charge and safetymanagement personnel holdingcerti¬¤cates100%Physical examination rate ofemployees entering positions withoccupational hazards100%

Key performance

8281

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The Company has passed ISO45001 Management

System certi¬¤cation

President

Organizational Structure of the Company's Occupational

Health and Safety Management Committee

Occupational

healthand safetymanagement

Occupationalhealthand safetyorganization

Departmentalimplementation

Health risk identi¬¤cation and control

Risk identi¬¤cation andassessment: To conduct riskidenti¬¤cation in an all-round way,the Company compiled the HazardIdenti¬¤cation and Risk AssessmentRecord Form and the List of Majorand Priority Hazard Sources, andformulated control measures andinspection standards to ensure thatrisks were under control.Safety inspection and recti¬¤cation:

Through daily inspections, pre-holiday inspections, comprehensiveinspections, professional inspectionsand seasonal inspections, wethoroughly checked for safetyhazards, recti¬¤ed problems in a timelymanner and formulated long-termmeasures to prevent them fromhappening again.

Emergency plan formulation:

Based on the risk identi¬¤cationresults, the Company formulatedspecial emergency plans and on-site disposal plans and compiledthem into a manual to ensure thatemergency response had rules tofollow.Emergency drills: In 2024, theCompany organized more than150 comprehensive, special andon-site emergency drills, coveringvarious scenarios such as electricshock accidents and mechanicalinjuries, enhancing the emergencyresponse capabilities of allemployees.

Incident handling process:

We have established a completeoccupational health and safetyincident handling process. Afteran incident occurs, detailedinformation must be reported tothe Company Group on Wechatand recorded through the Eye onSafety system. An investigationwill be conducted in workshopsor departments to identify thecauses and corrective measuresproposed to ensure that theresponsibility for the incident isclear and recti¬¤cation measuresare in place.

Emergency plans and risk drills

Safety incident handling and

improvement

Occupational health and safety management measures

Case: organized safety training activities to enhance employees¡¯ safety awareness

Attaching great importance to work safety, the Company formulatesa comprehensive safety training program at the beginning of eachyear, encompassing three-level safety education training, job transferand reinstatement training, and special operation personnel training. Italso designs targeted training courses based on the actual risks of theworkshops to ensure that the training aligns nicely with the actual workrequirements, effectively enhancing employees' safety awareness andoperational skills.Key performance

In 2024, the Company conducted7,500combined training hours in occupational health and work safety,delivering an average of

training hour per employee.Each team conducts two team activities every month. During the reporting period, more than2,000teamactivities were carried out, more than

training sessions were conducted, and the completion rate of teamactivities was100%.100%of new employees successfully completed the three-level safety education program, and100%ofactive production personnel ful¬¤lled their occupational safety training requirements.

Protect employees¡¯ mental health

Attaching great importance to the mental health ofits employees and providing all-round psychologicalsupport through a series of professional initiatives, theCompany is committed to creating a good workingenvironment where understanding and support coexist,helping employees to develop spiritually and enhancingtheir sense of happiness and work enthusiasm.

Carry out mental health management training to popularizemental health knowledge among employees

Set up a psychological counseling service room foremployees to provide them with professional psychologicalcounseling and guidance services, helping them solvepsychological problems encountered at work and in life andrelieving their psychological pressureManagement measures for employees' mental health

Major honors

8483

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Care for employees and activitiesAttaching great importance to the physical and mental health and living conditions of its employees, the Company is committed to building acomplete welfare system and care mechanism, providing employees with diversi¬¤ed welfare policies, thoughtful services and colorful culturalactivities, enhancing employees' sense of belonging and team cohesion, and creating a harmonious and progressive corporate atmosphere.

Welfare & careBased on the in-house Management Regulations on Welfare, the Management Regulations on Loans for House Purchase, the ManagementRegulations for Vehicle Allocation, and the Management Regulations on Attendance and Vacations, the Company provides employees witha rich and diverse range of bene¬¤ts, including statutory bene¬¤ts and company-speci¬¤c bene¬¤ts to enhance employee loyalty and enthusiasmand improve team responsibility and cohesion.

Social insurance: ¬¤ve insurances and one fundCommercial insurance: including accident insurance, business trip accident insurance, hospitalizationmedical assistance, major disease insurance, etc.Insurance

bene¬¤ts

Health check-up: Provide a comprehensive health check-up for middle and senior management everyyear for early detection and treatment and ensure the health of employeesDaily health check: Set up points for height, weight and blood pressure measurement, and provide daily¬¤rst aid equipment and regular medicines, so that employees can follow their health conditions in timeHealthbene¬¤ts

Including statutory holidays, annual leave, personal leave, sick leave, marriage leave, bereavementleave, maternity leave, paternity leave, breastfeeding leave, miscarriage leave, childcare leave, nursingleave, family visit leave, etc.Vacationbene¬¤ts

Holiday benefits, birthday benefits, marriage benefits, childbirth benefits, employment anniversarybene¬¤ts, employee bene¬¤ts, children's schooling, retirement bene¬¤ts, etc.Care and

welfare

Filial piety fund, honor incentives, car allocation bene¬¤ts, housing loansSpecialbene¬¤ts

Case: provided honors to employees to enhance cohesionIn order to stimulate employees' enthusiasm for work, enhance teamcohesion and set a benchmark example, the Company has establisheda multi-level and multi-dimensional honor incentive program, whichrecognizes the contributions and values of employees in all aspectsthrough the issuance of honorary certi¬¤cates, bonuses and gifts. In 2024,the Company carried out 227 honor incentives and 685 employees wonawards. The awarding of employee honorary incentives helps to createa positive working atmosphere, provides employees with a platform forpersonal growth and career development, demonstrates the Company'sattention and care for outstanding talents, and further enhancesemployees' sense of belonging and honor.

Case: helped employees in need to show the warmth and care of the Company

The Company consistently attaches importance to the living conditions of employees, actively ful¬¤lls its social responsibilities, providesassistance to employees in di?culties in various ways, and helps employees overcome di?culties, which enhances employees' senseof belonging and identity with the Company and strengthens cohesion, conveying the Company's care and warmth.

In 2024, Linhai Factory provided ¬¤nancial aid to 12employees in need, totaling RMB12,000

In March 2024, temporary assistance was provided to

Zhongbang employees in need, totaling RMB3,000

In April 2024, the labor union organized all employeesto donate money to an employee with cancer, raising

a total of RMB30,450

The Jiaojiang Factory labor union established a ¬¤le to help employeesin need and provided ¬¤nancial assistance to 1 employee through the

Golden Autumn Scholarship, totaling RMB26,500

Help employees in need

8685

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Case: Jack Sunshine Home was established to help disabled employees integrateinto societyActively implementing employment support policies for the disabled, we haveestablished the Sunshine Home equipped with functional areas such asworking area, rehabilitation area and rest rooms, o?ering daily care, auxiliaryemployment and rehabilitation treatment services for disabled employees.We also assign dedicated employees to teach them to do simple manualwork, provide them with free accommodation, and pay social insurancesand housing provident fund for them, ensuring that they have ¬¤xed monthlyincome and guiding them to be strong, independent, digni¬¤ed and disciplined.They are also organized to watch movies and receive festival condolences,living colorful spare time life. By the end of 2024, we had recruited more than90 disabled employees. In view of our outstanding performance in supportingthe disabled, we have been recognized by government leaders at all levelsin Taizhou city and Jiaojiang district, and won the title of provincial "AdvancedCollective for the Disabled".

Building a barrier-free working environmentCase: visited disabled employees to demonstrate our sense of responsibility

Case: The activity of "Sending Flowers to Living Lei Feng" has been held for 12consecutive years

Case: Annual Factory Anniversary Carnival & Outstanding EmployeeCommendation Ceremony

On the 33rd International Day of Persons with Disabilities in December 2024, we organized special activities to show our warmthand care by visiting and comforting disabled employees in various factories. The heads of the Company's factories sent gifts todisabled employees to encourage them to be optimistic and self-reliant, which demonstrated the Company's care and attentionto special employees.

As of 2024, Jack Technology had carried out the activity of"Sending Flowers to Living Lei Feng" for 12 consecutive years."Lei Feng Day" has become the cultural IP of the Company.A total of 1,867 ¬¥owers from Jiaojiang Headquarters, LinhaiFactory, Xiachen Factory, Taizhou Bay Factory, HangzhouR&D Center, Beijing R&D Center, Xi'an R&D Center,Shanghai R&D Center, Wuhan R&D Center, Jack MachineTools, and Jiangxi Intelligent were sent out in 2024. The¬¥ower-sending activity is of great signi¬¤cance in that it carriesforward Lei Feng's spirit. The initiative has brought delightfulsurprises and profound inspiration to employees, embodyingthe spirit of "Living Lei Feng" to rekindle collective memoriesand re¬¥ections on this iconic role model. By showcasing real-life examples of sel¬¥essness, it awakens the innate kindnessand dedication deep within individuals, thereby inspiring arenewed commitment to altruism and social contribution.

Every year, Jack holds a factory anniversary carnival, factory anniversary party and New Year's Day party with the participationof all employees, featuring rich activities, wonderful programs and many prizes. At these events, outstanding employees andadvanced teams in various ¬¤elds are commended and invited to share the fruits of corporate development.

The cozy dormitories are equipped with soft beds,tidy supplies, air conditioning, fans and other facilitiesto ensure comfort in all seasonsThe clean canteen provides nutritionallybalanced, delicious meals every day, taking intofull consideration the dietary habits and needs ofemployees with disabilitiesConvenient bathing facilities fully meet their dailyneeds

Care for employees in every aspect of life

Add multifunctional rehabilitation beds, standing frames,balance bars, walkers and other advanced equipmentto exercise limb functionsProfessional rehabilitation therapists developpersonalized training plans based on the individualcondition of each disabled person to help improve theirlanguage and cognitive abilities.

Personalized rehabilitation training

8887

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Other employee care activities:

Attaching importance to the welfare of its employees, the Company is committed to actively carrying out various types of employee careactivities, creating a warm working atmosphere and promoting the physical and mental health and career development of employees.

Cultural and entertainment activitiesIn order to foster a vibrant, united, and harmonious work environment, the Company prioritizes not only comprehensive employee bene¬¤ts butalso actively curates diverse recreational and cultural activities. These initiatives are designed to empower sta? in achieving sustainable work-life integration while enhancing collective well-being.

Case: organized cultural and entertainment activities to enrich employees¡¯ livesWe continued to enrich the employees' spare time, improve their comprehensive abilities, enhance their sense of gain,happiness and belonging, and inject vitality into the Company's development by holding a variety of activities such as annualmeetings, traditional festival celebrations, single employee gatherings, and basketball games.

Care for employees' health

Holiday care

Special care

Fe?ivals andthemed events

Sportscompetitions

Employee intere?cultivation

9089

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Democratic management and communicationIn accordance with the relevant provisions of the Labor Law of the People's Republic of China, the Trade Union Law of the People's Republicof China, the Trial Measures for Collective Wage Negotiation, the Regulations on Rewards for Rational Suggestions, etc., we formulated andimproved the democratic management system, established a special committee for democratic management, standardized the democraticmanagement work, built various forms of employee communication platforms, unblocked democratic communication channels, fullymobilized the enthusiasm of employees, regularly organized employee seminars and member meetings at all levels, continuously iterated theCompany's system based on employee feedback, conducted employee satisfaction surveys, and e?ectively protected employees' rights toknow, participate, express and supervise, thereby promoting the healthy development of the Company.

In August 2024, the FourthMembership Congress of Bullmer'and Zhejiang Zhongbang' TradeUnions was held to elect newmembers of the trade union team.

In October 2024, 326 representativesof the Sixth Employees' Congresswere elected, the First Session of theSixth Sta? and Workers' Congressof Jack Technology Co., Ltd. washeld, and 49 company systems werereviewed and approved.

In December 2024, the Fourth Sta?and Workers' Congress of TuokaBenma' and Zhejiang Zhongbang'Trade Unions was held to reviewand vote on the Company¡¯s variousmanagement systems.

The Company carries out democratic management activities

The Company issued

employee satisfactionquestionnaires

6,474

Compared with 2023, satisfactionincreased

4.67%

In 2024

The questionnaire responserate was

77.78%

Employees' con¬¤dence in theCompany's future development was

87.13%

The overall satisfaction of theCompany's employees was

91.42%

Case: built a new democratic management mechanism and standardized democraticmanagement workIn order to deepen democratic management of the enterprise, build harmonious and stable labor relations, and safeguard thelegitimate rights and interests of both parties in labor relations, the Company established a special committee for democraticmanagement and further promoted the system of the Sta? and Workers' Congress. The Committee works under the leadershipof the Company's Party Committee and consists of 11 members, including 1 director, 3 deputy directors and 7 members. It ismainly responsible for collective wage negotiations, labor law supervision, handling of employees' proposals and other mattersassigned by the Sta? and Workers' Congress. The Democratic Management Committee is committed to protecting the rightsand interests of employees, improving the Company's internal governance capabilities and decision-making transparency, andpromoting the healthy development of the Company.Case: opened up an online complaint channel to collect employees¡¯ opinions

In order to standardize the handling process of employees' suggestions and complaints and ensure that employees' opinionsand suggestions can be responded to quickly and effectively, the Company's launched the Employees' Suggestions andComplaints Process on its in-house platform. In 2024, a total of 69 processes were received. The handling results werepromptly fed back to the employees who made complaints or suggestions, and the results of recti¬¤cation were tracked regularlyto ensure that the problems were e?ectively resolved.

Key performance

9291

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9291

Environmental compliance managementJack Technology upholds the environmental vision that "environmental protection is the shared responsibility and mission of allhumanity", and ¬¤rmly adheres to the environmental management philosophy of "no emissions, minimal emissions; preventing pollution,reducing pollution, and purifying the environment". With the goal of achieving "zero-emission" green production, the principle of"eliminating pollutants at the source", and the commitment to "cleaner production", the Company formulated the Control Procedurefor Environmental Factor Identification and Evaluation , the Control Procedure for Environmental Operation, the Emergency Planfor Sudden Environmental Events, the Management System for Environmental Pollution Accidents and other rules and regulations.Starting from grasping environmental protection projects, improving and optimizing production processes, adjusting process ¬¥ow layout,changing operation methods, and controlling unorganized dust, Jack Technology continuously optimized environmental managementprocesses, regularly conducted management reviews and environmental protection training, and ensured that all activities in the projectdevelopment and production process met environmental protection requirements. Efforts were made to comprehensively promoteemission reduction and pollution reduction, and to build a resource-e?cient and environmentally friendly enterprise.

100%Annual standardized solidwaste disposal rate

100%Compliance rate of "threewastes" emissions

Not occurred

Environmental complaintsand environmental incidents

Violations of environmentallaws and regulations

Key performance

The Company has achieved ISO 14001Environmental Management System certi¬¤cation,covering its subsidiaries Tuoka Benma,Zhongbang Electromechanical, Jack Intelligent)The Company won"National Green Factory" title

Environmental governance frameworkThe Company formulated the Control Procedurefor Environmental Operation and the environmentalmanagement assessment and incentive system,incorporated environmental management goals into theemployee and management assessment system, linkedthe achievement of goals with performance bonusesand job promotion, and encouraged all employeesto participate in environmental management. Theheadquarters of the Company has set up the Safetyand Environmental Management Department tocoordinate safety and environmental work. Each factoryis equipped with a safety and environmental managerto implement dual-line management, and has set uphazardous waste warehouse managerial personneland sewage station managerial personnel to ensurethat responsibilities are fulfilled. Through institutionalguarantees and organizational implementation, e?ortswere made to promote continuous improvement of theCompany's environmental performance.

environmental protection training sessions

1,000

metric tons annually

In 2024, the Company's factories carried outmore than

The Company promoted green operations byvigorously advocating for remote work, with virtualmeetings achieving a carbon reduction of over

100%The Company's safety and environmentalprotection sta? training coverage rate reached

Key performance

Environmental training

Green operation

In order to enhance employees' awareness of environmentalprotection, the Company formulated the Management Systemfor Environmental Protection Training to standardize the contentand assessment mechanism of environmental protection training.Through on-site lectures, self-study video lectures and otherforms, it vigorously carried out environmental protection trainingat all levels, and popularized the Pollution Prevention and ControlLaw for Solid Wastes, the Air Pollution Prevention and ControlLaw, the Water Pollution Prevention and Control Law and otherlegal requirements and environmental protection knowledgeto employees, enhanced employees' environmental protectionawareness, and e?ectively prevented and reduced the occurrenceof various environmental accidents and violations.

The Company vigorously promoted green operations and onlineoffice. In 2024, more than 1,000 carbon emission reductions wereachieved through online meetings. It achieved paperless on-siteinspections through APP, reduced wood resource consumption,implemented classified stacking of industrial and domestic waste,and cooperated with local environmental management departmentsand environmental supervision departments to strengthen internaland external environmental awareness publicity, and carriedout environmental protection activities with remarkable results,continuously contributing to creating green environment.

Environmental Management and Operation Control

Environmental protection

laws and regulationsEnvironmental policies andobjectivesList of importantenvironmental factorsRequirements of relevant

partiesControl and implementation of

environmental factorsControl e?ect monitoring of

environmental factors

Note:

¡÷is the main monitoringand measurement point

Management plan for important

environmental factors

Environmental management objectives and

indicators

Emergency plan for important environmental

factors in emergency situationsImprovement of environmental factors

Control of transportation,maintenance and auxiliary processesControl over resource consumptionControl of impact on stakeholdersImplementation of operational controlmethods and guidelines

Organizational structure of environmental management

Safety andEnvironmentalManagementDepartmentManufacturingQuality DepartmentIntelligent Operation

Management

Department

PurchasingManagement

Department

Planning andScheduling DepartmentPolitical Commissar andProcess Management

DepartmentManufacturing External

Sales Management

Department

Supply Chain Department

Parts FactoryRegulation

Safety and

Environmental Manager

Safety andEnvironmental Manager

Safety andEnvironmental ManagerSafety andEnvironmental ManagerSafety andEnvironmental ManagerSafety andEnvironmental ManagerSafety andEnvironmental Manager

Xiachen Factory

Jiaojiang Lockstitch Factory

Jiehui FactoryFoundry

Special Machines Factory

Economical Auto-cutter FactorySmart Sewing Factory

Safety andEnvironmental O?cerSafety andEnvironmental O?cerSafety and

Environmental O?cerSafety andEnvironmental O?cerSafety andEnvironmental O?cer

Factory in the industrial cluster

Motors and Electronic Control Factory

Jiangxi Jack Intelligent TechnologyHanger system Factory

Not occurred

Major honors

Key performance

9695

Build a green homeland and contribute to the development of ecological civilization

The Company comprehensively implemented environmental riskidentification and control measures. For potential environmentalemergencies across all factories, it formulated the EmergencyResponse Plan for Sudden Environmental Incidents and theManagement Regulations for Environmental Pollution Accidents,systematically monitored and assessed latent environmental risks.Through multi-format safety inspections, the Company thoroughlyinvestigated environmental hazards and promptly took effectivemeasures to prevent and mitigate the environmental impact ofemergencies. In addition, the Company regularly conductedenvironmental emergency drills for employees to improveemergency response capabilities, ensuring that environmental riskswere systematically managed, and the stability and sustainability ofproduction operations were guaranteed.

Identi¬¤cation of major environmental factors

Control of hazard sources

The Company formulated the Identification and Control Procedure for Environmental Factors and the Management Regulations forEnvironmental Testing, established an environmental factor and hazard source evaluation team, followed the "hazard identification -implementation of control - safety evaluation - continuous improvement" cycle management model to identify and control various environmentalfactors that may arise in product production, service provision and related activities, conducted quantitative analysis of major hazard sources,took e?ective control and governance measures, and systematically managed safety risks.

The Company formulated documents such as the Control Procedure for Identi¬¤cation and Evaluation of Hazard Sources and the ManagementRegulations for Risk Identi¬¤cation, Evaluation and Grading Control to comprehensively identify, evaluate and control hazards to ensure thatproduction activities were safe and controllable.

Relevant laws, regulations and

standardsActivities, products and

services

Information of hazardsourcesSpeci¬¤c information of

related parties

Laws, regulations,standards and otherrequirements

Determine target

indicators andmanagement plans

Investigation of relevant activitiesand process environmental factors

Re-investigate, identify andevaluate when necessary

Environmental impactassessment

Assessment of hazard

sources

Risks of Level 2 andbelowPeriodic re-identi¬¤cation

Risks of Level 3 and

belowIdenti¬¤cation of hazard

sources

Identi¬¤cation of majorenvironmental factorsRequirements of relevant parties

Approval of majorenvironmental factors

List of major environmental

factorsNote:

¡÷is the main monitoringand measurement point

Identi¬¤cation and evaluation process for environmental factors

Identi¬¤cation and Assessment Process of Hazard Sources

Biodiversity conservationJack Technology actively practiced its corporate social responsibility in biodiversity conservation and minimized the impact of productionactivities on the ecological environment through technological innovation and scienti¬¤c management. The Company strictly abode by relevantlaws and regulations on ecological protection, paid attention to ecological balance in project development and operation, and avoided damageto natural habitats. During the production process, e?orts were made to reduce interference with the surrounding ecosystem by optimizingprocess ¬¥ow, reducing waste emissions, and promoting green factory construction. In the future, the Company will continue to deepen theapplication of technology, explore more solutions to support biodiversity conservation, and contribute to protecting the earth's biodiversity.

Environmental emergency drillsIn order to enhance employees¡¯ ability to cope with environmental risks, the Company formulated an environmental emergency plan andorganized multiple environmental emergency drills to ensure that employees can promptly identify and properly handle environmentalemergencies.

Aspects involvedRecognition methodsAdverse e?ectsPrevention, control and improvement measuresProductenvironmentalprotection and

safety

Product Quality Law, customercomplaints

Impact on life andproperty

Designed strictly in accordance with national standards toensure that product quality and safety comply with the SafetyTechnical Requirements and national standards; Control theselection of product parts materials, control material properties,and strictly follow high standards when designing products

Environmentalprotection

The Company formulated the ControlProcedure for Environmental FactorsIdenti¬¤cation and Evaluation and theEnvironmental Factors Survey andEvaluation Form to identify and controlall environmental factors that may beinvolved in the process of providingproducts and services and on relatedoccasions.

Environmentalpollution causedby sewage,wastewater, wastegas, noise andsolid waste

1. Implement ISO14001 management system

2. Operate wastewater treatment equipment to centrally treat

wastewater and ensure it meets compliance standards

3. Update environmental protection devices to improve

workshop environment

4. Install soundproof glass in some areas

5. Entrust a professional quali¬¤ed company to treat solid waste

Energyconservation andcomprehensiveutilization ofresources

Energy consumption indicatormonitoring; waste recycling and waterrecycling

High energyconsumption,waste of resourcesand occupationof social publicresources

1. Introduce clean production projects

2. Reduce resource consumption, save energy and improve

the environment through process improvement

3. Eliminate the original cleaning line and build a new energy-

saving cleaning line

4. New low-loss transformer

5. Save electricity by improving lighting

6. Implement energy conservation and consumption reduction,

and strengthen the recycling of water, electricity and gas

Public health

Environmental hygiene and preventionof infectious diseases

Potential risks topublic health

Implement the 'Emergency Response Plan' to control

environmental emergency drills

employeesIn 2024, the Company completed

comprehensive emergency drills, includingsolid waste dispersion, sewage leakage,hazardous waste leakage, etc.

Organized and participated inTrained

Major environmental factors and hazard source control measures

Environmental risk management

Key performance

9897

Build a green homeland and contribute to the development of ecological civilization

Cleantech opportunitiesJack Technology adopted green and low-carbon development as itscore strategy, leveraging technological innovation, systematic equipmentupgrades, and green initiatives to advance the R&D and applicationof carbon reduction technologies. By optimizing resource efficiencyand reducing carbon emissions, the Company provided innovativesustainability solutions, reinforcing its leadership and commitment tothe green transition while supporting China's carbon peak and carbonneutrality goals.

Carbon reduction technology research and development

Green design

The Company established and implemented policies for carbon peak & neutrality, energy conservation, and e?ciency management. Throughenergy-saving equipment adoption, process optimization, and green design, we comprehensively advanced low-carbon initiatives to reduceemissions and accelerate our green transition.

Guided by the goal of reducing the impact on the environment and providing sustainable development, the Company formulated documentssuch as the Related Notices, the Management Regulations for Suppliers and the Supplier System Inspection Checklist. The Companyestablished a comprehensive management system for raw and packaging materials, vigorously promoting green packaging. By optimizingsupply chain management, adopting eco-friendly materials, and implementing energy-saving technologies, we actively advanced productgreen design to deliver sustainable packaging that met consumer expectations. While ensuring product quality, we optimized packagingmaterials to reduce resource consumption and environmental impact, advancing the Company's sustainable development.

Bake-free assembly glue and sealing materials wereintroduced to eliminate the high-temperature bakingstep of the original process.Curing time was reduced to less than 40 minutes.

The development of low-temperature powder coatingsreduced energy consumption while reducing carbonemissions, setting a benchmark for green production.The baking temperature of spray powder coating wassuccessfully reduced from 200¡ãC to 165¡ãC, reducingnatural gas energy consumption by 30%.

grams of double-layer corrugated paper

The packaging of a single sewing machine can saveReduce grams of polystyrene

Optimize the spraying process of the sewingmachine housing and cancel the inner cavitysprayingReduce the spraying area by 40%, significantlyreduce carbon emissions and improve productione?ciency.

Advanced technologies such as infrared bakingand nano baking was promoted to replace theexisting natural gas baking and curing powderprocess. Energy utilization efficiency wasimproved to provide strong support for circulareconomy and sustainable development.

Plastic spraying process optimization

Promotion of advanced baking technology

Application of No-bake Technology

Research and development of new low-temperaturepowder coatings

Green innovation

The Company has always regarded green innovation as an important driving force for sustainable development, fully implemented the conceptof green production, and actively ful¬¤lled its environmental protection responsibilities, promoting the widespread application of energy-savingand environmental protection technologies through technological research and development and equipment upgrades, and continuing to leadthe green transformation in the industry.

Green innovation practice

Servo motors and motor control systems

The Company successfully applied frameless direct-drive permanent magnet motors (including energy-e?cientmodels) along with matching sensorless servo control technology utilizing field-oriented control (FOC). Thisinnovation has been implemented in our industrial sewing machines with remarkable energy-saving results.Smart sewing technology

Built-in application

Energy-saving ironing table

The Company actively developed intelligent sewing equipment, applied technologies such as the Internet ofThings, intelligent control, and sensor visual recognition systems to sewing machines, and upgraded traditionalsewing products into automatic sewing units, leading the development direction of intelligent sewing equipment.The innovation integrates built-in frameless motor technology, clean sewing processes, and IoT-enabled solutions.These applications can save more than 30% of electricity and more than 40% of sewing machine threads everyyear, e?ectively extending the service life of sewing machines.The Company cooperated with Huazhong University of Science and Technology to develop energy-savingironing tables.The research and development of energy-saving ironing tables has increased energy utilization e?ciency by 45%. Asingle ironing table can save 1,800 kWh of electricity per year. The product passed the inspection of the National Centerfor Quality Inspection of Sewing Machines and was named "New Industrial Product in Zhejiang Province" in August 2023.

Key performance

10099

Build a green homeland and contribute to the development of ecological civilization

Combating climate change

In response to the country's "dual carbon policy", Jack Technology formulated and implemented climate change response plans and climatetransformation plans to meet the challenges of climate change, striving to achieve carbon neutrality by 2060 based on its energy use, carbonemissions status and strategic development plans. The Company continued to contribute to global climate governance by practicing the conceptof energy conservation and emission reduction, promoting the application of clean technologies and improving resource utilization e?ciency.

E?cient use of energyIn order to strengthen energy management, reduce energy consumption and improve energy utilization, the Company formulated a numberof regulations, including the General Principles of Energy Management, the Energy Management Responsibilities, the Energy ConsumptionAssessment Methods, the Management Regulations for Raw Materials and Power Consumption Quota and the Management Regulations forRational and Economical Use of Electricity in accordance with relevant laws and regulations, energy policies and management standards, and incombination with the actual production and energy consumption conditions. It established an energy-saving leadership group to be responsiblefor energy management, formulated and approved energy management systems and measures, supervised employees' implementation,increased the proportion of energy e?ciency assessment and the intensity of rewards and punishments, and enhanced employees' energy-savingawareness through internal publicity, and standardized the energy use process across the Company. All this helped achieve e?cient energymanagement and promoted the achievement of energy conservation and emission reduction goals.

During the reporting period, the Company actively implemented various energy-saving and carbon-reductionmeasures, strictly managed energy consumption, carried out reliable and accurate measurement, improved energyutilization e?ciency and reduced energy consumption. During the reporting period, the Company's comprehensiveenergy consumption was22,377.87tons of standard coal, the energy intensity was

0.04

tce/10? yuanrevenue, the total greenhouse gas emissions (scope 1 + scope 2) were2,119,662.54tons of carbondioxide equivalent, and the annual plan was to save

5.054

million kWh of electricity. In the next year, theCompany's electricity consumption will decrease by3% year-on-year.

Actions taken in 2024 to achieve the dual carbon goals

Foundries in the industrial clusterimplemented photovoltaic energyintegration to reduce electricityconsumption, speci¬¤cally targetinghigh-power equipment and energy-intensive processes

The implementation of distributedphotovoltaic power generationhas significantly reduced CO

emissions.The Company continued toexpand its distributed photovoltaicinfrastructure, further increasingthe utilization rate of green energyacross operations.

The operational carbon emissionsof each unit were monitored andcarbon emissions data weresummarized and reported on aregular basis

Accurate energy allocationUse of clean energyCarbon emissions monitoring

Organizational Structure of the Energy Utilization Management CommitteeFuel (liters)

Electricity (MWh)

Natural gas (cubic meters)

Renewable electricity (MWh)

Energy e?cient utilization and management measures

President

Data analysis

Supply ChainDepartment

Strategy andInvestmentManagement Department

Quality Process ITDepartment

CollaborativedepartmentsLeadingdepartmentsEnergy utilizationmanagement

FinancialManagementDepartmentResource usage

detection

Marketing Department

Public RelationsDepartmentHuman ResourcesDepartment

Regulation

Optimize the iron chip collection process in the metalworking workshop. By centrally managing iron ¬¤lingsand placing them in a designated area in the workshop, forklifts can collect them in one go, signi¬¤cantlyreducing the number and duration of forklift operations, reducing energy consumption and carbonemissions, and improving production e?ciency.The air compressor cloud monitoring system was launched to monitor gas consumption, equipment statusand air pressure data in real time, e?ectively reducing energy waste and saving 570,000 KWH of electricityper year, providing an intelligent solution for e?cient energy utilization.

Optimizationof iron chipscollection andmanagementReal-time cloudmonitoring of aircompressors

The Company monitored the usage of all transformers online and combined them with energy storageequipment to maximize resource utilization.Onlinemonitoring onthe Energy IoT

Platform

2024

2024

2024

2024

2023

2023

2023

2023

2022

2022

2022

2022

244,545

168,470

1,100,248

17,501

228,587

125,561

1,656,352

13,954

281,912

101,024

1,648,041

9,972

Key performance

102101

Build a green homeland and contribute to the development of ecological civilization

Clean production and use of clean energyJack Technology attaches great importance to clean production and actively responds to government deployment. Based on the Audit Manualfor Enterprise Clean Production and the Audit Methods for Clean Production, the Company established a clear concept of clean production,standardized clean production audit work, and achieved sustainable development of environmental, economic and social bene¬¤ts. At the sametime, the Company regarded the use of clean energy as an important measure to promote green production and sustainable development.Through technological innovation and management optimization, it comprehensively promoted the use of clean energy such as solar energyand natural gas, signi¬¤cantly reduced carbon emissions and alleviated environmental pressure.

7.04%

50.86%49.14%

In 2024, the Company's use of clean energyaccounted for

Use of solar energy accountedfor

Use of natural gas accountedfor

In order to practice the development philosophy of "green, low-carbon and smart", the Company is actively committed to promotingthe construction of green factories. The Company vigorously developed photovoltaic power generation projects and added distributedphotovoltaic facilities. It adopted the green energy utilization model of "photovoltaic power generation + electric energy storage" tocontinuously carry out technological innovation and application optimization. Due to site limitations, photovoltaic power generationonly accounted for 10% of the total electricity. However, the introduction of photovoltaic power generation projects played a signi¬¤cantpositive role in reducing carbon emissions and alleviating environmental pressure, and greatly increased the proportion of use ofclean energy. In the future, the Company will further increase the utilization rate of green energy, promote the optimization of energystructure, ensure that the power factor meets the standards, continue to uphold the concept of green development, and continuouslyadvance environmental protection practices.

Case: Promoting green factory construction and promoting sustainable development

Key performance

In 2024, the Company's total installed photovoltaic capacity in the factory area reached

13.93

MW, withan additional energy storage capacity of4,000KW, photovoltaic power generation of

17.5015

million kWh, usage of150,968,510kWh, clean energy accounting for

7.04%

of total energy, andcarbon emissions reduced by14,500 tons of carbon dioxide equivalent.

Solar energy (MWh)Natural gas (cubic meters)202420242023202320222022

12,8151,100,24810,0431,656,3528,4181,648,041

The Company deployed an advanced digital energy management system to achieve comprehensive real-time monitoring ofthe energy consumption and equipment operating status of the entire factory. The system can display equipment status, energyconsumption data and photovoltaic power generation efficiency in real time, helping managers to accurately grasp energyconsumption and optimize energy use. By monitoring the conversion e?ciency and use of clean energy (such as photovoltaic powergeneration), the Company significantly improved the utilization rate of clean energy. By combining virtual manufacturing and AIprediction technology, the Company further optimized energy con¬¤guration, reduced energy consumption costs, and provided supportfor decision-making through data performance analysis, thus promoting the sustainable development of green smart factories.

The Company achieved efficient and intelligent energymanagement by deploying an advanced energy storagesystem. The system uses PACK built-in BMU to monitor thecell voltage and temperature in real time, and forms a two-level control architecture with BMS to ensure safe and e?cientoperation of the battery pack. Through intelligent scheduling,the system discharges during peak electricity hours to reduceelectricity costs. At the same time, it participates in the gridfrequency regulation service to create additional revenue,significantly improves energy utilization efficiency whileachieving both economic and environmental bene¬¤ts.During the reporting period, the Company deployed a totalof 41 energy storage cabinets, each with a power of 100KW.The total system power reached 4,100KW, the total electricitywas 4,200KWh, and the estimated annual income was RMB

4.1 million. The income mainly came from various application

scenarios such as peak-valley electricity price arbitrage, gridfrequency regulation and backup power supply.

Case: Digitalization empowers green smart factories and achieves energy delicacy management

Case: Deploying an advanced energy storage system to achieve e?cient energy managementKey performance

104103

Build a green homeland and contribute to the development of ecological civilization

Climate Change Management SystemThe Company established an integrated climate risk monitoring and reporting system to integrate climate-related risks with other risk informationand achieved centralized management and sharing of risk data. Climate risk management status was reported to the management and the Boardof Directors regularly to provide a basis for strategic decision-making. The Board of Directors regularly monitored climate response strategiesand results and controlled the progress of major projects. The management formulated implementation plans based on the Board of Directors¡¯strategies, promoted energy conservation and emission reduction, technological research and development, and employee training to ensure thee?cient operation of the management mechanism.

Climate change management

The Company established a complete management mechanism for responding to climate change, and followed the Energy ManagementResponsibilities, the General Principles of Energy Consumption Management Regulations, the Gas Management System, the ManagementRegulations for Reasonable Electricity Use and Electricity Conservation and other systems to systematically respond to climate change. Led bysenior leaders and coordinated by core departments, a sustainable development committee was established, and independent positions were setup to use intelligent systems to supervise carbon emissions and energy consumption to ensure that violations were corrected in a timely manner.

Organizational Structure of the Company's Climate Change Strategy Committee

President

Strategy and InvestmentManagement DepartmentFinancial ManagementDepartment

Supply ChainDepartment

Quality Process IT

Data and CompliancePlatformLow CarbonOperation GroupClimate GovernanceCommittee

International BusinessDepartmentInternational BusinessDepartment

ProductDepartment

Public RelationsDepartmentHuman ResourcesDepartment

Regulation

Management of climate change risks

The Company attaches great importance to the impact of climate change on strategy, operations and ¬¤nance. Based on the framework of theInternational Standards for Sustainable Disclosure of Financial Reports No.2 - Climate-related Disclosure (IFRS S2) issued by the InternationalSustainability Standards Board (ISSB), the Company systematically identi¬¤ed climate risks and formulated response measures to reduce thenegative impact of climate change and ensured the stability of business operation.

Identi¬¤cation of climate risks and countermeasures

The Company assessed climate adaptability through scenario analysis, simulated operating conditions under di?erent policies, technologies andmarket conditions, and ´exibly adjusted strategies to maintain product competitiveness. Through systematic climate change management, theCompany e?ectively reduced climate risks, provided innovative solutions for the industry's green transformation, and demonstrated its leadershipand sense of responsibility in addressing climate change.

Focus on optimizing productionprocesses and reducing energyconsumption, and quickly respond tothe market's initial demand for low-carbon products

Continue to invest in research anddevelopment, launch a series of greenproducts, expand business areas, andincrease market share

Become a leading enterprise in thegreen and environmentally friendlytransformation of the industry, build acomplete low-carbon industrial chain,and achieve sustainable development

Climate Transition PlanThe Company deeply practiced the green and low-carbon concept, actively built a sustainable and recycling model, integrated sustainabledevelopment into every link of production operations, reduced its own carbon emissions through technological innovation and digital means,comprehensively promoted greenhouse gas (GHG) emission reduction actions, and contributed to the realization of sustainable development.

To ensure the e?ective implementationof the climate strategy, the Companyestablished a sustainable developmentstrategy promotion team, formulatedand supervised the implementation plan,strengthened employee training, and setup a special reward fund to encourageall employees to participate in climaterisk management and sustainabledevelopment work.

The Company gave priority toworking with low-carbon suppliers tojointly carry out energy-saving andemission reduction projects, optimizedlogistics, transportation and operationsmanagement, and reduced carbonemissions in the supply chain.

The Company continued to promote digitaland intelligent transformation, developedinnovative technologies such as slumpdetection, AI intelligent unloading system,and wastewater recycling, and applied themto metal processing, significantly reducingthe carbon emission intensity in the blankproduction process.The negative carbon laboratory wasestablished to bring together professionaltalents and advanced equipment, focusingon the research and development andapplication of cutting-edge energy-savingand carbon reduction technologies, providingthe industry with comprehensive, efficientand environmentally friendly solutions, andpromoting the sustainable development ofthe industrial chain.

The Company incorporated climaterisks into its comprehensive riskmanagement system, formed a closed-loop management of "identification -assessment - response - improvement",defined its vision and goals forsustainable development, and promotedlow-carbon transformation of itsbusiness.

Establishment of a sustainabledevelopment strategy promotion team

Optimize supply chain management

Improve the comprehensive riskmanagement system

Management measures for climate change risks

Formulate business model adjustment strategies to adapt to climate change at di?erent stages

Implementation measures for the Climate Transition Plan

The Company strengthened employeetraining and education to enhance allemployees' awareness and executioncapabilities of climate strategy andensured the e?ective implementation ofthe Climate Transition Plan.The Company established a specialreward mechanism to encourageemployees to actively participatein energy conservation, emissionreduction and green innovation, so asto jointly promote the realization of itssustainable development goals.

Relying on its technological accumulationand innovation capabilities, the Companylaunched resource-renewable, energy-saving and environmentally friendlymachinery and equipment, and createdoverall solutions for green circular buildingmaterials, promoting the transformationand upgrading of the construction industrytowards a green and low-carbon direction,and helping the entire industry reducecarbon emissions.

Short-termMid-termLong-term

Green and low-carbon productand serviceinnovation

Deepapplication ofgreen technology

and digitaltransformation

Sta?training andmotivation

106105

Build a green homeland and contribute to the development of ecological civilization

The Company's main production base is located in the coastal area of Taizhou, Zhejiang. The area is exposed to climatechange risks all year around such as typhoons and strong winds, heavy rains and storm surges caused by typhoons. To dealwith these potential threats, the Company established a comprehensive typhoon emergency response mechanism and furtherreduced risks by purchasing insurance.

Analysis of historical data

According to historical records, a total of five typhoons have had a significant impact on the area where the Company islocated in the past 50 years. Among them, three typhoons made direct landfall in the area, namely Typhoon No. 23 in 1989,Typhoon No. 9 ¡°Matsa¡± and Typhoon No. 15 ¡°Khanun" in 2005. There were two other typhoons that did not make direct landfallbut still had a signi¬¤cant impact on the local area. They were "Yunna" in 2004 and "Lekima" in 2019. Statistics show that onaverage, the area where the Company is located encounters a signi¬¤cant typhoon every 10 years.Among them, Typhoon Lekima in 2019 was the most recent typhoon event that had a signi¬¤cant impact on the local area, but ithad limited impact on the Company's overall operations and ¬¤nancial condition.Finally, the Company e?ectively reduced the impact of typhoons and other climate change risks on production and operationsby building a typhoon emergency response mechanism and purchasing insurance. This practice not only reflected theCompany's foresight in risk management, but also provided valuable experience for other enterprises in coastal areas. In thefuture, the Company will continue to optimize its climate risk management system, further enhance its ability to respond toextreme climate events, and provide solid guarantees for sustainable development.

Case: Responding to climate change risks - the construction and practice of the Company'styphoon emergency response mechanism

Energy conservation and emission reduction practices

The Company has always regarded energy conservation and emission reduction as an important measure for sustainable development, andhas comprehensively promoted e?cient resource utilization and environmental protection through technological innovation, equipment upgradesand green energy applications. In the process of environmental protection practice, the Company actively adopted non-toxic and harmless greenraw materials and environmentally friendly new materials, broke through key technologies, and promoted green design. At the same time, theCompany used smart equipment and intelligent connection solutions to improve the production e?ciency of downstream industries, reducedresource waste, striving to achieve a win-win situation of economic and environmental bene¬¤ts.

Practical measures for energy conservation and emission reduction

0.89

tons of carbon dioxide per person

39.3%10

In 2024, the Company's employee transportationemissions was approximately

The proportion of new energyforklifts increased to

new energy-savingindustrial fans were added

Elimination of high-energy-consuming equipment: The Company gradually eliminated old and high-

energy-consuming equipment and introduced high-e?ciency and energy-saving production machinery,signi¬¤cantly reducing energy consumption. For example, the Dongfeng line saved a lot of electricity costsby optimizing energy-saving modes and reducing equipment standby energy consumption.Improvement of production technology: The Company made ¬¤ne improvements to production technology,optimized the production process, reduced resource waste, and improved energy e?ciency.

Equipmentupgradeand processoptimization

Green energyapplicationand equipmentimprovement

Suppliercollaborationand greenprocurement

Energymanagement

systemapplication

Key performance

Promotion of new energy forklifts: In 2023, the Company had 58 forklifts, of which 21 were electric forklifts,and new energy accounted for 36.2%. In 2024, 3 new battery forklifts were added, and the proportion ofnew energy forklifts increased to 39.3%, further reducing the use of fossil energy.Energy-saving and cooling equipment: The Company encourages the use of energy-saving industrialfans instead of air conditioners. In 2024, 10 new industrial fans were added to signi¬¤cantly reduce energyconsumption.Energy transformation of the plastic spraying workshop: The Company gradually phases out dieselheating equipment. It explored biomass pellet fuel in 2015, and fully transformed to natural gas in 2020,signi¬¤cantly reducing carbon emissions.Building the Supplier Industrial Park: By building a supplier industrial park, the Company optimized supplychain management, reduced transportation costs, promoted technological innovation and resource sharing,and contributed to the sustainable development of the regional economy.Green Procurement Policy: The Company formulated the Supplier Management Regulations, gave priorityto cooperating with low-carbon suppliers, promoted the green transformation of the supply chain, andreduced carbon emissions.Supplier qualification review: The Company formulated the Notice to Relevant Parties, defined therequirements for energy conservation and emission reduction, constrained suppliers through the SRM system,promoted their transformation, and achieved scale e?ects of energy conservation and emission reduction.Supplier information management: The Company carried out online data management, de¬¤ned the VMIoperation and management model, set a reasonable delivery cycle for suppliers, reduced unnecessarytransportation actions and carbon emission behaviors in transportation, and realized the scale effect ofenergy saving and emission reduction across supply chains.The Company used the energy management system to monitor and analyze energy consumption in realtime, accurately located energy waste points, and achieved rational allocation and e?cient use of energythrough regulation. For example, the Company adjusted equipment operating time and power in time toreduce unnecessary energy consumption.

108107

Build a green homeland and contribute to the development of ecological civilization

Pollution emission controlJack Technology formulated and improved the Management Regulations for Environmental Testing and the Management Regulations forEnvironmental Pollution Accidents and other systems. Through measures such as improving design, using clean energy and raw materials,and adopting advanced processes and equipment, it reduced or avoided the generation and emission of pollutants in the production process. Itrewarded employees who performed well in pollution control and emission reduction, and continuously standardized the information reportingprocedures and emergency response processes for sudden environmental accidents to prevent environmental pollution accidents and improvethe level of pollution emission control.

Wastewater treatmentThe Company managed wastewater discharge in compliance with regulations, installed water meters in each workshop to implement daily waterconsumption measurement, controlled sewage treatment, and invested in the construction of sewage treatment stations to separate rainwater andsewage, ensuring that sewage discharge complied with local water pollution prevention and control regulations, and wastewater pollution to theenvironment was reduced.

The Company's high-end sewing equipment intelligent manufacturing center built in Jiaojiang District achieved e?cient wastewatertreatment through scientific planning and advanced technology. The wastewater of the project mainly came from the degreasing,cleaning, silanization, phosphating and other links in the production process. The pollution factors included COD, total nitrogen, totalphosphorus, ´uoride, etc. Therefore, the "oil separation adjustment + coagulation sedimentation + A2/O" process was adopted to ensurethat the wastewater met the municipal sewage network connection standards after treatment. The design followed the principle of high-starting-point planning and high-standard construction, and adopted imported control and testing instruments with stable performanceto ensure the stability and e?ciency of the system. In addition, the Company also paid attention to the rationality of equipment selectionand layout, adopted intelligent automatic control systems, realized functional zoning, facilitated operation and management, andachieved standard sewage discharge.

Case: Optimizing wastewater treatment solutions to promote green production

Chemical oxygendemand (COD)

Ammonia nitrogencontent (NH3-N)

Total nitrogencontent (TN)

Total phosphorus

content (TP)

Total wa?ewaterdischarge

UnitKgKgKgKg10,000 cubic metersJiaojiang Factory10.020.102.390.020.04Xiachen Factory96.20.9122.940.170.43Jack Intelligent168.063.4546.480.730.77Tuoka Benma46.630.319.150.120.22

Statistics of industrial wastewater discharge from the Company's factories in 2024

In 2024, the number of times the Company's factories' wastewater and air emissions did not meet the requirementswas

, the number of times the noise exceeded the standard was

, and the standardized disposal rate of generalindustrial solid waste and hazardous waste reached100%. No environmental complaints or major hazardouschemical leakage accidents occurred during the reporting period. During the reporting period, the Companyconducted commissioned monitoring more than

times, and the monitoring frequency and results were incompliance with the requirements of the Pollutant Discharge Permit.

The original plastic spraying production line produced a certain amount of VOCs, which needed to be treated with activated carbonadsorption and desorption catalytic combustion equipment. Therefore, the Company optimized the coating process. The optimizedelectrostatic powder spraying production line process produces almost no VOCs, achieving the goal of reducing VOCs emissions fromthe source, and completely solving the VOCs emission problem. After the powder is recovered and dusted, the exhaust gas generatedmeets the indoor emission standards, and the exhaust gas is not directly discharged into the external environment. After the electrostaticpowder spraying line was put into use, no hazardous solid waste such as paint residue and waste paint cans was generated, achievinga win-win situation of economic and environmental bene¬¤ts.

Case: Optimizing the coating process to achieve zero VOCs emissions

In the oil mist management of the metalworking workshop, the Company introduced an oil mist collection system to e?ectively reducethe oil mist emissions generated by processing equipment during high-deep cutting. The system collects oil mist centrally and convertsit into liquid for post-treatment, signi¬¤cantly improving workshop air quality, protecting employee health, and reducing medical costs andproduction losses that may be caused by health problems.As of December 2024, all production lines had been fully equipped with oil mist collection systems, the workshop environment had beensigni¬¤cantly improved, employee work e?ciency had been raised, and waste gas emissions had been greatly reduced. The introductionof the oil mist collection system not only created a safe and healthy working environment for employees, but also further improved theCompany's pollutant control level, re¬¥ecting the Company's continuous e?orts in environmental protection and demonstrating its senseof social responsibility.

Case: Introducing an oil mist collection system to optimize the waste gas treatment process

Treatment of waste gas

The Company standardized the management of waste gas emissions generated by the production workshops of each factory, introducedadvanced equipment, optimized treatment processes, and comprehensively improved the level of waste gas treatment.

Nitrogen oxide (NOx)

emissions

Volatile organic compounds

(VOCs) emissions

Particulate matter (PM)

emissions

Total exhau? emissions

UnitKgKgKg10,000 cubic metersJiaojiang Factory314821,33411,232Xiachen Factory0.2101,048.785,280Jack Intelligent2,236.202,337.649,384421,752Tuoka Benma136929.882,4772,043Jack TechnologyCasting

0025,92552,758Statistics on air pollutant emissions from the Company's factories in 2024

Key performance

110109

Build a green homeland and contribute to the development of ecological civilization

In order to achieve standard exhaust gas emissions, the Company's Jiaojiang factory designed, optimized and modi¬¤ed the originalexhaust gas treatment plan. The project treated waste gas generated by spraying, plastic spraying, grinding and other processes toensure that the treated waste gas complied with relevant pollution emission standards such as the Emission Standards of Air Pollutantsfrom Industrial Coating Processes and the Comprehensive Emission Standards of Air Pollutants. Through closed collection, waterspraying, ¬¤lter cartridge dust removal and other technologies, particulate matter and volatile organic compounds in exhaust gas can bee?ectively removed. At the same time, the factory installed high-e?ciency fans and spray towers to optimize the exhaust gas treatmentprocess and to reduce energy consumption and operating costs. In 2024, the factory's waste gas treatment system operated stably,with an emission compliance rate of 100%, signi¬¤cantly improving the air quality in the factory and its surrounding areas.

Case: Waste gas was treated in Jiaojiang factory to promote clean production

Solid waste managementThe Company formulated the Management Procedure for Solid Wastes to implement full process control of solid waste from generation,collection, storage, transportation, utilization, and disposal. It disposed of hazardous waste by signing disposal contracts with quali¬¤ed third parties,strictly controlled hazardous waste, prevented solid waste from polluting the environment, and realized the resource utilization, harmlessness, andreduction of various types of solid wastes.

Spraying water curtainSpray towerFan

25m high altitude dischargemeets the standard25m high altitude dischargemeets the standard25m high altitude dischargemeets the standard

Coating processwaste gas

Plastic spraying table

Filter cartridge dustremoval

Fan

Spray coatingwaste gas

Grinding tableCartridge dust removalFan

Grindingexhaust gas

Process Flow Chart for Waste Gas Treatment in Jiaojiang Factory

Total amount of non-hazardous

wa?e

Total amount of hazardous

wa?e

Total wa?e generation

UnitTonsTonsTons

Jiaojiang Factory1,473.89134.251,608.14

Xiachen Factory763.5551.37814.92Jack Intelligent1,345.95153.081,499.03Tuoka Benma54.3352.43106.77

Statistics on air pollutant emissions from the Company's factories in 2024

General waste discharge and reduction management

Iron powder briquettingRecycling of waste packaging barrels

The Company used briquetting machines to briquette ironpowder to reduce the risk of dispersion and ensure the safestorage and transportation of solid wastes.

The Company signed a recycling agreement with suppliersto recycle and reuse waste packaging barrels, signi¬¤cantlyreducing the generation of waste packaging barrels andpromoting resource recycling.

Management of hazardous wastes and chemicals

The Company strictly implemented national hazardous waste management requirements, and through the Management Regulations for SolidWastes, conducted full-process control over the storage, transportation, use and disposal of hazardous solid waste, reduced the environmentalimpact of hazardous waste, and provided solid guarantees for green production.

Management process for hazardous solid waste

In order to reduce the use of toxic and hazardous substances, reduce pollution emissions from the source, and promote itsenvironmental protection level, the Company put forward rectification suggestions for suppliers who did not meet the supplyrequirements. For suppliers who failed to comply with or refused to rectify and may cause serious environmental pollution accidents ormajor safety accidents, the Company took measures such as reducing orders and replacing suppliers to exert in´uence.

Case: Reducing the use of toxic and hazardous raw materials and improving environmental management

Key performance

As of the end of 2024, the Company had a total of

main suppliers,

of whom held ISO14001system certi¬¤cates, accounting for

42.39%

an increase of

4.39%

compared to 2023.

To ensure production safety, the Company implemented strict andstandardized management of hazardous goods warehouses. Inaccordance with relevant laws and regulations, the Company formulateda complete dangerous goods management system covering storage,use, transportation and emergency response. The warehouse isequipped with explosion-proof lighting ¬¤xtures and a ventilation system toensure a safe environment. Dangerous goods were stored in categoriesand clearly labeled, with dedicated personnel responsible for dailyinspections and record keeping. Through standardized management, nosafety accidents occurred in the Company's warehouse for hazardousmaterials, which provided solid guarantees for production operations anddemonstrated the Company's high attention and sense of responsibilityfor hazardous materials management.

Case: Standardizing the management of dangerous goods warehouses

Use safe and compliant transportationmethods to ensure that hazardouswaste does not leak duringtransportation, further reducing theimpact on the environment.In strict accordance with nationalregulatory requirements, warehousesfor storing hazardous waste wereset up in each factory to ensure thesafe storage of hazardous waste andreduce the impact on the environment.

The Company cooperated withqualified third parties and signedhazardous waste disposal contractsto ensure the compliance of thetreatment of hazardous waste.

Transportation of hazardous wasteStorage of hazardous waste Disposal of hazardous waste

112111

Build a green homeland and contribute to the development of ecological civilization

E?cient use of resourcesTaking circular economy as its core strategy, the Companyoptimized production processes, invested in the construction ofadvanced sewage treatment facilities, established an internalresource recovery system and promoted green procurement andthe e?cient use and recycling of resources, reduced environmentalpollution and production costs, and laid a solid foundation for itssustainable development.

Water resource utilizationAttaching importance to water resource management, the Company implemented the water-saving concept of multiple uses and recycling ofwater, formulated the Management Regulations for Rational Use of Water, took a number of measures to reduce water resource consumption,and comprehensively promoted the e?cient management and recycling of water resources.

4,261,418

tons

3.763

million cubic meters

88.3%

In 2024, the Company used a total ofThe circulating water volume was

The recycling rate reached

Organizational Structure of the Water Resources Utilization Management Committee

President

Strategy and DecisionManagementDepartment

Supply ChainDepartment

International Business

DepartmentRegional coordinationTechnicalImplementation GroupStrategic decisions

General Manager's

O?ceFinancialManagementDepartment

ProductDepartment

Public Relations

Department

Regulation

Water-saving technology practice

Total Fresh water consumption (tons)Water resource usage intensity (ton/RMB10,000 revenue)202420242023202320222022

498,418 0.81446,062 0.84433,308 0.79

The headquarters' administrative building was equipped with a constant pressure water saver, reducingwater consumption by 50%. It is expected to save 800 cubic meters of water throughout the year.The pre-degreasing retention tank was equipped with a water circulation ¬¤lter to quickly ¬¤lter impurities everyday, extending the service life of the tank, saving 25% of water consumption, and increasing the service lifeof the tank and cleaning stability.Water resource circulation system: build advanced sewage treatment facilities to purify productionwastewater, and reuse it for workshop cleaning, equipment cooling and other links after it meets productionwater standards, greatly reducing the amount of fresh water used, alleviating the water pressure caused byproduction expansion, and reducing costs for water consumption.

Application of water-

saving equipment

Process Optimization

Eliminating the reamer cleaning process can save 50 tons of water per month.The surface treatment process was changed from immersion to spraying, reducing water consumption by50% and silane consumption by 15%.A centralized cutting fluid management station was established in the workshop, equipped with high-precision ¬¤ltration equipment to achieve recycling of cutting ¬¥uid, saving 3,000-4,800 cubic meters of watereach year.

Key performance

114113

Build a green homeland and contribute to the development of ecological civilization

Circular economyThe Company incorporated the concept of circular economy into its development strategy, established an internal resource recycling system,optimized production processes and promoted green procurement and the e?cient use and recycling of resources, and minimized resource wasteand environmental pollution.Total mass or volume of materials used in production and

packaging (tons/cubic meters)

Recycling rate of materials used in production and

packaging (%)202420242023202320222022

5,834.4955,577945,43492Including: use of non-renewable materials (ton/cubic meter)Including: production material recovery rate

202420242023202320222022

2,203.2952,106942,05292Including: use of renewable materials (ton/cubic meter)Including: packaging material recycling rate202420242023202320222022

3,631.2953,471943,38292Paper (kg)202420232022

14,42612,984

14,357

Establishment of an

internal resourcerecycling system

Renovation of idleequipment

Special waste and scrap recycling points were set up in each factory to collect and classify recyclablessuch as metals, plastics, and paper. By cooperating with professional recyclers, the Company achieved theresource reuse of waste, such as recycling scrap metal into production materials, reducing the cost of rawmaterial procurement and the amount of waste disposal.

In order to realize the circular economy, idle equipment was renovated and utilized, including more than 20 aircompressors, balance cranes and other equipment. In 2024, the renovation of 3 old special machines werecompleted and put back into use in the workshop.

The Company is committed to establishing a mutually bene¬¤cial and win-win strategic partnership with suppliers. In response to thecountry's call for energy conservation and emission reduction, the Company conducted management of suppliers' turnover boxes andformulated unit cargo control regulations in accordance with the relevant requirements of the Management Regulations for Suppliers.By promoting the use of standardized turnover boxes, the Company improved logistics e?ciency and reduced the frequency of suppliertransportation. By reusing empty turnover boxes, the Company reduced resource waste and achieved resource recycling.

Case: Promoting the supplier standard turnover boxes and helping the supplying side to achieve energyconservation and emission reduction

In 2024, the utilization rate of supplier turnover box reached100%

In order to respond to the call for environmental protection, reduceresource waste and lower carbon emissions, the Company improvedthe production and processing flow of sewing machine blanks. Byoptimizing drawing design, reducing the initial processing allowanceof blanks, and using mold repair to control blank allowances, theCompany effectively solved the problems of large processingallowances in traditional processes, large energy consumption andcarbon emissions in subsequent processes. After mold repair, theaverage weight of the A5E-A case blank was reduced by 0.18 kg. Theimprovement in the allowance of sewing machine blanks enabled theCompany to achieve signi¬¤cant economic bene¬¤ts in raw material andtool consumption, reduce production costs, increase profit margins,reduce resource waste and carbon emissions, and further improveproduction efficiency, laying a solid foundation for the Company toachieve the goals of green manufacturing and circular economy.

Case: Reducing the amount of sewing machine blanks and e?ectively reducing raw material consumption

Greenprocurement

policy

Optimizationand upgradingof production

processes

The Company established a supplier capability assessment mechanism for the introduction of suppliers andformulated the On-site Audit Standards for QSA Suppliers to review whether the supplier's environmentallyfriendly materials have undergone periodic validity con¬¤rmation. This is used as an important threshold for theintroduction of suppliers to implement green procurement policies and ensure the environmental protectionand recycling of resources. The audit rate of newly introduced suppliers reached 100% in 2024.Environmentally friendly large cyclone spray equipment was used to transform the powder spray equipment,and the recycling rate of powder coatings was increased to 90%. The assembly process reduces excessiveconsumption of glue. The through holes of the crimping device seat, bottom thread clamp, and casing holesare changed to blind holes, and the countersink depth of the ¬¤xed knife screw holes is improved. The processimprovements e?ectively protect the health of employees and reduce the emission of harmful components in glue.Process optimization helped the Company to achieve circular economy

Key performance

116115

Build a green homeland and contribute to the development of ecological civilization

E?cient governance operations

Three-Board governance

In strict accordance with the relevant laws, regulations and normative documents such as the Company Law of the People's Republic of China,the Securities Law of the People's Republic of China and the Guidelines for the Articles of Association of Listed Companies, the Companystrives to optimize the corporate governance structure, standardize the operation of the Shareholders' Meeting, the Board of Directors, and theBoard of Supervisors, improve the information disclosure system, strengthen investor relations management, and continuously enhance thelevel of corporate governance.

The Company has formed a corporate governance structure consisting of the Shareholders' Meeting, the Board of Directors, the Board ofSupervisors and the managers in accordance with the law. This structure ensures a clear division of responsibilities, mutual checks and balances,coordination, and complementarity. In addition, the Company has formulated the Rules of Procedure for the Shareholders' Meeting, the Rulesof Procedure for the Board of Directors, the Rules of Procedure for the Board of Supervisors and the Work Rules for the General Manager tode¬¤ne the responsibilities and powers, and work procedures of the Shareholders' Meeting, the Board of Directors, the Board of Supervisorsand the management team to ensure the separation of decision-making, execution and supervision. Meanwhile, the Board of Directors has setup four special committees, namely Audit, Finance, Nomination and Remuneration, and Strategy and Sustainable Development, to fully ensurethat the Company's decision-making level is scienti¬¤c and e?cient.

As the Company's decision-making body, the Board of Directors is responsible for the Shareholders' Meeting,playing a key role in corporate governance. The Board of Directors operates in accordance with relevant lawsand regulations and the Company's Articles of Association, and conscientiously implements the resolutions of theShareholders' Meeting. The Company continues to improve the working mechanism of the Board of Directors, andclearly de¬¤nes the selection and obligations of directors, the performance and performance evaluation of directors,the composition and responsibilities of the Board of Directors, the rules of procedure of the Board of Directors,laying a solid foundation for the e?cient role of the Board of Directors. The Company has established and improveda two-way communication mechanism between independent directors and current corporate leaders, further layinga solid foundation for building a scienti¬¤c, rational and e?cient Board of Directors.

E?ectivenessof the Board ofDirectors

Shareholders' Meeting

Strategy and Sustainability

CommitteeNomination andRemuneration Committee

Board of SupervisorsAudit CommitteeInternal audit

Finance and Economics

CommitteeHumanResourcesCommittee

FinancialManagement

Committee

Strategy andInvestmentCommittee

QualityProcess ITCommittee

NationalResourceOperationsCommittee

DepartmentalAT/ST

Major decisions of theBoard of DirectorsEMT daily businessdecisionsIPMT

MarketingCommittee

ProcurementCommittee

Cross-departmentMC

The Financial Management Committee consists of the Risk Management Subcommittee, Accounts Receivable Management Subcommittee,Inventory Management Subcommittee, and Cost Management Subcommittee.

Humanoid robots and AI high-

end product lineHuman Resources

ManagementDepartment

FinancialManagementDepartment

Strategy andInvestmentManagementDepartment

Quality andProcess ITDepartment

Public RelationsDepartment

GeneralManager'sExecutive O?ceProduct DepartmentMarketing Department

International BusinessDepartment

Supply ChainDepartment

Board of Directors

CEORotating Executive Chairmanof the Executive Management

Committee (EMT)

Information disclosureIn accordance with the provisions of the Company Law of the People's Republic of China, the Securities Law of the People's Republic ofChina, the Administrative Measures for Information Disclosure of Listed Companies, the Shanghai Stock Exchange Listing Rules, and theShanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 2 - Information Disclosure Management, and in conjunctionwith the requirements of the Company's Articles of Association, the Company has formulated the Information Disclosure Management Systemto regulate corporate information disclosure practices, properly ful¬¤ll information disclosure obligations, and e?ectively safeguard the legitimaterights and interests of the Company, shareholders, creditors, and other stakeholders.

Such composition notonly demonstrated theCompany's emphasison independence andgender equality, butalso further enhancedthe comprehensivenessand inclusiveness of theBoard of Directors.

directors

a total of

announcements

independent directors

female directors

33%

22%

During the reporting period, theBoard of Directors consisted of

During the reporting period, theCompany disclosed

Rated for six consecutive years by theShanghai Stock Exchange asGrade

A

in information disclosure

These included

Non-public announcement online documents

and

The proportion was ashigh asThe proportion was

Diversity of the Board of Directors

As the core decision-making body for the Company's operations and management, the Board of Directors bears the signi¬¤cant responsibilityof being accountable to the Shareholders' Meeting. To ensure that the Board of Directors' decision-making process is both scienti¬¤c andreasonable, the Company prioritizes the diversity of the members of the Board of Directors, which is re¬¥ected in gender, age distribution,industry experience, professional ability and many other relevant dimensions. Such a diverse background not only provides the Board ofDirectors with rich and diverse perspectives, but also lays a solid foundation for it to make forward-looking and optimal decisions, e?ectivelyensuring the long-term and stable development of the Company.

CAPCO (China Association

for Public Companies)

Company SecretaryPerformance Rating: 4A

2024 Best GovernanceConstruction Award for

Listed Companies

Key performance

Key performance

Major honors

120119

Standardize corporate governance, Lay a solid foundation for enterprise development

Investor exchange

Tax management

Attaching great importance to investor relations management, the Company is committed to standardizing investor research processesand maintaining sound investor relations. We actively receive investors through channels such as the company website, e-mail, dedicatedtelephone and the Shanghai Stock Exchange e-interactive platform. In addition, the company holds performance brie¬¤ngs on a regular basisto answer questions of concern to investors, and promotes the company's core values to institutional investors by participating in reverseroadshows and strategy meetings to enhance its image in the capital market. In addition, we also organize investors to visit the Company(including but not limited to exhibition halls, workshop production sites, etc.) to enhance investor participation and further improve theCompany's governance level.

The Company attaches great importance to tax management, strictlyadhering to tax laws and regulations. We have established a robustinternal tax control system, optimized tax planning strategies, ensured fulltax compliance, effectively mitigated tax risks, and thereby fostered theCompany's steady and sustainable development.

500+

Performance brie¬¤ngs held during thereporting period

On-site reception

On-site surveys ofinstitutional investors

Visit benchmark factories

Theme StrategyMeeting

Covering investors

Reverseroadshow

Tax compliance trainings organizedduring the reporting period

Selected annually as tax Class

A

Tax knowledgecontest

enterprise, tax exportdemonstration enterprise.

Tax disputes

The Company strictly complies with national tax laws and regulations, ful¬¤lls its tax obligations in goodfaith in accordance with the law, and has been consistently rated as a Class A taxpayer annually. Itactively ful¬¤lls its obligations for withholding and remitting taxes, with no instances of tax concealment,underreporting, misreporting, tax evasion, or fraudulent practices. The Company regularly hires aprofessional accounting ¬¤rm to conduct special tax audits every year.

The Company has established a tax risk management process and a special bill review post to ensurethe compliance of invoices and the rationality of business. The Company has also established a tax riskmap to avoid various tax risks in advance, and improve employees' tax compliance awareness throughdaily tax policy push and training.

In accordance with the BEPS principles, the Company hires professional third parties to conduct relatedtransfer pricing analysis and dual-pillar training to ensure compliance with international tax burdens.

The Company has established Tax Department, Legal Department, and Audit Department, with theTax Director, Legal Director, and Audit Director responsible for tax compliance, legal compliance andoperational integrity, respectively. The three departments work together to conduct compliance irregularreviews of taxes, vouchers and contracts on a monthly basis.

Taxcompliance

Taxtransparency

Taxmanagementsystem andinternal controlsystemOrganizationalstructure andresponsibilities

Tax management principles

Enterprise with a tax payment of more

than RMB100 million in 2024

Investors visit Jack's benchmark client Shangcheng Group2024 Investor Reception Day

Key performance

Key performance

Major honors

122121

Standardize corporate governance, Lay a solid foundation for enterprise development

Strengthening internal control of risksIn accordance with the Company Law of the People¡¯s Republic of China, the Securities Law of the People¡¯s Republic of China, the AccountingLaw of the People¡¯s Republic of China, the Basic Standards for Enterprise Internal Control, the Shanghai Stock Exchange Listing Rules,the Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 1 - Standardized Operations, and other relevant laws,regulations, as well as the Company¡¯s Articles of Association, the Company has formulated the Internal Control Management System,established a compliance and risk control framework, developed a risk inventory, and de¬¤ned operational red lines to enhance managemente?ciency, strengthen risk prevention capabilities, mitigate and resolve risks, promote standardized operations and sustainable development,and protect the legitimate rights and interests of investors.

In order to strengthen risk management and ensure sound operation and sustainable development, the Company has formulated the RiskManagement System to de¬¤ne the processes of risk identi¬¤cation, assessment, response and monitoring. Internal control measures includeseparation of incompatible duties, authorization and approval, accounting system control, property protection, budget control, operationalanalysis and performance evaluation to comprehensively prevent risks. The organizational structure of risk management has clearresponsibilities at all levels and operates in a coordinated manner to ensure the e?ective operation of the risk management system and provideguarantee for the Company's long-term and stable development.

Internal controlmanagement objectives

Business activitiesare legal and

compliant

Assets are safe and

used e?ciently

Financial

information is trueand complete

Improve operationale?ciency ande?ectiveness

E?ectively guardagainst fraud andcorruptionRisk internal control management objectives

Speci¬¤c measures for

internal control

Incompatible

dutiesseparation

control

Authorizationand approvalcontrol

Accountingsystem control

Propertyprotection control

Budget control

Operationalanalysis andcontrol

PerformanceevaluationcontrolSpeci¬¤c measures for internal control

In 2024, the Company carried out a number of training activities around compliance management: marketing and advertisingcompliance training was held in February, "Trade Secret Protection" training was carried out in April, and foreign-related legalcompliance training was organized in August. In addition, laws and regulations in the ¬¤elds of securities, law, and auditing wereshared from time to time throughout the year to continuously strengthen employees' compliance awareness.

Case: legal compliance training strengthened corporate risk management and enhanced employees¡¯risk awareness

124123

Standardize corporate governance, Lay a solid foundation for enterprise development

Adhere to business ethicsThe Company is convinced that adhering to business ethics is the cornerstone of the Company's long-term development and the keyto winning the trust of customers, employees and society. The Company upholds the principles of integrity, fairness, accountability, andtransparency, establishing a strong reputation in the ¬¤ercely competitive market and driving sustainable societal development. In order toe?ectively prevent operational and management risks, encourage employees to actively participate in corporate governance, and promptlymonitor and report possible internal bribery, illegal acceptance of kickbacks, improper bene¬¤ts, fraud, operational defects or violations, we havespecially formulated the Anti-Commercial Bribery and Anti-Corruption System to ensure that the Company operates in accordance with lawsand regulations.The Company prioritizes anti-corruption and anti-bribery governance for its business partners. Through initiatives such as Supplier AnnualConferences, irregular training sessions, and on-site awareness campaigns, it extensively promotes its Anti-Corruption and Anti-Bribery Policy.Additionally, by signing the Integrity Commitment Agreement, distributing A Letter to Partners, conducting short video campaigns, and payingregular site visits, the Company actively conveys its commitment to ethical practices and clean business conduct. In 2024, the signing rate ofsupplier integrity commitment agreements/commitment letters/integrity contracts reached 100%. Supplier Management System: set relevantrequirements for supplier access, such as legality, compliance, and honest operation. A Letter to Partners details the strict prohibition of allforms of corruption and bribery. The Company also launched anti-corruption, bribery and corruption awareness campaigns for the immediatefamily and friends of sta? members who have strong ties with business partners, and regularly visited business partners to spot-check for anynon-compliance.

The Company held a general management cadre meeting at the Jiaojiang headquarters on January 22, 2024 to provide integrityand self-discipline training, where all management cadres present took oaths. An anti-corruption seminar was held at Linhai Factoryon July 19, 2024 and at the headquarters of the Company on July 24, 2024 respectively. The Company's senior management set anexample by taking the lead in swearing and signing a commitment to integrity and self-discipline. The anti-corruption seminars furtherstrengthened employees' awareness of integrity, improved the Company's compliance management level, further consolidated ourcorporate culture, and laid a solid foundation for the sustained and stable development of the Company.

Case: anti-corruption seminars guided the enterprise to practice business ethics

Reporting and complaintsTo encourage the reporting of non-compliant conduct and safeguard the rightsand interests of whistleblowers, the Company has established the WhistleblowerProtection System. Employees can report anonymously by phone, letter,email, WeChat or in person. The Company strictly maintains the con¬¤dentialityof whistleblower information and prohibits any disclosure of such informationor retaliation against whistleblowers. The Company rewards meritoriouswhistleblowers and imposes strict penalties for malicious allegations, therebyensuring the fairness and transparency of the whistleblowing mechanism andadvancing compliance-driven corporate development.

Anti-unfair competitionThe Company strictly abides by the Anti-Monopoly Law and the Anti-Unfair Competition Law, adheres to the principles of "voluntariness,equality, fairness and integrity", and is committed to maintaining a fair and orderly business environment and fair competition order in thesewing equipment industry.

In December 2024, the Company organized an antitrust trainingsession to enhance understanding of competition laws andregulations, strengthen compliance awareness, and preventmonopolistic behavior through case analysis and regulatoryinterpretation. The training session helped the Company identifypotential risks, establish internal monitoring mechanisms,ensure fair competition in the market, and promote the healthyand sustainable development of the Company.

Case: antitrust training enhanced corporate compliance in market competition and drivessustainable development

Reporting orcomplaint channels

Report by letterReport by phoneReport by emailReport by Wechat IDReport in person

Reporting or complaint channels

Whistleblower protection and penalties for violations

The Company shall protectwhistleblowers from retaliation, providedthat they act in good faith, hold areasonable belief in the accuracy ofthe information, abstain from falseallegations, and are not motivated bypersonal interests.The whistleblower must be responsiblefor the content of the report. If it is afalse accusation or defamation, he orshe will be warned, expelled or handedover to judicial authorities depending onthe circumstances.

Those who accept reports and conductinvestigations must strictly maintainconfidentiality, must not disclose thewhistleblower's information or thecontent of the report, must properlykeep the materials, and must not revealthe whistleblower's identity.No department or employee mayretaliate against whistleblowers.Violators will be warned, dismissed orhanded over to judicial authorities forprosecution.

Meritorious whistleblowers will berewarded and their personal informationshall not be disclosed without theirconsent.

Investigators who violate con¬¤dentialityregulations or perform their dutiesimpartially will be warned, dismissedor handed over to judicial authoritiesdepending on the circumstances.

Protection ofwhistleblowers

Duty to report

Con¬¤dentiality

No retaliation

Reward mechanism

Dealing with violators

126125

Standardize corporate governance, Lay a solid foundation for enterprise development

Party buildingmanagement

The Company attaches great importance to Party building work, fullyleveraging the core leadership role of the Party organization andthe vanguard and exemplary role of Party members. It is committedto strengthening the cohesion and sense of responsibility amongParty members, promoting the deep integration of Party building andbusiness operations, and supporting the high-quality development ofthe enterprise.In 2024, the Company¡¯s Party Committee actively carried out aseries of Party-building activities, deepened patriotism education anddiscipline learning, and strengthened Party member management. Byselecting and commending the outstanding Party organizations, Partymembers and Party workers of the year, the Company encouragesall Party members to play a vanguard and exemplary role. PartyDay-themed activities enhance the cohesion of the Party branchesand promote the deep integration of Party building and enterprisedevelopment. Annual democratic consultation meetings for Partymembers further promote democracy and unity within the Party.In addition, as a representative of Taizhou enterprises, the Companyshared its experience and demonstrated the e?ectiveness of its Partybuilding work at the industrial chain Party building work conference.

The Company was selected as a typical caseof Party building in Zhejiang Province

On February 22, 2024, senior executives embarked on a "RedJourney" to Gutian, where they revisited the Gutian ConferenceMemorial Site and renewed their Party admission oaths.

In July 2024, the Company organized the selection of"Outstanding Party Organization of the Year", "OutstandingParty Members of the Year" and "Outstanding Party Workers ofthe Year", and held an award ceremony for each.

In May 2024, the political commissar delivered a lecture on theDisciplinary Regulations of the Communist Party of China toParty members and the public.

In 2024, we organized "Outstanding Party Branches" to carryout the Party Day-themed activity - "Working Together toCreate a Better Future"

In October 2024, we carried out an investigation activity onmutual promotion of Party building with the School of Marxism,Taizhou University

In November 2024, the General Party Branch of Linhai Factoryheld the annual democratic consultation meeting for Partymembers

In November 2024, as the only enterprise representative inTaizhou City, we delivered a typical speech at the on-sitemeeting of the industrial chain Party building workIn April 2024, in conjunction with the Party General Branch ofthe Linhai Factory, we went to Wugen, Wenling to carry out the"Qingming Patriotic Education" activity

2023 AnnualThematic EducationOrganizationalLife Meeting andDemocratic Appraisalof Party Members

Welcome the NewYear with a warm andcaring heartForge ahead andwrite a new chapter

Learn from Lei Feng'sspiritCarry forward the newtrend of the times

Commemorate therevolutionary martyrsInherit the red gene

Study the regulations andabide by the Party disciplineMaintain reverence anduphold ethical boundaries

Be a pioneer and setan exampleBuild consensus andpromote development

Stay true to ouroriginal aspirationsand soldier on

Focus on promotingreformSet sail for a newchapter

Study the disciplinesto forge the soul andstrengthen the Party spiritSoldier on

Carry forward therevolutionary spiritDraw strength forprogress

Study and implementthe spirit of the ThirdPlenary Session ofthe 20th CPC CentralCommitteeCourageously embrace thecritical missions of the eraStrive to be a pioneer of reform

JanuaryFebruaryMarchApril

May

December

June

November

July

October

August

September

Party Day-themed activitiesMajor honors

128127

Standardize corporate governance, Lay a solid foundation for enterprise development

Contributing to rural revitalizationThe Company actively shoulders social responsibilities and contributes to ruralrevitalization. It has effectively promoted targeted poverty alleviation and regionaleconomic development through a number of initiatives, including supportingmanagement of designated wheat fields in Henghechen Village, Xiachen Street,making targeted donations to Dongdi Township, Nayong County, Guizhou Province,and carrying out consumer assistance in Seda County. In addition, through theCommon Prosperity Workshop program, the Company facilitates nearby employmentfor local residents, contributing Jack's force in realizing common prosperity.

During the reporting period, theCompany participated inprograms concerning ruralrevitalization

The Company actively plays the exemplary and leadingrole of local elites, and has supported the management of10 acres of designated wheat ¬¤elds in Henghechen Village,Xiachen Street. Through resource integration and industrialdriving, it helped villagers increase their income. In this way,the Company contributed to rural revitalization, achieved awin-win result in economic and social bene¬¤ts, and injectednew vitality into rural development.

In an active response to the national call, the Companymade targeted donations to Dongdi Township, NayongCounty, Guizhou Province, supporting local developmentpolicies with practical actions and helping to consolidateand expand local development achievements. Throughprecise allocation of funds and resources, the endogenousdynamic of rural areas was stimulated, achieving a win-winresult of social harmony and economic development.

The company actively carries out consumption assistanceinitiatives in Seda County, its paired support region. Bypurchasing local specialty products and promoting tourismresources, it has effectively stimulated the local consumermarket. These efforts not only generate tangible economicbenefits for Seda¡¯s farmers and herders but also robustlyadvance the sustainable development of local industries,injecting strong momentum into the implementation of the ruralrevitalization strategy.

Case: supporting management of wheat ¬¤elds to contribute to rural revitalization

Case: targeted donations stimulated endogenous dynamic in rural areas

Case: Seda County Consumption Assistance ¡ª Joining Hands to Build a Rural Revitalization Dream

Employment and income increase for farmers. Throughinnovative employment models, the Company established acommon prosperity workshop in Jiaojiang District, TaizhouCity, Zhejiang Province, providing jobs for disabled and low-income farmers. Through collaborative operation of automationequipment, the production efficiency was significantlyimproved while the average monthly income per workerexceeded RMB3,000. In the future, the Company will strivefor further development by enhancing party building, upgradeand improve the Common Prosperity Workshop, contribute tocommon prosperity, and shoulder more social responsibilities.

Case: setting up the Common Prosperity Workshop to support people with disabilities andlow-income groups

Give back to society

The Company adheres to the concept of "returning benefits to society and spreading love" and actively participates in public welfareundertakings. The Company donated money to the Charity Federation to set up an education fund to support poor students, and donatedto the Zhejiang Veterans Support Association for the cause of caring for veterans. Before every festival, the Company arranges visits toeconomically challenged groups for delivering warmth and care. For its years of public welfare contributions, the Company has won manypublic welfare honors, highlighting its active undertaking of social responsibilities.

hundreds ofperson-time

hoursDuring the reporting period, the number ofthe Company's participation in volunteeractivities reached

Average volunteer activity duration perperson

In September 2024, the Company was awarded the titleof Demonstration Enterprise in "Honoring Teachers andPrioritizing Education" by the Jiaojiang District Committeeand District Government, demonstrating the Company'ssupport and contribution to education and its good socialimage in this respect.

Key performance

Key performance

Major honors

132131

Contributing to common prosperity, and returning bene¬¤ts to society

Build a public welfare brand

Through the Zhejiang Filial Piety Sewing Foundation's "Sewing Love for Thousands of Families" and "Doing Good Together" public welfareprograms, the Company has vigorously shouldered social responsibility and delivered humanistic care. In 2024, the Company upgraded the"Doing Good Together" program to the "Jack Charity League" to further motivate enthusiasm for charity, promote the charity cause, carryforward traditional culture, and convey love and hope.

In August 2024, Jianchang County, Liaoning Provincesuffered severe floods. Many customers there had theirequipment damaged and faced the risk of productionsuspension. The Company promptly launched an emergencyresponse mechanism and coordinated closely with localgovernments, rescue teams and customers to providetechnical support and equipment maintenance services ina timely manner to ensure that customer factories resumedoperation as soon as possible.

The Company donated RMB 300,000 to the ZhejiangVeterans Support Association, showing care for veteranswith practical actions, contributing to supporting the militaryand caring for servicemen families, and fostering a socialatmosphere that respects servicemen.

Donation to the Zhejiang Veterans Support Association

Pre-holiday visits and donations

Emergency rescue operations

The Company donated RMB 3 million to the BiXin EducationFoundation to support economically challenged teachersand students and reward outstanding teachers and students.It also visits primary and secondary schools to deliver carebefore the Teachers' Day every year, contributing to thedevelopment of education.

Donation to the Education Foundation

Before the Spring Festival, the Company visited the Xiachenarea, extended festive greetings to the elderly who live alone,and gave them New Year gifts to convey social warmth andlove.

Filial Piety Sewing FoundationCommitted to the mission of "spreading ¬¤lial piety around the world and ¬¤lling the world with kindness", Zhejiang Filial Piety Sewing Foundationfully promoted the "Five Thousand Programs" in 2024. By integrating corporate culture, social responsibility and humanistic care, it promotedhigh-quality development of charity, carried forward the spirit of ¬¤lial piety and kindness, conveyed love and hope, and helped build a warm andsustainable society.

Regularly organizing activities to honor and carefor the elderly, spreading warmth, promoting ¬¤lialpiety, and enhancing the well-being of seniors.

With a benevolent aspiration, setting up specialscholarships for the garment industry to createa fertile talent base for the development of theindustry.

The Company donated RMB 5 million to the Jiaojiang District Charity Federation for various charities, povertyrelief and other activities, contributing to Taizhou's high-quality development and building of a pilot city forcommon prosperity.Donation to the Charity Federation

SewingLove forThousandsof FamiliesSewing forHelping theElderlySmartSewingWorkshopSewingfor TalentCultivation

Sewing for aNew Life

Delivering support to families, and providingsewing services to those in need and those withlimited mobility; Carrying out public welfare sewingactivities, spreading kindness, expanding servicecoverage, promoting mutual assistance amongneighbors, and fostering a good communityatmosphere.

Cooperating with textile and garment colleges tobuild smart sewing workshops, establishing aninnovative practice platform, and cultivating talentsin the garment industry with both warmth andstrength.

Translating goodwill into action, developingsuitable sewing equipment for people withdisabilities in both legs, and providing skill trainingto help them integrate into society.

134133

Contributing to common prosperity, and returning bene¬¤ts to society

Jack Charity League

While developing itself, the Company has always been enthusiastic about public welfare and actively delivers bene¬¤ts to the community. TheCompany formulates detailed plans for public welfare activities every year. Through public welfare programs such as Doing Good Together, mobilecharity markets, and volunteer public welfare actions, it wholeheartedly ful¬¤lls corporate social responsibility and conveys humanistic care.In 2024, the Company continued to upgrade public welfare programs, further stimulated public welfare enthusiasm, and promoted high-qualitydevelopment of charity. By carrying forward traditional culture and conveying love and hope, the Company has made signi¬¤cant contributionsto the sustainable development of society.

Since 2023, the "Doing Good Together" charity program has carried out

charity donation activities at the Jiaojiangheadquarters, Linhai factory, Xiachen factory, Taizhou Bay Cluster Area factory and supplier Qiangxin MachineryTechnology (Laizhou) Co., Ltd. These events were publicized through WeChat public accounts, video accounts, etc.to attract more upstream and downstream people in the industrial chain to participate. All proceeds from the programshave been donated to the Zhejiang Filial Piety Sewing Foundation.

During the reporting period, the Company participated in

public welfare programs concerning rural revitalization,common prosperity, support for targeted Western regions, education support, community development, caring for theelderly, charity sales, Sunshine Home, and Doing Good Together. More than

1,000

persons participated,with an average of

1.8

hours per person participating in public welfare activities. The total amount of donations incash and materials approached RMB

1.9

million.

The "Sewing Love for Thousands of Families" public welfare program has been extensively carried out in many places across thecountry with a total of

sewing volunteers recruited. In 2024,

sewing activities were carried out, providing sewing servicesto more than

elderly people, and sewing more than

1,500

pieces of clothing in total. Moreover, the foundation launchedthe "Filial Piety Sewing Class" to help children inherit traditional crafts and cultivate ¬¤lial piety. Joining hands with the communityto build "Charity Sewing Homes" to pass on warmth to every corner of the society. The Sewing Love for Thousands of Familiesprogram won the Excellence Award in the 2024 Taizhou City New Era Civilization Practice Project Competition.

As of December 2024, the total assistance funds of the Filial Piety Sewing Foundation have reached RMB

3.5

million, covering

families in need, providing educational support to more than

targets, and providing assistance tohundredsofelderly people. Zhejiang Filial Piety Sewing Foundation was rated as a4A-level social organization inZhejiang Province.

The ¡°Sewing for a New Life¡± program hassuccessfully helped

disabled people regaintheir confidence in life and

disabled collegestudent land a job.

The Smart Sewing Workshop donatedequipment worth RMB

1.01

million toChangzhou Vocational Institute of Textile andGarment for economically challenged studentsto study and complete their education.

Key performance

136135

Contributing to common prosperity, and returning bene¬¤ts to society

Key performance

Indicator classi¬¤cationName of quantitative indicator Unit2024

SocietyNumber of employeesNumber of employees/7,163Number of newemployees

Number of newly-recruited employees/1,561Number of newly-recruited full-time employees/1,561Number andproportion ofemployees by gender

Number of female employees/2,290Number of male employees/4,873Proportion of female employees%32Proportion of male employees%68Number andproportion ofemployees byemployment type

Number of full-time employees/7,163Proportion of full-time employees%100

Number andproportion ofemployees by age

Number of employees aged 30 and below/2,028Number of employees aged 30-50/4,151Number of employees aged 50 and above/984Proportion of employees aged 30 and below%28Proportion of employees aged 30-50%58Proportion of employees aged 50 and above%14Number of employeesby educationalbackground

Number of employees with bachelor's degree or below/5,719Number of employees with a Bachelor's degree/1,300Number of employees with a Master's degree/133Number of employees with a doctoral degree/11Number of employeesby rank

Number of senior management sta?/104Number of mid-level management sta?/263Number of junior management sta?/595Ordinary employees/6,201R&D departmentpersonnel

Total number of R&D personnel/1,289Proportion of R&D personnel%18Number andproportionof employeeresignations

Number of employee resignations/751Employee turnover/resignation rate%10Number of voluntary resignations/751Voluntary employee resignation rate%10Salary

Average salaryRMB 10,00014.48Per capita incomeRMB 10,00089.54Protection of basicrights and interests

Employee social security payment coverage rate%100Number of employees with di?culties in unit revenue assisted

Employees permillion revenue

0.0008

DiscriminationCon¬¤rmed incidents of discrimination/0Forced laborCon¬¤rmed incidents of forced labor/0

Indicator classi¬¤cationName of quantitative indicator Unit2024

Child laborCon¬¤rmed incidents of child labor/0Employee satisfactionsurvey

Total copies of employee satisfaction questionnaires distributed/6,474Questionnaire response rate%78Employee satisfaction results%91.42Health and safetytraining and drills

Total hours of occupational health and production safety trainingHours7,500Total training hours per personHours1Number of safety drills (¬¤re, toxic gas leak, etc.)/150

°²È«Éú²úͶÈë

Total investment in production safetyRMB 10,0002,020.43Proportion of total investment in production safety againstoperating revenue

%0.33Amount of employee work-related injury insurance investmentRMB 10,000328Employee work-related injury insurance coverage rate%100

Work-related injury

Number of employees injured at work (serious injury or above)/0Number of work-related deaths (if none, ¬¤ll in 0)/0Number of work-related deaths per unit of revenue

Employees per RMB

100 million revenue

Number of workdays lost due to work-related injuriesDay(s)963Number of workdays lost due to work-related injuries per unitof revenue

Days per RMB 1

million revenue

0.16

Occupational disease incidence%0Employee lost time injury frequency rate%0.34Injury rate per working hour

% per million

working hours

1.34

Supplier security

Number of suppliers injured at work (minor injuries or above)/0Number of work-related deaths of suppliers (if none, ¬¤ll in 0)/0Total hours of supplier safety trainingHours100

Employee traininghours

Total training hoursHours49,026Average training hours per personHours6.84Total training hours for female employeesHours15,585Average training hours for female employeesHours6.81Total training hours for male employeesHours33,441Average training hours for male employeesHours6.86Total training hours for senior managementHours1,680Average training hours for senior managementHours16.15Sta? trainingassessment

Total number of training sessions throughout the year/2,300Annual training expenditureRMB 10,0001,088Number of employees trained/7,163Employee training coverage%100

138137

Appendices

Indicator classi¬¤cationName of quantitative indicator Unit2024Suppliers in generalNumber of main suppliers/243Supplier categorymanagement

Raw materials/194Equipment/36Non-production/13Supplier tiermanagement

Number of tier-1 suppliers (direct suppliers)/234Number of non-tier-1 suppliers (indirect suppliers)/9Supplier assessment

Supplier assessment coverage%100Supplier assessment pass rate%100

Sustainableprocurement

Percentage of suppliers who have signed a supplier code ofconduct

%97.94Percentage of suppliers that have signed clauses that includeenvironmental and labor requirements

%97.94Number of suppliers that have conducted social impactassessments

/54Number of suppliers that have conducted environmentalimpact assessments

/111Number of suppliers identi¬¤ed as having actual and potentialsigni¬¤cant negative social impacts

/0Number of suppliers identi¬¤ed as having actual and potentialsigni¬¤cant negative environmental impacts

/0Proportion of purchasers within the Company who havereceived sustainable procurement training

%100Production quality

Product quali¬¤cation rate%99.43Number of product recalls/1,200The product recall rate was%0.039Amount of damages caused by major safety and qualityaccidents related to products and services in the year

RMB 10,0000Intellectual propertyrights

Holding of trademarks, etc./669Accounts payable andoutstanding

Amount of overdue paymentRMB 10,0000

Amount of overdue payments to SMEsRMB 10,0000R&D investment

R&D expenditureRMB 10,00048,799.02

Proportion of total R&D expenditure against operating revenue%8.01

Proportion of R&D sta? %18.00Intellectual propertyrights

Total Valid Patents Held/2,705

Invention Patents/1,125

Utility Model Patents/1,334

Design Patents/246

Accumulated Software Copyrights Obtained/549Customer service

Customer feedback response speed/

Response within10 minutes

Customer feedback response rate%99.94

Indicator classi¬¤cationName of quantitative indicator Unit2024

Customer service

Customer complaints/67Cumulative customer service/55,403Customer satisfactionsurvey

Total number of customer satisfaction questionnaires distributed/11,000Total number of customer satisfaction questionnaires returned/10,450Total number of valid customer satisfaction questionnaires returned/10,450Questionnaire response rate%95Results of customer satisfaction survey%88.5

Data security andcustomer privacy

Number of con¬¤rmed incidents of data security/0Speci¬¤c amount involved in incidents of data security RMB 10,0000Number of training sessions for data security and customerprivacy protection

/970Number of relevant emergency drills/1Number of con¬¤rmed incidents of customer privacy breach/0Speci¬¤c amount involved in incidents of customer privacy breachRMB 10,0000

Environment

Environmentalmanagement

Total investment in environmental managementRMB 10,000921.78Proportion of total investment in environmental managementagainst operating revenue

%0.15Number of violations of environmental laws and regulations/0Amount of major administrative penalties imposed by relevantdepartments such as the ecological environment department dueto environmental incidents during the reporting period

RMB 10,0000

Energy

Diesel consumptionL244,545Natural gas consumptionCubic meters1,100,248Power consumptionMWh168,470Total amount of purchased electricityMWh150,969Amount of renewable electricity generated and consumedMWh17,501Solar energy consumptionMWh12,815Air pollutantemissions

Total exhaust emissions10,000 cubic meters493,065.87Nitrogen oxide (NOx) emissionsKg2,686.41Volatile organic compounds (VOCs) emissionsKg3,349.52Particulate matter (PM) emissionsKg40,168.78Water pollutantdischarge

Total wastewater discharge10,000 cubic meters1.46Water resourcemanagement

Total water consumptionTons4,261,418

Water use intensity

Tons per RMB 10,000revenue

6.99

Waste disposal

Total waste generationTons4,028.85

Of which: total amount of hazardous wasteTons391.13

Of which: total amount of non-hazardous wasteTons3,637.72Raw materials andpackaging materialsmanagement

Total mass or volume of materials used in production and

packaging

Tons per cubic meter5,834.4

Of which: non-renewable materials usedTons per cubic meter2,203.2

140139

Appendices

Indicator classi¬¤cationName of quantitative indicator Unit2024Raw materials andpackaging materialsmanagement

Renewable materials usedTons per cubic meter3,631.2Recycling rate of materials used in production and packaging%95Of which: production material recovery rate%95Of which: packaging material recycling rate%95

Governance

Board of Directors

Total number of Board of Directors members/9Number of female directors/2Number of non-independent directors/6Number of independent directors/3Proportion of female directors on the Board of Directors%22Proportion of executive directors on the Board of Directors%67Proportion of independent directors on the Board ofDirectors

%33Proportion of independent directors on the AuditCommittee

%67Proportion of independent directors on the CompensationCommittee

%67Proportion of independent directors on the NominationCommittee

%67Proportion of independent directors with a tenure of morethan 6 years

%0Proportion of independent directors who serve asindependent directors in more than 3 listed companies

%0Number of meetings of the Board of Directors attended byall directors

/10Number of meetings of the Audit Committee of the Boardof Directors

/4Number of meetings of the Nomination and RemunerationCommittee of the Board of Directors

/3Number of meetings of the Strategy Committee of theBoard of Directors

/1Average attendance rate of the Board of Directors%100Number of directors attending less than 75% of meetings/0Minimum attendance requirement for each director%100Average tenure of members of the Board of DirectorsYear(s)4.12Standard deviation of age of directors, supervisors andsenior managers

Year(s)6.26Board of SupervisorsNumber of meetings of the Board of Supervisors/7Shareholders' MeetingNumber of Shareholders' Meetings/3Equity andshareholders

Executive shareholding ratio%0.75Stock pledge ratio%0

Economy

Total assetsRMB 10,000785,320.96Operating revenueRMB 10,000609,365.38Pro¬¤t before tax (PBT)RMB 10,00090,163.45

Index of IndicatorsLevel-1 topicLevel-2 topicRelated chapters

Combating climatechange

Management of risks and opportunities related to climate changeCombating climate changeAssess the adaptability of the Company's strategy and businessmodel to climate change

Combating climate changeTransformation plans and measures to address climate-related risksand opportunities, and progress

Combating climate changeProvide greenhouse gas emissions in di?erent scopes by categoryCombating climate changeProvide greenhouse gas emissions by categoryCombating climate changeMethods for calculating greenhouse gas emissions Combating climate changePractices in reducing Greenhouse gas emissionsCombating climate changeNew technologies, products and services that are conducive toreducing carbon emissions and achieving carbon neutrality

Cleantech opportunitiesPollutant emissions

Information of pollutant discharge Pollution emission controlPollutant discharge and treatmentPollution emission controlImpact on the groupPollution emission controlAdministrative penaltiesPollution emission controlWaste disposal

Amount of wastePollution emission controlInformation of treatmentPollution emission control

Ecosystem andbiodiversityconservation

Exit

No, the Company's operations do not

involve biodiversity destructionProtective measures within the area

No, the Company's operations do not

involve biodiversity destructionProtective and restoration measures

No, the Company's operations do not

involve biodiversity destructionBiological genetic resources

No, the Company's operations do not

involve biodiversity destructionProduct life cycle impact

No, the Company's operations do not

involve biodiversity destructionEnvironmentalcompliancemanagement

Risk managementEnvironmental compliance managementEmergencyEnvironmental compliance managementAdministrative penaltiesEnvironmental compliance managementEnergy utilization

Status of useE?cient use of resourcesClean energyCombating climate changeConservation targetE?cient use of resourcesWater resourceutilization

Status of useE?cient use of resourcesConservation targetE?cient use of resourcesCircular economy

Goal-oriented planE?cient use of resourcesSpeci¬¤c measuresE?cient use of resourcesProgressE?cient use of resourcesRural revitalization

Corporate strategyContributing to rural revitalizationSpeci¬¤c measuresContributing to rural revitalizationWork resultsContributing to rural revitalization

142141

Appendices

Level-1 topicLevel-2 topicRelated chapters

Social contributionContributionGive back to societyInnovation Driven

Strategic goalsR&D innovation drivenSpeci¬¤c situationR&D innovation drivenR&D resultsR&D innovation drivenInnovation impactR&D innovation driven

Scienti¬¤c andtechnological ethics

Field of workR&D innovation drivenInternal managementR&D innovation drivenViolations

No, the Company's research anddevelopment does not involveany violation of scienti¬¤c andtechnological ethicsTraining and promotion

No, the Company's research anddevelopment does not involveany violation of scienti¬¤c andtechnological ethicsSupply chain security

Risk managementSupply chain managementSupport measuresSupply chain managementImprovement measuresSupply chain managementTreat small andmedium-sizedenterprises equally

Unpaid amountNot involvedSpeci¬¤c situationAdhere to business ethicsEcosystem andbiodiversityconservation

Exit

No, the Company's operations donot involve biodiversity destructionProduct and servicesafety and quality

Management systemEnsure product qualityQuality certi¬¤cationEnsure product qualityMajor accidentsEnsure product qualityAfter-sales serviceEnsure product qualityAccessibilityEnsure product qualityData security andcustomer privacyprotection

Management systemDigital strategySecurity incidentsDigital strategyCustomer privacy protectionDigital strategyLeakageNot involvedEmployees

Employee recruitmentProtect employees¡¯ rights and interestsOccupational health and safetyCare for employees' healthCareer development and trainingTalent training and developmentDue diligenceDue diligence progressESG governanceStakeholdercommunication

Communication systemESG governanceSuggested channelsESG governanceCircular economyGoal-oriented planE?cient use of resourcesAnti-commercialbribery and anti-corruption

Management systemAdhere to business ethicsRisk assessmentAdhere to business ethicsTraining performanceAdhere to business ethicsEventNot involvedAnti-unfaircompetition

Management systemAdhere to business ethicsAdministrative penaltiesNot involved

144143

Appendices