Corporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
About This ReportMessage from the ChairmanAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Society
Environment
CorporateGovernance
Response to Climate ChangeEnvironmental Compliance ManagemertE?cient Resource UtilizationCircular Economy and Green ProductsEcosystem and Biodiversity Protection
R&D and Innovation DevelopmentProduct and Service AssuranceSoptlight: Lean Production. the Path toSystematic Transformation and OptimizationInformation Security and Privacy ProtectionBuilding a Sustainable Supply ChainEmployee Rights and DevelopmentSocial Contribution and Rural Revitalization
Soptlight: Party BuildingLeadership: Setting a New Course forHigh-Quality DevelopmentScientic and Standardized GovernanceStrengthening the Risk Defense LineUpholding Business Ethics
About This ReportAbout Farasis EnergyESG Management
ESG Performance TableGuidelines No. 14 of Shanghai StockExchange for Self-Regulation of ListedCompanies—Sustainability Report (Trial)IndexGRI IndexThird Party Assurance Report
0102
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
About This ReportThe Environmental, Social, and Corporate Governance (ESG) Report (hereinafter referred to as “this report”) is publiclyissued by Farasis Energy (Ganzhou) Co., Ltd. (hereinafter referred to as “Farasis Energy”). This report is compiled based onthe principles of openness and transparency, discloses practices and performance of Farasis Energy in fullling ESG-relatedissues in 2024.This English translation of the report is for reference only. In case of any discrepancies between the English and Chineseversions, the Chinese version shall prevail.Reporting Scope
Reporting Period
Denition of Terms
Unless otherwise specied, the policies, statements, and materials in this report cover the actual business scope of FarasisEnergy and our subsidiaries, which is the same as that of the annual report issued by Farasis Energy. Unless otherwisestated, this report is denominated in CNY (renminbi).
This report is the third ESG report released by Farasis Energy, covering the period from January 1st, 2024 to December31st, 2024. In order to enhance the readability of the report, some of the contents or data have been backdated to previousor subsequent years.
For the convenience of expression and reading, “Farasis Energy”, “we” and “the Company” in this report refer to FarasisEnergy (Ganzhou) Co., Ltd. and our subsidiaries, such as Farasis Energy (Zhenjiang) Co., Ltd.
Reporting Principles
Access to This Report
This report is ultimately compiled by identifying important stakeholders, analyzing and rating materiality issues related toenvironment, society and governance, making decisions on the scope of the report, as well as collecting, summarizing,organizing, and reviewing relevant data and materials in the preparation process.The following standards and requirements were referred to in the preparation of this report.
This report is published in both electronic and printed formats. In case of conicts, the Chinese version shall prevail. You canaccess the electronic version of this report through the following website:
https://www.farasis.com/index/investorYou can contact us as follows:
Shanghai Stock Exchange,"Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies—Sustainability Report (Trial)"Shanghai Stock Exchange,"Guidelines No. 4 of Shanghai Stock Exchange for Self-Regulation of Listed Companies ——Preparation of Sustainability Reports"Global Sustainability Standards Board (GSSB), "GRI Standards"United Nations Sustainable Development Goals (SDGs)International Organization for Standardization,"ISO 26000: Guidance on Social Responsibility (2010)"
Phone: 0797-7329849E-Mail: farasisIR@farasisenergy.com.cn; sustainability@farasisenergy.com.cn
0304
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
About Farasis Energy
Farasis Energy (Stock Code: 688567) is one of the leading companies in the global pouch battery industry and one ofthe rst companies in China to achieve mass production of ternary pouch batteries. We are committed to the mission of"providing green energy and building a smart world," integrating sustainable development into our daily work, processes,and details, and actively fullling our economic, ecological, and social responsibilities on a global scale.At di?erent stages of energy development, we have leveraged our strong R&D and manufacturing capabilities to create cleanenergy solutions that meet human needs and lead industry development. Currently, we are rapidly developing in applicationareas such as transportation, energy storage, equipment, and energy Internet of Things, focusing on the greening of energyand the electrication of transportation.Currently, we have established long-term strategic cooperative relationships with well-known domestic and internationaloriginal equipment manufacturers (OEMs), jointly promoting the achievement of sustainable development goals. Through thecarbon neutrality of mobile travel and energy use, we are committed to building a more sustainably developed world.We provide the world with leading clean energy products and services, promoting the sustainable development of humansociety and powering a better life for humanity. Looking ahead, Farasis Energy will start from the new energy vehicle andenergy storage markets, and gradually expand into the smart energy market.
Company Prole
Corporate CultureDedicate to technology innovation, lead energy transformation, promote abetter life for mankindWe focus on technology learning and innovation and ensure su?cient investment inR&D as well as talent training. This allows us to maintain our leading position in theindustry and we keep track of changes in laws, regulations, and policies related to theenergy sector, thereby contributing to the landscape of energy transformation.
Provide clean energy, build an intelligent worldTo achieve environmental protection goals and reduce carbon emissions, we assumethe mission of providing green energy and strive to meet domestic, international, andindustry standards as well as customer requirements in every aspect of research,production, and sales.Innovation and entrepreneurship for win-win cooperation
We adhere to the principles of mutual respect, honesty, and humility, as well ascollaborative equality, in internal communication and interactions with externalpartners. Abiding by rules, regulations, and procedures, we foster a workingatmosphere of seamless communication, unity, and forward momentum in ourcompany. Showing respect to our competitors and valuing our customers, wecontinuously enhance product safety and quality, uphold fair competition, andeliminate corruption in the market.
Our vision
Our mission
Our spirit
Focusing on the R&D, production, and sales of lithium-ion batteries and battery systems for new energy vehicles, FarasisEnergy lays out a core market with green mobility and smart energy, while actively expanding into emerging markets forparticular industry applications.
Products and Businesses
Our Partners
Farasis Energy is currently implementing several cutting-edge technology developments targeting the future direction ofbattery development, including semi-solid/solid-state lithium-ion battery technology, sodium-ion battery technology, high-energy-density power battery cell technology, new chemical and electrochemical system energy storage technology, andcathode and anode material R&D technology. Adhering to the technology research and development concept of "onegeneration in production, one generation in reserve, and one generation in development," Farasis Energy has currentlymass-produced batteries with an energy density of 285Wh/kg. The 400Wh/kg cell is in the process of industrialization, andthe full solid-state battery under development can reach an energy density of 500Wh/kg.
Our Products and Applications
CellModuleBMSPack
Electric AircraftCommercial VehiclePassenger VehicleEmerging Businesses
0506
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Leveraging its profound technical accumulation and forward-looking market layout, Farasis Energy has demonstratedextensive application scenarios across multiple elds.
Farasis Energy has built a "4+1" production site layout to ensure the supply of power batteries to our global customers.In 2024, we have been actively promoting the construction of two major sites, with the Ganzhou New Energy Site and theGuangzhou Site gradually taking shape. The Ganzhou New Energy Site, as the rst site for our SPS products, will havea capacity of 30GWh upon completion. The project is divided into two phases. Phase one, which will have a capacity of15GWh upon completion, has gradually entered mass production in October 2024. The Farasis Energy Guangzhou 30GWhpower battery production Site is located in the Knowledge City of Huangpu District, Guangzhou. By the end of 2024,the Guangzhou Site had built a capacity of 15GWh, mainly featuring the LFP (lithium iron phosphate) system. It is alsocompatible with ternary, sodium-ion, liquid, semi-solid, and solid-state batteries. The PACK factory began trial production inJune 2024, and some production lines were put into operation in the rst quarter of 2025, with the capacity utilization rate inthe ramp-up stage.
Our Business and Layout
30GWh30GWh5GWh24GWh
Siro
Ganzhou New Energy SiteGuangzhou SiteGanzhou SiteZhenjiang Site
Türkiye Site
2024 Milestones
Farasis Energy signed a new energy cooperationagreement with FAW Jiefang, committed to jointlypromoting the market and industrial chain developmentof semi-solid and solid-state batteries for commercialvehicles.
Farasis Energy's Super Pouch Solution (SPS) waso?cially launched with Geely Radar Horizon as its rstmass-produced vehicle model.
The first global strategic model ofAion, the second-generation AIONV (King Dragon), equipped withFarasis Energy's star product SuperPouch Solution (SPS), was globallylaunched.
Jiangling Group New Energy andFarasis Energy signed a strategiccooperation on solid-state batteries,and the SPS battery pack for the YiChi 05 model was launched.
Farasis Energy made its debut in Southeast Asia by participating in the “Asiabike Jakarta 2024” and “INAPA2024” exhibitions. It reached strategic cooperation on power batteries with Southeast Asian battery swap solutionprovider Moli Power and Indian Ingar, promoting the electrication of passenger vehicles and two-wheelers inSoutheast Asia, and supporting energy conservation, emission reduction, and industrial chain upgrading.
The rst overseas model equipped with Farasis Energy's Super Pouch Solution (SPS) in Southeast Asia, GeelyRadar Horizon, was o?cially launched in Thailand.
Farasis Energy was honored to be listed on the 2024 China Sodium-ion Battery Annual Competitiveness BrandTOP10, jointly released by EVTank, Hailong Network, Battery Network, Ivi Economic Research Institute, andChina Battery Industry Research Institute. Farasis Energy was recognized for its sodium-ion batteries' highenergy density, strong low-temperature performance, and outstanding market performance.
The first pack of the trialproduction at FarasisEnergy' Guangzhou Sitewas launched.
On March 1
st
On June 29
th
On October 29
th
In November
On July 23
rd
On September 29
th
From April 30
th
to May 15
th
On April 23
rd
Electric TrucksElectric Marine
Electric Two-WheelersPassenger VehiclesPerformance VehiclesBusesConstructionEquipment
Commercial andIndustrial EnergyStorageeeVTOL
0708
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Awards and Honors
FieldAwarding unitAward
Governance
Sci-Tech Innovation Board Daily & CAixin, etc.Best ESG Company on the STAR Market in 2024Shenzhen Jumen Finance Technology Co.,Ltd.
Best Investor Relations Data Award forCommunication and Interaction in Jumen Finance's2024 Annual ListShanghai British Chamber of Commerce
Finalist for the Green Supply Chain Award at the2nd Annual ESG AwardsEnvironmental
Jiangxi Provincial Department of Industry andInformation Technology
Jiangxi Green Manufacturing Enterprise of 2024Ministry of Industry and Information Technologyof the People's Republic of China
National Green Manufacturing Factory of 2024
Social
S&P Global
Listed in S&P Global'sSustainability Yearbook
(China Edition) 2025Jiangxi Provincial "Ankang Cup" CompetitionOrganizing Committee O?ce
National "Ankang Cup" Competition Outstanding
UnitJiangxi Provincial Federation of Industry andCommerce
Jiangxi Private Enterprise Social Responsibility
Excellence Case of 2024Jiangxi Provincial Federation of Trade UnionsJiangxi May 1st Labor AwardJiangxi Provincial Department of Industry andInformation Technology O?ce
Outstanding Unit in Jiangxi Industrial Cybersecurity
Emergency Drill of 2024China Automotive Power Battery IndustryInnovation Alliance
Most Promising EnterpriseQidian Lithium Battery, Qidian Sodium Battery,Qidian Charging and Swapping Platform
2024 China Two-Wheeler Lithium Battery TOP10
Brand AwardGanzhou Intellectual Property O?ce
Outstanding Award at the First Ganzhou High-Value
Patent Conversion CompetitionJiangxi Provincial People's Government
Jiangxi Science and Technology Award - Second
Prize for Technological Progress (Ganzhou)Jiangxi Provincial People's Government
Jiangxi Science and Technology Award - Second
Prize for Technological Progress (Zhenjiang)Jiangxi Provincial Federation of Industry andCommerce
Ranked 13th in Jiangxi Top 100 Private Enterprises
FieldAwarding unitAward
Social
Jiangxi Provincial Federation of Industry andCommerce
Ranked 11th in Jiangxi Top 100 ManufacturingPrivate EnterprisesJiangxi Provincial Department of Science andTechnology
Jiangxi Leading Technology Enterprise of 2024Jiangsu Provincial Department of Industry andInformation Technology
Jiangsu Four-Star Cloud EnterpriseJiangsu Provincial Certication AgencySecond Batch of High-Tech Enterprises in 2024Jiangxi Provincial Department of Industry andInformation Technology
Outstanding Response Unit in Jiangxi Industrial
Cybersecurity Attack-Defense Drill of 2024Jiangxi Provincial Department of Science andTechnology, Jiangxi Provincial Department ofFinance, Jiangxi Provincial Taxation Bureau
National High-Tech Enterprise51jobOutstanding EmployerLiepinExtraordinary Employer Award of 2024DEKRA
DEKRA ISO 26262 Functional Safety Product
CerticationAutomotive Business Review
Farasis Energy's "Long-Cycle High-Loading Silicon
Anode Battery Technology" Won the 9th Lingxuan
AwardJiangxi Provincial Health and Family PlanningCommission
Ganzhou Healthy EnterpriseGaogong Lithium BatteryPioneer in the 2024 Sodium Battery MarketEVTank, Haire, Battery Network, IVIE, ChinaBattery Industry Research Institute
Listed in "2024 China Sodium-Ion Battery TOP10
Competitiveness Brand" and "2024 China Solid-
State Battery TOP10 Competitiveness Brand"Gaogong Lithium Battery
"Long-Cycle High-Loading Silicon Anode Battery
Technology" Won the "Gaogong Golden Globe
Award - Technology of the Year 2024"
0910
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
ESG Management
Farasis Energy has deeply embedded the concept of sustainability into its corporate culture, which is driven by "innovation,entrepreneurship, collaboration, and shared success." Guided by its mission to "provide green energy and build an intelligentworld," the company remains committed to its long-term vision: "focusing on technological innovation, leading the energytransition, and powering a better life for humanity."In 2024, Farasis Energy systematically established a sustainability strategy framework under the guiding principle of"EMPOWER." This framework encompasses 14 key focus areas and aligns comprehensively with the United NationsSustainable Development Goals (SDGs), providing clear value direction for the company's long-term sustainabledevelopment.
Sustainable Development Framework
Sustainable Development Philosophy
Sustainability Philosophy: EMPOWER
E?ciency
E?ciency is the key to achieving sustainable development outcomes. Through technologicalinnovation, the company enhances energy efficiency and minimizes waste, driving bothenvironmental and economic benets.
Partnership
Collaboration serves as the bridge to long-term sustainable development. By working closelywith various partners, the Company promotes the application and inuence of new energytechnologies, fostering a shared vision for sustainable growth.
Eco-friendly
Ecology is a prerequisite for sustainability. The Company adopts eco-friendly practices in itsoperations, supporting ecosystem sustainability and conserving natural resources.
Management
Effective management is the foundation of a sustainable development strategy. The Companyensures scientific, efficient, and controlled management practices throughout development,production, and commercialization, optimizing decision-making processes and executioncapabilities.
Well-being
Well-being is the ultimate goal of sustainability. The Company prioritizes the well-being ofemployees, communities, and consumers, creating broader social benefits and improvingquality of life.
Ownership
Responsibility is the driving force behind sustainability. The Company actively fullls its socialresponsibilities by investing in rural revitalization and community development, engaging withand responding to societal concerns.
Resilience
Resilience is a core capability for sustainable development. By strengthening its ability tonavigate external challenges, the Company continuously enhances adaptability and growth,ensuring long-term business stability.
Faresis Energy Sustainability Strategy House
E?ciency
Dedicate to technology innovation, lead energytransformation, promote a better life for mankind.
Provide clean energy, build an intelligent world
Innovation and entrepreneurship for win-win cooperation
Mission
Spiri
Philosophy
Corporate GovernanceEnvironmentSociety
M
anagement
P
artnership
Ownership
Well-being
Eco-friendly
Resilience
Sustainability CulturePhilosophyKey Focus Areas
Resilient Operations Climate Change Response Product Quality
Information Security
Occupational Health & Safety
Research & Innovation
Labor & Human RightsResponsible Procurement
Community Engagement
Environmental ManagementResource ManagementCircular EconomyBiodiversity
Business Ethics
1112
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Farasis Energy continuously enhances the ESG sustainability framework by establishing a three-tier governance structure—Decision-making Level, Management Level, and Execution Level—under the overall leadership of the General Manager.This structure ensures the e?ectiveness, scientic rigor, and regulatory compliance of ESG governance through strategicplanning and institutional mechanisms.
Sustainable Governance Structure
Decision-making Level
Management Level
Executive Level
General Manager
ESG Committee
ESG Working Group (Secretariat)
ESG Practice
Production SitesDepartments
+
Farasis Energy ESG Governance Structure
In 2024, the Company continues to strengthen ESG training and capacity-building programs, covering senior management,departmental representatives, and ESG coordinators at operational sites. These e?orts aim to enhance ESG managementexpertise, deeply integrate ESG principles into corporate strategy and daily operations, and drive the achievement ofsustainable development goals.
Decision-making Level
Management Level
Execution Level
Led by the General Manager, this level holds overall ESG oversight responsibilities. It is responsible for approvingthe company's ESG strategy and objectives, identifying ESG risks and opportunities, formulating response plans,and reviewing ESG disclosures.
Chaired by the General Manager, the ESG Management Committee consists of Vice Presidents and headsof primary departments. This level identifies, analyzes, and evaluates ESG risks and opportunities; leads theintegration of ESG strategy with corporate strategy; establishes ESG objectives and plans; formulates ESG policiesand performance evaluation mechanisms; and provides strategic recommendations to the General Manager.
ESG Working Group (Secretariat O?ce)
Departments and Sites
Comprising representatives from various departments and operational sites, this group coordinates ESGexecution. A designated lead department oversees the implementation of ESG decisions made by themanagement team, monitors ESG-related projects, develops ESG strategies, sets realistic ESG objectives andplans, and ensures the integration of ESG initiatives across all business functions and locations.Serving as implementation units, departments and Sites execute ESG-related decisions, track daily ESG-relatedactivities, collect and consolidate ESG data, and provide critical information for decision-making.
11121112
1314
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Materiality Analysis
In 2024, the Company conducted an ESG materiality assessment targeting key stakeholders, including board members,shareholders and investors, senior management, department heads, employees, customers, partners, government andregulatory bodies, and community partners. A total of 377 valid responses were collected during this assessment.Compared to the 2023 materiality assessment, this year’s evaluation was fully aligned with the 21 topics outlined in theGuidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies—Sustainability Report (Trial).
Additionally, adjustments and renements were made to reect the company’s specic circumstances. A total of 29 topicswere evaluated based on their material impact on Farasis Energy, leading to the identication of the 2024 Materiality Matrix.
Materiality Assessment Process
Materiality Matrix
Environmental
Governance
Social
? Environmental Compliance
Management? Waste Management? Energy Utilization? Pollutant Emissions
? ESG Governance? Tax Transparency? Anti-Unfair Competition
? Innovation-Driven Development? Product and Service Safety and
Quality? Employee Compensation and
Benets? Data Security and Customer
Privacy Protection
? Climate Change Response? Circular Economy? Water Resource Utilization? Ecosystem and Biodiversity Protection
? Anti-Bribery and Anti-Corruption? Due Diligence? Stakeholder Communication
? Customer Rights Protection? Employee Health and Safety? Protection of Statutory LaborRights? Employee Complaints andCommunication Channels? Employee Training and
Capability Building? Responsible Procurement? Supply Chain Security? Technology Ethics? Equal Treatment of SMEs? Social Contribution? Rural Revitalization
Farasis Energy 2024 Material Issues
Farasis Energy Materiality Assessment Process
Farasis Energy 2024 Materiality Matrix
| 01 | 02 | 03 |
Identication of Material IssuesPrioritization of Material IssuesReview and Approval
The Company has conductedan in-depth analysis of externallaws and regulations as well assupervisory policies, combinedwith industry best practices,annual development plans,sustainable developmentstrategies, and the focus pointsof stakeholders and expertassessments, to identify thematerial sustainability issuesthat have a significant impacton Farasis Energy and itsstakeholders.
Based on the ESG strategy,the Company conducted ananonymous questionnaire surveyamong internal and externalstakeholders to identify the coreissues that are most importantand require priority managementfor Farasis Energy this year.The results were then prioritizedin conjunction with expertassessments.
The Company's seniormanagement reviewed andapproved the assessmentprocess and results of themateriality issues. Theassessment results were thendisclosed internally within thecompany to ensure that theyare fundamentally in line withthe company's actual situation,its ESG strategy, and therequirements of domestic andinternational ESG informationdisclosure standards.
Innovation-Driven DevelopmentProduct and Service Safety and QualityEmployee Compensation and Benets
Customer Rights ProtectionTax TransparencyAnti-Unfair CompetitionDue DiligenceAnti-Bribery and Anti-CorruptionStakeholder CommunicationResponsible Procurement
Technology EthicsSocial ContributionRural Revitalization
Employee Health and SafetyProtection of Statutory Labor Rights
Data Security and CustomerPrivacy ProtectionEnvironmental ComplianceManagementWaste ManagementPollutant EmissionsCircularEconomyWater Resource Utilization
Ecosystem and Biodiversity Protection
Importance to the Company
Importance to Stakeholders
Climate ChangeResponse
Employee Complaints andCommunication ChannelsEmployee Training and Capability BuildingEqual Treatment of SMEs
Responsible Procurement
Energy UtilizationESG Governance
1516
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Sustainable Risk ManagementFarasis Energy has identied key issues of signicant importance to both the company and its stakeholders. The Companyhas comprehensively initiated risk forecasting and opportunity identication processes to assess the impact of these issueson daily operations and the value chain, ensuring decision-making remains forward-looking and scientically sound. In termsof information disclosure, the Company prioritizes the annual management measures for key issues, providing stakeholders
Issues
Impact Scope
ImpactnatureA?ectedstakeholders
RiskOpportunityDisclosure locationSDGs
Environmental
ComplianceManagement
√√√? Regulator
Increasingly stringent environmental regulations require companies to investmore resources to ensure compliance, or face the risk of heavy fines, legalaction, and even production shutdowns or market bans.
By strengthening environmental compliance management, enterprises can improve theirown image, but also help to promote enterprise technology upgrading and managementinnovation and green development of the industry.
Environment: Environmental compliancemanagementWasteManagement
√√
? Regulator? Community
Improper waste disposal may cause environmental pollution, legal risks andreputational damage, while increasing the operating costs of enterprises.
Effective waste management can reduce environmental pollution, and long-termcompliance management can improve the reputation and image of enterprises.
Environment: e?cient use of resourcesEnergy Utilization√√√√√
? Regulator? Supplier? Client
Low energy e?ciency will increase the production cost of enterprises, and highenergy consumption may lead to risks when energy supply is tight.
By improving energy e?ciency, enterprises can reduce production costs, while helping toachieve energy conservation and emission reduction targets, improve corporate image.
Environment: Addressing climate changePollutantDischarge
√√
? Regulator? Community
Exceeding the emission standards will be punished by environmental protectionauthorities, and may cause dissatisfaction in surrounding communities and a?ectthe reputation of enterprises.
Strict control of pollutant discharge can help enterprises to establish a goodenvironmental image, but also help promote enterprise technology upgrading andmanagement innovation.
Environment: e?cient use of resourcesAddressingClimate Change
√√√√√
? Regulator? Supplier? Client
Physical and transition risks from extreme weather and natural disasters causedby climate change may lead to losses of own assets, increased costs due tosupply chain disruptions, etc.
We will actively respond to climate change, achieve long-term and stable energy supplythrough technological upgrading for energy conservation, achieve targets for energyconservation and emission reduction, and reduce production costs.
Environment: Addressing climate changeCircular Economy√√√√√
? Supplier? Client
The development of circular economy requires enterprises to invest a lot ofcapital and technology, which may be di?cult to see obvious benets in the shortterm.
Through the development of circular economy, enterprises can realize the e?cient use ofresources, continuously improve the recycling and recycling ratio of products, and reduceproduction costs.
Environment: circular economy and
green productsWater Resources
Utilization
√√√
? Community? Employee
Water shortage may a?ect the normal production and operation of enterprises,and water pollution may also a?ect enterprises.
By optimizing water use, companies can reduce the cost of water and contribute toachieving sustainable development goals.
Environment: e?cient use of resourcesEcosystem and
BiodiversityConservation
√√? Community
Corporate activities can cause damage to ecosystems and biodiversity, leadingto legal risks and reputational damage.
By strengthening the protection of ecosystems and biodiversity, we can improve thee?ciency of ecological protection and contribute to biodiversity conservation.
Environment: ecosystem and biodiversity
conservationInnovation-driven√√√√√
? Supplier? Client
Innovation requires enterprises to invest a lot of capital and manpower, whichmay be difficult to see obvious benefits in the short term. At the same time,innovation is accompanied by certain technical risks and market risks.
Through innovation drive, enterprises can enhance their competitiveness, realizetechnology upgrading and product innovation, and help enterprises to explore newmarkets and improve economic benets.
Social: R&D and innovationProduct andService Safetyand Quality
√√√√√
? Regulator? Supplier? Client
Product and service safety and quality problems can cause legal risks andreputational damage, as well as increase the operating costs of enterprises.
By improving the safety and quality of products and services, enterprises can enhance theirown image, but also help enterprises to establish a good brand reputation.
Social: Product and service assuranceEmployeeCompensationand Benets
√√√? Employee
Unreasonable employee compensation and welfare system may causeemployee dissatisfaction, affect the stability of the enterprise and productione?ciency.
By optimizing the compensation and welfare system of employees, enterprises canimprove employee satisfaction and loyalty, enhance corporate cohesion, and helpenterprises attract and retain talents.
Social: employee rights and growthData Security andCustomer PrivacyProtection
√√√√√
? Regulator? Supplier? Client
Irregular management of data and customer privacy will lead to data leakage,bring compliance risks, cause nes or lawsuits, and reduce customer trust.
By actively taking data protection measures, we can gain recognition and support from allsectors of society, so as to better utilize the value of data.
Social: Data security and privacy
protectionCustomer Rightsprotection
√√√√? Client
Poor protection of customer rights and interests may lead to a decline incustomer trust, a?ecting the company's brand reputation and market share.
By strengthening the protection of customer rights and interests, the Company canimprove customer satisfaction and loyalty, enhance brand competitiveness.
Social: Product and service assuranceEmployee Healthand Safety
√√√? Employee
Accidents and occupational diseases in the workplace can lead to healthdamage of employees, increase compensation costs for enterprises, and a?ectproduction e?ciency.
E?ective health and safety management can reduce the cost of operating a business byreducing downtime, medical costs and compensation expenses caused by accidents andwork-related injuries.
Social: employee rights and growth
with clear and accurate information to enhance trust and collaboration. In practice, the Company strengthens comprehensivemanagement of these issues, closely monitors potential risks, and ensures timely responses. At the same time, it activelycaptures development opportunities to drive continuous progress and achieve sustainable growth.
UpstreamOperationsPositiveNegativeDownstream
1718
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Issues
Impact Scope
Impactnature
A?ectedstakeholders
RiskOpportunityDisclosure locationSDGs
Legal protectionof employees'labor rights and
interests
√√√? Employee
If the Company fails to protect the rights and interests of employees according tolaw or fails to provide necessary labor protection, it may lead to an increase in labordisputes between employees and enterprises, which will a?ect the reputation andoperational e?ciency of enterprises.
By improving the labor rights protection mechanism, Farasis Energy can reduce the legalrisks and economic losses caused by labor disputes and maintain the stable operation ofthe enterprise.
Social: employee rights and growthemployeeappeals andcommunication
√√√? Employee
Poor communication or untimely complaint handling may lead to a decline inemployees' trust and satisfaction with the company, a?ecting team cohesion andwork e?ciency.
By establishing an effective appeal and communication mechanism, Farasis Energycan solve employees' problems in a timely manner and enhance their trust and sense ofbelonging to the company.
Social: employee rights and growthemployee trainingand capacitybuilding
√√√? Employee
If the training content cannot meet the actual work needs of employees, it maylead to poor training e?ect, waste resources, and a?ect employees' enthusiasmfor training.
Through training, the Company can better manage and develop human resources,improve employees' career development path, optimize talent structure.
Social: employee rights and growthResponsibleProcurement
√√√√? Supplier
Non-compliance by suppliers, such as the use of conict minerals and violationsof labor rights, could a?ect the reputation and supply chain stability of FarasisEnergy.
By implementing responsible sourcing, companies can improve supply chaintransparency, enhance their relationships with suppliers, and drive suppliers to improveESG performance, thereby ensuring a stable supply of raw materials and improvingquality.
Social: Building sustainable supply
chainsSupply ChainSecurity
√√√√? Supplier
Security loopholes in the supply chain may lead to raw material supplyinterruption, production delays, and even product delivery, increasing operationalrisks for enterprises.
Strengthening supply chain safety management can improve the stability and resilienceof supply chains, reduce the risk of production interruption caused by security issues, andimprove the overall operational e?ciency and market competitiveness of enterprises.
Social: Building sustainable supply
chainsEthics in Science√√√√
? Regulator? Community? Client
In the process of technological innovation, it may face scientic and technologicalethical issues such as data privacy protection and algorithmic bias, which willlead to legal risks and reputational losses.
Adhering to the principles of science and technology ethics will help enhance the trust ofconsumers and partners, promote the sustainable development of the company in the eldof science and technology, and contribute to the improvement of global AI governance.
Social: R&D and innovationEqual Treatmentof SMEs
√√? Supplier
In the cooperation with small and medium-sized enterprises, there may beproblems of poor communication and unequal cooperation, which a?ect the e?ectof cooperation and corporate reputation.
Treat small and medium-sized enterprises equally can expand the partner network ofFarasis Energy, promote innovation and resource sharing, and enhance the marketcompetitiveness and industry inuence of enterprises.
Social: Building sustainable supply
chainsrural Revitalization√√
? Regulator? Community
Rural revitalization projects may face problems such as large capital input andlong return cycle, which will increase the nancial pressure on enterprises.
Actively participating in rural revitalization will help the company enhance its sense ofcorporate social responsibility, enhance brand reputation, and may obtain governmentpolicy support and market opportunities.
Social contribution and rural revitalizationSocialContribution
√√
? Regulator? Community
Social welfare activities may face problems such as uneven resource allocationand insignicant e?ect, which will a?ect the social image of enterprises.
Through social contribution activities, the Company can enhance its corporate socialimage, enhance employee cohesion, and may obtain support and recognition from allsectors of society.
Social contribution and rural revitalizationESG Governance√√√
? Regulator? Supplier? Client
Inadequate ESG governance may lead to risks in environmental, social andcorporate governance aspects of enterprises, which will a?ect the sustainabledevelopment of enterprises.
Strengthening ESG governance will help Farasis Energy improve its corporategovernance level, enhance investor condence and promote sustainable development ofthe company.
ESG management: sustainable
governance structureTax Transparency√? Regulator
Tax opacity may lead to tax compliance risks for enterprises, increasing tax costsand legal risks.
Maintaining tax transparency can help companies improve their corporate reputation,reduce tax risks and enhance trust with tax authorities and investors.
Corporate governance: scientific and
standardized governanceAnti-unfairCompetition
√√√√√
? Shareholders
and investors
? Regulator? client
Unfair competition may damage the company's market position and reputation,increase legal risks, cause litigation or administrative penalties.
Adhering to anti-unfair competition is helpful to build a fair market environment forcompetition, maintain the trust relationship between the company and customers, andpromote the steady development of the company.
Corporate governance: adhere to
business ethicsAnti-commercialBribery and Anti-corruption
√√√√√
? Shareholdersand investors? Regulator
Business bribery and corruption may bring significant economic costs, legalconsequences and operational risks to the company.
Strengthening anti-commercial bribery and anti-corruption management will helpcompanies improve their compliance level, optimize internal management, and improvemanagement e?ciency and transparency.
Corporate governance: adhere to
business ethicsresponsibleInvestigation
√√√√
? Client? Community
Inadequate due diligence may lead to risks in investment, cooperation and otheraspects of the enterprise, which will a?ect the decision-making of the enterprise.
Through comprehensive due diligence, companies can reduce investment andcooperation risks, improve the quality of decision-making, and protect corporate interests.
Social: Building sustainable supply
chainsStakeholderCommunication
√√√√? All stakeholders
Poor communication with stakeholders can lead to misunderstandings andconflicts, which can affect the reputation of the enterprise and its cooperativerelationship.
Strengthening stakeholder communication will help companies improve transparency,enhance trust, promote cooperation and promote sustainable development.
ESG management: stakeholder
communication
UpstreamOperationsPositiveNegativeDownstream
1920
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Stakeholder Communication
Farasis Energy identies the groups involved in its operations and business activities based on industry characteristics,products and services, mission, and vision. The Company has selected seven key stakeholders: shareholders and investors,management, employees, government and regulatory agencies, customers, partners (suppliers, contractors, etc.), and
Stakeholders
StakeholderRepresentatives
Stakeholder
Concerns
Modes ofCommunicationand Engagement
Shareholders and Investors
Government and Regulatory Authorities
Management
? Investors? Potential Investors
? Company operationsand fundamentals? Strategic development
direction of thecompany? Financial performanceand market outlook? Corporate governanceand risk managementcapabilities
? Regular informationdisclosure? Shareholders' meetings? Investor roadshows andcommunication events? Communication via
telephone and email? On-site factory visits? Earnings brieng sessions? Investor relations activities
through new media
platforms
? Governments andRegulatory Agencies at AllLevels
? Shanghai Stock Exchange? China SecuritiesRegulatory Commission(CSRC)
? Legal and compliantoperations? Climate change responseand carbon neutrality? Contribution to localeconomic and industrialdevelopment
? Regular informationdisclosure? Participation inrelevant meetings? Engagement throughindustry associationsand organizations
? Board Members? Senior Management? Department Heads
? Strategy execution andmarket competitiveness? E?cient corporatemanagement structure? Protability
? Regular work reports? Management meetings? Thematic training sessions? Email communication? Corporate WeChat
EmployeesCustomersPartnersCommunity Partners
? General Employees
? Competitivecompensation andbenets? Comprehensivetraining system? Transparent careerdevelopmentpathways? Occupational healthand safety
? Party branches? Labor union? “Farasis Core” employeecommunication platform? Email communication? Corporate WeChat? Employee suggestionbox? “Farasis Home” o?cialWeChat account
? Domestic andInternationalCustomers
? Product quality anddelivery capability? Information securityand privacy protection? Green and low-carbonproducts? Battery energy densityand safety
? Pre-salescommunication? After-sales services? Routine communication(e.g. customer visits)? Third-party training? Customer audits
? Suppliers? Contractors? Business Partners
? Technological strengthand stable collaboration? Fair, just, open,and transparentprocurementenvironment? Technologyempowerment andindustry development? Market and salessupport
? Supplier training? On-site audits andcommunication? Project collaboration? Regular visits
? CommunitiesSurroundingCompany Facilities? Universities andResearch Institutions? ESG Rating Agencies? Media? Industry Associations,
etc.
? Contribution
to sustainablecommunitydevelopment? Sharing in the
company'sdevelopmentoutcomes
? Reducing
environmentalimpact
? Face-to-face
communication
? Public welfare activities? Complaint hotline? Media briengs Regular
communication andfeedback
? Project collaboration? Farasis Energy’s o?cial
website, WeChataccount, and otherpublic channels
community partners (media, industry organizations, social organizations). Farasis Energy actively establishes regularcommunication mechanisms with these stakeholders, striving to create greater value for all parties involved.
Corporate Governance
Spotlight: Party Building Leadership: Settinga New Course for High-Quality Development
23Scientic and Standardized Governance
Strengthening the Risk Defense LineUpholding Business Ethics
Farasis Energy adheres to the leadership of Party building, optimizes its corporate governance system, strengthens riskmanagement, enhances transparency, upholds business ethics, and ensures the stable operation of the enterprise.
Our Progress
? Number of Party member activities conducted: 26 times, covering107 participants? The company's tax credit rating is Grade A? Established a global product compliance system and issued theGlobal Product Compliance Guidelines? No major incidents involving suspected monopolies or unfaircompetition have occurred
Support SDGs
2324
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
The Company has solidified its discipline learning and education. It has guided and urged its subordinate Partybranches to strictly implement work requirements, formulate learning plans, and focus on studying the Regulationson Disciplinary Punishments of the Communist Party of China. The Company has carried out the "Learning PartyDiscipline and Guarding the Bottom Line" campaign, creating a positive atmosphere of learning and competition.Party committee members have given eight lectures on the front line of production in the workshop, organizedsix centralized study sessions, and held four thematic seminars. The subordinate Party branches have identied436 issues through self-inspection and comparison, formulated 451 corrective measures, and achieved a 100%rectication rate.The Company has deepened theoretical armament. It has thoroughly studied and implemented Xi Jinping Thoughton Socialism with Chinese Characteristics for a New Era, the spirit of the Third Plenary Session of the 20th CentralCommittee of the Party, and the important instructions of President Xi Jinping on social work. The company hasstrictly implemented the "rst agenda" system and the organizational life system, including "three meetings and oneclass," organizational life meetings, and democratic evaluation of Party members. The Party committee secretaryhas given ve Party classes, and the secretaries of each branch have given four Party classes, with more than tenexchanges and discussions organized for Party members.The Company has assisted in scientic decision-making. It has strictly implemented the responsibility system forideological work, incorporating ideological work into the company's important agenda. The company has convenedfour Party committee meetings to study more than ten major company matters, combining the construction of theParty committee's "three major and one important" decision-making system with the company's system construction.This has made the company's management decisions more scientic, standardized, and democratic.
Highlighting Political Leadership and ContinuouslyDeepening Ideological Soul-Casting
Party Committee members take the lead inpreaching in the workshop production line
Organize centralizedlearning
Special seminartimes
timestimes
2324
Spotlight: Party Building Leadership:
Setting a New Course for High-Quality DevelopmentFarasis Energy rmly upholds the Party's program and insists on innovative development under the leadershipof the Party. The company has deeply integrated Party building with corporate development, using Partybuilding as a bond to gather a team of loyal, professional, and innovative talents. It has established an e?cientand harmonious corporate culture, ensuring that the company maintains a leading position in fierce marketcompetition.
On July 1, 2024, the Company's Party Committee organized more than 50 Party members and positive applicantsfor Party membership to visit the Ganzhou Long March Theatre to watch the red situational musical and danceepic "The Long March Suite," conducting the "Remembering the Turbulent Years and Tempering the SteadfastInitial Aspiration" themed Party Day activity.
"Remembering the Turbulent Years and Tempering the SteadfastInitial Aspiration" Themed Party Day Activity
2526
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Since April 2024, the Company's Party Committee has been committed toadvancing the work of Party discipline learning and education. Under theguidance and supervision of the Party Committee, the subordinate Partybranches have strictly implemented the work requirements, formulated learningplans, and focused on studying the Regulations on Disciplinary Punishmentsof the Communist Party of China. They have also launched the "LearningParty Discipline and Guarding the Bottom Line" campaign to create a positiveatmosphere of learning and competition. The Party Committee members havegiven eight lectures on the production front line of the workshop, organized sixcentralized study sessions, and held four thematic seminars. A total of four articleson Party discipline learning and other Party building topics have been published.The subordinate Party branches have identified 436 problems through self-inspection and comparison, formulated 451 corrective measures, and achieved a100% rectication rate.
The total number of Partymember activities held isThe Party Committee members have given
lectures on the production frontline of the workshopHeld
thematic seminarsA total of
articles on Party discipline learning and other Party building topicshave been publishedOrganized
centralized study sessions
The company hasThe company has established
The total number of participants coveredby Party member activities is
The total number of Party membersis
The total number of new Party members added is
General Party BranchParty Branches
Taking Multiple Measures to Promote the Implementation ofParty Discipline Learning and Education
2526
Deepening Party Organization Construction. The Company has strengthened its three-tier party organization structure of“Party Committee + General Branch + Branches,” and implemented the “dual-entry and cross-appointment” system betweenthe party organization leadership and the management team. All members of the Party Committee are senior and middle-level managers of the company, achieving a 100% cross-appointment rate.Grasping Party Member Education and Management. In 2024, the Company recruited 3 new Party members, nurtured 17positive applicants for Party membership, and completed the transfer of organizational relationships for 25 migrant Partymembers. Throughout the year, 12 themed Party Day activities for Party members were organized.Focusing on Practical Matters and Solving Di?cult Problems. The Company actively implements the “Four Must-Talks andFive Must-Visits” initiative and has launched a hotline called “Seeking Help from Party Organizations.” A total of over 100suggestions and opinions have been received, with a 100% closed-loop implementation rate. The company has also built asta? home and a sta? library. Regular activities such as assisting employees in di?culty and the “Fuwa’s Journey to School”program are carried out. The establishment of “aid workshops” and a special fund for love has provided a total of 350,000CNY in love funds to 41 families.Actively Carrying Out Volunteer Service Activities. The Company has conducted 12 volunteer service activities throughoutthe year. It has visited places such as the Zhenai Nursing Home in Ganzhou, the Ganzhou Children’s Welfare Institute, andthe “Childhood Haven” in Xiejiacun, Sanjiang Township, to carry out the “‘Volunteer’ in Heart, ‘Willingness’ in Action” seriesof activities. For ve consecutive years, the company has provided nancial assistance to Sanjiang Township, with a totaldonation amounting to 157,400 CNY.
Exerting the Vanguard and Model Role of Party Members. The Company actively leverages the role of the “Provincial PartyRepresentative Studio,” establishing 38 “Party Member Vanguard Posts” and 6 “Party Member Responsibility Zones” inthe production workshops. Throughout the year, 125 key projects were advanced, 48 types of battery cell materials weredeveloped, technical solutions were provided for 25 product projects, and 15 technical invention patents were awarded.Continuously Strengthening Branches on Projects. In the Ganzhou New Energy Battery Project, where time is of theessence and e?ciency is crucial, the company’s Party Committee joined forces with the project team. Through forms suchas Party building thematic meetings and Party member assault teams, they provided a strong organizational guarantee forthe project’s progress, truly realizing the concept of “branches on projects.” In January, the rst production line was readyfor material input; in March, the production line was debugged; in May, the first SPS mass production trial product waslaunched. Currently, the project has the capability to deliver orders.Conducting the “Five Small” Activities. Led by the Party Committee, the company carried out the “Five Small” rationalizationsuggestion collection and a “reward-based essay” campaign. A total of over 3,238 suggestions were collected, with 75%being adopted and implemented.Actively Creating Party Building Brands. In 2024, the Company introduced the “Five-Line Working Method” of the FarasisEnergy Party Committee (organizational leadership on the front line, Party member dedication on the front line, talentdevelopment on the front line, role model establishment on the front line, and caring support on the front line). Theexperience and practices titled Farasis Energy: Playing the ‘Five-Line Score’ and Singing the ‘Duet’ of Party Building andDevelopment were published by Xinhua News Agency.
Strengthening the Organizational Foundation andConsolidating the Basis of Party Work
Focusing on Core Business Priorities and PromotingDeep Integration of Party Building and Production
2728
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Scientic and Standardized GovernanceFarasis Energy adheres to scientic governance principles and operates its Board of Directors, Board of Supervisors, andShareholders’ Meetings (the "three meetings") efficiently and transparently. The Company places great importance oninvestor relations by ensuring timely information disclosure and interactive communication, thereby safeguarding investorrights and promoting sustainable corporate development.
Farasis Energy strictly complies with theCompany Law of the People’s Republic of China, theSecurities Law of the People’sRepublic of China, the Code of Corporate Governance for Listed Companies, and theListing Rules of the STAR Market ofthe Shanghai Stock Exchange. In alignment with these requirements, the Company has established a comprehensive setof internal regulations, including the Articles of Association of Farasis Energy (Ganzhou) Co., Ltd., theRules of Procedurefor the Shareholders’ Meeting, the Rules of Procedure for the Board of Directors, and theRules of Procedure for theBoard of Supervisors. These frameworks form a well-dened and balanced corporate governance structure composed ofthe Shareholders’ Meeting, the Board of Directors, and the Management, ensuring clear responsibilities and checks andbalances. A fair and scientic decision-making mechanism has been put in place to ensure the e?ectiveness of corporategovernance decisions.The Board of Directors has established five specialized committees: the Audit Committee, the Strategy Committee, theNomination Committee, the Remuneration and Appraisal Committee, and the Technology and Product Committee. Eachcommittee performs its respective duties, fully contributing to sound decision-making and e?ective supervision.
Standardized Operation of the “Three Meetings”
In 2024, Farasis Energylawfully convened
In addition, the CompanyheldShareholders’Meetings
Board Meetings
NominationCommittee Meetings
Remuneration andAppraisal CommitteeMeeting
Special Meeting ofIndependent Directors
SupervisoryBoard Meetings
Audit CommitteeMeetings
Board of SupervisorsShareholders' MeetingBoard of Directors
Strategy CommitteeAudit Committee
Remuneration and Evaluation Committee
Nomination Committee
Technology and Product Committee
Corporate Governance Structure of Farasis Energy
The Company takes into full consideration factors such as industry experience, background, and gender in the compositionof its Board of Directors, aiming to ensure an optimized, diverse, and independent board structure.
In 2024, Farasis Energy actively organized training sessions for the Board of Directors and senior management, coveringtopics such as shareholder rights and compliance requirements for directors, supervisors, and executives. Legal expertswere invited to provide explanations and address specic questions. In addition, the Company participated in four o?inetraining sessions organized by the Jiangxi Listed Companies Association, which focused on financial supervision, auditregulation, annual report preparation guidelines, amendments to the Company Law, and reforms to the independent directorsystem.
Board Diversity and Independence
In 2024, the Board of Directors of Farasis Energy consisted of 11 members:
Board Members' Professional Background
Board Independence
Current members of the Board of Directors possess professional expertise across a wide range of elds,including batteries, chemical engineering, business administration, strategic management, law, finance,and investment. All members have extensive industry experience and the skills and competence required toe?ectively perform their duties.
Independent directors play a critical role in corporate governance by providing independent and objectiveopinions on major corporate matters at Shareholders’ Meetings, Board Meetings, and specializedcommittees. Among the 11 board members, 7 are non-independent directors and 4 are independentdirectors, accounting for 36.36% of the board. This composition signicantly enhances the professionalismand scientic rigor of the company’s decision-making processes.
By educational backgroundBy age groupBy independence
By professional background (among independent directors)
8 members hold doctoral degrees or above5 members are aged 40–49
4 independent directors
2 with industry-related backgrounds3 with risk management expertise2 with accounting or nancial
backgrounds
7 non-independent directors
4 are aged 50–592 are aged 60 or above
2 hold master'sdegrees
1 holds abachelor'sdegree
2930
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Farasis Energy strictly complies with the Company Law of the People’s Republic of China, theSecurities Law of the People’sRepublic of China, and the Guidelines for Investor Relations Management of Listed Companies.In accordance with theseregulations, the Company has formulated and implemented internal policies such as theInvestor Relations ManagementMeasures and the Information Disclosure Management Measuresto ensure e?ective investor relations management andpromote constructive interaction with investors.To protect the rights and interests of minority shareholders, the Company continuously optimizes its information disclosuremechanism, enhances transparency, and actively engages with small and medium investors through channels such as theinvestor service hotline and the SSE “E-Interaction” platform, ensuring their right to information is fully protected.
Strengthening Investor Relations Management
Key Investor Engagements in 2024
EarningsBriengs
? The Company holds earnings briengs for periodic reports, as well as investor communicationmeetings to provide comprehensive updates on nancial performance, operating results, andthe achievement of key business goals. These meetings also cover the company’s plans andoutlook for the coming year, and o?er Q&A sessions to address key investor concerns.? In 2024, the Company organized 7 earnings briengs.
On-SiteFactoryVisits
? The Company regularly organizes factory visits for investors, o?ering an in-depth understanding
of production and operations. Experts from the production team accompany and provide on-siteexplanations.? In 2024, the Company hosted 4 in-person site visits.
InvestorMeetings
? Farasis Energy actively participates in quarterly, mid-year, and annual strategy meetings hostedby major institutions, as well as reverse roadshows. These events allow the company to providetimely updates on business operations, R&D, strategic planning, and nancing activities. Thecompany’s visibility in the capital market continues to grow.
? In 2024, the Company held 9 public online investor meetings, engaging a total of 317
institutions.
New MediaPlatforms
? Farasis Energy regularly responds to investor inquiries via the SSE’s public “E-Interaction”platform, fostering effective communication among listed companies, investors, and othercapital market participants.? In 2024, the Company responded to 121 investor questions through the SSE E-Interactionplatform.
Enhancing Tax Transparency
Farasis Energy places great importance on tax compliance and has established a Tax Shared Services Center to centrallymanage tax a?airs across the company and its subsidiaries at all levels (parent, subsidiary, and sub-subsidiary). The center’sresponsibilities include standardizing tax-related policies and procedures, conducting tax forecasts and analytical reports,managing tax audits and risk responses, and executing tax planning. By centralizing tax data management, the Company isable to e?ectively monitor tax risks, streamline compliance processes, and leverage big data analytics to gain insights intotax trends and opportunities. For major tax planning initiatives, disputes, or non-routine business matters, the center followsa structured process of “policy research-communication with external rms-conrmation with tax authorities”, ensuring fullcompliance. All outcomes are reported to the leadership of the Finance Center.
Tax Compliance Governance
Structure and Functions of Farasis Energy Tax SSC
? The Group's tax-relatedsystemand processstandardization? The Group's tax forecastandanalysis report? Tax-related auditcoordinationand risk response? The Group's tax planning? Tax calculation for sites? Tax declaration for sites? Tax settlement for sites
? Invoice certication and issue? Export rebate management? Management of governmentsubsidy materials
? Collection of declaration materials from overseas relatedcompanies? Overseas tax policy research and planning? Response to audits of overseas related companies? Coordination on tax-related matters of overseas legal entities
? The Group's tax evaluationandself-inspection? The Group's related-partytransactionmanagement? Tax policy researchandtraining
? Deferred incomemanagement for sites? Maintenance of relationswithtax authorities for sites? Filing and declaration ofnontrade foreign exchangepayment? Tax-related investigation
onsite coordination
Tax ManagementTeam
Tax DeclarationTeam
Bill ManagementTeamTax SSC
Tax Management Department for Domestic Operations
Tax ManagementDepartment forInternational Operations
3132
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
To address key tax-related issues, Farasis Energy has established a set of internal control policies for tax compliance,including the Tax Payment Management Policy, Detailed Implementation Rules for Related-Party Transaction Management,
and Invoice and Receipt Management Policy. These internal frameworks ensure the company’s compliance in taxmanagement and provide a solid foundation for responding to tax audits and inspections.Farasis Energy places strong emphasis on tax compliance management, ensuring that all tax filings, tax payments,accounting treatments of tax matters, business decisions, and daily operations are fully aligned with tax regulations. Thisproactive approach helps prevent penalties and reputational damage resulting from non-compliance. Key measures include:
In 2024, the Company launched a tax digitalization system and an electronic invoice platform (Enterprise Invoice Folder),utilizing big data and related technologies for centralized nancial processing. These tools signicantly improved tax dataprocessing e?ciency and enhanced tax compliance analytics.
Tax Risk Control
Accuracy of Tax Filing
The Company monitors the accuracy rate of tax declarations by calculating the ratio of accurate lings tototal lings. This reects the robustness of tax compliance practices and helps mitigate risks of nes andlate payment interest due to ling errors.Timeliness of Tax Payment
The Company ensures that taxes are paid in full and on time within statutory deadlines. By comparing thenumber of on-time payments against the total number of payment obligations, the Company maintains astrong tax credit record.Compliance in Policy Applicatio
Periodic self-assessments are conducted to ensure that tax operations remain in alignment with the latesttax laws and regulations, supporting compliant implementation of tax policies.
Farasis Energy is committed to developing a professional and knowledgeable tax management team. Through continuoustax training, the Company ensures that team members stay updated on the latest tax policies, optimize complianceprocesses, and mitigate tax risks—maintaining a competitive compliance advantage in a dynamic market environment.At the same time, the Company enhances employees’ tax awareness and technical skills to ensure e?cient and accurateexecution in tax ling, planning, and risk management, adapting to the evolving tax landscape.In 2024, the Company actively organized both internal and external training programs to strengthen the professionalcapabilities of its nance and tax personnel.
Tax Capability Building
For each newly issued tax policy, we organize online study sessions anddiscussions, and provide e-learning courses for employees to study indepth.
We actively participate in training programs organized bytax authorities, including city-wide income tax and property/behavioral tax workshops, as well as various training eventshosted by accounting rms.
Internally
Externally
3132
3334
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Strengthening the Risk Defense Line
The Board of Directors and its Audit Committee bear primary responsibility for the establishment, improvement, and e?ectiveimplementation of the internal audit system, and for ensuring that disclosures related to internal audit are truthful, accurate,and complete. Within this framework, the Audit and Supervision Department operates under the direct leadership of theBoard and the Audit Committee, carrying out three core functions: internal auditing, internal control, and supervision. Itreports regularly to the Audit Committee.To ensure the effective execution of audit work, all internal departments, subsidiaries, and associated companies withsignicant inuence are required to fully cooperate with the Audit and Supervision Department, comply with relevant lawsand regulations, and provide the necessary conditions and support for audit operations. The department holds broadauthority, including but not limited to reviewing corporate plans, budgets, final accounts, ledgers, financial statements,contracts, and other business-related documents, meeting records, and software systems. It is also entitled to request anydocumentation, physical evidence, or information required for auditing, to conduct on-site inspections, asset verications, orinventory audits, and to interview relevant departments or personnel for workow testing.In cases where audit work is obstructed, disrupted, or when required information is withheld, the Audit and SupervisionDepartment, upon approval by the responsible leadership, has the right to take necessary interim measures and recommenddisciplinary actions or accountability measures against involved personnel, thereby upholding the authority and integrity ofthe audit process.
The Company adopts a systematic risk identication process to comprehensively assess internal and external risk factors.Various risks are categorized and compiled into a company-wide risk register.The Audit and Supervision Department conducts regular, comprehensive scans and assessments of both internaland external risks. It develops and continuously updates the company’s risk register, working closely with responsibledepartments to improve the risk control matrix. This ensures that the risk management model remains adaptive andcapable of accurately addressing a wide range of emerging risks. In high-risk business areas such as procurement, fundmanagement, and asset management, the Audit and Supervision Department formulates an annual audit plan with greatcare. Over the course of each audit cycle, multiple audit projects are carried out to ensure these high-risk areas are includedin routine annual audits. This proactive approach helps e?ectively prevent and mitigate potential risks, thereby safeguardingthe company’s stable operations.
Improving the Internal Control System
Enhancing Risk Management and Control
Risk TypeRisk DriverKey Risk Points
Internal Risks
Organizational andManagement Factors
Organizational structure, management model, asset management, business
processes
Human ResourcesFactors
Professional conduct of board members, executives and senior management;
employee competenceIndependent Innovation
Factors
R&D investment, technology input, application of information technologiesFinancial FactorsFinancial conditions, operating performance, cash owSafety andEnvironmental Factors
Operational safety, employee health, environmental protection
External Risks
Economic Factors
Economic trends, industrial policies, nancing environment, market competition,
resource supplyLegal FactorsLegal regulations, compliance requirementsSocial FactorsPublic security, cultural norms, social trust, education level, consumer behaviorNatural EnvironmentalFactors
Natural disasters, environmental conditionsTechnological FactorsTechnological progress, process improvement
Farasis Risks List
3536
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Upholding Business EthicsFarasis Energy is committed to lawful and compliant operations and has established a comprehensive legal compliancesystem to ensure that all business activities strictly adhere to national laws and regulations. Through compliance riskidentication and conformity assessments, the Company implements systematic risk management measures that e?ectivelyreinforce its risk defense mechanisms and safeguard the stability and sustainability of its operations.Comprehensive Compliance FrameworkFarasis Energy has established a scientic and e?cient compliance governance system to ensure that all aspects of itsoperations strictly adhere to applicable laws, regulations, and industry standards. The Legal and Compliance Departmentserves as the core unit responsible for overall compliance planning and oversight. In addition, a dedicated productcompliance management function has been established within the R&D Institute, focusing specically on product complianceoversight.The Company has issued theFarasis Energy Compliance Codeto regulate the conduct of the company and its employeesand to ensure lawful and compliant operations. The code denes behaviors such as corruption, fraud, collusion, coercion,obstruction, and sexual harassment. It sets out detailed compliance principles covering key areas including integrity andcompliance, fair competition, anti-bribery and anti-corruption, prohibition of insider trading, conict of interest avoidance,protection of trade secrets, and product control and quality assurance.To further institutionalize compliance management, the Company has introduced a range of internal policies, includingthe Compliance Obligations and Conformity Assessment Management Procedureand theRegister of Applicable Laws,Regulations, Standards,and Other Requirements, clearly dening the compliance responsibilities that support sustainableand healthy development.Moreover, in 2024, to ensure product compliance and e?ectively address market supervision risks, the Company establisheda global product compliance framework and released the Global Product Compliance Guidelines. These guidelines specifycompliance requirements and implementation procedures for restricted substances, durability, labeling and markings,conformity assessments, and CE markings. They also provide detailed process guidance and execution standards for allstages of product development, ensuring the e?ective integration of sustainability into the R&D process.
Governance
Product Lifecycle Management & Compliance
Advanced
Material
R&D
Pack R&DBMS R&D
Supply ChainManagementPack Material
ValidationPack
ProductTesting
QualityManagement
Farasis Energy Global Product Compliance System
Farasis Energy conducts annual reviews of major compliance risks and promptly identies early warning signals relatedto external risks. Compliance risk identication is primarily based on internal conformity assessments, employee feedbackand inquiries, and external customer requirements. At the early stage of the compliance evaluation, dedicated complianceliaisons collect and organize applicable laws, regulations, and standards related to their respective domains, identify relevantcompliance obligations, and compile theRegister of Legal, Regulatory, and Other Requirements.Compliance o?cers guideresponsible departments to submit supporting documentation generated in the course of fullling compliance obligations. Bycomparing the collected evidence against the identied obligations, compliance o?cers assess conformity, identify areas forimprovement, and issue corrective notices where necessary.According to the Compliance Obligation and Conformity Assessment Management Procedure,the Company organizesannual comprehensive compliance assessments across key areas including EHS, labor and employment, informationsecurity, intellectual property, and energy management. Relevant departments jointly identify applicable legal obligations,and corrective actions are continuously implemented for areas requiring improvement. In 2024, the Legal and ComplianceDepartment conducted another focused compliance screening in the EHS domain for high-relevance items.In terms of product compliance, the Company ensures continuous monitoring and effective control of risks throughoutproduct development by implementing stage-based risk management mechanisms and a product compliance releaseprocess within its new product development workow.
In 2024, Farasis Energy conducted response planning and simulation exercises to address product compliance risksunder the EU Battery Regulation and trade compliance risks related to the U.S. market. To mitigate potential impacts,the Company established a dedicated EU Battery Regulation Task Force, which delivered 24 compliance solutions androadmaps, and deeply integrated regulatory requirements into the early stages of product planning. At the same time, theCompany conducted traceability due diligence for products exported to the United States. These initiatives have e?ectivelystrengthened the stability of business operations and supported the company's long-term sustainable development.
Strategy and Risk Management
Farasis Energy Product Compliance Risk Management Process
Stage-Based Risk Identication and Closed-Loop Management
Full-Process Management of Product Compliance Release
Closed-Loop Validation and Continuous Optimization
? At key stages of new product development, conduct risk assessments and compliance releasereviews using tools such as DFMEA, PFMEA, and validation testing to identify potential risks in atimely manner.? Implement standardized sign-o? and review mechanisms to enable cross-functional collaborationand closed-loop management, ensuring issues are recorded, tracked, and resolved.
? Ensure that product compliance release is integrated into all stages of the new productdevelopment process to verify that products meet regulatory requirements and market entrystandards. Sustainability targets are also incorporated into the review criteria.
? Adopt a closed-loop management approach of "Identification – Assessment – Mitigation –Validation," and continuously improve the product development process through feedbackmechanisms, enhancing overall quality and sustainability management.
3738
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
In 2024, Farasis Energy actively promoted compliance training and awareness across the organization, embedding a cultureof compliance at all levels.Annual Progress and Goals
Compliance o?cers regularly collect the latest laws, regulations, standards, and o?cial policynotices, ltering and adapting content relevant to the company. The selected materials areedited into theCompliance Classroom – Policy Updatesseries and published via the OAsystem.
The Legal and Compliance Department actively encouraged internal learning and knowledge-sharing. Team members took turns presenting in weekly departmental meetings to deliverin-depth insights on legal and compliance topics. To consolidate and leverage accumulatedknowledge, the department also established a dedicated compliance knowledge base,providing an accessible platform for ongoing learning and reference.
A company-wide compliance education program was implemented to raise awareness ofcompliance knowledge among all employees. Tailored training content was designed basedon job responsibilities, di?erentiating between blue-collar and non-blue-collar sta?. In 2024,the Compliance Department conducted comprehensive training sessions focused on the
Farasis Energy Compliance Code. Training courses were customized by employee category,and participants were required to complete online learning and pass assessments to ensuretraining e?ectiveness.
In-Depth Legal Interpretation and Broad Practical Application
Weekly Policy Sharing and Establishment of a Compliance Knowledge Base
Company-Wide Compliance Education with Role-Based Training
Anti-Bribery and Anti-Corruption
Farasis Energy places high importance on fraud prevention and has established a comprehensive anti-fraud governancestructure with clearly defined responsibilities at all organizational levels. Relevant departments are required to providesupport to ensure the e?ectiveness of anti-fraud e?orts and to build a robust fraud prevention management system. Thecompany’s anti-fraud monitoring focuses on behaviors such as: unauthorized or illegal appropriation or misappropriationof corporate assets for personal gain; falsication, misleading statements, or material omissions in nancial reporting andinformation disclosure; abuse of authority by directors, supervisors, executives, and other senior management personnel;and collusion or fraudulent conduct involving related organizations or individuals. To e?ectively prevent fraudulent activities,Farasis Energy and its subsidiaries continuously enhance their internal control systems and regularly carry out self-assessments of internal controls.Farasis Energy has taken specific measures to prevent fraud and bribery by implementing theAnti-Fraud ManagementPolicy and the Disciplinary Accountability Regulations. These documents clearly define controls over key businessprocesses such as accounting and procurement, aiming to prevent misconduct while regulating the professional behavior ofall employees—particularly directors, supervisors, middle and senior management, and those in key positions. Any form offraudulent activity that undermines the company’s legitimate economic interests or seeks improper gains is strictly prohibited.Furthermore, the Company has issued the Corporate Gift Management Policy, which outlines detailed approval proceduresfor sensitive business activities such as the giving and receiving of gifts and hospitality. This ensures that gifts serveappropriate business purposes and that items such as gifts or cash received from external parties are properly managed andrecorded.For business areas with higher risk—such as procurement, fund management, and asset management—the Audit andSupervision Department formulates an annual audit plan to conduct routine audits each year. In parallel, the Companystrengthens internal risk awareness through regular communications. Initiatives include publishing holiday integrityreminders and employee disciplinary decisions via the OA system, as well as releasing monthly anti-corruption posters onthe corporate WeChat platform as part of employee risk management training. To raise anti-corruption awareness amongcontractors and suppliers, Farasis Energy conducts internal anti-corruption training and issues holiday no-gift notices toexternal partners. Led by the Supply Chain Department, the Company also promotes clean and fair business practices byimplementing anti-corruption agreements, supplier integrity due diligence, and incorporating anti-bribery performance intopartnership prioritization mechanisms—advocating for a fair, transparent, and win–win commercial environment.
Anti-Fraud Governance Framework
3940
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Farasis Energy places great emphasis on strengthening its internal supervision mechanisms and is committed to building asystematic and standardized whistleblowing management system. To maximize the role of whistleblowing in risk preventionand control, the Company has developed a comprehensive framework that covers policy formulation, process optimization,and rights protection. The Company has issued and publicly disclosed the Whistleblowing and Whistleblower ProtectionPolicy, which clearly outlines the reporting channels, scope of cases, handling procedures, incentive mechanisms, andprotective measures.A standardized whistleblowing process has been established, covering all stages from case acceptance and registration,preliminary verication, formal investigation, to result feedback and archival. Each step is governed by clear operationalguidelines and time requirements, ensuring that all reports are addressed in a timely and fair manner, while also providingwhistleblowers with a transparent feedback mechanism. The Company places particular importance on the e?ciency andquality of case handling, requiring that fact-checking be completed within a dened timeframe and that whistleblowers beinformed of the results, ensuring that every case is responded to and resolved.In terms of whistleblower protection, the Company strictly enforces condentiality rules. The identity of the whistleblower,the content of the report, and details of the investigation are all kept strictly condential to prevent any form of informationleakage. All acts of retaliation are strictly prohibited and regarded as serious violations. Perpetrators of retaliation are subjectto disciplinary actions—including education, warning, or dismissal—depending on the severity of the o?ense, and may beheld legally accountable in cases of serious consequences. The same level of protection also extends to investigators,witnesses, and their immediate family members, ensuring that all parties involved in the whistleblowing and investigationprocess can fulll their responsibilities in a safe and secure environment.To encourage employees to actively participate in corporate governance, Farasis Energy has established a dedicatedincentive fund. Employees who report serious violations, o?er valuable compliance recommendations, or help the companyavoid signicant losses are eligible for rewards.The Company has opened multiple online and offline reporting channels to ensure smooth and unobstructed access.Any department, employee, or business partner who becomes aware of actual or suspected violations of the company’scompliance policies, relevant laws and regulations, or other applicable requirements—regardless of the severity—may reportthe matter, either anonymously or under their real name, to the Compliance Department or through the following channels:
Whistleblowing and Whistleblower Protection
Farasis Energy Whistleblowing Channels
Report directly to audit personnel or the General Manager of the Audit and Supervision Department.O?ce location: Audit and Supervision Department, 5th Floor (West Wing), Administration Building,Ganzhou Site.Call the designated whistleblowing hotline.Hotline: +86 797-7329850Send an email to the designated whistleblowing address.Email: fnlianjie@farasisenergy.com.cn
Submit a letter to the whistleblowing mailboxes located at the Ganzhou and Zhenjiang site facilities.
In-personreportingTelephonereportingEmail reporting
Writtenreporting
Fair Competition and Anti-Unfair Practices
Farasis Energy strictly complies with theAnti-Monopoly Law of the People's Republic of China, the Anti-Unfair Competition Law of the People's Republic of China, theCivil Code of the People's Republic ofChina, as well as relevant international standards. The Company has implemented theAnti-MonopolyCompliance Management Measuresand is committed to building a business environment based on theprinciples of fairness, impartiality, and win–win cooperation.In customer relationship management, the Company effectively identifies and objectively evaluatescustomer requirements, firmly opposing any form of improper competitive behavior. When acceptingcustomer orders, Farasis Energy follows the Order Review and Control Procedure, accuratelypresenting its actual commercial capabilities and strictly refraining from providing any false information,thereby ensuring integrity in all business dealings.
In 2024, the Company reported no major incidents related to suspectedmonopolistic practices or unfair competition.
Environment
In the context of global green transformation, Farasis Energy actively addresses the challenges of climate change byformulating strategic plans, implementing risk and opportunity management, and carrying out low-carbon practices topromote energy transition and sustainable development.Climate Change ResponseEnvironmental ComplianceManagementE?cient Resource Utilization
Circular Economy and GreenProductsEcosystem and BiodiversityProtection
Our Progress? Disclosed carbon management information on the CDP website,
achieving a B rating for climate change.? Generated 37,035,604.40 kWh of photovoltaic power.? Achieved a 100% participation rate in employee environmental
training.? Reduced annual water consumption by 4.55% compared to the
previous year.? Fully advanced the application and management of circular
packaging, with a circular packaging usage rate of 99.69% at the
Ganzhou New Energy Site.
Support SDGs
4344
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Response to Climate ChangeIn the context of global green transformation, changes in energy structure and responses to climate change havebecome key topics for corporate development. As a pioneer in the clean energy sector, Farasis Energy is committed toexploring innovative energy management paths and deeply integrating green development concepts into the entire valuechain operations. The Company continuously optimizes its energy structure and builds an "energy-carbon integration"management model, implementing carbon emission control measures with a three-in-one approach: "eliminate, reduce,and offset." This promotes the deep integration of energy transformation and industrial upgrading. At the same time, inreference to theIFRS S2 Climate-related Disclosures and the Shanghai Stock Exchange'sGuide No.4 for Self-RegulatorySupervision on Listed Companies of the SSE — Compilation of Sustainable Development Reports, the Company’s climatechange framework covers governance, strategy, risk and opportunity management, and metrics and targets. Farasis Energycontinuously improves and discloses its climate change governance system, contributing to the achievement of greendevelopment and carbon neutrality goals.
The Company has established an energy and climate change governance structure centered around the "General Manager- ESG Committee - Sustainable Development Department," facilitating e?cient collaboration across three levels: decision-making, management, and execution. This structure ensures the orderly advancement of energy and climate changemanagement and practices.
Through ISO 14064 carbon emission system training, carbon emission management personnel in each department haveacquired initial carbon emission accounting capabilities, enabling them to e?ectively identify, collect, and analyze carbonemission data. This has laid the foundation for the scientic construction of the carbon emission management framework.In practice, relevant personnel ensure the smooth implementation and continuous optimization of the carbon emissionmanagement system through e?cient execution and collaboration, providing a solid foundation for the company’s emissionreduction goals.The Company is in the process of establishing a climate management incentive mechanism for the ESG executive team,combining both short-term and long-term incentives to drive continuous improvement in the energy and climate domain.
The Company has fully integrated climate risk control into its operational processes. By conducting in-depth analyses ofboth physical and transition risks, and considering the nature, likelihood, and potential impact of these risks, the Companyaccurately identies and e?ectively categorizes various climate-related risks.
Governance
GeneralManager
ESGCommittee
SustainableDevelopmentDepartment
StrategyRisk and Opportunity Analysis
As the highest decision-making level in ESG governance, the General Manager isresponsible for ESG sustainable oversight, strategic goal-setting, risk and opportunityidentication and response planning, and reviewing information disclosure.As the dedicated ESG governance management body, the ESG Committee is responsiblefor identifying and assessing ESG risks and opportunities, advancing the integration of ESGstrategy with the company’s overall strategy, setting goals and plans, establishing policyframeworks and assessment mechanisms, and reporting to the General Manager withrecommendations.As the execution level, the Sustainable Development Department is fully responsible forplanning and implementing carbon management and climate strategy goals. It coordinatesand supervises the implementation of management decisions across various functionaldepartments and production sites, ensuring the e?ective execution of energy and climatechange action plans throughout the company. Additionally, the department is specificallyresponsible for executing and promoting energy and carbon management-related tasks.
Physical RisksRiskType
Risk Description
Financial
Impact
ImpactTimeline
Likelihood of
Impact
A?ectedValue Chain
Risk Mitigation Measures
AcuteRisks
Extreme weatherevents, such astyphoons and oods,may lead to assetimpairment, supplychain disruptions,and other systemicrisks.
Increased
costs ↑Revenuedecrease ↓
Shortterm
Medium
OwnoperationsUpstreamvalue chain
The Company has implemented early warningsystems and emergency plans to reduce theimpact of extreme weather.Transition RisksRiskType
Risk Description
Financial
Impact
ImpactTimeline
Likelihood of
Impact
A?ectedValue Chain
Risk Mitigation Measures
Policy
andLegalRisks
The batterymanufacturingindustry may beincluded in carbonmarkets.
Increasedcosts ↑Revenuedecrease ↓
Shortterm
Medium
Ownoperations
? Conduct company-level carbon emissionaudits and engage third-party organizationsfor data calculation and verication.? Promote energy e?ciency improvementsand equipment upgrades to optimize energye?ciency and reduce carbon emissions.? Increase the use of renewable energythrough a combination of self-builtdistributed energy systems and purchasedgreen electricity.
PolicyandLegalRisks
The EU's new batterylaw introduces newrequirements forthe full lifecycle ofbatteries sold inEurope, potentiallysubjecting relatedproducts toregulatory oversight.
Increased
costs ↑Revenuedecrease ↓
Shortterm
High
OwnoperationsUpstreamvalue chain
? Establish an EU battery regulation
compliance team to ensure regulatoryrequirements are incorporated into productplanning and development processes.Additionally, set up a "Product LifecycleManagement and Compliance Department"to oversee regulatory execution andenhance the company’s regulatoryresponse capabilities.
? Promote and complete T?V S?D EU
battery regulation conformity certication forkey battery pack products to ensure marketaccess requirements are met in the EU.
? Invest in product carbon footprint
accounting, engaging third-party agenciesfor data calculations and verications.
? Invest in emission reduction measures,
improve energy e?ciency, adopt cleantechnologies, and introduce low-carbonalternatives to optimize the supply chain.
? Coordinate with suppliers to comply with
relevant policies.
Farasis Energy and Climate Change Governance Structure
4546
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
The Company places great importance on the strategic opportunities presented by climate change. Through systematicidentication and evaluation of its potential long-term value, the Company integrates climate opportunities deeply into itsstrategic decision-making system, injecting new momentum into business innovation and sustainable development.
The Company has developed comprehensive strategies for addressing both climate risks and opportunities. By implementingprevention measures and mitigation strategies across financial, operational, and reputational domains, the Companye?ectively reduces the negative impacts of climate risks on its operations and enhances its climate resilience. Additionally,based on a thorough evaluation of climate opportunities, the Company has dened its sustainable development strategy,increasing investment and innovation in related elds to strengthen its future market competitiveness.
The Company continuously improves energy e?ciency and reduces energy consumption through systematic and intelligentapproaches. Using Manufacturing Execution Systems (MES) and Energy Management Systems (EMS), the Companyhas achieved real-time monitoring and energy consumption analysis across production facilities, optimizing energy usageefficiency. Moreover, it has established a comprehensive energy management mechanism, including monthly operationmonitoring reports, energy-saving audits, energy performance standards, and daily monitoring and improvement systems forproduction lines.
Risk and Opportunity Response
Smart Upgrades Enhance Energy Efficiency; Green Transformation AchievesBreakthroughs
Transition RisksRiskType
Risk Description
Financial
Impact
ImpactTimeline
Likelihood ofImpact
A?ectedValue Chain
Risk Mitigation Measures
ReputationRisk
With growingconsumer demandfor low-carbonproducts, failure tofulll environmentalresponsibilities oraddress climaterisks may lead toreputational damageand a decline inmarket share.
Revenuedecrease ↓
Mediumterm
Medium
Ownoperations
Continue increasing R&D investment, focusingon key material technology innovation in thebattery industry, including core areas such ascathode and anode materials. Additionally,actively advance diversied decarbonizationpractices and build a green low-carbontechnology system.
Opportunity
Type
Opportunity Description
FinancialImpact
ImpactTimeline
Likelihoodof Impact
A?ectedValue Chain
Opportunity ManagementMeasures
New Energy
Market
As one of the largest automotivebattery manufacturers in China,the Company will benet from thesignicant growth in demand forelectric vehicle batteries.
Increasedrevenue ↑
Short termHigh
Downstreamvalue chain
Continuously increaseR&D investment,systematically conductmarket research,prototype design, andtesting verication, with afocus on new technologydevelopment and processupgrades.New EnergyMarket
The EU's acceleration of cleanenergy transformation is drivingthe expansion of the energystorage market, leading to agrowth in demand for lithiumbatteries.
Increasedrevenue ↑
Mediumterm
Medium
Downstreamvalue chain
Upgrade equipment andinnovate technology toestablish a sound qualitycontrol system, enhancingproduct performance andquality levels.Low-CarbonTransitionInvestment
Investment in photovoltaic powergeneration can reduce electricity-related carbon emissions and lowercosts for carbon credit purchases(e.g., CCER, green certicates).
Decreasedcosts ↓
Short termLow
Ownoperations
Promote the constructionof smart factories,continue investing in solarphotovoltaic projects,optimize the energystructure, and increase theproportion of renewableenergy use.E?cientEnergyManagement
Upgrading equipment andimproving process energy e?ciencycan reduce energy procurementand usage costs.
Decreasedcosts ↓
Short termLow
Ownoperations
Optimize equipment andproduction processes,drive energy-savingtechnology upgrades (e.g.,dehumidier modication,pressure grid connection,etc.), reduce energyconsumption, and improveenergy e?ciency.
Implementing staggered production strategies to adjust coating processes, middle-section ovens, and washingtimes to reduce power losses during peak and high-peak periods.Measures such as standby heating in coating ovens, intelligent control of assembly line motors, and humiditycontrol on rollers to lower equipment energy consumption.Optimizing production parameters to reduce baking temperature and time of electrode sheets, thus reducingenergy consumption.Rebuilding the dehumidier condensate recovery system to use treated water in the cooling tower, improvingwater resource utilization.
Implementing an interconnected air compressor pipeline network to centralize air supply loads, reducing thenumber of high-energy-consuming air compressors in operation and minimizing frequent unloading, signicantlylowering power consumption.Utilizing multi-stage cooling of steam condensate as makeup water for the cooling tower of the central airconditioning system in the power station, reducing tap water consumption for evaporation.Optimizing the operation of the 5.5 kW dust collector in the stacking-integrated machine by replacing manualcontrol with PLC automation. The dust collector now automatically shuts down after 10 minutes of inactivity andrestarts when the equipment is powered on, reducing energy consumption.
Ganzhou Site
Zhenjiang Site
2024 Energy-saving Technological Upgrades
4748
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
The Company continues to promote low-carbon culture through systematic, ongoing education and incentive mechanisms,greatly increasing employee awareness and involvement in energy-saving practices. In 2024, the Company launched aseries of themed activities such as "Earth Hour," "Energy Saving Week," and the "Low-Carbon Marathon," fostering a cultureof green awareness and embedding it into its operations.
Co-building a Low-carbon Culture, Mobilizing Everyone for a Green Journey
In 2024, the company’s union and Sustainability Department jointly organized the "Carbon Reduction Marathon:
Racing Towards Sustainability." Employees participated in the marathon wearing matching blue uniforms andconveying green and low-carbon concepts through concrete actions, symbolizing the company’s commitment tolow-carbon principles. This event not only strengthened employees’ identication with the green culture but alsoinjected vitality into the company’s green corporate culture, further advancing its sustainability initiatives.
Energy-saving transformation of the cold water system to optimize operation efficiency and reducerefrigeration energy consumption, improving overall energy e?ciency.Improving the power distribution system and establishing a new energy management system to enhance thene-tuning of electricity management and reduce power loss.Implementing exhaust heat recovery in tunnel furnaces to reduce energy waste by reusing excess heat.Environmental modications to reduce dehumidier running time and lower energy consumption.
Constructing a thermal energy cascade utilization system using steam condensate and tap water heatexchange to provide stable hot water to dormitories and workshops, while also recycling cooled condensatefor the cooling tower replenishment.Utilizing smart water storage and cooling technology, operating chillers during low electricity price periodsat night to store cooling energy, which can then be released during peak periods to balance grid loads andreduce electricity costs.
Ganzhou New Energy Site
Guangzhou Site
"Carbon Reduction Marathon: Racing TowardsSustainability" - 2024 Ganzhou Marathon Event
4748
4950
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
The Company identies key risk management factors, departments, and stakeholders, categorizing and assessing risksand opportunities to determine their impact on company goals. Various functional teams and senior leadership continuouslyreview the business environment, operational status, and climate-related risks and opportunities, integrating climate riskcontrol and opportunities into operational processes. Risk and opportunity assessment meetings are convened as needed,and sustainable development plans, along with short-, medium-, and long-term goals for each department and businessunit, are established and executed across departments and sites to ensure the e?ective implementation of the sustainabilitystrategy. The Company also continuously improves its carbon management system, focusing on ve business pillars: carbonaccounting, carbon planning, carbon reduction, carbon o?setting, and carbon disclosure, to enhance the professionalismand operational e?ciency of its energy and climate change management.
In the future, Farasis Energy will continue to increase the proportion of clean energy, expand the scale of photovoltaic powergeneration system construction, and further improve the utilization rate of renewable energy.
In terms of system construction, the Company has completed the ISO 50001 Energy Management System certificationfor the group and the Ganzhou Site. It is also actively promoting the construction of rooftop photovoltaic systems at theGanzhou New Energy Site and the Guangzhou Site, providing comprehensive technical support. In addition, the Companyhas coordinated the procurement and trading of green electricity and renewable energy certicates across all sites, with aplan to achieve a target of 100% premium-free green electricity transactions at the Ganzhou Site and 60% premium-freegreen electricity transactions at the Ganzhou New Energy Site by 2025.Regarding carbon neutrality practice, the Ganzhou Site achieved carbon neutrality for greenhouse gas emissions at theorganizational operational level in 2023, in compliance with the ISO 14068 standard, e?ectively becoming a "zero-carbonfactory."
Risk and Opportunity ManagementMetrics and Targets
ISO 14064 standard for organizational carbon footprint calculationISO 14067 standard for product carbon footprintEU Battery Regulation and PEFCR product carbon footprint accounting
Low-carbon projects using ISO 50001 methods for energy-saving and emissionsreductionSupply chain decarbonization through sustainable supply chain projects
Aligning carbon reduction targets with SBTi (Science Based Targets initiative)Developing carbon-neutral management plans according to ISO 14068
Zero-carbon projects using distributed photovoltaic systems + PPA green electricity +green certicatesNegative-carbon projects with GS+VCS+NBSGHG protocol for production carbon neutralityISO 14068 carbon-neutral “Zero-Carbon Factory”CDP projectsESG ratings and empowerment
CarbonAccounting
CarbonPlanning
CarbonReduction
CarbonOffsetting
CarbonDisclosure
Greenhouse Gas CategoriesUnit202220232024
Total emissions of Scope 1greenhouse gas
tCO2e6,280.484,328.283,679.09Total emissions of Scope 2greenhouse gas (location-based)
tCO2e418,505.90367,329.06285,403.39Total emissions of Scope 2greenhouse gas (market-based)
tCO2e348,171.00246,221.50265,853.66Total emissions of Scope 2greenhouse gas (market-based)
tCO2e874,815.60987,510.47841,536.69Total energy consumptiontce102,88293,98782,222.28
Energy consumption intensity
tce/CNY 1 million ofoperating income
8.885.727.04PV power generationkWh21,040,600.0037,129,897.4037,035,604.40
Sustainable Carbon Management Framework
The scope of data statistics for 2024 includes the company's two major Sites: Zhenjiang Site and Ganzhou Site.
According to theGeneral Rules for the Calculation of Comprehensive Energy Consumption(GB/T 2589-2020), the standard coal conversion coe?cientfor electricity is 0.1229 kgce/kWh, for steam is 0.0946 tce/ton, and for natural gas is 1.2143 kgce/m?.
5152
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Environmental Compliance Management
Farasis Energy consistently adheres to its environmental policy: "Implement scientic management, provide green energy,protect the Earth's environment, and create a better life together." The Company strives to optimize its environmentalmanagement system continuously through scientic management, technological innovation, and full employee participation,reducing the impact of operations on the environment and contributing to environmental protection.
The Company strictly follows domestic and international environmental laws and regulations and has formulated andpublished itsEnvironmental Management Declaration, which outlines the company’s environmental management structure.It has developed stringent procedures and target management plans for various aspects, including system certication andmanagement, energy resource management, "three wastes" management, and green product development. All processesare rigorously monitored.An Environmental Management Committee, composed of senior management, is the highest decision-making body onenvironmental management within the company. It is responsible for formulating the company's environmental managementsystem, including the environmental management policy, goals, identification and assessment of environmental factors,control standards for environmental operations, stakeholder demand management, emergency response, monitoring metrics,performance evaluation (compliance evaluation, internal audits, management reviews), and continuous improvement toenhance environmental management levels. The EHS Department is responsible for promoting the implementation ofvarious environmental protection systems and driving the completion and improvement of environmental targets.
Farasis Energy has established theEnvironmental Factor Identication and Evaluation Management Procedure, requiringthe identication of environmental factors and hazard sources to be conducted at least once a year. The LEC (Likelihood,Exposure, Consequence) job hazard analysis method is adopted to assess the risks associated with hazard sources,with results categorized as high-risk, medium-risk, and low-risk. For low-risk hazard sources, management measures areformulated. For high-risk hazard sources, corrective and preventive measures are implemented, and early warning devices(such as smoke detectors, temperature sensors, combustible gas alarms, oxygen alarms, etc.) are installed. Additionally,the Company registers and evaluates identied environmental factors, compiling a list and management plan for signicantenvironmental factors to control environmental risks.In 2024, the Company successfully completed environmental impact assessments for two newly commissioned Sites toensure that the projects meet environmental protection requirements.
Environmental Compliance Governance
Environmental Impact Assessment
The Company attaches great importance to environmental training and emergency management. It incorporatesenvironmental regulations and waste management requirements into the new employee onboarding training system toensure that all employees understand basic environmental management knowledge and skills, achieving full coverageof environmental-related training. The Company has established a comprehensive safety and fire emergency responsemechanism, regularly conducting emergency drills to ensure that employees are familiar with emergency procedures andimprove their emergency response capabilities. Through these drills, employees are able to assist emergency teams inquickly initiating rescue operations during emergencies, e?ectively reducing accident risks and ensuring that incidents areaddressed promptly and appropriately.
Environmental Emergency Management
On November 9, 2024, the 33rd "National Fire Safety Day" took place under the theme "Fire Safety for All, LifeAbove All." From November 13 to 27, the Zhenjiang Site held a series of activities including fire equipmentdemonstrations, trivia quizzes, knowledge competitions, emergency response evaluations, and fire safety skillcontests. All departments actively participated, creating an energetic atmosphere that significantly enhancedemployees' safety awareness and emergency response skills.
In 2024, the Ganzhou New Energy Site completed a comprehensive linked test of re safety facilities (includinghydrants, sprinklers, fire alarms, etc.), achieving a 100% completion rate. Additionally, several safety andemergency modifications were made to the formation workshop, such as the addition of emergency backuplighting, integration of warehouse alarm systems and infrared monitoring alarms into the central control room, andthe optimization of re alarm signal zones for stacker machines. These upgrades further enhanced the re safetystandards.In October 2024, the Site completed the expert review of its second environmental impact assessmentreport and is expected to receive approval in 2025. The Company will continue to follow up on theapproval progress to ensure the Site's operations comply with environmental protection requirements.During the construction phase, the Site completed the Environmental Impact Report for the "AnnualProduction of 30GWh Power Battery Production Site" project and received approval from the relevantauthorities. In the future, the Site will conduct regular environmental monitoring based on the actualproduction and operation status, develop and implement an environmental protection managementplan, and take optimization measures to minimize environmental impact.
Ganzhou NewEnergy SiteGuangzhouSite
Currently, the Ganzhou Site and Zhenjiang Site have obtained ISO 14001 Environmental Management SystemCertication. In 2024, no administrative penalties were issued to the company’s Sites for environmental issues.
In 2024, the company's environmental training participation rate reached
100%
, significantly improvingemployees' environmental awareness and compliance capabilities.
Zhenjiang Site- Fire Safety Awareness and EmergencySkills
Ganzhou New Energy Site - Fire Safety Facility Upgradeand Emergency Modications
5354
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
E?cient Resource Utilization
Faresis is committed to the e?cient use of resources. Through systematic management measures, the Company aims toimprove the management e?ciency of water resources, waste, and pollutants, driving maximum resource utilization andminimizing environmental impact.Water Resource Utilization
The Company has developed and implemented the Water, Gas and Noise Pollution Management ProceduresandEnergyResource Management Procedures, taking a series of e?ective measures in water resource management and utilization toensure safe and environmentally compliant water use. All operational sites source water from municipal supplies. In 2024,the Company did not involve water-related impacts caused by water extraction, consumption, or discharge, nor did it havewater-related impacts directly caused by business relationships through operations, products, or services.
In 2024, the Company adopted multiple measures, including institutional development, facility upgrades, metering andmonitoring, and resource recovery to enhance water resource utilization efficiency and reduce waste. Specific actionsincluded:
Water Resource Management
E?cient Water Use and Conservation
On March 22, 2024, the Zhenjiang Site used "World Water Day" as an opportunity to organize a series of waterconservation publicity and training activities. Employees expressed their support and participation by signingwater conservation commitment letters. They also watched water conservation promotional videos to deepentheir understanding of global water resource status and the urgency of water conservation. A special trainingsession explained water-saving technologies and the implementation plans at the Site, helping employees learnpractical water conservation methods and e?ectively enhancing their awareness.
From April to July 2024, the Zhenjiang Site launched the "Energy Saving and Cost Reduction Battle," e?ectivelyaddressing the "leaks and drips" phenomenon in the factory through joint self-inspections and irregular randomchecks by energy-saving grid members. During the period, 162 energy waste issues were identied throughjoint inspections, with a 100% rectication rate, reducing energy waste by approximately CNY 314,000. Gridmembers also identied and corrected 559 issues through routine self-inspections, reducing energy waste byaround CNY 1.24 million.
Water Conservation Activity for WorldWater Day at Zhenjiang Site
Zhenjiang Site Energy-Saving and Cost Reduction:
Precise Management of "Leaks and Drips"
Installing outdoor rainwater filtration devices to prevent blockages in pipes, conducting regular inspections andmaintenance of drainage systems to ensure stormwater and sewage are separated and prevent mixing.Rainwater Management and Optimization
Conducting a comprehensive inspection of the water supply network, installing metering water meters based on wateruse properties, and setting up water pressure alarms at main meters to achieve real-time monitoring and statisticalanalysis of water usage, providing a scientic basis for precise management.Pipe Network Inspection and Monitoring
Replacing electric heating with steam heat, adding condensate water recovery devices to recycle condensate andsteam, reducing resource waste. Additionally, condensate water generated by dehumidiers around the factory wasrecovered, with about 6m? per day used for cooling towers, signicantly improving water resource recycling rates.Steam Optimization and Condensate Water Recycling
Conducting comprehensive inspections and replacing old water pipes, faucets, and toilets, installing delayed closurefaucets, water-saving toilets, and other e?cient water-saving devices to signicantly reduce water wastage.
Facility Upgrades and Renovations
Clearly dening water conservation responsibilities across departments, establishing regular inspection and evaluationmechanisms to ensure the e?ectiveness of water-saving measures.Responsibility Assignment and Evaluation
In 2024, the company’s water consumption decreased by
4.55%
compared to the previous year, showingsignicant water conservation results.Water ResourceCategories
Unit202220232024Water consumptionTonne2,388,865.82,032,662.751,647,060.00Water consumption
intensity
Tonne/CNY 1 millionof operating income
206.15123.67141.01Total consumption ofrecycled water
Tonne737,501.8611,234.64,841,138.00
5556
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Waste Disposal
The Company follows the Waste Management Proceduresand adheres strictly to the principle of classied collection andcompliant disposal to ensure waste treatment meets national regulations. Waste management is divided into general wasteand hazardous waste, and the Company uses standardized, systematic management measures to achieve e?cient wastehandling and resource utilization.
The Company places great emphasis on pollutant management and is committed to achieving zero emissions of pollutants.The Company has developed and implemented an emergency response plan for environmental pollution accidents andorganized review meetings with external experts to ensure the operability and e?ectiveness of the plan. Each site conductsregular emergency drills to enhance the ability to respond to sudden environmental events, minimizing and avoidingenvironmental pollution risks.In response to wastewater, waste gas, noise, and waste generated during production operations, the Company hasestablished comprehensive management systems and conducts regular monitoring according to relevant standards andregulations to ensure that wastewater, waste gas, and noise comply with emission standards and that waste is disposedof in accordance with regulations. Additionally, the Company has implemented an environmental self-monitoring plan,commissioning qualied third-party monitoring agencies to regularly conduct wastewater, waste gas, and noise monitoring,ensuring the accuracy and reliability of monitoring data.
Waste ManagementPollutant Emission
For general waste, the Company employs classied collection and standardized management. Non-hazardous wasteis stored in dedicated waste warehouses before being handled by qualified waste disposal companies. Recyclablewaste is processed by authorized recyclers for reuse. Additionally, the Company incorporates waste classificationmanagement into employee induction training and conducts regular training to raise awareness of waste reduction andclassication.For hazardous waste, the Company strictly follows national laws and regulations to ensure the entire process from
generation to disposal is compliant and transparent. The Company implements a hazardous waste declarationmanagement plan and links it to the environmental protection platform for full traceability. Hazardous waste is 100%entrusted to qualied disposal units for professional handling, with storage adhering to national hazardous waste listsand clear safety labels. New specialized solid waste storage areas meet environmental protection requirements suchas anti-seepage, anti-rain, and anti-wind. The Company also implements emergency response plans for hazardouschemical leaks, equips emergency supplies, and conducts regular drills to ensure safe and compliant storage anddisposal of hazardous waste.In 2024, the Ganzhou New Energy Site and Guangzhou Site actively promoted the standardized construction of solid wastemanagement. Solid and hazardous wastes are classied and labeled according to the national solid waste/hazardous wastecatalog, e?ectively preventing pollution to the surrounding environment. At the same time, disposal agreements have beensigned with professionally qualied organizations to ensure that the solid waste disposal process fully complies with legaland regulatory requirements, achieving legal, compliant, and environmentally friendly solid waste management from sourceto end.
*The scope of data statistics for 2024 includes the company's three major Sites: Zhenjiang Site, Ganzhou Site, and GanzhouNew Energy Site. The statistical scope of hazardous waste is uniformly dened as the transfer volume from the three majorsites.
IndicatorUnit202220232024
Total general wasteTonne10,370.087,922.699,296.40
General waste
intensity
Tonne/CNY 1 millionof operating income
0.890.480.80Total hazardouswaste
Tonne500.70715.91440.21Hazardous waste
intensity
Tonne/CNY 1 millionof operating income
0.040.040.04
In the production process, the wastewater generated mainly includes domestic sewage and production wastewater. Toreduce the environmental impact of wastewater, the Company has adopted a series of strict management and technicalmeasures. By optimizing wastewater treatment processes, the Company ensures that the treated wastewater meetsemission standards and complies with relevant environmental requirements such as the Pollutant Discharge Standard forBattery Industry.
The battery production process generates a large amount of wastewater. The Company has equipped all major siteswith professional wastewater treatment facilities for the centralized treatment of production and domestic wastewater.Wastewater treatment plants operate 24/7 to ensure efficient treatment of all wastewater. By utilizing variousadvanced processes, the Company achieves high pollutant removal e?ciency.
The Company has established a complete wastewater quality assessment system, combining third-party and self-monitoringto regularly assess wastewater quality.
Wastewater Management
Wastewater Treatment Facilities
Wastewater Quality Assessment
Third-party Monitoring: Each month, a qualified third-party testing agency samples and tests wastewater dischargepoints for key indicators like COD and heavy metals. The Company adjusts treatment processes based on the testresults to ensure stable, compliant discharge quality.Self-monitoring: The Company implements an Annual Self-monitoring Plan, conducting regular monitoring of rainwaterand wastewater discharge points and uploading data to the national self-monitoring platform to ensure transparency andpublic access to the data.
5758
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
The Company continues to strengthen its waste gas management measures to ensure that the waste gas produced duringproduction is treated by high-e?ciency facilities and complies with emission standards. Regular monitoring is also strictlyenforced.
Meanwhile, the Company conducts regular monitoring of exhaust gas emission points to ensure compliance withenvironmental standards, and promptly optimizes relevant control measures based on monitoring results.
*The data statistics scope for 2024 includes the company's Zhenjiang Site and Ganzhou Site.*The estimation method for total exhaust gas emissions is determined based on the actual production conditions of each site. For the Zhenjiang Site,emissions are calculated according to the emission rates and operational hours specied in the monitoring reports. The Ganzhou Site estimates itsemissions using the exible packaging exhaust gas coe?cient of 81.7 m?/kWh from the 384 Battery Manufacturing Industry Coe?cient Manual.*In 2024, no boilers were used at the sites. Emissions of nitrogen oxides (NOx), particulate matter (PM), and sulfur oxides (SOx) were primarilygenerated from cell nail penetration testing at the Zhenjiang Testing Center. During testing, battery cell combustion produces characteristic combustionpollutants.
The Company has adopted soundproong measures, optimized layouts, and enhanced maintenance to e?ectively reducenoise impact on the surrounding environment and employees.In terms of factory layout, most of the production equipment is placed on the lower oors to minimize the impact of noiseon the upper levels and surrounding environment. The equipment inside the workshop is arranged in accordance with theproduction process ow to ensure smooth production and is concentrated in a way that reduces the noise di?usion range.For equipment that generates higher levels of noise, the workshop adopts a separate layout strategy and implementssoundproof measures such as acoustic panels and enclosures to further reduce noise transmission. Additionally, throughoptimizing the equipment layout, adding soundproof barriers, and enhancing equipment maintenance, comprehensivemeasures are taken to further reduce noise impact.In 2024, the Company’s noise emissions complied with relevant standards.
Waste Gas Management
Noise Management
At the Ganzhou New Energy Site, a wastewater treatment station was built to centrally treat the factory'swastewater. Advanced technologies like coagulation-occulation, Fenton oxidation, air otation, and UASB wereused for pre-treatment to e?ciently degrade COD, nickel, and other pollutants. This was followed by biologicaltreatment combined with MBR (Membrane Bioreactor) technology to further enhance wastewater treatmentperformance and ensure stable and reliable e?uent quality that meets discharge standards.
Green Practice for Wastewater Treatment at New Site
The Company uses multiple treatment methods to e?ectively remove heavy metals, especially cobalt and nickel from thewastewater produced during the production of ternary cathode materials.
*The scope of data statistics for 2024 includes the company's three major Sites: Zhenjiang Site, Ganzhou Site, and Ganzhou New Energy Site.*The estimation method for total wastewater discharge is selected based on the actual production conditions of each site. For the Zhenjiang Site, theactual wastewater discharge volume is calculated by applying the ratio of actual production capacity to designed capacity to the water balance data inthe environmental impact assessment report. The Ganzhou Site estimates industrial wastewater discharge using the industrial wastewater coe?cientof 0.007 m?/kWh from the "384 Battery Manufacturing Industry Coe?cient Manual," while domestic wastewater is estimated based on the per capitawastewater discharge in Jiangxi Province from the "Domestic Pollution Source Emission Coe?cient Manual." As the Ganzhou New Energy facility hasonly been in operation for a short time, its wastewater discharge data only includes December 2024.
Gravity Sedimentation: Heavy metal particles in wastewater are naturally settled by gravity for initial separation.PAC and PAM Flocculation: By adding PAC and PAM, heavy metal ions in wastewater form ocs that are easier toseparate and lter.
In terms of dust management, the Company primarily focuses on controlling dust generated in the mixing processarea by adopting negative-pressure feeding technology and wo mize emissions. At the Zhenjiang Site, exhaust gastreatment utilizes a lter cartridge dust removal system, which ensures that dust emission concentrations meet nationalenvironmental standards through high-e?ciency ltration and low-energy-consumption design.
For air pollution prevention, the Company uses a "condensation + three-stage water spray" recovery process for NMP(N-methyl-2-pyrrolidone) waste gas, maintaining treatment e?ciency above 98%. Other waste gases are handled withworkshop ventilation facilities to ensure emissions meet environmental protection standards.
Heavy Metal Removal in Water Quality
IndicatorUnit2024Total waste gas emissions10,000 m
48,311.90Waste gas emission intensity10,000 m
/CNY 1 million of operating income4.14Volatile organic compounds (VOCs)
emissions
Kilogram6,350.40Nitrogen oxides (NOx) emissionsKilogram24.60Particulate matters (PM) emissionsKilogram26.20Sulfur oxides (SOx) emissionsKilogram186.60
WastewaterCategories
Unit202220232024
Total wastewaterdischarge
Tonne776,113279,046237,879Wastewaterdischarge intensity
Tonne/CNY 1 millionof operating income
66.9816.9820.37
5960
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Circular Economy and Green Products
Faresis Energy continues to make breakthroughs in resource efficiency and environmental innovation. The Companyfocuses on optimizing the entire value chain, from packaging to products, by deepening green practices and innovativeapplications. This approach balances economic growth with environmental responsibility, injecting momentum into asustainable future.Sustainable Packaging MaterialsEach of the company’s production sites has implemented a series of targeted measures tailored to its characteristics,ensuring the recyclability and circular use of packaging materials
Prioritizes recyclable packaging solutions in material management. Steel frames are used for domestic transportation ofbattery packs, achieving 100% recycling. Non-express packaging of battery modules uses recyclable plastic boxes, witha 100% recycling rate. Lithium-ion battery cells are packed in recyclable blister boxes, with a 90% recycling rate. The sitehas established a robust monitoring mechanism to assess and track the recycling of packaging materials.
Ganzhou Site
Implements the Finished Product Packaging Development and Change Management Regulations and the Raw MaterialPackaging Development and Change Management Regulations, ensuring packaging design meets environmentalstandards. Recyclable and biodegradable materials are prioritized. The site follows the Fixed Asset Management andRecyclable Packaging Management Process to conduct full-process recycling and monitoring of packaging materials. In2024, a total of 200 material racks were repaired and reused.
Zhenjiang Site
Establishes clear goals for the use and management of packaging materials, planning the PACK finished productpackaging scheme from the early stages of the project. Priority is given to the use of reusable iron material racks fornished product shipments, and the use of general material racks is optimized based on project needs. The Site hasset up dedicated recycling lines and areas to ensure e?cient recycling and management of raw material packaging.Additionally, a collaborative working group has been established with customers, the supply chain logistics department,and sales personnel to ensure the timely supply and turnover of nished product racks, achieving full-process recyclingof packaging materials.
Ganzhou New Energy Site
Collaborates with the procurement department to establish a management ledger for recyclable packaging materials andoperational rules. Packaging wooden boxes (including box bodies, copper foil, aluminum foil, aluminum-plastic lms, etc.)are included in the recycling and reuse system. The battery cell nished product packaging and PACK nished productpackaging adopt environmentally friendly designs and all internal turnover containers (such as pallets, trays, and boxes)are recyclable, ensuring e?cient utilization of packaging materials and resource circulation.
Guangzhou Site
Going forward, the Company plans to optimize packaging material management, expand the use of circular packaging, andenhance the environmental properties and recycling rates of packaging design. For high-output projects, idle packagingmaterials from production reductions or shutdowns will be prioritized for reuse by modifying them to increase their recyclingrate. The Company will also strengthen collaborations with suppliers and customers to develop more recyclable packagingsolutions and optimize design to improve recycling cycles and utilization rates.
In 2024, the Ganzhou New Energy Site strictly implemented documents such as the Raw Material LogisticsPackaging Standards and Specications and the Turnover Tools Management and Regulations. The site managedand standardized the handover process of supplier recyclable packaging materials through a detailed inventorysystem to ensure their e?ective use and management.The overall usage ratio of recyclable packaging materials from suppliers was 20%, with a usage ratio of 40% frombattery cell raw material suppliers. The site used five types of recyclable packaging materials (material racks,turnover boxes, surrounding boxes, blister boxes, and plastic pallets) on the production line according to thecharacteristics of di?erent materials. For the PACK nished product project, design reviews were conducted fromthe project stage, and iron special material racks were used for nished product shipment, realizing circular use.In packaging design, both generality and customer needs were considered. For example, the Ruilan project usedJizhi material racks, while the Jiangling GSE project used modied Jiangling B30 material racks.
IndicatorUnitGanzhou SiteZhenjiang Site
Ganzhou New
Energy SiteTotal Packaging
Usage
个33,808137,697975RecyclablePackaging Usage
个13,98226,895972RecyclablePackaging UsageRatio
%41.3619.5399.69
New Site Actively Promotes the Application andManagement of Recyclable Packaging Materials
6162
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Green Product Innovation CreationThe Company is committed to advancing green product design and technological innovation to drive sustainabledevelopment. It focuses on three key areas to promote the research and application of green products, achieving signicantprogress in green technology innovation.In the field of battery material recycling technology research, the Company is dedicated to developing high-efficiencybattery recycling technologies aimed at achieving high material recovery rates, long cycle life, and stability. The Companyhas reached industry-leading levels in battery material recovery rates, material recycling lifespan, and stability. Relevanttechnological achievements include direct lithium battery recycling technology and several core patents, which have beenauthorized in both China and the United States.In the area of hazardous substance control, the Company has established a comprehensive green product managementsystem that strictly adheres to international environmental directives such as the EU Battery Directive, RoHS, REACH, andPOPs. It actively practices the Extended Producer Responsibility (EPR) system and implements full life-cycle managementacross procurement, product design, manufacturing, and recycling to ensure products meet international environmentalstandards. Additionally, the Company updates and trains sta? on the EUBattery Compliance Guidelinesevery six months tokeep up with new regulations on restricted substances.
Ecosystem and BiodiversityProtectionFaresis Energy adheres strictly to laws and regulations such asthe Environmental Impact AssessmentLaw of the People's Republic of China, Opinions on Further Strengthening Biodiversity Protection,Soil Pollution Prevention and Control Law of the People's Republic of China, and GroundwaterManagement Regulations. The Company ensures that its operational activities do not negatively impactthe surrounding ecosystem and biodiversity, with no leased or operational sites located in protected orbiodiversity-rich areas.In 2024, the Company did not experience any signicant events a?ecting biodiversity.
6262
Society
Faresis Energy upholds innovation-driven development, builds high-end R&D platforms, continuously overcomestechnological bottlenecks, optimizes process ows, accelerates digital transformation, safeguards employee rights, activelygives back to society, supports rural revitalization, and promotes the sustainable development of the industry.
Our progress? 135 new patents granted, with a total of 429 authorized patents.? No product recalls occurred.? Customer satisfaction rate reached 96.55%, with a complaint
resolution rate of 90.38%.? Successfully obtained TISAX certification and achieved NationalLevel 3 Information Security Protection.? 18 suppliers underwent mineral supply chain due diligence audits,with zero suppliers classied as high ESG risk.? The company’s labor union or collective bargaining agreementscover 100% of employees.? Safety training coverage reached 100%, including all suppliers,
and 100% of workplaces underwent employee health and safety
risk assessments.
Support SDGs
R&D and Innovation DevelopmentProduct and Service AssuranceSpotlight: Lean Production. the Path toSystematic Transformation and Optimization
Information Security and Privacy ProtectionBuilding a Sustainable Supply ChainEmployee Rights and DevelopmentSocial Contribution and Rural Revitalization
6566
About This ReportMessage from the ChairmanAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
R&D and Innovation Development
Farasis Energy adheres to an innovation-driven development strategy and is committed to advancing research andinnovation in cutting-edge fields. Guided by market demand, the Company continuously increases investment in R&D,deepens its technological reserves, and builds strong core competitiveness through ongoing technological innovation andproduct upgrades.
Farasis Energy has established a comprehensive R&D system that spans from advanced technology research to productdevelopment and industrialization. This system is built through collaborative innovation among the company’s AdvancedTechnology Research Institute, R&D Institute, and Engineering Institute.
The Company actively integrates high-quality global resources, driving innovation and leading with technology to build aworld-class global R&D team.
Innovation-Driven DevelopmentBuilding a High-Level R&D System
Focuses on research, innovation, and transformation in cutting-edge battery technology, striving to drivebreakthrough advancements in the eld. Key responsibilities include the development of new materials, batterycell systems and roadmaps, simulation and digital battery development, battery solutions based on datascience and articial intelligence, as well as battery recycling and secondary utilization technologies.
Advanced Technology Research Institute
Focuses on product development and innovation, ensuring the company continuously delivers competitivebattery products that meet market demands. Its responsibilities include formulating and executing productdevelopment strategies, managing in-house and customer projects, designing, developing, and validatingnew products, providing technical support, and expanding market reach. Additionally, the R&D institute isresponsible for enhancing product performance, safety, and reliability, integrating compliance requirementsand lifecycle management into new product planning and development, optimizing cost-e?ective solutions, anddriving continuous innovation and improvement through industry trend analysis and competitor research.
R&D Institute
Focuses on the industrialization and commercialization of battery products, aiming to enhancing processtechnology, equipment capabilities, and manufacturing techniques. Its key responsibilities include process andequipment planning and development, pre-research and integration of advanced processes and equipment,industrial implementation of new production sites and technical team establishment, as well as evaluationand approval of process and equipment changes in mass production facilities. Additionally, the engineeringinstitute drives the iteration and upgrade of manufacturing technologies, facilitates technology sharing andpromotion across facilities, and supports the establishment of overseas production capacity, comprehensivelystrengthening the company’s industrialization capabilities.
Engineering Institute
The Company’s R&Dinvestment reached
Its R&D team comprises
of the total headcount
including
representingIn 2024
billion yuanof its operating revenue
employeesPhD holders or above
5.824.98%
1,046
21.75%
Faresis Energy R&D System
R&D System
R&D InstituteEngineering InstituteAdvanced Technology
Research Institute
Advanced Materials Research Center
Advanced Simulation LaboratoryBig Data Platform R&D Center
Battery Recycling Technology Center
Product Management DepartmentProject Management DepartmentCell Development Department
Simulation Department
Product Testing Department
Prototyping CenterEnergy Storage Technology CenterR&D Branch Institutes
Cell Process and Equipment PlanningDepartment
System Process and Equipment Planning
Department
Manufacturing Technology CenterElectrical and BMS Development DepartmentPACK Development Department
Chief Engineer’s O?ceR&D OperationsManagement Department
6768
About This ReportMessage from the ChairmanAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Farasis Energy regards technological innovation as the core engine of its development. Through breakthroughs acrossmultiple technical fields and continuous internal process innovation, the Company accelerates product upgrades andindustrial transformation, laying a solid foundation for both technological leadership and market expansion.
With strong R&D capabilities and forward-looking strategies, Farasis Energy has achieved signicant breakthroughs in full-lifecycle technologies, shaping new directions for the industry.In 2024, the Company made notable progress in both technological breakthroughs and industrialization within the powerbattery sector. A series of innovative outcomes have enhanced product performance and expanded market applications—providing efficient, reliable, and eco-friendly energy solutions for electric vehicles, electric motorcycles, and other keysectors.
Farasis Energy is committed to the research and application of green technologies. Through initiatives such as directlithium battery recycling, ultra-high-speed stacking process development, and life cycle assessment (LCA) data modeling,the Company supports the industry’s transition toward low-carbon and circular development. These efforts also ensurecompliance with the EU Battery Regulation (Regulation EU 2023/1542) and alignment with global sustainability goals.Farasis Energy is focused on developing e?cient and environmentally friendly battery recycling solutions to achievehigh material recovery rates, long recycling life, and high stability of recovered materials. The Company has reachedindustry-leading levels in terms of material recovery efficiency, cycling performance, and stability. Supported by aportfolio of domestic and international patents, Farasis Energy has built a solid foundation in green technology andprovides strong technical support for closed-loop battery recycling systems.LCA is integrated into the early stages of product development to meet the carbon footprint disclosure requirementsof the EU Battery Regulation. By simulating diverse use scenarios and analyzing key stages—such as raw materialselection, manufacturing, recycling, and disposal—the Company is able to precisely identify and mitigate the potentialenvironmental impacts of its products. This forward-looking green design approach not only reduces the environmentalfootprint of products but also provides robust data and insights to support the company’s long-term sustainabilitystrategy.
Comprehensive Innovation Driving Competitive Advantage
Green Technology R&D Supporting Sustainable Development
SPS: High-Packed Lithium Iron Phosphate Battery Solution: Entered mass productionand delivery; first vehicle model successfully launched. Offers high performance, lowcost, and strong material compatibility. Excels in range, charging efficiency, and coste?ectiveness.High-Energy, High-Power, Fast-Charging LFP Battery: The Company is currentlydeveloping high-performance lithium iron phosphate (LFP) battery cells with an energydensity exceeding 195Wh/kg and 6C fast-charging capability, further enhancing batteryenergy density and charging e?ciency.Standardized E-Motorcycle Battery: Designed for high-speed e-motorcycle market.
Integrated “battery-swapping cabinet-cloud platform” solution with high energy density,high power, fast swapping, safety, and compatibility across models.
Ultra-High-Speed Stacking Process Development: Successfully developed ultra-high-speed tab-forming technology. Achieves over 2× production speed and 0.1 mm thicknessprecision. Reduces equipment investment and energy use by more than 30%.
New Site Deployment: SPS-related production capacity established in Guangzhou andGanzhou. New sites enhance production process e?ciency and reduce product costs,supporting the company’s high-quality development.
FrontierTechnology
Reserves
ProductManufacturing
Process
Industrialization& Production
Capacity
Farasis Energy continuously explores advanced process technologies to enhance e?ciency and product quality. Throughinnovations such as high-e?ciency cathode slurry preparation, laser welding equipment development, optimization of end-of-line inspection, development of serial formation equipment, and reduced self-discharge standing time, the Company hassignicantly improved its production e?ciency and product performance.
Internal Process Innovation Enhancing Production Efficiencyand Competitiveness
The high-speed continuous slurry process shortens traditional mixing times from 4–10 hours to just minutes—oreven seconds—reducing equipment costs by over 50%, and laying a solid foundation for new plant construction andprocess R&D.
Through testing process optimization, the Company achieved 5% sampling inspection in mass production whilereducing process energy use by 95%. Serial formation equipment reduces equipment costs by approximately 20%and improves cell capacity consistency.
Laser welding technology addresses issues of breakage and cracking during full-width welding of large tabs. Itreduces equipment cost by 88%, improves e?ciency by 500%, and is compatible with all product series.
By shortening standing time, the Company signicantly reduced pallet and storage space requirements, therebylowering inventory costs and capital investment in equipment.
High-E?ciency Cathode Slurry & Twin-Screw Anode Slurry Preparation:
End-of-Line Optimization & Serial Formation Equipment:
Laser Welding Equipment Development:
Reduction of Self-Discharge Standing Time:
Direct Lithium Battery Recycling Technology:
Life Cycle Assessment (LCA) Data Modeling:
Lifecycle Innovation Leading Industry Progress
6970
About This ReportMessage from the ChairmanAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Farasis Energy is comprehensively advancing its digital transformation, driving deep reforms across nine major businessareas: marketing, R&D, procurement, integrated supply, quality, human resources, nance, digitalization, and enterprisemanagement. Through systematic planning and roadmap design, the Company is progressively building an end-to-enddigital ecosystem that supports innovation, operational e?ciency, and sustainable growth.In 2024, the Company made significant strides in digital infrastructure. Core systems such as the Quality ManagementSystem (QMS), Supplier Relationship Management (SRM), Enterprise Asset Management (EAM), and an enterprise-level data lake were successfully launched, providing strong technical support for quality, supply chain, asset, and datagovernance. Meanwhile, systems such as the Product Management System (PMS), Product Lifecycle Management (PLM),and Enterprise Human Resources (EHR) are undergoing continuous iteration and upgrade, aiming to enable full-processintegration of product lifecycle management and enhance HR e?ciency and cross-functional collaboration.At the same time, two new smart factories—located in the Ganzhou Site and the Guangzho Site—have completed full digitaldeployment, covering data centers, intelligent workshops, information systems, digital operations, and cybersecurity. Bothsites are currently scaling up mass production, leveraging digital systems to ensure high-e?ciency and stable support foroperations. Through the deep integration of smart workshops and information systems, Farasis Energy has achieved real-time monitoring and optimization of its production processes, significantly improving operational efficiency and productquality.
Looking ahead, the Company will continue to focus on data governance and AI applications, further unlocking the valueof data, exploring practical use cases for digitalization, and driving deeper integration between digital technologies andbusiness needs.
Digital Transformation Empowering Business Growth
In 2024, the Ganzhou New Energy Site and the Guangzhou Site advanced their digital transformation byimplementing four core systems—ERP, MES, WMS, and EAM—centered around a Manufacturing OperationsManagement (MOM) architecture to enhance operations, production, warehouse logistics, and equipmentmanagement.
New Production Sites Actively Building E?cient DigitalManufacturing and Management Systems
Farasis Energy has built a comprehensive intellectual property (IP) management system that deeply integrates technologicalinnovation with IP protection. The Company adopts an R&D-centered organizational model, embedding patent work into theentire R&D lifecycle to ensure that IP management and innovation progress in parallel. During the research and developmentprocess, an institutionalized internal motivation mechanism encourages teams to “proactively search for patents,” enablingfull-process IP protection—from concept to commercialization. To further stimulate innovation, the Company o?ers industry-leading patent incentives, actively encouraging R&D personnel to participate in patent applications.To improve IP management e?ciency, the Company continues to optimize the end-to-end patent management process,signicantly enhancing timeliness. By introducing a professional IP talent pipeline and strengthening collaboration betweenIP and R&D teams, the Company ensures that patent portfolio planning is closely aligned with technological innovation.Farasis Energy also places great emphasis on digital IP tools, using digital platforms to streamline patent search, ling, andmaintenance, thereby providing strong support for innovation.In terms of IP risk prevention and control, the Company takes a multi-dimensional approach. It strengthens monitoringof market trends and competitors to stay ahead of potential risks, while also establishing robust internal supervisionmechanisms to ensure legal and regulatory compliance. Through IP awareness campaigns and training, the Companyenhances employees’ legal and risk awareness. Furthermore, Farasis Energy collaborates with local IP protection centers,professional institutions, and industry associations to conduct IP seminars and build a multi-stakeholder protectionnetwork. These e?orts position the company as an industry leader in IP protection and inject long-term momentum into thesustainable development of the sector.
Farasis Energy regards adherence to technology ethics as a fundamental principle throughout its R&D and daily operations.The Company strictly complies with relevant laws, regulations, and industry standards to ensure that all technologicalactivities are conducted within a sound compliance framework. With a strong sense of responsibility, the Company activelymonitors potential ethical issues arising from technological advancement and strives to strike a balance between innovationand social responsibility.In 2024, no major incidents related to technology ethics were reported.
Intellectual Property Protection
Technology Ethics
the Company ledobtained bringing the total to
new patent applicationsnew patent grantspatent applicationsgranted patents to date236136721429
7172
About This ReportMessage from the ChairmanAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Product and Service AssuranceFarasis Energy is committed to multi-dimensional quality management, delivering high-quality products while activelyresponding to diverse customer needs through excellent service. The Company aims to build long-term customer trust, drivesustainable growth, and maximize brand value.
Farasis Energy regards quality management as the lifeline of its development. By implementing strict R&D quality controls,efficient supplier management, and digital empowerment, the Company has built a comprehensive quality managementsystem that covers the entire product lifecycle, providing strong assurance for long-term development in both domestic andinternational markets.In 2024, the Company upgraded its quality management system. From a group-wide perspective, the Quality Center clariedthe division of quality responsibilities between headquarters and production Sites. The headquarters is responsible forcore areas such as supplier quality, project quality, quality systems, and customer quality, while quality functions related tomanufacturing have been delegated to each site. These are centrally coordinated by the Quality Control Department of theQuality Center. Additionally, for the newly established Ganzhou New Energy Site and Guangzhou Site, a dedicated QualityPlanning Department was created to oversee Site-specific quality development. This structural adjustment significantlyreduced functional overlap and management conicts, enhancing overall e?ciency and laying a solid foundation for qualityassurance in the company’s group-wide operations.
Total Quality Management
In 2024, Farasis Energy continued to strengthen quality control during the early stages of R&D, focusing on upstreamprocess optimization and proactive quality assurance. Key initiatives included:
Enhancing R&D Quality Management – Controlling Quality from the Source
In 2024, Farasis Energy implemented systematic improvements in supplier quality management, establishing an e?cientand collaborative supplier management system. Key initiatives included:
In 2024, Farasis Energy enhanced its quality control through digital systems, promoting standardized and group-wide qualitymanagement. Key initiatives included:
Pursuing Supplier Quality Excellence to Build a Collaborative and Win-Win Ecosystem
Driving Intelligent Quality Management Through Digital Empowerment
The focus of the R&D quality team was shifted forward—from the trial production stageto the RFQ (Request for Quotation) and RFI (Request for Information) stages—toidentify potential mass production risks early. This ensured that design considerationsfully accounted for manufacturing variations and end-user environments, therebyimproving the industrialization and manufacturability of new products.
The supplier quality team was involved early in the sourcing process, participating inthe selection of critical components and setting clear entry criteria. This improved bothsourcing e?ciency and accuracy.
Through the “Document Standardization” project, Level 3 and 4 operational documentsacross all production sites were unified. Generalization of documents reached 89%,signicantly improving group-level quality control e?ciency.Six core quality gates were implemented throughout the product developmentprocess to rigorously control stage transitions. These checkpoints ensure that risksare comprehensively assessed and mitigated, preventing quality compromises due toproject schedule pressures.
Supplier assessment criteria were optimized to place greater emphasis on massproduction readiness and industrialization capabilities, ensuring smooth projectexecution in later stages.
Leveraging the MES system, the Company achieved full-process product traceability—from raw materials to battery modules—ensuring precise tracking at every stage andgreatly enhancing problem diagnosis and resolution e?ciency.A closed-loop management process was established to leverage lessons learnedfrom past projects, significantly improving new product development efficiency.Simultaneously, a structured mechanism for risk identication, assessment, and controlwas put in place to ensure consistent R&D quality and continuous improvement.
For suppliers with limited capabilities, Farasis Energy deployed professional teams toprovide on-site guidance, helping them establish standardized product developmentand quality control systems, thereby fostering coordinated growth across the valuechain.
By implementing risk assessments and downgrade processing, Farasis Energyoptimized resource utilization and effectively prevented non-conforming productsfrom reaching the market. The Company also strictly adhered to recall managementregulations to ensure product quality and safety.
ResourceOptimization
and EarlyInvolvement
UpstreamQualityIntegration in
Sourcing
Group-WideDocumentStandardizationQuality
Gate RiskManagement
UpgradedSupplierEvaluationStandards
End-to-EndTraceability
Experience-BasedClosed-LoopManagement
SupplierDevelopmentand Support
Non-Conforming
ProductManagement
7374
About This ReportMessage from the ChairmanAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
In 2024, the Quality Control Department, for the rst time at the group level, established unied quality targets—breakingaway from the previous model where each Site set its own independent goals.Unied Quality Target Setting to Drive Group-Wide Quality Management Enhancement
96.55%
Farasis Energy actively pursues internationally recognized quality certications, demonstrating its professional capabilities inquality control.In 2024, Ganzhou Site and Zhenjiang Site have successfully passed the IATF 16949 certication, fully standardizing theR&D, production, and sales processes for automotive products, and laying a solid foundation for deeper integration intothe automotive industry value chain. Additionally, they have obtained ISO 9001 certification, enhancing quality controlcapabilities for portable power supplies and energy storage products, which further expanded its market share. Moreover,the P50B cell product received UL certication, strengthening its competitiveness and credibility in the global market.
In 2024, the Company implemented a strategic organizational restructuring by transferring the after-sales service departmentfrom the Quality Center to the Market Operations Center under the Marketing system. This integration allows the after-salesteam to better collaborate with the sales team, optimize resource allocation, and maximize both cost e?ciency and servicee?ectiveness—ultimately delivering faster and more tailored responses to customer needs.
Under the new structure, the Quality Center focuses on strengthening customer quality management and has establishedan efficient closed-loop complaint management mechanism. Upon receiving quality-related customer feedback, theCompany immediately initiates a rapid response process, including comprehensive analysis of returned products and rootcause investigation to accurately determine accountability—whether the issue stems from supplier quality, design aws, ormanufacturing deviations.Once the responsible party is identied, the Company launches a follow-up improvement mechanism. This includes requiringrelevant departments to develop corrective actions with clear timelines and responsible personnel, while ensuring each stepof the remediation process is closely monitored. Throughout this process, the Company maintains close communication withthe customer, providing real-time updates to ensure full transparency on progress and solutions.After implementation, the Company continues to track market feedback, comparing key metrics—such as productperformance, reliability, and customer satisfaction—before and after the improvement to evaluate its e?ectiveness. Issuesthat remain are promptly reviewed, and lessons learned are fed back into all stages of the product lifecycle to drivecontinuous improvement. This commitment to excellence not only enhances product quality and service standards but alsosafeguards customer rights and reinforces Farasis Energy’s strong market reputation.
Strengthening Quality System Certication to Solidify Management Foundations
Organizational Optimization to Improve Service E?ciency
Closed-Loop Complaint Management Driving Issue Resolution and Continuous Improvement
Farasis Energy has built a customer-centric and highly efficient service system by optimizing its organizationalstructure, improving service responsiveness, and refining its complaint management mechanisms. The Company iscommitted to delivering an outstanding customer experience, strengthening satisfaction, and fostering long-term, stablepartnerships.
Optimizing Customer Service
*The scope of customer complaint and resolution rate statistics covers the Ganzhou and Zhenjiang sites, excluding domestic projects at the Zhenjiangsite.
Through centralized planning, overarching quality objectives were clearly dened andthen cascaded to each production site based on local operational conditions. A top-down, layered target system was formed. The targets focused on three key indicators:
product pass rate, customer complaint rate, and the occurrence of major qualityincidents. Following the principle of continuous improvement, the targets set for 2024were more ambitious than those of the previous year.
In terms of product pass rate, production line adjustments enabled the company tomeet its annual goal. Regarding customer complaint rate, improvements in feedbackmechanisms and effective issue resolution led to the successful achievement oftargets, maintaining customer satisfaction and market reputation. For major qualityincidents, the Company rigorously enforced risk control measures and reported zerosuch incidents during the reporting period, ensuring product stability and safeguardingbrand credibility.
Clear Target
Planning
Overall TargetAchievement
In 2024, the Company reported
zero
product recall incidents.
In 2024, the Company achieved a customer satisfaction rate of
7576
About This ReportMessage from the ChairmanAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
The Ganzhou Site developed a systematic internal policy and regulatory framework, formulating multiple guidelinessuch as theContinuous Improvement Incentive Management Regulations, Lean Talent Certication ManagementRegulations, QCC Activity Management Standards, andQuality Incentive Management Measures. These policies,through incentive mechanisms and a talent development system, fully engaged employees at all levels in leanproduction, providing robust institutional support.The site has also established improvement teams involving all employees, with clear responsibilities assigned todepartment heads. The implementation of projects is continuously tracked through monthly reviews, quarterly sharingsessions, and annual summaries. By organizing annual outstanding team selections, awards such as the "E?ciencyImprovement Award", "Cost Reduction Pioneer Award", and "Performance Innovation Pioneer Award" have been setup to encourage employees to actively participate in lean production activities.
The Ganzhou Site identied risks and potential opportunities through various methods. Risk identication includedprocess analysis, data monitoring and analysis, employee feedback mechanisms, and supply chain communication.Potential opportunities were explored through technological innovation, internal process optimization, andbenchmarking against industry leaders. These approaches enabled the Site to promptly address emerging issueswhile uncovering new growth opportunities. To measure the effectiveness of lean production, the GanzhouSite established key performance indicators (KPIs) across efficiency, cost, and quality dimensions. Efficiencymetrics included Overall Equipment E?ectiveness (OEE), Units Per Person Per Hour (UPPH), and the number of
Institutional Development and MechanismRenement: Strengthening the Foundation of LeanProduction
Monitoring, Evaluation, and Collaboration:
Ensuring E?ective Lean Production Implementation
In 2024, the Ganzhou Site comprehensively advanced its lean production transformation by establishing asystematic institutional framework and clear strategic pathways, laying a solid foundation for lean practices.
7576
Spotlight: Lean Production,The Pathto Systematic Transformation andOptimization
improvement suggestions per employee. Cost metrics focused on unit manufacturing costs, while quality metrics trackedFirst-Time Compliance (FTC) rates. These KPIs provided comprehensive insights into lean production outcomes, supportingdata-driven continuous improvement.In terms of supply chain collaboration, the Ganzhou Site implemented several strategic initiatives. For upstream suppliersynergy, the Site shared production plans and demand forecasts to help suppliers optimize raw material production anddelivery schedules, enabling just-in-time supply and reducing inventory. Additionally, it supported suppliers in rening theirproduction processes by introducing lean principles and tools to enhance efficiency and product quality. The Site alsoestablished internal feedback channels and actively collected external feedback. Through in-depth problem analysis andcorrective action implementation, a closed-loop improvement mechanism was formed, driving ongoing optimization oflean production. For downstream supply chain coordination, the Site maintained close communication to quickly adapt tochanges in customer demand and order adjustments, ensuring agile production planning. Furthermore, it collaborated withdownstream partners on inventory management, optimized logistics and distribution processes, and consolidated deliveryresources to improve e?ciency and ensure timely product delivery.In 2024, the Ganzhou Site won the group’s E?ciency Improvement Award for its boundaryless collaboration team project,while the Lean Manufacturing Department earned the Performance Innovation Pioneer Team honor for its outstanding leanmanagement.
7778
About This ReportMessage from the ChairmanAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Information Security and Privacy ProtectionFarasis Energy places information security at a strategic level, establishing a comprehensive organizational safeguardsystem and management framework. Through the integration of policies, technology, and culture, the Company has built amulti-layered data security protection network. Systematic risk assessments, multi-level technical safeguards, and e?cientemergency response mechanisms ensure the security and controllability of data throughout its entire lifecycle.
Farasis Energy prioritizes data security and privacy protection as the core of its information security management,implementing a robust organizational support structure. Farasis Energy has established an Information Security Committee,with the General Manager serving as the highest authority and the IT & Digitalization Department Head acting as theManagement Representative for Information Security. Department leaders from relevant functions serve as committeemembers. The main responsibilities include: reviewing the suitability, compliance, and effectiveness of the informationsecurity management system; overseeing the implementation of the information security policy and objectives; conductingspecial reviews and discussions on issues identified during the operation of the system, continuously optimizing themanagement system standards to ensure their e?ective operation and ongoing improvement.
Farasis Energy has formulated and implemented the Information Security Management Manual, which serves as the guidingdocument for information security management. It clearly denes the information security policy, strategies, and objectives,providing top-level institutional guarantees for data security and privacy protection. The Company has established acomprehensive management process covering system construction, asset identication, risk identication, and disposal. Itcontinuously optimizes the management system through a combination of internal and external audits. Internal audits includeinternal reviews, applicability assessments, and management reviews, while external audits cover document reviews andon-site audits to ensure the e?ectiveness and compliance of the system. For issues identied during audits, the Companypromptly implements corrective measures and actively obtains relevant certications to continuously improve data securitymanagement levels.Governance
Strategy
Risk Management
In terms of risk
identicationand disposal
To enhanceequipmentsecurity
In terms of datasecurity incident
emergencyresponse
Regardingsecurityculture andtraining
Farasis Energy adopts a systematic approach to risk assessment from multiple dimensions,including assets, threats, and vulnerabilities. By analyzing the probability of risks occurringand their potential impacts, risks are categorized into high, medium, and low levels, withcorresponding disposal measures taken. To ensure data security, the Company hasestablished the Data Security Management System and the Personal Information ProtectionSystem, which clearly define security requirements for data encryption, processing, anddeletion. These systems provide operational guidelines for the full lifecycle management ofdata.Farasis Energy has deployed multi-layered security protection devices. Firewalls ensurenetwork boundary security, anti-virus systems e?ectively detect and eliminate viruses andmalicious codes, Bastion hosts ensure secure server backend connections and provideaudit records, Intrusion Prevention Systems (IPS) defend against network-layer attacks, andWeb Application Firewalls (WAF) protect against application-layer attacks. These devicescollectively form the technical defense line for the company's data security.Farasis Energy has established a comprehensive handling mechanism. When a datasecurity incident occurs, the Company immediately activates the Information SecurityIncident Management Procedure. It rst veries the authenticity of the incident, assesses itslevel, and then forms a corresponding emergency response team based on the level. Theemergency response process includes key steps such as incident containment, businessrecovery, and traceability, and preventive measures are taken after the incident is handledto continuously improve the emergency response mechanism.all new employees receive information security training upon joining the company to ensurethat they establish the correct data security awareness and privacy protection concepts fromthe outset.Farasis Energy continuously monitors technological developments in the informationsecurity eld and actively introduces advanced security technologies and solutions throughindustry research and organizational exchanges. The Company maintains close cooperationwith professional information security vendors to ensure that the security technologiesand measures adopted meet business development needs and provide strong technicalsupport for data security and privacy protection. By integrating systems, management, andtechnology, Farasis Energy has built a comprehensive data security and privacy protectionsystem, laying a solid foundation for the company's sustainable development.
Coordination Group
Top CorporateO?cer
Functional Departments
Authorization
Manufacturing System
R&DSystem
Marketing
System
OverseasBusiness
Supply ChainManagement
Information Security Committee
Public Relations and Brand Communication
IT and Digitalization Department
Engineering Center
Finance CenterAudit and Supervision DepartmentComprehensive Management CenterLegal and Compliance DepartmentInvestor Relations DepartmentBusiness Management CenterGanzhou Site
Engineering InstituteResearch InstituteFrontier Technology Research InstituteMarket Operations Center
FEU - FEUFEE - FEEEmerging Business DepartmentOverseas Sales Business DepartmentZhenjiang SiteQuality CenterGanzhou New Energy SiteGuangzhou New SiteManufacturing Management and EHS(Environment, Health, and Safety)
Supply Chain Connection Management
Center
ManagementLayer
CoordinationLayer
Implementation & Execution Layer
Farasis Energy Information Security Organizational Structure
7980
About This ReportMessage from the ChairmanAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Reporting Channels：
https://www.farasis.com/index/privacy
Organization: IT Digital DepartmentEmail：
infosec@farasisenergy.com.cnPhone：
0797-7329933
Information Security InterfaceOrganization：
Information Security Management RepresentativeEmail：
rongyu@farasisenergy.com.cnPrivacy Policy Contact
Farasis Energy has achieved severalauthoritative certifications and honors inthe eld of information security, which fullydemonstrate its professional level in theconstruction of the information securitymanagement system.
Farasis Energy has successfully obtained the TISAX (Trusted Information Security Assessment Exchange) certification.This standard, jointly developed by the European Network Exchange Association (ENX) and the German Association of theAutomotive Industry (VDA), is an internationally recognized assessment system for information security in the automotiveindustry supply chain.
Annual Progress and Goals
Farasis Energy has obtained the Level IIIInformation Security Protection Certication,which signifies that its information systemsecurity protection capabilities, managementsystem, and technical measures meet thehigh standards required by the state.
In the provincial cybersecurity attack anddefense drill, Farasis Energy was awardedthe title of "Outstanding Response Unit" bythe Provincial Department of Industry andInformation Technology, in recognition of itsexcellent emergency response capabilities.This further validates its security protectionand emergency response capabilities in areal combat environment.
Farasis Energy Information Security Reporting and Feedback Channels
8182
About This ReportMessage from the ChairmanAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
the Company had atotal of
The total numberof key suppliers
the total number ofrst-tier suppliers
the total number of keyrst-tier suppliers
The procurement amount from key first-tiersuppliers accounted forof the total procurement expenditure
Northeast
East China
Southwest
North China
South China
overseas
suppliers
%
23323423394.73
Farasis Energy integrates the concept of sustainable development throughout the entire supply chain management process,with a particular focus on dimensions such as environmental protection, labor rights, occupational health and safety,and business ethics. As a member of the Responsible Cobalt Initiative (RCI), the Company is committed to promotingtransparency and standardization in the mineral supply chain, and guarding against risks such as child labor, human rightsabuses, and environmental damage.Farasis Energy has formulated and published theSupplier Code of Conduct, which regulates suppliers' behavior in termsof business ethics, environmental protection, labor rights, health and safety, and management systems. The code requiressuppliers to comply with laws and regulations, adhere to honest business practices, and prohibit corruption and unfaircompetition. In terms of environmental protection, suppliers are expected to reduce resource consumption and pollutionemissions, and actively address climate change. Additionally, suppliers should safeguard employees' rights, provide a safeand healthy working environment, and establish a comprehensive management system to ensure compliant operations.The Company has also published the Supplier Notification Letter, which explicitly requires suppliers to provide mineralsources that are compliant, free of child labor risks, and traceable. In the Responsible Sourcing Policy, Farasis Energycommits to promoting compliance with international standards and best practices throughout all links of the supply chainthrough risk assessment, supplier audits, training, and improvement mechanisms. Meanwhile, the Company has establishedthe Supply Chain Management Grievance and Communication Mechanism, emphasizing regular communication withsuppliers, employees, and other stakeholders to promote transparency and timely resolution of issues. The scope, process,and handling methods for grievances are claried, and aResponsible Sourcing Grievance Form is provided.The Company conducts due diligence audits on key mineral raw materials such as cobalt, lithium, nickel, and graphite.In 2024, Farasis Energy (including its own operations) has completed audits of 18 suppliers. The Company also providedCAP (Corrective Action Plan) coaching, improvement and monitoring for 4 of these suppliers to enhance the value chain.The audit content covers due diligence management systems, internal material control system evaluations, human rights,environmental aspects and other areas to ensure supply chain transparency and compliance.Farasis Energy also places great importance on communication and empowerment with suppliers. In March 2024,the Company launched the ISO 14064 greenhouse gas emission verification certification, conducting carbon footprintassessments for key upstream suppliers in the supply chain to understand their product carbon footprints and energyconsumption. This provides data support for calculating Scope 3 carbon emissions. Additionally, the Company hasstrengthened energy and carbon cooperation and exchanges with suppliers, laying the foundation for carbon reduction in thesupply chain.
Supplier CSR Management
Equal Treatment of SMEsFarasis Energy strictly adheres to the contractual terms with small and medium-sized enterprises (SMEs), ensuring that allpayments due under the contract are made on time. There have been no overdue payment incidents.As of the end of 2024, the total amount of accounts payable (including notes payable) of Farasis Energy was CNY 5.702billion, accounting for 21.4% of the total assets.
In 2024,The number of mineral supply chain due diligence audits conducted was
.The number of suppliers classied as high ESG (Environmental, Social, and Governance) risk was 0.Over the past 3 years,The total number of suppliers that have undergone ESG risk assessments was
.The number of rst-tier suppliers that have undergone ESG risk assessments was
.The number of key non-rst-tier suppliers that have undergone ESG risk assessments was
.
distributed by region as follows
0306090120150
To address potential risks in the supply chain, Farasis Energy has established theEmergency Preparedness and ResponseManagement Procedureand set up an emergency command center. The head of the center is the Safety Director,with department directors or managers as members, who are responsible for the unified command and coordination ofemergency events.The Company pays particular attention to the impact of extreme weather (such as typhoons and floods) on the supplychain. Through early warnings and emergency plans, it reduces the risks of raw material supply disruptions and increasedtransportation costs, ensuring the stability and resilience of the supply chain.
Supply Chain Security and ResilienceBuilding a Sustainable Supply Chain
Farasis Energy is committed to building a sustainable supply chain. We rmly believe that only through joint e?orts withsuppliers, partners, and stakeholders can we achieve the green transformation and sustainable development of the supplychain, set a benchmark of responsibility for the industry, and create long-term value for society.
Farasis Energy has established a comprehensive management system, strict supplier evaluation mechanism, andresponsible mineral sourcing policy to build a transparent, e?cient, and sustainable supply chain ecosystem.In terms ofsupplier management, Farasis Energy categorizes its procurement activities into direct and indirect procurement based onwhether the products and services are used in the nal production process. The Company has formulated and implementedthe Supplier Development and Management Procedure to ensure that the quality of suppliers' products and services meetsthe company's requirements. Before cooperating with suppliers, Farasis Energy signs condentiality agreements, generalpurchase terms, supplier codes of conduct, and integrity commitment letters with them to clarify the responsibilities andobligations of both parties.During the cooperation, Farasis Energy standardizes the supplier management process through the Supplier PerformanceEvaluation and Assessment procedure. It quantitatively evaluates suppliers from three dimensions: quality, price, anddelivery. Based on the assessment results, suppliers are classied into rst-tier suppliers and key non-rst-tier suppliers, anddi?erential management is implemented.
Comprehensive Supplier Management
8384
About This ReportMessage from the ChairmanAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Farasis Energy strictly complies with national laws and regulations to e?ectively safeguard the legal rights and interests ofemployees. The Company is committed to the growth and development of its employees and provides all employees withgood welfare and care. At the same time, it pays attention to the mental and physical health of employees and provides acomfortable and safe working environment.
The Company has established the Employee Recruitment Management System, strictly adheringto the principle of equal employment opportunities. It practices equal pay for equal work and doesnot discriminate against job applicants based on gender, age, race, religious belief, disability, orother factors. The same recruitment process is applied to all candidates to ensure the fairnessof the recruitment outcomes. The Company reviews and optimizes its recruitment system andprocesses annually to e?ectively prevent issues such as discrimination, child labor, and forcedlabor. The legal team supervises anti-discrimination efforts, and any discriminatory behavioridentied will be promptly corrected by the company.Farasis Energy has introduced an advanced recruitment system to standardize and make therecruitment process transparent. This system covers key stages such as job posting, resumescreening, interview evaluation, and hiring decisions. Each stage has detailed operational stepsand a reasonable schedule to ensure an orderly, fair, and open recruitment process, therebyenhancing the overall recruitment experience for job applicants.The Company implements a multi-channel recruitment strategy, including internal recruitment,social recruitment, and campus recruitment, to avoid the potential issues of information isolationand lack of transparency that may arise from relying on a single recruitment channel. Thisapproach helps to ensure the fairness and integrity of the entire recruitment process.
Farasis Energy has established theBackground Investigation Management Systemto regulaterisk management in the recruitment process. The HR evaluation process is incorporated into therisk management assessment criteria. The Company uses ID recognition technology for matchingand conducts strict reviews of the qualications of third-party labor personnel.
InstitutionalGuarantees
ProcessTransparency
Diversied
Channels
Risk Management
Farasis Energy ensures the fairness and justice of its recruitment activities through top-level institutional guarantees,transparent recruitment processes, diversied recruitment channels, and process risk management.
In addition, to prevent discriminatory practices in the recruitment process, Farasis Energy regularly organizes trainingsessions for employees on relevant laws, regulations, and institutional processes. It also conducts interviewer training toimprove interviewers' skills and evaluation capabilities, enhance their ability to identify both overt and potential discriminatorybehaviors, and strengthen the enforcement of standard recruitment procedures.
Anti-Child Labor and Forced Labor
Protection of Freedom of Association and the Right to CollectiveBargaining
Farasis Energy strictly adheres to international labor standards and national laws and regulations. The Company hasformulated and implemented a series of systems, including thePolicy and Procedures for Preventing Child Labor, the
Management Procedures for Preventing Child Labor and Child Labor Remediation, and theManagement Procedures forProtecting Young Workers.These policies explicitly prohibit the use of child labor or forced labor under any circumstancesand require contractors and suppliers to strictly comply with the same standards. To ensure compliance, the Company takesmeasures such as verifying the "three certicates" (ID card, residence permit, and health certicate) and conducting irregularworkshop inspections to verify employees' ages and identities, thereby eliminating illegal employment practices.Additionally, Farasis Energy has established the Prohibition of Forced Labor Management Procedures, which are committedto creating a free and dignied working environment for employees. The procedures explicitly prohibit any form of forcedlabor, including restricting employees' freedom of activities outside working hours, forcing overtime, and withholding depositsor ID documents. The Company also rmly refuses to cooperate with subcontractors that use prison labor, upholding ethicaland legal standards to ensure the compliance and social responsibility of the supply chain.
Farasis Energy respects employees' freedom of association and has formulated relevant union policy documents, such asthe Management Procedures for Freedom of Association and Collective Bargaining. The Company has also signed collectivecontracts, including theJiangxi Province Wage Collective Consultation Special Collective Contract, the Special CollectiveContract for the Protection of Female Employees, and the Labor Safety and Health Special Collective Contract. Thesemeasures ensure that employees can freely organize and participate in union activities and enjoy the right to collectivebargaining.
The Company recruited a total of
including
female new employeesaccounting forof the total
new employees
through social recruitment
through campus recruitmen%
2,343
2,236
22.15
In 2024, the proportion of employees covered by trade union or collective bargainingagreements was
%
Employee Rights and Development
Farasis Energy strictly implements national policies related to human rights, gender, age, ethnicity, and other aspects. Itstandardizes labor employment management. The Company proactively identies and assesses potential human rights risksin its daily operations and has established a series of human rights management policies to prevent any adverse impacts inthis area.
Protection of Employee Legal Rights
Equal and Open Recruitment
8586
About This ReportMessage from the ChairmanAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Employee Training and Development
Farasis Energy has established a comprehensive talent development system that covers all employees, including full-time employee, part-time employees, and outsourced workers. The system comprises four major modules: managementskills enhancement, professional skills enhancement, foundational skills enhancement, and learning support. Based onemployees' current status and developmental needs, the Company exibly chooses between internal and external trainingmethods to systematically conduct management and professional skills training, providing all-around support for employees'career development.
Farasis Energy is committed to creating a career development platform full of opportunities and challenges for employees.The Company innovatively launched the "Y-Channel" career development system, which establishes dual career paths formanagement and professional development for every type of position. This encourages employees to choose a suitabledevelopment direction based on their interests and capabilities, building core career competitiveness. Additionally, theCompany o?ers a exible job rotation mechanism to support employees in adjusting between di?erent career paths at theright time, helping them maximize their personal value.
Dual career paths (Management &Professional) are established for eachposition category
Employee Training and Development
Employee Promotion and Development
In 2024, Farasis Energy further focused on the cultivation of high-potential talents and theenhancement of managerial capabilities:
The Company ensures the fairness and impartiality of recruitment activities through top-level institutional safeguards,transparent hiring processes, diversied recruitment channels, and procedural risk management.
The Company conducted
training sessionsmillion yuanhours
with a total training expenditure of The total training hours for all
employees amounted to
1,649226.580,257.9
In 2024, the Company continued to optimize its job grade and position system, completing the alignment of job grades andpositions. Addressing historical issues and current conditions, the company comprehensively upgraded the job grade andtitle system, rened the grade structure for blue-collar workers, and encouraged employees to develop deeper expertisein their professional fields. Through the job grade and position alignment, the number of managerial staff decreased by
40.1% compared to pre-alignment levels, while the total number of positions was reduced by 11.2%, further enhancing
organizational e?ciency and the precision of employee career development..
Farasis Energy's "Y-Channel" Career Development System
By organizing talent assessments, the Company accurately identified high-potential individuals and designed specialized development programs for them.This effort aims to build a robust talent pipeline and reserve core forces for thecompany's future growth.
For newly promoted managers, the Company provided a specialized curriculumcovering management awareness, management tools, and business thinking.By combining knowledge acquisition with practical application, this training helpsnew managers achieve role transitions in three dimensions: enhancing leadershipcapabilities, shifting work philosophies, and optimizing time and energy allocation.Additionally, Farasis Energy established a cross-departmental learning andcommunication platform to unify management language, improve employees' jobcompetencies and management e?ciency, and inject continuous momentum intoorganizational development.
High-Potential
TalentDevelopment
ManagerialTransitionTraining
ManagementCareer Path
LeaderManagerSupervisor
Experienced ProfessionalEntry-Level
ResourceSeniorCore Talent
ProfessionalCareer Path
Dual-Career Y-Path
8788
About This ReportMessage from the ChairmanAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Farasis Energy always regards employee motivation and career development as important drivers for the sustainabledevelopment of the enterprise. By optimizing the performance-based pay system and implementing a diversied incentiveprogram, the Company stimulates employees' enthusiasm and creativity, helping them grow together with the enterprise.Employee Motivation and ProgressEmployee Benets and Care
Scientic Assessment and Precise Incentives
Combining Short-Term and Long-Term Incentives to Share Achievements
?Goal Decomposition and Setting: Using reasonable tools for performance goal decomposition, the Companyensures that all employees' performance goals are highly aligned with the company's strategic objectives,providing employees with a clear direction and criteria for their work.?Performance Evaluation and Assessment: The Company conducts semi-annual and annual evaluations asplanned, objectively assessing the completion of employees' performance goals, which serves as the basis forsalary adjustments and incentives.
?Short-Term Incentives: Based on the actual situation of the year, the Company implements annual salaryadjustments for core employees and commends outstanding employees and teams, awarding them bonuses topromptly recognize their contributions and e?orts.?Medium-to-Long-Term Incentives: To provide long-term incentives and retain key talents, the Companyhas implemented an equity grant incentive program for core personnel. Every year, the Company releasesequity according to a set ratio, closely linking employees' personal interests with the company's long-termdevelopment, thereby enhancing their sense of belonging and responsibility.
With the assistance of a third-party consulting rm, the Company has conducted a comprehensive diagnosisand optimization of its performance-based pay system to ensure the scientific nature and measurability ofperformance targets.
To boost employees' enthusiasm and creativity, the Company has established a diversied incentive programthat includes both short-term and medium-to-long-term incentives, allowing employees to share in thecompany's development achievements.
The Company achieved a
participation rate in individual performance evaluations and full coverage of the performance-basedcompensation system
%
Farasis Energy has established an Employee Care Committee and formulated the Employee Care Program that coversall employees, advancing the "We Care" initiative to continuously improve the employee welfare system and demonstratehumanistic care as an employer.Employee Care and Warmth
Basic Benets:
Lifestyle Benets
Activity Benets
The Company provides all employees with a comprehensive range ofbenefits, including five insurances and one housing fund, commercialinsurance, regular free health check-ups, paid annual leave, marriageleave, maternity leave, parental leave, and breastfeeding leave.
Farasis Energy o?ers a wide range of lifestyle conveniences for employees,such as dormitories, cafeterias, and scheduled shuttle services.Additionally, for employees in non-production operation positions, theCompany implements a exible non-xed working hours system, allowingemployees to arrange their work and rest times according to their personalneeds and work e?ciency, thereby better balancing their personal lives andcareer development.
The Company organizes various employee activities, such as birthdayparties, retirement ceremonies, sports meets, team-building events, funsports competitions, and family days.
In 2024, the Company successfully held an evaluation activityfor outstanding employees, teams, and projects. Through acomprehensive assessment from multiple dimensions, includingperformance evaluation, online review, and on-site review,the Company selected 199 outstanding individuals and 14outstanding projects and teams. At the year-end commendationconference, senior company leaders personally awarded 213winning employees and teams with certificates of honor andbonuses, fully recognizing their outstanding contributions andcalling on all employees to take these advanced examples asrole models to jointly promote the high-quality development ofthe enterprise.
Year-End Commendation Conference to Inspire AllEmployees
8990
About This ReportMessage from the ChairmanAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
The Company carefully organizes birthday parties for employees with birthdays each quarter, presentingthem with customized gifts and sincere blessings. This further enhances employees' sense of belonging andhappiness. In 2024, a total of 14 birthday parties were held, with 1,151 employees participating. This warminitiative not only demonstrates the company's care and attention to employees but also creates a harmoniousand friendly corporate culture atmosphere, injecting warmth into the team's cohesion and centripetal force.
As the Spring Festival approached, Wu Xiaomei, the chairperson of the Ganzhou Economic Development ZoneTrade Union, and her team visited Farasis Energy to conduct a Spring Festival warmth-sending and consolationactivity. They delivered New Year greetings and consolation money to the employees, conveying the care fromthe Party, the government, and the trade union. This activity was the result of the company's union conductingin-depth surveys of employees' living conditions, formulating assistance measures, and actively connecting withthe higher-level trade union. It reects the company and the union's emphasis on and care for employees indi?culty.
In 2024, the Company successfully held 11colorful sports events, including employeesports meets, fitness boot camps, badmintoncompetitions, three-point shooting contests, andmini-marathons. These diverse activities attracteda total of 1,240 employees to actively participate.The events not only provided a platform foremployees to showcase their sports talents butalso further promoted team collaboration andcommunication, enhancing employees' cohesionand sense of belonging, and injecting vitality andpassion into corporate culture construction.
In 2024, the Company meticulously planned andsuccessfully held 7 traditional festival activities,including Women's Day, Lantern Festival,and Mid-Autumn Festival. The activities werediverse in form and rich in content, attracting theenthusiastic participation of 1,598 employees.These events not only created a strong festiveatmosphere but also allowed employees to feelthe company's care and warmth in joy, furtherenhancing their sense of belonging and teamcohesion, and adding a warm hue to corporateculture construction.
In January 2024, the company's PartyCommittee and Trade Union jointly launchedthe "Sending Warmth in Winter, Gan OrangesSweeten Hearts" campaign, presenting Ganoranges, which symbolize warmth and hope, tofrontline employees, conveying the company'sdeep care and support. This activity not onlybrought warmth and joy to employees in thecold winter but also created a harmonious andwarm working atmosphere, further enhancingteam cohesion.
"Sending Warmth for the New Spring Festival, Care Warms Hearts" —Farasis Energy Union Conducts Spring Festival Consolation Activities
Group Birthday Parties, Warmth Gathers Hearts
Diverse Sports Activities, Releasing Passion and Vitality
Traditional Festival Activities, Conveying Cultural Values
Sending Warmth in Winter, Gan Oranges Sweeten Hearts
9192
About This ReportMessage from the ChairmanAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
The Company has continuously implemented a series of support measures for employees in di?culty, including regularlyconducting assistance projects for employees in di?culty and the "Fu Kids' Education Journey" activities. The Company hasestablished a Love Rescue Fund, which aims to provide support for employees facing sudden situations, medical assistance,or family di?culties. So far, the fund has distributed nearly 350,000 yuan in relief funds to more than 41 families. Additionally,the Company has set up a "Support Workshop," providing 12 job positions for 12 impoverished families.
Farasis Energy has established an efficient and transparent employee feedback system through a comprehensiveinformation reporting mechanism and diversied communication channels, laying a solid foundation for mitigating humanrights risks and enhancing employee satisfaction.
Employee Communication and Feedback
The Company has established a multi-level information reporting mechanism through the President's Office meetings,business analysis sessions, and remuneration management reports, ensuring that the management can promptlyunderstand the company's operational status and employee needs.
Farasis Energy provides convenient communication and feedback channels for employees through various means andformats:
Comprehensive Information Reporting Mechanism
Diversified Communication Mechanism
In 2024, the Company successfully held eight seminars with a total of 252 employees participating, coveringtopics such as company development, employee growth, and team collaboration. These seminars provided aplatform for employees to exchange ideas, share experiences, and o?er suggestions, promoting communicationand cooperation among employees. The "Executive Meet and Greet" series invited the company's presidentand core team members to delve into the origins, backgrounds, and key plans of the business strategy, givingemployees a clearer understanding of the company's strategic direction.
Complaint Channels
Feedback Channels"Farasis WonderfulNight" Event
Employees can lodge complaints regarding disciplinary actions or other misconductin writing or verbally. The Company commits to investigating and providing feedbackwithin three working days. If employees are dissatised with the handling results, theycan further le complaints with the labor inspection department.Various channels such as trade union email, human resources center email, corporateWeChat, and employee suggestion boxes are available to provide employees withdiverse feedback options.Held quarterly, this event directly conveys employee feedback to senior managersand promotes relevant system improvements, ensuring that employee voices are fullyvalued.E?cient Feedback and ImprovementIn 2024, the Company conducted six on-site inspections in collaboration with the audit department and received over 80suggestions and comments through both o?ine and online channels, covering multiple areas such as canteen catering,administrative management, workshop operations, and human resources management. The Company achieved a 100%response rate to all feedback, earning unanimous recognition from employees, and the trade union has become a trustedorganization for the workforce.Additionally, the Company regularly conducts internal surveys, with some suggestions being adopted and transformed intopractical work measures. Based on the survey results in 2024, the Company proposed corresponding solutions, o?ciallyapproved the Trade Union Management System, and further improved the Management Procedures for the Protection ofFemale Employees' Labor Rights, fully implementing rights protections such as prenatal check-up leave, pregnancy leave,maternity leave, abortion leave, and exible working hours for breastfeeding mothers (lactation leave). Measures to helpfemale employees balance work and family responsibilities were also incorporated into the Collective Contract and theSpecial Collective Contract for the Protection of Female Employees' Rights and Interests.
The survey results show that the company's overall engagement score reached 78.2 points in 2024.
Farasis Energy has established a comprehensive EHS (Environment, Health, and Safety) assurance system through arobust organizational structure, institutional framework, risk management, and training mechanisms. The Company iscommitted to creating a safe and healthy working environment for employees while promoting green development andcompliant operations.Governance Structure and Institutional Development
Occupational Health and Safety
The Company has established a two-tier EHS committee at the group and Site levels, with the overall person in charge ateach level serving as the director, fully responsible for EHS management. The EHS management department houses theEHS committee o?ce, which is responsible for monitoring EHS indicators, formulating annual work plans, supervising theimplementation of signicant matters, and conducting accident investigations. In 2024, the Ganzhou New Energy Site andGuangzhou Site established safety committees. Through organizational structure support, they signed safety responsibilityagreements with the responsible persons of each department, clarifying the scope of responsibilities to ensure that safetyresponsibilities are assigned to specic positions and individuals.In terms of performance assessment, the Company has linked the EHS performance of the CEO and executive managementto their performance evaluations, setting negative points for major safety and environmental accidents. Additionally, theCompany has established group-level and Site-level Key Performance Indicators (KPIs) covering workplace safety, accidentrates, hazard rectication, compliance with waste discharge standards, proper disposal of hazardous waste, and energyresource consumption to e?ectively measure the e?ectiveness of EHS management.
Employee Communication Seminar
9394
About This ReportMessage from the ChairmanAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
In 2024, the Ganzhou New Energy Site organized hazard identification and evaluation across departments,formulated and supervised the implementation of improvement plans for identified risk points, achieving a99% completion rate for hazard improvement measures. Moreover, the Site conducted routine, special, andcomprehensive hazard inspections, established a leadership-led inspection mechanism, and supervised theresponsible persons to rectify and eliminate identied hazards, with a hazard rectication rate exceeding 95%.The Guangzhou Site established an EHS management system in accordance with ISO 45001 and ISO 14000standards, combined with local regulations, completing 34 system documents and 53 record forms coveringkey areas such as occupational health, environmental protection, safety risk, hazard inspection, and firemanagement. The Site implemented production safety, environmental protection, occupational health, and retasks according to the annual plan, regularly inspected hazards, and managed risks.
The Company has developed emergency response plans and on-site emergency disposal plans, established a four-levelemergency response mechanism, and regularly organized emergency drills to ensure effective response in emergencysituations.
In 2024, the Ganzhou New Energy Site established a professional Emergency Response Team (ERT) andformulated detailed emergency disposal plans in line with actual conditions. The ERT team regularly conductedassessments and training to ensure members' capability for rapid response and e?cient handling of emergencies.To motivate ERT members, the Company provided monthly subsidies, further enhancing the team's enthusiasmand stability.
Additionally, the Company o?ers external certication training, such as for special operations and electrician licenses, toensure employees are certied for their positions. By combining internal and external training, the Company continuouslyenhances employees' safety awareness and emergency response capabilities, ensuring the safety and health of theworkplace.
The Company places great emphasis on employee safety education, regularly organizing comprehensive safety trainingactivities annually, including new employee three-level education, ongoing training for current employees, and specializedsafety training. In 2024, the Zhenjiang Site organized 314 sessions of new employee company-level safety training, with 5,480participants; the Ganzhou Site held 107149 training sessions, with 3,682 participants, covering re safety basics, emergencyhandling and rescue skills, occupational health, and environmental sustainability. The Ganzhou New Energy Site conducteda total of 134 safety training sessions, with 2,653 participants. The Guangzhou Site conducted a total of 56 training sessions,with 1,360 participants.
Annual Progress and Goals
The Company has established clear long-term strategic goalsfor EHS management: In terms of environment, it adheresto the principle of "implementing scientific management,providing green energy, protecting the earth's environment,and creating a better life together," strictly implementingpollution prevention and emission reduction measures. Interms of occupational health and safety, it follows the policyof "compliance with regulations, health protection, safetyassurance, full participation, prevention rst, and continuousimprovement," regularly assessing and optimizing goals andindicators.In 2024, the Company achieved significant results in EHSmanagement. The annual EHS work objectives of theZhenjiang Site and Ganzhou Site were met, including zeromajor accidents, zero occupational disease incidence,and a 100% hazard rectification rate. The Company wasalso honored as a "Healthy Enterprise in Ganzhou City,"and several employees received honors for outstandingcontributions to production safety.Currently, the Company's two established sites in Ganzhouand Zhenjiang have successfully implemented and obtainedISO 45001 international standard certification, while alsocompleting work safety standardization certication with LevelIII accreditation. The newly established Ganzhou New Energyand Guangzhou sites have already developed implementationand certification plans for the ISO 45001 system, with theentire implementation and certication process expected to becompleted by November 2025
Strategic Mechanisms and Risk ManagementThe Company has established 26 procedural management documents and 149 management systems, comprehensivelycovering multiple occupational health and safety areas. For instance, the Hazard Identification and Risk AssessmentProcedure standardizes employee health and safety management from an operational process perspective. Additionally,documents such as the Safety Management Regulations for Production Facilities and Equipment ensure that specialoperations management complies with relevant standard requirements.The Company has established a dual-prevention mechanism, including hazard identication and rectication, as well asgraded control of safety risks. Through regular inspections, including daily patrols, monthly checks, and special inspections,the Company identifies hazards and evaluates the risks associated with identified hazards to formulate correspondingcorrective and preventive measures.
the Company achieved a
coverage rate for safety training,including all suppliers
%
proportion of sites assessed foremployee health and safety risks
%
Occupational Health and Safety Training at
Zhenjiang Site
Occupational Health and Safety Training at
Ganzhou Site
New Site Enhances Hazard Control and Inspection toFortify Safety Defenses
New Site Builds Emergency Response Capability,Incentivizes ERT Team Building
*The safety training coverage statistics primarily include on-sitesuppliers.
9596
About This ReportMessage from the ChairmanAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Farasis Energy has always adhered to its corporate citizenship responsibilities and actively fullled its social responsibilitiesthrough multifaceted initiatives such as charitable donations, volunteer services, and rural revitalization, contributing to socialharmony and common prosperity.Spreading Warmth and Building Harmony Together
Empowering Development through AgriculturalAssistance and EducationThrough charitable donations and volunteer services, the Company has extended care and support to vulnerable groups,demonstrating its social commitment.
The Company has supported rural revitalization and promoted common prosperity through multifaceted initiatives inagricultural assistance, cultural tourism, and education.
In 2024, the company's trade union organized several charity activities, including holiday visits to nursing homesand children's welfare institutions, a care program for left-behind children, and celebrations for InternationalChildren's Day on June 1st. The Company also made donations to the Blue Sky Rescue Team. The total value ofdonations and supplies throughout the year was approximately 1.6011 million yuan, beneting numerous groupsin need.
Charitable Donations
The Company launched the "Volunteer in Heart, Act with Will" volunteer service activities. Volunteer teams fromGanzhou and Zhenjiang visited nursing centers and "Childhood Harbors" respectively, bringing warmth andgifts to the elderly and children. Volunteers engaged in friendly conversations with the elderly residents andinteracted with the children, conveying social care. Specically, in the "Childhood Harbor" program, the Companycollaborated with the district people's court to establish a minor guardianship station to assist in the cultivation oflegal awareness and healthy growth among young people.
Volunteer Services
In 2024, the Company supported local farmers by purchasing agricultural products such asnavel oranges, salted chickens, salted ducks, and sausages, with a total assistance amount ofapproximately 140,000 yuan. This directly contributed to increasing farmers' income and ruraleconomic development.The Company organized cultural and tourism activities such as "Red Journey, Happy Tourat Fantawild" and "Nature Journey, Island Spring Tour," with a total assistance amount ofapproximately 40,000 yuan. These activities aimed to boost the development of rural culturaltourism.For three consecutive years, the Company has provided educational support to SanjiangTownship, with a cumulative donation amount of 117,400 yuan. This support has providededucational opportunities for students in need and contributed to the development of ruraleducation.
管理方式
AgriculturalEmpowermentCultural TourismEmpowerment
EducationalEmpowerment
管理行动
Social Contribution and Rural Revitalization
the Company organized a total of
volunteer activities
volunteer participant
a total ofhours of volunteer service contributed byemployee volunteers
the Company invested a total of
million yuan in rural revitalization e?orts
1.29
9798
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
单单2022单2023单2024单
Number of Board of Directors heldTime201710Number of shareholders' meetings heldTime532Number of Board of Supervisors heldTime17125Number of directorsPerson111111By independence
Number of independent directorsPerson444Number of non-independent directors
Person777By genderNumber of male directorsPerson111111Number of female directorsPerson000By professional backgroundNumber of independent directors with anindustry background
Person122Number of independent directors witha professional background in riskmanagement
Person333Number of independent directorswith a background in accounting orfinance
Person2 2 2Average annual tenure for members ofBoard of Directors
Year333Average attendance of the board meetings%100100100Proportion of the minimum number ofmeetings required to be attended bymembers of the Board of Directors of thenumber of meetings held during the year
%100100100Restrictions on the number of independent/non-executive directors holding concurrentpositions in domestic listed companies
No.533
Party Building
IndicatorUnit202220232024Number of general Party branch(es)No.111Number of Party branchesNo.244Number of Party members of the yearPerson9999107Number of new members of the yearPerson403025Number of Party member activitiesTime202326Number of people covered by Party memberactivities
Person times8693107
Business performance
IndicatorUnit202220232024Social contribution per share1CNY/share0.34-0.190.97Operating incomeCNY 100 million115.88164.36116.80Annual taxCNY 100 million0.690.711.55Total operating costCNY 100 million40153.11116.80Total assetsCNY 100 million107.18301.47266.27Membership Fees for Industry AssociationsCNY189,000.00 454,000.00 794,860.40
ESG Performance Table
Governance and Economic Performance
Litigation and violations
IndicatorUnit202220232024
Number of corruption lawsuits initiated andconcluded against the company
No.000Number of corruption lawsuits initiated andconcluded against the employees
No.000Number of reports generated by anti-corruption reporting procedures
No.010Number of internally recognized corruptionsNo.011Cases related to antitrust/anti-competitionNo.000Cases related to discrimination or harassmentNo.000Cases related to insider tradingNo.000Cases related to conicts of interestNo.000
Board of DirectorsIndicatorUnit202220232024
Social contribution per share =earnings per share + (total tax + employee expenses + interest expenditure + public welfare input - social cost) ÷ Totalcapital stock at the end of the period
99100
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Environmental Performance
Taxes and fees related to environmentalprotection
CNY 86,440.9892,858.2427,849Environmental pollution incidentsNo.000Environmental investment
CNY 10,000374.09 382.73 263.70Investment in energy-saving renovationprojects
CNY 10,000801.6451.07 634.59
Total emissions of greenhouse gas (Scopes1 and 2)
tCO2e424,786.38371,657.34289,082.48Total emissions of Scope 1 greenhouse gastCO2e6,280.484,328.283,679.09Total emissions of Scope 2 greenhousegas (location-based)
tCO2e418,505.90367,329.06285,403.39Total emissions of Scope 3 greenhouse gastCO2e874,815.60987,510.47841,536.69Greenhouse gas emission intensity
tCO2e/CNY 1million of operating
income
36.6622.6124.75Direct reduction of Scope 1 greenhousegas emissions
tCO2e21,962.021,952.20649.19Direct reduction of Scope 2 greenhousegas emissions
tCO2e-190456.2351,176.8481,925.67
WasteTotal general waste
Tonne10,370.087,922.699,296.40General waste intensity
Tonne/CNY 1million of operating
income
0.890.480.80Total hazardous waste
Tonne500.70715.91440.21Waste electrolyteTonne32.9835.9531.80Waste engine oilTonne2.009.331.89Refrigerating uidTonne0.510.082.16Discarded packageTonne194.67186.87120.01Waste curing agentTonne0.165.510Residual slurriesTonne255.60210.9379.86Waste alcoholTonne13.306.452.13Spent activated carbonTonne0.322.235.36Waste ltersTonne0.400.401.77Wastewater treatment sludgeTonne0.00 106.50 72.27Waste gluesTonne0.68151.58 107.68Waste organic solventTonne0.090.07 1.84Waste rags
Tonne--0.01Waste liquid from online detection andlaboratory testing
Tonne--0.02Waste cutting uid
Tonne--3.85Waste lter cores from cathode coatingstirring
Tonne--5.66Test waste residueTonne--3.68Laboratory wasteTonne--0.24Hazardous waste intensity
Tonne/CNY 1million of operating
income
0.040.040.04
Except as otherwise stated, the scope of environmental performance data for 2022 and 2023 is the same as that in the ESG Performance Table of the2023 Environmental, Social and Governance (ESG) Report. The scope of environmental performance data for 2024 covers the company's four majorSites in Ganzhou, Zhenjiang, Ganzhou New Energy, and Guangzhou.
The scope of data statistics for 2022 was the Zhenjiang Site of the company. The scope for 2023 included the Ganzhou and Zhenjiang Sites. Thescope for 2024 covered the Ganzhou, Zhenjiang, Ganzhou New Energy, and Guangzhou Sites. During the reporting period, the company conducteda retrospective review and verication of the data from previous years and corrected the data on “environmental protection-related taxes and fees”disclosed in the 2023 Environmental, Social and Governance (ESG) Report for the years 2022 and 2023 (the original gures were CNY 86,400.00 andCNY 92,910.00, respectively).In 2024, the environmental protection-related taxes and fees decreased compared to previous years, primarily becausethe construction of the Zhenjiang SIte within the city had been completed, eliminating the need to pay the relevant environmental protection taxes.In2024, environmental investment costs decreased compared to previous years, primarily because several major technical renovation projects at thesites were completed in 2023.
The scope of data statistics for 2024 includes the company's three major Sites: Zhenjiang Site, Ganzhou Site, and Ganzhou New Energy Site.
The scope of data statistics for 2024 includes the company's two major Sites: Zhenjiang Site and Ganzhou Site.
The scope of data statistics for 2022 and 2023 was the company's two major Sites in Ganzhou and Zhenjiang.
The scope of data statistics for 2022 and 2023 was the company's two major Sites in Ganzhou and Zhenjiang.
The scope of data statistics for 2024 includes the company's three major Sites: Zhenjiang Site, Ganzhou Site, and Ganzhou New Energy Site.
During the reporting period, the data statistics for waste rags and waste liquid from online detection and laboratory testing were sourced from theGanzhou New Energy Site.
During the reporting period, the data statistics for waste cutting uid, waste lter cores from cathode coating stirring, test waste residue, and laboratorywaste were sourced from the Zhenjiang Site.
Environmental indicators
IndicatorUnit202220232024
Emissions and waste
IndicatorUnit202220232024
Greenhouse Gas Emissions
IndicatorUnit202220232024
101102
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Water consumptionTonne2,388,865.802,032,662.75 1,647,060Water consumption intensity
Tonne/CNY 1million of operating
income
206.15 123.67141.01Total consumption of recycled waterTonne737,501.80611,234.60 4,841,138
Ganzhou SiteTotal packaging usedNo.112,32099,37433,808Recyclable packaging usedNo.53,70956,40813,982Proportion of recyclable packaging used
%47.8256.7641.36Zhenjiang SiteTotal packaging usedNo.96,434115,134137,697Recyclable packaging usedNo.33,82114,47126,895Proportion of recyclable packaging used
%25.9711.1719.53Ganzhou New Energy SiteTotal packaging usedNo.--975Recyclable packaging usedNo.--972Proportion of recyclable packaging used
%--99.69Total energy consumptiontce102,88293,98782,222.28
Total electricity consumptionkWh529,057,399457,102,902.40409,656,250.40PV power generationkWh21,040,60037,129,897.4037,035,604.40Purchased electricitykWh508,016,799419,973,005372,620,646Steam consumptionTonne415,420.60 445,204.2350,596.71Natural gas consumptionm
668,40869,5602,685,293Energy consumption intensity
tce/CNY 1 millionof operatingincome
8.885.727.04Proportion of renewable energy%275857
The scope of data statistics for 2024 includes the company's three major Sites: Zhenjiang Site, Ganzhou Site, and Ganzhou New Energy Site.Theestimation method for total wastewater discharge is selected based on the actual production conditions of each site. For the Zhenjiang Site, the actualwastewater discharge volume is calculated by applying the ratio of actual production capacity to designed capacity to the water balance data in theenvironmental impact assessment report. The Ganzhou Site estimates industrial wastewater discharge using the industrial wastewater coe?cientof 0.007 m?/kWh from the "384 Battery Manufacturing Industry Coe?cient Manual," while domestic wastewater is estimated based on the per capitawastewater discharge in Jiangxi Province from the "Domestic Pollution Source Emission Coe?cient Manual." As the Ganzhou New Energy facility hasonly been in operation for a short time, its wastewater discharge data only includes December 2024.
The scope of data statistics for 2024 includes the company's two major Sites: Zhenjiang Site and Ganzhou Site. The estimation method for totalexhaust gas emissions is determined based on the actual production conditions of each site. For the Zhenjiang Site, emissions are calculatedaccording to the emission rates and operational hours specied in the monitoring reports. The Ganzhou Site estimates its emissions using the exiblepackaging exhaust gas coe?cient of 81.7 m?/kWh from the 384 Battery Manufacturing Industry Coe?cient Manual.
In 2024, no boilers were used at the sites. Emissions of nitrogen oxides (NOx), particulate matter (PM), and sulfur oxides (SOx) were primarilygenerated from cell nail penetration testing at the Zhenjiang Testing Center. During testing, battery cell combustion produces characteristic combustionpollutants.
According to the General Rules for the Calculation of Comprehensive Energy Consumption (GB/T 2589-2020), the standard coal conversion coe?cientfor electricity is 0.1229 kgce/kWh, for steam is 0.0946 tce/ton, and for natural gas is 1.2143 kgce/m?.
Rate of recyclable packaging consumed at Ganzhou Site = recyclable packaging consumed ÷ (consumption of recyclable packaging + paper boxconsumed)
Rate of recyclable packaging consumed at Zhenjiang Site = recyclable packaging consumed ÷ (paper box consumed + wooden boxes consumed +consumption of recyclable packaging). During the reporting period, the Company conducted a retrospective review and verication of past data andcorrected the data on the "Proportion of recyclable packaging used at Zhenjiang Site" disclosed in the 2023 Environmental, Social and Governance(ESG) Report for 2022 and 2023 (the original gures were 35.07% and 2.30%, respectively) .
Rate of recyclable packaging consumed at Ganzhou New Energy Site = recyclable packaging consumed ÷ consumption of recyclable packaging
WastewaterTotal wastewater discharge
Tonne776,113.00279,046.00237,879.00Wastewater discharge intensity
Tonne/CNY 1million of operating
income
66.98 16.9820.37Percentage of wastewater discharge treatedby municipal sewage treatment plants
%100100100Waste gasTotal waste gas emissions
10,000 m
73,709.9285,717.3548,311.90Volatile organic compounds (VOCs)emissions
Kilogram927.601,342.606,350.40Nitrogen oxides (NOx) emissions
Kilogram0104.6024.60Particulate matters (PM) emissionsKilogram0104.0026.20Sulfur oxides (SOx) emissionsKilogram0793.10186.60Waste gas emission intensity
10,000 m
/CNY 1million of operatingincome
6.365.224.14
Emissions and waste
IndicatorUnit202220232024
Water Resources ManagementIndicatorUnit202220232024
Packaging materials
IndicatorUnit202220232024
Energy ManagementIndicatorUnit202220232024
103104
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Proportion of females in managementpositions (Deputy managers and above)
%13.6913.2610.63
Proportion of females in junior managementpositions(Supervisory level and above)
%19.2117.4816.23Proportion of Women in Revenue-GeneratingRoles
%-3031.31Proportion of females in R&D positions%16.8415.4916Proportion of employees from ethnicminorities or disadvantaged groups
%3.563.053.41Number of employees with disabilitiesPerson665050
Health and SafetyLost-time injury rate
-0.91 0.88 0.56Number of work-related accidentsNo.15136Number of recordable work-related injuriesPerson15136Number of work-related deathsPerson000Total number of hours lost due to work-related injuries
Hour7,342.50 1,507.50 1,288Safety drillsTime4642105Number of safety training sessionsTime483631653Number of employees participating in safetytraining
Person17,69011,47413,175Coverage of safety training%100100100Proportion of premises assessed foremployee health and safety risks
%100100100Proportion of employees represented onformal joint business management and laborhealth and safety committees
%100100100Third-party Health and safetyLost-time injury rate-000Total number of lost-time accidentsNo.000Number of recordable work-related injuriesPerson000Number of work-related deathsPerson000
The total number of employees includes full-time equivalents within and outside of China.
The "management" in the ESG Performance Table refers to employees who are deputy managers and above (9-level and above).
A manager is an employee in the "managerial queue". During the reporting period, the Company conducted a retrospective review and verication ofpast data and corrected the data on "management personnel by post" for 2023 disclosed in the 2023 Environmental, Social and Governance (ESG)Report (the original gure was 600).
Diversity and Inclusion
IndicatorUnit202220232024
Total number of employees
Person7,1136,5546,463By genderMalePerson5,0164,762 4,742FemalePerson2,0971,792 1,721By regionChinese mainlandPerson6,9436,376 6,313Hong Kong, Macao and TaiwanPerson21 0OverseasPerson168177 150By level
Management
Person433641 652Non-managementPerson6,6805,913 5,811By age≤30Person3,2302,889 2,62131-40Person3,2003,003 3,11341-50Person599590 654>50Person8472 75By academic qualicationsDoctoral and abovePerson4138 38MasterPerson315293 283BachelorPerson1,4511,539 1,517OthersPerson5,3064,684 4,625By postManagement
Person617312309R&DPerson1,4331,483 1,406ProductionPerson4,8824,332 4,424SalesPerson181139109OthersPerson-288215
Social Performance
Lost-time accident rate = lost-time injuries ÷ total hours worked x 1,000,000
The proportion of employees represented by a formally established Health and Safety Committee jointly governed by enterprise management andlabor unions = Total number of employees at sites with established safety committees / Total company workforce.
Employee Portrait
IndicatorUnit202220232024
Diversity and Inclusion
IndicatorUnit202220232024
Occupational health and safetyIndicatorUnit202220232024
105106
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Employee satisfaction/ engagement surveyresults
Points77.4077.2078.20Employee satisfaction/ engagement surveycoverage
%100100100Signing rate of labor contracts%100100100Coverage of social insurance%100100100Coverage rate of occupational healthcheck-up
%100100100Number of labor disputesNo.4510
Total training hours of all employees
Hour61,50373,99980,257.9Average training hours
Hour7.1211.2912. 71By gender
Average training hours for maleemployees
Hour7.3711.9413.50Average training hours for femaleemployees
Hour6.509.5710.55By level
Average training hours for managementHour6.8810.9622.65Average training hours for generalemployees
Hour7.1511.3312.20Annual employee training coverage%89.4153.27100By gender
Coverage of male employees%89.7254.2074.2Coverage of female employees%88.6750.7865.6By level
Coverage of management%98.1268.4992.6Coverage of general employees%88.3351.6270.1Average amount spent on training anddevelopment of full-time employees
CNY138.15193.82346.40
The scope of data statistics for 2021 was the Ganzhou Site. The scope for 2022 and 2023 included the Ganzhou and ZhenjiangSites. The scope for2024 covers the four major Sites in Ganzhou, Zhenjiang, Ganzhou New Energy, and Guangzhou.
The scope of data statistics for 2021 was the Ganzhou Site. The scope for 2022 and 2023 included the Ganzhou and Zhenjiang Sites. The scope for2024 includes the Ganzhou, Zhenjiang, Ganzhou New Energy, and Guangzhou Sites.The safety training coverage statistics primarily include on-sitesuppliers.
A decrease in the number of blue-collar internal referrals at Zhenjiang site leads to a decrease in total data for 2023.
Average recruitment cost = Total annual recruitment expenses ÷ Total number of recruits for the year.
Annual new recruitsPerson5,4135,7242,343By genderNumber of new male employeesPerson3,8484,3061,824Number of new female employeesPerson1,5651,418519By age
Number of new employees aged ≤30Person3,5523,7281,387Number of new employees aged 31-40Person1,7331,824843Number of new employees aged 41-50Person121142107Number of new employees aged>50Person7306By type
Social recruitmentPerson5,2725,5992,236Campus recruitmentPerson141125107By level
White collarPerson181176479General employeesPerson1,4453,0021,864Number of internal referrals
Person1,62646674Cost of hiring new employeesCNY1,465,796.721,550,013.014.009,055.05Average recruitment cost
CNY1,174.521,052.371,563.32
Average training hours for employees = total training hours + total number of employees; average training hours for employees by type = total traininghours for employees in that type + total number of employees in that type.
Annual employee training coverage = number of employees who participated in training and were on duty during the year + total number of employees;Annual employee training coverage by type = number of employees in that type who participated in training and were on duty during the year ÷ totalnumber of employees in that type.
During the reporting period, the company conducted retrospective verification of historical data and revised the 2023 "employee satisfaction/engagement survey results" originally disclosed in the 2023 Environmental, Social and Governance (ESG) Report (original data: 81.80).
Coverage of supplier safety training
Person1,4041,7623,822Coverage of supplier safety training
%100100 100
Occupational health and safety
IndicatorUnit202220232024
Vocational or skill-related training
IndicatorUnit202220232024
Protection of Employees' Rights and Interests
IndicatorUnit202220232024
Employee Recruitment
IndicatorUnit202220232024
107108
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Number of suppliers
No.244282263By region
Northeast ChinaNo.343North ChinaNo.8108East ChinaNo.124143123South ChinaNo.9010399Southwest ChinaNo.4511Central ChinaNo.131516Northwest ChinaNo.001Hong Kong, Macao, and TaiwanNo.000Overseas
No.222Proportion of targeted suppliers signingSupplier Code of Conduct
%-100100Proportion of target suppliers assessed forcorporate social responsibility
%100100100Proportion of purchasers trained insustainable procurement
%100100100Proportion of audited/assessed suppliersinvolved in improvement actions or capacitydevelopment
%100100100Number of due diligence audits for mineralsupply chain
No.101918Total number of key suppliersNo.213226233Total number of Tier 1 suppliersNo.217245234Total number of key Tier 1 suppliersNo.213226233Proportion of key Tier 1 supplier purchasesto total procurement expenditure
%98.4084.0594.73
Cumulative granted patentsNo.213304429Cumulative patent applicationsNo.330503721Annual granted patentsNo.5691136Annual patents applicationsNo.81152236R&D investmentCNY 100 million5.987.495.82Increase in R&D expenses%10.5125.25-22.34R&D expenses of total operating revenue%5.514.564.98Number of core technicianPerson111111Average number of years for launching allnew products
Year0.831.330.84Process innovation to reduce costs
CNY5,972,760127,718,00083,321,000
Proportion of purchases from key Tier 1 suppliers in total procurement expenditure = annual purchases from key Tier 1 suppliers for materialprocurement ÷ total annual purchases within the scope of supplier data statistics.
The Company counts the projects N that are closed each year, and calculates the time T1,T2...SOP for each project, and the average value is(T1+T2+...). ...TN, the average value is (T1+T2+... +TN)/N.
The scope of data statistics for cost reduction through process innovation covers the costs reduced by innovations in module and cell processes.
供应商的范围主要是材料供应商和采购金额大于1000万的供应商。
Overseas suppliers are not included in the statistics of Voron Technology's overseas entities, such as FEE, FEU and SIRO.
Proportion of employees covered byformal collective agreements on workingconditions
%100100100Proportion of employees covered by dulyelected employee representatives
%100100100Proportion of employees covered by LaborUnion or collective bargaining agreements
%100100100
number of suppliers that have undergone anESG risk assessment in the past 3 years
No.102618Number of Tier 1 suppliers that haveundergone an ESG risk assessment in thepast 3 years
No.493Number of key non-Tier 1 suppliers that haveundergone an ESG risk assessment in thepast 3 years
No.61715Number of suppliers classied as high ESGrisk
No.000
Labor Union Management
IndicatorUnit202220232024
Supplier Management
IndicatorUnit202220232024
Supplier Management
IndicatorUnit202220232024
科研与专业能力
IndicatorUnit202220232024
109110
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Total customer complaints
No.747987686Number of complaints closedNo.736946620Closure rate of customer complaints
%98.5395.8590.38
Information security incidentsoccurred
No.24 40Number of customer informationleakage incidents
No.000Loss caused by violation of relevantlaws and regulations
CNY 10,000000Obtained information securitycertications
/TISAX AL2
TISAX AL2TISAX AL3Industrial SecurityProtection LevelThree
TISAX AL2TISAX AL3Level Three ofInformation SecurityProtectionIndustrial SecurityProtection Level Four
The scope of data statistics includes the two major Sites in Ganzhou and Zhenjiang.
The statistics of total customer complaints come from the number of projects initiated by customer complaints.
Customer complaints closure rate = number of closures for the vear + total number of complaints. Unclosed complaints from the U.S. and Europeancustomers concern the cycle of returning defective products to the selling country, which a?ects the progress of problem analysis.
FundsCNY 10,000128109129Non-monetary (goods or materials)CNY 10,00041.935.3341.05No. of employee assisted throughEmployment Assistant program
Person141212
External donationCNY 10,000
16.2223Non-monetary (goods or materials)CNY 10,0001213.1531.11Number of employee volunteersPerson-1525Volunteer activitiesSession8912Number of volunteers participating in theactivities
Person-time
597289Employee volunteer service hoursHour252845
Appendix
Guidelines No. 14 of Shanghai Stock Exchange forSelf-Regulation of Listed Companies—SustainabilityReport (Trial) Index
Terms and Disclosure ContentsIssuesLocation
Chapter 1 General ProvisionsChapter 2 Framework for Sustainable Development Information Disclosure
Article 11
The Four Pillars of Sustainable Development InformationDisclosure
ESGManagement
Article 12 (1)Sustainable Development Governance StructureArticle 12 (2)Diversity and Skills of Sustainable Development GovernanceArticle 12 (3)Information Reporting MechanismArticle 12 (4)
Supervision and Management Mechanism for SustainableDevelopmentArticle 12 (5)
Integration of Sustainable Development into CorporateGovernance and Decision-MakingArticle 13
Formulation and Implementation of Sustainable DevelopmentStrategyArticle 14 (1)
Identication of Sustainable Development Risks andOpportunitiesArticle 14 (2)Denition and Matching of TimeframesArticle 15 (1)Methods for Strategic FormulationArticle 15 (2)Strategic Objectives and ImplementationArticle 15 (3)
Evaluation, Judgment, and Management of Identied Risksand OpportunitiesArticle 16 (1)Trends in Financial ConditionsArticle 16 (2)
Short, Medium, and Long-Term Trends in Business Resultsand Cash FlowsArticle 17
Adaptability of Strategy and Business Model to SustainableDevelopment-Related RisksArticle 18 (1)
Methods for Identifying Risks and Opportunities forSustainable DevelopmentArticle 18 (2)
Prioritization and Prioritization Criteria of Identied Risks andOpportunitiesArticle 18 (3)
Supervision Process and Mechanism for Identifying Risksand OpportunitiesArticle 18 (4)
Integration of Sustainable Development Risk and OpportunityManagement into Internal Management (if any)Article 19
Setting and Implementation Progress of SustainableDevelopment GoalsChapter 3 Environmental Information DisclosureSection 1Tackle ClimateChange
Article 20
Actively implement green and low-carbon development byimproving processes, upgrading production equipment,optimizing energy structures, improving production e?ciency,researching and developing green products and services, andimproving and strengthening management, to support theconstruction of a beautiful China.
Environment:
Responseto ClimateChange;CircularEconomy andGreen Products
Customer Site Size and Service
IndicatorUnit202220232024
Information Security
IndicatorUnit202220232024
Rural Revitalization
IndicatorUnit202220232024
Community Welfare
IndicatorUnit202220232024
111112
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Terms and Disclosure ContentsIssuesLocation
Section 1Tackle ClimateChange
Article 21 Information Disclosure on Addressing Climate Change
Tackling ClimateChange
Environment:
Response toClimate Change
Article 22 (1)
Assessment of the Impact of Climate Change on theCompany’s Strategy and Business ModelArticle 22 (2)Uncertainty Factors in Climate Change Adaptation AssessmentArticle 22 (3)Ability to Adjust to Climate Change AdaptationArticle 23 (1)
Climate-Adaptive Adjustments to Strategy, Business Model,and Resource AllocationArticle 23 (2)
Process Improvement and Equipment Update Measures toAddress Climate RisksArticle 23 (3)
Transformation Plan and Assumptions for Climate-RelatedRisks and OpportunitiesArticle 23 (4)Resource Support for Transformation PlansArticle 23 (5)Implementation Progress of Transformation PlansArticle 24
Requirements for accounting and disclosure of greenhousegas emissionsCarbon credit line and carbon emission tradingThird-party verication or authenticationArticle 25 (1)Greenhouse Gas Emissions by Business Unit or Facility
ESGPerformanceTableArticle 25 (2)Greenhouse Gas Emissions by Country or RegionArticle 25 (3)Greenhouse Gas Emissions by Source TypeArticle 26
Greenhouse Gas Emission Accounting Standards andMethodsArticle 27
Greenhouse Gas Emission Reduction Practices andAchievements
Environment:
Response toClimate ChangeGreenhouse gas emissions directly reduced by emissionreduction measuresParticipation and transaction of greenhouse gas emissionreduction projects (if any)Article 28
Progress in Research and Development of Carbon EmissionReduction Technologies and Products
Environment:
Response toClimate Change
Section 2PollutionPrevention andEcosystemProtection
Article 29
Integrate the construction of a beautiful China and ecologicalenvironment protection into the company’s developmentstrategy and corporate governance process. Based on theactual situation of the company’s production and operationcharacteristics, ecological environment managementrequirements, the impact on the environment, and theconsistent demands of the a?ected public, implement relevantenvironmental management systems, take e?ective measuresto fulll ecological environment protection responsibilities,prevent and control environmental pollution, and protectbiodiversity.
Environment:
EnvironmentalComplianceManagement;E?cientResourceUtilization;Ecosystem andBiodiversityProtectionArticle 30 (1)Pollution Discharge Information
PollutantEmissions
Environment:
E?cientResourceUtilizationArticle 30 (2)Operation of Pollution Treatment Technology and FacilitiesArticle 30 (3)Pollution Reduction Goals and MeasuresArticle 30 (4)Impact of Pollution Emissions on StakeholdersArticle 30 (5)Major Pollution Emission IncidentsArticle 31 (1)Total Amount and Density of Waste
WasteManagement
Environment:
E?cientResourceUtilizationArticle 31 (2)Waste Treatment Methods and DisposalArticle 31 (3)Waste Reduction Goals and Specic Measures
Terms and Disclosure ContentsIssuesLocation
Section 2PollutionPrevention andEcosystemProtection
Article 32 (1)
Withdrawal and Disposal Activities within the EcologicalConservation Red Line
Ecosystem andBiodiversityConservation
Environment:
Ecosystem andBiodiversityProtectionArticle 32 (2)
Protection and Restoration Measures for Ecological FunctionAreasArticle 32 (3)
Measures for the Protection of Wild Animals and Plants andTheir Natural HabitatsArticle 32 (4)
Measures for the Protection and Management of BiodiversityResourcesArticle 32 (5)
Actions and E?ects of Reducing the Impact of Products onEcosystemsArticle 33 (1)
Environmental Risk Assessment and Emergency ManagementMeasures
EnvironmentalComplianceManagement
Environment:
EnvironmentalComplianceManagementArticle 33 (2)
Details and Impact of Major Environmental Incidents During theReporting PeriodArticle 33 (3)
Administrative Penalties and Criminal Liability forEnvironmental Incidents
Section 3ResourceUtilization andCircular Economy
Article 34
Intensive and e?cient utilization of energy, water, rawmaterials, and other resources, strengthening resourcesaving management during the resource use process, andpromoting the reduction, reuse, and recycling of productionand circulation processes.
Environment:
E?cientResourceUtilization;CircularEconomy andGreen ProductsArticle 35 (1)Basic Information on Energy UseEnergy Utilization
Environment:
Response toClimate ChangeArticle 35 (2)Use of Clean Energy
Energy Utilization
Environment:
Response toClimate ChangeArticle 35 (3)Energy Saving Goals and Specic MeasuresArticle 36 (1)Water Resource Use
Water ResourceUtilization
Environment:
E?cientResourceUtilizationArticle 36 (2)Water Resource Saving Goals and Specic MeasuresArticle 37 (1)Goals and Plans for Circular Economy
Circular Economy
Environment:
CircularEconomy andGreen ProductsArticle 37 (2)Specic Measures for Circular EconomyArticle 37 (3)Progress and Achievements of Circular Economy
Chapter 4 Social Information Disclosure
Section 1RuralRevitalizationand SocialContributions
Article 38
Combine the company’s main business with theimplementation of rural revitalization and social public welfare,while ensuring the healthy development of the company andsustainable returns to investors, promote the sustainabledevelopment of the economy and society.
Society: SocialContributionand RuralRevitalizationArticle 39 (1)
Integration of Rural Revitalization and Poverty AlleviationStrategies into the Company’s Strategy
RuralRevitalization
Society: SocialContributionand RuralRevitalizationArticle 39 (2)Rural Revitalization Support MeasuresArticle 39 (3)Achievements of Rural Revitalization WorkArticle 40Public and Social Contributions
SocialContribution
Society: SocialContributionand RuralRevitalizationSection 2Innovation-Drivenand ScienticEthics
Article 41
Actively implement the innovation-driven developmentstrategy, continuously enhance innovation capabilities andcompetitiveness, comply with scientic ethics norms ininnovation decision-making and practice, respect the spirit ofscience, and give full play to the positive e?ects of scienceand technology.
Society: R&Dand InnovationDevelopment
113114
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Terms and Disclosure ContentsIssuesLocation
Section 2Innovation-Drivenand ScienticEthics
Article 42 (1)Strategy and Goals for Technology Innovation
Innovation-Driven
Society: R&Dand InnovationDevelopmentArticle 42 (2)Specic Situations of Technology InnovationArticle 42 (3)
Research and Development Progress and Achievements ofTechnology InnovationArticle 43 (1)Scientic Ethics Norms
Technology Ethics
Society: R&Dand InnovationDevelopmentArticle 43 (2)
System, Governance Structure, and Operation of ScienticEthicsArticle 43 (3)Behaviors Violating Scientic Ethics (if any)Article 43 (4)
Internal and External Training and Science Popularization ofScientic Ethics
Section 3Suppliers andCustomers
Article 44
While pursuing economic benets and protecting the interestsof shareholders, protect the interests of creditors, treatsuppliers, customers, and consumers with integrity.
Society:
Building aSustainableSupply Chain;Productand ServiceAssuranceArticle 45 (1)Supply Chain Risk Management
Supply ChainSecurity
Society:
Building aSustainableSupply ChainArticle 45 (2)Measures to Ensure Supply Chain SecurityArticle 46
Amount of overdue payment and its solution
Fair Treatment ofSMEs
Society:
Building aSustainableSupply ChainDisclosure requirements and solutions of overdue payment forsmall and medium-sized enterprisesArticle 47 (1)
Construction and Implementation of Product and ServiceQuality Management System
Product andService Safetyand Quality
Society: Productand ServiceAssuranceArticle 47 (2)
Quality Management and Product and Service QualityCerticationArticle 47 (3)
Handling and Impact of Product and Service Quality IncidentsDuring the Reporting PeriodArticle 47 (4)
Implementation of After-Sales Service and Product RecallSystem, and Customer Complaint HandlingArticle 48 (1)Data Security Management and Certication (if any)
Data Security andPrivacy Protection
Society:
InformationSecurityand PrivacyProtectionArticle 48 (2)Handling of Data Security Incidents (if any)Article 48 (3)Customer Privacy Protection SystemArticle 48 (4)Handling of Customer Privacy Leakage Incidents (if any)Section 4Employees
Article 49
Legally protect the legitimate rights and interests ofemployees, provide employees with healthy and safe workingconditions, pay employee salaries and social security on time,strengthen employee training, and establish a reasonable ande?ective employee grievance system.
Society:
EmployeeRights andDevelopmenArticle 50 (1)
Policies and Implementation in Employee Employment,Treatment, and Other Aspects
Employees
Society:
EmployeeRights andDevelopmenArticle 50 (2)Basic Situation of Occupational Health and SafetyArticle 50 (3)Basic Situation of Employee Career Development and TrainingChapter 5 Information Disclosure Related to Sustainable Development GovernanceSection 1SustainableDevelopmentGovernanceMechanisms
Article 51
Actively integrate the concept of sustainable developmentinto the company’s governance systems and processes incombination with the company’s actual situation and therequirements of this Guideline, further improve and perfectthe company’s governance mechanisms, and promote thecompany’s sustainable development.
ESGManagement
Terms and Disclosure ContentsIssuesLocation
Section 1SustainableDevelopmentGovernanceMechanisms
Article 52
Due Diligence on Identication and Response to SustainableDevelopment Risks
Due Diligence
Society:
Building aSustainableSupply ChainArticle 53 (1)
Construction and Implementation of Stakeholder CommunicationSystem
StakeholderCommunicationand Engagement
ESGManagement:
StakeholderCommunicationArticle 53 (2)Channels and Implementation of Feedback from Stakeholders
Section 2Business Conduct
Article 54
In business activities, it shall follow the principles ofvoluntariness, fairness, equality, and mutual benet, observesocial ethics and business ethics, shall not seek illegalinterests through bribery and other illegal activities, shall notinfringe upon others’ trademarks, patents, and copyrights andother intellectual property rights, and shall not engage in unfaircompetition.
CorporateGovernance:
UpholdingBusiness EthicsArticle 55 (1)Anti-Bribery and Anti-Corruption Management System
Anti-Bribery andAnti-Corruption
CorporateGovernance:
UpholdingBusiness EthicsArticle 55 (2)Anti-Bribery and Anti-Corruption Risk AssessmentArticle 55 (3)
Number of Employees Trained in Anti-Bribery and Anti-CorruptionArticle 55 (4)Handling of Bribery and Corruption Incidents (if any)Article 56 (1)Anti-Unfair Competition System and Construction
Anti-UnfairCompetition
CorporateGovernance:
UpholdingBusiness EthicsArticle 56 (2)Litigation (if caused by unfair competition)Chapter 6 Supplementary Provisions and Interpretations
Article 57Index tableAppendixArticle 58Report Attestation or Audit
Third PartyAssuranceReport
115116
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Statement ofuse
Faresis Energy has reported the information cited in this GRI content index for the period January 1, 2024through December 31, 2024 with reference to the GRI Standards.GRI used
GRI 1: Foundation 2021
GRI Index
GRI Standards/Other Resources
SerialNumber
Disclosure ItemLocationOmissionRequirements
Reasons for
Omission
Explanation
GRI 2:
GeneralDisclosures2021
2-1Organizational details
About FarasisEnergy2-2
Entities included in theorganization’s sustainabilityreporting
About This Report2-3
Reporting period, frequency andcontact point
About This Report2-4Restatements of information
ESG Performance
Table2-5External assurance
Third Party
Assurance Report2-6Activities, value chain and otherbusiness relationships
About Farasis
Energy2-7Employees
Employee Rights
and Development2-8Workers who are not employees
Employee Rights
and Development2-9
Governance structure andcomposition
Scientic and
Standardized
Governance2-10
Nomination and selection of thehighest governance body
Scientic and
Standardized
Governance2-11
Chair of the highest governancebody
Scientic and
Standardized
Governance2-12
Role of the highest governancebody in overseeing themanagement of impacts
Sustainable
Governance
Structure2-13
Delegation of responsibility formanaging impacts
Sustainable
Governance
Structure2-14
Role of the highest governancebody in sustainability reporting
Sustainable
Governance
Structure2-15Conicts of interest
Scientic and
Standardized
Governance2-16Communication of critical concerns
Scientic and
Standardized
Governance2-17
Collective knowledge of the highestgovernance body
Sustainable
Governance
Structure2-18
Evaluation of the performance ofthe highest governance body
Omitted
2-18-a2-18-b2-18-c
ConfidentialityRestrictions
Due toconfidentialityrequirements,the informationis temporarily notdisclosed2-19Remuneration policiesOmitted
2-19-a2-19-b
ConfidentialityRestrictions
Due to condentialityrequirements,the informationis temporarily notdisclosed
GRI Standards/Other Resources
SerialNumber
Disclosure ItemLocationOmissionRequirements
Reasons forOmission
Explanation
GRI 2:
GeneralDisclosures2021
2-20Process to determine remunerationOmitted
2-20-a2-20-b
ConfidentialityRestrictions
Due to condentialityrequirements,the informationis temporarily notdisclosed2-21Annual total compensation ratioOmitted
2-21-a2-21-b2-21-c
ConfidentialityRestrictions
Due to condentialityrequirements,the informationis temporarily notdisclosed2-22Statement on sustainabledevelopment strategy
SustainableDevelopmentFramework2-23Policy commitments
Upholding BusinessEthics; Building aSustainable SupplyChain2-24Embedding policy commitments
Upholding BusinessEthics; Building aSustainable SupplyChain2-25Processes to remediate negativeimpacts
Upholding BusinessEthics2-26Mechanisms for seeking advice andraising concerns
Upholding BusinessEthics2-27Compliance with laws andregulations
Upholding BusinessEthics2-28Membership associationsAwards and Honors2-29Approach to stakeholderengagement
StakeholderCommunication2-30Collective bargaining agreementsOmitted
2-30-a2-30-b
ConfidentialityRestrictions
Due to condentialityrequirements,the informationis temporarily notdisclosedGRI 3:
Material Topics2021
3-1Process to determine materialtopics
Materiality Analysis3-2List of material topicsMateriality Analysis3-3Management of material topics
Sustainable Risk
ManagementGRI 201:
EconomicPerformance2016
201-1
Direct economic value generatedand distributed
Faresis Energy
2024 Annual Report201-2
Financial implications and otherrisks and opportunities due toclimate change
Response to
Climate Change201-3
Dened benet plan obligations andother retirement plans
Employee Rights
and Development201-4
Financial assistance received fromgovernment
Omitted
201-4-a201-4-b201-4-c
ConfidentialityRestrictions
Due to condentialityrequirements,the informationis temporarily notdisclosedGRI 202:
MarketPresence 2016
202-1
Ratios of standard entry levelwage by gender compared to localminimum wage
Omitted
202-1-a202-1-b202-1-c202-1-d
ConfidentialityRestrictions
Due to condentialityrequirements,the informationis temporarily notdisclosed202-2
Proportion of senior managementhired from the local community
Omitted
202-2-a202-2-b202-2-c202-2-d
Incomplete/LackingInformation
The information hasnot been compiledyet and cannot bedisclosed in full
117118
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
GRI Standards/Other Resources
SerialNumber
Disclosure ItemLocationOmissionRequirements
Reasons forOmission
Explanation
GRI 303:
Water andE?uents 2018
303-1
Interactions with water as a sharedresource
E?cient ResourceUtilization303-2
Management of water discharge-related impacts
E?cient ResourceUtilization303-3Water withdrawalOmitted
303-3-a303-3-b303-3-c303-3-d
Incomplete/LackingInformation
The information hasnot been compiledyet and cannot bedisclosed in full303-4Water dischargeOmitted
303-4-a303-4-b303-4-c303-4-d
Incomplete/LackingInformation
The information hasnot been compiledyet and cannot bedisclosed in full303-5Water consumption
ESG PerformanceTable
GRI 304:
Biodiversity2016
304-1
Operational sites owned, leased,managed in, or adjacent to,protected areas and areas of highbiodiversity value outside protectedareas
Omitted304-1
NotApplicable
During the reportingperiod, the Companydid not have anyoperating siteslocated in or nearbiodiversity-rich areas304-2
Signicant impacts of activities,products and services on biodiversity
Omitted
304-2-a304-2-b
NotApplicable
During the reportingperiod, the Companydid not have anyoperating siteslocated in or nearbiodiversity-rich areas304-3Habitats protected or restoredOmitted
304-3-a304-3-b304-3-c304-3-d
NotApplicable
During the reportingperiod, the Companydid not have anyoperating siteslocated in or nearbiodiversity-rich areas304-4
IUCN Red List species andnational conservation list specieswith habitats in areas a?ected byoperations
Omitted304-4
NotApplicable
During the reportingperiod, the Companydid not have anyoperating siteslocated in or nearbiodiversity-rich areas
GRI 305:
Emissions2016
305-1Direct (Scope 1) GHG emissions
ESG PerformanceTable305-2
305-2 Energy indirect (Scope 2)GHG emissions
ESG PerformanceTable305-3
305-3 Other indirect (Scope 3)GHG emissions
ESG PerformanceTable305-4GHG emissions intensity
ESG PerformanceTable305-5Reduction of GHG emissions
ESG PerformanceTable305-6
Emissions of ozone-depletingsubstances (ODS)
Omitted
305-6-a305-6-b305-6-c305-6-d
NotApplicable
During the reportingperiod, we did nothave signicantemissions of relevantrefrigerants or otherozone-depletingsubstances (ODS),and therefore did notquantify them305-7
Nitrogen oxides (NOx), sulfuroxides (SOx), and other signicantair emissions
ESG PerformanceTable
GRI Standards/Other Resources
SerialNumber
Disclosure ItemLocationOmissionRequirements
Reasons forOmission
ExplanationGRI 203:
IndirectEconomicImpacts 2016
203-1
Infrastructure investments andservices supported
Social Contributionand RuralRevitalization203-2
Signicant indirect economicimpacts
Sustainable RiskManagementGRI 204:
ProcurementPractices 2016
204-1
Proportion of spending on localsuppliers
Omitted
204-1-a204-1-b204-1-c
ConfidentialityRestrictions
Due to condentialityrequirements,the informationis temporarily notdisclosedGRI 205: Anti-corruption 2016
205-1
Operations assessed for risksrelated to corruption
Upholding BusinessEthics205-2
Communication and trainingabout anti-corruption policies andprocedures
Upholding BusinessEthics205-3
Conrmed incidents of corruptionand actions taken
Upholding BusinessEthicsGRI 206: Anti-competitiveBehavior 2016
206-1
Legal actions for anti-competitivebehavior, anti-trust, and monopolypractices
Upholding BusinessEthics
GRI 207:
Tax 2019
207-1Approach to tax
Scientic andStandardizedGovernance207-2
Tax governance, control, and riskmanagement
Scientic andStandardizedGovernance207-3
Stakeholder engagement andmanagement of concerns related totax
Sustainable RiskManagement207-4Country-by-country reportingOmitted
207-4-a207-4-b
Incomplete/LackingInformation
The information hasnot been compiledyet and cannot bedisclosed in fullGRI 301:
Materials 2016
301-1Materials used by weight or volume
Circular Economyand GreenProducts301-2
Recycled input materials used
Circular Economyand GreenProducts301-3
Reclaimed products and theirpackaging materials
Circular Economyand GreenProducts
GRI 302:
Energy 2016
302-1
Energy consumption within theorganization
ESG PerformanceTable302-2
Energy consumption outside of theorganization
ESG PerformanceTable302-3Energy intensity
ESG PerformanceTable302-4Reduction of energy consumption
ESG PerformanceTable302-5
Reductions in energyrequirements of products andservices
Omitted
302-5-a302-5-b
Incomplete/LackingInformation
The information hasnot been compiledyet and cannot bedisclosed in full
119120
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
GRI Standards/Other Resources
SerialNumber
Disclosure ItemLocationOmissionRequirements
Reasons for
Omission
Explanation
GRI 405:
Diversityand EqualOpportunity2016
405-1
Diversity of governance bodies andemployees
Employee Rightsand Development405-2
Ratio of basic salary andremuneration of women to men
Omitted
405-2-a405-2-b
ConfidentialityRestrictions
Due to condentialityrequirements,the informationis temporarily notdisclosedGRI 406: Non-discrimination2016
406-1
Incidents of discrimination andcorrective actions taken
Employee Rightsand DevelopmentGRI 407:
Freedom ofAssociationand CollectiveBargaining2016
407-1
Operations and suppliers inwhich the right to freedomof association and collectivebargaining may be at risk
Omitted
407-1-a407-1-b
ConfidentialityRestrictions
Due to condentialityrequirements,the informationis temporarily notdisclosedGRI 408:
Child Labor2016
408-1
Operations and suppliers atsignicant risk for incidents of childlabor
Building aSustainable SupplyChainGRI 409:
Forced orCompulsoryLabor 2016
409-1
Operations and suppliers atsignificant risk for incidents offorced or compulsory labor
Building aSustainable SupplyChainGRI 410:
SecurityPractices 2016
410-1
Security personnel trained inhuman rights policies or procedures
Omitted
410-1-a410-1-b
Incomplete/LackingInformation
The information hasnot been compiledyet and cannot bedisclosed in fullGRI 411:
Rights ofIndigenousPeoples 2016
411-1Incidents of violations involvingrights of indigenous peoples
Omitted
411-1-a411-1-b
Incomplete/LackingInformation
The information hasnot been compiledyet and cannot bedisclosed in fullGRI 413:
LocalCommunities2016
413-1
Operations with local communityengagement, impact assessments,and development programs
SocialContributionand RuralRevitalization413-2
Operations with signicant actualand potential negative impacts onlocal communities
SocialContributionand RuralRevitalizationGRI 414:
Supplier SocialAssessment2016
414-1
New suppliers that werescreened using social criteria
Building aSustainable SupplyChain414-2
Negative social impacts in thesupply chain and actions taken
Building aSustainable SupplyChain415-1Political contributionsOmitted
415-1-a415-1-b
NotApplicable
During the reportingperiod, the companydid not engage in anypolitical donationsGRI 416:
CustomerHealth andSafety 2016
416-1
Assessment of the health andsafety impacts of product andservice categories
Product and ServiceAssurance416-2
Incidents of non-complianceconcerning the health and safetyimpacts of products and services
Product and ServiceAssuranceGRI 417:
Marketing andLabeling 2016
417-1
Requirements for product andservice information and labeling
Product and ServiceAssurance417-2
Incidents of non-complianceconcerning product and serviceinformation and labeling
Product and ServiceAssurance417-3
Incidents of non-complianceconcerning marketingcommunications
Product and ServiceAssurance
GRI 418:
CustomerPrivacy 2016
418-1
Substantiated complaintsconcerning breaches of customerprivacy and losses of customerdata
InformationSecurityand PrivacyProtection
GRI Standards/Other Resources
SerialNumber
Disclosure ItemLocationOmissionRequirements
Reasons for
Omission
Explanation
GRI 306:
Waste 2020
306-1
Waste generation and signicantwaste-related impacts
E?cient ResourceUtilization306-2
Management of signicant waste-related impacts
E?cient ResourceUtilization306-3Waste generated
E?cient ResourceUtilization306-4Waste diverted from disposal
E?cient ResourceUtilization306-5Waste directed to disposalOmitted
306-5-a306-5-b306-5-c306-5-d306-5-e
Incomplete/LackingInformation
The information hasnot been compiledyet and cannot bedisclosed in fullGRI 308:
SupplierEnvironmentalAssessment2016
308-1
New suppliers that were screenedusing environmental criteria
Building aSustainable SupplyChain308-2
Negative environmental impacts inthe supply chain and actions taken
Building aSustainable SupplyChainGRI 401:
Employment2016
401-1
New employee hires andemployee turnover
ESG PerformanceTable401-2
Benets provided to full-timeemployees that are not provided totemporary or part-time employees
Employee Rightsand Development401-3Parental leave
Employee Rightsand DevelopmentGRI 402:
Labor/ManagementRelations 2016
402-1
Minimum notice periods regardingoperational changes
Omitted
402-1-a402-1-b
NotApplicable
No operationalchanges occurredduring the reportingperiod
GRI 403:
OccupationalHealth andSafety 2018
403-1
Occupational health and safetymanagement system
Employee Rightsand Development403-2
Hazard identication, riskassessment, and incidentinvestigation
Employee Rightsand Development403-3Occupational health services
Employee Rightsand Development403-4
Worker participation, consultation,and communication on occupationalhealth and safety
Employee Rightsand Development403-5
Worker training on occupationalhealth and safety
Employee Rightsand Development403-6Promotion of worker health
Employee Rightsand Development403-7
Prevention and mitigation ofoccupational health and safetyimpacts directly linked by businessrelationships
Employee Rightsand Development403-8
Workers covered by anoccupational health and safetymanagement system
Employee Rightsand Development403-9Work-related injuries
ESG PerformanceTable403-10Work-related ill health
Employee Rightsand DevelopmentGRI 404:
Training andEducation 2016
404-1
Average hours of training per yearper employee
Employee Rightsand Development404-2
Programs for upgradingemployee skills and transitionassistance programs
Employee Rightsand Development404-3
Percentage of employees receivingregular performance and careerdevelopment reviews
Employee Rightsand Development
121122
About This ReportAbout Farasis EnergyESG ManagementCorporate GovernanceEnvironmentSocietyAppendixThird Party Assurance Report
Third Party Assurance Report
Independent Assurance StatementIntroduction
Methodology
Assurance Standard
Adherence to the AA1000AP AccountAbility Principles
Responsibilities
Limitations
Assurance Objectives
Assurance Criteria
T?V Rheinland (Shanghai) Co., Ltd., a member of T?V Rheinland Group (hereinafter "T?V Rheinland" or "We"), was entrustedby Farasis Energy (Ganzhou) Co., Ltd. (hereinafter "Farasis" or "the Company") to conduct an independent third-party assuranceof 2024 Environmental, Social and Corporate Governance Report of Farasis (hereinafter, "ESG Report"). The report disclosedsustainability information for the scal year 2024 (January 1, 2024 to December 31, 2024) of Farasis.
Our assurance activities and procedures include:
? Inquiring management and those personnel responsible for collecting and aggregating sustainability performanceinformation to understand the management processes, systems, and controls for sustainability performance information.? Reviewing and assessing the availability, adequacy, and relevance of performance information based on samplingprinciples.? Applying analysis program to assess the accuracy of the information available for performance data.? Collecting and examining the supporting evidence of available performance information to assess the extent to which the
T?V Rheinland undertook assurance work for the sustainability information disclosed in ESG report of Farasis inaccordance with theAccountAbility AA1000 Assurance Standard v3 (AA1000AS v3), Type 1 and Moderate level.
Inclusivity The key stakeholders identified by Farasis included shareholders and investors, government and regulators,management and employees, customers, partners (suppliers, contractors), and community partners (media, industry organizations,social organizations). Evidence showed that in 2024, the company conducted a questionnaire survey of internal and externalstakeholders, covering topics such as pollutant emissions, water resource utilization, response to climate change, and supply chainsecurity. The results of the survey and analysis could provide a reference for the evaluation of materiality issues.Materiality Evidence indicated that in 2024, Farasis has carried out a materiality issue assessment process. Based on the analysisof regulatory policies, industry best practices, annual development plans, corporate strategies, etc., combined with stakeholderquestionnaire survey and analysis, new guidelines of the exchange, and expert evaluation opinions, the company identifiedsustainability issues, and evaluated and prioritized the importance of these issues from two dimensions: importance to stakeholdersand importance to the company. The materiality issues matrix chart showed the key issues for the year (e.g., innovation-driven,product and service safety and quality, employee compensation and benefits, data security and customer privacy protection,environmental compliance management, employee health and safety, energy use, etc.). The company's senior managementreviewed and approved the results of the assessment of the materiality issues. We recommend that Farasis conduct a nancialmateriality assessment of identied ESG issues.Responsiveness The communication channels between Farasis and its major stakeholders were diversified, including but notlimited to investor service hotlines, government meetings, employee training, employee grievances and suggestion boxes, customervisits and customer service, supplier audit and training, whistleblowing mechanism, social welfare, etc. Evidence indicated thatin 2024, the company has systematically built a framework strategy based on the concept of "EMPOWER Empowerment" anda sustainable development action matrix in ten key areas.The report disclosed data on key performance indicators (such asgreenhouse gas emissions (including Scope 1, 2, and 3 emissions), emissions and waste, energy consumption, water resources,employee employment and diversity, occupational health and safety, suppliers, etc.) to respond to significant concerns of itsstakeholders, and these performance gures were historically comparable.Impact Evidence indicated that in 2024, Farasis established an ESG strategy and management committee. The companyconducted
compliance evaluation and risk management focusing on environment and safety, labour and employment, information security,intellectual property protection, energy management and product compliance, and combinedoperation management and internalcontrol systems to control the risks in its own operations and the upstream and downstream of the value chain and implementeda closed loop of rectication. Evidence showed that in 2024, the company issued global product compliance guidelines to driverestricted substances and conformity assessments. The company conducted due diligence on the conict mineral in supply chain.The report disclosed the analysis of the impacts, risks and opportunities of material issues, including climate risks(physical and transitional), the scope and nature of impacts, and response to the United Nations SustainableDevelopment Goals (SDGs). Evidence indicated that in 2024, Farasis has taken relevant measures to reduce the impacton the company's operations and the upstream and downstream of the value chain.
Farasis is not only responsible for the preparation of ESG report and the collection and submission of sustainability informationin accordance with applicable reporting standards, but also has the obligation to implement and maintain e?ective internal controlof information and data to support the report compilation process.T?V Rheinland is a global service provider that provides CSRand sustainability services in more than 65 countries, with experienced and technical expertise in the areas of environment, CSR,sustainability and stakeholder engagement. T?V Rheinland Assurance team follows the T?V Rheinland Global Business EthicsCompliance Policy and Procedures, covering the principles of integrity compliance and conict of interest. Therefore, our assuranceservices are based on the principles of independence and impartiality, and we do not participate in the writing and preparation of thereport of Farasis. It is the duty of T?V Rheinland to carry out independent assurance in accordance with the assurance agreementand the agreed scope of assurance work, and to make independent and impartial judgments on ESG reporting.
Based on the above assurance procedures and methodology performed and the evidence obtained, we conclude that there are noinstances or information that would be contrary to the following statements:
? 2024 ESG Report of Farasis and its contents are in adherence to the AA1000AP AccountAbility Principlesand align with theinformation disclosure requirements of GRI Standards.? Farasis has implemented processes to collect and aggregate performance information and data related to materiality issues withinthe reporting boundary, and the company's management practices have also shown that the company conducted materiality analysisand evaluation of issues.? The sustainability-related information and performance disclosed in the report have been assessed and supported by documentaryevidence.T?V Rheinland shall not bear any liability or responsibility to a third party for perception and decision on Farasis based on thisAssurance Statement.
The purpose of the assurance was to provide management of Farasis and stakeholders concerned with the company's sustainabilityinformation and performance to provide an independent view of the assurance, including assessment of whether the content of thereport adhered to the AA1000AP (2018) Assurance Principles (including inclusivity, materiality, responsiveness and impact), andverication of sustainability information disclosure.
The following assessment criteria were used in undertaking the work:
? Self-Regulatory Guidelines for Listed Companies on the Shanghai Stock Exchange No. 14 – Sustainability Report (Trial)? Shanghai Stock Exchange, Self-Regulatory Guidelines for Listed Companies on the Shanghai Stock Exchange No. 4 - Preparationof Sustainability Reports? Sustainability Reporting Standards (GRI Standards) of Global Sustainability Standards Board (GSSB)? The United Nations Sustainable Development Goals (UN SDGs)? Adherence to the AA1000 AP AccountAbility Principles, i.e.,Inclusivity, Materiality, Responsiveness, and Impact
Daniel PanTechnical Manager of Corporate
Sustainability ServicesT?V Rheinland (Shanghai) Co., LtdShanghai, China, April 15, 2025
relevant evidence and information related to the scope of the assurance in the sustainability report supports and adheres tothe AA1000AP AccountAbility Principles.? Reporting assurance observations or recommendations to give the company's management an opportunity to correcterrors before the assurance process is completed.
About This ReportMessage from the ChairmanAbout Farasis EnergyESG Management