Xiamen Jihong Technology Co., Ltd.Environmental, Social and GovernanceReport 2025

March 2026

目录

6.Governance:

Stable Operation

6.1 Corporate Governance

6.2 Risk Management

6.3 Business Ethics

7.Appendices

7.1 HKEX - Environmental,Social and GovernanceReporting Guide Index

7.2 Shenzhen Stock ExchangeESG Index

7.3 Feedback Form

3.Sustainability Management

3.1 ESG Governance

3.2 ESG Strategy

3.3 ESG Risk and Opportunity Management

3.4 ESG Indicators and Targets

4.Environment: Green Future

4.1 Green Production

4.2 Green Office

4.3 Climate Change

4.4 Biodiversity

5.Social: Giving Back to Society

5.1 Product Management

5.2 Supply Chain Management

5.3 Health and Safety

5.4 Talent Empowerment

5.5 Public Welfare and Charity

About This ReportBoard of Directors StatementMessage from the Chairman

1.About Us

1.1 Company Profile

1.2 Organizational Structure

1.3 Milestones

1.4 Annual ESG Performance Highlights

1.5 Annual Honors and Awards

2.Double Materiality Assessment

2.1 Identification of Material Issues

2.2 Impact Materiality Assessment

2.3 Financial Materiality Assessment

2.4 Materiality Assessment Results

This is the fourth Environmental, Social and Governance (ESG) Report issued by Xiamen JihongTechnology Co., Ltd. Aligned with the principles of objectivity, standardization, transparency, andcomprehensiveness, it outlines Jihong Group’s endeavors and accomplishments in fosteringcomprehensive, coordinated, and sustainable development.

Reporting Period

The report covers the period from January 1, 2025, toDecember 31, 2025, while also incorporating relevantinformation from preceding years.

AddressingTo enhance clarity and readability, throughout thisreport, “Xiamen Jihong Technology Co., Ltd” isinterchangeably referred to as “Jihong Group”, “theCompany”, and “we.”

Data DescriptionThe financial data and the financial and audit reportsreferenced in this report are detailed in the XiamenJihong Technology Co., Ltd. 2025 Annual Report.Other data is primarily sourced from Jihong Group’sinternal statistics. Unless otherwise specified, allcurrency values presented in this report aredenominated in the Chinese Renminbi RMB.

Report ScopeUnless otherwise specified, the organizational scopeof this report includes Xiamen Jihong Technology Co.,Ltd., as well as its branch offices and wholly-ownedsubsidiaries. It is consistent with the consolidatedreporting scope specified in Jihong Group’s annualreport.

ReferencesThis report extensively referenced the Environmental,Social and Governance Reporting Code in AppendixC2 of the Hong Kong Exchanges and ClearingMarket’s Main Board Listing Rules, the ShenzhenStock Exchange’s Self-Regulatory Guidelines forListed Companies No.1 - Standardized Operations forMain Board Listed Companies and Listed CompaniesSelf-Regulatory Guidelines No. 17 - SustainableDevelopment Report (Trial); In preparing this report,we also consulted the Global Sustainability StandardsBoard’s GRI Standards 2021 and the InternationalOrganization for Standardization’s ISO 26000 -Guidance on Social Responsibility.

Report AvailabilityThe electronic version of this report is available forviewing or downloading on Jihong Group’s website(http://www.jihong.cn) and the Shenzhen StockExchange website (http://www.szse.cn).

Reporting PrinciplesMateriality Principle: The report discloses the processof identifying and assessing material ESG issues,focusing on those that exert significant impacts on theCompany. For detailed information, please refer to thesection “Dual Materiality Assessment.”Quantification Principle: Key performance indicators(KPIs) covering environmental and social dimensionsare presented in quantifiable formats. For eachquantitative data point, the report clearly explains thereference standards, calculation methods, andcoefficient sources.Principle of Balance: The report maintains an impartialand objective stance, comprehensively presenting ESGperformance throughout the reporting period. It fullycovers both positive achievements and negativeimpacts, and avoids selective disclosure or omissionsthat may distort readers’ judgment.Principle of Consistency: Unless otherwise specified,the data collection methods and statistical calibers inthis report remain consistent with previous reportingyears.

At Jihong Group, the Board of Directors, as the Company's ultimate governing and decision-making body on ESG matters, has delegated full responsibility for ESGstrategy and reporting to the Strategy Committee. The Board of Directors is charged with approving and providing ongoing oversight of key ESG issues, and with evaluatingESG risks to ensure the robustness of the Company's risk control and internal monitoring systems. In addition, the Company has established an ESG Decision-MakingDepartment to drive implementation, coordinate cross-functional activities, and manage day-to-day ESG operations, thereby ensuring effective execution of ESG initiatives.Taking into account the industry profile, stage of development, business model, and development strategy, the Company regularly evaluates material ESG issues andsubmits the results to the board for review. Issues the board determines to be material with respect to ESG risks and opportunities are incorporated into the Company’soverall strategy, and the effectiveness of related mitigation and management measures is subject to continuous monitoring.The Company also plans to establish targets in key ESG areas—including pollutant emissions, energy consumption management, water resource consumptionmanagement, and carbon emissions. We aim to integrate ESG management performance into daily operational objectives to strengthen ESG governance.

This report provides a detailed disclosure t of Jihong Group’s ESG progress and achievements in 2025. It has been reviewed and approved by the Board of Directors.The Board and all Directors confirm that, to the best of their knowledge, the content of this report is free of any false records, misleading statements, or material omissions.Each director assumes individual and joint responsibility for ensuring the truthfulness, accuracy, and completeness of this report.

Message from the ChairmanIn 2025, the global process of sustainability has continued to accelerate. The deepintegration of the green economy and digital transformation is profoundly reshaping theglobal industrial landscape. The Company firmly adheres to its strategic positioning ofgreen development and dual-engine drive, fully integrating ESG principles into corporatestrategy. With technological innovation as the driving force, the Company promotesgreen transformation to a higher level. Meanwhile, guided by a global vision, theCompany actively expands into emerging markets, continuously enhancingcomprehensive competitiveness and industry leadership in packaging and cross-bordersocial e-commerce.In terms of green sustainability, the Company strengthens environmentalgovernance and establishes a green production system covering the entire value chain.By further optimizing environmental processes, the Company promotes low-carbondevelopment throughout the full life cycle of packaging products, from design andmanufacturing to recycling. Through active implementation of energy conservation andemission reduction strategies, the Company realizes intelligent and refined managementof energy consumption, carbon emissions and resource utilization. In 2025, theCompany obtained an additional provincial-level green factory certification, furtherconsolidating its benchmark position in the green development of the industrial chain.In terms of social responsibility, the Company continues to adhere to a customer-centric and quality-based philosophy, constantly improving product safety andenvironmental standards to fully meet customers’ evolving demand for green products.By deepening ESG collaborative management mechanisms in the supply chain, theCompany promotes the formation of a transparent, resilient, and sustainable businessecosystem. In talent development, the Company is committed to building a diverse andinclusive development platform, optimizing career development channels and enhancingemployees’ sense of belonging and value recognition. In 2025, all production bases haveobtained ISO 9001 Quality Management System certification, reflecting the Company’srigorous standards and strict requirements in quality management.

In terms of corporate governance, the Company continuously improves its ESGgovernance structure, deeply integrating ESG targets into strategic decision-makingand daily operations. The Company has established an efficient governance mechanismled by the Shareholders’ Meeting, the Board of Directors and senior management toensure compliant, transparent and sustainable operation. Meanwhile, the Company hasbuilt a comprehensive risk control system covering supply chain management and datasecurity. The Company promotes an integrity culture and strengthens complianceawareness among all employees, further consolidating the foundation of corporategovernance.

Looking ahead to 2026, the Company will take green innovation as the corestrategic focus. The Company will accelerate the deep integration of intelligentmanufacturing and AI technology into various business sectors, driving the dual enginesof green packaging and cross-border social e-commerce into a new stage of high-quality and coordinated development. The Company will actively expand its globalcooperation network, deepen market presence in countries and regions along the Beltand Road Initiative, empower Chinese brands to go global, and build a new sustainabilitysystem with global competitiveness. Going forward, the Company is ready to worktogether with partners from all sectors to jointly create a new blueprint for green,intelligent, and inclusive high-quality development.

1 About Us

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Xiamen Jihong Technology Co., Ltd.

Xiamen Jihong Technology Co., Ltd. (the “Company”)is a leading firm that pursues technological innovation,model innovation and digital intelligence. The Company hasdeveloped a dual-business model encompassing cross-border social e-commerce and paper-based FMCGpackaging solutions. Through years of focused investmentand market cultivation, the Company has achievedsignificant scale advantages in its core businesses. Itspaper-based FMCG packaging is the market leader inChina by market share, while its cross-border social e-commerce operations rank among the leading players inChina’s B2C cross-border social e-commerce sector,together forming a sustainable dual-engine growth model.

On 27 May 2025, the Company completed an H-ShareIPO and was listed on the Main Board of the Hong KongStock Exchange. This listing achieved several notable firsts:

Jihong became the first mainland company in thecombined sectors of cross-border social e-commerce andFMCG packaging to achieve A+H dual listing, the firstcompany from Xiamen to secure A+H status, and the firstHong Kong-listed issuer to have its shares included in theStock Connect on the day of listing.

Shareholders’Meeting

GeneralManager

Board ofDirectors

BoardSecretaryAuditDepartme

nt

SecuritiesDepartment

GeneralManager's

Office

Marketing

Center

Operations Center

R&DInnovation

Center

Procurement Center

FinanceCenter

HumanResourcesCenter

Information Center

Sustainabi

lityDepartme

nt

AuditCommittee

NominationCommittee

Remuneration

andAssessmentCommittee

StrategyCommittee

Organizational Structure 2025 at Jihong Group

Build ten brands with globalinfluence.We have always stuck tothe principle of “surviving withquality and developing withcredit”, and are dedicated tobuilding ten brands with globalinfluence to provide high-quality products and extremelyconvenient services for globalconsumers.Enable partners to achieveboth material and spiritualprosperity.

To realize employees’self-value, we strive toestablish a fair and impartialremuneration incentivemanagement system toachieve both material andspiritual prosperity andfacilitate mutual progress anddevelopment for individualsand the Company.

Corporate vision

Data-centric, technology-driven, outcome-focusedand all are operators.We strengthen the operatorthinking and embed it into ouroperation. We upgrade ourtechnologies driven bybusiness procedures and thenimprove our businessorganizing capability to createdigitalized and data-centricassets which are transformedto enhance our reproducingcapability with big data, AIand other technologies. Usingdata, we reinforce the digitaloperations and innovationcapabilities of our teamsthrough the circulation andaccumulation of production,processing, using andreproduction to control qualityand cost in a strict manner.Thus, we achieve high-frequency iteration and rapidrevolution of our organizationwhich is data-centric,technology-driven, andoutcome-focused.

Businessphilosophy

Focusing onentrepreneurship and forgingahead through difficulties.Running an enterprise is muchlike rowing a boat against thecurrent; if we let up evenslightly then we risk undoingall of the progress we havemade. We should remaincommitted to hard work asentrepreneurs and makeheadway to maintain ourvitality and competitiveness.Simplicity, Perfection,efficient collaboration, goal-oriented effort, andaccountability for results.We manage to form ahorizontal organizationalstructure, build shoulder-to-shoulder trust and set unifiedobjectives to removeestrangement and rift amongemployees, which helps uswork together towards clearand achieve the goal of thecompany's long-termsustainable development.

Corporate

culture

March2018

Jihong Group expanded theR&D team, established adata analysis team, andimplemented managementsystems for workflow,product selection, financialsettlement, order tracking,and warehousing.

December

1996Jihong Group’s predecessor,Xiamen Zhengqi, wasestablished, specializing ingraphic design andadvertising planning.

December

2003Jihong Group was officiallyfounded and focused on thepackaging industry, buildingten factories across Chinato offer comprehensivemarketing and packagingdesign services to leadingFMCG companies.

July2016Jihong Group released itsIPO on the Shenzhen StockExchange.

2017Giikin was established toexpand our cross-border e-commerce business inSoutheast Asia, whichopened up a new avenue ofgrowth for us.Jihong Group consecutivelyentered the markets of HongKong, Japan, Thailand,Malaysia, and Singapore.

December

2017ihong Group upgraded thee-commerce managementsystem v2.0.

2020Jihong Group upgraded theworkflow managementsystem V3.0

2019

Jihong Group madesignificant efforts topromote brand strategy andbuild corporate culture.

March2019Jihong Group formed abrand operation team.

May2019Jihong Group launched thee-commerce managementsystem v3.0.

November

2019Jihong Group formed aplatform e-commerce team.

Early2020Jihong Group initiated afull-scale drive towardsenterprise automation andintelligence, which involvedrolling out a big data system,an intelligent productselection system, and anautomated advertisingsystem.

2022Jihong Group madesignificant progress inachieving our digital strategyobjectives by implementingdecision support systems,such as Smart Companion,Boss Assistant, IndicatorMonitoring, and Talent Map.1513

2021Jihong Group tried tobroaden its brand portfolioby tapping into new marketssuch as lingerie and hometextiles.

July2021Jihong Group established astrategic partnership withHuawei Cloud. Thispartnership enabled it toutilize advanced AItechnology and computingresources to implementintelligent systems for bigdata analytics, ad designand delivery.

November

2021

Jihong Group entered theEastern European market.

2022Jihong Group establishedcross-border electric bicycleand beauty product brands.

June2022Jihong Group rolled out anautomated operationsmanagement system on athird-party platform, whichhas contributed to theexponential growth of orderson that platform.

September

2024The current Sheikh of Ras AlKhaimah in the United ArabEmirates, Sheikh Saoud,visited the company’sleadership, and both sidesengaged in in-depthdiscussions on cooperationchannels, investmentprojects, and marketexpansion.

2022

Jihong Group upgraded thewarehousing system andachieved fully automatedand intelligent operations.

January2023Jihong Group integrated theChatGPT API to empowercross-border e-commercebusinesses in areas such asAI-driven product selection,the creation of graphic andvideo advertising materials,and intelligent ad placement.

June2023

Jihong Group signed a jointinnovation agreement on theAI large model with HuaweiCloud, officially launchingthe second phase ofcooperation for AIGC-baseddeep empowerment of thecross-border e-commerceplatform, jointly creating thePangu cross-border e-commerce large model, andpromoting a deeper level ofdigital transformation.

2023Jihong Group developed andperfected the automated, intelligent,and digital cross-border e-commerce business managementsystem Gikin3.0. On this basis,Jihong Group gradually rolled outthe e-commerce text vertical modelChatGiKin-6B, the e-commerceintelligent design and materialgeneration vertical model GiiAI, andthe intelligent ad placementassistant G-king, laying a solidfoundation of intelligent systems forthe Company’s long-termsustainable development in cross-border e-commerce business.

February

2024

Jihong Group has submittedits application to the HongKong Stock Exchange andintends to complete an A+Hdual listing plan.

September

2024

In the same month, adelegation led by theChairman of BMJ Industries- the largest tobaccoproduction andmanufacturing enterprise inthe UAE - visited thecompany headquarters andits intelligent packagingproduction base. They highlyrecognized the company’ssmart manufacturing, refinedoperational management,innovative developmentcapabilities, and steadfastcommitment to the corephilosophy of “green,environmentally friendly, andsustainable.”

December

2024Jihong Group issued anannouncement stating ourintention to co-invest withVENUS TRADING FZCO toestablish a joint venture, AJTHolding International Limited,at the Dubai InternationalFinancial Centre in the UAE.This initiative aims toactively expand overseaspresence - particularly inthe Middle East and Africa -and accelerate theinternational layout andstrategic planning of itscross-border business.

May2025Jihong Group was officiallylisted on the main board ofthe Hong Kong StockExchange.

December

2025Construction of the firstoverseas packagingproduction base at Ras AlKhaimah was mostlycompleted.

?The Company convened four Shareholders’ Meetingsand seven Board of Directors meetings throughoutthe year, with 100% attendance by Board members.?The Company held two earnings briefings, respondedto 80 interactive Easy posts, and issued 138announcements.?Jihong Group held six anti-corruption trainingsessions for employees and senior management. Atotal of 394 participants attended, with cumulativetraining hours reaching 23 hours.?The Company conducted 5-hour anti-corruption

training sessions for Board members, achieving a100% participation rate.?The Company was not involved in any litigation or

administrative penalties related to corruption, bribery,or money laundering.?The Company had no litigation or significant

administrative penalties arising from unfaircompetition practices.

Governance:

EnhancingGovernance

?The Company recorded zero product recalls and nomajor safety or quality incidents related to productsand services.?All 10 production bases have been certified under ISO9001 for Quality Management System; twoproduction bases have received BRCGS A+ gradecertification; one production base has receivedBRCGS A grade certification; five production baseshave undergone FSC certification; and two baseshave obtained FSC trade certification.?The Company spent RMB 136.10 million on R&D,

accounting for 2.02% of operating revenue. TheCompany employed 602 R&D personnel, representing

12.66% of the total workforce.?The Company filed 90 new patent applications, of

which 36 were approved, obtained 44 new software

copyrights, and secured 445 approved patents.?Zero work-related fatalities occurred, with RMB 1.26

million invested in ensuring production safety;?No occupational disease-related incidents were

recorded, and employee safety training achieved

100% coverage.?All ten production bases have obtained ISO 45001

Occupational Health and Safety Management System

certification, and undergone internal audits,

management reviews and third-party supervision

audits.

Social: Giving Back to

Society?10 factories have been certified under the ISO 14001for Environmental Management System.?The photovoltaic projects at the Anhui factory and

Xiamen factory are operating stably, collectivelyachieving carbon reductions equivalent to 2,341tonnes of carbon dioxide.?The Company obtained green product certificationfor express packaging.?The Company completed carbon verification for ten

factories and identified key emission risk areas.

Environment: Green

Future

Awarded the 2025 Golden BullAward for New Consumer

Benchmark

Selected for the 2025 ListedCompanies ReputationRanking, awarded the title of

Listed Company withOutstanding Competitiveness

in Overseas ExpansionAwarded Top 100 ESGPractices for China ListedCompanies 2025 by Wind

ESG Rating

Awarded the Golden Dawn -ESG Practice Award byWeekly on Stock

Ranked 34th on the list of2025 Top 100 Private ServiceEnterprises of Fujian Province

2 Double MaterialityAssessment

In 2025, the Company carried out a materiality assessment to establish the doublemateriality matrix for 2025. This process enables the Company to balance the pursuit ofeconomic value with environmental and social obligations, delivering sustainable value for allstakeholders.

To strengthen ESG management and improve information disclosure, the Company conducts materiality assessments to identify ESG issues in2025, in reference to theHong Kong Exchanges and Clearing Limited (HKEX)’s Environmental, Social and Governance Reporting Code and theShenzhen Stock Exchange’s Listed Companies Self-Regulatory Guidelines No. 17 - Sustainable Development Report (Trial).

Issue identification

The Company reviews the key ESG

topics and the concerns of various

stakeholders, benchmarks againstdomestic and international peers, and

identifies key ESG issues.

Screening and

assessmentThe Company comprehensivelyassesses issues based on their impact,

materiality and financial materiality to

determine the double materiality

issues that have significantimplications for our sustainable

development.

Review andconfirmationAfter the assessment process,methodology, and Material IssuesMatrix are reviewed and approved bythe Strategy Committee, they will besubmitted to the Board of Directors

for final approval and disclosed in

accordance with regulations.

Materiality Assessment Process

The Company always attaches high priority to engagement with stakeholders by establishing a structured stakeholder engagement system and refining response and feedbackmechanisms to ensure timely and effective communication. To scientifically identify material ESG issues and enhance the quality of related management and practices, weconducted stakeholder engagement research, which systematically gathered views and recommendations on sustainability from shareholders, customers, government andregulators, employees, partners, the media, community representatives, and other relevant parties. Through a standardized process of impact materiality assessment, wecomprehensively evaluated the implications of various issues for the external environment and stakeholders. This has laid a solid foundation for the formulation and implementationof sustainability strategies, while continuously strengthening management and operational performance on material issues.

Stakeholder Communication at Jihong Group

Setting metrics

Quantitative assessment criteria have been established across multiple metrics—including the scale, scope, irreversibility, and likelihood of potential impacts associated with each issue—with a scoring scale ranging from 1 to 5 points.

Stakeholderparticipation

Questionnaire surveys are administered to capture key stakeholders’ perceived materiality of environmental, social, and governance (ESG) issues and to assess the actual impacts of different issues on diverse stakeholder groups.

Collecting feedback

Input and feedback on a full range of ESG issues are collected from internal and external stakeholders through expert consultations, thematic seminars, and comprehensive questionnaire surveys.

Defining priorities

Based on the above qualitative and quantitative analytical outcomes, appropriate materiality thresholds are determined, and issues are ranked in order of priority.

Stakeholders

Issues of concern

Communication forms

Shareholders

?Corporate governance?Risk management?Circular economy

?Shareholders’ Meeting?Regular reports and announcements?Interim announcements and notices?Company website?Investor mailbox?Online and offline investor meetings

Customers

?Product carbon footprint?Product responsibility?Technological innovation?Customer satisfaction?Responsible marketing?Information security and privacy protection

?WeChat official account?Customer satisfaction survey?Product survey feedback?Customer complaint and handling?Online and offline activity promotion?Company website and social media

interaction

Governmentsand regulators

?Corporate governance?Risk management?Business ethics and anti-corruption

?Information disclosure?Daily communication and reporting?Supervision and inspections?Visitor receptions

Stakeholders

Issues of concern

Communication forms

Employees

?Employee Rights and Interests?Employee training and development?Health and safety

?Employee satisfaction survey?Internal office systems?Internal communication meetings?Employee complaints and feedback?Internal and external training activities?Publicity activities of corporate culture?Employee care activities

Partners

?Responsible marketing?Supply chain management

?Project procurement?Supplier contracts and agreements?Supplier audit and evaluation?Supplier assistance and cooperation?Other supplier communication activities

Media

?Addressing climate change?Product carbon footprint?Energy and resource conservation?Waste management?Pollutant emissions

?Exclusive interviews?Company website and social mediainteraction

Community

representatives

?Community development and investment?Pollutant emissions

?Community activities?Public welfare activities?Company website and social mediainteraction

Impact Materiality Assessment Process

Impact identification and

analysis

Based on the probability of occurrence andthe magnitude of financial impact associated

with risks and opportunities, the Company

maps out financial transmission pathways,

identifies the financial risks andopportunities inherent in each issue, and

establishes a list of key issues with

substantial financial implications.

Financial indicator

correlation

Through financial indicator mapping,management interviews, andcross?departmental research, the Companyclarifies the impact pathways and correlation

mechanisms between each issue andspecific financial indicators — includingrevenue, expenses, assets, liabilities, and

cash flows.

Materiality assessment

and grading

Using a qualitative-led assessment approach

supported by quantitative analysis, theCompany conducts a comprehensive scoring

of issues on a scale of 1 to 5 points. Amateriality threshold of 3 points or higher is

applied to determine financially material

issues.

Suggestion collecting and

verification

The Company gathers internal and external

professional insights through internalmanagement discussions, departmentalsurveys, stakeholder questionnaires, andthematic symposiums to verify and calibratethe comprehensiveness and accuracy of the

assessment outcomes.

Conclusion and

application

Based on the final scoring results, weestablish a financially material issue list,clarify the financial impact of each issue,and prioritize these issues. The results are

integrated into the Company’s strategicplanning and risk management framework to

guide targeted resource allocation.

The Company conducted financial materiality assessments to systematically evaluate the potential impacts of environmental, social, and governance (ESG) issues on financialperformance. This assessment analyzes the potential links between ESG issues and the Company’s revenues, operating expenses, assets, liabilities, and cash flows. It identifieskey risks and opportunities affecting financial performance and prioritizes their materiality based on the magnitude of their financial impact. The findings provide a robustfoundation for strategic decision-making and resource allocation, while strengthening financial resilience and capacity for long-term value creation.Financial Materiality Assessment Process

12345

The Company comprehensively assesses relevant issues across the dual metrics of impact materiality and financial materiality, taking into account industry characteristics, theCompany’s business profile, regulation developments, and the core concerns of stakeholders. Based on a weighted analysis of the assessment outcomes, the Company hasfinalized the identification of 19 material issues and developed the 2025 ESG Material Issues Matrix. This provides an evidence-based and systematic foundation for theformulation and implementation of the Company’s sustainability strategy.

JIHONG GROUP 2025ESG MATERIALISSUES MATRIX

EnvironmentalSocialGovernance

00.511.522.533.544.55

0.5

1.5

2.5

3.5

4.5

Very importantVery important

Not importantVery important

Issues that have neither impact materiality nor financialmateriality

Issues of financial materiality

Issues of impact materiality

Issues that have both financial materiality and impactmateriality

Community Development and

Investment

Energy and Resource Conservation

Circular Economy

Employee Training and

DevelopmentWaste ManagementAddressing Climate Change

Pollute Emissions

Business Ethics and Anti-CorruptionEmployee Rights and InterestsSupply Chain ManagementCorporate GovernanceRisk ManagementResponsible Marketing

Health and SafetyInformation Security and Privacy Protection

Product Responsibility

Customer Satisfaction

Technological Innovation

Product Carbon Footprint

Financial Materiality

3 SustainabilityManagementJihong Group firmly recognizes sustainability as a critical engine driving long-term, stablegrowth and creating diversified value. The concept of sustainability has long been deeplyembedded in all dimensions of corporate strategy and daily operations. The Companycontinuously enhances its ESG management system, rigorously manages ESG-related risks andopportunities, and endeavors to achieve synergistic win-win outcomes among corporate growth,social value, and environmental benefits. Through these efforts, the Company steadilystrengthens sustainability governance capabilities and practical performance.

The Company establishes a tiered, efficient management structure with clear authorities andresponsibilities. The Board of Directors serves as the supreme decision-making and oversightbody for the ESG agenda, with full responsibility for reviewing sustainability strategies. TheStrategy Committee under the Board is mandated to approve and provide ongoing supervision ofmaterial ESG -related matters. The ESG Decision-making Department is established to drive,coordinate, and administer the day-to-day implementation of ESG initiatives.Jihong Group's ESG Management Framework

Board of Directors?Authorize the Strategy Committee to approve and supervise ESG-related matters.

Strategy Committee?Develop ESG strategic plans, management structures, systems, strategies, and

implementation rules to ensure policy implementation;?Identify key ESG issues, develop relevant guidelines, and review ratings;?Assess ESG risks and opportunities, monitor significant risks and develop response

measures, as well as review and supervise the handling and rectification of relevant

issues;?Review ESG tasks and internal monitoring system, and provide recommendations on

their suitability and effectiveness;?Review ESG-related disclosure documents, including but not limited to annual ESG

reports;?Regularly report to the Board of Directors and provide ESG-related training and

materials to ensure ESG governance capabilities.

ESG Decision-making Department?Coordinate, supervise, and manage the overall risks associated with the

Company’s business operations and quality control;?Collaborate with relevant departments to carry out ESG risk prevention and

management, and conduct irregular reviews.

Upholding the core ESG vision of “Technology for Good, Stability for Long-term Growth,”the Company fully embeds the principles of sustainability into strategic planning and day-to-dayoperations while establishing a robust strategic implementation framework and well-definedexecution roadmap. Guided by the governance principles of “integrating into corporate strategy,collaborating on business development, and aligning with global standards,” the Company hasdeveloped a comprehensive ESG management system, strategic objectives, performancemechanisms, and information disclosure framework. Sustainability requirements are systematicallyintegrated into corporate governance and core business processes, ensuring the consistency andsustainability of ESG management practices.

Jihong Group's ESG Governance Principles

Integrating Into Corporate Strateg?From a strategic perspective, we integrate ESG responsibilities into the corporate

development strategy to achieve unified deployment and coordinatedadvancement;?We establish an ESG key indicator system that aligns with the characteristics of

the enterprise, build a closed-loop management system for corporate ESGgovernance, and coordinate development in economic, social, and environmentalaspects.

Collaborating On Business Development?We persist in integrating ESG management concepts into internal operations and

external business outputs;?We strengthen the vertical integration with various departments and branches to

ensure the formation of an efficient and powerful ESG work network, achieving the

close integration of the Company’s ESG responsibilities and business operations.

Aligning With Global Standards? In accordance with ESG international standards, national standards, regulatory

requirements, and other relevant policies and initiatives, we advance theCompany’s systematic, standard, and routine ESG management to align withglobal standards in aspects such as policy systems, management systems,process mechanisms, action measures, and performance management.

The Company conducts systematic risk and opportunity assessments for financially material issues, closely monitors evolving market trends, and formulates and implementstargeted management measures to continuously strengthen the adaptability and responsiveness of ESG strategies. Combined with the industry’s characteristicsand the Company’sactual development status, wehave defined clear phased time horizons forassessing ESG-related risks and opportunities:short-term (by 2030), medium-term (by 2040) and long-term (by 2050).The Company has established a comprehensive strategy promotion framework and a well-defined implementation roadmap to advance the deep integration of ESGgovernance into core business operations, creating sustainable long-term value for all stakeholders.

ESG Risk/Opportunity Analysis at Jihong Group

TypeFieldLevelOvervie

TimeRange

wMeasuresFinancial Impact

Risk/Opportunity

Informationsecurity andprivacyprotection

HighLong-term

This concerns data asset security, user trust, compliancegovernance, and the sustainability of digital transformation. TheCompany will fully embed relevant governance mechanismsthroughout business operations, establish a management systemand long-term action roadmap covering the full data lifecycle, andcontinuously strengthen assurance capabilities through regularmonitoring and review.

1.Data Security Protection： The Company leverages Simple Log Service (SLS) to enable end-to-end data collection, storage,

desensitization, and audit traceability across the full data chain. We identify sensitive data via plug-in modules.

2.Network Risk Governance： The Company deploys cloud firewalls, Web Application Firewalls (WAF), and Cloud Security Center

for classified protection, covering vulnerability scanning, hacking detection, and active blocking of compromised hosts.

3.Information Security Compliance： Supported by compliance solutions and privacy protection technologies, including Alibaba

Cloud infrastructure, and in conjunction with Security Manager services, we strictly ensure compliance of data collection and use.

4.Risk Monitoring and Auditing: Through integrated operation management and log auditing functions of the Cloud Security Center,we establish a mechanism for regular security monitoring and auditing, and carry out cybersecurity drills.

5.Full-Scenario Security Support： Alibaba Cloud Multi-Factor Authentication (MFA) is deployed to comprehensively support

information security objectives.

Operational costs increase due to compliance penaltiesand compensation arising from data breach risks.

Productresponsibility

HighLong-term

The Company’s products cover fastmoving consumer goodspackaging and cross-border commodities. Noncompliant productquality may trigger customer complaints, product returns, costescalation, brand impairment, and customer attrition, as well aspotential platform penalties and compliance risks, which will createsustained adverse impacts.

1.Quality System Improvement： The production base continues to advance ISO 9001, BRCGS, and FSC certifications.

2.Raw Material Control： A procurement review mechanism is established. We prioritize the use of eco-compliant raw materialsand actively promote biodegradable packaging solutions.

3.Full-Chain Quality Inspection Collaboration： End-to-end quality inspection data—from new product launch to incoming material

inspection—serves as the core indicator for supplier performance evaluation. This drives continuous improvement amongsuppliers and fosters a collaborative internal and external quality ecosystem.

Revenue decline as a result of weakened marketcompetitiveness caused by substandard product quality.

Customersatisfaction

HighLong-term

Customer satisfaction directly drives customer retention andbusiness development. Low satisfaction may result in customerchurn, reputational damage, and revenue contraction; conversely,strong satisfaction enhances loyalty and builds a sustainablecompetitive advantage.

1.The Company builds a customer satisfaction system and conducts regular questionnaire surveys.

2.The Company promotes service standardization and delivers skill training to customer service personnel.

3.The Company builds a customer feedback closed-loop system to support product and service iteration.

4.The Company carries out regular customer care initiatives to enhance customer satisfaction.

Declining customer satisfaction may lead to customerattrition, market share loss and reduced revenue;conversely, improved customer satisfaction helpsenhance market share.

Technological

innovation

HighLong-term

Technological innovation serves as the core pillar of the Company’sdual-engine strategy, with a focus on four priority areas: AIapplications, intelligent printing, green packaging materials, andcrossborder ecommerce digitalization. The strategic objectives areto deepen business penetration, expand market coverage, andsupport intelligent upgrading.

1.The Company maintains annual R&D investment accounting for no less than 2% of total operating revenue.

2.The Company establishes a talent incentive mechanism, strengthens industry-university cooperation to bring in high-caliber AI

professionals, and enhances R&D capabilities.

3.The Company collaborates with leading manufacturers to develop new AI-driven products tailored to specific business scenarios.

Lagging technological iteration drives up R&D costs;conversely, proactive R&D investment and activitiescontribute to revenue growth.

Product

carbon

footprint

HighLong-term

The Company’s product carbon footprint covers the full lifecycle ofpackaging products, including production, raw materialprocurement, logistics and transportation, and waste recycling.Excessive carbon emissions expose the Company to risks includingcarbon border tariffs, supply chain regulations, and consumerresistance, which may increase compliance costs, restrict marketaccess, and harm corporate reputation.

1.Packaging Process Optimization： In line with the principle of standardization, recycling, reduction, and harmlessness, the

Company upgrades incoming inspection, promotes recyclable packaging boxes and eco-friendly adhesive tapes, and optimizesproduct design to reduce material consumption.

2.Deepen Green Awareness of Supply Chain： The Company regularly communicates environmental information to suppliers,

transforming passive compliance into proactive green cooperation.

3.Energy Conservation and Emission Reduction During Production： The Company promotes energy-saving renovation and process

optimization and accelerates the application of clean energy, such as photovoltaic power generation. The production base inHohhot invested RMB3.436 million in a 2.0MWp distributed photovoltaic power plant, which has been fully completed andofficially put into operation.

Excessive carbon emissions increase supply chaincompliance costs, while consumer resistance againstgreen consumption trends may lead to revenue decline.

At Jihong Group, the Strategy Committee is responsible for reviewing ESG risk and opportunity assessment findings. To enhance the standardisation and systematic oversightof ESG risk management, the Company fully integrates ESG risks into its existing risk management framework, and has established a closed-loop governance mechanism coveringrisk identification, risk assessment and risk response. Through institutionalised processes, regular monitoring and periodic optimisation, this mechanism enables dynamic oversightand long-term governance of ESG risks. It not only effectively mitigates risk exposure but also delivers structured support for the Company to identify and capitalise onsustainability opportunities, boosting resilience and long-term value creation capacity in complex environments.ESG Risk Management Process at Jihong Group

Risk Identificati

?The Company systematically identifies

environmental, social, and governance risksand integrates climate?relatedconsiderations into risk assessmentprocesses. We progressively establish andregularly update the ESG risk database.

Risk Assessment

?The Company conducts regular riskassessments, comprehensively evaluatingESG risks based on impact magnitude,likelihood of occurrence, and severity ofharm. Risks are categorized into high,medium, and low levels through a scoringmethodology, with risk managementpriorities determined accordingly.

Risk Response

?Based on ESG risk assessment outcomes,the Company implements a tiered responsemechanism and adopts multi-dimensionalgovernance measures. The Companyenforces management mechanisms forhigh-risk issues, applies control measuresto medium-risk issues, and conductsroutine monitoring and optimization forlow-risk issues.?For medium?to?high risk issues that may

trigger emergencies, the Companydevelops specialized response proceduresand control measures and formulatescontingency plans tailored to riskcharacteristics, strengthening emergencyresponse capabilities.?On an annual basis, the Company conducts

a systematic review of ESG riskmanagement practices, assesses internaland external risk trends, and refines riskcontrol measures in line with industrydevelopments, driving the iteration of theESG risk management system.

The Company institutionalizes the strategic integration and closed-loop management of key ESG issues. The Company establishes short-, medium-, and long-term targets forcore ESG priorities, with clearly defined implementation pathways and accountable parties. Through an annual assessment mechanism, the Company consistently monitorsprogress, conducts gap analysis, and refines strategies to ensure the coordinated advancement of ESG governance and business growth, and to drive the effective delivery ofsustainability goals.

Jihong Group's ESG Indicators and Targets Progress

PillarStrategicESGIssues

TargetSub ItemssProgress in Targets

Information

Securityand Privacy

Protection

Data Security Protection

? Rate of sensitive data identification:

100%? Rate of data encryption/anonymization:

100%? No major data leaks throughout the year? The incidence of general data breacheshas decreased by 80% or more year-on-year? Accuracy of log auditing traceability:

99%

? Deployed Alibaba Cloud SLS loggingservice, and completed sensitive dataidentification and debugging.? Encrypted/anonymized all data collection,storage and transmission.

Network Security Governance

? Coverage of network vulnerabilityscanning: 100%? Time limit for repairing high-riskvulnerability: within 24 hours? Rate of web attack interception: nofewer than 99.9%? No major hacking incidents throughoutthe year? Time limit for handling compromise hosts:

within one hour

? Deployed full-level protection productssuch as cloud firewall and WAF.? The coverage of vulnerability scanningreached 100%, and the rate of high-riskvulnerability repair compliance reached100%.? The rate of web attack interceptionremained stable at 99.93%.Risk Monitoring and Audit

? Coverage of risk monitoring: 100%? At least two security drills every year? Emergency response capability improvesby 30%

? Established a full-scenario risk monitoringmechanism with a coverage of 100%.? Conducted one security drill to ensure theachievement of our capability improvementgoals by the end of the year.Full Scenario Security Support

? To apply Alibaba Cloud's full series ofsecurity products? Coverage of multi-factor authentication(MFA): 100%? Rate of security protection: 100%

? Fully applied Alibaba Cloud's full series ofsecurity products.? Achieved 100% MFA coverage for allemployees.? Deployed full-scenario security protection.Employee Information SecurityAwareness and BehaviorManagement

? Coverage of information security training:

100%? To improve the information securitymanagement system? Coverage of risk assessment: 100%? No major information security incidents? Rate of customer data breach: 0

Ongoing

Pillar StrategicESG Issues

TargetSub Itemss

Progress in Targets

ProductResponsibility

Supply Chain Responsibilityand Product Sustainability

To achieve 100% coverage of sample inspection for alldefective products.To identify and develop at least 2 new sustainable products,To upgrade no fewer than 5 products annually to optimize thecustomer service experience,

Supply Chain Responsibility Awareness: Througheffective communication, the Company hasactively promoted health and environmentalprotection concepts in product packaging.Strict sampling inspections have beenimplemented, achieving 100% coverage for alldefective samples.Three new eco-friendly products weresuccessfully developed.Guided by the customer feedback mechanism,more than 10 products were optimized for qualityimprovement.

CustomerSatisfaction

Customer SatisfactionMonitoring System

To establish an omnichannel satisfaction system: covering theentire pre-sales, in-sales, and after-sales processes, with anoverall satisfaction rate of at least 96%.

The customer satisfaction survey mechanism waslaunched, covering three major touchpoints:

consumer habits, logistics services, and customerservice. The overall satisfaction rate stood at 96%+

Service Standardization andTraining System

To maintain a service standardization rate to 100%: conductcustomer service training annually, with a problem-solving rateof at least 95%.

The Company developed guidelines onCustomerService Policyand conducted customer servicetraining, achieving a 100% standardization rate anda 100% problem-solving rate.

Customer Feedback Closed-loop Mechanism

To implement a closed-loop feedback mechanism: achieving acustomer complaint handling rate of 100%.

The work order system was used, and a key issueresponse mechanism was established with acomplaint handling rate of 100%.

Technological

Innovation

AI Infrastructure andCapacity Building

To build an enterprise-level AI middle platform integrating MCP,knowledge bases, and workflow to lower the threshold for AIapplication and improve business efficiency by 100%.

Phase I was launched, and Phase II is 50%developed and will be launched in 2026 Q2.

Integration and Applicationof Intelligent Tools

To integrate one-stop AI tools, including image generation,video production and copywriting creation to realize a 100%improvement in content creation efficiency.

The latest image and video generation tool is 60%developed and will be released by the end ofFebruary 2026.

ProductCarbon

Footprint

Low Carbon Transformationand Carbon FootprintExploring

1.To preliminarily explore the carbon footprint of key products.

2.To advocate low-carbon transformation to suppliers.

3.To explore energy efficiency and carbon reduction in logisticsoperations.

4.To build consensus on green cooperation with customers.

The Company hosted internal carbon footprintlessons, included low-carbon issues incommunication with suppliers and customers, andsystematically examined carbon emissions in thelogistics process, entering the stage of preliminaryexploration and consensus building.

Carbon Management andEmission ReductionPlanning

To complete the Scope 1 and Scope 2 carbon inventory andestablish a comprehensive monitoring system for carboninventory indicators by 2026.

Ongoing

4 Environment:

Green FutureJihong Group deeply implements the green development philosophy throughout the entireoperational value chain, spanning green production, green office, climate change response, andecological protection. The Group continuously strengthens green manufacturing capabilities,upholds the principles of energy conservation and emission reduction, builds an environmentallyresponsible enterprise, and delivers solid support for the green transformation of the industry.

In terms of green production, the Company continuously strengthens environmental management,optimizes resource utilization efficiency, maintains strict compliance with emission standards, andinnovates green product design. These efforts promote the harmonious coexistence of operationalactivities and the environment, while enhancing green competitiveness.

4.1.1 Green Production

Jihong Group has established a threedimensional management structure, with the environmentalmanagement system as its core, the emergency management system as the guarantee, environmentalprotection facility management as the foundation, and environmental awareness cultivation as thesupport. Through this framework, the Group continuously enhances environmental managementefficiency and risk control capabilities.Environmental Management System

Jihong Group complies with relevant laws and regulations, such as theLaw of the People’sRepublic of China on Environmental Protection, the Law of the People’s Republic of China onEnvironmental Impact Assessment, the Forest Law of the People’s Republic of China. To reduce theenvironmental impact during production, the Company has also developed internal policies, includingan Environmental Management System. We conduct internal inspections and external audits in line withthe requirements of the ISO 14001 Environmental Management System standard to ensure the effectiveoperation of our environmental management system. In 2025, all 10 production bases successfullyobtained ISO 14001 certification, with no environmental violations recorded throughout the year. Amongthese, the Langfang factory and Hohhot factory were recognized as Provincial-Level Green Factories,while the Anhui facility was awarded Municipal-Level Green Factory status.

Emergency Management System

The Company has formulated anEnvironmental Protection Emergency Planand established anenvironmental emergency response mechanism, covering organizational structure, responsibilityallocation, response procedures, and resource deployment, to standardize the management andhandling of environmental emergencies. The Company has set up an emergency response leadershipteam to coordinate accident assessment and disposal. Through regular emergency drills, wecontinuously enhance employees’ practical capabilities and our overall environmental risk controlcapacity. Meanwhile, we strictly adhere to theClassified Administration Catalogue of EnvironmentalImpact Assessments for Construction Projects, and engage qualified professional institutions toconduct environmental impact assessments, implementing environmental risk control at the source.

ISO 14001 EnvironmentalManagement System Certification

Environmental Facility Management

The Company has formulated theOperating Procedures for Environmental Facilities, which define theresponsibilities of all departments and personnel, and integrated environmental protection into theperformance appraisal system to ensure clear accountability and effective implementation. The Companyconducts regular inspection, maintenance and upkeep of environmental facilities, maintains completeequipment ledgers and operation records, and ensures an equipment integrity rate of 100%. Meanwhile, theCompany continues to increase investment in environmental facilities to guarantee their stable andcontinuous operation, further enhance the efficiency of pollutant treatment, and achieve systematicimprovements in environmental management performance.Environmental Awareness BuildingThe Company is committed to incorporating environmental awareness into daily operations, laying asolid foundation for sustainability actions and building a related talent pipeline. Each production facilityactively organizes environmental training, covering environmental regulations, cleaner production principlesand facility operation skills as core components of regular training. Through a combination of internallectures, external expert guidance and on-site practical training, the Company continuously strengthens theenvironmental literacy and professional capabilities of all employees.

4.1.2 Resource ManagementThe Company continuously optimizes resource allocation and utilization efficiency, proactivelypursues energy conservation and emission reduction, enhances the energy management system,strengthens water resource management, and fully implements eco-friendly and sustainabilitystrategies.Energy Management

The Company strictly complies with applicable laws and regulations, including theLaw of thePeople’s Republic of China on Energy Conservation. Based on actual production and operation, weestablished theEnergy Conservation and Consumption Reduction Management System, EnergyConservation and Consumption Reduction Organizational Management System, EnergyConservation and Emissions Reduction Management System, andEnergy ConservationManagement System. The Ningxia factory set a target to reduce energy consumption per unit by20%. The Hohhot factory established an energy-saving management team to coordinate andadvance relevant initiatives, systematically implement energy-saving technological upgrades, optimizeproduction processes, and improve energy monitoring and recycling.

Photovoltaic PowerGeneration System

Ningxia Factory:

Energy management target: to reduce energy consumption per unit by 20%

Energy-savingequipment andtechnologicalupgrade

·Eliminate high-energy-consuming equipment: We have fully adopted high-efficiency energy-savingequipment and completed LED lighting retrofits across workshops, warehouses, office areas and otherfacilities.·Promote the application of variable frequency technology: Variable frequency drives have been installedon fans, pumps and other equipment to adjust power output based on operational demand and improveenergy efficiency.

Production and

operationoptimization

·Optimize production planning: Materials and production schedules are reasonably coordinated tominimize energy consumption from equipment idling and standby modes.·Implement staggered electricity consumption: During the off-peak season from March to August eachyear, we adopt single-shift production and arrange night-shift operations to take full advantage of off-peak electricity pricing, thereby reducing power costs.

Energy monitoring

and recycling

·Enhance the energy monitoring system: Electricity meters have been installed on key machinery and inhighenergyconsumption zones to enable realtime monitoring and analysis of power consumption data,supporting the identification of anomalies and energysaving opportunities.·Promote waste heat recovery and utilization: Through waste heat recovery units, high-temperaturesteam waste heat is reused for heating production and domestic water, replacing traditional electricheating methods.

The Company continues to optimize its energy mix, actively develop clean energy, and improveoverall energy efficiency through process innovation and technological upgrading. Two productionbases, located in Xiamen and Anhui, have installed photovoltaic power generation systems toeffectively utilize renewable energy. In 2025, Anhui factory generated approximately 2.12 million kWhof photovoltaic electricity, achieving a carbon emission reduction of about 1,158 tCO2e (tons ofcarbon dioxide equivalent). The Xiamen factory generated approximately 2.29 million kWh ofelectricity annually, reducing carbon emissions by around 1,183 tCO2e. The stable operation of thesephotovoltaic projects has lowered the carbon footprint of production operations and steadilyadvanced green development initiatives.

Energy Consumption at Jihong Group

Indicator

Unit

2025

Gasoline

ton

34.88

Diesel

ton

47.49

Natural Gas

cubic meter

2,964,369.04

Purchased Electricity

kWh

57,032,609.70

Purchased Heat

GJ

36,907.28

Total Energy Consumption

tce

11,990.82

Energy Consumption

Intensity

tce/RMB 1 million of revenue

1.78

Water Resource ManagementThe Company strictly complies with applicable laws and regulations, including theWater Law of thePeople’s Republic of China. The Company has formulated and refined theWater ConservationManagement SystemandWater Resources Management Measures, clearly defining the responsibilitiesfor water resources management. Each factory proactively implements institutional requirements. Forinstance, the Hohhot factory has established a water conservation management leading group andappointed a water resources administrator for daily monitoring and supervision. It adopts a multi-pronged approach encompassing management optimization, technological upgrading, and awarenesspromotion to ensure standardized and efficient water resources management. The Ningxia factory hascontinuously advanced water resources recycling. Wastewater that has been treated to meet dischargestandards undergoes further purification for reclaimed water reuse, which is then applied to greeningirrigation, equipment cleaning, and workshop floor washing. These efforts support the factory inachieving its water resources management target of raising the water reuse rate to above 85%.

Water Use at Jihong Group

Optimize watermetering andprocess monitoring

The Company has installed water meters at all key water consumptionpoints, including workshops, critical processes, office buildings and staffdormitories, enabling zone-by-zone and category-by-category accuratemetering of water usage. Through monthly collection, analysis andcomparison of data across different sites, the Company achieves real-timemonitoring of water consumption, promptly identifies and addressesabnormal water usage, providing a solid data foundation for refinedmanagement and continuous optimization.

Promote condensatewater recovery andwaste heatutilization

The Company has carried out technological upgrades for condensaterecovery systems in facilities, including heat exchange stations. Steamcondensate generated during production is recovered, softened and reusedas non-production water such as domestic water. This initiative not onlydirectly reduces freshwater intake but also recovers waste heat from thecondensate, delivering the dual benefits of water conservation and energysavings.

Deepen water-saving promotionand training for allstaff

The Company is committed to fostering a companywide watersavingculture. The Company organizes an annual campaign “Month of WaterConservation Promotion” to widely disseminate watersaving knowledge andwater management requirements through factory notice boards, internalmessaging platforms and dedicated lectures. Meanwhile, watersavingawareness and behavioral standards are included in mandatory prejobtraining for new employees, ensuring that a strong resource conservationmindset is established from the outset of employment.

IndicatorUnit2025

toWater Consumptionn176,119.80Water ConsumptionIntensity

ton/RMB 1 million of revenue26.17Water Resource Management Measures

Through the aforementioned initiatives, the Company has achieved phased progress in water resourcemanagement. Notably, the Hohhot factory has been successfully accredited as one of the Second Batch ofWater-Saving Enterprises in Hohhot City for 2025. Moving forward, the Company will continue to exploreinnovative water-saving technologies, steadfastly advance the continuous improvement of water utilizationefficiency, and contribute to the sustainable development of both the enterprise and the environment.

Ningxia Factory:

Water management target: to raise the water reuse rate to above 85%

4.1.3 Emission ManagementThe Company is committed to building a green and low-carbon operation system, and hasestablished a standardized emissions management mechanism covering key wastewater, waste gas,solid waste and noise. Such efforts effectively mitigate the environmental impact of production andoperation activities, with a steadfast commitment to sustainability.

Emission Management Target

To ensure effective emissions management, the Company has set clear emissions managementtargets to uphold environmental compliance and drive continuous improvement across operations.The core target is to achieve stable and compliant emissions: ensuring that emissions of waste gas,wastewater, noise and other pollutants meet applicable national and local environmental standards,while attaining a 100% safe disposal rate for hazardous waste. To support the delivery of thesetargets, the Company has developed a detailed environmental monitoring plan, under which weconduct regular monitoring of major pollutants and track environmental performance in real time. Inaddition, the Company engages qualified third-party institutions to carry out professionalenvironmental assessments. Based on the assessment findings, the Company timely formulates andimplements targeted improvement measures, continuously enhancing environmental managementcapabilities and risk control level.

Emission management target: Ensuring that emissions of waste gas, wastewater,noise and other pollutants meet applicable national and local environmentalstandards, while attaining a 100% safe disposal rate for hazardous waste.

Waste Water Emissions

Waste Water

The Company strictly adheres to theLaw of the People’s Republic of China on Water PollutionPrevention and Control and the Regulation on Urban Drainage and Sewage Treatment, and hasestablished aProduction Wastewater Treatment Management System. The Company adopts grid-based management, clarifies the safety management responsibilities of personnel in charge ofsewage treatment stations, and integrates such responsibilities into the performance appraisalsystem to ensure compliant wastewater treatment and prevent the illegal discharge of untreatedwastewater.

The Company is equipped with comprehensive wastewater treatment facilities, which adoptbiochemical treatment, filtration, adsorption and other processes to treat both production wastewaterand domestic sewage, ensuring that effluent quality meets discharge or reuse standards.

The Company’s production wastewater is treated through neutralization and sedimentation processes tomeet relevant standards and is fully reused for on-site applications, including landscaping irrigation,equipment cleaning and workshop floor washing. This approach improves water utilization efficiency andachieves zero discharge of industrial wastewater. To ensure the long-term stable operation of the sewagetreatment system, the wastewater management department conducts systematic cleaning and inspects keycomponents for wear and tear every six months, in accordance with the actual operating conditions of theequipment.

IndicatorUnit2025

Industrial Wastewater

Discharge

ton

Domestic Sewage

Discharg

6,793.30e

ton76,341.33

Waste GasThe Company strictly complies with theLaw of the People’s Republic of China on Preventionand Control of Atmospheric Pollution, and other relevant laws and regulations, and has established aPrevention and Control System for Waste Water, Waste Gas, Dust and Solid Wastes. The Companyconducts environmental impact assessments and discloses the relevant results to ensure fullcompliance with emission standards. In addition, the Company places emphasis on the effectivetreatment of exhaust emissions generated in enclosed production spaces. Through standardizedinstallation of pollution control facilities and adoption of high-efficiency dust removal and filtrationtechnologies, we achieve centralized treatment of exhaust gases. In line with the emissioncharacteristics of different production processes, the Company implements differentiated treatmentplans to ensure sustained compliance with national standards, minimizing the environmental impactof production and operation activities.

The Company implements classified collection, storage, and treatment of all types of solid wastegenerated during production. General solid waste is sorted and collected before being transferred toprofessional service providers for standardized disposal. For hazardous waste, the Company formulates andsubmits management plans in accordance with the requirements of environmental authorities. Eachdepartment is responsible for categorized collection, record-keeping, and filing, with regular transfer todesignated departments for centralized storage in dedicated warehouses, ensuring segregated storage andregulated transportation.

The Company appoints dedicated personnel to oversee the full lifecycle of hazardous waste, includingstorage, inventory, and transfer, and collaborates with qualified professional institutions to ensure compliantdisposal. Meanwhile, a complete management ledger is maintained to accurately record the generation,storage, transfer, and disposal of hazardous waste, enabling full-process traceability and standardizedmanagement.

To minimize waste generation at the source, the Company continuously advances cleaner productioninitiatives. The Company evaluates and optimizes production processes to eliminate redundant proceduresand material waste. Furthermore, while ensuring product quality, the Company prioritizes the use of eco-friendly raw materials, including renewable pulp, water-based, environmentally friendly inks, andbiodegradable adhesives. The Company strives to achieve the dual objectives of source pollution reductionand enhanced resource efficiency, driving the transition toward a greener production model.

Process Category

Type of Waste

Gas

Treatment

Printing

Organic compounds

Adopt both adsorption and photocatalytictechnology to efficiently purify organic compounds

Waste paper

packaging

Dust

Install bag filter for effective collection andpurification, ensuring dust emissions meetstandards

Offset printing

process

VOCs

Install a dual treatment device of photocatalytic andfilter cotton adsorption to ensure stable andcompliant exhaust gas treatment

Waste Gas Treatment for Different Processes

Waste Gas Emissions

Types of Emissions

Unit

2025

Nitrogen Oxides

ton

1.53

Sulfur Oxides

ton

0.08

Particulate Matter

ton

0.18

Waste Types

Unit

2025

Hazardous Waste

Total amount of hazardous

waste

ton

148.83

Hazardous Waste

Intensity

ton/RMB 1 million of

revenue

0.02

Non-Hazardous

Waste

Total Amount of Non-

hazardous Waste

ton

622.76

Non-hazardous Waste

Intensity

ton/RMB 1 million of

revenue

0.09

Kitchen Waste

ton

101.61

Domestic Waste

ton

507.04

Usage of paper

ton

14.12

Solid Waste Generation

Solid Waste

The Company strictly complies with theLaw of the People’s Republic of China onEnvironmental Protection, theLaw of the People’s Republic of China on the Prevention and Controlof Environmental Pollution by Solid Wastes, and other relevant laws and regulations. Based onproduction needs, the Company has established aHazardous Waste Management System. TheCompany adheres to the fundamental principles of resource utilization, reduction, and harmlesstreatment in waste management, setting clear waste management targets to ensure the complianthandling of all solid wastes.

Noise Management

The Company attaches significant importance to noise control throughout production to ensure thatnoise at the boundary complies with environmental standards. For high-noise equipment, including aircompressors, fans and printing machines, the Company has implemented comprehensive noise-reductionmeasures such as installing shock absorbers, mufflers and acoustic enclosures. These measureseffectively reduce noise generated by equipment during operation, enabling the Company to fulfillenvironmental responsibilities.

Green Product Highlight Cases

Indicator

Unit

2025

Use of packagingmaterials

ton

12,456.97

Intensity of use ofpackaging materials

ton/RMB 1 million of

revenue

1.85

Express Packaging Green Product Certification Certificate

By implementing the optimization initiative to reduce the basis weight of outer linerboard and innerlinerboard from 200g to 170g, the Company expects to lower the raw paper cost per square meter byapproximately 3%–5%. While maintaining equivalent product strength and performance, the initiativehas achieved product lightweighting, helping to reduce the consumption of natural fiber resources suchas wood pulp. Meanwhile, the adoption of eco-friendly modified starch adhesive delivers extremely lowVOC emissions. These measures not only facilitate the transformation of the corrugated packagingindustry toward high-performance, lightweight, and green development but also elevate the overalltechnological level of the sector.Against the backdrop of massive consumption in logistics packaging, the Company has launched apatented green packaging box. At its core, the product embodies a whole-life-cycle green philosophy:

raw materials are biodegradable and renewable, capable of complete decomposition withinapproximately six months under composting conditions; production adheres to environmental compliancestandards and employs energy-saving and water-saving processes; and resource consumption isreduced through lightweight design. The materials used are safe and non-toxic, with environmentallyfriendly water-based inks ensuring both human health and environmental protection. This product fullymeets national green standards, and the Company has initiated green product certification to lead theindustry toward an efficient, circular, and low-carbon future.

An automatedconveying device andmethod for producingmulti-wall high-strength corrugatedcardboard with V-shaped flute

Cardboard packagingbox

4.1.4 Green Products

Jihong Group is committed to the research and development of eco-friendly packaging materials and has earned green product certification for express packaging. TheCompany actively works to reduce plastic use and minimize material consumption, providing high-value sustainable solutions to customers.

Use of Packaging Materials at Jihong Group

Dimension

Approach

Description

Energy Efficiency

Division and supervision of zone-based electricity responsibility

. The Company implements a zone-based responsibility system for electricity management, clarifying energy-saving behavioral norms such as “lights offand equipment powered off when not in use.” Administrative departments conduct daily inspections to eliminate energy waste from prolonged lighting andidle standby equipment.

Lighting system energy-savingrenovation

Traditional lighting fixtures are replaced with LED energy-saving lamps, with workshop lighting controlled by motion sensors or light sensors.Voice-activated switches are installed in public areas, supported by a lighting strategy that prioritizes zoned control and maximizes the use of natural light.

Energy consumption control overair conditioner and equipment

Air conditioner cooling is set no lower than 26°C in summer, and heating no higher than 20°C in winter, with the air conditioning turned off 30 minutesbefore the end of work.Office equipment is managed centrally and powered off during non-working hours, with air conditioner turned off 30 minutes before the end of work.

Resource Saving

Paperless office

The Company fully promotes electronic approval, online meetings, and document-sharing systems to reduce paper consumption.Printing is set to double-sided by default, and the reuse of waste paper is encouraged.

Water saving management andfacility optimization

Water-saving valve cores are installed, with strengthened daily inspections to prevent water leakage and dripping.The reuse of leftover water from pantry areas for watering green plants is promoted.

Standardized household wastetreatment

Classified storage areas are established to implement solid waste sorting management.Energy-saving reminders are posted in dining areas, with behavioral guidance reinforced through assessment mechanisms.

Green Culture

Environmental awareness building

Energy-saving and water-saving signs are displayed throughout office areas. Employees are encouraged to use reusable water bottles and shopping bags,fostering green and low-carbon daily habits.

Green office environmentimprovement

The Company installs indoor greenery, provides ergonomic seating, and deploys air purifiers to enhance employee health and workplace comfort, creatingan eco-friendly and healthy office environment.

Green Office Practice

The Company deeply integrates the concept of green office into operation management, and promotes energy conservation, emission reduction, and efficient resourceutilization through institutional norms, technological upgrades, and cultural guidance.

4.3.1 Governance

The Company actively aligns with the national “dual carbon” goals, integrates climate change response deeply into the ESG governance framework, and establishes a three-tiered governance structure comprising theBoard of Directors, the Strategy Committee, and the ESG Decision-Making Department. The Company evaluates the potential impacts of climate-related risks—including extreme weather events, policy and regulatorychanges, and market transitions—on business operations, and develops and implements targeted adaptation and mitigation strategies.The company has incorporated environmental indicators into the managementperformance appraisal system to ensure the effective implementation of climate change targets.

Strategy Committee

?Fulfill supervision responsibilities for climate goals, risk assessments, and disclosure documents.?Listen to reports from the ESG Decision-Making Department on climate change issues and regularly report to the Board of Directors.

Board of Directors

?Review sustainability strategies and goals related to climate as the highest decision-making body for addressing climate change, and regularly receive

reports on ESG-related work.

ESG Decision-MakingDepartment

?Responsible for promotion, cross-departmental coordination, and specific implementation of climate affairs.

Climate Change Governance Structure at Jihong Group

4.3.2 Strategy

The Company has fully mainstreamed climate change action into its long-term development plan, while formulating and implementing theAction Plan for Carbon Peaking and Carbon Neutrality of Jihong, along witha carbon reduction roadmap. The Company identifies climate-related risks based on actual production and operations and develops targeted response measures. Meanwhile, the Company proactively captures climate-related opportunities and explores sustainable packaging solutions within the paper-based FMCG packaging business. Through strategic adjustments, the Company strives to achieve a win-win between business growthand sustainable development, continuously enhancing market competitiveness. In 2025, the Company promoted the use of clean energy alternatives, especially PV generation projects, by investing RMB3.436 million indistributed photovoltaic projects.Climate Risk Identification and Response

Risk TypeRisk DescriptionCountermeasures

Policy Risks

Transition

Risks

Low-carbon PolicyRequirements

Against the backdrop of a growing industry consensus onlow?carbon transition and increasingly stringent carbon emissionquota allocation, the Company is confronted with sustainedpressure on carbon-related costs.

·Set science-based carbon targets: Develop clear short-term and long-term emissionreduction plans and a phased implementation roadmap to ensure targets are quantifiable,measurable and traceable.·Accelerate lowcarbon technology application: Proactively introduce energysaving equipmentand renewable energy solutions to reduce carbon emission intensity in production andoperations at the source.·Engage flexibly in carbon trading mechanisms: Rationalize the use of carbon tradingsystems and adjust emission quotas through market-based approaches to support theachievement of emission reduction goals.·Establish a systematic management system: Implement a normalized carbon emissionmonitoring, reporting and verification mechanism, continuously evaluate and optimizeemission reduction measures, and promote closed-loop management for low-carbonoperations.

Tightening RegulatoryRequirements

Stricter regulations have significantly raised compliance costs,requiring systematic carbon verification and proactive elimination ofhigh-energy-consuming and outdated production facilities.Litigation Risk Response

Environmental issues at upstream suppliers may lead to productiondisruptions, which could impair the stable supply of raw materialsand timely delivery of finished products, potentially resulting in legaldisputes.

1.The company is temporarily unable to obtain the relevant information at reasonable cost or effort, so the company applies the reasonable information waiver clause in the Climate Disclosure ImplementationGuidelines of the Hong Kong Stock Exchange. We plan to conduct scenario analysis in the coming years.

Climate Risk Identification and Response

Risk Type

Risk Description

Countermeasures

TransitionRisks

Technologyand MarketRisks

Cost of UpgradingLow-Carbon EmissionTechnologies

Equipment upgrading and retrofitting to enhance energy efficiency willinevitably increase shortterm capital expenditure and operating costs.

Establish an energy management system, and reduce overall energy consumption by introducing high-efficiency energy-saving equipment, deployingintelligent energy control platforms, and continuously optimizing production processes.

Changing Behaviorsand Preferences ofCustomers

Heightened consumer awareness of low-carbon products presents risks ofcustomer churn and declining market share if traditional product offerings andmarketing strategies fail to keep pace.Downstream customers are integrating low-carbon requirements into theirprocurement criteria, while upstream suppliers face the risk of order losses orelevated cooperation barriers if they lack green products or a clear carbon-neutral development roadmap.

·Drive green product innovation: Develop and launch ecofriendly product lines with lowcarbon attributes to precisely respond to market demand forsustainable consumption.·Build a sustainable brand image: Systematically communicate environmental practices and values to enhance the brand’s reputation and appeal insustainability.·Disclose product carbon footprint: Proactively measure and disclose product carbon footprint information to build consumer trust through datatransparency.·Obtain established green certifications: Actively acquire recognized domestic and international environmental labels and certifications to provide crediblegreen endorsement for products and strengthen market competitiveness.

Rising Raw MaterialCosts

Key raw materials are under the dual pressure of supply contraction and qualityvolatility, which may directly drive up production costs, reduce operationalefficiency, and destabilize the quality of finished products.

·Conduct supply chain climate vulnerability analysis: Assess the exposure and sensitivity of upstream links to climate change risks, and develop gradedresponse strategies accordingly.·Implement diversified supplier base layout: Strategically expand the list and geographical distribution of qualified suppliers for key materials to reduceover-reliance on a single source.·Invest in supplier climate resilience: Support key suppliers in enhancing operational resilience to climate impacts through technology sharing, capacitybuilding, or financial support.·Establish key material buffer inventory strategy: Establish a dynamic safety stock mechanism based on risk levels for identified high-risk raw materials tobuffer short-term supply disruptions.

Reputational

Risks

Negative Publicity

Escalating climaterelated demands from stakeholders, if met with inadequate ordelayed responses, could expose the Company to reputational damage, erodedstakeholder trust, and heightened compliance risks.

·Incorporate climate goals into core strategies: Develop a climate action roadmap deeply integrated with business operations to ensure emission reductiontargets align with long-term development strategy.·Establish a normalized climate disclosure mechanism: Regularly publish verified climate action and performance reports, remain open to public scrutiny,and strengthen stakeholder trust.·Lead or deeply participate in industry climate initiatives: Join or initiate industry low-carbon alliances to jointly shape standards, share best practices, andenhance voice and influence in the low-carbon transition.·Establish two-way communication channels for stakeholders: Regularly conduct systematic dialogues on climate issues, proactively respond to concernsfrom all parties, and translate external expectations into continuous input for strategy optimization.

Physical

Risks

Acute Risks

Increase in Frequencyand Intensity ofExtreme WeatherEvents such asTyphoons, Storms,Floods, and Droughts

Extreme weather events may directly damage critical production facilities,storage assets and operational equipment, leading to asset losses, businessinterruptions and risks to employee safety.

·Systematically assess physical risks: Conduct risk assessments for extreme weather and climate events, identify critical impacts on operating assets andsupply chains, and develop hierarchical emergency plans.·Enhance the resilience of critical infrastructure: Complete disaster-resistant reinforcement and adaptive retrofit for core facilities such as facilities,warehouses, and data centers to improve defense capabilities against climate disasters, including floods and storms.·Build company-wide climate emergency response capabilities: Comprehensively enhance employees’ awareness of extreme weather prevention,emergency response skills, and safety assurance through regular training and simulation drills, laying a solid foundation for operational risk prevention.

Chronic

Risks

Climate Change andRise in AverageTemperature

Rising energy consumption across production facilities and office spaces hasdirectly pushed up energy expenses. Concurrently, adverse environmental orworking conditions may contribute to a decline in overall productivity.

Establish a comprehensive climate change emergency plan and adopt financial instruments such as insurance for risk transfer, aiming to ensure businesscontinuity and minimize potential financial losses.

4.3.3 Risk ManagementTo effectively address climate change, the Company has established a sound climate riskmanagement system, which systematically identifies and assesses both physical and transition risks,and develops targeted response measures. We have formulated dedicated emergency response plansfor flood prevention, typhoon protection, and periods of severe pollution, with the aim of minimizingphysical risks and ensuring business continuity.

4.3.4 Indicators and Targets

The Company regularly discloses greenhouse gas (GHG) emissions data to ensure transparencyand comparability. To date, the Company has completed carbon verification for all ten factories,providing a solid data foundation for advancing carbon reduction targets, identifying emission hotspots,and pinpointing risk concentrations. We set a target to reduce GHG emissions intensity by 5% in 2025compared to 2024, and we have achieved this target on schedule.The Company reduces its carbonemissions through proactive emission reduction measures and has not yet implemented internal carbonpricing for management purposes.

GHG Emissions

IndicatorUnit2025Scope 1 GHG emissionstCO?e6,754.41Scope 2 GHG emissionstCO?e34,321.30

Scope 1 + Scope 2 GHG emissions

tCO?e

GHG emissions intensit

41,075.71ytCO?e/RMB 1 million of revenue6.10

2.Regarding climate-related financial impacts, cross-sectoral indicators and Scope 3 greenhouse gasemissions, the underlying data collection is still in progress and the supporting information isincomplete. In accordance with the reasonable information exemption clause in the Hong Kong StockExchange’s Implementation Guidelines on Climate-related Financial Disclosures, the Company doesnot disclose cross-sectoral indicators and Scope 3 GHG data in this report.

3.GHG accounting is presented in terms of carbon dioxide equivalent (CO2e) in accordance with theAnnouncement on the Issuance of Carbon Dioxide Emission Factors for Electricity in 2023 issued bythe Ministry of Ecology and Environment of the People's Republic of China and the IPCC 2006 RevisedGuide to National GHG Inventories 2019 issued by the Intergovernmental Panel on Climate Change(IPCC).

To effectively fulfill the responsibility of biodiversity conservation, Jihong Group complies with the Environmental Protection Law of the People’sRepublic of China, the Forest Law of the People’s Republic of China, the Law of the People’s Republic of China on the Protection of Wildlife, and otherrelevant laws and regulations, which standardize biodiversity protection processes.Prior to project construction, the Company strictly implements the environmental impact assessment system and follows the risk managementprocess of identification, mitigation, transfer, acceptance, and control. Through scientific assessment, the Company proactively avoids and minimizespotential impacts on biodiversity. In parallel, the Company has established a dynamic optimization mechanism to continuously improve factorymanagement policies and conservation measures based on assessment outcomes, driving biodiversity conservation efforts toward a more systematic andrefined approach.

RiskIdentification

·Raw Material Procurement Stage: Assess potential biodiversity risks linked to sourcing endangered or protected raw materials.·Production Process Stage: Evaluate how energy consumption and pollutant emissions during manufacturing affect local ecosystems and biodiversity.·Transportation Stage: Analyze the environmental impact of fuel consumption and exhaust emissions, as well as how transportation activities disrupt roadside ecosystems.·Waste Disposal Stage: Identify risks related to improper disposal of solid waste and wastewater, which can harm soil, water bodies, and air biodiversity.

Risk Mitigation

·Optimizing Raw Material Procurement: Source materials from sustainable suppliers, avoiding those linked to endangered or protected species. Work closely with suppliers topromote eco-friendly procurement practices.·Improving Production Processes: Adopt energy-efficient technologies and environmentally friendly equipment to reduce energy consumption and pollutant emissions.·Green Transportation Management: Optimize transport routes to improve efficiency and reduce fuel use. Encourage the transition to new energy vehicles to lowertransportation-related environmental impact.·Enhancing Waste Management: Establish and improve solid waste and wastewater treatment facilities to ensure compliant discharge. Promote waste classification, recycling,and resource recovery to reduce environmental strain.

Risk Transfer

·Insurance Strategy: Purchase environmental liability insurance to cover potential compensation costs if biodiversity damage occurs due to environmental pollution.·Partnerships and Agreements: Establish clear environmental responsibility agreements with suppliers, customers, and business partners to reinforce biodiversity protectionacross the supply chain.

Risk Acceptance

·Financial Reserves: Set aside environmental risk reserves to cover potential costs related to biodiversity damage.·Adjusting Business Strategies: Modify business strategies as needed to mitigate the impact of risks on business performance.·Developing Environmental Incident Emergency Plans: Implement rapid response protocols for environmental incidents. Conduct regular emergency drills to ensure employees areprepared to handle biodiversity-related emergencies effectively.

Risk Control

·Establishing an Internal Audit System: Conduct regular environmental audits to evaluate the effectiveness of risk management efforts. Use audit findings to refine managementpolicies and operational procedures for continuous improvement.·Monitoring and Evaluation Mechanism: Continuously assess production and operational activities to identify potential biodiversity risks early. Implement an environmentalmonitoring system to track wastewater, waste gas, and solid waste emissions in real-time and through scheduled evaluations.

Biodiversity Protection Management Process

5 Social:

Giving Back to SocietyIn pursuing sustainable development, the social dimension has long been a fundamentalcornerstone for the Company to build trust and create shared value with all stakeholders. Thecommitment to social responsibility is reflected not only in product innovation and serviceoptimization but also in every aspect of supply chain collaboration, employee development, healthand safety management, and community prosperity. The Company strives to build a sustainablefuture together with all sectors of society.

Responsible product management represents not only a source of corporate competitiveness butalso a profound commitment to society. Jihong Group is dedicated to providing safe, reliable, andsustainable products and services through a full life cycle quality management system, a customer-centric service mechanism, stringent information security safeguards, continuous technologicalinnovation and R&D, and systematic intellectual property protection. In doing so, we create long-termvalue for our customers and contribute to social progress through technological strength.

5.1.1 Quality Management

Quality Management System

Jihong Group strictly complies with theProduct Quality Law of the People's Republic of China

and other relevant laws and regulations. Based on its operational needs, the Company has establisheda quality management system and formulated over 30 internal management policies and procedures,including theQuality Risk Assessment and Control Procedures,theGlass and Fragile Items ControlMeasures,and the Product Recall and Simulated Recall Control Procedures, which define clearstandards and specifications for various quality inspections, continuously improving product quality.

To continuously enhance the product quality management system, the Company has formulatedquality and safety policies and goals, and established a quality management structure to fully ensureproduct quality and safety. Meanwhile, stringent controls are implemented across all critical stages ofthe product lifecycle, ensuring that product quality complies with relevant regulatory and systematicstandards and consistently meets customer requirements. In 2025, the Company recorded zeroproduct recalls and no major safety or quality incidents related to products and services.

Quality and Safety Policies and Goals at Jihong Group

Quality Plan

Leadership

Guiding Documents: Documents providing overallinformation about the organization’s QMS to internalor external parties

Procedural Documents

Management

Implementation Documents: Documents used tocontrol processes

Third-Level Documents: WorkInstructions, Inspection Procedures,and Standards

Execution

Operational Documents: Documents specifying workinstructions for task execution

Quality Records

On-SiteActivities

Verification Documents：Documents serving asevidence that products meet requirements and thatthe system operates effectively

Quality Control

Department

QualityControlSupervisorQualityControlManager

SystemSpecialist

Process Inspector

Shipment InspectorIncomingQuality Control

Inspector

Jihong Group’s Quality Management Structure

Label SerialNumber

?Assigning unique serial numbers to each label to

accurately control printing volumes at the source,laying a traceable foundation for source datamanagement.

Label Printing

?Determine the application quantity based on the plan.?Conducting first-piece verification of label printing;?Printing labels according to the planned quantity;?Handing over the printed labels and record the

details in theLabel Printing Application Record Form.

LabelApplication

?Conducting first-piece verification again during

machine production and send it to the designatedWeChat group for supervision.?Planning label usage per production batch during

machine operation, ensuring a step-by-step closed-loop process.

LabelVerification

?At the end of each shift, the machine operator, team

leader, and QC personnel jointly verify the quantity ofeach label type to ensure that total consumptionmatches the quantity received, thereby achieving fullclosed-loop management.

2 bases completed FSC trade certification

5 production bases have completed FSC certification

2 production bases have received BRCGS A+ gradecertification, and 1 production base has received BRCGS

A grade certification

10 production bases have obtained the ISO 9001 Quality

Management System certification

Quality Management Certification

As of the end of the reporting period, all ten production bases of Jihong Group have obtainedISO 9001 Quality Management System certification, establishing a systematic and standardizedcomprehensive management guarantee and laying a solid foundation for the continuousimprovement of product quality.

Jihong Group’s Quality Management Certificates

One-Code-Per-Box Labeling Closed-Loop Management Process

Quality Management MeasuresTo comprehensively enhance the efficiency and effectiveness of quality management, theCompany is advancing the digital transformation of its quality management system. By integratingERP

and MES

systems, we have established a full closed-loop management chain covering businessoperations and production execution, realizing full transparency of the production process and refinedquality traceability. Against this foundation, the Company has continued to implement the one-code-per-box whole-process labeling management system, enabling precise traceability and efficientcontrol from raw material procurement to finished product delivery. Such practices continuouslyelevate the sophistication of quality management and deliver more reliable product quality assuranceto customers.

4.ERP （Enterprise Resource Planning）

5.MES （Manufacturing Execution System）

The Company has established a cross-border product quality management system covering the full cycle of sourcing, warehousing and logistics, which systematically safeguards productquality and customer experience for the e-commerce business. In the sourcing stage, the Company focuses on product quality, market adaptability and consumer demand, and implements strictcontrol over product selection criteria. In the warehousing stage, refined warehouse management and environmental control are adopted to ensure safe storage and stable quality of goods. In thelogistics stage, strict performance supervision is imposed on logistics carriers to guarantee product integrity throughout the transportation process.Quality Management Measures for Cross-Border Social E-Commerce Business

Sourcing

Warehousing

Logistics

?Product Selection: Selectors choose products and input details.?Review Mechanism: Product selection team leaders review categories to ensure they meet

market demand and quality standards.

?Inbound Inspection: Follow strict receiving procedures, conduct unpacking inspections, and

accept goods only if they meet company quality standards.?In-inventory storage： Follow proper storage principles—heavy items at the bottom, light

items on top; large items at the bottom, small items on top—to prevent damage.?Quality Inspection: Conduct daily, weekly, and monthly quality and quantity checks, and

maintain strict inventory supervision.?Smart Applications: Develop a warehouse management app for intelligent inventory control.

?Supplier Requirements: Logistics suppliers must provide high-quality air and land

transportation routes and meet established standards for handling customer complaints.?Shipment Management: The logistics department oversees supplier management, while the

customer service team handles logistics coordination, ensuring compliance with

transportation management procedures.

Through centralized management of calibration and inspection, coupled with lean optimization of internal inspection processes, the Company has established a sustainable cost-saving mechanism within qualitycontrol procedures. This has delivered tangible results in cost reduction and efficiency improvement, effectively enhancing the economic efficiency of quality management.Cost Reduction and Efficiency Improvement Measures at Jihong Group

Unify external calibration to achievecost reduction by scale

We have promoted three facilities to establish centralized calibration cooperation with external instrument calibration institutions, and following implementation, the overall calibration cost of each facility has been significantlyreduced.

Integrate external inspection to reducetesting costs

We have successfully negotiated with external testing organizations to consolidate the testing projects of the three facilities into a unified submission for inspection, and this measure has been fully implemented.

Optimize internal sampling to reduceresource consumption

The sample retention system and destructive sampling procedures at the three facilities have been revised. By scientifically adjusting the frequency, quantity and sampling ratio of sample retention, cost savings have beenrealized while ensuring the effectiveness of quality monitoring.

QualityManagementAwards

On July 18, 2025, at the McDonald's Supplier Quality Forum, Xiaogan Factory won the "Class-AQuality Medal."

On September 16, 2025, Xiaogan Factory andLangfang Factory were both selected as the "Class-AQuality Award" for H1 2025.

On November 6, 2025, at the McDonald's Global Supplier Quality Conference in Indonesia, Xiaogan Factory andLangfang Factory respectively won the first and second prizes of the "Food Safety Quality Culture Tour", and theCompany won the Excellent Team Award for Food Safety Culture.

Quality Culture BuildingTo build a sound quality management system, the Company continuously promotes a strong quality culture. Through Monthly Quality Meetings and Weekly Quality Review Meetings, the Company systematicallyreviews and plans quality objectives and performance. In addition, the Company organized management personnel from all production facilities to complete BRCGS

7.0 certification training, and carried out selection andrecognition activities to enhance quality awareness and professional competence among all employees. These initiatives strengthen employees’ motivation and sense of honor in participating in quality improvement, andfacilitate the integration of quality culture into daily operations and practices.

Case: Monthly Quality MeetingTo continuously enhance product quality and customer satisfaction, the Company organizes monthly quality meetings acrossthree FCP factories. These meetings bring together management and key machine operators from each facility to jointly reviewquality performance against the previous month’s targets, analyze typical quality issues, and formulate improvement andpreventive measures. Through in-depth discussion, the meetings strengthen team-wide quality awareness, promote the effectiveimplementation of quality control mechanisms in daily operations, and drive the continuous optimization of product quality.

Activities atMonthly Quality Meetings

Case: Weekly Quality Review MeetingsThe Quality Department holds weekly quality review meetings to focus on quality issues identified in the previous week. Ateach meeting, the responsible department leads machine operator teams in discussion, develops detailed improvement plans,and assigns supervisors to follow up and report progress. Regular weekly reviews enable timely rectification and closed-loopmanagement of quality issues, support ongoing refinement of production processes, and further elevate product quality andcustomer satisfaction.

Weekly Quality Review Meetings

The Company has arranged unified specialized training on the BRCGS 7.0 standard for all management personnel at food packagin

Case:BRCGS7.0StandardSpecializedTraining

gfactories. A total of 42 employees participated, all of whom passed the assessment and obtained internal auditor certification. Thisdemonstrates that the Company has established a professional, full-coverage internal quality audit team.

Case: Quality Awarding Conference

To further strengthen quality awareness among all employees, the Company regularly recognizes and publicizes outstanding performanceby collectives and individuals in quality management. By setting benchmarks and commending advanced examples, the Company motivates allemployees to learn from excellence, embed high standards and strict requirements into every aspect of daily operations, and jointlystrengthen the foundation of quality culture.

Quality AwardingConference

Quality Awarding Conference

Printing Quality Excellence Unit

Award

Post-Printing Quality Excellence

Unit Award

GMP Excellence Unit Award

Bag-Making Quality Excellence Unit

Award

Monthly "Quality Star" Award

6.BRCGS：Brand Reputation through Compliance Global Standards

5.1.2 Customer Service

Jihong Group adheres to a customer-centric approach, focusing on enhancing user experience. The Company is committed to delivering a high-quality service experience covering the entire pre-sales, sales, andafter-sales process. To ensure standardized and efficient services, the Company has formulated internal management documents, including theCustomer Service Process Management Proceduresand theCustomerMaintenance Management System, and established a communication and management mechanism covering the entire customer lifecycle. The Company strives to accurately respond to customer demands, continuouslyoptimize service quality, and improve customer satisfaction.

Jihong Group consistently regards customer feedback as a vital source of value creation. The Group has formulated theCustomer Complaint Handling Operation Process (For Sales Segment)to clarifyresponsibilities and standards for each procedure, and established a systematic, hierarchical, and cross-departmental collaborative customer complaint management system. With the goal of rapid response, fair handling,and thorough improvement, the system drives internal process optimization to reduce the customer complaint rate at the source and enhance customer satisfaction.

The Company has established a robust customer complaint handling process deeply integrated with multiple business processes, ensuring full traceability of issues and clear assignment of accountability. Correctiveactions are effectively embedded into relevant operational procedures, forming closed-loop management. To allocate resources rationally and respond promptly to major concerns, the Company has implemented a four-level customer complaint rating system (Levels A–D), with differentiated response times and processing requirements for different levels to ensure priority handling of key issues.Customer Complaint Handling Process at Jihong Group

CustomerComplaintHandling

Receive Customer Complaints

Assign a Department to Follow Up

Handle Customer Complaints?When there is a customer complaint, the Company promptly communicateswith customers and handles complaints, follows up on internal issue handling,and responds to the customer.

?The Company analyses causes and responsibilities as soon as possible after

receiving customer complaint information.?The Company provides professional investigation reports and feedback on

corrective measures to customers in collaboration with the relevant

responsible departments.

?The company communicates with and coordinates with customers to avoid

the risk of returns.?The Company arranges personnel for rework, follow-up, or selection at the

customer's site.?The Company initiates the standardized return process if necessary.

In2025,theCompanyfurtheroptimizedthecustomercomplainthandlingprocessandstrengthenedsystematictrainingforrelevantpersonnel.Weintensifiedroot-causeanalysisofcustomercomplaints,promotinginternalimprovementbyidentifyingtheunderlyingcauses.Acustomercomplaintrateanalysisdashboardhasbeendevelopedtovisualizeandanalyzecomplaintdatafrommultipledimensions,monitortrendsdynamically,andaccuratelypinpointhigh-frequencyandfundamentalproblems.Thisensuresscientificandforward-lookingdecision-makinginqualitymanagementandcustomerservice,reducingcustomercomplaintsatthesource.In2025,theCompanyreceived35customercomplaints,witha100%resolutionrate.Case：Professional Competence Training for Brand Customer ServiceOn November 21, 2025, the Company organized a special training session entitled Order Types and Platform Differentiated Service Processes. The training was designed for allcustomer service staff, aiming to systematically explain and consolidate standardized, scenario-based service processes and response strategies applicable to different order types andthe differentiated characteristics of various e-commerce platforms. Through this training, the customer service team further understood service standards and key communicationpoints in diverse business scenarios, strengthened their professional capabilities in handling complex orders and platform-specific issues, and effectively reduced the customercomplaint rate.Training on the Site

ProductRecallMechanismThe Company strictly follows key quality management documents, including theProduct Recall Procedure,theCorrective and Preventive Measures Management Procedure,theQuality Non-ConformanceManagement System, and the Quality Assessment Management System. The Company clarifies the standardized product recall process, conducts recalls and rectifications for non-conforming products, and continuouslyimproves the overall quality management level. Under the leadership of the General Manager, the Company has established a cross-departmental Product Recall Task Force composed of heads of relevant departments tosupport and implement product recall activities. In this way, a complete closed-loop management mechanism is formed, covering recall execution, rectification, and accountability implementation.

Sales DepartmentReceived customercomplaint requiring

product recall

Management Team

Review and approve

General ManagerOrganize investigation,timely analyzeand formulate corrective

measures

Quality ControlDepartmentConduct product recall

Jihong Group continuously optimizes its end-to-end customer service experience through the ShopPlus website platform and intelligent marketing tools, and has established a systematic service guaranteemechanism. The Company has formulated theGiikin Customer Operations After-Sales Service Policyto clarify and standardize the return and exchange process, safeguarding customer rights and interests. In responseto order rejections, the Company has established a daily follow-up and analysis mechanism to conduct in-depth research on the causes of rejection. On this basis, targeted improvement measures are developed to drivecontinuous optimization of service processes and product experience, effectively enhancing customer satisfaction and willingness to repurchase.

UnderstandingCustomer Needs

Negotiation Based on

Standard Return andExchange Procedures

Customer Return and

Exchange Reminder

Product Recall Mechanism

Return and Exchange Process

ImproveServiceQuality

In 2025, the Company systematically upgraded the customer service experience by expanding service dimensions and optimizing communication mechanisms. TheCompany provides customers with professional market research and customized solutions, carries out targeted process and technology training, and establishes an efficientR&D and sampling channel. Relying on the Official WeChat Account, the Company achieves efficient, convenient real-time communication and rapid response. These integratedservices and technical support have significantly improved the quality and responsiveness of customer service, as well as overall customer satisfaction.

User Experience Enhancement Measures for Paper-Based FMCG Packaging Solutions Business

Project TypeSpecific MeasuresPackaging Creative Design

Services

The Company provides customers with full-process packaging innovation services. Based on in-depth research into the beverage market, we design innovative and practical solutions through creative screening and user testing, andultimately deliver physical samples.

Customer Training Materials

Services

The Company offers professional insight training services for customers in the packaging industry. Drawing on in-depth research into product characteristics, packaging and transportation, as well as domestic and international markettrends for yogurt packaging, we combine insights with customers’ product portfolios to deliver systematic analysis. This supports businesses in accurately positioning their needs and developing more competitive packaging solutions.

Introduction of RapidPrototyping Equipment

The Company has introduced rapid sampling equipment, significantly shortening the sampling cycle, efficiently optimizing printing effects, and providing accurate parameter support. These measures have greatly improved the efficiency ofpackaging services.

Customer Satisfaction Survey Measures

CustomerSatisfactionSurvey

The Company has established a systematic customer feedback mechanism to continuously optimize the customer shopping experience. The Company carries out daily satisfaction surveys focusing on product quality,packaging experience, logistics efficiency, and delivery services, systematically collecting genuine customer feedback across the entire service process. Through in-depth analysis of feedback data, the Companyaccurately identifies service weaknesses, promptly takes improvement measures, and promotes closed-loop problem resolution, thereby enhancing customer satisfaction and earning wide recognition from customersCross-border Social E-commerce Sector

.

The Company strictly implements theCustomer Maintenance Management Systemand regularly conducts multi-dimensional customer follow-ups and satisfaction surveys. The survey covers key indicators, includingoverall impression, service quality, product quality, innovation capability, technical support, delivery performance, and price competitiveness, so as to comprehensively evaluate customer satisfaction with our cooperation. Inresponse to the shortcomings identified in the surveys, we conduct root-cause analysis and actively listen to customer improvement suggestions. On this basis, we formulate and implement targeted improvement plans tocontinuously consolidate and deepen cooperative relationships with customersPaper-based FMCG Packaging SolutionsSector.

The Company always places customer satisfaction at the core of its operations. Through the strict implementation of theCustomer Maintenance Management System, theCompany carries out systematic and regular customer follow-ups and satisfaction surveys. The Company not only fully collects customer feedback, but also focuses on in-depth root-cause analysis of issues, and formulates targeted and actionable improvement plans accordingly to promote closed-loop implementation, so as to enhance servicequality and customer experience.In 2025, the Company conducted a customer satisfaction survey, achieving a customer satisfaction rate of 95.90%.

Information Security Management Structure at Jihong Group

Jihong Group positions information security as a strategic priority for development and i

TheCompanystrictlycomplieswiththeRegulationsofthePeople’sRepublicofChinaonProtectingtheSafetyofComputerInformationSystems,theBasicRequirementsforClassifiedProtectionofInformationSystemSecurity,theInformationsystem securitymanagementrequirements,andotherrelevantlawsandregulations.Tostrengthenitsnetworkanddatasecurityframework,theCompanyhasdevelopedasetofinternalpolicies,includingthePersonalInformationProtectionPolicy,theCybersecurityManagementPolicy,thePublicCloudSecurityManagementPolicy,theCustomerInformationConfidentialityManagementPolicy,andtheNetworkandDataSecurityIncidentManagementandEmergencyResponsePlan.Thesepoliciescomprehensivelypromotetheeffectiveimplementationofinformationsecuritymanagement.

scommitted to building a scientific, comprehensive, and efficient information security governancesystem. The Company has set up a multi-level management structure led by the InformationSecurity Committee, with coordinated operations among the Information Security ManagementTeam, Information Security Technology Team, and Information Security Audit Team. With clearand closely linked responsibilities, the teams form a closed-loop process covering strategyformulation, technical implementation, and independent supervision. This ensures the systematicimplementation and stable operation of information security measures, providing a solidguarantee for business operations and customer data security.

Board of Directors andExecutive Management

?When formulating the overall strategy of the company, systematically incorporate

information security and network security management requirements.

Information SecurityCommittee

?Implement the Board of Directors’ decisions on information security.?Coordinate information security affairs among departments.?Regularly report information security progress and achievem.ents to the Board of

Directors

5.1.3 Information Security

Jihong Group fully embeds security concepts into the operating system, adhering to the “security and prevention first, balancing management and technologies, and takingcomprehensive measures to prevent risks” approach. The Company has systematically established a comprehensive protection system covering networks, data, and applications.The Company continues to optimize our systems and processes, strengthen technical support, and enhance security awareness among all employees. The Company iscommitted to building a safe, reliable, and sustainable digital operating environment for customers, partners, and the Company itself, establishing solid security for the high-quality development.

InformationSecurityManagementSystem

Information Security Risk Management Mechanis

InformationSecurityManagementMechanism

m

Risk ManagementMechanism

Risk Identification: Utilize advanced risk identification toolsand methods to systematically identify internal and externalpotential information security threats, ensuring full coverage ofrisk assessment.

RiskAssessment:Applyscientificassessmentmodelstoconductqualitativeandquantitativeanalysisofidentifiedriskstoaccuratelyassessthelikelihoodandpotentialimpactofriskoccurrence,andachieveclassifiedriskmanagement.

To establish systematic and forward-looking information security defense, the Company hasimplemented an information security risk management mechanism covering risk identification, riskassessment, and risk response. This has enhanced information security protection capabilities andprovided a solid guarantee for stable business operations and the security of data assets

RiskRespons:Developandimplementdifferentiatedresponsestrategiesbasedonriskassessments,includingriskavoidance,transfer,mitigation,andacceptance,toensurerapidandorderlyresponsetoriskevents.

.

Information Security Management MeasuresThrough a series of measures, including strengthened access control, enhanced data encryption and backup requirements, regular information security monitoring andauditing, standardized emergency response procedures, and comprehensive virus prevention, the Company has effectively consolidated information security defense and fullysafeguarded the security of data and information systems.

Access Control

?Identity Authentication: The Company fully implements a multi-factor authentication mechanism integrating passwords and biometric features (e.g., fingerprints and facial recognition) to verify the authenticity and legitimacy of user identities and preventunauthorized access.?Access Management: In strict accordance with the principle of least privilege, the Company assigns system and data access rights to employees based on their roles and business needs via OA approval processes. Sharing business system accounts and

proxy software is strictly prohibited to prevent unauthorized operations.

Data Encryption and

Backup

?Data Encryption: The Company applies high-strength encryption to the storage and transmission of sensitive and core business data, supported by a complete key management system. Encryption tools are used during data transmission to ensure the

confidentiality and integrity of data throughout its lifecycle.?Data Backup and Recovery: A systematic data backup strategy is established to perform regular full and incremental backups, with backup data stored in remote sites. Detailed data recovery plans are developed to enable rapid and complete recovery of

business data in the event of unexpected incidents.

Virus Protection

?Prevention Stage: The Company identifies risk scenarios and summarizes high-risk behaviors, implements mandatory protection measures, and visualizes them via verification methods to block virus intrusion at the source.?Monitoring Stage: Real-time virus behavior monitoring tools are fully deployed, including enhanced ransomware protection, communication tool lock-screen shortcuts, and regular full-disk scanning mechanisms, to effectively cut off virus transmission

channels.?Outbreak Stage: Within 5 minutes of a virus outbreak, emergency isolation is conducted via network disconnection and device control. Further measures include in-depth virus scanning, full-disk formatting of infected terminals, and system reinstallation.?Long-term Protection: The Company enhances overall virus control capabilities through enterprise-level measures such as terminal control, phishing testing, and network isolation. Long-term dedicated protection is enforced for key departments,

including finance and human resources. Employee capabilities are strengthened through the development of personal security protection guidelines.

Security Monitoringand Auditing

?Security Monitoring: An integrated security monitoring platform is deployed to conduct 24/7 real-time monitoring and intelligent analysis of networks, systems, and user behaviors, enabling rapid detection, alerting, and response to security incidents.?Security Audit: The Company regularly carries out specialized information security audits to comprehensively inspect the implementation of security policies, system compliance, and the effectiveness of management measures, driving continuous

optimization of the security management system.

Emergency

Response

?Emergency Organization: An information security emergency response team is established, with clear roles and responsibilities for each member to ensure orderly command and efficient coordination during emergencies.?Emergency Plan: Emergency response plans covering various types of security incidents are formulated, specifying disposal processes, communication mechanisms, and recovery procedures. Drills and plan revisions are conducted regularly to maintain

practicality and effectiveness.?Emergency Response: Upon occurrence of an incident, the emergency team immediately activates the response plan to control impacts, restore business operations, and complete incident reporting, root cause analysis, and corrective actions, achieving

closed-loop management.

Case: Information Security Attack-and-defense DrillIn 2025, against the backdrop of accelerated digital transformation, the Company successfully conducted three rounds of information securityattack-and-defense drills on the Alibaba Cloud platform, focusing on three core scenarios: external penetration, internal control failure, andemerging threats. By simulating external hacker penetration attacks on core business systems, internal network infections caused by improperemployee operations, as well as DDoS attacks and supply chain risks targeting cloud platforms, the Company implemented a series of practicalresponse measures. These drills effectively strengthened the overall emergency response capabilities of all employees. A total of 56 systemvulnerabilities were rectified, the emergency response time was shortened by 50%, and the rate of employees recognizing phishing emailsincreased to over 85%. The Company has comprehensively optimized its technical protection system, employee security awareness, andmanagement mechanisms, which have significantly enhanced overall information security defense capabilities.

Information Security Defense Drill

InformationSecurityManagementTraining

Information Security Training

The Company attaches great importance to building an information security culture and has formulated an annual information security training plan. A systematic and highlytargeted training curriculum has been designed based on the business needs of employees in different positions and at various levels, aiming to comprehensively improve theinformation security awareness and capabilities of all employees. We conduct regular training and simulation exercises. Through the Cloud Academy platform, the Companyorganizes new employees to complete security courses such as theOffice Security Protection Guidevia Giikin Academy, followed by online assessments. The Companypromotes security knowledge in a systematic manner and incorporates real case studies, which effectively enhance employees’ prevention awareness and practical responsecapabilities.

Identification of Information Security

Risks

Through scenario analysis, the Company effectively identifies five major information security risks, including viruses and Trojans, information leaks, social engineeringfraud, targeted attacks, and threats from wireless and mobile terminals, so as to enhance risk prevention awareness among all employees.

Prevention of Phishing Emails

Focusing on common disguising methods, identification techniques, and standardized handling procedures for phishing emails, the Company strengthens employees’ riskawareness through interactive teaching.

Virus Prevention and Removal

The Company deeply analyzes virus transmission routes, identification, prevention and recovery strategies, and combines scenario-based testing to consolidate practicalcapabilities.

Secure Use and Protection of Office

Computers

The Company emphasizes the importance of standardized usage, systematically explains protection configurations, prevention techniques, personal informationprotection, and security incident response, and strengthens the terminal security defense line.

To foster a strong safety culture across the organization, the Company has adopted a variety of initiatives, including launching safety awards and organizing safetyknowledge competitions, to boost engagement among all employees and embed safety awareness into daily operations and team activities.Safety Culture Building

Safety Star AwardThe Company has established the “Safety Star” award to recognize employees with outstanding safety awareness, setting a benchmark for the whole team.

Experience Sharing PlatformAn experience-sharing platform has been built to encourage employees to actively exchange safety protection skills and promote mutual improvement across the team.

Safety Knowledge CompetitionSafety knowledge competitions are organized to stimulate employees’ enthusiasm for learning safety-related knowledge.

Promotion Poster on SafetyThe Company creates safety promotion posters and displays them in office areas to continuously remind employees to prioritize safety in daily work.

With “data-centric and technology-driven” as a strategic focus, and based on the dual-engine-driven business model of the packaging business and cross-border e-commerce, the Company has achieved astrategic upgrade from “technology empowerment” to “intelligent ecosystem”. Focusing on core technologies including artificial intelligence, big data and cloud computing, the Company has systematically built nine keytechnology systems covering intelligent video processing, intelligent image generation, intelligent marketing, risk control detection and other fields, forming end-to-end digital operation capabilities covering the front,middle and back ends of the business

InnovationandR&DStrategy

.

In 2025, the Company further increased R&D investment and achieved breakthroughs in AI middleware, multimodal large model applications, intelligent systems and other fields. The accuracy of video multimodalsearch reached more than 90%, the availability of image translation exceeded 95%, and the accuracy of knowledge base Q&A exceeded 95%. At present, relevant technologies have been widely applied in contentgeneration, advertising, order fulfillment, warehousing and logistics, reducing operating costs, improving business efficiency and continuously optimizing the end-to-end user experience.

5.1.4 Innovation and R&D

Jihong Group regards technological innovation as the core engine of development and continuously deepens the application and empowerment of technology in digital operations. The Company has establishedinternal management systems, including theInnovation Management Systemand strictly follows theNew Product Design and Development Management Procedure. The Company has comprehensively deployed cutting-edge fields such as cross-border social e-commerce and intelligent systems, and built differentiated competitive advantages through technological capabilities. In 2025, the Company spent RMB 136.10 million on R&D,accounting for 2.02% of operating revenue. The Company employed 602 R&D personnel, representing 12.66% of the total workforce. We are committed to building an integrated service ecosystem, continuously meetingdiverse customer needs with end-to-end response capabilities, and promoting the continuous business structure upgrading.

Driven by data and artificial intelligence, the Company fully empowersmarketing and operational links to support digital transformation andsustainable growth. The Company continues to deepen the “GoodsDiscovering People” business model, using AI algorithms to conduct in-depthanalysis of overseas markets, accurately build user profiles, and developdifferentiated strategies based on a value hierarchy system to precisely reachtarget users through multiple channels. Meanwhile, the Company hasestablished a complete performance data collection and evaluation mechanism,realizing full-process data-driven and intelligent optimization from insight,outreach and conversion to iteration, so as to promote the high-qualitydevelopment of the cross-border e-commerce business

IntelligentE-commerce

.

Jihong Group's Cross-Border E-Commerce “Matching Goods to TargetCustomers” Business Process

·Big Data Analysis for Product Selection·Ad Page Creation·Targeted Advertising Placement·Customer Places an Order·Warehouse Shipment·International Logistics Distribution·Order Completion

Jihong Group deeply integrates the social media ecosystem with onlineshopping scenarios, establishing an agile operation model of “matchinggoods to target customers”. The Group has built systematic competitiveadvantages in key areas, including marketing accuracy, operationalintelligence, and supply chain agility. This model not only reshapes the logicof e-commerce operations but also establishes differentiated barriers forthe Company’s sustainable growth.

Cross-Border E-Commerce Sales Model at Jihong Group

Goods?Utilize an AI-powered productselection platform to conduct preciseproduct selection through big data.

Discovering

?Leverage social networks such asMeta, Google, and TikTok asmarketing channels.?Implement targeted marketing basedon big data algorithms.

People?Accumulate a massive user basethrough the integration of mobileinternet and social networks.?Apply user-centric product selectionstrategies, leveraging intelligentanalysis of user profiles to preciselymatch product tags.

In 2025, Jihong Group continued to enhance the development of its e-commerce system by upgrading and optimizing its platform cockpit dashboard, theStar Ring Nexus Pro expert collaboration system, and the Amazon intelligent AIoperating system. The Group is committed to improving business efficiency andcompetitiveness through technological empowerment, achieving the integration ofefficiency enhancement and resource conservation.

Jihong Group’s Intelligent Model Updates

Platform CockpitDashboard

?Real-time inventory monitoring and intelligent alerts reduce storage energy consumption andpotential waste from unsold stock. Enhanced information collaboration efficiency minimizesthe carbon footprint associated with organizational communication.?Consistency in the consumer experience is ensured with rapid responses to service issues.Operational personnel are liberated from repetitive tasks, allowing them to focus on higher-value strategic work.?End-to-end visual monitoring of operational processes strengthens internal controls and risk

alert mechanisms, supporting compliant operations and fully traceable decision-making.

Star Ring Nexus Pro

System

?The Company precisely matches products and sample recommendations, which cuts down on

inefficient logistics, transportation and packaging waste. Automated workflows further reduceenergy consumption in digital operations.?We respect individual differences among experts, clarify collaboration terms, and protectcreators’ rights and interests. By automating routine work, we free up operational manpowerand enhance their sense of work value and creativity.?Programmatic execution mitigates operational risks, ensuring account security and business

continuity, which drives the standardization and transparency of all collaboration processes.

Amazon Intelligent AIOperating System

?AI-generated content and imagery enable a “zero physical shoot” model, reducing samplelogistics and photography-related energy consumption. Data-driven decision-makingminimizes ineffective inventory and resource misallocation.?The barrier to entry for small and medium-sized sellers in the global market is lowered.Operations teams are freed from tedious administrative tasks to focus on core competenciesin service and innovation.?Content compliance and image authenticity are enforced to strengthen consumer trust.Automated processes enhance overall operational stability and auditability.

Jihong Group actively builds an intelligent integrated warehousing system, with intelligent scheduling and data collaboration as its core. Through comprehensive digitaltransformation and continuous empowerment of traditional warehousing operations, the system optimizes the efficiency of core links, including warehousing operations, inventorymanagement, logistics sorting, and distribution tracking. This achieves end-to-end supply chain visibility and controllability, improves the stability and timeliness of orderfulfillment, and significantly enhances the shopping experience and satisfaction of end consumers.

SmartWarehousing

Inventory Stocking Model

?The implementation of the digital stocking model can significantly increase warehouse turnover rates. It can reduce inventory backlog and

ensure a smooth transition of products from the warehouse to the market, which significantly enhances the efficiency and agility of thesupply chain.

Digital Store

?By using event tracking on our online store, we can collect user behavior data to better understand user needs and preferences. This

allows us to improve our store’s user interface and shopping experience.?By analyzing user behavior data, our digital store can recommend products that are tailored to individual user preferences. This helps userseasily discover products they like and receive a better shopping experience.

Warehouse Management

System

?Our self-developed warehouse management system implements a “one product, one code” management policy for all inventory items. The

system allocates each item to its designated storage location and updates the inventory records in real-time.?The system is equipped with intelligent matching and product distribution capabilities to quickly prepare and deliver orders while reducing

the risk of shipping errors.?The system can automatically intercept abnormal orders, and relevant personnel will take swift action to ensure the problem is resolved in

a timely manner.

Intelligent Picking System

?Our picking process is automated and intelligent. Our warehouse system automatically generates the optimal picking path, product location,

and product information upon receiving an order, and sends the data to the picker’s PDA device. This system has made the goods-picking

process much more convenient and efficient.

Automatic Weighing System

?Our intelligent weight and size measurement system can rapidly and accurately assess the weight and size of packages and provide

precise logistics data to logistics and warehouse management teams.

Unpacking and Packing

Device

?We use an automatic packing device to streamline our order processing and improve the quality, efficiency, and cost-effectiveness of our

packaging.

Integrated Smart Housing System at Jihong Group

In 2025, the Company closely aligned efforts with the goals of intelligence and lean management in warehousing and logistics, continuing to drive system optimization andmodel innovation.Intelligent Warehousing Updates at Jihong GroupLaunching Intelligent Small Goods

Receiving System

?By integrating electronic scales with cameras, the system enables real-time product photography upon goods receipt and automatic weight collection forindividual items, improving the basic product database.?By incorporating volumetric data recorded in the system, the system provides the operations team with a reliable and accurate basis for cost estimation,supporting refined cost control.Implementing the PAK Package and

Correspondence Delivery Mode

?Compared with the original delivery model, this model reduces the average logistics cost per unit by RMB 4–8, achieving substantial cost savings.?The system automatically identifies eligible orders based on preset conditional rules and labels them accordingly. Following assisted manual verification, itsupports “one-click order replacement”, streamlining operational processes.Reforming Warehouse Piecework

Performance System

?Differentiated piece-rate standards are established based on job characteristics, with dynamic rules implemented for new products and seasonal items. Thesystem supports monthly adjustments to historical rules to improve adaptability.?Performance data visualization enables optimized personnel allocation and enhances the overall shipping efficiency of the warehouse.

The Company takes innovation as its core driving force and continuously promotes the value-oriented and systematic upgrading of the packaging business. With graphicdesign, solution optimization, and marketing planning as the core pillars, the Company deeply integrates into the fast-moving consumer goods (FMCG) market, accuratelyresponding to and leading consumers’ daily needs. For world-renowned FMCG customers, the Company provides customized packaging solutions covering a full range ofcategories and multiple scenarios, including color box packaging, eco-friendly food packaging color cartons, eco-friendly tote bags, and bundled packaging.

By establishing a one-stop supply chain service system covering planning, design, production, and sales support, the Company is committed to providing customers withcomprehensive packaging solutions that integrate market foresight and brand performance, empowering brands to achieve value enhancement and sustainable growth.

MarketingPlanning

Design/PlanOptimization

Manufacturing

Transportationand Distribution

SalesOne-Stop Packaging Services at Jihong Group

InnovativePackaging

In 2025, the Company won the Second Prize in the “China Competition ofCreative Design Packaging” for outstanding creativity and professionalexpertise in packaging design. This award not only recognizes the Company’sdesign and innovation capabilities but also reflects its professionalachievements in continuously pursuing the integration of aesthetics,functionality, and market value in packaging solutions.

Certificate and Works for Second Prize in the China Competition of Creative Packaging Design

The Company has always adhered to the core values of “responsibility, innovation,and achievement”. The Company actively integrates internal and external scientificresearch resources, establishes in-depth collaborative partnerships with teams,universities, industry associations, and stakeholders across the industrial chain, andjointly builds an open and innovative technology ecosystem. Through continuous effortsin advancing technological exchanges, resource sharing, and joint R&D, the Company iscommitted to gathering multi-party expertise to jointly shape a blueprint forsustainability within the industry.In terms of industry-university-research cooperation, the Company has furtherdeepened strategic collaboration with universities. The Company has successivelyestablished industry-university-research cooperation bases with several institutions,including Anhui University, the School of Fine Arts at Ningxia Normal University, and theBeijing Institute of Graphic Communication, focusing on joint technologicalbreakthroughs and the cultivation of high-end talents. These efforts also inject sustainedimpetus into industrial innovation.Case: Beijing Institute of GraphicCommunication and Hohhot Jihong Printingand Packaging Co., Ltd. Jointly Establish anInternship and Practical Teaching Base

On July 29, 2025, Zhang Xin, Secretary of the Party Committee of BeijingInstitute of Graphic Communication, and Chen Dan, Vice President, visitedHohhot Jihong Printing and Packaging Co., Ltd. They held in-depth discussionswith Lin Guoliang, General Manager of Hohhot Jihong, and otherrepresentatives on student internship base building, joint talent cultivation,industry-university-research collaborative innovation and other key topics.Both parties agreed to jointly establish an internship and practical teachingbase, and planned to set up the “Inner Mongolia Printing and PackagingResearch Center”. Through the “government-industry-university” Coordinationmechanism, the two sides would advance research on printing technologiesand the transformation of scientific and technological achievements. Thiscooperation would further deepen collaboration in talent development,technological research and industrial upgrading, and jointly promote the digitaland intelligent transformation and sustainable development of the printingindustry.

University-Enterprise Cooperation Conference

InnovativeCollaboration

In the e-commerce business sector, the Company attaches greatimportance to ethical issues arising from the application of artificialintelligence (AI) technology. Guided by the core principles of people-oriented, safe and controllable, fair and just, transparent and explainable,the Company has formulated a series of internal management systems,including theCode of Ethics for AI Applications, Data Security andPrivacy Protection Management Measures, andAlgorithm FairnessReview Process. These systems ensure that AI systems meetrequirements in terms of fairness and non-discrimination, transparencyand explainability, data security and privacy protection, controllabilityand reliability, as well as cross-cultural awareness and socialresponsibility.

To ensure the effective implementation of these principles, theCompany has established a Technology Ethics (Review) Committee,which is responsible for formulating, supervising, and enforcing theGroup’s technology ethics policies. The Committee conductsindependent and professional ethical reviews of high-risk AI projects toensure that they comply with ethical principles throughout their entirelifecycle, from project initiation, R&D, and deployment todecommissioning. The Company adopts a zero-tolerance attitudetoward any violation of technology ethics and has established clearaccountability and disciplinary mechanisms.

In addition, relying on its long-term technological and practical experience in packaging and printing, the Company actively participates in the development of industrystandards, and promotes industrial standardization, innovation and upgrading with professional expertise. In 2025, the Company participated in the formulation of severalindustry standards, includingAssessment Requirements for Quality Grading and Forerunner—Bundle PackagingandGraphic Technology—Process Control for the Productionof Half-tone Colour Separations, Proofs and Production Prints—Part 6: Flexographic Printing. Based on practical experience and technical insights, the Company providedimportant references to ensure the scientificity and applicability of the standards, supporting the industry’s continued development toward greater standardization andefficiency.Innovation Achievements 2025 at Jihong Group

Giikin (Zhengzhou) Digital Technology Co., Ltd. won 2025 Data Element XCompetition (Henan Division/Section) on September 8, 2025. The project wasResearch and Application of Intelligent Product Selection and IntelligentRecommendation System in the category of commercial circulatio

InnovationAchievementsTechnologyEthics

n

On August 8, 2025, asannounced by the Departmentof Science and Technology ofHubei Province, the Companywas awarded the title ofAdvanced Technology ServiceEnterprise in Hubei ProvinceThe Company received the Advanced Intelligent Factoryaward from the Department of Industry and Information

Technology of Inner Mongolia Autonomous Region in

May 2025

The Company received the R&DInvestment Award from the Huanggang

Science and Technology Bureau in

September 2025

Intellectual Property Management System at Jihong Group

Internal Intellectual Property ProtectionExternal Infringement Risk Prevention

The Company clearly defines its intellectual property protection scope to include patents, trademarks,copyrights, design schemes, product samples, and production processes. All employees are required tostrictly abide by relevant laws, regulations and internal policies when using corporate resources andtechnologies to prevent information leak. Meanwhile, the Company standardizes the management ofemployees’ R&D achievements, patent applications, trademark registrations and other related activities,ensuring that the Company’s intellectual property is systematically protected and used in compliancewith regulations.

To avoid infringement on third-party intellectual property rights, the Company continuously strengthens employees’awareness of intellectual property protection through internal training and clarifies the responsibilities andconsequences of infringement. In the process of business cooperation, the Company strengthens the review andmanagement of suppliers and partners to ensure that their business activities comply with intellectual propertylaws and regulations. In addition, the Company has established an intellectual property dispute handlingmechanism to promptly identify and respond to relevant disputes and safeguard its legitimate rights and interests.In 2025, the Company introduced the Science and Technology Innovation Space (Professional Edition) – Science and Technology Innovation Space System Service V1.0 andadopted big data technology to establish a full-cycle intellectual property infringement prevention system covering the pre?R&D, in?R&D, and post?R&D stages. As of the end ofthe reporting period, there were no infringements on third?party intellectual property rights in the Company. The overall prevention system has been operating effectively,providing a reliable safeguard for sustainable innovation.Jihong Group’s Intellectual Property Infringement Prevention System

Pre?R&D

The Company conducts patent retrievals through the system and relies on massive innovation data to identify infringement risks.

In?R&D

The Company monitors competitors’ patent dynamics and provides intelligent warnings of potential technological barriers.

Closed Loop Process

The Company establishes a mechanism of retrieval, evaluation and adjustment, where the Legal Department and R&D Department collaborate to conduct patent analysis andoptimize technical solutions, in order to avoid infringement risks at the source.

5.1.5 Intellectual Property Protection

Tobuildasoundintellectualpropertymanagementsystem,theCompanyhassystematicallyestablishedafull-processmanagementandpreventionmechanismfromtwoJihongGroupstrictlycomplieswiththeCopyrightLawofthePeople’sRepublicofChinaandthePatentLawofthePeople’sRepublicofChina,establishingpoliciessuchastheHigh-TechEnterpriseManagementSystem,theRewardSystemfortheApplicationofR&DResults and theManagementSystemforHigh-TechProjectsThesepoliciesformacomprehensiveintellectualpropertyprotectionframeworkandaninnovationincentivemechanism,ensuringtheapplicationofR&Dachievements.In2024,theCompanyfiled90newpatentapplications,ofwhich36wereapproved,andobtained44newsoftwarecopyrights.Asoftheendof2025theCompanyhassecured445approvedpatents.dimensions:internalprotectionandexternalriskprevention.

5.2.1 Supplier Admission and Evaluation

The Company has established a complete supplier management process focusing on key areas, including supplier admission, assessment of cooperation, routinemanagement, and withdrawal mechanisms, so as to standardize full-cycle supplier management from introduction to collaboration. The relevant procedures cover supplierqualification review, cooperation supervision, and performance evaluation, ensuring systematic and effective implementation of supplier management.Supplier Lifecycle Management Process

Qualified Admission

?During the supplier admission stage, the Company conducts sustainability-oriented due diligence, with a focus on evaluating suppliers’ legal and compliant business

operations.?Through face-to-face communication, on-site inspections and verification, the Company identifies potential supplier risks in the areas of environment, labor andcompliance, and controls admission standards at the source.

Assessment Over Collaboration

and Daily Management

?The Company regularly carries out supplier performance evaluations and implements full lifecycle management covering product quality, service, cost and delivery.

Assessments are conducted semi-annually, with optimization suggestions provided.?Based on assessment results, suppliers are classified into five grades: A+, A, B, C and D, and graded management is applied. A+ suppliers (top performers) are given

priority for cooperation, while D suppliers (below the threshold) are disqualified from contract performance, so as to optimize supply chain quality.

Withdrawal

?For suppliers failing to meet assessment standards, the Company issues corrective and preventive action reports and requires rectification within a specified timeframe.

If rectification still fails to meet requirements after three consecutive procurement cycles, the Company implements elimination measures, suspends purchasing, cancels

their supplier qualification and terminates subsequent cooperation.

Number of Suppliers in 2025

Chinese Mainland

57,103

Hong Kong, Macau, Taiwan Regions of China & Overseas

Jihong Group places great emphasis on sustainable supply chain development, implementing a stranded supplier lifecycle management through policies such as the

Supplier Management Procedures, Procurement Management Procedures, Centralized Procurement Management Measures, and Sunshine Integrity Action CooperationAgreement. The Company integrates ESG requirements into its supplier management system, conducting regular ESG risk assessments, communication and training tocoordinate supply chain development and enhance sustainability.

5.2.2 Supply Chain ESG Management

Jihong Group integrates environmental and social responsibility requirements into the entire supply chain management process, focusing on key aspects including supplieradmission, cooperation evaluation, and performance management, to continuously identify and control environmental and social risks across the supply chain. In supplierselection and cooperation, the Company not only focuses on product quality and supply capacity, but also comprehensively reviews suppliers’ performance in compliancemanagement, environmental protection, and labor rights protection. The Company prefers to establish partnerships with suppliers that possess a sound ESG managementfoundation and stable performance.During supplier cooperation, the Company sets differentiated risk identification and management requirements based on the business scale and category characteristics ofindividual suppliers, with a focus on environmental protection, labor rights protection, and quality compliance as core priority areas. Meanwhile, the Company establishes clearrequirements for suppliers in environmental governance, occupational health and safety, compliance management, anti-corruption, and other related fields.Supplier ESG Management Requirements

Environmental Protectionand Quality Control

Suppliers must provide ISO 14001 Environmental Management System Certification. Preference is given to suppliers demonstrating strong environmental management practices and usingeco-friendly materials and energy-efficient production processes to reduce their impact on the environment.Suppliers must provide ISO 9001 Quality Management System Certification and implement strict quality process control measures to ensure compliance with quality requirements andminimize resource waste caused by quality defects.

Health and Safety

Suppliers must obtain ISO 45001 Occupational Health and Safety Management System Certification and undergo assessments on worker safety measures. Preference is given to thosewith strong occupational health and safety management.Chemical suppliers must provide a Hazardous Chemicals Business License, Environmental and Safety Assessment Report, Chemical Safety Data Sheets, and Compliance Declarations toensure that their production and business activities comply with safety and environmental requirements.

Compliance Managementand Anti-Corruption

Suppliers must sign theSunshine Integrity Action Commitment Letter, clearly requiring them to comply with cooperation agreements.Suppliers must adhere to fundamental laws and regulations, explicitly prohibiting corruption and bribery in contracts. Compliance risks are prevented in the supply chain throughstandardized procurement processes and supervision mechanisms.

5.2.3 Supplier CommunicationJihong Group has established a regular communication mechanism with suppliers, committed to maintaining long-term and stable cooperative relations. The Companymaintains continuous communication with suppliers on product quality management, safety management, environmental management, compliance and integrity requirements,helping them fully understand and implement the Group’s relevant management requirements and sustainability philosophy.

Meanwhile, the Company regularly provides targeted communication and guidance to suppliers. Through ongoing communication and interaction, the Group deepens mutualtrust and collaboration with suppliers, improves business synergy efficiency, and promotes the sustainable development of the entire value chain.

Case: Conducting Technical Exchanges on New EnvironmentallyFriendly Materials with Bohui Paper

Communication Meeting on New TechnologyIn 2025, the Company participated in a new technology exchange meeting organized by BohuiPaper, with a focus on its newly launched EPP zero-plastic paper cup. This product can replacetraditional coating materials, which enhance environmental performance and reduce carbonemissions. Through communication, the Company gained a deeper understanding of theperformance and application scenarios of such eco-friendly materials. On this basis, the Companypromoted sampling testing and explored practical applications and customer-side promotion,providing support for green material application and business expansion.

5.2.4 Equal treatment of SMEsJihong Group upholds the principles of fairness, impartiality and transparency in procurement activities throughout supply chain cooperation, and places strong emphasis onbuilding stable and sustainable partnerships with SME suppliers. In respect of performance and payment management, the Company strictly abides by agreements, timely fulfillspayment obligations under agreed payment terms and arrangements, and effectively safeguards the legitimate rights and interests of suppliers.During the reporting period, the Company had no overdue or outstanding payments to SME suppliers, and all procurement payments were settled in full compliance withcontract terms.

5.3.1 Work Safety

Jihong Group strictly abides by applicable laws and regulations, including theWork Safety Law of the People’s Republic of China. The Company maintains and enforces aseries of internal safety management systems, such as theWork Safety Management System, Comprehensive Emergency Response Plan for Workplace Safety Accidents,Safety Risk Classification and Control, Hidden Danger Investigation and Management System, andFire Safety Management System. These systems clarify safetyresponsibilities at all levels and promote full implementation of safety obligations through responsibility breakdown and process-based supervision.

Jihong Group Work Safety Performance in 2025：

Risk Control

The Company advances hazard identification and classified risk control, conducts systematic assessments of production processes, equipment, working environments, andemployee behaviors, and implements differentiated risk control measures.

On-Site Safety Control

The Company further strengthens safety oversight over production areas, storage areas, and equipment, mitigating safety risks through routine inspections and targetedimprovement campaigns. For the raw paper warehouse, finished goods warehouse, and key production equipment, the Company has established clear standards for materialstacking, safety passageways, and equipment protection. Regular inspections and maintenance are carried out continuously, with identified issues rectified in a timely manner.

Safety Training and EmergencyManagement for Personnel

The Company provides tiered and categorized occupational safety training tailored to the characteristics and risk profiles of positions, ensuring safety requirements areimplemented in frontline operations. All newly recruited employees must complete three-level safety training covering factory-level, workshop-level, and team-level instruction,ensuring they fully understand hazards and operational standards prior to taking up their posts. The Company strictly enforces certification requirements for employees engagedin special operations.

Emergency Drill

Based on production characteristics and potential risk scenarios, the Company optimizes the emergency management framework. The Company validates the operability ofemergency plans and the responsiveness of personnel through regular drills. Drills focus on high-risk scenarios, including fire safety, mechanical injuries, and gas leaks, enablingemployees to master emergency response procedures and enhance coordination and efficiency in incident handling.

2025 Work Safety Daily Management Measures at Jihong Group

Jihong Group attaches great importance to the occupational health and safety of employees. The Company integrates the management philosophy of “people-oriented,safety-first, prevention-focused, and comprehensive management” into the entire production and operation process, and continuously implements an occupational health andsafety management system. The Company focuses on key areas including workplace safety management, occupational health risk control, employee safety training, andemergency response management. The Company systematically advances regulatory compliance and on-site implementation, strengthens health and safety management foremployees, contractors, and other relevant parties, and is committed to providing a safe, healthy and stable working environment for all staff.

Number of work-related fatalities: 0 people; Work-related fatality rate: 0%;Lost workdays due to work-related injuries: 1,567 days; Investment in work safety measures: RMB 1.26 million.

Case Study: Ningxia Factory Identifies Safety Risk Pointsand Compiles the Hazard Identification and RiskAssessment List 2025

In 2025, in conjunction with process adjustments involving new tape applicators and paperstraighteners, the Ningxia Factory carried out a reassessment of safety risks across the entireproduction facility. Through this work, the factory formulated the Hazard Identification and RiskAssessment List 2025. A total of 674 risk points were identified and subjected to four-level riskmanagement: red, orange, yellow, and blue. No major risks were identified in this round.Case Study: Month of Workplace Safety Campaign atShaanxi Factory

In June 2025, Shaanxi Factory launched a series of Month of Workplace Safety activities under thetheme “Everyone Knows Safety Emergency Response—Identifying Hidden Hazards Around Us.” Focusedon production, warehousing, logistics and other key sectors, the campaign included safety awarenesstraining, hazard identification and rectification, emergency evacuation and fire drills, with 126 employeesparticipating.

The factory clarified safety responsibilities via a kick-off meeting, delivered training on safetyawareness and proper use of personal protective equipment, systematically reviewed and updatedhazard and risk registers, and carried out full inspections of water, electricity, gas and fire protectionfacilities across the site. All identified hazards were rectified timely. Emergency evacuation, firefightingand environmental incident response drills were also conducted to further strengthen employees’emergency response capacity and drive the effective implementation of on-site safety management.

Shaanxi Factory Held Special Meeting on Workplace Safety to Deploy Activities

Case Study: Jinan Factory Launches Fire Safety Trainingand Emergency Evacuation DrillOn November 24, 2025, Jinan Factory organized fire safety training and a full-site emergencyevacuation drill for all departments and employees, aiming to strengthen fire prevention awareness andon-site emergency response capabilities. The training adopted a format of theoretical instruction, casestudy and interactive Q&A, covering core content such as identification of fire causes and commonhazards (such as electrical faults, illegal hot work, improper management of flammable materials), firesafety laws and regulations, fire prevention responsibilities, the proper use of fire extinguishers, firehydrants and automatic alarm systems, key points for initial fire suppression, and practical escape skills(including covering the mouth and nose with wet towel, low-posture movement, and emergency exitidentification). Targeted layered questioning was implemented to identify knowledge gaps in real time,reinforcing the corporate safety philosophy of “Everyone Knows Safety Emergency Response”.

On the same morning, the factory conducted an emergency evacuation drill simulating a productionworkshop fire. The on-site emergency plan was activated promptly, with each emergency response teamfulfilling its assigned duties to guide employees in orderly evacuation and complete centralizedheadcounts. During the drill, emergency broadcasting, evacuation routes, and firefighting facilitiesoperated normally, and overall evacuation efficiency improved year-on-year. Post-drill, the factoryconducted a thorough review of identified issues and formulated targeted improvement measures,focusing on standardizing evacuation procedures and optimizing safety signage to further enhanceemergency management capabilities.

Fire Safety TrainingEvacuation Drill

5.3.2 Occupational Health and Safety

Jihong Group strictly complies with relevant laws and regulations, including theLaw of the People’s Republic of China on Prevention and Control of OccupationalDiseases. The Group continuously advances the development of its occupational health and safety management system and rigorously implements the internally formulatedOccupational Hygiene Management System. As of the end of the reporting period, all 10 of the Group’s production bases have obtained ISO 45001Occupational Health andSafety Management Systemcertification. Through regular internal audits, management reviews, and third-party supervision audits, the effectiveness of system operation issystematically evaluated, driving continuous improvement.Centered on safeguarding employee health, the Company conducts statutory occupational health examinations, including targeted physical checks for employees exposedto occupational hazards. The Company also fully covers employees with work-related injury insurance and work safety liability insurance to protect their legitimate rights andinterests. During the reporting period in 2025, the Company recorded no occupational disease incidents, and employee safety training achieved 100% coverage.

Total investment in work-related injury insurance

? 780,000Occupational Health and Safety

Investment Amount

? 480,000Number of EmployeesDiagnosed with Occupational

DiseasesPeople: 0

Number of EmployeesParticipating in OccupationalHealth Check-upsPeople: 896

Number of Employees inOccupational Disease Risk

PositionsPeople: 678

JIHONG GROUP’S EMPLOYEE

OCCUPATIONALHEALTH OVERVIEW IN 2025

Jihong Group has established a comprehensive talent management framework encompassing talent acquisition, rights protection, and capability development. Byupholding compliance and fairness in employment and recruitment, optimizing salary and benefits, communication mechanisms, and employee care, and implementinginstitutionalized talent training systems, the Company delivers sustained human capital support for stable operations and business growth.

5.4.1 Diversity, Equality, and Inclusion

The Company adheres to legal employment practices, safeguarding employees’ legitimate rights and interests. Fairness is enforced across recruitment, hiring,remuneration, performance appraisal, promotion, and career development—with strict prohibition of discrimination based on gender, age, ethnicity, origin, marital and familystatus, religious beliefs, or disability (factors unrelated to job requirements). This ensures equal development opportunities and equal pay for equal work, fostering an openand inclusive workplace culture.

To mitigate child labour and forced labour risks, the Company integrates compliance reviews into recruitment and onboarding, with rigorous identity and qualificationverification. Aligned with the Law of the People’s Republic of China on the Protection of Minors and the Provisions on the Prohibition of Using Child Labor, the Company’sCorporate Social Responsibility (CSR) Management Manual stipulates that the Company and all subsidiaries shall strictly verify employee identity information during therecruitment process and explicitly prohibits hiring minors and all forms of forced labour. Suspected violations trigger immediate investigations and disciplinary actions againstaccountable directors and personnel. No child labour or forced labour incidents were recorded in 2025.

To meet business development and talent pool development needs, the Company adopts multi-channel recruitment with publicly disclosed vacancies, ensuring transparentand equitable application opportunities. In 2025, recruitment channels included online platforms, headhunting, and campus recruitment (via campus talks and internship-to-permanent), resulting in 654 new hires: 77% social recruits, 12% internal referrals, and 8% campus graduates.

Complementing recruitment, the Company advances industry-university cooperation and targeted training. Initiatives such as the “Hongling Project” and “Hongyu Plan”cultivate grassroots skilled talents and reserve management and professional personnel. At select bases, partnerships with vocational colleges include lectures, site visits, andtailored on-the-job training to align talent development with business needs.

Recruitment Channels at Jihong Group

Campus Recruitment

Social Recruitment

Headhunting Recruitment

?Establish strategic partnerships with major universities and colleges,

identify outstanding fresh graduates in advance and reserve talentsthrough campus talks, internships, and other methods.

?Recruit through leading domestic job portals, professional talent

websites, and regional recruitment platforms, bringing in externaltalent with diverse industry experience and perspectives.

?Work with headhunting firms and talent agencies to recruit mid-to-

senior-level professionals, ensuring high-quality hires andrecruitment efficiency.

The Company has long regarded employee diversity as a key strategy for sustainability. Through a systematic talent management mechanism, the Company prioritizesemployment opportunities for diverse groups, continuously advances inclusive employment practices, and fosters an inclusive, open and diverse talent ecosystem.Highlight to Enhance Employee Diversity

Building a Diverse, Inclusive Talent Pool

Jihong Group is committed to constructing a diverse talent structure and optimizing employee career development channels to improve employee careerpathways. Through a multi-level career growth system, the Company provides equitable opportunities for employees of varied backgrounds and capabilities,enabling talents to realize their full potential.

Advancing Youthfulness Strategy and Cross-

border Talent Initiative

In 2025, the Company successfully completed the renewal of the board of directors, appointing Mr. Lu Tashan (born in 1998) as Executive Director andSecretary of the Board. This appointment of a Generation Z senior executive underscores the deepening of the youthfulness strategy.

Implementing Special Employment Plans for

Vulnerable Groups

In response to national policies, Jihong includes employment of people with disabilities in annual talent targets. In 2025, the Company recruited 32employees with disabilities, offering tailored job positions and humanistic care support. This practice not only helps fulfill corporate social responsibility butalso advances inclusive social development.

Case: Overseas Business Talent Recruitment Program 2025

To support the overseas business expansion strategy, the Company launched an overseas business talent recruitment program targeting overseas production bases in the United Arab Emirates, Oman and otherlocations. The program focuses on introducing midtosenior professionals and technical specialists for key positions, including production management, quality management and functional support. Selected candidateshave completed systematic training at domestic factories. The first batch of personnel will be deployed overseas in phases starting from 2026 to support the stable production and operation of overseas bases.

Case: Cooperation Between Xiaogan Jihong and Wuhan Vocational College of Information and Communication

Xiaogan Jihong has established an industry-university partnership with Wuhan Vocational College of Information and Communication. Through campus talks, company visits and customized training programs, theCompany has guided students majoring in intelligent manufacturing to participate in the Hongling Engineering Training Program. In 2025, a total of 21 students had officially joined the Company, providing a stable talentpipeline of skilled professionals for intelligent manufacturing operations.

Category

Unit

Data

Total Number of Employees

People

4,757

Number of Employees

by Gender

Male

People

2,387

Female

People

2,370

Number of Employees

by Age

30 and below

People

?2,113

31-40

People

1,629

41-50

People

747

51 and above

People

268

Number of Employees

by Titles

General Staff

People

4,338

Middle Manager

People

346

Senior Manager

People

73

Number of Employees

by Region

Chinese Mainland

People

4,752

Outside the Chinese Mainland

People

5

Number of Employeesby Education

Below Junior College

People

1,906

Junior College

People

979

Undergraduate

People

1,770

Graduate Above

People

102

Employment in 2025 at Jihong Group

Category

Unit

Data

Employee Turnover Rate

%

17.43

EmployeeTurnover Rate by

Gender

Male

%

16.77

Female

%

18.08

EmployeeTurnover Rate by

Age

30 and below

%

20.17

31-40

%

16.47

41-50

%

11.21

51 and above

%

17.30

EmployeeTurnover Rate

by Region

Chinese Mainland

%

17.43

Outside the

Chinese Mainland

%

5.4.2 Employee Rights Protection

The Company adheres to the principles of lawful and compliant employment, and upholds thecore guidelines of “compliance, fairness, motivation, competitiveness, and resilience”. The Companycontinuously optimizes its salary and benefits system and strengthens the protection of employees’legitimate rights and interests. Meanwhile, the Company actively promotes fairness and a strongsense of belonging among employees through effective communication and care, fostering a stable,harmonious and positive working environment.

The Company attaches great importance to employees’ needs and establishes a stable andharmonious workplace through institutionalized communication and feedback mechanisms. In 2025,the Company formulated the Employee Management Measures, which stipulate that employees whoobject to position adjustments may submit a written appeal to their department supervisor. Thedepartment management team shall review the validity of the objection and issue a final decisionaccordingly. In addition, the Company published an announcement on its office platform to solicitopinions on the transparency of human resources policies, clarifying official feedback channels towidely collect employees’ views and suggestions.

In terms of compensation and benefits, the Company has established a comprehensive salaryand incentive framework. In 2025, the Company maintained its structured salary system comprisingbasic salary, position-based salary, performance salary, commission, overtime pay and variousbonuses and allowances. The Company also integrated long-term incentives such as annualdividends and equity incentives, forming a complete short-, medium? and long?term incentivemechanism. The Company has implemented a standardized salary calculation and payment processto ensure that employees receive their remuneration on time and in full. The Company also makesstatutory contributions to social insurance and the housing provident fund for all employees, fullysafeguarding their statutory rights and benefits.

To enhance employees’ sense of gain and belonging, the Company continues to providediversified welfare programs and care initiatives. In 2025, the Company carefully organized a seriesof employee activities centered on the theme of “empowering growth, enhancing solidarity andbuilding warmth together”, covering public welfare practices, team building, ideological guidanceand other dimensions. Through participation in these activities, employees can deeply experiencethe care and further strengthen their sense of belonging and happiness.

Case Study: Holiday Benefits

The Company prepares holiday benefits and gifts for eachemployee during major festivals such as the Spring Festival andMid-Autumn Festival.

Distributes Holiday Benefits to Employees

5.4.3 Employee Training and Development

Jihong Group attaches great importance to the long-term development and upskilling of employees, and regards employee growth as a fundamental pillar of sustainability.The Company has established a systematic talent development framework centered on job competency and organizational development needs, covering talent cultivation,career progression, and employee training. Through clear career development paths and tiered training arrangements, the Company supports employees in enhancing theirprofessional capabilities and achieving career growth, and promotes the alignment of individual development with corporate strategic objectives.

The Company has put in place internal management systems, including the Employee Career Development Management System and the Talent Development ManagementSystem, and conducts regular talent assessments to build a personnel mechanism where “the capable rise, the mediocre step aside, and the incomplete leave.” The Companyhas also systematically optimized the full-cycle management of training, development and promotion. On this basis, the Company has built a talent development pathwayunderpinned by a dual-track rank system, establishing parallel promotion channels for management roles and professional specialists. The Company has standardized the rankadjustment procedure, strengthened the application of performance appraisal and talent assessment results in promotion decisions, and formed a comprehensive evaluationsystem with performance, capability and values at its core

TalentDevelopmentandPromotion

.Talent Development Plans 2025 at Jihong GroupGiikin Management Trainee Program

Jihong Group Management Talent

Development Plan

Jihong Group Strategic Talent Cultivation

Project “Hongyu Program”

?The Giikin Management Trainee Program is designed

to cultivate versatile talents with expertise in bothbusiness and management. Over 12 months, traineesgo through rotational assignments, structured training,and performance evaluations to build their skills andadaptability. Trainees rotate through roles such asBusiness Assistant, Optimization Specialist, andProduct Selection Specialist, gaining hands-onexperience through company on-boarding, businessrotations, and competitive placement exercises. Theprogram is supported by mentors-hip, regularevaluations, and quarterly reviews, ensuringcontinuous development. At the end of the program,trainees are placed in roles that match their skills andinterests, helping them grow while contributing to theCompany’s success.

?The Company identifies high-potential employees

through talent assessments and evaluations,preparing them for key leadership roles. Developmentefforts include hands-on project assignments,mentorship programs, and leadership courses,equipping employees with the skills needed formanagement positions. Qualified individuals arepromoted through direct appointments or internalselection processes, ensuring a strong pipeline ofcapable leaders. This program helps build a talentpool for roles such as Vice Presidents, departmentheads in production, PMC, quality, and equipmentmanagement, as well as frontline team leaders,supporting both employee career growth.

?The program covers four stages: selection,

development, appointment, and retention. In theselection stage, the focus is on identifying high-potential, highly committed, and highly qualifiedtalents. The development stage is based on a work-study approach, combining on-the-job training,classroom learning, and mentorship to set cleargrowth objectives, and provides dual career paths inboth technical and managerial roles. The retentionstage offers performance bonuses, salaryadjustments, and promotion incentives to support thelong-term development and stability of core talent.

In terms of employee training, the Company has established internalsystems, including the Training Management System, to standardize trainingprocedures and requirements, and has built a hierarchical and categorizedtraining system covering new employees, incumbent employees, andmanagement personnel

EmployeeTraining

.

The Company systematically carries out various training activities inaccordance with the annual training plan, including job skill enhancement,management capability development, and specialized thematic training, tocontinuously meet the development needs of different employee groups. In2025, the total annual training expenditure of Jihong Group was RMB 100,000.

Training Programs at Jihong Group

The Company conducts jobtraining (including pre-employment safety operationtraining, and qualitymanagement training, andskilled workers apprenticetraining.

In 2025, the Company launchedshort-term talent trainingprograms, with monthlyassessments of participantsconducted from March toDecember. A total of 7 multi?skilledworkers and 2 skilled workers weretrained.

In February 2025, threeemployees participated inthe intermediate vocationalqualification training andexamination for FireProtection Facility Operatorsand successfully obtainedthe correspondingqualification certificates.

To support employees’ long-termcareer development and enhancethe overall talent quality, JihongGroup has established anAcademic QualificationImprovement Program for keypositions across subsidiaries. Fullyfunded by the Company, theprogram provides systematicsupport for employees to pursuehigher academic degrees.

Job TrainingSkilled Worker

Apprentice

Training

VocationalQualification Training

AcademicQualification Training

Case: Employee Skills CompetitionIn October 2025, the Company organized an employee skills competition with multiple events designed based on the practicalneeds of frontline positions. The competition covered color matching skills for the Offset Printing Department, forklift operationfor the Storage and Transportation Department, fire safety drills for the Production Department, quality skills contests, knowledgequizzes, and PS publishing skills contests for the Technical Quality Department. The event helped employees enhance theirprofessional capabilities and safe operation standards. The Company prepared prizes for participants and on-site observers,which effectively boosted employee engagement and teamwork atmosphere.

Employee Skills Competition

Academic QualificationTraining at Jihong GroupSkilled Worker ApprenticeTraining at Jihong GroupJob Training at Jihong

Group

CategoryUnitDataTotal Training Hours for all Employeeshour(s)36,733Average Training Hours for all Employeeshour(s)7.40Average Training Hours

for all Employees byGender

Malehour(s)6.82Femalehour(s)8.12Average Training Hoursfor all Employees byTitles

General Staffhour(s)7.25Middle Managerhour(s)11.10Senior Managerhour(s)3.39Percentage ofEmployees Trained by

Gender

Male%100Female%100Percentage ofEmployees Trained by

Titles

General Staff%100Middle Manager%100Senior Manager%100

Employee Training Status in 2025 at Jihong Group

Case: Public Welfare Activity on Arbor Day– "Planting Trees to Protect Forest Together"On March 12, 2025, the Company celebrated the 47th National Arbor Dayby organizing a public welfare tree planting activity themed public welfarepractice and team collaboration in partnership with the authorities of ShifoTown. Employees traveled to a suburban public welfare tree planting base toparticipate in the event.

Public Welfare Activity on Arbor Day

Jihong Group actively fulfills corporate social responsibility by integrating philanthropy into business development, employee engagement and community development. TheCompany has maintained consistent participation in social welfare and rural revitalization initiatives through diversified channels. By leveraging resource advantages andoperational capabilities, the Company encourages employees to engage in public welfare through volunteer services and charitable activities, with a focus on supportingvulnerable groups and the needs of communities. This enables the Company’s development to better benefit society at large.In 2025, employees participated in volunteer activities for a total of 180 person-times, contributing 33 hours of service, with public welfare projects receiving aninvestment of RMB 2,819,100. Meanwhile, the Company invested RMB 70,000 in rural revitalization projects, benefiting 11,000 people.

At the site, employees worked togetherin teams to complete the whole plantingprocess orderly, including shoveling soil,fixing saplings, watering and maintenance. Intotal, more than 200saplings were planted.The activity also included a special sessionof the Exclusive Sapling Sponsor. Employeeswere able to hang customized nameplateson the sponsored saplings and commit toregular maintenance and care in the future.

6 Governance:

Stable OperationJihong Group firmly adheres to the principles of compliant operation and transparentinformation disclosure, and deeply implements a sustainability-focused development philosophy.The Company optimizes corporate governance structure, strengthens risk management system,upholds ethical and compliant business conduct, and steadily improves the systematization,robustness and effectiveness of governance practices, laying a solid foundation for the long-term and healthy development of the enterprise.

6.1.1 Board of Directors StructureJihong Group fully complies with applicable laws and regulations, including theCompany Law of the People’s Republic of China, theSecurities Law of the People’sRepublic of China, theCode of Corporate Governance for Listed Companies, theRules Governing the Listing of Stocks on Shenzhen Stock Exchange, theRules Governingthe Listing of Securities on the Stock Exchange of Hong Kong Limited, as well as other regulatory requirements of listed jurisdictions. The Company conducts operations inaccordance with internal governance instruments such as theArticles of Association, theRules of Procedure for Shareholders’ Meetings, and theRules of Procedure for theBoard of Directors. Based on actual operation, the Company has established a corporate governance and decision-making system centered on the Shareholders' Meeting, theBoard of Directors and the senior management. Director elections and appointments follow a fair and transparent process, ensuring a governance system that is efficient,compliant, and stable while safeguarding the interests of both the Company and its shareholders. The Board of Directors has established four special committees: the StrategyCommittee, the Audit Committee, the Nomination Committee, and the Remuneration and Assessment Committee. Each special committee reports to the Board of Directors,conducts research and reviews on major governance matters, puts forward professional opinions and recommendations, and supervises the implementation of relevantresolutions, thereby improving the efficiency and quality of the Board’s decision-making. As of the reporting period, the Company’s Board of Directors consisted of 9 members,including 4 independent directors and 5 non-independent directors (including 1 employee representative director), with independent directors accounting for 44% of the Board.Governance Structure

Shareholders' Meeting

?The Shareholders’ Meeting, as the highest governing body, is responsible for deciding business strategies and investment plans. It has the authority to appoint and

dismiss directors and supervisors and make key company decisions.?The Company follows strict procedures for convening, conducting, and voting in Shareholders’ Meetings. A structured communication strategy is in place to encourage

participation, ensuring that all shareholders, including minority shareholders, have equal standing and legal rights.?In 2025, the Company held four Shareholders’ Meetings.

Board of Directors

?The Board of Directors, as the permanent body, is responsible for setting business plans and investment strategies, convening Shareholders’ Meetings, and executing

their resolutions. The Board is directly accountable to the Shareholders’ Meeting.?In 2025, the Company held 7 Board of Directors meetings, with a 100% attendance rate among board members.

Senior Management

?Senior Management, as the executive branch of the Board of Directors, is fully responsible for daily operations and management under the Board’s leadership.

Jihong Group views sound corporate governance as a core engine for steady growth. Guided by the philosophy of lean governance, the Company further refines governancemechanisms, enhances the board professionalism and diversity, improves the scientificity and foresight of strategic decision-making, effectively protects the rights andinterests of shareholders, and promotes sustainable, high-quality and sound development.

6.1.2 Diversity of the Board of DirectorsJihong Group emphasizes the diversity and professionalism of the Board ofDirectors. In the selection of directors, the Company comprehensively considersmultiple factors, including gender, age, professional competence, industryexperience and educational background. This ensures that Board members possesssolid professional qualifications, extensive industry experience and complementaryknowledge structures covering key fields such as finance, law and corporatemanagement, thereby ensuring informed and effective decision-making. Meanwhile,to maintain the stability and initiative of the Board, the Company has established aperformance-based remuneration and incentive system, which effectively motivatesdirectors and senior management to perform their duties diligently. As of the end ofthe reporting period, Jihong Group’s Board includes 2 female directors.Composition of the 6th Board of Directors

Positions

Name

Gender

Age

Committee Appointment Status

StrategyCommittee

AuditCommittee

NominationCommittee

Remuneration

andAssessmentCommittee

Non-IndependentDirectors

ZHUANG Hao

Female

C

ZHANG Heping

Male

M

M

ZHUANG Shu

Male

M

LU Tashan

Male

BAI Xueting

Female

Independent

Directors

ZHANG Guoqing

Male

C

M

DENG Yihai

Male

M

C

CAI Qinghui

Male

M

C

XUE Yongheng

Male

M

M

7.C: Chairman of board committees, M: Members of board committees

6.1.3 Investors Communication MechanismJihong Group is guided by investor needs and adheres to the principles ofopenness and transparency in information disclosure, maintaining a clear andefficient communication mechanism with investors. The Company introducesmanagement philosophy, corporate culture, and business performance throughshareholders’ meetings, earnings briefings, and other channels. To effectively protectinvestor and shareholder legitimate interests, the Company continuously improvesshareholder return mechanisms, fostering a balanced relationship between theCompany and its shareholders while strongly supporting sustainable development.

Shareholder Returns

The Company continuously improves theshareholder return mechanism. Whenformulating policies, the Company fullysolicits opinions from shareholders andindependent directors, with particularattention to the reasonable demands ofminority shareholders. In respect of profitdistribution, the Company prioritizes cashdividends and maintains the continuityand stability of its dividend policy, strivingto achieve an effective balance betweenprotecting the equity interests of allshareholders and promoting the long-term development of the Company.

Investor CommunicationThe Company maintains close communicationwith investors through diversified channels,including information announcements, theinvestor relations interactive platform,performance briefings, investor hotline calls,designated email, the official website andWeChat official account, committed toestablishing and sustaining long-term, stableand trust-based investor relations. During thereporting period, the Company held twoearnings briefings, responded to 80 interactiveEasy posts, and issued 138 announcements.

6.2.1 Risk GovernanceAdhering to the risk management principles of “knowable, controllable, and bearable”, Jihong Group has formulated and implemented aComprehensive Risk ManagementSystem, which systematically standardizes risk control requirements embedded in various business processes and implements specialized management for major risks. TheCompany has established a risk management organizational structure consisting of the Board of Directors, the Audit Committee, and theAudit and Financial ManagementCenter. With clear division of responsibilities and effective collaboration, all departments ensure the implementation of risk control measures and guarantee the orderly conductof comprehensive risk management activities.Risk Management Framework and Responsibilities at Jihong Group

To further strengthen internal management and risk prevention, the Company has carried out special audits of subsidiary factories in accordance with the internal auditsystem, and will strictly implement corresponding incentives and accountability mechanisms based on audit results. In September 2025, the Company conducted an operationsmanagement audit of Ningxia Factory. The audit results showed that the factory achieved excellent operational performance, and the Company granted performance bonuspoints as an incentive.

Jihong Group continuously optimizes risk management mechanisms and clarifies risk management responsibilities at all levels. The Company proactively promotes riskidentification, assessment and mitigation, and steadily improves the effectiveness of risk management. Meanwhile, the Company strengthens risk awareness training across allemployees, providing solid support for the stable and sustainable development of various business operations.

Audit Committee as a specialized committeeunder the Board, providing guidance andsupervision for risk management activities.

Audit Committee

Reports regularly to the Audit Committee, monitoring internalcontrol systems to ensure that they are properly establishedand effectively implemented.

Audit DepartmentOversees overall risk management andbusiness operations.

Board of Directors

6.2.2 Risk Identification and ResponseThe Company continuously optimizes risk management processes, andregularly conducts risk identification, assessment and response activities toestablish a dynamically updated risk database. In 2025, the Companyidentified key risk points embedded in production and operational activities,covering major business processes including procurement management,production management and sales management, as well as core areas suchas logistics and asset management. Tiered and classified control measureshave been implemented to effectively enhance risk control capabilities.Meanwhile, risk management has been integrated into the internal controlaudit system. The Company performs regular internal control self-assessments and engages third-party institutions to conduct internal controlaudits. During the reporting period, no significant or material risk events wereidentified in risk management and internal control activities.Risk Management Process and Measures

RiskIdentification

RiskAssessment

RiskResponse

6.2.3 Risk Awareness and Culture

The Company places emphasis on enhancingthe risk awareness and control capabilities of allpersonnel. To address practical managementrequirements, the Company regularly organizestraining sessions and awareness programs oncontract approval, seal usage, and informationsystem operations, ensuring employees fullycomprehend and adhere to internal riskmanagement policies, minimizing the likelihood ofrisk violations in daily operations.

Case: Comics on "Risk Control Talks"

In 2025, the Company launched a series of comicpromotions on a regular basis, including Risk Control Talksand Tips on Avoiding Pitfalls. The series covers key riskmanagement scenarios, including contract management,customer complaints, and procurement practices. Throughsuch engaging formats, the Company effectively strengthensemployees’ risk control awareness and enhances theircapacity to respond to risks.

Comics on "Risk Control Talks"

?Establish a risk

assessment team todefine riskmanagementphilosophy and risktolerance.?Identify and recordcategories and severityof risks fromenvironmental factors,processes, strategicdecision-makinginformation, andinternal Companyelements.?Establish a risk

assessment indexsystem and standards.?Analyze the risks and

assess the potentiallosses they may incur.

?Select appropriate

risk responsestrategies such asrisk avoidance,acceptance, reduction,or transfer based onthe risk analysisresults and causes.?Establish a dynamic

mechanism formonitoring, reviewing,and preventing risksto track risk controlprogress and share itwith relevantdepartments.

?Each department

collects initial internaland external datarelated to potentialrisks and riskmanagement.?Systematically collect

and identify riskinformation via multiplemethods, includingdocument review,questionnaires,interviews, andhistorical eventanalysis.

6.3.1 Business Ethics GovernanceJihong Group consistently prioritizes integrity and compliance within the corporate governance framework. The Company strictly abides by applicable laws and regulations,including theCompany Law of the People’s Republic of China, theAnti-Monopoly Law of the People’s Republic of China, theCriminal Law of the People’s Republic of China,theAnti-Unfair Competition Law of the People’s Republic of China, and theAnti-Money Laundering Law of the People’s Republic of China. The Company has formulatedinternal management systems such as theConflict of Interest Management System, theAnti-Business Bribery, Anti-Fraud, and Reporting Management System, and theGiftManagement Measures. These systems explicitly prohibit commercial bribery, embezzlement, fraud, unfair competition and other illegal or non-compliant acts, and unswervinglyadhere to lawful and compliant operation.In 2025, the Company officially issued theAnti-Unfair Competition Management System. The Company consistently applies anti-unfair competition principles throughoutoperations, as reflected in various agreements signed with external parties, including aConfidentiality Agreement in cooperation,Non-infringement Commitmentwithcustomers, andTransparent Agreementwith suppliers. These measures promote fair competition, oppose and prevent unfair competition practices, and respect the legitimaterights and interests of all parties.Business Ethics Management System at Jihong Group

Responsible for overseeingmanagement in establishing acompany-wide culture of integrityand developing robust internalcontrol systems to combatcommercial bribery and fraud.

Board of Directors

As the leading body for theCompany’s integrity initiatives, itguides and supervises theCompany’s anti-bribery and anti-fraud efforts.

Audit Committee

Responsible for establishing,improving, and effectivelyimplementing internal controlsrelated to anti-bribery and anti-fraud to mitigate the risk ofbribery and fraudulent activities. Inthe event of a bribery incident, itformulates and implementsappropriate and effective remedialmeasures, subject to oversight bythe Board of Directors and itsAudit Committee.

Management

Team

The Audit Department servesas the permanent body for anti-bribery and anti-fraud efforts,responsible for conductingsupervision and investigationsrelated to these matters.

Audit Department

Responsible for theimplementation of internal controlsrelated to anti-bribery and anti-fraud and for cooperating in theinvestigation and evidencecollection of bribery and fraudincidents.

Company and

Subsidiaries

Jihong Group steadfastly adheres to core corporate values of “responsibility, innovation, and achievement,” and upholds the fundamental principle that “credibility and integritylay the foundation for growth.” The Company continuously improves its business ethics and compliance management system, vigorously promotes an integrity-driven corporateculture, establishes and improves complaint channels, and maintains a zero-tolerance attitude toward corruption and unfair competition. The Company is committed to fostering aclean and upright business environment, providing a solid guarantee for high-quality development.

To enhance the risk controls against corruption, unfair competition, and otherviolations, Jihong Group has reinforced its integrity management measures. Whenappointing or promoting candidates for key positions, the Company conductsthorough integrity evaluations and enforces a strict anti-bribery commitmentsystem. Candidates are required to sign theHonest Operation and ComplianceManagement Commitment Letter, with compliance performance integrated intotheir evaluations. Based on business ethics risk assessments, the Company alsoconducts regular audits, combining daily monitoring with targeted reviews. Duringthe reporting period, the Company identified no business ethics-related riskfactors such as bribery, extortion, fraud, or money laundering that materiallyimpacted compliance.

During onboarding procedures, theHuman Resources Department briefsnew hires on integrity and compliancerequirements. Upon full understandingand agreement to comply, newemployees sign the Honest Operationand Compliance ManagementCommitment Letter.

The Company stresses the Code ofConduct for Management Personnel atregular meetings, requiring managers tostrictly adhere to relevant businessethics regulations.

In day-to-day operations, the AuditDepartment disseminates businessethics awareness materials,emphasising an integrity culture andinstitutional policies to all employees.

Internal Employee

Management

6.3.2 Business Ethics Training

Jihong Group continues to promote anti-corruption education and training andstrengthens the development and implementation of a corporate culture of integrity,with a focus on improving the business ethics and anti-corruption awareness of allemployees. The Company regularly organizes specialized training for seniormanagement and directors on topics including theCode of Conduct for Management

Personneland theGift Management Measures, so as to guard against potentialmisconduct and ensure integrity and compliance in corporate governance. For allemployees, the Company expands the coverage of integrity promotion through posters,continuously conveying the importance of an integrity culture.

Case Study: Awareness Training on Open Procurement with IntegrityIn 2025, the Company held the integrity awareness training on OpenProcurement with Integrity. The program covered regulatory requirements,whistle-blowing mechanisms, integrity initiatives and procurement-relatedrisks. This training further strengthened the procurement compliance andrisk management system, improved supervision and reporting mechanisms,promoted the integration of an integrity culture into operations, andsupported sustainable and high-quality development. The training wasdelivered to all members of the Procurement Centre and newly recruitedprocurement staff at the Suzhou factory, with a total of 8 participants.After the training, the Procurement Centre carried out cascaded secondarytraining for procurement personnel across subsidiaries, which effectivelyimproved employees’ risk management capabilities.

Case Study: Integrity Campaign for Mid-Autumn Festival and NationalDayAhead of the Mid-Autumn Festival and National Day holiday in 2025, the Company launched aspecial compliance and integrity campaign focused on regulated festival gift-giving and acceptingpractices. Training materials on gift-giving and accepting policies and compliance requirementswere uniformly issued to department heads and managers of all subsidiaries. All responsiblepersons were required to complete self-study within the specified period and conduct internaltraining sessions for their respective teams. The Company also distributed compliance publicityposters to further strengthen integrity reminders.

As of the end of the reporting period, Jihong Group held six anti-corruption training sessions foremployees and senior management, covering business ethics standards, reporting mechanisms, andreward and punishment regulations. A total of 394 participants attended, with cumulative training hoursreaching 23 hours. For members of the Board of Directors, the Company provided five hours of anti-corruption training, achieving 100% coverage of all directors.

Business Ethics Audit Measures at Jihong Group

Suppliers

When establishing cooperativerelationships with suppliers andcustomers, the Company typicallyformalizes a shared commitment toupholding business ethics throughwritten agreements, while informingthem of specific complaint channels.

During routine audits, suppliermanagement is incorporated into theaudit scope. Key points include, but arenot limited to, whether both partieshave reached a consensus on jointlymaintaining business ethics andwhether any breaches of businessethics have occurred during thecooperation period.

6.3.3 Reporting Management

Jihong Group strictly abides by the regulations of national disciplinary inspection and supervision authorities, and improves theAnti-Business Bribery, Anti-Fraud, andReporting Management System. The Company optimizes complaint acceptance processes and mechanisms to ensure that complaints and reports are handled in a timely andeffective manner. The Company has established diversified and easily accessible reporting channels, encouraging internal employees and external stakeholders such asbusiness partners to report fraud or suspected violations via telephone, email, written correspondence or face-to-face meetings. Upon receipt of a report, the AuditDepartment launches an investigation in strict accordance with prescribed procedures, ensuring objectivity and impartiality throughout the process.To protect the legitimate rights and interests of whistleblowers, the Company’s internal management systems explicitly include protection provisions that prohibit any formof discrimination or retaliation, including unfair dismissal, harassment, or unreasonable disciplinary action. Without the consent of the whistleblower, the Company will notdisclose their identity or the content of the report, ensuring effective protection during the investigation. Meanwhile, the Company resolutely prohibits false or maliciousreporting. If such conduct is verified, corresponding measures will be taken against the whistleblower in accordance with regulations, so as to fully safeguard the integrity of thereporting system and maintain the effectiveness of reporting channels. In 2025, the Company had no litigation or administrative penalty cases involving unfair competition,embezzlement, bribery or money laundering.Reporting Channels at Jihong Group

?Reporting Hotline: 18150353249?Reporting Email: shenji@jihong.cn?Reporting Address：Audit Department, Jihong Group, No.9 Putou Rd., Dongfu Industry Park Ⅱ, Haicang District,

Xiamen City, Fujian Province

7 Appendices

Environmental

Indicator DescriptioGeneralDisclosure&

KPI

nChapter ReferencesAspect A1: EmissionsGeneralDisclosure

4.1.1

EnvironmentalManagemenInformationon:(a)thepolicies;and(b)compliancewithrelevantlawsandregulationsthathaveasignificantimpactontheissuerrelatingtoairemissions,dischargesintowaterandland,andgenerationofhazardousandnon-hazardouswaste.

t

4.1.2 ResourceManagement

4.1.3 EmissionManagement

KPI

A1.1

The types of emissions and respectiveemissions data. ?

4.1.3 EmissionManagementA1.2

Direct (Scope 1) and energy indirect (Scope 2)greenhouse gas emissions (in tonnes) and,where appropriate, intensity (e.g. per unit ofproduction volume, per facility).?

4.3.4 Indicatorsand TargetsA1.3

Total hazardous waste produced (in tonnes) and,where appropriate, intensity (e.g. per unit ofproduction volume, per facility). ?

4.1.3 EmissionManagementA1.4

Total non-hazardous waste produced (in tonnes)and, where appropriate, intensity (e.g. per unitof production volume, per facility).?

4.1.3 EmissionManagementA1.5

Description of emission target(s) set and stepstaken to achieve them.

4.1.3 EmissionManagementA1.6

Description of how hazardous and non-hazardous wastes are handled, and adescription of reduction target(s) set and stepstaken to achieve them.

4.1.3 EmissionManagement

Aspect A2: Use of ResourcesGeneral DisclosurePolicies on the efficient use of resources, including energy, water and other raw materials.

4.1.2 ResourceManagement

KPI

A2.1?

Direct and/or indirect energy consumption by type (e.g. electricity, gas or oil) in total (kWhin ’000s) and intensity (e.g. per unit of production volume, per facility).

4.1.2 ResourceManagementA2.2?Water consumption in total and intensity (e.g. per unit of production volume, per facility).

4.1.2 ResourceManagementA2.3?Description of energy use efficiency target(s) set and steps taken to achieve them.

4.1.2 ResourceManagementA2.4?

Description of whether there is any issue in sourcing water that is fit for purpose, waterefficiency target(s) set and steps taken to achieve them.

4.1.2 ResourceManagementA2.5?

Total packaging material used for finished products (in tonnes) and, if applicable, withreference to per unit produced.

4.1.4 GreenProducts

Aspect A3: The Environment and Natural Resources

GeneralDisclosure

Policies on minimising the issuer’s significant impacts on the environment and naturalresources. ?

4.1.1

EnvironmentalManagementKPI

A3.1?

Description of the significant impacts of activities on the environment and naturalresources and the actions taken to manage them.?

4.1.1

EnvironmentalManagement

SocialGeneralDisclosure &KPI

Indicator Description

ChapterReferencesAspect B4: Labour StandardsGeneral Disclosure

Information on:(a) the policies; and(b) compliance with relevant lawsand regulations that have a significant impact on the issuer relating topreventing child and forced labour.

5.4.1 Diversity, Equality, andInclusionKPI

B4.1?

Description of measures to review employment practices to avoid childand forced labour. ?

5.4.1 Diversity, Equality, andInclusionB4.2?Description of steps taken to eliminate such practices when discovered.

5.4.1 Diversity, Equality, andInclusion

Aspect B5: Supply Chain ManagementGeneral DisclosurePolicies on managing environmental and social risks of the supply chain.

5.2.2 Supply Chain ESGManagement

KPI

B5.1?Number of suppliers by geographical region.

5.2.1 Supplier Admission andEvaluationB5.2?

Description of practices relating to engaging suppliers, number ofsuppliers where the practices are being implemented, and how they areimplemented and monitored.

5.2.1 Supplier Admission andEvaluation

5.2.2 Supply Chain ESGManagementB5.3?

Description of practices used to identify environmental and social risksalong the supply chain, and how they are implemented and monitored.

5.2.1 Supplier Admission andEvaluation

5.2.2 Supply Chain ESGManagementB5.4?

Description of practices used to promote environmentally preferableproducts and services when selecting suppliers, and how they areimplemented and monitored.

5.2.1 Supplier Admission andEvaluation

5.2.2 Supply Chain ESGManagement

Aspect B6: Product Responsibility?General Disclosure

Information on:(a) the policies; and(b) compliance with relevant laws and regulationsthat have a significant impact on the issuer relating to health and safety, advertising,labelling and privacy matters relating to products and services provided and methodsof redress.

5.1.1 Quality Management

5.1.2 Customer Service

5.1.3 Information Security

5.1.4 Innovation and R&D

KPI

B6.1?

Percentage of total products sold or shipped subject to recalls for safety and healthreasons. ?

5.1.1 Quality ManagementB6.2?

Number of products and service related complaints received and how they are dealtwith.

5.1.2 Customer ServiceB6.3?

Description of practices relating to observing and protecting intellectual propertyrights.

5.1.5 Intellectual Property

ProtectionB6.4?Description of quality assurance process and recall procedures.5.1.1 Quality ManagementB6.5?

Description of consumer data protection and privacy policies, and how they areimplemented and monitored.

5.1.3 Information Security

Aspect B7: Anti-corruption ?

General Disclosure

Information on:(a) the policies; and(b) compliance with relevant laws and regulationsthat have a significant impact on the issuer relating to bribery, extortion, fraud andmoney laundering.

6.3.1 Business Ethics

Governance

KPI

B7.1?

Number of concluded legal cases regarding corrupt practices brought against theissuer or its employees during the reporting period and the outcomes of the cases. ?

6.3.3 Reporting ManagementB7.2?

Description of preventive measures and whistle-blowing procedures, and how theyare implemented and monitored. ?

6.3.3 Reporting ManagementB7.3?Description of anti-corruption training provided to directors and staff.

6.3.2 Business Ethics

Training

Aspect B8: Community Investment

General Disclosure

Policies on community engagement to understand the needs of the communitieswhere the issuer operates and to ensure its activities take into consideration thecommunities’ interests.

5.5 Public Welfare and

CharityKPI

B8.1?

Focus areas of contribution (e.g. education, environmental concerns, labour needs,health, culture, sport). ?

5.5 Public Welfare and

CharityB8.2?3.5 Social Welfare

5.5 Public Welfare and

Charity

Dimensions

Index

Topics

CorrespondingClauses

Corresponding Chapter

Environmen

t

Addressing ClimateChange

Article 21-28

4.3.1 Governance

4.3.2 Strategy

4.3.3 Risk Management

4.3.4 Indicators and Targets

Pollute Emissions

Article 30

4.1.3 Emission Management

Waste Management

Article 31

4.1.3 Emission Management

Ecosystem andBiodiversity Protection

Article 32

4.4 Biodiversity

EnvironmentalCompliance Management

Article 33

4.1.1 Environmental Management

Energy Utilization

Article 35

4.1.2 Resource Management

Water ResourceManagement

Article 36

4.1.2 Resource Management

Circular Economy

Article 37

4.1.2 Resource Management

Society

Rural Revitalization

Article 39

5.5 Public Welfare and Charity

Social Contribution

Article 40

5.5 Public Welfare and Charity

Innovation-DrivenDevelopment

Article 42

5.1.4 Innovation and R&D

Technology Ethics

Article 43

5.1.4 Innovation and R&D

Dimensions

Index

Topics

Corresponding Clauses

CorrespondingChapter

Society

Supply Chain Security

Article 45

5.2.1 SupplierAdmission andEvaluation

5.2.2 Supply ChainESG Management

5.2.3 SupplierCommunication

Fair Treatment of SMEs

Article 46

5.2.4 Equal treatmentof SMEs

Product and Service Safety& Quality

Article 47

5.1.1 QualityManagement

5.1.2 Customer Service

Data Security and CustomerPrivacy Protection

Article 48

5.1.3 InformationSecurity

Employees

Article 50

5.4.1 Diversity, Equality,and Inclusion

5.4.2 Employee RightsProtection

5.4.3 EmployeeTraining andDevelopment

SustainabilityGovernance

Due Diligence

Article 52

2.1 Identification ofMaterial Issues

2.2 Impact MaterialityAssessment

Stakeholder Communication

Article 53

2.1 Identification ofMaterial Issues

2.2 Impact MaterialityAssessment

Anti-Bribery and Anti-Corruption

Article 55

6.3.1 Business EthicsGovernance

6.3.2 Business EthicsTraining

6.3.3 ReportingManagement

Anti-Unfair Competition

Article 56

6.3.1 Business EthicsGovernance

6.3.2 Business EthicsTraining

6.3.3 ReportingManagement

Dear Readers,Greetings! Thank you for taking the time to read the 2025 Xiamen Jihong Technology Co., Ltd. Environmental, Social and Governance (ESG) Report. We highly value yourfeedback and look forward to hearing your thoughts on our ESG management, practices, and reporting. Your opinions and suggestions serve as a crucial foundation for us tocontinuously improve our ESG management and implementation. We look forward to your response!

1.Which stakeholder category does your organization belong to within Jihong Group?

□ Shareholders and Investors □ Employees □ Suppliers □ Customers □ Government and Regulators □ Community □Partners □ Industry Associations/NGOs □Other (Please specify):_____________

2. How would you rate this report overall?

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3. How would you rate the clarity, accuracy, and completeness of the information and data disclosed in this report?

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4. How well do you think this report reflects the Company’s fulfillment of its economic responsibilities?

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5. How well do you think this report reflects the Company’s fulfillment of its environmental responsibilities?

□ Good □ Fairly Good □ Average □ Poor

6. How well do you think this report reflects the Company’s fulfillment of its social responsibilities?

□ Good □ Fairly Good □ Average □ Poor

7. Do you find the information provided in this report to be readable and comprehensible?

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8. What content would you like to see included in future reports that has not been disclosed in this one?

9. Do you have any opinions or suggestions regarding the Company’s environmental, social, and governance efforts or the preparation of this report?

Xiamen Jihong Technology Co., Ltd.Environmental, Social and GovernanceReport 2025

March 2026